Professional Documents
Culture Documents
METHODOLOGY
GLOBAL HALAL LOGO STANDARDIZATION
EN KAHIRUL ANWAR
Table of Contents
ACKNOWLEDGEMENT................................................................................................. 4
ABSTRACT................................................................................................................... 5
1.0 CHAPTER 1........................................................................................................... 6
1.1 Background of the industry/Study.....................................................................6
1.2 Problem Statement........................................................................................... 7
1.3 Objective(s) of the research..............................................................................7
1.4 Scope of the study............................................................................................ 7
1.5 Significance of the study...................................................................................7
1.6 Definition of terms (if any)................................................................................ 7
2.0 CHAPTER 2........................................................................................................... 8
2.1 Background of the research area......................................................................8
2.2 Concept and definition of key components of the research area......................8
2.3 Theoretical framework...................................................................................... 8
2.4 Statement of the research question(s)..............................................................9
2.5 Statement of the hypotheses............................................................................9
2.6 Summarize to conclude..................................................................................... 9
3.0 CHAPTER 3......................................................................................................... 11
3.1 The research design........................................................................................ 11
3.2 The population and sample size......................................................................11
3.3 The instrument for the research......................................................................11
3.4 The fieldwork and data collection method......................................................11
3.5 The data analysis............................................................................................ 11
4.0 CHAPTER 4......................................................................................................... 12
4.1 Profile of respondents...................................................................................... 12
4.2 Discussion of findings 1/objective 1/hypothesis 1...........................................12
4.3 Discussion of findings 2/ objective 2/hypothesis 2/research question 2..........12
4.4 Discussion of findings 3/ objective 3/hypothesis 3/research question 3..........12
4.5 Discussion of findings 4/ objective 4/hypothesis 4/research question 4..........12
4.6 Discussion and synthesizing the findings and implications to the theoretical
framework/Academic construct.............................................................................12
5.0 CHAPTER 5......................................................................................................... 13
5.1 Summary of key findings.................................................................................13
5.2 Application of these findings to the specific situation.....................................13
REFERENCES............................................................................................................ 14
APPENDIX................................................................................................................. 15
2
FOOTNOTES.............................................................................................................. 16
3
ACKNOWLEDGEMENT
In the name of Allah, the Most Compassionate and the Most Merciful, all praises for Him the
Lord Almighty, Prophet Muhammad ( Peace be upon His messenger), his family members and
companions.
Thank God for giving me the courage, strength, opportunity and patience to complete the task. I
am also thank my advisors, Mr Khairul Azfar Adzahar and Mr Mohammad Khairul Anwar
Hussain for their guidance throughout the process of completing this project. Lastly, I would like
to thank all the candidates for their corporation to answer all the quentionaires.
I am very grateful to be able to play my part and contribute towards the development of this
project.
4
ABSTRACT
This study aims to identify confidence of consumers towards Global Halal logo standardization,
the relationship between the factors which are Government involvement, degree of awareness,
trustworthy, manufacturing practice and to determine the most dominant factor. To accomplish
the objective, the analysis used is the regression analysis by considering all the factors involve
in the conceptual framework. The research took place in Kelantan. We distributed total of 200
questionnaires, however only 124 respondents returned the answered questionnaires. The data
derived are as included in this report. Other than that, we also used several journals as
references for this research. Recommendations to Halal logo for future references are also
provided.
5
1.0 CHAPTER 1
1.1 Introduction/Background of the Study
Halal is a Quranic word meaning lawful or permitted. In reference to food, it is the dietary
standard, as prescribed in the Quran the Muslim scripture. General Quranic guidance dictates
that all foods are Halal except those that are specifically mentioned as Haram. When the term is
used in relation to food in any form whatsoever, in the process of trade or commerce as an
aspect of trading or part of an aspect of trading for the referred to food, the terms Halal,
Guaranteed Halal or Muslim Food or any other terms that may be used to specify or may be
understood as meaning to indicate as permissible to be consumed by Muslims and allowed in
their religion for the referred to food to be consumed, must therefore mean the following, that is,
the food for which such terms are being used does not stem from or consists of any part of or
item from animals that are forbidden to Muslims by Islamic law, or animals that have not been
slaughtered according to Islamic law, does not contain any substance that is considered impure
in Islamic law is not prepared, processed or manufactured using equipment that are not free
from impurities as defined by Islamic law and in the preparation, processing or storage stage,
does not come in contact with or is stored near any kind of food that does not meet the
requirements of para any substances that are considered polluted by Islamic law.
