Vol 25, 2020

Regular Articles

Cover Page Vol 25
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Consumers’ Knowledge, Perceived Quality, Trust of the myOrganic Logo, and Purchase Behaviour towards Organic Food in Malaysia
Song Bee Lian, Kanesh Gopal Rajadurai, Taylor’s University
Page 1-27   |      Download PDF   |   ABSTRACT PREVIEW


This study investigates the consumers’ knowledge, perceived quality, and trust of the Malaysian Organic (myOrganic) certification logo and its influence on purchase intentions and actual purchase of organic food in Malaysia. Data from 390 organic food consumers were obtained through a survey conducted in Kuala Lumpur and Petaling Jaya, Malaysia. Structural Equation Modeling (SEM) was used to analyse the data and four hypotheses were tested. The results show that consumers’ knowledge, perceived quality, and trust of the myOrganic logo significantly influenced their purchase intentions of organic food. Subsequently, consumers’ purchase intentions are positively correlated to actual purchase of organic food. The contribution of this study is twofold. The findings of this study provide theoretical insights through development of the Hierarchy of Effect model. From the managerial perspective, more effective information campaigns and marketing strategies on myOrganic certification logo should be undertaken such as more diverse online communication channels, extensive display of the logo on organic food packages, and communicate organic food certification mechanism to the consumers to build a greater consumer trust on the product and logo. 

Organic food, Perceived quality, Purchase intentions, Trust

Mediating the Effects of Customer Satisfaction and Bank Reputation on the Relationship between Services Quality and Loyalty of Islamic Banking Customers
Azmi Ati, M. Shabri Abd. Majid, Nasir Azis, Universitas Syiah Kuala
Abdul Hamid, Islamic State Institute of Langsa
Page 28-61   |      Download PDF   |   ABSTRACT PREVIEW


Amidst a fierce competition within the global banking industry, the issue of retaining existing loyal customers and attracting new customers has been a focus for Islamic banks worldwide, including Islamic banks in Indonesia. Considering this pressing issue, the present study empirically measures and analyzes the mediating effects of bank reputation and customer satisfaction on the relationship between service quality and the loyalty of Islamic banking customers. Out of 113,146 customers of Bank Mandiri Syariah (BSM) in the Banda Aceh City, Indonesia, 320 of them were selected as the respondents for the study using a purposive sampling technique. Data were gathered by distributing questionnaires to the respondents and analyzed using Structural Equation Modeling (SEM). The study recorded that while service quality has a significant positive influence on bank reputation and customer satisfaction, it has an insignificant effect on customer loyalty. Bank reputation and customer satisfaction were also documented to have significant mediating effects on the relationship between service quality and customer loyalty. These findings suggest that in order to enhance customer loyalty further, bank management should design a proper strategy focusing on improving bank reputation and customer satisfaction by strengthening service quality. 

Customer loyalty, Digital-based services, Shariah compliant based services

Factors Affecting Restaurant Customer Intention To Adopt Mobile Payment
S.F. See, KDU Penang University
Y.N. Goh, Universiti Sains Malaysia

Page 62-91   |      Download PDF   |   ABSTRACT PREVIEW


To spur a cashless economy, an understanding of the shift within the payment landscape among Malaysian consumers is pertinent at this juncture. Even though the adoption rate of mobile payments is still at its infancy, it is important to understand customer’s shifting payment preferences for day-today expenses, such as when dining in restaurants. Accordingly, the motivation of this study was to examine the factors influencing restaurant customer intention to adopt mobile payment. Using purposive sampling, a total of 355 completed surveys were received from mobile users who had visited a restaurant. PLS analysis was performed to assess the measurement and structural models, thus extending the current understanding of restaurant customer adoption intention of mobile payment by integrating the UTAUT model with compatibility, innovativeness, and perceived risk. The proposed model exhibited good predictive and explanatory power, whereby facilitating conditions, social influence, performance expectancy, compatibility, and perceived risk significantly affected restaurant customer intention of using mobile payment. This study provides cashless payment providers some valuable insight into the role of mobile payment as a new technology in service delivery. It can further assists mobile payment stakeholders to optimise their mobile payment initiatives, implementation, and deployment. 

Compatibility, Innovativeness, Mobile payment, Perceived risk, UTAUT

Consumers’ Actual Purchase Behaviour towards Green Products in Bangladesh
Md. Sakibur Rahman, Mst. Anjuman Ara, Md. Abdul Alim, University of Rajshahi
Teck Weng Jee, Rodney Thiam Hock Lim, Swinburne University of Technology

Page 92-120   |      Download PDF   |   ABSTRACT PREVIEW


Global climate change is increasing at an alarming rate worldwide, with many developing countries reaching the limits of their ability to cope. While these countries must adopt environmentally sustainable behaviours, problems with awareness and purchase behaviours among the population remain formidable challenges to overcome. Within the context of Bangladesh, this study attempts to test consumers’ actual purchase behaviour towards green products. Employing the Theory of Planned Behaviour (TPB), a survey of 240 consumers, and Partial Least Squares-based Structural Equation Modelling (PLS-SEM) analysis, it was found that consumer attitude towards the environment, subjective norms, and perceived behavioural control have a significantly positive influence on behavioural intention, while behavioural intention has a significantly positive influence on actual purchase behaviour. The discussions along with the theoretical and practical implications presented at the end of this study are helpful for policy-makers, investors, and the related stakeholders. The conclusions, limitations, and future research directions are also discussed. 

