Factors affect customer satisfaction on buying Innisfree

1.0 Introduction

1.1 Background of study

In the globalization era, food, water, technology, transportation, education is the

factors to fulfill human needs and wants. Besides that, skincare and cosmetic
also is another factor to fulfill the needs of people. Because the skincare &
cosmetic need to apply on the face in daily life to have the healthier skin.
Therefore, Innisfree Company will do the market survey and target to the
audience who like to be beautiful, healthy and good looking. The multinational
skincare shop which is Innisfree opened at the Gurney mall on 2018. The
background of the Innisfree was launched by the largest skincare and cosmetic
company in South Korea, Amore Pacific in 2002, marketed as its first eco-friendly
brand. The name originates from W. B. Yeats' poem, 'The Lake Isle of Innisfree'.
Their product very useful and comes out very natural ingredients. The function of
the product is to provide all-days hydration, anti-aging, reduce the acne,
brightening the skin, cooling and refreshing skin. Other than skin protection, the
most favorable product is cosmetic and eye care, body care.

1.2 Problem of statement

The problem has face by the Innisfree when they are opening on the first day
they has received many complaints from the customer, such as waiting time is
too long when need to make payment, lack of stocks. Because is the first day of
opening, employees are lack of skills to handle the problem such as how to
explain the functions of the product to the customer. Employees are difficult to
read the mind of the customer when they are facing the picky customer. In order
to understand the customer needs, Innisfree company have created
questionnaire to ask what type of skin the customer and what product usually the
customer use.
1.3 Importance of study

The importance of this research proposal is to investigate on young generations’

attitudes towards the satisfaction on Innisfree in Malaysia. This is also to study
on the perspective of Innisfree’s customers towards their products and services
that provided. For example, what are the causes which will influence their
customers decide to purchase again to their products. In addition, the factors
influencing satisfaction of customers such as the price and quality of products,
how’s their employees treat their customers are to study whether it can affect to
their customers’ decision making. And also, this study can help to understand
more on the customer’s behaviors and what are the current market trend in skin
care market within young generation group in Malaysia.

1.4 Scope of the study

In this research proposal, the study will conduct at Innisfree in Malaysia. It is to

study whether the factors such as the quality of Innisfree’s products, price,
service quality in Innisfree Malaysia outlets, promotion which given to the
customers and convenience on website accessibility of Innisfree in Malaysia
have significantly influence on the customer satisfaction. Therefore, there will be
250 respondents needed in this study which include 125 males and 125 females.
The target audiences ages will be in between 20 – 35 years old. The profile of
the focus respondents are those young and smart individuals who familiar with
using nature and eco-friendly skincare products.
2.0 Research Goals

2.1 Research objective

General- The objective of the research is to investigate if there is a significant

influence of the selected independent variables on customer satisfaction.

Specific-

 To investigate whether the product quality give significant impact on

customer satisfaction at Innisfree Company.

 To investigate whether the price give significant impact on customer

satisfaction at Innisfree Company.

 To investigate whether the service give significant impact on customer

satisfaction at Innisfree Company.

 To investigate whether the promotion give significant impact on customer

satisfaction at Innisfree Company.

 To investigate whether the website accessibility give significant impact on

customer satisfaction at Innisfree Company.

2.2 Research Questions

To complete this analysis, the following research question should be answered:

1) Does the product quality significantly impact the customer satisfaction at

Innisfree Company?
2) Does the price significantly impact the customer satisfaction at Innisfree
Company?
3) Does the service significantly impact the customer satisfaction at Innisfree
Company?
 4) Does the promotion significantly impact the customer satisfaction at
Innisfree Company?
5) Does the website accessibility significantly impact the customer
satisfaction at Innisfree Company?

2.3 Hypotheses

Set 1:

Ho: All coefficients are zero.

H1: At least one of the coefficients is not zero.

Set 2:

Ho: Product quality has no significant impact on customer satisfaction.

H1: Product quality has a significant impact on customer satisfaction.

Set 3:

Ho: Price has no significant impact on customer satisfaction.

H1: Price has a significant impact on customer satisfaction.

Set 4:

Ho: Service has no significant impact on customer satisfaction.

H1: Service has a significant impact on customer satisfaction.

Set 5:

Ho: Promotion has no significant impact on customer satisfaction.

H1: Promotion has a significant impact on customer satisfaction.

Set 6:

Ho: Website accessibility has no significant impact on customer satisfaction.

H1: Website accessibility has a significant impact on customer satisfaction.

