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

stimuli, which includes the influence of family and other peers (ie. Social Influence). Such
stimuli are internalized by the consumer before the decision process takes place.
This theory also explains that Purchase Behaviour Satisfaction (ie. Customer Satisfaction in
using the gym) provides a feedback mechanism based on post-purchase reflections, leading
to subsequent decisions (ie. Intention to continue using the gym). Source:
https://www.academia.edu/24464663/CONSUMER_BEHAVIOUR_THEORIES_AND_MODELS
Price (ie. Gym membership) and Product (ie. Program and Services offered at the gym, and
also the Customer Relations) are also important determinants of a purchase decision, as
support by the 4 P’s of Marketing theory.Literature review relating to this area of research is
subsequently discussed in the following section.
2.3 Review of past studies
Discuss these areas individually. You don’t necessarily have to relate these variables to
fitness or usage of gym. You can look at them in general and relate to articles that link price
of goods with customer satisfaction and intention to continue using.
2.3.1 Price
According to Reed, (2017), price is one of the factor that affects the selection of gym for
Malaysians. High cost of gym membership affects the decision of people in joining gym.
However, John Howard and Jagdish (2019) proposes theory of buyer in which it states that
buying behaviour of consumers depends upon rationality of the people. The theory explains
the brand selection behaviour of consumers. The theory proposes that buyer is within the
bounded rationality which means that a consumer is within the boundary of its cognitive and
learning abilities to select the brand of good/service it wants.
2.3.2 Quality
In the view of Yap and Ong (2017), customers prefers the quality services from the fitness
clubs that includes cleanliness, modern equipments, qualified trainers, additional services
such as steam bath, massage facilities etc. However, Stein and Ramaseshan (2016) says that
improvement in the quality increases the price of the gym services which sometime
demotivate people in joining the gym.
2.3.3 Program and Services offered (Product related)
According to Keogh, Li and Gao (2019)Medical monitoring, in-body screenings, personal
training, gym salt water pools, nutritional counselling, sporting activities etc., are some of the
main services offered by the gyms in Malaysia upon which the decisions of customer's
depends.
2.3.4 Customer relations
As per Albertsen and et.al., (2018) customer relations is the procedure through which
organisations establishes and maintains their relationships with the customers. How fitness

club engage its customers and what customer support services it offers to its customer's is
one of the important determinant that influences the selection of a gym.
2.4 Research Gap
The main problem in this area is as lack of studies in general about the perception of
customer towards the gym. However, there are various studies that helped to show the
distinctive result about the perception of the customer towards gym selection. From this it is
summarized that the younger generation tend to have stronger purchase intention towards
gym that uses better and effective equipment (Lin, 2018. )
On the whole, others have done studies on the determinants that have influence on customers
in the selection of a fitness club. They have not provided any recommendation through which
people can be encouraged to go regularly to gym.
2.5 Concluding remark
On the whole, this chapter has succeeded in providing detailed information from past
researchers who have linked the determinants of purchasing a product or service in general,
with customer satisfaction and their intention to continue using the product.
Chapter 3
Methodology
3.1 Background
This chapter outlines the methodologies that are used for carrying out the primary research which
includes designing, sampling, data collection, data analysis etc. Below is the brief discussion of
each methodologies.
3.2 Research Approach
This refers to the method which will be used for accomplishing the research. There are different
kinds of research approaches such as deductive and inductive approach. Deductive approach
emphasis generally on causality and begin with the hypothesis, this is being conducted in order
to test that either the theory is hypothesis and supported by the specific evidence. Inductive
approach is begun with the specific observations and the real examples of events, trends and the
social process. In this researcher has being identified the patterns and trends to set of data. For
the present study, deductive research approach will be used as it complements the quantitative
method of data collection (Kumar, 2019) as it is appropriate for doing the research on the
selection of gymnasium.
3.3 Research Strategy

