BACHELOR OF HOSPITALITY MANAGEMENT

(HONOURS)

RESEARCH PROJECT
BGN3401

THE FACTORS INFLUENCING PURCHASE

INTENTION TOWADS COFFEE IN KAJANG

KYRIOS JOYCE ERDAYA RAJOO

BTS0820143114
 BACHELOR OF HOSPITALITY MANAGEMENT (HONOURS)

RESEARCH PROJECT

BGN3401

The Factors influencing Purchase Intention towards Coffee in

Kajang

This Research Project was compiled in partial fulfilment of the requirements for the Degree

of Bachelor of Hospitality Management at BERJAYA University College of Hospitality.

I declare that this research project report is the product of my own work, that is not been

submitted before for any other academic institution or for publication in any institution, and

all the sources used or quoted have been referenced and acknowledged.

____________________________

KYRIOS JOYCE ERDAYA RAJOO

BTS0820143114

AUGUST 2016

2
ACKNOWLEDGEMENTS

I am pleased to pause this moment to take opportunity to convey my sincere gratitude and
appreciation to the following individuals who played a role in supporting me in the
completion of this research paper.

I am thanking Mr. Ronald W Binati, my supervisor, for his keen assistance and guidance in
the completion and compilation of this thesis. It is honoured and I feel privileged to study and
work closely under your supervision. Your commendable knowledge and patience is very
much appreciated.

In addition, a huge appreciation goes to my family and friends for their constant and
trustworthy support all the way through the intact course of years during my bachelors’.

Lastly, I am obliged to thank all the respondents for their time for filling up my questionnaire
is much supportive and accommodating to complete this research project.

Thank you.

3
ABSTRACT

This major reason behind this study is to recognize and determine which factors that
influence the purchase intention of coffee in Malaysia. This is to better understand in
depth the reason why those factors are are more important in making decision of
coffee purchase. Instead of just selling products and brands it makes professional
sense to associate the purchase of a product with some altruism activity which is
known as Cooperate Social Responsibility (CSR). The increased interest for CSR is
found within western countries and even in Malaysia but not all entrepreneurs’
practice CSR in their business, the reason given is small business. This is what make
people to not aware of CSR and it are clearly shown on the research done in the area
of Kajang, Selangor. Also, it explore why consumer are very keen and vice in making
purchase decision because they compare the prices, service quality, brand image and
see whether that particular imply CSR practices.

4
Table of Content Page

ACKNOWLEDGEMENTS……………………………………………..……..…3

ABSTRACT……………………………………………………………...…....…..4

CHAPTER 1: INTRODUCTION………………………………………………..7

1.1 Research Background……………………………………....….……...…..7

1.2 Problem Statements……………………………………………..…... …...8
1.3 Research Objectives…………………………………………….....….…..9
1.4 Research Question...………………………………………………....…..10

CHAPTER 2: LITERATURE REVIEW……………………………...……….11

2.1 History of Coffee Culture……………………………………………...…11

2.2 Purchase Intention………………………………………….……............12
2.3 Price…………………………………………………………...………..…13
2.4 Service Quality………………………………………………..….............13
2.5 Brand Image……………………………………………………..…….….14
2.6 Consumer Social Responsibility……………………………………....…15

CHAPTER 3: METHODOLOGY……………………………………………..17

3.1 Conceptual Framework………………………………………….…...….17

3.1.1. Proposed Conceptual Framework…………………………..…..17
3.1.2. The relationship between price and purchase
intention of coffee……………………………………….….…..18
3.1.3. The relationship between service quality and purchase
intention of coffee…………………………………………..…..18
3.1.4. The relationship between brand image and purchase
intention of coffee……………………………………….…...…19
3.1.5. The relationship between CSR and purchase
intention of coffee……………………………………….……..19
3.2 Research Design……………………………………………………..….20
3.3 Sampling and Data Collection…………………………………….……20
3.3.1 Primary Data…………………………………….….…..21
3.3.2 Secondary Data………………………………….….…..21
3.3.3 Sampling Size…………………………………….…..….21
3.4 Question Design…………………………………………………...…...22

CHAPTER 4: RESULTS, FINDINGS AND DISCUSSION………….…..….23

4.1 Reliability Test……………………………………………………..….…23

4.2 Demographic Profile…………………………………………….….……27
4.2.1 Age…………………………………………….………....27
4.2.2 Gender………………………………………………..…..28
4.2.3 Race…………………………………………………..…..29

5
 4.2.4 Education Level…………………………………….……30
4.2.5 Occupation…………………………………………….…31
4.2.6 Income per Month………………………………….……32
4.3 Normality Test……………………………………………….……….….33
4.4 Regression Analysis………………………………………….………….35
4.5 Results and Discussion………………………………………..…………37
5.0 Conclusion…………………………………………………….…….……39
5.1 Recommendation……………………………………………….…….…..39
5.2 Limitation……………………………………………………….…….….40

REFERENCE………………………………………………………………...41

APENDIX……………………………………………………………………46

CHAPTER 1: INTRODUCTION

1.1 Research Background

The earliest date that a coffee plantation in Malaysia was recorded. (Ralph Neeraj
1981) says ‘Propagation of the coffee plant spread to Malaysia around 1696.’
Another opinion can be extracted from (Wilson 1967) saying that, ‘Until the mid
1890’s, the major estate crop in Malaya was coffee but at that time the world price
for coffee plummeted. Beginning in 1896, rubber was planted extensively, and the
cultivation of that product quickly became major concern of estates.’

All statements show that coffee once has played a very important role in
Malaysian economy before rubber plantations took over. Since Malaysia’s

6
geography is only suitable for low quality coffee beans, it is impossible to go further
with non-profit coffee production and the colonial powers decided that rubber is
more suitable as the main crop since the high demand for rubber due to
development of the automobile industry supported rubber estates rather than coffee
plantations.

Culture is the entire complex of ideas and material objects that the people of
a society (or group) have adopted for carrying out their collective life said by
(Ritzer 1987). This term fits with the Malaysia coffee culture which has adopted
from arrivals of branded retails outlet such as Coffee Bean and Starbucks in the
local market around 1997 to 1998. Local coffee culture grows, begins by
commercializing kopitiams and branding of local coffee shops to upgrading services
by not only selling product but embracing technology as part of the marketing plans
to attract younger generations.

We are aware that Malaysian coffee culture is different from the European as
which Malaysian are more exposed to tea as main beverage rather than coffee,
thanks to the British colonization bringing their social culture into the colonial
country. Local coffee shops have started at least in the early 1900’s and has been
one of the main meeting points for local to share thoughts and having conversation
elsewhere than home. According to (Wilson 1967), ‘At midday and in the evening,
men gather at the coffee shop and women sometimes gather in each other’s houses.
The younger men form peer groups, or gang, and spend most of the day with each
other playing cards, talking, listening to the radio, or reading old newspapers and
magazines.’