3.0 Theoretical Framework

Independent Variables

Product Quality

Price
Dependent Variable

Customer Satisfaction
Service

Promotion

Website
Accessibility
3.2 Empirical framework

3.2.1 Product quality

Product quality is one of the factors to satisfy the customers. The quality of
product may effect on their decision making for next purchase in Innisfree. So
connect a deep relationship between Innisfree and consumers are important. For
Innisfree (2019), it is a South Korea skin care brand which provides organic and
chemical free products with high quality ingredients from Jeju, South Korea. For
example, one of the natural ingredients which contain in their products is organic
green tea. The organic green tea is rich in nutrients and helpful for all types of
skin including sensitive skin users. Of course by using the high quality ingredient,
Innisfree have the ability to meet the customers’ expectation which demand on
natural ingredients skin care products.

3.2.2 Price

Price is also another important variable which could impact on customer

satisfaction. According to a study by the Solvay Brussels School in 2004, it
mentions that customers are more likely to display customer satisfaction when
the products are in a reasonable price.

In addition, the price of products that place between “too expensive” and “too
cheap” will effect on a customer intention to purchase the product. At the same
time, customers will give an attention to the price paid by other customers as no
one is happy to pay more cash compared to other customers. A price that is
either too high or too low sends a positive message to the customer about the
quality of the product and the value of their purchase. Hence, the price will
influence the perception of the customers and it will influence their willingness to
become a customer.

3.2.3 Service

An organization that are able to provide a good service to their customers could
have an opportunity to get the trust from customers in order to gain more regular
customers for their business. A good quality of service is also an important
method that will bring a good impression to customers. Comparison of
expectations on before and after used services is the result of service quality and
identifies procedure of the service transfer is known service quality perception
(Ganguli & Roy, 2010). Success in provide a quality service such as the ability to
respond to customers’ problems may able to meet satisfaction of customers. In-
store consultants are human resources which enable to provide credible service
and information on in-store products with professionalism to consumers (De
Chernatony and McDonald, 1998). The service that provided by Innisfree for
example the skin care advices from employees when the customers are seeking
for some suitable products based on their skins’ conditions.

3.2.4 Promotion

Another factor which will have an impact on customer satisfaction is promotion.

According to Dharmesta and Irawan (2001: 345-349), promotion is essentially a
form of marketing communication aimed at stimulating demand, which means
marketing communication is a marketing activity that seeks to disseminate
information, influence and remind the target market of the organization and its
product willing to accept, buy and loyal to the products or services offered by the
organization concerned. The amount or value of promotion and the length of the
promotion time provided will decide on the satisfaction of customers.

According to the study from Kotler and Armstrong (2008: 2015) the purpose of
promotion is very diverse. Sales can use customer promotions to encourage
short-term customer purchases or improve a long term relationship with
customers. Normally the tools that use to promote is to advertising. A high level
of attractiveness in advertises might able to attract more customers to purchase
the products and services.

Another promotion such as provide coupons, points reward, product sampling is

also the main tool to reach the customer satisfaction. For example, most of the
customers will love coupons as it helps them on saving cost when they buy some
items. So when they get a discount for their purchases, the level of satisfaction is
able to increase. Additionally, coupons may help the organization on increasing
the sales and promote on certain brands.

3.2.5 Website accessibility

The convenience of website accessibility plays an important role to fulfil the

satisfaction of customers. High qualities of website not only determine the
intension purchase of customers but also customer will use online website to
purchase the products. A low quality of website could reduce the satisfaction of
customers and at the end it will cause customer lost and also profit reduction.

Some of the website quality elements such as information quality, response time
and visual attraction affect customer perception (Liao et al., 2009). If customers
can feel the high quality of website, then they will have higher trust on the
organization. Hence, the satisfaction of customers is also fulfilled from this as
they have the ability to provide good quality of products and services.

3.2.6 Customer satisfaction

A study of Susanto in 2010 said that satisfaction is the level of a person's feelings
after comparing the performance or perceived results compared with their own
expectations. Customer satisfaction is a measurement to determine how happy
of the customers are with the organizations’ products and services. The
information to understand the level of customer satisfaction such as surveys is
able to help an organization to improve their products and services. Fulfil the
satisfaction of the customers will make them loyal to the organizations. It is
important for an organization to gain loyalty from customers so it could ensure
the profit of an organization.

According to Kotler, Keller, and Lane (2013), the dimensions of customer

satisfaction including stays loyal longer. For example, customers will remain loyal
to the brand for a long time. Next, talks favourably to others about the company
or its products. It means that customers will talk the things about the organization
or its products. From here, they could get a free promote by using world of
mouth. Besides that, customer focuses more on Innisfree’s products and pay
less attention to their competitors’ brands.

3.3 Research Methodology

Research methodology is used by researchers to collect, analyze and interpret

the answers for hypotheses and questions and in amore systemic and structural
way. In this section, author have included that how research was carried, what
was the research design, how the data was collected, what the research
instrument was, what was the sample design and how data was analyzed and
processes. The objective of this part is to give a better understanding about the
outcome and result of the research and claims made by the authors.

