marketing research method by lim kok sia

8/9/2019 Marketing Research Method by Lim Kok Sia

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Table of Contents

Executive summary .......................................................................................2

Research proposal title .................................................................................3

1.0 Introduction: Broad Statement of the Research Problem ...................3

2.0 Background of the Study and Research Problem ................................4

3.0 Research Objectives ................................................................................53.1 To identify the amount of consumers who think promotional tools are useful insaving money................................................................................................................ 5To evaluate whether a favourable attitude towards the tools would lead to producttrial................................................................................................................................ 5To determine the level of tools awareness as a moderating factor towards productpurchase and trial.......................................................................................................... 6To examine which promotional tools are the most effective in inducing product trialand purchase.................................................................................................................. 6

3.5 Research Plan - Diagram 1 (Malhotra et al, 2004, p.20) ........................................ 74.0 Justifications of the Study ......................................................................8

5.0 Literature Review ....................................................................................9

6.0 Research Framework and Hypotheses ................................................10

7.0 Research Methodology ..........................................................................127.1 The sampling Design Process ............................................................................... 127.2 Method of data collection ..................................................................................... 137.3 Research instrument ..............................................................................................137.4 Method of processing and analysis ....................................................................... 147.5 Method of Data Analysis ......................................................................................15

7.6 Research budget .................................................................................... 16

7.7 Questionnaire ........................................................................................17

8.0 Result and Discussion ........................................................................... 208.1 Demographic Analysis/Findings ...........................................................................208.2 Descriptive Statistics .............................................................................................218.3 T-test ..................................................................................................................... 238.4 One way ANOVA .................................................................................................248.5 Regression Analysis ..............................................................................................28

9.0 Limitations and Future Research ........................................................31

10.0 Recommendations .............................................................................. 33

11.0 Conclusion ............................................................................................34

12.0 References ............................................................................................35

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Executive summary

This assignment is a complete assignment that combines both the proposal and SPSS

analysis as to evaluate the impact of promotional tools towards product trial. In the first

assignment, the background of the study which is the extent of Klang Valley shoppersrespond to promotional tools especially in case of grocery shopping. Next, the research

problems arise where the effectiveness of the promotional tools and the attitude of the

shoppers towards the tools will be further investigated in our research. Next, we set our

research objectives such as find out the attitude, level of awareness and perception of the

shoppers towards promotional tools. We also drew up a research plan as to guide us along

our research process. By the way, we need to justify our marketing strategies that refer to

the outcome and implementation of our research. The literature review sum up the points

in the journals that refer to the promotional tools and are set as foundation of our

research. The research framework and hypotheses set out the relationship and statement

between the independent, dependent and moderating variables that we going to

investigate later. The research methodology is the most crucial part as it explained the

sampling design process, method of data collection, research instrument and method of

processing and analysis that we will be implement as to obtain the information and

interpret the research result. Now, we move on to the second assignment which is based

on SPSS analysis. Data entry and analysis were done to obtain the result for future

analysis. We started with the demographics analysis that includes the statistics of the

respondents age, gender and income. Descriptive analysis told us about the mean of each

promotional tool. The t-test evaluate the difference between male and female and there is

a significant difference between them .One Way ANOVA analyzed the discrepancy

between the different age group. The last part is the regression analysis where it indicated

that all promotional tools have a positive relationship with product trial and the most

effective tool is loyalty card. Limitation of the research was discussed andrecommendation was given for future improvement of the research. In conclusion, the

organizations should also prudent in planning, budget and selection of promotional tools

where the most effective tools will be selected to boost their sales.

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Research proposal title

Impact of promotional tools on product trial with attitude and awareness of tools as

moderating variables

A Klang Valley Study

1.0 Introduction: Broad Statement of the Research Problem

We propose to investigate how close (if any), the relationship is between the

impact of promotional tools upon product trial. There has been much research in this

broad field of consumer responses to sales promotions (e.g. Bawa and Shoemaker,

1987,1989; Huff and Alden, 1998; Gupta, 1993, as cited in Ndubisi and Chew, 2006, and

Shi, Y.Z. et al, 2005). However, there has been no study specifically on the direct impact

of promotional tools such as coupons, personal selling, value packs, buy one, free

one, and loyalty or point-accumulating cards upon product trial among Malaysians,

particularly Klang Valley consumers. What makes this research even more unique is the

inclusion of consumer attitudes and their awareness of the above-mentioned promotional

tools as moderating variables to the study.

The purpose of this research is to shed more light onto this study area that has

different results and applications, across the various nations around the globe. There has

been much research carried out on Western consumer markets, less of Eastern consumer

markets, and even less so in Malaysia in particular. We have chosen to focus on Klang

Valley particularly as it has the most dense population and bustling retail environment in

Malaysia. We aim for this research to come useful for firms to determine which

promotional tools are most efficient to adopt, how significant the impact of each

promotional tool is to product trial - substantiated by statistical evidence - that will also

help prove the differences between the impacts of different promotional tools on producttrial. Therefore, this research will explore, calculate, analyze and explain the relationship

between promotional tools and product trial, with the attitude of consumers as well as

their awareness of the tools, as acting moderating factors.

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2.0 Background of the Study and Research Problem

As much research has focused on coupons and price discounts, other equally

important promotional tools such as personal selling, value packs, buy one free one and

loyalty cards, have been in want of more research coverage, especially their applications

in Malaysia. All these tools, save personal selling, are the most widely used sales

promotional tools in the grocery products industry. This research does not limit itself to,

but focuses on retail grocery outlets or the grocery products industry because it carries

many low involvement products (LIP), which, according to Ndubisi and Chew (2006),

are believed generally, to be more responsive to promotional tools compared to high

involvement products.

