BBA 4008Retail Management & Merchandising

AU LEE YAU 930524-01-6857 200033

CHRITINA LAU

JANUARY 2015

TABLE OF CONTENTTitlePages

Content1

2.0Chapter 2.02.1 Literature Review on SME2.2 Literature Review on Packaging2.3 Literature Review on Purchase Decisions 2.4 Literature Review on Price 2.5 Literature Review on Customer Loyalty

2-20

Questionnaire

Section ASection B

21-25

Coursework26-29

2.0 Introduction This Chapter mainly represents more details of all variables that involve in this study. It is an overview research about the packaging effect to the customer loyalty, price and also purchase decisions. This research would be carried out in Taman Johor Jaya. In addition, this chapter would also be reviewed from the previous searching from others sources, reports and data as well to enhance the accuracy of the research. 2.1 Literature Review on SME Small and medium enterprises (SMEs) operate in the same environment as their larger counterparts, but without the associated benefits such as adequate capital and extended human resources of the larger organizations. SMEs encounter increasing competitive pressure fuelled by globalization, legislation and the relaxing of trade barriers, as well as an increase in market expansion due to emerging technologies and innovation. Small and medium enterprises often flourish on their adaptability and agility such as their close proximity to their customers, their openness towards new ways of working, and their risk taking approach, but many micro, small and medium enterprise are susceptible to major external shocks (Berry, 2002; Labored and Tan, 2006). Although SMEs experience difficulties in absorbing and coping with these obstacles, they need to develop an ability to deal with the ever increasing challenges, that is, risks faced by the organization (Leopoulos, 2006). SME owner-managers need to escalate the importance of risk identification and minimization in their organizations or they can suffer catastrophic consequences if they are ill prepared for the outcome of a possible risk. SMEs play an important role in the development of Malaysian economy. SMEs are important traders and service providers to primary industries. The Challenges faced by SMEs in Malaysia include the first is the exposure the internet. Secondly, the environment change the competitors ranking in market and also the managerial activities etc. However, SMEs in Malaysia only contribute 32 percent GDP3 over 99.2 percent of total establishment compared to 40 percent GDP in other regional economies such as Thailand, Taiwan and Korea, this suggest that there is a big room for Malaysian SMEs to expand their role (SME Annual Report 2006). Furthermore, a large number of SMEs are also producers of finished goods and services. Their contributions resulted big impacts to the economy as a whole. In year 2005, SMEs contributed to 32 percent to gross domestic products, 56.4 percent to employment opportunities and 19 percent to export (SMIDEC, 2008). Therefore, the lack of expertise becomes advantage to SMP to extend their services into advisory and consulting types of services to cater for business needs of the SMEs in the ever changing business environment. There are various definitions of SMEs that can be found in the literature but this study will use the definition proposed by SMIDEC as this is the most comprehensive. SMEs can be categorized into three categories: (i) microenterprise, (ii) small enterprises and (iii) medium enterprises. The categories are based on the number of employees and sales turnover. The lack of human resources in SMEs pushes them to do outsourcing to improve their organization. This has encouraged the birth of Small and Medium Accounting Practice (SMP) especially after the bad accountability and internal control in SMEs. SMEs become the niche market for SMPs. Generally SMPs are involved in assisting the SMEs in their compliance of accounting, taxation and other regulatory requirements.

Category Microenterprises Small enterprises Medium Enterprises

1.Manufacturing, Manufacturing related services and Agro-based IndustriesSales turnover of less than RM250,000 OR Full - time employees less than 5.Sales turnover Between RM250,000 and RM10 million OR full-time employees between 5 to 50Sales turnover between RM10 million and RM25 million OR full-time employees between 51 and 150.

2. Services, Primary Agriculture and Information and Communication Technology (ICT)Sales turnover of less than RM200,000 OR Full - time employees less thanSales turnover Between RM200,000 and RM1 million OR full-time Employees between 5 and 19Sales turnover between RM1 million and RM 5 million OR full-time employees between 20 and 50.

Table 2.1 details the definition of SMEs in Malaysia.

