COMPARISION BETWEEN MALAYSIA AND SINGAPORE

IN WEB SITE DEVELOPMENT AND IMPLICATION TO

THE INTERNET MARKETING TO ACHIEVE THE TOTAL
CUSTOMER SATISFACTON

A PhD research proposal

Name ??????

December 2011

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 COMPARISION BETWEEN MALAYSIA AND SINGAPORE IN WEB SITE
DEVELOPMENT AND IMPLICATION TO THE INTERNET MARKETING TO
ACHIEVE THE TOTAL CUSTOMER SATISFACTON

ABSTRACT
The impacts of Internet and ICT adoption and use are likely to be far reaching
with potential to fundamentally alter the life styles of businesses. To utilize the Internet
and ICT at the maximum point and much functional, Web site is created that lets the
marketer and customer meet together online. Web site is the frontier to connect the
marketer and customer on the Internet because Web site is the centre of the online
business activities. Web site development is very important to the Internet marketing
activities. High performance of the Web site development for the Internet marketing can
achieve total customer satisfaction. Therefore, the aim of this study is to compare
between Malaysia and Singapore in Web site development and its implication to the
Internet marketing to achieve the total customer satisfaction.

Two types of research methodology are used in this study, which are online based
methodology, which covers observation with CAST BOBBY 3.2 and questionnaires, and
traditional-based methodology, which covers two set of questionnaires. The data
collected were analysed using two statistical software applications. SPSS is used for the
coefficient of correlation and t-Test. AMOS 5 is used to conduct path analysis with
observed variables, which is used apart from the measurement model, focusing on the a
priori hypothesized relations between variables.

The importance of adopting the relevant and appropriate Internet and ICT has
influence the Web site development because both have shown the positive relationship.
Even though there is no certain standard in developing the Web site for Internet
marketing purposes, however, there is no difference in the Web site development
between Malaysia and Singapore. It shows that Web site development has a positive
impact on the Internet marketing activities. Internet marketing also has a positive impact
on total customer satisfaction. However, only 7% of Malaysian Internet users and 14%
of Singapore’s Internet users have shopped online. The main reasons given not for
purchasing online are related to the issue of security, privacy and trust. People also still
prefer bricks and mortar compared to clicks and mortar.

Even though customer behaviour and customer culture show positive relationship,
both have little impact on total customer satisfaction. However, the analysis of the
company or marketer samples shows that customer behaviour has a positive impact on
total customer satisfaction. Finally, Internet marketing has a statistically significant
positive impact on organisation’s performance in Malaysia and Singapore.

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BACKGROUND
The Studies on the Internet and ICT, Web site development, Internet marketing
and total customer satisfaction issues, both in Malaysia and Singapore are limited.
“Despite the importance of Internet shopping, very few studies have examined the
profiles of these shoppers in Asia. With the increasing importance of online sales and the
growing number of shoppers patronizing online stores, it is imperative for marketers,
online or offline, to develop a better understanding of the Internet surfers and shoppers.
In addition, it is also crucial to better comprehend their attitudes, pattern of information
acquisition and purchase decision-making process” (Kau, Tang and Ghouse, 2003).

The need for this kind of study arises because the use of the Web site as a
business medium is increasing day by day since everybody is excited going online. Thus,
the purpose of this study is to improve and better understand Web site development that
improves the application of Internet ,marketing and finally achieves total customer
satisfaction.

The selection of Malaysia and Singapore in this study is based on few aspects.
First, Malaysia and Singapore have some similarities like being multi racial, cultural,
multi religious and both are also historically-linked. From 1963 to 1965, Singapore had
also been part of Malaysia before becoming an independent country. Second, there are
few studies that have examined the Internet and ICT, Web site development, Internet
marketing and total customer satisfaction in Malaysia and Singapore.

RESEARCH PROBLEMS
INTERNET AND ICT

The Internet, which is at the centre of transformation, has made it possible to

globalize space, time and image at a pace unthinkable. However, the high level of
diffusion of ICT has thus far been concentrated in the industrialized countries. The
disparity in ICT infrastructure that exists between industrialized economies and emerging
economies is striking (Rao, 2001).

Many of the businesses that are piling onto the Internet may totally misunderstood
what this medium is all about (Willcocks, Graeser and Lester, 1998). Marketer cannot
succeed in exploiting Internet and ICT unless the right IT infrastructure and development
take place to meet the demands of the users. In the ICT area significant importance has
been placed on perceived usefulness as a significant contributor to attitudes and adoption
of new technology (French and O’Cass, 2001). “If a firm adopts ICT-based innovations
without a clear understanding of the scope and implications of that adoption, then not
enough attention may be paid to realigning business strategy. As a result, business
resources needed to achieve competitive advantage from ICT investment may not be
made available and the investment in innovation may in the end be wasted, or even be
detrimental to the firm’s pre-adoption competitive position” (Pires and Aisbett, 2002).

