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A Study on Proton: Purchasing Decisions on Proton Cars Based on Consumers Purchasing Preferences

In: Business and Management

Submitted By kartiasoka88
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Pages 42
Chapter 1
Introduction
1.1 Background of Research
The research is align regarding with ‘Purchasing Decisions on Proton Cars’. This study is dealing with Malaysian automobile industry. All Islamic countries hold its pride of producing automobiles by Malaysia. Proton Saga was the first ever which made Malaysia to obtain recognition worldwide for its impressive performance. This national project has progressed extensively merging with the United Kingdom’s well known automaker (Lotus International) in 1996 and the recent introduction of a new engine, the Campro (Rosli, 2006).

In the year of 1984, National Car Project by PROTON was the second phase project of the development in the automotive industry. The development based of intellectual property of the industry and increment of technology level was the milestone of this project. The PROTON project, which was a joint-venture programme with Mitsubishi Motors Corporation of Japan, began its production with the PROTON Saga model in 1985 (Arshad & Iswalah, 2006).

In the year of 1992, follow up of this success, Perusahaan Otomobil Kedua Sdn Bhd. (PERODUA) was launched. This success was the result of an agreement between UMW Corporation Sdn. Bhd., Med-Bumikar Mara Sdn. Bhd., Daihatsu Motor Co. Ltd of Japan, Mitsui & Co. Ltd of Japan, PNB Equity Resources Corporation Sdn. Bhd., and Daihatsu (Malaysia) Sdn. Bhd (Arshad & Iswalah, 2006).

1.2 Problem Statement

Although Proton had gone through numerous achievements in the recent years, there are few talking points where it highlights the problems that Proton for the past decade. The problem with Proton Holdings Bhd is that it feels that Malaysia owes it a living. It wants to continue to make profits at the expense of Malaysians. It does not realize that 25 years is too old for it to be babied (P.Gunasegaram, 2010). Government charges heavy duty taxes to the foreign company vehicles in order to baby sit the Proton plantation. By this, the people will consider purchasing cheaper rate cars and their option would be Proton.

Proton wants to joint venture with Perusahaan Otomobil Kedua or known also as Perodua. In these recent years they have surpassed Proton in sales and turn out to be the market leader. But Perodua is a reluctant bride and its top management has openly, and understandably, expressed opposition against the merger because it gives no benefit to Perodua while being potentially rather harmful (P.Gunasegaram, 2010). This had lead Proton to find a technological merger with a high reputation and large manufacturer.

The both company, Proton Holdings Bhd and Mitsubishi Motors Corp have agreed on product collaboration. The purpose would be to supply the Proton source a vehicle from Japan to replace the Waja and Mitsubishi take the Persona and Proton’s upcoming MPV (multi purpose vehicle). This is also to market the Mitsubishis in certain markets (Sidhu & Yap, 2008). The Waja replacement is the introduction of Proton Inspira.

One of the main reasons this research was conducted is to look how people’s purchasing decision on Proton cars. It is also to find out whether the pricing of Proton car matches the standard of its quality. We also look into Proton’s customer service quality and delivery of its services throughout the whole Malaysia. Apart of that, we had look onto the performance and quality of the Proton products that have been manufactured and automated in Malaysia. Lastly, we look how far customer’s acceptance of the rebranding of Proton Inspira and its success rate after launching the new car in Malaysian market.

1.3 Objectives of Research

The objective of this research is to monitor the purchasing decision on Proton cars. It also contains the overall view of the Proton automobile industry. It also discusses the weaknesses of Proton’s quality in service providing department. This reflects on the proton branding is tarnishing. This can be justified by an issue that pulled Proton’s quality reflection down. Proton Holdings Bhd had recall their 15,911 of Proton Satria Neo and Proton Gen.2 models made between 2004 and 2008 due to a clock spring malfunction is likely to cost the company an estimated RM5mil (Mahalingam & Eugene, 2010). This had raised several questions in the service quality of proton and on the security issues of the car. The rebranding concepts should actually rise up the quality or the interior and exterior elements, but it didn’t happen in this case.

It has been almost 10 years Proton Waja had established in the market consistently. Proton selected to use Mitsubishi Lancer as the Waja replacement model, in order to stay competitive in the automotive sector. It is designed to fill in the gap for the need of a product in its segment without having to invest heavily. In the year of 2010, Proton’s current plan was to develop the Persona replacement model. Thus they decided to put more money and attention into it. The replacement model of Waja was to be said Proton Inspira (Admin, 2010).

Despite its slum success, there are few set backs that criticizes the introduction of Proton Inspira. Recently debated in the Parliament, one of the Member of Parliament criticised the move by Proton as taking a step backward. Comparing the rebadged Inspira to the Saga which was also rebadged version of the 3rdgeneration Lancer (the Inspira follows the 9th generation Lancer), the backward move suggested the lack of capability of Proton as a full fledge car manufacturer (Lim, 2010).
This leads us to primary objectives of this study, which is: 1) To determine people’s purchasing decision on Proton’s car based on basic car buyer’s criteria.
Next, the supporting objectives of this study: 2) The weaknesses of Proton’s quality in service providing department, which reflects the tarnishing of proton’s branding.
And
Finally, and another objective of this research would be: 3) The success and failure rates among the buyers and respondents of this Proton product.

1.4 Research Questions
The following questions that are asked in this research are derived from the research objectives:
General buying criteria’s that influences the purchasing decision 1) What determine people’s purchasing decision on Proton’s car based on basic car buyer’s criteria?
The main problem that Proton is facing currently in their automotive industry 2) What are the weaknesses of Proton’s quality in service providing department?
The Proton’s brand image 3) What reflects the tarnishing of proton’s branding? 4) What are the success and failure rates among the buyers and respondents of this product?

1.5 Significance of Study
Automotive Industry 1) This study will provide an insight to the factors that affect the customer’s perception in automotive industry through its customers purchase decision. By manipulating the identified buying criteria that affects purchasing decision, marketers are better able to increase the sales of their product. 2) This research is able to assist marketers in the automotive industry on promoting their products to the relevant parties that is found to have the most influence over the purchasing decision of others. 3) In the past, automotive industries have always targeted their products to the baby boomers generation.

1.6 Scope of Study
The age group that was targeted are from below 20 to above 50. This translates to those whom were born between the years of early 90’s to late 90’s.
In addition, this study was conducted for adolescent whom are living in Melaka, Kuala Lumpur and Penang area. This was done based on convenience sampling.