Actual purchase behaviour, Behavioural intention, Bangladesh, Green product

Exploring Factors Affecting Young Jordanian Consumers Attitude towards Energy Drinks Consumption
Hamza Salim Khraim, Amman Arab University
Page 121-137   |      Download PDF   |   ABSTRACT PREVIEW


The energy drinks market is witnessing a massive increase in terms of sales volume all over the world. Understanding factors that affect consumers’ behavior in the energy drinks market can be very beneficial for marketing managers in many areas. This research will explore the influence of perceived benefits, knowledge, energy drink attributes, and reference groups on young Jordanian consumers’ attitudes towards energy drinks consumption. Also, it will highlight the consumption patterns of energy drinks in the Jordanian market. A quantitative research method was employed to answer the research questions, and a questionnaire was distributed to solicit the required data from respondents. To collect the necessary data, the researcher used convenience random sampling; about 302 questionnaires were completed and used in data analysis. Results show that young Jordanian consumers’ attitude is positive and relatively moderate. Price emerged as the most important attribute for energy drinks, and among the reference group, peer influence was the highest among other groups. Staying awake to study statement emerged as the main perceived benefit. Regression analysis results confirmed that perceived benefits, energy drinks attributes, and reference groups have a significant effect on young Jordanian consumers’ attitudes, while knowledge shows no significant effect. For future research, we recommend researching on how to de-market energy drinks. 

Energy drinks, Young consumers, Knowledge, Reference groups, Attitude, Perceived benefits, Jordan

Purchasing Counterfeit Mobile Accessories among Millennials
Nor Hashima Hashim, Nabila Binti Mohd Zainal, Nur Intan Syafinaz Binti Mohd Zaiharin & Siti Suriani Binti Ramle, Universiti Teknologi MARA
Page 138-153 |      Download PDF   |   ABSTRACT PREVIEW


Counterfeiting is an emerging issue that affects the economy, businesses, and consumers worldwide. This study focuses on factors such as price, ethical concern, and social influence that affects the purchase intention towards counterfeit mobile accessories products among millennials staying in Shah Alam, a suburb township in Selangor, Malaysia. The study uses a questionnaire as the source of its primary data. A total of 305 usable questionnaires were further used for data analysis. Multiple regression analysis was used to analyze the data. Results show there is a significant relationship between price, ethical concern, and social influence with purchase intentions towards counterfeit mobile accessories products among millennials. Results found that social influence factor is the most significant factor in influencing purchase intention towards counterfeit products, followed by ethical concern and price factors. The findings will provide an understanding of millennials’ behavior to the context of the study and add to the body of knowledge in understanding consumer behavior. 

Mobile accessories, Millennials, Counterfeit products, Malaysia

Factors Affecting Financial Management Behaviour among University Students
Soo-Cheng Chuah, Juliana Noor Kamaruddin, JS Keshminder Singh, Universiti Teknologi MARA
Page 154-174   |      Download PDF   |   ABSTRACT PREVIEW


Youth financial management practices have received growing consideration among various parties such as government agencies, community organisations, and education bodies as the age group is considered as a highrisk group for being involved in financial difficulties. This study examined the effects of money attitude, financial knowledge, financial self-efficacy, and locus of control on financial management behaviour among university students. All data were collected via a convenient sampling method by using self-administered questionnaire given to a sample size of 272 respondents. Following this, the data were analysed using structural equation modelling–partial least square (SEM-PLS) method. The results obtained in this study indicated that money attitude, financial knowledge, and financial self-efficacy positively and significantly influenced financial management behaviour among university students. As such, this study could serve as a useful reference for the purpose of higher education curriculum development in order to nurture good financial management. 

