A STUDY OF PROMOTIONAL TOOLS OF NEW BRANDS

TOWARDS CONSUMER PURCHASE DECISION

BY

EYZRINE NORSOFEA BINTI TAJODIN

Project Paper Submitted in Partial Fulfillment of the Requirement

for the Degree of Bachelor of Business Administration at

Geomatika University College

2021

i
 PERMISSION TO USE

In presenting this thesis in fulfillment of the requirements for a Bachelor degree from

Geomatika University College (GUC), I agree that the library of this university may make

it freely for inspection. I further agree that permission for copying this thesis in any manner,

in whole or in part, for scholarly purposes may be granted by my supervisor(s) or in their

absence, by the Dean of IQRA Business School where I did my thesis. It is understood that

any copying or publication or use of this thesis or parts of it for financial gain shall not be

allowed without my written permission. It is also understood that due recognition shall be

given to me and to the GUC in any scholarly use which may be made of any material in

my thesis.

Request for permission to copy or to make other use of materials in this thesis in whole or

in part should be addressed to:

Dean of IQRA Business School

Geomatika University College

54200, Setiawangsa, Kuala Lumpur.

ii
 DECLARATION

I hereby declare and certify that the work embodied in this project paper is based on original

work conducted by myself, except for quotations and citations that have been duly

acknowledge. I also declare it has not been previously or concurrently submitted for any

other degree at Geomatika University College, or any other institute.

_________________________

Student name: Eyzrine Norsofea binti Tajodin

Student ID : 930111-14-6960

Student’s signature: ……………………….. Date: ……………………

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 ACKNOWLEDGEMENT

In the name of Allah, The Most Gracious and The Most Merciful. I would like to

express my deepest appreciation to my family who had been supporting me all the way

from the very first day. They are my backbone, my wings to fly, my everything. Dedicated

to the memory of my father, Haji Tajodin bin Haji Sanusi, who always believed in my

ability to be successful in the academic arena. You are gone but your belief in me has made

this journey possible. I will always keep you as my motivation to go further. May Allah

grant you Jannatul Firdaus and we will be reunited, Aamiin.

I’m deeply indebted to my supervisor, Miss Izanoordina binti Amir, for her patience

in guiding me and tolerance throughout my research duration. Also contributed in this

journey, I would like to thank to Mr. Hadi Elmy bin Hasnor for his guidance and sincere

advices. May Allah increase knowledge for the both of you for the benefits of many people,

Aamiin.

I would like to extend my sincere thanks to my fellow friends; Ousman Sanyang,

Aliza Jalil, Husam Addin, Amalina Hassan, Nisak Amin, Faris Rahimi, Arvind

Jeyaratnam, and Azharizal Adam for their continuous support. Without them, it would be

impossible to complete this research.

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 ABSTRACT

This research is conducted to see how promotional tools of new brands relate to

consumer purchase decision. Tools like free samples, free gifts, and bonus packs are

the variables tested in this research. In retail industry, retailers all around the world

face difficulty in pushing sales for products from new brands due to lack of information

and awareness on their existence and reputation. Lack of availability of literature on

new brands as reference for Small and Medium Enterprises (SMEs) especially, has

driven the researcher to explore this topic.

This study is based on literature review, conceptual framework and hypothesis which

open the door for future researchers to expand more in this field. This research involves

200 respondents in Malaysia to obtain the required data. The questionnaire is

distributed and analysed with SPSS statistics which are descriptive statistics, reliability

test, correlation analysis, and T-Test in order to identify the relationship between

promotional tools of new brands towards consumer purchase decision. At the end,

researcher proves that the most of customers are influenced by the variables tested in

this research.

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 ABSTRAK

Kajian ini telah dijalankan untuk menguji tahap hubung-kait antara promosi dengan

keputusan pembelian pengguna dengan jenis-jenis promosi. Jenis-jenis promosi seperti

sampel percuma, saguhati percuma, dan pek bonus adalah pembolehubah yang diuji

dalam kajian ini. Peruncit dalam industri ini di seluruh dunia menghadapi kesukaran

untuk menaikkan jualan bagi produk dari jenama baru kerana kurangnya maklumat

dan kesedaran mengenai kewujudan dan kebolehpercayaan terhadap produk-produk

ini. Kekurangan bahan kajian terdahulu tentang produk dari jenama baru untuk Industri

Kecil dan Sederahana (IKS) juga menjadi salah-satu penyebab pengkaji meneliti isu

ini.

Kajian ini adalah berdasarkan kajian lepas, rangka konsep dan hipotesis yang

membuka peluang untuk pengkaji-pengkaji seterusnya mendalami isu ini. Untuk

mengumpul data yang diperlukan, seramai 200 orang responden telah menyertai

kajian. Borang kaji selidik yang diedarkan telah dianalisa menggunakan program SPSS

Statistics melalui statistik diskripsi, ujian kebolehpercayaan, analisa korelasi, dan

Ujian-T untuk menguji hubung-kait antara jenis-jenis promosi produk jenama baru

dengan keputusan pembelian pengguna. Natijahnya, pengkaji telah membuktikan

bahawa pengguna terkesan dengan pembolehubah yang diuji dalam kajian ini.

