UNIVERSITI TEKNOLOGI MARA

DESTINATION TRUST AND LOYALTY

TOWARDS DUTY-FREE SHOPPING IN
LANGKAWI: THE MEDIATING ROLE OF
TOURISTS’ PERCEIVED VALUES

NUR ATIKAH BINTI MD FADZIL

i
ABSTRACT

Duty-free shopping has been acknowledged as a primary motive amongst local

tourists, and the COVID-19 endemic contributed to an upward trend in the segment,
especially in Langkawi. Recently, the duty-free and travel retail industry has been
rapidly growing as phenomenal market trends that serve as a significant market driver
for shopping activities in tourism destinations. In connection with the functionality of
duty-free shopping activities for tourist attraction, previous studies have revealed that
the distinct shopping environment in duty-free shops has significant capabilities to
enhance expectations and evoke positive emotions among tourists since it exhibits
modern interiors that emit luxurious atmosphere, new products, famous brands, strong
reputations, and fashionable trends. Thus, this research aims to investigate significant
elements of Langkawi duty-free shopping from the shopping destination trust and
tourist perceived value aspect to discover its impact on destination loyalty. Descriptive
research was carried out where data was collected using quantitative methods via self-
administered questionnaires. The analysis was performed using PLS-SEM, with the
proposed model validated using the Smart PLS software. A Duty-Free Shopping and
Perceived Values Model were proposed. The findings suggest that Liking is the most
influential aspect of Shopping Destination Trust (SDT) influencing tourists' perceived
value and destination loyalty. In Malaysia, perceived values in terms of emotional,
social, and price/money directly impact shopping destination loyalty.
Multidimensional perceived values partially mediated the relationship between trust
and destination loyalty for duty-free shopping. These findings are hoped to benefit
society, academia, government, industry, and the economy in specific measures.

Keywords: COVID-19 Endemic, Duty-free Shopping, Destination Loyalty, Tourist’s

Perceived Values, Trust

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 ACKNOWLEDGEMENT

In the name of Allah, the Most Gracious and the Most Merciful.

All praises to Allah. Indeed, I was graced with His blessing for the completion of this
thesis. I thank God for all the opportunities, trials, and strength that have been
showered on me to finish writing this thesis. My humblest gratitude to the holy
Prophet Muhammad (Peace be upon him), whose way of life has been continuous
guidance for me.

My most profound appreciation goes to Prof. Dr. Salamiah A. Jamal and Assoc. Prof.
Dr. Azila Azmi, my supervisors, for their continuous support of my master’s study
and research, their patience, motivation, enthusiasm, insightful comments, and
suggestions. Their vast wisdom and wealth of experience have inspired me throughout
my studies.

My sincere thanks also go to all of the amazing opportunities that UiTM has provided
me, especially for allowing me to grow as a graduate student with academic research
experience. I would especially like to thank my involved groupmates for the
stimulating discussions, sleepless nights, and amazing projects and events we worked
on before deadlines. Also, close friends whom I crossed paths with along my life
journey, for all the warm supporting words during the hard times I had encountered
over the past 12 months. 

Words cannot express how grateful I am to my family members, especially my

beloved mother and father, for all sacrifices that they’ve made on my behalf. My
dearest siblings, Syahril, Hafis, Faris and Balqis, for giving me the drive to become a
better person. Their prayers for me were what sustained me so far.

Last but not least, I dedicated this piece of victory to my parents for their vision and
determination to educate me.

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 TABLE OF CONTENTS

Page

CONFIRMATION BY PANEL OF EXAMINERS i

AUTHOR’S DECLARATION ii
ABSTRACT iii
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF TABLES viii
LIST OF FIGURES x
LIST OF SYMBOLS xii
LIST OF ABBREVIATIONS xiii

CHAPTER ONE: INTRODUCTION 1

1.1 Introduction 1
1.2 Research Background 1
1.3 Problem Statement 4
1.4 Purpose of the Study 6
1.5 Research Objectives 6
1.6 Research Questions 7
1.7 Significance of the Study 7
1.7.1 Practical Significance 7
1.7.2 Theoretical Significance 7

CHAPTER TWO: LITERATURE REVIEW 9

2.1 Introduction 9
2.2 Shopping Tourism in the Era of Post-COVID-19 Pandemic 9
2.3 Duty-Free Sector in Shopping Tourism 10
2.4 Destination Trust 11
2.5 Shopping Destination Trust (SDT) 12
2.6 Perceived Value 14
2.7 Destination Loyalty
2.8 Conceptual Framework
v
2.9 Hypotheses of The Study

CHAPTER THREE: RESEARCH METHODOLOGY19

3.1 Introduction19
3.2 Research Design 19
3.3 Population and Sample
3.3.1 Target Population
3.3.2 Sample Size
3.3.3 Sampling Technique and Design
3.4 Research Instrument
3.4.1 Questionnaire Design
3.4.2 Part A: Respondent’s Demographic Profile
3.4.3 Part B: Respondent’s Travel Activities
3.4.4 Part C: Shopping Destination Trust (SDT) Components
3.4.5 Part D: Perception of Values on Duty-Free Shopping
3.4.6 Part E: Shopping Destination Loyalty Components
3.4.7 Scale Measurement for Each Variable
3.5 Pilot Test
3.6 Data Collection
3.7 Data Analysis

CHAPTER FOUR:  FINDINGS AND DISCUSSIONS

4.1 Preface
4.2 Descriptive Analysis
4.2.1 Respondent’s Demographic Profiles
4.2.2 Respondent’s Travel Activities
4.3 Inferential Analysis
4.3.1 Assessment of Outer Model
4.3.2 Construct Validity
4.3.3 Convergent Validity
4.3.4 Discriminant Validity

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4.4 Assessment of Inner Model 49
4.5 Assessment of Structural Model 51
4.5.1 Hypothesis Testing for H1, H2 & H3 51
4.5.2 Hypothesis Testing for H4: Mediation using Indirect Effect 56
4.6 Effects Size 59
4.7 Predictive Relevance 60
4.8 Discussions on The Findings of The Study 62
4.8.1 The Correlation Between Shopping Destination Trust with Shopping
Destination Loyalty in Langkawi 62
4.8.2 The Correlation Between Shopping Destination Trust with Perception of
Values amongst Shopping Tourists in Langkawi 66
4.8.3 The Correlation Between Perception of Values amongst Shopping
Tourists with Shopping Destination Loyalty in Langkawi 67
4.8.4 The Mediating Role of Perceived Values Towards Trust and Shopping
Destination Loyalty. 68

CHAPTER FIVE: FINDINGS AND DISCUSSIONS 70

5.1 Preface 70
5.2 Summary of the Study’s Findings 70
5.3 Recapitulation of The Study Findings 71
5.3.1 Research Question One 71
5.3.2 Research Question Two 72
5.3.3 Research Question Three 73
5.4 Hypotheses Testing 73
5.5 Limitations and Suggestions for Future Research. 74
5.6 Recommendations and Conclusion 75

REFERENCES 76
APPENDICES 89
AUTHOR’S PROFILE 98

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 LIST OF TABLES

Tables Title Page

Table 3.1: Filter Questions for Screening Purpose 24
Table 3.2: Constructs & Items for Respondents Demographic 25
Profile
Table 3.3: Constructs & Items for Respondent’s Travel 26
Activities
Table 3.4: Constructs & Items for Shopping Destination Trust 28
Components
Table 3.5: Constructs & Items for Perception of Values on Duty- 29
Free Shopping.
Table 3.6: Constructs & Items for Shopping Destination Loyalty 31
Components.
Table 3.7: Scale Measurement for Each Variable 32
Table 3.8: Cronbach’s Alpha Values for Each Construct 34
Table 4.1: Respondents’ Profile 37

Table 4.2: Respondent Distribution based on Academic 38

Qualification
Table 4.3: Respondent Distribution based on Employment & 38
Monthly Income
Table 4.4: Respondent’s Distribution based on Frequency of 39
Visiting, Main Shopping Items and Companion during
Visitation to Langkawi
Table 4.5: Respondent’s Distribution based on 42
Travel Period & Shopping Expenses (Excluding
Accommodation and Transportation)
Table 4.6: Outer Loadings and Cross Loadings 44
Table 4.7: Measurement Model for Convergent Validity 45
Table 4.8: Discriminant Validity Test: Fornell-Larcker criterion 48
Table 4.9: Coefficient of Determination 49
Table 4.10: Assessing Path Structural Coefficient on 51
Hypothesised Influence of Shopping Destination
Trust to Shopping Destination Loyalty in Langkawi

Table 4.11: Assessing Path Structural Coefficient on 52

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 Hypothesised Influence of Shopping Destination
Trust to Perceived Values of Duty-Free Shopping
in Langkawi.

Table 4.12: Assessing Path Structural Coefficient on 54

Hypothesised Influence of Perceived Values on Duty-
Free Shopping to Shopping Destination Loyalty in
Langkawi.

Table 4.13: Assessing structural path coefficients with mediating 56

effects from multi-dimensional of Perceived Values.

Table 4.14: The effect size of Shopping Destination Trust 59

variables on Perceived Values variables.

Table 4.15: The effect size of Perceived Values Variables on 60

Shopping Destination Loyalty variables

Table 4.16: The effect size of Perceived Values Variables on 61

Shopping Destination Loyalty variables

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 LIST OF FIGURES

Figures Title Page

Figure 1.1: Chart: Malaysia's Domestic Tourism 3
Expenditure, 2008 – 2020
Figure 1.2: Performance Outlook of Hotel Occupancy Rates 6
in Langkawi for 2021-2029
Figure 2.1: Proposed Conceptual Framework 17
Figure 3.1: Unit of Analysis 20
Figure 3.2: Domestic Tourism in Kedah 2020 21
Figure 3.3: Online Sample Size Calculator for SEM 23
Figure 3.4: Telegram Page of The Targeted Community for 87
Sample: “Langkawi Info Semasa.”
Figure 3.5: Preface of the Self-Administered Questionnaires 87
for the Survey
Figure 3.6: Questionnaires Distribution to The Targeted 88
Online Community
Figure 3.7: Reliability Test of Constructs Items using SPSS 89
software
Figure 3.8: Google Forms’ Required Option to Avoid 89
Missing Response
Figure 4.1: Summary Responses for Gender of Respondents 90
Figure 4.2: Summary Responses for Age of Respondents 90
Figure 4.3: Summary Responses for Marital Status of 90
Respondents
Figure 4.4: Summary Responses for Academic Qualification 91
of Respondents
Figure 4.5: Summary Responses for Employment of 91
Respondents
Figure 4.6: Summary Responses for Monthly Income of 91
Respondents
Figure 4.7: Summary Responses for Frequency of Visiting 92
Langkawi amongst Respondents
Figure 4.8: Summary Responses for Main Shopping Items at 40

x
 Duty-Free Shops in Langkawi
Figure 4.9: Summary Responses for Companions During 41
Visitation to Duty-Free Island, Langkawi
Figure 4.10: Outer Model Assessment 47
Figure 4.11: Inner Model Assessment 50
Figure 4.12: Graphical representation of inner and outer model 58
after bootstrapping
Figure 4.13: Tourist’s Review of Duty-Free Shopping in 63
Langkawi
Figure 4.14: Tourist’s Review of Duty-Free Shopping in 64
Langkawi Towards Its Integrity Aspect
Figure 4.15: Tourist’s Review of Duty-Free Shopping in 64
Langkawi Towards Its Benevolence Aspect Pre-
Pandemic Of COVID-19.
Figure 4.16: Tourist’s Review of Duty-Free Shopping in 65
Langkawi Towards Its Benevolence Aspect
During Endemic Of COVID-19.
Figure 4.17: Tourist Review on Price Aspect and Its Influence 67
Towards Destination Loyalty at Duty-Free Shops
in Langkawi
Figure 4.18: Confirmatory Factor Analysis (CFA) Results for 92
The Study
Figure 4.19 Construct Reliability and Validity Results for The 93
Study
Figure 4.20 Coefficient of Determination Assessment Results 93
Figure 4.21 Bootstrapping Results for H1 93
Figure 4.22 Bootstrapping Results for H2 & H3 94
Figure 4.23 Bootstrapping Results for H4 94
Figure 4.24 Effect Size Assessment Results 94

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 LIST OF SYMBOLS

Symbols

A Number of PLS or PCA components in the model and the

number of selected latent variables in the model

a Number of the PLS or PCA component

b PLS regression coefficient

F² Effect size

R² R Square statistics explain the variance in the endogenous

variable explained by the exogenous variable(s).

Q² Predictive Relevance

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 LIST OF ABBREVIATIONS

Abbreviations

AB Ability

BN Benevolence

COVID-19 Coronavirus disease (COVID-19) is an infectious

disease caused by the SARS-CoV-2 virus

DL Destination Loyalty

EV Emotional Value

FVQ Functional Value in Quality

FVM Functional Value in Money

GDP Gross Domestic Product

INT Integrity

LK Liking

PERVAL Multi-dimensional Perceived Values Model

PLS-SEM Partial Least Square Structural Equation Modelling

SDT Shopping Destination Trust

SV Social Value

T20, M40, B40 Different income groups: Top 20% (T20), Middle
40% (M40), and Bottom 40% (B40).

UNWTO United Nations World Tourism Organization

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 CHAPTER ONE

INTRODUCTION

1.1 Introduction

This chapter describes the genesis of the research, including the study's
background, problem statement, research aims, research questions, and the
significance of the study on tourists' perceptions of the value of duty-free shopping.

1.2.1 Research Background

The traditional interpretation of the scope of tourism was limited to the act of
sightseeing and seeking a unique experience from the customs of different regions or
countries; however, much development in tourism has resulted in an evolution that
embraces diversity in its concept (Wong & Wan, 2013). Foundational to this, travel
agencies have started to create various types of travel packages to tune in the diversity
in tastes (Choi et al., 2015), which include shopping as a clear tourist trend (Buliah et
al., 2018). The development of tourism activities in one's destination challenges the
idea of indulging in the familiarity of the unique culture of the visited country and
gaining satisfaction or pleasure through the act of purchasing (Way & Robertson,
2013). On the other hand, the proliferation of online duty-free retailers is a promising
development for the duty-free retailing market (Technavio, 2022).

The desire for shopping, which complements the desire for rest, deviation from
routine, and perceived challenges, has accelerated a significant priority among tourists
to travel, with shopping as the primary motive (Kim et al., 2011; Rabbiosi, 2011).
Therefore, shopping tourism has been acknowledged as an essential component of the
economic system and plays a pivotal role in sociocultural aspects (Choi et al., 2015).
Complementary to this, Duty-free and travel retail spending in the Asia Pacific region
illustrated its fundamental value towards the economic impact of shopping tourism
since it has generated almost US$7.6 billion in direct GDP and 140,900 direct jobs
(Duty-Free World Council, 2015). This evidence suggests that economic growth in the
Asia-Pacific region benefits greatly from the duty-free and travel retail industry,
justified by the prompt employment and activities it facilitates towards a broad
economic activity, particularly in travel and tourism. Prior to this, the 1960s, who had

14
foreseen the expansion of tax-free shopping options and its convergence with the
tourism sector, duty-free shopping has continued to penetrate a diverse market in
parallel with tourism development over time (LookOutProTourism, 2019).

