INDIVIDUAL ASSIGNMENT

TECHNOLOGY PARK MALAYSIA

BM031-3-2-MKIR

MARKETING INTELLIGENCE AND RESEARCH

JALNA EMMANUELLA MARY ISAAC

TP057011

APU2F2008KMGT(DM)

HAND OUT DATE: 30 SEPTEMBER 2020

HAND IN DATE: 30 November 2020

WEIGHTAGE: 50%
 Table of Contents

1.0 PART ONE: EXECUTIVE SUMMARY.......................................................................3

2.0 PART TWO....................................................................................................................4
2.1 INTRODUCTION............................................................................................................4
2.2 PROBLEM STATEMENT..............................................................................................5
2.3 OBJECTIVES OF RESEARCH......................................................................................5
2.3.1 General Objectives....................................................................................................5
2.3.2 Specific objectives....................................................................................................5
2.3.3 Research Questions...................................................................................................6
2.3.4 Scope of Study..........................................................................................................6
2.3.5 Significance of the study...........................................................................................6
2.3.6 Theoretical perspectives............................................................................................7
2.3.7 Academic perspectives..............................................................................................7
3.0 PART THREE : LITERATURE REVIEW....................................................................8
3.1 LITERATURE REVIEW............................................................................................8
3.1.1 Safety....................................................................................................................8
3.1.2 Convenience.........................................................................................................8
3.1.3 Promotion.............................................................................................................9
3.1.4 Price......................................................................................................................9
3.2 THEORICTICAL FRAMEWORK.............................................................................9
4.0 PART FOUR: RESEARCH DESIGN & PRIMARY DATA.......................................11
4.1 Data Collection Method............................................................................................11
4.2 Population and sample...............................................................................................11
4.3 Materials....................................................................................................................11
4.4 Measurements............................................................................................................11
4.5 Findings and data analysis.........................................................................................12
4.5 Analysis of data.........................................................................................................19
5.0 Part five: benefits and limitations of the proposed research.........................................20
5.1 Managerial benefits of research.................................................................................20
5.2 Possible limitation of research...................................................................................20
6.0 Part six: conclusion.......................................................................................................20
7.0 APPENDIX...................................................................................................................21
8.0 Part seven: citations and referencing.............................................................................48
 1.0 PART ONE: EXECUTIVE SUMMARY

In recent years, the transportation industry has grown and expanded rapidly. The higher
availability along with several other types of information and communication technology,
mostly e-commerce, telecommunication for example, location data and a growing array of
apps are changing mobility supply and demand in various ways. The launch of e-hailing in
Malaysia has modernized the private transportation sector, also known as ride-sharing
services. Until recently, e-hailing was unaware of and this is a new area of research to
understand the dilemma of passengers facing the use of e-hailing services. Therefore, this
study aims to recognize problems with e-hailing services faced by these clients in Malaysia.
The methodology used data obtained from an online survey in Malaysia with around 50
respondents. Study of independent variables and dependent variables studies on safety,
convenience, promotion and price as the important problems in predicting passengers’
intention to use e-hailing services. The results of this study can be very advantageous to
different parties, such as customers, e-hailing drivers, business and government, by allowing
theses services to be more reliable and competitive in the Malaysian context.
 2.0 PART TWO

2.1 INTRODUCTION

As identified by Lin (2019), e-hailing is a concept that describes booking trips ad having to
pay for car services with the transportation networks company, short for TNC. The way
traditional industries such as transportation and travel operators have changed is one of the
notable worldwide results of digital platforms. By incorporating e-hailing services to replace
the current taxi system, the internet of things has prompted significant technological
advancements to the transportation industry across the globe. The e-hailing industry that has
developed rapidly in Malaysia, has dominated the transportation industry by providing
passengers the application to book a ride online. Grab, Uber, Lyft and MyCar are such
examples of the new ride-sharing applications.

E-hailing services are becoming popular around the globe in the past recent years. This
perspective is based on the widespread use of smartphones. The advent of e-hailing has
altered the possible instance that people can travel; booking a vehicle in advance and
selecting a location via mobile phone apps has drastically saved a lot of time and enhanced
the journey of individuals. The supply and reduction of roaming time is considered as a
useful mode of transport for e-hailing. There are 41 e-hailing organizations other than Grab
that are mandated to operate in Malaysia. According to the APAD, they are regulated in order
to provide better quality services, as well as the security and to produce a level of
performance between e-hailing and taxi services.

