Analyzing Marketing Mix Elements' Impact on Brand Loyalty in Malaysia

This report investigates the impact of marketing mix elements on brand loyalty in the speech therapy industry in Malaysia, a business-to-consumer (B2C) sector with low public awareness. The study examines five marketing strategies: Price Promotion, Product Promotion, Place Promotion, Product Price, and Place Price. Data was collected through questionnaires distributed to 200 respondents, and analyzed using SPSS. The findings indicate a positive relationship between the marketing mix and brand loyalty in the speech therapy health science industry. Specifically, relationships exist between each marketing mix element and brand loyalty. The report recommends future research on the link between service/product access and brand loyalty, as well as the relationship between Customer Relationship Marketing (CRM), Integrated Marketing Communication (IMC), and brand loyalty within the Malaysian speech therapy industry.

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The Impact of Marketing Mix Elements on Brand
Loyalty Towards Speech Therapy in Health
Science Industry Malaysia
Masri bin Abdul Lasi, Tan Cheng Man, *
City Graduates School, City University Malaysia, Kuala Lumpur, Malaysia
Email: [e-mail],[e-mail]*
How to cite this paper: Author 1,
Author 2, & Author 3 (2020). Paper
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https://dx.doi.org/10.4236/***.2020.
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Open Access
Abstract
Speech therapy is provided to clients, students or patients,
depending on the setting of service delivery, when they are
encountering feeding, speech and language (communication) and
swallowing difficulties. Speech therapy service is a business-to-
consumer (B2C) setting. However, this industry received low public
awareness in Malaysia. With enhanced and right marketing strategy,
it is believed to promote effective brand loyalty, including revisit of
therapy service and repurchase of therapy product. This study aims
to investigate the effectiveness of five different marketing strategies
in building sustainable brand loyalty considering uniqueness of this
industry. The strategies are conducting promotion about pricing
structure (Price Promotion), conducting promotion about product
content, brand personality, packaging and others (Product
Promotion), conducting promotion at different places, including
electronic platforms, newspaper and others (Place Promotion),
bundling different pricing structure according to nature and type of
different products (Product Price), informing customer regarding
pricing about goods bundle, payment method, price flexibility and
others through several distribution channels (Place Price). Data
collection in this quantitative study was done by distributing self-
designed questionnaires to 200 respondents. They are given Likert
scale to measure the degree of brand loyalty result from different
marketing mix. Data was analyzed using SPSS. The findings revealed
that the marketing mix have a positive relationship with brand loyalty
in speech therapy health science industry in Malaysia. In details,
there is relationship between marketing mixture of Price Promotion,
Product Promotion, Place Promotion, Product Price and Place Price,
with the brand loyalty. It is recommended for future researcher to
study the link between the number of service or product accessed
with brand loyalty within similar constructs. It is also recommended
to study the relationship between Customer Relationship Marketing
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(CRM) and Integrated Marketing Communication (IMC) with brand
loyalty in speech therapy industry in Malaysia.
Keywords
Brand Loyalty, Health Science Malaysia, Marketing Mix, Speech
Therapy
1. Introduction
Speech therapy is a type of therapy provided to population with
feeding, communication and swallowing difficulties. The population can
be paediatric and adult population. Communication problems can be
categorized into speech problem (pronunciation problem, apraxia,
resonance problem, voice problem, stuttering and others) and
language problem (speech delay, difficult to follow command, difficulty
to understand conversation and others). Swallowing problem can be in
the form of having tube-feeding or alternate method of feeding,
difficulty in swallowing food and/or drink, taking long time to finish a
meal and others. The obligations of Speech Therapist can be differ
depending on the setting of working place. Speech Therapist in
hospital may see more cases with swallowing problem; Speech
Therapist in school may see more cases with expressive language
problem; Speech Therapist in private centre may see more cases with
speech and language delay. Other than providing therapy directly to
clients or patients, Speech Therapist educates public about the role of
Speech Therapist, improves public awareness, trains caregivers,
develops services standards, policies and procedures, and conduct
research.
