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APPENDIX
Variables measuring items N (Valid) Reliability Score (Cronbach’s Alpha)
Usability 150 0.861
1. The website quality adequately meets my information needs.
2. The information on the website is effective.
3. I can interact with the website to obtain information that is tailored to
my needs.
4. I feel safe in transactions on the website.
5. I trust the website with my personal information.
6. The website loads quickly.
Ease of Use 150 0.871
1. The website pages are easy to read.
2. The website texts are easy to read.
3. The website labels and pictures are easy to understand.
4. The website is easy to operate.
5. I can easily become skilled in using the website.
Entertainment 150 0.895
1. The website is visually pleasing.
2. The website is visually appealing.
3. The website design is fashionable.
4. The website design is innovative.
5. I feel happy when I use the website.
Complementarity 150 0.837
1. The website fits with my image of the company.
2. The image of the website matches that of company.
3. The website allows online transactions.
4. I can finish my business with the company easier over the website than
over the phone or email.
5. Using the website is easier than calling a representative on the phone.
E-Trust 150 0.903
1. The website can handle sales transactions over the internet.
2. The website fulfils its promise.
3. The website provides reliable information.
4. The website design considers the needs of consumers.
5. The website recommendations are made of mutual interests.
Online Booking Intention 150 0.898
1. I am willing to book home maintenance / repair services using the
website.
2. I plan to book home maintenance / repair services using the website.
3. I may book home maintenance / repair services using the website in the
next 12 months.
4. I prefer to use the website when making bookings for home
maintenance / repair services.
Table 3 shows the reliability scores for dependant and independent variables.
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Figure 3 shows the homepage of home maintenance website Figure 4 shows the slideshows of offered servives and customer
[naseszservices.com] feedbacks of Nasesz Enterprise
Figure 5 shows the user-friendly interface of online booking Figure 6 shows the blogs posted in the website to provide
system for home maintenance services by Nasesz Enterprise customers useful information
Figure 7 shows the Facebook post that share online Figure 8 shows the Facebook post that obtain feedbacks
booking of Nasesz Enterprise and tutorial to use the from customers of Nasesz Enterprise
online booking.
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Figure 9 shows the Gold Award Figure 10 shows the Silver Award Certificate Figure 11 shows the certificate of
Certificate received for this study in received for this study in Business, Law, participation in Undergraduate Research
Research & Innovation Poster Management and International Conference Conference 2021
Competition (RIPC) Series 2/2021. on Advanced Marketing (BLM2-ICAM4)
nd
Figure 11 shows the 2 Runner Up place received for this study Figure 12 shows the certificate of Finalist received for
for 3 Minutes Final Year Project Competition under this study in Undergraduate Pitch For Funding
Undergraduate Research Conference 2021 (UGPFF) 2021
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FINAL YEAR
PROJECT AHIBS JANUARY 2021
UTM SKUDAI
A CASE STUDY OF ZOO NEGARA’S WEBSITE AND CHESTER
ZOO’S WEBSITE
SYAFIQAH AQILAH BINTI SHAZMY, NOR ZAFIR BINTI MD SALLEH
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected], [email protected]
Abstract (Not more than 200 Words)
Tourism has become a major economic activity in the world. Now, a website is playing a crucial role in an organization, particularly tourism
businesses. The usage of electronic devices and the internet has increased among children. Furthermore, their preferences are relevant in
the choice of tourism destination. Zoo Negara is an attraction in Malaysia. The Zoo Negara organization is currently enduring a significant
website gap. Hence, this paper will identify the deficient website features of the National Zoo compared to the Chester Zoo website among
young visitors in order for the National Zoo can take action and improve their website in the future as well as determine the young visitors’
experience while browsing the website. An observation checklist was used for data collection as a comparison with Chester Zoo due to its
efficient website design, and 15 checklists were collected among young visitors from 8 to 12 years old. The finding shows that Zoo Negara
has a flaw in terms of website design, information quality, and interactivity. The study discussed that young visitors do not have a great
experience while browsing the website. This research may help Zoo Negara to improve its website in the future time.
Keywords: Website features, user experience, tourism website, young children
■ 1.0 INTRODUCTION
Tourism has become a major economic activity in most regions of the world, in Malaysia, the number of tourist arrivals to Malaysia by 2020
was declined by up to 83.4 percent, or 4.33 million, compared with the previous year, which was 26.10 million (Tourism Malaysia, 2019).
The study by Strategic Planning Division, Tourism Malaysia found that 71.3 percent of respondents preferred to travel domestically rather
than abroad in a survey titled Domestic Travel in Malaysia after Movement Control Order (MCO) prepared by Tourism Malaysia and 50.9
percent believe traveling within Malaysia is safe after MCO (Tourism Malaysia, 2020). This indicates the domestic sector is expected to
grow in the post covid era.
According to Fernández-Cavia et al. 2014, the internet has increased economically, mostly in tourism industries around the world in
obtaining, interacting, and influencing the audience to purchase and use the online platform. Websites are now the most significant public
communication portal for the majority of businesses (Garett et al., 2019). With a current rising global estimate of 7.8 billion, roughly 4.93
billion people have internet access. In other words, the internet is used by 63.2 percent of the world's population (Broadbandsearch, 2021).
Correspondingly, according to the Department of Statistics Malaysia Official Portal, 2021, 89.6 percent of Malaysians use information and
communication technology (ICT) services and equipment. Gathering information regarding products or services is among the most common
online activities, which is equivalent to 85.4%, as stated in (Department of Statistics Malaysia Official Portal, 2021).
According to Morris (2016), in 2015, 66% of children aged 3 to 14 used the internet and among children, aged 8 to 11, 41.5% of the children
were found to use the internet as mentioned by eMarketer in 2014. Being born in the digital era, the current generation of youths residing in
urban areas in Malaysia is reportedly exposed to the internet since the age of 5 years old (Nik et al., 2021). Internet Survey User, 2020
mentioned that the worldwide lockdown due to the pandemic had caused the number of time children spent online to skyrocket. 48.0% of
children in the USA were spending more than six hours per day online, an increase of 500% from before the crisis (Parentstogether
Foundation, 2020). The same thing occurs in Malaysia. Dr. Norazah, an expert stated that children spent most of their days with electronic
devices, and rarely have outdoor activities which have been aggravated by the MCO (Mazlan, 2020). IUS 2020 also stated that children from
5 to 17 years old who use the internet have grown by 155% since 2016 (MCMC, 2020).
■ 1.1 CASE DESCRIPTION AND BACKGROUND OF THE PROBLEM
Malaysia was the tenth most famous vacation spot in 2012, with 25 million tourist arrivals (United Nations World Tourism Organization,
2013). Kuala Lumpur (KL) is a major tourist attraction in Malaysia. It is the principal entry point for both domestic and abroad travelers
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(Musa et al., 2015). KL also has semi-natural tourist sites. Zoo Negara, Malaysia's National Zoo, was described by Musa et al., (2015) as one
attraction that both visitors and residents have loved for several decades. Zoo Negara is one of Malaysia's leading wildlife tourist spots. It is
Malaysia's central zoological park, placed on 110 acres of land in Ulu Kelang. It all started on November 14th, 1963. The place is only 5
kilometers away from the heart of Malaysia, Kuala Lumpur. Mr. V.M Hutson, the first Chairman of the Malaysian Zoological Society (MZS),
founded Zoo Negara. Zoo Negara is Malaysia's central attraction zoo, operated by a non-governmental agency, MZS (Zoo Negara, 2019). It
has all over 5137 animals from various species of mammals, birds, reptiles, amphibians, and fish (Zoo Negara, 2019).
As explained by Botha et al. (2021) in their survey at the National Zoological Gardens in South Africa, vital information must be periodically
updated on the website. The firm's website introduces the species details and information for each living animal, and aligned websites give
better precise biological information for each creature (Fukano et al., 2020). The website needs to be updated with storylines about zoo
animals' lives and recommendations for a variety of valuable and feasible decisions that users can offer to improve wildlife preservation
(Ballantyne et al., 2018; Ballantyne et al., 2021). Regrettably, Zoo Negara does not have such detail about the animals' lives on the website
(Zoo Negara, 2019). However, Zoo Negara has limited exposure on the website. The website needs to be adapted for them and content needs
to be easily available. It is important to explore how well the website is since it also should be accessible and easily understood by the target
group.
In this era of the covid-19 pandemic, previous research has highlighted many problems that have arisen at Malaysia's National Zoo including
the website. After a quick observation of social media comments of Zoo Negara, many comments are on the website itself. According to
social media reading, the majority of prospective customers are unimpressed with the website's features. PokNikMe (2019), claiming to be
the Marketing Web Developer, stated a “slew of problems with the National Zoo's website, including pop-up messages on all page’s users
click, 404 errors, a lack of quality information, and much more”. Phoebe Shafinaz (2019) agreed with him, stating that Zoo Negara has a
horrendous website.
1.2 RESEARCH QUESTIONS
The core purpose of this paper is to study the address research questions:
i. What are the features of the website that are lacking on the National Zoo website as compared to the Chester Zoo website among
young visitors?
ii. What does the young visitor experience while browsing the website?
1.3 RESEARCH OBJECTIVES
This study listed two main objectives:
i. To identify the deficient website features of the National Zoo compared to the Chester Zoo website among young visitors for the
National Zoo can take action and improve their website in the future.
ii. To determine the young visitors’ experience while browsing the website.
■ 2.0 LITERATURE REVIEW
2.1 WEBSITE FEATURES
Website features is an additional advantage for customer to be more accessible with the website, and more user-friendly (Ubaidur, 2015).
According to Anubha et al. (2020), an organization can use a variety of unique features in a website to attract customers’ attention and
engagement. As mentioned by Soegaard (2019), if the website has been designed in such a way that helps the customers’ ease of use, the
website has the capability for engagement. Bilgihan & Bujisic (2015) describe that consumer purchasing decisions are usually based on the
website features elements, including quality information, website interactivity, and design. According to Floh & Madlberger (2013), quality
web features and convenient navigation foster shopping pleasure.
If a company uses strategies such as animated or cartoon characters, or events (eg. Upin Ipin) it will indirectly attract the children to stay on
the website longer (Gómez et al., 2021). According to Lööf et al. (2019), websites should have features that allow children to easily
understand the content.
Table 2.1 Features of the websites
Author/Study Website design Information Quality Interactivity
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Moch. Sukardjo & Lipur /
Sugiyanta (2018)
Alhumaidan, R. (2004) / / /
Lööf, G., Andersson- /
Papadogiannakis, N., &
Silén, C. (2019)
Marthasari, G. I., & / / /
Hayatin, N. (2021)
Dattolo, A., Luccio, F., De / /
March, C., & De Riu, E.
(2018)
2.1.1 ELEMENT OF WEBSITE FEATURES
2.1.1.1 WEBSITE DESIGN
Website design is the key aspect of foreseeing efficiency for consumers who regularly purchase on a specific website
(Wolfinbarger & Gilly, 2003). Venkatesh & Agarwal (2006) mentioned that effective website design engages and attracts online
customers. Whereas, a study by Bressolles (2006), in the quality of tourism websites, emphasizes that having features such as visuals,
colors, signs, animatronics, videotapes are referred to as website design. Lee & Kozar (2009), on the other hand, explored how simplicity
and beautifulness in website design can lead to engagement, faster system response, lower errors, and less disorientation. According to
(Cyr et al., 2010), the color of the website has been shown to be a significant predictor of website trust and satisfaction. As mentioned
by Flatla et al. (2013), color schemes used on websites have an impact on aesthetic appeal, first perceptions, and long-term engagement
with websites.
According to Alhumaidan (2004), the website should be designed for no scrolling. Alhumaidan (2004), discovered that the majority
of children did not scroll at all, even when the content was clearly missing. Hence, the company must select the appropriate screen size
when designing web pages (Alhumaidan, 2004) to make it easy for children. Previous research also has found that the quality of the
information and the service provided by the organization through its website is the key aspects factors of website design (Hsu et al.,
2012). Consequently, website design that fulfills the customer's expectations will be able to increase the satisfaction of customers.
2.1.1.2 INFORMATION QUALITY
In a previous study, information quality is well-defined as the validity, precision, timeliness, effectiveness, and comprehension of
the data provided on the website (Huang & Benboucef, 2013; Molinillo et al., 2020). In this regard, Molinillo et al. (2020), discovered
that information quality is an essential factor for a website's success. Users think that the information on the internet is significant, precise,
and helpful to their necessities. Information quality can also be defined as a customer's perception of the quality of information about a
product or service displayed on an organization's website site (Bressolles, 2006; Le et al., 2020). Ou & Sia (2010), found that information
quality refers to customers' perceptions of knowledge about products or services obtainable on a firm's website, and this understanding
is formed only when consumers seek the information to be precise, useful, and updated regularly. Kim et al. (2009) also mentioned that
providing useful and precise website information improves the chances of attracting and retaining customers. According to Garett et al.
(2019), the quality of information given by a website, including current and accurate information, is significantly related to customers'
behavioral intentions, such as the intent to use. As mentioned in Shim et al. (2018) findings, information quality has a significant
relationship with customer satisfaction. It is considered a key factor in consumer evaluations of a website (Katerattanakul & Siau, 1999;
Ou & Sia, 2010), especially for children as it is vital for them to get a piece of accurate information.
2.1.1.3 WEBSITE INTERACTIVITY
Ever since its beginnings, cyberspace has emerged as a powerful entertainment platform, allowing businesses to interact with
customers on a one-to-one basis (Islam et al., 2020). According to Fernández-Cavia et al. (2014), interactivity is one of the most crucial
aspects of a website. In respect, Fan et al. (2013) explained that interactivity on websites can help facilitate and control active two-way
interactions. Besides this, Shim et al. (2018) classify interactivity as the degree to which customers can substantially modify the style
and content of the media context. According to prior findings, companies who provide quality web interactivity to their visitors earn
greater concentrations of website customer engagement (Mann & Shani, 2011; Islam et al., 2020). Pertinently in the tourism industry, a
large percentage of them already have developed online sites to boost virtual interactivity with their clients, for instance, virtual,
augmented reality uses for hotel rooms to enhance knowledge and create good relationships with customers.
