that the only part of the marketing mix that creates sales income is price, whereas the others are cost elements. Customers' perceptions of
product or service value and purchase intent are significantly influenced by price (Kotler & Amstrong, 2006). Customers typically consider
the price when evaluating the value of services, they have experienced (Virvilaite et al., 2009). According to Haitham (2012), price refers
to what is given up obtaining a product or service and how much people are ready to pay to meet their various needs. When it comes to
deciding what benefits, they want to gain from purchasing items or services, consumers are quite rational (Albari, 2018). A company's
services will provide a good deal at a low price, which will result in a high purchase intention (Morwitz, 2012). The price policy is closely
linked to the consumer's perception of compliance. Komaladewi and Indika (2017) indicated that most respondents believed that price has
a significant impact on their purchasing intention. The following hypothesis is provided based on the above discussion:
H2: Price element has a significant and positive relationship with purchase intention of plumbing and maintenance services.
2.3.3 Place
Place is defined as any method whereby a customer can obtain a product or a service, and it is also referred to as distribution.
(Paulus et al., 2021). It can be both physical and virtual stores. The location is also called a store and includes delivery type, market coverage,
product inventory, product transfer type, and distribution location (Nasirun et al., 2019). According to Goi (2011) and Muala and Qurneh
(2012), to attract customer intention, the location strategy requires effective distribution of the firm's products through marketing channels
such as wholesalers or shops. Kotler and Amstrong (2006) defined place as a collection of interconnected organizations that cater to the
process of making a product or service available to consumers. As a result, the convenient location has a substantial impact on consumer
purchase intent. Ofosu et al. (2016) defined a distribution channel or place as the set of activities of a company that involves the transmission
of goods or services to the final consumer. According to Jeanne and Jamie (2015), a strategic location is an important factor in a business,
and companies must consider how accessible the venues are for customers and whether they are in a strategic position. According to Dachyar
and Banjarnahor (2017), the location has a significant influence on the purchase intention. As a result, the following hypothesis is proposed:
H3: Place element has a significant and positive relationship with purchase intention of plumbing and maintenance services.
2.3.4 Promotion
Promotion is explained as a company's efforts to market a product and encourage customers to buy it (Aristia & Angela, 2017).
Promotion is a market exchange process in which a company develops a collection of marketing communication instruments to communicate
its product message and brand to potential stakeholders and the public (Duncan, 2005). Because the internal and external environment
frequently influences consumers, businesses must utilize a variety of promotional activities to entice them to acquire a product or service
right away (Kotler, 2000). Companies can better promote their products or services and allow potential consumers to purchase services with
the right marketing strategy (Areeba et al., 2017). One of the foremost vital functions of promotion is coordinating all efforts to ascertain
channels, deliver, and persuade customers to purchase the services. Even if the product or service produced by the company is the right
quality product, if people have never seen and heard of this product or service, they will not be confident of the product (Tjahjono & Rezza,
2016). Promotion serves not only to communicate with customers but also to persuade them to utilize service items that are tailored to their
needs and aspirations (Kevin, 2015). According to Dash (2012), promotional activities are ranked second among the seven marketing
activities that can affect a customer's purchase intention. Neha and Raminder (2017) revealed that marketers should focus on these
promotional efforts because societal and regulatory issues influence purchase intention. According to Remziye (2014), the marketing serves
not only to communicate with customers, but also to persuade them to use service items that are tailored to their specific needs and aspirations.
As a result, the following hypothesis predicts a positive relationship between promotion levels and purchase intent in the services industry:
H4: Promotion element has a significant and positive relationship with purchase intention of plumbing and maintenance services.
2.4 RESEARCH FRAMEWORK
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Figure 1: Research Framework
The research framework for this study is shown in Figure 1. The framework in Figure 1 was adapted from Ofosu et al. (2016)
and Mbaye and Jose (2017), who highlighted the product factor, prices factor, places factor, and promotion factor have effect on purchase
intentipn.
⬛ 3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
Research design is an inquiry that offers precise direction for methods in a research project. It is an inquiry that connects conceptual
research concerns to relevant and doable empirical research (Creswel, 2014). According to Syed (2018), a research design is a blueprint or
strategy that is built specifically to answer the study question. Tesfaye (2018) explained that the three types of research design accessible are
exploratory, descriptive and explanatory. According to Julianne (2019), exploratory research is the most open of the three and is usually the
basis for future research. Exploratory research seeks new insight into phenomena and sheds light on ambiguous situation (Mayer, 2015). The
aim is not to derive definite evidence but rather to serve as a basis for further research. On the other hand, descriptive research is based on
qualitative or quantitative data to describe people or situations. According to Zikmund et al., (2009), descriptive research describes the
characteristics of objects, people, groups, organizations, or environment by addressing who, what, when, where, and how question. Thus, the
explanatory research explains why certain patterns appear and how to predict similar patterns in the future. The study area has its ultimate
purpose as each design.
The essence of research design is to transform research questions into data for analysis and provide relevant answers to research questions
with minimal cost (Asenahabi, 2019). It always determines the kind of analyses that must be performed to get the intended outcome. According
to Creswel (2014), the research design must include a strategy for interpreting the examined data to give adequate results and conclusions
from the study, that allows the researchers to make suggestions or draw conclusions from the findings. Qualitative data is employed in
exploratory research, and the process of collecting and interpreting data is done using mathematical and statistical approaches. According to
Naresh (2010), a conclusive research design is used to generate findings that may be used to reach conclusions or make decisions. In most
cases, conclusive research entails using quantitative data collecting and analysis methodologies.
Moreover, conclusive research design is more than likely to employ quantitative rather than qualitative methods. As highlighted by
Nargundkar (2008), there are two types of conclusive research design that can be identified into descriptive research and causal research.
According to Shona (2019), the goal of descriptive research is to explain the facts and characteristics of a certain population or area of
interest in a systematic and precise manner. On the other hand, descriptive research can be divided into cross-sectional and longitudinal designs.
According to Cherry (2019), a cross-sectional study collects data from a population at a single point in time, whereas longitudinal studies
collect data over a longer period of time. Therefore, this study evaluated the connections between product, price, location, promotion, and
purchase intention of plumbing and maintenance services by employing a conclusive research design that comprises descriptive research and
cross-sectional design.
3.2 POPULATION AND SAMPLING
Population is understood as a group of people living the same specific life and mixing in each territory (Tarsi, 2012). From a research
perspective, the intervention's target population is the group of people it plans to conduct research and develop conclusions (Barnsbee et al.,
2018). Thus, the study's target population is referred to the Facebook consumers who have intention to purchase of plumbing and maintenance
services. Sampling refers to a process used in statistical analysis in which a predetermined number of observations are taken from a larger
population (Alicia, 2020). Delice (2010) suggested that a sample size of greater than 50 is recommended for survey research
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and is regarded as an appropriate level while doing research. According to Mumtaz et al. (2020), a carefully selected small sample 100 and
above is more meaningful than a blindly selected large sample 300 and above. Therefore, the study uses a sample size of 122. Furthermore,
the non-probability sampling methodology was used, where judgmental sampling method aimed to collect data from Facebook consumers who
had intention to purchase of plumbing and maintenance services, as well as they had a retail store, residential home, restaurant and grocery,
public and private institution, warehouse, office, and hotel that require plumbing and maintenance services.
3.3 RESEARCH INSTRUMENT
This study adopted the quantitative methods using a questionnaire survey tool to collect the primary data of online respondents in
a Google form format. The questionnaire includes 6 sections, specifically Section A (demographic profile), Section B (product), Section C
(price), Section D (place), Section E (promotion), and Section F (purchase intention). Part A contains ten questions about the demographic
characteristics of the interviewee, such as age, gender, country of origin, occupation, and income level. In Parts B, C, D, and E, 11 questions
related to respondents’ views on possible factors affecting the 4P of the marketing mix; product, price, location, and promotion. The other four
questions in Part F are the customer’s intention to purchase related services.
These items are taken over and adapted from existing tools that measure product, price, location, advertising, and purchase intention (Saaty
& Ansari, 2011). The objective of this measure is to investigate the impact of 4P marketing mix on consumers’ purchasing intentions. The 5-
point Likert scale was used in Part B of the questionnaire, ranging from 1 (strongly disagree, 2 (disagree), 3 (neutral), 4 (agree), and 5 (strongly
agree) using Statistical Package for the Social Science (SPPSS) for processing and analysis information.
⬛ 4.0 DATA ANALYSIS AND RESULTS
4.1 FINDINGS AND ANALYSIS
Data analysis was conducted through collected questionnaire and 122 questionnaires were distributed to the target respondents
using Google form. SPSS was used to analyse the data collected by using the technique such as normality test, descriptive analysis, reliability
test and multiple regression.
4.2 RESPONSE RATE
The online questionnaire was created using Google forms and sent to the respondents via multiple social media platforms. The
target respondents were selected based on the requirement for those who have a retail store, residential home, restaurant and grocery,
public and private institution, warehouse, office, and hotel that require plumbing and maintenance services. However, this study adopted a
judgmental sampling technique to collect the data. A total of 173 sets of questionnaires were sent out, and 122 sets of questionnaires were
returned. Therefore, the usable questionnaires were 122 sets with a response rate of 70.52%.
4.3 DESCRIPTIVE ANALYSIS
In this section, several profiles of 122 respondents are presented such as demographic profile included gender, age, educational
level, occupational status, income level, and property type. This study has collected and analyzed the respondent demographics based on
gender, age, educational level, occupational status, income level, and property type. Table 1 shows the demographic data in this study.
4.3.1 Profile of Respondents
Table 1: Respondent’s Demographic Profile
Demographic Variables Category Frequency (n) Percentage (%)
Male 62 50.8
Gender Female 60 49.2
Total 122 100.0
18 – 30 years old 31 25.4
Age 31 – 40 years old 43 35.2
41 – 50 years old 37 30.3
Over 50 years old 11 9.0
Total 122 100.0
SPM 23 18.9
STPM/Diploma 31 25.4
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Bachelor 37 30.3
Education Level Master/MBA 17 13.9
PhD/DBA 12 9.8
Other 2 1.7
Total 122 100.0
Employee 58 47.5
Unemployed 5 4.1
Occupational Status Self-employed 32 26.2
Retired 9 7.4
Full-time students 18 14.8
Total 122 100.0
Below RM2,000 34 27.9
Income Level RM2,001 – RM4,000 42 34.4
RM4,001 – RM8,000 41 33.6
Above RM8,000 5 4.1
Total 122 100.0
Own Housing 71 58.2
Property Type Rental Housing 43 35.2
Business Premise 4 3.3
Tender 4 3.3
Total 122 100.0
As shown in Table 1, most of this study was from male respondents (50.8%) than female respondents (49.2%). The ranges of the respondent
ages were 18 to 30 years old (25.4%), 31 to 40 years old (35.2), 41 to 50 years old (30.3%), and over 50 years old (9%). Regarding educational
level, the higher percentage was from bachelor level (30.3%), STPM/Diploma (25.4), SPM (18.9%), and the lowest percentages were from
Master/MBA (13.9%), PhD/DBA (9.8%), and Other (1.6%). Most respondents were employee (47.5%), then unemployed (4.1%), self-
employed (26.2%), retired (7.4%), and a full-time student (14.8). The ranges of the respondent income level were: below RM2,000
(27.9%), RM2,001 to RM4,000 (34.4%), RM4,001 to RM8,000 (33.6%), and above RM8,000 (4.1%). For the
property type, most of them owned housing (58.2%) than rental housing (35.2), and the less were business premise (3.3%) and tender (3.3%).
4.3.2 Descriptive Statistics
Table 2: Descriptive Analysis
Variables N Minimum Maximum Mean Standard Deviation
Product 122 1.50 5.00 3.96 0.63
Price 122 1.00 5.00 3.83 0.72
Place 122 2.00 5.00 3.63 0.73
Promotion 122 1.00 5.00 3.73 1.14
Purchase Intention 122 1.00 5.00 4.06 0.70
Table 2. shows the descriptive analysis of this study which is consists of a minimum, maximum, mean, and standard deviation. The Table
2 indicates that the highest mean value is purchase intention (4.06). Besides, the second highest mean value is product (3.96), and the
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third-highest value of mean is the price (3.83). On the other hand, there are two variables with the lowest means value: promotion (3.73) and
place (3.63). Meanwhile, for the standard deviation, the highest dispersion was attained by promotion which is 1.14. This is followed by
place (0.73), price (0.72), purchase intention (0.70), and product (0.63).