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 WEB SITE DEVELOPMENT

In the Web site development, there is no prescribe standard particularly in

creating the Web site in Malaysia and Singapore to develop the Internet marketing.
“Literature on Web theory is scanty, for two reasons. First, it is an emerging area and
many people are simply finding their way for the first time. Second, those who are at the
forefront of the Web, the design technologists are not typically inclined to sit back, reflect
on their practice, source relevant theory and write about it” (Day, 1997).

This situation will give the challenge to the Web developers to create a good Web
site. Good quality of Web site design is not only based on the developers\’s perception,
but also the customer acceptance and perception. Based on the customers’ perception,
“quality is whatever the customer says it is” (Day, 1997)

INTERNET MARKETING

There are few challenges need to be faced by the marketers when they are
involved in the Internet marketing. One of the challenges in the Internet Marketing is
how to attract visitors to the site and generate significant repeat visits (Hoffman, Novak
and Chatterjee 1995). Repeat visits provide an indication that customers are satisfied
with the Web site which in turn will lead to overall of total customer satisfaction.

Another issue related to Internet marketing that needs to be addressed is security,

especially related to credit card usage. Most consumers are afraid to divulge credit card
information over the Internet. Many potential consumers are reluctant to provide
personal information such as credit card numbers to E-Commerce outlets which clearly
indicates lack of trust in the transaction. According to one study of 9300 online
consumers, it was found that three out of five consumers do not trust Web merchants
(Jacobs, 1997).

The other problems related to slow growth on online trade are rising cost for
keeping the desired information, rapid technical change and information reliability. It
was identified that a relatively low 16% of the firms perceived that the Internet had failed
to achieve their desired objectives (Soh et. Al, 1997).

Online commerce makes up only 2% of retail sales worldwide, with 64% of

Internet users not trusting Web sites despite advertised privacy policies. 60% of potential
buyers do not complete purchases due to privacy concerns (Agence France Press, 2001).

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 TOTAL CUSTOMER SATISFACTION

Consumer’ acceptance of the Internet marketing in Malaysia and Singapore

compared to the still low though the revenue nearly increases year by year. In the real
situation, it is difficult to predict the customers’ buying behaviour.

Marketers may very easily predict what customers’ basic needs are, but it is very
difficult for them to predict the customers’ overall desire. This is due to their increasing
buying power. Though studies on consumer buying behaviour have been conducted,
their desires change all the time.

STUDY OF PROBLEMS
Specifically, this study tries to answer the following problems:

• Does the Web site development of Malaysia and Singapore show any statistically
significant difference?

• Does the Internet and ICT growth have a statistically significant positive
relationship with Web site development in Malaysia and Singapore?

• Does customer behaviour have significant positive relationship with customers

culture in Malaysia and Singapore?.

• Does the Web site development have a statistically significant positive impact on
the Internet marketing in Malaysia and Singapore?.

• Does the application of Internet marketing have a statistically significant positive

impact on total customer satisfaction in Malaysia and Singapore?

• Does customer culture have a statistically significant positive impact on total

customer satisfaction in Malaysia and Singapore?

• Does the Internet marketing have a statistically significant positive impact on

organization performance in Malaysia and Singapore?.

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 OBJECTIVES OF STUDY

The current study is comparative study between two neighboring countries,

Malaysia and Singapore. The overall objective of this study is to analyse the Web
site development and its implications on Internet marketing, towards the end and
achieving total customer satisfaction. The objective of this study are outlined in the
following lines.

i. To analyse whether there is any statiscally significant difference exists in the

Web site development between Malaysia and Singapore.
.
ii. To anlyse the relationship between application of Internet and ICT with
reference to Web site development in Malaysia and Singapore.

iii. To analyse the relationship between customer behaviour and customer

culture in Malaysia and Singapore.

iv. To anlyse the impact of Web site development on the Internet marketing in
Malaysia and Singapore.

v. To analyse the impact of the Internet marketing on total customer

satisfaction in Malaysia and Singapore.

vi. To anlayse the impact of customer behaviour on total customer satisfaction

in Malaysia nas Singapore.

vii. To analyse the impact of customer culture on total customer satisfaction in

Malaysia and Singapore.

viii. To anlyse the impact of the Internet marketing on the organization

performance in Malaysia and Singapore.

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