1.7 Definition of Terms
Reference Group:
A group that influences the attitudes of those individuals who use it as a reference point for evaluating their own situation (Hyman, 1942).
Proton car:
National car project is corporate by Proton Holdings Bhd (Proton Holdings, 2011).

1.8 Organization of Research Project
Chapter 1: provides a clear statement of the topic/ problem under investigation and provides the general context for the research sometimes giving details of the methodology and the theoretical background and usually outlining applications of the research. If forcefully justifies the need for this research, and states the aims. It usually concludes with a chapter-by—chapter outline of the content of the dissertation.

Chapter 2: Literature Review presents an important review of relevant and similar previous studies in the research field. This chapter explains how knowledge has been built up in the research field and, by vividly demonstrating the achievements and success but also the weaknesses of the previous research; it presents a well-argued justification for the research to be undertaken. Basically, the purpose of this chapter is to analyze thoroughly a segment of a published body of knowledge through summary, classification, and comparison of prior research studies, theoretical articles and reviews of literature.

Chapter 3: defines what the activity of research is, how to proceed, how to measure progress, and what constitutes success. It focuses primarily on providing help with the tools and techniques used in the research process.

Chapter 4: reports and discusses the findings; and deal with the body of the thesis. This chapter also tells the readers the results and correlation that emerged from the findings of this study. Besides that, the finding will also either support or reject the hypotheses of this research.

Chapter 5: explains the major conclusions, which can be executed from the findings of the research. This chapter also makes a better recommendation for further research.

1.9 Summary of Chapter
The purpose of this study is to determine the influence of the reference group which consists of cost of a car, customer service center, gas mileage, performance quality, and safety of the car on customer purchasing decision of Proton cars. This research also seeks to answer the research questions as stated in the text above. Furthermore, this study explores the gaps in the current research papers in regards to the influence exerted by reference group on the purchasing decision on Proton cars. This study also contributes to various parties such as automotive industry, society and future researches. The scope of study for this research is focused on the customers both male and female, ranging from age below 20 to above 50 years old that purchase Proton cars in Malaysia.

Chapter 2
Literature Review
2.1 Introduction
This chapter will discuss in depth of Proton’s emergence in Malaysia as the national automobile industry. In detailed would be the purchasing decision of Proton’s car in Malaysian automobile market. There will be exploration of the Proton’s service quality according to the definitions and findings of past research. First, the perception of Proton cars and its acceptance will be investigated. Next, the literature will look into the history of Proton’s entry in local market and its development in these recent years.

2.2 Proton’s Background
Malaysian Prime Minister Tun Mahathir Mohamad launched the Perusahaan Otomobil Nasional (Proton) as our national car project in the year of 1983 (Chacko, 2006). Proton is the first established automobile company in Malaysia. The goal of this national car project is to rise up the Malaysian industrialization. Proton Saga was the first model that was produced in the year of 1985. Proton used the technology of Mitsubishi and its hardware parts. At last, Proton Gen2 was introduced on February 8, 2004. It took Proton nineteen years later to launch the first Malaysian-developed car, including the chassis and engine (Chacko, 2006).

Malaysia made an enormous leap in the year 1980s and 1990s by emerging as the fastest developing country across the ASEAN region (Ahmed, 2008). The leadership of Dr.Mahathir was the one who introduced in a national development policy document entitled Vision 2020. The portfolio of Proton models includes the Waja, the Gen2, Arena, Savvy, Satria Neo. The company primarily operates in the UK, the Middle East, South East Asia, and Australasia (PROTON Holdings Bhd, 2007). The headquarters is in Shah Alam, Malaysia. There are around 11500 employees in Proton.

This company is basically engaged with manufacturing, assembling, trading and the provision of engineering. 2009 annual record says that the company had recorded of MYR6, 486.6 million during the financial year ended March 2009, an increase of 15.4% over FY2008 (PROTON Holdings Bhd, 2009). The net loss was MYR301.8 million in FY2009, as compared to net profit of MY184.6 million in FY2008 (PROTON Holdings Bhd, 2009).

Proton is strongly recognized in the industry. In Malaysia, it is the biggest automobiles manufactures. Strong industry recognition would further enhance the brand image of the company and gives it a competitive advantage (PROTON Holdings Bhd, 2009).

Here is the 2009 SWOT analysis:
Strengths
It has the recognition leading to a strong brand image in Malaysia. Proton started to have a strong focus on R&D projects in their future plans (PROTON Holdings Bhd, 2009).

Weaknesses
Proton relies more on the concentrated operation as it’s over dependence on the Malaysian market (PROTON Holdings Bhd, 2009). As it goes by, Proton’s cash position was declining. It was predicted that it could reduce the availability of resources to pursue growth plans.

Opportunities
Proton ventures into strategic alliances as it expand its product portfolio by signing up into strategic agreements and strengthen its position in the industry (PROTON Holdings Bhd, 2009). The collaboration with Mitsubishi Motors is part of the product alliance strategy. This enhances new opportunities globally. Proton also set to launches new and improved models in order to expand its product offerings, such as Proton Saga BLM.

Threats
Proton faces intense competition in its market segments. Their close rivals would be Perodua, Toyota and Honda (PROTON Holdings Bhd, 2009). The basic competition would on the pricing, service quality, development and customer service. The government had also tightened the emission standards align with the ‘Go Green ‘campaign.

In this region, basically there are two local competitors in automobile industry. Two main rivals is Proton and Perodua. The 1st round of battle between Proton and Perodua was on 2005. Perodua launched its Myvi and later Proton launched its Savvy. It was a huge success for Perodua and Proton was the big time loser. Perodua managed to sell around 7000 units of Myvi per month until now but Proton only sell less than 500 units of Savvy per month until now (DeMartin, 2008).

In the year of 2011, Proton aimed to overtake Perodua and capture the best selling position of this year. Since the early days, Perodua had been the main competitor for Proton. Due to this, Proton had made few steps to overtake Perodua market, and one of it is collaborating with another automobile dealer from different country. Indian automakers, Tata Motors are interested to venture in Malaysia market by working with Proton. It has been said that both automakers wanted to make this deal successful eight years ago, but no results appeared. Tata manufactures the world’s cheapest car Nano, a four-seater car priced at USD3000. Malaysia’s Deputy Prime Minister Tan Sri Muhyiddin Yassin visited Tata and the car in Mumbai said, this car could be Malaysia’s very own ‘kereta rakyat’ or people’s car (Anoymous, 2011).

