BBA 4007Total Quality Management

AU LEE YAU 930524-01-6857 200033

PHILIP TAN

JANUARY 2015

TABLE OF CONTENTTitlePages

Content1

1.0Chapter 1.01.0 Introduction1.1 Overview of SME1.2 Coverage of definition for SMEsin your country1.3 Overview of Packaging1.4 Overview of Purchase Decisions1.5 Overview of Price1.6 Overview of Customer Loyalty1.7 Problem Statement1.8 Purpose of the Study1.9 Significant of The Study1.10 Limitation of the Study

2-8

2.0Chapter 3.03.0 Introduction3.1 Hypothesis3.2 Research Design3.3 Sampling Design3.4 Data Collection3.5 Question Design3.6 Scale Type Used3.7 Pilot Test

9-14

Coursework18-22

1.0 Introduction Chapter 1 highlights on the explanation of the background study which is the main ideas on the scope of the study is clarified. Then, problem statement on this research is stated followed by the research question, objectives of the study, overview of packaging, purchase decision, overview of price, and also overview of customer loyalty, significance of the study, limitations on conducting this study as well as the organization of the study. 1.1 Overview of SMESmall and medium enterprises (SMEs) are generally thought to play a crucial role in driving economic growth in both developing and developed countries (Beck, Kunt and Ross, 2003). Thus, it remains unequivocally crucial to understand the categories of contribution of small businesses at a local level and its impact on overall economic growth. Kenya a developing nation for instance, still has a poor statistical base of the small businesses but there can be little doubt about the relative significance these small enterprises have towards its economy. Even so SMEs in Malaysia have been described as efficient and prolific job creators and the seeds of big businesses; their increased development accelerates the achievement of wider economic and socio-economic objectives such as poverty alleviation. Previously in Malaysia, there was no standard definition as to what Small and Medium Enterprises(SMEs)were. VariousagenciesandbankinginstitutionsdefineSMEs according to their own standards (although there is a significant degree of overlap in criteria).In 2005, however, the National SME Development Council (NSDC) laid out two main criteria: annual sales turnover and number of employees, although some banks also list the amount of shareholders funds present as another criterion. Therefore, these criteria were to be adopted by all Government ministries and agencies, along with financial institutions. As it can be seen, SMEs are divided up into micro, small and medium sized enterprises respectively. Therefore, the National SME Development Council has, on 9 June 2005, approved the common definition of SMEs across economic sector, for adaption by all Government Ministries and Agencies involved in SME development, as well as financial institutions.

1.2 Coverage of definition for SMEs in Malaysia An additional 8,120 establishments set to be classified as SMEs, bringing the share of SMEs to total establishments from 97.3% to 98.5%. The Prime Minister of Malaysia, Y.A.B. DatoSri Mohd Najib Tun Haji Abdul Razak has announced a new definition of SMEs which will be effective 1 January 2014. The announcement was made right after the 14th National SME Development Council Meeting which the Prime Minister had chaired on 11 July 2013. The Council had approved the proposal to raise the qualifying threshold for sales turnover and employment of SMEs for all economic sectors in the country. The manufacturing sector, sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers, services and other sectors, sales turnover not exceeding RM 20 million or full-time employees not exceeding 75 workers. Howerver, The new definition is an outcome of a comprehensive review, taking both top-down and bottom-up approaches that included technical analysis, global benchmarking and stakeholder engagement. In order to have a better clarity in the new definition, a series of focus group discussions were held with close to 60 stakeholders including industry associations from all sectors, Ministries and Agencies, regulators and financial institutions. The classification is further simplified into only two simple categories - manufacturing, and services and other sectors. A quick win that will result from this new definition is the fact that more firms, particularly those from the oil and gas category as well as other types of the services sector, will now be classified as SMEs. Therefore, with this, approximately more than 8,000 establishments will now be classified as SMEs, increasing the share of SMEs to total establishments from 97.3% currently to 98.5%. This will undoubtedly facilitate the countrys transformation into a high-income nation envisioned by the SME Master plan, resulting in higher contribution to GDP, employment and exports. The new definition which will only be implemented next year will give some required space to the Ministries and Agencies, financial institutions and other entities related to the development of SMEs to make the necessary changes to their systems.

