You are on page 1of 16

Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

The Potential of Mobile Technology Application in Hypermarket Industry


A Case of Malaysian Consumer Behavior
Liew Chin Chooi, Salmiah Amin
Asia Pacific University of Technology and Innovation
Kuala Lumpur, Malaysia
liew.lcc@gmail.com; salmiah@apiit.edu.my

ABSTRACT 1 INTRODUCTION

Due to the increasing income and purchasing power The retail industry is experiencing
of the Malaysian consumers, as well as the significant expansion as the “society has grown
proliferation and wide expansion of hypermarkets in more affluent in recent years and with greater
Malaysia, the hypermarkets are in an intense purchasing power” [1]. Due to the increase in
competition for survival and sustainability. the Malaysian “income and purchasing power”,
However, with the high mobile penetration rate of the retail sector is experiencing tremendous
Malaysia, the author foresees the potential to growth with the expansion and proliferation of
leverage mobile technology to help retail businesses hypermarkets in Malaysia [2]. The competition
gain competitive advantage by improving service among hypermarkets in the region is escalating,
satisfaction. Malaysian consumers (N=69), with also considering the fact that the number of
focus on students, professionals, and housewives, hypermarkets in Malaysia has been
have been surveyed and interviewed to better proliferating since the 1980s, players in the
understand the Malaysian consumer market, grocery
Malaysian hypermarket industry have to strive
shopping behavior, as well as the acceptance and
to maintain competitive advantage to keep up to
preference of mobile technology relevant to the
grocery shopping practice. Results of this pioneer
the game of the retail sector.
research indicate the feasibility of the mobile Nevertheless, Since the advent of mobile
application implementation whereby its findings technology, mobile devices, ranging from
imply strong acceptance (69%) of mobile laptops to tablets to mobile phones, have
technology into grocery shopping routine. largely penetrated and influenced the modern
Additionally, Shopper Engagement Study daily lives of many. The rate of mobile
conducted by POPAI and business analysis using penetration in the global market is on the rise
SWOT have been adopted as secondary research in from one year to another, reportedly to reach
supporting primary data collected. Based on the 6.9 billion mobile subscribers by the end of
primary and secondary data gathered, the outcomes 2013 as estimated by Mobile Factbook 2012
of this research support the recommendation of [3].
mobile system with features preferred by the
Malaysian consumers, namely Product Browsing, Joe Colopy, the CEO of Bronto Software
Product Comparison, Promotion/Discount discussed through an interview conducted by
Personalization, and Shopping List. Hauss, specifically stating that “the retail
industry is experiencing a momentous shift in
KEYWORDS consumer behavior, fueled by the ubiquity of
smartphones”, signifying the gradual increase
Hypermarket; mobile application; Malaysian of influence of the mobile technology in the
consumer; Shopper Engagement Study; consumer retail industry [4].
behavior; grocery shopping; technology acceptance
Therefore, the author recommends adopting
user-centric design approach where the author
suggests shopping practices to be translated into

ISBN: 978-1-941968-02-4 ©2014 SDIWC 70


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

features to incorporate into a mobile system, the findings gained from the research methods
which will cater to the characteristics of the performed are discussed. The recommendation
four (4) general types of consumer behavior, of suitable system features for the mobile app in
determined through the Shopper Engagement hypermarket industry are presented in section 5
Study conducted by POPAI [5]. Nonetheless, and finally, conclusion is prepared in section 6.
the suggestions will be amended throughout the
course of this research to ensure the
compatibility to the Malaysian market. 2 PROBLEM STATEMENTS
Consequently, this research outlines the The growth of the average number of
feasible features in mobile technology hypermarkets in Malaysia is tremendously
application implementation for the hypermarket significant that it is, reportedly, to have
industry preferred by the Malaysian consumers, increased from 2.1% to 26.8% from 2003 to
in which the recommendations are based on the 2008, whereby in 2009 and 2010, there were a
primary data (questionnaire and interview) and total of one hundred seven (107) granted
secondary data from the Shopper Engagement licenses and seventy-eight (78) were
Study conducted by POPAI [5]. As the operational. This indirectly contributed to the
implementation of information systems in the intense competition that causes difficulties for
hypermarket industry would impact not only hypermarkets to compete for survival and to
one but many related companies through maintain competitive advantage in the retail
increasing competitive advantage, business sector of Malaysia [6][7].
analysis using SWOT is performed to support
the feasibility of system features to be Furthermore, the level of customer
recommended in the mobile technology satisfaction with the major hypermarkets in
application. The recommendations are expected Malaysia namely AEON Big (formerly known
to bring a new level of grocery shopping as Carrefour), Tesco, and AEON (formerly
experience to the Malaysian market, to equip known as Jusco) is within the range of 48% to
the hypermarket industry with the requisite 75%, indicating only average satisfaction level
capabilities, to reinforce the industry network of consumers in the major hypermarkets of
and also the commitment to effectively deal Malaysia [8]. The adoption rate of technology
with competitors. into existing hypermarkets in the country is
comparatively lower than that of the western
This research paper is organized as follows; countries where the implementation and
section 2, the current problems are discussed in application of technology into the grocery
relation to the growth of hypermarket industry shopping experience have gained wide
in Malaysia and satisfaction level of consumers consumer acceptance. Reportedly, Malaysia has
in major hypermarkets in Malaysia. Section 3 yet to be introduced with the concept of
serves the rationale of undertaking this technology adoption into the hypermarket
research. The Shoppers Engagement Study that retailing industry and the Malaysian market is
has been chosen as the basis in analyzing the yet to be familiarized and accustomed with
four (4) general types of consumer behavior is such a concept [9].
explained. The relevance on why the Shoppers Since studies had shown average satisfaction
Engagement Study is feasible to derive the level of consumers in the major hypermarkets
recommended features for mobile technology of Malaysia, and the concept of technology
application (mobile app) in hypermarket adoption is yet to be familiarized by the
industry is also briefly explained in this section. Malaysian hypermarket retailing industry, the
Then, section 4 comprises the methods used to recommendation for feasible features in mobile
gather primary and secondary data in application system to meet consumer
recommending suitable features. In section 5,