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 TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION

1.0 Background of Studies 1-2

1.1 Problem Statement 3-4

1.2 Research Objectives 4

1.3 Research Questions 5

1.4 Significance of The Study 5-6

1.5 Research Limitation 6

1.6 Terms 7-8

CHAPTER 2: LITERATURE REVIEW

2.0 Introduction 9

2.1 Past Study 9 - 14

2.2 Variables 15

2.3.1 Independent

2.3.2 Dependent

2.2 Research Framework 16

2.4 Hypotheses Development 17

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CHAPTER 3: METHODOLOGY

3.1 Research Design and Method 18

3.2 Population and Sample 19 – 20

3.3 Sampling Design 21 - 22

3.4 Data Collection 22 - 23

3.5 Data Analysis Method 24 - 25

CHAPTER 4: RESEARCH FINDINGS / RESULTS 26 - 37

CONCLUSION 38

REFERENCES 39 - 40

APPENDICES 41 - 58

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Tables Page

1: Cronbach’s Alpha 27

2: Demographic Information 28

3 29

4: Statements based on variables & Cronbach’s Alpha values 30

5: Correlation 35

6: T-Test (Hypotheses testing) 36

7: T-Test Analysis 37

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Figures Page

1: Research framework of promotional tools of new brands towards consumer purchase

decision 16

2: Pie chart of percentage of gender 31

3: Bar chart of age 31

4: Bar chart of education 32

5: Bar chart of occupation 32

6: Bar chart of income 33

7: Bar chart of product purchase of new brand 33

8: Bar chart of types of promotional items 34

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 CHAPTER 1: INTRODUCTION

1.0 Background of Studies

The competition between the new and the existing brands in the market is really tough.

Consumers are exposed to many brands for one particular product. Previous study by

Pam Moore (2014) has emphasized that there would be consumers’ interactions with

five to seven brands before they remember a brand. It shows that promotional tools are

needed to plant the awareness of the new brands in consumers’ mind in order to

influence them to purchase the product. To distinguish one brand from another, the

right marketing effort should be done.

Communication effort by businesses creates brand competition where the particular

brand will convey the message that their business is better than the competitors. To

win, brands should know best of which effort will worth their investment.

There are four major promotional tools in marketing. They are advertising, public

relations, personal selling, and sales promotions. In this study, the researcher focuses

on sales promotional tools because they are more favourable by the consumers than

the others.

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Promotional tools play a major role in placing a brand in consumers’ mind and to

persuade them buying products. A good promotional tool is the one that can make the

targeted customers achieve the ‘feel good’ experience even before they purchase any

particular goods.

This study is designed to examine the influence of promotional tools of new brands

and consumer purchase decision. It will be focusing on examining the influence of free

samples, free gifts, and bonus packs towards consumer purchase decision (problem

recognition, information searching, evaluation of alternatives, purchase decision and

post purchase decision). New brands in the market need great promotion activities to

reach their audience. Without good marketing, a new brand cannot convey its

marketing message to its target market. As a result, marketing objectives will not be

achieved. Therefore, this research is very important for new establishments.

2
1.1 Problem statement

According to an article written on marketingtochina.com, Chinese consumers do not

dare to try products from new existing or unknown brands. The trust issue is developed

from the poor reputation shown by many fake brands in Chinese market. They get

paranoid of trusting new brands, unless proven otherwise. In China, word-of-mouth is

a successful technique as the more people talk about it, the more popular that particular

brand is and more people will buy what it offers. Any brands with strong reputation

and influence among Chinese people make a great success in their businesses.

Generally, most consumers have doubt in trying products from new brands, unless

those who are tolerant to risk-taking (low avoidance to risk) as recognized by Cho and

Workman (2014) in their research.

According to Lee, S.H. et. al (2016), citing Sheth and Venkatesan’s (1968), the

researchers agreed with risk-taking theory which consumers face uncertainty in

making purchase decision. Consumers tend to stay loyal to familiar brands (strong

consumer-brand relationship) to reduce risk of buying products that are not meeting

their expectations because they are very foreign to them.

3
In retail industry, many retailers all around the world face difficulty in pushing sales

for products from new brands due to lack of information and awareness on their

existence and reputation. Lack of availability of literature on new brands has driven

the researcher to explore this topic, knowing that that it will become useful if conducted

thoroughly.

1.2 Research Objectives

Based on the scenario in the industry nowadays, the researcher intends to conduct this

study that is designed to achieve the following objectives:

1. To identify the relationship between promotional tools of new brands and

consumer purchase decision

2. To examine the influence of free samples towards consumer purchase decision

3. To examine the influence of free gifts towards consumer purchase decision

4. To examine the influence of bonus pack towards consumer purchase decision

4
1.3 Research Questions

Based on the objectives developed, the researcher aims to achieve results from the

following questions pertaining to promotional tools of new brands towards consumer

purchase decision. The questions are as follows:

1. Which promotional tool is the most powerful in influencing consumer purchase

decision?

2. Does free samples influence consumer purchase decision?

3. Does free gifts influence consumer purchase decision?

4. Does bonus pack influence consumer purchase decision?

1.4 Significance of the study

It is intended that the findings of this research will be used by new brands’ marketers

to apply effective promotional strategies in their businesses, in order to compete with

5
the existing brands in the market. A lot of marketing effort should be made by new

brands as the existing brands are normally more advance in running their marketing

campaigns. Years of experience make one become matured in its field. Effective

marketing really helps in business success. Therefore, new brands should aim for the

most effective way to market their products or services to the prospects.

