FACTORS AFFECT the CUSTOMER LOYALTY TOWARDS BUSINESS EVENT: BOOK FAIR INDUSTRY LOO CHUN HOU Research Report Submitted in Partial
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FACTORS AFFECT THE CUSTOMER LOYALTY TOWARDS BUSINESS EVENT: BOOK FAIR INDUSTRY LOO CHUN HOU Research report submitted in partial fulfillment of the requirements for the degree of Master in Business Administration UNIVERSITI SAINS MALAYSIA NOVEMBER 2015 i DEDICATION This work is dedicated to my parents, my family and finally my course mates and colleagues who are always in my thoughts and recognition. ii ACKNOWLEDGEMENTS First and foremost, I would like to seize the opportunity to express my sincere and deepest gratitude to my supervisor, Dr. Zurina who has supported and guided me throughout the entire research project with her patience, mentorship and understanding. I would like to further extend my appreciation to her insightful comment and advice that had contributed in keeping me on track to make this dissertation possible. Secondly, I would like to express my sincere thanks to all my colleagues and friends who have assisted in managing the questionnaires distribution and collection. My appreciation also extends to all respondents who have shown their willingness and effort by providing their cooperation in responding to the survey with their time spent. Last but not least, I would like to extend my gratitude to my family members for their unconditional support, love, encouragement and understanding throughout my MBA studies in Universiti Sains Malaysia. iii TABLE OF CONTENTS DEDICATION ............................................................................................................................... ii ACKNOWLEDGEMENTS ............................................................................................................. iii LIST OF TABLES ..........................................................................................................................vii LIST OF FIGURES ....................................................................................................................... viii LIST OF ABBREVIATIONS ........................................................................................................... ix ABSTRAK (MALAY) ...................................................................................................................... x ABSTRACT .................................................................................................................................. xi CHAPTER 1 ................................................................................................................................. 1 INTRODUCTION .......................................................................................................................... 1 1.0 Introduction ..................................................................................................................... 1 1.1 Background of the Study .................................................................................................. 4 1.2 Problem Statement .......................................................................................................... 7 1.3 Research Objectives ......................................................................................................... 8 1.4 Research Questions ......................................................................................................... 9 1.5 Significance of the Research ............................................................................................ 9 1.5.1 Theoretical Contributions ....................................................................................... 10 1.5.2 Practical Contributions ............................................................................................ 11 1.6 Scope of the Study ......................................................................................................... 12 1.7 Definitions ...................................................................................................................... 12 1.7.1 Customer Loyalty .................................................................................................... 12 1.7.2 Customer Satisfaction ............................................................................................. 13 1.7.3 Marketing Mix ......................................................................................................... 13 1.7.4 Product .................................................................................................................... 14 1.7.5 Price ........................................................................................................................ 14 1.7.6 Promotion ............................................................................................................... 14 1.7.7 Place ........................................................................................................................ 14 1.8 Structure of the Report .................................................................................................. 15 CHAPTER 2 ............................................................................................................................... 16 LITERATURE REVIEW ................................................................................................................ 16 2.0 Introduction ................................................................................................................... 16 2.1 Customer Loyalty ........................................................................................................... 16 2.2 Customer Satisfaction .................................................................................................... 21 2.3 Marketing Mix ................................................................................................................ 24 2.3.1 Product .................................................................................................................... 26 2.3.3 Promotion ............................................................................................................... 30 2.3.4 Place ........................................................................................................................ 32 iv 2.4 Stimulus – Response Model ........................................................................................... 33 2.5 Stimulus – Organism – Response Model ....................................................................... 35 2.5.1 Stimulus................................................................................................................... 36 2.5.2 Organism ................................................................................................................. 36 2.5.3 Response ................................................................................................................. 37 2.6 Theoretical Framework .................................................................................................. 37 2.7 Hypothesis Development ............................................................................................... 38 2.8 Summary of the Chapter ................................................................................................ 41 CHAPTER 3 ............................................................................................................................... 42 METHODOLOGY ....................................................................................................................... 42 3.0 Introduction ................................................................................................................... 42 3.1 Research Design ............................................................................................................. 42 3.2 Variables and Measurement .......................................................................................... 43 3.3 Unit of Analysis, Population & Sample .......................................................................... 43 3.3.3 Unit of Analysis (UOA) ............................................................................................. 43 3.3.2 Population ............................................................................................................... 43 3.3.3 Sample ..................................................................................................................... 44 3.3 Research Method and Research Instrument ................................................................. 45 3.4 Data collection ............................................................................................................... 46 3.5 Survey Instrument .......................................................................................................... 47 3.5.1 Questionnaire Construction .................................................................................... 48 3.6 Data Analysis .................................................................................................................. 48 3.6.1 Partial Least Square ................................................................................................ 49 3.6.2 Descriptive Analysis ................................................................................................ 50 3.6.3 Factor Analysis ........................................................................................................ 50 3.6.4 Construct Validity .................................................................................................... 51 3.6.5 Convergent Validity ................................................................................................