Consumer Perception Assignment (Doc)

A study on the preference of Generation
Y on the selection of gymnasium in
Malaysia

Table of Contents
ABSTRACT................................................................................................................... 3
Chapter 1.................................................................................................................... 4
Introduction................................................................................................................ 4
Chapter 2.................................................................................................................... 7
Literature Review....................................................................................................... 7
Chapter 3.................................................................................................................. 10
Methodology............................................................................................................. 10
CHAPTER 4 ............................................................................................................... 15
RESEARCH ANALYSIS................................................................................................ 15
4.1 Introduction..................................................................................................... 15
4.2 Demographic Profile.................................................................................15
CHAPTER 5................................................................................................................ 33
CONCLUSION & RECOMMENDATIONS.......................................................................33
CONCLUSION............................................................................................................ 34

ABSTRACT
The aim of this research study is to assess the specific characteristics of preferences of customers
regarding the selection of gym. The major issue related to the research is that less amount of
research and study has been done in the area of preferences of customers regarding gym
selection. The present research project is related to a gym sector in Malaysia. The report will
mainly concentrate on customer's perception regarding the services of gym such as training,
cardio, weight training, steam bath and other services offered by gyms. By assessing customers
wants and requirements, above mentioned fitness clubs would be able to improve their
profitability. In the chapter one it is discussed about the importance and the preference in going
the gym for their fitness and mention the problems related to the gym as well as to the fitness
studio. For this the research is being done. In the chapter two literature review is being done to
analyse the current and the existing knowledge for the substantial findings, research is being
done regarding the customer satisfaction and their subsequently intention to go in the gym and
using the service, review the past study that is being related to the price, quality, customer
relations, programmes and service offered and find out the main problem in the area where there
is having the lack of study. In chapter 3 methodology is being done by applying the different
approach in research , research strategy, data collection, sampling method all these is done in this
chapter. In the chapter four research analysis is being done by the graphical analysis , perception
of having the quality in gym, perception of the users in offering the different programmes and
services offer in the gym. In the last chapter conclusion and the recommendation is being given
in this whole study.

Chapter 1
Introduction
1.1 Background of study
Gymnasium (gym) which is place that is fully equipped with machines for physical workout.
People have different preferences regarding the various services offered by the fitness studios
which ultimately affects their choice. The current research report will highlight changing
preferences of generation Y which includes people belonging to age group of 25-39 years, on
picking of gymnasium in the country.
Fitness is a measure that assess the ability of human to perform daily functions in the most
efficient and effective way without any fatigue. Gym is a place which provides all the
facilities to people improve their health and overall fitness. The purpose of gyms is to
promote weight loss, enhancement of strength of muscle, flexibility, balancing, to provide
protection against osteoporosis (Walliman, 2017). The concept of fitness is becoming highly
popular than ever and continuous evolvement of technology has resulted into new training
methods, equipment, diets and other gyming services. In fact, this section of service industry
is contributing to a significant level in country's total income.
Customer’s choice regarding the selection of gym depends upon cleanliness, occasional
group exercise classes, and club consulting, personal trainers during its day time operation.
The research project is focussing on characteristics of customer preference and the
research will include various gyms so that wider perspective of customers could be gained.
1.2 Fitness and gymnasium in the Malaysian context
Generation Y (Gen Y) in Malaysia is characterised by their growing interest in leading a
healthy and fit lifestyle. This is reflected in their choice of food, fall in the rates of obesity
etc. This generation is more into personalised and modern workouts rather than spending
time on treadmills and stair climbers. However, high cost of membership is one of the
setback faced by Y Gen in Malaysia. This does not mean that this segment of customer have
abandoned the gymnasiums, specialised classes, group workouts etc., are some of their
alternatives to stay fit (JADEJA, 2018).

Fitness and working out in agym is gaining popularity in Malaysia. One of the popular
Fitness Centres in Malaysia, Fitness first, is taking initiatives to bring modern equipment’s to
their gym so that most of customer will prefer their fitness centre. In addition to its consumer
behaviour involves much more than the concept of buying the tangible product but also in the
way firm uses a service, an activity, experience and ever their time. Moreover, the perception
of the customer based on the following factors as are acquisition behaviour, usage and
disposition. The attractive features of this gym as it provides one on training, free style group
training, signature classes, strength training, cardio exercise, group classes. This study is
about to get the access of perception of customers when selecting a gym. In this, it can be
said that consumer behaviour is influenced by consumer attitudes in terms of sports and
athletic way of life.
Thus, it can be said that the health and fitness has been one of the fastest growing industries
over the last two decades. The attractive features of this fitness centre are occasional group
exercise classes, club consulting, personal trainers during its day time operation. Thus, rates
are dependent on the type of package they choose. In this term, it can be said that a well
equipped gym is the one that has a wide range of equipment that are regularly maintained.
1.3 Problem statement
There are many problems related to the gyms and fitness studios. For example, around 61.3%
of gym users paid their membership fee but continued it only for 3 months, while 16.1%
continued for 4- 6 months,and 13.7% continued for more than 12 months (Kumar, 2019). The
reason for this is because the customers get little support from the general trainers, or the
customers themselves lack motivation to continue exercising. Moreover, there is no
commitment from customers to continue utilizing the gym facilities. As such, this study will
address these issueby looking at the preference of Generation Y when selecting an
appropriate gymnasium in Malaysia.
1.4 Research Question
The research question relating to this study is as follows:
What are the factors that would be considered by Malaysian Generation Y when selecting a
gymnasium?
1.5 Research Objectives
The objectives of this research are indicated below:
 To analyse the relationship between the determinants of selecting a gymnasium and
the satisfaction of Gen-Y customers towards gymnasiums in Malaysia.
 To ascertain the impact of Gen-Y customers’ satisfaction towards gymnasium and
their intention to continue their gymnasium subscription.