Subsequently, in Malaysia, duty-free shopping has been highlighted as one of the

government incentives and tourism niche products in attracting tourists to travel for
shopping motives. It was parallel with the establishment of Secretariat Shopping
Malaysia (SSM) in 2002, which aims to integrate efficient efforts in
positioning Malaysia as a shopping hub (Tourism Malaysia Corporate Site, 2021).
Indeed, it has been emphasized that downtown duty-free retail is a key growth area for
duty-free operators in the Asia Pacific region for several reasons (Duty-Free World
Council, 2015). 

In Malaysia, this interacts with the outcome of the downtown duty-free shop
operated by Dufry and centrally located in Kuala Lumpur, where operations were
initiated in 2018. The initiatives of the store in offering world-class brands and local
Malaysian products designed to capture the attention of the Chinese traveller have
resulted in nearly 3 million Chinese tourists visiting Malaysia in that year (Tourism
Malaysia Corporate Site, 2021). Remarkably, there are a lot of designated shopping
zones in Malaysia with duty-free goods. Many of the country's entry/exit points, such
as airports, and tourist destinations, such as the picturesque islands of Langkawi and
Labuan, feature duty-free shops. (Tourism Malaysia Corporate Site, 2021). 

Simultaneously, duty-free shopping has been acknowledged as a primary motive

amongst local tourists in Malaysia, and the post-COVID-19 pandemic contributed to
an upward trend in the segment, especially in Langkawi. Figure 1.1 illustrates
Malaysia's Domestic Tourism Expenditure from 2008 – 2020, which reported that
shopping registered the highest percentage share of the total expenditure made by
domestic visitors for their trip, with a share of 52.6 per cent (2019: 37.8%).
Meanwhile, it is reported that Kedah is amongst the five top states of domestic arrival
(10.1 million) during the post-COVID-19 pandemic, which accounted for the highest
percentage for shopping purposes and expenditures with 4.3% and 52.6%,
respectively. (Department of Statistics Malaysia, 2020)

15
 Figure 1.1: Chart: Malaysia's Domestic Tourism Expenditure, 2008 – 2020
Source: Department of Statistics Malaysia, 2020

Somewhat more significantly, AirAsia braced this opportunity to restore the

shopping destination trust in Langkawi through its collaboration with the Langkawi
Development Authority towards the enhancement of duty-free experience using their
travel mall platform (Bernama, 2021). Regardless, trust is prominently viewed as a
crucial value compared to purpose in the valuation of choosing a shopping destination
(Choi et al., 2016). Although three elements from the dimensions of Shopping
Destination Trust (SDT) such as “ability,” “transaction security,” and “benevolence,”
have been revealed to be the most significant to dominate trust and influence
perceived values of shopping tourism (Choi et al., 2018), these elements are yet to be
confirmed on the setting of duty-free shopping. Therefore, the researcher for this study
holds the view and proposed that the perceived value of duty-free shopping is an
important component of shopping tourism and plays a key role in generating
destination trust and loyalty in Malaysia. The scope of this study was priorly
motivated by the limited studies that examined the impact of COVID-19 on travel
habits focusing on localism (Machová et al., 2021).

16
1.3 Problem Statement

The proliferation of online duty-free retailers is a promising development for the

duty-free retailing market (Technavio, 2022). Brands that cater to consumers specific
needs by offering individualised products and services see increased customer loyalty
(Nehir, 2022). Zhen et al (2016) addressed that when modelling the acquisition of
various product types separately, the identified impacts of factors on shopping
behaviour are inconsistent. It's clear that more data are needed to fully grasp the
dynamics of the online retail sector during the COVID-19 epidemic (Nguyen &
Nguyen, 2021) and how it contributes to the improved quality of life. Yet, tourism
destinations in the era of the COVID-19 pandemic have suffered from a reality that
fewer visitors, and this has become a primary focus for shopping management to
identify the best tactics to break the relationship between the dread of COVID-19 and
the faith in shopping destinations (Martini, 2022). Until recently, far too little attention
has been paid to the link between shopping environment attributes and shopping
destination trust among shoppers (Elmashhara & Soares, 2022). If the debate is to be
moved forward, a better understanding of tourists' perceived values of duty-free
shopping needs to be developed.

Regardless, the severity of the COVID-19 pandemic impacts possesses

changes in the shopping industry where the retail sectors have become more
competitive (Moon et al., 2021) and heightened the perceptions of the shopping
experience in tourist destinations (Abuelenain, 2021). Although shopping is
considered an alternative for tourism patterns in times of crisis and has been
stimulated as one of the main tourist attractions for decades, studies on changes in
offline shopping patterns during times of profound external impact, such as the
COVID-19 pandemic remain scarce (Toubes et al., 2021).

While the duty-free shopping environment tends to be more concerned about

its influence on destination choice, certain issues that stem from the perceived
shopping risk among tourists have a very definite influence on the tourist's perceived
value and destination choice (Choi et al., 2018). Hence, recent research has suggested
that national tourism organizations (NTOs) and destination marketing organizations
(DMOs) need to discover the components of shopping destination trust (SDT) in an
effort to minimize risk and increase destination loyalty. Remarkably, although there is

17
a significant relationship between shopping risk and destination choice, Choi et al.
(2018) argue that the relationship between trust and perceived value has received
limited attention in shopping and tourism-related research, especially in the context of
duty-free shopping. Debate continues about the best strategies for managing trust
since a destination's reputation as a safe tourist place may be seriously harmed if that
trust is betrayed. (Liu et al., 2019). Not to mention, problems include local sellers
overcharging tourists for their wares or engaging in other forms of harassment at
certain destinations have contributed to the increase in trust crises (Chang, 2014),
particularly among shopping tourists.

More importantly, research on duty-free shopping to date has tended to focus

on consumers' behaviors of shopping at duty-free shops in airports (Ahmed, 1996;
Albayrak et al., 2016; Hobson, 2000; Kim et al., 2019; Lee et al., 2021; Omar & Kent,
2001; Rosenbaum & Spears, 2006) and it has been mostly restricted to limited
comparisons for different destinations. Thus, it can be viewed that previous
researchers have yet to treat the fundamental value of duty-free shopping as a niche
for shopping tourism in much detail. El-Adly et al. (2015) go on to state that many
contributions to tourist's perceived value have focused on such value dimensions as
utilitarian value and hedonic value (e.g., Stoel et al., 2004; Michon & Chebat, 2004;
Michon et al., 2007, 2008; Allard et al., 2009; Jackson et al., 2011) but failed to pay
close attention to other dimensions that may assist in understanding the complete
shopping experience.

The generalisability of much-published research on perceived value in

shopping tourists needs to be revised. To that extent, scholars have a consensus that
the mediating role of customer-perceived value in building brand loyalty in the
shopping context still needs to be investigated (Nikhashemi et al.,2016). Nevertheless,
recent evidence by Xu et al. (2022) thus far has linked the indirect effect between
duty-free destination policy and travel intention through perceived value, wherein the
scholars suggested that tourist destinations should increase their perceived value via
comprehensive marketing tools.

Figure 1.2 demonstrates the performance outlook for occupancy level in

Langkawi for the next five years. The reopening of The Andaman and the entry of
more luxury and upper upscale resorts over the next five years indicates a continuous

18
positive prospect for the island (Market Report Langkawi, Malaysia Top-Tier Hotel
Market, 2021). Looking at the localism pattern for shopping tourism and the
projection of the 2025 occupancy rate based on the 2019 (pre-COVID) occupancy
level, Langkawi demonstrates a significant destination for a duty-free shopping
destination in the country. To the best of the researcher's knowledge, previously
published studies are limited to local surveys with findings reported on shopping
trends before COVID-19. Considering the profound changes in needs and demands
brought by the pandemic (Machová et al., 2021), According to the latest market
analysis report by Technavio, the potential growth gap between 2021 and 2026 for the
duty-free retailing market is USD 6.04 billion. The report also projects the market will
expand at a compound annual rate of growth (CAGR) of 8.56% throughout the
forecasted time frame. The COVID-19 pandemic is having a measurable effect on
shoppers' spending habits, frequency of browsing, and preference for high-end
products in duty-free shops (Holland, 2020). Thus, empirical research investigating
post-COVID-19 duty-free shopping behavior is very much needed.

Figure 1.2: Performance Outlook of Hotel Occupancy Rates in Langkawi

for 2021-2029

1.4 Purpose of the study

This study was intended to address the post-COVID-19 shopping behaviors

concerning the changes in destination trust and value perceptions amongst tourists
during their consumption of duty-free shopping and its influence on destination
loyalty. Thus, specifically, this research aims to investigate duty-free shopping from
the tourist destination trust aspect and how it impacted perceived value and loyalty on
the duty-free island of Langkawi. This study examines post-COVID-19 shopping

19
destination trust components and their influences on shopping destination loyalty in
Langkawi.

1.5 Research Objectives

RO1: To examine the influence of tourist shopping destination trust and perceived
value on destination loyalty towards Langkawi duty-free shopping.

RO2: To examine the mediating effect of tourist perceived value on the relationship
between shopping destination trust and destination loyalty towards Langkawi duty-
free shopping.

1.6 Research Questions

RQ1: How do tourist shopping destination trust and perceived values influence
destination loyalty toward Langkawi duty-free shopping?

RQ2: Does a tourist’s perceived value mediate the relationship between shopping
destination trust and destination loyalty towards Langkawi duty-free shopping?

1.7 Significance of the Study

The significance of the study can be categorized into practical and theoretical
significance.

1.7.1 Practical Significance

From the practical perspective, this research is proposed to provide an

important opportunity for the managers of duty-free shops to advance the
understanding of what values are emphasized by local tourists in Malaysia who are
interested in duty-free shopping as a driver of impact on their economic benefits. In
addition, this study is proposed to provide an in-depth perspective on the priority of
values considered by shopping tourists given the changing needs and demands during
this COVID-19 season. For that reason, this study intends to provide insightful
information for duty-free shops’ management to enhance their competitive advantages
and accelerate their sales.

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1.7.2 Theoretical Significance

From the academic perspective, the researcher believes this study is significant
because far too little attention has been paid to this topic in the setting of duty-free
shopping in Malaysia. Therefore, this study aims to contribute to this shopping
tourism area of research by exploring the crucial dimension of perceived value
amongst tourists towards duty-free shopping in Malaysia and its influence on
destination loyalty. To that end, this study intends to offer some important insights for
future researchers in efforts to enhance the diversity in shopping tourism research.
Significantly, the researcher aims to examine the accuracy of dimension in perceived
value that influences destination loyalty in Malaysia through this study as the
knowledge about duty-free shopping, a niche of shopping tourism, seems to be
scattered and not integrated in Malaysia’s area setting.

CHAPTER TWO

LITERATURE REVIEW

21
2.1 Introduction

This chapter outlines the literature on the multi-dimensional Perceived Value

(PERVAL) model toward Shopping Destination Loyalty for shopping tourism in
Malaysia. This chapter also outlines the characteristics of attributes in each dimension
for the Shopping Destination Trust (SDT) components adapted from (Choi et al.,
2016; 2018) through the study of trust on shopping tourism destinations in Hong
Kong.

2.2 Shopping Tourism in the Era Post-COVID-19 Pandemic

Shopping has been recognized as one of the leading vital activities that played a
significant role in motivating travel trips for decades (Choi et al., 2018). Despite the
potential of shopping as a motivator for travel and its emerging economic rise in
tourism, there are gradual changes in the scale and the scope of travel retailing
(Hobson, 2000). Therefore, as early as 1991, the shopping environment sparked
curiosity among researchers concerning its function as a tourist attraction at certain
tourism destinations (Verbeke, 1991). Thus, studies on tourist shopping environments
within a probe inspection of destinations within specific retail environments have
navigated a clear direction for the researchers to reflect on the competitive advantages
of tourist attractions (Ahmed, 1996; Cohen, 1995; Verbeke, 1991; Kendall & Kreck,
2016). Surprisingly, moving forward in the 2000s, the shopping environment in tourist
destinations has received little intention among researchers, which resulted in a few
publications on the pertinent area (Choi et al., 2015).

In the Post COVID-19 pandemic era, Naeem (2020) highlighted that buyers have a
growing propensity to make impulsive purchases when purchasing things believed to
avoid infection with coronavirus disease as they could minimize their outdoor time.
Given the severity of COVID-19 impacts on retail businesses that executed
devastating results, such as the physical stores either going out of business or
permanently closing, previous shopping habits amongst shopping tourists notably
cannot be restored and maintained (Eger et al., 2021). In addition, the COVID-19
pandemic may influence visitor behavior which due to the difficulty of avoiding
COVID-19 infection during a journey, many tourists abandon their scheduled
vacations out of fear of potential danger (Abbas et al., 2021).

22
 Subsequently, it is possible to partially explain the results of COVID-19's severity
by invoking the ripple effect (e.g., Kasperson et al., 1988). This phenomenon indicates
that individuals' risk perceptions and negative feelings regarding a crisis are
heightened the closer they are to the epicenter of COVID-19 (Slovic, 1987; Kasperson
et al., 1988; Barsade, 2002). The term "ripple" is used to describe the effect of a risk
event inside a risk amplification framework (Kasperson et al., 1988), such as the
splash made by a stone dropped into a still body of water (i.e., the point of contact is
most volatile, and the surrounding water gradually becomes less volatile as the
distance from the point of contact increases). In addition, studies have found that
people who live closer to the epicenter of the COVID-19 epidemic have a higher risk
perception and are more worried about the disease than those who live further away
(Wen et al., 2020).

2.3 Duty-Free Sector in Shopping Tourism

Shopping tourism is a rapidly growing sector in the industry and has been
highlighted as a driving force for travel decision-making (UNWTO, 2014).
Foundational to this, the duty-free and travel retail sectors are fast becoming a key
instrument in providing economic benefits for one’s country through opportunities for
employment and direct GDP (Duty-Free World Council, 2015). The area of duty-free
shopping viewed from the perspective of leisure pursuit in shopping tourism research
proved an important literary genre in the early 1950s community (Kim et al., 2011).
Nonetheless, the duty-free and travel retail industry is rapidly growing as phenomenal
market trends serve as a significant market driver for shopping activities in tourism
destinations (Statista, 2021). Comprehensively, the synergies between these two have
radiated imperative economic impacts on national aviation, travel, and tourism
industries (Duty-Free World Council, 2015).

In connection with the functionality of duty-free shopping activities for tourist

attractions, previous studies have revealed that the distinct shopping environment in
duty-free shops has significant capabilities to enhance expectations and evoke positive
emotions among tourists since it exhibits modern interiors that emit a luxurious
atmosphere, new products, famous brands, strong reputations, and fashionable trends
(Omar & Kent, 2001). Thus, it is evident that the shopping environment is a
determining factor indecision-making to travel to a certain destination (UNWTO,

23
2018). However, previous studies have yet to deal with the emerging factor of the
shopping environment becoming a significant influence on destination choice.

