Generation Y Malaysia - Marketing Research & Intelligence

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MARKETING RESEARCH & INTELLIGENCE

BM031-3-2-MKIR

MARKETING RESEARCH

INDIVIDUAL ASSIGNMENT

Student Name        : Eng Yin Wei

Student ID                : TP038987

Intake code                : UC2F1805KMGT

Hand in date                : 19 July 2018

Lecturer’s Name        : Mdm. Thenmozly A/P Pandurengan

1.0 Executive Summary

Nowadays, the technology advancement had built a lot of social media platform which included Facebook, Instagram, Snapchat and others. It has influences the purchase decision of Generation Y. Most of the youngsters like to travel all around the world. The most convenient transport is by airplane. Thus, their purchase behavior on social media had influence by a few factors. This research aims to determine how social media influences the consumer on purchase decision behavior in selecting airline company among Generation Y.

Contents

1.0 Executive Summary        2

Contents        3

2.0 Introduction and Research Background        5

2.1 Problem statement        6

2.2 General Objective        6

3.0 Literature review        7

3.1 Theory models        9

Theory of Reasoned Action        9

Purchase decision-making processes        10

Theoretical Framework        11

3.2 Secondary data        12

4.1 Sample size and response rate        13

4.2 Demographic Profile and Data Analysis        14

Gender        14

Age        15

Education Level        16

Time spent on Facebook daily        17

Airline’s online advertisement        18

Promotional activity in social media        19

Factors will influence respondent to choose the airline company to travel        20

5.0 Benefits and limitation of the proposed research        21

5.1 Managerial Benefits        21

5.2 Limitation        21

6.0 Conclusion        22

7.0 References        23

8.0 Appendix        24

Questionnaire        24

2.0 Introduction and Research Background

The concept of social networks was primarily introduced by sociologists as personal ties between individuals who share similar interests. Nowadays, social network is current trend as a terminology for online social activities.

Facebook is created so that consumers can contact each other with friends, family, or know new friends through shared-communities. 700 minutes the average Facebook user used per month online, averaging 130 Facebook friends (Branckaute, 2010). The most viewed site took by Facebook recently (Clark, 2010); hence it is an everyday rate for users to log into Facebook. Business such as Air Asia considered Facebook as a cost-effective strategy to employ when communicating with consumers, so the Facebook platform offers advantages to both consumers and businesses.

Nowadays, the numbers of people are using flight to travel around the world increasing rapidly. Airplane had become an important transporter to bring people travel around. With the high demand, the competitors are increasing in the market of the airline industry in Malaysia. So how actually does the consumer purchase behavior in selecting the airline company through social media?

2.1 Problem statement

Purchase behavior of Generation Y which also known as generation of millennium is a prevalent topic for marketing in the business industry. They were born between 1977-1999 were age 18-35 and each individual has a free spending spirit. Researches has been done on similar topic as “An impact of advertising and pricing on consumers online ticket purchasing (Yasin & David, 2014) and “A research on the influence of Media Advertisements in the purchasing decisions of Generation Y in Penang Malaysia ( Sundarapandiyan, Duraiarasi, Dr. Babu & Dr, Prabakaran, 2018). However, there is no study specifically on how social media influencing the consumer purchasing behavior in selecting airline company among Generation Y in Malaysia. The purpose of this study is to increase the study of the research and fill the gap of the research to which factors of social media influencing the most in the purchasing behavior in selecting airline company to travel among Generation Y in Malaysia.

2.2 General Objective

To study how the social media influence consumer purchasing behavior among Generation Y in Malaysia.

 Specific Objective

1. To identify the factors of social media influencing the consumer in selecting airline company to travel among Generation Y on purchasing behavior.
2. To identify whether online advertisement influence the purchasing behavior of consumer
3. To identify whether the review of consumer in social media will influence the purchasing behavior of consumer among Generation Y
4. To identify whether the promotion activity in social media influence the purchasing behavior of consumer among Generation Y

3.0 Literature review

There are several factors which are influencing Generation Y customers in making a purchase decision of choosing an airline company to travel. Nowadays, most of us are growing up in the world which is flooded with the mass media such as advertising, videos, music and internet. This part will review the related literature which is based on the past research papers.

Online advertisements

Online advertising is known as the various forms of advertising which are delivered through the internet, desktop and mobile (Bundeskartellamt, 2018). Malaysian Communication and Multimedia Commission showed that the rate of internet user’s growth in Malaysia has been increasing rapidly from 3.5 million users in the early years 2000 to 14.7 million users in 2018. Out of these users who use the internet, the key statistics indicated that 15.4% of people are e-consumer involved with purchasing from various entities in the web. Airline tickets were the most popular which 54.7% of people are. Advertising plays a significant role in building a brand and Air Asia came up with a brand “Now Everyone Can Fly”. This slogan had boosted Air Asia Airlines and created its strong image of the World’s Best Low Cost Carrie (Yasin & David, 2014). Social media is the most effective way to reach Generation Y on the Internet. So, the marketer should focus more online advertisement on social media.