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As a result, according to the findings of this research, the customer experience with the online shopping environment has a significant
positive beneficial impact on customer satisfaction with Awanazstyle Sdn. Bhd. products. This may be because customers are more likely to
favour an online shopping environment that is visually appealing. The shopping platform may not be successful if it does not provide a
compelling feature that draws the customer's attention and encourages them to make a buy or even browse the complete goods or services.
Consumers may instantly appraise a company's trustworthiness and dependability based on the shopping platform, which represents the
image of the business. It is necessary for the shopping website’s owner who intends to attract more online shoppers to consider ways to make
the online shopping environment more appealing (Lin & Sun, 2009).
The findings indicated that the customer satisfaction was negatively impacted by the customer experience with staff service, indicating
that there was no statistically significant relationship. Hence, there was no substantial effect of customer experience with staff service on
customer satisfaction. This is because, the results revealed that the p-value was 0.301, which exceeded p>0.1, and the value of β = 0.098,
which was not acceptable.
This finding is in contrast to a prior research done by Pei et al. (2020), who discovered that the customer's experience with staff service
had substantial influence on customer satisfaction. Consumers and business representatives must engage with one another throughout the
process of buying via an online platform. However in this situation, there was not enough required interactions. This may be influenced by
the fact that the buyers simply need to choose the item that they want and notify the staff through Facebook Messenger or WhatsApp to
finish the purchase. The presence of an auto-reply function in each application shows that users have little to no opportunity to connect
directly with the company's employees. The use of auto-reply and rapid response features to the greatest extent possible might assist
consumers in responding to orders or dealing with complaints that arise promptly (Haq Junaidi & Sabar, 2019).
However, there have been instances when the auto-reply does not appropriately answer the buyer's inquiry, resulting in the consumers
becoming dissatisfied. In the context of Awanazstyle Sdn. Bhd., the respondents might feel that it is not enough to satisfy their enquiry.
Customers have an active part in the notion of staff service while the staff takes on the role of problem-solving, assisting consumers in
obtaining information prior to purchase, and dealing with technical issues as well as product returns and exchanges (Pei et al., 2020). If this
is not fulfilled, it will have an adverse effect on consumer satisfaction.
The relationship between customer experience with shopping procedures and customer satisfaction has been shown to be positive. This is
because, H3 had a p-value of 0.066, which was p<0.01, and β = 0.197, which was acceptable.
Customer satisfaction is influenced by the customer's experience with shopping procedures; thus, the more pleasant the customer's
experience with shopping procedures, the greater the degree of customer satisfaction. The shopping method must be as efficient as necessary
to achieve the maximum customer satisfaction, and the efficiency of a store's operation influences the store's competitiveness (Artusi et al.,
2020). The ease that online shopping provides throughout the purchasing process is one of the primary reasons why most people choose to
purchase online (UPS- United Parcel Service of America, 2013). Thus, the clients of Awanazstyle Sdn. Bhd. seems to be satisfied with the
shopping procedure.
Perhaps through online shopping, customers are more satisfied since they have access to product information and convenient process. This
is supported by Jiang & Rosenbloom (2005), who stated that e-retailers who provided detailed product information enjoyed higher levels of
positive customer satisfaction. Pham and Ahammad (2017) also reported that website that was easy to use would make customers happy
when shopping on the Internet.
Customer experience with a product has a significant beneficial impact on customer satisfaction according to this research. This is shown
by the significant result of H4, which states that customer experience with a product has a significant impact on customer satisfaction. The
findings showed that the p-value was 0.000, which was less than the 0.001 threshold, and that the β value was 0.456, which was within
acceptable boundaries. Customer satisfaction is linked to the customer's experience with the product, and this result is consistent with the
results by Pei et al. (2020). Product experience is a product's ability to accomplish its tasks, which include product performance, durability,
dependability, accuracy, ease of use and maintenance, and other important characteristics (Susanti & Jasmani, 2020).
The customers' experiences with Awanazstyle Sdn. Bhd. products were statistically significant and positive, influencing their satisfaction.
Product experience is important to customers because it allows them to determine whether or not the values are in accordance with the price
that they have paid. Customer dissatisfaction will result if the firm fails to provide the product values in a condition that corresponds to the
statement described in the product description. In accordance with the findings of this study, the customer of Awanazstyle Sdn. Bhd. seem
to be pleased with the goods purchased through the Internet platform. Understanding the relationship between quality and customer
satisfaction has offered some insights into evaluating the levels of satisfaction for the whole product experience (Mumtaz et al., 2011).
Product experience does, in fact, have a relationship with customer satisfaction, with the greater the degree of product experience being
associated with the higher level of customer satisfaction.
This study gives practical recommendations for retailers in order to raise their level of customer satisfaction, particularly for small and
medium-sized enterprises (SMEs). In accordance with the results of the study, the customer's experience with the product has the greatest
impact on their overall satisfaction. For this reason, Awanazstyle Sdn. Bhd should strive to improve the consistency and quality of their
products to improve the overall customer experience. As opposed to wasting money on something that will not contribute to growing
customer satisfaction, improving the products will assure improved customer satisfaction and eventually result in an increase in the number
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431 Qayum & Mazilah (2021)
of online customers. The greatest approach to win over a customer's heart and satisfaction is to provide a better product than what is already
on the market. In order to do this, Awanazstyle Sdn. Bhd may need to improve the quality of their product presentation in both advertising
and packaging. Recent product presentation methods, including in video and 360-degree rotation format, portray product information in a
more realistic way as compared to the static image and plain text formats that have been prevalent during the early years of online commerce
(Verhagen et al., 2014).
The customers' experiences of the shopping environment, as stated in the problem statement, are critical factors in determining whether
they will be satisfied with their online buying experience. If a store chooses to use a website or social media platform, the platform should
accurately represent the products and services that the merchant is providing. To guarantee that customers are comfortable while purchasing
or browsing through the online catalogue, a user-friendly interface should be considered by Awanazstyle Sdn. Bhd. A visually appealing
website is meaningless if the client is unable to fully comprehend or explore all of the information. As a result, having an appealing design
and a user-friendly interface, and making it simple for customers to explore are all critical components for creating a successful online
shopping experience of Awanazstyle Sdn. Bhd.
Finally, it was shown that the customer's experience with the shopping procedure had an impact on customer satisfaction. Developing an
awareness of the salient dimensions of online shopping comfort and the particular domain within each dimension is a critical starting point
for online merchants who want to optimise customer speed and ease of buying online (L. (Alice) Jiang et al., 2013). Consequently,
Awanazstyle Sdn. Bhd should ensure that relevant information about the product, including product descriptions, images, and customer
testimonials, is made accessible to customers. This may assist the customers in making purchase decision, and positive reviews can improve
the customer's urge to purchase. With the availability of a range of online payment methods, businesses should choose the ones that provide
the easiest and quickest transaction to ensure high levels of customer satisfaction. A well-designed shopping procedure is essential for
providing a seamless shopping experience.
There are a number of suggestions for future researches. Other variables, particularly the three important variables, should be investigated
in future in-depth studies. They are essentially the factors that impact customer satisfaction. Furthermore, owing to time restrictions, only
125 complete sets of questionnaires were able to be collected. Consequently, it is advised that the size of surveys, including the number of
respondents, be raised so that more accurate and trustworthy findings may be obtained, as well as to increase the credibility of the study.
Samples might also be divided into age groups to better understand the perspectives. The sample utilised was restricted to customers who
have bought clothing online through Facebook with Awanazstyle Sdn. Bhd., and it did not include consumers who purchased other types of
commodities. Hopefully, future research will be able to address this issue.
■ 6.0 CONCLUSION
The outcome of this study was the effective identification of the customer satisfaction theory, which indicated that customer experience
would lead to customer satisfaction, for Awanazstyle Sdn. Bhd. The results revealed that customer's experience with the shopping
environment, the customer's experience with the shopping procedure, and the customer's experience with the product had substantial impact
on customer satisfaction. However, the research found that the customer's experience with staff service did not impact customer satisfaction.
The results will give valuable insights into the elements that retailers should consider to achieve a greater level of customer satisfaction
especially for Muslimah apparel industry.
■ 7.0 ACKNOWLEDGEMENT
To begin, I would like to express my sincere appreciation to Dr. Mazilah Binti Abdullah, my thesis supervisor, for all of her suggestions,
encouragement, and constructive criticism. Additionally, I want to convey my gratefulness to Dr. Adaviah Binti Mas'od for teaching on the
topic of Marketing Research. Next, special thanks to my expert validator, Dr. Norzaidahwati binti Zaidin who gave her honest opinion that
helped me develop this research instrument. To Awanazstyle Sdn. Bhd., thank you for sharing the knowledge and information, and for
helping me distribute my questionnaire to the target population.
It is also appropriate to recognize the help provided by a fellow friend. I want to express my heartfelt thanks to all of my friends who have
come to my aid on many times. There were a lot of things to consider about their opinions and ideas. Unfortunately, there was not enough
space in this area to list all. To each and every one of my family members and friends, I deeply appreciate their efforts.
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432 Qayum & Mazilah (2021)
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FINAL YEAR PROJECT
AHIBS UTM SKUDAI JAN 2022
FACTORS AFFECTING SALES PERFORMANCE: CASE STUDY OF
NAVEGACION SHIPPING (J) SDN BHD
Muhamad Rifqi Zafran Bin Abdul Hakim, Dr Adaviah Binti Mas’od
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected]
ABSTRACT:
This paper provides an overview of logistics and shipping. From the logistics perspective, freight logistics, container logistics, vessel logistics,
and inland transport logistics are the backbone for industry to deliver it to the manufacturer or industry. The main planning problems and
research opportunities in each logistics segment are reviewed and discussed to know the factors affecting sales performance towards logistic
companies. This is because logistic and shipping is essential nowadays because this is where the raw material was transport to the
manufacturer to create a finish good. This research investigates the relationship between Sales Fluctuations, Training and development,
Commission and Incentive, Planning of Sales Activity with Sales Performance. The sample size of the study was a total of 118 respondents.
Primary and secondary data were used to collect data by using a questionnaire for both employees and salespeople. The limitations and
suggestions for overcoming limitations are discussed. Based on the results in this paper, the theoretical and practical implications have been
discussed.
Keywords: Logistic, Shipping, Sales Performance, Incentive, Commission, Training.
ABSTRAK:
Kertas ini memberikan gambaran keseluruhan logistik dan penghantaran. Dari perspektif logistik, logistik pengangkutan, logistik kontena,
logistik kapal dan logistik pengangkutan darat adalah tulang belakang untuk industri menyampaikannya kepada pengilang atau industri.
Masalah perancangan utama dan peluang penyelidikan dalam setiap segmen logistik dikaji dan dibincangkan untuk mengetahui faktor yang
mempengaruhi prestasi jualan terhadap syarikat logistik. Ini kerana logistik dan penghantaran adalah penting pada masa kini kerana di
sinilah bahan mentah diangkut ke pengilang untuk menghasilkan kemasan yang baik. Penyelidikan ini menyiasat hubungan antara Turun Naik
Jualan, Latihan dan pembangunan, Komisen dan Insentif, Perancangan Aktiviti Jualan dengan Prestasi Jualan. Saiz sampel kajian adalah
seramai 118 orang responden. Data primer dan sekunder digunakan untuk mengumpul data dengan menggunakan soal selidik untuk kedua-
dua pekerja dan jurujual. Had dan cadangan untuk mengatasi had dibincangkan. Berdasarkan keputusan dalam kertas kerja ini, implikasi
teori dan praktikal telah dibincangkan.
Kata Kunci: Pengalaman membeli belah dalam talian, insentif luaran, penjual atau perkhidmatan pelanggan, keselamatan dan privasi.
1.0 INTRODUCTION
Today, the shipping or logistic industry is the backbone of the global supply chain to ensure that supply chains move between countries.
This sector is intimately linked to a country's commerce and economic growth. Companies selling raw materials often assign logistics
companies to be responsible for planning, organization, coordination, and control for materials flows from the extraction of raw materials into
ready-to-supply final products (Ulgen & Forslund, 2015). In addition, logistics or shipping offers customer service by guaranteeing that the
materials and resources for the building are always sufficient and accessible (Business & Research, 2018).Logistics are gaining prominence
and are acknowledged as an essential aspect in a firm's competitiveness, not restricted to transport and warehouse (Ying et al., 2014). According
to an analyst opinion in the article (Statista,2021), Between 1980 and 2020, the tonnage of container ships has increased by around 11 million
metric tons to approximately 275 million metric tons. Malaysia had such an average range of indexes of 3.49 compared to 3.44 in 2010 (Roslan
et al., 2015).
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Malaysia had seen a reasonable 1.45 percent growth rate. In many developing countries, such as Singapore, Malaysia, and Thailand,
this has increased the export industry. Logistics operations have grown significantly in supporting export operations in larger export markets
(Roslan et al., 2015). According to Mentzer and Konrad (1991), efficiency in performance indicators demonstrates the amount toward which
resources are used and how efficiently goals are achieved. In addition, differentiation is defined as the capability of logistics to generate value
for the client by means of unique and distinctive logistical services. In the light of the relevance of this problem.
1.1 Problem Statement
It is a great way to examine business with a sales performance in terms of results and behaviors (Anderson and Oliver, 1987). A results-
based perspective focuses on objective results measures (e.g., dollars, product sales, market share, profits, new accounts), while a behavioral
perspective frequently involves a subjective and complicated evaluation. In the past, each sales staff's success was only judged in terms of sales
volume. Nowadays, sales managers recognize that unproductive sales may be made and sales at the price of future sales (Dhingra, 2003). The
priority is not on integrating sales and marketing operations, as sales and marketing are necessary to carry out by different personnel suitable to
each task (Mary' & Kefyalew, 2018).
During the interview session, and while discussing and observing with workers and sales representatives, Navegacion Shipping (J)
Sdn Bhd's manager recognizes that several elements might impact the workers' performance and sales representatives among these elements.
For example, the yearly sales plan/actual sales that cannot be achieved or carried out is significantly less than the planned, fluctuating sales
volume around the fiscal year/ Product shortages/demand and supply imbalanced /. Failure of sales personnel training and development
initiatives. Failure to provide appealing incentives and commissions to stimulate the sales team. Thus, to investigate and get some managerial
insight, this study focuses on these elements and evaluates what variables impact sales success for Navegacion Shipping (J) Sdn Bhd.
1.2 Research Objectives
RO 1: To investigate the influence of sales volume fluctuation towards a company's sales performance.