Knowing how past researches has contributed to literature, this study aims to become

one of those. There are still very few study conducted to investigate phenomenon

related to new brands, therefore the researcher takes an initiative to fill in the gap

pertaining to this topic.

1.5 Research Limitation

i. Time

As a working adult and a part time student, the researcher was facing a great

challenge in managing time to complete the research.

ii) Literature review

To be specific, the researcher found it difficult to find suitable research on certain

issues such as free gift, from the past researches.

6
1.6 Terms

1.6.1 Promotional tools

Tactics or activities you plan and execute to persuade consumers to buy your

products or services.

1.6.2 Sales promotion

A communicating information within two parties, seller and potential buyers, which

is obtained to effect customers’ decisions.

1.6.3 Free samples

(Other name “freebie") is a portion of food or other product (for example beauty

products) given to consumers in shopping malls, supermarkets, retail stores, or

through other channels (such as via the Internet). Sometimes samples of non-

perishable items are included in direct marketing mailings.

1.6.4 Free gifts

Free of charge item given as an inducement to purchase or subscribe to products.

7
1.6.5 Bonus packs

A package containing two items that sells for the price of only one of the items,

used to introduce new products.

1.6.6 New brands

A type of product manufactured by a particular company under a particular name.

1.6.7 Consumer purchase decision

The thought process that leads a consumer from identifying a need, generating

options, choosing a specific product and brand, deciding to purchase, and post-

purchase evaluation.

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 CHAPTER 2: LITERATURE REVIEW

2.0 Introduction

Promotional tools play an important role in marketing any products, especially new
brands. Many researches have been done by the intellectuals to investigate the
importance and effectiveness of this activity in business. It is very important to
document every finding as it can be a reference for further research by future
researchers. This particular study is hopefully among the contributions.

2.1 Past studies

Promotional tools

Generally, promotion is one of the elements in marketing mix or 4Ps; product,

promotion, price, place. All these elements are core in marketing and are used by
businesses widely all around the world.

Sales promotion

Sales promotion is any activity producers usually designed short term to encourage
quicker or greater sales (Kotler, 2002; Shamout, 2016). It is intended to influence
retailers or wholesalers as well as individual to purchase the products. According
to Banerjee (2019), sales promotion is a short term strategy used to stimulate
consumers’ demand for company’s products and to increase consumption from the
sale position of a market to provide more profit for organisations.

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Neha and Manoj (2013) sees sales promotion as a form of “incentive marketing”,
which among other things, helps to ensure repeat purchasing when well executed.
Repeat purchasing is the key to successful marketing or successful business. More
specifically, however, sales promotion can be defined as a set of short time
promotional activities mainly incentives expressed in cash or in kind over a short
period to stimulate purchases. The main objective is to increase the sales volume
for any product or service (Mughal, Mehmood, Mohiud-deen & Ahmad, 2014).

In previous research, Karen Gedenk, Scott A. Neslin and Kusum L. Ailawadi came
out with few objectives. They highlighted about the effectiveness of retailer
promotions, and review which promotion instruments retailers may use, which
effects these promotions may have on sales and profits, and what is known about
the strength of these effects.

Researchers, Mehmod and Ahmad (2014), had shown that impact of natural
surroundings & sales promotion highly influenced the customers’ purchases
decision. There was irrelevant relationship between buying behaviour and
promotional techniques. However, there was a strong connection between the offer
of buy-one-get-one-free with buying decision. They concluded that the most
important tool of promotion mix can be identified through the consequences of
this study which considerably put impact on the buying behavior of the customers.

(Mughal et al., 2014) in their research were studying the effect of most used
techniques of promotion mix in retail sector. These methods are sample, buy one
get one free, coupons, price discount, et cetera, which influence consumer buying
decision.

10
According to Perreault, Cannon & McCarthy (2006) and Shimp (2003) sales
promotion defined as a communicating information within two parties, seller and
potential buyers, which is obtained to effect customers’ decisions.

Free samples

According to H. Bruce Lammers in his research, “By accepting a free sample, the
consumer presumably goes through a process of forming self-perceptions and
attributions about her or his behaviour. For example, consumers who accept the
offered sample may label themselves as being wiiling to try products of the sampled
sort and, consequently, may even perceive themselves as being willing to buy the
product when the purchase opportunity presents itself. Of course, this scenario
assumes that the sampling was not a negative experience.”

Free gifts

In one research, it is found that free gift is an offer of certain products, which when
is not revealed until the purchase made (uncertainty), consumers has no sufficient
information to help them make purchase decision. Oliver (1993, p. 419) determined
that gathering information is the “cognitive part of satisfaction judgements”, where
when there is certainty, the consumer will view the promotion positively because
knowing exactly which gift he or she will receive provides information that will
help the consumer make a judgment (Calvo and Castillo 2001; Loewenstein 1994).
Indeed, information about the free gifts is restrained to possible offers, and the
consumer does not know what he or she will get. Dhar (1997) shows that consumers
tend to delay choices and favor inaction when they are uncertain about their

11
decisions. Therefore, consumers should have lower purchase intentions when there
is uncertainty than when there is certainty about the product that they will purchase.