Due to the emergence of more and more retail grocery outlets, competition has

stiffened, and managers of especially major retail grocery outlets have had to use

promotional tools to develop competitive advantage and maintain or improve market

share (Rowley, 1998). These promotional tools can be price oriented such as coupons,

and non-price oriented such as loyalty cards. The price-oriented tools are recognized for

their usefulness in inducing product trial and increasing relative market share (Lee,

2002). Non-monetary tools like loyalty or point-accumulation cards (e.g. J-card from

Jusco, Topshop card, Sen-Q and Bonuslink) are effective because most card holders are

loyal to the card and all the brands affiliated with it, as the cards provide incentives to thecard holders to have repeat purchases and stay loyal to the brand, because reward points

are earned according to shopping frequency (Mauri, 2003). Moreover, if the company is

successful in creating consumer awareness towards the tools, consumers may form

favourable attitudes towards the products and hence form intention to purchase the

product in greater amounts (Shimp, 2000). Usually, expenditure on promotional tools

account for a quarter of the marketing budget, asserting its significance (Honea and

Dahl, 2005).

The marketing research problem is derived from the management decision

problem and it is the duty of the marketers to first find out what information is needed in

order to determine the management problem, before it can be solved. In this case, the

marketing research problems or questions are:

1. Which promotional tool is the most effective in inducing product trial and purchase?

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2. Do consumers have favourable attitudes towards these promotional tools?

3. How aware are the consumers of these promotional tools?

4. Do the consumers respond to the promotional tools positively to the extent it induces

product trial/purchase? Which ones specifically, to what degree are they effective, and

why?

3.0 Research Objectives

3.1 To identify the amount of consumers who think promotional tools are useful in

saving money.

The proportion of consumers who have tried to save money using

promotional tools will inform and recommend it to other friends, indirectly promoting

the product and increasing brand awareness..

The company, which develops the most successful or effective

promotional tool mix, will beat the other competitors and own majority market share.

To evaluate whether a favourable attitude towards the tools would lead to product

trial.

Customers who have favourable attitudes towards the tools are likelyto purchase or try out the products on promotion.

The tri-component attitude model (cognitive, affective, behavioural)

represent three different stages which can be conceptualized to show an integrated

picture of how the consumers respond towards the tools (Laroche, 2003).

Most of the promotional tools tend to focus on the behavioural stage

because it leads to actual product purchase and trial (Shi, Cheung and Prendergast,

2005).

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Managementdecision problem

Definition of the

problem or opportunity

Marketingresearch problem

2. Development of an

approach to the

problem

3. Research design

formulation

Establishresearch costs

4. Fieldwork or data

collection

5. Data preparation

and analysis

6. Report

preparationand presentation

Managementdecision making

ClarificationEvaluation

andmonitoring

Revise

3.5 Research Plan - Diagram 1 (Malhotra et al, 2004, p.20)

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4.0 Justifications of the Study

Diagram 2: Marketing Strategy Justification

Outcomes of the

Study

Summary of the Implications of the study to Management Decision-

Making in Marketing Strategies

and the Designation of Marketing Mix

Most effective

promotional tools

Get to know the current level of perceived effectiveness of mostused and least used promotional tools

Understand how the effective promotional tools work in order toattract consumers towards product trials and purchase.

Allows for examination on effectiveness of past& currentpromotional tools by referring to past research, conductingresearch on current promotional tools and comparing.

Purchase and

trial patterns

(single usage,

multiple, trial)

To decipher necessary steps needed to increase the purchasefrequency and change the minds of single use consumers toincrease repeat purchase or trial by using promotional tools..

To reward the current customers using reward points or couponsaccording to their purchase amount and hence turn them intoloyal customers.

To determine rate of trial usage and how to transform trial intoadoption and long-term usage

Consumer

attitude

Enable management to emphasize on tools that need more

improvement or change and thus positively change theconsumers attitudes toward the tools and the products.

Understand consumer attitudes better, hence allowing for betterprediction of future purchase behaviour .

Comprehend the consumers attitude in a better perspective sothat the management can satisfy them by adjusting or tailor-making the promotional tools according to their needs anddemands.

Level ofawareness of the

consumer towards

promotional tools

Investigate current level of tools awareness of the consumers sothat the management can increase the awareness of the tools byemploying more advertising through mass media.

Identify certain promotional tools (unpopular, costly/ ineffective)to be eliminated, so new and more popular tools such as loyaltycard (in higher demand) can be added into the Promotion andmarketing mix.

Degree of

Satisfaction

Predict future behaviour of consumers towards product purchaseand product trial.

Find out customers favourite tools the ones that we need toplace more emphasis upon, expand tool usage, invest more

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money

5.0 Literature Review

Promotion is one of the key 4Ps in the marketing-mix (Kotler, 2000), and is

concerned with making the customers aware of the organizations products offered

(Rowley, 1998). Sales promotion like coupons, buy one, free one, and value packs,

according to Shimp (2003), is basically any incentive used by a firm to induce the trade,

and/or consumers to buy a brand, as well as encourage the sales force to aggressively sell

it. Other promotional incentives such as loyalty cards and personal selling are used to

encourage desired behaviours from consumers such as loyalty, higher frequency of

purchase or repeat purchase, or more money spent in that particular store (Mauri,2002;

Bellizzi and Bristol, 2004).

Generally, sales promotion tools are more short-term oriented and capable of

influencing behaviour (Ndubisi and Chiew, 2005). Specifically, sales promotion tools

which are price oriented particularly such as coupons increases brand awareness, market

share, encourages brand switiching as well as induces product trial usage (Lee,2002).

Shea (1996, as cited in Lee 2002) compares non-price promotions use instead, like

loyalty cards which are adopted for their ability to meet longer-term objectives such as

increasing brand loyalty, enhancing brand image and brand associations. Furthermore,

non-price promotions are framed as gains whereas price-oriented promotions are

perceived as reduced losses. Lee suggests that managers (especially in the competitive

retail grocery industry) use price-oriented promotions more because they are concerned

more with short-term pressures compared to building the brands long term health.

Moreover, Kahneman and Tversky (1979, as cited in Lee,2002)s prospect theory states

that people generally place more importance on avoiding losses than seeking gains. Shi et

al (2005) however, posit that coupons are favoured less by consumers, compared to price

discounts and in-store displays because they require greater involvement, and contrary toLees observation of managers preferences, are relatively less effective in product trial

and brand switching.