ISBN: 978-1-941968-02-4 ©2014 SDIWC 71


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

satisfaction is necessary to be proposed with significantly infused with the population of


relation to customer behaviors. Malaysia with thirty-three point four (33.4)
million of mobile service subscribers in
particular and 113% of mobile penetration
3 RATIONALES [12][13]. Ergo, the author opts to relate mobile
technology to the increase of consumer’s
In order to maintain and improve hypermarket service satisfaction ascribed to
competitive advantage, hypermarkets could use Malaysia’s high rate of mobile penetration.
consumers as a pivotal point by providing
maximum service satisfaction since, The author has selected the 2012 Shopper
competitive advantages can be gained through Engagement Study conducted by POPAI –
customer satisfaction. Customer satisfaction is Point of Purchase Advertising International,
one of the key elements in instigating customer considering the fact that POPAI has been
retention and building customer loyalty [10]. serving as the “leading international advocate
Also, researchers concluded that the satisfaction and voice of the marketing at retail industry”
level of the Malaysian consumers on the major since 1936, as well as conducting original
hypermarkets in Malaysia can be improved by researches every decades by studying shopper
integrating technology to the retail sector by the purchasing behaviors from as far back as the
provision of a better grocery shopping 1960s [14]. Moreover, the 2012 Shopper
experience to consumers in order to bring Engagement Study is one of the “most popular”
higher service satisfaction [8]. Discovered by a studies that shows “grocery channel shopping
survey carried out through “CompTIA’s Retail behaviors”, in which Ravenshoe Packaging’s
Sector Technology Adoption Trends Study”, content strategist mentioned in his article that
technology is deemed to be of high importance POPAI Shopper Engagement Study is “one of
to business rated by 72% of retailers, and the the best sources of information on consumer
percentage is anticipated to reach 83% by 2014 behavior” with “volumes of information about
[11]. the shopping experience, who shoppers are,
what is working at retail, and what shoppers do
In regards to the changing Malaysian not like” [15]. Thus, the author takes into
consumer behavior, factors such as the growth account of the credibility and popularity of the
of the retail industry, increase in income and study that has driven the author to adopt the
purchasing power and changing workforce with 2012 Shopper Engagement Study for the
more female participation have parallel impact purpose of this research. The author believes
on the Malaysian consumer behavior, for that the study could provide accurate
instance, consumers start finding stronger needs information concerning the consumer behaviors
and demands for convenience to better suit their and respective characteristics, which will then
lifestyle [6]. Thus, service expectations of the form the foundation of the user-centric design
consumers from the hypermarkets will be approach that the author adopts in this research.
increasing proportionally, where the
introduction of technology to the retail sector
will facilitate to increase customer satisfaction. 4 RESEARCH METHODS
That said, it is imperative to involve
participation of the Malaysian consumers in the In lights of this research, the author has
primary data collection, specifically come up with a research methodology that
questionnaire and interview, for the ultimate follows a flow as depicts below.
purpose of this research.
What is more, based on an article, one point
one five (1.15) billion smartphones were in
active use globally in January 2013.
Statistically, telecommunication has

ISBN: 978-1-941968-02-4 ©2014 SDIWC 72


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

hypermarkets to gain competitive edge by


increasing customer satisfaction, the
recommendations will be to essentially meet the
characteristics of shoppers of the identified
consumer behaviors by incorporating relevant
functions and features to mobile application in
Figure 1. Research methodology to adopt. hypermarket industry. Below summarizes the
characteristics of the four (4) generic consumer
The author adopts user-centric design behavior:
approach in which firstly, the author performs  Time Stressed – time pressure, perceived
secondary data collection where the four (4) budget constraint, less likely to use
general types of consumer behavior based on circulars/coupons, least consistent use of
the Shopper Engagement Study, namely the written list.