Speech therapy profession is indeed less known by the public in
Malaysia, hence when graduates search for a job, they choose to
rather be employed by a small company. Being professionally isolated
makes them vulnerable and unable to create impact in the market due
to low public awareness. Speech therapist’s role is to improve feeding,
communication and swallowing skills among paediatric and adult
population. Hence, their workplace can vary, either school, centre or
hospital settings.
Branding is crucial for a company's performance. It improves
demands and directly boosts performance. This works the same for the
health care industry. Speech therapy is one of the Allied Health
Science. In Malaysia, the speech therapy industry is in its infant stage.
There is high demand in Malaysia in fact according to iMoney Learning
Centre (2016)-- there is an approximation of 30,000 children with
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disabilities were registered in Malaysia in 2012.
According to statistics from Malaysian Association of Speech-
Language and Hearing (MASH), in year 2020, in Kuala Lumpur, there
are only 24 speech therapy centres available, highlighting low public
awareness towards this industry. Thus, marketing is definitely required.
Brand loyalty can keep more customers and reduce the customer who
leave (Adel, P., 2015), and associate with self-brand connection and
brand experience (Liezl-Marié, 2017). It directly influences company
performance. Hence, to investigate the impact of marketing mix
element is crucial to provide guidance to speech therapy centre owner
in making a right marketing investment to promote brand loyalty.
With enhanced detection and response towards cue from customer,
centres are more capable to build a quality relationship with customer.
Brand equity is crucial for increasing advertising efficiency and enable
more purchase decision, other than brand differentiation (Nebojsa S.
D., & Piyush S., 2015). With brand loyalty, there would be less brand-
switch behaviour and more customer retention.
As for the scope of past research, the impact of marketing mix
element is only done in mobile phone industry (Raphael, O., 2016,
Jewel, D. N., Abubakar, J., Lucy, A., & Samuel D., 2018, Adel, P., 2015)
and hotel service industry (Sarah, T., Stowe, S., Alexandra, D., 2016).
Limited research has been done to investigate the marketing mix
element in health science industry, specifically speech therapy field.
This restricts speech therapy centre owners in deciding their extent of
marketing expenditure, amount of promotional activities and the
overall marketing mechanism to build brand loyalty.
2.Literature Review
2.1. Relationship between marketing mixture of Price Promotion and
brand loyalty
Speech therapy is provided to clients, students or patients, depending
on the setting of service delivery, when they are encountering feeding,
speech and language (communication) and swallowing difficulties; it is
a business-to-consumer (B2C) setting. Therefore, marketing
practitioner shall understand the customer-brand relationship (CBR)
which involves brand loyalty, and which aspect of marketing to invest
on is much relatively important to ensure a wise marketing investment.
Pricing can be manifested in different forms, such as value-based
(which is depending on the purchaser’s perception on the speech
therapy service offered), can be according to the market
competitiveness and going-rate (for instance, if the market price is at
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standard rate, the pricing would be more or less at that range),
skimming (which targets the affluent clients with families/children
diagnosed with feeding, swallowing and communication problems),
discount, loss-leader (purposefully set the price at a lower price than
the market price in order to attract client crowd) and psychological
(such as put the price at RM99 rather than RM100). Promotion could
directly point out the significance of their advantages and their
respective marketing positions (Hsiu-Ju, C., 2018). To strengthen the
customer relationship with the brand, a promotion can deepen a
client’s memory towards the pricing structure and strategies set by a
speech therapy centre.
Therefore, when promotion emphasizes the availability of early bird
discount or credit term (price delivery), which can relieve purchasers’
financial aspect in the long term, the brand loyalty could be maximized
with the assistance of price promotion.
