Competitiveness of Local and Foreign Hypermarkets in Malaysia- A Case Study in Melaka

Abstract:

Retail industry has evolved as a significant contributor to the economy. To be a successful hypermarket retailer, it is important to understand the dynamics of the hypermarket industry and to understand the behaviours of the consumers. Findings from empirical work indicates that store's attributes, product attributes, promotions activities, and customer relationship management are essentially and significantly correlated with satisfaction dimensions of hypermarkets. The findings in this study would possibly assist the local players in assessing their weaknesses and improving their services delivery so as to be more competitive in this lucrative yet challenging retail industry. Understanding consumer's shopping behaviour most will probably help retailers to gain more profitability and create competitiveness between local and foreign players. This report presents the finding of the pilot study with responses from 150 respondents from local hypermarket (Mydin) and foreign hypermarket (Tesco), using a Quota sampling, 75 data segregated to local and foreign hypermarkets. The finding shows that customer relationship management and store attributes play a vital role amongshoppers in evaluating local and foreign hypermarkets’ performance.

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