2.2 Literature Review on Packaging Packaging design is a complicated set of influences by the business environment. Packaging is the container that is oblique contact with product itself, which play a role to holds, protects, preserves and identifies the product as well as facilitating usage and commercialization (Olga & Natalia,2006).Some of the major influences are the new technology, materials development, logistic requirements, environmental issues, consumer preferences and marketing aspects that all take part in making the management decisions on marketing strategy (Bo, 2009; Packaging Federation, 2004a, b). Information of consumers colour preferences is important because marketers who be aware of which colours in their lines sell best may be able to trim product offerings and cut manufacturing costs (Randi & Joseph, 1999; Trent, 1993).Picture or colour may provide as an effective signal by raising the possibility that nodes activate one another in mental processing (James & Mindy, 2003; Macklin, 1996). Furthermore, Pictures or colours allied with the brand displayed on a package are nodes themselves stored as one with the brand name in memory. In addition, based on James and Mindy (2003) there are three general colours of the background of children product packaging, firstly is red (20 %), blue (20 %) and brown (18 %). Childrens preferences build up and change with age, showing a trend to move from warm to cool colours with increasing age (James & Mindy, 2003; Burnham et al., 1963). Then, if products directed to the upper classes, high price products and elegant so the packaging of these three positioning strategies are extremely related With cold and dark colours, primarily black and not too yellow, orange and red colours . In other hand, for a reasonably priced and accessible product it is opposite, the packaging of this strategy is linked with light colours, mostly white (Olga & Natalia, 2006). Then, the major effects of graphics on consumer perception can engage with the use of an appropriate colour and thereby support the brand name or image of the product (Bo, 2009). It has been well recognized that colour and appearance can have a halo effect which modifies subsequent flavour perception and food acceptability (Maslin, 1999; Hutchings, 1994; Kostas & Clydesdale, 1978). Furthermore, there are three types of packaging. The major packaging has indirect contact with the product, such as perfume bottles. Secondary packaging contains one or more primary packages and help to protect and identify them and to be in touch with the qualities of the product. It is generally unnecessary when the product is used or consumed (Olga & Natalia, 2006). Marketing strongly depends on the visual communication of packaging in order to tell and influence consumers both at the spot of purchase and at the position of utilization. (James & Mindy, 2003; Willey, 1993). Besides that package design has become a most important way of competing and presently constitutes a $100 billion industry (James & Mindy, 2003; Howard, 2001). Packaging also is considered as a communication tool that can transmit the meanings of a brand to very young consumers through age suitable pictures and cues displayed on it (James & Mindy, 2003). According to James and Mindy (2003) packaging should have children pictures and informed about the children if the products is aimed to the children. In addition for products based on guarantees and upper class products, the packaging of both strategies has been connected with photographs and with images of the product. But for accessible products it is in difference to the earlier strategy, the packaging of this strategy has been associated with illustrations and people (Olga & Natalia, 2006). Packaging is offered as part of the buying and consuming process, however it is not often directly related to the ingredients that are vital for the product to function (Olga and Natalia,2006;Underwood,2003).Furthermore, for diverse products the shape of the package has been an crucial factor for achievement in the marketplace. (Bo, 2009; Wans ink, 1996; Raghubir and Greenleaf, 2006). In other hand, consumer purchase low weight, easy and safe to carry package. Packaging should be convenient pack size and alternative for multiple pack sizes. Its also helps consumer storage condition for maintaining quality and freshness over a period of time. Subsequently, it is also essential to cope with different temperature and humidity. In addition, packaging should fulfill consumer usage convenience, easy to open and re-close after usage and easy to dispose of after usage. Besides that, packaging also must be environmentally friendly. It requires childproof closure for some product categories. So it is also needs some packages can turn into nice-looking form that consumers use them as containers for other purposes (Bo, 2009). Furthermore, texture and graphics are also variables that can be personalized and contribute to a well package. Attractive pictures situations (mountains, beaches, luxury homes) on the package can contribute to generate lifestyle aspirations. Meanwhile, an attention-grabbing graphic will make the product show up on the shelf and be a focus for the consumers attention (Bo, 2009). In one study, 60% of male respondents chosen male-produced designs and 75% of female respondents preferred female produced designs. In addition, articles published in the magazine Advertising Age in 1972 under the title The age of positioning that lie in the study conducted by Olga and Natalia (2006), which served to extend and disseminate the term. According to these authors, positioning has its origins in product packaging (the concept was called product positioning). This exactly meant the shape of the product, the size of the package and its price in association to the competition. For Upper class products and elegant products, the packaging of both strategies is mostly connected with not any option in five cases such as straight line, line shape, and type of figures, elements and composition. On the other hand, for non-selective products, it is on the contrary, the packaging of this strategy is linked with horizontal lines and oblique. Furthermore for high price products, elegant products and patriotic products, the packaging of these strategies is not associated to any of the image options like photographs and illustrations and images of the product or people. For Non-selective products, it is in opposition due to the packaging of this strategy is associated with both illustrations and photographs. In terms of elegant products, it is allied with bold letters, expanded characters, upper case, large and Roman letters. Products that are intended for to the upper classes and high price products have the packaging of both positioning strategies that is extremely connected with any weight, any width, any shape and any type family. Meanwhile for products based on guarantees, patriotic products and nonselective products, the packaging of these strategies has not been linked with weight, width, shape and type family. So, these strategies do have not a defined typography. (Olga & Natalia, 2006). Texture and graphics are also variables that can be customized and contribute to a good packaging (Bo, 2009).