2.2. Relationship between marketing mixture of Product Promotion
and brand loyalty
In speech therapy industry, product refers to the goods such as speech
therapy handout, magazine, video or other (for sale), and refers to the
service itself such as individual speech therapy and group speech
therapy. The aspect which business owner should pay close attention
in Product marketing is the function of the goods/service—whether the
magazine and therapy can provide a sufficient amount of knowledge to
the population; the appearance and design of the goods/service—
whether the image of the educational video/service can attract the
customer; the overall of goods—whether the bundle or the separate
individual goods/service can fit to certain population.
Therefore, while marketing mix of product promotion place a
special emphasis in the brand personality, which refers to the product
itself, either in terms of value, presentation or mode, this type of
marketing mix may positively affect the brand loyalty.
2.3. Relationship between marketing mixture of Place Promotion and
brand loyalty
The places where promotion takes place affects quality of marketing
and thus brand loyalty. A good promotion place improves the
credibility of the store image and stimulates consumption growth
(Hsiu-Ju, C., 2018). Speech therapy centre sourced continuous referrals
or demand from different settings, hence those places required a
different type of promotion. For instance, hospital would require
feeding difficulty and therapy management information; nursery may
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instead require language difficulty and following therapy techniques—
constituting proper type of promotional content at the proper
channel/setting.
Therefore, when the promotion is done through several right
places, it may promote brand loyalty in speech therapy industry.
2.4. Relationship between marketing mixture of Product Price and
brand loyalty
Product Price would be taken in place when the speech therapy goods
and service are assessed in terms of value, and either make it cost-
plus (slightly above than the cost of production) or competitive (by
aware to the price from competitors); and at the same time, working
on the warranty, appearance and bundling of the product. The process
of parents making decision for their children to engage in speech
therapy includes the selection and evaluation of the price
product/service, which assists the families or purchasers to make a
wise decision.
Therefore, with enhanced marketing skill of product price, families
get to know this element much better and hence, likely stimulates
brand loyalty.
2.5. Relationship between marketing mixture of Place Price and brand
loyalty
Price is an issue for customer in developing satisfaction toward
healthcare service received. When they receive service expected from
the amount of money invested, customer is more satisfied and be loyal
to the brand (Muhammad S.R. & Aahad M.O., 2015). When Place Price
are combined, this means the pricing about goods bundle, the
payment method, the price flexibility, and other would be informed to
customer through certain distribution channel(s). For instance, the
speech therapy magazine would be seasonal, hence the pricing would
be trade discounts for bulk purchase of speech therapy magazine or
bundling of magazine and other speech therapy handouts. In this way,
owner can detect market change, understand the client need by
having face-to-face conversation.
Therefore, by intensifying marketing effort into Place Price, it could
be beneficial to stimulate brand loyalty.
3. Research Methodology
Data collection will be conducted via distributing and collecting self-
designed questionnaires to 200 respondents, who are the receivers of
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speech therapy service. The number of participants is kept at minimum
of 200 in order to obtain statistical significance. Since the population of
research is the receivers of speech therapy service, the ethical factor
will be considered. Before filling up the questionnaire, researcher
ensure the information provided by respondent is kept confidential.
There was no name, email address, phone number section in the
questionnaire and hence, researcher could not identify the participants.
Participants are kept anonymous fully. Brand loyalty is measured using
the adapted scale (Rubio et al., 2017). With a 7-point Likert scales,
ranging from 1 (strongly disagree) to 7 (strongly agree), the data will be
recorded. The principles of the questionnaire design is to list down the
five independent variables (i.e. marketing mix) and categorize the
degree of brand loyalty into three different degree: “I am committed to
purchasing from Grace House brand” (degree 1), “I would recommend
Grace House brand to family and friends) (degree 2), “I consider myself
to be loyal to Grace House brand” (degree 3). With the apparent degree
classification, researcher was able to detect the dependent variable or
the outcome resulting from the marketing mix elements. Words were
written in neutral tone and clear language. Data will be analyzed using
Statistically Package for Social Science (SPSS) Version 18.0. Correlation
analysis will be used to identify the correlation between the
independent variables (i.e. marketing mix elements) and dependent
variables (i.e. brand loyalty).