Time Stressed, Trip Planner, Bargain Hunter,
and the Explorer are identified [5]. Six (6) Trip Planner – organize trips, execute
shopping practices, where the author deems according to plan, loyal, most circular
practical to be incorporated into a mobile use, most consistent use of written list,
application as system features, are not interested in bargain hunting,
recommended to cater to the characteristics of controlled and restrained, accurate
the four (4) consumer behaviors. Next, primary budgeting, spend shortest time in store,
research on three (3) groups of consumer fewest weekly trips.
namely, student, professional, and housewife, is  Bargain Hunter – willing to shop around
conducted where the quantitative and for lowest price, least retail loyal, highest
qualitative data will serve to:

circular/coupon use.
Identify most prominent Malaysian  Explorer – enjoy browsing store in
consumer behavior;

general, get inspirations while shopping,
Study how Malaysian consumers behave heavy use of circulars, spend longest
and react to various grocery shopping time in store, easily tempted, compulsive
aspects; buyers, makes most weekly trips.
 Gauge the relevancy and consumer Table 1. Consumer Behaviors and Characteristics.
preference of the six (6) proposed
shopping practices. Consumer Behavior
Time Trip Bargain
Explorer
A SWOT analysis is also done for strategic Stressed Planner Hunter
evaluation of the six (6) shopping practices. Time Pressure H H L L
Grocery Shopping Criteria

Then, proposed solution with system features Organization M H L L


derived from the six (6) shopping practices and Store Browsing L L H H
research data will be designed to best fit the Retail Loyalty M H L M
Malaysian consumer market that also Bargain Hunting L L H M
encourages proper grocery shopping practices. Impulsive Buying H L H H
Circular / Coupon Usage L L H H
4.1 Secondary Data Collection
Written List Usage L H M L
* Priority:
According to the Shopper Engagement - H: high
Study conducted by POPAI, there are generally - M: medium
four (4) types of consumer behaviors, namely - L: low

the Time Stressed, Trip Planner, Bargain


Hunter and the Explorer [5]. In order to aid the

ISBN: 978-1-941968-02-4 ©2014 SDIWC 73


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

Table 1 is used to analyze the priorities of Planner where smart grocery planning is in
the consumer behaviors against several usual practice.

characteristics or criteria relevant to grocery
Product Browsing & Searching
shopping practice.
Allowing shoppers to browse store products
To satisfy the needs, wants and demands of
with the proposed mobile application can help
different consumer behaviors identified, six (6)
to meet the needs and satisfy the demands of
shopping practices to be incorporated into the
the Bargain Hunter and the Explorer. In store
proposed mobile app are derived as below.

products will be displayed in the form of a web
Shopping List for Planned & Organized catalogue that virtually represents the physical
Shopping Trip or distributed catalogue. In addition, this feature
Shopping list helps Trip Planner and Time will also be beneficial to the Time Stressed and
Stressed shoppers in planning and organizing Trip Planner shoppers as it reduces the time and
shopping trips that are bound to time pressure effort needed to look for the intended
products/items to add on to the grocery list with
and the need to control and organize. As the
mobile app will act as a mobile tool to automate the use of the search function and different
filters.

and simplify the process of writing the grocery
list, it is environmental-friendly, convenient, Product Comparison
and time-saving since the shoppers no longer
Bargain Hunters are able to compare
need to use papers for such a purpose. Also, the
products by firstly searching for products with
process of adding up the grocery shopping costs
keywords and then apply filters, for instances,
and listing the products/items will no longer
lowest price, highest price, popularity, and such
require manual efforts.
to do a side-by-side comparison of products
In addition, according to a consumer displayed in the form of a catalogue.

research paper, impulsive buying is essentially
described as “unplanned purchase behavior”. Promotion/Discount Personalization
From this standpoint, the author reasons that a This feature addresses bargain hunting as
shopping list could help to curb impulsive shoppers will be allowed to personalize the
shopping behavior as “an impulse purchase promotions and discounts available to personal
could be construed as any purchase not written preference, saving them from the efforts to
on someone’s shopping list” [16]. This would trim, store, carry, and use printed coupons only
facilitate to instill healthy shopping practice usable during grocery shopping trips. This also
while specifically addressing the impulsive helps the hypermarkets to strengthen retail
buying issue that shoppers with Time Stressed, loyalty as business is able to track and study
Bargain Hunter, and Explorer consumer consumer preferences, as well as to encourage
behaviors may experience. less paper usage that is cost-effective to

business.

Budget Shopping Trip
In relation to the point discussed above, a Circular/Coupon Viewing
budgeting system will complement the Shoppers will be able to view promotions,
shopping list function of the mobile app by first discounts, or vouchers that will be virtually
allowing shoppers to input a budget. The represented, which will be useful for shoppers
mobile app will the alert the shoppers when the with consumer behaviors diagnosed with high
total cost of products/items on the shopping list circular/coupon usage such as the Bargain
has exceeded the inserted budget. This is effort- Hunter and Explorer. This will replace the
and time-saving and would benefit the shoppers traditional circulars, for instance, pamphlets
especially the Time Stressed and the Trip and flyers that will help business to save costs

ISBN: 978-1-941968-02-4 ©2014 SDIWC 74


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

while adding value to the shopping experience For the assurance of data integrity and
of the shoppers. accuracy, the author uses control question in the
questionnaire where only questionnaire
4.2 Online Questionnaire Survey
responses from participants whose age are at
least eighteen (18) are valid. The sample size of
Questionnaire is a primary data gathering the research is sixty (60) respondents. The
technique where a standardized set of domain- questions in the questionnaire can be
related questions is designed to capture categorized into three (3) different objectives
meaningful and useful quantitative data set for that are:

analysis. Questionnaire is then distributed to
intended respondents through various medium, To categorize respondents based on three
for instances, snail mail, email, distributed, and (3) consumer groups that are student,
such. Online questionnaire has been selected as professional, and housewife.

