1 Introduction

1.1 Introduction to the study

In this chapter, it is briefly explained about the company and the importance the company’s customer
satisfaction and their loyalty that will determine the future goals of the company. Furthermore, this
chapter will explain on the problem statement, objectives, and questions of the research besides
explaining the definition of the terms involved.

There has been a large numbers of research been done in identifying the customer satisfaction and its
relation towards brand loyalty. Brought forth by the far reaching reception of the advertising idea,
endeavors to adjust advertising procedure to the objective of amplifying consumer loyalty have been
sought after decisively by item and specialist co-ops. Announced information demonstrate that, in
1993, post-purchase inquire about, "generally including consumer loyalty work," represented in one
third of incomes got by the biggest U.S. inquire about firms. (Oliver, 1999).

Customer is defined as the one that purchases a commodity or service. (merriam-

webster.com, 2017). According to English oxford dictionaries online, customer is
defined as a person who purchases goods and services for personal use. The definition of
service is the action of helping or doing work for someone, a system supplying a public
need , a periodic routine inspection and maintenance of a vehicle or other machine and also
described as a ceremony of religious worship according to a prescribed form (English oxford
living Dictionaries (Oxford University Press), 2017). The assistance and advice provided by a
company to those people who buy or use its products or services brings us to the word
customer-service and customer-loyalty will be the quality of being loyal by the customer to a
company, product or brand. (English oxford living Dictionaries (Oxford University Press),
2017).

Brand is a mind boggling wonder. Brands are inescapable; they enter practically every
part of our life: financial, social, social, brandishing, indeed, even religion .Due to its
propensity to infest wherever they have gone under developing feedback .In post present day
social orders where people needs to offer name to their utilization, brands can and ought to be
dissected through different points of view: macroeconomics; microeconomics, humanism,
human sciences, history, semiotics, rationality and that's only the tip of the iceberg. (Upendra
Kumar Maurya, 2012). A name, term, plan, image, or some other component that recognizes
one merchant's great or administration as unmistakable from those of different dealers. The
legitimate term for brand is trademark. A brand may recognize one thing, a group of things,
or all things of that merchant. In the event that utilized for the firm in general, the favored
term is exchange name. (Marion, 2015)

Veterinary medicine industry is the branch of medicine that deals with the causes,
diagnosis, and treatment of diseases as well as injuries in animals. (Veterinary+Science,
2017). KM Vet Pharm SdnBhd is the leading company in distribution of animal health
products and nutrition. The prior issues faced by the KM Vet Pharm SdnBhd are to determine
what are the reasons for consumer preference for its product and the like-hood of sustained
repurchase by consumers.

1.2 BACKGROUND OF THE STUDY

Both practitioners and academics comprehend that purchaser faithfulness and fulfillment are
connected inseparably. They additionally comprehend that this connection is topsy-turvy.
Albeit steadfast buyers are most ordinarily fulfilled, fulfillment does not all around convert
into unwaveringness. To clarify the fulfillment dedication problem, the creator examines
what part of the buyer fulfillment reaction has suggestions for dependability and what
segment of the faithfulness reaction is because of this fulfillment segment. Customer
satisfaction is treasured as it brings towards loyal customer and hand on this element will
determine the company future.

1.3 PROBLEM STATEMENT

Numbers of journals has suggested the relationship between marketing mix, customer satisfaction and
brand loyalty that distinguished as per Oliver’s Brand loyalty model. A base of faithful clients can do
ponder as far as financial prizes and new business prospects as winning another client can cost as
much as 6 times more than the cost of holding an old one (Rosenberg and Czepiel, 1984) while
benefits can be expanded from 25% to 125% if the potential relocation is diminished by 5% relying
on the industry (Reichheld and Sasser, 1990). Services have been generally looked into and
investigated for their interesting qualities and escalated client introduction.
A portion of the significant ideas that have been concentrated to investigate the genuine idea of
administrations are Service Quality (Parasuraman,Zeithaml and Berry, 1985; Gronroos, 1988; Cronin
and Taylor, 1992; O.Neill, 1992; Oliver, 1997), Satisfaction (Oliver, 1993 and 1997; Wirtz and
Bateson,1999; Zeithaml and Bitner, 2000), Loyalty (Dick and Basu, 1994; Oliver, 1997; Bowen and
Shoemaker, 1998; Reichheld and Sasser, 1990; Heskett, Sasser and Schlesinger, 1994; McMullan and
Gilmore, 2003; McMullan, 2005) and Complaint Management Systems (Boshoff, 1997 and 1999;
Mattila, 2001; Boshoff and Staude, 2003; Craighead, Karwan, and Miller, 2004; Mattila and
Patterson, 2004). Part of client dependability acquires noticeable quality when connected with regards
to administrations because of the higher human inclusion in contrast with products. Keeping in mind
the end goal to create and maintain reliability among the clients, it is essential to discover what drives
dependability in a specific market.

The variables which prompt reliability should be revealed and comprehended before planning and
executing the procedures for client maintenance and devotion. Writing proposes connections between
client devotion also different business builds, for example, quality, fulfillment, trust et cetera. These
connections should be explored and understanding the impact of these develops on dependability will
definitely give a knowledge into client devotion arrangement.