This statement shows that the coffee shop is a public place where most of the
main social activities happen for Malay society and this coffee culture started in
small villages. Thus, only men were allows hang out in coffee shop due to Malay
culture, where women must only stay at home to prevent any unpleasant things
happen such as rumours or immoral behaviour. In other situations, Malaysians enjoy
coffee or tea when visiting relatives or neighbours when the owner of the house will
serve coffee or tea to the guest as appreciation of their visiting to the owner's house.
This tradition still continues until now, especially in village areas.

7
 Time and progress does contribute towards social changes. From small
coffee shops and kopitiams, retail coffee shops begin to enter local society in the
late 1990’s together with any other fast food chain and grow rapidly as requested for
this kind of lifestyle is booming together with economic changes and buying power.
This new lifestyle leads to sudden changes in the food and beverage industry
resulting in branded kopitiams mushrooming and people becoming more demanding
for greater service. As noticed, Malaysian coffee culture now not only provides
small stalls but has also developed to café, which carry their own brand name.
Coffee Bean and Starbucks has been inspiration to local kopitiams, which they
started re-branding their corporate design and interior, provides services and created
“third place” feeling.

1.2 Problem Statement

Malaysian coffee culture comes back in early 1890’s and it begins with small local
coffee shops and improve when day pass by to kopitiams, Hailam stall, hawker
centres and mamak stalls and it grew along with social needs and changing times.
However, this culture was not very popular until Starbucks and The Coffee Bean
and Tea Leaf, and Espresso lab entered the local market and brought along the
culture of American coffee. Starbucks Coffee Company has brought this culture to
Malaysia on 1998 and this is what called coffee culture and it was accepted by high
and middle society, which prefers branding as distraction and a way of life. This
new lifestyle has hit big cities, but it is not yet popular when it comes to small towns
and rural areas of Malaysia but it will definitely happen.

It is critical to conduct a study about the local coffee culture which is very
different from Europe and American style, and to study what influences the
American coffee branding strategy, which has brought a new style of living for local
society. In any businesses, revenue or sales of the company is crucial for the
company to continue operating. Revenue is the source of income that contributes to
the survival of a company. According to McClintock 2014), no matter how good is
the company manufacturing operation, how cutting-edge the company’s technology
is, sales mechanism must be in place or everything else will be useless. For
Starbucks, sales come from consumers who consume coffee and spend in Starbucks
8
outlets. According to The Straits Times, the international coffee chains like
Starbucks and Coffee Bean are dominating the coffee industry but independents
cafes and coffee shops have been growing in numbers.

Moreover, more Malaysians now know how to differentiate coffee made

from Arabica beans and Robusta beans. They also start to appreciate a good cup of
coffee. When consumers start to become more demanding, it can be a problem to
coffee producer that could not satisfy their demand by offering specialty coffee such
as hand-brewed coffee or coffee bean from their own coffee plant farm. Last but not
least, the researchers have no choice but to adopt independent variables from
different models of journals to be adopted into this research because too little
research done on coffee in Malaysia.

1.3 Research Objective

This study is to identify the factors influencing the purchase intention of coffee.
This research is to study and clarify whether the factors will influence the purchase
intention of coffee among consumers.

The sub objectives are :-

1) Relationship between price and the purchase intention of coffee.

2) Relationship between service quality and the purchase intention of coffee.
3) Relationship between brand image and the purchase intention of coffee.
4) Relationship between corporate social responsibility and the purchase
intention of coffee.

1.4 Research Question

Due to the increasing number of new entrants in coffee industry, consumers have
more choices to enjoy their coffee. Other than more choices, there are other factors
such as price, service quality and brand image that can affect the purchase intention
of Coffee.

1) How does the price influence the purchase intention of coffee?

2) How does the service quality influence the purchase intention of coffee?
3) How does the brand image influence the purchase intention of coffee?

9
 4) How does the corporate social responsibility influence the purchase intention
of coffee?

CHAPTER 2: LITERATURE REVIEW

2.1 History of Coffee Culture in Malaysia

Coffee was first discovered by Ethiopians as energizing drinks. In Malaysia, the

introduction of coffee was during the late 18th century. The coffee culture started
with Kopitiam in Malaysia. Kopitiam comes from the word “kopi” which mean
coffee and the word “tiam” which mean shop. According to the official website of
Amecrown, the Malaysians of Hainanese and Hokkien were those who manage the
Kopitiams during the British colonisation. It is said that each Kopitiam has its own

10
unique flavour and personality but the similarity of all the Kopitiams is the
atmosphere that consists of mixture of several different cultures which is truly
Malaysia (Lim, n.d.). The uniqueness of Malaysian Kopi (coffee) is the way it is
roasted with butter and sugar while most of the coffee around the world is roasted
only with sugar.

The common coffee found in Kopitiams is Kopi which is coffee with

condensed milk and Kopi-O which is black coffee. The Kopitiams has its own
glorious time until 1980s where the number of old fashion Kopitiams decreases.
Although the decline of Kopitiams during the 1980s, the coffee culture in Malaysia
changes when big coffee company like Starbucks, Coffee Beans and many more
entered into Malaysia. With the existence of all these coffee shops, the varieties of
coffee have turn into more than just Kopi and Kopi-O. To name a few, Americano,
Espresso, Flat White, Irish Coffee, Latte and many more are examples of varieties
of coffee offered today (Medindia, n.d.). Moreover, coffee shops have become a
place where people gather together to have a cup of coffee, spend leisure time or
even for business discussion such as informal meeting.

2.2 Purchase Intention

Purchase intention is widely used as a predictor of subsequent purchase (Grewal,

Krishnan, Baker and Borin 1998). According to (Dodds, Monroe and Grewal 1991),
the purchase intention refers to the possibility of a consumer’s willingness to buy
products.

Believe purchase intention as a personal behavioural tendency to a particular

product (Bagozzi and Burnkrant 1979). Intention to purchase is the consumer’s
inclination to act toward an object (Kim and Kim, 2004). Besides that, purchase

11
intention can also be considered as the effort of an individual consciously planning
to purchase the products of a brand. According to (Halim and Hamed 2005), they
explained purchase intention as the number of patrons that has a proposal to buy the
products in future and make repetition purchases and contact again to the specific
product.

Moreover, (He and Hu 2008) claimed that purchase intention was the
transaction after consumers evaluating the overall products especially the attitudes
towards purchase behaviours. The purchase intention relating four behaviours of
consumers including the undoubted plan to buy the product, thinking unequivocally
to purchase the product, when someone contemplate to buy the product in the
future, and to buy the specific product utterly (Jin and Kang 2011).

According to (He and Hu 2008), purchase intention is measured with the

dimensions of willing to purchase, worth of purchase, and suggesting others to
purchase. Purchase intention can also be identified by enquiring consumers’
intention to select certain brands, including Absolutely, Possibly, Uncertain,
Possibly Not, and Never. (Chang 2009) says, scale of possibility of buying,
considered purchase product, and recommending friends for buying were used for
measuring consumer’s purchase intention.

2.3 Price

Price is non-price product information and purchase intention together with the
intervening variables of perceived price, perceived quality and perceived value are
empirically examined defined by (Chang and Albert 1994). (Parker and Dawar
1994) stated that retailer’s reputation is not as important as price and physical
appearance as a signal of quality.