RO 2: To investigate the influence of training and development towards a company's sales performance.
RO 3: To investigate the influence of commission and incentives towards a company's sales performance.
RO 4: To investigate the influence of planning sales activity towards the company's sales performance.
2.0 LITERATURE REVIEW
2.1 Sales Performance
According to (Rodriguez & Honeycutt, 2011), sales performance is defined as the degree to which a sales representative builds more
incredible customer connections by identifying the client's specific requirements and delivering a solution that satisfies those demands. The
manager affects sales performance by providing feedback to salespeople based on their effort or performance (Shannahan et al., 2013). For
salespeople who know how to present product details properly, they can better serve their customers by identifying their needs throughout the
sales process, increasing the level of trust and satisfaction that their customers have in the company, and ultimately increasing sales performance
(Ohiomah et al., 2019). Effective information utilisation increases a salesperson's capacity to engage in smart selling activities (adaptive selling
and sales planning), which have been significantly correlated with sales performance (Hunter & Perreault, 2006). Each salesperson is expected
to have a direct influence on sales performance, which is monitored monthly for each of them (Wan et al., 2012). Managers assist their
salespeople in increasing their sales performance and achieving sales targets (Gonzalez et al., 2014).
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2.2 HYPHOTESIS DEVELOPMENT
2.2.1 Sales Volume Fluctuations
A factor that can affect the sales volume fluctuation is the changing rate of shipping. The shipping sector is exposed to several
threats. For example, freight prices are influenced mainly by demand and supply (Korsfur, 2009), and extensive sales fluctuation in the
market influences sales performance (Nilsen and Dønvik in 2010). Additionally, as (Korsfur 2009) notes, freight prices seem to be
more fluctuating in "tight and robust markets." The issue occurs because the demand is changing and is related to the fact that it takes
such a long time for the shipment being ordered to be delivered. Furthermore, sales fluctuations have been discovered to contribute to
sales performance. Hence the Consumer Sentiment Index has been proved to be a reliable predictor of long-term sales (see, e.g.,
Allenby, Jen, and Leone, 1996; Katona, 1975). Sales fluctuation analysis by the team may provide management with a clear sales
performance of employees (Christoph & Roser, 2020).
H1: Sales volume fluctuation has a significant influence on sales performance.
2.2.2 Training and Development
As a result, the training and development were implemented as a management reform to address and resolve sales performance
difficulties that businesses faced (Sharif, 2002). Additionally, it educates workers on how to perform their jobs most effectively and
efficiently to increase sales performance (Ashok Kumar, 2013). Increased productivity and sales performance can be related to the
Training and Development program (Zekiri & Sattar Niazi, 2011). To maximize the effectiveness of training and development efforts,
training must identify and concentrate on areas where they specialize in addressing issues (Fu et al., 2013). According to (Sim 2002),
training and development help to achieve organizational goals and salespeople performance. Training and development lead to increase
efficiency while creating more positive evaluations toward sales performance (Hashim, 2014). Training and development lead to
increase efficiency while creating more positive evaluations toward sales performance (Hashim, 2014).
H2: The training and Development factor significantly influences sales performance.
2.2.3 Commission and Incentive
Commissions are used as a motivator for sales representatives, and as a result, salespeople focus increasing interest in task
completion and achievement of quantitative sales performance (Fu et al., 2013). Commission based on (Armstrong 2003), is meant to
serve as an incentive, a reward, and a way of recognizing performance success. Commissions and incentives are changing benefits
depending on sales performance (Henrik Seglund & Peder, 2012). Commissions are the most often used method of encouraging
salespeople to improve their performance since, in fact, they motivate workers to participate in even more selling activities (such as
completing transactions) that result in higher commissions (Henrik Seglund & Peder, 2012). The strong connection involving sales
performance and commission assumes that individuals may consider increases in pay as a reward for contributing toward organizational
success (Ogbonnaya et al., 2017).
H3: Commission and Incentive factors have a significant influence on sales performance.
2.2.4 Planning of Sales Activity
Strategic sales planning will help company owners take a long-term view to increasing sales performance by providing the framework
for planning (Robinson, 2002). However, the most specific aspects of planning are the customer's geographical location, the number of
salespeople in the market, and the customer's interest in the service (Velic et al., 2012). According to (Hofer 2008), examined on
advantages of advance planning and determined that formal planning had a likely positive influence on sales performance. Sales planning
is critical because sales drive the firm, and without effective sales planning, businesses would struggle to operate effectively and meet
demand or sales performance (Heikkilä & Haapasalo, 2017). The impact of structured strategic planning has been linked to the
relationship that such a process has with sales performance (Gibson & Cassar, 2005).
H4: Planning of sales activity factor has a significant influence on sales performance.
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2.3 Research Framework Model
Figure 2.0: Five-Construct Theoretical Model of Sales Performance.
3.0 METHODOLOGY
3.1 Research Design
The research design also specifies all those other study components depending on the type described below, such as variables,
hypotheses, pilot tests, methods, and statistical analyses (Creswell et al., 2018). In other words, the research design explains how the
researcher investigates the primary research issue and therefore forms part of the research proposal (Imed Bouchrika, 2020).
Quantitative research has to be implemented throughout this project. As a researcher create a series of questionnaires to gather data and
information from the respondents. This study will only use one technique to disseminate the survey through Google Form. Because of the
Covid-19 outbreak, physical contact is not recommended. According to Vagias and Wade (2006), the Likert scale has five degrees of
agreement: strongly agree, agree, neutral, disagree, and strongly disagree.
3.2 Population And Sampling
The respondent for this research is selected among sales staff in Navegacion Shipping (J) Sdn Bhd and those related to this field. The word "population"
refers to a collective of people, organizations, items, and so forth that have similar features and are of interest to the researcher. The groupings' shared traits
set themapart fromother individuals, institutions, and things. Theworduniverse is sometimesused interchangeably with thetermpopulation (Dr. Rafeedalie,
2018). The sample is a simplified, accessible subset of a larger group. It is a subset of a more significant population with its features. When population
numbers are too huge for such a test to include all potential members or observations, samples are required in data analysis. (Adam Hayes, 2017). The
statistical power analysis table indicated that four independent variables needed a sample size of 118 respondents (Cohen, 1992. The sample was chosen
depending on the circumstances of the investigation. But the number of respondents would have to be greater than the value (118 responses) in order to
assure the validity of the research study. The sample technique applied in this study is non-probability sampling, often known as judgmental sampling. This
sampling technique is widely utilized in research, with respondents being chosen based on their accessibility and availability.
3.3 Data Collection
Data collection systematically collects and measures information on interest factors that will allow the respondents to identify
research questions, test hypotheses, and evaluate results (Kabir, 2016). Inaccurate gathering of data leads to inappropriate findings.
Two kinds of data are primary and secondary data for this collecting data. Primary data consist of information collected for certain
specific goals, and primary data are also collected via research and surveys. Secondary data is information that already exists that is
gathered for a particular purpose. Secondary data is cheaper compared to primary data, and it's not time-consuming. But for this research
will use primary data, secondary data and survey as a medium to complete this research.
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3.4 Research Instrument
According to (Japteth A, 2014) the term "measurement instrument" refers to various methods through which a researcher
collects information from the respondents for their study job. The word "data" refers to any information obtained from research
participants. The primary tool used in this research is closed-ended questionnaires. This study will use a series of questionnaires that are
multiple-choice and Likert scale based. Two parts were included in the questionnaire. Section A contains the respondents' demographic
information. Section B is the section in which will address the independent and dependent variables. This is a type of measure that will
be used throughout this whole research.
3.5 Data Analysis
Statistical Package of Social Science (SPSS) is used to analyze using data collected from questionnaires. Below is the
analysis that has been applied for this research. Thus, in the table also shows a rule of thumb from and reference for every analysis
Table 1.0: shows statistical tests used in this study.
4.0 RESULTS AND DISCUSSION
4.1 Demographic Characteristics
An overview of the respondents' profiles (Table 4.2) shows that most respondents were male; 108 people (91.5 per cent). Most
respondents are also in the age range of 26-35 years, 76 people (64,4 per cent). According to the natioanality, respondents' distribution
shows that most respondents are Malaysian 118 people (100 per cent0. In terms of race, most respondents are Malay and follow by
chinese 112 people (94.9 per cent) 5 people (4.2%). Concerning educational background, most respondents have diploma 80 people
(67.8 per cent). Lastly work experience most of repondent have 2-5 years experience for 84 people (71.2 per cent).
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Table 2.0: Demographic Background Table
DEMOGRAPHIC ITEM NUMBER OF RESPONDENT PERCENTAGE (%)
GENDER
Male 100 84.7
Female 18 15.3
AGE
25 years old and above 21 17.8
26 – 35 years old 76 64.4
36 – 45 years old 19 16.1
46 – 55 years old 2 1.7
DEMOGRAPHIC ITEM NUMBER OF RESPONDENT PERCENTAGE (%)
NATIONALITY
MALAYSIAN 100 100
NON-MALAYSIAN 0 0
RACE
Malay 112 94.9
Chinese 5 4.2
Indian 1 0.8
Other 0 0
EDUCATIONAL BACKGROUND
Spm 23 19.5
Diploma 80 67.8
Degree 15 12.7
Master / Phd 0 0
WORK EXPERIENCES
Less than a year 15 12.7
2 – 5 year 84 71.2
5 – 10 year 17 14.4
10 year above 2 1.7
4.2 Reliability Analysis
It is defined as a measure's capacity to stay consistent over time in the face of uncontrolled testing circumstances or respondent
variability (Mohajan & Mohajan, 2017). According to (Malhotra 2012), variables with a Cronbach alpha value greater than 0.7 are
acceptable and consistent. As a result, a reliability test is required in this research to determine the correctness of independent
variables. Cronbach's alpha must be at least 0.70; below this level, the common range's reliability coefficient is low (Jorge Wilfredo,
2016).
Table 3.0: Cronbach’s Alpha
Variables Cronbach’s Alpha N of item
Sales Fluctuations 0.777 4
Training and 0.725 5
Development
Comission and Incentive 0.713 3
Planning of Sales 0.709 4
Activity
Sales performance 0.753 3
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4.3 Normality Analysis
The distribution of the data is normally tested through skewness and kurtosis tests. If skewness and kurtosis values are
between -2 to 2, the data is considered to be normally distributed (Garson, 2012). Based on Table 4.4, skewness values and kurtosis
for all items are within -2 to 2. Thus, the data of this study are normally distributed.
Table 5.0: Skewness and Kurtosis
ITEM SKEWNEESS KURTOSIS ITEM SKEWNESS KURTOSIS
SF1 -0.118 -1.562 CI1 -0.179 -0.566
SF2 0.499 -0.764 CI2 0.233 -0.597
SF3 -0.479 -1.056 CI3 -0.341 -0.702
SF4 0.110 -0.851 PS1 -0.595 -0.942
TD1 0.007 -0.007 PS2 -0.260 -0.927
TD2 -0.082 -0.594 PS3 -0.093 -0.766
TD3 -0.341 -0.942 PS4 -0.528 -0.049
TD4 -0.134 -1.122 SP1 -0.347 -0.816
TD5 -0.430 -0.766 SP2 -0.080 -0.904
SP3 -0.319 -0.724
4.4 Outlier Analysis
Univariate Outlier (Z-score) and Multivariate Outlier (Mahalanobis D 2 ) were used to evaluate the outlier. The findings
indicated that the Z-scores for all items were acceptable using the +4 to - 4 rule of thumb (Hair et. al., 2010). Besides, the maximum
value of Mahalanobis D2 should not be exceeding 18.467 as the four variables used in the study (Hair et al., 2007; Tabachnik &
Fidell, 2007). Accordingly, the data of this study can be considered free from extreme values, univariate or multivariate. Thus, the
assumption of outliers is met (Table 4.5).
Table 6.0: Mahalanobis Test
MAHALANOBIS D SQUARE
MINIMUM MAXIMUM MEAN STD. DEVIATION
MAHAL. 0.629 14.843 3.966 2.149
DISTANCE
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4.5 Multicollinearity Analysis
The collinearity method was used to analyze tolerance and VIF value in the hypotheses model in Table 4.6. Significant
hypotheses are those with a tolerance value of more than 0.2 (Garson, 2012) and a VIF value less than 10. (Pallant, 2015). As seen
in Table 4.6, tolerance values range from 0.574 to 5.886, while VIF values range from 1.008 to 1.257. As a result, all tolerance
values are more than 0.2, and VIF values are fewer than 10. The four hypotheses were accepted, and correlations between the
independent and dependent variables were established. Thus, the conclusion indicates that there are no issues with multicollinearity
analyses that would affect the study results.
Table 7.0: Multicollinearity Test
Variables Tolerance VIF
Sales Fluctuations 0.574 1.288
Training and Development 5.886 1.257
Commission and Incentive 1.193 1.043
Sales performance 2.925 1.249
4.6 Multiple Regression Analysis
The multiple linear regression analysis results are reported in Table 4.7; the R2 value is 0.316. That seems to be, and the
four factors may explain 31.6% of the variation in sales performance (dependent variable).
The ANOVA (Table 4.8) reveals that F (13.253) has a p-value of less than (0.000). (0.001). Thus, at least one of the four
independent factors examined has the potential to have a substantial effect on the dependent variables.
The result of the Coefficient Table (Table 4.9) indicates that the four independent variables examined, namely training
and development (0.000), planning of sales activity (0.000), all have a significant influence on sales performance, with a p-value
less than the value (0.005). Consequently, the sales fluctuations (0.567), commission and incentive (0.236) not significant on sales
performance, since the value of p is greater than the value of (0.005). Here we can see that there have two supported hypothesis
training and development (0.000), planning of sales activity (0.000). Thus, two hypothesis not supported is sales fluctuations
(0.567), commission and incentive (0.236).
Apart from that, the standardized beta values for the two factors that had a significantly influenced on sales performance
were both positive. Furthermore, with a score of β = 0.513 (p0.000) for training and development and a value of β = 0.243 (p0.000)
for sales activity planning, these indicate that its positively influence sales performance. Also, when these two values were
compared, training and development had a greater impact. Thus, it showed that training and development, as well as planning sales
activity, had a significant influence on sales performance; thus, H2 and H4 supported this research.
Table 8.0: Model Summary
Model summary
Model R R Square Adjusted R Square Std. Error of the
estimate
1 0.562 0.316 0.292 2.05661
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Table 9.0: ANOVA
Anova
Model Sum of Df Mean Square F Sig.