one of the data gathering techniques for the
To categorize respondents based on
purpose of this research due to its capability to
different aspects of grocery shopping
outreach to wide audience via the Internet
such as frequency, durations, budget,
within comparatively shorter period of time
plan, promotions, products, and
with lower costs. Since this research paper is
satisfaction.

not funded, using the online questionnaire
method for data collection is fairly suitable for To identify the features that respondents
sampling purpose for further analysis. mostly preferred to have in mobile
The online questionnaire is created and application for shopping experience in
hypermarket industry.
designed using Google Docs and a link is
generated and distributed to selected
participants online via social media networks 4.3 Interview
and email addresses. Gathered data is then
summarized into charts and diagrams for The semi-structured interview technique is
analysis, transferred into spreadsheet for selected so that the author could personally
advanced analysis using Google Analytics address to the participants to collect rich and in-
application. depth qualitative data, in order to gain insights
That said, data can be easily tabulated and on how three (3) consumer groups of student,
analyzed due to uniformity in which the professional, and housewife differently behave
participants respond to the same set of and react to various aspects of grocery
questions. Having said that, questionnaires are shopping. Semi-structured interview is
directly submitted to the author as participants specifically chosen since the area of research
complete the questionnaires, hence increasing has been already identified and that it allows
the efficiency of the data collection process as more in-depth discovery of data where details
time needed to collect data of a certain sample and personal revelations are paramount.
size is fairly reduced compared to other The participants of the interview sessions
methods in that aspect. Also, the online would be equally made up of the three (3)
questionnaire is self-administered therefore consumer groups as above mentioned where
increasing the response rate and the accuracy of three (3) participants from each group have
response since human error can be been personally selected hence a total of nine
circumvented while biasness towards subjective (9) participants are participating the interview
questions can be minimized as the online sessions. The particulars and responses of the
questionnaire can be answered anonymously participants are recorded as participants are
[17]. providing answers to the questions the author is
proposing during the interview.

ISBN: 978-1-941968-02-4 ©2014 SDIWC 75


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

4.4 SWOT Analysis  Opportunity – elements that are


potentially exploitable for the advantages
A SWOT analysis is carried out to evaluate of the proposal.

the Strengths, Weaknesses, Opportunities, and
Threat – environmental elements that
Threats to the business involved in this
could hurt or harm the proposal or the
research. The SWOT analysis is useful in
business.
facilitating business in decision making
situations when a desired objective has been
defined, also used in creating suggestions and 5 RESULTS
recommendations during a feasibility study. In
addition, organizations also perform SWOT The analysis of data gathered via
analysis for pre-crisis planning and preventive questionnaire and interview are summarized
crisis management [18]. into quantitative and qualitative results to help
Helpful Harmful the author to figure out the relevance of each
feature to be recommended in the mobile
application for hypermarket industry. Also, the
Internal

Strength Weakness results and analysis are used to help the author
to approve, disprove, or amend the decision the
author developed as stated in section IV (A).
Respondent’s satisfaction level of traditional
External

Opportunity Threat
grocery shopping, preference of mobile
technology usage for grocery shopping, and
Figure 2. SWOT Analysis Matrix. preferred item/product categories to be
available in the mobile application are
Internal and external origins are covered in a identified through quantitative questionnaire
SWOT analysis where the internal factors are survey while qualitative interview sessions with
the strength and weakness; the external factors three (3) consumer groups of student,
are opportunity and threat, presented in the professional, and housewife are conducted to
form of a matrix (Figure. 2). gather in-depth information about different
groups of consumer and respective consumer
As one of the goals is to enhance the behaviors.
competitive advantage hypermarket with
technology, a SWOT analysis is developed The quantitative results focusing on six (6)
based on the characteristics of mobile areas which have been discussed in section IV
application for hypermarket industry to study (A) are as below:
how such proposal would benefit the business  Shopping List for Planned & Organized
with competitive edges and possibly hurt the Shopping Trip: The quantitative results
business. The opportunities of the proposal will show only 60% of the respondents
be established mainly based on the assumed usually plan grocery shopping trip using
weaknesses and then possible threats are a shopping/grocery list whereas 40% of
identified.

them respond negatively. It is inferred
Strength – the proposal characteristics that most of the respondents would
that would provide competitive prefer the usage of a shopping list for
advantage to the business over the grocery shopping and such function to be
competitors. considered for the proposed system.
 Weakness – the proposal characteristics  Budget Shopping Trip: 70% of the
that would possibly hurt or harm the respondents do not budget grocery
competitive position of the business. shopping trips while 30% of the

ISBN: 978-1-941968-02-4 ©2014 SDIWC 76


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

respondents have the habit of controlling respondents prefer such function in


and budgeting expenditure for grocery future.
shopping. It is inferred that most of the
For respondent’s satisfaction level, a total of
respondents do not exert budget
21% of the respondents find that the traditional
constraint on grocery shopping nor do
grocery shopping experience is satisfying
the respondents exercise good shopping
where 62% rate average. However, 17% of the
practices.