As mentioned by (Alhumaidan, 2004) children are easily attracted to visual illustrations and enjoy interacting with media. In a study
of children's use and experience by Lööf et al. (2019), one of the children interviewed stated that he was stunned by color, sound, and
movement within a website. Dattolo et al. (2018) stated that websites should provide enjoyment such as interactive materials to keep the
child cheerful. As stated in Kim & Niehm (2009) findings of their study demonstrated that interactivity, one of five website quality
dimensions, was positively related to consumers' perceived information quality. In another, interactivity has a positive influence on user
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beta behaviors (Naqvi et al., 2020). This was supported by Peker et al. (2016), which agree when websites provide interactive features,
the user experience is significantly improved. In this regard, website interactivity is an essential feature to be discussed in the National
Zoo website, particularly for children who are the target market for the organization.
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2.2 WEBSITE USER EXPERIENCE
Recently, academics and industry practitioners in various fields have paid close attention to user experience research. User experience is
a new term in the field of human-machine interaction. It is now one of the important research topics because the user experience is a key
factor that gives users a satisfying and pleasant experience when interacting with a product, system, or interface (Zahidi, 2016). Since the
internet has become a norm, user experience channels have shifted from face-to-face to the virtual world via websites, social media, and
augmented reality. Alshaheen, (2019) described user experience as “how a person feels when interfacing with a system”. While Pant (2015)
defined user experience as the overall satisfaction a user gets from interacting with a product or digital tool. Vila et al. (2021), on the other
hand, discussed that the content of a website, as well as its design and appearance, can improve the user's browsing experience. To put it
more simply, usability, usefulness, as well as the appealing of the products or services are the major factors that influence the quality of user
experience.
As for the children’s experience, they are now regarded as the primary users of the software. Hence, the use of tech is no longer restricted to
adults (Alrashed & Alhussayen, 2015). The website developers try to construct software that caters to children’s abilities, preferences, and
development needs (Kaur et al., 2021). According to (Alrashed & Alhussayen, 2015), it is critical to measure children's experience of
enjoyment with websites because it has a significant outcome on children's view of the website. For this reason, a website with a good user
experience will have benefits and a strong business value. To the researcher’s knowledge, no studies have been conducted in Malaysia to
investigate the user experience of tourism websites for children. To fill this research gap, we present preliminary findings from a study on
Zoo Negara's website users' experiences.
2.3 CONCEPTUAL MODEL
User Experience
Website Features
■ 3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
Qualitative research also involved a few methods and studies based on the interpretative and naturalistic to get the full picture regarding
a phenomenon or the problem at hand (Othman, 2007). Cohen, Manion, and Morrison (2011) states that the advantages of qualitative research
are from the accuracy of the information collected because the findings need to be triangulated. Based on the objectives of the study as
discussed in the first chapter, the main question of the study requires the researcher to identify the deficient website features of the National
Zoo compared to the Chester Zoo website among young visitors in order for the National Zoo can take action and improve their website in
the future and to determine the experience of young visitors while browsing the website.
The researcher created the observation checklist that was used to carry out this research. It was made up of items that the researcher
thought represented some of the needs on the website from the perspective of children. The goal was to provide a vehicle for the researcher
to record all observations made on each child during the study. It was designed solely for the researcher's comfort and convenience, not
essentially for the use of other observers.
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3.2 POPULATION AND SAMPLING
According to Kenton (2021), a sample is a random selection of observations from a population. Probability sampling and non-probability
sampling are the two types of sampling. However, non-probability sampling is usually carried out by observation, and researchers use it
widely for qualitative research. This method allows the researcher to gain better insight from the right respondents.
This study sample consisted of a total of 15 children. These children range in age from 7 to 12 years because as mentioned by Amirul
Asyraf, the person in charge of the Education Department of Zoo Negara the most visitors coming from children. To protect the children’s
anonymity, all information about them is kept hidden, including their names. This is also due to the request from the parents of the children
themselves.
3.2 RESEARCH INSTRUMENTS
The data was collected using the observation method. This study adopted the research method by Lanik (2000) on the prediction of child
maltreatment using the checklist. The checklists used in his research were made up of 45 “yes” and “no” that is divided into six categories.
On the other hand, the instrument for this study is composed of 15 "yes" or "no" items divided into four categories. To make the process as
simple as possible, all methods for this observation checklist will be performed on an iPad. To begin the observation checklist, children were
approached and asked to browse the Zoo Negara website. They will then fill out the Google Forms form (see Appendix A). After completing
the first observation checklist in Google Form, they must proceed to the Chester Zoo's website for the next step. Finally, they will complete
the observation checklist in the Google Form as given before, with the only difference being that at the end of the question, they will be asked
is "I choose the Chester Zoo’s website than the Zoo Negara’s website”. To provide guidance, respondents completed a checklist of
observations in a quiet area with their caregivers.
The observation checklist is divided into two sections:
• Section A: Website Features
• Section B: Website User Experience
Table 2 shows the items on the Observation Checklist that were investigated. Appendix A contains an examination of the observation
checklist format used in this research.
Table 3.2 Items on the Observation Checklist.
1. Website features
a. Website design i. the website is a nice and beautiful design.
ii. The website has pictures, maps, and videos about the
zoo.
iii. The color used in the website is nice to look at.
iv. Fonts are okay for the website.
v. The page of the website is clear and simple.
b. Website Information Quality i. The website information is easy to get.
ii. The information on the website is up to date.
iii. The information about the animals is available on
the website.
c. Website Interactivity i. The website has videos of animals.
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ii. I can ask questions on the website.
iii. I would like to visit the website again.
2. Website user experience i. There is a lot of information available on zoo’s
website.
ii. The website is loading quickly.
iii. I have a good experience at the website.
Given only in the Chester Zoo’s observation checklist i. I choose Chester Zoo’s website over Zoo Negara’s
website.
3.2 DATA ANALYSIS
To analyze the collected data, descriptive analysis was used to identify the preferred website features and the children’s experience on
the website with the application of three attributes; information quality, design, and interactivity including website user experience. This
study adopted the Anyaoku & Akpojotor (2020) data analysis method in their research titled "Usability Evaluation of University Library
Websites in South-South Nigeria." to analyze the data collected.
Chester Zoo was chosen as a benchmark for Zoo Negara because it has one of the best website zoo designs (Silkalns, 2021). As mentioned
by Silkalns (2021), Chester Zoo has one of the most impressive zoo websites. According to Johnston (2021), Forbes magazine described
Chester Zoo as one of the top 15 zoos in the world. In 2015, several awards recognized Chester Zoo's reputation as a successful and well-
managed tourist attraction and conservation organization. As stated in Zoo (2015), Chester was named the best zoo in the United Kingdom
by Trip Advisor's Travelers’ Choice Attractions award. In this study, a comparison was made between Chester Zoo and Zoo Negara to
identify the features of the website to be accessible and easily understood by the young visitors, to examine the preference for Zoo Negara
and Chester Zoo websites, and lastly, to determine the young visitor’s experience while browsing the website. As a result, Chester Zoo serves
as an excellent model for Zoo Negara to follow to improve its business functions. Table 4 lists the names of the Zoos investigated in the
study, along with their abbreviation and website address.
Table 3.4 Lists of the Names of the Zoos Investigated in This Study
Name of the Zoo Abbreviation Website
Zoo Negara Malaysia ZNEG https://www.zoonegaramalaysia.my/
Chester Zoo ZCHE https://www.chesterzoo.org/
Source: Author’s compilation for this study
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■ 4.0 FINDING
4.1 Gender of the respondents
The findings of the gender of the respondents are presented in Table 4.1 and Figure 4.1. Males made up 40% of the respondents, while
females made up 60%.
Table 4.1: Gender of respondents
Gender of respondents Percent (n=15)
Male 40%
Female 60%
Source: Author’s compilation for this study
4.2 Age of respondents
Respondents were asked their age to ensure they were eligible to fulfill the observation checklist. The respondents’ age was determined as
shown in Table 4.2 and Figure 4.2 According to the findings of the study, the majority (40 percent) of the respondents were 12 years old.
The distribution also reveals that the second most participative respondents (26%) were 10 years old. 20% of participants claimed to be 11
years old. In the survey, 8- and 9-year-olds were presented with 6.6% for both. As a whole, the findings indicated that the majority of
informants were 12 years old.
Table 4.2: Age of respondents
Age Percent (n=15)
12 40%
10 26%
11 20%
8 7%
9 7%
4.3 Location of respondents
The study also encompasses the respondents' location. According to Table 4.3 and Figure 4.3, 40% of respondents were welcomed from
Kuala Lumpur, while 33% came from Johor. Selangor accounted for 13% of the total number of respondents. Pahang and Negeri Sembilan
both had 6.6 percent of respondents. The fact that the majority of respondents were from Kuala Lumpur is not surprising given that the
observation checklist was carried out at Zoo Negara, which is located in the heart of Malaysia.
Table 4.3: Location of respondents
Location Percent (n=15)
Kuala Lumpur 40%
Johor 33%
Selangor 13%
Pahang 7%
Negeri Sembilan 7%
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4.1 Observation Checklist Result
The number in each column of the abbreviation represents the number of young visitors who said yes, with a total of 15 respondents for each
website. Tables 5, 6, 7, and 8 display the results of the observation checklist completed for Zoo Negara (ZNEG) and Chester Zoo (ZCHE).
4.1.1 Website Features of Zoo Negara and Chester Zoo Website
This section assessed how well the website features were perceived by the young visitors in terms of each of the website features attributes
listed including design, information quality, and also interactivity. It gathered a variety of findings from 15 respondents on a variety of
website designs for both websites. The young visitors were asked 11 website features-related questions. For analysis and better understanding,
the results in Table 4.4 to Table 4.7 are color-coded in three major colors: red (lower result), green (higher result), and yellow (link result).
Table 4.4: Website Design Evaluation of Zoo Negara and Chester Zoo Websites.
Item Criteria/Survey ZNEG Percent (n=15) ZCHE Percent (n=15)
Website Design
WD1 The website is a nice and beautiful 7 46.7% 14 93.3%
design.
WD2 The website has pictures, maps, and 11 73.3% 11 73.3%
videos about the zoo.
WD3 The color used on the website is 7 46.7% 13 86.7%
nice to look at.
WD4 Fonts are okay for the website. 10 66.7% 13 86.7%
WD4 The page of the website is clear and 10 66.7% 13 86.7%
simple.
Table 4.4 indicates young visitors’ point of view on website design:
• WD1: ZCHE receives a higher percentage (93.3) on the beautiful design of the website, with 14 out of 15 respondents describing
the ZCHE website as a nice and beautiful design. ZNEG, on the other hand, receives (46.7%) less than half of the "yes" votes on
the statement that the website has a nice and beautiful design. This percentage demonstrates that young visitors prefer the design
of ZCHE over ZNEG.
• WD2: Both websites receive the same number of votes (73.3%) for the pictures, maps, and videos about each zoo, indicating that
both websites provide such information.
• WD3: The color used in ZCHE is preferred by the majority of young visitors, with 86.7 percent preferring it over ZNEG (46.7
percent). This percentage demonstrates that young visitors prefer the color used on ZCHE over ZNEG.
• WD4: The young visitors do not have much problem with the website in terms of the font used, because ZCHE websites receive
86.7% of the font used, while ZNEG receives 66.7%. This indicates that neither website has a significant problem with the font
used. Both websites' fonts are suitable for young visitors.
• WD5: The young visitors do not have much problem on the website in terms of the page of the layout because ZCHE websites
receive 86.7% of the type of page used, while ZNEG receives 66.7%. This indicates that neither website has a significant problem
with the layout used. The layout used by both websites is acceptable to young visitors.
This result indicates that ZNEG's website's design and color scheme need to be updated. Because ZCHE receives a higher percentage on
both items, it demonstrates that young visitors enjoy the website's design and color scheme. However, nothing needs to be changed in terms
of information such as videos, photos, and maps, as these are available on both websites. The same goes for the font and layout used because
both of the websites receive more than 50% of the respondent who stated “yes” to the statement.
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Table 4.5 Website Information Quality Evaluation of Zoo Negara and Chester Zoo Websites.
Item Criteria/Survey ZNEG Percent (n=15) ZCHE Percent
(n=15)
Website Information Quality
WIQ1 Website information is easy to get. 10 66.7% 12 80%
WIQ2 The information on the website is 6 40% 15 100%
up to date.
WIQ3 The information about the animals 6 40% 14 93.3%
is available on the website.
Source: Author’s compilation for this study
Table 4.5 indicates young visitors’ point of view on the website information quality:
• WIQ1: Young visitors have little difficulty finding information on the website because ZCHE receives 80 percent, while ZNEG
receives 66.7 percent. This suggests that neither website has a significant problem obtaining information. Both websites make it
easy for young visitors to find information.
• WIQ2: It is clearly demonstrating that the ZNEG website lacked up-to-date information as young visitors voted 9 “no”, indicating
that more than half of the respondents (60%) agreed with the statement. While the ZCHE website has received the majority of
votes (100%) for the most recent update. This demonstrates that ZNEG did not update the website on a regular basis, whereas
ZCHE is always up to date with the most recent information.
• WIQ3: It is clearly demonstrating that the ZNEG website lacked animals’ information as young visitors voted 9 “no”, indicating
that more than half of the respondents (60%) agreed with the statement. While the ZCHE website received nearly the majority of
votes (93.3 percent) for having animal details. This indicates that ZNEG does not have much information about animals on the
website, whereas ZCHE has information about all of its animals.
This finding suggests that the ZNEG website needs to add more animal information and the most recent information, such as annual reports.
ZCHE, on the other hand, includes a lot of animal information on its websites, such as age, name, and habitat, and also up-to-date information
such as the 2021 annual report. Though, nothing needs to be changed in terms of obtaining the information because it is readily available,
and more than half of those polled agreed with the statement.
Table 4.6 Website Interactivity Evaluation of Zoo Negara and Chester Zoo Websites.
Item Criteria/Survey ZNEG Percent ZCHE Percent
(n=15) (n=15)
Website Interactivity
WIV1 The website has videos of animals. 10 66.7% 5 33.3%
WIV2 I can ask questions on the website. 2 13.3% 12 80%
WIV3 I would like to visit the website again. 5 33.3% 13 86.7%
Source: Author’s compilation for this study
Table 4.6 indicates young visitors’ point of view on the website interactivity:
• WIV1: The ZNEG website receives 66.7% yes for the website attributes that include animal videos which are higher than the ZCHE
website that only receive 5 “yes” (53.3%). This proves that ZNEG has animal videos that are visible to young visitors while
browsing the website, whereas ZCHE does not.
• WIV2: The percentage of ZNEG to ask questions on the website is only 13.3%, but ZCHE is higher at 80%. This demonstrates
that, unlike ZCHE, the ZNEG website did not include a form for visitors to ask questions or the features of Frequently Asked
Questions.