4.4 NORMALITY TEST
The normality test is used to evaluate a data set that is normally distributed (Amand & Chris, 2017). Besides, the skewness and
kurtosis values must be between -2 and +2 to achieve acceptable results during the normality test. As shown in Table 3, all the skewness
values of each variable are within an acceptable range between -2 and +2, which product -0.637, price -0.564, place -0.205, promotion
-0.464, and purchase intention -0.692. Hence, it can be assumed that the data set for this study is normally distributed. The kurtosis value
also showed that the data were normally distributed: product 1.126, price 0.922, place -0.747, promotion -1.075, and purchase intention
1.672 with all the ranges in -2 and +2.
Table 3: Normality Test
Variables N Skewness Kurtosis
Statistics Std. Error Statistics Std. Error
Product 122 -0.637 0.219 1.126 0.435
Price 122 -0.564 0.219 0.922 0.435
Place 122 0.205 0.219 -0.747 0.435
Promotion 122 -0.464 0.219 -1.075 0.435
Purchase Intention 122 -0.692 0.219 1.672 0.435
4.5 RELIABILITY TEST
Table 4: The Reliability Analysis
Item Number of Items in Cronbach’s Alpha
Scale
Product 4 0.783
Price 3 0.659
Place 2 0.680
Promotion 2 0.892
Purchase Intention 3 0.921
The purpose of the reliability test is to determine the consistency and reliability of measurement items. Cronbach’s Alpha was
employed to assess the consistency. According to Nawi et al. (2020), there are few reasons to adopt the rule-of-thumb that Alpha should
reach 0.70 for an instrument to have an acceptable level of self-consistency. In support, Said (2018) stated that a Cronbach’s alpha value
between 0.6 and 0.8 is acceptable.
The Table 4 shows the highest scores of reliability test among the variables was purchase intention (Cronbach’s Alpha = 0.921),
followed by promotions (Cronbach’s Alpha = 0.892), product (Cronbach’s Alpha = 0.783), place (Cronbach’s Alpha = 0.680), price
(Cronbach’s Alpha = 0.659). Cronbach’s alpha values for all the items are more than 0.6. Therefore, all the variables are well-established
with an acceptable level of reliability
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4.6 INFERRENTIAL ANALYSIS
4.6.1 MULTIPLE REGRESSION ANALYSIS
Table 5: Coefficients for Relationship between Independent Variables and Purchase Intention
Coefficients
Model Unstandardized Coefficients Std. Standardized t Sig.
B Error Coefficients Beta
1 (Constant) 1.261 0.327 3.861 0.000
Product 0.346 0.097 0.309 3.554 0.001
Price 0.270 0.108 0.276 2.511 0.013
Place -0.75 0.095 -0.078 -0.795 0.428
Promotion 0.178 0.057 0.289 3.135 0.002
a. Dependent Variable: Purchase Intention
The results from the Table 5 shows that product, price, and promotion were significantly and positively related to purchase
intention. However, the p-value of place (p=0.428) was greater than 0.05 and was not significantly related to purchase intention. The beta
value for product was 0.309, price was 0.276, and promotion was 0.289. Product variable had the highest beta value (0.309) among all the
independent variables. Therefore, product is considered as the important predictor in this study. Thus, R2 statistic is computed.
4.7 SUMMARY OF HYPOTHESES
Table 6: Summary of Hypotheses
Items Hypothesis P-Value (<0.05) Result
Product H1: Product element has a significant and positive relationship with 0.001 Supported
purchase intention of plumbing and maintenance services.
Price H2: Price element has a significant and positive relationship with 0.013 Supported
purchase intention of plumbing and maintenance services.
Place H3: Place element has a significant and positive relationship with 0.428 Not Supported
purchase intention of plumbing and maintenance services.
Promotion H4: Promotion element has a significant and positive relationship with 0.002 Supported
purchase intention of plumbing and maintenance services.
Table 5.0 shows the result for hypotheses testing. Among four hypotheses, hypotheses 1, hypotheses 2, and hypotheses 4 are
supported. Product, price and promotion elements have a significant and positive relationship with purchase intention of plumbing and
maintenance services. Only Hypothesis 3 which is the relationship between place and purchase intention is not supported.
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4.8 MARKETING INTERVENTION FOR AZMANBINAHMAD PLUMBING
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Figure 2: Marketing Intervention for AzmanBinAhmad Plumbing
Figure 2 illustrates the marketing intervention in Facebook Page for Azman Bin Ahmad company from September 2021 to October
2021. The name of Facebook page for this company was AzmanBinAhmad Plumbing. Based on the findings from survey, it was proved that
using social media marketing strategy can increase the consumers’ purchase intention. Thus, the Facebook page was created for Azman
Bin Ahmad as reason to increase their potential customers’ intention to know and purchase the services. The Facebook page was created
on 5 September 2021 as the beginning of the intervention.
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During the intervention’s first two months, various of content regarding to marketing mix 4ps were updated according to the survey
results. From the survey conducted it was proved that product’s posting brings the strongest effect on consumers’ purchase intention. As
prove by Michael (2017), it is important to recognize the views of business about the information products and business in creating a
consumer engagement and intention to influence consumer to purchase the product. So, the business details such as business types of
products, business name, contact number, address, and business description were updated on the created Facebook page. Besides, from the
survey it was found that price posting can increase the consumers’ purchase intention. According to Kim et al. (2005), the impact of perceived
price in purchase intention is a stronger for repeat customers than for potential customers. Hence, to increase the consumers’ perceived price,
some of the posters regarding the price of services were posted on the page to inform the potential consumer about the competitive pricing
that Azman Bin Ahamad offers.
Furthermore, frequent interaction through promotion poster and offer for the first-time user on Facebook page was conducted.
According to Ghafran et al. (2014), a discount rate plays a more significant role in the development of consumer intention. Therefore, the
promotion such as 15% discount for all services to the first user were also updated frequently on the page and other media social. Thus, from
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1 September to 30 October 2021, all the content was updated to the page at least once per week.
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Finally, observation and evaluation were conducted on 16 October to 31 2021. At the end of the two months interventions, the
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page was successfully gained 25 page likes and page followers. Hence, the post on Facebook page obtained a page engaged users up to 93.
During the intervention, the Facebook page also received 8 customer requires about the services, which will have big impact on purchase
intention for the company.
4.9 IMPACT OF MARKETING INTERVENTION FOR AZMANBINAHMAD PLUMBING
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Figure 3: Impact of Marketing Intervention for Azman Bin Ahmad
Figure 3 illustrates the form of action taken for Azman Bin Ahmad on the Facebook page based on the variables (product, price,
promotion, and purchase intention) and as well as the outcomes of each action been taken. First, product content was updated with purpose
to grab potential customer attention and increase conversion rate using the useful information about each services poster and video. To
accomplish this, some of contents included the photo of services and video were updated in the Facebook page of the company. Based on
the Facebook insight, it was found that more than 18 people reached the post of services, 5 users were engaged, and 5 people reacted to the
post. Moreover, price posting on Facebook page was achieved by defining the values that makes it worth for the customers to use the services.
From the price post updated, it was found that there the number of Facebook users reached to 17, more than 6 users did the engagement, and
6 users reached to the post.
On the other hand, the page content update is vital to allow potential customers could easy and conveniently access the information
regarding the location of the Azman Bin Ahmad. The most important initiatives took was the update of the contact number, address, and
business background on the Facebook page. In addition, the content posting of promotion could form positive intention of consumer
especially in increasing call-traffic and number of engagements. For example, Azman Bin Ahmad offered redeem price-off voucher (15%)
for the first-time user. These initiatives had resulted more than 22 Facebook users reached the post, 8 of them engaged with Azman Bin
Ahmad, and 8 users reacted to the post.
Lastly, it is important for potential customers to contact the Azman Bin Ahmad for any inquiries of services. By linking to
WhatsApp and Facebook Messenger, it helps potential consumers to easily direct contact with the Azman Bin Ahmad. Thus, some of relevant
post regarding the services had increase the customer intention such as discount poster, detail types of services, and reasonable price offering.
Therefore, the page successful received 8 potential customers to interact the company using WhatsApp, 13 potential customers made a phone
call asking about the services, and 1 customer purchased the services.
⬛ 5.0 DISCUSSION AND CONCLUSION
This study consisted of two research objectives: RO1: To investigate the influences of marketing mix (product, price, place and
promotion) on the purchase intention of plumbing and maintenance services and RO2: To implement marketing mix strategies that can
increase the purchase intention of Azman Bin Ahmad Company.
5.1 DISCUSSION OF FINDINGS BASED ON RESEARCH OBJECTIVES
5.1.1 RO1: To investigate the influences of marketing mix (product, price, place and promotion) on the purchase intention
of plumbing and maintenance services
Based on the findings, its shows that three out of the four hypotheses are supported. First, it has been proved that product factor
has the greatest impact on purchase intention of plumbing and maintenance services. This finding is in line with the previous studies of
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Mirabi et al. (2015), Rehmani and Khan (2011), and Dhanabalan et al. (2018) which concluded that product factor is the first factor that
affect the customer’s purchase intention, and this reveals that product variable is a key factor in influencing the purchase intention of
plumbing and maintenance services customers. As a result, hypothesis 1 is supported in this investigation.
Besides, the result of this study found that price factor directly affects the consumers’ purchase intention as it is considered a high
involvement of the product. This result supports that price factor is important attributes for customers’ consciousness, as it enhances their
purchase intention. Thus, hypothesis 2 is supported in this study. Price factor is proved to bring a strong effect on consumer’s intention
which is aligned with previous studies of Hermann et al. (2007), Alfred (2013), Sutria (2016), and Saktiawan (2012). In addition, this study
discovered that place factor had no significant and positive effect on purchase intention, then, hypothesis 3 in this study is not supported.
However, this finding is aligned with the previous studies of Richard and Guppy (2014), Zhu et al. (2019), and Younus et al. (2015). The
insignificant relationship can be explained that place is not significant when customers search for plumbing and maintenance services. This
is because plumbing and maintenance services should be conducted in the place of customers, instead of the company.
Moreover, this study indicates that there is a positive and significant relationship between promotion and purchase intention. This
study proved that promotion brings a strong effect on consumers’ intention which is aligned with the previous studies of Zoellner and
Schaefers (2015), Dash (2012), Mahmoud (2018), and Bues et al. (2017). Hence, hypothesis 3 in this study is supported. In overall, it is
proved that product, price, and promotion are significant for purchase intention of plumbing and maintenance services. Azman Bin Ahmad
Company can use the findings to create interesting contents to increase purchase intention via Facebook users.
5.1.2 RO2: To implement marketing mix strategies that can increase the purchase intention of
Azman Bin Ahmad Company
The findings of the study revealed that using social media adaption is a key factor to consider that can increase consumer purchasing
intention. Based on the findings, an intervention was conducted by creating a Facebook page for Azman Bin Ahmad company. During the
two-month intervention period, content relevant to the product, price, and promotion were updated on the page. It was proved that product
factor could drive consumers’ purchase intention of Azman Bin Ahmad company. According to Grewal et al. (2019), product posts can act
as a substitute for purchase when those post enables consumers to sufficiently signal identity-relevant information and allow them to coopt
the identity-signaling value of the product or service without actual purchase. Thus, many photos and videos regarding the plumbing and
maintenance service at Azman Bin Ahmad company were updated as this content that can create consumer intention effectively.
Besides, the survey result discovered that price factor could build consumers intention. According to Kotler and Gertner (2012),
price posting is an important component of product advertisements. Therefore, Azman Bin Ahmad company posted detail about price such
as listing every services price, and customer feedback were updated once the page was created to gain their consumers’ intention. Thus, the
content such as company details and company image were posted on the social media page of AzmanBinAhmad Plumbing. Some of users
require information to build consumer’s intention to purchase the services (Chen et al., 2011). So, Azman Bin Ahmad basic details about
business background, phone number, email, and company picture were updated to increase the customer intention.
On the other hand, promotion factor has proved to bring customer purchase intention in this study. Thus, promotion such as price-
off voucher for the first-time user were updated through poster and posting. Hence, during the intervention, the Facebook page of Azman
Bin Ahmad Company could encourage followers to interact with one another by incorporating additional interactive features such as
connecting post to WhatsApp and Facebook Messenger. By regularly updating the Facebook page with variety of content, Facebook users
will gain a better understanding of the Azman Bin Ahmad Company and as a result their purchase intention can be increased.