respondents find that the traditional grocery
Product Browsing & Searching: There is shopping experience is not at all satisfying. The
a total of 43% of the respondents who possible reasons to the medium level of
rarely or never use circulars; 28% of the satisfaction with the conventional grocery
respondents have average usage of shopping experience would be that the retail
circulars; and the remaining 28% of the industry of Malaysian market has yet to be
respondents have responded to high introduced with technology adoption hence the
circular usage. It is inferred that most respondents are complacent with the traditional
consumers browse circulars and such way of grocery shopping.
function has to be considered. Another reason could also be the human

nature that resists changes due to the familiarity
Product Comparison: 87% of the and comfort built over years of doing grocery
respondents perform product comparison shopping in the traditional way since the very
before making a purchase decision while beginning as integrating technology into
merely 13% respond that they do not grocery shopping is considerably a new concept
compare products to decide which to to the Malaysian market.
purchase. It is concluded that most
respondents compare items/products Having said that, the author strongly believes
between different brands.

that the technological advancement of the retail
Promotion/Discount Personalization: sector through implementation of mobile
23% of the respondents vote application will be significant as 17% of the
Promotion/Discount Personalization as respondents do not at all find the conventional
the most preferred system feature, which grocery shopping experience to be of
ranks second after the Product satisfactory, where space for improvements can
Comparison (42%) feature. It is inferred still be seen. Technology integration into
that most respondents are in favor of this grocery shopping is reckoned to be able to
system feature. bring a new level of experience and more

convenience to the consumers compared to that
Circular/Coupon Viewing: of the traditional grocery shopping. The
Respectively, there are 60% and 15% of concept of technology adoption in the retail
the respondents rarely and never use sector and grocery shopping experience is
coupons for grocery shopping while 13% acceptable by the Malaysian market and the
and 12% of the respondents rate average resistance is not high since a total of 69% of the
and often use coupons for grocery respondents have average and above average
shopping. It is inferred that the coupon preferences for mobile technology usage to
usage is low for most of the respondents facilitate, ease, and enhance grocery shopping
due to reasons such as the printed trip, even though there is a minority of 30% of
coupons do not always reach many the respondents who do not find mobile
consumers and that it is easily misplaced technology to be useful and helpful for grocery
and cumbersome to trim, store, and use shopping trip.
printed coupons for grocery shopping.
The author may consider incorporating Among all the shopping practices/mobile
e-coupon if the findings show that app features that have been discussed in section

ISBN: 978-1-941968-02-4 ©2014 SDIWC 77


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

4.1, Circular/Coupon Viewing is the least Table 2 depicts four (4) proposed features of
favored with merely 2% of the respondents mobile application system in hypermarket
have selected. The other five (5) mobile app industry, translated from the six (6) shopping
features, arranged with the most favored first practices using primary research data, and how
and least last, are: Product Comparison (42%), each proposed feature addresses the grocery
Promotion/Discount Personalization (23%), shopping criteria similar to that of Table 1.
Product Browsing (17%), Budgeting System
(10%), and lastly Shopping List (7%). Below Table 2. Proposed Features and Grocery Shopping
Criteria.
shows the changes to the recommended six (6)

 More emphasis and attention to Product


shopping practices: Mobile App Feature
Promotion /
Product Product Shopping
Discount
Comparison, Personalized Comparis
Personalizatio
Browsi List
on ng (7+10=17
Promotions/Discounts, and Product (42%)
n
(17%) %)
(32+2=34%)

Browsing in the system features as these Time
are the system features most preferred by Pressure

the Malaysian consumers; Organization 


  

Grocery Shopping Criteria


Store
Shopping List & Budgeting System: Browsing
Retail
Shopping list appears to be one of the Loyalty
least preferred features possibly due to  
Bargain
Hunting
the fact that manually producing a

Impulsive
written list can be cumbersome for short Buying

 
Circular /
duration of grocery shopping trip Coupon
especially when most of the consumers Usage

Written List
(62%) spend only a maximum of one (1) Usage
hour for grocery shopping according to
the research data. To tackle this issue, the Next, the primary data collected also shows
author suggests to incorporate Shopping that 68% of the respondents are students, 18%
List feature with Budgeting System that are working professionals, and 5% are
would cost the consumers least effort to housewives. The author then discovers through
develop a shopping list and with extra data collected via interview that housewives do
flexibility and convenience built in. This not often visit to hypermarkets as compared to
feature will in turn facilitate to educate students and professionals for grocery shopping
the Malaysian consumers of good because housewives generally do daily grocery
shopping practice that can curb impulse shopping at the wet markets, mom-and-pop
purchases. stores, minimarts, and convenient stores, which


are more accessible than hypermarkets
Circular/Coupon Viewing: Such feature especially the small format stores such as
is to be absorbed by Promotion/Discount minimarts. Minimart is the fastest growing
Personalization feature through trade channel in terms of new outlets and offer
equipping it with personalization good-value-for-money products with very
capability to allow consumers selectively competitive pricing. “Coupled with the
view only preferred information, and convenience factor and simple store layouts”,
address what is perceived as information minimart is an emerging channel that is going
overloading because many items are to become a strong force to content with in
clustered into few pieces of papers, Malaysia [19].
which result in low conventional circular This has fortified the need for the
usage. hypermarket industry to bring in technology

ISBN: 978-1-941968-02-4 ©2014 SDIWC 78


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

integration for competitive advantage, and  Circular/Coupon Viewing (Student: H)



driven the author to give more emphasize on
Bargain Hunting (Student: M)

the consumer behaviors of student and
professional to be discovered when proposing Time Pressure (Professional: H;
system for this research based on the in-depth Housewife: H)

data collected through interview, as
Organization (Professional: H)

summarized in Table 3 shown below.
Written List Usage (Professional: H)
Table 3. Malaysian Consumer Types, Grocery Shopping
Criteria and Consumer Behavior. This priority list is then used by the author to
cross reference with Table 2 to:

Malaysian Consumer
Student Professional Housewife Determine if the proposed mobile
Time Pressure H H application features for hypermarket
Grocery Shopping Criteria

Organization H industry address all the criteria on the


Store Browsing H priority list;

Retail Loyalty
Analyze if the priorities of the proposed
Bargain Hunting M L
mobile app features address accordingly
Impulsive Buying H H
to the priority list, for instance, Product
Circular / Coupon Usage H L
Comparison (42%) should address the
Written List Usage H
Trip Time
grocery shopping criteria ranked higher
Consumer Behavior Explorer
Planner Stressed priority on the Priority List whereas the
* Priority: Shopping List (17%) should address
- H: high
- M: medium
those with lower priority ranking on the
- L: Low Priority List.
Table 3 depicts how the Malaysian consumers behave The inference is that the primary data used
with respect to the grocery shopping criteria as listed in to derive the proposed mobile application
Table 1 based on the interview sessions conducted with the system features is accurate. The questionnaire
three (3) groups of consumer, namely student, professional,
and housewife. Table 3 is put in comparison to Table 1 and interview results complement one another
where the author then identifies the consumer behaviors of where both data set on the priorities of the
the three (3) consumer groups, which has resulted in features arranged based on consumer
student as the Explorer, professional as the Trip Planner, preference are in sync. Hence, the author
and housewife as the Time Stressed.
finalizes that the proposed mobile application
Figure 3. Figure Caption for Table 3.
system will carry the following four (4)
features, arranged with descending priority:
The author then uses Table 3 to rearrange  Product Comparison
the grocery shopping criteria according to the  Promotion/Discount Personalization

behaviors of the three (3) consumer groups,
giving the most priority to the student group, Product Browsing

followed by the professional group, and the
Shopping List with Simple Budgeting
housewife group with the least priority level,
presented as a priority list as shown below in System
the order of descending superiority: Since business analysis using SWOT is also
 Store Browsing (Student: H) one of the research methods to prove feasibility


of the suggested system features to be
Impulse Buying (Student: H; Housewife: implemented in mobile application technology
H) of the Malaysian hypermarket industry, here the

ISBN: 978-1-941968-02-4 ©2014 SDIWC 79


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

results of SWOT analysis of the proposed (Time Stressed) mostly still prefer the old ways
solution can be viewed in Table 4. of grocery shopping, they find such concept to
be helpful. They are bound to budget constraint
Table 4. SWOT Analysis for Proposed Solution. and are the strongest bargain hunters amongst

all categories. Cost effectiveness would be of
Pioneer technology integration in Malaysian hypermarket industry.
the main concern.
 Encourage Go Green campaign and paperless environment to fulfill
Corporate Social Responsibilities (CSR), which helps to build In addition, the author also believes that the
reputation and company image.
proposed mobile application system should take

Strength

Encourage research and development and a new alternative of into consideration that most of the primary
Customer Relationship Management (CRM) to the industry.
research respondents (63%) are students
 Better comprehension of buying behaviors and patterns of customers.
(Explorer) and female, therefore incorporate
 Encourage good grocery shopping practices such as planning elements that are relevant to their
shopping trips and budgeting.
characteristics.
 Unable to deal with customer complaints.
 Lack of accuracy on the analysis of consumer buying behaviors and
All in all, the complete data gathered from
the primary and secondary research shows that
Weakness

patterns as system merely facilitates customers in viewing store items


and planning shopping trips, yet does not allow direct purchasing of the student, professional, and housewife, are
products/items.
generally supportive of the idea and concept of
 Unable to implement digital coupon usage as external devices are mobile application usage for grocery shopping,
needed to be developed for every checkout counter.


and believe that technology could help to
Unable to deal with customer complaints.
facilitate, ease, and enhance the conventional
 Lack of accuracy on the analysis of consumer buying behaviors and grocery shopping experience.
patterns as system merely Enhance, refine and upgrade system
Opportunity

gradually to allow customers to provide feedbacks with the system.


 Allow online ordering and purchasing of items for increased accuracy 6 RECOMMENDED MOBILE
in buying behaviors and patterns of consumers.
APPLICATION SYSTEM FEATURES
 Collaborate with business that provides passbook service where
digital coupons can be stored in mobile application and install QR
FOR HYPERMARKET INDUSTRY
code scanners for such function to be operational.
 Low level of acceptance of the Malaysian market. To conclude, the proposed mobile
 High resistance to change in traditional grocery shopping as such
application solution for the Malaysian
hypermarket industry, the system emphasizes
Thrat

concept is considerably new.


