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2013
Volume 3
Issue 1

Impact of Brand Equity on Institutions of Higher Learning in Malaysia
Vincent Wee E.K & Thinavan Periyayya

Abstract:

It is often suggested that promoting institutions of higher learning is
relatively challenging due to the unique characteristics of the services offered. The
intention of this study is to determine the impact of factors that influence brand in
relation to consumer choice of institutions of higher learning in Malaysia. This
study will also explore the role of brand equity in the context of branding institutions
of higher learning. Quantitative data collected via a self- administered questionnaire
was used to test a model of brand equity in the context of institutions of higher
learning. The geographical setting was Klang Valley which, has a high concentration
of secondary schools and public and private institutions of higher learning and in
an increasingly competitive environment. Many student respondents agreed that
brand value played a significant role when selecting an institution of higher learning.
Educational institutions that posted good branding and provided clearer and
sufficient information to their potential students had greater competitive advantage
compared to those who did not. The study provides an example of an emerging
market where building brand equity is likely to be an essential strategy for institutions
of higher learning. The findings of this research are intended to provide useful
information to facilitate further similar research.

Why People Go to Shopping Malls – An Exploration and Segmentation of Shopping Malls in Thailand
Sarinya Laisawat & Shannon R.

Abstract:

The increasing number of shopping centres, similarities of products and
services being offered, as well as alternative retail channels, such as online shopping,
has caused a change in consumption behaviour and has encouraged intense
competition in the retail industry. Retail stores are no longer a simple place for
purchasing products. This research aims at exploring shopping motivation in
Thailand and segmenting them based on consumer motives. By adopting mall
intercept interviews, this research attempts to extend broader ranges of mall visit
motivations by combining internal motivations and attractiveness of shopping
malls. A total of 18 dimensions of motivations were extracted from the interviews.
These dimensions of mall visitation motivations can be considered to correspond
well to dimensions of media usage motivations from the uses and gratifications
theory. Intriguingly, some dimensions, like the ‘pass time’ motive, were mentioned
by respondents while it has not been referred to widely in retail literature. Cluster
analysis illustrated five groups of shoppers: minimalists, enthusiasts, traditionalists,
determinists, and emotionists. Understanding these groups of shoppers and their
behaviour can provide great benefits to practitioners and mall developers. Moreover,
the contribution of media consumption theory can provide substantial knowledge
to the field of consumer behaviour.

Role of Russian Courts in the Resolution Process of Reported Corporate Disputes
Stepanov R. & Shrives P.

Abstract:

Since Russia embarked on an unprecedented journey from central planning
to a market oriented economy, reformers’ efforts to produce an appropriate corporate
governance regime have been hindered by a weak legal infrastructure. The blame for
such a deep routed fault within the system does not rest on inappropriate laws, but
on the inability of Russian courts to arbitrate and enforce adequate rulings. Using a
compiled data base of reported corporate disputes, this paper offers a longitudinal
analysis of the country specific risks created by the inefficient legal system. The study
focuses on the role of courts as a determinant of the perceived level of risk associated
with the business environment in Russia. The analysis is based on prominent
business conflicts and examines two critically important time periods. Case studies
of reported corporate disputes in 1998 and 2006 have been compiled and the role of
Russian courts in the resolution process has been identified. The evidence suggests
that while the capacity of the courts to enforce its decisions has increased, the arbitration
function in certain types of corporate conflicts is still being reported as highly unfair
and subjective. This finding has significant implications on the nature of business
risks faced by foreign investors in Russia. Moreover, a framework which highlights
relevant examples of efficient/inefficient role of the courts has been developed.

Factors Affecting Consumer Attitude towards Social Network Advertising in Malaysia
Kee David H.C. & Goh S.K.

Abstract:

The aim of this study was to examine the factors that influence consumer
attitude towards social network advertising (SNA). Factors that influence consumer
attitude could be categorised as facilitating factors such as informativeness,
entertainment, peer influence and self-brand congruity while barriers that could
negatively impact on attitude are invasiveness and privacy concern. Six hypotheses
were posited in this paper. An on-line survey was conducted on a total of 324 valid
respondents. The hypotheses were tested using regression analyses. Based on the
data analysed, four out of six hypotheses were supported. The findings suggest
that entertainment, self-brand congruity and peer influence positively affect attitude
towards SNA. On the other hand, those who perceived SNA as an invasion of their
privacy will have a negative attitude towards SNA.