Other than Grab, there are 41 e-hailing companies authorized to operate in Malaysia.
According to the APAD, these services are regulated to ensure quality services including in
terms of safety and to create a level of playing-field between e-hailing and taxi services. For
e-hailing or taxi drivers providing this service, it was compulsory to receive training.
However, both the APAD and road transport department could have requested the required
licenses to the drivers before permitting them to be evaluated (refer to table 1). In order to be
eligible for a license, an e-hailing organization must be accredited with the Malaysian
Companies Commission and have a minimum of 100,000 Malaysian Ringgit of financial
investment and other items and must have a Malaysian agent living in Malaysia (CHOONG
and LAI, 2019).

2.2 PROBLEM STATEMENT

Recent researches have centered on the e-hailing services, emphasizing on the primary key
obstacles and implications that have affected its widespread acceptance. It is fundamental to
consider customer problems faced with e-hailing services. As an infant sector, e-hailing
services are subject to a broad spectrum of heterogeneity. However, not all variables can
guarantee a meaningful impact on e-hailing.
APAD explained that e-hailing industry in Malaysia must be regulated in order to preserve
better service, including in terms of safety, and to ensure equality between e-hailing and taxi
services. The laws on e-hailing companies began on 12 July, with the businesses providing
these services requiring one year to comply with the requirements of the business license
during the process of transition (LIM, 2019).
According to the Government of Malaysia (2017), in some instances, accusations towards e-
hailing were mainly about safety concerns, such as driver misconducting, sexual abuse and
assault, malfunctions and overpricing. E-hailing continues to increase in demand considering
the concerns. Such issues such as passenger safety, comfort, pricing and accessibility are
attributes of the attitudes of the passengers against their intentions to ride.

2.3 OBJECTIVES OF RESEARCH

2.3.1 General Objectives

The general objective of this research is to study factors influencing the customers using e-
hailing services in Malaysia.

2.3.2 Specific objectives

 To investigate passenger safety using the e-hailing services in Malaysia.

 To analyze the degree of relationship between passengers and prices.
 Obtain within the e-hailing services in order to examine the several ways of
promotion.
 To analyze the extent of the passenger relationship and how convenient e-hailing
services are.
 2.3.3 Research Questions

1. Amongst which of these e-hailing services do you use frequently?

2. How would you describe passenger safety using the e-hailing services in Malaysia?
3. Is there any relationship between passengers’ issues and price affecting the e-hailing
services?
4. How convenient are the e-hailing services relationship between passengers?
5. Are there or have you received any promotion within the e-hailing services?

2.3.4 Scope of Study

The purpose of this research is to survey customers on issues that they face with e-hailing
organizations after the approval granted to the 31 companies in Malaysia. This task aims to
concentrate on safety, convenience, promotion and price as factors that influence passengers
in their everyday lives in Malaysia using e-hailing services. The analysis of the project will
be carried out in Kuala Lumpur among various individuals as this region has a greater
population needed for this assignment and will present the whole of Malaysia. Students and
professionals who are using e-hailing services will be the key respondents, and the primary
research data will be collected primarily on the quantitative approach.

2.3.5 Significance of the study

This research will allow the company to understand how these variables impact consumers
using e-hailing services by gathering valuable data from various customers that will
significantly allow the organization to foresee and design its future strategy. To contribute to
all of that, the study will not only enable e-hailing services to strengthen the problems their
customers face, but also to enhance their emphasis on these variables to acquire as many
customers as possible without these problems to keep booking or scheduling any e-hailing
services. Finally, by providing valuable information about these prospective consumers, this
research would help potential researchers who are interested in researching consumer
problems encountered by e-hailing companies in Malaysia.
 2.3.6 Theoretical perspectives

By providing literature support for future studies, this study will allow other people to prove
the hypothesis, support other findings, provides appropriate feedbacks, generate creativity
and to contribute to a deeper understanding of the subject. In addition, since a lot of research
has been done in this study, it will help researchers doing similar research generate reliable
information.