1.3 Overview of PackagingFirst of allThe Packagingis the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging is more than just your product's pretty face. Your package design may affect everything from breakage rates in shipment to whether stores will be willing to stock it. The original slanted-roof metal container used for Log Cabin Syrup was changed to a design that was easier to stack after grocers became reluctant to devote the necessary amounts of shelf space to the awkward packages.In a typical supermarket a shopper passes about 600 items per minute, or one item every tenth of a second. Thus, the only way to get some consumers to notice the product is through displays, shelf hangers, tear-off coupon blocks, other point-of-purchase devices, and, last but not least, effective packages. Considering the importance placed on the package, it is not surprising that a great deal of research is spent on motivational research, color testing, psychological manipulation, and so forth, in order to ascertain how the majority of consumers will react to a new package. Based on the results of this research, past experience, and the current and anticipated decisions of competitors, the marketer will initially determine the primary role of the package relative to the product.

ThereforePackaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business, and institutional, industrial, and personal use. Labeling may be required to include certain information on the label of your product when it is distributed in specific ways. For example, labels of food products sold in retail outlets must contain information about their ingredients and nutritional value. Physical protection in the objects enclosed in the package may require protection from, among other things, mechanical shock, vibration, electrostatic discharge, compression, temperature, Barrier protection is a barrier from oxygen, water vapor, dust, etc., is often required. Permeation is a critical factor in design. Some packages contain desiccants or oxygen absorbers to help extend shelf life. Modified atmospheres or controlled atmospheres are also maintained in some food packages. Keeping the contents clean, fresh, sterile and safe for the intended shelf life is a primary function. A barrier is also implemented in cases where segregation of two materials, prior to end use is required, as in case of special paints, glues, medical fluids etc. At consumer end, the packaging barrier is broken or measured amounts of material removed for mixing and subsequent end use. Nevertheless, Containment or agglomeration used Small objects are typically grouped together in one package for reasons of efficiency. For example, a single box of 1000 pencils requires less physical handling than 1000 single pencils. Liquids, powders, and granular materials need containment. Even so, The Information transmission in Packages and labels communicate how to use, transport, recycle, or dispose of the package or product. With pharmaceuticals, food, medical, and chemical products, some types of information are required by governments. Some packages and labels also are used for track and trace purposes. Even so, most items include their serial and lot numbers on the packaging, and in the case of food products, medicine, and some chemicals the packaging often contains an expiry/best-before date, usually in a shorthand form. Packages may indicate their material with a symbol. The packaging and labels can be used by marketers to encourage potential buyers to purchase the product. Package graphic design and physical design have been important and constantly evolving phenomenon for several decades. Marketing communications and graphic design are applied to the surface of the package and the point of sale display. Most packaging is designed to reflect the brand's message and identity.To Sum up, the new products are introduced into the marketplace every year. So, the packaging as a marketing tool in our economy transforms from a developing economy into more of a developed economy we shall be seeing more products and more diversity on the shelves. The right packaging with the right message will rise above the competitive landscape. Communicating this message on product packaging is a time consuming and difficult challenge. As stated on many previous occasions this is where a specialist package design firm or consultant becomes an essential part of your team, combined with the deep understanding of what the consumer wants and needs from their product packaging. Moreover, Security Packaging can play an important role in reducing the security risks of shipment. Packages can be made with improved tamper resistance to deter tampering and also can have tamper-evident features to help indicate tampering. Packages can be engineered to help reduce the risks of package pilferage or the theft and resale of products: Some package constructions are more resistant to pilferage and some have pilfer indicating seals. Counterfeit consumer goods, unauthorized sales (diversion), material substitution and tampering can all be prevented with these anti-counterfeiting technologies. Packages may include authentication seals and use security printing to help indicate that the package and contents are not counterfeit. Using packaging in this way is a means of loss prevention. in addition to Convenience in Packages can have features that add convenience in distribution, handling, stacking, display, sale, opening, reclosing, use, dispensing, reuse, recycling, and ease of disposal furthermore, Portion control needed Single serving or single dosage packaging has a precise amount of contents to control usage. Bulk commodities (such as salt) can be divided into packages that are a more suitable size for individual households. It also aids the control of inventory: selling sealed one-litter-bottles of milk, rather than having people bring their own bottles to fill themselves.

