Consumer Purchase Decision In The Malaysian Retail Market: A Study Of Rm2 Stores

doi:10.32890/ijms2023.30.1.4

Study

Innovation & MarketsRecent

Perceived value drives purchase decisions in value-focused retail environments

In single-priced retail settings, a customer's perception of overall value is the most significant driver of their purchasing choices.

International Journal of Management Studies · 2023

01

Key Findings

01Corporate Social Responsibility (CSR) has a significant positive effect on purchase decisions.
02Sales promotion has a significant positive effect on purchase decisions.
03Perceived value has a significant positive effect on purchase decisions, and is the strongest influence.
04Service quality has a significant positive effect on purchase decisions.
05Social media marketing does not have a significant effect on purchase decisions.

02

Application

Design takeaway

Focus on maximizing the perceived value proposition for customers, supported by effective sales promotions and quality service, as these are the primary drivers of purchase decisions in this market segment.

How to apply

Retailers can conduct their own customer surveys to identify the most impactful factors for their specific product and market, then tailor their strategies accordingly.

Project actions

01When researching consumer behavior, clearly define the market segment you are studying (e.g., budget retailers, luxury brands).
02Use quantitative methods like surveys to measure the impact of different factors on purchasing decisions.

03

Method & Evidence

AimTo identify which factors most significantly influence consumer purchase decisions in single-priced retail stores.

MethodQuantitative survey research

ProcedureA survey was conducted using questionnaires distributed to customers of single-priced stores. Data was analyzed using statistical software to determine the impact of various factors on purchase decisions.

Sample550 customers

ContextRetail market, specifically single-priced (RM2) stores in Malaysia.

Variables

IV["Corporate Social Responsibility (CSR)","Sales Promotion","Social Media Marketing","Perceived Value","Store Environment","Service Quality"]

DVConsumer Purchase Decision

CV["Type of retail store (single-priced)","Geographic location (Malaysia)","Customer demographics (implied by store patronage)"]

04

Strengths & Limitations

Strengths

+Large sample size (550 participants) increases statistical power.
+Quantitative methodology allows for objective measurement of factor impacts.

Limitations

This study was conducted in Malaysia and may not reflect consumer behavior in other countries. The 'RM2' price point is specific and might not apply to broader value retail concepts.

Reliability & validity

The study mentions calculating the validity and reliability of measurement items, suggesting a focus on ensuring the accuracy and consistency of the survey's results.

Think critically

How might the relative importance of these factors change if the price point was slightly higher, or if the product category was significantly different (e.g., electronics vs. household goods)?

05

Design Principles

"In value-driven markets, prioritize tangible benefits and perceived worth over intangible or environmental factors."

Understanding the key motivators for consumers in specific market segments, like value stores, is crucial for developing effective marketing strategies and product offerings. This insight helps businesses allocate resources to the factors that yield the greatest impact on sales and customer loyalty.

06

What This Means for Your Design

For stores selling items at a set low price (like RM2 shops), what matters most to customers is how much they feel they are getting for their money. Good deals, good service, and feeling like the company does good things also help, but the overall feeling of value is the biggest reason people buy.

How to use in your project

1.Reference this study when discussing the importance of perceived value in your design project's market analysis, especially if your project targets a price-sensitive audience.

07

Add to My Project

08

Quick Cite

(2023). CONSUMER PURCHASE DECISION IN THE MALAYSIAN RETAIL MARKET: A STUDY OF RM2 STORES. International Journal of Management Studies. https://doi.org/10.32890/ijms2023.30.1.4 Retrieved from https://designdex.org/study/79535302-1936-4c84-b166-702ddb88014e/perceived-value-drives-purchase-decisions-in-value-focused-retail-environments

Paragraph starter

Research indicates that in value-focused retail environments, such as single-priced stores, perceived value is the most significant factor influencing consumer purchase decisions. This suggests that design projects targeting similar markets should prioritize communicating a strong value proposition through product features, pricing strategies, and promotional activities, as these elements directly impact consumer choice more than factors like store environment or social media presence.

09

Source

International Journal of Management Studies

CONSUMER PURCHASE DECISION IN THE MALAYSIAN RETAIL MARKET: A STUDY OF RM2 STORES

journal · 2023

View source

Questions about this research

What does the research say about perceived value drives purchase decisions in value-focused retail environments?: Focus on maximizing the perceived value proposition for customers, supported by effective sales promotions and quality service, as these are the primary drivers of purchase decisions in this market segment. Evidence: International Journal of Management Studies (2023).
Why does "Perceived value drives purchase decisions in value-focused retail environments" matter for design?: Understanding the key motivators for consumers in specific market segments, like value stores, is crucial for developing effective marketing strategies and product offerings. This insight helps businesses allocate resources to the factors that yield the greatest impact on sales and customer loyalty.
How can designers apply this research?: Focus on maximizing the perceived value proposition for customers, supported by effective sales promotions and quality service, as these are the primary drivers of purchase decisions in this market segment.
What were the main findings?: Corporate Social Responsibility (CSR) has a significant positive effect on purchase decisions.. Sales promotion has a significant positive effect on purchase decisions.. Perceived value has a significant positive effect on purchase decisions, and is the strongest influence.. Service quality has a significant positive effect on purchase decisions.
What research method was used?: Quantitative survey research with 550 customers.
What should I do differently in my next project?: Retailers can conduct their own customer surveys to identify the most impactful factors for their specific product and market, then tailor their strategies accordingly.
What are the limitations?: The study focused on a specific market (Malaysian RM2 stores), so findings may not be generalizable to all retail contexts or price points. The influence of social media marketing and store environment might differ in other markets or for different product categories.
Is there evidence that value affects design outcomes?: Customers are more likely to buy from value stores when they perceive good overall value, and when the store engages in CSR, offers sales promotions, and provides good service quality. The store's physical environment and social media presence were found to be less influential. Understanding the key motivators for cons Source: International Journal of Management Studies (2023).
Where does this perceived value research apply?: Retail market, specifically single-priced (RM2) stores in Malaysia. It sits within innovation & markets research on designdex.org.