Halal standards help companies and customers distinguish what is accepted from a Shariah
perspective. A product can either be halal or haram depending on its ingredients and all the
activities associated with it from the point of origin to the point of consumption and going
through the entire value chain that created it.
Before globalization there was no mentioning of the word halal among Muslim consumers,
aside from those traveling to non-Muslim countries, as products in the Muslim markets were
produced locally or by neighboring Muslim countries, where halal was taken for granted.
Halal logo is a registered trademark and guarantees product compliance with the Islamic Dietary
Laws. Halal consumers found it difficult to ascertain which products conform to Islamic Dietary
Laws and their suitability for Muslims. This is why the Halal trademark logo was established.
When consumers purchase products displaying the Halal mark, they do so with confidence and
peace of mind, being assured the product has been authenticated bt The Board and conform to
Islamic Syariah. In Malaysia, Halal logo refers to the logo issued by JAKIM or JAIN or MAIN.
6
1.2 Problem Statement
Perceived value has been the core concern of any businesses. By knowing customers
perceived value, business can come out with strategies to improve their products and services
that will satisfy the needs and wants of their customers. MyFC needs to compete with existing
fast food businesses which are already known by Malaysians. In order to do so, MyFC needs to
come up with ideas that will encourage positive perceived value among the customers.
Arguments have been made about the factors that would give effect to the customers perceived
value towards products or services provided. Existing writing mentions that product quality and
service quality serve as predictors of customer perceived value (Bolton and Drew, 1991; Chen
and Hu, 2010; Lai et al., 2009; Zeithaml, 1988). Eggert and Ulaga (2002) points out that service
quality features such as tangibles, empathy, reliability, and responsiveness are positively related
with consumer perceived value. Unfortunately, there is a lack of research that investigated the
direct impact of food quality as a variable on perceived value. Ryu et al. (2008) study appears to
be the only empirical evidence that indicates that food quality significantly affected perceived
value. Nevertheless, considering the fact that perceived product quality affects perceived value
and food quality is well accepted as one of the key elements of perceived product quality in the
context of food businesses, it is coherent to propose the relation between food quality and
customers perceived value.
Other than that, previous studies have found that the perceived quality of the physical
environment (Baker et al., 1994; Nguyen and Leblanc, 2002) can also significantly influence the
corporate image. This image can have a following influence on customer perceived value and
satisfaction. This, in turn, will affect their loyalty (Lai et al., 2009; Patterson and Spreng, 1997;
Prendergast and Man, 2002; Ryu et al., 2008).
Thus in this research, we are going to study about the customers perceived value towards
MyFC and what affects the perceptions towards the fast food chain whether it is the product
quality, service quality or the corporate image.
7
1.3 Objective(s) of the research
1.3.1 To determine whether the corporate image affect the perceived value.
1.3.2 To determine whether the product quality affect the perceived value.
1.3.3 To determine whether the service quality affect the perceived value.
This study focuses on the perceived value of MyFC by the customers and the factors that might
affect the customers perception towards the fast food chain. This research highlights the criteria
that a customer looks at when they have purchasing intention. We are going to focus on
whether the product quality, service quality, or the corporate image of the brand will affect the
customers perceived value.
Questionnaires have been distributed to the nearest population which is the customers around
Merbok and UiTM students. The data gathered is analyzed and further explanation will be
explained in the next chapters.
There are also limitations in conducting this research. There is lack of cooperation from the
respondents as they do not have time to answer the questionnaires. Besides that, the data was
collected only in Merbok and UiTM thus limiting the data gathered. Therefore, further research
has to be conducted in order to get a better result.