Malaysia, similar to its neighbors, such as Thailand and Indonesia, had begun a drive toward industrial development. This was at the beginning of the 1980s in an effort to reduce and lessen the country's reliance on foreign-made imported products. Prime Minister had targeted the sectors for development was that of a domestic automobile industry. Instead creating a domestic industry from level 0, however, Mahathir sought a partner with an established auto maker. In 1981, during a company visit to the country by executives from the Japan's Mitsubishi Corporation, Mahathir proposed a proposal on the creation of a joint-venture to produce Mitsubishi-designed automobiles in Malaysia (Grant, 2004).

Types of Proton car models
These are the list of cars that available in Proton Holdings.

Proton Saga (1985 to 2008)
The first Proton model was Proton Saga which is also known as the MPi in the UK). In September 1985, it was setup in the city of Shah Alam, Selangor. This place takes the assembly line for the first time. The 100,000th Proton Saga model was produced in the year of 1989 on January. (Proton Holdings, 2011).

Proton Wira (1993 to 2006)
Malaysia is still popular of its Proton Wira. The 1992 Mitsubishi Lancer design was implemented from its trunk lid looks and tail light special edition design. The word Hero was used instead of word Wira as it is translated into English. Proton chose to use the word Persona instead using the same name. (Proton Holdings, 2011).

Proton Satria (1995 to 2007)
Proton Satria designed as 3-door sporty look sedan based on the Japan’s Mitsubishi Mirage / Mitsubishi Colt. It is also known as Proton Compact in the UK. The takeover of Lotus on Proton had gave a huge lift on the important engineering knowledge. Satria is being produced with the special Lotus badged version (Proton Holdings, 2011).

150 units of Proton Satria R3 model edition is known as the limited edition on the road-legal race-spec. It comes with a double seam-welded lightened chassis and a tweaked engine with more aggressive cam timing (Proton Holdings, 2011).

Last batch of Proton Satrias is the Proton Satria SE in the production line. It features the similar Proton Arena sports rims and many extras in the interior similar to the Proton Wira SE edition model. (Proton Holdings, 2011).

Proton Putra (1995 to 2000)
Proton Putra is known as the Proton’s sporty look 2-door coupe foundation based on the Mitsubishi Mirage. It was basically sold in the region of Australia and UK as the Proton Coupe or Proton M21. Proton Putra was well welcomed and commands good second value in the market (Proton Holdings, 2011).

Proton Perdana (1995 to 1998)
Proton Perdana, was produced in 1995 based on the Mitsubishi Eterna, Proton Perdana was intended for the higher-end market (Proton Holdings, 2011).

Proton Tiara (1996 to 2000)
Proton Tiara was foundation based on the Citroën AX model as the class 5 door compact car. It was manufactured under license from PSA Peugeot Citroën by Proton from the year of 1996 to 2000. The Tiara designed by a 1.1L engine and build in a different grille, tail lights and bumpers than the Citroën AX. Its successor is the Proton Savvy (Proton Holdings, 2011).

Proton Perdana V6 (1999 to 2010)
Proton Perdana V6 is the improvised version of the Perdana. V6 designed with a more powerful V6 engine and new front and rear look. It was later improvised to include the Alfa-Romeo-inspired grille which earned V6 the nickname Alfa-dana among enthusiasts (Proton Holdings, 2011).

Proton Juara (2001 to 2003)
Proton Juara was a replication of microvan foundation based on the Mitsubishi Town Box Wide. The external appearance looks of the car is done by the modification and alteration of the original Town Box. It wasn’t that popular and not reachable to the Malaysian market as it suffered from a poor sales record during the years of its production. Fuel consumption was good and very versatile for the Proton Juara had established as economical car. It is best-equipped Mitsubishi-based models offered from Proton (Proton Holdings, 2011).

Proton Waja (2000 to Present)
In Europe Proton Waja is known as Proton Impian. It is the first Proton to be styled in-house and designed. The word Waja translates into English as "steel" while Impian translates into "dreams" or "ambition". To be a more easier word to pronounce for the international market, the name Impian was chosen as it was considered. The facelifted on 19 January 2007, Proton Waja was launched with the new grille nearly identical to the Proton Savvy. To be premium product in some markets it was initially marketed. Despite it, the actual product proved unconvincing, and the ill-judged marketing ploy was quickly dropped (Proton Holdings, 2011).

The Waja model was also released as the Proton Chancellor in the late of 2005. It differs from the executive market with a 250mm wheelbase stretch and luxury fittings and accessories. Proton Perdana V6 was fitted with powertrain specification. The Chancellor is a very rare sight on Malaysian roads holding a selling price record of about twice that of a Waja (Proton Holdings, 2011).

Proton Arena (2002 to Present)
Proton Arena which is also called Proton Jumbuck in the United Kingdom and Australia. It’s a coupe utility vehicle. Proton engineers managed to develop this vehicle for those who need a small and economical utility vehicle as opposed to a commercial truck. In Australia, 1200 units were sold in the first year. The Arena comes in 3 body styles model (Proton Holdings, 2011).

Proton Gen-2 (2004 to Present)
Launched on February 8, 2004 Gen-2 as the first fully Malaysian-developed including chassis and engine interior parts. It is the replacement model for the Proton Wira. Yet, Proton still decide to continued selling the Wira after the Gen.2 was launched. In the target market, it is primarily known for the popularity of sedan/saloon vehicles. The Gen.2 is the best-looking Proton as hatchback design. It has a modern interior with design cues from the Lotus subsidiary. The low quality of materials is the weakness of this car.

The interior components seriously hurt the public's perception of the quality of the vehicle at launch. With the assistance from the TUV of Germany, after production models used improved quality materials to help maintain the quality improvements (Proton Holdings, 2011). The Gen.2 was the first Proton to use CamPro engine, which at launch was widely criticised for the lack of low- to mid-range torque (pulling puwer). This is due to a late decision to drop Camshaft Profiling from the engine feature-list in production models. There were several plans improve this torque deficit by adjusting ECU parameters have largely been unsuccessful.

Proton Savvy (2005 to Present)
On June 8, 2005, the Proton Savvy was officially launched. The car is fitted with an engine and a gearbox, sourced from Renault. Proton Savvy had recorded as the best fuel consumption rate car model of about 24 km/L at constant speed of 90km/h in an official on-road test made by Proton in mid year of 2006. The car as verified by Malaysian Book of Records, making the car as the most fuel-efficient Malaysian (Proton Holdings, 2011). It’s surpassing the Proton Waja with very good fuel efficiency the car maintenance. Moreover it’s using one of the European Renault engine (Proton Holdings, 2011).