How Financial Crisis Affect Stock Returns: Malaysian Evidence
Nafis Alam

Abstract:

This paper investigates the role of macroeconomic factors and firm
characteristics in explaining stock returns in Malaysia during the pre- and postglobal
financial crisis of 2007. The factors model is employed for two time intervals,
namely, sub-period A (from July 2003 to June 2007) and sub-period B (from July
2007 to June 2011) to examine the changes in pre- and post-crises. Our empirical
findings show that the significant relationship between macroeconomic variables
and portfolio stock returns are not consistent for both sub-periods. The result is
highly dependent on portfolio and sub-period.

Impact of Product Placements on Generating e-Word of Mouth: Moderating Influence of Prominent versus Subtle Placements
Yeoh K.K., Manmeet Kaur & Ameet Pandit

Abstract:

Although the use of product placements by marketers has grown
tremendously in recent years, academic research focusing on this phenomenon is
relatively sparse. This empirical study examines the impact of consumer attitude
towards brand placements within the context of online video contents in generating
e-word of mouth (e-WOM). Furthermore, the effectiveness of subtle product
placements and prominent placements is examined. Data was collected using a
quasi-experimental method and moderated regression analysis was utilised to analyse
the data. The findings indicate that consumer attitudes have a positive impact on
generating e-WOM. However, both subtle and prominent placements had a negative
impact on the attitude-e-WOM relationship.


2012
Volume 2
Issue 2

The Impact of Mood on Sport Celebrity Credibility Evaluation
R.Venkatesakumar & S. Sundar

Abstract:

Celebrity endorsement is one of the techniques increasingly adopted by
marketers. The object of this study is to examine whether the mood states of the
consumer manipulated through exposure to information on team performance
and individual performance of the sports endorser (cricketer) has an impact on the
consumer evaluation of the sports endorser as a celebrity. To investigate and test
the hypotheses, a four-group post-test randomised experiment was designed. Results
indicate a mood congruent assessment of the celebrity by the participants.

Examining the Relationship Between Visual Merchandising and Apparel Impulse Buying among Young Malaysian Consumers
Jeannot Abdul Karim, Sofiah Abd Rahman & Mukesh Kumar

Abstract:

Stiff competition in the retail sector has resulted in retailers implementing
various forms of competitive strategies to outdo each other. Impulse buying is one
dimension that has not been thoroughly researched in Malaysia as a means of
increasing a firm’s competitive edge. This paper intends to fill this gap by investigating
the relationship between visual merchandising and apparel impulse buying behaviour
among young Malaysian consumers. Two forms of visual merchandising investigated
in the paper were window display and promotional signage. The results indicate
that both forms of visual merchandising are significantly related to impulse buying.
The study provides insights to retailers on the role of visual merchandising in
influencing consumers’ impulse purchase specifically related to young consumers.

Green Marketing: Exploring Consumer Buying Behaviour Towards Green Products in Malaysia
Lee Kim Lian & See Siew Ling

Abstract:

Everyone seems to be concerned about the green environment, but is
this concern reflected in Malaysian consumers’ buying behaviour towards green
products? This study explores the relationships between ecological knowledge,
values, attitudes, behaviour and consumers’ purchase intention. The sample for
this study included the general public responsible for most household purchases.
Data were collected at points where customers exited shopping malls in the Klang
Valley. A total of 250 responses were received and data from 196 were found usable.
The results indicate that ecological knowledge, values and behaviour are s ignificantly
related to consumer purchase decisions on green products. The findings further our
understanding of why consumers are more vigilant when making decisions to buy
green products. This could be due to their ecologically conscious behaviour and the
need to adapt healthier lifestyles. This study suggests that firms could design their
marketing strategies to focus on environment friendly products with affordable
prices to increase consumer willingness to purchase green products in Malaysia. The
paper concludes by highlighting the implications of the study for future research
and practice.

Beeronomics: A Time Series Analysis of Consumer Behaviour in the Beer Market in Malaysia
R. Ratneswary V. Rasiah, A.H. Baharom, Wilson Ow Chee Seong & Muzafar Shah Habibullah

Abstract:

This study uses time-series analysis to investigate the long-run relationships
and short-run dynamic interactions between beer consumption and the independent
variables of income level (Gross Domestic Product per capita), wealth (proxied by
money supply, M2) and total exports in Malaysia over the period 1961 to 2009. The
study applies the multivariate cointegration methodology to establish the possible
causal relations between these variables. The cointegration test and the vector error
correction model demonstrate the evidence of a positive long-run relationship
between beer consumption and the income level while wealth and exports have a
negative impact on beer consumption in Malaysia. The long-term elasticity coefficients
of the independent variables on beer consumption display relationships that are
theoretically grounded. Further innovative analysis using variance decompositions
lends evidence of the dominant influence of income level and exports in forecasting
variance in the consumption of beer in Malaysia. The study concludes with an
examination of policy implications of these findings.

