Gulfam Final

A THESIS
Submitted to the Superior University, Lahore
As partial fulfillment of the Requirements
For
The Degree of
Bachelors of Business Administration
Submitted by:
Muhammad Gulfam Rasul
BBA-11519
2010-2014
Supervised by:
SIR KASHIF MEHMOOD
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DECLARATION OF ORIGINALITY
I hereby declare that this thesis is my own work and effort and that it has not been submitted anywhere.
All work contained within this paper is my own to the best of my knowledge. I hereby declare that any
Internet sources published or unpublished works from which I have quoted or draw references fully in the
text and in the content list. Where other sources of information have been used, they have been
acknowledged.
SIGNATURE________________________________
DATE _____________________________________
NAME OF SUPERVISOR_____________________
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ACKNOWLEDGEMENT
In the name of ALLAH, the Most Gracious and the Most Merciful
Alhamdulillah, all praises to Allah for the strengths and His blessing in completing this thesis.
I would also like to thank my colleagues for their continuous support and help. And my deepest gratitude
goes to my Parents who have made it possible for me to get this qualification and present this thesis for
people to read, understand and hopefully gain something from it.
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DEDICATION
We dedicate our project to
ALLAH
Who has created us as crown of creation and enable us to learn
My Parents
Who always appreciate us in every step
And finally, I am really thankful to my teachers and class fellows who always give us their favours and
motivate us in right direction. It was great fortune for me to study with so competent students. What we
learn in this whole program they contribute as much as our teachers.
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Abstract
This research study looks at the factors that effect on customer switching in textile industry of
Pakistan. For this study, 150 customers from different customer of textile industry were asked
questions about service quality, product price, product image, product price and customer
switching. When the surveys were completed and returned, the data was entered into SPSS for
analysis. Several tests were run on the data, and significant findings were present. The finding
shows all variable like service quality, product price, product image, product price and customer
switching have mutually relationship with each other. Regression analysis show that their service
quality, product price, product image and product price has positive and significance relationship
with customer switching
Key words: service quality, product price, product image, product price, customer
switching, textile, Pakistan.
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TABLE OF CONTENT
DECLARATION OF
ORIGINALITY………………………………………………………..…….Error! Bookmark not
defined.
ACKNOWLEDGEMENT .................................................................................... 3
DEDICATION ..................................................................................................4
ABSTRACT .......................................................................................................... 5
CHAPTER 1 ......................................................................................................... 8
INTRODUCTION ................................................................................................ 9
1.1. Purpose of study ...................................................................................................10
1.2. Objective of the Study ............................................................................................11
1.3. Significance of the study ........................................................................................ 11
1.4. Research Question and Hypothesis.............................................................. 12

1.5 Key term definition……………………..……………………………………….………12
1.6. Theoretical framework ......................................................................................... 13

CHAPTER 2 ....................................................................................................... 15
LITERATURE REVIEW ................................................................................... 16
CHAPTER 3 ....................................................................................................... 29
DATA AND METHODOLOGY ........................................................................ 30
3.0: Introduction... ................................................................................................................. .....30
3.1: Research Paradigm ........................................................................................................30
3.2 Tool of data Collection…………………………………………………………..30
3.3: Sample and sampling technique .....................................................................................31
3.3.1 Population………………………………………………………………....31
3.3.2 Sample size………………………………………………………………..……31
3.4.3 Sampling Technique……………………………………………………………31
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3.4 Measures……………………………………………………………………….….32
3.5 Methodology……………………………………………………………………32
3.5.1 Descriptive Statistics………………………………………………………..33
3.5.2 Histograms…………………………………………………………………..33
3.5.3 Scatter Plots………………………………………………………………….33
3.5.4 Correlation………………………………………………………………….33
3.5.5 Regression Analysis…………………………………………………………33
CHAPTER 4 ....................................................................................................... 34
RESULTS & ANALYSIS .................................................................................. 35
CHAPTER 5 ....................................................................................................... 51
DISCUSSION, CONCLUSION AND SUGGESTIONS ................................... 51
5.1. Discussion ..........................................................................................................51
5.2. Conclusion ..........................................................................................................53
5.3. Recommendation.............................................................................................. ........................54
REFERENCES.................................................................................................... 55
Appendix …………………………………………………………………………………….59
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Chapter#1
Introduction
Textile sector is the backbone of Pakistan’s economy and it is one of the largest sectors of
Pakistan. According to the Economist report of Pakistan is the 4th largest producer of cotton and
first largest exporter of cotton yarn in the world. Pakistan is also the 3rd largest consumer and 6th
largest importer of cotton as well. In Pakistan there are 5 billion farmers out of which 1.3 billion
farmers are involved in the cultivation of cotton. According to the reports Textile exports in 1999
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were $5.2 billion and rose to become $10.5 billion by 2007. In the period July 2007 – June 2008,
textile exports were US$ 10.62 Billion. Textile exports share in total export of Pakistan has
declined from 67% in 1997 to 55% in 2008, as exports of other non-textile sectors grew. UN
reports 102 countries import textile and textile products and 104 countries export these products.
Global trade in textile and textile products account for an approximately $440 billion. Pakistan is
bogged down in the 5% textile requirement of the world, by dedicating 62% of its GDP share for
textile. An anti-dumping of 5.8% has been imposed by the European Union, which has put
Pakistan in a desperate position to match competitiveness posed by Bangladesh, India, China,
Sri-Lanka and Vietnam. The top buyers of Pakistani textile goods are: USA, EU, Gulf region,
UK, Hong Kong, Japan, Korea, Saudi Arabia, Italy, Turkey, Germany, Norway, France, Canada,
Sweden, Australia, etc. According to data by Federal Bureau of Statistics, Textile exports during
the first eight months of current financial registered negative growth of 5.6% as against the
exports recorded corresponding period of the last financial year. Exports during July-February
(2008-09) totaled $ 6.47 billion against the exports of $6.85 billion recorded during July-
February (2007-08). During the time under review, the highest negative growth of 51.24 percent
was recorded in the exports of yarn (other than cotton yarn) while exports of art, silk and
synthetic textile were decreased by 23.45 percent. Similarly, exports of cotton yarn declined by
15.28 percent, cotton (carded or combed) by 13.81 percent, knitwear by 2.66 percent, bed wear
by 10.44 percent, tents, canvas and tarpaulin by 21.18 percent, readymade garments by 12.43
percent, made up articles by 0.3 percent while the exports of other textile materials declined by
15.28 percent during the period. Although the textile sector of Pakistan gone into decline due to
shortage of power sources like electricity, and gas but start rising again. In Pakistan there are
many textile brands which are capturing the market such as Leisure club, Stone Age, Outfitters,
Forecast, Hitch hikers. As many textile brands has entered into the markets so it becomes very
difficult to make the customers loyal. Different brands using different strategies to make
themselves the first and foremost choice of the customers. Many previous research studies
indicated that there are many factors which can make the customer loyal due to which customer
buy a particular product again and again such as the studies of Jahanshahi, et, al., (2011), Chai,
Ding, and Xing (2009) and Tsiotsou (2005) indicated that the product quality, and customer
satisfaction are the strong predictors of customerswitchings. Similarly the studies of Yen, 2011;
yang, and Peterson, 2004; and Li, and green indicated that the perceived value is the strong
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predictor of customer loyalty orswitchings. After that the research studies of Wang and Chang,
2012; Miryala, 2011; Wu; Hanzaee and Farsani, 2011 found the brand image as the predictor of
the customer loyalty. So based on the previous research studies the present study took quality,
perceived value, brand image, and customer satisfaction to check their relationship with the
switching of the customers in the context of textile industry of Pakistan.
1.1 Purpose Statement