There are two kinds of research strategy namely, qualitative and quantitative strategies.
Quantitative research is concerned with gathering numerical data while qualitative research is
concerned with gathering non numerical data (Flaherty, Honeycutt and Powers, 2015).
Qualitative research is the method of doing the inquiry to develop the understanding on the
human and social sciences as it find the way how people think as well as feel, it is considered
that this research is being done and suitable for the exploratory research. Quantitative research is
the method used to generate the numerical data as well as hard facts by the way of employing
statistical, logical and the mathematical technique. In present study, quantitative research
strategy will be used for finding the perception of customers regarding the services offered by
gyms and their intention of continuing the gym for longer duration (JADEJA, 2018).
3.4 Data collection
There are two techniques through which data could be collected namely, primary and secondary
data. As the primary data is being considered as the first hand data and it is generated by the
person who is doing the research that includes survey, interview or any experiment, it is being
collected for the purpose of research in mind while the secondary data is being gathered from the
study, survey and the experiment that is being done earlier for other research it means it is being
collected by someone else earlier. For the present research project report, the researcher will use
both secondary method in the form of reviewing past studies and primary method by preparing
questionnaire and collecting data first handed, directly from the respondents who are the
customers of gyms in Malaysia (Albertsen and et.al., 2018).
3.5 Sampling Method
It means to select a minimum sample size for conducting a primary research. There are two types
of sampling known as probability sampling and non-probability sampling, probability sampling
uses the technique of random sampling and it creates the sample while the non probabilkity
sampling uses the non- random technique like doing the researcher judgement and convenience
sampling. Types of probability sampling are simple random sampling, stratified random
sampling, systematic sampling, cluster random sampling and the multistage random sampling
Fore present study, non-probability sampling and purposive sampling will be used. This is
because those elements selected from the population will be based on individuals who have used
or are currently using the gym in Malaysia as the non probability sampling is having the major
advantage it is cost and time effectively and easy to use and can be used when the conducting of
probability sampling is difficult.
3.6 Research Design and Measurement of constructs

Research design can be defined as the manner in which the entire research would be carried out.
In simpler terms, it means how the research questions would handled and answered (Jackson,
2015).
The measurement of construct is indicated below.
Construct
Question
M
a
i
n
S
o
u
r
c
e
Price Part 2 (a) P1 6) I am happy with the monthly membership fee
that I am currently paying at my gym
(Sujata et al
2015)]
P2 7) I am willing to pay high membership fee for a
gym that has a good reputation
P3 8) I compare gym memberships fees before
selecting the most suitable gym

Quality Part 2 (b) Q1 9) Quality of gym equipment’s is crucial for
selecting a gym
(Tran 2017)]
Q2 10) Quality of the gym attracts me to work out
better?
Q3 11) Quality will determine the continuity of gym
membership
Program and
Services Offered
Part 2 I PS1 12) Services offered in the gym will determine the
satisfaction of gym users.
(Tran 2017)]
PS2 13) This gym offers good facilities which is good
value for money
PS3 14) The gym takes prompt actions when handling
customer complaints regarding the services offered.
Customer
Satisfaction
Part 2 (d) CS1 15) The more satisfied users are with the gym, the
more frequent they will be visiting the gym
(Tran 2017)]
CS2 16) Satisfied users will definitely continue the gym
subscription in the future.
CS3 17) Overall, I am happy with my gym
Customer
Relation
Part 2 I CR1 18) Staff is always friendly when they are with
customers
(Tran 2017)]
CR2 19) The Staff are always helpful when assisting at
the gym
CR3 20) The staffs does regular checks on users to
ensure training is going on smoothly at the gym
Intention to
continue
subscription of
gym
Part 3 CU1 21) I would definitely continue my membership in
this gym
(Tran 2017)]
CU2 22) If I am to choose a gym to continue my
membership, I would continue at a gym whereby
the quality is good and price is affordable I would
continue choosing a gym that takes care of their
customers well
CU3 23) I would choose a gym that takes care of their
customers well
Table 3.1 Measurement of constructs
Research is being conducted regarding the preferences of selecting the gymnasium by the
generation y is that they are satisfied with the price they are giving to avail these services kind as
monthly membership as even they are willing to pay high on the membership fee to the gym that
is having the high membership fee, simultaneously they are also concerned for the quality and
this will identify their continuation of gym. Program and service offered by the gym determines
the satisfaction level of users as overall they are happy with the gym ands it is also asked that