1.4 Overview of purchase decision These stages were first introduced byJohn Dewey(1910).[3]The stages are:1. Problem/Need recognition2. Information search3. Evaluation of alternatives4. Purchase decision5. Post-purchase behavior

First, Problem/Need-recognition is the first and most important step in the buying decision. Nevertheless, without the recognition of the need, a purchase cannot take place. The need can be triggered by internal stimuli or external stimuli According to Maslow's hierarchy, only when a person has fulfilled the needs at a certain stage, can he or she move to the next stage. The problem must be addressed through the products or services available. It's how the problem must be recognized. Then, the information search stage is the next step that the customers may take after they have recognized the problem or need in order to find out what they feel is the best solution. This is the buyers' effort at searching the internal and external business environments to identify and observe sources of information related to the focal buying decision.Next, at this stage, consumers evaluate different products/brands on the basis of varying product attributes, and whether these can deliver the benefits that the customers are seeking. Another factor that influences the evaluation process is the degree of involvement. For example, if the customer involvement is high, then he/she will evaluate a number of brands; whereas if it is low, only one brand will be evaluated.Moreover, this is the fourth stage, where the purchase takes place. According to Kotler, Keller, Koshy and Johan (2009), the final purchase decision can be disrupted by two factors: negative feedback from other customers and the level of motivation to comply or accept the feedback However, because his good friend, who is also a photographer, gives him negative feedback, he will then be bound to change his preference. Secondly, the decision may be disrupted due to unanticipated situations such as a sudden job loss or the closing of a retail store. However, the post-purchase behaviour in these stages are critical to retain customers. In short, customers compare products with their expectations and are either satisfied or dissatisfied. This can then greatly affect the decision process for a similar purchase from the same company in the future, mainly at the information search stage and evaluation of alternatives stage. If customers are satisfied, this results in brand loyalty, and the information search and evaluation of alternative stages are often fast-tracked or skipped completely. As a result, brand loyalty is the ultimate aim of many companies.

1.5 Overview the price To begin with a well-chosen price should do three things and the firstly achieve the financial goals of the company for example the probability. In the other hands, we fit the realities of the marketplace. There will customer buy that price?The function of the price also support a products market positioning and be consistent with the other variables in the marketing mix. In the second place, the price is influenced by the type of distribution channel used, the type of the promotions used, and the quality of the product. In my opinion, the price will usually need to be relatively high if manufacturing is expensive, distribution is exclusive, and the product is supported by extensive advertising and promotional campaigns. To increase the effectiveness promotion, or an energetic by distributor using the low cost price can be a viable substitute for the product quality, effectiveness promotion, or an energetic selling effort by distributors. Finally, the marketers point of view, and well-organized price is a price that is very close to the maximum that customers are prepared to pay. Nevertheless, a good pricing strategy would be the one that could balance between the price floor mean the price below which the organization ends up in losses and the price ceiling mean the price be which the organization experiences a no-demand situation. In economic terms, it is a price shift most of the consumer economic surplus to the producer.

1.6 Overview of customer loyalty To start with keeping customers makes good business sense but it's not always easy. Here are our tips on how you can keep your customers coming back to your business. First, its easier to up-sell and cross-sell to loyal customers. Loyal customers are familiar with their favourite brands and more willing to try out and explore recommendations and new products. Marketing Metrics found out that the probability of selling something to new prospects is only about 5-20%, whilst the probability of selling something to an existing customer is 60-70%. For the same amount of effort to sell something, expected sales as such is higher from selling to your loyal customers. Moreover, Customer loyalty insulates your business from price competition.

Secondly, But through loyalty, it reduces the effect of price sensitivity on your customers and in the words of Warren Buffett, it gives you an economic moat from losing customers to competitors. It takes more than reducing prices to lure your loyal customers away. Loyalty also helps in the opposite direction when prices have to go up. Then, Loyal customers are your free marketing agent, brand ambassador to help build your brand Loyal customers are more inclined to share their positive experience and making recommendation of a business to their friends. They love your brand, they speak about your brand and humans are generally more influenced by people they are familiar with. Therefore, lower costs to acquire new customers. It is 6 to 7 times more expensive to acquire new customers than servicing your regulars. Businesses have to advertise to attract their attention, incentivize them with discounts, educate them about their brand and product, provide personalised services which all amounts to costs. By focusing on customer loyalty and building your brand, your loyal customers will be a strong influencer to get new prospects to try out your brand, substantially reducing the associated costs in acquiring new customers. Apart from that, loyal customers provide honest, quality feedbackFeedback is crucial to know where and how to improve. Loyal customers, they love your brand. They wouldnt hesitate or be shy to provide their honest feedback, especially negative ones as they want to see your brand thrive and serve them better. In many instances, new customers visit your brand, try it out, have some dislikes or unpleasant experience and they tend not to voice it out and telling themselves that they will not return again. You hardly get feedback loop from new customers and this is detrimental to your product and service quality.

