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IN MYDIN
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LETTER OF TMANSMITTATL
B. B. A. (Hons) Retail Management
School of Business and Management
MARA Institute of Technology
40450 SHAH ALAM
Puan Normala Daud
Practium Advisor
School of Business and Management
MARA Institute of Technology
40450 SHAH ALAM
14 SEPTEMBER 1998
Dear Madam,
STOMISION-OF FROJECT FAFER
Enclosed here is a report on " A Study on Customer's Satisfaction and
Perception in Terms of Pricing in Mydin". 1 do really hope that this report
could accompUsh the requirement of the subject as required.
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Lastly, I would like to express my gratitude profound thanks for the advice
and appreciation as well as guidance that you had rendered to me in
making these project papers a reality.
Thank You.
Yours sincerely,
(NOMELLIAffl ISMAIL)
96448796
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ACKMOWLEBGEMENT
First of all, I would like to express my grateftil to Allah S.W.T. for giving
me healthy, strength and confidence in the completion of this research.
Accordingly, I am indebted to the following people for the help,
suggestions, inspiration, and patience, which they have offered me so
generously during the preparation of the study on customer's satisfaction
and perception in terms of pricing in Mydin.
I am especially grateful to my advisor Puan Normala Daud, for her
constructive comments, guidance and strong support.
I would also like to thank the management of Mydin, Jalan Masjid India
especially to all staff at Mydin, a place where 1 gained experience and
retail exposure during my practical trainee and survey conducted.
in
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In this respect, I would also likes to extend this appreciation to my friends,
Norlin, Christina, Winnie, Jennifer, Sharon and Sham for their strong
support.
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EXECUTIVE SUMMARY
Price is the only element in the marketing mix that able to generate a
revenue. Any increasing or decreasing iri the price changing, the customer
will react on it. Whether they still want to buy it or shift to another product
that able to offer at the reasonable price.
More specific pricing goals should be set, so that it can avoid such
potential problem as confusing people with too many prices and having
are frequent sales to stimulate customer to buy.
Therefore, Mydin, Jalan Masjid India, will be the place that I will make a
research on "A Study on Customers' Satisfaction and Perception in terms
of Pricing in Mydin". It is whether to know the price can attract the
customer attention and to know whether do customer satisfied with the
price offer in Mydin.
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TARI F
CONTENTS
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TABLE OF CONTENTS
PAGE
LETTER OF TRANSMITTAL
i
ACKNOWLEBGEMENT
iii
EXECUTIVE SUMMARY
v
TABLE OF CONTENTS
vi
INTRODUCTION
1
1.1
BACKGROUND OF THE COMPANY
3
1.2
PROBLEM STATEMENT
6
1.3
OBJECTIVES OF THE STUDY
7
1.4
BACKGROUND OF THE STUDY
8
1.5
SCOPE OF THE STUDY
9
1.6
LIMITATIONS OF THE STUDY
VI
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12
2.0
LITEMATUME MEVIEW
14
2.1
PRICE
14
2.2
CUSTOMER SATISFACTION
20
2.3
PERCEPTION
28
2.4
PRICING INCUSTOMER
SATISFACTION
3.0
31
METHOPOLOGY
38
3.1
INTRODUCTION
38
3.2
SOURCES OF DATA
39
3.2.1
Primary Data
39
3.2.2
Secondary Data
40
3.3
DATA COLLECTION METHOD
41
3.3.1
Questionnaires
41
3.3.2
Observation
41
3.3.3
Sales Report
45
3.3.4
Journals
46
VII
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4J
3.4.0 SAMPLING
47
3.4.1 Define the Population.
47
3.4.2
48
Sampling Frame
3.4.3 Samplitig Size
48
3.4.4 Sampling Procedures
49
ANALYSIS AN® FINBINGS
50
4.1
Age Of Respondents
50
4.2
Sex Of Respondents
52
4.3
Race Of Respondents
54
4.4
Respondents Occupation
56
4.5
Respondents Income
58
4.6
Respondents Visit To Mydin
60
4.7
Attractions To Come To Mydin
62
4.8
How Frequent Visit Mydin
64
4.9
Respondents Price Comparison With Other
Competitors
4.10
66
Perception Of Mydins' Product
vni
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68
4.11
4.12
4.13
Customer Satisfaction In terms Of Price
71
Why customer Satisfied With The Price Offer
73
Mydin's Location
75
4.14
Convenient Time For Customer to Shop At Mydin
77
4.15
Where Do You Get To Know Mydin
79
4.16
Types Of Product
81
4.17
Alternatives If The Product Is Not Available At Mydin 83
4.18
How Much Do Customers Spend For Every Visit
85
4.19
Criteria Of The Product
87
4.20
ANALYSIS FROM FINDINGS
90
53
CONCLUSION
93
6.11)
MECOMMENBATION
96
MBLIOGMAPHY
AFPEITOIX
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INTRODUCTION
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Customers ''BerceptUm andSatisfaction
1.0
'BfBA (5{(Xh(S)%M
MTRODUCTION
Price can mean many things, depending on one's
perspective. For the consumer, the price of a
product or service represents the resources one must
forgo to obtain something of value. For a society,
the prices of goods and services are the primary
mechanisins v^hereby supply and demand are
brought into equilibrium in the economy at large.
And for the manager, price is a key decision
variable
affecting
the
performance
of
the
organization.
According to Shapiro (1987), \yhen a customer
buys a product he or she goes through complex
process of balancing the price of the product against
the perceived benefits, costs, risks, and value in use
of the product. If the customer thinks this way when
analyzing a purchase, it makes a great sense for
marketers to set prices with the same items in mind.
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Customers 'Perception andSatisfaction
To do this marketers need to understand the use to
which their customers put the products, the
performance benefits, both physical and services,
that are most important, and different cost variables
that the customer perceives, such as risk of product
failure.