 Competitors may catch up to speed quickly and come up with a better
the ease of use and convenience, while
system, causing business to lose customers. targeting young female adults and working
*With reference to Fig. 2.
female adults the system active users. PSA
allows users to browse and compare
In summary, the students (Explorer) are products/items, plan grocery shopping trips,
especially in favor of the personalization of and view customized promotions and discounts.
promotions and discounts, and product To add value, the author recommends building
comparison functions. They are mostly not in a basic and simple budgeting system that
serious nor are they consistent shoppers. Ease merely allows the users to input budget for a
and convenience would be the main concerns. shopping list, displays the total amount of a
The professionals (Trip Planner) view the shopping list, and then notifies the users if the
traditional grocery shopping experience to be shopping list is over or under budget.
overall time-consuming and less Based on the analysis of the primary and
environmental-friendly. They are bound to time secondary data gathered, the author
pressure and organization, and tend to plan recommends to incorporate such system
and/or budget their grocery shopping trips. features as listed below into mobile application
System effectiveness and efficiency would be system for hypermarket industry, arranged
the main concerns. Although the housewives based on descending priorities:

ISBN: 978-1-941968-02-4 ©2014 SDIWC 80


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

 Product Browsing: to view and compare


products/items, and/or to add directly to
shopping list. For instance, users can
enter keyword to look for a specific
product, or further filter the catalogue
based on the 3-layer filtering function
that can perform sorting based on
product/item category and/or pricing or
popularity, in an ascending or a
descending order.

Figure 4. Examples of Recommended Product


Browsing/Searching Feature [20]

ISBN: 978-1-941968-02-4 ©2014 SDIWC 81


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

 Promotion/Discount Personalization: Figure 1. Examples of recommended feature [20]

customizable viewing of promotions and Product Comparison: to allow users to do side-


discounts (circulars/coupons). Users may by-side comparison in aspects of product/item
select to arrange and display promotions category, price, popularity, and others depending
and discounts based on user’s most on the search keywords inserted as products/items
are displayed in the form of a catalogue, while
searched/compared products /items, and browsing products/items via filtering and sorting
also according to products/items users capabilities.
frequently add into shopping list.

Figure 6. Examples of Recommended Product


Comparison Feature [20]

 Shopping List with Simple Budgeting


System: users are allowed to create new
shopping lists by giving the list a title
and setting a budget for the list. Also,
shoppers can select products/items to be
added into a shopping list while
browsing and then when completed, the
users select a specific shopping list to
add the selected products/items into the
particular list. In addition, the users are
allowed to view the lists created and the
corresponding details, such as
product/item name, quantity, price,
subtotal, total, and budget. It allows the
users to input budget for a shopping list,
displays the total amount of a shopping
list, and then notifies the users if the
shopping list is over or under budget. For
extra flexibility, the users are allowed to
modify product/item quantity or to
remove products/items directly when
Figure 5. Examples of Recommended viewing a shopping list, with immediate
Promotion/Discount Personalization Feature [20] effect on the total amount of shopping
list.

ISBN: 978-1-941968-02-4 ©2014 SDIWC 82


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

Figure 7. Examples of Recommended Shopping List


with Simple Budgeting System Feature [20]

Figure 8. Examples of How a Shopping List can be


created.

ISBN: 978-1-941968-02-4 ©2014 SDIWC 83


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

 Beverages
 General household items
 Health & beauty products

7 CONCLUSIONS AND FUTURE WORK

The problems the hypermarket industry of


Malaysia is facing call for a solution to resolve
the issues with the implementation of mobile
technology application. To further define
Figure 9. Examples of Flexibility in Product/Item
Quantity and Deletion Built-In to a Shopping List; as
problem areas and verify resolutions, the author
well as Remark on Exceeding or Not Exceeding Budget has conducted sufficient primary and secondary
of a Shopping List. researches, as well as gathering ample data and
information to seek for more evidences to
approve or disprove the suggestions the author
developed in the early stages to resolve the
issues identified.
The data collected from primary and
secondary researches are studied and analyzed
to generate results that are used to measure
against the research and resolutions the author
developed during earlier stages. Also, a SWOT
analysis is performed to learn the strengths,
weaknesses, opportunities and threats the
proposed system would post to the business
and/or industry. Until present, the author deems
that the data collected is adequate for the
development of mobile technology application
for hypermarket industry.
The recommendations of mobile technology
application for hypermarket industry has been
decided to not include every solutions that the
author has recommended prior to primary data
collection but to focus only on important
functions and features identified through the
primary data gathered. Nevertheless, further
investigations need to be carried out especially
Figure 10. Examples of Immediate Update of
Amendment being done to a Shopping List to involve more number of respondents to cover
every part and aspect of hypermarket industry
In relations to the data gathered from both in Malaysia for feasible solutions. Currently,
primary and secondary research, the product since this research has not been funded by any
category that being recommended to be institutions and organizations, merely a small
included in the system is as below: number of respondents (N=69) are involved in
 Food products the research.

ISBN: 978-1-941968-02-4 ©2014 SDIWC 84


Proceedings of the International Conference on Electrical, Electronics, Computer Engineering and their Applications, Kuala Lumpur, Malaysia, 2014