Bonus pack

A bonus pack is a manufacturer's sales promotion technique of giving the buyer an extra

quantity of a product at the usual price. Simple example, usual product of one costs Ringgit

Malaysia (RM) 5.99, with promotion, any purchase of two units of the same product will

cost consumers RM 10.00. In a creative way, manufacturers and retailers offer better values

to consumers than the usual offers.

New brands

In a research “Brand Relationships and Risk: Influence of Risk Avoidance and

Gender on Brand Consumption” (Lee S. & Workman J. E. & Jung K., (2016), “Our
results show that for the fashion market, the higher the level of risk avoidance, the
higher the level of brand trust, brand credibility, and brand loyalty. Conversely,
the lower the level of risk avoidance, the lower the level of brand trust, brand
credibility, and brand loyalty. Therefore, new fashion brands may want to target
early adopters of fashion (i.e., fashion innovators or fashion opinion leaders) who
are known to be lower in risk avoidance. When the benefits of purchasing and using
a new fashion brand rise with the number of consumers adopting and diffusing it,
switching to an alternative brand may be unappealing because a new brand
presents various uncertain risks. It is very common to face this type of path
dependence from innovation (Liebowitz and Margolis, 1994).”

12
In China, new brands in the market face difficulty to be considered in consumers
purchase decision. Most popular promotional tools that work effectively in their
culture are discounts, coupons, samples, and special VIP services, as they are very
sensitive to special offers. Needing to start fresh, it is a huge challenge to penetrate
their market. In 2017, engagement is the key to communication in China, and it
links the intelligent engagement and successful brands.

Consumer purchase decision

The entire consumer buying process is a lengthy process which begins with need
recognition which is followed by an information search that leads to an evaluation
of alternatives. After alternatives are evaluated, a purchase decision is made and
then a post-purchase evaluation.

JR Hanaysha in “An examination of the factors affecting consumer’s purchase

decision in the Malaysian retail market”, the findings of this study also showed that
the store environment has a significant positive impact on purchase decision. The
result was supported by many scholars (Amofah et al., 2016; Hasan et al., 2016)
who confirmed that the store environment plays an important role in affecting
consumer purchase behaviour. Mahmood and Khan (2014) indicated that the store
environment enables a brand to distinguish itself from competitors, thus leading to
favourable customer’s choice. Therefore, store environment is an important means
through which retailers can influence consumers’ behaviour and their purchase
decisions.

Furthermore, the results revealed that sales promotion has a negative effect on
purchase decision. Eleboda (2017) also confirmed that sales promotion had a
negative impact on consumer purchase decision. The result was supported by
Santini et al. (2015) who stated that much discount leads to a state of discomfort
among consumer, which will ultimately causes a sense of caution highlighted

13
earlier, associating negatively with the hedonic features. Furthermore, Simonson et
al. (1994) confirmed that sales promotion had a negative impact on brands. Similar
views were shared by Shrestha (2015) who revealed that sales promotion does not
have any effect on brand building and may lead to declining impacts for the brand,
especially those which are well established. Thus, this study concludes that sales
promotions could have a negative effect on consumers’ perceptions towards brand
quality as lower priced items tend to have low quality.

In some related studies, customer buying decision defines as the process when
customer purchases goods or services for their personal needs. Menthula S (2013)
Factors Affecting Buying Decision of Customers’ in Apparels Retailing. GRIN
Verlag.

According to a research ‘Impact of Sales Promotion Tools on Consumer’s Purchase

Decision towards White Good (refrigerator) at Durg and Bhilai Region of CG,
India’, promotion plays a significant role in consumer purchase decision, those
customers are influenced the most by offer further followed by premium and
contest.

Information searching

Consist of several process, those are: need recognition, information search,

evaluation of alternatives, purchase decision, and post purchase behaviour. Kotler
P, Lee N, Farris PW, Bendle NT (2010) Marketing Strategy from the Masters
(Collection). FT Press.

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2.2 Variables

Variables can be defined as any aspect of a theory that can vary or change as part

of the interaction within the theory. In other word, variables are anything that can

affect or influence subject of the study. In order to understand the differences tested,

variables must be included.

The variables used in this study are as follows:

2.2.1 Independent variables:

i) Free samples

ii) Free gifts

iv) Bonus packs

2.2.2 Dependent variable: Consumer Purchase Decision

15
 2.3 Research Framework

For the purpose of this study, the researcher focuses on finding the influence of five

types of promotional tools namely free samples, discounts, free gifts, gift vouchers,

and bonus pack by new brands in the market towards consumer purchase decision.

H1
Free samples

H2 Customer
Free gifts Purchase
Decision

Bonus packs H3

Figure 1: Research framework of promotional tools of new brands towards

consumer purchase decision

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2.4 Hypotheses Development

From the above research model paradigm, the following hypotheses are generated

to study the relationships. The hypotheses are listed below:

H0 : There is no relationship between promotional tools of new brands and

consumer purchase decision

H1 : There is a relationship between free samples of new brands and consumer

purchase decision

H2 : There is a relationship between free gifts of new brands and consumer purchase

decision

H3 : There is a relationship between bonus packs of new brands and consumer

purchase decision

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 CHAPTER 3: METHODOLOGY

3.1 Research Design and Method

For the purpose of this study, the researcher applied the quantitative research

method, emphasizing on objective measurements and the statistical analysis of data

collected through questionnaire survey and pre-existing statistical data.