Squares
1 Regression 11.345 4 2.836 13.053 .000
Residual 24.554 113 0.217
Total 35.898 117
Table 10.0: Coefficients
Model Independent Standardized Beta T Sig.
Variable
Sales Fluctuations 0.045 0.574 0.465
Training and 0.513 0.513 0.000
Development
Commission and 0.095 1.193 0.236
Incentive
Planning of sales 0.243 2.925 0.000
activity
Dependent Variable: Sales Performance
*p<0.1, **p<0.05, ***p<0.001
4.7 Hypothesis Testing
As seen in Table 4.9, the research proposes four hypotheses. This indicates that training and development and planning of sales
activity are supported. Thus, sales fluctuations and commission and incentives are not supported to sales performance. The summary of
the hypothesis test results is shown in Table 11.0.
Table 11.0: Summary of Hypothesis
Hypothesis Testing
H1. Sales fluctuations has significant influence on sales performance Not supported
H2. Training and Development has significant influence on sales performance Supported
H3. Commission and Incentive factors have a significant influence on sales performance. Not supported
H4: Planning of sales activity factor has a significant influence on sales performance. Supported
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5.0 DISCUSSION AND CONCLUSION
5.1 Hypothesis Discussion
The first hypothesis, which is sales volume fluctuations, indicated an insignificant influence on sales performance. Therefore, sales
volume fluctuations are negatively influenced sales performance. Hence, the null hypothesis is accepted (Sig 0.465). Sales fluctuations
depend significantly on perceived and interpreted (Dutton and Duncan, 1987). Its indicate that the latter model captures and represents
sales fluctuations and their connection to sales performance are more correctly (Silver et al., 2006). According to (e.g., Baldauf, Cravens,
and Piercy 2005; Darmon 1998), sales fluctuations can cause inconsistency for salespeople and will affect sales performance. From the
results, the sales volume fluctuations are not influencing the sales performance, and H1 is not supported in this research. Thus, the
researcher concludes that sales volume fluctuations are not a significant due to not important element that will contribute or influence
the sales performance.
The second hypothesis, training, and development indicated a significant influence on sales performance. Therefore, sales volume
fluctuations are positively influenced sales performance. Hence, the null hypothesis is rejected (Sig 0.000). Training and development
positively affect staff performance that they may give an existing company a new breath of energy (Ahmad & Ahmad, 2014). Training
and development will help to increase the knowledge and enhance the skills of salespeople (Younas et al., 2018). We can see here that
training and development play an essential role in increasing their sales performance and achieving their goals. This factor can be
considered for the company to improve their sales performance in the future. The results of this study also prove that training and
development drive sales performance. So, that training and development significantly influence sales performance we can see this factor
is an important element to the company to increase their sales performance.
The third hypothesis, commission, and incentive, indicated an insignificant influence on sales performance. Moreover, commission
and incentives are negatively influenced sales performance. Thus, the null hypothesis is accepted (Sig 0.236). The terms commission
and incentive refer to rewards that are much more closely tied to employee productivity and sales performance gains (Ugwu et al., 2012).
Commission and incentive may empower salespeople by encouraging them to improve sales performance (Delvecchio & Wagner, 2012).
A possible explanation is that commission and incentives from the company may not make it attractive to influence salespeople to
increase their performance and target that has been set. The company should revise the commission and incentive scheme to influence
the salespeople to achieve sales performance. The unattractive scheme may affect the sales performance of the salespeople. Commissions
have generally been recognised one of the best strategies to motivate salespeople since they necessarily will increase to sales
performance(Misra & Nair, 2011).
Finally, the hypothesis, planning of sales activity, indicated a significant influence on sales performance. Besides, planning of sales
activity is positively influenced sales performance. Thus, the null hypothesis is rejected (Sig 0.000). According to Hofer (2008), planning
of sales can ensure that the plans of all company functions are aligned with the strategic business plan in order to achieve sales
performance. Sales planning is used to prepare for any unexpected thing that occurs during operation, which will affect the company
(Thomé et al., 2012). Based on this study, planning sales activity is critical for the company to forecast sales to achieve sales performance.
Planning of sales activity helps the company ensure they align with the timeline for every target that has been set. Thus, this factor will
lead to the improvement of sales performance.
5.2 Research Limitation
The research identified certain limitations. The purpose of this research is to determine the factors that influence Navegacion
Shipping (J) Sdn Bhd's sales performance. This study focuses on Navegacion Shipping (J) Sdn Bhd, including respondents from the
sales department. This study used a sample size of just 118 respondents. The amount is insufficient to reflect the whole population of
the company. As a result, the respondent may represent the sales department but not the whole employees or other departments inside
the company.
Additionally, with limited time, researchers must disseminate and collect 118 online surveys within a certain period. Pandemic has
caused research to do contactless surveys for every respondent, and the researcher has disseminated surveys (Google Form) using an
online platform such as WhatsApp and social media to reach them. They complete the questionnaire independently without the help and
guidance from the researcher, which may result in inaccurate data collection.
Finally, and maybe most importantly, this study was performed online using Google Forms. This may generate a bias since the
respondent's ability to understand the question are unknown while answering the survey. The respondent may simply hit or click without
reading or understanding the questions. This is because the responder wants to complete the survey as fast as possible.
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5.3 Conclusion of the Study
In a nutshell, this study examines the factors which are sales volume fluctuations, training and development, commission and
incentive, planning of sales activity, and sales fluctuation for Navegacion Shipping (J) Sdn Bhd. Based on the results, training and
development and planning of sales activity significantly influence sales performance. Besides that, sales volume fluctuations and
commission and incentives negatively influence sales performance. The findings indicate that training and development, as well as
planning sales activity, are significant elements of Navegacion Shipping (J) Sdn Bhd's sales performance.However, sales volume
fluctuations and commission and incentive were not significantly supported, indicating that these variables need more consideration.
Future researchers might do more studies and find more information about sales performance for Navegacion Shipping (J) Sdn Bhd by
including other variables into the conceptual framework. Thus, it may improve the quality of the research by using additional variables
to get reliable data.
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FINAL YEAR PROJECT
Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
AHIBS UTM SKUDAI JAN 2022
FACTORS INFLUENCING CUSTOMER SATISFACTION: CASE STUDY OF DR
IRMA SKINCARE AND COSMETICS
MUHAMMAD AMIRUL ASRAF BIN SUNGIP, DR MAZILAH BINTI ABDULLAH
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected]
ABSTRACT:
The buying and selling process has shifted dramatically from conventional (physical) to online purchasing in the present
technological environment. Furthermore, the traditional trading method has been rendered obsolete by the COVID-19 epidemic. In this
setting, customer satisfaction is critical in maintaining consumer loyalty to the products or services offered. Resultantly, every company must
understand consumers’ satisfaction with their products or services. Customer satisfaction has risen to the top of the priority list when it comes
to online purchases. Therefore, this study was conducted to measure customers’ satisfaction level of Dr Irma Skincare and Cosmetics based
on four factors: shopping online experiences, external incentives, sellers' or customer service, security, and privacy. Multiple regression
analysis was applied to identify the factors influencing customers’ satisfaction levels. A total of 118 respondents participated based on the
sample size determination from Cohen Table. Purposive sampling was employed in this study and the investigation was limited by the
number of respondents who only purchased online from Dr Irma Skincare and Cosmetics. Statistical Package for Social Science and Multiple
Regression Analysis showed that online shopping experiences seller or customer services, security, and privacy were significantly associated
with customers’ satisfaction towards Dr Irma Skincare and Cosmetics. Customers’ satisfaction was not affected by external incentives.
Keywords: Online shopping experiences, seller or customer services, external incentive and security and privacy.
ABSTRAK
Proses pembelian dan penjualan telah berubah secara dramatik dari konvensional (fizikal) kepada pembelian dalam talian dalam
persekitaran teknologi sekarang. Tambahan pula, kaedah perdagangan tradisional telah menjadi usang oleh wabak COVID-19. Dalam
suasana ini, kepuasan pelanggan adalah penting dalam mengekalkan kesetiaan pengguna terhadap produk atau perkhidmatan yang
ditawarkan. Akibatnya, setiap syarikat mesti memahami kepuasan pengguna dengan produk atau perkhidmatan mereka. Kepuasan pelanggan
telah meningkat ke bahagian atas senarai keutamaan ketika datang ke pembelian dalam talian. Oleh itu, kajian ini dijalankan untuk mengukur
tahap kepuasan pelanggan Dr Irma Skincare and Cosmetics berdasarkan empat faktor: pengalaman membeli-belah dalam talian, insentif
luaran, penjual atau perkhidmatan pelanggan, keselamatan, dan privasi. Analisis regresi berganda telah digunakan untuk mengenal pasti
faktor-faktor yang mempengaruhi tahap kepuasan pelanggan. Seramai 118 responden mengambil bahagian berdasarkan penentuan saiz
sampel daripada Cohen Table. Persampelan purposive telah digunakan dalam kajian ini dan penyiasatan adalah terhad oleh bilangan
responden yang hanya membeli secara dalam talian daripada Dr Irma Skincare and Cosmetics. Pakej Statistik untuk Sains Sosial dan Analisis
Regresi Pelbagai menunjukkan bahawa pengalaman membeli-belah dalam talian penjual atau perkhidmatan pelanggan, keselamatan, dan
privasi dikaitkan dengan kepuasan pelanggan terhadap Dr Irma Skincare and Cosmetics. Kepuasan pelanggan tidak terjejas oleh insentif
luaran.
Kata Kunci: Pengalaman membeli belah dalam talian, insentif luaran, penjual atau perkhidmatan pelanggan, keselamatan dan privasi.
1.0 INTRODUCTION
In the era of globalization, all types of transactions can be completed online. Online transactions are now gaining a place in the
hearts of consumers. Customers' changing busy lifestyles have led them to prefer internet purchasing to traditional buying (Kumar, 2018).
Online shopping is an exceptional development in the field of electronic commerce, and it will undoubtedly become the next big thing.
Online or e-commerce businesses are gaining popularity and overwhelming response from the community in this era. The
government and businesses are also developing the online business industry and providing numerous allocations to increase its usage. Among
the popular online businesses for Malaysians include Lazada, Shopee, Zalora. According to Zainuddin (2021), almost 47% of consumers in
Malaysia are turning to the online method as the most frequently used channel to purchase goods.
According to GlobalData (2020), consumer payments in Malaysia have been affected by the COVID-19 pandemic, as consumers
move from offline shopping to online shopping. Consumers are stepping up their online purchases because of physical store closures
1
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
following lockdown and social distancing strategies, which are driving the expansion of Malaysia's e-commerce. However, due to the
uncertainty of job security and income during COVID-19, most people are spending less and choosing to save more. Meanwhile, Malaysians
are spending more time online and are inclined to buy online.
Dr Irma’s Skincare and Cosmetics have been chosen for the current study because cosmetics are now in demand as people are
more concerned about being beautiful (Culliney, 2020). The company are currently getting more market segment and growing fast. Figure
1.0 summaries the company SWOT Analysis.
STRENGTH WEAKNESS
• More Main Stream Marketing
• Do more vigorous media and online marketing
• Variety of skincare product to promote the product nationwide
• Fast and friendly response from beauticians • Customer Engagement
• Safe product as they are recognized by KKM • More Freebies
• Owner from title of Doctor • Provide make up for Sensitive Skincare and
• Wide rage Skincare that suits different skin Face Mist
types • Member Car/VIP Customer – more discount for
• Affordable price range for such skincare product loyal customer
• Provide Small Gift and Free Gift • More Promotion
• Original product from DR. IRMA • Wide Product with different size
• Get the Discount • More Product Cosmetic - Compact powder,
• Free consultation loose powder and eye makeup palette
• Using the Organic Ingredient • Delivery Quite late
• Effective results after using product DR. IRMA • The product is small than expected
• Leak on packaging
• Skeptical buying online
OPPORTUNITY THREAT
• Disposable income
• Less power of buying.
• Habit of buying online increases (Covid-19) • Aware buying online (scammer)
• Supporting local product • Competitors
• Aware about counterfeit cosmetics
Figure 1.0: SWOT Analysis
For the current study, the researcher observed the Shoppe online customer review from Dr Irma’s Skincare and Cosmetics sites
and discovered some concerns that could be a great opportunity for further research. Figure 2.0 summaries the findings.
Figure: 2.0 Fishbone
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
1.1 Problem Statement
The COVID-19 epidemic has drastically altered our understanding of the world and the way people think, live, and
engage in trading. Furthermore, the COVID-19 pandemic has affected the supply chains significantly as retailers continue to exit
the business cycle. Globally, consumers are beginning to view products and brands (Wright & Blackburn, 2020). Consumers have
improved their knowledge about products by reading the reviews provided by past customers. If an individual wants to buy a
product, they are no longer confined to asking friends and family because there are numerous product evaluations on the internet
(Sunitha, C. K., & Gnanadhas, 2014).
Internet shopping is increasingly gaining favour among society's members with the rise of digitisation. Consumers
making online are unable to handle the object in their hands or inspect it, thereby leading to which may lead to a lack of trust in the
item's condition (Aryani et al., 2021). Furthermore, some internet merchants employ images that differ from the actual appearance
of the item being offered (Silpa et al., 2016). Customers who have been duped are unlikely to trust Internet vendors. Besides,
internet users avoid online purchasing due to credit card theft, loss of privacy, non-delivery risk, and a lack of assurance of the
quality of products and services. These events highlight the advantages and disadvantages of online purchasing (Ibrahim et al.,
2019).
It is often challenging to determine whether consumers or online users are satisfied or dissatisfied with their purchases.
Customers are embracing the Internet as a handy medium for purchasing in order to learn about new desires and they seem to be
at ease when shopping online (Sunitha & Gnanadhas, 2018). However, the assessment of customers’ satisfaction remains a crucial
part to determine whether a company or business is successful. Customers will use social media as a platform to review or share
experiences of their purchases with everyone. Meanwhile, the company must always put up their best effort anytime they interact
with customers to preserve their image as a seller. Therefore, the present study aims to provide empirical data on the factors
influencing customers’ satisfaction. The factors investigated in this study include online shopping experiences, external incentives,
seller or customer service, security, and privacy.
1.2 Research Objectives
I. To examine the influences of online shopping experiences towards customer satisfaction.
II. To examine the influences of external incentives towards customer satisfaction.
III. To examine the influences of seller or customer services towards customer satisfaction
IV. To examine the influences of security and privacy towards customer satisfaction
2.0 LITERATURE REVIEW
2.1 Customer Satisfaction
Customer satisfaction, according to Kotler and Keller (2013), is a person's emotional response upon comparing the performance of
a purchased product with the customers’ expectations. Consumer satisfaction results from a comparison of expectations and experience.