2.3.7 Academic perspectives

The assignment will also help other people illustrate the theory by delivering literature to
support future study, supporting outcomes, providing relevant suggestions, generating ideas,
and contributing to a deeper understanding of the subject. On the other hand, the results can
provide students with knowledge of these topics and will provide their views on the study. It
can, however, be referenced as well as provide guidance for other researchers interested in
studying the same problem and, finally, it will provide students with more information as
results on the subject.
 3.0 PART THREE : LITERATURE REVIEW

3.1LITERATURE REVIEW

This part of this research will examine mainly on the perceptions of passengers as the
dependent variable, safety, convenient, promotion and price as the challenges which
passengers experience with e-hailing services. In addition, the theoretical structure and use of
secondary data are included.

3.1.1 Safety

Safety, according to International Safety & Hygiene News (2003), is the awareness of risks,
the implementation of the necessary controls and the communication and assurance that the
controls are in place and used. A range of steps to guarantee the safety of passengers using e-
hailing services was announced by the Land Public Transport Commission, also shorten for
SPAD and several strategies have been taken upon providers of e-hailing services (TheStar,
2017). In the case of e-hailing services, consumers have always had some uncertainties about
their safety. Their safety issues relate to drivers, passengers themselves, confidentiality,
vehicle status as well as medical insurance while using the facilities and may impede their
intention to it.

3.1.2 Convenience

Convenience, as identified by Chang, Yan and Tseng (2012), is said to be convenient for a
product or services when it eliminates a customer’s cognitive, physical and emotional
obligations. Convenience has a beneficial relative effect on the intent of clients. Since the
idea of e-hailing services as it still focuses on offering , with the assurance of a fixed fare, a
safe and convenient mode for transportation. However, it will give them an advantage in
addressing customers. In addition, passengers are looking for convenience and ease to book a
ride and get a driver with the convenient application-based transportation system such as e-
hail applications. Therefore, it can increase the purpose of passenger rides to use their
services.
 3.1.3 Promotion

According to SendPulse (2020), in order to increase brand recognition and sales, promotional
marketing is a series of practices aimed at exchanging information about specific brand,
product or service with as many individuals as possible. These promotions attempt to induce
the target consumer to purchase a certain product or service using the strategies of discount,
advertisement and incentive. An offer influences the perception and emotions of customers as
they buy a product or services.

3.1.4 Price

Price plays a vital role in the sense of services because it is the core factor in the marketing
mix (Acutt, 2020). In terms of the future of e-hailing, the price essentially relates to the
service charges paid to the rider. Surge pricing by e-hailing companies has provided for fare
and driver management to peak and off-peak costs, however, little is known about how
passengers view pricing as affecting the intention to ride.

3.2THEORICTICAL FRAMEWORK

To explain the relationship between the independent and dependent variables, the following
structure was developed. This framework will be checked on the various respondents and will
ideally provide a comprehensible view to the marker if the independent variables are factors
that affect Malaysia’s dependent variables. Nonetheless, it is important to determine the
efficacy of applications for e-hailing as they are still new to the industry. Via customer
satisfaction as well as user experience, the efficacy of the system can be measured. Thus, this
research sought to examine the factor that influenced the usage of e-hailing companies by
passengers. Factors that influence passengers in their everyday life to use e-hailing services
were defined based on the independent variables where they are safety, convenience,
promotion and price; and the dependent variable is the perception of passengers.
Issues passengers faced with e-hailing services

Independent variables

Safety

Dependent variable
convenience

Intention of
Promotion passengers using e-
hailing services

Price

Figure 1: Theoretical Framework

 4.0 PART FOUR: RESEARCH DESIGN &
PRIMARY DATA

4.1Data Collection Method

To classify the problems passengers face with e-hailing services in Malaysia, the
questionnaire was designed to obtain qualitative data. In mid-November, the questionnaire
was administered. For collection of data, electronic questionnaire was prepared as it was the
simplest mode of transmission and self- administered handouts were inaccessible. Using
various types of social media, the online questionnaire was circulated online to many
respondents who uses e-hailing services. The questionnaire’s definition and intention were
also given along with the link.

4.2Population and sample

To gather the primary data from this study, the questionnaire was distributed among a
selection of approximately 100 participants.