This study is important to find out the customers perceived value towards MyFC fast food chain.
It will fill the knowledge gaps on what factors that will give affect towards the values perceived
by the customers. This can help MyFC on developing better marketing strategies to promote
their products to the customers.
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2.0 CHAPTER 2
In this day and age, almost everybody is busy doing something be it work, school, classes or
attending house chores. There will be times where they do not feel like cooking or waiting long
at restaurants. There will also be times where they feel like eating fast food as they enjoy it. Our
study will be about MyFC. What is the customers perceived value towards MyFC? What are the
factors affecting the customers perceived value? This research will answer the questions.
There are several factors that might affect the customers perceived value towards the fast food
chain. In this study we are going to focus on three variables. First is whether the product quality
will give effect to the perceived value. Second is whether the service quality will give effect to
the perceived value and lastly whether the corporate image will give effect to the customers
perceived value towards MyFC.
Tang (2007) proposed that the customers total offering towards organizations and the sum of
the publics beliefs, ideas, and impressions toward specific organizations are what build
corporate image. Meanwhile, Aydin and Ozer (2005) proposed that corporate image is a result
of all of a customer's consumption experiences, and service quality is a representative of these
consumption experiences thus the perception of corporate image is directly affected by the
perception of service quality. Karaosmanoglu and Melewar (2006) pointed out that corporate
brand image cannot be directly managed by the companies but by building and communicating
an appealing identity. Previous studies have shown that favorable corporate image can benefit
organizations in number of ways (Ahmed Udo Mayaki, 2013; Fombrun, 1996; Carmeli and
Tishler, 2005; Rindova, Williamson, Petkova, and Sever, 2005).
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2.2.2 Service Quality
Namukasa (2013) suggest that in todays competitive environment, delivering superior service
quality is an absolute need for success and survival. Service quality and customer satisfaction
have become the most important marketing priorities since they will lead to consumer loyalty,
such as repetitive sales and positive word-of-mouth (Han and Ryu, 2009; Liu and Jang, 2009). It
is generally assumed that the key to gaining an advantage in todays intensely competitive
market lies in delivering high-quality service that will in return lead to satisfied customers (Han
and Ryu, 2007). Rhoades and Waguespack (2008) point out that gaining a better understanding
of customers perception of service quality is an essential component of a successful positioning
strategy.
There is no doubt that the quality of the product is important to the customer. An important
concern for the firm including their perceptions of product quality is how this perception can be
implemented; how they can influence this perception; and the impact on the firm's financial
results due to changes in product quality or customer perceptions of product quality.
Parasuraman et al. (1988) described the quality measurement by a consumer is seen from the
product's overall quality. Perceived product quality is defined as an evaluation of the most
current experience (Fornell et al.,1996). Fornell subdivided quality into customization (the
degree that it meets specific needs) and reliability (the degree to which it is free from defects).
10
2.3 Theoretical framework
CORPORATE
IMAGE
SERVICE QUALITY
The figure shows the theoretical framework of the study. It consists of independent variable and
dependent variable of the research.
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2.3.1 The Independent Variable
The first independent construct is the corporate image. The items included in under this
construct consists of
1) Local product
2) Trustworthy (Halal)
3) Easy to find
4) Many choices
5) Availability
The second independent construct is the product quality. The items included in under this
construct consists of
1) Product quality
2) Product portion
3) Product price
4) Product variance
5) Product endurance (long-lasting)
The third independent construct is the service quality. The items included in under this construct
consists of
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2.4 Statement of the research question(s)
Is there a significant relationship between corporate image of the firm and customers perceived
value?
Is there a significant relationship between product quality and customers perceived value?
Is there a significant relationship between service quality and customers perceived value?
2.5.1 Hypothesis 1: There is a significant relationship between corporate image of the firm and
customers perceived value.
2.5.2 Hypothesis 2: There is a significant relationship between product quality and customers
perceived value.
2.5.3 Hypothesis 3: There is a significant relationship between service quality and customers
perceived value.