In short, the deciding factor for an entrepreneur will be price as a signal of

product quality instead of retailer reputation. Price plays an important role in every

12
industry. With the access of the internet, consumers could easily obtain information
about the product features, pricing and etc. This will eventually lead to consumers to
be more price sensitive (Jarvenpaa, Sirkka and Noam, 1999). Furthermore, (Brucks,
Zeithaml and Naylor 2007) also states that price is commonly used by consumers to
indicate the quality of product.

Price promotion is the price reduction and the differences between actual
price and price promotion is the amount of money consumer saved (Chen, Monroe
and Lou, 1998). (Gupta and Cooper 1992) mentioned that price promotion is
frequently used to attract consumers. Meanwhile, price promotion could be
influenced by competitor actions as well as consumer responses to promotional
activities.

2.4 Service Quality

There is a gap between service quality and satisfaction felt by customers after
accepting services and expectation said (Churchill and Suprenant 1982).
(Parasuraman, Zeithaml and Berry 1985), who stated that service quality as the
“expectation” before customers accept service and the “perception” after customers
accept service. In short, service quality is equal to the expected service minus by
perceived service.

Customer evaluates the service quality delivered by the three critical factors;
interaction quality, service environment quality and outcome quality (Brady and
Cronin, 2001). Interaction quality is based on the evaluation of interaction between
the customer and the staff. The service environment refers to the judgment about the
overall environment of the store by consumers and the service outcome refers to
customer’s purchase experience in the store. The dimensions of interaction quality,
environment quality and outcome quality will influence the overall service quality
while each of the dimensions will be affected by their sub dimensions. Interaction
quality will be affected by attitude, behaviour and expertise. Environment quality
will be influenced by ambient conditions, design and social factors while outcome
quality will be affected by waiting time, tangibles and valance influence (Brady &
Cronin, 2001).

13
 Service quality can be identified by tangibles, reliability, responsiveness,
assurance and empathy (Parasuraman et al., 1988). Tangibles refer to visible and
touchable stuffs and equipment such as size of consumer seats, ambient of the
environment, availability of newspaper and magazines and etc. Reliability could be
explained by the effectiveness of the service which is provided to the customers.
Short waiting time for beverage reflects high effectiveness. Responsiveness refers to
the kindness of the staff that sincerely shows their willingness to solve customer’s
problem. For example, if the customer is not satisfied with the beverage, another
beverage will be made to satisfy their want (Kioumars 2011).

2.5 Brand Image

The brand is defined as a name, term, sign, symbol, design or combination, intended
to identify goods and services and to differentiate them from the competition (Lee
and Tseng 2011). Brand image is a set of beliefs held about a particular brand or a
set of associations that usually organized in some meaningful way. It can be defined
as the image of any particular product that set into the mind of any individual) and
the reasons in consumer’s mind linked with brand specifications (Low and Lamb
2000).

Brand image is often used as an extrinsic cue when consumers are

evaluating a product before purchasing and believed that brand image can arouse
consumer’s positive ideas of the brand, and positive ideas of the brand could enable
consumers to develop a positive attitude toward the brand said (Lee and Tseng
2011). According to (Dobni and Zinkhaml 1990), they believe that brand image is a
consumer’s basic perception, and he or she will set up a subjective judgment on a
brand no matter it is sensational or emotional. Brand image is similar to self-image
of consumers as consumers associate themselves with brands.

Brand image is actually the sum of brand perception presented by

consumer’s unique concepts of product characteristics or products which were
reflected by the relations between brand perception and brand association in the
memory. Brand relations would reflect the meanings of brands to consumers
through linking product information to the brand nodes exist in the consumer’s

14
memories, thus indicating product benefits and summary evaluations of brands.
Accordingly, brand image does not exist in the features, technology or the actual
product itself, but it is something brought out by advertisements, promotions or
users (Peng 2010).

2.6 Corporate Social Responsibility

Corporate social responsibility (CSR) is a business approach that contributes to

sustainable development by delivering economic, social and environmental benefits
for all stakeholders. According to (Frederick 1994), many companies had introduced
Corporate Social Responsibility (CSR) practice in 1970 in order to respond to social
pressures.

Chahal and Sharma also define that CSR is a set of business and social
activities which are done by a firm to enhance the society and its organizational
welfare. It is also a firm’s commitment to provide the equality and sustainability of
benefits for diverse stakeholders (Chahal and Sharma 2006). In addition, Mahesh
defines CSR as the expectation of a corporate in society’s ethical, legal issues as
well as economic issues (Mahesh 2011).

The United States’ consumers pay high level of attention to the company’s
ethical behaviours when they are making their purchase decision. They are willing
to pay for products which are produced by ethical companies at a higher price
compared to the unethical companies (Creyer 1997). CSR also assists company to
get through the economic recession. Research shows that consumers are willing to
pay at a premium price for products from a brand which is practicing a good social
responsiveness (Quelch and Jocz 2009).

However, consumers might also purchase the unethical companies’ product,

but consumer will definitely expect the products priced at a lower price so that they
pay less money as a punishment to unethical company. Furthermore, consumers will
not stay loyal to unethical companies (Webb, Mohr and Harris 2008). Although CSR
plays an important role in consumer’s purchasing decision, occasionally, consumer’s
attitude will not be tally with their intention towards purchasing ethical products.

15
Consumers will also take price, quality and convenience into consideration besides
ethical consideration considerations (Hustvedt and Bernard 2010).

CHAPTER 3: METHODOLOGY

3.1 Conceptual Framework

Independent Dependent
Variable Variable

Figure 1: Conceptual Framework

16
Source: Muhammad Bilal, 2013

This conceptual framework which uses a combination of some important factors to

explain the variation in consumers’ purchase intentions towards private brands with
the help of the literature review a simple yet effective conceptual framework has
been developed to investigate the factors affecting consumers’ purchase intentions
towards private brands.

3.1.1 Proposed Conceptual Framework

Figure 2 Propose Framework

3.1.2 The relationship between price and purchase intention of Coffee

(Krishna 1992) had conducted a research and concludes that price plays an
important role in purchase intention and brand switching and (Sallaudin 1999)
concludes that price is the most significant factor affecting purchase intention.
Besides that, (Shankar, Rangaswamy and Pusateri 2001) conclude that the primary
factor used by consumers in purchasing the products or services is price. The
researchers above all have a similar viewpoint stating that price is an important
factor for purchase intention. In fact, purchase intention will be higher when the
price of the product tends to be lower than acceptable price range said (Dodds
1991). The premium price of luxury branded goods is also able to influence the
purchase intention of the consumer.

Meanwhile, (Krishna, Briesch, Lehmann and Yuan 2002) have a similar

viewpoint with (Inman, McAlister and Hoyer 1990) that products with price

17
promotion are more appealing and able to create a greater purchase intention and
perceived value for consumers. Consumers’ purchase intention will be influenced
when they encounter product with price promotion. This allows consumers to
perceive that the product is cheaper and it could create a sense of urgency for
consumers to purchase as the promotion might only last for a short while.

