Factors Influencing Consumers’
Choice of Retail Stores For Fresh
Meat In Malaysia
Norshamliza Chamhuri
&
Peter J. Batt
Agenda
Retail Formats Problem Results &
Introduction Procedures Conclusion
In Malaysia Specification Discussion
Introduction
Globalisation of the food retail
system has impacted on the
distribution and marketing of fresh
food.
Malaysia: In previous years, the
only retail formats were the
traditional markets and grocery
stores (mini-markets).
Since the 1990’s, the food retailing
industry in Malaysia has experienced
tremendous growth.
Increase in personal disposable income Urbanisation
Food safety & food quality issues Changes in diet
Retail Formats in Malaysia
1. Traditional Retail Formats
Night Market/ Street Grocery Stores/ Mini
Wet Market/ Fresh Market Farmer’s Market
Market Market
Operates in its own Fresh food and Organised by Family own stores
buidling. non food items are FAMA. selling limited
available. variety of products
Modern Retail Formats
• In Malaysia, supermarkets began to
emerge in the early 1990’s.
• Most supermarkets and
hypermarkets are located in major
urban centres.
•2000: 392 supermarkets & 22
hypermarkets.
•2005: 550 supermarkets & 81
hypermarkets.
•Foreign-owned retailers dominate
the retail sector.
Problem
Specification
Modern retail outlets have impacted on both the traditional food retail
environment & consumer behaviour in Malaysia. This research project
sought to identify:
• Which factors were most influential in the consumers’ choice
of retail outlet when purchasing fresh meat.
• To explore why consumers continue to shop at traditional
markets when they have the opportunity to purchase from
modern retail outlets.
Procedures
• A total of 4 FGD were organised between Oct-Nov 2007 in KL.
•This method is considered to be a useful means of data collection
as little is known about the phenomenon of interest.
• Participants were the primary food shopper for the household.
• Each FGD followed an interview guide which consisted of a check
list of questions on several subtopics.
• Participants received a cash payment of RM75 (AUD25) and a
souvenir bag for their participation.
Results & Discussion
Factors attracting consumers Modern Retail Outlets Traditional Markets
1. Freshness √ √
2. Halal guaranteed √
3. Good relationship with √
retailers
4. Good quality √
5. Competitive price √ √
6. Convenience √ √
7. Varieties √ √
8. Good environment √
√ : represent responses mentioned from FGD
1. Freshness
Modern retail outlets Traditional markets
Have the advantage of offering Fresh meat products were
fresh meat in refrigerated display slaughtered early in the morning
units. at slaughterhouses.
Fresh meat is pre-cut and pre- Fresh meat is displayed on
packaged. counters or hung on hooks.
2. Halal guaranteed
Modern retail outlets Traditional markets
Beef & chicken carries a halal The issue of Halal and the
logo from JAKIM. relationship between butchers
Imported beef from Australia and customers is closely related.
carries ‘ Fresh Halal Aussie Beef’ Buy fresh meat from the same
logo. butcher because they are
confident on where the seller gets
the beef from.
3. Good relationship with retailers
• Traditional markets is a place for meeting acquaintances.
• Traditional markets are perceived as a place to foster social
relationship.
• Personal relationships built between retailers and consumers
developed trust.
• Trust customer loyalty.
• Customers are more loyal to a store which offers warm & friendly
service.
• The social environment in traditional markets provides a leisurely
experience.
4. Good quality
• Quality is an important criteria in selecting fresh meat.
• However, quality means many different things to different people.
5. Competitive price
Modern retail outlets Traditional markets
Are capable of offering more Participants who shop in the
competitive prices. traditional markets are allowed to
bargain.
6. Convenience
Modern retail outlets Traditional markets
Convenience means anything Participants who shopped in the
that saves or simplifies work and traditional markets described
brings comfort to consumers. convenience as those markets
which were close to where they
live.
7. Variety
Modern retail outlets Traditional markets
Are capable of offering a wide Variety means more choice.
variety of food and non-food Traditional markets = fresh food
items at the same time. supermarkets.
8. Good environment
Modern retail outlets Traditional markets
Clean & comfortable. Crowded, hot & stuffy.
The store is air-conditioned, Dirty, slippery, smelly,
easier to buy goods with trolley unorganised & noisy.
provided & a suitable place to
shop & bring the children.
Conclusion
• Traditional markets is still the preferred place to purchase fresh meat
in Malaysia.
• Older shoppers are more likely to continue to buy from the traditional
markets.
• Younger shoppers value more the convenience factor that
supermarkets & hypermarkets have to offer.
• There is a tendency for grocery shoppers to change their shopping
habits & shift to modern retail outlets for meat products due to meat
safety issues.