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• WIV3: The percentage of young visitors to the ZNEG website is low, with only 5 stating yes, whereas ZCHE received 13
respondents who stated yes. This percentage indicates that the likelihood of a young visitor visiting the ZNEG is low.
According to these findings, the ZNEG website lacks an inquiry form and a Frequently Asked Question (FAQ), whereas the ZCHE has both.
In total, less than half of the respondents would like to revisit the ZNEG website, whereas 13 respondents would like to revisit the ZCHE
website in the future. However, nothing needs to be modified in terms of interactivity elements such as animal videos, as ZNEG already
presents them.
4.4 Website Experience of Zoo Negara and Chester Zoo Website
This section assessed the website experience was perceived by the young visitors. The young visitors were asked four website experience-
related questions. This last question (WEX4) has only been asked on the ZCHE observation checklist after young visitors have completed
the task given.
Table 4.7. Website Experience of Zoo Negara and Chester Zoo Websites.
Item Criteria/Survey ZNEG Percent ZCHE Percent
(n=15) (n=15)
Website Experience
WEX1 There is a lot of information available on 5 33.3% 13 86.7%
the zoo website.
WEX2 The website is loading quickly. 10 66.7% 13 86.7%
WEX3 I have good experience with the website. 6 40% 14 93.3%
WEX4 I choose the Chester Zoo website over the N/A N/A 12 80%
National Zoo website.
Source: Author’s compilation for this study
• WEX1: There seems to be little information available on the ZNEG website as the percentage is only 33.3%, while 86.7 percent
say the ZCHE website has a plethora of information. This clearly shows that the ZNEG website lacks information about the
organization compared to the ZCHE website.
• WEX2: The young visitors do not have much problem on the website in terms of the waiting game, because ZCHE websites receive
86.7% of loading quickly, while ZNEG receives 66.7%. This indicates that neither website has a significant problem with page
loading. Both websites are very fast to load.
• WEX3: 14 young visitors had a great experience while browsing the ZCHE website, totaling 93.3 percent, which is nearly the
majority of them. While ZNEG received a lower percentage of 40%, a total of 6 respondents had a great experience while browsing
the website. This demonstrates that young visitors are not as engaged with the ZNEG website as they were with the ZCHE website.
• WEX4: According to the findings of this statement, 12 of the young visitors, totaling 80 percent, would prefer the ZCHE website
over the ZNEG website in terms of user experience while browsing the website and website features.
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■ 5.0 DISCUSSION
5.1 THEMATIC MAP
5.2 WEBSITE DESIGN
After analyzing the data, information regarding website design was presented. The check listed from informants was divided into five
questions, which were asked about the beautifulness, the maps, videos and pictures, color, font, and simplicity of the website. The findings
reveal that Zoo Negara is lacking in the beautifulness of the website and the color used.
In this case, the majority of the young visitors were pleased with the Chester Zoo website because it is appealing and beautifully designed.
However, only a small percentage of young visitors were pleased with the Zoo Negara website design. According to Lee & Kozar (2009),
having a beautiful website design can lead to engagement. This was supported by Venkatesh & Agarwal (2006), which agree that effective
yet beautiful website design engages and attracts the online customer. Meanwhile, Bressolles (2006) mentioned that beautiful design such as
visuals colors, and more enhance the quality of a website.
The study also discovered that the colors used on the National Zoo website were not as appealing as the colors used on the Chester Zoo
website, as the National Zoo website received less response in terms of color. Colors used on the Chester Zoo website are preferred by
younger visitors over those used on the National Zoo website. As mentioned by Flatla et al. (2013), color schemes used on websites have an
impact on aesthetic appeal, first perceptions, and long-term engagement with websites. This was supported by Cyr et al. (2010) which agree
that the color of the website has been shown to be a significant of website and satisfaction. In a study of children's use and experience by
Lööf et al. (2019), one of the children interviewed stated that he was stunned by color, sound, and movement within a website.
Aside from the problems mentioned above, Zoo Negara has no significant problems with the website’s layout, font, and vital information
such as maps, videos, and pictures. According to Alhumaidan (2004), the website should be designed for no scrolling, which demonstrates
that the Zoo Negara website was designed in this sort of way. Alhumaidan (2004), also agrees that the majority of children did not scroll at
all, even when the content was clearly missing. Previous research also has found that the quality of the information and the service provided
by the organization through its website is the key aspects factors of website design (Hsu et al., 2012)
5.3 WEBSITE INFORMATION QUALITY
The checklist from informants was divided into three questions, which were asked about the ease of getting information, the website update,
and the availability of animal information. The results show that the Zoo Negara website is out of date, as is the availability of animal
information.
In this case, the Zoo Negara did not update the information on its website such as the annual reports. Unlike Chester Zoo, the website provides
recent updates such as 2021 annual reports. According to Garett et al. (2019), the quality of information given by a website, including current
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and accurate information, is significantly related to customers' behavioral intentions, such as the intent to use. Kim
and accurate information, is significantly related to customers' behavioral intentions, such as the intent to use. Kim & Niehm (2009) also
agrees that information quality has a significant relationship with customer satisfaction. As a result, the Zoo Negara website could constantly
update the information on the site to satisfy the customer, particularly among young visitors.
Zoo Negara is the home of a variety of animals. It is necessary and desirable to include information about animals on the website, such as
name, age, habitat, and so on. If the information is available online, young visitors will be able to read and learn about animal life. In this
case, Zoo Negara's website does not contain as many details about the animals as Chester Zoo's. Kim & Niehm (2009) mentioned in their
study that providing useful and precise website information improves the chances of attracting and retaining customers. Molinillo et al.
(2020) found that information quality is an essential factor for a website’s success.
5.4 WEBSITE INTERACTIVITY
After collecting the results, information about the website interactivity was discussed. The checklist from informants was divided into three
questions, which were asked about animal videos, places to ask any questions, and young visitors' intentions to visit the website The findings
indicate that the Zoo Negara website lacks a Frequently Asked Questions (FAQ) and inquiry form and that young visitors have no intention
of returning to the website in the future.
In this particular instance, the Zoo Negara website does not include an inquiry form or FAQ, while the Chester Zoo website includes both an
inquiry form and a FAQ. An inquiry form is essential to have on a website because Fan et al. (2013) explained that interactivity on websites
can help facilitate and control active two-way interactions. According to prior findings, companies who provide quality web interactivity to
their visitors earn greater concentrations of website customer engagement (Mann & Shani, 2011; Islam et al., 2020). As stated in Kim & Niehm
(2009) findings of their study demonstrated that interactivity, one of five website quality dimensions, was positively related to consumers'
perceived information quality.
As previously stated, the study's findings proved that young visitors have no intention of returning to the website. That being said that
interactivity has a positive influence on user behaviors (Mollen & Wilson, 2010). This was supported by Musa et al. (2015), which ag when
websites provide interactive features, the user experience is significantly improved. This will imply that the customer intends to revisit the
website in the future.
5.4 WEBSITE EXPERIENCE
Throughout the study, information about the website experience has been discussed. The checklist from informants was divided into four
questions, which were asked about the information availability, loading page, overall experience, and preferred website. The findings indicate
that the Zoo Negara website is deficient in terms of information available as well as the overall experience. In addition, most of the young
visitors would prefer Zoo Negara instead of Chester Zoo.
As a result, young website visitors have a negative experience. They may be experiencing difficulties with the aforementioned website
features. This suggests that young visitors would choose the National Zoo website over the Chester Zoo website due to the website's unique
features. Vila et al. (2021) discussed that the content of a website, as well as its design and appearance, can improve the user's browsing
experience. To put it another way, the major factors that influence the quality of user experience are usability, usefulness, and the appealing
characteristics of the goods or services. Alrashed & Alhussayen (2015), also agree that it is vital to measure children's experience on the
enjoyment with websites because it has a significant outcome on children's view of the website.
5.5 LIMITATION OF THE STUDY
This section discusses the limitations of this study as seen by the researcher while the study was being conducted. Firstly, the focus of the
study was solely on young visitors. Young visitors are relevant to this study because the purpose of choosing them has been stated in Chapter
2. Next, since this study was all about Zoo Negara, the research was restricted to young visitors who visited the Zoo Negara. Moving on to
the next point which researchers lack skills and experience in qualitative research. Many of the techniques and approaches that underlie
qualitative research can be learned. The number of informants for this study is relatively small, only 15 people, but due to the time constraint
and receiving the same input after 15 informants, the study was limited to only 15 informants.
5.6 RESEARCH RECOMMENDATION
This section explains the researcher's recommendations for improving the study to gain a better understanding of the future. The study has
been very important in the context of the website, especially for Zoo Negara, Malaysia's largest zoo. The researcher discovered that the best
way to learn more about the website preferred by young visitors is to explore various websites instead of being constrained to one, as in this
case, the research only concentrated on Chester Zoo. According to Silkalns2 (2021), the San Diego Zoo and the Wellington Zoo are two of
the best website designs; future scholars may want to look into these two zoos. The future researcher who intends to study Zoo Negara's
website can broaden the scope of the research to include a detailed scope of website features. There are other aspects of website features that
were not covered in this study. One of them is the website's functionality. If researchers want to conduct research on this, accurate and
detailed information is capable of helping improve the National Zoo website.
After completing this study, the researcher concluded that the Zoo Negara website's website features should be improved. This will encourage
more young visitors to stay on the website longer and enhance the user experience. In terms of website design, the color scheme should be
changed and improved into a different color. Moving on to the next section, website information quality, the Zoo Negara website needs to
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provide more animal information as well as the latest data, such as annual reports. This will increase customer visits, especially young visitors
to the site to know and understand about the animals at the Zoo Negara. To facilitate two-way interaction with customers, Zoo Negara should
provide an inquiry form and a Frequently Asked Question in the Contact Us column. Having a live customer service agent would also be
beneficial, as visitors would receive prompt responses from Zoo Negara.
■ 6.0 CONCLUSION
The purpose of this study was to examine the deficient website features of the Zoo Negara website among young visitors in order for Zoo
Negara can take action and improve its website in the future. The findings of this study in terms of website design discovered that Zoo Negara
falls short in terms of the website's beauty as well as the color used when compared to the Chester Zoo website. Whereas Zoo Negara website
information quality is showing outdated information, including the lack of availability of animal information. The website interactivity, on
the other hand, Zoo Negara is missing out on two-way communication in terms of asking questions, which leads to the intention for young
visitors to revisit the website.
Another goal of this research was to find out what young visitors thought about the website while they were exploring it. According to the
results of a study, the website does not have a great deal of information. In this case, based on characteristics of the website that young
visitors must browse, they did not get a good experience. Furthermore, almost all of the young visitors would prefer to visit the Chester Zoo
website rather than Zoo Negara. This suggests that the Zoo Negara website is just not user-friendly as well as appealing to young visitors.
These findings may help many stakeholders, particularly web developers, marketers, future researchers, and the Zoo Negara organization, in
helping to improve its website. As a result, improving and upgrading the website features on the Zoo Negara website can enhance the
customer experience and encourage visitors to stay on the website longer. Besides that, the number of people visiting Zoo Negara may
increase in the future.
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APPENDIX A
Criteria/Survey Yes No
Section A: Website Design
i. The website is a nice and beautiful design.
i. The website has pictures, maps, and videos about the zoo.
ii. The color used in the website is nice to look at.
iii. Fonts are okay for the website.
iv. The page of the website is clear and simple.
Section A: Website Information Quality
i. Website information is easy to get.
ii. The information on the website is up to date.
iii. The information about the animals is available on the website.
Section A: Website Interactivity
i. The website has videos of animals.
ii. I can ask questions on the website.
iii. I would like to visit the website again.
Section B: Website Experience
i. There is a lot of information available on the zoo’s website.
ii. The website is loading quickly.
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iii. I have a good experience at the website.
APPENDIX B
Criteria/Survey Yes No
Section A: Website Design
i. The website is a nice and beautiful design.
ii. The website has pictures, maps, and videos about the zoo.
iii. The color used in the website is nice to look at.
iv. Fonts are okay for the website.
v. The page of the website is clear and simple.
Section A: Website Information Quality
i. Website information is easy to get.
ii. The information on the website is up to date.
iii. The information about the animals is available on the website.
Section A: Website Interactivity
i. The website has videos of animals.
ii. I can ask a question on the website.
iii. I would like to visit the website again.
Section B: Website Experience
i. There is a lot of information available on the zoo’s website.
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ii. The website is loading quickly.
iii. I have a good experience at the website.
iv. I choose the Chester Zoo website than the National Zoo website.
s
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FINAL YEAR
PROJECT JAN 2021
AHIBS UTM SKUDAI
FACTORS INFLUENCING THE NEW SERVICE POSITIONING IN TOUR
AND TRAVEL COMPANY
SYAKIRAH BINTI MD YUSOFF, DR ZURAIDAH SULAIMAN
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected], [email protected]
Abstract
Tourism is a recurrent phenomenon in human life. It has been a large industry that has aided in economic and social progress.
Thus, tourism also has expanded at an astonishing rate all throughout the world. Tourism is the largest industry in the world
with over 600 million people visiting each year and the income earning over half a trillion dollars each year. Tour and travel
sector is one of the most significant industries that make sure the stabilization of the economy can be obtained. Tourism sector
was one of industry that produce a decent money until the globe was surprised by the discovery of the unusual virus, COVID-
19. This pandemic really creates a big damage to the world economy and all the activities need to be stopped immediately. It
is affected all the firms over the world and they need to come out with the new marketing idea in order to meet the new norm
nowadays. Furthermore, to introduce new service or product, positioning need to be done to prevent loss during this epidemic
era. Therefore, positioning towards new service in the tour and travel company is important for increasing the interest of the
potential customers to the company. Thus, this study aims to discover whether service innovation, reliability and brand
endorsement influenced new service positioning in tour and tourism company. Data collection on this study was done through
distribution of questionnaire through Google form and multiple regression was used to determine the ability of the construct
on new service positioning in tour and travel company. The quantitative sampling method is being use in this study with a total
of 120 respondents. Service innovation, reliability and brand endorsement were found to influence the new service positioning
in tour and travel company.