3.1.3 The Relationship between service quality and purchase intention of

Coffee

Service quality plays a significant role in influencing consumer decision. There is a

linkage between service quality and behavioural intention. Some store that are
providing better service leads to a positive behavioural intention and thus increases
the consumer purchase intention and frequency of visiting to the store. If the service
meets the expectation of the customers, the chances of the customer purchase the
product will be higher. (Jang and Namkung 2009) also indicate that service quality
of a restaurant would positively influence the consumer behavioural intentions
which means that restaurant that provides higher service quality, consumer will also
have higher purchase intention. (Aaker 1991) and (Zeithaml 1998) also stated that
the perceived quality is also an important aspect of brand value that makes
consumers pay for certain product or service services which is eventually affecting
the purchase decision.

Besides that, there is a direct impact between service quality and customer
purchase intention. Based on the finding of (Garretson and Clow 1999), they also
concluded that perceived quality is playing a positive role on the purchase intention.
Based on the studies that we have found, we conclude that there is a positive
relationship between service quality and purchase intention. Although majority of
the researchers have proven that service quality can indeed affect the purchase
intention, still, there are minority of the researchers say that there is an indirectly
relationship shows between service quality and purchase intention.

3.1.4 Relationship between brand image and purchase intention of Coffee

18
According to Hsu (2000), brand with strong image has higher purchase intention.
(Chi, Yeh and Yang 2009) points out when a product has a well known brand name,
it can win consumers’ preferences and increase their purchase intention. According
to (Aaker 2002), a positive private brand image can lead to more image-related
thoughts and greater purchase intention. The evidence from (Kamins and Marks
1991) had shown that consumers have a higher intention to buy products with a
better brand image. Research of (Aaker 1991) and (Keller 2003) also expressed that
the positive image of a brand can increase the purchase intention among customers,
and then exceed the recognition and loyalty toward the brand.

Brand image is the overall mind reflection and beliefs about the particular
brand by keeping in mind its unique qualities which make it different from the
others. Therefore, the brand image is very important aspect towards purchase
intention. It helps the consumers to decide whether which brand is a better option
for them and they are forced to make purchase intentions couple of times say (Lee,
Lee and Wu, 2011).

Through brand image, consumers are able to recognize a product, evaluate

the quality, lower purchase risks, and obtain certain experience and satisfaction out
of product differentiation (Keller 1993). Consumers are more likely to purchase well
known brand products with a positive brand image, because a brand with a more
positive image does have the effect of lowering consumers’ perceived. On the other
hand, favourable brand image is the key factor in purchasing intention and cause
consumers to purchase intention (Shen and Chou 2006; Jo, Nakamoto and Nelson
2003; Keller 1993).

A brand with good image can acquire consumer’s preference and buy a
product because it makes them feel safe and trustable. (Chen and Chang 2010) also
pointed out the positive effects of brand image would enhance consumer’s purchase
intention. If consumers have a good and preferable brand image to a product, they
will have higher purchase intention, and if a product is familiar to consumers, they
will have more confidence to buy it (Laroche, Kim, and Zhou 1996). Although there
are many researchers found out that brand image has influence on purchase
intention, however, there are also few of them do not agree.

19
3.2 Research Design

According to (Malhotra and Peterson 2006), research design is defined as a

framework that helps in running the research project. It lists out a set of blueprint to
attain necessary information. Besides, it also helps to solve research problem.
Research design is divided into few section of study, which consists of price, service
quality, brand image, corporate social responsibility and the influence of purchase
intention towards coffee. Furthermore, this questionnaire is a survey that based on
quantitative and contains a total number of 29 questions. Therefore, the data and
information collected from the respondent will be able to help evaluate how media
impact the hotel.

3.3 Sampling and Data Collection

The questionnaires are distributed to 286 targeted respondents. All 286 set are community
from Kajang who are students, working adults, and others from the age 18 to 50 and above
years old. To measure the data, we will be using a nominal scale and likert scale.

3.3.1 Primary Data

In this research project, the questionnaires will be freely distributed to the

respondents that consumed coffee through tangible paper. The objective of
conducting this research project is to test the impact of independent variables (price,
service quality and brand image) on the dependent variable (purchase intention).
Therefore, the questionnaires will be designed based on the measurements so that
the results of finding will be correct.

3.3.2 Secondary Data

In this research, most of the secondary data is acquired through the reading of
journals, articles, Internets, reports and textbook. On the other hand, minority of the
journals are from free online database such as Google Scholars. The information

20
basically which has been collected by the previous researcher which help us at least
in our research.

3.3.3 Sampling Size

According to (Roscoe 1975), he suggested that simple rules of thumb are needed in
order to select an appropriate sample size based on an analysis of acceptable
confidence level in behavioural research. In short, the sample size that is best
recommended should be at least 30 and not exceeding 500 (Roscoe 1975). My
sample size is 275 based on Kajang community population.

3.4 Questionnaire Design

A total of is it twenty-nine questions are constructed in the questionnaire. The

language of the questionnaire uses the international language, English in order for
respondents to understand the questions. Using simple yet relevant question,
respondents are able to answer with ease yet reliable information. There are three
types of scale that had been applied in the questionnaires, which are Ordinal Scale
and Nominal Scale. The questionnaire is divided into three sections, which are
Section A, Section B and Section C.

In Section A is about demographic which consist of six questions. These six

questions are to understand the demographic and background of the respondent.

In Section B, there are four subtopics are comprises. Each subtopic

comprises of five questions but only Question 2 has four questions. The first
subtopic is constructed to understand how does Price influence the purchase

21
intention of coffee in Kajang. The second subtopic is constructed to understand how
does Service Quality influences the purchase intention of coffee in Kajang. The
third subtopic is constructed to understand how does Brand Image influence the
purchase intention of coffee in Kajang and the last is how do Corporate Social
Responsibility influence the purchase intention of coffee.

In Section C, dependant variable questions are placed which is the Purchase

intention towards Coffee in Kajang and this section is consist of 4 questions. This
section requires the respondent to answer whether they have the intention to
purchase coffee.

In section A, Nominal Scale is used to measure the information and in

Section B and Section C Likert Scale had been used where 1 indicates strongly
disagree, 2 indicates disagree, 3 indicates agree and 4 indicates strongly agree.
Respondents then circle on the paper and click on the online survey to best possible
answer based on their opinion.

CHAPTER 4: RESULT, FINDINGS AND DISCUSSION

This chapter describe in detail the outcome or results of the research project based
on the data analysis done by using Statistical Package for Social Science (SPSS)
version 20. I have distributed 286 of questions online which I actually needed 271
respondents. There were 4 test has been conducted based on the response received
which is Reliability test, descriptive Frequency test will be describing on the
demographics profile of target respondents, Normality test and Regression analysis.

4.1 Reliability Test

Cronbach’s Alpha was developed by Lee Cronbach back in 1951. In reliability test,
Cronbach’s Alpha is used to determine the reliability and validity of the constructs which
are price, service quality, brand image, and purchase intention towards coffee. The
reliability is the measure of internal consistency while validity is the measure of accuracy of

22
a concept (Zikmund 2010). The internal consistency reflects the homogeneity of the test
variables that constructs the whole research and the closer is the result to 1, the higher is
the internal consistency. The range of the value for Cronbach’s Alpha is as below.