Traditionally, the urge to shop as a motivator to travel, advocated by a travel

researcher in 1976, has been subscribed to the belief of shopping tourists as a
significant support component for the tourism industry, given their contributions to the
tourist destination’s economy (Kent et al., 1983). In the past two decades, several
researchers have sought to determine the consumer behaviors among shopping tourists
at duty-free shops during travel (Choi & Park, 2018; Hobson, 2000; Kim et al., 2019;
Kim et al., 2011; Lee et al., 2021; Lee et al., 2017; Lyu, 2018; Martín et al., 2019;
Omar & Kent, 2001; Rosenbaum & Spears, 2006; Strekalova et al., 2020). However,
there is increasing concern that some perceived shopping risks among shopping
tourists are disadvantaged in influencing purchasing behaviors (Choi et al., 2018).

2.4 Destination Trust

Tourism destination image is simultaneously connected with tourist trust. Trust

toward a destination allows tourists to create a positive destination image upon their
visitations (Chew & Jahari, 2014; Han & Hyun, 2013). Commenting on trust crisis
incidents, many scholars have pointed out that it may result in tourists having doubts
about the destination's security and cause them to have a poor impression of the area
(Chew & Jahari, 2014; Sönmez & Graefe, 1998). The first serious discussions and
analyses of trust amongst shopping tourists emerged from the introduction concept of
the shopping tourism destination trust's scale through a multi-staged approach by Choi
et al. (2016), wherein they proposed a trust scale consisting of benevolence, integrity,
competence, predictability, ability, transaction security, and information content.
Trust and perceived (shopping) risks, particularly through intangible
consumption of experience derived from electronic commerce, such as internet
shopping thus far, have been linked to the uncertainty that arises from the lack of
interactions between sellers and consumers (Choi et al., 2018). Prior to this, Choi et al.
(2016) have provided reliable proof that ability, integrity, benevolence, and liking
were found to be the most critical dimensions of SDT for trust, which can be applied
to Langkawi duty-free island destinations in Malaysia. Those places that are both
familiar and meaningful to a tourist are likely to be trusted travel destinations. The
argument here is that visitors will be more likely to return if they have a good

24
impression of the place. Given that the independent variable of trusts in this proposed
study adapted the components of Shopping Destination Trust (SDT), the following
hypothesis are proposed:

H1(a): SDT: Ability positively influences Destination Loyalty towards Langkawi

duty-free shopping.

H1(b): SDT: Integrity positively influences Destination Loyalty towards Langkawi

duty-free shopping.

H1(c): SDT: Benevolence positively influences Destination Loyalty towards

Langkawi duty-free shopping.

H1(d): SDT: Liking positively influences Destination Loyalty towards Langkawi

duty-free shopping.

2.5 Shopping Destination Trust (SDT)

The effect of trust on purchase intent as mediated by value perception was

confirmed by Kim, et al (2012) for both new and existing customers. In a similar vein,
Ponte et al (2015) discovered that customers' perceptions of a product's value were
enhanced when they trusted the website selling it. This research is predicated on the
hypothesis that SDT has a beneficial effect on shoppers' perceptions of their worth
while on vacation. Tourists may feel more at ease browsing the aisles if they have
faith in the safety of the stores they plan to visit. To increase the perceived value of a
shopping trip, a tourist destination must first be seen as a safe and secure place to shop
which explains why trust is utilized as independent variable in this study.

Shopping risks that evolved among shopping tourists from unprecedented

threats of COVID-19 need to be managed wisely so that retail businesses can continue
to prosper in the convergence of tourism activities at the destination (Yüksel &
Yüksel, 2007). Prior to the efforts in minimizing shopping risks through trusts, Kim et
al. (2008) and Lim (2003) attempted to defend a view on fostering trust as the
fundamental solution to this issue. Many contributions to the literature highlight the
relevance of trust and perceived (shopping) risk, mainly through intangible
consumption of experience derived from electronic commerce, such as internet

25
shopping, pertinent to the uncertainty that arises from the lack of interactions between
seller and consumers (Choi et al., 2018).

Hosmer (1995, p. 393) defined trust as "the reliance by one person, group, or
firm upon a voluntarily accepted duty on the part of another person, group, or firm to
recognize and protect the rights and interests of all others engaged in a joint endeavor
or economic exchange." Central to the psychological perspective of the nature of
humans in avoiding pain and embracing pleasure, trust has been convinced as the sole
concept or mechanism to deal with this matter (Lee et al., 2017). Complementary to
this, a previous study by Gefen and Straub (2004) challenges the idea of trust
dimensions pertaining to shopping and trust-related research through their defense of
view on trust that consists of four dimensions, namely, benevolence, integrity,
predictability, and ability. Comprehensively, the study on consumer trust in B2C e-
commerce offers an explanatory theory using the validity of these four-dimension
trust scales (Lee et al., 2017).

Park et al. (2012) have adopted a broader perspective and argue that the scale
dimensions should include benevolence, competence, and integrity to form trust in e-
retailing. Benevolence, competence, and integrity to form trust in e-retailing.
Likewise, Jarvenpaa et al. (1999) hold the view through their investigation that
benevolence, integrity, and trustworthiness are significant components that should be
considered for consumer trust's dimension. Through this literature review, it is
apparent that benevolence, integrity, competence, and ability are the most frequently
used dimensions of trust prior to the insights provided by the previous studies.
Additionally, predictability, reputation, product, and information content are also
regarded as components of SDT in the convergence of visitors' buying decisions may
be influenced by the shopping information offered by businesses and DMOs, as well
as the reputation of shopping locations based on the experiences of previous tourists.
(Lee et al., 2017).

Following the chronology for the development of trust dimensions, Lau and
Lee (1999) asserted that liking is one of the influential factors contributing to product
trust. Their study revealed that shopping activities during travel tend to arise from
hedonic reasons. Choi et al. (2016) performed quantitative research in the Hong Kong
case study of shopping tourism destinations. It revealed that ability, integrity,

26
benevolence, and liking were found to be the most critical dimensions of SDT for trust
in tourist destinations. Thus, as Langkawi is a duty-free island destination in Malaysia,
this study will adopt the most influential SDT components (ability, integrity,
benevolence, and liking) to reflect on consistent findings by (Choi et al., 2016). To
that end, the following hypotheses are proposed for this study:

H2(a): SDT: Ability positively influences tourists’ perceived values on duty-free

shopping in Langkawi.

H2(b): SDT: Integrity positively influences tourists’ perceived values on duty-free

shopping in Langkawi.

H2(c): SDT: Benevolence positively tourists’ perceived values on duty-free shopping

in Langkawi.

H2(d): SDT: Liking positively influences tourists’ perceived values on duty-free

shopping in Langkawi

2.6 Perceived Value

Perceived value can be defined as "the consumer's overall assessment of the

utility of a product (or service) based on perceptions of what is received and what is
given" (Zeithaml, 1988, p. 14). The Theory of Consumer Behavior, which investigates
why people buy the things they do in a market full of alternatives, is where we find the
germ of the idea that "a product's perceived value is a significant factor in determining
whether or not a consumer will actually purchase that product" (Jamal et al., 2011).
Perceived value is "consumers' overall assessment of product utility based on the
perception they are given and receive," as defined by Zeithaml (1988). In some
marketing and hotel-related writing, "value for money" is used as a proxy for
customer satisfaction (Gallarza and Saura, 2006; Sweeney and Soutar, 1996).
Although monetary cost is a component of perceived value, other factors, such as
quality, emotional response, and reputation, also play a role in consumers' final
purchasing decisions (Zeithaml, 1988; Petrick, 2002). Perceived value, according to
Al-Sabbahy et al. (2004), consists of multiple dimensions, and a single indicator scale
is inadequate to capture its complexity.

27
 It encompasses insight into cohesive marketing strategies to comply with
market segmentation, product differentiation, and resource allocation (Furrer et al.,
2000). Despite this, although there is a significant amount of attention paid to
perceived value, only a few studies have investigated the impact of perceived value in
the setting of the shopping environment and its correlation to the tourist's destination
(Choi et al., 2018).

Regardless, many literature contributions for perceived value research have

investigated the antecedents of perceived value (e.g., service/experience quality,
image, involvement, trust, motivation, tourist experience) and its consequences (e.g.,
satisfaction, behavioral intention, purchase intention, loyalty, and willingness to
recommend). Some researchers also have examined these relationships using the
PERVAL model (Chen & Tsai, 2008; Gallarza & Saura, 2006; Yen & Teng, 2015).
There are two main approaches that have been advocated for perceived values which
are unidimensional and multidimensional (Choi et al., 2018). Some academics have a
one-dimensional view of perceived values, placing more emphasis on economic utility
than on the give-and-take between benefits gained (such as customer utility) and those
forgone (such as cost, time, or effort) (Babin et al., 1994; Holbrook, 1994; Sheth et
al.,1991). However, the unidimensional method has been hotly debated due to its
apparent inability to consider the interplay between an individual's internal emotional
state and the external situations that shape their thoughts, feelings, and actions
(Sánchez et al., 2006). Zeithaml (1988) suggests a theoretical model of service,
resulting in a SERV-PERVAL scale that integrates behavioral price, monetary price,
emotional response, quality, and reputation. The PERVAL scale was used in the
recent study of shopping tourism due to its relevance in the nature of tangible goods
for shopping items such as clothes, shoes, and accessories. Aside from that, PERVAL
was expected to be an appropriate measurement scale to examine the perceptions of
value in shopping tourism.

First, "shopping tourism" refers to the practice of actually shopping for goods
while on vacation. Created initially as a tool for gauging consumer opinion on the
value of long-lasting products, PERVAL has now found application in this context
(Sweeney & Soutar, 2001). Indeed, some previous studies outline a critical role of
PERVAL in enabling the exploration of emotional value in the context of shopping
trips. The previous studies presented thus far provide evidence that PERVAL by

28
Sweeney and Soutar (2001) is compatible with the shopping environment. A study by
Choi and Park (2018) revealed that emotional, social, and functional values in terms
of quality and price significantly influence impulsive buying and behavioral intention
in duty-free shops while reflecting the duty-free shop characteristics. Thus, it can be
postulated that perceived values derived from trust lead to the intention to repeat-
purchase and revisit the shopping destinations (Moorman et al., 1993). Hence due to
the compelling reasons, the following hypotheses are proposed:

H3: Tourists’ Perceived Values positively influence Destination Loyalty

2.7 Destination Loyalty

Trust in Shopping destinations can be formed through exchanging

relationships, leading to destination loyalty (Rahila & Jacob, 2017). Indeed, a study on
the impact of perceived value, destination service quality, and tourist satisfaction on
destination loyalty among international tourists visiting Malaysia by Mohamad et al.
(2019) identifies several advantages that are congruent with trust and values perceived
by the shopping tourist. Mohamad et al. 2019) present the available literature on the
relationship between trust and values perceived by the shopping tourist will render the
usefulness of a positive destination image that, to that end, stimulates revisiting
intention to the shopping destination. Many historians have attempted to explain the
significance of perceived values in mediating the components of trust toward
destination loyalty (Moorman et al., 1993; Morgan et al., 1994).

Traditionally, loyal buyers have subscribed to the belief within the evidence
that the volume of sales it contributed to the brand was substantial (Lipstein, 1959).
Therefore, Mohamad et al. (2019) proved an important literary genre that linked
positive destinations' image with a significant part in establishing credibility, which
boosts customers' loyalty in various ways. Since perceived values generated from trust
increase one's confidence and result in long-term relationships, recognition of
multidimensional perceived values has been heightened in its usage as a mediator.
This usage was viewed to understand the causal sequence amongst shopping
destinations' trust, perceived values, and shopping destination loyalty among shopping
tourists in duty-free shopping sectors. Thus, the following hypothesis is proposed:

29
H4: Perceived Values on duty-free shopping mediate the relationship between
Shopping Destination Trust and Destination Loyalty.

2.7 Conceptual Framework

Figure 2.1: Proposed Conceptual Framework; Adapted from Sweeney and Soutar
(2001), Choi et al. (2016); Choi et al. (2018) and Mohamad et al. (2019)

The proposed conceptual framework for the duty-free case study in Langkawi
adapted four Shopping Destination Trust (SDT) components that act as independent
variables for the study. The four constructs of ability, integrity, benevolence, and
liking derived from the SDT were adapted from the previous study by Choi et al.
(2016) that analyzed consumer behavior toward shopping in Hong Kong. Meanwhile,
the multi-dimension of perceived values (PERVAL) was derived from Sweeney and
Soutar (2001), and Choi et al. (2018). Finally, one construct with three items
concerning Destination loyalty attributes was adapted from Mohamad et al. (2019).

2.9 Hypotheses of The Study

H1(a): SDT: Ability positively influences Destination Loyalty towards Langkawi

duty-free shopping.

30
H1(b): SDT: Integrity positively influences Destination Loyalty towards Langkawi
duty-free shopping.

H1(c): SDT: Benevolence positively influences Destination Loyalty towards

Langkawi duty-free shopping.

H1(d): SDT: Liking positively influences Destination Loyalty towards Langkawi

duty-free shopping.

H2(a): SDT: Ability positively influences tourists’ perceived values on duty-free

shopping in Langkawi.

H2(b): SDT: Integrity positively influences tourists’ perceived values on duty-free

shopping in Langkawi.

H2(c): SDT: Benevolence positively tourists’ perceived values on duty-free shopping

in Langkawi.

H2(d): SDT: Liking positively influences tourists’ perceived values on duty-free

shopping in Langkawi.

H3: Tourists’ Perceived Values positively influence Destination Loyalty.

H4: Perceived values on duty-free shopping mediate the relationship between

Shopping Destination Trust and Destination Loyalty.

31
 CHAPTER 3

RESEARCH METHODOLOGY

3.1 Introduction

Chapter 3 illustrated the methodology used to get accurate data for the study.
Design, population, timeline, sampling strategy, instrument, data collection methods,
and analysis strategies are all designated in this section of the dissertation. As such,
Chapter 3 offers guidance on how to make sense of the study's many complex
concerns.

3.2 Research Design

In the context of research methodology for this research, this study was
intended to be cross-sectional in nature, which denotes that all data regarding the
variables in the framework is taken from one source at a specific time.
Comprehensively, this research design was perceived as equivalent to the objective of
this proposed study which is to explore relationships among several variables for the
setting of duty-free shopping. Besides, the quantitative approach is convinced as the
most suitable research design for testing related study hypotheses by incorporating
descriptive, correlational, and cross-sectional study designs.

In specific detail, this study is a correlation or non-experimental research type

of investigation using a quantitative research approach. This study utilized a
quantitative approach to seek precise values emphasized by local tourists towards
duty-free shopping in Langkawi and analyze the sample used in terms of
demographics, preference in values, and loyalty intention at duty-free shops in
Langkawi through online surveys that comprise quantitative questionnaires. This
correlational study was conducted in a non-contrived study setting. Meanwhile, the
time horizon of this proposed research was cross-sectional, whereas the data collection
for this study was conducted in one shot from September 2022 to January 2023.