Loyalty cards besides having the motive of repeat purchase and brand loyalty,

also serves the purpose of tracking consumer purchase histories as well as creating a

customer profile database to better meet the demands of their customers (Bellizzi and

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Bristol, 2004). However, Mauri (2003) had come to the same conclusion as Bellizzi and

Bristol, that is, that not all subscribers to a loyalty card are all even card-loyal. They

found that these loyalty card holders had many loyalty cards. Bellizzi and Bristol (2004)

found that both card usage and card ownership are inversely related with supermarket

loyalty, and that card users were actually less likely to be loyal supermarket shoppers.

Personal Selling is face-to-face interactions with one or more prospective

purchasers, for the purpose of making sales (Rowley,1998,p.384), particularly famous in

business-to-business marketing. Kim and Merrilees (1998) put deeper meaning to

personal selling, as they attribute it as an important tool for relationship marketing. They

find that consumers are increasingly turning to salespeople as a source of information and

reliability, more applicable to medium and high-price retail firms, compared to low

involvement products.

Buy-One-Free-One offers may be offered at the regular price, thus adding value

to the product persuading consumers to buy the product because an additional amount

is given free of charge (Shi et al, 2005). It is also used to trigger unplanned purchases

(Inman et al.,1990, as cited in Laroche et al.,2003). However, further researched showed

that it only proved most effective in stockpiling, but least effective in product trial usage.

Value packs are considered similar to Buy-One-Free-One offers as it gives more value

compared to the usual retail package.

6.0 Research Framework and Hypotheses

The frame work design of this research falls under conclusive research design, in

particular descriptive research; as it is known that descriptive research examines the

consumers characteristics (Malthora et al., 2004, p.65), such as the influence of attitudes

and tool awareness on the impact of promotional tools on product trial. The conclusive

research is going to be used in order to determine the relationship between the five

independent variables (promotional tools) and the dependent variable(product trial) with

the moderating variables of consumers affective attitudes and awareness. The descriptive

design is divided into cross-sectional and longitudinal designs. This research will use the

cross sectional study as it is the most frequently applied descriptive design in marketing

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research. Furthermore, the research entails collecting data from the target population once

only.

Diagram 3: Research Framework

The following hypothesis for the study was developed based on the preceding review of

literature.

H1 : There is a significant positive relationship between Coupon and product trial.

H2: There is a significant positive relationship between Personal selling and product

trial.

H3: There is significant positive relationship between Value pack and product trial.

H4: There is significant positive relationship between Buy 1 free 1 and product trial.

H5: There is significant positive relationship between Loyalty cards and product trial.

CouponPersonal SellingValue PackBuy 1 Free 1Loyalty cards

Product Trial

AttitudesAwareness

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7.0 Research Methodology

7.1 The sampling Design Process

There are five steps in this process; they are to define the target population, determine the

sampling frame, select sampling technique(s), determine sample size, and execute the

sampling process (Malthora et al, 2004, p. 226).

1. Determine the target population - It must be identified precisely otherwise the results

would be misleading and ineffectual. The research target population are those who

patron the major retail grocery outlets, hypermarkets and supermarkets and malls

throughout the Klang Valley.

2. Determine the sampling frame this in turn, is used to identify the target population.

Sampling error will arise if there are elements that are irrelevant or not related to thelist of population elements. Based on the determined target population, the sampling

frame is limited to people who particularly shop in the various Giant, Tesco, Jaya

Jesco, Carrefour and Makro outlets throughout the Klang Valley.

3. Select sampling technique We have chosen judgmental sampling which is a Non-

probability sampling technique, where we select people who happen to be at the

right place at the right time selection process is at the discretion of the field

worker.

4. Determine the sample size In this research, the sample size would be 150 people, 75

females and 75 males are targeted. The survey would be done through handing out

questionnaires to be filled in, as well as a brief face-to face interview to clarify any

doubts in the questionnaires. We predict the respond rate to be 90% - 100% of the

targeted sample size of 150. Unfortunately, due to time, financial and manpower

constraints, the sample size is limited to that small amount.

5. Execute the sampling process Performing the actual survey with all the above

mentioned steps in full view.

The judgmental sampling technique will be performed at the aforementioned central

locations. The advantages of this is that of low cost, time efficiency, and plenty of

samples to pick from due to the good flow of people traffic. The processing of

information will also be faster due to everything already being documented on the

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questionnaires. It also means that face to face communication between interviewer and

respondent is enabled, which means that the interviewer can screen the most suitable

respondents, and has the chance to pick up more samples should the ones already

collected be faulty (Malhotra et al, 2004, pp. 224-232).

7.2 Method of data collection

The data that is collected in this research is mainly primary data (Shi, Y Z., et al, 2005),

in the form of first-hand data collection questionnaires (survey) but is also backed up by

secondary data such as research and journals spanning the past 10 years. The primary

data in the survey method will be narrowed down to mall intercept. This research will use

mall intercepts because it is less time-consuming and more cost-saving than home

interviews. On the other hand, the research is carried out to analyze how promotionaltools influence consumers product trial with the moderating factor of attitude and

awareness of the tools. The research also needs a clear requirement and identification of

the six Ws which are Who, What, When, Where, Why and the Way of the research

(Malhotra et al., 2004, p.65 and p.66).

7.3 Research instrument

Data collection of this research is being collected via questionnaire. The questionnaires

are to be distributed inside the hypermarkets, grocery stores and shopping area, with

particular focus on people who are sitting down for a meal or resting so chances of good

response are better. The questionnaire itself is modeled after and adapted from various

sources. Buy 1 free 1 and coupon surveys are adapted from Shi T Z., (2005); Loyalty

card is adapted from Mauri C., (2003) and Bellizzi & Bristol, (2004); whereas personal

selling and value pack surveys were adapted from Ndubisi and Chew (2006). A seven

point Likert scale, ranging from 1(strongly disagree) to 7(strongly agree) is used as our

constructive dimensions (Ndubisi & Chew, 2006). The measurement of the impact ofeach promotional tool on product trial will be shown in the questionnaire attached to this

research proposal.