5.2 RESEARCH IMPLICATIONS
The research findings found some of theoretical and practical implications. In terms of theoretical implications, this study focused
on investigating the relationship between marketing mix (product, price, place, and promotion) and consumers’ purchase intention of
plumbing and maintenance services. The findings indicate that product, price and promotion factors have a positive and significant influence
on purchase intention. However, the finding shows that the place factor has insignificant relationship with purchase intention that needs
further empirical investigations.
In terms of practical implications, this study is important because it will provide some effective marketing strategies for businesses,
particularly plumbing and maintenance service providers. This study discovered that there a significant and positive relationship between
product, price, place, promotion, and purchase intention of plumbing and maintenance services. Hence, a plumbing and maintenance services
marketers need to focus on these variables and update social media content accordingly. Based on the result of the survey, product factor
was determined to be the most important factor in increasing consumers’ purchase intention of plumbing and maintenance services. In
addition, it is important for plumbing and maintenance services to provide a detail price of every services. It is because most of the customer
choose the certain services based on price offer by the company. In addition, providing reliable information regarding the background of
plumbing and maintenance services is vital to enhance the interaction with their page followers for purchase
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intention. The promotion content of plumbing and maintenance services is important tools to build consumer intention among Facebook
users. Therefore, the product and promotion of plumbing and maintenance services could drive purchase intention.
The intervention could be further used by Azman Bin Ahmad management and marketing team to further adjusting their marketing
strategy throughout the Covid-19 pandemic and natural disaster. With a well-thought-out marketing strategy, Azman Bin Ahmad can increase
their potential customers rather than current customer. From the intervention, it was proved that frequent updates of AzmanBinAhmad
Plumbing content on the Facebook page was able to enhance the consumers’ purchase intention. Thus, it is critical to keep information about
the company and its services up to date, as it acts as a basis for consumers to evaluate the company’s services. Furthermore, the intervention
gave a greater understanding of the appropriate content to be put on AzmanBinAhmad Plumbing social media to improve engagement
with potential customers. For instance, from the intervention, it was discovered that promotion and video posting had a higher engagement
rate than photo posts.
5.3 LIMITATION AND FUTURE RECOMMENDATION
This study has some important implications in today’s business environment, it also has a several limitations that should be clarified
and improved for future studies. Firstly, the study mainly limited to the Facebook users. There are other plumbing and maintenance services
who promote their services on other social media platform such as Websites, Mobile Application, and YouTube. As a result, the perception
of users of other social media platforms must be discussed in detail. Thus, future researchers are recommended to investigate users from
other social media platforms such as Mobile Application, YouTube, Twitter, and Websites who have the intention to purchase the plumbing
and maintenance services.
Secondly, the survey strategy of the study is also considered a limitation. A questionnaire was used as the instrument to collect the
primary data for the research, namely as a Google form that can be completed online. Even though Google Form is easy to be done and
delivered to respondents, there are certain downsides of questionnaire that cause it becomes limitation of the study such as untruthful
responses, imbalances in understanding and interpretation of the questionnaire items. As a result, future researchers should consider using
different data gathering methods, such as an interview-based survey, to gain a deeper knowledge of purchasing intention for plumbing and
maintenance services. Thirdly, the study’s sample size was limited, resulting in a lack of generalizability. The limited sample size may not
be representative of plumbing and maintenance service customers. For a better consumer understanding, future studies should use a larger
sample size with more representatives from other states in the country and age categories.
Lastly, the current study’s finding of the relationship between place and purchase intention was insignificant, irrespective place’s
content was proven as a strong association for purchase intention by past researchers such as Vincent and Sibanda (2019), Guan et al. (2020),
Hussain and Ali (2015), and Ariffin et al. (2016). Future studies can use larger sample sizes, different ages of respondents, improved a
measurement item, and using different data collection methods to investigate the relationship between place and purchase intention.
⬛ 6.0 CONCLUSION
In conclusions, this study will help plumbing and maintenance service providers to better understand how to increase their
customers’ purchasing intention. It was proved that there is relationship between product, price, promotion and purchase intention of a
plumbing and maintenance services. There are various social media marketing strategies can be implemented such as variety of contents,
posting daily on Facebook page, using video as promotional tools, and using hashtags for every posting as way to interact and engage with
the potential audience. Nevertheless, the result was proved that no significant result was found for place and purchase intention, and for
further investigation is required for the relationship.
This study is important to plumbing and maintenance services because it gives them a better insight into how to manage their social
media accounts and take advantage of the benefits of social media in this age of rapid technology advancement, when most people use social
media to not only communicate with friends, but as a shop, make sales, discover new businesses and services. In addition, this study can
inspire marketers to generate engaging, attractive, and interactive content that will engage customers and spread a positive of information
regarding the services in the social media community. Additionally, purchase intention is also important for businesses to know why
customers choose to buy from a particular service. In overall, the intervention was effective to Azman Bin Ahmad company to increase their
customers’ purchase intention.
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APPENDIX
Appendix 1
Appendix 2
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Appendix 3
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Appendix 4
Appendix 5
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Appendix 6
Appendix 7
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Appendix 8
501
FINAL YEAR PROJECT
AHIBS UTM SKUDAI JAN 2022
FACTORS INFLUENCING CUSTOMER SATISFACTION: CASE STUDY OF
WARUNG MAK MAH
Muhammad Kadir Bin Ghazali, Dr Mazilah Binti Abdullah
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected] , [email protected]
Abstract
Covid-19 has become a new challenger for Malaysia's food and beverage industry, where all restaurants have a limited time to do business. Prior to the
COVID-19 pandemic, the key reasons driving the food and beverage industry's growth were the increase in on-the-go consumers and the rising use of ready-
to-eat meals. Additionally, the food & beverage industry's expansion was aided by continually expanding population, per capita income, and changing
lifestyles. Hence, this study is about to research customer satisfaction towards Warung Mak Mah. Customer satisfaction is the important thing in every
business to benefit customers. This research examines the relationship between customer satisfaction with food quality, service quality, customer perceived
value, and physical environment. This research also uses the questionnaire to collect Warung Mak Mah's customers via Whatsapp. The research uses several
multiple regressions to measure the customer satisfaction of Warung Mak Mah with its antecedents. The findings from 118 respondents of purposive sampling
through multiple regression analysis indicated that all hypotheses were supported, including food quality, service quality, physical environment, and perceived
value towards customer satisfaction.
Keywords: Food Quality, Service Quality, Physical Environment, Customer Value, Customer Satisfaction.
■ 1.0 INTRODUCTION
The rapid rise of the urban high-income population and timescales for food preparation have helped to the success of the food-
based service industry in Malaysia, which has been the priority. According to Euromonitor (2015), because of the emphasis in the urban
areas and growth of income in most of Malaysian homes, customers kept eating outside on weekdays or even on weekends and holidays
instead of dine at home. The restaurant sector is expected to generate $659 billion in sales in 2020, after an original forecast of $899 billion.
A total of $240 billion was lost because of the pandemic. (Restaurant Dive, 2020). Although the Goods and Services Tax (GST) was
somewhat impacted in 2015, medium- to high-income customers never limit and still decide to dine out for delicious cuisine and good
atmosphere, in which they may relax and release tension in their everyday lives.
The definition of a good restaurant is excellent food, focusing on visual presentations, a wonderful taste of foods, and the quality
of the preparation ingredients (Harr, 2008). In the food industry, the competition between good restaurants and other types of food services
is high. Customer satisfaction should be an important goal for achieving loyal customers and repurchase intention in the industry (Sulek &
Hensley, 2004). Restaurant industries nowadays face a significant issue to deliver quality food that is enticing customers and more
competitive for business people.
Customer satisfaction is one of the corporate goals crucial to building a repeated client (Sulek & Hensley, 2004). Maintaining
positive client relations is critical to the sustainability of hospitality organisations, all the more so when it costs up to five times as much to
gain new customers as it does to retain existing ones. Customer satisfaction is crucial for increasing a customer's likelihood of returning and
for expanding the company's profitability (Tussyadiah, 2016).
■ 1.1 BACKGROUND OF THE PROBLEM
Warung Mak Mah Nasi Ayam Port Dickson is a restaurant that is selling various types of village dishes. The business has
already run for almost seven years at Kampung Bahasa Kapor, 71000 Port Dickson, Negeri Sembilan. The owner of this restaurant is Mr
Fadzil. Besides the restaurant, he also provides other services, catering and renting the catering's equipment. Furthermore, he also owned
two canteens in Politeknik. He is taking the seafood sources from port places. The opening time of Warung Mak Mah is 6 am – 12 am and
have two shifts of working time which are morning and evening, for 12 staff. The restaurant's motto is "Your satisfaction is our goal", which
shows Warung Mak Mah's important symbol.
This restaurant is suitable for the lower and middle class because the food price is fair for the customer to pay. Mr Fadzil has a
plan to open a new branch of Warung Mak Mah in the future. But, since the pandemic of Covid-19, he needs to hold his plan because the
pandemic made his company's sales decline. Because of that, he takes another alternative to collaborate with e-hailing services to deliver
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the food. Besides that, to cover his loss, he needs to think about whether to lay off workers or give staff work rotating. Due to COVID-19,
the store opening hours have been reduced from 6 am-8 pm. The SWOT analysis of Warung Mak Mah is depicted in the quadrant below
(Table 1). The researcher has chosen Warung Mak Mah as it is a famous eaterie and is well known by the communities. Although many
eateries are closing post Covid, Warung Mak Mah maintained its services, including catering, which motivated the researcher to assist the
organisation further.
Table 1: The theme was the basis for the variables chosen in this research.
STRENGTH WEAKNESS
- Easy to get the service - Lack of staff
S - Save time - Mediocre environment W
- Delicious food - Cleanliness
- Fast service - Lack of promotion
OPPORTUNITY THREAT
O - E-Hailing services - Many competitors T
- Growing trend ordering food - Economy down due to pandemic
online
- MCO (raw material)
Moreover, the raw food sources are also blocked due to Movement Control Order (MCO). From that, they cannot prepare various
types of dishes. To make it simple, Warung Mak Mah needs to find more alternative to ensure the restaurant keep survive by making the
promotion or combo set, or other else. Based on the preliminary findings, the issues of Warung Mak Mah is summarised in the below Fishbone
Diagram (Figure 1)
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Figure 1: Fishbone of variable
1.2 RESEARCH QUESTIONS
Four key research questions were identified in this study:
i. Does food quality influence customer satisfaction?
ii. Does service quality influence customer satisfaction?
iii. Does the physical environment influence customer satisfaction?
iv. Does customer perceived value influence customer satisfaction?
1.3 RESEARCH OBJECTIVES
Four major objectives were identified in this study:
i. To examine the influence of food quality towards customer satisfaction.
ii. To examine the influence of service quality towards customer satisfaction.
iii. To examine the influence of physical environment towards customer satisfaction.
iv. To examine the influence of customer perceived value towards customer satisfaction.
■ 2.0 LITERATURE REVIEW
2.1 FOOD AND BEVERAGE INDUSTRY IN MALAYSIA
In the last decades of the 20th century, the concept of sustainable development became an issue of growing interest to industries,
universities, national governments, public and non-governmental organizations (Salim and Padfield, 2017). For developing countries like
Malaysia, the challenges of achieving sustainable development has brought the tension between delivering socio-economic prosperity into
sharp focus while safeguarding and protecting ecological and environmental assets. Expectedly, the food sales in Malaysia between 2015
and 2020 grew more than 7% yearly. Similarly, the food and beverages sector in Malaysia is increasingly sophisticated and influenced by
convenience trends and health. The need for natural and organic foods, minimally processed fresh and functional food, has been created by
the consumers' awareness on healthy lifestyle and nutrition. The uniqueness in the food scene of Malaysia is in its multi-cultural population,
which consists of Malay, Chinese and India and a sizeable number of western and expatriate communities. This led to high demand of
processed and fresh food, halal-friendly products and beverages according to (Akanmu et al., 2021)
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2.2 CUSTOMER SATISFACTION
There is no universally accepted concept of consumer pleasure (McCollough, 2000). One continuous topic in customer satisfaction
forums is the measure to which this process is cognitive or emotional. Engel and Blackwood (1982) defined it as "a (cognitive) evaluation
of the similarity of the selected alternative to earlier assumptions of this alternative".
