Communication Characteristics of Global Brands Store Staff as

Communication Characteristics of Global Brand’s Store Staff as a key CRM tool, and Local Customers’ Satisfaction and Intention to Repurchase: A Case Study of UNIQLO Thailand Papassara Chaiwong, Ph. D. , Chulalongkorn University Pohnpassorn Pokpermdee, Silpakorn University 1

AGEND A § § § Background Literature Review Methodology Data Analysis Results & Discussion Implication & Conclusion Communication Characteristics of Global Brand’s Store Staff as a key CRM tool, and Local Customers’ Satisfaction and Intention to Repurchase: A Case Study of UNIQLO Thailand 2

YOUNG CONSUMERS – RESEARCHBACKGROUN higher purchasing power and very keen on fashion. KEY Marketing Strategy STRONG & RAPID GROWTH of FAST FASHION BUSINESS in ASEAN 3

RESEARCHBACKGROUN THAILAND: 30 stores in BANGKOK alone: 19 stores 4

RESEARCHBACKGROUN International Business Strategy: Stores Managed by LOCALs, for LOCALs http: //www. uniqlo. com/us/storestaff/import ant/ STAFF as the 5

RESEARCHBACKGROUN In effectively running stores worldwide, the CRM implementation issues encompass CULTURALFACT than technical ORS rather ones. 6

RESEARCHOBJECTIVE S M+ C UNIQLO (Thailand) CRM UNIQLO ‘s Store Staff’s Policy & Strategy Communication Characteristics R UNIQLO Customer’s Satisfaction & Repurchase Intention To investigate: § policy and strategy of UNIQLO (Thailand) in training its store staff to be main players in CRM § communication characteristics of store staff that lead to customer satisfaction and repurchase intention. 7

LITERATUREREVIEW (1) CRM and Interpersonal Communication VERBAL and NONVERBAL a business strategy that seamlessly integrates every aspect of business that touches customer. Ali and Alshawi (2004) the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction Kotler and Armstrong (2004, p. 16) create long-term customer loyalty and higher profits communication POSITIVE IMPRESSIONS and EXPERIENCES in EVERY TOUCH POINT 4 Key Points of Concern in Managing First Impression (Pondphan Shoeychitr, 2013): § § Physical appearance Spirit of Hospitality Outward Personality Inward Personality 8

LITERATUREREVIEW (2) Service Culture Managemen (Pisit Pipatphokakul, online) t Making the promise Service Culture Enabling the promise Standard Training )to internal customers( cultural expressions of a corporate members’ shared values and shared meaning reflected in both internal (relationship between managementemployee, employee-employee) and external (relationship between corporate’s representatives and customers or suppliers) interactions. (Edvardsson & Enquist, 2002) Delivering the promise )to external customers( Derived from: Zeithaml, V. A. , Bitner, M. J. , & Gremler, D. D. (2006). 9 Services marketing: Integrating customer focus across the firm.

LITERATUREREVIEW (3) Hofstede’s Dimensions of THA: Long-term, great THA: Low respect for traditions, Culture Individualism sm- yet, small propensity to save for the future. JAP: Long-term, high rate of investment in R&D. Collectivis m JAP: Collectivism Short-Long Term Orientation THA: High > Facesaving, maintaining harmony values, avoiding the unexpected JAP: One of the most UA; seeking for detailed facts and figures before making decision. High-Low Power Distance Hofstede’s Dimensions of Culture High-Low Uncertainty Avoidance Masculinity. Femininity THA: High > hierarchy and status orientation JAP: High > hierarchy, yet believing in concept of ‘being born equal’ and ‘meritocratic’ THA: Lowest masculinity among Asian countries. JAP: One of the most masculine societies; severe competition between groups; drive for excellence 10