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7.4 Method of processing and analysis

The method of processing and analyzing the data of the impact of promotional tools on

product trial is as follows (Malhotra, 2004, pp. 254-262):

Questionnaire checking: involves reviewing all questionnaires for full completion

and interviewing quality. It is to be inspected to determine its viability and

applicability for use in the study.

Editing: involves reviewing questionnaires with the objective of increasing data

accuracy and precision. It consists of screening questionnaires to identify

illegible, incomplete, inconsistent, or ambiguous responses.

Coding: is the process of grouping and assigning numeric codes to the various

responses to a particular question. It allows the transfer of data from the

qualitative nature of the answers in the questionnaire to numerical, quantitative

data in the computer.

Transcribing: involves transferring data from the questionnaires or coding sheets

on to electronic devices whereby the data is transferred by using mark sense

forms, optical scanning, or computerized sensory analysis.

Descriptive Analysis: It is the transformation of collected data into a summary

format that will make data easily understandable and interpretable. Descriptive

analysis is the foundation for subsequent analysis. Examples include calculation

of averages, frequency distributions, mean, median, standard deviation and

percentage distributions.

Inferential Analysis: This is used to make presumptions about the characteristics

of the target population based on the results generated by the sample data.

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Inferential statistics include hypothesis testing and estimating true population

values based on the sample information collected.

Associative Analysis: It examines if and how two variables are related. For

instance, can the promotional tools induce consumers to trial purchase? Basic

associative analysis methods used in marketing research are cross-tabulations and

correlations.

Graphic representation of data:is used to present data to provide a clearer picture

of the research findings. This explains the cross-tabulation and statistical analysis

to help us identify important findings. Graphs are the best way to show our

findings to the firms management, whereby the most commonly used data

graphics are bar charts and pie charts.

7.5 Method of Data Analysis

There are four main methods for data analysis, which are descriptive analysis, t-test, one

way ANOVA and regression analysis.

Descriptive statistics are statistics that usually connected with a frequency distributionthat assists sum up the information showed in the frequency table. These comprise; first,

measures of central tendency such as mean, median and mode. Secondly, measures of

dispersion such as range, standard deviation, and coefficient of variation. Lastly,

measures of shape such as skewness and kurtosis.

T-test is generally used for creating statements about the means of parent populations. T-

test can be explained as an unvaried hypothesis test using the t distribution that is applied

when the standard deviation is unidentified and the sample size is relatively small. The

test is based on t- statistic. The t statistic presumes that the variable is normally allocated,

the mean is identified and the population variance is predicted and calculated from the

sample.

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One-way ANOVA analysis can analyze the variable which consists of more than two

categories. For example, in this research, researcher had used age group by which age

groups were divided into 5 categories.

The regression analysis method is used as this technique can be used for analyzing the

relationships between a metric dependent variable and one or more metric independent

variable. It is also widely use for explaining variation in things such as market share,

sales, brand preference, and other marketing research in terms of marketing management

variables such as advertising, price, distribution and product quality.

7.6 Research budget

Diagram 4 : Research Budget

Estimated Budget for research

RM RMTransportation costs (Petrol) 100Respondent Incentive 2Printing/photocopying costs 0.1Total 2.1

No. Respondent 150Estimated amount (Incentive + Printing) 315Grand Total 415

By the time of distributing the questionnaires to the shoppers particularly at the shopping

mall or retail grocery outlet, we will need to provide incentive in the form of a small gift

or a bottle of mineral water to each respondent in order to encourage them to fill up the

questionnaires as well as possible. It is estimated that each respondent incentive will cost

roughly RM 2.

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7.7 Questionnaire

QUESTIONNAIRE SURVEY

Dear respondent, we are conducting this survey as part of our marketing research assignment on Impact of

promotional tools on /product trial with attitude and tools awareness as moderating variables. This surveyis carried out purely for academic purposes. It is our word that the results will not be revealed to personsother than the researchers and the examiner for purposes of examination only.

PLEASE ANSWER BY TICKING [ ] AT ONLY ONE OF THE BOXES BELOW, UNLESSINDICATED OTHERWISE.

Section 1 : Accessibility1) How frequently do you shop for grocery?______ times in a month

Section 2 : Expenditure2) How much do you spend on average, on each shopping trip to a retail grocery outlet (eg: Tesco,Carrefour, Giant, TMC)?

____________________

3)What is your usual mode of payment?[ ] Cash[ ] Credit card[ ] Both

Section 3: Ranking & Awareness of Promotional Tools4) Please rank the following promotional tools by ranking number 1as the most money-saving tool, tonumber 5 as the least money-saving tool :[ ] Personal selling[ ] Coupon[ ] Value pack

[ ] Buy 1 free 1[ ] Loyalty card

5) Which promotional tool is more familiar to you, please rank them from 1(most familiar) to 5 (leastfamiliar) :[ ] Personal selling[ ] Coupon[ ] Value pack[ ] Buy 1 free 1[ ] Loyalty card

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Section 4 : Demographic Profile11) Gender[ ] Male [ ] Female

12) Age range[ ] Below 18 yrs

[ ] 1824yrs[ ] 2530yrs[ ] 3140yrs[ ] 41 yrs and above

13) Race[ ] Malay[ ] Chinese[ ] Indian[ ] Others, please specify _________________

13) Level of Education[ ] SPM

[ ] STPM/ Diploma[ ] Under-graduate Degree[ ] Post-graduate

14) Average monthly income[ ] Below RM 1000[ ] RM 1000-RM 1999.99[ ] RM 2000RM 2999.99[ ] RM 3000RM 4999.99[ ] RM 5000RM 9999.99[ ] RM10,000 and above

We are deeply grateful and appreciative of your participation in this survey. Thank you for your time andco-operation.Prepared by,Syarifah Anita IbrahimLim Ying YingSia Kok Liang

