Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia

ISBN: 978-1-922069-76-4

The Visual Impact on Consumer Behaviour towards

Quality: Case Study on 1 Malaysia Visual Promotion
Noor Azli Mohd Yusof1 and Sazrinee Zainal Abidin2,
Quality of a products could be predetermined or perceived by its
visual representation. Strategic planning and implementation to
convey messages to the consumer or making firm statements on
its superiority. This study will be gathering data on consumer
behaviourism on quality towards KR1M products based on its
visual representation. Literature review and survey used as
methods to explore visual communication of KR1M products
towards quality. A case study and observation will be apply in the
investigations to gather data of Malaysian consumers towards
KR1M products.
Results of the study would include consumer opinions towards
KR1M visual impact on brand and packaging. The results expected
to show various statement comprimising states, gender, age and
occupations. After the introduction of the background problem, this
study will present the literature on visual communication, branding,
customer loyalty, design and KR1M. Exploration on research
methodology will include survey, observation and interview. Data
gathered from multiple KR1M shops from 14 states in Malaysia
provided stimulating data validate the research. This study
contributes the characteristic of successful visual impact towards
KR1M brand and design. It is merely important to get consumer
feedback and suggestion for a better strategy for a better brand
and design.

Field of Research: Visual Impact, Branding, Design and Business

Name of the Track: Business

1. Introduction
Kedai Rakyat 1 Malaysia is one of the biggest CSR initiative by Malaysian
government to ease the burden felt by Malaysian across the country. Government
Transformation Program reported in 2011 Annual Report that In addition, more
KR1M stores are being planned nationwide. The new locations identified included
several towns and major townships.
Price hikes for groceries have become a major challenges globally. People end up
paying more for the same quality of goods from time to time. Malaysian have also
experienced this, especially when the implementation of GST is in place. Many
_______________________
1Logistic
2Faculty

and Event Department, Leap Ed Services, Malaysia

of Design and Architecture, Universiti Putra Malaysia, Malaysia

Mailing Address : Logistic and Event Department, LeapEd Services Sdn. Bhd, Level 52, Menara TM,
Jalan Pantai Baharu, 50672, Kuala Lumpur
Email Address: azli.yusof@leapedservices.com , Tel: +6019 3357180, Fax: +603 2282 3457

Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4
supplier and business owner takes advantages during this situation. Prime Minister
of Malaysia, Dato' Sri Mohd Najib (2012) make a commitment by stating The
Government will undertake measures to ease rising costs and prices as well as
reduced the burden of the rakyat. He also mention that one the initiative is to set up
KR1M offers 250 types of 1Malaysia products comprising consumer goods which
are up to 40% cheaper. Up till today, estimated of 213 KR1M store were set up in
strategic location in rural and major town to accommodate the needs of the lower
and middle income Malaysian.
Tasnim, Yop, Zain and Yahya (2013) supported that KR1M was soon initiated to
boost the confidence and support of the people, in particular those of the lower
income bracket living in the large cities. The decision by the Malaysian government
to waive GST to the KR1M consumers are helping the people. 6% taxes added to
the most of the purchases seems quite a heavy load for the lower and middle
income. KR1M has also provided these targeted consumer with good quality
products but also cheap in the same time.

2. Visual Communication Mix Media

GAMIS (1994) stated that electronic data interchange was a growing medium and
would be instrumental in communicating information between customers, suppliers,
publishers, and printers. Even in 1994, realisation of the importance of integration
was very dynamic.
A brand and packaging design would be part of the important communication
strategy in persuading consumers. Krutulyte, Costa, and Grunert (2009) explained
that products have intrinsic quality cues, which include all physical characteristics of
the product (including packaging) and extrinsic quality cues, including brand name,
price, store type, label information, information on origin, etc. (p.307). Decent brand
positioning and execution of packaging design will allowed the visual to
communication.
Promoting a brand or product using multiple media will be more effective compare to
have relying on one medium. Lee (1998) summarised that Media integration is the
blending of various media, such as telephone, fax, computer, and television, into one
appliance that allow people to interact using combinations of text, audio, video, and
animation in real time or delayed. KR1M usage of mix media are very minimum
because the management having perception that expenses on promotion will
definitely contributed to the hike of prices.

Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4
The Only Promotion Medium by KR1M Available Online on the Website in PDF
form

The technologies are changing rapidly and become a new way of life. Wilson, D.I.T.
& Westrick (2006) collectively agreed that The graphic communications industry has
experienced unprecedented changes in recent years. Most of these changes are
resulted from a rapid increase in the integration of computer technologies into the
print media procurement and production processes. KR1M must change and
improve its communication skills visually to reach the consumers hearts and mind.
KR1M must established more tactical blueprint that covers marketing and promotion.