Cronbach Coefficient alpha (α) Indication

α value < 0.60 Poor reliability
α value between 0.61 and 0.70 Fair reliability
α value between 0.71 and 0.80 Good reliability
α value between 0.81 and 0.95 Very good reliability

Table 4.1 Range of Cronbach’s Alpha

Source: Zikmund, Babin, Carr and Griffin (2010). Business Research Method (8th
ed.).

Cronbach’s Alpha reliability test is used to measure internal strength and reliability
of the data and the result obtained from the Cronbach’s Alpha test are as shown
below:

Reliability Statistics

Cronbach’s Cronbach’s Alpha Based

Variables N of Items
Alpha on Standardized Items

Purchase
Intention .693 .683 4
(Dependent)
Price
.751 .752 5
(Independent)
Service Quality
.861 .860 4
(Independent)
Brand Image .547 .557 5

23
 (Independent)
Corporate Social
Responsibility .726 .717 5
(Independent)
Table 4.1.1 Reliability Statistics

Item-Total Statistics
Scale Mean if Scale Variance Corrected Cronbach's
Item Deleted if Item Item-Total Alpha if
Deleted Correlation Item
Deleted
1.1 64.99 60.196 .169 .753
1.2 65.21 58.410 .304 .744
IV 1 –
1.3 65.56 59.370 .234 .749
Price
1.4 65.28 59.558 .195 .752
1.5 65.59 59.337 .211 .751
2.1 65.02 58.182 .380 .740
IV 2 – 2.2 64.96 57.581 .432 .736
Service Quality 2.3 64.87 58.138 .483 .736
2.4 64.92 58.028 .430 .737
3.1 64.87 57.989 .426 .737
3.2 65.06 61.611 .071 .759
IV 3 –
3.3 64.93 58.104 .353 .741
Brand Image
3.4 65.02 59.175 .262 .747
3.5 64.76 60.368 .231 .748

24
 4.1 65.35 56.356 .349 .741
IV 4 – 4.2 65.50 56.426 .402 .737
Corporate Social 4.3 65.50 55.100 .508 .729
Responsibility 4.4 65.32 56.626 .361 .740
4.5 65.31 61.330 .086 .758

1 64.99 60.288 .168 .753

DV- Purchase 2 65.23 56.115 .369 .739
Intention 3 65.15 58.566 .280 .746
4 64.92 59.291 .223 .750
Table 4.1.2 Item-Total Statistics

Cronbach’s Alpha is the reliability coefficient that would indicate how well the
items in a set are positively correlated to one another. It is computed in terms of the
average inter-correlation among the items of the measuring concept. Zikmund,
Babin, Carr and Griffin (2010) has present a table showing the Range of Cronbach’s
Alpha where the yield values less than 0.60= Poor reliability; value between 0.61
and 0.70= Fair reliability; value between 0.71 and 0.80= Good reliability and if the
value between 0.81 and 0.95= Very good reliability.

Table 4.1.1 shows that Cronbach’s Alpha value for the Dependent Variable
and Independent Variable (IV) is all more than 0.5 where the result is acceptable. If
the Cronbach’s Alpha value is less than 0.5, then the result will not be acceptable.

The internal consistency reflects the homogeneity of the test variables that
constructs the whole research and the closer is the result to 1, the higher is the
internal consistency (Zikmund 2010).

25
4.2 Demographic Profile

4.2.1 Age

3.8%
2.4%

26
 8%

57.3%
28.3%

Figure 4.2.1 Respondent’s Age

Based on the pie chart above Figure 4.2.1, majority of the respondents which
accounts for 57.3% (164 respondents) are within age between of 18 – 25 years old,
where the second largest of respondents, about 28.3% (81 respondent) are age
between 26 – 33 years old and 8% age between 34- 41 (23 respondents) About 7
respondents are aged 42-49 makes up for 2..4% and age group 50 and above, 3.8%
(11 respondents).

4.2.2 Gender

27
 47.9% 52.1%

Figure 4.2.2 Respondent’s Gender

Figure 4.2.2 above pie chart shows of the 286 respondents who have completed the
questionnaire. Majority of the respondents are male 52.1% (149 respondents) and
female was 47.9% (137 respondents).

4.2.3 Race

28
 10.8%

25.5%

33.2%

30.4%

Figure 4.2.3 RespondentsRace

Figure 4.2.3 above pie chart shows of the 286 respondents who have answered the
questionnaire. Majority of the respondents were Indian 33.2% (95 respondents) and
Chinese were 30.4% (87 respondents), then Malay 25.5% with 73 respondents and
other were 10.8% with 31 respondents.

4.2.4 Education Level

29
 7.7%
9.1%

30.8%
52.4%

Figure 4.2.4 Respondent’s of Education Level

Figure 4.2.4 the pie chart above shows the major respondents, 150 out of 286
respondents (52.4%) have at least Bachelor Degree education background. The
second highest frequency for this is Diploma, which has 88 respondents (30.8%).
The respondents who have Master and Phd were (7.7%) with 22 respondents. The
high school education background has 26 respondents with (9.1%).

30
4.2.5 Occupation

9.1%

38.5

52.4%

Figure 4.2.5 RespondentsOccupation

Figure 4.2.5 above pie chart shows the major respondent are employed ones are
52.4% (150 respondents), 38.5% were students (110 respondents) and the
unemployed 9.1% (26 respondents).

31
4.2.6 Income Per Month

10.8%

14%

52.4%

22.7%

Figure 4.2.6 Respondent’s Monthly Income

As can be seen in the above chart Figure 4.2.6, 52.4% of participants (150
respondents) has income which is less than RM1,500, 22.7% of participants (65
respondents) have income between RM1,600 – RM2,500, while 14% of participants
(40 respondents) have income between RM2,600 – RM3,500 and the rest of
participants (31 respondents) 10.8% have income value for RM3,700 or above.

32
4.3 Normality Test
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation Skewness Kurtosis
Statistic Statistic Statistic Statistic Statistic Statistic Std. Error Statistic Std. Error
1.1
1.2 286 1 4 3.11 .875 -.789 .144 -.051 .287
1.3 286 1 4 2.90 .879 -.426 .144 -.530 .287
Section B (1) –
1.4 286 1 4 2.55 .868 -.303 .144 -.603 .287
Price
1.5 286 1 4 2.82 .936 -.386 .144 -.725 .287
286 1 4 2.51 .936 .112 .144 -.873 .287
2.1 286 1 4 3.08 .772 -.698 .144 .386 .287
Section B (2) – 2.2 286 1 4 3.14 .775 -.801 .144 .549 .287
Service Quality 2.3 286 1 4 3.23 .640 -.732 .144 1.580 .287
2.4 286 1 4 3.19 .720 -.867 .144 1.168 .287
3.1 286 1 4 3.24 .730 -.892 .144 .970 .287
3.2 286 1 4 3.05 .845 -.515 .144 -.481 .287
Section B (3) – 3.3 286 1 4 3.17 .831 -.885 .144 .345 .287
Brand Image 3.4 286 1 4 3.09 .839 -.561 .144 -.444 .287
3.5 286 1 4 3.35 .678 -.903 .144 .986 .287
4.1 286 1 4 2.75 1.091 -.359 .144 -1.173 .287
4.2 286 1 4 2.60 .974 -.208 .144 -.932 .287
Section B (4) –
4.3 286 1 4 2.61 .959 -.228 .144 -.876 .287
Corporate Social Responsibility
4.4 286 1 4 2.78 1.027 -.221 .144 -1.170 .287
4.5 286 1 4 2.80 .871 -.396 .144 -.454 .287
1
2 286 1 4 3.12 .858 -.801 .144 .060 .287
Section c – 3 286 1 4 2.87 1.082 -.518 .144 -1.030 .287
Purchase Intention 4 286 1 4 2.95 .905 -.390 .144 -.793 .287
286 1 4 3.19 .913 -.939 .144 .004 .287