This study presents a framework which involves the relationship
between independent variable and dependent variable. There are five
independent variables, which are the mixture of any two marketing mix
elements. There is only one dependent variable, which is the brand
loyalty, specifically in speech therapy industry. The research framework
is illustrated in Figure 1.1.
Figure 1.1: Research Framework
3.1. Research Hypotheses
There are five hypotheses in this research:
H1: There is relationship between marketing mixture of Price
Promotion and brand loyalty.
H2: There is relationship between marketing mixture of Product
Promotion and brand loyalty.
H3: There is relationship between marketing mixture of Place
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Promotion and brand loyalty.
H4: There is relationship between marketing mixture of Product
Price and brand loyalty.
H5: There is relationship between marketing mixture of Place
Price and brand loyalty.
The way to verify the hypotheses is to conduct a test, which in
form of survey. The analysis plan will be to accept or reject the
hypotheses depending on the statistical result findings.
4. Results and Discussion
From the demographic characteristic shown in this research, 73% of
respondents were female. 43% of respondents are at age of below 30
years old. 60% of respondents are Degree holders. 22.5% of
respondents have average monthly income of RM3001-RM4000. 96.5%
of respondents accessed to brand product; 82.5% of respondents
accessed to brand service. 59.5% of respondents know the brand from
online platform.
Five hypotheses were discussed as shown below based on this
study finding with support from the literature reviewed.
4.1. There is relationship between marketing mixture of Price
Promotion and brand loyalty.
27%, 21.5% and 20% respectively of respondents mildly agree,
moderately agree and strongly agree that they consider themselves to
be loyal to Grace House brand due to Price Promotion. Based on the
result of this research, the Pearson correlation coefficient between
marketing mix of price promotion and brand loyalty is 0.861 which
shows a very positive linear relationship between the two variables.
There is significant relationship between marketing mix of price
promotion and brand loyalty. This indicates that the increase of
marketing mix of price promotion will increase the brand loyalty in
speech therapy industry. This hypothesis is accepted.
A high price indicates a better quality of service, while a lower price
fits better to the financial capacity of the families. Hence, both ends of
pricing structures have its own advantages and thus serving different
target populations with different socioeconomic backgrounds. When
there is promotion about the pricing structure, either high price or low
price, this could affect brand loyalty due to the condition of price
comparison preference. For example, consistent therapy yields much
effective therapy outcome, hence a continuous weekly or more
frequent (let say, three times per week) session is recommended for
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standard practice. Meanwhile, parents may also need to do a huge
amount of payment. With price promotion effect, they will be having
heightened awareness at the beneficial payment period, trade
discount, volume discount and wholesale pricing (for speech therapy
product), bundling of services/products, and thus much willing to
repurchase or revisit the specific brand.
4.2. There is relationship between marketing mixture of Product
Promotion and brand loyalty.
27%, 23% and 23.5% respectively of respondents mildly agree,
moderately agree and strongly agree that they consider themselves to
be loyal to Grace House brand due to Product Promotion. Based on the
result of this research, the Pearson correlation coefficient between
marketing mix of product promotion and brand loyalty is 0.861 which
shows a very positive linear relationship between the two variables.
There is significant relationship between marketing mix of product
promotion and brand loyalty. This indicates that the increase of
marketing mix of product promotion will increase the brand loyalty in
speech therapy industry. This hypothesis is accepted.