Corporate Malaysia Is Heavily Engaged in Corporate Social Responsibility Activities. Are Consumers Aligned to These Engagements?
Thinavan Periyayya, G. Velayuthan Nair, Raduan Sharif Zachary Roland Anthony, Thanaseelan Rajasakaran & Vincent Wee Eng Kim

Abstract:

Corporate Malaysia has moved from the simplistic after-profit
philanthropic, corporate social responsibility (CSR) considerations in the 1970s to
sustainability strategies which have long-term positive impact on the bottom-line,
environment and community. Currently people-related and environmental CSR
dimensions dominate the Malaysian CSR scenario. A report indicates that 47% of
Malaysian companies are involved primarily in people-related CSR such as workplace
and employee enhancement programmes, closely followed by environmental CSR.
Corporate performance and activities must fit with stakeholder values. A mismatch
can result in programmes like CSR failing. This fit has been described as an alignment
of values. If consumers largely possess socially responsible consumer behaviour
(SRCB) characteristics, then this alignment is possible. Thus far there is no local
literature on SRCB traits amongst Malaysian consumers. Hence this exploratory,
quantitative study will primarily evaluate SRCB characteristics amongst Malaysian
consumers inclusive of their preference, attitude and purchase intent of CSR
practising business organisations. Questionnaires from 423 young adult Malaysians
were analysed and the mean score of 3.40 confirmed existence of SRCB characteristics;
attitude was positively and strongly correlated to SRCB. Factor analysis revealed
preference for CSR advocacy dimension followed by environment CSR.

Non-Muslim Response to Ar-Rahnu (Islamic Pawn Broking) Services
Amirul Afif Muhamat, Hardi Emrie Rosly & Mohamad Nizam Jaafar

Abstract:

The study aims to measure non-Muslim demand for Ar-Rahnu services
by excluding the religiosity aspect from the research framework. A survey was
carried out to obtain feedback on services offered to Ar-Rahnu clients around the
Klang Valley. Generally, respondents agreed that two study variables, that is, product
features and security, are relevant for the study. Positive correlation was found between
the variables and acceptance rate of the service. However, a regression analysis
indicated that only product features had a significant impact on the acceptance of
Ar-Rahnu. It is admitted that a bigger pool of respondents will provide for a better
representation of non-Muslim response to Ar-Rahnu services as the sample in this
study was small. The insight provided by this study into non-Muslim response
towards acceptance of Islamic pawning services could serve as a reference point for
other agencies to develop similar or more innovative financial products for the
benefit of the community.


2012
Volume 2
Issue 1

Determinants of the Relationship between Firm Leverage and Cash Flow: Evidence from Malaysian Companies
Marina Mustapha & Ng Huey Chyi

Abstract:

A firm’s investment activities are believed to be affected by its leverage and cash flow relationship. Previous empirical literature has so far identified a positive leverage-cash flow relationship under the signaling theory and a negative leverage cash flow relationship under the pecking order theory. This paper seeks to examine the determinants of firm leverage-cash flow relationship among companies in Malaysia. Theories have been reviewed to identify influential factors and further tested on 100 FBMKLCI multi-sector companies in the Malaysian bourse. Firms’ cash flow, liquidity, profitability, tangibility and growth represent the independent variables in the research model. Our study demonstrates that there is no significant relationship between leverage and cash flow. This might be due to different financing styles in developing countries, the effect of ease in accessing external funds with low cost, or firms’ financial flexibility to issue new debts rather than being dependent on internal funds. While firms’ tangibility and dividend payout does not affect firms’ leverage level, firms’ investment suggests a significant positive relationship with leverage only within the small firm size group. Firms’ profitability, liquidity and growth are also key predictors for leverage. Our results further support the pecking order theory, where negative liquidity-leverage relationship suggests firms with high liquid assets prefer to use internally generated funds to finance their investment activities.

Financial Integration and International Capital Mobility: Evidence from ASEAN
Muzafar Shah Habibullah, Sarinder Kumari & Baharom, A.H.