As the textile sector is the backbone of Pakistan’s economy and it is emerging again. So it
becomes very important for the emerging textile sector to attain satisfied and loyal
customers. There are many factors which contribute to make the customers switching.
Previous researches pointed out that there are various factors which make the customers
switching. So based on the previous researches the present study is an attempt to find the
different factors affecting customers switching in the context of textile industry of Pakistan.
The study selects the Product Image, product price, Product Quality and Service quality as
the independent variables whereas customer switching’s as the dependent variable. The again
and again purchase/selection of customers about any particular brand is known as customer’s
switching.
1.2 Research Objectives

 To determine the impact of Service quality on the customers switching’s in the
context of textile industry of Pakistan
 To determine the impact of Product Quality on the customers switching’s in the
context of textile industry of Pakistan
 To determine the impact of product price on the customers switching’s in the context
of textile industry of Pakistan.
 To determine the impact of Product Image on the customers switching’s in the
context of textile industry of Pakistan.
1.3 Significance of the study
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The present study finds out the different factors affecting customers switching in the textile
industry of Pakistan. The study also determine the impact of customer satisfaction on
customers switching in the context of textile industry of Pakistan
The present study widened the concept of customer churn and helps to find the factors which
can cause customer switching and also the present study helped to reduce the customer
switching by applying certain measures.
The current study contributes to the existing knowledge on customers switching’s by

maintaining different factors. It means it contributes to the body of knowledge on the
relationship among q Product Image, product price, Product Quality and Service quality and
customers switching’s. Since most of the research on this topic was done in the context of
developed countries so this research is an attempt to find such linkage in the developing
countries context like Pakistan.
The present study provides help to the marketing managers of the textile sector to maintain
the factors which involve in arising switching through satisfying them.
This study will describe costs 6 to 7 more times to acquire a new customer than it does to
keep an existing one. Advertising, promotion, selling, and time invested are all factors in the
high cost of acquiring a customer. So it’s important not to neglect the customers you’ve
already won. Your churn rate will tell you how bad the problem is.
This study wills significant influence on customer swathing towards textile industry of
Pakistan. As compared to trust or habit factors, reputation is the strongest influence. The
results also indicated that service quality, product price, product quality and product image
value are significantly related to customer switching. Service quality is found to be an
important factor in influencing the adoption of the switching. The findings have provided an
insight to the textile providers on the areas to be focused on in retaining their customers.
This study will identify that service quality can directly and indirectly effect customer
satisfaction, and that satisfaction has a direct effect on textile customer switching. The reason
is that customers’ expectations on key service attributes, and each new service experience,
combine to form an evaluation of service and this affects what customers believe will and
should occur in future service encounters. Lastly, the current study is significant in a way that
it provides the theoretical understanding of the association among Product Image, product
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price, Product Quality and Service quality and customers switching’s in the context of
Pakistan which is a developing country.
1.4 Research question and Hypothesis
1.4.1 Main research question

 What are the factors which contribute to the customer switching of customers in the textile
industry of Pakistan?
1.4.2 Hypothesis
 H1: There is a relationship between product price and customer switching
 H0: There is no relationship between product price and customer switching
 H1: There is a relationship between product image and customer switching
 H0: There is no relationship between product image and customer
 H1: There is a relationship between product quality and customer switching
 H0: There is no relationship between product quality and customer switching
 H1: There is a relationship between service quality and customer switching
 H0: There is a relationship between service quality and customer switching
Model of the study
Product’s Quality
Product’s Image Consumer’s