Keywords: Tourism industry, Positioning strategy, Brand endorsement, Innovation
Abstrak
Pelancongan merupakan fenomena yang berulang dalam kehidupan manusia. Ia telah menjadi industri besar yang telah
membantu dalam kemajuan ekonomi dan sosial. Oleh itu, pelancongan juga telah berkembang pada kadar yang menakjubkan
di seluruh dunia. Pelancongan adalah industri terbesar di dunia dengan lebih 600 juta orang melawat setiap tahun dan
pendapatan memperoleh lebih setengah trilion dolar setiap tahun. Sektor pelancongan dan pelancongan merupakan salah
satu industri terpenting yang memastikan penstabilan ekonomi dapat diperoleh. Sektor pelancongan adalah salah satu industri
yang menghasilkan wang yang lumayan sehingga dunia dikejutkan dengan penemuan virus luar biasa, COVID-19. Pandemik
ini benar-benar menimbulkan kerosakan besar kepada ekonomi dunia dan semua aktiviti perlu dihentikan segera. Ia memberi
kesan kepada semua firma di seluruh dunia dan mereka perlu mengeluarkan idea pemasaran baharu untuk memenuhi norma
baharu pada masa kini. Tambahan pula, untuk memperkenalkan perkhidmatan atau produk baharu, positioning perlu
dilakukan bagi mengelakkan kerugian semasa era wabak ini. Oleh itu, kedudukan ke arah perkhidmatan baharu dalam
syarikat pelancongan dan pelancongan adalah penting untuk meningkatkan minat bakal pelanggan kepada syarikat. Oleh itu,
kajian ini bertujuan untuk mengetahui sama ada inovasi perkhidmatan, kebolehpercayaan dan pengesahan jenama
mempengaruhi kedudukan perkhidmatan baharu dalam syarikat pelancongan dan pelancongan. Pengumpulan data kajian ini
dilakukan melalui pengedaran soal selidik melalui borang Google dan regresi berganda digunakan untuk menentukan
keupayaan konstruk pada kedudukan perkhidmatan baharu dalam syarikat pelancongan dan pelancongan. Kaedah
persampelan kuantitatif sedang digunakan dalam kajian ini dengan jumlah responden seramai 120 orang. Inovasi
perkhidmatan, kebolehpercayaan dan pengesahan jenama didapati mempengaruhi kedudukan perkhidmatan baharu dalam
syarikat pelancongan dan pelancongan.
Keywords: Industri pelancongan, Strategi penentududukan, Pengendorsan jenama, Inovasi
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■ 1.0 INTRODUCTION
Tourism is the most important industry on the planet. It grows as a result of the downfall of other industries, such as the
manufacturing industry and others, which have been monopolized by the world economic and social system for centuries
(Badaruddin, 2005). A country's economy has benefited from the tourism industry's contribution to economic development.
For example, the mobility of both international and local tourists has resulted in the development of a country's tourism
destination. Despite the fact that Malaysia has many tourism locations that provide high-quality activities, space, and products,
the country also has a few tourism attractions that have failed to provide a positive experience for tourists. This is due to a lack
of consideration given to the planning part of tourism development, which results in a failure to meet the demands and needs
of tourists. In the foreseeable future, competition between tourism locations will reportedly increase as they become more
focused on the development of the tourism market (Lipman, 2007), according to Lipman (Navickas & Malakauskaite, 2009).
Therefore, tourism destinations must be more original and distinctive in their specialist tourism products as well as in their
customer-oriented branding in order to remain competitive.
As a result, stakeholders involved in the management and promotion of their particular tourism destinations have
embraced the concept of a tourist-friendly destination. A research by HSBC Bank found that Malaysia was the ninth friendliest
country in the world, ranking behind Canada, Bermuda, South Africa, the United States, the Australian capital of Canberra,
and Spain, France and the United Kingdom (all of which were in the top 10). (Berita Harian, 2011). Apparently, the world has
been afflicted by the sudden emergence of the COVID-19 virus, which has caused the tourism industry to go numb one day at
a time. In order to thrive in the sector, each firm in the tourism industry must produce something new to align with the changing
norms and lifestyles that exist today. People have a strong desire to travel throughout the world, but the amount of movement
has been reduced, making it necessary to offer new services or products in order for enterprises to remain competitive in the
market.
1.1 BACKGROUND OF THE COMPANY
It has been in business since 1982 under the name Tiram Travel Sdn Bhd. This corporation is a subsidiary of the Johor
Corporation (in Malaysia) (JCoRP). Located on Jalan Tun Abdul Razak in Johor Bahru, the Tiram Travel headquarters is
managed by Tiram Travel Sdn Bhd. There are 45 Tiram Travel branches located around Malaysia to ensure that all of the
packages supplied by the company run well. Furthermore, Tiram Travel operates two international branches in the Indonesian
province of Kepulauan Riau. This company has garnered awards for "Top Performance Malaysia Airlines," "Top Performance
Royal Dutch Airlines," and "Top Performance Garuda Airways," among other distinctions. In addition to domestic and
international travel services, Tiram Travel provides hajj and umrah packages, airline ticketing, hotel reservations, and
conference management services in both the United States and abroad, among other things. In addition, the company focuses
on the Hajj and Umrah industry by adding the concept of waqf into its package offerings.
Tiram Travel is also backed by a team of well-versed professional tour guides, drivers, and a dedicated team of people
who are dedicated to handling and serving the queries from trade partners. Because of their knowledge and experience in the
tourist industry, they are better able to comprehend the needs of their customers. Tiram Travel is also supported by an employee
who has extensive experience in the tourism industry and is committed to the task at hand. Tiram Travel Sdn Bhd is also a
member of the Malaysian Association of Tour and Travel Agents (MATTA), BUMITRA Malaysia, and the Persatuan Agensi
Pelancongan Umrah dan Haji (PAPUH), among other organisations (PAPUH). Some time ago, they added new services to its
repertoire. One of these was transportation services. In a tour and travel firm, transportation services are one of the most
important things that customers will inquire about, and this will have an impact on sales as well. If a tour and travel company
provides transportation services, the number of customers who are eager to use their services will increase as a result of the
comprehensive service that is provided for a single vacation package. They are served by Starex and Ford Transit, which
provide door-to-door service. Additionally, Tiram Travel supplied bus transportation for a group of 44 people on a vacation.
1.2 BACKGROUND OF THE PROBLEM
Traveling and seeing new locations were appreciated by people all over the world prior to the COVID-19 pandemic's
existence. The tourism business is also regarded as one of the most important areas of the world's economy, according to
certain estimates. Early in the year 2020, the world is stunned to learn of the emergence of a new virus with a very high and
rapid rate of transmission. This resulted in the immediate shutdown of all industries throughout the world, and the majority of
corporate leaders were taken aback by the rapid spread of the COVID-19 virus. Malaysia was also one of the countries hit by
the COVID-19 virus, and several firms were forced to close as a result of the massive losses suffered by them. An action has
been made by the Malaysian government to prevent the virus from spreading further, and this step is known as the movement
control order. There are numerous travel limitations in Malaysia, which may cause further harm to the country's tourism
industry if nothing is done to address them soon. During the first nine months of the year, the number of tourists arriving in
Malaysia has decreased from 20.1 million in 2019 to 4.29 million in 2020. The tourism industry incurred billions of dollars in
losses and was forced to shift its focus to the local market in order to recover slowly.
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Malaysians are unable to travel as a result of the movement control order, which has had a significant negative impact
on the country's tourism business. Tiram Travel Sdn Bhd is not exempt from feeling the effects of this phenomenon. They are
also severely impacted by the new social norms of today, as evidenced by the decline in client numbers. For Tiram Travel Sdn.
Bhd. to be able to recoup from losses, the company allocates new services that they may give to their consumers. When flying
internationally, the majority of international flights are based at Kuala Lumpur International Airport (KLIA), and all of its
passengers must meet at Kuala Lumpur International Airport (KLIA) before departing for Jeddah or Medina. In particular,
elderly people from southern and eastern Malaysia find it difficult to travel to the airport because they must make a lengthy
journey to get there before they can depart. Tiram Travel has introduced a new route to Jeddah or Medina from Senai
International Airport in Johor, making it more convenient for customers from Johor and Pahang. Tiram Travel is committed
to their customers' welfare and has established this new service to better serve them. They are experiencing some challenges
in positioning their new services in front of their potential clients and the market as a result of the existing circumstances.
1.3 RESEARCH QUESTIONS
This study listed three main research questions:
i. Are there any relationships between service innovation, reliability and brand endorsement with positioning of Tiram
Travel Sdn.Bhd.?
ii. What is the most important factors influencing new service positioning of Tiram Travel Sdn. Bhd.?
iii. Are there differences in demographic profile groups (age, monthly income and annual travel capability) towards the new
service positioning of Tiram Travel Sdn. Bhd.?
1.4 RESEARCH OBJECTIVES
This study listed three main research objectives:
i. To examine the relationships between service innovation, reliability and brand endorsement with positioning of Tiram
Travel Sdn.Bhd..
i. To identify the most important factors influencing new service positioning of Tiram Travel Sdn. Bhd.
ii. To explore whether the differences (if any) in demographic profile grpups ( age, monthly income and annual travel
capability) towards the new service positioning of Tiram Travel Sdn. Bhd.
■ 2.0 LITERATURE REVIEW
2.1 POSITIONING
Setting a company's offering and image apart from the competition in order to achieve a distinct position in the minds
of customers has been characterized as "the act of developing a customer-focused value proposition that would encourage
patronage of the firm's products or services" (Kotler, 2003). Next, positioning may be thought of as a collection of creative
actions that are designed to influence the minds of consumers in favour of a particular brand (Ries and Trout, 1986).
Specifically, they point out that positioning starts with a product and ends with the construction and possession of a space in
the minds of consumers. It is also known as "positioning," which is the act of identifying an empty space in a customer's mind
and occupying it for a period of time that varies depending on the quality and quantity of a brand's marketing efforts (Sengupta,
1997).
According to him, it is an intentional effort to establish a brand perception in the minds of prospects in order for the
company to stand out from competitors and become much more in tune with what customers demand. It is described as the
identification of target categories and distinctive advantages that a company will utilize to compete in the market. The
dimension of positioning strategy relates to the firm's specific advantage that it must exploit in order to succeed in the
marketplace. A typical commercial competition involves one or more factors, such as innovation, consumer segmentation, and
brand recognition, among others. Firms can differentiate themselves and identify the elements that impacted the positioning
of a particular brand or service through the use of positioning. It may assist in increasing the profitability, revenue, and customer
recognition of the company as a whole, among other things. An successful positioning strategy can assist in attracting and
retaining the target consumer's attention, as well as gaining their interest and loyalty.
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2.2 HYPOTHESIS DEVELOPMENT
2.2.1 SERVICE INNOVATION
In order to attract customers and maintain a competitive advantage, marketers must embrace innovation as
a critical tool. In today's global economy, innovation is regarded as a critical component of long-term success. According to
the definition, “openness to new types of technologies, the ability to search for these technologies proactively, recognize them
early, and react appropriately, as well as an attempt to use these technologies purposefully for innovation in order to develop
technologically first-class products that are superior to those of competitors,” are all characteristics of a technologically
innovative company. The ability of a firm to gain a competitive advantage through positioning is influenced by the
organization's commitment to innovation and new ideas. There are many different types of innovation development and
execution that can take place in the hospitality industry, including service innovation, product innovation, and administrative
innovation. All of these types of innovation development and execution have the potential to lead to the adoption of new ideas,
services, and products. As a result, service innovation has evolved into a complete subject that includes the investigation of
intangible processes and dynamic interactions between technical and human systems that result in service management and
organizational transformation, among other things. This form of value co-creation provides organizations with a greater
opportunity and ability to develop higher-quality service offerings, culminating in the development of new service offerings
(Agarwal, 2009).
H1: Service innovation will have a positive impact on dimensions of positioning strategy.
2.2.2 RELIABILITY
The meaning attributed to reliability in the internal service encounter appears to be similar to that assigned
to reliability in the external service encounter, with the emphasis on the timeliness and accuracy of the output, as well as on
dependability. The need for communication and problem-solving assistance is also readily evident. Perhaps this is because the
internal service encounter is a time-consuming project in which the internal customer needs to be able to freely discuss its
demands with the internal service provider, and because the latter has demonstrated flexibility and patience in responding to
these needs. Unlike service reliability, service failure refers to the loss of consumer expectations and confidence when a service
problem or query is seen by the consumer (Weun, Beatty, and Jones 2004). In order to deliver dependable service quality, the
employees must maintain consistency in their attitude, knowledge, and skills (Aryee, 2016). A service quality assessment is
required by travel companies so that they can determine the current level of service quality in the travel and tourist industry,
as well as the primary drivers for service quality improvement. A reliable assessment and measurement of service quality is
required in order to enhance service quality over time. In the tourist sector, service reliability is extremely significant since it
will influence the customer's view of the tourism service image as well as their sequence of purchasing behaviour during their
vacation (Tsaur, Chang and Yen, 2002).
H2: Reliability will have a positive impact on dimensions of positioning strategy.
2.2.3 BRAND ENDORSEMENT
When a new brand is created from an existing successful brand, this positioning strategy is utilised to assist
the new brand in gaining access to the perceptual space occupied by the old brand in the minds of customers. By establishing
and inhabiting a distinct position in the customer mind through promotional campaigns such as advertising and public relations,
it is possible to differentiate oneself from the competition (Kotha and Vadlamani, 1995). In order to achieve this level of
success, the corporation must closely monitor the marketing strategies of its competitors in order to retain a positive brand
image. The corporation will therefore hunt for market information that will assist it in continuing to operate in its current form.
The company is pursuing this approach in order to position their brand as competitively as possible. They are employing
creative strategies and methods in their advertising, improving the quality of their advertising, building brand reputation and
brand identity, and strengthening their relationships with distributors to achieve this goal. Caterpillar and John Deere, for
example, have outspent their opponents in their respective industries by raising their advertising spending and developing
distinctive imagery to differentiate themselves.
H3: Brand endorsement will have a positive impact on dimensions of positioning strategy.
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2.3 RESEARCH FRAMEWORK MODEL
Service Innovation (H1)
Reliability (H2) Positioning
Brand Endorsement (H3)
Independent Variables Dependent Variables
Figure 1: Conceptual Framework
Figure 1 shows the conceptual framework of this research. The goal of this function is to conduct academic and
corporate research on the links between independent and dependent variables. The framework for the variables in Figure 1 is
based on Iyer, Davari, Zolfagharian, and Paswan (2019), who emphasize market orientation, positioning strategy, and brand
performance.
■ 3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
A research design is a plan or blueprint for conducting a study that outlines each step of getting the information
required by the structure and resolves the management decision problem This study employs a descriptive quantitative research
design as its method of investigation. For this study, a quantitative technique based on a descriptive research design was
employed to investigate the elements impacting a tour and travel company's new service positioning. The information was
acquired by the distribution of questionnaires through a Google form. The respondents were asked to select the best option
from a list of items using a five-point Likert scale based on their personal preferences. The Likert scale had five levels of
agreement: strongly agree, agree, neutral, disagree, and strongly disagree. The five levels of agreement were as follows:
strongly agree, agree, neutral, disagree, and strongly disagree. The assumptions were tested using items from a questionnaire
that asked about the opinions of customers in a tour and travel organization.