Disconfirmation paradigm
According to (Barsky, 1992), two ideas that best explain overall customer satisfaction are the disconfirmation paradigm and the
expectancy-value concept. Both are widely accepted theories of consumer behavior, but none examines the link between customer pleasure
and actual purchasing behavior. The principle of disconfirmation argues that customers compare a fresh service experience with a new norm.
This paradigm consists of four components: expectations, perceived performance, disconfirmation, and satisfaction. The level of expectations
represents Pre-consumption expectations. Performance is a term that refers to how a customer perceives a service. When there is a difference
between expectations and performance, disconfirmation occurs. Finally, satisfaction is evaluated by averaging the greater happiness for the
service's various attributes.
Expectancy-value theory
According to expectancy-value theory, customers frequently form judgments about products, their benefits, and the actual outcomes
of utilizing the product. Their whole attitude is based on their opinions about the attributes of an object and the depth of these beliefs.
Additionally, it is commonly recognized that attribute importance affects the consumer decision-making process (Heeler et al., 1979).
2.3 HYPOTHESIS DEVELOPMENT
2.3.1 FACTORS OF CUSTOMER SATISFACTION
2.3.1.1 Food Quality and
Customer
Satisfaction
Food quality is considered as a determining element in a customer's degree of pleasure and future support (Bihamta et al., 2017).
As perceived by an individual, food quality is subjective and varies from person to person (Chamhuri & Batt, 2015). Perceived food
quality is a personal judgment that differs from one individual (Chamhuri & Batt, 2015). Consumers have been more demanding in recent
years, increasing expectations for higher-quality and fresher meats and fruits (Chamhuri & Batt, 2015). It concluded from their study of
1,138 college students' attitudes and preferences toward food quality that food-service consumers have increased their awareness of the
components and origin of the foods they bought (Savelli et al., 2017). Restaurant owners should place a greater emphasis on the perceived
features of food quality as perceived by consumers.
Additionally, other research has established the effectiveness of food quality. For example, they stated that hotel customers'
pleasure is critical in improving brand loyalty, which are other factors that influence customers' perceptions of food quality (Bihamta et
al., 2017). For example, in previous study investigation of food quality, they discovered that food presentation and flavour were
frequently cited as the two most important factors affecting consumer pleasure (Hyun & Han, 2012). Furthermore, the previous study
believed that food temperatures, healthy options, freshness, and taste influenced customers' perceptions of food quality and the food
sector (Namkung & Jang, 2007). As a result, food quality has come to be viewed as a value proposition and an intrinsic aspect of the
consumption experience, particularly about levels of satisfaction (Ha & Jang, 2012). The quality of the food and service has been linked
to increased customer satisfaction and willingness to return and recommend (Namin, 2017). Therefore, the following hypothesis are
presented:
H 1: Food quality has a significant positive influence towards customer satisfaction.
2.3.1.2 Service Quality and Customer Satisfaction
Quality of service has been studied extensively in current literature and from different perspectives (Jin et al., 2019). A previous
study emphasized the critical role of quality of service in influencing consumers' choice to dining out again and their overall satisfaction.
(Jun et al., 2017). Service quality is critical in establishing a positive image with restaurant patrons and ensuring the overall profitability
of food-service establishments. According to (Barnes et al., 2016), it has been suggested that business operators' emphasis on service
quality and customer happiness and delight is a competitive strategy for differentiating themselves from the competition and increasing
consumer spending. Food quality and service quality found that were the two most important determinants of customer happiness, loyalty,
and propensity to promote positive word of mouth in their study of luxury restaurant consumers (Jun et al., 2017). Therefore, the
following hypothesis are presented:
H 2: Service quality has a significant positive influence towards customer satisfaction
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2.3.1.3 Physical Environment and Customer Satisfaction
The significance of physical surroundings in establishing an image and influencing customer behaviours is especially relevant in
the restaurant sector (Ryu & Jang, 2007). While the food and service must be of acceptable quality, the physical environment (e.g., layout
and employee appearance) can significantly influence satisfaction levels and actual outcomes throughout the restaurant industry. Because
services are primarily intangible and often need the customers to be involved in the process, the physical environment can significantly
influence perceptions of the restaurant industry's overall quality and customer satisfaction (Ryu & Jang, 2007). It proposed a substantial
impact on consumer satisfaction in the physical environment (Bitner, 1990). In addition, a previous study studied the effect of the physical
environment on the overall conception of a quality image of service (Bitner, 1992). She defined the word “servicescape” as a combined
influence of all physical aspects that can be modified to improve the behaviour of customers and employees. The term "servicescape"
refers to the "constructed environment," or more precisely, the "man-made, physical surrounds in contrast to the natural and social
environment" (Bitner, 1992, p. 58).
Research reveals a direct correlation between the physical environment and results such as customer satisfaction, according to
(Chebat & Michon, 2003). Furthermore, a previous study claimed that a customer's perception of the physical environment was a direct
predictor of contentment, implying that customer satisfaction was positively and directly connected with components of positive
approach behaviours (Chang, 2000). As a result, restaurateurs may have an additional tool for managing customer satisfaction and good
approach behaviour. Therefore, the following hypothesis are presented:
H 3: Physical environment has a significant positive influence customer satisfaction.
2.3.1.4 Customer Perceived Value and Customer Satisfaction
Existing findings indicate that customer perceived value is a reliable predictor of customer satisfaction and consumer purchasing
behaviour (Ryu et al., 2008). According to Chiou (2004), the customer's perceived value was a significant predictor of customer
satisfaction with internet service providers. Customer perceived value was positively connected with customer satisfaction throughout
the service industries, according to (Andreassen & Lindestad, 1998). Additionally, the previous study established a positive and direct
association between consumers' perceived value and customer satisfaction (Aupperle et al., 2016). According to (Mcdougall & Levesque,
2000), perceived service quality and customer perceived value were the two most important predictors of customer satisfaction across
four service industries: restaurant, vehicle service, hairdressing, and dentist services. Therefore, the researcher hypothesizes:
H 4: Customer perceived value has a significant positive influence customer satisfaction.
2.4 RESEARCH FRAMEWORK MODEL
Figure 1 shows the research framework of this research. The function is to test the relationships between independent variable
and dependent variable. This framework show about the factors of customer satisfaction:
Food Quality
H
Service Quality H2
H3 Customer Satisfaction
Physical Environment
H4
Customer Perceived
Value
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■ 3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
In this study, the researcher picked a conclusive design with a unique cross-sectional design as that of the research design. This
design is helpful for the research examining the relationship between customer satisfaction and other variables (Food quality, service quality,
physical environment and perceived value). The researcher used the survey technique to obtain data. Cross-sectional research also makes it
possible for researchers to adopt structured and formal research methodologies along with the method and features of quantitative analysis
(Josefsen et al., 2010).
3.2 POPULATION AND SAMPLING
The study's target population is low and middle class. In addition, this research is limited by persons who utilize or eat the Warung
Mak Mah service. It is to obtain more precise data on Warung Mak Mah's customer satisfaction. The researcher chose Non- probability
sampling because it may be conducted in a variety of reasonably inexpensive ways. Purposive sampling, alternatively referred to as judgment
sampling, refers to the purposeful selection of an informant based on the informant's characteristics. Purposive sampling, when compared to
other sample methods, is the most appropriate method for this research. It is a nonrandom strategy that does not require theoretical models
or predefined sample size. Said, the researcher determines what information is needed and then seeks out capable and ready individuals to
provide a level of knowledge or history (Lewis & Sheppard, 2006). Delivering a good question, the researcher ensured that a qualifying
question is included to identify whether the consumer has used the services of Warung Mak Mah.
Additionally, the researcher utilized the Cohen Table to generate the acquired data. Cohen Statistical Power Analysis is one of the
most often used methods in the behavioral sciences for calculating the required sample size (Cappelleri et al., 1994). According to the table
of statistical power analysis, a sample size of 118 is required for four independent variables (Cohen, 1992). The researcher included
approximately 10% of respondents in this study to adjust for responders who did not return the survey forms and other restrictions. As the
research evaluated, multiple regression analyzes and significance tests were used at α=0.01 with the F test multiple R2.
3.3 RESEARCH INSTRUMENT
Due to the Movement Control Order (MCO) on the COVID-19, this research has disseminated the questionnaire online utilizing
the Google Forms questionnaire tool. The questionnaire is structured into two sections. The first part dealt with the respondent's demographic
background. Section two shows 22 factors related to food quality, service quality, physical environment, customer perceived value, and
customer satisfaction. The first part uses a nominal scale and the second part uses a Linkert scale. The questionnaire is sent via Whatsapp.
The researcher performs the pre-test before the questionnaire is established. This purpose is to construct a questionnaire that evaluates the
questionnaire's potential effectiveness. Pre-testing assists in identifying improper terminology in question phrasing, inappropriate order,
flaws in question-wording, layout, and instructions, and other issues that could result in respondents being unable to respond to particular
questions, according to (Ikart, 2019). A minimum of 30 responders is required to conduct the pre-test. Next, the researcher then completed
the pilot study. This may begin with assessing the probability of success of proposed strategies for participant recruitment and retention.
Finally, expert reviews are typically used in conjunction with questionnaires to determine their validity. At the same time, previous
evaluations attempted to assess the efficiency of expert reviews in resolving questionnaire issues (Yan et al., 2012). This study had conducted
an academic expert validity to evaluate the items measures. The expert was be picked from the field of Marketing and Management, Dr.
Thoo Ai Chin
■ 4.0 RESEARCH FINDING
4.1 Profile of Respondents
This study plan to collect the respondent demographics based on the gender, age, education level. Table 2 is the demographic data
to be collected in this study.
Table 2: Demographic Profile data
Demographic Frequency Percentage (%)
Gender
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Male 69 51.88
Female 64 48.12
Age
20 years old and below 19 14.29
21 – 30 years old 59 44.36
31 – 40 years old 30 22.56
41 years old and above 25 18.80
Education Level
SPM 36 27.07
STPM/Matriculation/Diploma 41 30.83
Bachelor Degree 27 20.30
Others 29 21.80
4.2 Reliability Test
Cronbach alpha is used to determine the reliability of each independent and dependent variable. Table 3 shows the result for each
variable which are Food Quality value (0.908), Service Quality value (0.900), Physical Environment value (0.831), Customer Perceived
Value (0.902) and Customer Satisfaction value (0.834). It demonstrates that the Cronbach Alpha coefficients for all variables were acceptable.
Generally, a Cronbach alpha of 0.70 is considered to be the lowest common limit. Cronbach's alpha coefficient must be at least
0.70 in order for equipment to be classified reliable, according to (George & Mallery, 2003).
Table 3: Cronbach Alpha’s Result
Variables Cronbach’s Alpha N of Items
Food Quality .908 6
Service Quality .900 5
Physical Environment .831 5
Customer Perceived Value .902 3
Customer Satisfaction .834 3
4.3 Validity Analysis
The research applied normality analysis as a basic concept of correlation in this research. According to the rule of thumb,
researchers utilise skewness and kurtosis to determine an item's normality in this normality test. Skewness and kurtosis may be calculated
using descriptive statistics and then divided by the standard errors. This is a popular test for normality. According to (Garson, 2012), when
data are properly distributed, skewness and kurtosis must be between the range of +2 to -2. Table 3 presents the findings of skewness and
kurtosis for independent and dependent variables. A rule of thumb is applied to all of the variables in this study, which means that none of
them are excluded from the data analysis.