switching
Product’s Price
Services quality
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In developing our conceptual framework (shown in Figure 1), we review literature on
relationship service quality, product price, product image, product price and customer switching
that is relevant to our research focus. On the basis of this review, we define the key constructs of
our framework and describe the theoretical grounds and existing evidence supporting the
relationships contained in this framework.
Figure 3= Customer switching and product image b= .881, sig =.000
Figure 3= Customer switching and product price b= .927, sig =.000
Figure 3= Customer switching and product quality b= .995, sig =.000
Figure 4=Customer switching and service quality b= .931, sig =.000
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Chapter 2
Literature review
(Heikki Karjaluoto & Manne Kesti, 2005) Conducted a study on the topic of Factors Affecting
Consumer Choice of Mobile Phones: Two Studies from Finland. The purpose of this study to
check that factors who affect customer churn in mobile phone market in Finland because this
industry fastest growing industry is the world due to increased competition and increased
technology. So it’s really important to check the customer buying behavior and determine that
factors who finally influence the brand choice of mobile industry. This study based on mixed
method and consist on qualitative and quantitative method, firstly interview was collected from
79 graduated student and after that followed by a survey and collected data 196 respondents, for
the analysis purpose scatter plot applied to check the pearson or spearman correlation apply after
that correlation and principle components analysis was applied. The result shows that customer
choice against different mobile phone is a subjective choice situation, but some specific universal
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factors that give the impression to choice a new mobile phone. the result of both data qualitative
and quantitative shows the main reason of change the mobile phones are technical problem face
and also price, brand interface and properties of mobile most important factors affecting the
actual choice between brands.
(Atif Hassan, 2012) Conducted a study on the topic of Effects of Television Advertisement on
Brand Switching in shampoo brand. The purpose of the study to check the affect of television
advertisement on customer switching in shampoo brand and focus of this study to identify that in
Pakistan advertisement cause is just promote their products or sale their products. For this
purpose primary data was collected in two phases in first phase data was collected from college
and university students by using simple random sampling in which everyone have equal
opportunity to fulfill the questionnaire and second phase questionnaire was filled by youngsters
age was 15- 30 all the respondents of this study are Pakistani. Descriptive analysis was used to
check television advertisement affect in Pakistani audience but result shows celebrity
inducement and appealing advertisement affect on Pakistani peoples because Pakistani people
are emotional peoples but in beautician aspects shampoo advertisement are same and Pakistani
people not change their decision because every shampoo brand claim same if one shampoo suit
any individual than they not change their brand. Otherwise people change if shampoo not
suitable.
(Thapa, 2012) Conducted a study on the topic of consumer switching behavior: a study of
shampoo brands in Jammu and Kashmir. The purpose of this study to check the factors that
affect on customer switching in shampoo brands varies factors that affect on using brand in
different cultures like Jammu and Kashmir have different culture. Independent variable are Price,
packaging, availability and depend variable is costumer switching. Data collected from Jammu
and Kashmir college and university hostel students primary data was collected through
questionnaire from hostel student and secondary data collected through news paper and article
simple percentage method was used for analysis purpose the result shows most of the people
aware about the brand of cosmetic shampoos. Result shows that price, availability and products
packaging of the product affect on customer buying decision result shows brand loyalty is not
work in case of shampoo product if price increase of brand and non availability of products
change the buying behavior of customer.
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(Priyanka Gautam, 2011) Conducted a study on the topic of switching behavior of subscribers in
telecom sector in India. The purpose of the study to determine factors that affect on customer
switching in telecom industry of India, India is third largest telecommunication industry of the
world. Independent variable in this study is service quality and customer relationship and
dependent variable is customer switching. Main focus of the study verifies causes why mobile
phone customer switches one company to another company. In this study data collected from
mobile user through structured questionnaire and for the analysis purpose used regression
analysis. Result sows that service quality have positive relationship and significance value shows
relationship with customer switching and more important is customer relationship through
service representative have relationship with customer switching is customer have good
relationship with the products then they never switch and if service are not good then they switch
to another network. Service providers need to concentrate on customer needs especially in
customer service side. Although, increased competition has benefitted customers it will further
enhance the scenario.
(Shun Yin Lam & Krishna Erramilli, 2009) conducted a study of on the topic of Customer Value,
Satisfaction, Loyalty, and Switching: An Illustration From a Business-to-Business Service
Context. Independent variables are Service quality, customer satisfaction and customer loyalty
and dependent variable is customer switching. The purpose of this study managers pay
increasing attention to customer value, satisfaction, loyalty, and switching costs, not much is
known about their interrelationships. previous researches has check the relationships within
subsets of these constructs, but this research focused on business to business. The data was
collected to the companies of different countries 2986 questionnaire was post through courier
service and received 268 response rate about at 9 percent. For analysis purpose used structural
equation modeling. On the basis of the cognition-affect-behavior model, the authors hypothesize
that customer satisfaction mediates the relationship between customer value and customer
loyalty, and that customer satisfaction and loyalty have significant reciprocal effects on each
other. Furthermore, the potential interaction effect of satisfaction and switching costs, and the
quadratic effect of satisfaction, on loyalty are explored. The authors test the hypotheses on data
obtained from a courier service provider in a B2B context. The results support most of the
hypotheses and, in particular, confirm the mediating role of customer satisfaction.
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(Benjamin Oghojafor & Bakarea, 2012) Conducted a study of on the topic of discriminate
analysis of factors affecting telecoms customer churn. In this study determine the relationship
between Service quality, price, advertisement and customer switching in Nigeria. Independent
variables are services quality, price, advertisement and dependent variable is customer switching.
The data was collected from Nigeria state Lagos where most of the population exist and
structured questionnaire was used for data collection. Descriptive analysis applies before
applying multivariate analysis. A major challenge facing telecoms business providers in Nigeria
today is the continuous growing competition and customers’ expectation of service quality and
as such customers are able to choose among multiple service providers based on the level of
satisfaction, affordability, and service quality of service providers. Customer demand and
competition are forcing firms to cut loose from the traditional customer satisfaction paradigm, to
adopt proactive strategies which will assist them to take the lead in the market-place. This study
aims at identifying factors that discriminate among subscribers exhibiting willingness to drop
their current service provider and those willing to stay. The study also examines the effect of
socio-economic and demographic factors associated with the identified discriminate. The major
factors identified are high call rate, poor service facilities, off-beam advertisement medium,
availability of superior service provider and unattractive service plan.
(Leyla ÖZER & SERTOĞLU, 2008) conducted study on the topic of Factors affecting bank
switching intentions in e-banking. The purpose of this researched article to determined
relationship between price, reputation products, perceived service quality, commitment,
dissatisfaction and promotion with customer switching intention in e-banking. Independent
variables are price, reputation, products, perceived service quality, commitment, dissatisfaction,
promotion dependent variable is customer switching. Data collected for this study from
customers who used e-banking system through convenience sampling and structured
questionnaire was used for data collection. For data analysis used SPSS and linear regression