Table 4.3.1 Descriptive Statistics

33
The purpose of descriptive statistics was compute is because to test the normality
attain by the collected data. The Table 4.3.1 above clearly shows that the value of
skewness and kurtosis lay in the Rule of thumb which is between -1 and 1, hence the
normality assumption had been justified (Ines 2013).

34
4.4 Regression Analysis

Model Summary
Model R R Square Adjusted R Square Std. Error of the
Estimate

1 .285a .081 .068 2.62713

a. Predictors: (Constant), IVcsr, IVprice, IVbrandimage, IVservicequality

Table 4.4.1 Summary Output

ANOVAa
Model Sum of Df Mean Square F Sig.
Squares
Regression 171.536 4 42.884 6.213 .000b
1 Residual 1939.415 281 6.902
Total 2110.951 285
a. Dependent Variable: DV
b. Predictors: (Constant), IVcsr, IVprice, IVbrandimage, IVservicequality

Table 4.4.2 Analysis of Variance (ANOVA)

35
 Coefficientsa
Model Unstandardized Standardized t Sig. Collinearity
Coefficients Coefficients Statistics
B Std. Beta Tolerance VIF
Error
(Constant) 6.088 1.363 4.466 .000
IVprice .123 .050 .144 2.473 .014 .959 1.042
IVservicequality .230 .073 .207 3.148 .002 .754 1.326
1
IVbrandimage .167 .070 .144 2.381 .018 .897 1.115
-
IVcsr -.091 .052 -.114 .084 .761 1.315
1.736
a. Dependent Variable: DV
Table 4.4.3 Coefficients

According to the table above Table 4.4.2, the computed F-value of the regression
analysis is 0.000. Given that the value of alpha, α is 0.05 and the F-value is 0.000,
which the F value is less than the alpha value (0.000 < 0.05). The Table 4.4.1
summary output shows the value of the R Square (R 2) figure is 0.081. According to
Mathbits (2016), the coefficient of determination (R 2) is useful because it gives the
proportion of the variance fluctuation of one variable that is predictable from the other
variable. The coefficient of determination is such that 0 < R 2 < 1, and denotes the
strength while coefficient of determination represents the percent of the data that is
the closest to the line of best fit. Hence, with the value of 0.081, it can be assume that
8.1% of the variance in the dependent variable (Purchase Intention of Coffee) can be
explained by the variance of the independent variables: Price, Service uality, Brand
Image and Corporate Social Responsibility while the other 91.9% of the data cannot
be justified by the same regression model.

Based on Table 4.4.3, the results computed from the table captures the values
of three variables being variable 1: Price (p-value = 0.014, β-value = 0.144), variable
2: Service Quality (p-value = 0.002, β-value = 0.207), variable 3: Brand Image (p-
value = 0.018, β-value = 0.144) and variable 4: CSR (p-value = 0.084, β-value =
0.14). Since the value for alpha, α is 0.05, the three variables (Price, Service Quality,
and Brand Image) can be accepted as their p-value is less than α value. Through the
comparisons of beta values of standardized coefficients for the three variables, the
results clearly indicates that the factor which has the greatest purchasing intention

36
towards coffee in Kajang when purchasing a coffee is Srvice Quality (β = 0.207),
Price (β = 0.144) and Brand Image (β = 0.144). CSR with a p-value of 0.084 and
coefficient value (β) of 0.114, since p-value > 0.05, it can be assume that it does not
have significant influence on the purchase intention towards coffee. As a result, the
hypothesis is rejected.

4.5 Results and Discussion

The main purpose of this study is to determine whether there is any significant factor
of the purchase intention towards coffee in Kajang. In general, the results supported
three of the developed hypothesis differences which are Price (H 1), Service Quality
(H2) and Brand Image (H3). The research contributed to our knowledge by providing
support for the contention that consumer’ affection performs a mediating role in the
link between Price, Sevice Qulaity and Brand Image. Nonetheless, the regression
analysis indicated that Corporate Social Responsibility (H 4) is rejected since P-value
was above 0.05.

The most significant factor that influence coffee purchase intention is Service
Quality. There is a significant relationship between Service Quality and coffee
purchase intention since P-value is below 0.05, which means that H2 is accepted. This
statement supported H2 as since Service Quality has a significant and consistent
influence in the purchase intention towards coffee in Kajang.

Supported by Hsueh and Lee (2008), and Hsu (2000), where these researchers
points out that when a product has a well-known brand name, it will increase the
consumer’s purchase intention by winning their preferences towards the brand. This
statement supported the H3 as since Brand Image has a significant and consistent
influence on coffee purchase in Kajang, which Brand Image and Price has the second
most significant relation influence factor of coffee purchasing.

Supported by Chen, Monroe and Lou (1998), price promotion is the price
reduction and the differences between actual price and price promotion is the amount
of money consumer saved. This statement supported the H1 as since Price has a
significant influence on coffee purchase in Kajang.

37
 Lastly, in this study H4 is rejected due to the result of P-value that is above
0.05. Referring to the Table 4.2.1 Respondent Age, it shows that the majority of the
respondents are the age between 18 to 25 years old and Table 4.2.6 Respondents
Income per Month shows that the respondent with monthly salary of RM 1500 and
below is the highest, where this proves the customers are keen to look on Service
Quality, Brand Image and Price compared to Corporate Social Responsibility. This
group of respondents in Kajang wanting to experience coffee on a good brand with
lower price and good quality but not CSR is because the price will not be same
anymore and not most of the coffee stalls, café and restaurant in Kajang practices
CSR.

38
5.0 CONCLUSION

5.1 Recommendation

There are some recommendations for future researchers so that researchers have a
clearer picture towards similar respective research’s area. These recommendations
would make the future researchers to conducting research in much ease.

In the beginning, the future researchers are encouraged to develop a larger

sample size in order to enhance the accuracy and reliability of the data and results.
The number of sample size can be enlarged to 500 respondents instead of 270
respondents but it may take a lot of time so it is advisable to begin the research very
much earlier. Besides that, future researchers are encouraged to remain the
consistency among the races, age ranges and education level by distributing the same
number of questionnaires set to the targeted group.