In other words, consumers are satisfied when the delivery matches or surpasses their expectations (Khristianto, 2012). According to
Nguyen (2020), customer satisfaction is a crucial factor that can affect the company's sales. Meanwhile, Chen (2013) assumed that
customer satisfaction affects future purchase intentions and behaviour, leading to increased sales and profitability. In other words,
customer satisfaction affects the cornerstone of every successful business in the present highly competitive market, including the beauty
and cosmetics industry. This could be attributed to the fact that a high level of customer satisfaction is important in motivating
consumers to repurchase goods or use services again (Hoyer et al., 2001; Park et al., 2019).
Customer satisfaction assists companies in gaining a significant competitive edge. It determines how a consumer feels after
purchasing a product or service from a seller, as well as whether the product or service meets the customer's expectations. According
to Deng (2009), consumer satisfaction is an important part of the business since it generates revenue for the firm when the customer is
satisfied with the services provided. Consumer satisfaction, which indicates whether customers are pleased or unsatisfied with the
quality of products or services, is used to gauge customer expectations. According to Kotler and Keller (2009), satisfaction is a sensation
of liking or annoyance resulting from a comparison of the performance and the customer's expectations.
2.2 FACTORS OF CUSTOMER SATISFACTION
2.2.1 Online Shopping Experiences
The expanding importance of digital environments in retail and customer behaviour necessitates a thorough grasp of online
experiences. According to Rose (2012), online customers’ experience is a psychological condition that consists of a cognitive and
emotional sensory experience expressed as a subjective reaction to the website. Furthermore, customers who are happy with prior
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encounters have more self-efficacy (Giannakos, 2011). Stenger (2014) posited that the actual experience is more important than
memories of previous encounters when customers purchase online.
2.2.2 External Incentives
According to Rita (2019), external incentives include price, promotion, product attributes, quality, brands, and source of opinion.
Customers are motivated to acquire a product or service for a variety of reasons, one of which is the seller's intense or promotional
offer. Customers prefer to buy from businesses that provide the product as soon as possible, rather than from stores that postpone their
purchases (Yayl and Bayram, 2012). Furthermore, an external incentive such as a price reduction could be used as a better marketing
strategy, which may impact consumers’ satisfaction. Wang (2011) argued that customers will be attracted to select a business with a
more appealing marketing approach.
2.2.3 Seller Or Customer Services
The services that accompany the purchase of a product might be of significant value to the customer. Services can be used by
customers to assist them in determining which goods to buy. Factors relating to seller or customer service include ordering, payment
method, delivery, guarantee, website design, and service. According to Blut (2016), customer service refers to the degree of service
and return handling/return policies provided during and after the sale. Customer service is a set of actions that includes customer
assistance systems, complaint processing, complaint speed, complaint convenience, and complaint friendliness (Kim, Park, and Jeong,
2004).
2.2.4 Security And Privacy
Security and privacy can be described as the security of credit card payments from customer purchasing transactions (Nguyen,
2020). Customers' confidence in security and privacy should be increased in situations when online firms conduct advertising and
purchasing transactions through websites. Customers' perceptions of a seller's ability to protect a consumer's pre-purchase choice are
referred to as "privacy" (Kim et al., 2009). Security may be defined as a sort of security that assures customer safety while also
preventing hackers from violating privacy (Dixit and Datta, 2010).
2.3 HYPHOTESIS DEVELOPMENT
2.3.1 Online Shopping Experiences
Online shopping experience was reported to have a positive effect on customers, satisfaction in several studies (Limayem et al.,
2007; Lin & Lekhawipat, 2014). Based on the previous findings, the following hypothesis was proposed
H1: Online shopping experiences has significant positive influence towards customer satisfaction.
2.3.2 External Incentives
External incentives were defined as price, promotion, product attribute, brand, and source opinion (Rita, 2019). Typically, online
shoppers can buy a product or service at a cheaper price than the conventional physical transaction. Online shoppers also avoid
negotiating prices, spending time and energy to compare product prices. A study conducted by Purnamasari et al., (2021) on customer
satisfaction reported that external incentives impact positively on customer satisfaction. Based on the above discussion, the proposed
hypothesis is as follows:
H2: External Incentives has significant positive influence towards customer satisfaction.
2.3.3 Seller Or Customer Services
The main problem of online shopping in the cosmetics industry is how to preserve customer happiness with the existing
business. This is even more challenging with the rapid development of the cosmetics industry, which is becoming more competitive in
terms of incentives. Hence, online businesses must provide high-quality products and services to their clients, which is perceived to
have a beneficial impact on their loyalty (Gounaris et al., 2010). Previous research found that customer service has s significant positive
influence on customer satisfaction in the Chinese context (Liu,2008). Based on the above discussion, the following hypothesis was
proposed:
H3: Seller or customer services has significant positive influence towards customer satisfaction.
2.3.4 Security And Privacy
According to previous research, security and privacy have the potential to enhance customers’ satisfaction (Liu et al., 2013; Chiang
and Dholakia, 2003; Rita et al., 2019). In practical terms, security and privacy-focused on the security of using credit cards when users
make online transactions. In other words, sharing information online is considered private. Ahmad and Al-Zu’ bi (2011) and Zhao and
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Saha (2005) reported that security and privacy had a strong influence on customers’ satisfaction. Based on the above discussion, the
following hypothesis was proposed:
H4: Online shopping experiences has significant positive influence towards customer satisfaction
2.4 Research Framework Model
Figure 3.0 depicts the research framework for this study, which is to determine the relationships between customers’ satisfaction
and the various factors considered in this research. The framework was adapted from Nguyen (2020).
Figure 3.0: Five-Construct Theoretical Model of Customer Satisfaction.
3.0 METHODOLOGY
3.1 Research Design
Creswell (2017) described research design as a plan that includes data collection methodologies, research instruments, and data
analysis in line with the research question. A descriptive and cross-sectional design was employed in this study. Based on the research
objective, the quantitative research method was deemed appropriate for this investigation. Specifically, the research methodology
assists the researcher to determine the association between online shopping experiences, external incentives, seller or customer service,
security and privacy, and customer satisfaction.
3.2 Population And Sampling
The target population refers to the population of interest (Majid, 2018). The target population in this study were Dr Irma Skincare
and Cosmetics customers who have made exclusively online purchases of the company’s products. Unfortunately, the company could
not reveal the customer's details. The participants’ age ranged from 13 to 60 years old which aligns with the age range suitable for the
use of Dr Irma's products. Purposive sampling, a non-probability sampling, was used as the sampling method in this study. Thus, the
questionnaires were distributed to Dr Irma’s customers via WhatsApp, Facebook, and Instagram. Qualifying questions were used in
this survey to indicate the customers that only purchased Dr Irma’s products online. Cohen Table was used as the tool for the sample
size calculation and based on the four independent variables, 118 samples were required in this study (Cohen, 1992). To account for
respondents who will not return the questionnaire form and other restrictions, the sample size was increased by 10% (Rohieszan, 2021).
Multiple regression analysis was applied with significance tests at α = 0.01, using the F test of multiple R2.
3.3 Research Instrument
A research instrument is a tool that use to collect, measure, and evaluate data regarding a research topic (Columbia University,
2021). The questions were distributed online utilizing Google Forms because of the restricted movement enacted by the government
in addressing the COVID-19 pandemic during the investigation. A pre-test (15 respondent), pilot test (30 respondents), and expert
review (Dr Grace Thoo Ai Chin, marketing lecturer) for validation were initially undertaken to confirm the questionnaire's eligibility.
Structured questionnaires, comprising three sections were used in this study. The first section includes the respondents’
demographic background. Meanwhile, the second section consists of 30 items regarding customer satisfaction, online shopping
experiences, seller or customer service, external incentives, security and privacy. The third section entailed a feedback section that was
used in Chapter 5 of this project. All the dependent and independent variables were measured using the 5-point Likert Scale, ranging
from 1 = strongly disagree to 5 = strongly agree.
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3.4 Data Analysis
The Statistical Package for Social Science was used to analyze the data acquired in this study (SPSS). This study employed
percentage and frequency to analyze the demographics of the respondents. The statistical tests employed in this study are summarized
below:
Table 1.0: Summary of Proposed Statistical Method
Types of Analysis Purpose of Analysis Rule of Thumb
To summarize, explain and illustrate the data
Descriptive Analysis points in pattern emerge that can fulfil the criteria -
of data.
To establish if sample data is taken from a Skewness and kurtosis = +2 to -2 (Garson,
Normality Analysis
population normally distributed 2012)
to the stability and consistency of the instrument
Reliability Analysis More than 0.7 (Hair, 2010)
developed
Weak: 0.10 to 0.29 or -0.10 to -0.29
Pearson Correlation Analysis to measure the linear connection between two Moderate: 0.30 to 0.49 or -0.30 to -0.49
variables High: 0.50 to 1.00 or -0.50 to -1.00
(Hemphill, 2003)
To determine the extent and fluctuation of Mahala Nobis D Square Test
Univariate Analysis
dispersion in the data collected Z score between +4 to -4 (Hair,2010)
To calculating the relative contributions of Mahala Nobis D Square Test
Multivariate Analysis
several factors to a particular occurrence or result Z score between +4 to -4 (Hair,2010)
To verify that the study's basic assumptions about Tolerance more than 0.2; VIF below than
Multicollinearity Analysis
correlation and regression analyses are satisfied. 10 (Garson, 2012; Pallant, 2015)
To measure strength of the relationship between p-value significant, **p<0.05 (McLeod,
Multiple Regression Analysis
dependent variable and independent variable 2019)
4.0 RESULTS AND DISCUSSION
4.1 Demographic Characteristics
The demographic characteristics contained involved various respondents’ gender, age (range from below 20 years old to
above 51 years old and majority is 21-30 years old), education level (range from SPM to PHD/DBA with the majority in Bachelor
Degree level) and monthly income (range from less than RM 1000 to above RM 4001 with majority in the RM 1001 – RM 2000
per month).
4.2 Reliability Analysis
The stability and consistency of a questionnaire or research instrument are used in defining the instrument's reliability
(Creswell, 2010). Cronbach's alpha values either equal to or greater than 0.70 are considered acceptable (Hair et al., 2010), whereas
values higher than 0.95 are not necessarily good and may indicate that the items are either similar or overlapping (Nadaf, 2021).
Table 2.0 shows that all the variables considered in this study were acceptable and free from overlapping as the Cronbach's alpha
values exceeded 0.70 but less than 0.95.
Table 2.0: Cronbach’s Alpha
Variables N Cronbach’s Alpha
Customer Satisfaction 6 0.943
Online Shopping Experiences 6 0.779
External Incentives 8 0.741
Seller or Customer Services 7 0.841
Security and Privacy 3 0.940
4.3 Pearson Correlation Analysis
Pearson's correlation coefficient assesses the strength of the linear connection between two variables (Publications et al.,
2015). According to Hemphill (2003), values above 0.5 have a strong relationship with another variable. Thus, all the variables
presented in Table 3.0 are greater than 0.50, indicating that each variable is correlated with customer satisfaction.
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
Table 3.0: Pearson’s Correlation
Customer Satisfaction
Pearson Correlation 0.869**
Online Shopping Experiences Sig. (2-tiled) 0.000
N 30
Pearson Correlation 0.649**
External Incentives Sig. (2-tiled) 0.000
N 30
Pearson Correlation 0.718**
Seller or Customer Services Sig. (2-tiled) 0.000
N 30
Pearson Correlation 0.638**
Security and Privacy Sig. (2-tiled) 0.000
N 30
4.4 Normality Analysis
According to Hair (2010), normality is the degree to which the distribution of the sample data conforms with the
assumptions of a normal distribution. The data is deemed to be normally distributed if the skewness and kurtosis values are between
+2 and -2 (Garson, 2012). Table 4.0 shows the normality test results of all the listed variables. Resultantly, item no 2 under online
shopping experiences (I care about the brand reputation of Dr Irma Skincare and Cosmetics = 2.582), items no 5 and 7 under seller
or customer services (“Dr Irma Skincare and Cosmetics provides a fast delivery of product = 2.993”, and “the product of Dr Irma
Skincare and Cosmetics was not damaged during the delivery process = 7.352 and -2.350’) were removed and excluded from the
analysis, as they do conform with the assumptions of normality tests.
Table 4.0: Skewness and Kurtosis
N Skewness Kurtosis
Construct Item
Statistic Statistic Statistic
CS1 130 -1.151 0.584
CS2 130 -1.266 0.877
Customer CS3 130 -1.177 1.503
Satisfaction CS4 130 -1.371 1.227
CS5 130 -1.519 1.998
CS6 130 -1.236 1.114
OSE1 130 -1.345 1.038
OSE2 130 -1.484 2.582
Online Shopping OSE3 130 -1.149 0.646
Experiences OSE4 130 -0.917 -0.416
OSE5 130 -1.121 0.266
OSE6 130 -0.369 -1.394
EI1 130 -1.136 0.532
EI2 130 -0.411 -1.048
EI3 130 -1.070 0.334
EI4 130 -0.977 -0.230
External Incentives
EI5 130 -1.099 0.967
EI6 130 -0.506 -1.016
EI7 130 -1.031 0.358
EI8 130 -0.159 -1.470
SCS1 130 -0.750 -0.253
SCS2 130 -1.309 1.723
Seller or Customer SCS3 130 -1.276 0.811
Services
SCS4 130 -0.830 -0.645
SCS5 130 -1.865 2.993
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
SCS6 130 -0.775 -0.370
SCS7 130 -2.350 7.352
SP1 130 -1.255 0.504
Security and Privacy SP2 130 -1.210 0.439
SP3 130 -1.316 0.810
4.5 Outlier Analysis
Two outliers, univariate and multivariate data, were analysed in this study. The use of z scores is the most popular method
used by Tabachnick and Fidel (2007). The data can be considered free from outliers when a z score between +4 and -4 is obtained
(Hair, 2010). Meanwhile, if the z score is either greater than or less than the z score value, the data was removed. Thus, a univariate
analysis was conducted on 130 respondents in this study while four respondents were removed from the final analysis as the z
scores were not within the specified range.