The questionnaire survey is consisting of two parts; the first part of this survey is

designed to gather respondents’ demographic profiles of respondents and the

second part is designed to explore the significance of free samples, free gifts, and

bonus pack towards consumer purchase decision.

General population group of purposed study is identified. A general group of people

were surveyed for the purpose of this study.

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3.2 Population and Sample

According to Kostas E. Sillignakis in “Rural Tourism Development for The

Perfecture of Lassithi in Crete”, citing Black and Champion (1976), “Sample is a

portion of elements taken from a population, which is considered to be

representative of the population”. Followed by Rascoe (1975), cites in Sakaran

(2000:296) in the same research by Kostas, “Sample size larger than 30 and less

than 500 are appropriate for most research”. Therefore, the researcher of this study

aims for 200 respondents for this purpose.

This study is conducted in Malaysia.

Some geneticist stated that population is "a local group of … organisms sharing a

common gene pool" in other side, anthropologist might define a population as a

group of people who share a common language and can communicate with each

other.

The researcher has chosen the samples which are among young adults, adults and

senior adults, both male and female from different background. Sampling method

used to select the sample unit from population. This study used convenience

sampling method as one of the non-probability sampling which is attempt to obtain

19
a sample convenient elements, voluntary response samples and snowball samples.

Questionnaire was prepared and distributed among respondents using non-

probability convenience sampling method. The data collected were then analyzed

by using Statistical Package the Social Sciences (SPSS) version 26.0.

20
3.3 Sampling Design

Sampling design is a mathematical function that gives you the probability of any

given sample being drawn. It is very crucial part of statistical studies and is very

important in research work.

The researcher will be utilizing non-probability sampling method to collect primary

data using questionnaire survey technique.

Non-Probability Sampling Method:

1) Convenience samples

Respondents who are accessible to the researcher.

2) Voluntary response samples

Respondents are those who volunteer themselves to respond to our research.

3) Snowball samples

Respondents who are recruited by other respondents.

21
 The criteria for sample selection are basically consumers of products of existing

and new brands. The data are very useful to prove the relationship between the

variables selected.

3.4 Data Collection

Data collection is the systematic approach to gathering and measuring information

from a variety of sources to get a complete and accurate result.

Listed down below are the instruments that are used to collect data in this study:

3.6.1 Primary data : Questionnaire Survey

3.6.2 Secondary data : Internet (websites, market research reports)

This research is using structured questionnaire with closed questions as a data

collection. This research also uses secondary data which is collecting data and
information existing. Available online sources from websites and electronic
journal. Questionnaire is composed of several questions and answered by
respondents and the result are collected as table of result. Attached in this research

22
paper is the questionnaire survey that is designed to investigate the relationship as
per stated in the earlier section (2.4 Hypotheses Development).

23
3.4 Data Analysis Method

The following methods used to analyse the data collected throughout this study:

1. Descriptive analysis

2. Reliability test

3. Correlation analysis

4. T-test

The explanations on data analysis methods used in this study are as follows:

Descriptive analysis

Descriptive Analysis is the type of analysis of data that helps describe, show or

summarize data points in a constructive way such that patterns might emerge that

fulfill every condition of the data.

Reliability test

Test reliability refers to the extent to which a test measures without error. It is
highly related to test validity. Test reliability can be thought of as precision; the
extent to which measurement occurs without error.

24
Correlation analysis

Correlation analysis in market research is a statistical method that identifies the

strength of a relationship between two or more variables. In a nutshell, the process

reveals patterns within a dataset's many variables. Correlation between two

variables can be either a positive correlation, a negative correlation, or no

correlation.

Pearson’s product-moment coefficient is the measurement of correlation and ranges

(depending on the correlation) between +1 and -1. +1 indicates the strongest
positive correlation possible, and -1 indicates the strongest negative correlation
possible. Therefore, the closer the coefficient to either of these numbers the stronger
the correlation of the data it represents. On this scale 0 indicates no correlation,
hence values closer to zero highlight weaker/poorer correlation than those closer to
+1/-1.

T-Test

A t-test is a statistical test that is used to compare the means of two groups. A t-test
is used as a hypothesis testing tool, which allows testing of
an assumption applicable to a population.

25
 CHAPTER 4: RESEARCH FINDINGS

The data in this research are analysed using several statistical tools which are
descriptive analysis, reliability test, correlation analysis, and T-Test to see the
relationship between promotional tools of new brands towards consumer purchase
decision.

Reliability test is purposed to describe the overall consistency of a measurement and

seek the correlation’s answer between respondent. To make it reliable, the number of
Cronbach alpha in the SPSS program should be > 0.7. The alpha point of study
instrument one item is greater than 0.70, which is mean the data in questionnaire is
reliable. Reliability analysis for the questionnaire reveals the Cronbach Alpha value of
each variable are above 0.7 (Free Sample .855, Free Gift .820, and Bonus Pack .900)
and it indicates that research instrument (questionnaire) have internal consistency and
reliability.