Table 4: Skewness and Kurtosis
Variable Code Question Code N Skewness Kurtosis
FQ 133 -0.656 -1.594
FQ 133 -0.795 -0.339
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Food Quality (FQ) FQ 133 -0.921 -0.130
FQ 133 -0.617 -0.567
FQ 133 -0.736 -1.017
FQ 133 -1.118 0.254
SQ 133 -0.206 -1.090
SQ 133 -0.290 -0.822
Service Quality (SQ)
SQ 133 -0.738 -0.412
SQ 133 -0.504 -0.666
SQ 133 -0.542 -1.037
PE 133 -0.635 -0.651
Physical PE 133 -0.600 -0.626
Environment (PE)
PE 133 -0.400 -1.448
PE 133 -0.604 -0.689
PE 133 -0.092 -1.608
Customer Perceived CPV 133 -0.847 -0.816
Value (CPV)
CPV 133 -0.761 -0.564
CPV 133 -0.387 -1.879
Customer CS 133 -0.830 -0.442
Satisfaction (CS)
CS 133 -0.456 -0.752
CS 133 -0.503 -0.910
4.4 Multicollinearity Analysis
The Tolerance and Variance Inflation Factors are referred to as multicollinearity in this context (VIF). According to (Garson,
2012), tolerance must be greater than 0.2 and the VIF has to be less than 10 (Pallant, 2016). As shown in Table 5, all independent variables
have a Tolerance value more than 0.2 and a VIF value less than 10, indicating that they are acceptable.
Table 5: Multicollinearity test
Variables Collinearity Statistics
Tolerance VIF
Food Quality (FQ) 0.493 2.030
Service Quality (SQ) 0.501 1.996
Physical Environment (PE) 0.505 1.978
Customer Perceived Value (CPV) 0.398 2.510
a. Dependent Variable: Customer Satisfaction
4.5 Multiple Regression Analysis
Table 6 summarises the regression analysis. From the table 6, the R value was 0.654. It means 65.4% of the variance in customer
satisfaction may be explained by the four independent variables of food quality, service quality, physical environment, and customer
perceived value.
Table 6: Regression Analysis
Model R R Square Adjusted R Std. Error of the
Square Estimate
1 .809 0.654 0.643 0.27862
a
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a. Predictors: (Constant), Food Quality, Service Quality, Physical Environment, Customer Perceive Value.
4.6 Summary of Hypothesis
According to the table 7, food quality 0.001 < 0.5, service quality 0.000 < 0.001, physical environment 0.003 < 0.05 and customer
perceived value 0.007 < 0.05. It also shows all of four independent variables has a significant influence toward customer satisfaction.
Customer satisfaction rises when all four independent factors rise as well, as research has shown. Table 7 summarize the hypothesis for four
independent variables in relation to the dependent variable. Each of the four hypotheses has been supported, and no independent variable has
been excluded.
Table 7: Hypothesis Analysis
Variables Beta t Sig. Decision
H1 Food quality has a significant positive 0.241 3.260 0.001 Supported
influence towards customer satisfaction.
H2 Service quality has a significant positive 0.277 3.767 0.000 Supported
influence towards customer satisfaction.
H3 Physical environment has a significant 0.221 3.027 0.003 Supported
positive influence towards customer
satisfaction.
H4 Customer perceived value has a significant 0.227 2.756 0.007 Supported
positive influence towards customer
satisfaction.
■ 5.0 DISCUSSION
Chapter 1 defines the goals of the study, which form the basis for this discussion. According to the outcomes of this study, an R2
value of 0.654 indicated the variation in this data analysis when the predictor variable was 65.4%. Each of the four independent factors was
presented, and each variable had a substantial effect on customer satisfaction.
From this research, food quality had a positive and significant influence on customer satisfaction. As proof, the p-value is 0.003,
which is less than p < 0.05 and the value of β = 0.241, where is acceptable. According to (Chamhuri & Batt, 2015), the quality of food is
subjective and differs from person to person as it is viewed by the individual who consumes it. Over the past several years, customers have
become increasingly demanding, with increased expectations for the quality and freshness of their meats and fruits.
As a result, Warung Mak Mah should continue to value consumer-perceived characteristics of food quality. For instance, in a prior
study on food quality, a previous study observed that presentation and flavour were generally recognised as the two most essential aspects
determining consumer satisfaction (Hyun & Han, 2012). This has led to a shift in consumer perceptions of food quality as a key differentiator
and an essential component of the whole dining experience (Ha & Jang, 2012).
The significant positive influence of service quality towards customer satisfaction is positively supported. It is being supported
by H2, where customer satisfaction is significantly increased when service quality is high. Consequently, the p-value is 0.000, which is less
than p < 0.001, and the value of β = 0.277 indicates that the bounds are acceptable. (Jun et al., 2017) stated that the quality of service
played a big role in people's decision to go out to eat again and their overall level of satisfaction. Warung Mak Mah has given its customers
fantastic service to make their money more valuable. In order to stand out from the competition and boost sales, some business owners
believe they should focus on providing excellent service and making their customers happy. According to a previous study (Jun et al., 2017),
food and service quality were the two most critical drivers of customer contentment, loyalty, and willingness to spread positive word of
mouth.
Next, the findings show that the study results support the relationship between the physical environment and customer satisfaction.
Customer happiness is greatly influenced by the physical environment, which H3 supports. This study's p-value is 0.003, which is below the
threshold of p 0.05, and its value of β = 0.221 is considered acceptable. Services are intangible; hence the restaurant industry's perceptions
of quality and customer happiness can be greatly affected by the physical environment because services are essentially intangible (Ryu &
Jang, 2007). There is much decoration in Warung Mak Mah to create a relaxing mood. Many of the
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respondents have expressed satisfaction with Warung Mak Mah's atmosphere. According to prior research, customer satisfaction was linked
directly and positively to aspects of positive approach behaviours that found the physical environment to be an important predictor of
customers' contentment (Chang, 2000). In this way, restaurants may have a different instrument to manage customer happiness and positive
approach behaviours.
In addition, the data show that customer perceived value is a significant independent variable that affects customer satisfaction. H4
demonstrates that customer perceived value has a considerable beneficial effect on customer satisfaction. According to the results, this
variable has a p-value of 0.007 less than p < 0.05, and value of β = 0.227, which is considered acceptable by this standard. The prices of
Warung Mak Mah's food and beverages were arranged to be convenient for customers to pay. Perceived value relates to the customer's
opinion of whether the items or services they received outweigh the price they paid (Vera & Trujillo, 2013). This way, it is easier for the
customer to choose what they want. In addition, a previous study found that customers' perceived value and customer satisfaction are linked
positively and directly (Aupperle et al., 2016). Also, the two most important determinants of customer satisfaction were perceived service
quality and perceived value (Mcdougall & Levesque, 2000). They also say that the customer's value is based on how much the customer
thinks the product or service is worth compared to how much it costs. Warung Mak Mah makes the price of family combo sets a little more
valuable to win over customers.
In this study, businesses are told how to improve customer satisfaction, especially in the restaurant industry. The most significant
factor affecting customer satisfaction is service quality. Warung Mak Mah should focus on service quality since it can attract customers to
eat and buy the food in the restaurant. To increase the profit, Warung Mak Mah should focus on service quality because the customer looks
for other options, such as a company's reputation, tangible things, and word-of-mouth from people who have used it before. Services are
driven by word-of-mouth and reputation, which is why they must be delivered the first time perfectly. Warung Mak Mah must take quick
action to protect the company's reputation in the event of a problem. It is possible that sales could fall and customers begin to go to another
restaurant that meets their requirements better.
Furthermore, Warung Mak Mah has to be aware of the other restaurants that give a reasonable price for the meal they serve. As a
result, Warung Mak Mah can improve their business by establishing a fair price for their target audience. Moreover, Warung Mak Mah needs
to build a relationship with their customers to make them happy with their service and get a good review. Customers also are more
comfortable if they interact with the staff. This helps them deal with busy nights, reduce stress, and make them more likely to return.
Lastly, a few ideas for future study may be discussed. Further investigation of other variables, all four variables should be carried
out in future in-depth research to better understand the independent variables, which are essentially the aspects that influence customer
satisfaction. Due to time restrictions, only 133 surveys were collected. This means that in future studies, the size of the surveys and hence
the number of participants should be raised to improve the study's reliability and trustworthiness. In this study, customers who purchased
meals from Warung Mak Mah were the only ones included in the sample. Customers who used any of Warung Mak Mah's other services
were excluded. In the hope that future studies may be able to remedy this issue.
■ 6.0 CONCLUSION
The outcome of this research is that the customer satisfaction concept was effectively identified, indicating that four factors
contribute to customer satisfaction at Warung Mak Mah. The findings indicate that food quality, service quality, physical environment, and
customer perceived value had an effect customer satisfaction. By providing the results, businesses may choose which aspects to employ
and how to enhance their operations to better serve their customers.
■ 7.0 ACKNOWLEDGEMENT
Preparing the final year project is difficult because the company cannot provide their sales data and collect data. Meanwhile, my
supervisor, Dr Mazilah, always help me to find a good article which means easy for me to refer to it. Besides, this semester is challenging
due to COVID-19 and also, the time to make this project was very limited. Lastly, I want to mention that this final year project is really good
because I can learn about the format of the final year.
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FACTORS INFLUENCING CONSUMER PURCHASE
INTENTION : TEKPOL ELECTRIC & SUPPLY SDN
BHD
Ng Wai Teng, Zuraidah Sulaiman
Sekolah Perniagaan Antarabangsa Azman Hashim, Universiti Teknologi Malaysia, Johor Bahru
[email protected] , [email protected]
ABSTRACT
The electrical industry has always been sought for, however only faces a booming request since 2017 resulting in
electrical industry has gradually receive more and more attention over the years as people start to take notice on the
importance of it. This results in businesses receiving external threats coming from new company of the same
category. Therefore, the company needs to understand what are the factors that will influence customer buying
intentions to increase the purchase in their shop and gain competitive advantage. This study adopted the quantitative
research approach by gathering respondents’ data using google form questionnaire. The study targets for 120
respondents at least. The non-probability sampling technique is used in this study, which refers to purposive
sampling. All the collected data will be analysed using SPSS software. Expected findings for this research is to figure
the factors affecting consumer purchasing intentions of electrical stores. In conclusion, the findings are expected to
improve competitive advantage of Tekpol Electric & Supply Sdn Bhd.
Keywords: electrical stores, consumer purchase intentions, competitive advantage
■ 1.0 INTRODUCTION
1.1 Company’s Background
Álvarez (2008) suggests that business competitiveness relies on the acquisition of skills in order to achieve higher
productivity, which in turn helps to improve business competitiveness. This is expressed in the ability to add value
to all internal and external actors, allowing them to compete in new sectors and adapt to global markets; that is,
competitiveness is the basis of business growth Martínez (2010). The electrical industry has always been sought for,
however only faces a booming request since 2017. Foreign investment value in the Malaysian electrical and
electronics industry was reported to have achieved RM 10.71 billion in the year 2018. The manufacturing of
electrical equipment as preliminary share of GDP at current prices in Malaysia was 0.5% in the year 2018, according
to Statista. This shows that the electrical industry has gradually receive more and more attention over the years as
people start to take notice on the importance of it.
Tekpol Electric & Supply Sdn Bhd is a company that specializes in selling electrical component, parts, and electric
appliances such as ceiling fans, electrical cables, switches, and more. The location chosen took into account of the
company to the public eyes, whether it is easily noticed or vice versa. Besides that, they made sure to pick a location
where it is convenient to acquire supplies and provide supplies. Since the location in Malim Jaya is faced towards
the main road, the company had placed themselves in a beneficial spot.
Tekpol Electric & Supply Sdn Bhd was first established in 1995 by Mr Lam, a diligent contractor of his time. The
company played a vital role in supplying skilful contractors and workers to the government. From supplying
contractors, the company slowly transformed into an entrepreneurial business company, supplying various types of
electrical goods to the community till today. The company at first was a shared company, consisting of two other
partners who were good friends with Mr Lam. Gradually, both of them had found their own fame through contracting
projects and had since then established their own business, too. Mr Lam continued the service to the government
until 2004, where he retreated from the role of contractor into a businessman instead. His workers continued to work
with him, although the rest had resigned to seek for a better career opportunity. The company’s business started
slow, but steady initially. The business will provide affordable but modern electrical products to customers,
especially for domestic usage.
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Nowadays, people are keen on purchasing long lasting and good quality electrical products after the much news of
short circuits costing lives and big sum of money. Moreover, people are getting busier with their work and chasing
after money that they are seldom at home, and therefore the need for more safety and assuring electrical products
have increased over the years. The idea of Tekpol Electric & Supply Sdn Bhd is to solve these problems, if not all,
little by little. Tekpol Electric wants to become one of the most trusted brands for customers and when people talk
about safe and affordable electrical products, they will be reminded of Tekpol Electric & Supply Sdn Bhd
immediately. Tekpol Electric & Supply Sdn Bhd targets domestic consumers with a few attentions given to
contractors and government projects. This is because electrical components and appliances are usually sought by
domestic customers rather than government projects as they rely more on manufacturing factories for supplies.