Proton Satria Neo (2006 to Present)
Proton Satria Neo is the replacement model of the previous Satria variants. It is using all-new design, chassis and powerplant. The Satria Neo is available in 1.6L and 1.3L variants, launched on 16 June 2006 (Proton Holdings, 2011).

Proton Persona (2007 to Present)
On 15 August 2007 this project was launched. The 1.6 liter sedan body of Persona is based on the Proton Gen-2. It possesses features of a sedan body instead of the Gen-2's hatchback body. Yet it retains the exact and same 82kW Campro engine. In the UK market the Persona is rebadged as the Proton Gen-2 Persona (Proton Holdings, 2011).

Proton Saga BLM (2008 to Present)
Designed to outperform and outclass the old Saga compact sedan and aeroback in every way Proton Saga is known as an indigenous design. Its bodywork is essentially based on a stretched Proton Savvy. This project is in collaboration with Lotus Engineering and Korea's LG CNS to develop the new model kit. This model allows the Malaysian company play to its part in the home market (Proton Holdings, 2011).

Proton Exora (2009 to Present)
This project was launched on 15 April 2009. This vehicle is geared up by the 1.6L Campro CPS I4 engine producing 125 horsepower and 150Nm of torque; resulting in a top speed of 165 km/h (103 mph) and an average fuel consumption of 7.2 L/100 km (39 mpg-imp; 33 mpg-US). The Exora will own a Body Control module that allows automatic activation and configuration of various vehicle functions. Such as interior lamps, headlamps door, locking/unlocking, brake lamps and wipers. On 17th February 2009, the result has been announced. The meaning of the Exora derives from the name of a flower (Proton Holdings, 2011).

Proton Inspira (2010 to Present)
The latest model which is been launched is Proton Inspira. This project was previously known as Proton New Sedan. The Compact car is important as a rebadged 9th generation project of Mitsubishi Lancer (Proton Holdings, 2011). It’s highly regarded as the one of the vital rebranding project for Proton and Mitsubishi as they collaborate to create a new brand in Malaysia. It could be said that it’s a replica model of Mitsubishi Lancer. Since it’s a new model in Malaysia, there are still issues that being spoken on the pricing and quality factors.

2.3 Generation Y
Generation Y is generally defines as the 71 million individuals born between 1977 and 1994 (Nayyar, 2001). It is said that Gen Y is the emerging generation with the powerful aggregate spending ratio. The oldest of this generation are just beginning to enter the workforce (McCann, 2010). They are very well educated; possess high level of self esteem (Wolburg & Pokrywczynski, 2001). Generation Y’s current purchasing power of $153-155 billion a year (J.Bush, A.Martin, & D.Bush, 2004) and it is said that it has a huge potential for huge amounts of buying power in the future era (Wolburg & Pokrywczynski, 2001). Technological enhancement and globalization had influence Generation Y into a materialistic, consumer culture and increase brand loyalty (Bakewell & Mitchell, 2003).

Majority of Proton’s users are from generation Y, who are born in the mid-1980 and later. By 2012, Gen Y consumers will account for approximately 40% of the car-buying population and represent a new breed of confident consumers who are independent, tech-savvy, engaged and demanding (Bryant, 2011).

Consumers force is growing rapidly in nowadays society. Especially with Generation Y’ers may rival to the baby boomers. Basically Gen Y consumers are form their mid teen to late 30’s and most of them are new to this automotive world. Consumer Gen Y is more focused on affordability and practicality. It is more on to the style and features of the vehicle (Finlay, 2009). Gen Y concerns more on the fuel economy, needed features, reliability and the integration of the features.
2.3.1 There are few common traits that define Generation Y:
Family-Centric
The fast-track has lost much of its appeal for Generation Y who is willing to trade high pay for flexible schedules, fewer billable hours, and a better work and also life balance. The elder generations view this attitude as narcissistic or lacking commitment, discipline and drive (Kane, 2010). Generation Y legal professionals have a different kind of vision of workplace expectations and prioritize family over work.

Team-Oriented
They value teamwork and seek the input and affirmation of others. Part of a no-person-left-behind generation, Generation Y is committed, loyal, and wants to be included and involved in each part of the work (Kane, 2010).

Attention-Craving
Generation Y craves attention in the forms of feedback and guidance. They appreciate being kept in the loop and seek frequent praise and reassurance. Generation Y may benefit greatly from mentors who can help guide and develop their young careers (Kane, 2010).

Tech-Savvy
Generation Y grew up with technology and rely on it to perform their jobs better. Generation Y is plugged-in 24 hours a day, 7 days a week. This generation prefers to communicate through e-mail and text messaging rather than face-to-face contact and prefers webinars and online technology to traditional lecture-based presentations (Kane, 2010).
2.3.2 How to market to Proton’s generation Y users
Proton found it very had to accomplish their buyer’s fulfillments. As the standards of other automobile company increases, the buyer’s demands and expectation increases as well.
To capture the attention of Gen Y, the company must use few famous media sources to attract their interest. The famous media usage will be the Internet, where an Internet strategy had to be used. An interactive web site is needed which provides name, location, offerings, background and contact information (Bachler, 2008). Advanced communications has condensed the world and home based entrepreneurs, are expected to be accessible most of the time (Bachler, 2008).
Be available 24/7
Nowadays the consumers are collecting the information whenever they want and how they want at any time. Gen Y in particular has become habit to instant gratification and they prefer to receive lots of feedback whether is positive or negative. They are so impatient and need answers immediately. Thus we must be careful to take that into consideration when marketing with Gen Y (Erica Campbell, Gillian Luce and Kimetha Hill, 2009). Moreover, Web site and listings on our Web sites, also consider having a blog site, for example Proton Fan Club page or blogs. For Proton Inspira, they do have a club web page which is PROTON INSPIRA CLUB. This allows users of proton Inspira to interact with each other about their opinions and problems.

Listen
Gen Y is very optimistic and expressive and making their point is vital for them. Listen carefully to their wants and needs with that analyze their behavior carefully. According to a Cone Business study in September 2008, 94% of people using social media trust a company should have a presence appearance in social media and 84% believe a company should go further ahead than just having a presence and should also interact with its consumers via social media (Erica Campbell, Gillian Luce and Kimetha Hill, 2009).

Be creativity
The Gen Y likes to jumble everything into one and keep it new. So your advertising skills and techniques to them need to be creative in order to grab their attention. Things you’ve done in the past may not necessarily work for the future purpose. Being innovative minded and thinking outside the box skills is important. This concept gives users lots of flexibility route with their responses and also allows for plenty of room for fun and creative interpretation (Erica Campbell, Gillian Luce and Kimetha Hill, 2009).