was applied. According to regression results, higher prices, bad reputation, limited product
variety, dissatisfaction and compulsory reasons are determined as the factors increasing bank
switching intentions of e-banking customers, while promotion efforts are found to decrease these
intentions. The relationship between commitment and switching intention, on the other hand, is
found to be insignificant.
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(Murad, 2011) conducted study on the topic of Direct and Moderating Factors Affecting
Customer Switching Intentions. The purpose of this researched article investigates factors that
affect of customer switching intentions in banks of Palestine and Cairo Amman Bank.
Independent variables were Service quality, price, commitment, and anger incident and
dependent variable is Customer switching in banks. Self administered questionnaire was
delivered and collection questionnaire was used with a sample of 550 customers from Bank of
Palestine and Cairo Amman Bank, of which 385 were retrieved and met the screening
requirements, representing a net response rate of 70%. Based on mean analysis, it was found that
customer switching intentions differ according to the bank and customer's category, which is
related to the banks' actions in terms of service quality, price, commitment, and anger incident.
Correlation analysis demonstrated the existence of negative relationship between (service
quality, fair price, and bank commitment) and customer switching intentions, while a positive
relationship exists between anger incident and these intentions. Multiple linear regression
revealed that 48.8% of the variation in customer switching intentions is explained by service
quality (the most significant factor), bank commitment (the second significant factor), and anger
incident (the third significant factor), while price was insignificant and excluded from the model.
(Beh Yin Yee, 2010) conducted study on the topic of factors Affecting Customer Loyalty of
Using Internet Banking in Malaysia. The main objective of this study internet banking has
become one of the widely used banking services among Malaysian retail banking customers in
last ten years. Despite its attractiveness, customer loyalty towards Internet banking website has
become an issue due to stiff competition among the banks in Malaysia. Independent variables
are service quality, perceived value, trust, habit, reputation and dependent variable is Customer
loyalty. For data collection self administrated questionnaire was used by using convenience
sampling method, 350 questionnaires was distributed in klang Valley, which is most crowded
area of Malaysia and received 289 valid questionnaires with the response rate of 82.57%. For
the analysis purpose used SPSS software reliability and consistency check through inter item
consistency by value of cronbach’s alpha higher than 0.07 and for checking cause and effect
relationship applied correlation and regression test. Based on the findings, trust, habit and
reputation are found to have a significant influence on customer loyalty towards individual
Internet banking websites in Malaysia. As compared to trust or habit factors, reputation is the
strongest influence. The results also indicated that service quality and perceived value are not
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significantly related to customer loyalty. Service quality is found to be an important factor in
influencing the adoption of the technology, but did not have a significant influence in retention
of customers.
(Fredrik Carlsson, 2006) conducted study on the topic of airline choice, switching costs and
frequent flyer programmers. The main objective of this researched article was checking customer
choice against price of airline industry. Independent variable Service quality, price dependent
variable is customer switching. For this researched article data was collected from seven
domestic airline routes in Sweden by used price and passenger list 1992 to 2002. For the analysis
purpose used estimated rout method and applied regression analysis for checking cause and
effect relationship. The number of departures was significant effect on the switching cost. This is
expected, since if an airline increases its number of departures, the benefits of travelling with
those airline increases, all else being equal. For example, it is easier to reschedule the trip and the
negative effects of a delay are smaller. The coefficient for the triopoly variable is significant and
positive. However, there are very few observed triopoly routes. The switching cost for the flag
carrier SAS is higher, compared to other airlines. This is interesting and it should be noted that
this is corrected for the number of departures. The switching cost for SAS is almost 470 SEK
higher compared to other airlines (calculated at sample mean). As we have discussed, SAS is the
flag carrier and has enjoyed a strong position in the domestic market for a long time
(Joseph Omotayo Oyeniyi, 2009) conducted study on the topic of switching cost and customer’s
loyalty in the mobile phone market: the Nigerian experience. The main objective of researched
article was found the relationship between switching cost and customer loyalty in the mobile
phone market of Nigeria. Independent variable is customer satisfaction and dependent variable is
Customer switching. For data collection self administrated questionnaire prepaid and collected
data for customer who is using mobile phone in Nigeria. Simple random sampling was used in
this article. For the analysis purpose statistical analysis was used and regression test was applied
for generating result. The result of this researched study finds that customer satisfaction
positively affects customer retention and that switching cost affects significantly the level of
customer retention. However, the effect of switching barriers on retention is only significant
when customers consider to exit.
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(Sugato Chakravarty & b, 2003) conducted study on the topic of relationships and individuals_
bank switching behavior. The main objective of this researched article was found the cause of
individual switching behavior in banking industry of united state. Independent variables are
Service quality, responsiveness, Tangibles, reliability, empathy assurance and dependent variable
customer switching. For this researched article data was collected through self administrated
questionnaire by using simple random sampling, data was collected customers of united state on
America. Result was generated through SPSS software principle component analysis was used
in this researched article and result describe that service quality have significant relationship
between customer satisfaction responsiveness, tangibility and empathy assurance also have
significance relationship with customer switching in united state of America.
Coban (2012) described the effect of destination image on the satisfaction and loyalty of the
tourists in the context of Cappadocia. He took cognitive and emotional image as the independent
variables, customer satisfaction as the mediating variable, and customer loyalty as the dependent
variable. He collected the data from the sample of 170 tourists of Cappadocia through
questionnaire survey. He used factor analysis method for the analysis of the data. His study
found that both cognitive and emotional image has strong and positive relationship with the
satisfaction (R2 = 123, F= 3.256, p = 0.03 < 0.05; R2 = 259, F= 8.104, p = 0.00 < 0.05
respectively). He also found that customer satisfaction directly and positively affect the customer
loyalty (R2 = 313; F= 76.649; p = 0.00 < 0.05). So the prior research studies verify the argument
that brand image affect the customer satisfaction yet these studies have been done outside the
context of Pakistan especially the textile industry remained out of consideration to check this
relationship. So the present study is an attempt to fill this gap by checking this relationship in the
context of textile industry of Pakistan. The present study also argued that the customer
satisfaction has significant and positive relationship with theswitching of customers. Various
research studied have also been done to check this relationship which are as follow.
Chien-Hsiung, L (2011) performed a study on the relations between the brand image and
customer satisfaction in creating businesses in the context of Taiwan. The intent of this study
was to examine the relationship between brand image and customer satisfaction in the catering
industry. He worked on four major variables included, Brand image, customer satisfaction, brand
value, brand characteristic, brand association. Where variables Brand image, brand value, brand
characteristic, brand association was the independent variables and variable customer satisfaction
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was the dependent variable. He collected data from the 360 respondents through structured
questionnaires and they received 264 valid questionnaires. He used SPSS correlation and
multiple regression tests for the analysis of the data. The research findings are expected to
provide some suggestions and reference for catering businesses. He concluded that brand image
played very important for creating customer satisfaction. In this era peoples are going for
branding if the brand image strong then the firm creates more and more business and the brand
image had to be created step by step with the passage of time.
Julander, C. R, and Soderlund M, (2003) explored the effect of switching barriers on