3.2 POPULATION AND SAMPLING
A population is defined as a collection of items that have information that the researcher is interested in learning
about. By selecting a target population that is connected to the study problem, the same common characteristics can be defined
in the same way. The intended audience for this research is people who enjoy travelling between the ages of 30 and 60, who
are the target market for Tiram Travel Sdn Bhd. The research is being conducted in Malaysia. The number of components that
can be included in a research study is characterized as a sample in this context. Convenient sampling was chosen since it is a
method that the researcher has used in the past and is familiar with. This technique is employed because it is simple, easily
available, has a low cost budget, and requires the least amount of time for data collecting. The questionnaire will be given to
the respondent through the use of this handy sampling methodology. According to Tabachnick and Fidell (2007), the minimal
size is determined by the number of variables to be examined divided by the number of variables to be tested. There were a
total of 120 respondents necessary for this study. The equations are as follows:
Independent Variables = (IV1 items x 5) + (IV2 items x 5) + (IV3 items x 5)
Dependent Variables = (DV items x 5)
Demographic = (items x 5)
Minimum number of sample = IV items + DV items + Demographic items
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3.3 RESEARCH INSTRUMENT
The use of a quantitative method, such as Likert scale questions, was deemed to be the most appropriate approach
for this study. The questionnaire is divided into three sections, which are referred to as parts A, B, and C. Part A consists of
six straightforward questions about the demographic profile of those who answered them. The independent variables, which
included service innovation, customer segmentation, and brand endorsement, were covered in 15 questions in Part B. Finally,
Part C had five measurement items that were related to dependent variables, which was the positioning of the subject. Each of
the questions in the collection of surveys asks the respondents to select one option from a list. The purpose of a Likert scale is
to determine the strength of an answer, with levels of agreement ranging from strongly agree to agree, neutral to disagree, and
strongly disagree to severely disagree.
■ 4.0 FINDING AND ANALYSIS
4.1 DATA ANALYSIS
This study's data was analysed using the IBM Statistical Package for Social Science (SPSS) version 27. SPSS is a
well-known software application that is used to test the relationship between independent variables (service innovation,
reliability, and brand endorsement) and dependent variables (positioning of tour and travel company). The frequencies analysis
was used to analyze the demographic information given by the respondents and the results reflect on what the data is or means.
Hence, by summarizing in tables it helps to understand the descriptive analysis background and the distribution of the data.
The data analysis was carried out in two stages, of which the first stage involved examining the measuring model and the
second stage consisted of the construction of a complete structural equation model (Dhiman et al., 2019). The data was analysed
using a normality test, reliability analysis, descriptive statistics, multiple regressions and one-way ANOVA test.
The first stage is to measure the normality test and reliability test. Data normality (the approval range of skewing is ± 1)
was assessed based on skewness and kurtosis tests. Cronbach’s alpha was used to assess the inner accuracy of problems related
to the Likert scale. Variance from 0 to 7 is widely reckoned to signify the internal stability of the findings (Pallant, 2005). In
the second stage followed by Multiple Linear Regression. Multiple Linear Regression analysis, which refers to the most
commonly used method to analyze quantitative data, had been carried out as it is an incredibly powerful pool to determines
which correlations among the variables had the most significant effect and prediction (Ghauri et al., 2020). The higher the R2;
the higher is the percentage of variation of the dependent variable explained by the independent variables. When the p-value
is less than 0.05, Multiple Linear Regression is significant (Lee et al., 2018). The results of the regression would be to determine
the relationship of the independent variables and dependent variable. Table 4.1 shows the statistical techniques used.
Table 4.1: Statistical Techniques
Variable Type
Research Objective Independent Dependent Statistical Measure
Variable Variable
To examine the relationships between service Service Innovation,
innovation, reliability and brand endorsement with Reliability, Brand Positioning Multiple Regression
positioning of Tiram Travel Sdn.Bhd.. Endorsement
To identify the most important factors influencing new Service Innovation, Multiple Linear
service positioning of Tiram Travel Sdn. Bhd. Reliability, Brand Positioning Regression (Beta
Endorsement Coefficient)
To explore whether the differences (if any) in Age, Monthly Independent Sample
demographic profile groups ( age, monthly income and Income, Annual Positioning T-test/ANOVA
annual travel capability) towards the new service
positioning of Tiram Travel Sdn. Bhd Travel Capability Analysis
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4.2 RESPONDENTS BACKGROUND
Table 4.2 shows the demographic frequencies analysis of 120 respondents which includes gender, age, race, monthly
income and current employment status. The findings of the data collection on the demographic profile of the respondents
illustrate that male (75%) have the highest number than female (25%). The majority of the respondents’ age group are 56 years
old and above (39.2%) followed by 46 to 55 years old (31.7%), 36 to 45 years old (17.5%) and finally the least is 26 to 35
years old (11.7%).
Moreover, the majority of the respondents based on ethnicity is Malay with 99.2%. Besides, from the result, we can
see that many respondents earned between RM1001 to RM3000 (33.3%), continue with RM3001 to RM5000 (23.3%), below
RM1000 (15.8%), RM7001 to RM9000 (10.8%), RM9001 to and above (9.2%) and the least number of respondents is earning
between RM5001 to RM7000 (7.5%). Thus, in terms of annual travel capability, the respondents that experience 1 to 2 times
per year has the highest number of percentages at 41.7%. Last but not least, the result indicated that respondents that are now
full time employment (35.8%) has the highest number of percentage of current employment status and the least number of
percentage is unemployed (12.5%).
Table 4.2: Demographic Frequencies Analysis
Demographic Profile Characteristics Frequency Percentage (%)
Male 90 75
Gender Female 30 25
26 – 35 years old 12 11.7
Age 36 – 45 years old 21 17.5
46 – 55 years old 38 31.7
56 years old and above 47 39.2
Malay 119 99.2
Race Indian 1 0.8
Below RM1000 19 15.8
RM1001 – RM3000 40 33.3
Monthly Income EM3001 – RM5000 28 23.3
RM5001 – RM7000 9 7.5
RM7001 – RM900 13 10.8
RM9001 and above 11 9.2
1 - 2 times 50 41.7
Annual Travel Capability 3 - 4 times 37 30.8
5 - 6 times 16 13.3
7 times and above 17 14.2
Full time employment 43 35.8
Current Employment Status Part time employment 26 21.7
12.5
Unemployed
15
Self-employed 36 30.0
4.3 INDEPENDENTS SAMPLE T-TEST
Independent Sample T-test compares the means of two independent groups on the same continuous, dependent
variable. In this research, the two independent groups of gender which are male and female have been conducted with the
dependent variable which is positioning. Thus, the p-value should be below 0.05 (p < 0.05) to be significant.
Table 4.3: Independent Sample T-Test Result for Gender
Gender Result
T-test Sig. (2-tailed) 0.954 (p > 0.05)
Male 4.63
Mean
Female 4.62
The results of the Independent Sample T-test for gender groups of 120 respondents is shown in Table 4.3., the sig
(2-tailed) is 0.954 which is the significant value is above 0.05, therefore it is not significant. Based on the result, concluded
that the factors influencing new service positioning in tour and travel company dependent variable are not gender-related. The
group's mean value does not show a significant difference for male (4.63) and female (4.62) respondents. Hence, it clarifies
that during the research, the positioning in tour and travel company do not have to segment based on gender as it will not be
affected to the company.
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4.4 ANOVA ONE-WAY ANALYSIS
ANOVA One-way analysis of variance is similar to t-test, although it is used to compare the means of two or more
independent groups and determine if there is any significant difference between them on the same continuous, dependent
variable. In this research, the demographic items that are used to test the variance which is age, type of smartphone, and
experience with smartphone fitness apps that have a different number of groups. Therefore, to appear significant difference,
the significant value must be below 0.05.
Table 4.4: ANOVA Results for Age, Monthly Income and Annual Travel Capability
Items Sig. Value Means
26 - 35 36 - 45 46 - 55 56 years old
Age 0.136 years old years old years old and above
4.85 4.50 4.66 4.56
Below RM1001 - RM3001 - RM5001 - RM7001 - RM9001
Monthly Income 0.819 RM1000 RM3000 RM5000 RM7000 RM9000 and above
4.61 4.71 4.61 4.57 4.55 4.55
1 - 2 3 - 4 times 5 - 6 times 7 times and
Annual Travel 0.323 times above
Capability 4.54 4.69 4.67 4.72
The result of ANOVA One-way analysis shows that there is no significant difference between age (sig. = 0.136;
highest mean = 4.85 of 26 – 35 years old), monthly income (sig. = 0.819: highest mean = 4.71 of RM1001 - RM3000) and
annual travel capability (sig. = 0.323; highest mean = 4.76 of 7 times and above) in his research. All the service positioning
that conducted by Tiram by age, monthly income and annual travel capability as the result showed the significant value was
above 0.05.
4.5 SCALE MEASUREMENT
4.5.1 NORMALITY TEST
Normality test is a summarization of data into Skewness and Kurtosis that is used to determine whether a
sample or any group of data was taken from are a standard normal distribution. The value of the skewness shows the distribution's
symmetry. On the other hand, Kurtosis offers details regarding the distribution "peakedness". The skewness values should be
between -2 to +2 and kurtosis values should be between -7 and +7 then the data is considered acceptable, for a normal distribution
as stated by Hair et al. (2010).
Table 4.5: Normality Test
Std. Mean Skewness Kurtosis
Construct Variables
Deviation Value SE Value SE Value SE
Positioning DV .450 4.63 .041 -1.181 .221 .914 .438
Service Innovation IV1 .463 4.72 .042 -1.844 .221 2.934 .438
Reliability IV2 .515 4.54 .047 -1.286 .221 1.378 .438
Brand Endorsement IV3 .480 4.68 .044 -1.447 .221 1.445 .438
Based on table 4.5, the results of the normality test for all the variables are normally distributed. The Skewness and
Kurtosis values are considered acceptable as all values fall into the ideal range for skewness -2 to +2 and kurtosis between -7
to +7.
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4.5.2 RELIABILITY TEST
Reliability Analysis is conducted to ensure that the results of variables used in this research are reliable
and sensible. The Cronbach’s Alpha is used to determine the reliability of the variables and is considered reliable if the
reliability coefficient is higher than 0.70 (Cronbach & Shavelson, 2004; Garth, 2008).
Table 4.6: Reliability Analysis
Construct Items Number of Cronbach’s Relationship
Items Alpha
Tiram Travel Sdn Bhd programme is
highly innovative.
Tiram Travel Sdn Bhd is successful at
generating innovative new service
ideas.
Tiram Travel Sdn Bhd is perceived by
Service Innovation its customer to be innovative. 5 0.914 Excellent
Tiram Travel Sdn Bhd constantly seeks
new ways to better service their
customers.
Tiram Travel Sdn Bhd is able to
modify their current service to meet
special requirements from customers.
When Tiram Travel Sdn Bhd promises
to do something by a certain time, it
does so.
When the customer have a problem,
Reliability Tiram Travel Sdn Bhd shows a sincere 4 0.781 Acceptable
interest in solving it.
Tiram Travel Sdn Bhd performs the
service right the first time.
Tiram Travel Sdn Bhd insists on error-
free records
I am confident in the brands endorsed
by Tiram Travel Sdn Bhd
Brand Endorsement I think the brands endorsed by Tiram 3 0.795 Acceptable
Travel Sdn Bhd have taste.
I am willing to buy the brand endorsed
by Tiram Travel Sdn Bhd.
Tiram Travel Sdn Bhd specializes in
serving the needs of particular client
segments or particular geographic
segments.
Tiram Travel Sdn Bhd specializes in
providing particular types of services
to their customer.
Tiram Travel Sdn Bhd is different
based on the quality of the services
Positioning offered. 6 0.839 Good
Tiram Travel Sdn Bhd is different
based on their network of branch
offices.
Tiram Travel Sdn Bhd is different
based on the competitively low prices
of services that they offer.
Tiram Travel Sdn Bhd is being among
the best in the market and have a
leading position.
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4.6 MULTIPLE LINEAR REGRESSION
Multiple Linear Regression to examine the linear relationship between independent variables and continuous,
dependent variable. The variables must be an interval or scale level variable and are normally distributed in the research to get
the results. The significant value is to determine whether the independent variables have a relationship with the dependent
variables as the results should show a positive result if the significant value is less than 0.05. However, the Standardized
Coefficients Beta value is to determine which independent variables has the most significant relationship that will be influenced
by the dependent variable.
Table 4.7: Multiple Linear Regression – Coefficients
Model Standardized Coefficients T Sig.
Beta
(Constant) 2.652 0.009
Service Innovation 0.184 2.137 0.035
Reliability 0.277 3.545 0.001
Brand Endorsement 0.448 5.569 0.000
Dependent Variable: Positioning
As seen from the result of Multiple Linear Regression in Table 4.7, illustrate that all the variables were found to be
statiscally significant which are Service Innovation (β = 0.184, sig = 0.035) , Reliability (β = 0.277, sig = 0.001) and Brand
Endorsement (β = 0.448, sig = 0.000) due to their significant value are lower than 0.05. Hence, the strongest factor that can be
seen to be influence by Positioning is Brand Endorsement as the result of its significant value is the lowest than other
independent variables.
Table 4.8: Multiple Linear Regression – R Square
Model R R Square Adjusted R Square SE of the Estimate
1 0.809 0.654 0.645 0.268
Table 4.8 shows that the value of R-square is 0.654. From this value, it shows that the independent variables of
Service Innovation, Reliability and Brand Endorsement contributed 65.4% factors to Positioning. Concurrently, an additional
34.6% factors to Positioning are derived from another independent variable which is not evaluated in this study.
■ 5.0 DISCUSSION AND CONCLUSION
The study shows descriptive findings concerning about the factors influencing the new service positioning of tour
and travel company. In this chapter, we will explain and assessed answer to all the research question that stated in the Chapter
1 of this study. Furthermore, summarization of all analysis will be explained in this chapter. All the findings stated in this study
would be beneficial to applied to the company that want to position their service well and recognized by their customer. This
chapter also will be discussed about researcher’s limitations throughout the research along with recommendations for further
research.