32
 Based on figure 3.1, the unit analysis refers to the relationship between the
level of exploration and analysis of this proposed research:

Destination Langkawi, Malaysia

Level of Exploration Unit of Analysis

Industry Duty Free and Travel Retail

Individual Local Tourist: 18 years old and above

Figure 3.1: Unit of Analysis

3.3 Population and Sample

3.3.1 Target Population

According to the Domestic Tourism survey for Kedah in 2020 by the

Department of Statistics Malaysia, domestic visitors accounted for the amount of 10.1
million in Kedah in 2021, and precisely, Langkawi was one of the leading destinations
for domestic tourism in that year aside from Menara Alor Setar, Gunung Keriang,
Pekan Rabu and Puncak Janing. Subsequently, Kota Setar, Sik, and Kubang Pasu have
been acknowledged as the top three districts for intrastate travel accounting for 34.7%
at Kedah. At the same time, Selangor, Penang and Perak are the top three states for
interstate travel at Kedah, accounting for 65.3%. More importantly, the survey
indicated that shopping has significantly contributed to 42.1% of receipt components
of Domestic Visitors in Kedah. With the ease of restrictions for interstate travel in
Malaysia, domestic tourism is showing a booming shift, although there is a concern
about COVID-19’s Omicron virus (The Star, 2021), especially in the duty-free island
of Langkawi.

Evidently, Langkawi has been promoted as a current top domestic tourism

destination in Malaysia from 16 September to 30 November 2021 under the initiatives
of the travel bubble (Bernama, 2021). Malaysia’s tourism Minister in 2021, Datuk
Seri Nancy Shukri, highlighted that Langkawi had accumulated a total of 204,953
tourists and generated over MYR 211 million in tourism revenue during the period.

33
 Nevertheless, little is known about the values emphasized by local tourists in
duty-free shopping, and what factors motivate local tourists to travel domestically for
duty-free shopping needs to be clarified.

Therefore, the target population for this study was domestic tourists who
visited Langkawi after the endemic of the COVID-19 announcement (from April 2022
onwards). The study population includes all domestic tourists 18 years old and above
who have experienced duty-free shopping during the trip.

Figure 3.2: Domestic Tourism in Kedah 2020

(Source: Department of Statistics Malaysia)

3.3.2 Sample Size

Eligible respondents were potentially selected through screening

questionnaires concerning traveling for shopping motives adapted from (Choi et al.,
2016; UNWTO, 2014) to match the established sample criteria. A community from
the Telegram Group “LANGKAWI INFO SEMASA,” which comprises more than
5,000 members in the group, has been contacted. It was observed that the online

34
community is viable to be selected as a sample of this study because the details for
5,289 names of contact in the Telegram group characterized the typical names of
Malaysian or local tourists.

The interaction in the Telegram group involved inquiries from people who
reside outside of Langkawi with the local people who reside in Langkawi. This
community interacts with two-way communications between these two groups
regarding the latest update and information in Langkawi. It could be seen that the
community consisted of local tourists who intended to visit Langkawi and seek
information regarding the weather, the current climate, the ferry tickets,
advertisements for vacant jobs in the hospitality and tourism job sector, emergency
notices for water and electrical disruptions, an advertisement for car and house rental
and relevant issues at Langkawi through this channel.

When models include numerous constructs and a large number of elements,

PLS-SEM can provide answers using only a small sample size (Fornell & Bookstein,
1982; Willaby et al., 2015). The PLS-SEM technique enables this by decoupling the
computation of measurement and structural model links. For PLS-SEM users, Kock
and Hadaya (2018) presented the inverse square root method for estimating sample
size. The smallest possible sample size would be necessary to know the value of the
route coefficient, with the smallest absolute magnitude being 160, calculated using the
inverse square root of the number (Memon et al., 2020). The belief that the inverse
square root method produces estimates that are both accurate and safe (slight
overestimates) with both normal and non-normal data lends credence to this notion
(Kock & Hadaya, 2018). However, this study utilized a sample size estimation of 200
using an online SEM sample size calculator recommended by Soper (2006). Figure
3.3 shows the summary of parameter values used in this online calculator to calculate
the recommended minimum sample size for the model structure.

35
 Figure 3.3 Online Sample Size Calculator for SEM (Soper, 2006)

3.3.3 Sampling Technique and Design

This study utilized non-probability sampling techniques with a purposive

sampling design. Purposive sampling can be defined as a selection of subjects
according to the study purpose with the hope that individual contributions from all of
the study's subjects would yield a wealth of new and interesting data (Palys, 2008).
The purposive sampling method in this study established that the researcher has a
specific purpose in reaching her sample size, considering the fact that every targeted
respondent in the sample criteria established for the study complements the individual
who traveled to Langkawi with the same motive of shopping.

Eligibility criteria required individuals to have traveled to Langkawi with the

primary motive of shopping from April 2022. The time frame is established based on
the consideration of its coherence with the endemic COVID-19 situation and the
emerging trend of domestic travel at Langkawi following the proven success of the
Langkawi Travel Bubble (Imran, 2021). The researcher also holds the view that
limiting the time frame close to the current time will hinder the study from receiving

36
biased data results since the respondents can still vividly recall their experience at the
duty-free shops visited in Langkawi.

3.4 Research Instrument

3.4.1 Questionnaire Design

The research instruments for this study utilized quantitative surveys. Four-
section questionnaires were developed to obtain primary quantitative data. The
language designated for the questionnaire would be bilingual Malay and English,
considering that local tourists in Malaysia comprise people from multi races. The
questionnaire consisted of four sections. Section 1 covers the respondent’s
demographic information, including gender, age group, marital status, academic
qualification, employment, and monthly income. Sections 2, 3, and 4 enclosed items
related to tourist perceived value followed by destination trust and loyalty.

Prior to this, two screening questions with regards to shopping as travel

motivation were adapted from UNWTO (2014) and Choi et al. (2016) with the
purpose of selecting the right respondents for the study. The constructs for the filter
questions are as follows:

Table 3.1
Filter Questions for Screening Purpose

Constructs Items
Have you traveled to Langkawi during the ● Yes
COVID-19 endemic (April 2022 onwards)? ● No

Did you purchase at any duty-free shops during ● Yes

your trip to Langkawi? ● No

3.4.2 Part A: Respondents’ Demographic Profile

37
 The first section consisted of questions regarding the respondent's profile
involving gender, group age, marital status, academic qualifications, employment, and
monthly incomes. Each demographic profile item is considered essential for
descriptive analysis of the consumption pattern of duty-free shopping in Langkawi
during the endemic of COVID-19.

Table 3.2
Constructs & Items for Respondents’ Demographic Profile

Constructs Items
● Female
Gender ● Male

●18 – 24 Years Old

●25-35 Years Old

Group Age ●36-44 Years Old

●45-54 Years Old
●55 Years Old and Above

● Single
Marital Status ●Married
●Divorced

●SPM
●STPM/Diploma/Matriculations

Academic Qualification ●Degree

●Masters
●Doctorate/Professional

●Employed
Employment ●Unemployed
●Studying

Table 3.2 (Cont.)

Constructs & Items for Respondents’
Demographic Profile

38
 ●Less than MYR1000
Monthly Income ●MYR1000 – MYR2000
●MYR2001 – MYR5000
●More than MYR5000

3.4.3 Part B: Respondent’s Travel Activities

The second section consisted of questions regarding respondents’ travel

activities that involved the frequency of visits to Langkawi Island, main shopping
items, companions, and travel period. Items in each construct of respondents’ travel
activities will reflect the post-COVID-19 shopping behavior among tourists.

Table 3.3
Constructs & Items for Respondent’s Travel Activities

Constructs Items
● 1-3 times
Frequency of visits to Langkawi Island ● 4-6 times
● 7-9 times

●Garments
●Fabrics
●Shoes
●Jewellery
●Watches
●Foodstuff
Main shopping items
●Alcohol and tobacco
●Leather/synthetic goods
●Electrical/photography goods
●Perfume
●Others

Table 3.3 (Cont.)

Constructs & Items for Respondent’s
Travel Activities
● Friends

39
 ●Spouse/partner
Companion ● Other family members
●Tour Group

● Day trip
●1 night, 2 days

Travel period ●2 nights, 3 days

●3 nights, 4 days
●4 nights, 5 days
●5 nights or more

● Less than MYR1000

Shopping Expenses (excluding ● MYR1000 to MYR2000
accommodation transportation costs) ● MYR2001 to MYR5000
● More than MYR5000

3.4.4 Part C: Shopping Destination Trust (SDT) Components

The third section organized questions related to the Shopping Destination

Trust, which comprises 4 constructs involving ability, integrity, benevolence, and
liking using the scale (Churchill, 1979; Hinkin, 1995). To guarantee the high validity
of the questionnaire, this proposed study will adopt the measurement items from Choi
et al. (2016), who developed a scale to measure consumers’ trust in a shopping
destination in Hong Kong and revealed that the 4 constructs are the most important
dimensions considered amongst shopping tourists.

Table 3.4.
Constructs & Items for Shopping Destination Trust (SDT) Components.

Constructs Items

40
 (AB1) Langkawi is a competent duty-free shopping destination.
(AB2) Langkawi, as a duty-free shopping destination, understands my
shopping needs.

Ability (AB) (AB3) Langkawi as a duty-free shopping destination, knows my

shopping needs.
(AB4) Langkawi, as a duty-free shopping destination, knows how to
provide excellent service.

(INT1) Langkawi advertises duty-free shopping products that it does

not offer
Integrity (INT) (INT2) Duty-free shop employees in Langkawi are honest in their
dealings with tourists.
(INT3) Duty-free shop employees in Langkawi are ethical

(BN1) Langkawi retailers act in my best interest.

Benevolence (BN)
(BN2) If I need help, Langkawi retailers do their best to help me.
(BN3) Langkawi retailers are concerned about my well-being.

(LK1) I like Langkawi as a duty-free shopping destination.

(LK2) I prefer other duty-free shopping destinations over Langkawi.
Liking (LK)
(LK3) Langkawi is my favorite duty-free shopping destination.

3.4.5 Part D: Perception of Values on Duty-Free Shopping

The questionnaires in the fourth section are regarding the perceptions of

value (PERVAL) held by duty-free shopping tourists using construct measurement by
Sweeney and Soutar (2001). There are four dimensions under the Perceived Value
(PERVAL) model. Some authors have highlighted the relevance of perceived value in

41
a tourism product or destination in which it resides in the consumption of experience
derived by the tourist instead of the product purchased and chosen brand (Gallarza &
Gil, 2008). The constructs of perceived values adapted for this study include
emotional value, social value, functional value (quality/performance), and functional
value (cost/value for money). The formulated questionnaires in the fourth section are
organized in Table 3.5.

Table 3.5
Constructs & Items for Perception of Values on Duty-Free Shopping

Constructs Items

(EV1) I enjoy duty-free shopping trips in Langkawi

(EV2) The thought of a duty-free shopping trip makes me want

Emotional value (EV) to experience it.

(EV3) I feel relaxed during a shopping trip to the duty-free
island of Langkawi.
(EV4) A shopping trip to the duty-free island, of Langkawi
makes me feel good.

(SV1) A shopping trip to a duty-free island, Langkawi,

gives me pleasure.
(SV2) Joining a shopping trip to Langkawi helps me feel
Social value (SV) accepted by the peer group I engage with.
(SV3) Joining a shopping trip improves the way others
perceive me.
(SV4) Joining a shopping trip provides me with social
approval.

Table 3.5 (Cont.)

Constructs & Items for Perception of Values on Duty-Free Shopping

Constructs Items

(FVQ1) Duty-free products purchased during my shopping trip in

Langkawi have consistent quality.

42
 (FVQ2) Duty-free products purchased during a shopping trip in
Langkawi have acceptable quality standards.

Functional value (FVQ3) Duty-free products purchased during my shopping trip in

(quality/performance) Langkawi have poor workmanship.

(FVM1) A shopping trip in Langkawi offers better value for money

than other trips.
(FVM2) A shopping trip in Langkawi has good value for money.
(FVM3) A shopping trip in Langkawi is economical.
Functional value (cost/value
for money)

3.4.6 Part E: Shopping Destination Loyalty Components

The last section was followed by their Shopping Destination Loyalty (DL)
using four construct items from Mohamad et al. (2019).

Table 3.6
Constructs & Items for Shopping Destination Loyalty Components

Constructs Items
(DL1) I will recommend Langkawi as a duty-free

43
 shopping destination to friends
Destination Loyalty (DL2) I will recommend Langkawi as a duty-free shopping
destination to family members
(DL3) I will encourage other people to visit Langkawi
for duty-free shopping.

3.4.7 Scale Measurement for Each Variable

The SDT model in this study comprises 4 dimensions which are ability,
integrity, benevolence, and likings, and integrates a total of 13 items; the PERVAL
model utilizes 4 dimensions which are emotional, social, and two types of functional
values, with a total of 14 items while Shopping Destination Loyalty items were
structured based on underlying constructs of 3 items. These three model constructs
were measured using 5-point Likert-type scales ranging from 1 to 5 with features of
strongly agree, agree, neutral, disagree, and strongly disagree by the respondents.

Table 3.7
Scale Measurement for Each Variable

Variables Scale Measurement

Shopping Destination Trust

Model (AB, INT, BN, LK)

Multi-Dimensions of
Perceived Value Model

44
(EV, SV, FV: Quality, Likert scale (1-5)
Price) From 1 = “Strongly disagree”
to 5 = “Strongly agree”
Shopping Destination
Loyalty (DL)

In this stage, the formulated questionnaires were reviewed by the supervisor

of the researcher, who is reliable in her academic credentials. A few amendments were
further established after receiving evaluation feedback from the supervisor. This
process also involves the researcher interacting with a thorough concentration on the
compatibility of the questionnaires to achieve cohesive understanding and precise
answers among respondents, ranging from rephrasing the sentences to improving
clarity and eliminating irrelevant questions. Then, the formulated questionnaires that
had been revised were developed as the final questionnaires, which integrated all the
related items adapted from the previous authors.

3.5 Pilot Test

A pilot study for the formulated questionnaires was conducted using 30

respondents with the potential to be elected as local tourists with shopping purposes at
Langkawi to test the comprehension of the formulated questionnaires. The distinction
amongst the criteria for data collection only differs in the time frame of visiting
Langkawi. The sample criteria for the pilot test did not include the time they visited
Langkawi for shopping since the questionnaire items did not implement the element of
COVID-19, so it was relatable and convenient to compute responses.

The sample size for the pilot study is proposed to utilize 30 respondents guided
by Hill (1998) and Isaac and Michael (1995), which suggests the relevance of the pilot
test in a range of 10 to 30. The final questionnaire that integrated the SDT, PERVAL,
45
and DL dimensions were structured based on underlying constructs using 5-point
Likert-type scales ranging from 1 to 5 with features of strongly agree, agree, neutral,
disagree, and strongly disagree.

