Customer Perception and Profitability Analysis

The provided document is an attempt to solve an assignment related to customer perception and its impact on a fitness studio's profitability. The student has conducted research on various studies and articles that discuss how different factors such as innovative equipment, trainer qualifications, pricing, and social influence can affect customer perception and ultimately the profitability of a fitness studio. The student has also prepared a questionnaire to gather data from potential customers to further understand their perceptions and preferences. However, it seems that the assignment is not fully completed as there are no specific results or conclusions drawn from the research conducted.

CHARACTERISTICS OF CUSTOMER
PREFERENCE TOWARDS GYM’S
SELECTION (BUSINESS OR
MANAGEMENT)

TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................1
INTRODUCTION...........................................................................................................................2
Research background..............................................................................................................2
Problem statement..................................................................................................................3
Research questions.................................................................................................................3
Research objectives................................................................................................................3
Significance of study..............................................................................................................3
Literature review....................................................................................................................4
Research conceptual framework.............................................................................................5
Research methodology...........................................................................................................6
Research design- ....................................................................................................................6
Sample size- ...........................................................................................................................6
Research ethics- .....................................................................................................................7
Budget and time scale ............................................................................................................7
Budget- ..................................................................................................................................7
Time scale & Gantt chart........................................................................................................7
REFERENCES................................................................................................................................9
Appendix........................................................................................................................................10