2.3 Literature Review on Purchase Decisions SMEs have been recognized as important actors of commercial activity, especially in the second half of the 20th century. Although understanding customer potential has been named a top priority among many sectors, we have a limited body of knowledge regarding SMEs buying behaviour. Many studies and industry practices frame the context within corporate or individual buying behaviour, however few researchers mention SMEs, and whenever they do, they tend to consider them as small versions of big enterprises. A holistic approach enables an extensive review of the literature, including some studies that focus on Turkey, and proposes a deductive application agenda. Although SMEs are categorized into normative or conservative buyers, the lack of application makes this dichotomy untested. An adopted unified model can be used for further research. A validated model can not only provide insights into SME buying behaviour, but also potentially open discussion on unnecessary distinctions between corporate and individual buying behaviour models. The paper also challenges the possible reasoning behind the lack of interest in SME buying behaviour, and scrutinizes a comprehensive knowledge base for exploratory application. Therefore, the purchase decisions is the sum total of a consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in the marketplace when purchasing a product or service. The study of consumer behavior draws upon social science disciplines of anthropology, psychology, sociology, and economics. The vast majority of literature reviews, regardless of the type of study, attempt to assess SMEs according to either limitation or adoption domains. The former mostly view SMEs as entities that lack resources and procedures, are informal, and have poor management, whereas the latter mostly view SMEs as having unsuccessful strategy- and systems-adoption processes (Arend & Wisner, 2005;Gilmore & Grant, 2001). Another common pitfall relates to using the term SME while limiting the research to only medium-sized companies (Kendall, Tung, Chua, Ng, & Tan, 2001). In the end, unlike small companies, medium-sized companies do not dominate SMEs, and the results cannot be generalized on behalf of SMEs. Statistically speaking, the opposite might be correct; however, there has been no significant attempt to validate this possibility. Then,External Stimuli. The literature review suggests that there is a correlation between politics and the economy in Turkey, and at least the latter should be part of the research design, with its changing conditions, such as crisis and non-crisis status (Onur, 2004). Technology attributes underline the infrastructural limitations of SMEs in Turkey, such as very limited email usage, which also limit the research techniques that can be used. Next is the Internal Stimuli. SME characteristics were introduced through the cultural domain (Sandhusen, 2000), and corporate culture models and typologies have also been examined (Goffee & Jones, 1996,2006;Miles & Snow, 1978;Turner & Trompenaars, 1998). An application study in Turkey indicated that even if an owners employees take action, the owner decides on all matters trust is more important than knowledge in any field, less value is given to procedures less confident than they look like, andwithin the same contextthere is a fear of losing prestige or appearing weak (Toprak, 2007).Through numerous articles, specific models have been discussed under corporate, individual, alternate, and unified domains; however, none of these has covered the topic of SME buying behaviour. However, only one has embraced all audiences (including individual and corporate, or any segment between them), but there was no application (Wilson, 2000). Within this perspective, hypothesis testing is used within this study, which is also aligned with earlier findings. Moreover, there are the Types of consumer buying behaviour are determined by: Level of Involvement in purchase decision. Importance and intensity of interest in a product in a particular situation. 2.Buyers level of involvement determines why he/she is motivated to seek information about a certain products and brands but virtually ignores others High involvement purchases--Honda Motorbike, high priced goods, products visible to others, and the higher the risk the higher the involvement. Types of risk: Personal risk, Social risk and Economic risk. The four type of consumer buying behaviour are: 1.Routine Response/Programmed Behaviour--buying low involvement frequently purchased low cost items; need very little search and decision effort; purchased almost automatically 2.Limited Decision Making--buying product occasionally. Requires a moderate amount of time for information gathering3.Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or infrequently bought products. 4. Impulse buying, no conscious planning. Therefore, Consumers can purchase different products And this difference because that different buying decisions buying process consists of several steps in Figure 1 (taken from the site abercrombie.com) presented. Consumers to purchase some goods dont need to pass during all stages of the buying decision. However, some purchases are so important that the consumer is forced to do all these steps carefully and meticulously. (GilaniNia, 2010)Figure 1: General model of consumer behavior These steps include: 1) identify the problem: The first stage of the decision-making process is that people can feel the difference between current and desired situation, so trying to resolve these differences. 2) Data collection: For solving this problem collect information. This information can be internal (experiences) and external (family, exhibits, etc.) 3) Assessment Options: After gathering information, the consumer is ready to make a decision. At this point, he should be able to evaluate different options and choose products that meet the demands of him. 4) Purchase: This stage is the stage that all marketing activities are the result. Consumer at this stage, according to the information already obtained, Select a product that feels satisfy his need and buys it. 5) After purchase behavior: Consumer compare purchased products with ideas, products, competitors, perceptions and expectations of the product and two satisfaction and dissatisfaction, which may appear different reasons.