they want to continue the gym for these also they want to continue to the gym that take care of
their custiomers well (Jackson, 2015).
3.7 Research hypotheses
The hypothesis is a tentative statement which is concerned with the relationship of dependent
and independent variables. The list of hypothesis that is related to the research objectives is
indicated below.
Hypothesis
H1 Price positively influences Customer Satisfaction.
H2 Quality positively influences Customer Satisfaction.
H3 Program and Services offered positively influences Customer Satisfaction.
H4 Customer Relations positively influences Customer Satisfaction.
H5 Customer Satisfaction positively influences the intention to continue using gym
services
3.8 Data analysis
Data collected through questionnaire will be analysed graphically with the help of charts and
through statically methods such as PLS-SEM analysis which is a Partial Least Square Structural
Equation Modelling for assessing reliability and viability of constructs (Quinlan and et.al.,
2019).
3.9 Research ethics
Ethics are the beliefs that differentiates between acceptable and non acceptable behaviour. Ethics
are important for promoting aims of research, it promotes values which is necessary for team
work and ethics helps in gaining public support (Lacey and et.al., 2015). Honesty, integrity, due
diligence, confidentiality are some ethical considerations that will be taken care of while
conducting research.
3.10 Limitation of research
As it is sure that the research is having some limitations and it is considered as normal at the
same it is critically important that strive to minimise the range in scope of limitations in whole
process of research this limitations may relate to these aspects that are formulation of research
and aims, implementation of data collection method, lack in the previous studies in the area of
research. Time was the constraint which limited the scope of research. This was the reason that
only 100 respondents were taken as sample size (Walliman, 2017).

3.11 Reliability and validity
Reliability can be as the extent to which the same result can be acquired using the similar
instruments more than one time (Mackey and Gass, 2015). R-square, composite reliability are
techniques which could be used. Validity refers to the extent to which scientific research
methods have been applied in process of creating research findings. Discriminant validity is one
of validity test which could be used by researcher. Reliability implies about the consistency at
the same reliability and the validity can be used interchangeably as it si the measure of the
stability and the consistency test scores as in the research of preference in the selection of gym it
is essential to the reliability of the research and also validity is equally important (Kumar, 2019).
3.12 Concluding remark
It can be concluded that research methodology is the systematic procedure of conducting
a research. Application of different research methodologies helps in providing a proper structure
to the research study which the research paper more meaningful and presentable.
CHAPTER 4
RESEARCH ANALYSIS
4.1 Introduction
After collecting the data via questionnaire, analysis and explanation of the data is done on this
chapter to further understand the topic discussed.
4.2 Demographic Profile
The initial section of questionnaire comprises of a series of closed-ended questions, targeted at
identifying the overall respondents' demographic characteristics, such as gender, age, job status,
frequency of going to the gym, and also how far are they willing to travel to go to the gym.Table
4.1 provides an overview of the demographic profile based on 100 respondents.
Item Subgroup Percentage
Gender Male 67%
Female 33%
Age 22 and Below 22%
23-30 64%
31-39 12%
40 and above 2%
Job Status Unemployed 26%
Employed 70%
Retired 0%

In-between Jobs 4%
How far are you willing to travel to hit
the gym? ( in Kilometres)
Within 5 km 70%
Between 6 to 10 km 26%
Between 11 to 15 km 4%
16 km or more 0%
Table 4.1 Demographic Profile of respondents
4.3 Graphical Analysis
This section presents the graphical investigation of the factors introduced in the exploration
structure of this study, mainly price, quality, program and services offered, customer relations,
customer satisfaction and intention to continue subscription of the gym. The five-point Likert
scales reactions were caught graphically and displayed under different sub-headings, as
demonstrated in the ensuing segments. The responses, ranging from strongly disagree (1),
disagree (2), neutral – neither agree nor disagree (3), agree (4) to strongly agree (5), and is being
used in the next session for discussion.
4.3.1 Perception of the gym users on the price paid for gym
Figure 4.1shows the perception of the gym users on the price paid for gymand Table 4.2displays
the mean scores and standard deviation.