Cronbach’s alpha test was conducted on the survey responses that had reached
the required sample size to measure the reliability of each item in the construct. The
google form was continuously shared until the number of respondents had reached the
amount target of 30 respondents. Similar to the data collection, the sampling technique
for the pilot test was using a purposive sampling method to prevent any bias in the
response and negatively impact the validity of the item’s constructs. The reliability
test for this study was conducted using SPSS software, and it had been considered that
acceptable Cronbach’s Alpha values range from 0.6-0.7 (Pallant, 2020). Hence, a few
items in the formulated questionnaires were removed to achieve higher value. Table
3.8 illustrates that Cronbach’s Alpha values of constructs for this study range from
0.667 – 0.961, which denotes that most of the adapted constructs and their items were
deemed reliable (Pallant., 2020).

Table 3.8

Cronbach’s Alpha Values for Each Construct.

Constructs Cronbach’s Alpha

Ability (AB) 0.943
Integrity 0.793
Benevolence 0.812
Liking 0.667
Emotional Value 0.769
Social Value 0.904
Functional Value (Quality) 0.701
Functional Value (Money) 0.758
Destination Loyalty 0.961
Refer to Appendix: Figure 3.7

46
3.6 Data Collection

Langkawi was chosen as a research context or data-collection site. However, the

developed questionnaires were distributed electronically through online platforms
such as WhatsApp, Telegram, email, and other interactive social media such as
Facebook, Instagram, and Twitter in the visual of Google Forms for data collection
purposes. The final version of the formulated questionnaires was distributed to the
sampling frame of the Langkawi Info Semasa Telegram Group channel in the medium
of Google Forms. The Google Form was continuously shared until the number of
respondents exceeded the sample size for this study. Respondents were also politely
asked to share or forward the Google Form survey to their families, friends, and
colleagues who possessed this study's sample criteria.

The time frame for data collection was approximately three months, starting from
September 2022 to Jan 2023. The researcher also approached a few admins
responsible for managing the activities in the aforementioned Langkawi Telegram
group communities for permission to conduct the survey and obtain information from
them regarding the demographic of the active group's participants. Since the Google
Forms application allows the researcher to set up a rule requiring each participant to
complete all questionnaires before proceeding to the next page or before submitting
the forms’ responses (please refer to Appendix: Figure 3.8), all 200 collected sample
data for the survey of this study were usable.

3.7 Data Analysis

     The 200 usable data were then organized in Statistical Package for the Social
Sciences (SPSS) software for statistical analysis. The quantitative method has been
chosen for utilization due to its advantages, whereby it is more accurate, faster, and
more manageable. In particular, Partial Least Square-Structural Equation Modelling
(PLS-SEM) methods (Hair et al., 2019) employing Smart PLS software version 4 and
the Statistical Package for the Social Sciences, Windows Version 25 (SPSS 26) are
among the prospective research analytic tools that will be utilized. The information
was entered correctly into SPSS, and in the case of questions phrased negatively, a
reverse score will be performed, in which the numerical scoring scale is inverted. Data
was processed and cleaned to be used in subsequent studies. The research questions,

47
hypotheses, and objectives were tested using a sophisticated statistical method called
Partial Least Square-Structural Equation Modelling (PLS-SEM). The PLS algorithm
will be run accordingly until an output report is available. The "consistent PLS
algorithm," usually called just the "PLS algorithm," is the default standard partial least
squares modelling procedure (Garson, 2016).

48
 CHAPTER FOUR

FINDINGS AND DISCUSSIONS

4.1 Preface

This study set out to investigate the impact of COVID-19 on tourists'

perceptions of value when shopping in duty-free stores, with the ultimate goal of
enhancing our understanding of how trust in a destination affects their decision to
return there. Trust in the shopping destination, perceived value, and loyalty to the
shopping destination were the three dimensions used in this research. The examination
of the data from the 200 samples will be presented in detail in Chapter 4.

This study's minimum required data collection was estimated using an online
a-priori sample size calculator for structural equation models (Soper, 2006). Although
it may result in highly off estimations of the minimum required sample size, Kock and
Hadaya (2018) discovered that the "10-times rule" method (Hair et al., 2011; Peng &
Lai, 2012) is the most used for sample size estimation in PLS-SEM. As a result, it is
generally recommended that minimum sample size estimation be carried out in
advance of data collection and analysis, as opposed to after the fact (Nakagawa &
Foster, 2004).
Accordingly, a minimum sample size of 200 was calculated based on the
following: an expected small effect size of 0.02, a desired power level of 0.8, three
latent variables, nine observable variables, and a probability level of 0.05. Therefore,
this study’s researcher set out 200 usable collected sample data to represent the local
tourist population in duty-free Langkawi during the COVID-19 endemic. Chapter four
was meant to foreshadow the statistical analysis, inferential analysis, and further
discussions regarding the assessed hypotheses for this study.

49
4.2 Descriptive Analysis

4.2.1 Respondent’s Demographic Profiles

Table 4.1
Respondents’ Profile
Variables N (200) %
Gender
Male 72 36
Female 128 64
Age
18-24 Years Old 43 21.5
25-35 Years Old 85 42.5
36-44 Years Old 65 32.5
45-54 Years Old 7 3.5
Marital Status
Single 85 42.5
Married 113 56.5
Divorced 2 1
N= 200 respondents *Summary Result of Respondent Profile in Google Form. Refer to
Appendix: Figures 4.1, 4.2 & 4.3

Table 4.1 shows the gender distribution in this study. Out of 200 respondents,
72 were male, while the remaining 128 were female. Based on the percentage, the
questionnaire is not fairly distributed to both genders, which explains that women are
more likely to consume shopping travel behavior during endemic COVID-19
compared to men. Hence, Table 4.1 also shows the marital status distribution of this
study. One hundred and thirteen respondents are already married, followed by single,
which were 85 respondents, and 2 widowed respondents. Based on age distribution,
almost half of the respondent, 85 (42.5%), comes from the group age of 25 – 35, while
65 respondents were dominated by the majority age group of 36 - 44 years old. Forty-
three respondents were from 18 - 24 years old, while the remaining 7 were from the
age group above 40. Ismail et al. (2021) speculated that factors such as sex, age, and
marital status did not affect tourists' destination choices during the post-COVID-19
era.

Table 4.2

50
Respondent Distribution based on Academic Qualification
Academic Qualification N (200) (%)
SPM 12 6
STPM/Diploma/Matriculations 66 33
Degree 103 51.5
Masters 19 9.5
N = 200 respondents *Summary Result of Respondents’ Academic Qualification in Google
Form. Refer to Appendix: Figure 4.4

Table 4.2 shows the academic qualification distribution in this study. Out of 200
respondents, the majority of them, 103(51.5%), graduated with a bachelor's degree, while 66
respondents were academically qualified at STPM, Diploma, and Matriculations levels.,
Additionally, 19 respondents are academically validated with a higher level of education, in
master's degree. In contrast, the minority of respondents for this study were intellectually
educated at the SPM level, bringing the remaining 12 respondents. This result reflects that
Malaysians with higher academic qualifications tend to travel to Langkawi for shopping
during the endemic COVID-19 era.

Table 4.3
Respondent Distribution based on Employment & Monthly Income
Employment N (200) (%)
Employed 173 86.5
Unemployed 8 4
Studying 19 9.5
Monthly Income
Less than MYR1000 35 17.5
MYR1000 – MYR2000 37 18.5
MYR2001 – MYR5000 87 43.5
More than MYR5000 41 20.5
N = 200 respondents *Summary Result of Respondents’ Employment & Monthly Income in
Google Form. Refer to Appendix: Figures 4.5 & 4.6

Table 4.3 illustrates the frequency and percentage of the respondent based on
their employment status and monthly incomes. Out of 200 respondents, 173 were
employed, 19 were still studying, and the remaining 8 were unemployed.
Subsequently, 87 (43.5%) of the respondents acquired RM2001 to RM5000, while 41
respondents with the second highest percentage (20.5%) acquired more than RM5000
for their monthly income. However, the remaining respondents acquired RM1000 to
RM2000 and less than RM1000, with respective 37 (18.5%) and 35 (17.5%)

51
respondents. This reveals an upward trend of the duty-free island, Langkawi, as a
destination choice amongst the Malaysian from T20 and M40 groups during the
endemic of COVID-19. Not to mention consumer behavior of willingness to spend at
duty-free shops in Langkawi amongst B40 groups.

4.2.2 Respondent's Travel Activities

Table 4.4
Respondent’s Distribution based on Frequency of Visiting, Main Shopping Items and
Companion during Visitation to Langkawi.
Variables N (200) %
Frequency of visits to Langkawi island.
1-3 times 165 82.5
4-6 times 31 15.5
7-9 times 4 2
Main shopping items.
Foodstuff/ Chocolates 139 69.5
Kitchenware/ Imported Tableware 29 14.5
Alcohol & Tobacco products 22 11
Shoes 1 0.5
Garments 1 0.5
Others 8 4
Companion
Friends 78 39
Spouse 50 25
Other Family Member 71 35.5
Tour Group 1 0.5
N = 200 respondents *Summary Result of Respondents’ Frequency visits to Langkawi in
Google Form. Refer Appendix: Figure 4.7
Table 4.4 shows the respondents’ summary of travel activities regarding the
frequency of visits to Langkawi, main shopping items, and companions during the
visit to Langkawi. Firstly, this study reveals that the majority of the sample, 165
(82.5%), who represents the population of local tourists in Langkawi, visited the duty-
free island 1 – 3 times during the endemic COVID-19 period. Besides, 31 respondents
visited Langkawi 4 – 6 times during the period. Four respondents who were
speculated as residents in Kedah visited Langkawi 7 – 9 times. This study denotes that

52
Langkawi is indeed a famous destination for local tourists in Malaysia following the
success of the travel bubble ree during post-COVID-19 in Sept 2021 ago.

Next, Figure 4.8 illustrates the main shopping items for local tourists at duty-
free shops in Langkawi.

Figure 4.8: Main Shopping Items At Duty-Free Shops In Langkawi

Out of 200 respondents in this study, foodstuff or chocolates were dominated

by 139 respondents, followed by 29 respondents for Kitchenware/Imported Tableware
and 22 for Alcohol & Tobacco products. Eight respondents chose others, while 2
respondents responded to the individual items of shoes and garments. To explain this
result, Haikal (2022) has reported that Langkawi is heaven for chocolate fans due to
its lower price compared to other destinations in Malaysia. The famous duty-free
shops for chocolates in Langkawi included Kedai Coklat Haji Ismail Group (HiG),
Ole Ole Duty-Free Chocolate, Eastern Duty-Free Shopping Langkawi, Coco Valley
Sdn. Bhd and many more (Haikal, 2022). As for kitchenware/tableware, this study
confirms the upward trend of young Malaysian adults that are especially interested in
new and stylish kitchenware brands due to the growing popularity of online recipe-
sharing platforms (YouTube, Instagram & Tiktok) cooking tutorials and cooking
blogs, which influence their purchasing decision (Yuen, 2018). Meanwhile, as for
alcohol and tobacco products, this study confirms the significance of Travelling to
Langkawi 3D2N under RM700 per pax, whereby tourists can enjoy lower prices of
alcohol and tobacco products compared to the retail price. (Aziz & Heng, 2021).

53
 Figure 4.9: Companion During Visitation To Duty-Free Island, Langkawi

Figure 4.9 shows the summary analysis for a companion during visitation to
the duty-free island, Langkawi. Out of 200 respondents, 78 responded to friends, 71
responded to other family members, 50 responded to spouse/partner, and the
remaining one responded to a tour group. This study reveals that the pandemic
COVID-19 has indeed caused people to deepen relationships with family members
and friends since the lockdown imposed during that time has strained people to meet
each other (Needelman, 2022).

Table 4.5
Respondent’s Distribution based on Travel Period & Shopping Expenses (Excluding
Accommodation and Transportation)
Variables N %
Travel Period
Day trip 28 14

54
 1 night 2 days (2D1N) 27 13.5
2 nights 3 days (3D2N) 88 44
3 nights 4 days (4D3N) 42 21
4 nights 5 days (5D4N) 14 7
5 nights or more 1 0.5
Shopping Expenses
Less than MYR1000 157 78.5
MYR1000 to MYR2000 38 19
MYR2001 to MYR5000 5 2.5

Table 4.5 shows the distribution for this study's travel period and shopping
expenses. It was revealed that the majority of the respondents, 88 (44%), spent 3D2N
in Langkawi, followed by 42 respondents who spent 3D4N, 27 respondents who spent
2D1N, 28 respondents who went on a day trip, 14 respondents who spent 5D4N and
the remaining one responded to 5 nights or more travel period in Langkawi during
endemic COVID-19.

This study also represents the shopping expenses among local tourists in
Langkawi during the endemic COVID-19 era, whereas a significant majority of 157
out of 200 respondents spent less than MYR1000 for shopping in Langkawi, followed
by 38 respondents who spent MYR1000 to MYR 2000 and the remaining five
responded to MYR2001 to MYR5000 shopping expenses in Langkawi. This study has

consistently supported the view of Budget travel Tips in Langkawi Malaysia (2012),
which claimed that “Langkawi is one of the biggest attractions of budget travellers
because of the affordable rates.”

4.3 Inferential Analysis

4.3.1 Assessment of Outer Model

The reliability of questionnaires between shopping destination trusts towards

shopping destination loyalty and tourists’ perceived values in duty free shopping was
first assessed for inferential analysis. Partial Least Square (PLS) analysis was used to
check the indicators. The first step of PLS analysis involves analyzing the
55
 measurement model (or outer model) to ascertain if the theoretically stated concept is
adequate. Analysis of the measurement model is performed to check whether or not
the variables targeted by the survey questionnaire were actually measured and whether
or not the instrument was accurate. Factor loadings, composite reliability (CR), and
average extracted variance (AVE) are the three metrics investigated in this procedure.

4.3.2 Construct Validity

It has been suggested that loading more than 0.50 on two or more factors is
deemed substantial, so checking the cross-loadings and factor loadings of individual
indicators is a good way to evaluate their construct validity (Hair et al., 2011). Table
4.6 shows that for every given concept, all measurable indicators have values larger
than 0.50, thus confirming construct validity. Previous researchers have suggested that
the cut-off value for factor loadings should exceed 0.60 (Hair et al. 2011; Chin et al.
1997). Examining the factor loadings for each item of the nine observed variables for
duty free shopping, table 4.6 revealed that each variable had factor loadings in the
range of 0.821 - 0.962, indicating that all the values are positive and greater than the
recommended value.