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8.0 Result and Discussion

8.1 Demographic Analysis/Findings

Respondent's Gender

55 36.7 36.7 36.7

95 63.3 63.3 100.0

150 100.0 100.0

Male

Female

Total

Valid

Frequency Percent Valid Percent

Cumulative

Percent

Respondent's Age

6 4.0 4.0 4.0

78 52.0 52.0 56.0

27 18.0 18.0 74.0

19 12.7 12.7 86.7

20 13.3 13.3 100.0

150 100.0 100.0

Below18 yrs

18-24 yrs

25-30 yrs

31-40 yrs

41yrs and above

Total

Valid


Cumulative

Percent

Respondent's Race

17 11.3 11.3 11.3

109 72.7 72.7 84.0

18 12.0 12.0 96.0

6 4.0 4.0 100.0

150 100.0 100.0

Malay

Chinese

Indian

Others

Total

ValidFrequency Percent Valid Percent

Cumulative

Percent

Respondent's Level of Education

24 16.0 16.0 16.0

17 11.3 11.3 27.3

49 32.7 32.7 60.0

60 40.0 40.0 100.0

150 100.0 100.0

SPM

STPM/Diploma

Undergraduate Degree

Postgraduate Degree

Total

Valid


Cumulative

Percent

Respondent's Average Monthly Income

37 24.7 24.7 24.7

58 38.7 38.7 63.3

27 18.0 18.0 81.3

12 8.0 8.0 89.3

10 6.7 6.7 96.0

6 4.0 4.0 100.0

150 100.0 100.0

Below RM 1000

RM1000 - RM1999.99

RM2000 - RM2999.99

RM3000 - RM 4999.99

RM5000 - RM9999.99

RM10,000 and above

Total

Valid


Cumulative

Percent

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Although 230 questionnaires were answered by respondents, only 150 questionnaires

have been used in this analysis after the filtering process, as the rest were found to be

incomplete or faulty. Here, with the descriptive analysis, we describe the phenomenon or

characteristics of the above data.

As observed in the opening tables, out of the 150 respondents, 36.7% were male whereas

63.3% were female. The proportion or break-down of respondents ages according to our

five age categories are as follows: below 18 years (4%), 18-24 years (52%), 25-30 years

(18%), 31-40years (12.7%), and 41years and above (13.3%). The respondents racial

percentage break-down is as follows: Chinese consumers (72.7 %), Indians (12%),

Malays (11.3%), and others (4%). The education percentage break-down of our

respondents, as seen above is: SPM (16%), STPM/Diploma (11.3%), Undergraduate

Degree (32.7%), and Postgraduate Degree (40%). Last but not least, the average

respondents monthly income break-down percentages are: Below RM1000 (24.7%),

RM1000-RM1999.99 (38.7%), RM2000 RM2999.99 (18%), RM3000 RM4999.99

(8%), RM 5000 RM9999.99 (6.7%), and RM10, 000 and above (4%).

8.2 Descriptive Statistics

Descriptive Statistics

150 2.8560 1.01270

150 3.1827 1.00012

150 3.3160 1.09894

150 3.7653 .98492

150 3.7653 .78364

150 3.3240 .64783

150

Personal_Selling

Coupons

Loyalty_Card

Value_Pack

Buy_1_Free_1

Product_Trial

Valid N(listwise)

N Mean Std. Deviation

In the questionnaire, we had used a five-point Likert scale to measure the responses of the

consumers, which have been translated into the results shown above. Here, the mean

represents the mean responses in terms of customers perception towards the five sales

promotional tools in the table above. The usual mean average (suitable to a 5-point Likert

scale) that is used as a benchmark is 2.5. Anything above this mean is considered high.

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As seen in the table, the means for all the promotional tools, as well as for product trial

exceed 2.5. This indicates that the consumers are more agreeable than disagreeable

towards these tools, and towards product trial.

The consumers mean perception of personal selling is 2.8560; coupons = 3.1827, loyalty

card = 3.3160; value pack = 3.7653; buy-1-free-1 also 3.7653, and product trial = 3.3240.

The standard deviations of value pack, buy-1-free-1 and product trial are relatively lower

compared to the other variables (all less than 1). This indicates that the means are more

representative of the sample and that the means are explained better. It also implies that

the individual scores are not too dispersed.

The minimum and maximum values in the table are used as base points of comparison.

Here, we can determine that the mean perception of personal selling is the lowest

(2.8560). This indicates that personal selling is least favoured, familiar, or deemed least

influential by the respondents (this is because, on the 5-point Likert scale we used, the

more positive the trait, the higher the value it held, and vice versa). In contrast, the means

for both value pack and buy-1-free-1 were found to be exactly the same, and the highest

(3.7653), indicating a high, or favourable mean perception of the two tools, equally as

much. The implication of this upon marketers is that they are able to realize the

effectiveness and interchangeability of these two promotional tools in their efforts.

The mean also indicates at which point each variable ranks on the Likert scale. Personal

selling ranks closest to neutral (2.5), as its mean is 2.8560, whereas the strongest mean

perceptions attributed to Value pack and buy-1-free-1 (3.7653), rank somewhere in

between agree and strongly agree on the scale. The rest of the promotional tools linger

somewhere between neutral and agree.

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8.3 T-test

Male FemaleTraits Mean Standard deviation P-value Mean Standard deviation

Personal selling 2.9164 0.96430.580(0.788

)

2.821

11.0431

Coupons 3.1709 1.08340.913(1.606

)

3.189

50.9544

Loyalty card 3.5273 1.27960.073(1.602

)

3.193

70.9655

Value pack 3.6727 0.8930.364(0.070

)

3.818

91.0351

Buy 1 free 1 3.7782 0.85170.879(2.068

)

3.757

90.7459

Product trial 3.4182 0.64660.177(0.001

)

3.269

50.6456

Independent Samples Test

.788 .376 .554 148 .580

1.606 .207 -.109 148 .913

1.602 .208 1.805 148 .073

.070 .792 -.911 126.655 .364

2.068 .153 .152 148 .879

.001 .973 1.358 112.739 .177

Equal variances

assumed

Equal variances

assumed

Equal variances

assumed

Equal variances

not assumedEqual variances

assumed

Equal variances

not assumed

Personal_Selling

Coupons

Loyalty_Card

Value_Pack

Buy_1_Free_1

Product_Trial

F Sig.