13
3.0 CHAPTER 3
3.1 Introduction
The main purpose of this research is to investigate on the perceived value of MyFC by the
customers and the factors that might affect the customers perception towards the fast food
chain. There are consists of two methodology that have been done for the research which are
secondary and primary data. The primary data consists of quantitative method which is
questionnaire. The secondary data are use to identify the problem of this study and it is
supported by primary data collection. Secondary data consists of qualitative methods which is
literature review that been extracted from few journals and reports from other researcher
regarding fast food chain perceive value
Research design is the framework or blueprint for conducting the marketing research project. It
shows the detail and the procedure that necessary for obtaining the information needed to
structure or solve marketing research problem. Type of research design that will be use in this
research is conclusive research design. Conclusive research design consists of descriptive
methods which are secondary research design, survey or questionnaire research design, and
observation research design.
In order to investigate the customer perceive value on MyFC, a structured questionnaire was
distributed to the nearest population which is the customers around Merbok and UiTM students.
A total of 200 respondents were randomly selected for the research. Total number of distribute
questionnaire to the respondent were 200. A total of only 124 completed and useable
questionnaires were return by the respondent producing 100% response rate.
Data collection technique used in this research was sample survey technique with
questionnaire and closed statement that used Likert scale and given to the respondents.
This research used quantitative method and respondents were determined by using SPSS. The
respondents criteria in this research are the consumers in Merbok region.
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3.5 The Research Instrument
The primary data instrument consists of quantitative method which is questionnaire. The
questionnaire derived from several resources. The questionnaire consist of 25 question divided
into two parts which are part A and part B. Part A question focus on the demographic factor of
the respondents including age, sex, education, occupation and income.
While in part B the question related to the dependent variable (DV) which is the customer
perceive value on the fast food. The first five questions asked on the perception customer on
the taste, preferences, frequency and the service offered by fast food chain. The rest of the
question related to independent variable (IV) that influencing, there are three variables which
are corporate image, Product quality and Service quality.
In order to get respondent perceive value, this research using Likert scale as indicator in
questionnaire scale. Likert scale is a rating scale that requires the respondents to answer a
degree of agreement or disagreement with each of a series of question. Typically, each scale
item has five response categories, ranging from strongly disagree, disagree, neutral, agree
and strongly agree.
The secondary data instrument is the qualitative data which is literature review. The information
from secondary data is more reliable. For this research, we used Google scholar to search for
published journals, articles and books. Researcher used secondary data because information
gathered can be easily accessible, relatively inexpensive, and quickly obtained.
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4.0 CHAPTER 4
4.1 Introduction
This section presents the findings of this study based on the objectives identified earlier in the
report. The findings of the study are presented in figures and tables and significant result are
further discussed and analyzed in details in this section. Basically, data analysis of this study
employed SPSS statistical software version 21. The statistical tools adopted in this study are
frequency analysis, exploratory factor analysis, reliability test, variance and also regression
analysis.
4.2.1 Age
The study sought to find out the age of respondents. According to the findings, the majority of
the respondents that answer the questionnaires are from age between 18-24 years old which
will total of 63.7 percent out of 124 respondents. Followed by age from 25-34 years old with the
total of 28.2 percent, for the respondent of under 18 years old represents 4.8 percent and the
least are age above 35 with only represent 3.2 percent . Table 1 below shows the overall
result.
AGE
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4.2.2 Sex/Gender
From the output shown below we know that there are 95 males which when convert to the
percentage, will get 76.6 percent and for the females, which total of 29 people and in
percentage, 23.4 per cent from a total of 124 respondents. The questionnaire is distributed
randomly. Therefore, the differences are quit high
GENDER
17
4.2.3 Education
The education level is based on current education. The majority of the respondents on the
education levels that answer the questionnaires are from Diploma which is 36.3 percent out of
124 respondents. The second highest are from Secondary school with 31.5 percent, follow by
Bachelor with 21.0 percent and by none (working) 9.7 percent out.