1.1.1 Company Vision and Mission
The vision of Tekpol Electric & Supply Sdn Bhd is to provide a better lifestyle and quality electrical
products to customers in the next 10 years. To achieve this, Tekpol Electric & Supply Sdn Bhd has the
following missions to achieve. The first mission is to build a good network with customers and suppliers
to ensure that there is loyalty and consistency in delivering the product and services. The other mission
is to use good quality products and services as a stepping stone to achieve the vision.
1.1.2 Products and Services
Tekpol Electric & Supply Sdn Bhd offers a wide range of general electrical goods. Example of products
sold by Tekpol Electric & Supply are electrical cables/ wires, home electrical switches, long/ short
fluorescent lighting tubes, electrical/ LED bulbs, general fans (KDK, Panasonic, etc), LED Signboards,
decoration lighting, PVC pipes/ casings for electrical use, accessories for pipes etc. Besides selling
electrical products, this company also offer services such as minor repairing for broken electrical goods,
for example, a minor repair for broken lamps.
1.2 Problem Statement
The company faces an external threat coming from new companies in the same category. Not only that these
companies are well-polished, they also have better system and a well organized internal management than Tekpol
Electric & Supply Sdn Bhd, as well as more workers to carry out their daily activities. This is a problem to the
company because when customers realize that they can obtain goods quicker at more standardized price from these
well-established companies, they will stop or lessen their order from Tekpol Electric & Supply Sdn Bhd. Therefore,
Tekpol Electric needs to understand what are the factors that will influence customer buying intentions to increase
the purchase in their shop and gain competitive advantage.
1.3 Research Question
RQ 1 = Are there any relationships between brand, price and trend with consumer purchasing intentions of Tekpol
Electric & Supply Sdn Bhd?
RQ 2 = What are the the most important factor that influences consumers’ intention to purchase at Tekpol Electric
& Supply Sdn Bhd?
RQ 3 = Will social media marketing improve consumer purchase intention of Tekpol Electric & Supply Sdn Bhd？
1.4 Research Objective
RO 1 = To identify the relationship of brand, price and trend with consumer purchasing intentions of Tekpol
Electric & Supply Sdn Bhd.
RO 2 = To investigate the most important factor influencing consumer purchase intention of Tekpol Electric &
Supply Sdn Bhd.
RO 3 = To determine whether social media marketing improve consumer purchase intention of Tekpol Electric &
Supply Sdn Bhd.
■ 2.0 LITERATURE REVIEW
This chapter will describe about the definition and terms of the dependent variable and independent variables. A
conceptual framework was illustrated to show the relationship of the variables.
2.1 Consumers purchasing intention
It is known that the most wide spread and influential assumption in consumer’s buying intention is that their
purchases come before their decision making process. There is a flowchart of what goes in their mind when they are
evaluating a product which could possibly be the stepping stone to their purchase decision. According to Kotler
(1997), decision making is classified as extensive problem solving. There appear to be six stages of consumer
resolution making process which are awareness, liking, knowledge, conviction, preferences, and also purchase
(Kotler and Armstrong, 2010). These stages allow marketers to know what attracts the customers and what does not
attract them.
According to Ramya and Mohamed Ali (2016), consumer buying buying intention refers to the purchase,
selection, and consumption of products and services for the satisfaction of their wants. In this study, consumers
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purchasing intention are triggered by a few factors such as brand, trend, and price The consumer decision making
process is significant to determine their purchase decision (Parwardhan et al, 2010).
2.2 Hypothesis Development
2.2.1 Brand
Based on previous research, Khan, Rahmani, Hoe & Chen (2015) mentioned that brand image is said to be the
opinions and views of buyers about the brand in question. Through the specialty of the image of brand, customers
can assess the value, acknowledge a product, decrease buying hazards, and achieve satisfaction. When a product has
a powerful brand image, customers acknowledge that it is of high quality. It can conclude that customers most of the
time use brand image as a shorthand for expressing quality and value. According to Shahid, Hussain & Zafar
(2017), a brand is their name, term, symbol, design or combination to label the goods and services of a seller or
group of sellers and to recognize them from those of competitors. Brand is also a 'perception’. This is a consumer's
cognitive relation to the product. Quality comes from image and perception. Few criteria, such as practical and
emotional interactions, influence customer expectations. Therefore, if a consumer's right corner of mind is filled by
the world's worthiest recognition, it becomes a product. "The physiological character of a brand is its logo or symbol
which helps to create a lasting impression in consumers ' minds." A brand's name is the initial thing that calls in a
consumer to a brand.
Khan, Rahmani, Hoe, & Chen (2015) define many individuals use various types of products, from
fundamental requirements to highly valued collectables. When customers recognize the need for a product, they
begin by looking for product data, then assess the accessible brand options, and lastly decide to buy. Intention to buy
means that a customer has personal preference for a particular item and has proven to be an important factor in
predicting consumer behaviour. Moreover, brand is a significant marketing variable because it is not possible to
separate the launch of activities and the delivery of services or products from the reputable brand. In addition, the
name is also an important attribute of a product and a brand identity to differentiate the products of the business
from other products produced by competitors. It makes it easier for consumers to recognize the product by giving
the brand on a product. To give a clearer explanation of the definition of the product, experts believe that the
following is some interpretation of the name. "Broadly speaking, the brand is a title, term, symbol, design or
combination of those things intended to differentiate the goods or services of an individual or group and to
distinguish their products from other competitors’ products., Foster (2016).
Branding plays a role in distinguishing between services and goods. On the contrary, the perceived
distinction can make a brand a centrepiece of information when making a purchase decision or intention to buy back.
Some researchers advised that marketplace product identity can be built by a clear and remarkable brand image.
Increasing profit margins can also improve intermediate cooperation and broaden the product. Consumers with little
awareness towards branding would rely on brand image for the most part. Brand equity is a brand- related property
and responsibility, such as names and logos. This may have a beneficial or detrimental effect on the value of a
product or service, and equity has a distinctive effect on the brand. Awareness of brand, brand affiliation, brand
loyalty and understanding are the four key dimensions that lead to brand equity, Oke, Kamolshotiros, Popoola,
Ajagbe & Olujobi (2016).
According to Chovanová, Korshunov & Babčanová (2015),(2015), one must understand the fact that brand
is the factor that has influences on the decision-making process for buyer purchases. Brands provide product
information and associations that affect the consumer's mind in the purchasing process. Brand awareness is a very
important category of consumer behaviour research. Appropriate forms of marketing activities as a whole can create
a positive brand association and start a positive brand purchase action. Label is a certain quality in the consumer's
view. The research of Chovanová, Korshunov & Babčanová (2015), according to participating survey respondents,
value is a significant factor in their process in decision-making of buying a product. The behaviour of purchasers is
affected by a many factors that interact in complicated ways. With a better understanding of the perceptions of the
customer; companies can identify the actions necessary to meet the needs of the customer. Nowadays, market stage
is becoming a position of lack of goods due to the current global circumstances, resulting in the loss of brand loyalty.
As companies create loyalty agreements with their clients, these requirements can be avoided. Therefore, the value
proposition of the products offered will meet the standards and expectations of consumers.
The research of Foster, B. (2016) consumers will go through several stages in making a purchasing
decision, including the particulars search stage and the appraisal of substitutes. This means customers will face
several choices that will be taken into account when making purchasing decisions. Here, the identity of the brand
becomes important in the decision-making process. This is where the image of a brand has a significant position to
shape the procedures in a decision-making. The importance of the brand becomes very influential as it is the product
attribute in signifying the quality of the products, characteristics and other features associated with those items to
consumers. Customers would keep it in mind the brand if the value of the brand is perceived to be good for
consumers and ultimately affects the customer when taking a decision to buy a product.
H1 = There is a positive relationship between brand and consumer purchasing intention of electrical stores.
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2.2.2 Price
Based on the economics factor of consumer decision making, there are some aspects that are categorised. It is price,
personal income, family income, income expectation, savings, interest rate, and liquid assets of the consumer,
consumer debit and many more. On the previous research, Smith (2004) has used the most tested factors in studies
related to buyer purchase behaviour towards apparel products, to explore the consumer preferences for home
textile products. The most important purchase criteria were price followed by colour and style for bedding and
price and colour for bath products. According to Chang (2011) price and brand are also related to purchase
intention, while Lichtenstein et al, 1993, p.235 said price consciousness has also been defined in the marketing
literature with slightly different ways, including a buyers' "unwillingness" to pay for a higher price and/ or " the
exclusive focus" on paying low prices. The definition the researchers adopt here is "a consumer's doubt to pay for
distinguishing features of a product if the price difference for these features is too big, according to Monroe and
Petroshius, (1981). The phrase "too big" suggests that the consumer "trades off" the higher price with potential
benefits.
Moreover, "distinguishing features" could also include the brand name of the national brand. According
to Alfred (2013), price is one of the factors in marketing mix and they can change very easily compared to promotion,
product, and place. Monroe and Krishnan (1985) said that the length of consumer price consciousness does vary
across product categories, where the buyers may be more or less price-conscious when shopping for certain products
in contrast to other, because of differences in the perceived riskiness of purchasing decision across categories and
other reasons. Based on the previous research, where (Chapman 1986; Mazumdar 1986; Monroe and Krishnan 1985)
define price as an exchange is consistent with conceptualizations by other researchers in pricing. Some findings
from the other studies also support the idea that some consumers are more likely than others to use price as a
justification of quality in most situations and products (Lichtenstein and Burton, 1989; Peterson and Wilson 1985).
Credit cards have become an important component of personal management and consumer lifestyle
management (Dunkin, 2000; Hayhae et al., 2000; Kaynak and Harcar, 2001; Bernthalcet, 2005). According to
Erderner and Harcar (2001), knowledge, beliefs, likes and dislikes as well as attitudes of owner influence the usage
of credit cards during purchase.
H2 = There is a positive relationship between price and consumer purchasing intention of electrical stores.
2.2.3 Trend
Trend refers to the fashion style when people want to make decision regarding buying a goods or services. They
want to always be up to date in fashion especially for people who always have social life. The more people who
follow a trend, the more others will want to follow it. According to Levi and Linton (2003), what they are actually
trying to sell is the norm that people in growing countries should factor trend into their purchasing intentions. This
means that to produce and sell any new electrical product someone must always be alert of what is the new trend to
have customers’ satisfaction. Trends appear widely and are considered by readers to be the most interesting content
of fashion magazines according to Bailey & Seock (2010). However, it also should be based on the original idea
before making new trend. Sometimes, to get what they want, they scout and investigate about their taste and desire
before choosing any new trend.
H3 = There is a positive relationship between trend and consumer purchasing intention of electrical stores.
2.3 Research Framework Model
By illustrating this research framework model, the relationship between the factors are shown and summarized
clearly. On the left side of the framework depicts the independent variables which are internal factors, brand, price,
and social class. These variables will be the factors affecting consumers purchasing intention of Tekpol Electric &
Supply Sdn Bhd.
Framework
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Ng Wai Teng (2021)
H1
BRAND
H2 CONSUMER
PRICE PURCHASING
INTENTION
H3
TREND
Flowchart 1: Conceptual Framework of Factors Affecting Consumers Purchasing Intention
■ 3.0 METHODOLOGY
3.1 Research Design
The framework, or collection of methods and processes used to gather and analyse data on variables stated in a
specific research topic, is referred to as the research study design. This quantitative study assessed the effect of brand,
economic fa/ctors and trend on consumers’ intention to purchase electrical goods. Respondents were asked to select
the best choice from a five-point Likert scale for a list of things presented in the questionnaire. The Likert scale
included five levels of agreement: ‘strongly agree,' ‘agree,' ‘neutral,' ‘disagree,' and ‘strongly disagree' (Vagias and
Wade, 2006). The hypotheses were tested based on the questionnaire items that revolved around electrical goods.
3.2 Sampling Technique
Based on the researchers' own opinion, the non-probability sampling approach, specifically purposive sampling, was
used in this study. Purposive sampling is not only appropriate for the research setting, but it is also rapid, easy, and
cost effective.