 To ascertain whether gender differences moderate the relationship between the
determinants of selecting a gym, customers’ perception towards the gym and their
intention to continue using the services available in the gym.
1.6 Significance of study
This study will be beneficial to Malaysians, especially the Gen-Y, as they can choose their
gym without getting confused. This research will help society understand the determinants of
customer purchase intention and identify areas that need improvement. Moreover, this study
mainly focusses on the perspective of customers towards the selection of gym. The
determinants of selecting a gym include quality, cost, products services, social influences,
equipment’s and customer relations (Miranda, Tavares and Queiró, 2018).
1.7 Research structure
Chapter one provides the general information regarding gymnasium, exercising, what is the
perception of Gen Y towards healthy and fit lifestyle. It also provides information relating to
fitness and gymnasium usage in the Malaysian context, and also indicates the research
question and objectives, and the significance of the study. It also consists of a problem
statement which explains the main issues affecting the selection of an appropriate gym
among the Gen-Y consumers. The research objectives and questions are also mentioned in
this chapter.
Chapter two, on the other hand, gives attention to past studies carried out in this area of
study. These past studies cover a variety of discussions relating to fitness and the use of
gymnasium in the global environment. They also relate to the determinants of selecting an
appropriate gym, leading to consumer satisfaction and their intention to continue using the
gym. Subsequently, the hypothesis will be formulated based on this literature review
discussion. A suitable theory is also formulated and it is linked to the research framework .
The research gap is also identified and discussed in this chapter.
The subsequent chapter on the Research Methods will cover all relevant areas relating to the
designing of this research. Some of the important areas that will be covered in this chapter
include discussion relating to the research strategy and approach, the methods used in
collecting the data, identifying the appropriate sampling method and research design,
indicating the measurement of construct and the hypothesis to be tested, abiding with
research ethics, and also indicating the tests of reliability and validity.
The next chapter presents information relating to the research analysis, covering both
graphical and statistical analysis. The mean and standard deviation values will be used to
support the graphical analysis. When carrying out the statistical analysis, the Structural
Equation Modelling (SEM) technique of Partial Least Squares (PLS) will be used in the data
analysis section by taking into account the data that was collected from the questionnaire
survey that was conducted. The results from this statistical analysis will be used to support
the research objectives and also the hypothesis that was formulate. This way, it will be clear
that the aims of the research are met.

Chapter five, which is the final chapter, provides a concluding remark in order to summarize
the entire research. In this chapter, the limitations encountered during the entire research
process will also be discussed. The findings of the research will be used to formulate
recommendations to decision makers in this sector. Recommendations will also be directed
to Gen-Y consumers to enable them to make certain decisions when selecting an appropriate
gym.
Chapter 2
Literature Review
2.1 Background Information
Literature review is the thorough analysis of the current and existing knowledge available
along with substantial findings. This chapter provides an overview of past studies carried out
in this area of research. The literature review discussion will include the determinants of
selecting a product or service (ie. gymnasium), leading to customer satisfaction, which then
leads to the intention to continue using the product or service. An appropriate theory is
identified and linked to the research framework. Subsequently, the research gap is also
highlighted.

2.2 Research Framework and supporting theory
The research framework relating to this research is indicated in Figure 2.1 below. The
determinants of selecting a gym are identified as Price, Quality, Program and Services
offered, Social Influence and Customer Relations. These determinants are linked to customer
satisfaction, and subsequently the customer’s intention to continue using the product or
service, which in this case is the gymnasium. The theoretical framework of research project
involves concepts, definitions, references which are relevant to scholarly articles, available
theory used for the present study. This section will involve the deep understanding of the
research problems and objectives which will help in finding out meaningful findings.
Figure 2.1 Research Framework linking the determinants of selecting a gym with customer
Satisfaction and the intention of customers to continue using the gym.
Source: Created by the author
An appropriate theory that can be linked to the research framework is consumer behaviour
theory. The theory is presented in the following diagram.
Theory of buyer behaviour indicates that consumers intention to purchase is influenced by
the product (ie. Customer Relations), brand (ie. relating to Quality of the gym) and the social