4.3Materials

A questionnaire was included in the materials used for this study. Four parts consisted of the
questionnaire. The first part was focused on the demographic questions to evaluate
participants by gender, age, level of education, level of employment and among the top five
e-hailing services regularly use. the remainder of the art, along with the second, third and
fourth sections of the questionnaire, included both Likert scale type of questions and closed
questions relating to the independent variables of e-hailing passengers in Malaysia, including
safety, convenience, promotion and price. A sample of 20 questions were art of the
questionnaire. All inquiries have been prepared by using Microsoft Forms.

4.4Measurements

The quantitative method was used during this analysis. In order to produce quantitative data,
the questionnaire did help so. The questionnaire responses were examined by using Microsoft
Excel and Microsoft Forms were used to create graphs.
 4.5Findings and data analysis

The literature review helped define four key problems facing e-hailing services for
passengers. Independent variables influence the dependent variables intended for passengers
in Malaysia using e-hailing services. To define the relationship between these independent
variables and dependent variables, the questionnaire was explicitly developed.

ISSUES FACED BY PASSENGERS USING E-HAILING SERVICES

Independent variables

Safety Dependent variable

convenience Intention of
passengers using e-
Promotion hailing services

Price

Figure 2. Issues faced by passengers using e-hailing services

Demographic Profile of respondent:

Demographic Description Percentage

Gender Female 49%
Male 51%
Age under 18 1%
18-24 29%
25-30 5%
31-40 2%
41-50 0%
Above 50 0%
Education Level College/ tertiary education/ 11%
foundation study
 Bachelor Degree 86%
Master Degree 3%
PHD 0%

Employment level Unemployed 16%

Employed 5%
Self-Employed 3%
Students 76%
Amongst which of these e- Grab 37%
hailing services do you use MyCar 9%
frequently? Mula 0%
EzCab 0%
Table 1

Independent variables

1. Passenger’s Safety

38 respondents described that the passenger’s safety using e-hailing services in a Malaysia is
on a 3.89 average rating. 73% rated between “4-5”.

How would you describe passengers safety using e-hailing

services in Malaysia?
20

8 7

2
0
1 2 3 4 5
Rating score

Figure 1.

63% of people answered Both for this question, and the majority answered "High rating (4-
5)" for Question 6 (How would you describe passenger’s safety using e-hailing services in
Malaysia). 14 (37%) respondents feels safer if the driver is a female, 1 (3%) feels safer if it is
a male driver and 23 (60%) feels safe if the driver is both female and male driver.
 Do you feel safer if the driver is a male or female?

14; 37%

23; 61%

1; 3%

Female Male Both

Figure 2.

33% of the respondents answered Both for feeling safe to traveling during the day and at
night. There were 66% (25 respondents) who feels safe travelling during the day, 34% (13
respondents) prefers travelling both night and day and 0% feels safe travelling at night.

Do you feel safe travelling at night or during the day?

13; 34%

25; 66%

Night Day Both

Figure 3.

71 % respondents felt safe using e-hailing services during the COVID-19 pandemic, a total of
27 and 29% did not felt safe, a total of 11 respondents.
 How safe you felt using e-hailing services during this pandemic?

11; 29%

27; 71%

Safe Not Safe

Figure 4.

Respondents were asked if there where any safety measures, 87% answered yes (33
responses) and 13% answered no (5 responses).

Where there any safey measures?

5; 13%

33; 87%

Yes No

Figure 5.

The last question posing on passenger’s safety, was asked if safety has a direct significant
issue on passenger ride using e-hailing services. Most of the respondent answered yes 58% ,
11% answered no and 32% answered maybe.
 Does safety has a direct significant issue on passenger ride using e-
hailing services?

12; 32%

22; 58%

4; 11%

Yes No Maybe

Figure 6.

2. Convenience

Part 3 of the questionnaire consist of two closed questions. An average of 97% of the
respondent stated yes that e-hailing services is convenient in Malaysia whilst 3% stated no.
an amount of 37 out of 1 answered yes to this question.

Is e-hailing services convnient in Malaysia?

1; 3%

37; 97%

Yes No

Figure 7.
The last question, respondents had to say why e-hailing services is convenient or not and the
latest responses were as follow:

“quick to get a ride and almost any time during the day or night”

“it will be hard to get around by public transportation”

“because I don’t have to cook or move to get groceries”

3. Promotion

87% answered yes e-hailing services does offer promotion on their services, whilst 13%
answered no.

Does e-hailing services offer promotion on their services?