satisfaction, repurchase intention and attitudinal loyalty. The aim of this study was to seen the
switching barriers however they are positive or negative, they examine how the switching
barriers effect on customer satisfaction, repurchase intention and customer loyalty. They worked
on four variables included, switching barriers, customer loyalty, customer satisfaction, and
repurchase intention. Where variable switching barrier was independent, variable customer
loyalty and customer satisfaction was mediating variables, and dependent variable was
repurchase intention. They collected data from the respondent through a structured questionnaire.
They used SPSS multiple regression for the analysis of the data. They concluded that switching
barriers both negative and positive effect on customer satisfaction and attitudinal loyalty. The
positive switching barriers create customer satisfaction and repurchase intention on other hand
the negative switching barriers have negative effect on customer satisfaction but somehow
positive effect on customer repurchase intention.
Chien-Hsiung, L (2011) performed a study on the relations between the brand image and
customer satisfaction in creating businesses in the context of Taiwan. The intent of this study
was to examine the relationship between brand image and customer satisfaction in the catering
industry. He worked on four major variables included, Brand image, customer satisfaction, brand
value, brand characteristic, brand association. Where variables Brand image, brand value, brand
characteristic, brand association was the independent variables and variable customer satisfaction
was the dependent variable. He collected data from the 360 respondents through structured
questionnaires and they received 264 valid questionnaires. He used SPSS correlation and
multiple regression tests for the analysis of the data. The research findings are expected to
provide some suggestions and reference for catering businesses. He concluded that brand image
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played very important for creating customer satisfaction. In this era peoples are going for
branding if the brand image strong then the firm creates more and more business and the brand
image had to be created step by step with the passage of time.
Kumbhar, V.M (2011) performed a research study to find the dimensions of customer
satisfaction in Indian e-banking context. The study took dimensions such service quality, brand
perception, and perceive value to check their impacts on the customer satisfaction. The study
also proposed to check the linkage of service quality with brand perception, perceive value. The
study took customer satisfaction as the dependent variable which depends on service quality
(Independent variable), brand perception (mediating variable), and perceive value (mediating
variable). The data of the study for analysis purpose was collected from the customers of banking
using e-banking facility by using administered questionnaires. 200 customers of public and
private banks of Satara city of Maharashtra were selected to collect the data. The data which was
collected for analysis purpose was analyzed by using SPSS
After the analysis the study found that dimensions of service quality such as (convenience,
responsiveness, cost effectiveness, security, easy to usage) have strong linkage with the customer
satisfaction. The study also found that perceive value and brand perception also significantly
influence the customer satisfaction. The study also determined that dimensions of service quality
such as (Contact Facilities, System Availability, Fulfillment, Efficiency and Compensation) have
somewhat weak relationship with the satisfaction because these dimensions showed less variance
(21.70%) as compared to prior dimensions (48.30%) in customer satisfaction. At the study
determined that dimensions of service quality such as (convenience, responsiveness, cost
effectiveness, security, easy to usage) have linkage with the brand perception while dimensions
of service quality such as (Contact Facilities, System Availability, Fulfillment, Efficiency and
Compensation) have linkage with the perceive value.
Akbar, M.M, and Parvez, N (N.D.) worked on the impact of quality, trust, and customer
satisfaction on customer loyalty in the context of telecommunication industry of Bangladesh.
The objective of their study was to create the loyal customer base by providing service quality,
customer satisfaction and customer loyalty. They worked on eight variables included, reliability,
responsiveness, assurance, empathy, tangibility, trust, customer satisfaction and customer
loyalty. Where variable reliability, responsiveness, assurance, empathy, tangibility, trust was
independent variable, variable customer satisfaction was mediating variable and dependent
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variable was customer loyalty. They collected data from the 304 respondents through a
structured questionnaire. They use SPSS and apply reliability test for the analysis of the data.
They concluded that there is a positive relationship between trust, customer satisfaction and
customer loyalty. By providing better service companies create customer satisfaction and with
that they create customer loyalty. When the companies fulfilled the customer demands customers
satisfied and loyalty was created.
Huei, C.T; and Easvaralingam, Y (2011) conducted the study to find the impact of service
quality and corporate image on the customer loyalty in the hotel industry of Malaysia. The
questionnaire survey was conducted from sample size of 200 customers of hotel in two areas in
Malaysia which are Kuala Lumpur and Penang. Kuala Lumpur being the capital of Malaysia and
Penang being an island frequented by tourists are two areas. The collected data was then
analyzed by using Exploratory Factor Analysis (EFA). The study revealed that corporate image
is a full mediator in the relationship between service quality and loyalty. The study further
concluded that although initially service quality plays an important role in creating a positive
image, once the customer has decided to frequent a hotel due to the positive image they have of
the hotel, they will no longer pay that much attention to the quality of the services when
considering whether to revisit or to recommend the hotel to others.
Alex, and Thomas (2005) conducted a study to describe the effect of product quality, service
quality, and contextual experience on customer perceived value andswitching. He took product
quality, service quality, contextual experience as the independent variables whereas perceived
value as the mediating variable, andswitching as the dependent variable. He collected the data
from the sample size of 205 customers of the retail chain stores. He used SEM and Amos 4 for
the analysis of data. After analysis of the data he found that product quality has the strong and
positive relationship with the perceived value (p < 0.05), while service quality does not have
significant relationship with the perceived value (p = 0.865 > 0.05). He also found that perceived
value has strong and positive relationship with theswitchings of the buyer (p = 0.000 < 0.05).
Meirovich, G; and Bahnan, N (2008) performed the study to describe the impact of product and
service quality on the customer’s emotions and their satisfaction. The objective of the study was
to link between quality and consumers’ emotions and eventually with their satisfaction. The
study introduced the two components of total quality structure that were the quality of design and
quality of conformance for the analysis of the link between quality and customer emotions.
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Undergraduate college students were surveyed in regard to four scenarios for food
establishments. Respondents were asked to select, from a pre-tested list of emotions, those
arising from these scenarios. The equality of means of the valence and the intensity of emotions
among the four scenarios were tested using ANOVA and Scheffe paired comparisons. They
found that there is a significant relationship between possible combinations of two quality
dimensions (product and service quality) and customers’ affective responses in terms of both
their valence and intensity.
Chang and Fong (2010) conducted the study to verify the relationship among Green product
quality, green corporate image, green customer satisfaction, and green customer loyalty. The
purpose of their study was to determine the relationships among green product quality, green
corporate image, green customer satisfaction, and green customer loyalty. They used the green
product quality and green corporate image as independent variables while green customer
satisfaction and green customer loyalty as the dependent variables. The data of the study was
collected by using questionnaire survey. They collected the data for analysis from the users of
green products. The questionnaires were filled by 600 respondents out of which just 196 were
used for the analysis purpose showing the response rate of 32.67 percent. AMOS was used to run
the confirmatory factor analysis. Their study found that green product quality strongly and
positively affects the green customer satisfaction and green customer loyalty. Their study also
found that green corporate image has positive and significant relationship with the green
customer satisfaction and loyalty. At the last they found that green customer satisfaction has
strong and positive relationship with the green customer loyalty.
Cronin, J.J; Brady, M.K and Hult, G.T.M (2000) carried out the study to check the impact of
value, quality, and customer satisfaction on behavioral intensions of consumers in the context of
service surroundings. The study proposed to evaluate the model which judges the direct impact
of value, quality, and satisfaction on behavioral intensions of consumers all together. They used
the interviews method to collect the data from the consumers of different service surroundings.
The sample of the study was selected by using quota sampling. The study also used the latest
progresses in service marketing theory to assess the linkage among the identified constructs of
the study. Beside these many other competitive theories were also considered and compared with
the model of the study. After analysis they found that service quality, value, and satisfaction have
direct impact on the behavioral intensions when used jointly. The study also found that indirect
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effect of value and quality (through satisfaction) increases their impact on behavioral intensions.
So the previous research studies verify the argument that customer satisfaction affect
theswitching of customers yet these studies have been done outside the context of Pakistan
especially the textile industry remained out of consideration to check this relationship. So the
present study is an attempt to fill this gap by checking this relationship in the context of textile
industry of Pakistan. The present study also argued that the perceived quality has significant and
positive relationship with theswitchings of customer. Various research studied have also been
done to check this relationship which are as follow.
(Rehdanz, 2007) conducted research on the topic of determinants of residential space heating
expenditures in germany. The main purpose of this researched article was examining the
determinants of household expenditures on space heating and hot water supply in Germany.
Independent variables were price household income and dependent variable was residential
expenditure. For the data collection purpose used survey questionnaire from 1200 household in
Germany. The analysis continues by investigating whether different kinds of households are
affected differently by increases in energy prices. For data analysis used SPSS and linear
regression was applied. According to regression results, higher prices, income, as the factors
effect on household expenditures.
(Hayden Stewart & Sanjib Bhuyan, 2004) Determined consumer spending at full-service and fast
food restaurants will continue to grow over the remainder of this decade and the next. The
purposed of this researched article was modest increase in family circle income plus expected
demographic growth demonstrates with the intention of per capita expenditure possibly will rise.
The assumed increase in income alone causes such spending to rise by almost 15 percent and 7
percent at full-service and fast food restaurants, respectively. Independent variable was income
and dependent variable expenditure. Sales at fast food restaurants briefly surpassed those at full-
service restaurants around the same time. For this purpose structured questionnaire was
formulated and circulated from customers of restaurants. Statistical package for social science
was used for analysis purpose regression analysis told us both variable have significance
relationship between income and expenditure. Away-from-home expenditures are typically
higher for single-person households and households containing multiple adults without live-at-
home children. For instance, a single person spends almost $3 more per person each week at
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each type of establishment than an otherwise identical person who is married and has live-at-
home children.
(Heim, 2010) Conducted research on the topic of Separate macroeconomic consumption demand
functions are developed and tested for (1) durable goods, (2) nondurable goods and (3) services.
The purposed of this research article was test demand consumption model for household.
Independent variables were researched in this article durable goods, nondurable goods and
services dependent variable was consumption demand. For data collection secondary data was
used goods are testing using U.S. 1996-2000 data. For analysis purposed used econometric
method with hetero city controls. Data in first differences are used to reduce multi co linearity,
non stationary and autocorrelation. The models explain 94% of the variance in demand for
consumer durables, 86% of demand for nondurable consumer goods and 81% of services
demand. Demand for durables like autos and appliances, was found to be driven by the
disposable income, wealth, the exchange rate, availability of consumer credit, interest rates on
consumer credit, demand for new housing, which affects appliance demand, and population
growth.
(GATERSLEBEN, 2002) conducted research on the topic of measurement and determinants of