Levene's Test for

Equality of Variances

t df Sig. (2-tailed)

t-test for Equality of Means

Here, weve used T-Test because we only have two groups, that are, the independent

variables male and female. The dependent variables are the five promotional tools as well

as product trial.

In this analysis, the P-value of each promotional tool has to be determined. From the

analysis above, we can derive that: there is no significant mean difference in terms of perception towards personal

selling between males and females (0.788 > 0.376).

there is also no significant mean difference in terms of perception towards

coupons between males and females (1.606 > 0.207).

there is also no significant mean difference in terms of perception towards loyalty

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card between males and females (1.602 > 0.208).

there is also no significant mean difference in terms of perception towards buy-1-

free-1 promotions between males and females (2.068 >0.0153).

However, based on the comparisons and analysis from the tables above:

There is significant mean difference in terms of respondents perception towards

value pack between males and females (0.070 < 0.0792).

And there is significant mean difference in terms of respondents perception

towards product trial between males and females (0.001 < 0.973).

Implication t-test

The significant differences found between male and female attitudes toward value pack

and product trial indicate that different genders will have different perception/attitude

towards those two variables. This finding helps marketers to work more efficiently as it

helps them to target and use the right tools on the right genders, in order to promote

product trial. Here, we observe and conclude that women significantly have a more

favourable attitude towards value packs and trying new products, compared to men.

8.4 One way ANOVA

ANOVA

.589 .671

2.480 .0471.404 .235

.272 .895

.276 .893

2.945 .022

Between Groups

Between GroupsBetween Groups

Between Groups

Between Groups

Between Groups

Personal_Selling

CouponsLoyalty_Card

Value_Pack

Buy_1_Free_1

Product_Trial

F Sig.

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From the ANOVA table, the six traits are being tested by using age as the independent

variable. Personal selling (F=0.589, p=0.671), loyalty card (F=1.404, p=0.235), value

pack (F=0.272, p=0.895), and buy 1 free 1 (F=0.276, p=0.893) are not significant as all

their p-values exceed the cut-off significance point of 0.05. Only coupons (F=2.480,

p=0.047) and product trial (F=2.945, p=0.022) were found to be significant.

Personal_Selling

20 2.6200

19 2.7263

27 2.80006 2.9000

78 2.9641

.410

Respondent's Age41yrs and above

31-40 yrs

25-30 yrsBelow18 yrs

18-24 yrs

Sig.

DuncanN 1

Subset

for alpha

= .05

There is no significant difference between the five age groups classified in the research in

their attitude towards personal selling as a promotional tool.

Coupons

19 2.8316

20 2.9600 2.9600

78 3.1436 3.1436

27 3.6074

6 3.6333

.406 .081

Respondent's Age31-40 yrs

41yrs and above

18-24 yrs

25-30 yrs

Below 18 yrs

Sig.

DuncanN 1 2

Subset for alpha = .05

There is significant difference between the five age groups in their attitude towards

coupons. According to the table above, those aged 31years and above, have a different

attitude towards coupons compared to those 30 years and below.

Implication Coupons

There is difference in the use of coupons between those 31 years and above, compared to

those under 31. The implication of this data as to why there is difference in the attitudes

and use of coupons, could very well be because those 31 years and above have more

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stable income, or more income as they progress to higher ranks with experience and age,

and thus have less financial constraints. Especially for the older demographics (50 years

and over), their children would be old enough to be earning their own income, thus they

no longer have so many dependents to support. Furthermore, based on research carried

out in the US, in year 2000, consumers saved more than USD $3.6 billion in coupons,

and the highest statistics of coupon users were all above 31 years (Montaldo, D., 2000,

online). Montaldo found that in the US, those within the age of 35- 44years and incomes

ranging from USD $50,000 to USD $76,000 was the demographic group boasting the

most coupon usage. Thus, in the Malaysian context, it could very well be the case that

those 31 years and above have more favourable attitudes towards coupons, compared to

those under 31 years.

Loyalty_Card

20 2.8400

27 3.2222

78 3.4026

19 3.4737

6 3.7000

.308

Respondent's Age41yrs and above

25-30 yrs

18-24 yrs

31-40 yrs

Below18 yrs

Sig.

ScheffeN 1

Subset

for alpha

= .05


their attitude towards loyalty card as a promotional tool.

Value_Pack

19 3.6211

20 3.640078 3.7923

27 3.8519

6 3.9000

.494

Respondent's Age31-40 yrs

41yrs and above18-24 yrs

25-30 yrs

Below18 yrs

Sig.

DuncanN 1

Subset

for alpha

= .05


their attitude towards value pack as a promotional tool.

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Buy_1_Free_1

20 3.6900

27 3.7481

78 3.7590

19 3.8000

6 4.0667

.243

Respondent's Age

41yrs and above

25-30 yrs

18-24 yrs

31-40 yrs

Below18 yrs

Sig.

Duncan

N 1

Subset

for alpha

= .05


their attitude towards Buy-1-Free-1 as a promotional tool.

Product_Trial

20 2.9200

78 3.3256 3.3256

27 3.4148

6 3.5333

19 3.5474

.074 .378

Respondent's Age

41yrs and above

18-24 yrs

25-30 yrs

Below 18 yrs

31-40 yrs

Sig.

Duncan

N 1 2

Subset for alpha = .05

There is significant difference in product trial between those aged 41years and above

compared to those 40 years and below.

Implication Product trial

This result holds water as it is natural human behaviour that the older or more mature one

becomes, the less tendency there is to be adventurous. Here, it can be observed that those

over 40 years are less inclined to try new products, as they are more comfortable with

their tried and tested products. Here, it can also be observed that familiarity with a

particular brand or product purchase is more important compared to sales promotion forthose 40 and above, when it comes to product trial. Yet another plausible observation is

that those 40 years and above tend to be more brand-loyal.