Hair et al. (2010) defined the Mahalanobis D2 value as a multivariate value that is significant at 0.001. If the value of
Mahalanobis D2 does not exceed the maximum value according to the variables, it is considered as acceptable. Based on the
observation above, the maximum value of Mahalanobis D2 was smaller than the value of D24 = 15.599 (df = 4, p < 0.001) (Coakes
& Steed, 2003; Hair et al., 2010). Hence, the data in this study are regarded as univariate and multivariate data that are not affected
by extreme values. This depicts that the assumption of outliers is satisfied.
Table 5.0: Mahalanobis Test
Minimum Maximum Mean Std. Deviation N
Mahal Distance 0.458 15.599 3.968 2.876 126
4.6 Multicollinearity Analysis
Multicollinearity analysis refers to tolerance and VIF. The presence of two or more multicollinearity makes some of the
significant variables understudy to be statistically insignificant (Pedhajur, 1997). To get good multicollinearity in this study,
tolerance and VIF must be greater than 0.2 and less than 10 (Garson, 2012; Pallant, 2015). As shown in Table 6.0 below, the
tolerance value ranged from 0.281 to 0.569 while the VIF ranged from 1.757 to 3.554. Therefore, the tolerance value for all variables
was greater than 0.2, while the value of VIF for all variables were less than 10. Conclusively, it implies that multicollinearity does
not affect the research findings.
Table 6.0: Multicollinearity Test
Collinearity Statistics
Independent Variable Tolerance VIF
Online Shopping Experiences 0.307 3.253
External Incentives 0.426 2.347
Seller or Customer Services 0.281 3.554
Security and Privacy 0.569 1.757
Dependent Variable: Customer Satisfaction
4.7 Multiple Regression Analysis
Table 7.0 shows the multiple regression analysis. R2 indicates the percentage of variation in the dependent variable. The
results of multiple regression analysis revealed that the value of r was 0.686, meaning that 68.60% of the variation that exists in
customer satisfaction can be explained by all the four variables, namely, online shopping experience, external incentives, seller or
customer service, security and privacy. The remaining 31.40% were influenced by other factors that were not studied by the
researcher. The ANOVA results present in Table 8.0 indicate a value of F (4,126) = 66.241 with a p-value of 0.000, which is less
than α = 0.001. These statistical parameters reveal that at least one of the four independent variables: online shopping experience,
external incentives, vendor or customer service, security and tested privacy, has a significant influence on customer satisfaction.
The coefficients result in Table 9.0 depicts that only three independent variables (online shopping experience, security
and privacy) had a significant association (P < 0.001) with customer satisfaction. Besides that, seller or customer service and
security/privacy (IV) tested has a significant influence on customer satisfaction (DV) with a p-value of 0.001 and 0.009, which is
smaller than the α = 0.05. For the standardised beta, online shopping experiences (0.340), seller or customer services (0.326),
security and privacy (0.180) had a positive effect on customer satisfaction with a positive β value (p < 0.001 and p < 0.05). This
shows that customers’ satisfaction with Dr Irma Skincare and Cosmetics will be enhanced following a positive increase in online
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
shopping experiences, seller or customer services, security and privacy. Online shopping experiences (0.340) were more dominant
than external incentives (0.090).
Table 7.0: Model Summary
Std. Error of the
Model R R Square Adjusted R Square
Estimate
1 .829 0.686 0.676 0.34561
a
a. Predictor: (Constant), Security and Privacy, External Incentives, Shopping Online Experiences, Seller or Customer Services
b. Dependent Variable: Customer Satisfaction
Table 8.0: ANOVA
Sum of
Model df Mean Square F Sig.
Squares
1 Regression 31.650 4 7.912 66.241 .000b
Residual 14.453 121 0.119
Total 46.103 125
***p<0.001
a. Dependent Variable: Customer Satisfaction
b. Predictors: (Constant), Security and Privacy, External Incentives, Shopping Online Experiences, Seller or Customer Services
Table 9.0: Coefficients
Unstandardised Coefficients Standardised
Model Coefficients t Sig.
B Std. Error Beta
(Constant) 0.310 0.271 1.145 0.254
Online Shopping 0.349 0.094 0.340 3.706 0.000
Experiences
1 External Incentives 0.092 0.080 0.090 1.156 0.250
Seller or Customer 0.331 0.097 0.326 3.396 0.001
Services
Security and Privacy 0.184 0.069 0.180 2.662 0.009
*p<0.1, **p<0.05, ***p<0.001
a. Dependent Variable: Customer Satisfaction
4.8 Hypothesis Testing
Overall, H1 (online shopping experiences has a significant influence on customer satisfaction), H3 (seller or customer services
has a significant influence on customer satisfaction towards Dr Irma Skincare and Cosmetics) and H4 (security and privacy have a
significant influence on customer satisfaction towards Dr Irma Skincare and Cosmetics) were supported. Meanwhile, H2 (external
incentives has an insignificant influence on customer satisfaction toward Dr Irma Skincare and Cosmetics) was not supported
(Table 4.10).
Table 11.0: Summary of Hypothesis
Research Hypothesis Results
H1: Online shopping experiences has significant positive influence towards customer satisfaction Supported
H2: External incentives has significant positive influence towards customer satisfaction Not Supported
H3: Seller or customer services has significant positive influence towards customer satisfaction Supported
H4: Security and privacy has significant positive influence towards customer satisfaction Supported
5.0 DISCUSSION AND CONCLUSION
5.1 Hypothesis Discussion
This research shows that online shopping experiences have a significant positive impact on customers’ satisfaction, which aligns
with several previous research findings (Lin & Lekhawipat, 2014; Limayem et al., 2007; Mumtaz et al., 2011; Musa et al., 2015;
Nguyen, 2020). These results were supported in the multiple regression analysis in which the p-value for shopping experiences was
0.000 (p < 0.001) and a corresponding β value of 0.340. These findings support the argument by previous researchers, perhaps because
customers seem to be more satisfied with sopping experiences online due to lower expectations and attention. Given that Dr Irma
Skincare and Cosmetics uses Shopee as the platform to sell their product, and the respondent of the current study are majority adults,
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
they might be conversant with the platform and its operation, thereby making it easier to understand when using the platform for online
purchase, given higher satisfaction (Wolin and Korgaonkar, 2003).
External incentives were not significantly associated with customers’ satisfaction in this study. This result contradicts the report
from previous research (Nguyen, 2020; Purnamasari et al., 2021; Hanaysha, 2017; Anwar, 2015). Meanwhile, Das (2013) argued that
consumers are less concerned about cosmetics’ price (external incentives) because they prioritise selecting items that are suitable for
their skin and preserving their natural beauty. Furthermore, Nugroho and Irena (2017) found promotional (external incentives) qualities
may result from customers' already-existing scepticism toward corporate promotional operations. This was proven in the results
presented in Chapter 4 as external incentives recorded a p-value of 0.250 (p > 0.1) and a corresponding β of 0.090, thus the hypothesis
was not supported.
In addition, seller or customer services had a significant effect on customer satisfaction, which is consistent with previous findings
(Hidayat, 2016; Liu, 2008; Vasile, n.d; Shodiq, 2018). This was confirmed in the outcomes presented in Chapter 4 as seller or customer
services recorded a p-value of 0.001 (p > 0.1) and a corresponding β of 0.326, thus the hypothesis was supported. Likewise, some
respondents provided positive feedback regarding the seller and customer service; "the seller is very responsive and provides good
service," "condition products are in a good condition,", "product delivery is very fast." This feedback reflects the customer service
provided by Dr Irma contributed significantly to customers’ satisfaction. In line with a previous study, online shoppers or customers
are more likely to engage in positive behaviour If they receive superior seller or customer service (Brady & Robertson, 2001).
Lastly, security and privacy were significant predictor of customers’ satisfaction in this study. The present result corroborates the
studies by several researchers (Ahmad and Al-Zu’ bi, 2011; Zhao and Saha, 2005; Deging, 2014; Sadeh et al., 2011; Hise, 2000;
Hidayat et al., 2016; Liu et al., 2008) reporting positive relationships between customer satisfaction and security/privacy. As presented
in Chapter 4, the result was proven as security and privacy factors demonstrated a p-value of 0.009 (p > 0.1) and a corresponding of β
of 0.180, thus the hypothesis was supported. This result is not surprising as Dr Irma Skincare and Cosmetics uses Shoppe, a verified,
established e-commerce platform. Customers who regularly shop on Shopee think that their personal information, such as their phone
number, address, identification card, and credit or debit card, will be stored by the online platform. According to Deqing (2014),
security and privacy were reported to have been substantially associated with customer satisfaction. Hence, these components should
not be overlooked as previous studies have reinstated the significance when assessing client contentment.
5.2 Research Implication
Based on the research findings, online shopping experience has the highest influence for customer satisfaction for Dr Irma’s
cosmetics. Hence. Dr Irma’s should improve among others based on the feedback by providing detailed and comprehensive product
information. Products are intangible in an internet buying environment. Customers are unable to touch, taste, see, smell, or customarily
hear the items. Hence Dr Irma’s customers may only rely on the photographs and descriptions of the items on the websites to determine
the quality and usefulness of a commodity. Dr Irma Skincare and Cosmetics uses Shopee to sell their products. It is an advantage for
the company because the Shopee platform is very customer-friendly. In order to enhance customer satisfaction, Dr Irma Skincare and
Cosmetics should also provide more free shipping for customers who buy their products on Shopee. According to Chai (2018), free
delivery is successful than a similar amount of discount in luring customers. Offering free delivery demonstrates a genuine concern for
consumers' experience, even while they pay for their purchases (Posts, 2017). It can attract more customers from different genders
because everyone is more likely to buy more if the seller gives free shipping options.
According to Nurcahya (2014), the most frequently used tool for attracting consumers and enhancing sales performance is price
promotion. However, the current research does not support this. This implies that for Dr Irma Skincare and Cosmetics, external
incentives in terms of promotion were not the major determination for customer satisfaction. Other incentives might be more relevant
to the customers. According to Mullin and Cummins (2010), other benefits through email marketing or social media marketing might
appeal more as opposed to incentives.
Furthermore, good customer service leads to repeat sales and loyal customers. In order to increase customer satisfaction through
sales or customer service, Dr Irma Skincare and Cosmetics may need to consider a self-service system. Self-service refers to a
customer's capacity to handle their difficulties and wants without having to contact customer care (Success, 2021). Customers of Dr
Irma can use the self-service to ask anything about skincare, cosmetics and skincare tips of the company’s products. Besides, online
sellers should give customers more contact options to boost their pre-sale services (Hendricks, 2017). Dr Irma Skincare and Cosmetics
need to have more contact on social networks, such as Facebook, Instagram, Tik Tok, and Twitter. Customers can stay in touch more
easily if they provide their contact information, facilitated either by the drop shipper or the agent.
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Muhamad Rifqi Zafran Bin Abdul Hakim (2022)
The protection given by an online vendor to an online customer is known as security. Examples include personal data protection
or user authentication protection (Guo, 2012). Without security, online shoppers will be hesitant to make purchases on that site.
Meanwhile, consumers will feel safe and satisfied if there is enough security. Dr Irma Skincare and Cosmetics need to maintain their
sales platform, Shopee, to make customers more comfortable and satisfied using this platform. According to Schiff (2013), consumer
satisfaction with security will improve if they choose a platform that already has a more trustworthy security mechanism.
5.3 Limitations And Recommendations for Future Researcher
The researchers faced some limitations in executing this study. First, the researcher’s difficulty in determining whether the
respondent purchased Dr Irma Skincare and Cosmetics products online. Second, the respondent's behaviour as some of them thought
answering this questionnaire was time-wasting. However, due to Covid-19, the face-to-face method is restricted. Additionally, a few
participants did not answer the questions honestly, resulting in inaccurate data. Finally, the scope of this study is too small due to
limited time and budget, but sufficient statistically.
Some recommendations are presented in this study to improve future research. First, the study only focused on Malaysia and could
be considered as the foundation for future research that can be expanded to an international scale. For instance, neighbouring countries
such as Indonesia can be included in future studies to elucidate the data pattern as Dr Irma’s product is available. Diverse demographics
and socio-economic factors may influence the acceptance of the technology and outcomes in different countries. Second, only 130
respondents participated in this research, thus reducing the generalisability of the results. Therefore, researchers need to increase the
number of respondents to improve the reliability and accuracy of the data. Finally, more qualifying questions need to be added to obtain
more accurate data on customer satisfaction towards Dr Irma Skincare and Cosmetics.
5.4 Conclusion of the Study
This study determined the influence of online shopping experiences, external incentives, seller or customer service, security and
privacy on customers’ satisfaction, utilizing Dr Irma Skincare and Cosmetics as the study site. The factors impacting significantly on
customers’ satisfaction included online shopping experiences, seller or customer service, security and privacy. The higher the
aforementioned value, the higher the customer satisfaction.
6.0 ACKNOWLEDGMENT
I would like to thank Allah SWT for giving me strength and patience in preparing this thesis. Without His help, I could not complete
this thesis. I would like to express my deepest appreciation to my thesis supervisor, Dr Mazilah Abdullah, for her guidance,
encouragement, suggestions, criticism, throughout this thesis. I feel grateful to have chosen her as my supervisor, as she always gives
me words of encouragement. In addition, I would like to express my gratitude to the parties involved in completing this thesis, especially
to Dr Irma for allowing me to do this research on their business. With all the information and help from her, I will do my best to prepare
this thesis.
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AHIBS UTM
FACTORS INFLUENCING PURCHASE INTENTION OF WORKERS
DORMITORY SERVICE: THE CASE OF WESTLITE DORMITORY
Muhammad Ammir Hadi Bin Mohd Hasnul Hadi, Dr. Adaviah Binti Mas’od
Azman Hashim International School, Universiti Teknologi Malaysia, Johor Bharu.
Corresponding author: [email protected]; [email protected]
ABSTRACT
With the increasing demand for unskilled labour in Malaysia, the number of foreign workers in Malaysia continues to
increase each year. Since the government impose foreign workers housing act, companies who hire foreign workers need
to comply to this act. And this is when the demand for purpose-built workers accommodation starts to increase. This study
aims to investigate the factors that are influencing the purchase intention of workers dormitory service provided by Westlite
Dormitory among manufacturing companies in Pulau Pinang. The three factors include brand awareness, perceived quality
and perceived value. In this research, purposive sampling method is used and a total of 108 data were collected for this
research. Multiple regression analysis and also multicollinearity analysis were used in this study in order to determine the
influence between the three factors and purchase intention by using Statistical Package for the Social Sciences (SPSS)
version 16.0. The result of the research showed that brand awareness and perceived value has a significant influence on the
purchase intention. Whereas for perceived quality does not show a significant influence on the purchase intention towards
the dormitory service offered by Westlite Dormitory.