environmentally significant consumer behavior. The purposed of this researched article was
proenviron mental behavior in psychological studies does not always reflect the actual
environmental impact of a person or household. The data of the study was collected by using self
administrated questionnaire survey. The collected data was analyzed by using regression
analysis. The findings of the study suggested that all the determinants of consumer behavior
were significantly and positively linked with the buying behavior. The results also suggested that
the price variable was the most important contributor to tourist satisfaction, whereas “company
provides service worth the money paid” was the most important contributor to behavioral
intention.
(Heshmati, 2012) conducted researched on the topic of survey of models on demand, customer
base-line and demand response and their relationships in the power market. The purpose of this
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research article was checking relationship demand-side management as a tool to reliably meet
electricity demand at peak time has stimulated interest among researchers, consumers and
producer organizations, managers, regulators and policymakers. Data collected through survey of
495 customers of electricity user was conducted. Data collected then analyzed through SPSS.
The results of the study revealed that 1). Price has positive relationship with the demand as the
significance value was 0.01 and value of t= 3.09. 2). income has positive relationship with the
demand as the value of t = 2.63, P < 0.001. 3). Durability has positive relationship with the
demand of electricity as the significance value was 0.01 and value of t= 5.65. 4). The objective
is through a combination of demand and supply side managements to reduce demand through
different demand response programs during peak times and thereby save costly power generation
and energy resources and at the same time reduce vulnerability.
(Viviana, 1999) Conducted research on the topic of empirical research on diffusion of consumer
durable goods has mostly focused on adoption disregarding the importance of replacement sales.
The purposed of this researched article was develops a demand model that incorporates both
elements. Unlike previous studies, in this research study several economic variables (e.g.,
product price, disposable income, energy prices, and new private housing starts), and dependent
variable replacement sales. Data collected from U.S. data of electric heater for 1946- 1995, 50
years data were collected, for analysis purpose used structuring modeling technique and result
show that sales forecasting can be improved by allowing adoption to depend on various
economic factors.
(Andrew Fanara & Duff, 2010) Conducted study on the topic of small devices is having a big
impact on U.S. utility bills. The purpose of this research article was energy consumption
attributed to electronic devices in the typical U.S. home has more than doubled since 1980 and is
expected to continue to grow at a rate nearly double the forecasted growth rate for residential
electricity end use. data collected from U.S.A. electric stores 500 questionnaire was filled
through customer of electric products. Result show that demand increase due to changing of life
style of people in home appliances. The breadth of these devices also grows continuously, driven
by technological innovation designed to meet surging consumer demand and changing lifestyles.
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While the traditional sources behind this increasing energy consumption trend are office
equipment and consumer electronics, other miscellaneous devices, such as power tools, portable
appliances, and personal care products contribute as well. As a result, new opportunities exist
for energy star to highlight existing electronics products that are efficient across multiple modes
of operation, including "active" or "on" mode, and to address nontraditional miscellaneous
products. As each opportunity to address multiple modes of operation and product types presents
itself, it brings with it the need to overcome a variety of technical challenges while designing
relevant policy options that will benefit consumers.
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CHAPTER No. 3
DATA & METHODOLOGY
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3.0 Introduction
The main aim of this chapter is to discuss and explain the research methodology to be used in the
collection of data and after collection, analyzing the data to check and test the research model of
proposed study, which is the factors affecting customers switching in the context of textile
industry of Pakistan. Data collection technique and method, population, sampling techniques,
validity and reliability of data, and data analysis technique is discussed in this chapter.
3.1 Research Paradigm
The first paradigm is Positivism which is a quantitative research approach in which assumptions
are made on existing theory to verify that theory. In positivism the numeric data is collected
through questionnaire survey. The collected data was then analyzed by using SPSS.
Second paradigm is Interpretivism which is a qualitative research approach in which assumptions
are made by the researchers which will then generalize through the opinions of the people. In
interpretivism data is collected by asking open ended questions from the respondents. The
collected data is in the form of words and images. So in interpretivism a theory is generated.
Pragmatism is a research approach in which the mixture of both positivism and interpretivism are
used.
The present study uses the positivism research approach. The reason for selecting the positivism
research approach is that the present study is based on the previous researches and this study
verifies the theory of previous researches i.e. factors affecting customer switching. Another
reason is that present study used the survey questionnaire technique to collect the data and SPSS
to analyze the data.
3.2 Tools of Data Collection
In order to find data on impact of factors affecting customers switching in the context of textile
industry of Pakistan the data is collected on the variables which are Product Image, product
price, Product Quality, Service quality and customer switching. Product Image, product price,
Product Quality and Service quality are independent variables while customer switching is the
dependent variable of the proposed present study. Questionnaire survey technique is used in this
study to collect the data through questionnaire on variables of the study. The main reason of
selecting the survey questionnaire technique that data can be collected easily through five likert
scale questions and this technique is very useful and widely used in social sciences. A survey
describes a population by providing “a quantitative or numeric description of some portion of the
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population the sample, through the data collection procedure of asking questions of people. This
facilitates a researcher to simplify the findings from a sample of responses to a population.” In
addition, questionnaire survey data can provide useful statistics to the researcher, which can be
used to describe how things are and why the phenomena occur.
3.3 Sample & Sampling Technique
3.3.1 Population
The population of the study is the youngsters of Lahore aging 18 to 28, using textile products of
pace.
3.3.2 Sample size
The data of the study is collected by using self administered questionnaires from the 150
customers of two branches of pace (,Gulberg branch, and Model town) are selected as the sample
size by using convenient sampling technique.
3.3.3 Sampling Technique
The study employs the convenient sampling technique in which the researcher collect data from
the sources which is most conveniently available to the researcher.
3.4 Measures
In order to measure the variables of the present study filled questionnaires were used. The data
was collected from the participants through survey using five point likert scales only and ask 19
questions from participants. The each variable was measured by asking 19 questions by using 5
point likert scale.
Product Quality
The variable product quality was measured by asking 5 questions from participants by using 5
point likert scale ranging from 1 for strongly disagree to 5 for strongly agree.
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Product price
The variable product price was measured by asking 3 questions from participants by using 5
Brand Image
The variable Brand Image was measured by asking 4 questions from participants by using 5
Service quality
The variable service quality was measured by asking 4 questions from participants by using 5
Customer switching
The variable customer switching was measured by asking 5 questions from participants by using
5 point likert scale ranging from 1 for strongly disagree to 5 for strongly agree.
3.5 Methodology
The data of the study was analyzed by using SPSS 17.0 software. In this research we used
descriptive and inferential statistics for the analysis of the data. The inferential statistics is
defined as; inferential statistics are for generalizing your findings to a broader population group.
Descriptive statistics comprises the kind of analyses we use when we want to describe the
population we are studying, and when we have a population that is small enough to permit our
including every case.
3.5.1 Descriptive Statistics
The present study employed descriptive statistics to find the maximum and minimum range of
data and also to find the mean and standard deviation of data through frequency tables,
descriptive statistics.
3.5.2 Histograms
After that histograms were used to check the normal distribution of the data. The bell curved
shaped of the data shows that the data is normally distributed.
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3.5.3 Scatter Plots
Scatter plots were used to determine the relationship among variables. Scatter plots also
confirmed that whether the relationship between two variables is linear or non linear.
3.5.4 Correlation
Correlation was used to check the level of correlation among the variables of the study. The
correlation to find the relationship among variables as well as check the strength of the
relationship of different variables. It also shows the direction of relationship between two
variables.
3.5.5 Regression
Regression analysis was used to check the strength of relationship among variables. In regression
analysis t-test was used to find the level of significance and r-square test was used. R-square test
tells that how much dependent variable is affected by the independent variable. At the last the
present study employed the f-test to check the overall relationship of the independent variable
with dependent variable.
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Chapter 4
Data analysis
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Demographic table 1
Demographic questions were asked in order to know profile of the respondents of this study.
From Figure, there are 250 respondents ask the question of gender in which have to categories
male and female respondents first 192 male respondent mark in first category in percentage 77%
in second category female respondent are 58 in percentage 23% female participated.
Demographic questions were asked in order to know profile of the respondents of this study.
There are 250 respondents ask the question of age of the respondent first category 65 respondent
lie on 20 years to 25 in percentage 26%, second category 26 years to 30 in which 100
respondents, in third category 41respondent lie on 31- 25 years and in percentage 16% . last
category 44 respondent lie on 36- 40 years.
Reliability analysis
Table 2
Sr# Variables Cronbach;s Alpha
1 Product image .834
2 Product price .764
3 Product quality .879
4 Service quality .809
5 Customer switching .849
For checking the reliability of the data and check our instrument is reliable or not we apply inter
item consistence test and check our data reliable first variable poverty reduction factors in this
research have 5 question and value of cronbach’s alpha is .807 that’s shows data or instrument
are valid next variable Product image factors and have question and value of .834, next variable
Product price factors and have 5 question and value of .771 also shows our data are valid for this
research and last variable Islamic Financial Institute & Product quality used 4 question and
value of cronbach’s alpha .798 shows data are reliable because if the value of cronbach’s alpha is
greater than .7 than data is reliable and our instrument for this research valid.
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Descriptive statistics:
Table 3
N Minimum Maximum Mean Std. Deviation
Product image 150 1.25 4.75 3.5617 .96279
Product price 150 1.33 4.67 3.4889 .96212
Product quality 150 1.00 4.80 3.5560 .94886
Service quality 150 1.00 4.75 3.5800 .96252
Customer
150 1.00 4.75 3.5817 .95779
switching
Valid N (listwise) 150
Table 3 presents the descriptive statistics that show the overall picture of all the five variables.
There were scales of 5 responses that lead to the options (strongly disagree, disagree, neutral,
agree, and strongly agree). Number of observations of each variable is 150. In the above table the
mean values and the values of standard deviation of all the five variables have been shown.
Mean value provides the idea about the central tendency of the values of a variable. The mean
value of the brand image (mean: 3.56), product price (mean: 3.48), product quality (mean: 3.55),
service quality (mean: 3.5), and customer switching (mean: 3.58). The value of minimum table
shows that the minimum option ticked by responded is 1 and the maximum option that is ticked
by respondent is 5.
Standard deviation gives the idea about the dispersion of the values of a variable from its mean
value. The standard deviation value for the brand image (SD: .962), product price (SD: .962),
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product quality (SD: .948), service quality (SD: .962), and customer switching (SD: .957) which
shows that most of the respondent answers were same for all the variables of the study.
Histogram:
This shows the graphical representation of the variables with the curve to check the normality of
the response rate. Let’s discuss the result of each variable’s histogram one by one
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The above table shows the data normality of Product image variable to check the distribution of
data apply histogram. Histogram shows most of the respondent lies on3- 4 that’s shows out of
150 respondent most of the respondent chose neutral and agree and rest of other respondent
chose high and low value and data of product image factors is normally distributed.
The second table shows the data normality of Product price variable to check the normally
distribution of data apply histogram. Histogram shows most of the respondent lies on 3- 4 that’s
shows out of 150 respondent most of the respondent chose neutral and agree rest of other
respondent chose high and low value and normal curve shows data is normally distributed.
Third table shows the data normality of product quality variable to check the normally
shows out of 150 respondent most of the respondent chose neutral and rest of other respondent
chose high and low value and normal curve shows data is normally distributed.
Fourth table shows the data normality of service quality variable to check the normally
shows out of 150 respondent most of the respondent chose agree and neutral and rest of other
respondent chose high and low value and normal curve shows data is normally distributed.
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Scatter plot:
Interpretation:
The above table shows a scatter plot matrix which shows the four scale variables i.e. product
image, Product price, Product quality, service quality and customer switching. The overall
pattern of dots show that there is diagonal upward straight regression line predicting positive
relationship between all variables product image, Product price, Product quality, service quality
and customer switching and apply Pearson correlation to check the mutually relationship
between all variables.
Correlation:
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Product Service Customer
Product image Product price quality quality switching
Product image Pearson Correlation
1 .927** .923** .858** .886**
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150 150
Product price Pearson Correlation
.927** 1 .825** .785** .789**
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150 150
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Product quality Pearson Correlation
.923** .825** 1 .936** .986**
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150 150
Service quality Pearson Correlation
.858** .785** .936** 1 .936**
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150 150
Customer Pearson Correlation