3.3 Population and Sample
Population is defined as a collection of items that contain the information that the researcher is looking for. By
selecting the target population linked to the study topic, the same common feature may be determined. The number
of components that can be included in the research investigation is specified as the sample. The following formula
was used to determine the best sample size for the Malaysian population. Tabachnick and Fidell (2007) state that a
five-to-one ratio defines the minimal size based on the number of variables to be evaluated. As a result, 120 people
were needed for this investigation. The following are the equations:
Independent Variables = (5 x 5) + (6 x 5) + (4 x 5) = 75
Dependent Variable = (4 x 5) = 20
Demographic = (5 x 5) = 25
Minimum number of sample = (IV + DV + Demographic)
= (75 + 20 + 25) = 120 respondents
The total number of respondent ≈ 120
3.4 Data Collecting Method
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The questionnaire survey approach was used to obtain primary data in this study. Primary data are data collected
directly from respondents in order to answer the research topic (Malhotra, 2009). In this study, respondents were
given questionnaires through Google Form. When a large number of people are involved in a study, the survey
technique is considered appropriate. The respondents have freely agreed to take part in this survey. This study
involved six marketing steps: identifying the problem, creating the technique, formulating the research design,
collecting data, analysing data, and organising and presenting the study results. These procedures were followed in
order to get favourable and effective results.
Section: Content
Section A Demographic profile respondent
Section B Independent variables - Brand, price, Trend
Section C Dependent variables - Consumer Purchase Intention
Table 1: Sections in Questionnaire
Factor Source From Literature Scale Item
A. Demographic Profile
1. Male
Gender
2. Female
1. 15 and below
2. 16 - 25 years old
3. 26 - 35 years old
Age
4. 36 - 45 years old
5. 46 - 55 years old
6. 56 and above
1. Malay
2. Chinese
Ethnicity
3. Indian
4. Others
1. Below RM 1000
2. RM 1001 – RM 3000
Monthly 3. RM 3001 – RM 5000
Income Level
4. RM 5001 – RM 7000
5. RM 7001 – RM 9000
6. RM 9001 and above
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Ng Wai Teng (2021)
1. 3 times and below
Frequency of 2. 3-6 times
visiting
electrical 3. 6-10 times
store in a
month 4. 11-15 times
5. 15 times and above
B. Independent Variable
1. I purchase because I think the brand is very
Singh, R. P., & Banerjee, N. (2018). good.
Exploring the influence of celebrity
credibility on brand attitude, advertisement 2. I purchase because I think the brand is very
attitude and purchase intention. Global useful.
Business Review, 19(6), 1622-1639.
3. I purchase because my opinion of the brand is
Brand very favorable.
4. I purchase because I’ve heard of this brand
McClure, C., & Seock, Y. K. (2020). The role before
of involvement: Investigating the effect of
brand's social media pages on consumer 5. I purchase because I’m familiar with this
purchase intention. Journal of Retailing and brand
Consumer Services, 53, 101975.
1. I purchase because the price I paid was
Dai, B. (2010). The impact of perceived price honest.
fairness of dynamic pricing on customer
satisfaction and behavioral intentions: The
moderating role of customer loyalty (Doctoral 2. I purchase because the price I paid was
dissertation). justified.
Price
Musharraf, Muhammad Bilal and Ali, Tahir,
Factors Influencing Consumers Purchase 3. I give more importance to price when I buy
Intentions Towards Private Brands (July 10, products.
2013). Journal of Independent Studies and
Research-Management, Social Sciences and
Economics, Volume 11, Number 2, July -
December 2013
4. I purchase because the prices of the
Cakici, A. C., Akgunduz, Y., & Yildirim, O. product is an acceptable level.
(2019). The impact of perceived price justice
and satisfaction on loyalty: the mediating
effect of revisit intention. Tourism Review. 5. I purchase because the prices of the
product is reasonable.
Boulding, W., & Kirmani, A. (1993). A 6. I think a higher price implies higher
consumer-side experimental examination of quality of a good.
signaling theory: do consumers perceive
warranties as signals of quality?. Journal of
consumer research, 20(1), 111-123.
520
Ng Wai Teng (2021)
1. I made purchase to follow up to the latest
trend.
Navarro, G. M. (2016). The influence of
blogs in fashion in consumer behavior: an 2. I think I can express my feelings based on my
exploratory approach. Vivat lifestyles.
Academia, 19(135), 85-109. 3. Other people influence me to follow trend.
Trends
4. I feel satisfied when I follow the trend.
C. Dependent Variable
1. I would like to have more information of the
business
Singh, R. P., & Banerjee, N. (2018).
Exploring the influence of celebrity 2. I’m likely to make a purchase from the shop
credibility on brand attitude, advertisement
Consumer attitude and purchase intention. Global 3. I’m interested in the brand of the business
Business Review, 19(6), 1622-1639.
Purchase
Intention
McClure, C., & Seock, Y. K. (2020). The role
of involvement: Investigating the effect of 4. In the future I’m very likely to purchase from
brand's social media pages on consumer this business
purchase intention. Journal of Retailing and
Consumer Services, 53, 101975.
Table 2: Measurement Variables
3.5 Data Analysis Design
The collected data was analysed with the Statistical Package for Social Science (SPSS) to evaluate the connections
between independent factors (brand, price and trend) and dependent variables (consumers' intention to purchase
electrical products). A normality test is performed to confirm that the data is normally distributed. According to Hair
et al. (2017, p. 61), when the Skewness and kurtosis are zero, the pattern is regarded a normal distribution. When the
Skewness is +1 or less than -1, the pattern indicates a significantly skewed distribution. When it comes to kurtosis,
the general rule is that if the number is more than +1, the distribution is too peaked, and if the kurtosis is less than -
1, the distribution is too flat. The reliability analysis is performed to assess the dependent and independent variables
by examining the Cronbach Alpha range. According to Hair et al. (1998), if the value is equal to or greater than 0.6,
the data is trustworthy. The minimal value, according to Nunnally (1978), is 0.70, while Cronbach's Alpha values
vary depending on the number of items.
4.0 DATA ANALYSIS AND FINDINGS
Several tests and analyses were performed to meet the research goals utilising the Statistical Package for Social
Science (SPSS) with IBM Statistics SPSS Version 27.0 software. The findings of the tests will be used to assess
whether or not the hypotheses given in Chapter 2 can be supported. The data from the study were analysed using the
Statistical Package for Social Science (SPSS) software when sufficient data had been collected. The reliability test
was used to calculate data accuracy, and the descriptive analysis was used to analyse the data and provide descriptive
information (Zikmund, 2003). Multiple regression, beta coefficient analyses, and the T-test were used to prove the
assumptions. Multiple regression analysis was used to assess the strength of the link between independent factors
and the dependent variable, whereas beta coefficient analysis was used to identify the most important independent
variable that influenced the dependent variable. Finally, the T-test was used to analyse the effect of the intervention
on the dependent variable. Table 4.1 provides an overview of the statistical tests used in this study.
Research Objective Independent Variables Dependent Variable Statistical Measure
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Ng Wai Teng (2021)
To identify the relationship of brand, price and Brand, price and trend Consumer purchasing
intentions of Tekpol
trend with consumer purchasing intentions of Electric & Supply Sdn Multiple Regression
Tekpol Electric & Supply Sdn Bhd.
Bhd
To investigate the most important factor Consumer purchasing
influencing consumer purchase intention of Tekpol Brand, price and trend intentions of Tekpol Beta Coefficient (β)
Electric & Supply Sdn Bhd. Electric & Supply Sdn
Bhd
To determine whether social media marketing Consumer purchasing
improve consumer purchase intention of Tekpol Intervention – Social intentions of Tekpol
Electric & Supply Sdn Bhd. Media Marketing Electric & Supply Sdn Paired Samples T-test
Bhd
Table 4.1: Summary of Statistical Tests
4.1 Descriptive Analysis
4.1.1 Respondents Background
The demographic frequencies analysis of 120 respondents is shown in Table 4.2, which covers gender, age, ethnicity,
monthly income level, and frequency of visits to electrical stores in a month. The following charts intended to provide
a full explanation of the demographic information provided by respondents.
Demographic Profiles Characteristics Frequencies Percentage (%)
Male 52 43.3
Gender
Female 68 56.7
15 and below 1 0.8
Age
16 - 25 years old 107 89.2
26 - 35 years old 6 5
36 -45 years old 5 4.2
46 -55 years old 1 0.8
56 and above 0 0
Malay 6 5
Chinese 112 93.3
Ethnicity
Indian 0 0
Others 2 1.7
Below RM 1000 81 67.5
Monthly Income Level
RM 1001 – RM 3000 29 24.2
RM 3001 – RM 5000 7 5.8
RM 5001 – RM 7000 2 1.7
RM 7001 – RM 9000 1 0.8
RM 9001 and above 0 0
3 times and below 105 87.5
Frequency of visiting electrical stores 3-6 times 10 8.3
6-10 times 4 3.3
11-15 times 0 0
15 time and above 1 0.8
Table 4.2: Summary of Respondents Demographic
According to the data, there are more female respondents (56.7 percent) than male respondents (43.3%
). The majority of responders (89.2 %) are between the ages of 16 and 25, followed by 26 to 35 years old
(5%), 36 to 45 years old (4.2 %), 15 years old and under, 46 to 55 years old (0.8%), and 56 years old and
above (0% ). In this study, Chinese (93.3%) were the most common, followed by Malay (5%), others
(1.7%), and Indians (0% ). Furthermore, most respondents have monthly income level of below RM1000
(67.5%).
522
Ng Wai Teng (2021)
4.2 Normality Test
In this study, all dependent and independent variables are subjected to normality tests in terms of Skewness and
Kurtosis. According to Hair et al. (2013), data is deemed regularly distributed if the Skewness value is between -2
and +2 and the Kurtosis value is between -7 and +7. The results of the normality test based on Skewness and Kurtosis
are shown in table 4.3.
Variables N Valid (Statistic) Skewness Kurtosis
Brand 120 -.542 .019
Price 120 -.448 -.344
Trend 120 -.358 -.712
Table 4.3: Result of Normality Test
Each variable in the research has a normal and perfectly symmetrical distribution, according to the normality test.
The skewness of brand is -0.542 and kurtosis is 0.019 while the skewness of price is -0.448 and kurtosis is -0.344.
Trend have skewness of -0.358 and kurtosis of -0.712.
4.3 Reliability Test
The Reliability Analysis is performed to confirm that the results of the variables utilised in this study are trustworthy
and reasonable. Cronbach's Alpha is used to assess the reliability of variables, and a variable is deemed trustworthy
if the reliability coefficient is more than 0.70. (Cronbach & Shavelson, 2004; Garth, 2008).
Number of Cronbach’s
Variables Items Relationship
Items Alpha
1. I purchase because I think the
brand is very good.
I purchase because I think the
brand is very useful.
Brand I purchase because my opinion of 5 0.869 High
the brand is very favorable.
I purchase because I’ve heard of
this brand before
I purchase because I’m familiar
with this brand
I purchase because the price I
paid was honest.
I purchase because the price I
paid was justified.
I give more importance to price
Price when I buy products. 6 0.873 High
I purchase because the prices of
the product is an acceptable level.
I purchase because the prices of
523
Ng Wai Teng (2021)
the product is reasonable.
I think a higher price implies
higher quality of a good.
I made purchase to follow up to
the latest trend.
I think I can express my feelings
based on my lifestyles.
Trend 4 0.922 Excellent
Other people influence me to
follow trend.
I feel satisfied when I follow the
trend.
I would like to have more
information of the business
I’m likely to make a purchase
Consumer from the shop
Purchase 4 0.822 High
Intention
I’m interested in the brand of the
business
In the future I’m very likely to
purchase from this business
Table 4.4: Result of Reliability Test
The table above shows the reliability analysis result by using Cronbach’s Alpha for this study. The closer the
reliability CA coefficient value get to 1.0, the better the scale is. The first independent variable, brand with CA value
of 0.869 which is more than 0.7 means that this variable is accepted and has internal consistency. The second
independent variable, with CA of 0.873 which is higher than 0.7 and it is consider acceptable and has internal
consistency. For third independent variable, trend with CA value of 0.922 which is more than 0.7 means that this
variable is accepted and has internal consistency. While for dependent variable, consumer purchase intention has
high CA value of 0.822 which is more than 0.7, and it is consider acceptable and has internal consistency. Hence,
based on Table 4.4, it can be summarized that all the constructs used in this study have internal consistency and
reliable, as all of the Cronbach’s Alpha coefficient value are more than 0.7.