Keywords: Dormitory, Migration, Pulau Pinang, Purchase Intention
ABSTRAK
Dengan peningkatan permintaan terhadap buruh tidak mahir di Malaysia, bilangan pekerja asing di Malaysia terus
meningkat setiap tahun. Memandangkan kerajaan mengenakan akta perumahan pekerja asing, syarikat yang mengambil
pekerja asing perlu mematuhi akta ini. Dan ini adalah apabila permintaan untuk penginapan pekerja yang dibina khas mula
meningkat. Kajian ini bertujuan untuk mengkaji faktor-faktor yang mempengaruhi niat membeli perkhidmatan asrama
pekerja yang disediakan oleh Westlite Dormitory dalam kalangan syarikat pembuatan di Pulau Pinang. Tiga faktor tersebut
termasuk kesedaran jenama, kualiti yang dirasakan dan nilai yang dirasakan. Dalam penyelidikan ini, kaedah persampelan
bertujuan digunakan dan sebanyak 108 data telah dikumpul untuk penyelidikan ini. Analisis regresi berganda dan juga
analisis multikolineariti digunakan dalam kajian ini bagi menentukan pengaruh antara ketiga-tiga faktor dan niat membeli
dengan menggunakan Statistical Package for the Social Sciences (SPSS) versi 16.0. Hasil kajian menunjukkan kesedaran
jenama dan persepsi nilai mempunyai pengaruh yang signifikan terhadap niat membeli. Manakala bagi persepsi kualiti tidak
menunjukkan pengaruh yang signifikan terhadap niat pembelian terhadap perkhidmatan asrama yang ditawarkan oleh
Westlite Dormitory.
Kata kunci: Asrama, Migrasi, Pulau Pinang, Niat Beli
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■ 1.0 INTRODUCTION
Westlite Accommodation is a company owned by Centurion Corporation which is based in Singapore. Centurion
Corporation Limited is listed on the SGX and the SEHK with a market cap of S$294.3 million. Weslite is the largest provider
of purpose-built workers accommodation in Singapore and Malaysia, with 15 assets in both countries. Dewll Student Living
is a purpose-built student accommodation facility with 20 assets in Australia, Singapore, the UK, South Korea, and the US.
Except for a Malaysian dormitory that is still under construction, Westlite Dormitory has 67,064 beds. Westlite
Accommodation is a leading owner-operator of Purpose-Built Worker Accommodation (PBWA) in Malaysia and Singapore.
Centurion Corporation Limited acquired the first worker accommodation asset in Singapore, Westlite Toh Guan, in August
2011. Westlite Accommodation owns and manages approximately 36,744 beds in Malaysia (eight PBWA assets) and 30,320
beds in Singapore (five operating PBWA assets and two Quick Build Dormitories). There are 9 Westlite Dormitory facilities
in Singapore. While there are 8 Westlite dormitories in Malaysia. Bukit Minyak has 6,600 beds and the top 5 nationalities
are Nepal, Indonesia, Bangladesh, Myanmar, and Vietnam.
Westlite is a leading private owner-operator of PBWA, Westlite has been serving multinational companies, SMEs,
and human resource agencies across industries since 2011. Westlite Dormitory prides itself on putting residents' needs first
and providing exceptional community living. Westlite Dormitory offers residents a safe and comfortable living environment
with thoughtfully designed social and recreational activities. Its team of accommodation management experts has extensive
experience in developing and managing migrant worker housing. Westlite Accommodations is a self- contained permanent
structure in a secure environment, designed and built for our foreign workers. Rooms with ensuite or shared bathrooms and
kitchenettes. Other onsite amenities include a food court, sickbay, gym, sports courts, and a clinic. A healthy, self-sustaining,
and self-contained living environment is provided by Westlite Accommodation's PBWA portfolio. With amenities like a
gym, a sickbay, WiFi, and a minimart, Westlite Accommodation is designed to help residents spend less time travelling and
more time relaxing within the PBWA and their rooms. The PBWAs also meet JTK and RBA Standards, ensuring every
resident has personal space within legal and ethical boundaries. It is manned 24 hours a day, 7 days a week, and ensures
residents' safety and security, as well as order and minimal disruption to neighbouring communities. All Westlite PBWAs
provide fully-furnished, fully-fitted apartments with electrical points. The rental rates of Westlite PBWAs include sports &
recreational facilities, amenities, events & activities, health screening and fire safety training. Westlite Accommodation also
covers PBWA repairs and maintenance. A dedicated Operations team will be in charge of cleaning and maintaining the
compound, saving tenants time and effort.
The world population has shifted due to massive migration from developing to developed nations. A large number
of migrants have travelled to major cities around the world to join the expanding workforces (Sahimin et al., 2016).
Malaysia's rapid economic growth has resulted in the rapid expansion of low-skilled jobs in plantation, construction,
manufacturing, domestic and food services (Sahimin et al., 2016). These migrants come from over 12 Asian countries, with
Indonesia accounting for the majority. These nations are also major sources of uranium. All observers agree that migrant
workers will continue to play an important role in the Malaysian economy, including manufacturing (Robertson, 2008).
The International Labour Organization (ILO) estimates that there are currently 175 million foreign workers worldwide.
Malaysia, after Singapore, receives the most foreign workers in Southeast Asia. By 2020, 2 million documented migrants
will make up over 15% of the workforce (Yen Nee Lee, 2020). Malaysia has long been a migration hub. Because of
persistent labour shortages, migration has been happening since the 1970s as a means of economic development (Kaur,
2010). Comparatively richer than Indonesia, the Philippines, Bangladesh, and Pakistan, Malaysia has also been a popular
destination for regional migrants (J. T. Anderson, 2020). Malaysia's inbound migration traffic has increased dramatically
since signing the Memorandum of Understanding (MOU) with migrant sending countries.
China was the first country to introduce the Dormitory Labour Regime (DLR) (Smith & Pun, 2006). Because
China continues to attract global Foreign Direct Investment (FDI), not only because its workforce is cheaper, but also
because its system squeezes more of each worker's surplus value. FDI brings a new generation of Chinese workers into the
global economy. Millions of these workers are domestic migrants who move from their homes to industrial areas to live
and socialise (Smith & Pun, 2006). Workers dormitory system or service in Malaysia and Singapore is still a new thing
introduced in 2011. Weslite Dormitory pioneered workers dormitory here. Westlite Toh Guan in Singapore and Westlte
Johor Technology Park in Malaysia were the first dormitories in both countries. The goal of these workers dormitory is to
develop or provide a centralised dormitory service where all companies can house their workers. Having all employees
under one roof makes it easier to manage and track them. The centralised dormitory service has grown in popularity as
many companies prefer the convenience it offers.
On 27 August 2020, Workers' Minimum Standard of Housing and Amenities Act 1990 (Act 446) requires
employers to provide housing for their employees. Non-compliance will result in an RM50,000 fine (Ida Lim, 2020). The
new rule requires employers and centralised employee accommodation providers to provide a single or double-decker bed,
a four-inch-thick mattress with a pillow and a blanket, and a cupboard with a lock. The government prohibits employees
from sharing these three items (Ida Lim, 2020). Despite the fact that the law is already in effect, some employers still do
not comply. From April 1 to 15, 2021, the Labour Department (JTK) found that 73.9 percent of Malaysian employers, or
10,961 employers, did not comply with the Worker's Minimum Standard of Housing and Amenities Act 1990 (Act 446).
(Bernama, 2021). The main issue or problem faced by Westlite Bukit Minyak, Pulau Pinang is low purchase intention by
their target market which is in Pulau Pinang area. One of the main issues is low brand awareness. Westlite Bukit Minyak is
a new facility that started operating in Pulau Pinang in late 2019. So, it lacks a solid customer base. And most manufacturing
companies were unaware of its existence. The company then took the initiative to personally approach each manufacturing
company in Pulau Pinang. This initiative or approach has not worked because it is costly and time consuming.
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Westlite Bukit Minyak also faces issues with perceived quality and perceived value. Westlite Bukit Minyak is a
newcomer to Pulau Pinang. And most companies don't know the brand. So their main concern is the service provided by
Westlite Bukit Minyak. They have no prior experience with this type of service, which makes them skeptical of Westlite
Bukit Minyak's service. Moreover, the service's value to the companies is questionable. There have been no major issues
since all companies are comfortable with the current situation where their workers are placed in unlicensed premises or
rental houses nearby. Changing to Westlite Bukit Minyak's centralised dormitory service requires the company to relocate
its employees and increase its expenditure on workers dormitory. Some human resource managers in Pulau Pinang claim
that the service is significantly more expensive than the current housing or workers placement system. Even though the
government imposed new rules, many businesses did not follow them. Because of this, many businesses in Pulau Pinang
are still not complying with the new rules.
■ 2.0 LITERATURE REVIEW
2.1 Migration and Migrant Workers
2.1.1 Around the World
'Labour mobility' or 'work migration' refers to workers' freedom and flexibility to work wherever it is reasonably
possible or any place where it has opportunities (Joppe, 2012). They may be called temporary migrants, temporary workers,
migrant workers, foreign workers or migrants. (Joppe, 2012). When it includes crossing national borders, whether
temporary or permanent, this migration takes on the characteristics of immigrants. In these cases, workers are typically
called temporary or non-permanent foreign workers, temporary immigrants and guest workers if they are regular and legal
migrants. Anderson (2010) stated that The lines between 'migrants' and 'born foreign workers' are blurred in some countries,
which may have all rights for local workers. In five decades time, it has been estimated that the number of international
migrants has increased significantly (Foad et al., 2015)
2.1.2 Migrant Workers in Malaysia`
According to Robertson (2008), since 1990 Malaysia has been to almost full employment and in comparison to
the low population growth which is estimated at 1.74% back in 2008. Robertson, (2008) also stated that large numbers of
Malaysian are not willing to do jobs that is considered as dangerous, dirty and difficult. This is one of the factors that opens
and increase the demands for migrants in several sectors such as manufacturing, construction and plantations/agriculture.
And today, The majority of migrant workers are from Indonesia and another 11 countries in Asia such as, India, Nepal,
Vietnam, Pakistan, Cambodia, Philippines, Bangladesh and Thailand (Sahimin et al., 2016). And according to Sahimin et
al., (2016), in a wide range of sectors of the Malaysian economy, migrant workers will continue to hold a significant
contribution for the foreseeable future, including in manufacturing.
2.2 Workers Dormitory
Dormitories is a fitting which has minimum benefits towards workers and it also controls workers’ lives (Honig,
2007). A single worker, Smith, (2003)claims that dorms house a specific type of worker. They are often first-generation
workers from rural or remote areas, and many intend to return home after work. Smith, (2003) discovered that most factories
are located in areas with limited local labour. Several Malaysian companies provide foreign workers dormitory services.
Westlite Dormitory, RP Dormitory, TH Dormitory These businesses all offer the same service, a centralised dormitory.
Certain firms operate dormitories throughout Malaysia, while others only serve a single state or region Westlite Dormitory
has the most beds in Malaysia and thus the largest market share. Only two companies provide workers dormitory service in
Pulau Pinang: RP Dormitory and Westlite Dormitory. With two dormitories on the mainland and two on the island, RP
Dormitory has been in Pulau Pinang longer than Weslite Dormitory. In Pulau Pinang, RP Dormitory has a better brand
recognition than Westlite Dormitory due to its pioneering role.
2.3 Purchase Intention
When consumers decide why they want to buy a specific product or service from a specific company, this is
referred to as purchase intention. (Shah et al., 2012). Sir (2018) defines purchase intention as a customer's propensity to
buy a product in a given situation. Wu and Ho (2014) define purchase intention as the likelihood of a consumer purchasing
a product, which can be used to predict actual consumer purchasing behaviour. Purchase intent usually relates to consumer
attitudes, perceptions, and actions. Consumers can use information gained from buying behaviour to make future
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purchasing decisions. Purchase intention is the process of consumers planning to buy a product or service after seeing an
advertisement on any platform (Huarng et al., 2010). Positive buying intentions strengthen consumers' desire to maintain
business relationships with sellers [Moorman et al. (1992) in Chi (2009)]. The sales ratio will increase when the level of
purchase intention is high (Dodds et al., 1991). Zeithaml (2000) agreed that product price and perceived value influence
consumer purchase intent. When consumers decide to buy a product or service, they first assess the product's quality before
deciding to buy it. The higher the perceived value of a product, the higher the purchase intention (Akkucuk and Esmaeili,
2016). It has been shown and demonstrated in previous research that increasing purchase intention increases the likelihood
of a consumer purchasing a product or a service, thereby increasing brand engagement.
2.4 Brand Awareness
According to Alkhawaldeh (2017), brand awareness is a super definition which includes potential of being
remembered or recognized, brand acquaintance, ideas and information regarding the product. Product with high brand
awareness will contribute to high brand trust and also increase the purchase intention among consumers (Alkhawaldeh,
2017). Sääksjärvi and Samiee (2011) found that consumer might have a favorable evaluation toward the product that they
encounter which is unfamiliar to them as long as the product has high level of brand awareness. During a purchase activity,
the brand which has low brand awareness level or a brand which is less popular tend to have positive consideration among
consumers (Aaker, 2014). According to numbers of previous study, it has been proved that brand awareness has a direct
influence towards purchase intention of consumers [e.g. Jacoby et al. (1985); Zeithaml (1988); Dodds et al. (1991); Yoo
and Donthu (1997); Washburn and Plank (2002)]. Dodds (2015) also found that the purchase intention is highly dependent
on brand awareness of a product or service. According to Cobb-Walgren et al. (2017), product or service with higher brand
awareness will lead to higher brand preference and also purchase intention where in shows that purchase intention of
consumers is highly influenced by the level of brand awareness of a particular brand. Brown et al. (2011) argued that
consumers tend to purchase familiar brand or famous brand compared to unfamiliar brand. The purchase intention of
consumer will be boosted when the level of brand awareness of a particular product or service is high and at the same time
the price of it is slightly reduced where the perceived value or perceived profits is also increased (Rao, 2013) and (Kukar-
Kinney et al., 2012). The statements above represent the relation between brand awareness and purchase intention of
consumer. Thus,
H1: Brand awareness has positive impact on purchase intention toward workers’ dormitory service.
