Customer Preference to Shop in Supermarket or Open Market

Nur Afrina binti Ikhsan

Norsufyana binti Ahmad Sauffi

Nur Nazratul Azreen binti Azlan

Raja Nur Hakimah Munirah binti Raja Ibrahim

A4CS1114B

1. Introduction

Title : Customer Preference To Shop In Supermarket Or Open Market.

1.1 Background of study

In the modern of era globalization there are many shops with various price. As a buyer we need to think wisely before we buy something. Moreover, nowadays with implementation of GST, our daily expenses increasing. So, we should make a comparison between the markets that will give benefits to us.

There are a lot of differences between supermarkets and open markets. To begin with, supermarkets tend to open twenty-four hours a day, seven days a week. People can go there and buy goods whenever they want. Open markets open only on fixed time, in the morning or afternoon. Besides, supermarkets provide comfortable space, clean floor, cool air-conditioner, and free parking lots. Also, a wider variety of goods can be found in it, not only goods but also foods but also everyday articles. Open markets are more like a bunch of stores cuddling together on a street or in a big square. People living nearby can go and buy some fresh vegetables and meat. Also, the prices in open markets are mostly lower than those in supermarkets.

1.2 Profile of company

Supermarket or also called grocery store is a self-service store offering a wide variety of product. Supermarket is organized into several department. It has a larger size and wider selection than a traditional grocery store but it is smaller than a hypermarket or superstore.

Open market is an economic system with no barriers to free market activity. An open market is characterized by the absence of tariffs, taxes, licensing requirements, subsidies, unionization and any other regulations that interfere with the natural functioning of the free market.

1.3 Problem Statement

The first problem statement in our project is the issue price of product in the supermarket and open market outlet. Therefore, we want to compare the fresh food in supermarket and open market with the lowest price. Second, the issues about quality of the product in the outlets. So, we need to identify the quality of fresh food whether it fresh or not. Other than that, we also must know the availability of the product and want to recognize whether the supermarket and open market that customers prefer to shop the most.

1.4 Research Question

1. What is the difference of the price of fresh foods between supermarket and open market?

2. What are the factors that lead customer’s preference to shop at supermarket rather than open market?

3. How does the condition of markets will attract customers?

4. Does the product availability lead the customer to shop frequently?

1.5 Research Objectives

1) To compare the price, quality and availability of fresh food in supermarket and open market.

2) To identify market condition between supermarket and open market.

3) To determine if price mechanism will influence the customer preferences to shop in supermarket or open market.

4) To determine and compare the coefficient of determination, R2 of price and quality of fresh food product between supermarket and open market.

1.6 Theoretical Framework

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1.7 Research Hypothesis

1. H0 : There is no difference in price of product between supermarket and open market

 H1 : : There is difference in price of product between supermarket and open market

1. H0 : There is no relationship between factors that lead customer’s preference to shop.

 H1 : There is relationship between factors that lead customer’s preference to shop.

1. H0 : The condition of markets would not attract customers .

H1 : The condition of markets that would attract customers .

1. H0: Product availability not lead the customer to shop frequently.

 H1: Product availability lead the customer to shop frequently.

1. H0: The location of the market

 H1: Product availability lead the customer to shop frequently.

1.8 Significance of Study

This research study give some significant towards the company who manages the supermarkets and open market. The company may be able to improve their selling strategies in order to increase the company’s profit. This study will be beneficial for the company so that they are aware of what they lack in.

Besides, it could be beneficial for the customer to choose which shops that they prefer more. It give customer a choice in choosing a shop that rely with their monthly expenditure.  With the implementation of GST nowadays, people need to be a smart consumers and think wisely before buying anything.

Not only that, it will be helpful for the first-timer shopkeepers to choose which market can be the best supplier for them.

1.9 Limitation of the Study

When preparing this research study, we discover that there are still limitation for us to complete the research.

First and foremost, there is not much supermarket and open market to be chosen. In a cowboy town like Tapah, there is only one supermarket available which is Tf Mart that is located in the middle of the town. For people who live far from the town area, it will be quite difficult for them to shop at that supermarket. While the open market is open in specific time and specific day only. Open market in Tapah only open early in the morning. So, we have to plan carefully our schedule in order to visit those places.

Second, the distance between the shops which is far from each other make it difficult for us to do the study. Since Tapah is not a really developed town, there are only a few small shops available around the village and a few shops at the town. It takes a little bit of time to go from one shop to another shop.

Furthermore, it takes a lot of cost to go to the supermarket and open market. We as a student need to rent a car to go to the selected markets. The rental cost and petrol cost were calculated and thus we cannot do much research outside the university due to the higher cost.

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