Financial management behaviour, Financial knowledge, Money attitude, Locus of control, Financial self-efficacy

The Influence of Financial Attitude, Financial Behaviour, and Self-Belief towards Financial Vulnerability among Public Employees in Malaysia
Amirah Shazana Magli, Mohamad Fazli Sabri, Husniyah Abdul Rahim, Universiti Putra Malaysia
Page 175- 193   |      Download PDF   |   ABSTRACT PREVIEW


Previously, the World Bank reported that Malaysia’s household debt in 2019 rose to 294.3 billion US dollars, thus placing the country as having the second-highest household debt among the nations in the Asia Pacific region. A high household debt is associated to the decrement of welfare and higher vulnerability among public employees in the country, especially those in current and retirement phases alike. Therefore, this research aimed to determine the factors potentially leading to financial vulnerability among 590 public employees in Malaysia, which was carried out by using multi-stage random sampling. To this end, a self-administered questionnaire was constructed to gather the data required. Consequently, binary logistic regression indicated that financial attitude, financial behaviour, and self-belief significantly predicted the likelihood of financial vulnerability. Meanwhile, the elements of gender and income were utilised as the control variables and found to be significant. Furthermore, the non-significant Hosmer and Lemeshow test reflected the fitness of the final logistic model, which yielded moderate classification of 74.6 per cent. The results of this study will undoubtedly benefit the government and non-governmental organisations alike in their bid to create a holistic strategy explicitly designed towards improving the general living standards. They will also promote good financial management, financial attitude, and behaviour, as well as self-belief, especially in the context of the lower-income group. Moreover, a deeper understanding of the financial vulnerability determinants plays a vital role in supporting every individual and equipping them with the financial prudence required, which would minimise the rate of financial risk in the long-run. 

Financial attitude, Financial behaviour, Financial vulnerability, Household debt, Self-belief

Factors Affecting Household Solid Waste Management Behaviour Towards Zero Waste Among Malaysian Consumers
Zuroni Md Jusoh, Syuhaily Osman, Afida Mastura Muhammad Arif, Roslina Mat Salleh, Universiti Putra Malaysia
Page 194-218   |      Download PDF   |   ABSTRACT PREVIEW


Zero waste management generally involves activities geared towards maximising recycling efforts and minimising waste generation. Accordingly, this study was primarily aimed at examining the factors affecting solid waste management behaviour among urban households located in eight states in Malaysia as gazetted and implemented under the Solid Waste Management and Public Cleaning Act 2007 (ACT 672). A total of 605 respondents were involved in this study following their recruitment via multistage random sampling and the data required were collected through a set of self administered questionnaire and analysed using Statistical Package for Social Sciences (SPSS) version 24 software. Pearson’s correlation test was then utilised to examine the relationships between variables, whereby the results indicated a significant relationship between knowledge, attitude, perceived behavioural control, and subjective norms, respectively, with household solid waste management behaviour towards zero waste. Meanwhile, the outcomes of multiple regression analysis revealed that the factors of solid waste management behaviour, namely knowledge, perceived behavioural control, and subjective norms contributed 36.3 per cent of the explained variance (Adjusted R2 = 0.363, F = 86.974, p < 0.001). In particular, perceived behavioural control emerged as the most influential variable predicting the solid waste management behaviour at (β = 0.365, p ≤ 0.001). Hence, it can be concluded that knowledge, perceived behavioural control, and subjective norms serve as significant factors in shaping the solid waste management behaviour towards zero waste, wherein perceived behavioural control poses the strongest effect. Therefore, each household should shoulder their key role in waste management as their actions are controllable in this particular context. Besides, the entire community, including the government, needs to work together for the purpose of realising the national aspirations of a developed nation and lessen the household waste towards becoming a zero waste country. 

Attitude, Household, Perceived behavioural control, Solid waste management, Subjective norms

Tongkat Ali, Kacip Fatimah, and Ginseng: Functional Food Consumption Intention among Malaysian Eldery
Flaviana Ivy Febian, Sharifah Nurafizah Syed Annuar, Universiti Teknologi MARA
Page 219-233
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Recent studies have reported that Malaysia is the fattest country in Asia in the past 30 years. Nearly 25% of adults in the country has been diagnosed with fatty liver, whereas an individual is most likely to have the same issue as they get older. Furthermore, a research in 2015 demonstrated that only one out of 10 Malaysian adults of older age was healthy, which is typical due to poor lifestyle and diet. For a long time, many believe in the ability of functional foods to cure diseases and provide health benefits on top of basic nutrition. The proponents of such foods are assumed to strengthen one’s health and help in reducing the risk of non-communicable diseases, such as hypertension, diabetes, and asthma. They generally contain components of bio-active or enhanced nutrients, which are stable and capable of providing immunity. Therefore, this paper aimed to investigate the intention to consume functional food among the Malaysian elderly population. Perceived susceptibility, perceived barriers, and perceived benefits were thus tested as the independent variables, whereby a mall intercept study was conducted. After interviewing 250 older people throughout four major cities in Malaysia, SPSS 24 and Smart PLS 3.0 were utilised to analyse the collected data. The results showed that perceived barriers and perceived benefits yielded positive relationships with the intention to consume towards functional foods among the target population. Meanwhile, perceived susceptibility was found to have a negative relationship towards the intention to consume. Accordingly, the present work highlights the factors determining the intention to consume functional foods among elderly people; an understanding of these factors will help food marketers in product development and promotions. In addition, relevant agencies can benefit from the research by designing proper nutrition education and campaigns. 

Intention to consume, Functional food, Malaysia, Older consumers, PLS-SEM