Abstract:

This study was conducted to explore the linkages between savings and investment and to further test whether there is any evidence of relationship between financial integration and international capital mobility. The empirical model to test the capital mobility hypothesis applied here employs the panel data approach to the basic regression model used by Feldstein & Horioka (1980). The study covers ASEAN5 and ASEAN+3 (with China, Korea and Japan included). The findings of this study corroborate with other studies that savings and investment are cointegrated and this can be interpreted as a manifestation of the inter-temporal budget constraint rather than evidence of low capital mobility. The long-run equilibrium between savings and investment is in line with the inter-temporal budget constraints of an open economy as current account deficits cannot be sustained indefinitely. The relatively high degree of capital mobility when China, Korea and Japan are included in the ASEAN5 sample suggests that there is great potential for integration in the financial markets in these eight economies in the future

Firm Heterogeneity and Trade Barriers – Analysis of India’s Trade
Archana Srivastava, Bikash Ranjan Mishra & Somesh Kumar Mathur

Abstract:

The paper attempts to analyse the effects of firm heterogeneity on India’s trade flows. It is based on the Chaney model of firm heterogeneity on gravity structure which states that firm heterogeneity distorts the gravity structure. Using cross-sectional data for the year 2009, this study proves the effect of firm heterogeneity on gravity structure with the help of simple ridge regression.

Measuring Service Quality in Luxury Hotels in Malaysia
Abaeian, V. & Khong, K. W.

Abstract:

Success in the hotel business depends on understanding the key factors in determining customer satisfaction. Nowadays, Malaysian hotels continue to compete intensely for a larger market share. Therefore, satisfying the guests during their first visit and prolonging their stay would develop customer loyalty and thereby build the desire to revisit Malaysia. There are a few studies which have investigated guests’ perceived service quality in Malaysia. Even fewer studies have empirically measured the dimensions of service quality in luxury hotels to provide a service quality index. Therefore, this study aims to fulfil this gap by applying the SERVQUAL model by Parasuraman, Zeithaml & Berry (1988). In order to fulfil the objectives of this study, a questionnaire was utilised to gather data from systematic sampling of 260 luxury hotel guests in the Klang Valley. The data collected were subject to multiple regression analysis. The research found that three dimensions of service quality have a positive impact on the hotel customers‘ perceptions, i.e. Tangibility, Reliability and Empathy. Subsequently service quality was measured and an index for service quality was derived.

Using Conjoint Analysis to Establish Consumer Preferences for Prawns in Malaysia
Ahmad Hanis Izani Abdul Hadi, Mad Nasir Shamsudin, Alias Radam & Jinap Selamat

Abstract:

Little is known about the demand for food attributes among consumers in Malaysia. This study presents results of an investigation into consumer demand and willingness to pay for prawn attributes. Conjoint analysis method was used to establish the trade-offs that Malaysian consumers make between freshness, type of catch, point of purchase and price in the purchasing of prawn. Based on our analysis, we found that the ideal prawn profile for 202 Malaysian consumers was fresh, marine prawn and sold at wet market. We also used the conjoint analysis method to estimate indirectly willingness to pay for the included attributes based on the current price of prawn which is RM9/kg. Based on our calculation, it is interesting to note that consumers are willing to pay an additional RM5.40/kg for the demanded prawn attributes. The results found may encourage producers or marketers to adjust their marketing efforts to consider the important prawn attributes demanded by Malaysian consumers.

Adoption of Islamic Banking Products and Services among Non-Muslim Consumers in Malaysia
Liew C. S. & Leong K.W.

Abstract:

Past research on Islamic banking tends to focus on customer satisfaction, service quality, and banking selection criteria. Little is known about the behaviour that could influence consumers into using Islamic banking products and services, especially non-Muslims. The aim of this paper is to examine the behaviour of non-Muslims in Malaysia towards the intention to use Islamic banking products and services by applying the theory of planned behaviour (TPB). A self-administered questionnaire was distributed to customers of retail banks in the capital city of Malaysia. Since this study focuses on non-Muslims, purposive sampling was used. A sample of 350 was obtained. Results show that attitude, subjective norm as well as perceived behavioural control have a positive effect on behavioural intention to adopt Islamic banking products and services.


2011
Volume 1
Issue 1

Financial Characteristics of Chinese and Thai Listed Small and Medium-Sized Enterprises
Kanitsorn Terdpaopong and Patrick Hutchinson

Abstract:

This paper presents the results of an empirical study on the financial
characteristics of Chinese and Thai small and medium-sized enterprises (SMEs).
The study sample was drawn from the Shenzhen Stock Exchange, China and the
Market for Alternative Investment of the Stock Exchange of Thailand, both of
which cater for SMEs. Non-financially distressed SMEs constituted the bulk of the
sample. A small, but important subset of financially distressed firms also constituted
part of the sample. Financial characteristics of all samples, in the form of fourteen
ratios, were analysed using parametric and non-parametric tests to determine the
extent of differences between Chinese and Thai SMEs. An important similarity
between Chinese and Thai SMEs was the low level of long-term debt. However,
there were significant differences between Chinese and Thai non-financially distressed
SMEs in terms of asset structure, total debt, asset turnover, interest, tax and profit.
There were fewer differences between Chinese and Thai financially distressed SMEs,
suggesting that the effects of distress are universal, the most notable significant
difference being the lower profit for Thai distressed SMEs due to higher interest
charges. These results have useful implications for stakeholders in SMEs in both
countries.