Figure 4.1 Perception of the gym users on the price paid for gym
Indicato
r
Measure Mean
Value
Standard
Deviation
P 1 I am happy with the monthly membership fee
that I am currently paying at my gym
3.020 0.959
P 2 I am willing to pay high membership fee for a
gym that has a good reputation
2.740 1.016
P 3 I compare gym memberships fees before
selecting the most suitable gym
4.050 0.931
Table 1.2 Mean values and Standard deviation for the Perception of the gym users on the price
paid for gym.
As shown in Figure 4.1 and Table 4.2, the results indicate not all agree on the price factor when
it comes to paying for gym subscription. As we can see from the table above, those who disagree
on paying a high membership fee for gym stands at 2.740 mean value. This shows that the values
are skewed towards disagreement. For those who are happy with the monthly membership fees
paid are skewed towards an average mean reading value at 3.020, which is means the
respondents are neutral about it.
But as we can deduce from the table above, majority of the respondents actually compare gym
prices before selecting a suitable gym. This gave a reading of 4.050 mean value.
Though, the standard deviation, which principally demonstrates the scattering of a set
information from its mean worth, ranges from 0.931 to 1.016 for Price observation showing that
that the reactions are spread out sensibly and consequently it underpins the graphical
investigation introduction.
As we can see, the reason being price does not play a huge role among the 100 respondents is
because some may select a gym closest to where they are staying or working. This comes down
to the convenience of the users when selecting a gym to go to.

4.3.2 Perception of the users on the quality of the gym
This section indicates the perception of the users regarding the quality of the gym. Their
responses are captured graphically and also in table via the mean values.
Figure 4.2 Perception of the gym users regarding the quality of the gym
Indicato
r
Measure Mean
Value
Standard
Deviation
Q1 Quality of gym equipment’s is crucial for selecting a
gym
4.240 0.814
Q2 Quality of the gym attracts me to work out better? 3.990 0.854

Q3 Quality will determine the continuity of gym
membership
4.260 0.795
Table 2.3 Mean values and Standard deviation for the perception of the gym users on the quality
of thegym.
As shown in Table 4.3, the results indicate that the majority of the respondents agree that quality
plays an important role when deciding and working out at a selected gym. The mean values of
the respondents range between 3.990 up to 4.260.
The standard deviation, which principally demonstrates the scattering of a set information from
its mean worth, ranges from 0.795 to 0.854 for thequality aspect when selecting a gym.
4.3.3 Perception of the users on the programs and services offered at the gym
The analysis for this section is also presented graphically, together with the mean values.

Figure 4.3 Perception of the gym users regarding the programs and services offered at the gym
Indicato
r
Measure Mean
Value
Standard
Deviation
PS1 Services offered in the gym will determine the
satisfaction of gym users.
4.070 0.778
PS2 This gym offers good facilities which is good
value for money
3.880 0.828
PS3 The gym takes prompt actions when handling
customer complaints regarding the services
offered.
3.680 0.968
Table 3.4Mean values and Standard deviation for the perception of the gym users on the program
and services offered by the gym.
As shown in Table 4.4, the results indicate that a large number of the respondents agree that the
programs and services offered by the gym play a significant role when it comes to choosing a
gym. As we can see from the table above, majority of the respondents agree that programs and
services play an important role when deciding and working out at a selected gym. The mean
value ranges between 3.680 up to 4.070 for the survey reply’s received related to quality
Though, the standard deviation, which principally demonstrates the scattering of a set
information from its mean worth, ranges from 0.778 to 0.968 for program and services offered
when selecting a gym.

4.3.4 Perception of the users on the customer relations at the gym
Graphical presentations on the feedback of respondents regarding customer relations at the gym
are indicated in Figure 4.4. The majority of the respondents agree or strongly agree that the staff
at the gym are friendly and helpful.As such, most of the respondents agree on the importance of
the relationship between the gym host and user when selecting the gym to subscribe to.
Figure 4.4 Perception of the gym users regarding customer relations