2.4 Social Influence of the Automobile Industry
Automotive dealer were late adopter to the internet world and today it would be unlikely to find any dealership without a website. Today, buyers have continued to maintain the upper hand because of the numerous amounts of online tools that are available for vehicle and dealership research. It enhances the challenging environment for dealerships. One of the main acquisitions last year is about building trust, loyalty and respect with the consumer. This information was gathered by Amazon for $1.1 billion.

2.5 Social Media Automotive Dealership Evolution
Over the year, marketing has adapted and automotive dealers have reacted accordingly, some faster than others. Social Media is here and it’s here to stay. Its goes in this order of hierarchy:

Demographic

Geographic

Psychographic

Behavioural

Social graphic

As the time passes, marketing and the social media will be more influential around various industries. It must be integrated into, fixed operation strategies, marketing and automobile dealership sales.

2.6 Automotive Industry
In the 1960’s era, the development of the automobile industry in Malaysia had started. The Malaysian government encouraged the development of automobile assembly plants. The main objectives and target were to decrease the imports of the build up units. It helps and maintains the units that will help to stabilize balance of payments, provide the base for transfer of technology and to create more employment (Mahidin & R.Kanageswary, 2004). During the 1970’s era, the government had promoted to enhance and strengthen the development of local parts and departments of the industry with the slogan ‘Local Content Policy’ (Mahidin & R.Kanageswary, 2004). The first national car that was manufactured was Proton Saga. The entry had restructured the industry from as assembly to manufacturing phase. Second national car which was manufactured is Perodua Kancil made its debut in 1994. In the process route of the growth, this project has contributed the development of the local component of Malaysian industry. About 350 component manufacturers in Malaysia, where 234 are Proton vendors and 135 are Perodua vendors. The automobile industry has succeeded in fulfilling the government’s industrialization effort to enhance the country’s economy (Mahidin & R.Kanageswary, 2004).

2.6.1 Malaysian Automobile Policy
This policy has been the key factor decider in making the national automobile industry a successful industry. New policies were implemented to protect the national automobile industry; it enabled national cars dominate and monopolize the local automobile market (Mahidin & R.Kanageswary, 2004).

2.6.2 The importance of the Automobile Industry
The significance is its impact on economic development, industrial organizations, technologies, managerial practices and the standard of living of producing countries (Rosli, The Automobile Industry And Performance of Malaysian Auto Production, 2006). The automobile industry is considered the single largest manufacturing sector in the world (Turnbull, 1922). Effort to develop the automobile industry would have significant impact on the resource-based industries, such as iron and steel, chemical, nonferrous metal, rubber and plastic-related industries as well as petroleum-based industries; and on non-related based industries (Rosli, The Automobile Industry And Performance of Malaysian Auto Production, 2006). Basically, the significance of the automobile industry requires a set of production systems linking a wide range of industrial organizations and technologies with the great variations in size and sophistications (Rosli, The Automobile Industry And Performance of Malaysian Auto Production, 2006).

2.7 Purchasing Decision
Purchasing decisions in automobile industry is based on the consumer’s preferences of car criteria. This would be the cost of the car, customer service quality after the purchasing takes place, the gas mileage consumption of the car and safety features of the car. Many of car consumers look into the second hand market value of the car. Cars are the second most expensive single item purchased by a household after a house (Banerjee & Saikat, 2010). The price of the car also has a great significance on influencing the purchase of a car.
Most of the Proton cars prices are ranging from RM35000 to rm65000. This is considering cheap compare to the other foreign cars. According to (Peter & Olson, 2004), the key process in consumers’ decision making is the integration process by which knowledge is combining to evaluate two or more alternative behavior. In purchasing decision there are seven stages, which are need recognition, search for information, pre-purchase evaluation alternatives, purchase, consumption, post-consumption evaluation and divestment (Blackwell, Miniard, & Engel, 2006).
There are 8 main scales that determines the automobiles purchasing decision which is, resale value, gas economy, value for the money, overall appearance of the car’s exterior, ease and fun of driving, simplicity of design and easy maintenance, reliability and quality, pickup and acceleration and price (Farley, Howard, & Lehmann, 1976).
Purchasing decision of a product influenced by the reference groups. Primary groups are basically evolved with the person that we always meet, such as friends, close colleagues and family. Primary group has a sufficiently low number to allow face to face contact, and the subjects’ participation is characterized by cohesion and reciprocity which decides similar behavior and beliefs within the group (Carmen & Puiu, 2008).

The nature of reference group influences can be in theses forms:
Informational influence
Informational source is used in different stages of the decisional process. This type of influences involves when an individual uses the behaviors and opinion of the reference group members as reliable informational sources (Carmen & Puiu, 2008).
Normative influence
It is basically called as utilitarian influence. Its shows the level of norms, values and aspirations of an individual in the process of purchasing the product or services (Carmen & Puiu, 2008).

2.8 Consumer’s Purchasing Preferences
2.8.1 Pricing of the car
The life cycle of a product had been shortened, the internal competition has increased and competition has become a worldwide phenomenon. The product is becoming increasingly important and strategic in corporate marketing mixes in this automotive industry; so, product development process ensures the car models perceived of higher value will fulfil the needs of the highest possible number of customers more satisfactorily and rapidly (Jiang, 2009).
Proton was created as a symbol of Malaysia’s nationalist pride, which lasted since two decades ago. Over the past recent years, Proton had steadily losing share through persistent quality control and customer service problems (Savage, 2005).
The new cars market consists of the initial retail sale of passengers cars. The market value is calculated at retail selling price (RSP) and the market volume is given in terms of units sold (Anoymous, New Car Sales Industry Profile: Global, 2010). Car manufacturers are required to address increasingly specific market needs while still providing value, in order to ensure success and thereby maintain or improve their position with regards to competitors (Jiang, 2009). Proton is already established its pricing strategies very well in Malaysia by over pricing foreign car companies in order to baby feed the national project.
In the past researches, studies in production such as that by (Womack, 1990), are typically directed to analysts and potential car owners as well, and indicator that consumers should purchase car models that are cheaper, have lower variable and service cost, have a longer life and higher performance than cars made by a different production technology (Jiang, 2009).

People of Malaysia is owns a high rate in price sensitivity. As price of the car tends to fluctuate more often in the starting of the year, people tend to jump from another car company to another. This has been a plus point for the car company’s to sell more units with lesser price. However, car pricing in Malaysia is determine by National Economic Plan (NEP). The government stakes up the price of foreign car companies in order to support the national car project. This is because motor car policy is forcing Malaysians to subsidize Proton so that Proton can sustain its major market share in the Malaysian economy. Due to the tax structure to protect Proton, cars in Malaysia are very expensive compared other parts in the world.