RESEARCHQUESTIONS S M+ C UNIQLO (Thailand) CRM UNIQLO ‘s Store Staff’s Policy & Strategy Communication Characteristics R UNIQLO Customer’s Satisfaction & Repurchase Intention 1) What is UNIQLO’s CRM strategy in Thai society? 2) How does the Japanese management exploit Thai store staff as main player in CRM? 3) What are communication characteristics of the store staff, trained by Japanese Brand Management, that leads to Thai customers’ satisfaction and repurchase intention? 11

RESEARCHMETHODOLO 5 stores across BKK were picked by geographical purposive sampling method. S M+ C UNIQLO (Thailand) CRM UNIQLO ‘s Store Staff’s Policy & Strategy In-depth §interviews: UNIQLO’s Communication Characteristics Nonparticipatory Observation @ management § Expert in International UNIQLO’s 5 Business branches across Communication BKK R UNIQLO Customer’s Satisfaction & Repurchase Intention 200 questionnaires: § UNIQLO’s repeat customers (shopping @ uniqlo at least once a month, spending of >1000 bht/month) In-depth interviews § 20 voluntary 12

DATAANALYSIS S M+ C UNIQLO (Thailand) CRM UNIQLO ‘s Store Staff’s Policy & Strategy Content Analysis Communication Characteristics R UNIQLO Customer’s Satisfaction & Repurchase Intention Descriptive § frequency, distributions, Statistics: percentages, means and standard deviations Inferential § difference between Statistics: means of independent groups: 13 T-Test, One-way

RESULTDEMOGRAPHIC. 59% Female. DATA Age: § 18 to 30 years old (75. 5%) § 30 to 45 years old (18. 5%) Occupation: § employees of private companies (51%) § university students (28. 5%) § business owners (13. 5%) RFM: § 83% visited the store 1 to 2 times/month § SPENDING: >1, 000 to 3, 000 baht/visit (48. 0%); less than 1, 000 baht/visit (43. 5%) Monthly Income: § 5, 000 to 15, 000 baht (34. 5%) § > 15, 000 – 25, 000 baht (27. 5%) § > 45, 000 baht (15. 5%) 21. 5% had ever visited UNIQLO shop in Japan 14

DNA RESULTANDDISCUSSION#R Q 1&2 Communication Characteristics (Verbal and Non-verbal) Cleanliness To keep every point of store area, including oneself, clean always. Tidiness To keep everything in order and pleasant to the eyes, dress properly. Politeness To communicate with courteous, respectful and considerate manners. Energetic To be enthusiastic, demonstrating by communicating with pleasantly loud and clear voice. To provide service by the appointed time, never be late. Punctuality Briskness Hospitality Teamwork Correctness Haki - To express feeling of quickness, smartness and readiness to provide service, demonstrating by standing straight and being ready to move. To be friendly, express willingness to provide service with sincere smiley face, and have communication empathy To be able to coordinate and work in collaboration with other staff, both from the same and different store, to supportively respond to the customer’s requirement. To give accurate information relating to product and service to the customers in every contact point/process; and do the best to avoid mistakes in communication/actions. § Formal Training § Daily Meeting § Staff Handbook § Personal Mentoring 15

RESULTANDDISCUSSION#R Q 1&2 Nine UNIQLO’s DNAs, initiated by the parent company in Japan, were saturated and imparted via their systematic training programs to ensure that the Thai staff could effectively communicate and build relationship with local customers to create positive moment of truth in every touch point (i. e. admission, sale area, fitting room and cashier), and eventually lead them to become loyal customers. Some specific DNAs in Japanese culture, i. e. Briskness (Haki) or feeling of quickness, smartness and readiness demonstrated through manners of standing strait, stretching chest and being ready to move, could not be fully imparted, so that it could not be clearly seen in communication characteristics of the staff; whereas, DNAs of Hospitality and Politeness were obviously expressed. ‘SERVICE CULTURE Management. Training. Standard TRIANGLE’ SHARED Cultural Characteristics 16