5.1 INDEPENDENT SAMPLE T-TEST AND ANOVA ANALYSIS DISCUSSION
An Independent Sample T-test was conducted in this research to test the demographic groups of gender and the
results shown that there is no significant difference of the group between the new service positioning of tour and travel
company. Thus, it reveals that the service positioning of tour and travel company do are not gender-related. As Tiram Travel
Sdn. Bhd. is a tour and travel company that arrange and organize Muslim to go for hajj and umrah, the demographic groups of
gender does not affect the new service positioning of tour and travel company because regardless of Muslim men or Muslim
women, surely all will want to go perform hajj and umrah. Therefore, Tiram Travel Sdn Bhd does not subdivide their customer
into the groups of gender in their service as it will not affected the new service positioning in tour and travel company.
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Unexpectedly, the demographic groups which is age, monthly income and annual travel capability that tested on
ANOVA One-Way Analysis disclose results that there is no significant difference between the dependent variable which is
positioning. In order to get significant difference, the significant values that need to be achieved is below than 0.05,
unfortunately, based on the analysis, all the demographic group which is age, monthly income and annual travel capability was
above 0.05. Firstly, for the age group, the result of significant value is 0.136 which is above 0.05. With these result, found that
Malaysia customers of age 26 to 35 years old are less likely to position themselves in the new service that Tiram Travel Sdn
Bhd launched. Next, the significant value of monthly income group also shown the result that has no significant difference
between the new service positioning in the tour and travel company. Respondents with more income are less likely willing to
get involved in the new service positioning of tour and travel company as they may have other commitment that are more
important because the higher income, the higher commitment and responsibility for each person. Next, the significant values
groups of annual travel capability also above 0.05 and the result shows no significant difference of the new service positioning
in the tour and travel company.
5.2 HYPOTHESIS DISCUSSION
5.2.1 H1 - TO DETERMINE IF THERE IS A POSITIVE RELATIONSHIP BETWEEN SERVICE
INNOVATION AND POSITIONING IN TOUR AND TRAVEL COMPANY
The result of H1 is accepted as it shows there is positive relationship between service innovation and the
new service positioning in tour and travel company. Service innovation results (β = 0.184, t-value = 2.137, sig = 0.035) stipulate
that there is a significant and strong relationship towards the new service positioning in tour and service company. The findings
are aligned with previous research results by Storey (2010) and Grawe (2009) proved that the new service positioning in tour
and travel company is successful if they make an innovation in the service that the company provided before launched it to the
society. It differentiates the company from other company as they have their own uniqueness and create a good image in the
eyes of consumers. Furthermore, in order to ensure customer satisfaction with the service provided by the company, the
company need to provide service that reliable, easy to use and meet special requirement from the customers. This way, it would
be easy to position the new service that Tiram Travel launched. In essence, service innovation acts as an important factors and
determinant of the new service positioning in tour and travel company. Hence, H1 is supported.
5.2.2 H2 - TO DETERMINE IF THERE IS A POSITIVE RELATIONSHIP BETWEEN RELIABILITY
AND POSITIONING IN TOUR AND TRAVEL COMPANY
Next, the result of H2 is accepted as it shows there is a positiove relationship between reliability and the
new service positioning in tour and travel company. Reliability results (β = 0.277, t-value = 3.545, sig = 0.001) stipulate that
there is a significant and strong relationship towards the new service positioning in tour and travel company. The findings are
aligned with previous research results by Mustafa (2010) proved that the new service positioning in tour and travel company
is successful if they provided a reliable service for their customers as this will shows the power of word-of-mouth because
customer spread how Tiram Travel treat them as their customers. If the customer gets the right treatment from the company,
indirectly it will give beneficial impact for the company in the future. Furthermore, in order to ensure customer satisfaction,
all the problems and difficulties need to be done or settled by the company as soon as possible to increase the number of sales
in the future. This way, it would be easy to position the new service that Tiram Travel launched. In essence, reliability acts as
an important factors and determinant of the new service positioning in tour and travel company. Hnece, H2 is supported.
5.2.3 H3 - TO DETERMINE IF THERE IS A POSITIVE RELATIONSHIP BETWEEN BRAND
ENDORSEMENT AND POSITIONING IN TOUR AND TRAVEL COMPANY
The result of H3 is accepted as it shows there is positive relationship between brand endorsement and the
new service positioning in tour and travel company. Brand endorsement results (β = 0.448, t-value = 5.569, sig = 0.000)
stipulate that there is a significant and strong relationship towards the new service positioning in tour and service company.
The findings are aligned with previous research results by Hung (2014) proved that the new service positioning in tour and
travel company is successful if they customer recognize all the service or brand that endorsed by Tiram Travel. In order to
make customers recognize them, they need to provide a tip top service in order to capture customer attentions. Company needs
to have their own policy and requirement when customers are buying with them so that they will feel more confident and
secured while making a buying purchasing from Tiram Travel. On the other hand, customers are more likely willing to buy
the brand or service that endorsed by Tiram Travel itself. This way, it would be easy to position the new service that Tiram
Travel launched. In essence, brand endorsement acts as an important factors and determinant of the new service positioning in
tour and travel company. Hence, H3 is supported.
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5.3 LIMITATION AND RECOMMENDATION OF THE RESEARCH
This research is constrained by several inevitable imperfections. Firstly, the research is cross-sectional, therefore to
measure that the company problem in position their new service cannot be demonstrated at a point in time. The data were
collected within a single set time to examine the relationship between independent and dependent variables. However, the
independent variables impacting the new service positioning in tour and travel can vary over time. Secondly, a survey
questionnaire is the type of data collection used in this study. This standardized questionnaire provides data that can be
quantitatively analyzed for patterns and trends, in particular for closed-ended questions. Data accuracy and reliability are
influenced by the respondents’ understanding and answers to the questionnaires. Last but not least, most of the respondents
were Malays, so this study does not represent the whole population of Malaysia. The respondents are mostly university students
and workers who may present an external validity question. Thus, the generalizability of the outcome is constrained for these
reasons.
Based on the limitations that exist in this research, some recommendations may be helpful for future improvement
and for producing better outcomes in the study. First, it is recommended that a longitudinal approach can be used to gather
data and evaluate improvements in respondents over the long term. The longitudinal approach is easier because the time of
data collection is longer, and the sequence of variables is often better explored (Lee et al., 2018). Besides, researchers should
consider integrating the survey questionnaire into their future research should increase data quality by using other methods
such as personal interviews, and site visits. The open-ended question is proposed to provide an access point for the respondents
to share their views, to better grasp the reasoning of the respondents.
5.4 CONCLUSION
This research investigates the factors that influencing the new service positioning in tour and travel company. There
are three factors that have positively impacted the new service positioning on Tiram Travel Sdn Bhd which are service
innovation, reliability and brand endorsement. It is an important reference point for the company as they need to understand
well what the customer needs, wants and preferred before launching any service. This will encourage company to do more
research on how to tackle customer eyes to see what Tiram Travel provide for them. The business and other researchers can
use this finding as reference in the future.
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FYP PRESENTATION
AHIBS UTM SKUDAI JAN 2022
DETERMINE FACTORS THAT AFFECT CUSTOMER SATISFACTION IN
COMMUNITY PHARMACY: A CASE STUDY AT MUHIBBAH JAYA PHARMACY.
TAM WENG HONG, DR. ADAVIAH MAS’OD
Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru
*Corresponding author: [email protected], [email protected]
Abstract
Pharmacy has acknowledged the point of view that customer satisfaction is important in the success of business activities. As a result, it has become critical
for the community pharmacy to attempt to manage consumer satisfaction. The aim of the paper was to investigate satisfaction level and examine which factors
have a positive and significant impact on customer satisfaction with pharmacy. The study investigated the significance of general dimensions and specific
elements of customer satisfaction in measuring satisfaction levels. This study used a quantitative sampling method with a minimum sample size of 140
respondents. The data was collected from the customers of Muhibbah Jaya Pharmacy through Google form and offline survey. The researchers successfully
collected 155 respondents for this study. SPSS software was used to analysis data. The research findings found that the 5 dimensions which include facilities,
reliability, process, value for money, and service quality have positive and significant impact on customer satisfaction. In contrast, dimensions of additional
services and product quality have no positive and significant impact on customer satisfaction. This study helps the existing literature and marketers understand
customer satisfaction, and provides pharmacies with recommendations and directions for improvement to improve customer satisfaction and thus customer
retention.
Keywords: Customer Satisfaction, Community Pharmacy, Dimensions of Satisfaction, Satisfaction Levels, Sungai Siput
■ 1.0 INTRODUCTION
Companies have traditionally depended only on product and service differences to retain customers and satisfy them. However, customers
now have more options and are more price sensitive because of intense competition from new companies entering the market, duplication of
new features, and growth in the number of new products. As a result, marketers have been pushed to adopt distinctive and customer-focused
tactics in order to distinguish oneself from the competitors and gain a competitive edge. Consumer satisfaction in pharmacies is a predictor
of customer behaviour, making it a crucial problem in the competitive retail pharmacy market (Glaveli, et al, 2021). Increasing purchase
intent and pharmacy performance requires improving patient satisfaction (Yaseen et al., 2018).
Many scholars have emphasised the significance of consumers. According to Zairi (2000), customers are the reason we do what we do, and
rather than us depending on them, we depend greatly on them. Consumers are not the source of the problem, and no business should expect
consumers to leave because doing so puts the future and prospects of the business in jeopardy. If a company never cares about customer
satisfaction, they cannot expect customers to care about their product or service (Ali et al., 2021). That is the main reason why organisations
today are focusing on customer satisfaction, loyalty and retention. Satisfaction is a general consumer attitude toward a service provider, or
an emotional reaction to the gap between what consumers expect and what they receive in terms of meeting a need, goal, or desire (Hansemark
and Albinsson, 2004). Oliver (1999) describes customer loyalty as a strong commitment to repurchase or re-patronize a favourite product or
service in the future, resulting in recurring same-brand or same-brand-set purchases, notwithstanding situational considerations and
marketing efforts that may encourage switching. According to Yooet al. (2015), higher customer satisfaction leads to customer loyalty. If
customers are satisfied with a company's service, they will make repeat purchases as a result (Nyadzayo & Khajehzadeh, 2016). Edward and
Sahadev (2011) stated that "customer retention indicates customer's intention to repurchase a service from the service provider". They
examined customer retention statistics to see if customers planned to stick with the service provider. Customer satisfaction and service quality
are major determinants of customer retention.
This study is carried out by the pharmacy company - Muhibbah Jaya Pharmacy located in Sungai Siput (U), Perak. Their objective is to
determine how to develop the business in order to please consumers and increase customer loyalty and retention. The goal of this study is to
define and describe factors that influence pharmacy customer satisfaction.
1.1 PROBLEM STATEMENT
According to statistics from Retail Group Malaysia's Malaysia Retail Industry Report (July 2020), the pharmacy and personal care category’s
sales growth rate decreased 3.9 percent in the first quarter of 2020, compared to an 11.8 percent rise in the previous equivalent period. This
category is expected to decline by 18.4 percent in the second quarter.
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During the MCO period, retail pharmacies experienced a short increase in revenue as a result of purchases of face masks, sanitizers, and
medicines. However, the profit margin on these goods is quite low. There was a 30%-35 percent decline in revenue during the CMCO period
owing to mobility limitations and less customer traffic. In the RMCO stage, the sales growth of retail pharmacies was slow, but overall, it
was still down 15%-20% compared with the same period last year. The company anticipates growth in 2021, but the retail part of community
pharmacy will remain tough due to low consumer confidence. Due to market conditions, independent pharmacies will find it more difficult
to compete. For a month's supply, people used to buy one box (containing multiple strips) of medicine each time. They are now purchasing
one strip at a time. To compete in the future pre-pandemic environment, Muhibbah Pharmacy decided to research and understand the needs
of its customers to create and maintain higher levels of satisfaction. Their goal is to build loyalty and develop strategies to increase sales.
1.2 COMPANY BACKGROUND
Muhibbah Jaya Pharmacy SDN. BHD. is a community pharmacy addressed in No. 26&27, Persiaran Muhibbah Jaya 1, Taman Muhibbah
Jaya 31100 Sungai Siput, Perak, Malaysia. The pharmacy business was started in 2017 October and founded by Madam Teoh Guat Leng
and her partner Miss Siew See Wen, who will be the pharmacist of the pharmacy. Before having the partnership with Miss Siew, Madam
Teoh was running an organic concept shop at that store location. Muhibbah Jaya Pharmacy is the only community pharmacy within 3 km of
the community area. The mission of the pharmacy is “Bringing Wellness to Family & Friends”, meaning that they care for the customer and
community's health. The pharmacy not only sells medicines, but also many other product lines such as personal care, health products, health
equipment, organic food, beauty and lifestyle, and baby and children’s products. Other than that, it also provides other additional services
such as hemoglobin A1c test, lipid profile test, total cholesterol test, uric acid test, haemoglobin test, pregnancy test, glucose test, blood
pressure test and digital acupuncture service. The pharmacy provides free counseling services for their customers about the medical items or
machines even if the product is not from the pharmacy. In addition, the pharmacy also has rehabilitation equipment ordering or leasing
services, available items such as hospital bed, wheelchair, walking frame, crutches, blood pressure/blood glucose monitoring device. During
pandemic Covid-19, the store also added the disinfection machine and disinfect the store twice per day. Back to history in July 2019, the
pharmacy opened an online shop in Shopee platform. Through great operations along the journey, the pharmacy successfully expanded the
business from one store to two stores in August 2020. During February 2021, the pharmacy joined the Panda Mart platform to further provide
their product and delivery services among Sungai Siput area.
1.3 RESEARCH QUESTIONS
This study listed two main research questions:
i. What is the satisfaction level of customers towards the pharmacy?
ii. Which factors have a positive and significant impact on customer satisfaction with pharmacy?
1.4 RESEARCH OBJECTIVES
This study listed two main objectives:
i. To identify the satisfaction level of customers towards the pharmacy.
ii. To examine which factors have a positive and significant impact on customer satisfaction with pharmacy.
■ 2.0 LITERATURE REVIEW
2.1 RETAIL PHARMACY
A retail pharmacy, as opposed to a hospital pharmacy, is one where pharmaceuticals are sold directly to patients. It is also known as a
community pharmacy. A pharmacy is a store where customers may buy medicinal medicines and other items. When we are seeking
pharmaceutical goods to prevent or treat diseases, one of the first places we think of is a pharmacy. Pharmacists are in charge of overseeing
the fulfilment of medical prescriptions and providing medical advice on their over-the-counter medication products at the pharmacy.
