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Abstract - This paper illustrates to identify critical shops on the sides or roofed street and is commonly
success factors of retail and wholesale industry based referred to as shopping area. In North America, the
on a case study. The rampant development of urban expression "complex" or 'shopping center' is
advancement in Malaysia has expanded the quantity generally connected to structures of a closed
of basic supply retail outlets that gives assortments of market while shopping complex refers to the
items. Due to this, clients are accustomed to visit supermarket outside.
different outlets. Retailers also acknowledged In Malaysia, it incorporates self-serviced
consumer loyalty playing a part in their business
stores offering an assortment of commonly items
achievement. Therefore, it has become important for
grocery retail stores to identify the factors in decision
with a larger array of choices which incorporate
makings of customer selections. This study was food products, meat, agricultural products, dairy
conducted in three chosen stores, specifically Mydin, items, canned and packaged goods as well as
Giaint and Tesco in Alor Setar, Kedah. Data from 190 various non-food items such as household supplies,
respondents were collected from questionnaires. Data pharmacy and toiletries. Floor space ranges from
were then analyzed by using summative score one level and is generally located near residential
examination, relative investigation and chi-square areas with ample parking lots.
freedom test. Primary variables that were significant For hypermarkets, it must have a total
were location, facility, process, product quality and floor area of business not less than 5,000 square
value for money. Hence, a few suggestions are meter and is only allowed to operate for every
displayed to enhance consumer loyalty and 350,000 population within a radius of 3.5
dependability of their clients. This study unlock
kilometers from the city center and residential areas
further frontiers for the perspective entrepreneur in
order to get idea about various success factors to set
subject to the approval of the Local Authority, In
up retail business. With this study it is also contribute addition, hypermarkets are only allowed to operate
for sustainability of the business retail and wholesale in the suburbs with a freestanding facility that is
outlet. standardized such as parking, lounges, restaurants
Keywords: Retail Business, Consumer Selection and other public facilities (toilets, telephone, ATMs
Decision, Retail Success Factor etc.) as well landscapes. Generally known, there are
many renown existing supermarket nowadays such
1. Introduction as Giant hypermarket, Carrefour, Tesco, Jaya Jusco
just to name a few.
The rampant urban advancement in Retail became the main entrance or the
Malaysia had incredibly affected the lifestyle on last channel for goods before they reach the
which in each city had at least a supermarket to consumer. It became an important link between
fulfil demands of consumers at their own retailers and consumers. Retail is not limited to
convenience. The presence of a town or city by grocery stores alone; it covers the entire wholesale
account would be deemed incomplete without a and retail activities, regardless big or small
general store or shopping center. businesses. There are 11 kinds of wholesale and
Shopping centers and shopping arcades is retail activities. These include supermarket and
characterized as a building with a course of shops mini-markets, specialty stores, convenience stores,
and walkways that permit guests to stroll from shop need-supply shop, pharmacy, traditional medicine
shops, direct selling, hypermarkets, sidewalk shops
______________________________________________________________
International Journal of Supply Chain Management and petrol stations.
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) According to the Department or Statistics,
Copyright ExcelingTech Pub, UK (http://excelingtech.co.uk/) Malaysia, wholesale and retail accounted for
11.6%. of GDP in 2006. In 2007, this sub-sector
to shop whether roofed or not. In Europe and contributed an increase of 12.2%. This encouraging
Australia, it is known as the shopping center or development is parallel with strong private
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Int. J Sup. Chain. Mgt Vol. 5, No. 2, June 2016
ii. To investigate factors that influenced the product or service, serviceability of repair,
customers store preference. appearance of the product and image or reputation
of the product or service[9].