4.4 Multiple Regression
Multiple regression is a statistical technique used to investigate the connection between independent factors and
continuous, dependent variables. To obtain the findings, the variables must be interval or scale level variables that
are regularly distributed in the research. The significant value is used to assess if the independent variables have a
link with the dependent variables; if the significant value is less than 0.05, the findings should be positive. The
Standardized Coefficients Beta value, on the other hand, is used to assess which independent variables have the most
significant link and will be impacted by the dependent variable.
a
Coefficients
Standardized
Coefficients t Sig.
Model Unstandardized Coefficients
524
Ng Wai Teng (2021)
B Std. Error Beta
1 (Constant) 2.034 .414 4.916 .000
Brand .136 .120 .133 1.136 .258
Price .241 .131 .229 1.834 .069
Trend .079 .054 .139 1.456 .148
a. Dependent Variable: Consumer Purchasing Intention.
Table 4.5: Multiple Regression – Coefficients
As seen from the result of Multiple Regression in Table 4.6, illustrate that all variables are not significant
towards the continuous, dependent variables due to their significant value are higher than 0.05. Those variables are
Brand (β = 0.136, sig = 0.258) , price (β = 0.241, sig = 0.069) and trend (β = 0.079, sig = 0.148).
Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .417 a .174 .152 .58295
a. Predictors: (Constant), Trend, Brand, Price
Table 4.5: Multiple Regression – R Square
Based on table 4.5, the value of R-square is 0.174, which means that 17.4% of the variance is explained
by the independent variables including of brand, price and trend. Concurrently, an additional 82.6% factors to
consumer purchase intention are derived from another independent variable which is not evaluated in this research.
Meanwhile, the value of adjusted R square is 0.152, which means that 15.2% had been significantly explained by
independent variables in this study.
4.7 Paired Samples T-test
Paired samples t-test has been used to evaluate the impact of the intervention (social media marketing ) on dependent
variable in this research. The value of sig. must be less than 0.05 to show the effectiveness of the intervention (social
media marketing) on dependent variable.
Paired Samples Statistics
Mean N Std. Deviation Std. Error Mean
Pair 1 Pre Intervention 3.9333 120 .63323 .05781
Post Intervention 4.9833 120 .12856 .01174
Paired Samples Test
Paired Differences
95% Confidence Interval of the
Difference
Std. Error
Mean Std. Deviation Mean Lower Upper t df Sig. (2-tailed)
Pair 1 Pre - Post -1.05000 .64136 .05855 -1.16593 -.93407 -17.934 119 .000
Table 4.6: Paired Sample T-test (Intervention-Social Media Marketing)
Referring to the paired sample t-test tables (table 4.6), there’s a statistically significant rise of pre-intervention
( M= 3.9333, SD=0.63323) to post-intervention - Social Media Marketing (M= 4.9833, SD=0.12856). The sig (2-
tailed) is 0.000, indicating that the significant value is less than 0.05, implying that there is a significant difference
between before and after intervention – Social Media Marketing.
525
Ng Wai Teng (2021)
4.8 Summary Of Findings
The summary of findings and objectives met in this study is shown in table 4.7.
Support of
Research Objective Research Hypothesis Hypothesis (Yes Result
or No)
H1 = There is a positive relationship No p = <.05 (β = .133,
between brand and consumer p = .258)
purchasing intention of electrical stores.
p = <.05 (β = .229,
H2 = There is a positive relationship No p = .069)
RO1:To identify the relationship of brand, price between price and consumer purchasing
and trend with consumer purchasing intentions of intention of electrical stores. p = <.05 (β = .139, p
Tekpol Electric & Supply Sdn Bhd.
= .148)
H3 = There is a positive relationship No
between trend and consumer purchasing
intention of electrical stores.
Research Objective Result
RO2: To investigate the most important factor influencing consumer purchase intention of
Tekpol Electric & Supply Sdn Bhd . None
RO3: To determine whether social media marketing improve consumer purchase intention Significant difference between pre and post
of Tekpol Electric & Supply Sdn Bhd.
Table 4.7: Summary of Findings
5.0 DISCUSSION AND CONCLUSION
5.1 Introduction
This chapter contains a thorough discussion of the preceding chapter's results. Each discussion is carried out in order
to meet the goals of this research, as stated in Chapter 1. The discussion's argument will be based on the literature
review in Chapter 2. Furthermore, the findings of this study might be used by businesses looking to better their
social media marketing efforts or commercials. This chapter will also discuss the research limitations and future
research plans for the research study on customer purchase intentions of electrical stores. Aside from that, this chapter
will bring the entire research to a close. Finally, various ideas for future research relevant to this topic will be
explored.
5.2 Hypothesis Discussion
The sections that follow explain the multiple regression results for each hypothesis. Thus, if there is a significant
relationship with the dependent variable in consumer purchase intentions, there is a significant relationship among
the independent variables of brand, price and trend.
5.2.1 H1 = There is a positive relationship between brand and consumer purchasing intention of electrical stores.
Support to Hypothesis (Supported or Not Supported) Results
Not Supported Sig. : p<0.05 : 0.258
β = .133
Table 5.1: Result of Hypothesis 1
Unfortunately, the results of table 5.1 show that H1 is rejected since there is no significant relationship between
brand and consumer purchasing intentions of Tekpol Electric & Supply Sdn. Bhd. The result (β = 0.133, sig = 0.258)
indicate that brand will not influenced consumer purchasing intentions of Tekpol Electric & Supply Sdn Bhd. The
data suggest that usefulness, opinions and familiarity of brand have no strong influence towards consumer purchase
intentions of Tekpol Eletric & Supply Sdn Bhd. In conclusion, Tekpol Electric & Supply Sdn Bhd's customer
purchase inclinations will not be impacted by brand. Therefore, H1 is not supported.
5.2.2 H2 = There is a positive relationship between price and consumer purchasing intention of electrical stores.
Support to Hypothesis (Supported or Not Supported) Results
Not Supported Sig. : p<0.05 : 0.069
β = .229
Table 5.2: Result of Hypothesis 2
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Ng Wai Teng (2021)
According to table 5.2, H2 is rejected since the price result demonstrates that there is no substantial association
between Tekpol Electric & Supply Sdn Bhd's consumer purchasing intents. The finding ( β= 0.229, sig = 0.069)
indicates that the pricing of Tekpol Electric & Supply Sdn Bhd has no significant correlation with customer purchase
intentions despite the findings of Chang (2011) which state that price and brand are also related to purchase intention
which might not be applicable for electrical stores. Finally, pricing does not indicate consumer purchase intentions
toward Tekpol Electric & Supply Sdn Bhd. As a result, H2 is not supported.
5.2.3 H3 = There is a positive relationship between trend and consumer purchasing intention of electrical stores.
Support to Hypothesis (Supported or Not Supported) Results
Not Supported Sig. : p<0.05 : 0.148
β = .139
Table 5.3: Result of Hypothesis 3
Multiple regression results demonstrate that hypothesis 3 is similarly rejected, indicating that there is no need for
a link between trend and customer purchase intentions of electrical stores. Variety seeking has been rejected based
on multiple regression results, and the p-value is 0.148 and β = .139 , which is more than the significant level p0.05.
As a result, there is no association between the trend and Tekpol Electric & Supply Sdn Bhd's customer purchase
intentions, H3 is rejected.
5.3 Limitations and Recommendations of the research
Despite the benefits to practitioners and academics, this research has significant inviting limits. For starters, there
are technique limitations in the survey conducted in this research. The sole instrument utilised in this study as a data
gathering technique was an online survey through Google Form. The judgmental sampling approach was used in this
investigation, and the sample size was tiny. Although the sample size (n=120) meets the needed minimum sample
size (n=120) according to the formula presented by Tabachnick and Fidell (2013), it does not represent the whole
population, resulting in a lack of generalizability of its conclusions. Furthermore, the 120 replies from the study are
considered a tiny sample size, and they cannot speak for the whole population in the gaming community. As a result,
it is suggested that future research employ bigger samples and probability sampling methodologies.
Besides that, the current study is limited to just three independent factors for impacting dependent variables.
Consumer purchase intentions are influenced by brand, price, and trends. As a result, additional study on other
independent variables would be beneficial in providing a better knowledge of the factors influencing customers'
purchase intentions of electrical businesses.
5.4 Conclusion
Finally, all of the objectives of this research have been met. However, none of the recommended independent
variables were significant with the dependent variable. Based on the data, it is also possible to conclude that there
were variations in before and post intervention customer purchase intentions in this study. Because all of the
objectives were met, the discussions and findings of this study might be utilised as further guidelines for the aim of
the research study.
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PURCHASE INTENTION OF SEWING GARMENT INDUSTRY: ALQHADRI
EXCLUSIVE
NOR KHAIRENA BINTI KHALID, DR ZURAIDAH BINTI SULAIMAN
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
[email protected], [email protected]
Abstract
AlQhadri Exclusive ialah struktur perniagaan jahitan dan couture perkahwinan yang beroperasi di Bandar Baru Sungai Udang,
Melaka. Syarikat ini ditubuhkan pada 15 Mac 2015 yang menyediakan perkhidmatan jahitan dan wedding planner. Sebelum syarikat
memasuki butik, syarikat ini dijalankan secara dalam talian sepenuhnya dari tahun 2010 hingga 2015. Syarikat ini dikenali sebagai Mashitah
Hijabs pada tahun 2010 dan pada tahun 2015 syarikat telah ditukar kepada AlQhadhri Exclusive. Kini, perniagaan menjual pakaian siap
pakai semakin popular. Pakaian yang dijual juga jauh lebih murah daripada upah menempah sepasang baju. Ini kerana perniagaan yang
menyediakan pakaian sedia untuk dipakai akan menempah secara pukal di kilang pakaian. Oleh itu, tempahan secara pukal di kilang
tidak akan mengeluarkan kos yang tinggi. Perniagaan yang menyediakan perkhidmatan pakaian tersuai akan mengalami kerugian. Oleh itu,
perniagaan yang menyediakan perkhidmatan jahitan perlu mengatasi niat membeli pelanggan. Kesedaran jenama, persepsi harga,
pengiklanan dan imej kedai ialah struktur asas. Tinjauan dalam talian digunakan untuk mengumpul data, dan 123 respons penyelidikan
statistik berkaitan telah diterima. Pakej Statistik untuk Sains Sosial digunakan untuk menguji semua peraturan hipotesis (SPSS). Peramal
yang paling penting bagi niat membeli, menurut kajian ini, adalah tabiat. Bertentangan dengan kepercayaan popular, ciri seperti harga yang
dirasakan dan imej kedai mempunyai sedikit kesan ke atas niat membeli. Kajian ini memberikan maklumat berguna tentang niat membeli
industri pakaian jahitan. Penyelidikan masa depan boleh memberi tumpuan kepada kesan beberapa elemen penting.
Kata kunci: Industri Pakaian Jahit, Niat Pembelian, Custom-made, Ready-made
AlQhadri Exclusive is a business structure of tailoring and wedding couture that operates in Bandar Baru Sungai Udang, Melaka. This
company was established on 15 March 2015 that provides services on tailoring and wedding planner. Before the company entered the
boutique, the company was run fully online from 2010 until 2015. The company was known as Mashitah Hijabs in 2010 and in 2015 the
company was changed to AlQhadhri Exclusive. Nowadays, businesses selling ready-to-wear clothes are becoming more and more popular.
The clothes sold are also much cheaper than the wages to order a pair of shirts. This is because businesses that provide ready-to-wear
garments will order in bulk at garment factories. Therefore, ordering in bulk at the factory will not incur high costs. Businesses that
provide custom-made clothing services will have a loss. Therefore, businesses that provide tailoring services will have to overcome the
customers’ purchase intention. Brand awareness, perceived pricing, advertisement, and shop image are the basic structures. An online survey
was used to collect data, and 123 pertinent statistical research responses were received. The Statistical Package for the Social Sciences was
used to test all of the hypothesised associations (SPSS). The most important predictor of purchase intention, according to this study, is habit.
Contrary to popular belief, characteristics such as perceived pricing and store image had little effect on purchase intent. This study provides
useful information about the sewing garment industry's purchase intentions. Future research could focus on the impact of a number of
important elements.
Keywords: Sewing Garment Industry, Purchase Intention, Custom-made, Ready-made
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