EDUCATION
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4.2.4 Occupation
The majority of the respondents on the Occupation that answer the questionnaires are from
Business which is 61.3 percent out of 124 respondents. The second highest are from Non-
government with 24.2 percent, and the least are from government which only 14.5 percent from
respondents. This shows that people that have business tend to have fast food during their
working time. It might be more convenient with their busy schedule.
OCCUPATION
19
4.2.5 Income
The majority of the respondents answer the questionnaires that salary RM 500 to 1000 is the
higher in percentage by 37.9 percent. Followed by salary RM 1001 to 1500 with 27.4 and for
none that might be student or unemployment with 22.6 percent and salary with 1501 to 2000
with 12.1 the least from 124 respondents. This indicates that the percent with high pay income
still prefer to buy fast food.
INCOME
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4.3 Exploratory Factor Analysis
df 136
Sig. .000
From the table above, the findings tell that KMO shows 0.785 which means it is better than
acceptable limits. The Barletts test has met the criterion with significant .000. This shows that
both variables resulted the KMO number is greater than 0.5. Kaiser (1974) recommends
accepting values greater than 0.5 are acceptable. If the number less than 0.5 it is recommended
to collect more data or rearrange the selected variable.
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4.3.2 Pattern Matix
Pattern Matrixa
Factor
1 2 3
FREQUENCY 1.020
TASTE .932
PREFERENCE .835
HEALTHY .726
HALAL .984
PRODUCT
AVAILABILITY .488
CONCERN .987
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4.3.3 Variance
a. When factors are correlated, sums of squared loadings cannot be added to obtain a total
variance.
The table above shows the total variance. The first eigenvalue is equal to 5.484, and
corresponds to 45.841 %of the variance in the original data. This shows a good result.
23
4.4 Reliability Analysis
N %
Exclude 0 0.0
da
Reliability
Statistics
Cronbach' N of
s Alpha Items
.915 20
From the both table, we can conclude that, the value of Cronbachs Alpha for variable of Attitude
is 0.915. There are 20 questions for our research that have 124 respondents. The value of
0.915 for reliability statistic shows satisfying result since the reliability should be at least at 0.6
and above to consider reliable. It shows that the questions represent the entire variable.
24
4.5. Multiple Linear Regression Model
Model Summary b
The linear of correlation (R) measure the type and strength of correlation. In this research
shows that the correlation (R ) reading is 0.399 or 39.9 percent. The results are as shown in the
table above.
R2 is a number that indicates how well data fit a statistical model. It provides a measure of how
well observed outcomes are replicated by the model. To show good data relationship between
dependent and independent variable R2 must equal to 0.5 and above. From the research, it give
a reading of R2 = 0. 159 shows the weak relationship between dependent variable (perceive
value) and independent variable of the data (corporate image, product and service quality).
25
4.5.3 Anova
ANOVA a
According to table above Anova table derive to see if there is any difference between groups on
some variable. The (Sig) indicate to tell researcher if the result is significant and that there is no
different between all the variable scores. If the result is above 0.5, means that the variable
condition is about the same for each of the group. From this research we can see that the
reading is 0.000 means there is a huge different between each group of respondent towards the
variables. It shows that all the group scoring differently.
26
4.5.4 Coefficient
Coefficientsa
Based on table above, coefficient indicates that mean IV2 (Product quality) is the most dominant
factor influence in customers perceive value of MyFC due to the highest Beta value of 0.211.
Followed by meanIV1 (corporate image). The meanIV3 (service quality) play minimum factor to
the customers perceive value.
27
4.6 Discussion of findings.
From the hypothesis, it can be said that there is a significant relationship between the product
quality of MyFC towards the customers perceived value. It shows that some of the customer
usually looking for the quality of the product with reasonable price. Customer will go for the
reasonable type of fast food that can help them consume time besides give them a full
satisfaction in term of it portion and different type of meals.