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Conclusion One Way ANOVA

Personal selling, Loyalty Cards, Value packs, Coupons and Buy-1-Free-1 promotional

tools affect all age groups, but there is an observed difference in the response between

those aged 31 years and above compared to younger groups when it comes to Coupons.

However, all aged groups are influenced in their attitude towards product trial by the

different promotional tools, in one way or another.

8.5 Regression Analysis

Model Summaryb

.705a .480 .000 2.152Model1

R

Adjusted

R Square Sig. F Change

Change

Statistics

Durbin-

Watson

Predictors: (Constant), Buy_1_Free_1, Personal_Selling,

Loyalty_Card, Coupons, Value_Pack

a.

Dependent Variable: Product_Trialb.

In regression analysis, the independent variables are buy-1-free-1, personal selling,

loyalty card, coupons, and value pack. The dependent variable is product trial.

Adjusted R square indicates that the independent variables, namely buy 1 free 1, personal

selling, loyalty card, coupons, value pack predict 48% of the changes in product trial.

ANOVA

28.530 .000Regression

Model

1

F Sig.

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Coefficientsa

.822 .412

.183 3.067 .003

.263 4.334 .000

.339 5.612 .000

.291 4.653 .000

.270 4.157 .000

(Constant)

Personal_Selling

Coupons

Loyalty_Card

Value_Pack

Buy_1_Free_1

Model

1

Beta

Standardized

Coefficients

t Sig.

Dependent Variable: Product_Triala.

Here, we observe that all the promotional tools are significant to product trial (all of the

p-values fall under 0.05). That is, all the independent factors have contributed to the

dependent factor.

There is a significantpositive relationship between personal selling and product trial,

(t=3.067, p=0.003) at 5% significant level.

There is a significantpositive relationship between coupons and product trial, (t=4.334,

p=0.000) at 5% significant level.

There is a very strong significant positive relationship between loyalty card and

product trial, (t=5.612, p=0.000) at 5% significant level.

There is a significant positive relationship between value packand product trial,


There is a significant positive relationship between buy-1-free-1 and product trial,


Implication Regression analysis

By looking at the standardized coefficients beta, it shows personal selling (0.183),

coupons (0.263), loyalty card (0.339), value pack (0.291), and buy 1 free 1 (0.270).

Although all the promotional tools have a positive impact on product trial, the extent, or

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strength of their impact on product trial differs. Amongst the five tested sales promotional

tools, loyalty card (0.339), is shown to be the most effective promotional tool influencing

product trial, followed by value pack (0.291), buy-1-free-1 (0.270), coupons (0.263), and

the weakest - personal selling (0.183).

The regression analysis helps marketers determine which tool is most efficient in

inducing customers to try their products. It must be noted, however, that the analysis has

different implications and applications, depending on certain factors. For example, the

nature of the product determines the choice of sales promotional tool. When it comes to

expensive items in a certain product line especially, for example, perfumes or cars, buy-

1-free-1 is usually inapplicable, thus it will not be as effective a tool in these types of

products, compared to its effectiveness on items such as those in grocery stores.

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9.0 Limitations and Future Research

This study has provided useful information for users of this study. It has been able to

present and highlight the relationships between product trial and the five promotional

tools, namely, Personal Selling, Loyalty Card, Coupons, Buy-1-Free-1, and Value pack.

There were few, however, crucial limitations that were faced during the analysis and

preparation of the report.

TO be edited:

Time limit was one of the major limitations as it constraints the research to be limited,

therefore, more surveys could not be conducted to have a more reliable statistical result

of how consumers spending capacity varies accordingly with the different promotional

tool available. Another limitation faced was the budget given for the research. The budget

limit disables the research to expand further with the limited survey materials.

The research design used for this research was questionnaire. The questionnaire was

close-ended questions which do not allow researchers to further understand the behavior

of consumers in spending capacity in relation to promotional tools. The repetition of the

structure of the questions in the questionnaire could result surveyors not answering

properly towards the end of the questions. There were also few questionnaire results thatwere inconsistent. Further alterations in the structure of the questionnaire would improve

the findings from the questionnaires.

In this survey only five promotional tools were used to analyze the spending capacity of

respondents, also be concern that there are other promotional tools not analyzed in this

survey. In order to result a reliable conclusion, other promotional tools should be

analyzed along with the other factors (besides awareness of the tools, and attitudes

towards the tools) that would affect the effectiveness of the tools, such as the spending

capacity of consumers. In addition, more psychological-linked marketing research could

be carried out in order to give more depth to the research.

Furthermore, there was a lack of easily-accessible statistical data to support some of the

observations.

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Product loyalty could be tested as another factor because it impacts on the selection of

product with the given promotional tool at that time being. For example, the same

product of different brands may offer different promotional tool at the same time and this

will affect consumers choice that affects their willingness or tendency to try new

products as well. Therefore, it is recommended that future research studies the

moderating effect of product loyalty and brand choice in relation to the choice of

promotional tools that is most effective on consumers.

In Malaysia, many consumers are unaware of the importance of these surveys and

therefore do not answer at their best understanding. Consumers may be reluctant to

participate in the survey as they feel it does not matter to them. Some consumers may not

even understand the questions being asked. Researchers, or the staff conducting the

survey should be well trained to explain the importance of the questionnaires at the

beginning of the questionnaire sheet so that consumers awareness increases and thus

answer more effectively.

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10.0 Recommendations

This research has investigated the effectiveness of five promotional tools used in

Malaysias grocery markets to induce product trial. Firstly as the findings show that male

and female shoppers respond differently towards value packs and product trials due to

variation in perceiveness of promotional tools. This is the gender differences that

underpinning the relation marketing and customer loyalty. Hence, it is recommended that

the marketers can work on the firm-customer relationship especially on the gender

differences as to persuade both gender towards product trial and gain competitive

advantage (Ndubisi 2006).