Moreover, the future researchers are advised to reserve more time for
distribution of questionnaires so that researchers have more time to find more suitable
and qualified respondents. It is impossible to complete data collection in a short
period for sample sizes as big as 500 respondents. Next, researchers are suggested to
explain the elements to the respondents if the respondents found it a bit confused in
answering the questions. It is also to avoid respondents simply answering the
questions. Respondents may need some explanation to have a better understanding so
that the researchers will have a more accurate and reliable data and information.

Besides, future researchers are encouraged to check out other variables that will
manipulate the dependent variable which is the purchase intention. Other variables
such as taste, ambience and environment factors are also the factors that might affect
individuals’ intention to purchase coffee.

Lastly, in case future researchers would want to examine more on the service
quality variable, future researchers are suggested to adopt questionnaires carefully
because every individual has a different perception towards service quality and they
might perceive differently from one and others. Therefore, future researchers have to
make sure that the questions will not be tricky and hard to understand.

39
40
5.2 Limitation

This study is done by an undergraduate student and there are some limitations to be overcome
by the future researcher. The sample size that was collected for this study is little which only
286 data is are collected from the respondents to undertake the analysis. The sample size used
is definitely not sufficient to signify the whole population in Kajang.

The number of reference was limited because not many researches have been done on
coffee in Kajang and overall Malaysia. I was not able justify my finding very much strongly
because it doesn’t not base on Malaysian coffee culture.

It was a constraint to me because this was the first research that I have conducted and I had
never experienced how does the SPSS really works after the collecting the number of sample
size even though it was thought in the class 2 semester ago and even a workshop on SPSS
provided by the college to the students.

41
REFERENCE

Bagozzi, R. P, & Burnkrant, RE 1979, ‘Attitude Organization and AttitudeBehavior

Relationship’, Journal of Personality and Social Psychology, 37(1), 913-929.

Brady, M, K, Cronin, J, J, & Brand, R 2001, ‘Performance- only measurement of

service quality: a replication and extension’, Journal of Business Research, 55(1),
17-31.

Brucks, M, Zeithaml, V & Naylor, G 2007, ‘ Price and Brand Name as Indicators of
Quality Dimensions for Consumer Durables’, Journal of the Academy of
Marketing Science, 362.

Chang, KC 2009, ‘A Study of Product Involvement, Perceived Value and Purchase

Intention for Consumers to Organic Food’, Chiao Da Management Review, 32(4),
92-108.

Chang, TZ & Albert, RW 1994, ‘Price, Product Information and Purchase Intention:
An empirical study’, Journal of the Academy of Marketing Science, 22, 16-27.

Chen, CC & Chang, WJ 2010, ‘A Study on the Relationship between Brand Image and
Purchase Intention’, The Mediating Effects of Sales Promotion. Intl. J. LISREL,
3(1), 1-17.

Chen, SS, Monroe, KB & Lou, YC 1998, ‘The Effects of Framing Price Promotion
Messages on Consumers Perceptions and Purchase Intentions’, Journal of
Retailing,74(3), 353-372.

Chi, HK., Yeh, HR & Yang, TY 2009, ‘The Impact of Brand Awareness on Consumer
Purchase Intention: The Mediating Effect of Perceived Quality and Brand
Loyalty’, Journal of International Management Studies, 4(1), 135- 144.

Churchill, G & Surprenant, C 1982, ‘An investigation into the determinants of

consumer satisfaction’, Journal of Marketing Research, 19, 491-504.

Dobni, D & Zinkhaml, GM 1990, ‘In Search of Brand Image: A Foundation Analysis’,
Advances in Consumer Research, 17, 110-119.

42
Dodds, WB 1991, ‘In Search of Value: How Price and Store Name Information
Influence Buyers Product Perceptions’, Journal of Services Marketing, 5(3), 27-
36.

Grewal, D., Krishnan, R., Baker, J. and Borin, N. (1998), The Effect of Store Name,
Brand Name and Price Discounts on Consumers‟ Evaluations and Purchase
Intentions, Journal of Retailing 74 (3), 331-352.

Gupta, S & Cooper, LG 1992, ‘The Discounting of Discounts and Promotion

Threshold’, Journal of Consumer Research, 19, 401-411.

Halim, WZ, & Hamed, AB 2005, ‘Consumer Purchase Intention at Traditional

Restaurant and Fast Food Restaurant’, Consumer Behavior.

Ines, L 2013, Tutorial, VU University Amsterdam, viewed 20 July 2016,

<http://personal.vu.nl/i.d.lindner/Tutorial%201.>

Inman, JJ, McAlister, L & Hoyer, WD 1990, ‘Promotion Signal: Proxy for a Price
Cut’, Journal of Consumer Research, 17(1), 74-81.

Jang, S & Namkung, Y 2009, ‘Perceived quality, emotions, and behavioral intentions:
application of an extended Mehrabian-Russell model to restaurants.’, Journal of
Business Research, 62, 451-460.

Jarvenpaa, Sirkka, L & Noam, T 1999, ‘Consumer Trust in an Internet Store: A Cross-
Cultural Validation’, Journal of Computer-Mediated Communication, 5(2).

Jin, B, Kang, JH 2011, ‘Purchase intention of Chinese consumers toward a US apparel

brand: a test of a composite behavior intention model’, Journal of consumer
marketing, 28(3), 187-199.

Kamins, MA & Marks, LJ 1991, ‘The Perception of Kosher As A Third Party

Certification Claim in Advertising for Familiar and Unfamiliar Brands’, Journal
of the Academy of Marketing Science, 19, 117-185.

Kioumars, P 2011, ‘Product quality, service reliability and management of operations

at Starbucks’, International Journal of Engineering, Science and Technology,
3(7), 1-14.

43
 Krishna, A 1992, ‘The normative impact of consumer price expectations for multiple
brands on consumer purchase behavior’, Journal of Marketing Science, 266-286.

Laroche, Kim, MC & Zhou, L 1996, ‘Brand Familiarity and Confidence As

Determinants of Purchase Intention: An Empirical Test in A Multiple Brand
Context’, Journal of Business Research, 37(2), 115-120.

Lee, CJ & Tseng, SA 2011, ‘A Study of The Effects in Brand Awareness and Brand
Image Through Sport Sponsorship-Taking ATUNAS As An Example’, Review of
Leisure, Sport and Health, 123(2).

Lee, HM., Lee, CC & Wu, CC 2011, ‘Brand image strategy affects brand equity after
M&A’, European Journal of Marketing, 45(7/8), 1091-1111.

Lim, I. (n.d.). The Revival Of The Kopitiam Culture viewed viewed 19 May 2016,
<http://www.bfsmagazine.com.my/index.php?option=com_content&view=
article&id=1802:the-revival-of-the-kopitiam-culture-
&catid=228:articles&Itemid=1524>

Low, GS & Lamb, JC 2000, ‘The measurement and dimensionality of brand

associations’, Journal of Product & Brand Management, 9(6), 350-370.