1.2.2 Research Questions
2.5 Store Facilities
i. Which is the most preferred hypermarket Grocery store as a place of sensory stimuli
choice among the three stores? where consumers can find colorful product displays
ii. What are the factors that influenced coupled with fruits and flowers with perfectly
customers store preference? displayed packages of snacks and advertisements
covering the floor. Supermarket facilities are very
2. LITERATURE REVIEW important since they have the ability to influence
the purchasing behavior of customer [10]. Sum of
Ref. [2] refers that there are factors elements contribute to a pleasant shopping
influencing customer behavior on choosing their atmosphere such as layout, cleanliness and well-
favorite place for shopping, such as hypermarkets shaped product displays [11]. Asserts that aisle
atmosphere, location factors, parking space, management involves the effective placement of
completeness of hypermarkets, and the capability categories in the store aisles to improve customers
of the organization. Beside that most of marketing shopping experience [12]. Physical aspects such as
is focused on the coupon promotion. Coupon is a good store layout and attractive service materials
now wide use in retail goods. It also can indeed give customers a good impression and attitude
have an impact on customer behavior [3]. Research towards the store [13].
was done at Careefour Subang Jaya, analysis was
found that five main factors that influence 2.6 Reliability
customers behavior which are affordable pricing, Reliability refer to how much trust can be
extensive parking/free, One Stop Shopping, afforded the supermarket staff and organization, the
product freshness and quality and varieties of sales promises given by the store [13].
promotions [4].
2.7 Process
2.1 Parameters of the purchasing decision Todays customers are looking for
process economy in the utilization of time and any time
There are three elements of the buying wasted due to waiting is resisted upon. Wonderful
group structure which are participation, experience the customer has had in the retail store
formalization and centralization [5]. Buying center gets diluted and creates a bad experience for the
consist of five dimensions, (i) vertical involvement, customer if wait longer time for the checkout [14].
(ii) lateral involvement, (iii) extensively, (iv)
connectedness and (v) centrality [6]. 2.8 Value of Money
Eighty five percent of the worlds
2.2 Location consumers ranked Good Value for Money the most
There are several factors must be taken important consideration when choosing a grocery
into consideration for choosing a business location store [15].
and these are demography, local socio-economic
conditions, competitors, government policy, law 2.9 Staff
and facilities and other infrastructure [7]. Factors that affect customer satisfaction
that have a very close relation to employee of a
2.3 Customer service company which include friendly employees,
Customer service is an important element courteous employees, knowledgeable employee,
of additional service in retail mix such as accept helpful employees, accuracy of billing, billing
credit purchases, modify the items purchased timeliness, competitive pricing, service quality,
(clothing), fabricating items, through home good value, billing clarity and quick service [16].
delivery, dressing room, packaging, parking and Satisfaction can be associated with feelings of
guarantees and other[7]. Customer service also acceptance, happiness, relief, excitement and
should include policies and practices of delight [17].
competitors, types of merchandise sold,
background of customers income, purchase 2. METHODOLOGY
behavior, pricing policy and business location [8].
In this study, questionnaires were used to
2.4 Product Quality gather primary data. The questionnaires were
The eight dimension of product quality are designed bilingually consisted of English and
performance or characteristics of a product or Malay in the form of structured questions (closed
service, features of the product or service, ended). Question used were brief, comprehensive
conformance or the match or pre-established and use jargon were avoided to improve the
standards, durability or product life, reliability of understanding and interest of respondents. The
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questionnaires consisted of two sections. First In other words, sampling frame consisted of three
section consisted of general questions and the grocery stores. Population consisted of the
second section focused more specifically on customers from the three retailers in Alor Setar.
answering the objectives of the research. There are Therefore it was decided that the sample size for
9 dimensions highlighted that constituted to the each of the store would be 10% from the day with
selection decision of customers under store context. the highest number of customers. The sampling
Those are core dimensions which included (i) method used was non probability.
location, (ii) additional services, (iii) product
quality, (iv) store facilities, (v) reliability, (vi) Sample Calculation
process, (vii) value for money, (viii) staff, and (ix) MYDIN GIANT TESCO
Day with highest no
personnel service. of customer (fourth
Each dimension composed of few 800 550 700
weekend every
elements which described attributes of customer month)
selection decision explicitly. There were a total of Sample (10%) 10% x 10% x 10% x
800 = 80 550 = 55 700 = 70
19 elements categorized into relevant 9 dimensions
as mentioned previously. For this section, Table 1. Calculation of Sample
respondents were asked to rate their satisfaction
level by using the Likert scale, to show the Theoretical frameworks were based on 9
importance of each elements. The scale is from 1 to dimension with 19 elements overall structured
5 (1=Very Dissatisfied, 2=Dissatisfied, 3=Neutral, together to determine the characteristics of
4=Satisfied, 5=Very Satisfied). customer selection making.