ABSTRACT
The main purpose of this research report is to study the characteristics of customer
preferences towards gym selections. The main problem about the research is that very less study
has been conducted in terms of customer perception towards gym selection. The present report is
about the activities of Fitness club, Malaysia. In this report, major emphasize has to be given on
perception of customer in terms to products and services as are free style group training,
signature classes, strength training, cardio exercise, group classes towards selection of Gym.
With help of understand the view of customers, quoted firm is able to enhance its profitability.
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INTRODUCTION
Topic- To study the characteristics of customer preferences towards gym selections. A study on
fitness first, Malaysia.
Research background
Customer preferences can be refereed with term as expectation, dislikes, likes, motivation
and inclination that drives customer purchasing decision (Sivakumar and Dong, 2018). It has
direct impact on profitability of the firm. Fitness first, Malaysia 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 at the of selecting gym.
In this, it can be said that consumer behaviour is influenced by consumer attitudes in terms of
sports and athletic way of life.
In addition to it, knowing the customers and being able to provide what satisfies them is
one of the most critical issue for today's marketing programme. There are number of the factors
that influence the customer towards gym selection. It will be inclusive of following terms as are
cost, equipment, extra features, accessibility, cleanliness, maintenance, Hours of operation and
personal training options and membership privileges (Divyaranjani, 2018). To be effective
fitness centre it is essential to have the strong relationship between all service quality and
positive words of mouth communication so that customer can able to select the one proper gym.
The present report is based on the services of Fitness First in Malaysia. This assignment
will look upon characteristics of customer preferences towards gym selections. This gym is sleek
and simple gym where the member uses their security pass card at the time of entering into gym.
Herein, it opens for 24 hours a day and 365 days a year. Thus, it can be said that the health and
fitness has been the 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
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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 well equipped gym is the one whose have wide range of
equipment’s and that is regularly maintained.
Problem statement
The main problem statement in this area is as lack of studies about the perception of
customer towards the gym. However, there are various studies that helps to show the distinctive
result about the perception of the customer towards gym selection. From this it is summarized
that younger generation tends to have stronger purchase intention towards gym that uses better
and effective equipment’s (How Alternative Revenue Streams Can Help Your Fitness Studio’s
Bottom Lin, 2018. ). This research is about the likes and dislikes of customer that reflects the
choice and selection of the gym. It includes number of factors as price, facilities, brand image,
online review, quality and relation with customers. Thus, study will show EWOM that aids to
have great impact on customer preferences.
Research questions
Q 1. What are the factors that influence customer perspective towards section of GYM?
Research objectives
 To analyse the influence of product related factors that affects purchase intention of
customers.
 To Understand the perception of customers towards the facilities offered by Fitness first,
Malaysia.
 To determine the importance of Ewom, that influence mind-set of customers.
Significance of study
This study is based on identifying perception of customers towards selection of Gym.
From this study, researcher will get to know that what factors can might attract the buyers. With
help of it, better undersetting can be developed in terms of product related factors. This study
will be beneficial to Malaysian, as they can select their gym without getting confusion.
Furthermore, this research will help to understand that what influence customer purchase
intention and areas need to focus for having improvement. This study mainly focusses about the
perspective of customers towards selection of gym. The factor involved in this report are quality,
cost, products services, social influences, equipment’s and customer relations (Miranda, Tavares
and Queiró, 2018).
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Literature review
Theme 1: The influence of product related factors that affects purchase intention of
customers.
The perception of customer at time of selecting gym depends over quality, price, training
programs, social influence and product related services. In addition to it, Fitness first is taking
various initiatives in terms to bring Ewom technique, to have the enhancement in profitability
and productivity. In this way, it can be said that social media plays biggest role in terms to client
motivation. According to the view of Divyaranjani, (2018) states that gym is not compete
without the presence of juice bar. It is steady stream of ancillary revenue. The Fitness centre
should use the high-grade quality equipment’s so it can attract the customers. In contrary to
Yusof, Popa and Geok, (2018) states that customer perception can also be depend over customer
relations. With help of retaining old customer the firm can able to grow more revenue. The
services receive by gym to customer helps to develop their perceptions toward the gym. To know
customer preference is something that should be undertake periodically by bringing modification
in product and services. The well-furnished and attractive gym helps to grab the attention of
buyers. According to the view of Sivakumar and Dong (2018) states that high quality and
modern equipment’s attracts customer to prefer gym as their main concern is heaving health
benefits. Thus, gym provides better facilities to customer in affordable price so huge number of
customers can get attract towards it.
Theme 2: Understand the perception of customers towards the facilities offered by Fitness
first, Malaysia.
The positive perception of the customers tends to have membership retention and it is
fundamental for the profitability towards firm. However, perspective is differed as it depends
over the type of customer and services seek by them. As per the view of Yusof, Popa and Geok,
(2018) it can be stated that needs, desires, motivations, previous experience, word of mouth and
advertising in media plays greater role in terms to develop the perception of customers while
they selecting gym. Gholizadeh and et.al., (2018) Argues that satisfaction is term that also need
to be achieve, not only customer loyalty is enough. The fitness first is taking steps to provide
services as modern gym equipment’s, nutritionist, spa bath facilities. Juice and diet food bar
menu. It is essential to understand the perception of customer towards the facilities they want to
have so their retention can be possible.
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Theme 3: Determine the importance of Ewom, that influence mind-set of customers.
The Ewom stands out for Electronic word of mouth, it is technique that needs to be
carried out for having effective social media marketing. With the use of this technique, it is
possible to have recommendation and suggestions that helps to promote product effectively by
undertaking customer to customer interactions. It is kind of social influence that have significant
impact on customers. According to the view of Rodríguez-Cañamero and et.al., (2018) states that
people trust other people opinions so Ewom has large impact over their gym selection. It is one
of effective technique that helps to shape customer attitudes towards the product and influence
the sale. In contrary to Sivakumar and Dong (2018) states that the better services attracts
customer and they use to share their perspective to others, generally it influences the other buyers
and aids to change their mind sets. This term can also be refereed as social proof. The fitness first
has adopted this technique, with help of it they can put their major consideration over person to
person contacts that happen on the internet. As per the view of García-Fernández and et.al.,
(2018) states that use of Ewom they can written on the internet to be read by the multitude of
people, firm can monitor and analyse the word of mouth. It is supportable technique as it also
works as to reach potential client and they can feel about the firm’s product, brand and services.
In fitness club, customer perception is overall dependent over the services they use to receive.
Furthermore, Ewom is technique that can spread at unprecedented speed for the very lower cost
as compare to traditional marketing methods. It is the kind of viral marketing campaign that is
remarkable and aids to evoke response.
Research conceptual framework
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Hypothesis-
H0- Product prices has positive impact on preference of customers.
H1- Quality leads to have huge impact over purchase intention of customers.
H2- Fitness training program has positive impact towards selection of Gym.
H3- Social influence changes customer perceptive positively.
H4- Customer relation has positive impact on purchase intention.
Research methodology
Research design-
This is one of the effective measurement that help to conduct the depth information about the
research. There are various method of research design as are descriptive, qualitative and
quantitative and Quasi experiments. In order to carry out the use of present the researcher will
have the use of descriptive techniques so that better conclusion can be drawn.
Sample size-
With help of taking the sorting of the relevance the all things can be determine in the effective
mode. In this, research will have the use of random sample techniques with the sample size of
20. This is effective way in order to analyse the information effectively.
Data collection- It is process of gathering information in systematic manner. Thus, it is divided
into types as primary and secondary method. The primary method depends on first-hand
information and it can be done with help of conducting questionnaire. On the other hand,
secondary information can be gathered with books, journal, online articles etc. Herein, researcher
will carry out the both techniques. In order to take the analysis, the sample random technique
will be used. In this, sample size of 30 respondents as customer will be taken.
Operational and measurement of variables- In this dependent variable is as gym selection and
it is over various independent variables as are price, quality, fitness training program, social
influence and customer relation etc.
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Reliability and validity- In this, the term reliability means consistency of test scores. On the
other hand, validity simply means that test and instrument is accurately measuring what it is
supposed to do. In order to make the reserve effective. This both is need to be maintained.
Data analytical method- It is technique that helps to interprets the data correctly. This is
majorly focussing over the aim of discovering the useful information. It is of mainly two types as
are qualitative and quantitative. In order to carry out the present research the researcher will have
the use of qualitative techniques focus over interviews, focus groups and experiments etc. On the
other hand, Quantitative techniques helps to determine the information with help of using of
statistical tools.
Research ethics-
It is essential to maintain the quality and integrity of the research by the researcher.
Before, disclosing any information relates to research it is crucial to seek informed consent.
Thus, confidentiality and anonymity of research is needed to be respected. Generally, it is norms
and standards that helps to conduct the distinguish between the right and wrong.
Budget and time scale
Budget-
To carry out the research successfully the total expense will be incurred as-
Resource needed Monthly cost Duration & Months Total ($)
Research software 4 50 200
Ewom (social
influence technique)
2 100 200
Travel accommodation 3 125 375
To access customer for
feedback
1 200 200
Total estimated cost 975
Time scale & Gantt chart
Activities 1st
Week
2nd
Week
3rd
Week
4th
Week
5th
Week
6th
Week
7th
Week
8th
Week
9th
week
10th
Week
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Building
Research
Proposal
Defining of
research
Aims and
Objectives
Critical
review
Determine
the method of
data
collection
Research
Methodology
Collecting
primary and
secondary
data
Writing down
the findings
Data analysis
Conclusion
and
recommendat
ions
8