2.4 Literature Review on Price First of all, everything is worth what its purchaser will pay for it. -Maxim 847 of Publics Syros, first century AD (Lyman, 1856)5 As seen from the timeless ponderings of a first century philosopher, pricing has claimed the interest of generations, and for good reason. Of E. Jerome McCarthys four Ps of marketing, price has the most direct effect on a firms bottom line. In his research, Andreas Hinterhuber finds that on average, a five percent increase in price leads to a 22 percent improvement in operating profits (2004). According to the basic economic laws of supply and demand, an increased price can decrease demand. However, depending on the elasticity of demand, this can in turn increase or decrease revenues. Marn and Rosiello make the importance of pricing quite clear in finding that holding other factors steady, a single percent increase in price can mean an 11.1 percent increase in operating profitability, while a single percent increase in volume will only raise profits by 3.3 percent (1992). It follows that poor pricing often leads to poor financial performance, while proper pricing often increases operating profit. For this reason it is perplexing that pricing is one of the least mastered and researched aspects of marketing (Hoffman et al, 2002). Nagle and Holden define pricing strategy as coordination of interrelated marketing, competitive, and financial decisions to maximize the ability to set prices profitably. Price perception is amarketing strategyused by businesses to increase total sales. Although the practice does not necessarily misrepresent the products being sold, it is often considered a covert, or slightly undercover, approach. The success of this strategy is dependent on consumer psychologybecause the message must convince customers that expensive items are not that far away in price from less costly products. Ultimately, it is up to customers to decide whether or not products warrant their investment. A business can sometimes benefit from downplaying the value of high-end products instead of treating expensive items as though they are special. This type of psychology could work because of price perception, which is the way that consumers interpret the cost for items despite the price tag that might be attached to the products. Positioning pricey products in the same area as less expensiveinventorycould alter a consumer's price perception so that there appears to be less of a discrepancy between high-end and low-end items. Therefore, the pricingis the process of determining what a company will receive in exchange for its product or service. Pricing factors aremanufacturing cost, market place, competition, market condition,brand, and quality of product. Pricing is also a key variable inmicroeconomicprice allocation theory. Pricing is a fundamental aspect offinancial modellingand is one of thefour Psof themarketing mix. The other three aspects are product, promotion, andplace. Price is the only revenue generating element amongst the four Ps, the rest beingcost centres. However, the other Ps of marketing will contribute to decreasingprice elasticityand so enable price increases to drive greater revenue and profits. Companies will lean on discount pricing as part of product promotions, which are generally used for increasing traffic and attracting new customers. This discounted pricing draws attention to the product and can be used as a hook to bring in customers who will potentially purchase other items. Seasonal changes are good examples of times when companies utilize this strategy, when they discount the prices of the items that are going out of season. Skim pricing is a technique that companies use to find the optimum price point for a product, usually a unique item with unknown consumer demand. The price skimming strategy consists of the company setting the initial product price high to quickly cover embedded costs, such as production or advertising, and then begins to slowly reduce the price to bring the product to a wider market. Electronic devices are great examples of this strategy, where we see higher prices at market introduction that slowly decrease over time once the initial product buzz weakens. Then, the pricing is the manual or automatic process of applying prices to purchase and sales orders, based on factors such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote, price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and many others. Automated systems require more setup and maintenance but may prevent pricing errors. The needs of the consumer can be converted into demand only if the consumer has the willingness and capacity to buy the product. The assimilation or contrast theory among the customers. Their latitude of a acceptance in their belief concerning price, when a customer finds new price information, he or she evaluates it in function of this range. Thus pricing is very important in marketing. The introduction of the product to the consumer is provided at low-end prices in hopes to gain the attention, loyalty, and market share of the customer base. Typically, this pricing strategy can be seen in service offerings, such as cable or Internet, in which the provider offers promotions to gain the customers' business and then increases the price after the promotional period. Market based pricing The default method of pricing for many firms is using market prices. Many managers feel prices are dictated by the market and they have little or no control over them (Dolan, 1995). The reference price may be from the product or service, which is viewed as most similar to the firms own offering. In their paradigm-shifting book, Nagle and Holden claim that the reference point should rather reflect the customers perceived alternative to a particular offering (2002).