Table 4.6
Outer Loadings and Cross Loadings.
Perceived Perceived Perceive
Perceived
Abilit Destinatio Functiona Functiona Integrit Likin d
Benevolence Emotiona
y n Loyalty l Value l Value y g Social
l Value
(Money) (Quality) Value
AB1 0.939 0.826 0.610 0.630 0.537 0.278 0.804 0.519 0.643
AB2 0.929 0.814 0.619 0.615 0.558 0.271 0.808 0.501 0.618
AB3 0.926 0.808 0.607 0.624 0.587 0.214 0.789 0.503 0.649
AB4 0.928 0.798 0.698 0.710 0.646 0.265 0.796 0.504 0.708
BN1 0.838 0.949 0.665 0.642 0.591 0.259 0.846 0.514 0.661
BN2 0.831 0.915 0.634 0.652 0.567 0.326 0.784 0.513 0.656

56
BN3 0.751 0.915 0.618 0.613 0.554 0.259 0.792 0.507 0.634
DL1 0.588 0.566 0.860 0.715 0.571 0.331 0.535 0.504 0.704
DL2 0.651 0.657 0.921 0.729 0.689 0.388 0.645 0.502 0.760
DL3 0.600 0.633 0.911 0.732 0.687 0.392 0.574 0.569 0.745
EV1 0.558 0.466 0.660 0.839 0.461 0.315 0.482 0.450 0.694
EV2 0.635 0.688 0.785 0.915 0.613 0.419 0.646 0.583 0.854
EV3 0.648 0.642 0.702 0.893 0.584 0.462 0.590 0.548 0.739
EV4 0.638 0.636 0.730 0.921 0.581 0.408 0.596 0.548 0.828
FVM1 0.580 0.573 0.643 0.566 0.907 0.311 0.575 0.408 0.618
FVM2 0.605 0.595 0.694 0.622 0.951 0.393 0.578 0.461 0.615
FVM3 0.577 0.562 0.696 0.581 0.948 0.378 0.533 0.441 0.603
FVQ1 0.321 0.305 0.478 0.498 0.428 0.843 0.316 0.361 0.491
FVQ2 0.119 0.213 0.208 0.249 0.214 0.821 0.208 0.263 0.272
FVQ3 0.203 0.224 0.280 0.324 0.273 0.869 0.201 0.294 0.294
INT1 0.743 0.760 0.541 0.539 0.515 0.241 0.909 0.439 0.620
INT2 0.821 0.847 0.653 0.655 0.607 0.297 0.955 0.496 0.682
INT3 0.842 0.835 0.630 0.628 0.558 0.301 0.943 0.490 0.655
LK1 0.528 0.513 0.538 0.555 0.427 0.364 0.456 0.957 0.542
LK3 0.518 0.545 0.583 0.594 0.469 0.352 0.519 0.962 0.579
SV1 0.674 0.661 0.802 0.850 0.639 0.404 0.652 0.566 0.931
SV2 0.648 0.651 0.646 0.759 0.531 0.432 0.641 0.517 0.883
SV3 0.629 0.637 0.793 0.810 0.622 0.426 0.641 0.545 0.920
SV4 0.602 0.595 0.722 0.746 0.567 0.348 0.596 0.488 0.888
*Loadings that are above the recommended value of 0.50 are in bold.

4.3.3 Convergent Validity

When there is consensus across numerous measures of the same construct, it
can be said that there is convergent validity. Assessment of convergent validity can be
done with the use of factor loadings, CR, and AVE (Hair et al. 2011). For CR's initial
release, some content was cut to make room for more valuable content. This
procedure was conducted as suggested by Hair et al. (2011), who mentioned that the
items with loadings between 0.40 and 0.70 should be removed from the measure if
deleting the observed variable would increase the composite reliability in the
reflective scales. In this case, the item of LK2 for the Liking variable has been
removed since it loaded a value of 0.682 (Refer Appendix: Fig 4.18). Hence, after the
deletion, all factor loadings, CR, and AVE values are greater than the recommended

57
cut-off values, confirming that the measurement model has adequate convergent
validity. The factor loadings of the observed variable that are explained by the various
latent constructs are used to derive the CR. Referring to table 4.7, all the composite
reliability values obtained lie in the range of 0.882 to 0.963, which exceeded the
recommended value of 0.70, and these values are reliable (Hair et al. 2011).

Table 4.7
Average
Composite
variance
Constructs Loadings Reliability
Items extracted
(rho_c)
(AVE)
EV1 0.839 0.940 0.797
EV2 0.915
Perceived Emotional Value
EV3 0.893
EV4 0.921
FVM1 0.907 0.955 0.876
Perceived Functional Value (Money) FVM2 0.951
FVM3 0.948
Measurement Model for Convergent Validity

Table 4.7 (Cont.)

Measurement Model for Convergent Validity
Average
Composite
variance
Constructs Loadings Reliability
Items extracted
(CR)
(AVE)
Perceived Functional Value (Quality) FVQ1 0.843 0.882 0.713
FVQ2 0.821
FVQ3 0.869
Perceived Social Value SV1 0.931 0.948 0.820
SV2 0.883
SV3 0.920
SV4 0.888
Destination Loyalty DL1 0.860 0.926 0.806

58
 DL2 0.921
DL3 0.911
Ability AB1 0.978 0.963 0.866
AB2 0.939
AB3 0.929
AB4 0.926
Benevolence BN1 0.949 0.948 0.858
BN2 0.915
BN3 0.915
Integrity INT1 0.909 0.955 0.875
INT2 0.955
INT3 0.943
Liking LK1 0.957 0.959 0.920
LK3 0.962
ͣAverage variance extracted (AVE) = (summation of the square of the factor loadings)/
{(summation of the square of factor loadings) + (summation of the error variances)}.
ᵇComposite reliability (CR) = (square of the summation of the factor loadings)/ {(square of the
summation of the factor loadings) + (square of the summation of the error variances).

Subsequently, The AVE, which shows the proportion of measurement error to

the amount of variance in the observed variable explained by the latent variable, is the
final criterion for convergent validity (Ramayah et al., 2013). The range of AVE is
higher than the recommended minimum of 0.50, as seen in Table 4.7, which shows
AVEs ranging from 0.576 to 0.934 across all constructions (Barclay et al. 1995).
Accordingly, the outcomes of the measurement model are shown in Figure 4.10. The
results indicate that all the nine observed variables under 3 latent variables of
Shopping Destination Trusts (SDT), Perceived Values (PERVAL), and Shopping
Destination Loyalty (SDL) are all valid measures of their respective constructs
according to their parameter estimates.

59
 Figure 4.10: Outer Model Assessment

4.3.4 Discriminant Validity

Following the step for model measurement, the researcher tested the
discriminant validity, which refers to “the degree to which items differentiate among
constructs or measuring distinct concepts, " which involves figuring out how various
variables' measurements are connected and looking at their correlations (Ramayah et
al., 2011). Thus, it is possible to evaluate discriminant validity by looking at the
associations between the test scores meant to measure potentially overlapping
variables. All other things being equal, the AVE for any given construct should
exceed the product of the squares of their correlations with all others (Christmas,
2005). When the correlation between the components is less than the square root of
the AVE, however, we say that the hypothesized model has strong discriminant
validity (Fornell & Larcker, 1981).

Table 4.8

60
 Discriminant Validity Test: Fornell-Larcker criterion.
Perceived Perceived
Perceived Perceived
Destination Functional Functional
Ability Benevolence Emotional Integrity Liking Social
Loyalty Value Value
Value Value
(Money) (Quality)
Ability 0.931                
Benevolence 0.872 0.926              
Destination
Loyalty 0.683 0.690 0.898            
Perceived
Emotional
Value 0.695 0.687 0.807 0.893          
Perceived
Functional
Value (Money) 0.628 0.616 0.725 0.630 0.936        
Perceived
Functional
Value
(Quality) 0.276 0.304 0.413 0.452 0.386 0.845      
Integrity 0.859 0.871 0.652 0.652 0.600 0.300 0.936    
Liking 0.545 0.552 0.585 0.599 0.467 0.373 0.509 0.959  
Perceived
Social
Value 0.705 0.702 0.821 0.875 0.653 0.445 0.699 0.585 0.906
Note: The diagonal represents the square root of the AVE, while the off-diagonals
represent the correlations among the variables.

It is noted that from Table 4.8, all of the square roots of AVE (values in bold,
off-diagonal) are greater than the correlations in the respective columns and rows,
which, henceforth, the measurement model demonstrated adequate discriminant
validity.

4.4 Assessment of Inner Model

Then, the next step is assessing the structural model (inner model) for
examining the hypothesized relationships between constructs in the Shopping
Destination Trusts and Perceived Values towards Shopping Destination Loyalty in the
duty-free island of Langkawi. First, t-values derived from the bootstrapping procedure
are used to investigate the weights or path coefficients of the associations and
determine if they are statistically significant. Before that, the amount of variation in
the constructs described by the model is determined by calculating the coefficient of
determination, R², for dependent variables. In addition, we look at the predictive
significance of f² and the effect magnitude of f 2. Running 5000 bootstrapped samples
from the original 200 cases allows the researcher to test the significance of the
regression weights. The R² values are presented in Table 4.9

61
Table 4.9
Coefficient of Determination
Constructs R²
Perceived Emotional Value 0.567
Perceived Social Value 0.584
Perceived Functional Value (Quality) 0.158
Perceived Functional Value (Money) 0.433
Destination Loyalty 0.757

As shown in Table 4.9, the R² value for the endogenous variable, Perceived
Emotional Value, is 0.567, which implies that 56.7% of Perceived Emotional Value is
predicted by Shopping Destination Trust dimensions: Ability, Integrity, Benevolence,
and Liking. Also, the R² for Social Value is 0.584, which means that 58.4% of
Perceived Social Value, 1.58% of Perceived Functional Value in Quality, 43.3% of
the variation in Perceived Functional Value in Money is explained by the dimension
of Shopping Destination Trust respectively. Furthermore, 75.7% of Destination
Loyalty is predicted by Perceived Values of Emotional, Social, Functional in Quality,
and Functional in Money. In general, the hypothesized model reasonably describes the
amount of variance explained for each endogenous construct. Figure 4.11 illustrates
the measurement model.

62
Figure 4.11: Inner Model Assessment

63
4.5 Assessment of Structural Model

It is important to evaluate the structural model since doing so provides

evidence that the model can accurately predict the intended endogenous variables or
constructs. Hair et al. (2011) proposed a method for evaluating structural models that
would help move partial least squares structural equation modelling forward. The
method is open to abuse when it comes to evaluating hypotheses about the effects and
importance of the path coefficients. In addition, we used bootstrapping to determine
whether or not our observed construct was statistically significant, using a t-test (t >
1.96 or p-value 0.05) as the significance threshold. Regardless, it is also noted that the
observed construct with a p-value < 0.05 is considered statistically significant, while a
p-value < 0.01 is considered highly significant (P-value, 2022).

4.5.1 Hypothesis Testing for H1, H2 & H3

Table 4.10
Hypothesi SE t Supporte
Correlation Std beta
s values d
Ability -> Destination Loyalty 0.255 0.118 *2.161 Yes
Benevolence -> Destination Loyalty 0.174 0.115 1.506 No
H1(a,b,c,d) Integrity -> Destination Loyalty 0.144 0.088 1.647 No
Liking -> Destination Loyalty 0.224 0.066 **3.37 Yes
3
Assessing Path Structural Coefficient on Hypothesised Influence of Shopping
Destination Trust to Shopping Destination Loyalty in Langkawi.

*p value <0.05 **p value < 0.01

Following the path coefficient, the research hypothesis for H1 was supported
with only 2 inter-constructs of trust based on the test performed, as illustrated in Table
4.10. Specifically:

(H1): Shopping Destination Trust (SDT) positively influences Destination Loyalty

towards Langkawi duty-free shopping. In this case, only two inter-constructs from
Shopping Destination Trust (SDT) that supported H1: Ability and Liking. The
correlation of SDT: Ability (β = 0.255, t = 2.161) with Shopping Destination Loyalty
was statistically significant with a p-value < 0.05, while the correlation of SDT:

64
 Liking (β = 0.224, t = 3.373) with Shopping Destination Loyalty was highly
significant with p-value < 0.01.

Table 4.11
Assessing Path Structural Coefficient on Hypothesised Influence of Shopping
Destination Trust to Perceived Values of Duty-Free Shopping in Langkawi.
Hypothesi t- Supporte
Correlation Std beta SE
s values d
Ability -> Emotional Value 0.300 0.149 *2.020 Yes

Benevolence -> Emotional Value 0.21 0.145 1.449 No

Integrity -> Emotional Value 0.065 0.078 0.834 No

Liking -> Emotional Value 0.286 0.083 **3.44 Yes

7

Ability -> Social Value 0.22 0.146 1.51 No

Benevolence -> Social Value 0.161 0.138 1.173 No

Integrity -> Social Value 0.242 0.105 *2.275 Yes

H2(a,b,c,d) Liking -> Social Value 0.254 0.082 **3.08 Yes

2

Ability -> Functional Value (Quality) -0.094 0.172 0.546 No

Benevolence -> Functional Value (Quality) 0.09 0.175 0.514 No

Integrity -> Functional Value (Quality) 0.151 0.17 0.888 No

Liking -> Functional Value (Quality) 0.298 0.081 **3.68 Yes

0

Ability -> Functional Value (Money) 0.283 0.149 1.896 No

Benevolence -> Functional Value (Money) 0.173 0.148 1.172 No

Integrity -> Functional Value (Money) 0.129 0.155 0.833 No

Liking -> Functional Value (Money) 0.152 0.064 *2.353 Yes

*p value <0.05 **p value < 0.01

65
 Referring to the test performed for H2 as per shown in table 4.11, there are 4
inter-constructs of Shopping Destination Trust (SDT) and 4 inter-constructs for
Perceived Values (H2): Shopping Destination Trust (SDT) positively influences
tourists’ perceived values on duty-free shopping in Langkawi. Hence correlations
amongst each construct were explained in the following path of coefficients:

a) Perceived Emotional Values

Under Perceived Emotional Values, only two observed constructs of Shopping

Destination Trust that supported H2: Ability and Liking. The correlation between
SDT: Ability with Perceived Emotional Values was found to be statistically
significant (β = 0.300, t = 2.020, p < 0.05). Meanwhile, the correlation between SDT:
Liking with Perceived Emotional Values was found to be highly significant (β =
0.286, t = 3.447, p < 0.01). Conversely, this study found that the other two observed
constructs from the Shopping Destination Trust, namely Benevolence and Integrity,
did not support H2 for Perceived Emotional Values as both brought p-values > 0.05.
Thus, correlations between Benevolence and Integrity with Perceived Emotional
Values are insignificant.

b) Perceived Social Values

Under Perceived Social Values, only two observed constructs of Shopping

Destination Trust that supported H2: Integrity and Liking. The correlation between
SDT: Integrity with Perceived Social Values was found to be statistically significant
(β = 0.242, t = 2.275, p < 0.05). Meanwhile, the correlation between SDT: Liking with
Perceived Social Values was found to be highly significant (β = 0.254, t = 3.082, p <
0.01). Conversely, this study found that the other two observed constructs from the
Shopping Destination Trust, namely Ability and Benevolence, did not support H2 for
Perceived Social Values as both brought p-values > 0.05. Thus, correlations between
Ability and Benevolence with Perceived Social Values are insignificant.

c) Perceived Functional Values in Quality

Under Perceived Functional Values in Quality, only one observed construct of

Shopping Destination Trust that supported H2, which is Liking. The correlation

66
 between SDT: Liking with Perceived Functional Values in Quality was found to be
highly significant (β = 0.298, t = 3.680, p < 0.01). Conversely, this study found that
the other three observed constructs from the Shopping Destination Trust, namely
Ability, Benevolence, and Integrity, did not support H2 for Perceived Functional
Values in quality, as three of them brought p-values > 0.05. Thus, correlations
between Ability Benevolence and Integrity with Perceived Functional Values in
Quality are insignificant.

d) Perceived Functional Values in Money

Similar to Perceived Functional Values in Quality, only one observed construct

of Shopping Destination Trust that supported H2 for Perceived Functional Values in
Money which is Liking. The correlation between SDT: Liking with Perceived
Functional Values in Money was found to be statistically significant (β = 0.152, t =
2.353, p < 0.05). Subsequently, this study also found that the other three observed
constructs from the Shopping Destination Trust, namely Ability, Benevolence and
Integrity, did not support H2 for Perceived Functional Values in Money, as three of
them brought p-values > 0.05. Thus, correlations between Ability, Benevolence, and
Integrity with Perceived Functional Values in Money are insignificant.