switching
.886** .789** .986** .936** 1
Sig. (2-tailed) .000 .000 .000 .000
N 150 150 150 150 150
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Correlation is significant at the 0.01 level (2-tailed).
Table 3 represents the table of correlations. The table shows that product image is strongly and
positively correlated with the value, product price, product quality, service quality and customer
switching (r = .927, p = .000; r = .923, p = .000; and r = .858, p = .000, r = .886, p = .000
respectively). The results also show that service quality has strong and positive correlation with
the product price, product quality, service quality and customer switching. Product price the
correlation table confirms that product quality, service quality and customer switching has strong
correlation with the (r = .825, p = .000; r = .785, p = .000; and r = .789, p = .000, respectively)
product price has strong and positive relationship with product quality, service quality and
customer switching. Product quality the correlation table confirms that service quality and
customer switching has strong correlation with the (r = .936, p = .000; r = .986, respectively)
product quality has strong and positive relationship with service quality and customer switching.
Regression:
Model Summary
Adjusted R Std. Error of

Model R R Square Square the Estimate
1 .886a .784 .783 .44634
a. Predictors: (Constant), product image
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ANOVAb
Sum of
Model Squares df Mean Square F Sig.
1 Regression 107.203 1 107.203 538.116 .000a
Residual 29.484 148 .199
Total 136.687 149
a. Predictors: (Constant), product image
b. Dependent Variable: customer switching
To check the affect of independent variable on dependent variable simple regression was
computed. The first table shows the observed values product image affect on the customer
switching is 78%. The value of the adjusted coefficients of determination (adj. R2) is affected.
The value of the adjusted coefficient of determination (adj. R2) is .78 which shows that product
image 78% affects in customer switching’s.
Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) .444 .140 3.168 .002
Product image .881 .038 .886 23.197 .000
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Coefficientsa
1 (Constant) .444 .140 3.168 .002
Product image .881 .038 .886 23.197 .000
a. Dependent Variable: customer switching
The coefficient table presents the results of the regression analysis. The objective of the
regression in this study is to find such an equation that could be used to find the impact of
product image on customer switching. The specified regression equation takes the following
form:
Customer switching = C + b product image
Customer switching = .444+.881 product image
The results show that the independent variables significantly affect the customer switching. Null
hypothesis in product image test is set as the simple regression coefficients are less than 0.05.
This test shows that the coefficients of the predictor are statistically significant at less than five
percent level of significance.
Model Summary

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1 .789a .623 .620 .59035
a. Predictors: (Constant), product price
ANOVAb
Sum of
1 Regression 85.107 1 85.107 244.203 .000a
Residual 51.580 148 .349
Total 136.687 149
a. Predictors: (Constant), product price
computed. The first table shows the observed values product price affect on the customer
The value of the adjusted coefficient of determination (adj. R2) is .62 which shows that quality
has 62% affects in customer switching’s.
Coefficientsa
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1 (Constant) .841 .182 4.624 .000
product price .786 .050 .789 15.627 .000
a. Dependent Variable: customers witching
product price on customer switching. The specified regression equation takes the following
form:
Customer switching = C + b product price
Customer switching = .196+.927 product price
hypothesis in produce price test is set as the simple regression coefficients are less than 0.05.
Simple regression:
Model Summary

1 .986a .972 .972 .16140
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Model Summary

1 .986a .972 .972 .16140
a. Predictors: (Constant), product quality
ANOVAb
Sum of
1 Regression 132.832 1 132.832 5.099E3 .000a
Residual 3.855 148 .026
Total 136.687 149
a. Predictors: (Constant), product quality
computed. The first table shows the observed values product quality affect on the customer
The value of the adjusted coefficient of determination (adj. R2) is .97 which shows that product
quality has 97% affects in customer switching’s.
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Coefficientsa
1 (Constant) .043 .051 .842 .401
Product
.995 .014 .986 71.408 .000
quality
product quality on customer switching. The specified regression equation takes the following
form:
Customer switching = C + b product quality
Customer switching = .043+.995 product quality
hypothesis in product quality test is set as the simple regression coefficients are less than 0.05.
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Model Summary