The statistical technique that being used in the analysis of this research is descriptive
statistic. Frequency and percentage is the type of analysis that being used in this
research. The items in the instrument that were measure base on 5 point Likert scale
that using 1-5, where 1 represent Strongly Disagree and 5 is Strongly Agree. The
average total score of independent variable which are free samples, free gifts, and bonus
packs are calculated one by one.

26
 Table 1: Cronbach’s Alpha

Scales Items Cronbach’s Alpha

Free sample 6 .855
Free gift 5 .820
Bonus pack 6 .900

Based on the table above, the researcher found that the value of Cronbach’s Alpha for
free samples, free gifts, and bonus packs are respectively within the preferred range
(.855, .820, and .900) it indicates that factor analysis are reliable and can be used in
processing the data.

Profile of the respondents

The ratio of male and female respondents is 1:1, where 50% of the samples were male
(100 people), and female with equal numbers. The age of the respondents is divided to
determine their categories; young adult (24 years old and below), adult (25 to 64 years
old), and senior adult (65 years old and above). The highest percentage of respondents
were at the range of age 25 to 37 years old.

Most of the respondents were diploma holders (53.0%; 106). Out of the total numbers
of respondents, 36.5% were those working people. 41.0% of the respondents earn RM
1,000 and below per month.

27
 Table 2: Demographic Information

No. Variable Category Frequency Percentage

1 Gender Male 100 50.0
Female 100 50.0
2 Age 24 years old and below 3 1.5
25-37 years old 114 57.0
38-50 years old 68 34.0
51-64 years old 12 6.0
65 years old and above 3 1.5
3 Education PMR/PT3 - -
SPM 41 20.5
O-Level - -
A-Level - -
Diploma 106 53.0
Bachelor Degree 51 25.5
Master Degree 2 1.0
PhD - -
4 Occupation Employed 73 36.5
Freelancer 29 14.5
Student 95 47.5
Unemployed 3 1.5
5 Income RM 1,000 and below 82 41.0
RM 1,001 – RM 2,000 38 19.0
RM 2,001 – RM 3,000 40 20.0
RM 3,001 – RM 4,000 40 20.0
RM 4,001 – RM 4,999 - -
RM 5,000 and above - -

28
Based on the table below, the researcher found out that most respondents (88.5%) had
purchased promotional item of new brand within the period of six (6) months. The items
purchased were mostly grocery, food or beverage (52.5%).

Table 3

No. Variable Category Frequency Percentage

Purchase Yes 177 88.5
promotional
item of new
brand
No 23 11.5
Types of Grocery/Food/Beverage 105 52.5
promotional
items
Household 24 12.0
Healthcare 15 7.5
Cosmetics 18 9.0
Fashion & Apparel 26 13.0
None

29
 Table 4: Statements based on variables & Cronbach’s Alpha values

No. Variable Statement Cronbach’s

Alpha
Free Based on your experience, how frequent did you get free samples of .855
product of new brands in the market?
sample
I recognize product of new brand through free sample given
I doubt buying product of new brand without free sample
I am more convinced to buy product of new brand when given free
sample
Free sample help me to make purchase decision for product of new
brand
I tend to buy products of new brand when given free sample

Free gift Based on your experience, how frequent did you get free gift of .820
products of new brand in the market?
I get interested to buy product of new brand when given free gift
I tend to repurchase product of new brand when given free gift
I tend to buy more units of product of new brand when given free
gift
I am not interested to free gift when purchasing product of new
brand
I am happy with free gift when purchasing product of new brand

Bonus Based on your experience, how frequent did you purchase bonus .900
pack promotion of products of new brand?
pack
I tend to buy product of new brand when there is bonus pack
promotion
I tend to buy more units of product of new brand through bonus pack
promotion
I tend to repurchase product of new brand when there is bonus pack
promotion
I save my money when I purchase product of new brand with bonus
pack promotion
I feel it worth my money trying product of new brand with bonus
pack

30
Figure 2: Pie chart of percentage of gender

50% of the total sample of respondents are male, and the other 50% are female from various
profile to avoid biasness.

Figure 3: Bar chart of age

The highest number of respondents are at the age of 25 to 37 years old (114 people, 57.0%),
followed by 38 to 50 years old (68 people, 34%) and 51 to 64 years old (6.0%, 12 people).

31
Figure 4: Bar chart of education

Most of the respondents are diploma holder, with the percentage of 53.0, followed by
bachelor degree (51 people, 25.5%), Sijil Pelajaran Malaysia (41 people, 20.5%), and
master degree (2 people, 1%).

Figure 5: Bar chart of occupation

47.5% (95 people) of our respondents are students, 36.5% (73 people) are employed, 14.5%
(29 people) are freelancers, and 1.5% (3 people) are unemployed.

32
Figure 6: Bar chart of income

Most of the respondents (41.0%, 82 people) earn RM 1,000 and below per month. It is
followed by RM 2,001 to RM 3,000 by 20.0%, RM 3,001 to RM 4,000 by 20.0%, and RM
1,001 to RM 2,000 by 19.0%.

Figure 7: Bar chart of product purchase of new brand

88.5% of our respondents (177 people) had recently (within the period of six months)
purchased promotional item of new brand from various categories, whereas the rest of the
respondents did not.