Table 4.12
Assessing Path Structural Coefficient on Hypothesised Influence of Perceived Values
on Duty-Free Shopping to Shopping Destination Loyalty in Langkawi.

Hypotheses Correlation Std beta SE t-values Supported

H3 Emotional Value -> Destination Loyalty 0.306 0.111 **2.752 Yes

H3 Social Value -> Destination Loyalty 0.347 0.115 **3.123 Yes
H3 Functional Value (Quality) -> Destination 0.001 0.034 0.026 No
Loyalty
H3 Functional Value (Money) -> Destination 0.297 0.065 **4.547 Yes
Loyalty

Referring to Table 4.12, all the research hypotheses were supported based on
the test performed except for Perceived Functional Value in Quality aspect.
Specifically:

H3: Tourists’ Perceived Values positively influence Destination Loyalty.

67
i) Tourists’ perceptions of Emotional Value (EV) positively influence
Destination Loyalty. This study found that the correlation between Tourists’
perceptions of Emotional Value with Destination Loyalty on the duty-free
island of Langkawi is highly significant (β = 0.306, t = 2.752, p < 0.01).
ii) Tourists’ perceptions of Social Value (SV) positively influence Destination
Loyalty. In this study, the correlation between Tourists’ perceptions of Social
Value and Destination Loyalty on the duty-free island of Langkawi was found
to be highly significant (β = 0.347, t = 3.123, p < 0.01).
iii) Tourists’ perceptions of Functional Value (Quality) positively influence
Destination Loyalty. Perceived Functional Value in Quality did not support H3
(c) since this study found that the correlation between Tourists’ perceptions of
Functional Value in Quality with Destination Loyalty on the duty-free island
of Langkawi is insignificant, bringing p-value > 0.05. Thus, the null hypothesis
for H3(c) is not rejected.
iv) Tourists’ perceptions of Functional Value (Price) positively influence
Destination Loyalty. The correlation between Tourists’ perceptions of
Functional Value in Price/Money with Destination Loyalty on the duty-free
island of Langkawi in this study was found to be highly significant (β = 0.297,
t = 4.547, p < 0.01).

4.5.2 Hypothesis Testing for H4: Mediation using Indirect Effect

68
 Table 4.13
Assessing structural path coefficients with mediating effects from multi-dimensional
of Perceived Values.

Hypotheses Indirect Effect: Mediating Path Std beta SE t values Supported

Ability -> Emotional Value -> 0.092 0.064 1.441 No

Destination Loyalty
Integrity -> Emotional Value -> 0.020 0.027 0.730 No
Destination Loyalty
Benevolence -> Emotional Value -> 0.064 0.052 1.244 No
Destination Loyalty
Liking -> Emotional Value -> Destination 0.088 0.044 *2.008 Yes
Loyalty
Ability -> Social Value -> Destination 0.079 0.057 1.384 No
H4
Loyalty
Integrity -> Social Value -> Destination 0.086 0.052 1.644 No
Loyalty
Benevolence -> Social Value -> 0.058 0.055 1.059 No
Destination Loyalty
Liking -> Social Value -> Destination 0.091 0.038 *2.395 Yes
Loyalty
Ability -> Functional Value (Quality) -0.000 0.007 0.012 No
-> Destination Loyalty
Integrity -> Functional Value (Quality) -> 0.000 0.008 0.017 No
Destination Loyalty
Benevolence -> Functional Value 0.000 0.007 0.011 No
(Quality) -> Destination Loyalty.

Hypotheses Indirect Effect: Mediating Path Std beta SE t values Supported

69
 Liking -> Functional Value (Quality) 0.000 0.010 0.025 No
-> Destination Loyalty
Ability -> Functional Value (Money) -> 0.084 0.046 1.834 No
Destination Loyalty
Integrity -> Functional Value (Money) -> 0.038 0.051 0.756 No
H4
Destination Loyalty
Benevolence -> Functional Value 0.052 0.046 1.115 No
(Money) -> Destination Loyalty
Liking -> Functional Value (Money) -> 0.045 0.024 1.908 No
Destination Loyalty

Interestingly, only two out of four inter-constructs of Perceived Values that

fully mediated one out of four inter-constructs of Shopping Destination Trust (SDT).
Referring to table 4.13, most endogenous constructs did not support H4 based on the
test performed. Specifically:

(H4): Shopping Destination Trust will predict Destination Loyalty to duty-free

shopping in Langkawi via the mediating effect of Perceived Values. However, in this
case, only the inter-construct of Liking from Shopping Destination Trust was found to
be mediated by the inter-construct of Perceived Emotional Value (β = 0.088, t =
2.008), and the inter-construct of Perceived Social Value (β = 0.091, t = 2.395) Also,
Figure 4.12 shows the visual estimates of the validated model.

70
 Figure 4.12: G

71
4.6 Effects Size

In order to determine whether or not there is a practical impact of each

independent latent construct and dependent latent construct, an f² effect size analysis
was performed for numerous independent factors on the dependent variable (Cohen
1988). The f² statistic can be used to assess the significance of each effect discovered
by the route model (Cohen 1988).

Table 4.14
The Effect Size of Shopping Destination Trust variables on Perceived Values
variables.
Functional Functional
Emotional Social
Value Value
Value Value
(Money) (Quality)
Ability 0.041 0.023 0.028 0.002
Benevolence 0.018 0.011 0.009 0.002
Integrity 0.002 0.028 0.006 0.005
Liking 0.128 0.105 0.027 0.072

To interpret the impact of f² at the structural level, it has been suggested that
the effect is large when f² is 0.35, medium when f² is 0.15, and small when f² is 0.02
(Cohen 1988). From Table 4.14, it can be summarized that SDT: Ability has a small
effect on the perceived emotional value, social value, and functional value in money
but no effect on the perceived functional value in quality. Next, it was found that
SDT: Benevolence has zero effect on all inter-constructs of Perceived Values.
Meanwhile, as for SDT: Integrity, it was found that Integrity only has a small effect
on perceived social value and zero effect on the remaining inter-constructs of
perceived values. Nevertheless, SDT: Liking was found to accumulate small effects
on all 4 inter-constructs of perceived values in this study.

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Table 4.15
The Effect Size of Perceived Values Variables on Shopping Destination Loyalty
Variables

Destination Loyalty

Perceived Emotional Value 0.086

Perceived Social Value 0.114

Perceived Functional Value (Money) 0.200

Perceived Functional Value (Quality) 0.000

Table 4.15 indicates that perceived emotional value and perceived social value
have small effects on shopping destination loyalty with f² > 0.02. In contrast,
perceived functional value in price/money was found to have a medium effect on
shopping destination loyalty with f² > 0.15. On the contrary, the perceived functional
value in quality for this study was found to accumulate zero effect on shopping
destinations with an f² value of 0.000.

4.7 Predictive Relevance

The Q² test was performed in this study with the aim of measuring the
predictive relevance of the endogenous variables (Stone 1974), and “Q² represents a
measure of how well-observed values are reconstructed by the model and its
parameter estimates” (Vinzi 2010). The Q² values of observed variables for this study
were accumulated through the blindfolding procedure in the PLS path model.

Table 4.16
Predictive relevance (Q²) for the endogenous constructs

73
 Constructs Q² value

Ability 0.000

Benevolence 0.000

Integrity 0.000

Liking 0.000

Perceived Emotional Value 0.440

Perceived Social Value 0.466

Perceived Functional Value (Money) 0.370

Perceived Functional Value (Quality) 0.094

Destination Loyalty 0.597

The Q² test was designed to elicit that the structural models with Q² greater
than zero are considered to have predictive relevance (Hair et al. 2011). Table 4.16
shows that all inter-constructs for Shopping Destination Trust, Perceived Values, and
Shopping Destination Loyalty indicated Q² values greater than zero, representing
predictive relevance (Vinzi 2010). Although inter-constructs of Shopping Destination
Trust indicated Q² value of 0, it has been addressed that the value of zero is arbitrary
for PLS-SEM; zero is the cut-off point (Ringle, 2005). To that end, the structural
model in this study ascertains its capability to predict the endogenous latent variable’s
indicators.

4.8 Discussions on The Findings of The Study.

74
 The goal of this research is to test a hypothesised relationship between trust in
a shopping destination and a customer's perception of the destination's value in order
to shop there. All seven hypotheses passed the test, and although each latent variable
has its own set of endogenous constructs that support it statistically and significantly
(as measured by the t-value), the overall results are consistent. Good convergent
validity and discriminant validity were found for the measures employed in this
investigation. Results were addressed in light of the correlations between the latent
variables of trust in the shopping destination, perceived value, and loyalty to the
shopping destination.

4.8.1 The Correlation Between Shopping Destination Trust with Shopping

Destination Loyalty in Langkawi.

Trust is often linked to destination loyalty (Roodurmun & Juwaheer, 2010).

However, the prevalence of Shopping Destination Trust Construct has been limited
towards its indicative for shopping destination loyalty. In this study, 4 inter-constructs
of Shopping Destination Trust (SDT), namely Ability, Integrity, Benevolence and
Liking, were tested for their correlations with Shopping Destination Trust. The
structure tested in this study was relatively new since it was projected under the
setting of duty-free shopping. Subsequently, it was revealed that only 2 inter-
constructs of SDT, namely Ability and Liking, were correlated to Shopping
Destination Loyalty in Langkawi. This finding is consistent with Giffin (1967) and
Blau (1964), who viewed ability as the core component that forms customer trust
during shopping. This study also elicited an answer to the complex question of its
correlation with shopping destination trust. Similarly, research has consistently shown
that liking is a prominent element of trust in shopping, whereas some historians had
argued that supported consumers must like a certain brand or service before
consumption to which; Lau and Lee (1999) stated, “When a consumer likes a brand,
the consumer is bound to find out more about it, setting the stage for trusting it.
(p.349). Besides, Taylor, Peplau, and Sears (1994, p.349) also argued that “traits that
generate likeability have been found to emphasize sincerity, dependability,
trustfulness, thoughtfulness, and consideration, all of which are connected with trust.”
Not to mention, preliminary work on the relationship between destination trust and
loyalty was undertaken by Roodurmun and Juwaheer (2010), which pointed out that
destination trust can be regarded as an attitudinal construct, and it can be clearly

75
argued that its evaluation may vary from one person to another in influencing their
destination loyalty.

Contrary to expectations, this study did not find a significant correlation

between the inter-construct of Integrity and Benevolence for Shopping Destination
Trust with Destination Loyalty in Langkawi compared to what Gefen and Straub
speculated that in (2004). Figures 4.13 and 4.14 illustrate the elicited answers to why
the Integrity aspect did not support the dimension of trust to influence destination
loyalty in Langkawi during the endemic of the COVID-19 era.

Figure 4.13: Tourist’s Review of Duty-Free Shopping In Langkawi Towards Its

Integrity Aspect.

Figure 4.14 indicates that duty-free shops in Langkawi did not reflect the
determinant of integrity indicators of INT1 whereby “Langkawi provides a duty-free
shopping environment consistent with that being advertised”. Due to the limited
product choice, which did not align with what had been advertised, the tourist who
visited the shop was disappointed, given his unfulfilled expectation. Thus, in this case,
integrity has failed in building trust to influence revisit intention and the island.

76
 Figure 4.14: Tourist’s Review of Duty-Free Shopping in Langkawi Towards
Its Integrity Aspect.

Figure 4.14 indicates that the duty-free shop in Langkawi did not reflect the
determinant of integrity indicator INT3, whereby duty-free shop employees in
Langkawi are not ethical. Due to the early closing of the shop which is not consistent
as per what had been practiced before the pandemic of COVID-19, the integrity of the
duty-free operator was found to be insignificant in building trust to influence revisit
intention at the island.

Figure 4.15: Tourist’s Review of Duty-Free Shopping in Langkawi Towards Its

Benevolence Aspect Pre-Pandemic Of COVID-19.

77
 As for the benevolence aspect, Figure 4.1.5 illustrates the poor customer
service received by the tourist at the duty-free shop in Langkawi before the pandemic
of COVID-19. Surprisingly, this study reveals a clear trend in decreasing service
quality from employees at the duty-free shop in Langkawi as benevolence was
subscribed to the belief of insignificant aspect in building trust amongst tourists during
the endemic of COVID-19. Figure 4.16 portrays the poor benevolence aspect in the
timeline of endemic COVID-19 at duty-free shops in Langkawi.

Figure 4.16: Tourist’s Review of Duty-Free Shopping in Langkawi Towards Its

Benevolence Aspect During the Endemic Of COVID-19.
Prominently, the degree of trust a person has in a tourist destination is a
function of various points of reference to which accessible information obtained
online from this kind of review website source also contributes to the tourist’s final
picture (Ekinci, 2003). Relatively, this contributing factor would shape their trust and
loyalty towards a destination (Roodurmun & Juwaheer, 2010). This study produced
results which corroborate the findings of the previous work in this field, which
reported the indirect effect of destination trust towards destination loyalty (Su et al.,
2017; Nadarajah & Samalu, 2018; Alves et al., 2019; Elbaz et al., 2021).

78
4.8.2 The Correlation Between Shopping Destination Trust with Perception of
Values amongst Shopping Tourists in Langkawi.

Shopping Destination Trust (SDT), mainly in the liking aspect, suggests a role
of promoting positive effects on each dimension of perceived value (emotional value,
social value, functional value [quality/performance], and functional value [price/ value
for money]) towards duty-free shopping in this study. The current findings add to a
growing body of literature on liking as the core dimension of SDT, particularly in
duty-free shopping, supported by the consistent findings of the liking aspect for trust
towards its positive influence on 4 dimensions of perceived values that were reported
by Choi et al., (2018).

This study has demonstrated, for the first time, that multidimensional
perceived Value, namely as PERVAL by Sweeney and Soutar (2001), was an
appropriate measurement scale for shopping tourism or travel retail in the scope of
duty-free shops study application during the endemic of COVID-19. The analysis of
Perceived value undertaken here has extended the knowledge of the exploration of
emotional value (e.g., “shopping trips make me happy”), social value (e.g., “shopping
trips make me feel accepted by my peer group”), and subcomponents of functional
value (Choi et al., 2016; Choi et al., 2018) in the context of duty-free shopping trips
particularly amongst endemic COVID-19 tourists.