The purpose of promotion is to assist customers to understand the
content of speech therapy, the idea of communication, the red flags of
the child’s communication delay and other relevant information. This
marketing effort helps targeted individuals to satisfy their needs
through purchase of goods and services. It can be in vary channels,
such as radio, magazine, television and word of mouth. For product
aspect, the warranty of the goods is important, such as when the
magazine or book is received in not good condition, does the
publisher/speech therapy owner will refund fully or provide another
new magazine. In speech therapy industry, this is a significant
marketing investment due to the low awareness of the public towards
speech therapy services in Malaysia.
4.3. There is relationship between marketing mixture of Place
Promotion and brand loyalty.
27.5%, 18% and 23% respectively of respondents mildly agree,
moderately agree and strongly agree that they consider themselves to
be loyal to Grace House brand due to Place Promotion. Based on the
result of this research, the Pearson correlation coefficient between
marketing mix of place promotion and brand loyalty is 0.873 which
shows a very positive linear relationship between the two variables.
There is significant relationship between marketing mix of place
promotion and brand loyalty. This indicates that the increase of
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marketing mix of place promotion will increase the brand loyalty in
speech therapy industry. This hypothesis is accepted.
Place is an important attribute to the speech therapy rehabilitation
journey. Child or adult clients require a fixed place for therapy, at a
consistent rate. A change in place could invite anxiety and nervous in
paediatrician and affects therapy effectiveness. Parents could display
brand loyalty despite any degree of marketing effort from other brand
to initiate brand shift. The coverage of the place could be manifested
in three forms: intensive distribution, selective distribution and
exclusive distribution. Market coverage may see the speech therapy
owner to sell service at many places, such as provide speech therapy
at many centres and schools, doing home visit speech therapy in many
areas (intensive distribution); may see the speech therapists only
target certain population such as only provide service to privileged
places (selective distribution); may see certain speech therapists only
accept cases in certain specialty such as feeding difficulties only and
not speech and language difficulties cases (exclusive distribution). In
terms of product and goods, the market coverage can be in such way:
owner sells speech therapy magazine and handouts at many places
including, for instance, 56 kindergartens in Kuala Lumpur, Johor,
Pahang, Malacca (intensive distribution); owner (supplier) sells
magazine and handouts only to 5-6 retailers (selective distribution)
because they know these retailers get closer contact with targeted
audience who in high need and are likely to purchase speech therapy
magazine and handouts; owner may also choose to sell to only 1
retailer or reseller (exclusive distribution).
4.4. There is relationship between marketing mixture of Product Price
and brand loyalty.
26%, 26.5% and 25.5% respectively of respondents mildly agree,
moderately agree and strongly agree that they consider themselves to
be loyal to Grace House brand due to Product Price. Based on the
result of this research, the Pearson correlation coefficient between
marketing mix of product price and brand loyalty is 0.857 which shows
a very positive linear relationship between the two variables. There is
significant relationship between marketing mix of product price and
brand loyalty. This indicates that the increase of marketing mix of
product price will increase the brand loyalty in speech therapy
industry. This hypothesis is accepted.
In speech therapy industry, the product/service price had been a
major consideration because engaging in a speech therapy is a
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continuous progress. For example, the speech therapy handout is sold
at RM5 per set, due to the manpower wages, material and printing
cost. The cost of production maybe RM3.50 per set, hence the handout
is sold at RM5 with RM1.50 as the earning. The example for the Product
would be to improve the quality and content of the speech therapy
handout, either making it much reader-friendly by adding more layman
term and explaining about the jargon. This works well if the bundle of
goods are sold, such as purchase of 15 sets speech therapy handout
(Product: bundle) will get 5% discount (Price: discount), which includes
the Price Product. This both P combination stimulate brand loyalty.
4.5. There is relationship between marketing mixture of Place Price
and brand loyalty.
25%, 21% and 25.5% respectively of respondents mildly agree,
moderately agree and strongly agree that they consider themselves to
be loyal to Grace House brand due to Place Price. Based on the result
of this research, the Pearson correlation coefficient between marketing
mix of place price and brand loyalty is 0.873 which shows a very
positive linear relationship between the two variables. There is
significant relationship between marketing mix of place price and
brand loyalty. This indicates that the increase of marketing mix of
place price will increase the brand loyalty in speech therapy industry.