33
Figure 8: Bar chart of types of promotional items

52.5% (105 people) purchased promotional item of new brand in the category of grocery,
food and beverage, while the least respondents purchased healthcare products of new brand
(15%). 12 people (6%) did not purchase any promotional items of new brands within the
last six months.

34
Correlation

Table 6: Correlation

No. Variable Category Pearson Sig. (1-tailed)

Correlation
Free sample Gender .530 .000
Education .000 .500
Occupation .052 .234
Income 0.11 .437
Free gift Gender .261 .000
Education -.090 .102
Occupation .305 .000
Income -.206 .002
Bonus pack Gender .195 .003
Education -.070 163
Occupation .012 432
Income -.035 .311

35
Table 6: T-Test (Hypotheses testing)

Hypotheses Representation Result

There is no relationship between promotional tools of new H0 Rejected
brands and consumer purchase decision
There is a relationship between free samples of new brands and H1 Accepted

consumer purchase decision

There is a relationship between free gifts of new brands and H2 Accepted

consumer purchase decision

There is a relationship between bonus packs of new brands and H3 Accepted

consumer purchase decision

Relationship between free samples of new brands and consumer purchase decision

According to the result of this research, the variable free samples has a significant relationship
with consumer purchase decision. Therefore, H1 is accepted.

Relationship between free gifts of new brands and consumer purchase decision

According to the result of this research, the variable free gifts has a significant relationship with
consumer purchase decision. Therefore, H2 is accepted.

Relationship between bonus packs of new brands and consumer purchase decision

According to the result of this research, the variable bonus packs has a significant relationship
with consumer purchase decision. Therefore, H3 is accepted.

36
T-Test Analysis

T-Test Sig. (2-tailed)

Free sample .000
Free gift .000
Bonus pack .000

The data above show that the three variables has significant relationship with consumer
purchase decision and did not occur by chance. It is 0.00% probability that the results from
the experiment happened by chance. Therefore, the data is valid.

37
 CHAPTER 5: CONCLUSION

According to the research of the sample size of 200 respondents, the researcher came to

know that there is significant relationship between all the promotional tools tested towards

consumer purchase decision in this experiment. Most consumers found out that

promotional items are attractive and has influence on their decisions when purchasing

products of new brands in the market.

By giving free samples of products of new brands to the potential customers, they can

experience using the products before making purchases. It shows that the products are

genuine and reliable. A number of consumers prefer free gifts when purchasing products

and the others prefer bonus packs as added values to their purchasing experience.

38
 REFERENCES

(n.d.). Retrieved from https://link.springer.com/content/pdf/10.1186/s40852-016-0041-

0.pdf

(n.d.). Retrieved from https://www.ijcrt.org/download.php?file=IJCRT2005157.pdf

(n.d.). Retrieved from

https://www.researchgate.net/publication/323148208_An_examination_of_

(n.d.). Retrieved from https://www.pammarketingnut.com/2014/05/personal-branding-

strategy-social-

(n.d.). Retrieved from

https://www.researchgate.net/publication/226860793_Sales_Promotion

(n.d.). Retrieved from http://www.drsrjournal.com/no_1_june_20/6.pdf?i=1

(n.d.). Retrieved from

https://www.researchgate.net/publication/320034904_The_Impact_of_

(n.d.). Retrieved from https://www.marketingtochina.com/problems-new-brands-china/

(n.d.). Retrieved from http://members.aect.org/edtech/ed1/41/41-01.html

(n.d.). Retrieved from http://ejournal.uin-suka.ac.id/febi/games/article/view/1267

(n.d.). Retrieved from https://www.researchgate.net/profile/Dedy-Harahap-

2/publication/340115750_

(n.d.). Retrieved from https://onesearch.id/Record/IOS3420.slims-53573

(n.d.). Retrieved from https://onesearch.id/Record/IOS2726.slims-110125

(n.d.). Retrieved from https://www.researchgate.net/publication/227442337_

(n.d.). Retrieved from https://www.researchgate.net/publication/247615111_

(n.d.). Retrieved from https://www.researchgate.net/publication/323308768_

39
(n.d.). Retrieved from https://journal.binus.ac.id/index.php/BBR/article/view/3901

(n.d.). Retrieved from https://worldpopulationreview.com/world-cities/kuala-lumpur-

population

(n.d.). Retrieved from https://www.wordstream.com/blog/ws/2020/10/13/sales-

promotion-examples

(n.d.). Retrieved from https://courses.lumenlearning.com/suny-marketing-

spring2016/chapter/reading-sales-promotions/

(n.d.). Retrieved from https://marketing-insider.eu/branding-decisions/

(n.d.). Retrieved from

https://www.researchgate.net/publication/323148208_An_examination_of_

(n.d.). Retrieved from https://www.marketing91.com/what-is-brand-

competition/#:~:text=Brand%20Competition%20can%20be%20defined,the%20c
ontemporary%20brand%20at%20the

(n.d.). Retrieved from

https://www.researchgate.net/publication/256008012_An_Investigation_of_the_E
ffectiveness_of_Uncertainty_in_Marketing_Promotions_Involving_Free_Gifts

Albert O. Iheanacho, Samuel C. Ilodigwe, Geraldine E. Ugwuonah, Adigwe D. Ogbechi.