Pharmaceutical services have evolved significantly beyond simple medicine distribution to become more patient-centered (Barghouth et. al.,
2021).
2.2 CUSTOMER SATISFACTION
Customer satisfaction is crucial in business, because you can only conduct business if you have satisfied and loyal consumers. Minya, H
(2011) states that if a single dissatisfied client might cost your company more money than ten very satisfied consumers. The more you focus
on client retention and satisfaction, more and more long-term business you'll get. Focusing on customer satisfaction strategies is a good thing.
It's a well-known fact that no matter how big or small your company is, referrals only come from "Apostles" clients. There are many ways
to describe customer satisfaction, but the one that seems to get the most attention is that satisfaction is a post-selection evaluation of a single
transaction. According to Fornell (1992), satisfaction can be regarded directly as an overall emotion. Customer satisfaction may be defined
as a characteristic of a product or service, or the service itself, provide pleasing consumer-related satisfaction, including under- or over-
satisfaction (Oliver, 1997).
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Furthermore, numerous experts demonstrate that pleasing and retaining current consumers is significantly less expensive than continuously
replacing them (Gustafsson et al. 2005). Satisfaction refers to a customer's total attitude or behaviour toward the gap between what they
anticipate and what they get when a want, need, or goal is met (Rahimi and Kozak, 2017). According to Hui and Zheng (2010), satisfaction
is an evaluative evaluation of individual transactions based on perceived quality. Customer satisfaction not only saves money and enhances
profit, but it also brings in new and repeat business. Customer satisfaction is affected by many factors. According to Hokanson (1995), he
stated that: “customer satisfaction variables include good employees, polite employees, capable employees, helpful employees, correctness
of billing, timeliness of billing, competitive pricing, quality of service, and good value, billing clarity and fast service.”.
2.3 DIMENSION OF CUSTOMER SATISFACTION
Satisfaction according to Hokanson (1995) is affected by many factors which include friendly employees, courteous employees,
knowledgeable employees, and helpful employees, accuracy of billing, competitive pricing, service quality, good value and quick service.
The author focuses on seven factors of customer satisfaction for the objectives of this research: additional services, product quality, service
quality, facilities, reliability, process, and value for money. In addition, the seven dimensions include 21 elements that are employed in the
data collecting and analysis process.
2.4 HYPOTHESIS DEVELOPMENT
2.4.1 ADDITIONAL SERVICES
According to Martinéz-Ruiz et al. (2010), customers in the modern environment are continually looking for convenience benefits.
Additional services provide the customer with high-quality additional services to increase his satisfaction (Stopka et al., 2016). Enhanced
pharmacy services are services provided by community pharmacies that require additional or special skills, knowledge and/or facilities
and are provided to subgroups with special needs. While community pharmacies around the world typically provide safe, effective, and
rational use of prescription, pharmacy, and self-selected medicines for all, developed countries are developing and offering an
increasingly diverse array of additional services for payment (Berbatis et al., 2007). Additional services are fundamentally important in
the retail industry and play a part in determining consumer happiness by providing convenience. Additional services like the membership
provide access to discounts and promotional goods.
This dimension will consist of five elements, which are the membership benefit, delivery services, free counseling services,
additional test service and rehabilitation equipment ordering or leasing services. The pharmacy has a loyalty membership for their
customers where the customer may get point from every purchase and can redeem during the member points redemption event. The
pharmacy also provides the delivery service and counseling services. Counseling service is free for their customers about the medical
items or machines even if the product is not from the pharmacy. The additional test services include hemoglobin A1c test, lipid profile
test, total cholesterol test, uric acid test, haemoglobin test, pregnancy test, glucose test and blood pressure test. Lastly, the pharmacy also
has rehabilitation equipment ordering or leasing services, available items such as hospital bed, wheelchair, walking frame, crutches,
blood pressure/blood glucose monitoring device. Relying on explanation given above, researcher hypothesis:
H 1: Additional services have a positive and significant impact on customer satisfaction with pharmacy.
2.4.2 PRODUCT QUALITY
Product quality refers to the combination of features that can meet consumer needs and provide customer satisfaction by upgrading
products and making them defect-free (Akrani, 2013). The consumer will buy a product or service only if it suits his requirements. A
product is considered to be of high quality when it meets a number of criteria related to its functionality for the consumer. According to
Lupiyoadi and Hamdani (2013), product quality is the extent to which a product or service satisfies its standards. Ehsani, Z and Ehsani,
M. H. (2015) states: “product quality is the customer's perception of the overall quality or advantages of a product or service, relative to
its intended purpose, relative to alternatives.” The constancy of a product's or service's quality may contribute to a firm's success as
measured by customer satisfaction, staff satisfaction, and corporate profitability. Product variety is a quantity or product collection that
is distinguished by certain characteristics in order to fulfill the diverse needs of customers (Elmaraghy et al., 2013). The research findings
from Wantara & Tambrin (2019) also showed that product quality had a significant relationship with customer satisfaction. The pharmacy
not only sells medicines, but also many other product lines such as personal care, health products, health equipment, organic food, beauty
and lifestyle, and baby and children’s products. Product variety and durability will be the elements of this dimension. Therefore, following
hypothesis was generated:
H 2: Product quality has a positive and significant impact on customer satisfaction with pharmacy.
2.4.3 FACILITIES
Terblanche and Boshoff (2004) define store facilities as the total of components that contribute to a pleasant shopping environment,
such as easy-to-move-around shop layout/aisles, store cleanliness, and well-shaped product displays. As the market becomes more
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competitive, retailers are being forced to improve their aisle and display management methods. According to Burke (2005), aisle
management entails the appropriate arrangement of categories in store aisles to optimize the shopping experience of customers.
According to Yuen and Chan (2010), physical features such as a nice store layout and appealing service materials offer clients a positive
impression and attitude toward the store. The pharmacy was expanded and combined with two store places. This dimension will consist
of three elements, which are the store layout, cleanliness and atmosphere, and product display. Relying on explanation given above,
researcher hypothesis:
H 3: Facilities have a positive and significant impact on customer satisfaction with pharmacy.
2.4.4 RELIABILITY
Reliability relates to how much trust the pharmacy personnel and organisation may be granted, for example, through factors such
as correct billing. According to Yang and Fang (2004), dependability includes an accurate order of fulfilment, an accurate record, an
accurate quote, an accurate invoicing, and an accurate calculation of commissions, all of which maintain the service promising to the
customer. Reliability refers to a company's capacity to deliver services precisely and reliably as promised, whereas trustworthiness refers
to behaviour that entails accepting others' trust (Barusman, 2019). Referring to Iberahim et al. (2016), reliability relates to an
organization's capacity to provide anticipated standards at all times, how it handles customer service problems, executing the proper
services the first time, providing services on schedule, and keeping an error-free record. “Reliability refers to the promises given by the
store. If the store cannot keep or breaks the promises, it dissatisfied customers and results in negative word-of-mouth. In contrast, when
the company is able to keep its promises, it increases customer confidence in the store and creates customer satisfaction and leads to
loyalty”, (Yuen & Chan, 2010, p236). The pharmacy currently has 4 employees ready to serve customers and provide reservation services
when stocks last. Reliability dimension will consist of three elements which are accuracy of receipt, correct product price, and reservation
promise. Therefore, following hypothesis was generated:
H 4: Reliability has a positive and significant impact on customer satisfaction with pharmacy.
2.4.5 PROCESS
Waiting time at a retail store, according to Katz et al. (1991), is an experience that might contribute to consumer dissatisfaction.
As a result, Hui et al. (1997) contends that waiting time might have a negative impact on a customer's store patronage behaviour. Waiting
in line may frequently have a negative impact on the rest of a client's experience with a particular company (Mwangi and Ombuni, 2015).
Two factors will be used to measure the process: opening hours and transaction process at counters. It is critical to control these process
factors in service delivery since they may make or break customer satisfaction. The pharmacy is open from 9 am to 8 pm every day,
except on Sundays. Operation time for Sunday will be from 9 am to 2 pm and the pharmacy is only closed a total of six days a year
during the federal public holidays. For the transaction process, there is only one payment counter in the pharmacy but three staff are
ready for the services at the counter. Therefore, following hypothesis was generated:
H 5: Process has a positive and significant impact on customer satisfaction with pharmacy.
2.4.6 VALUE FOR MONEY
Value for money, as defined by Ciavolino and Dahlgaard (2007), is the perceived degree of quality in relation to the price paid for
a product or service. Ryu et al. (2008) measure value for money as the consumers' assessment of what has been received and what has
been given. According to Flint and Woodruff (2001), value for money can be defined as the value that a product provides to a consumer,
taking into consideration all of its concrete and intangible qualities. The value of money is defined as a tradeoff between consumer
sacrifices (prices) and receivables. The utilitarian view of value for money is the greatest indication for measuring customers' total
tradeoffs between price and usefulness (Kashyap and Bojanic, 2000). The value of money here is determined by competitive product
price, frequency of discounts or promotions. The pharmacy proposes membership days twice a year and cooperates with the promotion
activities of the product suppliers irregularly. The most advantageous mix of cost, quality, and sustainability to meet customer
requirements is characterised as best value for money. Therefore, following hypothesis was generated:
H 6: Value for money have a positive and significant impact on customer satisfaction with pharmacy.
2.4.7 SERVICES QUALITY
Service quality is a very important component in any business-related activity. Service quality is defined as a comparison of
customer expectations with service performance (Borgave & Koranne, 2016). Service refers to the essential characteristics of a particular
service, while quality refers to the use of primarily user-based methods. Along with service quality, quality refers to the value of service
to customers (Ali et al., 2021). According to Agyapong (2011) there is a positive relationship between service quality and customer
satisfaction. Service quality may alternatively be described as the gap between the customer's expectations and their perceptions of the
service received (Munusamy et al., 2010). According to the service quality theory (Oliver, 1980) recited by Munusamy et al. (2010),
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customers are expected to rate quality as ‘low' if performance falls short of expectations and ‘high' if performance exceeds expectations.
Service quality is an antecedent to customer satisfaction (Ali et al., 2013). Customer satisfaction is a rating given by customers after they
have used a service (Panda and Das, 2015). Consumer satisfaction is created by a gap between the expectations of the consumer and the
actual performance of the product/service (Santouridis and Trivellas, 2010). According to Lau et al. (2006), the higher the service quality
provided, the higher the customer satisfaction. Ghattas and Al-Abdallah (2020) stated that nurturing, qualified and experienced
pharmacists and customer service are decisive factors in choosing a community pharmacy. The pharmacy currently has a total 4 staff
including one pharmacist who are ready to serve the customers. Services quality dimension will consist of four elements which are
friendliness of staff, employee knowledge, performance of staff and availability of staff to offer help. Therefore, the researcher
hypothesis:
H 7: Service quality has a positive and significant impact on customer satisfaction with pharmacy.
2.5 RESEARCH FRAMEWORK MODEL
Figure 1: Research framework for the consumer satisfaction towards Muhibbah Jaya Pharmacy
Figure 1 shows the research framework of this research. The theoretical framework theorizes the relationship between several factors
relevant to the study. It is also known as a conceptual model. The framework of the dimensions in Figure 1 was adopted from Lu and
Lukoma (2011) who highlighted nine dimensions to identify attributes to customer satisfaction. In this study, seven dimensions and 21
key elements will be developed to determine customer satisfaction aspects.
■ 3.0 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
The research design of this study is descriptive quantitative research design. This study uses survey methods in collecting data
from prospective respondents. According to Bryman and Bell (2007), qualitative research focuses on people' perceptions of their social
reality rather than massive quantification.
3.2 POPULATION AND SAMPLING
The population of this research focuses on the customers of Muhibbah pharmacy in Sungai Siput (u). Information received from
the Buku Data Asas Negeri Perak 2016 stated that Sungai Siput had 54.7 thousand population in 2016. There are 27.9 thousand (51%)
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males and 26.8 thousand (49%) females. In this study, since the respondents were only customers of the pharmacy, purposive sampling
techniques were used to select samples from the population. Questionnaires will be distributed to the respondents by using sample-to-
variable ratio sampling (Memon et al., 2020). “The sample-to-variable ratio suggests a minimum observation-to-variable ratio of 5:1, but
ratios of 15:1 or 20:1 are preferred” (Hair et al., 2018). Based on a five-to-one ratio, the calculation of the minimum sample size is the
multiple of all variables used in this study. Calculation as below:
Independent variable : (7 dimension with total of 21 items) x 5
: 21 x 5 = 105
Dependent variable : ( 7 items x 5)
: 7 x 5 = 35
Total respondents under sample to variable ratio : 105 + 35 = 140
Minimum of 140 respondents were required to conduct this study by referring to the calculation above. After the distribution process,
the researchers managed to collect more than the minimum number of 140 respondents and archive 155 respondents. The questionnaire
was developed to be distributed in two ways, which are online and offline methods. The offline method is distributed manually to
respondents whereas the online method is to convert the questionnaire into an online survey using Google Forms and distribute the form
through social media.
3.3 RESEARCH INSTRUMENT
The use of quantitative methods (likert scale questions) was considered to be the most appropriate for this study. The questionnaire
consists of three parts, which include Part A, Part B and Part C. Part A contains 21 questions on all dimension elements. Meanwhile,
Part B was asked about consumer satisfaction. Finally, Section C includes five simple questions about respondents' information. This set
of questionnaires asked respondents to tick from given choices. Respondents were asked to rank the importance of these items on a scale
of 1 to 5 based on their satisfaction with them. (1 = Totally Satisfied, 2 = Satisfied, 3 = Neutral, 4 = Dissatisfied, and 5 = Totally
Dissatisfied.)
■ 4.0 DATA ANALYSIS
4.1 Profile of Respondents
Table 1 presented the summary information on respondents in Part C, including their gender, age, education, race, and income level. The
table also shows the respondents’ profile in terms of frequency and percentage. Based on the table, the majority of respondents were
female, with 89 (57.4%) and 66 (42.6%) male respondents. This research received the same number of respondents from aged 21 to 30
and those aged 31 to 40, both having 51 (32.9%) respondents, and both accounted for the largest proportion. The least respondent age
group is 61 years old and above with only 4 (2.6%) respondents. For education level, there are 77 respondents (49.7%) with SPM or
equivalent of education level and the least are PhD/BDA respondents, with only 4 (2.6%) in the study. After that, the ethnic respondents
in this survey were divided into three categories. The largest group is Malay with 57 respondents (36.8%), second group is Chinese with
56 respondents (36.1%) and the least is the Indian group with (27.1%) respondents. Last respondent information is their income level,
the information showed that the majority of the respondents’ income level is RM 2000 and below with 93 (60%) respondents.