Final
Submission
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REFERENCES
Journal & Book
Divyaranjani, R., 2018. THE CUSTOMER PERCEPTION OF BRIGHT AUTO PLAST PVT
LTD. International Journal of Supply Chain Management. 7(2). pp.179-186.
García-Fernández, J and et.al., 2018. The effects of service convenience and perceived quality on
perceived value, satisfaction and loyalty in low-cost fitness centers. Sport Management
Review. 21(3). pp.250-262.
Gholizadeh, B and et.al., 2018. Mouth advertising, an effective tool for loyalty of sport
customers, case study: women's health clubs in Mashhad. International Journal of Leisure
and Tourism Marketing. 6(1). pp.51-64.
Miranda, S., Tavares, P. and Queiró, R., 2018. Perceived service quality and customer
satisfaction: A fuzzy set QCA approach in the railway sector. JournalHow Alternative
Revenue Streams Can Help Your Fitness Studio’s Bottom Lin. 2018. of Business Research.
89. pp.371-377.
Rodríguez-Cañamero, S and et.al., 2018. Economic trend analysis of the fitness sector. Journal
of Physical Education and Sport. 18(2). pp.575-584.
Sivakumar, K., Li, M. and Dong, B., 2018. Service quality: The impact of frequency, timing,
proximity, and sequence of failures and delights. Journal of Marketing.
Yusof, A., Popa, A. and Geok, S.K., 2018. Perception of Service Quality among Malaysian
University Recreational Fitness Center Users. International Journal of Academic Research
in Business and Social Sciences. 8(7). pp.823-833.
Online
How Alternative Revenue Streams Can Help Your Fitness Studio’s Bottom Lin. 2018. [online]
Availbale thorugh:<https://pulse.peerfit.com/alternative-revenue-streams-can-help-fitness-
studios-bottom-line/>.
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Appendix
Questionnaire
1. Do you think Fitness first uses innovative equipments?
 Yes
 No
 May be
2. Does prices factor impact over customer perception and profitability towards firm.
 Yes
 No
 May be
3. Is trainers of Fitness first are qualified?
 Yes
 No
 May be
4. Do you think Fitness training program helps to change perception of outsiders?
 Yes
 No
 May be
5. Does Ewom technique helps in social influence?
 Yes
 No
 May be
6. Is prices of gym affects customer choice and preference?
 Yes
 No
 May be
7. Do you think understanding of customer perceptions helps to streamlined the profitability
of Fitness first?
 Yes
 No
 May be
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