In future, other than increasing the number [8] Aghaei, M. et al, 2012. Measure of Customer
Satisfaction in the hypermarkets in Malaysia.
of respondents and sample size of research can [Online] Available at:
be done, the author also recommends that for http://www.ijsrp.org/research_paper_jan2012/ijsrp-
jan-2012-63.pdf [Accessed 23 April 2013].
the direction of this research, the current mobile [9] Hassan, H. & Rahman, M.S., 2012. Transformation
application systems available for hypermarket of hypermarket retailing industry in Malaysia
[Online] Available at:
industry in Malaysia such as MY Tesco online, http://ieeexplore.ieee.org/xpl/articleDetails.jsp?tp=&
AEON BIG Mobile app, and SmartShopper arnumber=6236449&contentType=Conference+Publ
ications&searchField%3DSearch_All%26queryText
ought to be evaluated based on the four (4) %3DTransformation+of+hypermarket+retailing+ind
general types of consumer behavior as ustry+in+Malaysia [Accessed 20 April 2013].
[10] Sheth, J.N.N., 2001. Competitive Advantages
discussed in the 2012 Shopper Engagement through Customer Satisfaction [Online], Available
Study conducted by POPAI (2012). This will at:
http://www.jagsheth.net/docs/Competitive%20Adva
help the hypermarket industry in Malaysia to ntages%20Through%20Customer%20Satisfaction.p
provide, improve, and enhance required df [Accessed 22 April 2013].
features that do not only fulfill consumer [11] CompTIA, 2012. Technology Grows in Importance
for Retailers, New CompTIA Research Study Reveals
shopping experience but also gain competitive [Online] Available at:
http://www.comptia.org/news/pressreleases/12-06-
advantage through mobile technology 27/Technology_Grows_in_Importance_for_Retailers
application. _New_CompTIA_Research_Study_Reveals.aspx
[Accessed 20 April 2013].
[12] Evans, P., 2010. 2010 Malaysia – Telecoms, Mobile
REFERENCES and Broadband [Online] Available at:
http://www.budde.com.au/Research/2010-Malaysia-
Telecoms-Mobile-and-Broadband.html?r=51
[1] Lee, M.Y., 2014. Growing with the market [Online] [Accessed 19 April 2013].
Available at:
http://www.thestar.com.my/Business/SME/2014/01/ [13] Whitfield, K., 2013. Smartphones vs. Feature
28/Growing-with-the-market-Retail-group-works- Phones 2013 [Online] Available at:
on-plans-to-accelerate-its-brands-this-year/ http://www.portioresearch.com/en/blog/2013/01/sma
[Accessed 14 October 2014]. rtphones-vs-feature-phones-2013.aspx [Accessed 17
April 2013].
[2] Md. Salleh, N.Z., Abd. Hamid, A.B., Baharun, R.,
Omain, S.Z., and Abdullah, M., 2008. Application [14] PRWeb, 2013. POPAI’s Second Wave of Shopper
and issues in e-business: chapter 2 – information Engagement Study is in Action [Online], Available
technology integration in supermarket’s operation at:
[Online], Available at: http://www.prweb.com/releases/2013/11/prweb1130
http://www.academia.edu/attachments/3467169/dow 4292.htm [Accessed 18 October 2014].
nload_file [Accessed 19 April 2013]. [15] Collins, G., 2012. 2012 POPAI Shopper
[3] mobiThinking, 2013. Global mobile statistics 2013 Engagement Study [Online] Available at:
Part A: Mobile subscribers; handset market share; http://www.ravenshoepackaging.com/blog/2012-
mobile operators [Online], Available at: popai-shopper-engagement-study/ [Accessed 19
http://mobithinking.com/mobile-marketing- October 2014].
tools/latest-mobile-stats/a [Accessed 17 April 2013]. [16] Rook, D.W. and Hoch, S.J., 1985. Consuming
[4] Hauss, D., 2012. 14 Retail Executives Share Impulses [Online] Available at:
Technology Predictions For 2013 [Online] Available http://www.acrwebsite.org/search/view-conference-
at: www.retailtouchpoints.com/in-store- proceedings.aspx?Id=6351 [Accessed 19 October
insights/2137-14-retail-executives-share-technology- 2014].
predictions-for-2013 [Accessed 28 May 2013]. [17] Akbayrak, B., 2000. A Comparison of Two Data
[5] POPAI, 2012. 2012 Shopper Engagement Study Collecting Methods: Interviews and Questionnaires.
[Online], Available at: [Online] Available at:
http://www.popai.com/engage/docs/Media-Topline- http://www.efdergi.hacettepe.edu.tr/200018BURCU
Final.pdf [Accessed 26 September 2013]. %20AKBAYRAK.pdf [[Accessed 14 May 2013].
[6] Chamhuri, N. and Batt, P.J., 2013. Exploring the [18] FFA, SWOT Analysis [Online] Available at:
Factors Influencing Consumers Choice of Retail https://www.ffa.org/documents/alum_adc_SwotAnal
Store When Purchasing Fresh Meat in Malaysia ysis_wikipedia.pdf [Accessed 5 December 2013].
[Online] Available at: [19] Tectura ASEAN, 2012. Brick and Mortar Counts
http://ageconsearch.umn.edu/bitstream/156463/2/201 [Online] Available at:
20080.pdf [Accessed 25 September 2013]. http://resources.tectura.com/retail-
[7] Ganesan, V., 2010. New licences for foreign insights/articles/brick-and-mortar-counts.asp
hypermarkets [Online], Available at: [Accessed 19 october 2014].
http://www.btimes.com.my/Current_News/BTIMES/ [20] Google Play, 2014. Shopping assistance in
articles/freezeof/freezeof.pdf [Accessed 2 December hypermarket [Online] Available at:
2013]. https://play.google.com/store/apps/details [Accessed
29 September 2014].

ISBN: 978-1-941968-02-4 ©2014 SDIWC 85

You might also like