2.5 Perceived Quality
According to Wu & Ho, (2014), perceived quality is defined as judgement created when consumers deals with
the relevant clues conscious or unconsciously. According to Bhuian (1997), Perceived quality is defined as consumers'
judgement or evaluation of the the pros and cons associated with the product's functions or consistency of a product's
specifications. From the model of the causal relational model of value, perceived quality, and perceived value by Zeithaml
(2000) and another model perceived quality, perceived value and purchase intention by Rao and Monroe (2003), is has been
found that purchase intention of consumers is highly influenced by perceived quality of a product or a service. This is where
the level of purchase intention will increase when the level of perceived quality and perceived value of a product or service
also increase where perceived quality indirectly influence the purchase intention. Moreover, based on a research made by
[Dodds (2015); Jacoby et al., 1985; Jacoby and Morrin, 2015)], they argued that consumers’ purchase intention is positively
influenced by the perceived quality of a product or service. In addition, according to Tsiotsou (2006), it has been discovered
that the purchase intention of consumers is influenced by perceived quality direct and indirectly instantaneously. In terms of
practicality or practical experience, when the perceived quality of a product or service is strong, the consumer's purchasing
intention will increase. As a result, the following hypothesis was developed:
H2: Consumers’ perceived quality has a positive impact on the purchase intention of workers’ dormitory service
2.6 Perceived Value
As stated by Kuo et al., (2009), consumer's overall evaluation of the usability of a product or service based on
perceptions of what is received and what is given is referred to as perceived value. Perceived value is a combination of
perceived benefits and perceived costs (Wirtz & Lovelock, 2016). According to Kuo et al., (2009), The determination of
consumer perceived value for a product or service is essential for companies to achieve or obtain competitive advantage
over its competitors. While it is also an important measurement index of consumers’ repurchase intention of a product or
service [Parasuraman and Grewal, (2000); Petrick (2002); Woodruff (1999)]. The purchase intention of consumers towards
products or services will be generated from perceived value (Dodds, 2015). According to [Zeithaml (2000); Grewal (2000);
Dodds et al. (1991)], the difference between perceived profit and cost of a product or a service will determine and influence
the purchase intention of consumers. Numbers of research argued that the relationship between perceived value and
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Muhammad Amirul Asraf Bin Sungip (2022)
purchase intention is a positive relationship and purchase behavior of consumer can be predicted effectively form the
consumer’s purchase intention [Dodds et al. (1991); Parasuraman and Grewal (2000)]. It is argued by Kukar-Kinney et al.
(2012) that the purchase intention of consumers on a product or a service will increase when the perceived quality and
perceived value of that particular product or service is high. Therefore, perceived value and purchase intention is found to
be positively correlated. Thus, the following hypothesis is proposed. Henceforth,
H3: Perceived value of consumer has positive influence on purchase intention toward workers’ dormitory service
2.7 Research Framework
Brand
Awareness
Perceived Purchase
Quality Intention
Perceived
Value
Figure 2.1: Research Framework
3.0 METHODOLOGY
3.1 Population and Sample
The targeted population for this research are human resource personnel from manufacturing companies or
factories in Pulau Pinang. Google Form, whatsapp and also email is used to distribute the questionnaire and also to gather
data. The sample size of the research is determined by using table of statistical power analysis and the total sample involve
in this study is 108 respondents. The sampling method used in this research is non probability sampling which is purposive
sampling method. This sampling method is widely used in many research and researchers selects their respondents
according to their availability and accessibility.
3.2 Data Analysis
Statistical Package of Social Science (SPSS) is used to analyze using data collected from questionnaires. Table 3.1 shows
statistical tests used in this study.
Descriptive Analysis To describe the demographic information of the respondents, which includes 6 questionnaire
questions
Normality Test To determine whether the sample data was gathered from a regularly distributed population.
Reliability Test To verify that the software product is bug-free and stable enough for its intended function.
Pearson Correlation Analysis To determine the strength and path of the link between questionnaire questions.
Multicollinearity Analysis To see if there is a predictor with a high level of interdependence between the variables.
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Outlier Analysis To detect outliers from the respondents' replies to each question item
Multiple Regression Analysis Determining the importance of the independent variable in relation to the dependent variable
Table 3.1: Statistical Test used in SPSS
■ 4.0 RESEARCH FINDING
4.1 Respondents Profile
Table 4.1 displays the demographic statistics of the 108 completed surveys' respondents. Males comprised 50.9
% of the sample, while females comprised 49.1 % of the sample. The data also indicate that the majority of age groups,
50.9 %, are between the ages of 26 to 35. Meanwhile, the majority of respondents are Malaysians. Aside from that, the
majority of respondents are Chinese (38%) , followed by Malay (32.4%) and Indian (29.6%). Besides, most of the
respondents’ position in human resource department are training (33.3%) followed by payroll (23.1%), recruitment (22.2%),
executive (13%), and manager (8.3%). Finally, 38% of respondents have been with the current organisation for 5 to 10
years.
Table 4.1: Demographic Background table
Demographic Number of Respondents Percentage (%)
Gender
Male 55 50.9
Female 53 49.1
Age
25 and below 12 11.1
26-35 55 50.9
36-45 35 32.4
46-55 6 5.6
Nationality
Malaysian 108 100
Race
Malay 35 32.4
Chinese 41 38
Indian 32 29.6
Job Position in Human Resource Department
Payroll 25 23.1
Manager 9 8.3
Training 36 33.3
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Recruitment 24 22.2
Executive 14 13
Years of Service in The Present Organization
Less than 2 years 15 13.9
2-5 years 40 37
5-10 years 41 38
More than 10 years 12 11.1
4.2 Reliability Analysis
4.2.1 Pearson Correlation
Pearson's correlation coefficient assesses the strength of a two-variable linear connection (Publications et al.,
2015). The Pearson Correlation is a statistical method for determining the strength of a relationship between independent
and dependent variables. According to Hemphill (2003), A substantial link exists between values over 0.5 and another
variable. As seen in table 4.3, all of the variables are more than 0.5, indicating that they are all correlated.
4.2.2 Cronbach Alpha
Following the Pearson Correlation analysis, the researchers calculated the Cronbach Alpha for each independent
and dependent variable. The results are shown in Table 4.2: Brand awareness value (0.786), Perceived quality (0.701),
Perceived value (0.833) and purchase intention (0.833). This shows that Cronbach alpha for all variables was acceptable.
Hair et al. (2010) states the rules of thumb for acceptable Cronbach's alpha coefficient size ranging must be more than 0.7.
Table 4.2: Cronbach Alpha Result Table
Variable N Cronbach’s Alpha
Brand Awareness 4 0.786
Perceived Quality 4 0.701
Perceived Value 5 0.833
Purchase Intention 4 0.833
4.3 Normality Analysis
To avoid false interpretations and misleading findings, normality must be measured before other statistical
analysis methods. Normality is based on the standard error of skewness and kurtosis as perceptiveness of distribution It’s
useful when you need to make a quick decision about how to distribute data normality (Shukla, 2015). For data to be
presumed regularly distributed, skewness and kurtosis must be between +2 and -2 (Garson, 2012). Therefore, Table 4.2
displays the results of all listed variables. Furthermore, the skewness test revealed that all variable items were within an
acceptable range, with p-values ranging from 0.588 to -1.283. The p-values for the kurtosis test ranged from 1.253 to -
2.025. For the item BA1, it has to be removed because the item is not normally distributed in the kurtosis test as it exceeds
the range of 2 and -2. With the exception of item BA1, the data in this study were considered to be normally distributed
because the p-values met the skewness and kurtosis test requirements.
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Muhammad Amirul Asraf Bin Sungip (2022)
Table 4.3: Skewness and Kurtosis Table
N Skewness Std. Error Kurtosis Std. Error
of of
Skewness Kurtosis
Valid Missing
BA1 108 0 0.113 0.233 -2.025 0.461
BA2 108 0 0.588 0.233 -0.700 0.461
BA3 108 0 -0.393 0.233 -1.384 0.461
BA4 108 0 0.159 0.233 -0.710 0.461
PQ1 108 0 0.090 0.233 1.253 0.461
PQ2 108 0 0.000 0.233 -0.108 0.461
PQ3 108 0 -0.027 0.233 -0.989 0.461
Statistics
PQ4 108 0 0.042 0.233 0.442 0.461
PV1 108 0 0.016 0.233 -0.549 0.461
PV2 108 0 0.029 0.233 0.134 0.461
PV3 108 0 0.009 0.233 0.053 0.461
PV4 108 0 0.270 0.233 -0.630 0.461
PV5 108 0 -1.283 0.233 0.686 0.461
PI1 108 0 0.018 0.233 -0.103 0.461
PI2 108 0 0.540 0.233 -0.698 0.461
PI3 108 0 0.016 0.233 -0.549 0.461
PI4 108 0 -1.114 0.233 -0.773 0.461
Brand Awareness (BA), Perceived Quality (PQ), Perceived Value (PV), Purchase Intention (PI)
4.4 Multicollinearity Analysis
Tolerance and Variance Inflation Factor (VIF) are examples of multicollinearity. The tolerance must be greater
than 0.2, according to the rule of thumb (Garson, 2012) and VIF must be less than 10 (Pallant, 2015). Table 4.4 shows all
independent variables in the Tolerance column are greater than 0.2 and fewer than 10 in the VIF column, indicating that
they are acceptable.
Table 4.4: Multicollinearity Analysis
Variables Collinearity Statistic
Tolerance VIF
Brand Awareness 4.276 1.397
Perceived Quality 0.443 1.005
Perceived Value 5.810 1.394
a. Dependent Variable: Purchase Intention
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Muhammad Amirul Asraf Bin Sungip (2022)
4.5 Outlier Analysis
Using the standardised z score, a univariate analysis is utilised inside a study to detect outliers from the
respondents' replies to each question item. Additionally, to be classified as having no outliers, the score must fall between
+4 and -4 (Hair et al., 2010). As a result, a univariate analysis was performed on the responses of 108 respondents in this
study, and all standardised z scores were within the specified range. Hence, all of the information gathered might be utilised
2
in the subsequent analysis. The data was also subjected to Mahalanobis D inside Multivariate analysis in order to identify
outliers based on the variables to be analysed. Because just three independent variables were employed in this study, the
2
maximum Mahalanobis D value cannot exceed 16.266. (Hair et al., 2010; Tabachnik & Fidell, 2007). The data could be
used because the value reached only 6.782, and no outliers were found.
Table 4.5: Summary of Regression
a
Residuals Statistics
Minimum Maximum Mean Std. Deviation N
Mahal Distance 0.187 6.782 2.972 1.578 108
a. Dependent Variable: Purchase Intention
4.6 Multiple Regression Analysis
As a result, Table 4.6 shows the model summary. The adjusted R square findings for this model were 0.513,
indicating that the independent variables in Table 4.6, which illustrates the multiple linear regression analysis, adequately
explained 51.3% of the variance.
Table 4.6: Summary of Regression
Model R R Square Adjusted R square Std. Error of the
Estimate
a
1 .716 0.513 0.499 0.29252
a. Predictors: (Constant), Perceived Value, Perceived Quality, Brand Awareness
4.7 Summary of Hypothesis
Table 4.7 reveals that every independent variable included in this test is supported, with the exception of Perceived Value,
which is not supported with a value of 0.029, which violates the significant value of less than 0.05, 0.005, or 0.001. This
means that just two independent variables have an effect on purchase intention.
Table 4.7: Hypothesis Testing
Variables Beta t Sig. Decision
Brand Awareness 0.304 4.276 0.000 Supported
Perceived Quality 0.029 0.443 0.658 Not supported
Perceived Value 0.498 5.810 0.000 Supported
a. Dependent Variable: Purchase Intention
■ 5.0 DISCUSSION
The result shows that brand awareness is significantly influence purchase intention of workers dormitory service
by Westlite Dormitory. This finding is in line with earlier research by Alkhawaldeh (2017). This justifies that manufacturing
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Muhammad Amirul Asraf Bin Sungip (2022)
companies in Pulau Pinang will consider brand name before purchasing the service. This is where these companies thinks
that popular brands have high performance and high-quality service. This is where highly recognized brand is also highly
preferable by customers. This demonstrates that the stronger a company’s brand awareness, the more likely people are to
acquire the company's service. Therefore, brand awareness was positively significant to the purchase intention of workers
dormitory service. Thus, H1 is supported in this study.
Based on the result obtained, perceived quality do not show any significant influence toward purchase intention
of the workers dormitory service. The result is consistent with the result obtained from previous study (Wu & Ho, 2014).
This justifies that employers or manufacturing companies do not look for a dormitory which has the best facilities or
accommodation before the decide to make a purchase. This is because, the quality of the service or the quality of the
dormitory facilities does not affect the work performance of the foreign workers. However, if the quality of the service
provided match with the value perceived by the companies, it will increase the level of purchase intention towards the
service. Therefore, the perceived quality is significantly influence the purchase intention towards workers dormitory
service, because of that, H2 is supported in this research.
Consequently, the result acquired shows that perceived value positively influence purchase intention of workers
dormitory service. This study's findings are in line with previous studies' findings by (Kuo et al., 2009). This shows that
perceived value is the main reason or the main factor in purchasing workers dormitory service. Customers believe that they
will not make any spending or spend their money on the service which will not give any benefit to them and they rather
spend more on the service that will give benefits to them. This demonstrates that the higher the perceived value of the
service, the higher the level of purchase intention. Thus, perceived value is significant to purchase intention of workers
dormitory service, and H3 is supported in this research.
This study discovered that the major factor in the enhancement of purchase intention lies in whether or not
consumers can perceive the value of the service and also the level of brand awareness of Westlite Dormitory, which
indicates that the purchase intention for the service will be increased if consumers can perceive the value of the service and
also can distinguish and identify the brand. Therefore, it is a necessary marketing strategy for Westlite Dormitory to spread
the information about the company and also the service offered. To increase brand awareness, Westlite Dormitory need to
increase the brand familiarity. For B2B market, technical consultants and sales representatives, professional and technical
conferences, as well as journals or professional magazines, all help to increase and enhance brand awareness (Homburg et
al., 2010). Other than that, Perceived value also highly associated with the purchase intention of the service. Perceived
value relates directly with the price or the cost of the service. If customers thinks that the price is too high and they think
that it is not worth the money, it will reduce the willingness of customers to purchase the service. And according the result
of this research, perceived value has the most substantial influence on purchase intention. Because of that, Westlite
Dormitory should increase the value of the service in order to increase the purchase intention of the service. Many suggested
that price bundling approach will increase the value as customers will think that the money that they spent on the service is
worth it and hence increase the level of purchase intention
There first limitations in conducting this research. To begin with, the four variables evaluated in this study only
represented a small portion of the variables that might influence the purchase intention of manufacturing companies in
Pulau Pinang to buy the service offered by Westlite Dormitory. The next limitation of this study is the demographic and
area of study. This study is carried out in Pulau Pinang and based on manufacturing companies only which only comprise
of 108 respondents which not all of them are the current customer of Westlite Dormitory. Thus, the result acquired does
not represent all manufacturing companies or factories in Malaysia. Based on the limitations mentioned, what future
researchers can do is to expand the geographical areas of study. This is because, Westlite Dormitory have other branches
in Selangor and also Johor Bharu and because of that, future researcher should consider to cover all of the area where
Westlite Dormitory operates so that it will provide different and better insight on the purchase intention towards the service.