1.7 Problem StatementThe cost is the main problems to the SMEs bring to see the effect of the packaging to the SME products, to identify whether the customers are still loyal to the product after the re-packaging to the product. The Price of the product will increase after the new packaging process, the research will look whether the consumers are willing to pay more for the SME product even though the price is increase. Next, the product using the new packaging include to see the customer behaviour in buying SME product.

1.8 Purpose of the Study In this case, we need to study the aim is to determine the effect after SME product has a new packaging, and also to aim the customer behaviour on the purchasing the product, at least to seek the loyalty of the customer after the new packaging. There are four types of buying behaviour, Complex buying behaviour is where the individual purchases a high value brand and seeks a lot of information before the purchase is made. Habitual buying behaviour is where the individual buys a product out of habit e.g. a daily newspaper, sugar or salt. Variety seeking buying behaviour is where the individual likes to shop around and experiment with different products. Dissonance reducing buying behaviour is when buyers are highly involved with the purchase of the product, because the purchase is expensive or infrequent. There is little difference between existing brands an example would be buying a diamond ring, as people believe there is little difference between diamond brand manufacturers.

1.9 Significant of the study To finding this research will contribute to SMEs on how to implement strategies that will fulfil the customers need and ultimately win their loyalty. Therefore, this research also seeks the effect of packaging with three variables that is a price, purchasing decision and customer loyalty.

1.10 Limitation of the Study The limitation must have generalizability of the finding, to get the research only focused at one place or only one state, therefore a more extensive study along the same procedures will be necessary if any definite conclusion have made. The problem with data collection is talk about some are the questionnaire distributed and the incomplete questionnaire we will not receive anywhere. Besides, the time constraints, the research was only give 4 months period to finish and submits this findings. Lastly, the respondent cooperative means the accuracy of the data collected was not sincerely and accurately answered by the respondents.

3.0 Introduction This chapter is about the methodology of the research. The purpose of this chapter is to present the philosophical assumptions underpinning this research, as well as to introduce the research strategy and the empirical techniques applied. The chapter defines the scope and limitations of the research design, and situates the research amongst existing research traditions in information systems. The chapter will begins by describing the hypothesis, research design, sampling design, the data collection, question design, scale type used, and pilot test. In this chapter also will give explanation on how the methods of analysis were applied to determine the reliability and validity of the measurement instrument.

3.1 Hypothesis A hypothesis can be explained is a proposed explanation for a phenomenon. For a hypothesis to be a scientific hypothesis, the scientific method requires that one can test it. Scientists generally base scientific hypotheses on previous observations that cannot satisfactorily be explained with the available scientific theories. Even though the words "hypothesis" and "theory" are often used synonymously, a scientific hypothesis is not the same as a scientific theory. A working hypothesis is a provisionally accepted hypothesis proposed for further research. The relationship is conjectured on the basic of the network of association established in the theoretical framework formulated for the research study. The testing the hypothesis and confirming the confirming the conjectured relationships, it is expected that found to correct the problem encountered. The following hypothesis is generated:

1. The first hypothesis is stated as follows:There is relationship between the packaging and customer purchase decision?There is no relationship between the packaging and the price or the customer loyalty?

3.2 Research Design In this section, we will discuss about the sampling method that used in this research and about the population of the research data. Cross sectional survey approach will be used in gathering the data for the purpose to meet the research objective and finally provide finding for this research. In this research, the dependent variable is packaging while the variables are customer purchase decision, price, and customer loyalty. This study utilized the descriptive method of research. As widely accepted, the descriptive method of research is a fact-finding study that involves adequate and accurate interpretation of findings. Descriptive research describes a certain present condition. Relatively, the method is appropriate to this study since it aims to describe the present condition of technical analysis as it is used in the stock market. The technique that was used under descriptive method is the normative survey approach and evaluation, which is commonly used to explore opinions according to respondents that can represent a whole population. The survey is appropriate in this study because it enables the researcher in formulation of generalizations. Specifically, two types of direct-data survey are included in this study. These are questionnaire survey and interviews. Interviews with researchers, venture capital practitioners, and other colleagues in the academy were conducted to provide further insight about the results of the survey. The direct-data type of survey is a reliable source of first-hand information because the researcher directly interacts with the participants. The questionnaire survey respondents were given ample time to assess the challenges facing the real estate in HK. Their own experiences with real estate in practice are necessary in identifying its strengths and limitations.