2.5 Literature Review on Customer LoyaltyFirst of all, the customer loyalty is not always easy to construe and many definitions have been proposed. Let's first settle what customer loyalty is not (Prus & Randall, 1995): Customer loyalty is not customer satisfaction. Satisfaction is a necessary but not sufficient criterion. We know that "very satisfied" to "satisfied" customers sometimes switch to competitors. Customer loyalty is not a response to trial offers or incentives. Customers who react to incentives are often highly disloyal and they often leave as fast as they came. They are very much inclined to respond to a competitor's incentive. Customer loyalty is not a strong market share. High level of market share can also be influenced by other factors such as poor performance by competitors or price issues. Customer loyalty is not repeat buying or habitual buying. Some of your consumers choose your products because of convenience or habits and they can be tempted to defect for any reason. Prus & Randall then describe customer loyalty as follows: "Customer loyalty is a composite of a number of qualities. It is driven by customer satisfaction, yet it also involves a commitment on the part of the customer to make a sustained investment in an ongoing relationship with a brand or company. Therefore, According to Gounaris and Stathakopoulos (2004) there are four types of loyalty on the basis of purchase, social effect and emotional devotion to the brand: 1. No Loyalty: They are those who do not purchase and while they have no interest in the brand and social effects failed to orient to the brand. 2. Covetous Loyalty: They do not purchase but emotional tie to the brand is high and this tie was created by the social environment. 3. Inertia Loyalty: They have a tendency toward the brand for habit, convenience or any other reason without emotional tie with the brand and social effect. The customers having this nature of loyalty can make a systematic selection among other brands but while this selection has low level of emotional involvement and personal investment there is no devotion to the brand. 4. Premium Loyalty: If the emotional tie and social effect is high while the customer purchases at high level it is loyalty. According to Rowley customers may demonstrate their loyalty in any one of a number of ways; they may choose to stay with a provider, whether this continuance is defined as a relationship or not, or they may increase the number of purchases or the frequency of their purchases or even both (Rowley, 2005). According to this approach it is a relation that shapes repurchasing that reveals the existence of loyalty rather than repurchasing itself. Rowley took this framework on the basis of inertial and positive attitudes including the behavioral and attitudinal dimensions, and discussed customer loyalty in 4 groups namely, captive (inertial behavior and attitude), convenience-seeker (positive behavior and inertial attitude), contented (inertial behavior and positive attitude) and committed (positive behavior and attitude) according to behavioral and attitudinal dimension. The most basic problem encountered in those studies is the failure to achieve a shared definition of loyalty because although customer loyalty may be a key variable that explains keeping the customer at hand (Wong and Zhou, 2006; Pritchard and Howard, 1997), it has been discussed in time whether loyalty is an attitude or combination of attitude and behavior. According to the approach based on behavior, loyalty is the behavioral reaction based on prejudice as the function of psychological processes by the decision maker in the existence of one or more alternative in time (Jacoby and Keyner, 1973). Behavioral approach explained loyalty basing on the criteria including the share in consumption, consumption probability, probability to consume the product again, repeated consumption behavior, multidirectional consumption behaviors (Kumar and Shah, 2008). According to the second approach dealt as the combination of attitude and behavior brand loyalty is a form of repeat purchasing behavior reflecting a conscious decision to continue buying the same brand, for brand loyalty to exist, a pattern of repeat purchase must be accompanied by an underlying positive attitude towards the brand (Solomon et al., 2006). This approach does not include only the past purchasing behaviors and tendencies but also customer attitude and value systems (Sudharshan, 1995). Finally, customer loyalty is reflected by a combination of attitudes intention to buy again and/or buy additional products or services from the same company, willingness to recommend the company to others, commitment to the company demonstrated by a resistance to switching to a competitor and behaviours repeat purchasing, purchasing more and different products or services from the same company, recommending the company to others. In addition to the difference in description within the historical course, it is found that the manner of dealing with loyalty has changed as well. In the early time studies, (Cunningham, 1961; Tucker, 1964; Day, 1969; Jacoby and Keyner, 1973) loyalty was used as dimensioning criteria because competition is low in the period and the thought that activity would be more efficient in a market composed of loyal individuals in terms of the effectiveness of marketing activities dominates. The purpose of the studies in this period is to increase the efficiency and profitability of the activities through classification based on loyalty via more loyal customers. According to Szwarc, companies failed to understand that the new customers they obtained after 1980s particularly through price discounts are those customers existing in the market but in the recession in 1990s they tended to examine the performance of marketing and sales expenses. This tendency suggested that it was much more costly to gain new customers than to preserve the existing ones because it is quite difficult to detect the expectations and behaviors of new customers and this requires additional costs (Szwarc, 2005). This situation changed the viewpoint toward loyalty and loyalty started to be perceived by the companies and brands as a fact that should be achieved because in the existence of innovative products and increased global competition made customer loyalty a managerial struggle (Dick and Basu, 1994). Consequently not only the measurement of loyalty but also management thereof came to the agenda and the effort to search for the factors behind loyalty and achieve loyalty was based upon.