Here are the few price comparisons which have been analyzed using Proton and foreign companies:
BMW 535i sells for RM178, 000 in the US In the United States of America is known as a developed country. We are also achieving to become by the year 2020, selling a 2009 model BMW 535i Sedan is for about USD 50, 400.00. This is only RM180, 000. It is about the price of a Toyota Camry 2.4L here in Malaysia. The same BMW sells in Malaysia for about RM455, 000.

Audi A4 2.0T Cabriolet Convertible sells for RM143, 000 in the US The 2009 model of Audi A4 2 Door 2.0T Cabriolet Convertible sells in the US for USD40, 000.00 or RM145, 000. In Malaysia the same car would sell for about RM270, 000.

Price list of Proton Cars
Car list Price Proton Savvy 1.2 B-Line (M) Metalic | 33,999.00 | Proton Gen.2 1.6 H-Line (A) Metalic | 60,488.00 | Proton Waja 1.6 H-Line (A) Metalic | 64,888.00 | Proton Exora CPS 1.6 H-Line (A) Metalic | 76,998.00 | Proton Satria Neo CPS 1.6 H-Line (M) Metalic | 57,763.00 | Proton Persona Elegance 1.6 B-Line (M) | 46,499.00 | Proton Saga 1.3 N-Line (M) Solid | 32,000.00 | Proton Inspira 1.8 Executive (M) Metalic | 79,888.00 |

2.8.2 Gas mileage
In Malaysia, oil pricing issues is one of the hottest topics that never end every year. In each quarter of a year, oil price tend to rise up by few cents. This has been happening in these recent years where people complains that the usage of oil by certain car is not acceptable, especially the cars that runs with more engine performances.

Our country is in the verge of becoming the top fuel saving region, align with the go green campaign. Government are trying to reduce air pollution through legal restriction, and automotive companies are endeavoring to develop more effective catalysts, to design low emission engines and to produce an alternative power train to reduce exhaust gas (Ryu, 2002).

Economy is in recovery mode and summer driving on the upswing, gasoline prices are ticking up--prompting more new-car buyers to consider an alternative-energy vehicle (Anderson & Jessica, 2010). From the recent survey it has been said that more than 50 percent of respondent says that gas mileage will be an important factor in their next car purchase (Motor Age, 2009). An increase in the oil price is a big risk factor for the global economy, and policymakers are right to be concerned about the impact of a permanently higher oil price, and should be looking at the ways of improving their energy efficiency (Malaysia Business Forecast Report, 2005).

In order to maintain the low fuel usage strategy, Proton had been using a low fuel consumption engine. Proton Savvy is the model that had recorded the fuel consumption rate of about 24 km/L at constant speed of 90km/h in an official on-road test made. The car as verified by Malaysian Book of Records, naming the car as the most fuel-efficient Malaysian. Yet there are few weaknesses in some of the Proton models that use a large amount of fuels such as Proton Gen2.

2.8.3 Customer Service Quality
Customer service quality of an organization or industry relies on the customer’s satisfaction level of a service. Many researches highlights on the importance of customer’s satisfaction. In one of the journal, (Zairi, 2000) had said that “Customers are the purpose of what we do and rather than them depending on us, we very much depend on them. The customer is not the source of a problem, we shouldn’t perhaps make a wish that customers ‘should go away’ because our future and our security will be put in jeopardy”. By this, organizations today are focusing on customer satisfaction, retention and loyalty.

Moreover satisfaction is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfillment of some need, goal and desire (Hansemark & Albinson, 2004). Organization or industries creates a benefit for a customer so that they will maintain or increase their repeating purchases from the organization.

As for Proton, there few issues in their customer service centers where customers weren’t completely satisfied with the service that had been provided. It has been said that Proton has been accused of not being customer focused and being too dependent on Government support (Mutum, 2000). There are many companies that give priories to the customer relationship where they try to satisfy their customer needs and create customer loyalty. Nevertheless, the practice of Customer Relationship Management (CRM), is relatively new in Malaysia regards to the Malaysian automobile industry. In the recent study on which car brand satisfies Malaysian consumers by the Malaysian Automotive Association, Proton, Inokom and Naza have crashed out, especially in terms of after-sale service.

As there were a lot of complaints on the service and warranty issues where there cars are not repaired on time and it takes a lot of hassle for the customers to send their car for service. This is the Proton staffs doesn’t provide the accurate information about the car service. A proton customer service offering is under the PROTON i.CARE umbrella. It provides the services from hotline to 24-hour breakdown service centre; moreover it will be the single point of contacts, serving as the ‘The Companion’ for customers (Proton Holdings Bhd, 2007).

2.8.4 Car’s Safety Features
Nowadays car consumers emphasize more cars’ safety features and give high importance on each of the features that have been implemented. Cars comes with the widest range of safety features which include standard equipment and easily available in the market. The basic car features contains the interior and exterior parts. With front and side airbags, impact-absorbing metal frames, and five-star crash testing the norm nowadays, automakers have turned their attention to crash prevention (Valdes-Dapena & Peter, 2009).

Proton has included most of the safety measures and features in their cars. The invention of seat belts had strengthened the security of the passengers. It is designed in a way that passenger stays in the car. It reduces the injury with the steering wheel, windshield, and dashboard. There is also energy measurement and features that enhances the seat belts to yield during a bad accident. This is in order to avoid forces on the shoulder belt (Proton Holdings, 2011). Air bags is one of the important features in safety measures. Air bags have been required in all vehicles since the 1990 model-year and have saved nearly 5,000 lives since then, according to the National Highway Traffic Safety Administration (Edgerton, Smith, & Stephanie, 2000).

Proton provides better stability and enhances performance to avoid crashes, especially on slippery roads or during emergencies. If the ABS system fails, the EBD function features as its backup. Antilock Brake System prevents a vehicle’s wheels from locking itself during braking. Proton also uses an ESC feature which is known as Electronic Stability Control. It is designed to help drivers to maintain their control of their vehicles during heavy steering maneuvers. Having been found to reduce fatal crashes by about a third, ESC will be a standard feature come 2012 (Valdes-Dapena & Peter, 2009). Proton also uses theft prevention immobilizer, to prevent unauthorized access to help prevent theft and to provide the driver with the peace of mind.