The mean values in table 4.5 indicate that the majority of the respondents agree that customer
relations, such as friendly and helpful staff, play an important role in ensuring satisfaction among
customers in a gym. The mean values range from 3.350 to 3.690.
Indicato
r
Measure Mean
Value
Standard
Deviation
CR1 Staff is always friendly when they are with
customers
3.690 0.771
CR2 The staff are always helpful when assisting at
the gym
3.670 0.861
CR3 The staffs does regular checks on users to ensure
training is going on smoothly at the gym
3.350 1.014
From the above table it is being concluded that this research is being conducted as the friendly
and the helpful staff plays the important role to make the customer satisfy and retain with them.
For this the survey is being done from the clients and asked that the staff is friendly and helpful
in their gymnasiums at the same it is also expected that the staff is doing the regular checks to
ensure that their training is being does in the smooth way, thus it aslo help the gyms to give these
services so that they can attract more customers (Chan and et.al., 2019) .

4.3.5 Perception of customer satisfaction
The feedback on customer satisfaction is indicated below in a graphical manner.
Figure 4.5 Satisfaction of customers when using the gym
Indicato
r
Measure Mean
Value
Standard
Deviation
CS1 The more satisfied users are with the gym, the
more frequent they will be visiting the gym
4.030 0.793
CS2 Satisfied users will definitely continue the gym
subscription in the future.
4.170 0.708
CS3 Overall, I am happy with my gym 3.590 0.801
Table 4.6 Mean values and Standard deviation on the satisfaction of customers
From figure 4.5 and Table 4.6 respectively, it can be clearly seen that the majority of the
respondents agree that satisfaction plays an important role when deciding and working out at a

selected gym. The mean values range between 3.590 up to 4.170 for the survey reply received
related to customer satisfaction. The standard deviation ranges from 0.708 to 0.801.
From the above table, in this the research is conducted from the customers who are going to gym
and what make them to go and visit the gym in the enthusiastic way and they have replied that
the users that are satisfied with the gym will visit more frequent to the gym and they will
continue the gym subscription in the future if they were satisfied in the gym and it is also asked
in the survey that how much they are happy in going and visiting in the gym (Stein and
Ramaseshan, 2016).
4.3.6Intention to continue subscribing towards the gym
The feedback on the respondents regarding their intention to continue subscribing towards the
gym is indicated in Figure 4.6.

Figure 4.6: Customer’s intention to continue subscribing towards the gym
Indicato
r
Measure Mean
Value
Standard
Deviation
CU1 I would definitely continue my membership in
this gym
3.540 0.727
CU2 If I am to choose a gym to continue my
membership, I would continue at a gym whereby
the quality is good and price is affordable.
4.240 0.750
CU3 I would choose a gym that takes care of their
customers well
4.110 0.871
Table 4. 7 Mean values and standard deviations of customer relations
The results from Figure 4.6 indicate that customers of the gym largely agree that they will
continue using the gym as long as the quality is good, price is reasonable and customers are well
taken care of. These seem to be factors that make a difference to the customers. The mean values
in Table 4.7 support the fact that consumers have the intention to continue with their subscription
at the gym, as long as they experience value for money (eg. quality gym at an affordable price)
and good care at the gym. The mean values that are higher than 3.0 indicate that consumers agree
with the statements.
4.4 Statistical analysis: PLS Algorithm
This section looks at the Structural Equation Modeling (SEM) procedure of Partial Least Squares
(PLS) analysis, known as SEM-PLS. As mentioned by Hair et al. (2011), PLS-SEM is used
when the examination is an exploratory one.
As indicated by Anderson and Gerbing (1988), this section can be broken down to Measurement
Model Analysis (Outer Model) and Structural Model Analysis (Inner Model).The outer model
indicates the connections among the indicators and the mediating variables. On the other hand,
the inner modelindicates the connections among the internal factors that make up the model. This
following section investigates the appraisal and assessment of the basic model