Demographic Category Frequency Percentage (%)
Gender Male 66 42.6%
Female 89 57.4%
Age 20 and below 8 5.2%
21 – 30 51 32.9%
31 – 40 51 32.9%
41 – 50 30 19.4%
51 – 60 11 7.1%
61 and above 4 2.6%
Education Form 3/PMR/SRP or equivalent 14 9.0%
SPM or equivalent 77 49.7%
STPM/Matriculation/Diploma 28 18.1%
Bachelor Degree 32 20.7%
PhD/Master 4 2.6%
Ethnicity Malay 57 36.8%
Indian 42 27.1%
Chinese 56 36.1%
Income Level Below RM 2000 93 60.0%
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RM 2001 – RM 3000 39 25.2%
RM 3001 – RM 4000 13 8.4%
RM 4001 – RM 5000 5 3.2%
RM 5001 and above 5 3.2%
Table 1: Profile of Respondent
4.2 Customer Satisfaction Level
4.2.1 Dimension
To determine the customer satisfaction level, the researcher developed the sum for each dimension score. The score is calculated as below:
Score of dimension = (sum of all item score / highest score of dimensions)
Example calculation:
Score across additional services = (3184/3875) *100 = 82.2%
After following the calculations above, the result is shown at Table 2. The highest score percentage is process dimension with 94% score,
the least is the value of money dimension with 78.8% score. The rest is followed by dimension additional services with 82.2% score, product
quality with 89.2% score, dimension facilities had score 89.3%, reliability had 88.8% score, and services quality had 89.9%.
Dimension Score
Additional Services 82.2%
Product Quality 89.2%
Facilities 89.3%
Reliability 88.8%
Process 94.0%
Value for Money 78.8%
Services Quality 89.9%
Table 2: Customer Satisfaction Level by Dimensions
4.2.1 Overall Satisfaction Level
To determine and analyse the overall customer satisfaction level, the researcher measures the level of customer satisfaction into high, medium
and low levels. These scores are grouped into the three hypothetical levels described above based on the score range the customer falls into.
For each questionnaire, the highest possible score for respondents was 105. The range for high level is score from 86 to 105, medium level
is from 66 to 85, and the low level is score from 0 to 65. According to Table 3, the result found that the highest percentage of customers were
highly satisfied, at 69.7% (108). The medium level accounts for 25.8% (40), and the low-level satisfaction with 4.5% (7).
Customer Satisfaction Level Frequency Percentages
High Level 108 69.7%
Medium Level 40 25.8%
Low Level 7 4.5%
155 100%
Table 3: Overall Customer Satisfaction
4.2 Reliability Test
The internal consistency and reliability of the research questionnaire are determined using a reliability test. Cronbach's Alpha was utilised to
determine the study's variable's reliability. Referring to Malhotra (2012), if the value of Cronbach's Alpha is larger than 0.7, it is suggested
that the variable is reliable and consistent. Table 4 is the result output from SPSS software after analysis. The Cronbach’s Alpha values in
the table showed that all variables are reliable and valid due to the variable’s values ranging from 0.875 to 0.964 which are larger than 0.7.
Variables No. of Item Cronbach’s Alpha
Additional Services 5 0.955
Product Quality 2 0.898
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Facilities 3 0.943
Reliability 3 0.942
Process 2 0.875
Value for money 2 0.923
Services Quality 4 0.964
Customer Satisfaction 7 0.956
Table 4: Cronbach's Alpha
4.3 Validity Analysis
In this study, validity tests were performed to confirm that the questionnaire items were valid. The KMO and Bartlett’s tests were organised
and carried out to establish whether or not factor analysis was appropriate for this study. If the KMO value is more than or equal to 0.50, the
sample size is suitable for further investigation (Hair et al., 2018). Moreover, the sphericity of the data was determined using Bartlett's
sphericity test. Low sphericity with less than 0.05 and high sample adequacy with more than 0.70 are required to determine whether the data
are suitable for exploratory factor analysis (Williams et al., 2010). After the analysis by using SPSS software, the KMO analysis for this
study is 0.942. Based on Table 5, the result of KMO is more than 0.5, and it is suitable for further analysis and investigation. As a result, this
factor analysis is appropriate for the research. Then, with a significant result of 0.000 where less than 0.05, Bartlett’s test of sphericity
supports and proves that it is appropriate to do the factor analysis.
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .942
Bartlett's Test of Sphericity Approx. Chi-Square 5737.980
df 378
Sig .000
Table 5: KMO and Bartlett’s test
4.4 Normality Test
According to George and Mallery (2010), the normality test is used to determine if a data collection is regularly distributed. Hair et al. (2018)
and Bryne (2010) define normal data as having a skewness between the range from -2 to +2 and a kurtosis between the range from -7 to +7.
The data from Table 6 is the result after calculated by using SPSS software. The researcher included all variables (additional services, product
quality, facilities, reliability, process, value for money, services quality and customer satisfaction) to calculate Skewness and Kurtosis values.
Based on Table 6, it showed all variables are within an acceptable range. The statistic column under Skewness, all variables have the range
between -2 and +2 and the statistic number under Kurtosis, all variables also have the range between -7 and +7. Therefore, it is concluded
that in this study, the dataset is normally distributed.
Skewness Kurtosis
Variable N
Statistic Std. Error Statistic Std. Error
Additional Services 155 -0.480 0.195 -0.518 0.387
Product Quality 155 -1.019 0.195 0.693 0.387
Facilities 155 -1.102 0.195 0.557 0.387
Reliability 155 -1.111 0.195 1.068 0.387
Process 155 -1.522 0.195 2.210 0.387
Value for money 155 -0.428 0.195 -0.056 0.387
Services Quality 155 -1.509 0.195 1.894 0.387
Customer Satisfaction 155 -1.413 0.195 2.196 0.387
Table 6: Values of Skewness and Kurtosis
4.5 Descriptive Analysis
According to the descriptive analysis in Table 7, the process dimension has the highest mean score of 4.5806. In contrast, the variable of
value for money has a lower mean in this study which is 3.8387. Moreover, value for money has the highest standard deviation with 0.86215
while the variable of process is recorded the lower standard deviation with 0.61498.
Variables N Minimum Maximum Mean Standard Deviation
Additional Services 155 2.20 5.00 4.1084 0.74598
Product Quality 155 2.00 5.00 4.4581 0.63439
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Facilities 155 2.00 5.00 4.4645 0.66720
Reliability 155 2.00 5.00 4.4409 0.65348
Process 155 2.00 5.00 4.5806 0.61498
Value for money 155 1.00 5.00 3.8387 0.86215
Services Quality 155 1.75 5.00 4.4935 0.71790
Customer Satisfaction 155 2.00 5.00 4.3770 0.66168
Table 7: Minimum, Maximum, Mean and Standard Deviation
4.6 Multiple Regression Analysis
The relationship between dependent and independent variables was demonstrated using multiple regression analysis. Multiple regression
analysis used to determine which factor variables were most predictive of influencing consumer satisfaction with Muhibbah Jaya Pharmacy.
If the p-value which is a significant value is less than 0.05, it is assumed that a relationship exists between the dependent and independent
variables. Table 8 shows the result output by using SPSS software. The result shows that facilities, reliability, process, value for money, and
service quality have positive and significant impact on customer satisfaction. The analysis presents that 5 variables’ p-value is lower than
0.05. In contrast, the significant value of additional services and product quality is more than 0.05. The result shows these two variables have
no positive and significant impact on customer satisfaction. From the five significant variable factors, with a beta value of 0.385, value for
money is the highest predictor of customer satisfaction, followed by reliability, which is 0.254, service quality, which is 0.242, process,
which is 0.118, and facilities, which is 0.110. Furthermore, Table 9 reveals that the R square for customer satisfaction is 0.868, indicating
that facilities, reliability, process, value for money, and service quality explain 86.8 percent of the customer satisfaction.
Unstandardized Standardized Collinearity Statistics
Model Coefficients Coefficients t Sig
B Std. Error Beta Tolerance VIF
(Constant) .139 .162 .861 .391
Additional .060 .041 .067 1.468 .144 .426 2.346
Services
Product Quality -.079 .051 -.076 -1.559 .121 .375 2.666
Facilities .109 .053 .110 2.067 .041 .318 3.146
Reliability .257 .057 .254 4.474 .000 .279 3.585
Process .127 .059 .118 2.161 .032 .301 3.327
Value for money .296 .032 .385 9.355 .000 .528 1.894
Services Quality .223 .049 .242 4.533 .000 .314 3.187
a. Dependent Variable: Customer Satisfaction
Table 8: Result of Multiple Regression Analysis
Model R R Square Adjusted R Square Std. Error of the Estimate
a
1 .932 .868 .862 .24583
a. Predictors: (Constant), Additional Services, Product Quality, Facilities, Reliability, Process, Value for Money, Service Quality
Table 9: Model Summary
4.7 Summary of Research Hypothesis
As shown in Table 10, seven hypotheses were formulated in this study and five of the hypotheses are accepted which are facilities, reliability,
process, value for money, and service quality factor. In other words, the hypotheses positively and significantly influence customer
satisfaction of the pharmacy. In contrast, there are two hypotheses, additional service and product quality, which do not significantly influence
the pharmacy’s customer satisfaction.
Hypothesis Result
H1 Additional services have a positive and significant impact on customer satisfaction with pharmacy. Rejected
H2 Product quality has a positive and significant impact on customer satisfaction with pharmacy. Rejected
H3 Facilities have a positive and significant impact on customer satisfaction with pharmacy. Accepted
H4 Reliability has a positive and significant impact on customer satisfaction with pharmacy. Accepted
H5 Process has a positive and significant impact on customer satisfaction with pharmacy. Accepted
900
901 Tam & Adaviah (2022)
H6 Value for money has a positive and significant impact on customer satisfaction with pharmacy. Accepted
H7 Service quality has a positive and significant impact on customer satisfaction with pharmacy. Accepted
Table 10: Hypothesis Summary
■ 5.0 DISCUSSIONS AND IMPLICATIONS
5.1 Discussion on Research Objective 1: To identify the satisfaction level of customers towards the pharmacy.
The surveys were distributed to the customers of the Muhibbah Jaya Pharmacy. After calculated and analyzed the results, the dimension
process had the highest score (94%) in customer satisfaction level, while the value for money had the lowest score (54%) as shown in Table
2. There are two items evaluated under the dimension process, which are the operation time and the transaction process at the counter. The
result showed that customers were satisfied with the pharmacy operation time and transaction process of the pharmacy. In contrast, customers
felt least satisfied with the value for money. There are also two items that are evaluated under value for money, which are the competitive
price and the frequency of promotions or discounts. The analysis resulted in the customers not satisfied with the product price and the
promotion frequency of the pharmacy. Therefore, the pharmacy should focus on pricing their products and recommended to focus on
delivering product value to customers. The pharmacy should also offer more frequency of the promotion or discounts in order to attract
customers and also their satisfaction level. Moreover, the research also measured overall customer satisfaction levels. As shown at Table 3,
the highest percentages of respondents belong to high satisfaction level with 69.7%. Then, come to medium level with 25.8%, and the least
is the low satisfaction level with 4.5%. In conclusion, the customers of the pharmacy are most satisfied with the dimension of process, and
least with the dimension of value for money. Most of the customers (69.7%) have a high satisfaction level towards the pharmacy.
5.2 Discussion on Research Objective 2: To examine the significant factors that influence consumer satisfaction towards the
pharmacy.
H1: Additional services have a positive and significant impact on customer satisfaction with pharmacy.
The research findings show that the additional services have no positive and significant impact on customer satisfaction with pharmacy. The
result shown at multiple regression analysis obtained the significant value (p-value) of additional services is 0.144 (p < 0.05). Therefore, this
hypothesis is rejected: Additional services have no positive and significant impact on customer satisfaction with Muhibbah Jaya Pharmacy.
The result differs from Marković et al. (2014) research which proved the dimension of additional services has the greatest impact on customer
satisfaction. From Marković et al. (2014), the largest differences between expected and perceived quality appeared in variables related to
additional services. The research findings are the same with Grigoroudis et al. (2002), which found the additional services criteria is the truly
unimportant criteria with the customer satisfaction. The pharmacy provides additional services such as membership benefits, delivery
services, free counseling services, additional test service and rehabilitation equipment ordering or leasing services. The regression result
showed that the expectation of customers towards the additional services is lower and not important. Based on the customer satisfaction level
analysis, the additional services are in high satisfaction level with a score of 82.2%. Additional services are very helpful in increasing
customer satisfaction, but the most additional services provided by the pharmacy are only beneficial to a small percentage of customers. For
beneficiary customers, additional services are important and have high expectations, but for other customers, additional services are less
important and have lower expectations. To conclude, the additional services are not important to customers, and it has no positive and
significant impact on customer satisfaction with Muhibbah Jaya Pharmacy.
H2: Product quality has a positive and significant impact on customer satisfaction with pharmacy.
The result of this study found that the product quality has no positive and significant impact on customer satisfaction with pharmacy. This
hypothesis is rejected due to the significant value (p-value) is 0.121 (p<0.05). The result is different from the previous research of Razak et
al. (2016), Senthilkumar (2012) which proved that the quality of the product can affect customer satisfaction. Previous research from Hoe
and Mansori (2018) had stated that the product quality and durability have high impact on customer satisfaction. Previous research from
Wantara & Tambrin (2019) found that product quality had a significant effect on customer satisfaction, but it is not suitable for this research.
These research findings were also inconsistent with Sholihat and Thavorncharoensap (2014) which proved that availability of drug were
commonly cited as important factors associated with customer satisfaction in pharmacy. However, the result in this research is in line with
research from Saleem et al. (2015) which found the product quality has no significant effect on customer satisfaction. Pharmacy services are
increasingly expanding from simple drug supply to patient-centered and caring services (Ayalew et al, 2017). Ayalew et al. (2017) research
presented those customers of pharmacy have a high level of expectation toward pharmacy services. Compared with pharmacy products,
customers have higher attention and expectations for pharmacy services. Community pharmacies provide their customers with medicines
and advice to promote the safe and effective use of medicines provided by the pharmacy. Perceived product quality had no effect on customer
satisfaction, suggesting that customers may associate side effects or unsatisfactory medication with physician or active ingredient prescribing
decisions rather than pharmacies (Guhl et al., 2019). Based on the customer satisfaction level analysis, the product quality is in high
satisfaction level with a score of 89.2%. The aggression analysis also found that the product quality with the lower beta value was -0.076
901
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