The Post-Crisis World: Can Asia’s Outperformance Be Sustained?
Richard A. Iley and Mervyn K. Lewis

Abstract:

In the aftermath of the financial crisis, Asia excluding Japan, led by China,
has played a major part in insulating the world economy from the more severe
ramifications of the crisis. It would seem that Asia has ‘come of age’, decoupling
from the languishing developed countries, and providing the larger share of global
growth since 2009. This article examines whether this ‘outperformance’ can be
sustained; it also discusses the challenges facing the region.

Foreign Exchange Rate Exposure of an Emerging Market: The Case of Indonesia
Mansor H. Ibrahim and Baharom Abdul Hamid

Abstract:

The paper examines the exchange rate exposure of the Indonesian national
market, the Indonesia Stock Exchange, for the 1988-2009 period using an
EGARCH(1, 1) model. The evidence indicates negative exposure of the Indonesian
market to variations in the rupiah-dollar exchange rate. Moreover, applying a rolling
regression technique, the exposure is found to be more negative in recent years.
Thus, the rupiah-dollar depreciation tends to have an adverse impact on the
Indonesian market. These results seem to be robust across specifications of the
mean equation. Finally, our exploratory exercises indicate the potential importance
of current account and financial variables particularly current account balance, financial
account balance, financial development, and financial openness in explaining changing
exchange rate exposure. However, their relations with the exposure seem intriguing
and may be more complex than we thought.

R&D Expenditure and Firm Performance: A Study of the Electrical and Electronics Industry in India
Pramod Kumar Naik, K. Narayanan and Puja Padhi

Abstract:

This study examines the impact of R&D expenditure on firm level
performance in the electrical machinery and electronics industry in India. The study
analysed the relative impact of R&D in the presence of other firm specific characteristics
like advertisement, firm size, age of the firm, technology imports, export of goods,
capital intensity, and financial leverage. The study uses firm level data for electrical
machinery and electronics industries obtained by Prowess database of Centre for
Monitoring Indian Economy for the period 1999 to 2008. Both OLS and fixed
effects models were employed to analyse the determinants of firm performance.
The results support the hypothesis of a positive relationship between R&D spending
and firm profitability. We also found that firm size, technology imports, capital
intensity and financial leverage are the other significant determinants of profitability.
The study also attempted to analyse only those firms incurring R&D expenditure to
observe the differences in firm performance. Overall, this study reflects the relative
importance of R&D expenditure on firm performance both as an entry barrier and
creating intangible assets for the firm.

The Nature of Collective Entrepreneurship
Noora Rantanen, Iiro Jussila and Sanjay Goel

Abstract:

In this theoretical paper, we aim to build on previous literature to introduce
a revised definition of collective entrepreneurship. We start with a brief introduction
to the origins of entrepreneurship, entrepreneurial action and collective
entrepreneurship research including definitions and approaches to these themes.
Subsequently, we present a framework to understand what kind of social and
psychological processes lie beneath manifested collective entrepreneurial action.

Dining 24/7: Exploring Factors Influencing Malaysians to Dine at ‘Mamak’ Hawker Stalls
Joseph Guo Shyong Wong and Catheryn Khoo-Lattimore

Abstract:

Despite the growing popularity of hawker food stalls in the Malaysian
society, there has not been any in-depth research conducted on a unique Malaysian
hawker experience – an ethnic food outlet known commonly among Malaysians as
‘mamak’ stalls. Hence, this study aims to fill this gap by searching for patterns, ideas
or hypotheses to answer specifically “why do Malaysians prefer to dine at mamak
stalls?” Twelve consumers at these stalls in the Petaling Jaya area, Malaysia were
selected and interviewed on a one-on-one basis using means-end chain theory and
laddering technique. Six constructs were uncovered with friends as the number one
reason for dining at these stalls. The information contained in this study should
help stall owners to effectively improve their businesses by removing, retaining and
adding items or services to better fulfill diners’ preferences. As for future researchers,
this study provides a more in-depth understanding of Malaysian consumer patronage
preferences as well as data to be tested as hypotheses on a larger scale.


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