The relevance of perceived value amongst shopping tourists in this study

contributes additional evidence to support some authors who speculated that a
competitive advantage for a company could be found in a product's higher perceived
value to customers (Rasheed & Abadi, 2014). Whilst this study did not confirm all
four inter-constructs of Shopping Destination Trust (SDT) equally to four inter-
constructs of perceived value adopted from Sweeney and Soutar (2001), it did
partially substantiate the correlation of Shopping Destination Trust with Perceived
Values in duty-free shopping destination, Langkawi.

79
4.8.3 The Correlation Between Perception of Values amongst Shopping
Tourists with Shopping Destination Loyalty in Langkawi.

The finding from this study confirms the association between perceived value
and destination loyalty, specifically in terms of perceived emotional value, social
value and functional value in price/money. However, it is somewhat surprising that no
significant influence from the perceived functional value in quality towards
destination loyalty was noted in duty-free shopping during the endemic of COVID-19
in Langkawi. In contrast to earlier findings, however, no evidence of destination
loyalty was detected for perceived functional value in quality for tourist destinations
(Jeong & Kim, 2019; Suhartanto et al., 2020). This suggests that local tourists
prioritize the perceived functional value in money for duty-free shopping in Langkawi
compared to the perceived functional value in quality. It is difficult to explain this
result, but it might be related to how affordable rates offered in the duty-free
Langkawi during the endemic of COVID-19 promotes the island as the famous
destination choice amongst local tourists in Malaysia (The Star, 2022). Figure 4.17
demonstrates the review of local tourists in Langkawi that reflects the influence of
price towards destination loyalty which directly promotes honest recommendations for
duty-free shopping on the island.

Figure 4.17: Tourist Review on Price Aspect and Its Influence Towards Destination
Loyalty at Duty-Free Shops in Langkawi.

80
 Additionally, people were optimistic about travel aligned with increased
vaccination rates, promoting more travel demand and good travel sentiment data
(Kiesnoski, 2021). The observed correlations between perceived emotional and social
value could be attributed to a survey in March by The Vacationer organization, which
found that people plan to travel more upon the end of the pandemic, and some were
most likely to return to pre-COVID travel habits (Jones, 2022). A possible explanation
for this might be that tourist, in individuals, planned to travel more after being strained
by a lockdown through the perceptions of rewarding pleasant feelings attributed to the
emotional and social values at the particular destination. Fauziah Sa’ad, one of the
local tourists in Langkawi during endemic COVID-19, stated that “We are social
beings. The way I see it, many want to visit Langkawi not just for a holiday whereas
they also want to release their stress. Being confined at home for a long time is quite
stressful.” (Jamal, 2022). Thus, besides perceived value in price/money, perceived
emotional and social values also emerged as reliable predictors of destination loyalty
during endemic COVID-19, particularly for duty-free shopping motives.

4.8.4 The Mediating Role of Perceived Values Towards Trust and Shopping
Destination Loyalty.

Rasheed and Abadi (2014) have attempted to explain that the relationship
between perceived value and customer loyalty is stronger than trust and customer
loyalty, which thus far have linked the role of perceived value in mediating trust and
loyalty in this study, particularly in the tourist destination context. This also accords
with earlier observations in this study, which showed that the component of Shopping
Destination Trust, namely, Perceived Emotional and Social Values, mediated Liking
towards Shopping Destination Loyalty at Langkawi. These findings will doubtless be
much scrutinized, but there are some immediately dependable conclusions for
mediating effects of perceived value among trust and loyalty at duty-free shopping in
Langkawi, especially as perceived by tourists in endemic COVID-19.

A possible explanation for these results may be the lack of adequate

application of 4 dimensions of perceived value towards the setting of duty-free
shopping. Therefore, these results needed to be interpreted with caution, as the
perceived emotional value and perceived social value are valid mediators for trust and
loyalty in this study. Thus, the present results are significant in at least two major

81
respects. A recent study has noted the importance of perceived values as a mediator
towards tourist loyalty in duty-free shopping (Xu et al., 2022) since higher perceived
value can shape consumers’ future behavioural intentions in two ways which are by
informing product preferences and by encouraging word-of-mouth communication
about the product or destination (Wang & Wang, 2010; Gallarza & Gil-Saura, 2013).
Whilst this study did not confirm 4 multi-dimensions of perceived values by Sweeney
and Soutar (2001), it did partially substantiate its role as mediating variable for trust
and loyalty at the duty-free shopping destination, Langkawi.

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 CHAPTER FIVE

RECAPITULATIONS, LIMITATIONS, IMPLICATIONS,

RECOMMENDATIONS AND CONCLUSION

5.1 Preface

Findings are discussed in this chapter. An overview of the study's findings is

presented first, detailing how the research objectives were met. Subsequently, a deeper
dive into the study's associated problems were presented. Finally, a satisfactory
conclusion brings this section to a close.

5.2 Summary of the Study’s Findings

Data statistics were presented in the previous chapter. The further commentary
was also presented to help readers make sense of the study's statistical data, which can
be a bit complex for laypeople. Based on the explanation, the researcher decided it
would be best to recap the study's findings. That's what the researcher will do in the
next few paragraphs. The strategy followed is, first, to restate the major goal of the
investigation and its precise objectives as to which direction this study was travelling
and summarise the findings in line with the given purpose and objectives. Stated
below are the research questions of the study:

RQ1: How do tourist shopping destination trust and perceived values influence
destination loyalty toward Langkawi duty-free shopping?

RQ2: Does a tourist’s perceived value mediates the relationship between shopping
destination trust and destination loyalty towards Langkawi duty-free shopping?

5.3 Recapitulation of The Study Findings

83
 The study specifically addresses the post-COVID-19 shopping behaviour
regarding the changes in destination trust and value perceptions amongst tourists
during their consumption of duty-free shopping and its influence on destination
loyalty. Data was gathered online from local tourists who visited Langkawi after the
announcement of the endemic COVID-19. A quantitative approach through a self-
completed questionnaire in the Google Form feature was applied to gather the
required data and information. By using the Partial Least Square algorithm and
bootstrapping calculation of SEM through Smart PLS software version 4.0, significant
results on issues related to the study were gained.

5.3.1 Research Question One: How do tourist shopping destination trust and
perceived values influence destination loyalty toward Langkawi duty-free shopping?

The first question in this study sought to determine the attribute of shopping
destination trust and perceived values towards its influence on destination loyalty. As
mentioned in the literature review, 4 components of Shopping Destination Trust,
namely Ability, Integrity, Benevolence and Liking, were proven significant in the
prior study of shopping tourism by Choi et al. (2018). It is interesting to note that in
all four inter-constructs of SDT that were tested upon its effect on the destination in
this study, only two inter-constructs of SDT which are Ability and Liking, were found
to explain the relatively good correlation between trust and loyalty of duty-free island,
Langkawi. Therefore, this study has identified that the increased trust amongst tourists
in the ability of Langkawi as a competent shopping destination and their liking
towards Langkawi are associated with destination loyalty, whereas it will display a
higher level of product promotion through good recommendations (Low et al., 2021).

84
 This study confirms the association between perceived values [ perceived
emotional value, perceived social value and perceived functional value in
price/money] towards destination loyalty in the duty-free island of Langkawi.
Meanwhile, one unanticipated finding was that perceived functional value in quality
did not influence destination loyalty for duty-free shopping in Langkawi amongst
local tourists from endemic COVID-19. It seems possible that these results are due to
the affordable rates being perceived as more noteworthy compared to the quality of
the duty-free products.

Nonetheless, the answers to question one in this study were elicited using the
Regulatory Focus Theory (RFT) by Higgins (1997), whereas RFT is a goal-pursuit
theory based on two regulatory-focus orientations (promotion and prevention). This
theory explains that in the process of making a choice, people automatically shift their
attention from promoting what will bring them the most joy (such as hope and
success) to preventing what would bring them the most pain (such as loss). Hence,
RFT was adopted as the supporting theory in this study to connect trust (which
involves the destination’s reputation) with perceived value during shopping trips and
promote destination loyalty.

5.3.2 Research Question Two: Does a tourist’s perceived value mediate the
relationship between shopping destination trust and destination loyalty towards
Langkawi duty-free shopping?

This study’s evidence suggested a role for Perceived Values in mediating Shopping
Destination Trust with Destination Loyalty in Langkawi. Out of four inter-constructs
of Perceived Values, only two mediates trust towards destination loyalty in this study:
perceived emotional and social values. In general, therefore, tourist perceived value
partially mediates the relationship between shopping destination trust and destination
loyalty towards Langkawi duty-free shopping.

85
5.4 Hypotheses Testing

The study's objectives have been answered using the descriptive analysis,
which explains the travel behaviour during the endemic of COVID-19 at Langkawi; to
support and strengthen it, an inferential analysis has been applied and used in testing
the hypothesis. The result of Partial Least Structural SEM indicated that the Shopping
Destination Trust had significant effects towards Shopping Destination Loyalty in
terms of ability and liking, which supported hypothesis number 1 (H1) of the study.
As for hypothesis number two, SDT significantly affected the perceived values [with
endogenous constructs of Ability, Integrity and Liking], and at the same time,
hypothesis two (H2) was also supported. Following H3(a,b,d) that was also supported
[with endogenous constructs of Perceived Emotional, Social and Functional Value in
Price/Money]. However, H3(c) was not supported as the null hypothesis for H3(c) was
not rejected. Lastly, H4 was proven with partial mediation from perceived values
towards destination trust and destination loyalty for duty-free shopping in Langkawi.

86
5.5 Limitations and Suggestions for Future Research.

Similar to other research study accomplishments, this study also has its fair
share of limitations that deserve further justifications. There are constraints on the
extrapolation of these findings. The size of the study's population or its representative
sample is the first caveat. This study focused on the local tourists that consumed duty-
free shopping in the selected destination of Langkawi Island, and the results only been
made in the study’s contextual setting. In order to provide a comprehensive and
ambitious description of duty-free shopping destinations, the research may be
conducted at other states' duty-free tourism destinations, which will also improve the
study's findings. Additional research might be undertaken on other duty-free islands in
Malaysia to see if the location and characteristics employed in this study can be
effectively applied to other duty-free islands. More importantly, this study is limited
by the paucity of time duration and minimum sample size usage, which the sample
was nationally representative of endemic COVID-19 local tourists but would tend to
miss people who were significantly duty-free shopping tourists. Thus, a larger sample
size with a longer observation time frame is needed to further detect the structured
model's effect.

The study's methodology is the second most likely constraining factor. The
vast majority of research within the field of retail tourism has focused only on
shoppers as their subject. No one in the research community has previously
considered the challenges faced by management and operators following the spread of
the COVID-19 pandemic. No research existed that considered the perspectives of
duty-free retailers and their management.

Much potential future research can be surveyed and investigated for the study.
As the travel retail of duty-free sectors is continuously being developed and
mushrooming, from the management point of view, a study can be conducted to
explore and discover what are the strategies that can be used to improve service
quality just so it could affect destination loyalty and perceived values amongst
tourists, which indirectly will maximize profits for shopping tourism at concentrated
duty-free destinations, particularly in Malaysia.

5.6 Recommendations and Conclusion

87
 This research has thrown up many questions in need of further investigation.
Shopping Destination Trust played a prominent role in affecting the tourists’ loyalty,
yet the application of this dimension is relatively new for duty-free shopping. More
research is required to establish a greater degree of accuracy on Shopping Destination
Trust towards duty-free shopping destinations. A greater focus on dimensions of trust
in a duty-free shopping destination (benevolence, integrity, competence,
predictability, ability, transaction) could produce interesting findings that account
more for reliable predictors of shopping destination loyalty.

As stated in the earlier section, duty-free shopping tourists in Malaysia,

specifically in Langkawi, have been facing trust issues in the benevolence aspect. The
issue on this matter is intriguing and could be usefully explored in further research,
whereas large randomised controlled trials could provide more definitive evidence. If
the debate is to be moved forward, a better understanding of perceived service quality
amongst duty-free shopping tourists needs to be developed. The management of duty-
free shops should play a critical role in dodging this problem before it becomes more
severe.

Returning to the hypothesis/question posed at the beginning of this study, it is

now possible to state that shopping destination trust and tourists’ perceived values did
influence shopping destination loyalty to the duty-free island of Langkawi during the
endemic of COVID-19. The study has gone some ways towards enhancing the
understanding of perceived values in mediating the effect of trust on destination
loyalty, particularly in the travel retail sector of duty-free shopping.

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APPENDICES

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 APPENDIX 1
Targeted Online Community & Questionnaires Distribution

Figure 3.4: Telegram Page of The Targeted Community for Sample: “Langkawi Info
Semasa”.

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 F
igure 3.5: Preface of the Self-Administered Questionnaires for the Survey

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 Fi
gure 3.6: Questionnaires Distribution to The Targeted Online Community

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 Figure 3.7: Reliability Test of Constructs Items using SPSS software

F
igure 3.8: Google Forms’ Required Option to Avoid Missing Response

APPENDIX 2
Summary of Responses for Descriptive Analysis

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 Fi
gure 4.1: Summary Responses for Gender of Respondents

Figure 4.2: Summary Responses for Age of Respondents

F
igure 4.3: Summary Responses for Marital Status of Respondents

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Figure 4.4: Summary Responses for Academic Qualifications of Respondents

Figure 4.5: Summary Responses for Employment Status of Respondents

Figure 4.6: Summary Responses for Monthly Income of Respondents

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 Figure 4.7: Summary Responses for Frequency of Visitation to Langkawi

APPENDIX 3
Statistical Results from Smart PLS Software Version 4 For Inferential Analysis

Figure 4.18: Confirmatory Factor Analysis (CFA) Results for The Study (LK2 had
been removed accordingly as it loaded unacceptable value.)

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 F
igure 4.19: Construct Reliability and Validity Results for The Study

F
igure 4.20: Coefficient of Determination Assessment Results

Figure 4.21: Bootstrapping Results for H1

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 Fig
ure 4.22: Bootstrapping Results for H2 & H3

Figure 4.23: Bootstrapping Results for H4

Figure 4.24: Effect Size Assessment Results

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 AUTHOR’S PROFILE

Nur Atikah Bt Md Fadzil obtained Bachelor of Science in Tourism

Management (Hons.) in 2021 from UiTM, Bandaraya Melaka. She had a professional
experience in retail management with Senai Airport Terminal Services Sdn Bhd which
sparked her study interest in the duty-free shopping area. Currently, she is pursuing a
master’s degree, MSc in Tourism Management, at UiTM Puncak Alam, Selangor.

Publication:

Mahdzar, M., Baharum, S. H., Sahib, M., Fadzil, N. A. M., Kamal, S. N. J. A., &
Hamidi, S. N. A. M. (2022). Effects of Factors Influencing Hotel Customers'
Online Booking Intention using Malaysian Online Local Platform.
International Journal of Academic Research in Business & Social Sciences,
12(11) 659-668. http://dx.doi.org/10.6007/IJARBSS/v12-i11/15610

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