3.3 Sampling Design Sampling is an important thing methodology in doing the research. The main aim is to provide various types of statistical information of a qualitative or quantitative nature about the whole by examining a few selected units. The sampling method is the scientific procedure of selecting those sampling units which would provide the required estimates with associated margins of uncertainty, arising from examining only a part and not the whole. For this research, consumer all around Johor Jaya was selected as the respondent of this research.

3.4 Data Collection For this study, although there were many possible way to communicate with respondent, such as using internet to communicate and any more. There are also another way is self-administrated questionnaire. Besides, it considered to be the most popular method used given the time and also constrain in budget to finish the project. On the contrary, since the questionnaire was highly structured and relatively straightforward, respondent will be able to complete the survey on their own without help from the researcher. This is because it will increase the convenience when complete the survey.

3.5 Question Design This section divide the questionnaire into two major types. firstly, the open-ended question have advantages Facilitates enhanced levels of cooperation and understanding, Provides the opportunity for others to express themselves more openly and honestly, Encourages others to provide information including their ideas, concerns &feelings, Assists in creating a positive learning and sharing experience, Allows others to share what is present for them, Shows respect and interest in others ,Encourages others to flow with their thoughts and feelings& allowsyou to support this flow, Demonstrates your willingness to invest time with others. Secondly, the benefit of the closed question is about it is easier and quicker for respondents to answer, the answers of different respondents are easier to compare, answers are easier to code and statistically analyse, the response choices can clarify question meaning for respondents, respondents are more likely to answer about sensitive topics, there are fewer irrelevant or confused answers to questions, less articulate or less literate respondents are not at a disadvantage, replication is easier. There are also consist two part. Part one is related to the demographic measurement, and part two asked a question related to the packaging, customer purchase decision, price, and customer loyalty.

3.6 Scale type usedA Likert scale is a psychometric scale commonly involved in research that employs questionnaires. It is the most widely used approach to scaling responses in survey research, such that the term is often used interchangeably with rating scale, or more accurately the Likert-type scale, even though the two are not synonymous. The scale is named after its inventor, psychologist Resins Likert. Likert distinguished between a scale proper, which emerges from collective responses to a set of items, and the format in which responses are scored along a range. Technically speaking, a Likert scale refers only to the former. The difference between these two concepts has to do with the distinction Likert made between the underlying phenomenon being investigated and the means of capturing variation that points to the underlying phenomenon. When responding To a Likert questionnaire item, respondents specify their level of agreement or disagreement on a symmetric agree-disagree scale for a series of statements. Thus, the range captures the intensity of their feelings for a given item. The main advantage of Likert Scale questions is that they use a universal method of collecting data, which means it is easy to understand them. Working with quantitative data, it is easy to draw conclusions, reports, results and graphs from the responses. Furthermore, because Likert Scale questions use a scale, people are not forced to express an either-or opinion, rather allowing them to be neutral should they so choose. Once all responses have been received, it is very easy to analyse them. Last but not least, it is very quick and easy to run this type of survey and it can be sent out through all modes of communication, including even text messages. All scale question are used numbered scales. Each item in part two used a five point Likert scale that anchors from one 1. Strongly disagree2. Disagree3. Not Sure4. Agree5. Strongly Agree

3.7 Pilot Test A questionnaire should be pilot with a reasonable sample of the respondent who represents the target population or who closely resemble the target population. The benefits is to detect the weakness in design and instrumentation. In the other hands, it may also provide proxy data for selection of profitability sample. There are total 100respondent were used for the pilot test. The questionnaire was distributed among the consumers around Johor jay in order to determine the reliability of the instrument that used to measure the variable of this research before performing data collection to achieve the objectives for this research.Table: Summary of the questionnaireVariableNo.of itemsItems

Section A:demographic

Age1Section A, item 1

Gender 1Section A, item 2

Marital status1Section A, item 3

Race1Section A, item 4

Religion1Section A, item 5

Educational Level1Section A, item 6

Occupation1Section A, item 7

Monthly income1Section A, item 8

Living Area1Section A, item 9

Do you buy SME product1Section A, item 10

Section B

Packaging5Section B, item 1-5

Purchase decision5Section B, item 6-10

Price 5Section B, item 11-15

Customer loyalty5Section B, item 16-20

Page 1 of 23