2.9 Summary of Chapter
This chapter explains about the literature review of purchasing decision on Proton cars. It starts of with the Proton’s background in Malaysian automobile industry which is explain thoroughly of the set up of Proton Holdings. The goal of this national car project is to rise up the Malaysian industrialization. In this chapter, it also explains the SWOT analysis of Proton Holdings from the year 2009 to present. The list of Proton type of cars is explained briefly from Proton Saga to the latest Proton Inspira. Generation Y buyers was discussed along with it traits and the ways to market to the Gen Y consumers. The automobile aspects were explained on the social influences, social media automotive, and Malaysian Automobile Policy. After that, this chapter discusses about the purchasing decision and consumer’s purchasing preferences on Proton cars which are the four variables; pricing of a car, customer service quality, gas mileage and safety features of a car.

Chapter 3
Methodology

3.1 Introduction of Methodology
The main objective of this research was to determine. In this chapter various topics was discussed includes hypotheses development, research approach, data collection, sampling, and data analysis techniques. The conceptual framework provided a rough idea on the relationship between the four independent variables and the dependent variable at a glance. In addition, an illustration for the conceptual model was also further explained to enhance the understanding of the reader. After identifying the various independent variables, the researcher developed hypotheses to test the validity of the relationship with the dependent variable. Next, the research approach and data sources were also elaborated. As this study used the survey method of questionnaire, therefore the design and measurement was explained in detailed. Finally sampling method, sample size, unit of analysis and the data analysis techniques was also explained.

3.2 Conceptual Framework
A conceptual schema or conceptual data model is a map of concepts and their relationships. Particularly, is portrayed the item of importance to an organisation (entity classes), about which it was likely to collect information, and characteristics of (attributes) and associations between pairs of those things of significance (relationships).
As observed in the diagram (figure 3.1), it showed the relationship (interpersonal influence) between the independent variables and connection with the dependent variable. The independent variables (reference groups) consist of cost of a car, customer service center, gas mileage, performance quality, and safety of the car meanwhile; the dependent variable is the purchasing decision of Proton buyers among generation Y.
Figure 3.1: Conceptual Framework for this research Cost of purchasing a car
Cost of purchasing a car
Independent variables

Purchasing Decision
Purchasing Decision
Customer Service Quality
Customer Service Quality Dependant variables Gas Mileage
Gas Mileage

Safety, performances and styling features
Safety, performances and styling features

Table 3.1 Lists of the variable along with its definition and description and its source. Variable names | Description | Source | Cost of purchasing a car | This variable plays an important role in the purchasing decision as the consumers’ values the car based on the market value. | (Jiang, 2009); (Savage, 2005); (Anoymous, New Car Sales Industry Profile: Global, 2010) | Customer service quality | After purchase service is very vital in the automobile industry. In order to maintain customers’ satisfaction, customer service is needed with a high requirement of standard. | (Zairi, 2000); (Hansemark & Albinson, 2004); (Mutum, 2000); (Proton Holdings Bhd, 2007) | Gas mileage | With the increment of oil price in every half of the year in Malaysia, gas mileage criteria are very much taken into account before purchasing a car. | (Ryu, 2002) | Safety features | With the advancement of safety technology, users demands for an enhancement in the vehicle tech features. | (Valdes-Dapena & Peter, 2009); (Edgerton, Smith, & Stephanie, 2000) |

3.3 Hypotheses Development After recognized the important variables from previous literature review and the relationship established through conceptual framework, now test the relationships scientifically to check whether the relationship between independent variables and dependent variable is accepted or rejected. Cost of a Car This is the most important criteria that a consumer gives importance before purchasing a car. Whether a consumer choose to pay cash for a vehicle or financing it, the trade in value is vital to decide the market price of the car (Anoymous, Car Costs in Perspective, 2010). The product is becoming increasingly important and strategic in corporate marketing mixes in this automotive industry; so, product development process ensures the car models perceived of higher value will fulfil the needs of the highest possible number of customers more satisfactorily and rapidly (Jiang, 2009). The new cars market consists of the initial retail sale of passengers cars. The market value is calculated at retail selling price (RSP) and the market volume is given in terms of units sold (Anoymous, New Car Sales Industry Profile: Global, 2010). In the past researches, studies in production such as that by are typically directed to analysts and potential car owners as well, and indicator that consumers should purchase car models that are cheaper, have lower variable and service cost, have a longer life and higher performance than cars made by a different production technology (Jiang, 2009). People of Malaysia is owns a high rate in price sensitivity. As price of the car tends to fluctuate more often in the starting of the year, people tend to jump from another car company to another. This has been a plus point for the car company’s to sell more units with lesser price. So the study comes out with the following hypotheses: H1: Cost of a car will have a positive influence on the purchasing decision on Proton cars. Customer service quality Superior service quality has been emphasized as an important competitive advantage for service firms operating in international markets (Eriksson, Kent, Majkgard, & Sharma, 1999). Customer service quality of an organization or industry relies on the customer’s satisfaction level of a service. Many researches highlights on the importance of customer’s satisfaction. Moreover satisfaction is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfilment of some need, goal and desire (Hansemark & Albinson, 2004). There are many companies that give priories to the customer relationship where they try to satisfy their customer needs and create customer loyalty. As for Proton, there few issues in their customer service centers where customers weren’t completely satisfied with the service that had been provided. It has been said that Proton has been accused of not being customer focused and being too dependent on Government support (Mutum, 2000). A good customer service quality can assure higher profitability. By having well trained employees, professional attitudes, customers are influenced to be a loyal customer for a firm. So the study comes out with the following hypotheses: H2: Customer service quality will have a positive influence on the purchasing decision on Proton cars.

Gas Mileage
In Malaysia, oil pricing issues is one of the hottest topics that never end every year. In each quarter of a year, oil price tend to rise up by few cents. This has been happening in these recent years where people complains that the usage of oil by certain car is not acceptable, especially the cars that runs with more engine performances.