5; 13%

33; 87%

Yes No

Figure 8.

By identifying types of promotion received from e-hailing services in Malaysia, the latest
responses were as follows:

“Discounts”

“Using grabs points”

Lastly, 74% stated yes that promotion is beneficial to them, 13% stated no and maybe.
 Are those promotion beneficial to you?

5; 13%

5; 13%

28; 74%

Yes No Maybe

Figure 9.

4. Price

A majority of 24 (63%) respondents described that the prices of e-hailing services in

Malaysia as it depends on the distance of the trip.

Questions Responses Percentages

How would you describe the Cheap 13%
prices of e-hailing services Expensive 13%
in Malaysia? Both 11%
Depends on the distance of 63%
the trip
Do you think that e-hailing Yes 29%
services should decrease No 21%
their price range? Maybe 50%

The latest response for stating why they think e-hailing services should decrease their price
range is stated as below:

“some prices are reasonable. Any lower and drives won’t be able to make a living”

“I don’t think its affordable to everyone and compared to a bus ticket the e-hailing can be
very costly for some people”

“Idk”

And lastly, 33 respondents stated yes that those prices benefit the economy of Malaysia and 5
respondents stated no it would not benefit the economy.
 Do you think prices benefits the economy of Malaysia?

5; 13%

33; 87%

Yes No

Dependent variable

A dependent variable that is affected by the above independent variables is the intention of
passengers to use e-hailing services in Malaysia. The results turned out as expected after
analyzing the data.

4.5Analysis of data

In order to examine the relationship between the independent variables and dependent
variables, data from 38 respondents were collected, classified, checked and organized
correctly to ensure the consistency and accuracy of the outcomes. Study findings revealed
that price, convenience, safety and promotion for e-hailing services are critical and direct
issues of passenger ride intent. For e-hailing services, policymakers, government officials and
local taxi companies, the results had major managerial consequences.

It has been evaluated that most individuals use Grab as one of Malaysian’s main e-hailing
company. During the COVID-19, safety measures where put into force. The facilities
ensuring the health of their customers wee strategically used to ensure safety measures. These
security measures were the Control Movement Order Control (CMCO). I firmly believe that
the e-hailing services in Malaysia should continuously and further developed their services as
technology is developing today and their implementation should be held up to date.
 5.0 Part five: benefits and limitations of the
proposed research

5.1Managerial benefits of research

This research has found that some problems faced by passengers with e-hailing services in
Malaysia have been generated and analyzed with aid of responses provided by mostly active
students and professionals. Malaysian’s e-hailing services have been seen as growing
organizations int heir development, therefore this study will contribute to the identification
and suggestions of solutions in the near future and support other research work.

5.2Possible limitation of research

Results of this report are quantitative and generated based on the issues and option provided
by the respondents. Additionally, the information for this study was collected on a small scale
that out of 50 respondents, only 38 responses were gathered on the online platform.

6.0 Part six: conclusion

To conclude, it cannot be denied that these organizations have completely changed mobility
in the public transport landscape, considering the man obstacles passengers faced with these
e-hailing services. E-hailing expects to increase as passengers continuously to embrace
safety, convenience, promotion and prices as advantages of such services exponentially.
 7.0 APPENDIX

Table 1: List of e-hailing companies

Source: Based on information from the Land Public Transport Agency website on Oct 3:
https://apad.gov.my/ms
 Sample of questionnaire used to collect data

Survey customers on issues faced by

e-hailing services
Hi, my name is Jalna Emmanuella Mary Isaac and I am from intake APU2F2008KMGT
(DM). This assignment is for a Marketing Research & Intelligence module. I am acting as
a consultant for the Road Transport Department (JPJ) and Land Public Transport Agency
(APAD) in their quest to find information about issues encountered by users of e-hailing
services. Below are a set of questions, if you would kindly answer the questions as
truthfully as possible. Your data will be kept confidential. Thank you.
1.0 Section 1

1.Gender
Female
Male

2.Age
Under 18
18-24
25-30
31-40
41-50
Above 50

3.Education Level
college/ tertiary education/ foundation study
Bachelor Degree
Master Degree
PHD

4.Employment Level
unemployed
Employed
Self-Employed
Students
5.Amongst which of these e-hailing services do you use frequently?
Grab
MyCar
Mula
EzCab
Ryde

2.0 Section 2

Passengers' safety
Part 2 of the questionnaire will be mainly about the passengers' safety using e-hailing services in
Malaysia.

