Analyzing Gen Y Preferences in Gymnasium Selection: Malaysia Study

This report presents a comprehensive study on the gymnasium selection preferences of Generation Y (Gen Y) in Malaysia. It investigates the factors influencing their choices, including price, quality, program offerings, social influences, and customer relations. The research explores the relationship between these determinants and Gen Y customers' satisfaction levels, as well as their intention to continue gym subscriptions. The study also examines the potential moderating effects of gender on these relationships. The methodology includes literature review, research framework, and consumer behavior theory to analyze the data. Findings are presented through graphical and statistical analyses, utilizing Structural Equation Modeling (SEM) to support research objectives and test hypotheses. The report concludes with recommendations for both Gen Y consumers and decision-makers in the fitness industry, addressing limitations encountered during the research process. The research aims to provide insights into the evolving fitness landscape and consumer behavior within the Malaysian context, offering valuable information for fitness centers to improve their services and customer retention strategies.

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