3.3.1 Primary data

Primary data is the specific data which the researchers collect or observe by
themselves such as conducting a questionnaire and interview. This specific data
can be seen as an important data because the data is unique and it is collected
and observed according to the specific purpose draw by researches (Brymen &
Bell, 2007)

In this research, we conducted questionnaire for gathering all concrete

information to analyze and answer all the issues in this research question.
Primary data is seen as valuable and essential data in the research regarding to
an exclusive result that the authors obtained directly from the survey.

3.3.2 Population and sample

Regarding to purpose of this research, we study the relationship between factors

that can affect on the customer satisfaction. And in order to keep away from the
cultural differences between nation that can be one factor to affect customer’s
purchasing decision making, doing survey across multi-nationality is avoided in
this study. In this study, a quantitative approach was used to gather a primary
data. The survey consisted of 30 questions including. The study is planning to
conduct at Innisfree, Gurney. Moreover there is more convenient, accessible and
directly to the point, in order to target the women and men who are in the age
range 20-35 years old. Consequently group of youngster will selected to take part
in this research. The sample is 250 Malaysian respondents and divides in 125 for
male and 125 for female and each will be divided to 25 male and 25 female from
Malay, 25 male and 25 female from Chinese, 25 male and 25 female from Indian
and 25 male and 25 female from others.

3.3.3 Research Design

The questionnaire consisted of 2 parts; which is Section A and Section B.

Closed-ended questionnaire were applied in this research. Personal data started
from question number 1 to question number 5 in Section A. All questions in
personal data part asked about age, religion, education, occupation and income.
In Section B, the questionnaire starts with the form of likert scale. In Part B will
have 30 questions which is respondents have to tick the accurate answer.
Moreover, Part B was divided into 6 parts and each content 5 questions. So
respondent who use skin care products suppose to answer question 1 to
question 5. However, respondent who feel the price is reasonable of the skin
care product suppose to answer question 6 to question 10. In addition, the
respondent who are satisfied with the service have to answer question 11 to
question 15. Then, the respondent who like to enjoy Innisfree’s promotion have
to answer question 16 to question 20. The respondent who feel convenient on
the website accessibility have to answer question 21 to question 25. Lastly, the
respondent who is satisfied on the Innisfree Company suppose to answer
question 25 to question 30. In that part, all questions consist of consumption
habits; reasons why respondent buy skin care products, factors that affect
purchasing decision and feeling toward their using skin care products. So we
target the groups of young people who use skin care products.

4.0 Questionnaire

Section A: Demographic Profile

Direction: Please read carefully and (√) in the appropriate box.

1. Gender

Male
Female

2. Age

20-24 years old

25-29 years old
30-35 years old

3. Education

Primary School
High School
Diploma
Bachelor
Others: _________

4. Occupation

Student
Employed
Unemployed
Other:__________

5. Income

Below RM1000
RM1000- RM2000
RM2000- RM3000
RM3000 and above
Section B: Factors that influence people to buy skincare product at Innisfee
Company.

Please indicate the degree of agreement with the following statement.

Assessment Scale 1=Strongly disagree, 2=Disagree, 3=Neutral, 4=Agree,

5=Strongly disagree (Please tick ‘√’ on the most appropriate box)

1. Product Quality

No Question 1 2 3 4 5
.
1. The products can help reduce acne.
2. The products can help maintain smooth skin.
3. The products can help in anti-aging.
4. The products can apply on sensitive skin.
5. The products can help in brightening skin.

2. Price

No Question 1 2 3 4 5
.
1. The price is affordable.
2. The price is attractive.
3. The price is acceptable.
4. The price is fair.
5. The price is cheaper than other company.

3. Service

No Question 1 2 3 4 5
.
1. The staff is friendly.
2. The staff is helpful.
3. The staffs have a smiley face
4. The staff looks neat.
5. The staff is very efficient.
 4. Promotion

No Question 1 2 3 4 5
.
1. The promotion is attractive.
2.
3.
4.
5.

5. Website Accessibility

No Question 1 2 3 4 5
.
1. The website accessibility is easy to access.
2. The website accessibility has good visual
impairment.
3. The website accessibility has good photosensitive
seizures.
4. The website accessibility has good physical
disabilities.
5. The website accessibility has good readable fonts.

6. Customer satisfaction

No Question 1 2 3 4 5
.
1. I will give feedback.
2. I will visit again in this shop.
3. I will recommend my friends to visit the shop.
4. I will give high rating.
5. I will share the promotion to the social media.

5.0 Conclusion