All things considered,term structural equation model (SEM) ) is utilized to allude to both the
basic and estimation model, consolidated. The results of the outer model are shown in the
subsequent sections.
The following tests are carried out under this section.
 Reliability tests, which include Loading, R-square, and Composite Reliability
 The validity tests, which include AVE and Discriminant Validity.
4.4.1 Outer model: Test for reliability of individual items: Factor Loading
The loadings indicate the relationship between the measured score and the latent score (Wong
2013). To full fill the appropriate level of reliability for each indicator, the loading must be
higher than 0.7 (Hair et al. 2007), which is the cut-off point. However, it is known that if the
loading is less than 0.7, then the AVE value must be verified. If the AVE is greater or equal to
0.5, then the indicator may not be removed. Table 4.8 indicates the Loading values. All loading
values are maintained, although some of them are below the threshold of 0.7. This is because the
AVE values are appropriate. Table 4.6indicates the loading of each indicator used in this
research.
Variables Indicators Outer Loading
Price P1 0.658*
P2 0.524*
P3 0.739
Quality Q1 0.797
Q2 0.880
Q3 0.680*
Program and Services Offered PS1 0.627*
PS2 0.853
PS3 0.697*
Customer Satisfaction CS1 0.786
CS2 0.888
CS3 0.804
Customer Relation CR1 0.847
CR2 0.924
CR3 0.788

Intention to continue
subscription of gym used
CU1 0.567*
CU2 0.790
CU3 0.804
Note: * indicates loadings that are below 0.7; however, they are maintained as the AVE is of
acceptable range (greater than 0.5)
Table 4.6: Loading of each Indicat
4.4.2 Construct Reliability and Validity
A construct’sreliability and validity indicates how efficiently a test is used in fulfilling its claims.
The reliability and validity tests used in this section include Cronbach’s alpha, Composite
Reliability and also Average Variance Extracted (AVE). The threshhold for both Cronbach’s
alpha and Composite Reliability is 0.7 or greater, respectively; while the minimum AVE value is
indicated as 0.5. Table 4.7 below indicates the respective values, with AVE fulfilling the criteria.
Variables Cronbach’s alpha Composite Reliability Average Variance
Extracted (AVE)
Price 0.334 0.679 0.501
Quality 0.705 0.831 0.624
Program & Services Offered 0.562 0.773 0.535
Customer Satisfaction 0.585 0.786 0.561
Customer Relation 0.813 0.890 0.731
Intention to continue
subscription of gym 0.549 0.768 0.531
Table 4.7: Construct Reliability and Validity for each Indicator
As such, the indicators in Table 4.7 have AVE values which are all above the threshold value of
0.5. Therefore, the validity of the indicators used in this study is confirmed. Although some of
the values in the Cronbach’s alpha and composite reliability sections are below 0.7, they are
acceptable since the AVE value is within the acceptable range. On the whole, AVE is found to
be a better measure of validity (Hair et al. 2011).
4.4.3 Discriminant Validity
The Discriminant Validity indicates the extent to which the constructs within the framework are
distinct from each other. The Fornell and Larcker(1981) method is used for testing discriminant
validity. The bolded value in Table 4.8 below indicates the square root of each construct’s
average variance extracted (AVE). As long as the results obtained are below 0.85, as achieved in

this study, this indicates the absence of overlapping between all the constructs and therefore they
not found to be measuring the same thing. As such, in situations like this, discriminant validity
can be claimed.
Customer
Relation Customer
Satisfactio
n
Intention to
continue
subscription
of gym used
Price Program
and
Services
Offered
Quality
Customer
Relation 0.855
Customer
Satisfaction 0.388 0.749
Intention to
continue
subscription
of gym used
0.363 0.547 0.728
Price 0.332 0.378 0.357 0.646
Program and
Services
Offered
0.505 0.527 0.431 0.466 0.732
Quality 0.398 0.584 0.469 0.454 0.536 0.790
Table 4.8 Discriminant Validity
Discriminant validity test is being done by the discussions and evaluating the test validity as it is
the important technique in doing and assessing new tests and the successful evaluation of this is
the validity that shows the concept of the test and it is highly correlated from the other test that is
being designed to measure different concept of research. In the above table is being assess the
importance of customer relationship in going the gym at the same measure the satisfaction level
of customers. This is also analysed the price factor in going the gym as it is worth full to pay the
particular amount for the services they are getting ftom the gym and the quality of service is also
considered in this (Quinlan and et.al., 2019)
4.4.4 Structural Model Analysis– Inner Model Testing
The model or framework in this section indicates the correlations between the independent,
mediating and dependent variables.The R square and the path coefficients can be classified under
the inner model category as indicated by Fornell and Lacker (1981). In this section, the structural