Section AQuestionnaires Section A(Please tick (/) to the appropriate response)Profile DataName :Gender : Male ( ) Female ( )Age : Below 15 ( ) 21-25 ( )Marital Status : Single ( ) Married ( )Race: Malays ( ) India ( )Religion: Buddha ( )Education Level: Master degree ( ) Bachelor degree ( ) Advance Diploma ( ) Diploma ( ) Occupation : Monthly Income :Living Area:Do you buy the SMEs product: Yes( ) No( )

Section BRespond to each statement by circle the extent to which you agree or disagree with them. Use the following rating scale for your respone.12345

Strongly DisagreeDisagreeNot SureAgreeStronglyAgree

Packaging1. Did you appreciate the packagings visual design i.e. graphics, illustrations?1 2 3 4 5

Packaging2. Did you acknowledge how well the product's packaging was designed?1 2 3 4 5

Packaging3. Does a products packaging influence your decision to purchase it?1 2 3 4 5

Packaging4. What are the goals of the packaging?1 2 3 4 5

Packaging5. Did you acknowledge what the packaging was made from?1 2 3 4 5

Purchase Decisions1. Are you the primary decision maker in the purchasing decisions at your company?1 2 3 4 5

Purchase Decisions2. Do you choose the packaging can be influence the purchase decisions?1 2 3 4 5

Purchase Decisions3. Do you include the buying budget in your purchase decisions?1 2 3 4 5

Purchase Decisions4. Does the product or service may influence the purchase decisions?1 2 3 4 5

Purchase Decisions5. Do the customer behavior become the one of the reason in purchasing?1 2 3 4 5

Price1. Will you buy a high cost product?1 2 3 4 5

Price2. Do you spend more than RM 1500-Rm3000 in you purchasing?1 2 3 4 5

Price3. Do you agree that the current price for the product is feasible for you?1 2 3 4 5

Price4. Do you agree for the regular marketer?1 2 3 4 5

Price5. Do you agree that is a reasonable price for this product?1 2 3 4 5

Customer Loyalty1. Would you recommend productsof thiscompany to your friendsand relatives?1 2 3 4 5

Customer Loyalty2. Did the product purchased from XYZ Company satisfy you?1 2 3 4 5

Customer Loyalty3. Doesthe staffsof thiscompany helpful?1 2 3 4 5

Customer Loyalty4. Would you like to purchase goods andservices from thiscompany again?1 2 3 4 5

Customer Loyalty5. Afterreceivingyourrecommendation,haveanyofyourfriendsorrelativesbecomea customer of this company?1 2 3 4 5

Page 20 of 25