The general purpose of this study is to determine
the customers' perception and satisfaction in terms
of pricing in Mydin Wholesale Emporium. Mydin is
one of the famous wholesalers in Malaysiaj which
offer the customers with various types of products.
Mydin is able to attract customers at a reasonable
price as compared to other competitors.
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"B^Si (HC^J^jM
Customers'Perception andSatisfaction
'mJ^(!f{aJ^)^!M
1.1 ffiac&groiimd
WHOLESALE
Empbrium
Company
Mydin
Mohammed and Sons Sdn Bhd is a local premier
wholesale emporium for Malaysians long before
others competitors like Wilsans, and City Mart
appeared.
The company was founded by Mydin Mohammed
in 1956, opened its first shop in Kota Bharu. By the, ,,|,^.^cr
1980s, Mydin had expanded his sole propnetOTship---^'
i " ' /. ; « . - i h AiM»
business to Kuala Terengganu and Kuala-Lumpur.
Mydin Mohammed and Sons currently have eight
other supermarkets and emporiums at Jalan Masjid
India (two emporiums), Jalan Tuanku Abdul
Rahman (Kuala Lumpur), Selayang Utama, Kota
Bharu, Kuala Terengganu (two emporiums) and
Klang.
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Customers' 'BeruptUm andSatisfaction
It's managing director. En. Ameer Ali, targets a
turnover of 300 million this year following the
opening of its ninth emporium recently. The
emporium, which costs RM8.5 million to set up, is
situated strategically along Jalan Tun Ismail in
Kuantan and Occupies 10 shoplots.
Kuantan outlet was expected to generate a turnover
of RM60 million this year. Mydins' invested a total
of RM 22 million in this outlet and they are
optimistic that despite the economic problems they
would be able to survive because their business
culture is to make little profit from the individual
things they sell but to go fqphi^er sales volume.
This is because they believe that the people want
cheap things off the shelves and they will oblige by
selling such item, which are daily necessities.
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®BJ? (^09^) S^fW
Customers' 'Perception andSatisfaction
En. Ameer said that the secret of their success is
that they have been in this business for more than
40 years and they have import and export licenses.
Because of that they are able to deal directly with
the big companies in China, Hong Kong, Taiwan,
the US, Britain, the Middle East, Pakistan, South
Korea, India, Thailand and Turkey. According to
En.Ameer that for future expansion, the company
would invest RM 4.5million to buy ,a-building\ in \
Penang and another'^RMf 20- 'million" for two
buildings along^Jal^ Raja Alang in Kuala Lumpur.
The company plans to be listed at the KLSE second
board by next year. With prudent marketing strategy
and cautious approach, they have been able to strive
during these hard times and they believe they would
be better off than other businesses.
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'RB^ (^O^) %.M
Customers 'Perception andSatisfaction
1.2
PROBLEM STATEMENT
1. Customer Will be reluctant to buy some of the
product below the lower limit of price because they
fear something may be wrong with the product if it
is priced too low.
2. Consumer's taste and preference vary and it is
difficult to determine the customer satisfaction.
3.
It is difficult to establish customer loyalty towards
the company because consumers make decision on
what they perceived to obtain something of value.
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«RJ? (ff{C^)fSiS\4
Customers 'Terceptum andSatisjmtitm
1.3
OBJECTIVES OF THE STUDY.
1. To identify the customers perception towards price
in Mydin.
2. To determine whether the custotner satisfied with
the price offered at Mydin.
3. To identify how do customer perceive Mydin
products as compared to other wholesalers.
4. To determine whether the price affects customers
visit to Mydin.
5. To recommend or give some suggestions to Mydin
that will lead to the increase in sales.
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-mR (9{CS9^)%JM
Customer ''Perception andSatisjhction
1.4
BACKGRQPNP OF THE STUBY
Pricing is one of the most critical areas of business
management. It represents the final judgement of
value of everything that has preceded it, the final
assessment of the time, the cost and investnient
required bringing a product of a service to the
market place is worth. It is deserving the carefiil
ineasurement, the greatest use of all available
intelligence, and the most deliberate of judgement
in balancing the required profitability against that
allowed by competitive pressures.
In concept, it calls for the best of management talent
and management expertise. In practice, it usually
receives far less.
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'msi (J{ahlS)%,M
Customers' 'Perception andSatisfaction
®BJ? (9{(^) %M
The study is conducted to obtain the customers
feedback in terms of their perception, satisfaction,
expectation and preferences, as well as identifying
the factors that can arouse their purchase interest on
certain itemsfromthe Mydins'.
Thus, when factors affecting
the customers
purchase decisions is well defined, it will help the
retailer or buyer to design or redesign their offering
to catei" to customer needs and wants.
A study on consumer towards pricing can also
results in determining an accurate data or
information about Mydin customers whether they
are price oriented, quality oriented or quantity
oriented person.
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Customm' Perception andSatisfaction
'mn (HO^) %M
This is because their degree of sensitivity might
differ between individuals due to their perception
and satisfaction to the product. Therefore, this study
can help the retailer to better understand what type
of customers they are dealing with and would give
affect
the
company's
overall
positioning the Mydin.
10
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strategies
in
Customers''Perceptitm andSatisfaction
1.5
SCQPE OF THE STIJBY
The survey research method will be the basic
research design that will be carried out at Mydin
wholesale Emporium Jalan Masjid India. Each
respondent will be given a questionnaire for him or
her to answer while they are shopping.
The time taken are generally expected to last
between 5 to 10 minutes, although the length of the
time will vary depending on the previous related
experience of the respondent. This is to ensure
accuracy and representative's of target market in
different demographic, geographic and lifestyle
background.
11
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«BJi (OiOh^J^M