model of this study and also the R-squared values arehighlighted, as shown in Figure 4.7 and
Table 4.9.
Figure 4.7 PLS Structural Model of this research
The relationship between the four main independent variables, the mediating variable, and the
dependent variable, which is intention to continue using the gym, are all shown in Figure 4.7.
The coefficient of determination, R-square, is used to assess the structural model (Hair et al.
2017). R2 shows the extent to which the independent variables describe the variance of the
mediating variable, and also to what extent the mediating variable describes the variance of the
independent variable. It can be said that Rsquarevalues of 0.50 or 0.25 for the latent variables
can bedefined as moderate or weak (Hair et al. 2017).
In this research, the Rsquare value indicates that41.4% of the variance in customer satisfaction is
explained by the four determinants of selecting a gym. Moreover, the R square value of 29.9% of
the variance in intention to continue gym subscription is explained by customer satisfaction.
Both of these tend to indicate a relatively weak relationship.
Matrix R Square R Square Adjusted
Customer Satisfaction 0.414 0.389

Intention to continue
subscription of gym used
0.299 0.292
Table 4.9 R-square values
The subsequent section measures the significance of the structural path measured by the p-values
and t –statistic. The Bootstrapping Analysis via the PLS is carried out to test the significance of
the independent and dependent variables within the conceptual framework of this study. Table
4.10 presents the results of the bootstrapping analysis, comprising path coefficient, t-statistics
and p-values, and also the outcome of the hypotheses in this study.
It is clear that both Quality and Program and Services are found to be significant at 1 %, which
means they significantly influence customer satisfaction. On the other hand, price and customer
relations don’t seem to significantly influence customer satisfaction. This happens to be the
scenario among Malaysian Gen-Y who have used the gym before. Moreover, customer
satisfaction is also found to significantly influence the intention of Gen-Y to continue using the
gym.
Objective Hypothesis Hypothesis
Outcome
Beta (Path
coefficient)
T-
Statistics
P-
value
Decision
Objective 1:
To analyse
the
relationship
between the
determinants
of selecting a
gymnasium
and the
satisfaction
of customers
towards
gymnasiums
in Malaysia
H1 Price
positively
influences
Customer
Satisfaction.
0.056 0.550 0.582 Not
Supported
H2 Quality
positively
influences
Customer
Satisfaction.
0.391 3.231 0.001* Supported
H3 Program
&Services
offered
positively
influences
Customer
Satisfaction.
0.246 2.137 0.033* Supported
H4 Customer
Relations
positively
influences
Customer
Satisfaction.
0.090 0.554 0.579 Not
supported
Objective 2: H5 Customer 0.547 5.568 0.000* Supported

To ascertain
the impact of
Gen-Y
customers’
perception
towards
gymnasium
and their
intention to
continue
using the
service.
Satisfaction
positively
influences the
intention to
continue using
gym services
Note: Path significance: * P <0.01 Significant at 1% (probability error of 1%)
Table 4.10 Outcome of the bootstrapping analysis.
From the above table they have made the objectives to analyse about the customer relationship in
between the determinants of selecting the gymnasium as well as the satisfaction of the customers
towards the gym is that they are more supported towards the quality and kind of service offered
by the gym that these positively influence the customers as the price and the customer
relationship does not matter to them and in the second objective they ascertain the impact of
generation y as the perception of customers in this the customer satisfaction is very important
that positively influence in going to the gym regularly(Albertsen, L and et.al., 2018,).
Variance Inflation Factors (VIF) – A test for Multicollinearity
TheVariance Inflation Factors (VIF) is used to verify the multicollinearity within the variables of
the structural model. The VIF values must be below 5. Only then can it be said that there is no
multicollinearity within the variables in the framework of this study. The VIF results for this
study are shown in Table 4.11. All values are below 5.
Variables Customer Satisfaction
Customer Relation 1.395
Price 1.391
Program and Services Offered 1.743
Quality 1.549
Table 4.11 Inner VIF
In the table 4.11 all the values are below 5 and it interpret ates that none of the predictor variable
in this regression model is being linearly predicted from the other ones (Yap and Ong, 2017)
4.4.5 Multi-group analysis based on gender perspective

