This Chapter 1 consists of background of research, problem statement, purposes of the study, research questions, research hypotheses and framework, significance of study and scope of study.
1.1. Background of the Research
Retailing has been one of the most active sub-sectors in the Malaysian economy. According to Kotler (1996), retailing includes all the activities involved in selling goods and services directly to final consumers for their personal or non business use. The retail environment in Malaysia has undergone a continuous and marked change over the decades. Even new facilities ranging from supermarkets and superstores to retail warehouses and convenience stores have been added to the retail landscape, but it still did not interfere in the activities of traditional retail shops. It may be losing out in the urban center but at suburban areas the small retailer is still needed. Zalina (2013) as cited in (Guy, 1980) states that retailing can be in categorized in three groups such as convenience goods which include groceries and daily provisions, shopping goods which refer to quite more expensive items bought at less regular intervals and specialty goods which are unique items that request to customers of the higher income level.
Lim (2003) said the small-scale, single-propriety shops along major roads in town areas. These premise are usually double or three-storey pre-war shop houses with retail activities on the ground floor and dwelling units in the upper floors such as retail shop, medicinal herbs shop, clothing apparel shop and coffee shop. As we know, in the traditional retail shop, they sell variety of products from different brand. This gives consumers choice to make the right purchasing ...
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...nufacturer brand are still new. Many consumers still confused toward manufacturer brand products. This is because they have a mindset that the more popular brands is better and have a good quality rather than manufacturer brand products. This statement is agreed by Mahathir (1999) that most of peoples have negative perception toward local products and it is hard to change their mindset.
The constraints in terms of the amount and type of brand goods manufacturers is limited and sometimes fails to highlight the advantages of store brands that cause the product does not get response from the consumer. It is quite difficult to change the attitude and mindset of consumers in Malaysia because they are still yelling to the influence of well-known brands and luxury compared to the savings in their spending even though they know the products function and quality are same.
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