This hypothesis is accepted.
When the places of price being distributed could be differ, this would
indirectly affect the brand loyalty. The location where the pricing
structure had been targeted may contribute to positive or negative
brand loyalty. For instance, when the banner about the affordable price
was hanging at the physical speech therapy centre, this brings the
passerby a heightened level of awareness of the pricing structure,
hence achieving marketing effectiveness. Other than that, when reader
who read magazine went through the advertisement of affordable
pricing of the speech therapy service, it could affect customer decision.
This includes the place price marketing coverage of social medias,
such as Shopee, Facebook, Instalgram and YouTube, where the
platforms which widely accepted and increasingly becomes popular
among consumers. Speech therapy centre/store image combining with
the pricing structure of the service or/and product (such as handout,
book and others) would likely affect the brand loyalty.
4.6. Reliability
The analysis of this questionnaire in this study have Cronbach’s alpha
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value of more than 0.7 for all 15 items in the scale. In fact, the scale
had value of 0.963. Hence, the research instrument was deemed to be
reliable based on the alpha statistic.
4.7. Correlation
Brand loyalty of Price Promotion has p=0.861 with brand loyalty of
Product Promotion. It means there is high positive linear relationship
between brand loyalty, Price Promotion and Product Promotion.
Brand loyalty of Price Promotion has p=0.784 with brand loyalty of
Place Promotion. It means there is high positive linear relationship
between brand loyalty, Price Promotion and Place Promotion.
Brand loyalty of Price Promotion has p=0.799 with brand loyalty of
Product Price. It means there is high positive linear relationship
between brand loyalty. Price Promotion and Product Price.
Brand loyalty of Price Promotion has p=0.820 with brand loyalty of
Place Price. It means there is high positive linear relationship between
brand loyalty, Price Promotion and Place Price.
5. Conclusion
In conclusion, the marketing mix element stimulates the brand-
customer attachment and promotes brand loyalty. For business/speech
therapy centre owner, t is vital to explore the non-clinical side,
leveraging it with the clinical side in the pathway of brand building. The
result is very much relevant to the entrepreneurs who keen to open
speech therapy centre, as current trend would witness many freelancer
speech therapists. This research supports the advantages of investing
in the marketing skill in order to promote brand loyalty. Business
owner are usually spending enormous resources in enhancing
competitiveness. Now with the point of purchasers taken into
consideration, business owners are advised to pay slightly more
attention towards fruitfully influencing customer decision and behavior,
fostering brand loyalty through right type of marketing mix in
consideration of long-term brand building in the speech therapy
industry in Malaysia.
The limitation of this study is that it doesn’t take into consideration
of the participants’ type and number of services and/or products
obtained. For instance, certain participants have accessed to only one
type of service (i.e. tele-practice) but another may access to two types
of service (i.e. tele-practice and centre visit). Certain participants may
access to product and service (i.e. tele-practice and purchase speech
therapy magazine). Since speech therapy places tremendous emphasis
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in the relationship between clinician/speech therapist and
customer/parents and children, in future research, there is possibility
for future researchers to investigate deeper on whether the marketing
mix could affect customer experience, customer perception, therapy
effectiveness or sustainable revenue, in order to achieve successful
marketing. Other than that, they can focus more on Customer
Relationship Management (CRM) in order to improve product/service
awareness in speech therapy industry. Due to the nature of speech
therapy which focus on client-therapist relationship, the CRM would be
an important aspect and factor to build up brand loyalty. In fact,
researcher can place more emphasis on the Integrated Marketing
Communication (IMC) such as direct selling, mobile marketing, social
media marketing, sales promotion and others, to investigate its role to
build strong relationship with customers.
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