This section aims at analysing the difference in gender perspective with regards to the variables
in the conceptual framework of this study. As such, this section aims to test whether male and
female have similar or differing perception on the relationship between the dependent and
independent variables. In order to evaluate the disparities between male and female respondents,
the outcomes of the PLS-MGA testing is presented in Table 4.12.
This section fulfils the third objective, which is to ascertain whether gender differences moderate
the relationship between the determinants of selecting a gym, customers’ satisfaction towards the
gym and their intention to continue subscribing to the gym.
P-value of Male
and Female
Overall Path
Coefficient
(Male & Female)
Overall p-value
(Male and Female)
Customer
RelationCustomer
Satisfaction
Male:
Female:
0.545
0.704
0.026 0.472
Customer
Satisfaction
Intention to continue
subscription of gym
used
Male:
Female:
0.000
0.000
0.142 0.816
PriceCustomer
Satisfaction
Male:
Female:
0.805
0.103
0.284 0.847
Program and services
offered  Customer
Satisfaction
Male:
Female:
0.077
0.298
0.044 0.417
Quality Customer
Satisfaction
Male:
Female:
0.033
0.263
0.164 0.271
Table 4.16: Structural Model Estimates for differences in Males and Females perception using
PLS-MGA

It is observed from Table 4.16 that gender does not significantly moderate the association
between all the latent variables. This is because none of the overall p-values are significant. As
such, the opinion of male and female respondents is the same. In the above table the p value in
between the male and female is .545 and .705 as the value less than .005 reject the null
hypothesis (Jackson, 20150. And also conducted the research for the intention to continue the
gym to male and female separately.
CHAPTER 5
CONCLUSION & RECOMMENDATIONS
5.1 Overall conclusion
5.2 Limitations encountered
 Relatively small sample size due to time constraint
 Unable to carry out qualitative research, such as interviews and focus group discussions
 Male respondents (67%) are much higher than female respondents (33%). As such,
gender biasness exists in the responses.
5.3 Overall recommendations
In these they have done the findings about the quality of the gym that significantly influence the
customer satisfaction and it is being recommended to maintain the equipments of the gym and
must be properly maintained and start the gyms that will be nearer to the housing areas. Different
programmes and the service significantly influence about the customer satisfaction so the gym

need to invest in the good instructors for their gym and come up with the different and unique
exercise programs like zumba, dance steps. So for the gymnasiums it is important to offer the
good services and the facilities to attract more customers and also satisfied them for what they
are paying (Flaherty, Honeycutt and Powers, 2015).
5.3 Recommendations to future researchers
For the future researchers it is important to conduct the research by collecting the data from the
many gyms that provides the different kinds of services at the same they also need to conduct the
survey on many people and they have make the different groups according to the area, class, age
and many other factors so that they can conduct the research in the closer way and can be done
more accurately manner, at the same it is equally important for the researcher to collect the
information by going personally in the different gyms and point out all the facts that is important
in doing the research so that they can make the research more validate and can conclude the
positive and real facts. (Kumar, 2019).
CONCLUSION
From the above study it is being recognised that the research is being conducted on the
basis of preference that the generation Y is having for the gymnasium as per their opinion they
become more effective in performing their daily functions without having the fatigue at the same
they want to live healthy life. In Malaysia it is being said that health and fitness is the fastest
growing industries, in this the research is being conducted, from this research it is being find out
the problems that is being associated with the gyms and fitness. Questions is being frame for
making the research meaningful at the same the survey is being conducted to make the study
significant. Research work is being done and the various theory is being framed to find out the
detailed information from the past research. Research strategy is being done by doing the
quantitative research, data collection is done and take the sampling method and thus it designs
the research. Research hypothesis is also done as the tentative statement is being taken that is
concerned with the dependent as well as independent variables at the same there is having the
limitations also in conducting the research so it may have the effect on reliability. This report
also study about the problems that the customers facing in going to gym, in the last the
recommendations is also given for the future researchers.

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