Mathbits 2016, Correlation Coefficient, Statistic 2, viewed 20 July 2016,

<http://mathbits.com/MathBits/TISection/Statistics2/correlation.htm>

44
McClintock, L 2014, ‘The Importance of Sales In an Organization’, Heart Newspaper,
viewed 19 May 2016, <http://smallbusiness.chron.com/importance-sales-organization-
25038.html>

Medindia. (n.d.). Taste of Coffee - Types of Coffee Drinks and Varieties, viewed 24 May
2016, <http://www.medindia.net/patients/patientinfo/coffee-types-varieties.htm>

Muhammad, B 2016, Conceptual Framework, Academia Edu, viewed 20 May 2016,

<https://www.academia.edu/9498074/Factors_Influencing_Consumers_Purchase_Intent
ions_towards_Private_Brands>

Neeraj, R 1981, ‘COFFEE-Malaysia’s Most Popular Beverage’, Malaysia Panorama,

Volume 11, Number 2, pg. 3

Parasuraman, A, Zeithaml, VA & Berry, LL 1985, ‘A conceptual model of service quality

and its implication for future research’, Journal of Marketing, 49, 41-50.

Parker, P & Dawar, N 1994, ‘Marketing Universals: Consumers' Use of Brand Name, Price,
Physical Appearance, and Retail Reputation as Signals of Product Quality’, Journal of
Marketing, 58(2), 81-95.

Peng, WT 2010, ‘The Relationship among Brand Awareness, Brand Image, and Brand
Loyalty: An Empirical Study of Domestic Rice Wine Market’, Chaoyang Business and
Management Review, 7(1), 1-26.

Ritzer, G, Kammeyer, CW, K, Yetman, RN 1987, Sociology: Experiencing a Changing

Society, Massachusetts: Allyn and Bacon, Inc, 64.

Roscue, JT 1975), ‘Fundamental research statistics for the behavioural sciences’, (2nd ed.).
New York: Holt Rinehart & Winston.

Sallaudin, H 1999, ‘An Analysis on Marketing Mix Factors and Their Influences on
Consumer Decision Making’, paper presented to the Unpublished Academic
Dissertation, University of Technology, Malaysia.

Shankar, V, Rangaswamy, A & Pusateri, M 2001, ‘The Online Medium and Customer Price
Sensitivity’, paper presented to the Working paper, University of Maryland, College
Park, MD.

45
Wilson, Peter J 1967, A Malay Village and Malaysia, 130.

Wilson, Peter J 1967, A Malay Village and Malaysia, 15.

Zikmund, WG 2003, Business research method (7th ed.). Ohio: Thomson South-Western.

Zikmund, WG, Babin, BJ, Carr, JC, & Griffin, M 2010, Business research methods (8th
ed.). Ohio: South-Western Pub.

46
APPENDIX

Dear participant,
I am a student from BERJAYA University College of Hospitality who is
currently pursuing my final semester in my studies of Bachelor of Hospitality
Management (Hons). This questionnaire is designed to study influence of
purchasing intention towards coffee in Kajang, Selangor.

I assure you that your responses would be completely anonymous. The

researcher sincerely hopes that you will make this study success by answering
all questions honestly and thoroughly. All information obtained will be kept
strictly confidential and the data obtained will be analyzed as a group using
statistical methods.

Specific instructions are given at the beginning of each section of the

questionnaire. Kindly complete the questionnaire by answering all questions in
each section.

Thank you in advance for your cooperation and participation in this study.

Your Sincerely,
Kyrios Joyce Erdaya Rajoo
Student of Bachelor of Hospitality Management (Hons)
Berjaya University College of Hospitality
[email protected]

47
PART A: Demographic Information

Please tick (✓) on the relevant answer, each question should have only ONE answer.

1. Gender
 Male
 Female
2. Age
 18 – 25 years old
 26 – 33 years old
 34 – 41 years old
 42 – 49 years old
 50 – 57 years old
 58 – 65 years old
3. Race
 Malay
 Chinese
 Indian
 Others
4. Your education level:
 Primary School
 High School
 Diploma
 Bachelors Degree

5. Occupation

 Working
 Student

6. Your income per month?

 Below RM1500
 RM 1500-RM2500
 RM 2600-RM 3500
 RM 3600-RM 4000

PART B: FACTORS INFLUENCING PURCHASE INTENTION OF COFFEE

Instruction: Circle only ONE option for each question below. You are given 4 choices of answers
ranging from 1(Strongly Disagree) to 4(Strongly Agree).

i. Price

48
No Question Strongly Disagree Agree Strongly
Disagree Agree
1 Price is the most important factor making purchase.
2 I compare prices of other coffee shop and brand
before I purchase.
3 I buy coffee because the price is affordable
4 My purchase intention will increase when coffee
items having promotion.
5 I will switch to others brand if it’s providing
promotion and discount.

ii. Service Quality

No Question Strongly Disagree Agree Strongl

Disagree y Agree
1 Service personnel who can provide customer
individualized care increases customer’s purchase
intention.
2 Service personnel that understands customer needs
increases customer’s purchase intention.
3 Service personnel that provides appropriate services
with the promised time increases customer’s
purchase intention.
4 Store that considers customer interests as a priority
and provides customer with personalised service
increases customer’s purchase intention.

iii. Brand Image

No Question Strongly Disagree Agree Strongly

Disagree Agree
1 Brand image is the important aspect of every
product.
2 I will switch to others brand if it provides the good
quality of the products.
3 I will purchase those brands which have a good
reputation in the market.
4 If brand image doesn’t go well I will not buy it.
5 How much do you agree that brand reputation
influence to buy product?

49
 iv. Corporate Social Responsibility

No Question Strongly Disagree Agree Strongly

Disagree Agree
1 I would walk an extra five minutes to a coffee shop
that I knew was socially responsible.
2 I will be willing to pay more money for coffee or
products from a socially responsible coffee shop.
3 I will increase the number of visits to a coffee shop if
I knew it was socially responsible.
4 Whether a coffee shop is socially responsible or not
is important to me in making purchasing decision
5 I could easily switch from a coffee shop that was
socially responsible to one that was not

PART C: PURCHASE INTENTION

For each statement below, kindly circle ONE number only that represents your opinion the most. You
are given 4 choices of answers ranging from 1(Strongly Disagree) to 4(Strongly Agree).

No Purchase Intention Strongly Disagree Agree Strongl

Disagree y Agree
1 I purchase coffee if it’s near
2 I intend to drink coffee to start my day
3 Purchasing coffee randomly is something I would do.
4 I am willing repurchase Coffee.

50
51
GANT CHART

1-15 May 16-31 May 1-15 June 16-30 June 1-15 July 16-31 July 1 August
Finding supervisor
Mr. Ronald to be referred as supervisor & confirmation
Finding the topics that I am interested
Findings for the proposal and preparation
Submission of Proposal
Finalizing the research title
Construction of questionnaire
Meeting with Mr. Ronald regarding proposal feedback
and questionnaire
Create survey questions using Google doc
Started to distribute the questionnaires through
Facebook, whatsapp and emails as much as possible and
also in public areas like Kajang KTM, Metro Plaza and
Metro Point.
Complete collecting 286 respondents questionnaire
Inserting data in SPSS 20
Completing report with the findings
Meeting Mr. Ronald for the final check
Submission of the Report

52