Location Location
4. RESULTS AND DISCUSSION
Number of questionnaires distributed at
Mem
bers the three stores are as followed:-
hip Additional
card Services Store No of No of reject No of
Parking lot Questionnaires questionnaires questionnaire
Baby areas distributed (**) used for date
Freshness of analysis
products
Product Mydin 80 8 72
Durability
Quality
Product variety Giant 55 3 52
Clean & Tesco 70 4 66
spacious Table 2 Number of Questionnaires
atmosphere Note: ** A questionnaire is classified as rejected
Display/decorat Facilities
ion Music/
when respondent chose more than one store.
interior
Accuracy of Determinants Customer selection decision is the only
receipt for Customer variable to be measured in this research. To ensure
Correct prices Selection element was measured effectively, 9 core questions
Reliability Decision with 9 dimensions were developed, (i) location
(B6LOC), (ii) additional services (B6AS), (iii)
No. checkout
product quality (B^PQ), (iv) facilities (B6FAC), (v)
counters
Operation hour Process reliability (B6REL), (vi) process (B6PRO), (vii)
Queues-waiting value for money (B6VLF), (viii) staff (B6STF),
at counters and (ix) personnel service (B6PS). Each dimension
Competitive has different elements.
price
Value for
Frequency of LABLE NAME
Money
promotions/Dis
counts AGE Age of the respondent
Friendliness GENDER Gender of the respondent
Knowledgeable Staff
STORE Store that respondent choose to
, quick shop at
performance FREQUENCY Frequency of respondent visit the
Availability of
staffs to offer
Personal store
Service IMPORTANT Important of the store name to
help
respondent
B1LOC Location
Figure 1 Theoretical Framework for Element of B2AS1 First element of Additional
Customer Selection Decision services: Membership card
Empirical cases of the research were B2AS2 Second element of Additional
conducted in Mydin, Giant and Tesco respectively. services: Parking lot
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Per
B7VM1 First element of Value for money:
Staff
Competitive price.
B7VM2 Second element of Value for
money: Frequency of
promotions/discount. Figure 2 Summary of Dimension
B8STF1 First element of Staff:
Friendliness, helpfulness.
B8STF2 Second element of Staff: 4.5 Analysis Of Other Factors
Knowledgeable staff with quick
performance. Regardless of preferred store customers
B9PS Personnel service visited, it could be identified that 71 respondents
Table 3 Elements of customer satisfaction were aged in the range of 15-25 years old, 50
respondents were aged in the range of 26-35 years
4.1 Score criteria: old, 58 respondents were aged in the range 36-50
Each element of Likert Scale has score 1 and 11 respondents were aged more than 50 years
to 5 (1=not satisfied at all; 5 = extremely satisfied). old; in percentage 37%, 26%, 31% and 6%
Maximum score for each questionnaire of respectively.
19 elements was 105 (19 x 5 = 105). Maximum 70% of the respondents were female
score for each element assigned by the whole which accumulated the value to 133 respondents.
sample of 190 respondents is 19,950. Only 30% were male with 57 people. This value
indicated the female were mainly involved in
4.2 Summative Score shopping compared to male.
= (Score obtained from Mydins Customers + From the analysis, it could be identified
Score obtained from Giants customers + Score
that most of the respondents with 43.7% visited the
obtained from Tescos customers)
= (72*105) + (52*105) + (66*105) = 19,950 store for the purpose of monthly shopping. Followed
by 1-2 times per week of 29% with almost daily
4.3 Summative Score Comparison trips, 14% and 13% for 3-4 times per week of store
visits.
B1LOC B2AS1 B2AS2 B2AS3
N Valid 190 190 190 190 4.6 Comparative Analysis of Mydin, Giant
Missing 0 0 0 0 and Tesco
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