Our country is in the verge of becoming the top fuel saving region, align with the go green campaign. Government are trying to reduce air pollution through legal restriction, and automotive companies are endeavoring to develop more effective catalysts, to design low emission engines and to produce an alternative power train to reduce exhaust gas (Ryu, 2002). An increment in the oil price is an enormous risk factor for the global economy, and policymakers are the one to be concerned about the impact of a permanently higher oil price; they should be looking at the possible ways of improving their energy efficiency (Malaysia Business Forecast Report, 2005). In order to maintain the low fuel usage strategy, Proton had been using a low fuel consumption engine. Proton Savvy is the model that had recorded the fuel consumption rate of about 24 km/L at constant speed of 90km/h in an official on-road test made. . From the recent survey it has been said that more than 50 percent of respondent says that gas mileage will be an important factor in their next car purchase (Motor Age, 2009). So the study comes out with the following hypotheses: H3: Gas mileage will have a positive influence on the purchasing decision on Proton cars. Safety features of a car Cars comes with the widest range of safety features which include standard equipment and easily available in the market. Nowadays car consumers emphasize more cars’ safety features and give high importance on each of the features that have been implemented. With front and side airbags, impact-absorbing metal frames, and five-star crash testing the norm nowadays, automakers have turned their attention to crash prevention (Valdes-Dapena & Peter, 2009). Proton provides better stability and enhances performance to avoid crashes, especially on slippery roads or during emergencies. Antilock Brake System prevents a vehicle’s wheels from locking itself during braking. Proton also uses an ESC feature which is known as Electronic Stability Control. Air bag is one of the important features in safety measures. Air bags have been required in all vehicles since the 1990 model-year and have saved nearly 5,000 lives since then, according to the National Highway Traffic Safety Administration (Edgerton, Smith, & Stephanie, 2000). Proton also uses theft prevention immobilizer. With all this technology, Proton uses a very good technology collaborated with the Mitsubishi technologies as well to improve their safety features and gadgets. So the study comes out with the following hypotheses: H4: Safety features will have a positive influence on the purchasing decision on Proton cars. 3.4 Research Approach The primary data for this particular research was collected through a questionnaire survey which was designed specially Proton cars. Questionnaire approach was used because to it being the most cost effective method of gathering information. This questionnaire was also ideal for the large sample size which came from a wide geographical area. The survey was designed in English. It was perceived that most of the Generation Y in Malaysia has at least sat for mandatory English language paper in the SPM exams during their secondary school education. Past studies that used questionnaire to collect information in similar area of study are (Konstantopoulos, Panos, & David, 2008) , (Bergstad, Gamble, Hagman, Polk, Gärling, & Olsson, 2011) and (Farley, Katz, & Lehmann, 1978). 3.5 Data Sources Primary data sources were collected through a quantitative approach through the administered questionnaire. The main purpose to get these primary data source was to acquire first hand information on the factors which influences their purchasing decision on Proton cars. Data was collected by face-to-face to the individuals who had bought and experience having a ride on Proton. Once the questionnaire was completed in full set, it was collected for the data analysis process. Secondary data sources was gathered from many books, websites, journals and articles to deepen the understanding of the concept of the purchasing decision of a car, definitions, and past findings of studies in related area. Example of secondary data sources used was obtained through the internet browser Google and Yahoo and online database like Emerald Insight, Ebsco Publishing, and Proquest. 3.6 Data Collection Method The data was collected in the form of questionnaire, the questionnaire was self administered through face to face to strangers that fitted the scope of study, which are born in years of 1977 to 1994 and have purchased Proton cars. 3.7 Questionnaire Design The questionnaire in this study consisted of two main parts which are Part A and Part B. The first section (Part A) of the questionnaire was the basic demographic profile. It was designed to collect information about the participants’ gender, age, ethnicity, profession, and economic status. The answers to the questions provided individual background information for each respondent. Those demographic features were important factors that may affect the consumer purchasing decision on Proton cars. Meanwhile, the second part (Part B) was a scale which measured the interpersonal influences between the purchasing criteria’s of a car. The statements in this part of the questionnaire covered the majority of the key questions and decisions in purchasing Proton cars. 3.8 Measurement All the items were taken from the previous literature and modified when necessary for the purpose of the current study. A five-point Likert scale was used for measurement. The scale consisted of five levels of agreement, running from strongly disagree up to strongly agree (1 = strongly disagree, 2 = disagree, 3 = neutral, 4 = agree, and 5 = strongly agree). The measurement logic was based on the fact that the higher the attitude mean score the move favourable the attitude, and vice versa. Lachance, Bedoin and Robitaille (2003); Tudor and Carley (1998); Mourali, Laroche and Pons (2005) and Magleburg, Doney and Bristol (2004) were some of the examples of past research that was previously done using the same sets of scale to measure the reference group influence. 3.9 Sampling Method Convenience sampling is basically known as a non-probability sampling techniques. Convenience sampling was used in this research, as the names suggested the sample was selected because they were convenient. This non-probability method was frequently utilised without incurring the cost or time required to select a random sample. Besides that, the choice of convenience sampling was preferred over the rest method of sampling due to the fact that the known popularity of generation Y in Malaysia was utterly impossible to obtain. 3.10 Sample Size The intended ideal sample size for this research would be 200 respondents. The respondents as mentioned earlier will be categorized as Generation Y whereby they will be born between years 1977 to 1994. There reason why 200 respondents chosen is because to make the sample varies from its geographical and demographical factors. 3.11 Unit of Analysis The unit of analysis was the major entity that was being analysed in this research. The unit of analysis that used in this study was individual people. A major advantage in using this unit analysis was that it was easily defined and identified. Moreover, it also permitted reference group relations to be investigated and allowed investigation of how individual differ by virtue of their gender, age, and social status. According to the literature uses individuals as their respondents. Such examples would be (Bryant, 2011), (Bergstad, Gamble, Hagman, Polk, Gärling, & Olsson, 2011), (J.Bush, A.Martin, & D.Bush, 2004) and many more.

3.12 Data Analysis Techniques After the total completed questionnaire was collected, gathered and put in order, the data analysis was done according to the thesis. So for the data analysis, SPSS software is used by the author for the windows to analyse the data from the questionnaires and organize in it in order. To consider appropriate and to have face validity, past research paper was used as it was for purpose of this study. Regression and correlation analysis was applied to analyse the data. The SPSS derives the descriptive analysis procedure forms tables and provided a variety of tests and measured association for tables (SPSS version 17).

3.13 Summary of Chapter In this chapter, the methodology of this study is indicated, along with descriptions. A conceptual framework was incorporated in this chapter, which stated the independent and dependent variables of the study. The hypotheses development of this study portrayed the description of each independent and dependent variables and hypotheses and four hypotheses were generated. The research approach was questionnaire based and primary and secondary data were used as the sources for the analysis of this study. Convenience sampling method was used to collect the data from the various individuals that fit in the scope of study. The questionnaire design has two parts, which are Part A and Part B. Part A consists of the demographic profiles of the individuals, while Part B comprise of questions regarding the variables that were studied in this study. In addition, the measurement of this study uses a five-point Likert scale, ranging from ‘1’ (Strongly Disagree) to ‘5’ (Strongly Agree). The sample size of this study was 200 respondents from the Generation Y population. Lastly, data analysis technique such as descriptive and inferential analysis is used in this study.

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