RESULTANDDISCUSSION #3 1. 00 – 1. 80 = strongly dissatisfy; >1. 80 – 2. 60 = dissatisfy; > 2. 60 -3. 40 = neither satisfy nor dissatisfy ; > 3. 40 – 4. 20= satisfy ; > 4. 20 -5. 00 = strongly satisfy # 3 7 9 UNIQLO’s DNA and its reflected Communication Characteristics POLITENESS 3. 1 Staff used polite language with tone of voice ‘ka/krub’. 3. 2 Staff communicated with proper tonality while providing service. HOSPITALITY 7. 1 Staff were friendly and had sincere smiley face. 7. 4 Staff attentively listened to your problem with supportive facial expression. CORRECTNESS 9. 5 Staff were able to give advice on how to choose clothes that suited you. Level of Satisfaction* (n=200) Ran k 4. 34 4. 31 3. 97 0. 69 0. 71 0. 73 0. 78 1* 2* 3* 21* 3. 69 0. 78 22* THAI Cultural Characteristics SATISFACTION 17

RESULTANDDISCUSSION #3 Test for differences between means from separate groups of subjects: Statistically different at significance level of 0. 05: § sex (female > male) § age group (18 to 30 years old > 45 to 60 years old) § range of income (lower income > higher income) THAI Cultural Characteristi cs SATISFACTION whereas, mean scores of satisfaction rated by customers who had ever and had never visited UNIQLO’s shop in Japan were not statistically different. 18

RESULTANDDISCUSSION #4 1. 00 – 1. 80 = strongly dissatisfy; >1. 80 – 2. 60 = dissatisfy; > 2. 60 -3. 40 = neither satisfy nor dissatisfy ; > 3. 40 – 4. 20= satisfy ; > 4. 20 -5. 00 = strongly satisfy # 1 2 3 4 5 6 Factors affected Repurchase Intention Product Place (location) Promotion (sales promotion) People (store staff) Price Process (Product Arrangement) 7 Physical Evidence (e. g. ambience, decoration, signage) REPURCHASE Level of Agreement* (n=200) 4. 24 4. 21 3. 99 3. 96 3. 95 3. 93 Ran k 0. 65 0. 63 0. 75 0. 68 0. 70 0. 72 1 2 3 4 5 6 3. 93 0. 75 7 19

RESULTANDDISCUSSION #3 1. 00 – 1. 80 = strongly dissatisfy; >1. 80 – 2. 60 = dissatisfy; > 2. 60 -3. 40 = neither satisfy nor dissatisfy ; > 3. 40 – 4. 20= satisfy ; > 4. 20 -5. 00 = strongly satisfy # 1 2 3 4 5 6 7 Factors affected Repurchase Intention Level of Agreement* (n=200) Ran k Staff had spirit of hospitality, giving you warm welcome and sincere smiley face. Staff politely and gently communicated with you. Staff expressed feeling of enthusiasm and quickness while providing service Staff effectively coordinated with one another in service delivery. Staff had good product knowledge and were able to provide accurate information. Overall: Staff had good personality. 4. 20 0. 73 1 4. 20 4. 16 0. 78 0. 81 2 3 4. 06 4. 04 0. 78 0. 77 5 6 4. 03 0. 68 7 Overall: Staff made your shopping experience at UNIQLO awesome. 4. 11 0. 77 4 THAI Cultural Characteristics REPURCHASE 20

§ § IMPLICATIONANDCONCLU SION Cultural SIMILARITY & SPECIFICITY GAP between Japanese management and Thai staff. To catch the UNIQLO’s DNAs, good demonstration and examples from the management were consistently needed. To empower local staff to effectively connect with local customers, the management should develop healthy relationship >> not too stressful with them. The more the staff feel sense of belonging, the more they will be with the company and are willing to be trained to become effective brand representatives. 21

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Communication Characteristics of Global Brand’s Store Staff as a key CRM tool, and Local Customers’ Satisfaction and Intention to Repurchase: A Case Study of UNIQLO Thailand Papassara Chaiwong, Ph. D. , Chulalongkorn University Pohnpassorn Pokpermdee, Silpakorn University 23