Research shown that coupon is the least effective tool and this can be supported by action

of Procter & Gambler where they reduce the coupon use few years ago (Gilbert & Jakaria2002) However, our research contradicted with the research where we found out shoppers

aged above 30 has a positive attitude towards coupon. Hence, it is suggested that the

marketers can make use of the coupons as a promotional tool that can be targeted at those

aged 30 and above, as they perceived it as an effective tool towards saving money

Our findings also indicates that shoppers above 40 less willing to try a new product given

all the promotional tools in place. Therefore, the marketers should use other tool such as

refunds and reorganize their marketing plans when promoting new product that targeted

at this group of shoppers.

Finally, all the five promotional tools would result in product trial. The loyalty card is the

most effective tool according to out research result. This is due to the customers can get

lower price or price discount or get the redemption points to exchange for gifts by

becoming loyalty card holder. Some stores even issue loyalty card as to retain loyal

customers and enhance their store image (Bellizi & Bristol 2004). Hence, it is

recommended that the marketers can issue loyalty card as it is the most effective tool.

Personal selling is the least effective tool and hence the marketers should reduce the

budget on it and increase the budget on other promotional tools that are more effective.

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11.0 Conclusion

In conclusion, this research makes clear of the response of Malaysian shoppers towards

the promotional tools and also identifies the most effective tool where its main strength

lies in encouraging product trial. Specifically, the study has generated a comparison of

the effectiveness of the different promotional tools in inducing one particular buying

behaviour The comparison in particular in this research should help marketers appreciate

which tool is relatively more effective in obtaining a given promotional outcome.

Loyalty card are the most efficient promotional tools where follows by value pack, buy 1

free 1, coupons, and personal selling. This ranking tells us the shoppers prefers tools that

can reward them with points and discount such as the loyalty card as well as save money

such as value pack and buy 1 free 1.It also shown that shoppers prefer those tools that

offer greater shopping convenience benefits such as loyalty card, value pack and Buy-1-

Free-1 (Ndubisi & Chew 2006). Besides that, all these promotional tools can facilitate

brand recognition and brand recall for future purchase (Gilbert & Jakaria 2002). Value

packs and Buy-1-Free-1, the second and third most effective tools, provide additional

amount for free and therefore the shoppers will purchase if it represent a fair deal for

value of money (Gilbert & Jakaria 2002). Coupon have less significant effect on product

trial as compared to other tools as it is time consuming and requires more effort thanbuying products on sale (Ndubisi & Chew 2006) Hence, the marketers should create

greater awareness of benefits for these two tools.

Thus, the marketers should conduct a research on promotional tools before decide which

one to use in order to ensure their effectiveness and usefulness. By the way, the

organizations should also prudent in planning, budget and selection of promotional tools

where the most effective tools will be selected and included in the promotional plan of

the organization.

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12.0 References

Journals

Bellizzi, J.A. and Bristol T. (2004), An assessment of supermarket loyalty cards in one

major US market,Journal of Consumer Market, Vol. 21, No. 2, pp. 144-154.

Gilbert, D.C. and Jackaria, N. (2002), The efficacy of sales promotions in UK

supermarkets: a consumer view,International Journal of Retail & Distribution

Management, Vol. 30, No. 6, pp.315-322.

Honea, H. and Dahl, D.W. (2005), The Promotion Affect Scale: Defining the Affective

Dimensions of Promotion,Journal of Business Research, Vol. 58, pp. 543-551.

Kim, S.F. and Merrilees, B. (1998), Cultural Values and Personal Selling, a comparison

of Australia and Hong Kongs retailers promotion preferences, International Marketing

Review, Vol. 15, No. 4, pp. 246-256.

Laroche, M. et al. (2003), A model of consumer response to two retail sales promotion

techniques,Journal of Business Research, Vol. 56, pp.513-522.

Lee, C.W. (2002), Sales promotion as strategic communication: the case of Singapore

Journal of Product and Brand Management, Vol. 11, No. 2, pp.103-114.

Liao, S.L. (2006), The effects of non monetary sales promotions on consumer

preferences: The contingent role of product category, The Journal pf America Academy

of Business, Cambridge, Vol.8, No.2, pp. 196-203.

Mauri, C. (2003), Card Loyalty: A new emerging issue in grocery retailing,Journal of

Retailing and Consumer Services, Vol. 10, pp. 13-25.

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Ndubisi N. O. and Chew T M. (2006), Awareness and usage of promotional tools by

Malaysian consumers: the case of low involvement products, Management Research

News, Vol.29 No. 1/2, pp. 26-40.

Ndubisi N. O. (2006), Effect of gender on customer loyalty: a relationship marketing

approach, Marketing Intelligence & Planning, Vol.24 No. 1, pp. 48-61.

Ndubisi N. O. and Chew T M. (2005), Customers behavioural responses to sales

promotion : the role of fear of losing face, Asia Pacific Journal of Marketing and

Logistics, Vol.17 No. 1, pp. 32-49.

Rowley, J. (1998), Promotion and marketing communications in the information

marketplace,Library Review, Vol. 47, No. 8, pp. 383-387.

Shi, Y.Z., Cheung K.M. & Prendergast, G. (2005), Behavioural response to sales

promotiontools, A Hong Kong study, International Journal of Advertising, Vol. 24, pp.

467-486.

Textbooks

Kotler, P. (2000), Marketing Management, Prentice-Hall International, London, United

Kingdom.

Malhotra, N.K., Hall, J., Shaw, M. and Oppenheim, P. (2004), Essentials of Marketing

Research: An Applied Orientation, Pearson/Prentice Hall, New South Wales, Australia.

Shimp, T.A. 2000, Advertising promotion, supplementary aspects of Integrated

Marketing Communications, 5th edition, The Dryden Press, United States.

Website

Montaldo, D. L., (2000). Coupon usage Statistics 2000, viewed 5th October 2006
http://couponing.about.com/cs/aboutcouponing/a/couponusage2000.htmhttp://couponing.about.com/cs/aboutcouponing/a/couponusage2000.htm

marketing research method by lim kok sia

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