KM VET PHARM SDN BHD, which holds customers from various veterinarian clinics, farmers, pet-
shops and till the end-users, in the year 2016 which was last year didn’t achieve the targeted sales
despite the fact that the number of customer were increasing. Thus, to identify the ironic reason
behind the issue, which drags the factors of interrelated relation between marketing mix, customer
satisfaction and brand loyalty via using Oliver’s model.

1.4 OBJECTIVE

The aim of this research is to identify the correlation between marketing mix, customer satisfaction
and customer’s brand loyalty.

1. There is a significant positive relationship between customer satisfaction and customers brand
loyalty.
2. There is a significant positive relationship between product and customer satisfaction
3. There is a significant positive relationship between place and customer satisfaction
4. There is a significant positive relationship between price and customer satisfaction
 5. There is a significant positive relationship between promotion and customer satisfaction
6. There is a significant positive relationship between process and customer satisfaction
7. There is a significant positive relationship between people and customer satisfaction
8. There is a significant positive relationship between physical evidence and customer
satisfaction

1.5 Research question

To study intends in order to identify the correlation between marketing mix, customer satisfaction and
customer’s brand loyalty. Thus, the research is attempted to and those questions stated below:

1. Does customer satisfaction effects customer loyalty?

2. Does the variables of marketing mix, product effects customer satisfaction?
3. Does the variables of marketing mix, place effects customer satisfaction?
4. Does the variables of marketing mix, price effects customer satisfaction?
5. Does the variables of marketing mix, promotion effects customer satisfaction?
6. Does the variables of marketing mix, process effects customer satisfaction?
7. Does the variables of marketing mix, people effects customer satisfaction?
8. Does the variables of marketing mix, physical evidence effects customer satisfaction?

1.6 Significance of study

The significant of this study would determinant the relation between marketing mix variables,
customer satisfaction and customer loyalty among KM VET PHARM SDN BHD clients.

Specifically this study would attempted to provide a practical understanding on the current situation
in KM VET PAHRM SDN HD, and would give a better picture of the changes needed to be done as to
stay on track towards achieving the objective and goals of the company. The recommendations of
this study would help the management to enhance the marketing and customer management skills
among clients as well as to gain a better understanding of the concept in which the company has
indulged into it, B2B and B2C relation.
1.7 Definition of key terms
1.7.1 Product
Products can be defined as any of the item that can be offered to market for attention, acquisition, use
or consumption that may satisfy a want or need. It includes more than just tangible items, such as cars,
computers and cell phones. Comprehensively characterized, "products" likewise incorporate
administrations, occasions, people, places, associations, thoughts, or a blend of these. All through this
content, we utilize the term item comprehensively to incorporate any of these substances. (Armstrong,
2011)

1.7.2 Price
Price is the sum charged for an item or administration. It is the second most imperative component in
the advertising blend. Settling the cost of the item is a dubious employment. Many elements like
interest for an item, cost included, buyer's capacity to pay, costs charged by contenders for
comparative items, government confinements and so forth must be remembered while settling the
cost. Truth be told, estimating is an extremely urgent choice range as it has its impact on interest for
the item and furthermore on the productivity of the firm. (nayak)

1.7.3 Promotion
Advancement is the way toward showcasing correspondence to educate, induce, remind and impact
customers or clients for item or administration. Advancement has three particular purposes. It imparts
advertising data to purchasers, clients and affiliates. (Ubeja, 2014).

1.7.4 Place
Kotler and Armstrong (2006), defined place or distribution as a set of interdependent organizations
involved in the process of making a product available for use or consumption by consumers. Jones,
(2007) defined place as any way that the customer can obtain a product or receive a service
(Owomoyela and Oyeniyi, 2013).

1.7.5 Process
For the fifth P, the procedure alludes to the prescribed procedures in conveying items and
administrations to the clients with the point of making them glad and fulfilled. The ideas of
determination and process are crucial in the advertising blend as clients may have the early
introduction in light of the conveyance procedure and industriousness portrayed by advertisers.
(Youcef SOUAR, 2015)
1.7.6 People
This is a vital piece of giving the administration (Rust, Zahorik, and Keiningham, 1996). Everybody's
conduct will influence the achievement of the association's activities and capacities. More
correspondence, preparing, abilities, learning, and tuning in to the perspectives of others, will
accomplish proof of the ideal estimation of the item and the organization (Judd, 2001).

1.7.7 Physical evidence

It implies the presence of the administration; it is nature of a service.(Ivy, 2008). The physical
confirmation incorporate the regalia of staff, the organization has abnormal amounts of honors and
office apparatus (Rafiq and Ahmed, 1995).

1.8 ORGANIZATION OF REMAINING CHAPTER

Chapter 1 quickly clarified a concise presentation, foundation, and the investigation's examination
issue. It at that point plots the exploration questions, targets, trailed by the meaning of key terms
lastly, it will display the structure of this examination. Chapter 2 contains the subtle elements survey
of past investigations which are identified with this examination. The surveys which be displayed in
this segment additionally will talk about on the consumer loyalty and client unwaveringness after
showcasing blend. At long last, the part examines the chose free factors. Section 3 clarifies the
examination strategy utilized as a part of this exploration paper which incorporates investigate plan of
the examination, populace and inspecting of the investigation, the estimation of the factors utilized
and furthermore the information investigation technique.