6.How would you describe passenger's safety using e-hailing services in

Malaysia?

Bad Good

7.Do you feel safer if the driver is a male or female?

Female
Male
Both

8.Do you feel safe traveling at night or during the day?

Night
Day
Both

9.How safe you felt using e-hailing services during this pandemic?
Safe
Not safe

10.Where there any safety measures?

Yes
No

11.Does safety has a direct significant issue on passenger ride using e-hailing
services?
Yes
 No
Maybe
3.0 Section 3

Convenience
Part 3 of the questionnaire is mainly about the convenience issue of passenger using e-hailing
services in Malaysia.

12.Is e-hailing services convenient in Malaysia?

Yes
No

13.Why?

4.0 Section 4

Promotion and Price

This final part of the survey is based on the promotion and prices of e-hailing services in Malaysia

14.Does e-hailing services offer promotion on their services?

Yes
No

15.Identify types of promotion you have received from e-hailing services in

Malaysia.

16.Are those Promotion beneficial to you?

Yes
No
Maybe

17.How would you describe the prices of e-hailing services in Malaysia?

cheap
Expensive
Both
Depends on the distance of the trip

18.Do you think that the e-hailing services should decrease their price range?
 Yes
No
Maybe

19.Why?

20.Do you think those prices benefits the economy of Malaysia?

Yes
No
Respondent 1
Respondent 2
Respondent 3
Respondent 4
Respondent 5
 8.0 Part seven: citations and referencing

Acutt, M. (2020) The Marketing Mix Marketing Mix – Price (Pricing Strategy). [Online]
Available from:
https://marketingmix.co.uk/price/
[Accessed: 29 November 2020]

Chang, C.C, Yang, C.F and Tseng, J.S (2012) Perceived convenience in an extended
technology acceptance model: Mobile technology and English learning for college students.
Australasian Journal of Educational Technology, 28(5). [Online]
Available from:
https://doi.org/10.14742/ajet.818
[Accessed: 29 November 2020]

Choong, M.Y and Lai, A. (2019) The Star 42 e-hailing firms licensed to operate. [Online]
Available from:
https://www.thestar.com.my/news/nation/2019/10/05/41-e-hailing-firms-licensed-to-operate
[Accessed: 24 November 2020]

Government of Malaysia (2010) LAWS OF MALAYSIA ACT 715 Land Public Transport
Act 2010. [Online]
Available from:
http://www.agc.gov.my/agcportal/uploads/files/Publications/Act%20715%20-23102015.pdf
[Accessed: 31 October 2020]

International Safety & Hygiene News (2003) Lessons learned in marketing safety. [Online]
Available from:
https://www.ishn.com/articles/82335-lessons-learned-in-marketing-safety#:~:text=Marketing
%20is%20knowing%20both%20your,but%20also%20the%20right%20controls.
[Accessed: 26 November 2020]

LIM, I. (2019) malay mail Need a grab? There are actually 31 e-hailing firms in Malaysia,
so you’re spoilt for choice. [Online]
Available from:
https://www.malaymail.com/news/malaysia/2019/08/02/need-a-grab-there-are-actually-31-e-
hailing-firms-in-malaysia-so-youre-spoi/1777099
[Accessed: 31 October 2020]

Lin, J. (2019) A Review on E-hailing System in the City Centre Comparative study Between
Kota Kinabalu and Changsha City Centre. [Online] Faculty of Engineering, Universiti
Malaysia Sabah, Jalan UMS, 88400, Kota Kinabalu, Sabah, Malaysia: IRE Journals Volume
3 Issue 4.
Available from:
https://irejournals.com/formatedpaper/1701660.pdf
[Accessed: 24 November 2020]
SendPulse (2020) What is Promotional Marketing: Definition and Tips. [Online]
Available from:
https://sendpulse.com/support/glossary/promotional-marketing
[Accessed: 28 November 2020]

The Star (2017) SPAD sets steps to ensure safety of e-hailing passengers. [Online]
Available from:
https://www.thestar.com.my/news/nation/2017/06/13/spad-sets-steps-to-ensure-safety-of-e-
hailing-passengers
[Accessed: 26 November 2020]