1 .936a .875 .875 .33922
a. Predictors: (Constant), service quality
ANOVAb
Sum of
1 Regression 119.657 1 119.657 1.040E3 .000a
Residual 17.031 148 .115
Total 136.687 149
a. Predictors: (Constant), service quality
Interpretation:
computed. The first table shows the observed values service quality affect on the customer
The value of the adjusted coefficient of determination (adj. R2) is .87 which shows that quality
has 87% affects in customer switching’s.
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Coefficientsa
1 (Constant) .249 .107 2.323 .022
servicequality .931 .029 .936 32.247 .000
service quality on customer switching. The specified regression equation takes the following
form:
Customer switching = C + b service quality
Customer switching = .249+.931 service quality
hypothesis in service quality test is set as the simple regression coefficients are less than 0.05.
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Chapter 5
Conclusion and discussion
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5.1 Discussion
The main objective to carry out the study is to identify the different factors which affect the
customers switching in the context of the textile industry of Pakistan. For this purpose the
present study uses quantitative research method to check the proposed model in the context of
Pakistan and the present study uses the customers of textile industry as the population of the
study. The customers of pace are taken as the sample of the study. The sample size of the study
is 150 customers of pace Pakistan. The study selects the Product image, Product price, Product
quality and Service quality as the predictors of customer switching through concerning the past
literature on these variables.
The literature review of the present study has reported the theoretical evidence from past studies
which confirmed the Product image, Product price, Product quality and Service quality as the
predictors of customer switching.
The present study has selected customer switching as the dependent variable of the study which
depends on the Product image, Product price, Product quality and Service quality. The present
study takes customer satisfaction as the mediating variable of the study. Many studies have been
done to check this relationship but in Pakistan specifically in textile products this linkage still has
a gap which is filled by the present study. So the present study is attempts to enhance the
literature on customer switching and its different factors in the context of textile industry of
Pakistan.
In the present study descriptive analysis used the descriptive statistics to find the maximum and
minimum range of data and also to find the mean and standard deviation of data through
frequency tables as well as histogram to check normal distribution curve. To check the
acceptance or rejection of hypothesis and check the relationship between variables the present
study used inferential analysis. In inferential analysis the present study tested the relationship
among Product image, Product price, Product quality, Service quality and Customer switching.
After observing the descriptive analysis, histograms, scatter plot matrix, and the correlations, the
regression has been used for further analysis.
Product image is strongly and positively correlated with the value, product price, product quality,
service quality and customer switching (r = .927, p = .000; r = .923, p = .000; and r = .858, p =
.000, r = .886, p = .000 respectively). The results also show that service quality has strong and
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positive correlation with the product price, product quality, service quality and customer
switching. Product price the correlation table confirms that product quality, service quality and
customer switching has strong correlation with the (r = .825, p = .000; r = .785, p = .000; and r =
.789, p = .000, respectively) product price has strong and positive relationship with product
quality, service quality and customer switching. Product quality the correlation table confirms
that service quality and customer switching has strong correlation with the (r = .936, p = .000; r =
.986, respectively) product quality has strong and positive relationship with service quality and
customer switching. Finally the regression analysis shows that Product image, Product price,
Product quality and Service quality has positive relationship with the customer switching’s.
Since Pakistan is a developing country and the topic of research has little evidence from
developing countries so this study helps to enhances the evidences from the developing countries
context.
The present study helps decision makers in Pakistan to influence the customer switching’s of the
customer regarding textile products. The other benefit of the present study is that it also
determines the impact of customer satisfaction on the customer switching’s of the customers.
Despite of the many benefits of the study, there are several limitations of the study. First, the
study is only limited to the textile sector of Pakistan because it collects data only from the
customers of textile industry, thus the results may not be valid to the other organizations.
Secondly, this study is limited because it only checks the impact of only four variables (Product
image, Product price, Product quality and Service quality) on customer switching’s. There could
be some other factors which can be taken such as the price, customer services, and trust etc. This
study is also limited to the customer switching’s which can be further enhanced to check the
profitability of the industry. Lastly, the results of the study could not be valid to service sector as
the present study was carried out in the context of manufacturing sector of the Pakistan.
5.2 Conclusion
The present study is an attempt to determine the factors affecting customer switching’s in the
textile industry of Pakistan. The study concludes that Product image, Product price, Product
quality and Service quality has strong effect on customer switching’s. Therefore the managers of
textile industry should emphasis on product quality and product image to make the customer
satisfied due to which they will b able to gain the attention of the customer again and again. It
53 | P a g e
means if customers are satisfied then they will buy the particular brand product again. The
quality of the product should be the main concern of the managers if they want to attain more
and more customers for their brand
Recommendation:
The present study finds out the different factors affecting customers switching in the textile
industry of Pakistan. The study also determine the impact of customer satisfaction on customers
switching in the context of textile industry of Pakistan
The current study contributes to the existing knowledge on customers switching’s by maintaining
different factors. It means it contributes to the body of knowledge on the relationship among q
Product Image, product price, Product Quality and Service quality and customers switching’s.
Since most of the research on this topic was done in the context of developed countries so this
research is an attempt to find such linkage in the developing countries context like Pakistan.
 The present study provides help to the marketing managers of the textile sector to maintain
the factors which involve in arising switching through satisfying them.
Lastly, the current study is significant in a way that it provides the theoretical understanding
of the association among Product Image, product price, Product Quality and Service quality
and customers switching’s in the context of Pakistan which is a developing country.
54 | P a g e
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Appendix
“Factors affecting the Consumer churn in the Context of textile Industry of Pakistan”
Dear Sir / Madam;
I am the student of superior university and I am going to conduct a survey for the purpose of
evaluation the data from your side on the topic of “Factors affecting the consumer churn in the
context of textile industry of Pakistan”. So for this purpose I need your help. Please give me
actual response. I promise you that the information will be only use for the purpose of research
and also we will be kept confidential and it will be only use for the purpose of study.
Gender: Male Female
Which cloth brand you prefer to purchase?
_________________________________
Product Image
1 My cloth brand have long time image in my mind
2 My brand name matters me to buy the product
3 My cloth brand has positive image
4 My always preference to by such product which has style
and design
product price
4 Product price having good impact on me
5 My product price provides additional value
6 For me product price provide value more than piece of
product
Product Quality
8 I always consider to buy quality cloths
9 I always wearing stuff which is comfortable for me
59 | P a g e
10 Style and design of the product always effect on me
11 Brand name plays an important role to decide for me the
style and design of product
12 The product quality plays an important role for influence
me to buy
Service quality
12 I go those brand shops where are providing good service
quality
13 Good communication of sales man impact on me
14 I prefer that brand which gives value on me
15 I prefer good service quality providing by my sales man
Customer switching
16 If I am not satisfied with the quality of the cloths I switch
another brand
17 If I am not satisfied with valuable cloths I prefer to switch
18 If I am not satisfied when people not praise my cloths I
switch other brand cloths
19 If I am not satisfied with price of branded cloths I switch
another cloths
60 | P a g e

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A THESIS

Submitted to the Superior University, Lahore

As partial fulfillment of the Requirements

Bachelors of Business Administration

SIR KASHIF MEHMOOD

We dedicate our project to

with customer switching

switching, textile, Pakistan.

1.3. Significance of the study ........................................................................................ 11

1.4. Research Question and Hypothesis.............................................................. 12

1.6. Theoretical framework ......................................................................................... 13

3.2 Tool of data Collection…………………………………………………………..30

3.3: Sample and sampling technique .....................................................................................31

1.1 Purpose Statement

1.2 Research Objectives

1.3 Significance of the study

switching by applying certain measures.

The current study contributes to the existing knowledge on customers switching’s by

1.4 Research question and Hypothesis

1.4.1 Main research question

Model of the study

Product’s Image Consumer’s

Figure 3= Customer switching and product image b= .881, sig =.000

Figure 3= Customer switching and product price b= .927, sig =.000

Figure 3= Customer switching and product quality b= .995, sig =.000

Figure 4=Customer switching and service quality b= .931, sig =.000

Julander, C. R, and Soderlund M, (2003) explored the effect of switching barriers on

(GATERSLEBEN, 2002) conducted research on the topic of measurement and determinants of

DATA & METHODOLOGY

3.3 Sample & Sampling Technique

3.3.2 Sample size

3.3.3 Sampling Technique

3.5.1 Descriptive Statistics

1 Product image .834

2 Product price .764

3 Product quality .879

4 Service quality .809

5 Customer switching .849

N Minimum Maximum Mean Std. Deviation

Product image 150 1.25 4.75 3.5617 .96279

Product price 150 1.33 4.67 3.4889 .96212

Product quality 150 1.00 4.80 3.5560 .94886

Service quality 150 1.00 4.75 3.5800 .96252

Valid N (listwise) 150

Product image Pearson Correlation

1 .927** .923** .858** .886**

Sig. (2-tailed) .000 .000 .000 .000

N 150 150 150 150 150

Product price Pearson Correlation

.927** 1 .825** .785** .789**

Sig. (2-tailed) .000 .000 .000 .000

N 150 150 150 150 150

.923** .825** 1 .936** .986**

Sig. (2-tailed) .000 .000 .000 .000

N 150 150 150 150 150

Service quality Pearson Correlation

.858** .785** .936** 1 .936**

Sig. (2-tailed) .000 .000 .000 .000

N 150 150 150 150 150

Customer Pearson Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 150 150 150 150 150

Adjusted R Std. Error of

1 .886a .784 .783 .44634

1 .927 .923 .858 .886

.927 1 .825 .785 .789

.923 .825 1 .936 .986

.858 .785 .936 1 .936