3. Perceived Quality and Decision Making

Bodowsky (2004) indicated that The information cues derived from product origin
have recently been attributed so much significance, that it is now said to be a variant
for managerial decision making. KR1M being Malaysian made brand has created
blend opinion among consumers. Some consumers would look highly towards an
external brand originated from another country. Some consumers have sceptical
perception towards Malaysian made brand.
It is a challenge for KR1M as a new establishment to convince consumers to fully
trust its brand because it is associated to Malaysia. Samiee (2005) concluded that
past research has inflated the influence that country of origin information has on
consumers product judgments and behavior and its importance in managerial and
public policy decisions. Moodie and Hastings (2009) mention that And even if we
chose to ignore the internal documents, overlook the use of language and images on
packs that taps into youth culture and naively assume that adult brand-switching is
the industrys sole aim, there is still the immense problem of collateral damage:
attractive or innovative packaging aimed at adults will inevitably be seen by
youngsters.
Mikhailitchenko, Javalgi, G. Mikhailitchenko and Laroche (2009) address that With
the dynamic growth of cross-cultural marketing communications, marketers give
3

Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4
more consideration to the selection of visual imagery communication tools. They
believe that visual imagery-intensive carriers such as TV, magazines, and product
packages are also the most powerful ones in terms of influencing brand recall.
KR1M packaging design should be more fully utilised as marketing tools to induce
consumers to make purchasing decision. The brand and packaging design will
influence the perceive quality that consumers received.
Sample KR1M Products on the Shelf in the Store

4. Research Methodology
A set of questionnaires were carefully designed to investigate the state of current
branding and packaging design. Researcher also added few question to explore the
physical impact the packaging have on consumers and how it has also influence
perception on quality. The questionnaire went through several phases of scrutinising
the reliability and relevancy towards the research.

This survey was conducted in 14 states in 43 KR1M stores with 206 respondents.
The survey were conducted entirely in the shop to give consumers the experiences
of the ambience and easier to refer to the products on the shelf. The demographic
background of the respondents were varied and very interesting to see the pattern of
acquiring groceries and choices of products.

Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4
Researcher Met with Respondents Conducting the Survey

The survey use statements and Likert style with 5 level indicators from Totally
Agree, Agree, Uncertain, and Disagree to Total Disagreement. The responses
received from the survey were key in using SPSS and data generated for
researcher for analysis.

This statement is to investigate the visual perception of the packaging design giving
the impression of its pricing. 49.5% totally agree that the products definitely looks
very cheap. Another 25.7% supported the statement agreeing that the outer looks of
the products do looks cheap.

Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4

This statement will indicate that whether the visual has given impression that the
product is high quality. Surprisingly the data were a combination of 27.7% Totally
Disagree and 21.8% Disagree that the product is high quality. Meanwhile 18.4%
were uncertain of the visual impression on the KR1M products. Perceive quality is
very important for a brand to attract and convince consumer to make any purchasing
decision.

This statement will indicate that whether the visual has given impression that the
product is high quality. Surprisingly the data were a combination of 27.7% Totally
Disagree and 21.8% Disagree that the product is high quality. Meanwhile 18.4%
were uncertain of the visual impression on the KR1M products. It is very clear that
the current KR1M products logo, usage of colour and typography needed
refurbishment. Owing to that the product appearances looks cheap and this could
cause lack of confident by consumers.

Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4

The data above has point out that KR1M product packaging must be go through the
process of redesigning. It is supreme that the majority of 85.4% expressed that they
agree that KR1M needed transformation for its outer look to be able to gain ultimate
trust from the consumers.

5. Conclusion
KR1M has great potential to be the leading brand choices for the lower and middle
income people. The products must be cheap and at the same giving the perceive
quality that a consumer proud to be associated with. Zeithaml (1988) mentioned that
Perceived quality is the customers judgment about a products overall excellence or
superiority that is different from objective quality. Consumers will always going to
make judgement before consuming a product and after taste it. It is KR1M
responsibilities to provide essential experiences to the consumers by premeditated
the brand and packaging design impact.
KR1M must also deliberately planned the short term goal which creating demand or
purchasing transaction. Most importantly, KR1M should be aiming at developing
consumer loyalty which automatically creating consistent repeating purchase
behaviour. In the long run, the long term goal will create the consumers as little
ambassador for KR1M to attract new consumer and promotes the brand.
Strategic integration of media should be committed by KR1M to serve multiple
consumer on every media platform. Current strategies use by KR1M are too simple
and limited effectiveness. KR1M should also take the advantages to inform
Malaysian that the store absorbing GST and that should be an attraction. The brand
positioning and redesigning of the packaging will be a mechanism to create new and
maintaining existing consumer. Trust must be earn by KR1M and translated into
improved version to allowed effective communication to take place via visual of the
product. Visual impact must be taken seriously because it will closely related to the
consumers overall perception of the brand.

Reference
Alexandria, VA,1994, Statistical handbook for the graphic arts industry, Graphic Arts
Marketing Information Service.
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Proceedings of 4th Global Business and Finance Research Conference

25 - 27 May 2015, Marriott Hotel, Melbourne, Australia
ISBN: 978-1-922069-76-4
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