Other than that, the data collection method used for this research is through Google Form. And this is due the movement
restrictions because the companies do not allow for outsider to come in and conduct interviews because of the virus. And
it is advisable for the future research to collect data in a form of personal interview where researcher can get a better and
deeper insight regarding the purchase intention towards the service.
■ 6.0 ACKNOWLEDGEMENT
My heartfelt gratitude goes to my supervisor, Dr. Adaviah Binti Mas’od whom I always remember for always
there whenever I need her guidance. I am forever grateful that I chose her as my supervisor and I could not do it without
her support and guidance. When I was doubting myself, her words of encouragement always give me strength to keep
moving. Furthermore, I am grateful to everyone who contributed essential and insightful data during the research process.
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MARKETING MIX TO INCREASE PURCHASE INTENTION OF PLUMBING AND
MAINTENANCE SERVICE PROVIDER – CASE OF AZMAN BIN AHMAD
MUHAMMAD FAIZ BIN AZMAN, DR. THOO AI CHIN
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected]
Abstract
Now, the service industry has been impacted by the Covid-19 pandemic with low purchase intention. Azman Bin Ahmad is a sole
proprietorship company that provides a service in all aspects of plumbing and installation of pipes. The sale of the company is affected due
to low purchase intention from existing and potential customers. Therefore, the purpose of this study is to investigate the effects of the
marketing mix on purchase intentions of plumbing and maintenance services. This is because past research has shown that the marketing
mix, including the 4Ps (product, price, place, and promotion), can increase customer intention. This is a quantitative study in which data
was gathered through a survey approach. All the items were evaluated on a 5-point Likert scale. This survey used 150 sample data to study
the impact of marketing mix on purchasing intention. Results show that product, price and promotion have positive and significant
relationships with purchase intention of plumbing and maintenance services. Then the survey result was used to conduct the intervention for
Azman Bin Ahmad. A Facebook page was created for Azman Bin Ahmad as a social media platform to increase their potential customers’
purchase intention. In the two months of intervention, various of contents relevant to product, price and promotion were updated on the
Facebook page. The Facebook page successful received 8 potential customers to interact with the company using WhatsApp, 13 potential
customers made a phone call asking about the services, and 1 customer purchased the services. Lastly, this study provides useful insights to
Azman Bin Ahmad and other service providers on the importance of marketing mix for increased purchase intention.
Keywords: Marketing mix, purchase intention, service industry
⬛ 1.0 INTRODUCTION
The service industry focuses on providing services rather than actual goods. Service industries include banking, wholesale, retail
commerce, plumbing, engineering, and non-profit economic activities. Small and medium companies (SMEs) account for most of the
services industry, which plays a key role in economic development. Services (87.9%) have the biggest percentage of SMEs in Malaysia,
followed by agriculture (7.1%) and manufacturing (5%) (Zulkifli et al., 2010). In Malaysia, the statistics performance of the service sector
falls 0.3 percent and recorded 123.4 points in the first quarter of 2021 compared to 123.8 points in the previous quarter. The overall
performance for total revenue of services industry in first quarter 2021 recorded RM428.5 billion, decreased -1.7 percent compared to the
final quarter 2020 (Department of Statistics Malaysia, 2021).
Now, the service industry has been impacted by the Covid-19 pandemic. As a result of such unpleasant occurrences, material shortages
and service postponement are noticeable in the downstream supply chain, which has caused a ripple effect and lower performance in terms
of services, revenue, and production process (Kumar, 2020). Since people are being confined to their homes, this means call volume has
essentially increased for the services industry. Now, offering virtual diagnostic processes via video call and skype for easy-to-fix difficulties
and serving clients who want information or guidance is the most viable option for the service industry to survive (Askar, 2020).
On the other hand, marketing is one of the techniques to increase purchase intention. Marketing allows individuals to be aware of the
products, thus helps to drive purchase intention (Rosiani & Irena, 2017). The marketing 4Ps (product, price, place, and promotion) are
designed so that businesses may successfully allocate and manage their marketing resources to meet long-term profit goals (Bakri et al.,
2021). Product, price, place, and promotion are important elements to create an effective marketing strategy, with a controllable variable that
will assist in creating the intention of the customer (Meera, 2012). In addition, Rust et al. (2004) found that the marketing strategy 4Ps and
purchase intention could impact both productivity and consumer decision.
Azman Bin Ahmad is a sole proprietorship company that provides a service in plumbing and installation of pipes. The sale of the company
is affected due to low purchase intention from existing and potential customers. Therefore, the purpose of this study is to investigate the
effects of marketing mix on purchase intentions of plumbing and maintenance services. This is because past research has shown that the
marketing mix, including the 4Ps (product, price, place, and promotion), can increase customer intention. In addition, this study proposed a
marketing plan for Azman Bin Ahmad to increase the purchase intention of its services.
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⬛ 1.1 CASE DESCRIPTION AND PROBLEM STATEMENT
Azman Bin Ahmad is a sole proprietorship company that provides a service in plumbing and installation of pipes. The company
started the business in early January of 2009, and it began to offer plumbing and pipes services. The procedure of starting a sole proprietorship
is usually straightforward and inexpensive. In all circumstances, minimal or no expenses are required, as well as minimal paperwork.
In the past 12 years of operation, this company has faced a few problems like an unknown brand. This is attributed to the lack of
advertising. Most potential customers do not know about the services provided by the company and its location. With limited promotion, it
could explain that the company is not attracting enough customers and has no information to convince them to find out more about the
company. The company only provides a specific job scope such as plumbing and water pipes services. It limits the types of works for
customers to look for its services.
The information such as an address, specification of services, brand name, and certificate of service are very important to gain
customer trust and intention to purchase services (Sharma & Patterson, 2015). Obviously, for Azman Bin Ahmad, the lack of information
in Google or websites has affected the company to gain new potential consumers. The company serves more regular customers rather than
new potential consumers. It is due to Mr. Azman being the company’s owner, has insufficient knowledge to leverage the advantages of social
media and the internet.
From marketing theory and purchase intention, the marketing mix combines product, price, place, and promotion to discover the
best combination for improved purchase intention (Nugroho & Irena, 2017). Azman Bin Ahmad company can gain and maintain advantages
over competitors by identifying and developing the marketing mix elements. As proven, 4Ps marketing strategy allows a company to make
profitable marketing decisions at every level, such as developing strengths and limiting its weaknesses (Kotler, 2002). Moreover, marketing
mix 4Ps and purchase intention could help the company to understand the product or service that the company can offer to their potential
customers and help the company to plan, develop, and execute effective marketing strategies toward customer intention of the services.
In terms of solution, the 4Ps involve a stronger emphasis on customer intention. The product can lead to customers’ wants and
needs (Fuller & Matzler, 2007). For instance, most of Mr. Azman’s customers prefer maintenance services that the company often provides.
This means Mr. Azman should provide a higher level of service quality to ensure that new and regular customers intend to buy the services
in the future. Next, the cost to the customer is referred to as price. It necessitates the organization to analyze the value of the product or
service to the target clients (Ibusuki & Kaminski, 2007). Price includes based cost and expenses. The company should always survey the
market, and a smart business will tap into what people will pay for it. According to Alexandra and Thomas (2020), the full cost may include
the time spent purchasing an item or service, as well as the cost of conscience associated with consuming it. It reflects the total cost of
ownership. The lower price than competitors and high-quality services will lead to higher purchase intention (Jaafar et al., 2012). Then,
advertising, public relations, viral advertising, and other forms of promotion communication should be used between the company and the
customer (Glynn & David, 2009). It is time to start a conversation with the customer about the product or service after working on the product
and price factors (Martin, 2019). This includes creating and sustaining company brand loyalty as well as generating awareness through various
means to improve sales. Lastly, place which is where to distribute product or service. With the advent of the internet, credit cards, and
smartphones, regularly, individuals do not need to go to a specific location to fulfill a want or a need (Kietzmann et al., 2011). It is the
solution to how the target market chooses to purchase or how to be present and universal to make acquiring services more convenient. Due
to the marketing problems faced by Azman Bin Ahmad, this study proposed a marketing plan for Azman Bin Ahmad to increase the
purchase intention of plumbing and maintenance services.
1.2 RESEARCH OBJECTIVES
This study listed two main objectives:
RO1: To investigate the influences of marketing mix (product, price, place and promotion) on the purchase intention of plumbing and
maintenance services
RO2: To implement marketing mix strategies that can increase the purchase intention of Azman Bin Ahmad Company
⬛ 2.0 LITERATURE REVIEW
2.1 PURCHASE INTENTION
Purchase intention refers to the willingness, desire, and preference in opting to buy a product or service (Nasirun et al., 2019). It is
the possibility of a customer's willingness to purchase a specific product or service in the future. As a result, marketing researchers are
interested in determining or investigating purchase intention because it may be anticipated and linked to purchasing behavior (Gogoi,
478
2013). Purchase intent is influenced by price, perceived quality, and value (Vahidreza et al., 2015). Additionally, purchasers are impacted
by both internal and external factors during the purchasing process (Gogoi, 2013). Customer attitudes toward feeling responsible for his or
her acts and perceived behavioral efficiency are examples of internal factors. In contrast, external elements are easier to control to change
consumer behavior (Zaneta et al., 2020). Before buying a product, there are six steps to consider: awareness, knowledge, interest, preference,
persuasion, and purchase (Kotler & Armstrong, 2010). A positive purchase intention is one that encourages customers to make a buy, whereas
a negative purchase intention is one that prevents consumers from making a purchase (Arslan & Zaman, 2014). Increased purchase intention
indicates a higher probability of making a purchase; it can also be used as a key indicator for predicting consumer behavior. When people
have a favorable purchase intention and the services have a beneficial effect on the customers, then will lead to actual buy action (Awan,
2011). Additionally, Kotler and Armstrong (2010) suggested that an individual's emotions and impulsive situation can influence purchase
intention. Individual feelings are influenced by personal preferences as well as impulsive situations that can modify buying intentions.
2.2 Marketing Mix
Marketing is a set of actions that give value to customers and help the company to build a relationship with them and provide
benefits to the company (Kotler & Armstrong, 2011). The component of a marketing mix 4Ps (product, price, promotion, and place) are used
to implement the operational phase of the marketing management process (Giuseppe, 2016).
According to Kotler and Armstrong (2014, p. 248), a product is anything that can be offered to a market for consideration,
acquisition, use, or consumption to satisfy a desire or need. When deciding on a product or service, there are three levels to consider. They
are decisions about individual products, product lines, and product mix (Kotler & Armstrong, 2014). Price refers to the amount of money a
consumer would pay for a product or service. Kotler and Armstrong (2014, p.313) defined price as the amount of money a client pays for a
product or service in exchange for the benefits of utilizing it. Promotion is the third tool in the 4Ps marketing strategy. Companies must now
get across their value proposition to customers after planning and developing a good product or service, setting a reasonable service pricing,
and making it available to customers (Kotler & Armstrong, 2014). The goal is to raise consumer awareness of their products, which results
in increased sales and the development of customer purchase intentions. The process of delivering products or services from producers to
the intended users is referred to as location in the marketing mix (Martin, 2019). Companies must establish an appropriate marketing channel
that corresponds to their aims to operate and manage this process.
With some contextualization, the 4Ps can be used in services industry marketing in terms of methodology and versatility. According
to Ofosu et al. (2016), marketers use many controllable parts of the marketing mix to shape customer perceptions about their company to
influence purchase decisions. While Giuseppe (2016) explored a service marketing mix as a method to change perception. Today's business
environment presents difficulties in the narrow context of promoting or selling, which is too myopic and non-integrative to meet a potential
customer's wants and needs (Aashish, 2021). In the context of the marketing mix, despite the price being an essential consideration, other
factors such as product, location, and promotion also play a role in a customer's purchasing decision (Jayaraman & Wong, 2008).
Nevertheless, customers in this day are targeted by mass media, which alters their thinking through emotions, needs, wants, and demands
(Appel et al., 2020). Therefore, according to Keller (2013), a clear strategy based on a complete understanding of the factors will encourage
a consumer to purchase the company's services or brands is required.
2.3 HYPHOTHESES DEVELOPMENT
2.3.1 Product
A product is a good or service that can be supplied to clients in exchange for their attention, acquisition, or consumption, which
fulfils a want or need (Kotler et al., 2008). According to Vahidreza et al. (2015), product quality is crucial when it comes to determining
purchase intent. It is a continuous improvement process in which ongoing modifications improve product or service performance and
customer satisfaction (Faisal, 2020). According to Kavitha et al. (2012), the quality of a product or service has influenced a consumer's
intention in making the decision process. Chi et al. (2011) concluded that customers are more likely to buy a product when a product is
higher quality. The study found that the quality of a product or service has a favorable impact on a customer's purchasing intent. According
to Lew and Sulaiman (2014), compared to a lesser quality product or service, a higher quality product or service promotes a higher purchase
intention. Similarly, Tariq et al. (2013) have indicated the impact of product quality on purchase intent. It was discovered that product or
service quality had a large and positive impact on purchase intention. As a result, the following hypothesis is proposed in this study:
H1: Product element has a significant and positive relationship with purchase intention of plumbing and maintenance services.
2.3.2 Price
Price is the amount of money clients pay for a service or a product or the value they receive (Kotler & Armstrong, 2010). Customers are
influenced by pricing, and it helps them select whether to acquire a product or service (Mohammed, 2016). The quantity of value that
customers exchange for advantages and uses is the nominal amount of money that must be spent to obtain a product or service. According
to Kotler and Keller (2016), product or service pricing significantly impacts customers' perceptions. Hence, Laura et al. (2018) described
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