The perceive value of customers towards MyFC corporate image is good. They actually have a
positive feedback regarding MyFC become one of the home ground food restaurant. Customer
feels secure since it is fast food service that originated from our country. Therefore, it is the
trustworthy Halal product. MyFC have a numbers of MyFC kiosk scattered all over the north
region. That is why the MyFC is quit known to the northern region people. The availability of
MyFC open during day and night give quit positive response because sometimes student and
business people do not have time to go for proper dinner. So, they choose fast food instead.
The perceived value that customers notice about the MyFC kiosk is that the customers do not
have wait for a long time. In addition of it convenient stall/kiosk, the customer felt very
comfortable to purchase the product.
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5.0 CHAPTER 5
In general, the present study was designed to investigate the relationship of the factors that
contribute towards perceived value. The factors are product quality, service quality and
corporate image. The respondent group tested on the present study was customers randomly
selected from various backgrounds. Due to these differences, the data will provide wide range
of perceptions scope.
Based on the study that have been done, it can be concluded that from the three variables
which is corporate image, product quality, and service quality only one variable is significant
which is product quality , while service quality and corporate quality is not significant. So
service quality and corporate image has no evidence to support the relationship.
This may due to the unsuitable data collection and the wrong independent variable that effect
the perceive value. Other reason includes the wrong formulation of the questionnaire and it
contributes towards redundancy of respondents in answering the questionnaire. Moreover, since
MyFC is not big as others fast food restaurant for instance, KFC and McDonald , customers not
really familiar with MyFC.
29
5.2 Recommendation for future research
There are some suggestions for the future study on the similar field. Since the present study
was developed from past literature and was built on a conceptual framework without prior
statistical support, more in depth research should be carried out to reveal better concrete
empirical evidence on factors that contribute towards perceive value among customers towards
fast food (MyFC). It is hoped that the results obtained from the present study can be considered
as a fundamental groundwork to develop future research. A more relative comprehensive
instrument should be developed to match the correct responses needed and produce more
substantial results.
Besides that, in doing this research the researcher will need more time in order to examine the
relationship of corporate image, product quality and service quality towards perceive value
among customer. The study could be done with more known brand of fast food and better
visibility of the result could be obtained through wider scope thus will lead to more significant
outcomes for enhanced conclusions.
30
REFERENCES
Gordon H.G. McDougall and Terrence Levesque (2000). Customer satisfaction with services:
putting perceived value into the equation. Journal Of Services Marketing, Vol. 14 No. 5,
Pp. 392-410
H. Rafet YUNCU, Oktay EMIR and Yalcin Arslanturk (2013). A Study on Determining the
Factors That Influence the Customer Value in the Fast Casual Restaurants. International
Journal of Business and Social Science Vol. 4 No. 3
Hong Qin and Victor R. Prybutok (2009). Service quality, customer satisfaction, and behavioral
intentions in fast-food restaurants. International Journal of Quality and Service Sciences
Vol. 1 No. 1, pp. 78-95
Huam Hon Tat et al. (2011). Consumers Purchase Intentions in Fast Food Restaurants: An
Empirical Study on Undergraduate Students. International Journal of Business and
Social Science Vol. 2 No. 5
Moonkyu Lee and Francis M. Ulgado (1997). Consumer evaluations of fastfood services: a
cross-national comparison. The Journal Of Services Marketing, Vol. 11 No. 1
Saleha Anwar and Amir Gulzar (2011). Impact Of Perceived Value On Word Of Mouth
Endorsement And Customer Satisfaction: Mediating Role Of Repurchase Intentions.
International Journal of Economics and Management Sciences Vol.1, No. 5, pp. 46-54
31
APPENDIX
Dear respondent,
32
A. Please fill up the questionnaire below with your response. I
assure you that the information given by you will be considered
confidential and shall not be shared with any other party.
1. Age Category:
2. Sex:
Male Female
3. Education Background:
Diploma None
4. Occupation:
Government Business
33
B. Please respond to the following items by circling the number
which corresponds to your
agreement with each statement.
.
CORPORATE IMAGE
PRODUCT QUALITY
34
11. The portion is suitable for on the go customer 1 2 3 4 5
SERVICE QUALITY
35