(n.d.). IMPACT OF SELECTED CONSUMER SALES PROMOTION TOOLS
ON PURCHASE DECISION: A Survey of Nestle Milo Products in Enugu,
Nigeria.

Bharti, K.K., Sarthak Nigam . (n.d.). Effect of Sales Promotional Tools on Consumer
Buying Behavior.

Karen Gedenk, Scott A. Neslin and Kusum L. Ailawadi,. (n.d.). Sales Promotion.

Seung-Hee Lee , Jane E. Workman and Kwangho Jung. (n.d.). Brand relationships and
risk: influence of risk avoidance and gender on brand consumption.

40
APPENDICES

41
APPENDIX A

42
APPENDIX B

43
APPENDIX C

44
APPENDIX D

45
APPENDIX E

46
APPENDIX F

47
APPENDIX G

48
 APPENDIX H

Reliability Statistics

Cronbach's Alpha Based on

Cronbach's Alpha Standardized Items N of Items
.855 .865 6

49
 APPENDIX I

Reliability Statistics

Cronbach's Alpha Based on

Cronbach's Alpha Standardized Items N of Items
.820 .737 5

50
 APPENDIX J

Reliability Statistics

Cronbach's Alpha Based on

Cronbach's Alpha Standardized Items N of Items
.900 .884 6

51
 APPENDIX K

QUESTIONNAIRE SURVEY

“A Study of Promotional Tools of New Brands

Towards Consumer Purchase Decision”

The aim of this questionnaire is to examine the influence of promotional tools

of new brands towards consumer purchase decision.

Part A: Demographic Profile

1. Gender:

☐ Male

☐ Female

2. Age:

☐ 24 years old and below

☐ 25 - 37 years old

☐ 38 - 50 years old

☐ 51 - 64 years old

☐ 65 years old and above

52
3. Education level:

☐ Penilaian Menengah Rendah (PMR) / Pentaksiran Tingkatan 3 (PT3)

☐ Sijil Pelajaran Malaysia (SPM)

☐ O-Level

☐ A-Level

☐ Diploma

☐ Bachelor Degree

☐ Master Degree

☐ PhD

4. Occupation:

☐ Employed

☐ Freelancer

☐ Student

☐ Unemployed

5. Income:

☐ RM 1,000 and below

☐ RM 1,001 – RM 2,000

☐ RM 2,001 – RM 3,000

☐ RM 3,001 – RM 4,000

☐ RM 4,001 - RM 4999

☐ RM 5,000 and above

53
Part B: Questionnaire Survey

1. Did you purchase any promotional items of new brand(s) recently?

☐ Yes

☐ No

2. What type of promotional items of new brand did you buy?

☐ Grocery/Food/Beverage

☐ Household

☐ Healthcare

☐ Cosmetics

☐ Fashion & Apparel

☐ None

3. Do you usually purchase promotional items from new brands in the market?

☐ Yes

☐ No

54
Free sample

Based on your experience, how frequent did you get free samples of product of new brands in the
market?

☐ Never

☐ Occasionally

☐ Often

# QUESTIONS
STRONGLY

STRONGLY
DISAGREE

DISAGREE
NEUTRAL
AGREE

AGREE

1 I recognize product
of new brand
through free sample
given
2 I doubt buying
product of new brand
without free sample

3 I am more convinced
to buy product of
new brand when
given free sample
4 Free sample help me
to make purchase
decision for product
of new brand
5 I tend to buy
products of new
brand when given
free sample

55
Free gift

Based on your experience, how frequent did you get free gift of products of new brand in the
market?

☐ Never

☐ Occasionally

☐ Often

# QUESTIONS
STRONGLY

STRONGLY
DISAGREE

DISAGREE
NEUTRAL
AGREE

AGREE

1 I get interested to
buy product of new
brand when given
free gift
2 I tend to repurchase
product of new brand
when given free gift

3 I tend to buy more

units of product of
new brand when
given free gift
4 I am not interested to
free gift when
purchasing product
of new brand
5 I am happy with free
gift when purchasing
product of new brand

56
Bonus pack

Based on your experience, how frequent did you purchase bonus pack promotion of products of
new brand?

☐ Never

☐ Occasionally

☐ Often

# QUESTIONS
STRONGLY

STRONGLY
DISAGREE

DISAGREE
NEUTRAL
AGREE

AGREE

1 I tend to buy product

of new brand when
there is bonus pack
promotion
2 I tend to buy more
units of product of
new brand through
bonus pack
promotion
3 I tend to repurchase
product of new brand
when there is bonus
pack promotion
4 I save my money
when I purchase
product of new brand
with bonus pack
promotion
5 I feel it worth my
money trying
product of new brand
with bonus pack

57
4. Please rate (✓) the promotional tools that influence your purchase decision

(1: The least influential, 2: Not Influential, 3: Neutral, 4: Fairly influential, 5: The most
influential)

# QUESTIONS
INFLUENTIAL

INFLUENTIAL

INFLUENTIAL

INFLUENTIAL
THE LEAST

THE MOST
NEUTRAL

FAIRLY
NOT

1 Free samples
2 Free gift
3 Bonus pack

* Thank you for spending your time to answer this survey *

58