THE FACTORS AFFECTING LOW PURCHASE INTENTIONFOR LAUNDRY SERVICES (WITH SPECIAL REFERENCE TO MORATUWA MUNICIPALITY) byW.
H. J. Fernando0000025594An Integrated Research Project submitted to the Sri Lanka Institute of Marketing in partial fulfilment of the requirements for the Postgraduate Diploma in MarketingSupervisor: Mr.
Suran De SilvaSri Lanka Institute of MarketingPostgraduate Diploma in Marketing (PGDIP)Location (Colombo)June, 2018Research Report EvaluationMarking SchemeStudent Name W. H. J. FernandoRegistration Number 0000025594Programme Postgraduate Diploma In MarketingSubject Individual Integrated Research ProjectTitle Allocated Marks Awarded MarksTopic – Academic, Relevance, and formulation 05 Defining the problem or research area 05 Literature Review 10 Study Design/Methodology 10 Data presentation. Validity and scope of data 10 Analysis and Findings 20 Conclusion and Recommendations 20 Reference(Harvard Reference System) 10 Adherence to Stipulated Format 10 Total 100 Special Remarks:Signature of Examiner AUTHORISATIONI hereby declare that I am the sole author of this Integrated Research Project. I authorise the Sri Lanka Institute of Marketing to lend this dissertation to other institutions or individuals for the purpose of scholarly research.
I further authorise the Sri Lanka Institute of Marketing to reproduce the dissertation by photocopying or by other means, in total or in part, at the request of the other institutions or individuals for the purpose of scholarly research.W. H. J.
FernandoAcknowledgementI take this opportunity to thank everyone who helped me by supporting & guiding me with words & actions throughout the course of this Post-Graduate Diploma in Marketing.Special thanks goes to Mr. Suran De Silva, my supervisor for the invaluable support & guidance given and to Mr. Ravi Bamunusinghe, my lecturer for the constructive criticism along with friendly advice throughout the past few months.
I am extremely grateful to them and appreciate all their hard work which helped me to successfully complete the research.I also express my thanks to SLIM for providing us students with this opportunity along with all the guidance we needed to succeed, not forgetting to thank Mr. Lasith Nanayakkara our coordinator for a job well done. Further I would like to thank the two panel members who I was fortunate enough to talk with during the research proposal presentation, for giving their ideas & suggestions which helped me to improve my research.Finally, I would also like to thank my family for the support given throughout the past 2 years & helping me in every way possible to complete the Post-Graduate Diploma in Marketing.Thank youTable of Contents TOC o “1-3” h z u Abstract PAGEREF _Toc516403816 h 1Chapter 1 – Introduction PAGEREF _Toc516403817 h 21.1Background of the Industry PAGEREF _Toc516403818 h 21.
2Background of the Problem PAGEREF _Toc516403819 h 2a.Results of Preliminary Survey on Laundromats PAGEREF _Toc516403820 h 4b.Results of Preliminary Survey on Potential Consumers for Laundromats PAGEREF _Toc516403821 h 51.3Problem Statement PAGEREF _Toc516403822 h 81.4Significance of the exploration of the problem PAGEREF _Toc516403823 h 91.5Objectives PAGEREF _Toc516403824 h 101.6Delimitations of the study PAGEREF _Toc516403825 h 101.
7Outline of the report PAGEREF _Toc516403826 h 11Chapter 2 – Literature Review PAGEREF _Toc516403827 h 122.1Purchase Intention PAGEREF _Toc516403828 h 122.2Awareness PAGEREF _Toc516403829 h 122.
3Trust PAGEREF _Toc516403830 h 132.4Cost PAGEREF _Toc516403831 h 142.5Quality PAGEREF _Toc516403832 h 152.6Convenience PAGEREF _Toc516403833 h 152.7Summary of Literature Review PAGEREF _Toc516403834 h 16Chapter 3 – Methodology of Perspective PAGEREF _Toc516403835 h 173.
1Conceptual Framework PAGEREF _Toc516403836 h 173.2Hypotheses PAGEREF _Toc516403837 h 183.3Operationalization PAGEREF _Toc516403838 h 1815 – 19 PAGEREF _Toc516403839 h 193.4Research Onion PAGEREF _Toc516403840 h 203.5Data Collection Approach PAGEREF _Toc516403841 h 21a.Secondary Data Collection PAGEREF _Toc516403842 h 21b.Primary Data Collection PAGEREF _Toc516403843 h 21c.
Primary Data Collection Method PAGEREF _Toc516403844 h 21d.Sampling Plan PAGEREF _Toc516403845 h 223.6Data Analysis using Descriptive Statistics and Inferential Statistics PAGEREF _Toc516403846 h 233.7Correlation Analysis PAGEREF _Toc516403847 h 23Chapter 4 – Data Analysis PAGEREF _Toc516403848 h 244.1Reliability Measurement PAGEREF _Toc516403849 h 244.2Statistics used in the study PAGEREF _Toc516403850 h 244.
3Customer Profile Analysis PAGEREF _Toc516403851 h 254.4Correlation of Demographic Variables PAGEREF _Toc516403852 h 274.5Descriptive Analysis PAGEREF _Toc516403853 h 284.6Correlation Analysis PAGEREF _Toc516403854 h 294.7Regression Analysis PAGEREF _Toc516403855 h 304.8Regression Coefficients Analysis PAGEREF _Toc516403856 h 31Chapter 5 – Conclusions & Recommendations PAGEREF _Toc516403857 h 345.1Hypothesis Testing PAGEREF _Toc516403858 h 345.
2Recommendations PAGEREF _Toc516403859 h 375.3Suggestions for the future of the laundry industry in Moratuwa PAGEREF _Toc516403860 h 395.4Limitations and Future Research Opportunities PAGEREF _Toc516403861 h 39References PAGEREF _Toc516403862 h 41Annexure 1 – Research Time Plan PAGEREF _Toc516403863 h 44Annexure 2 – Preliminary research done on laundromats PAGEREF _Toc516403864 h 45Annexure 3 – Preliminary research done on potential consumers PAGEREF _Toc516403865 h 46Annexure 4 – Questionnaire used for Primary research PAGEREF _Toc516403866 h 47List of Figures TOC h z c “Figure” Figure 1: Municipality of Moratuwa PAGEREF _Toc516403802 h 3Figure 2: Number of customers handled by a laundromat per day – Actual vs Capacity PAGEREF _Toc516403803 h 4Figure 3: Potential Consumer feedback on preference for regular laundromat use PAGEREF _Toc516403804 h 5Figure 4: Potential for laundry services in Moratuwa per Day PAGEREF _Toc516403805 h 7Figure 5: Feedback on favourability in doing own laundry PAGEREF _Toc516403806 h 8Figure 6: Conceptual Framework for consumer purchase intention PAGEREF _Toc516403807 h 17Figure 7: Research Onion PAGEREF _Toc516403808 h 20Figure 8: Values of Correlations PAGEREF _Toc516403809 h 23List of Tables TOC h z c “Table” Table 1: Urban Sector household income by household income decile PAGEREF _Toc516403750 h 5Table 2: Operationalization table of the research PAGEREF _Toc516403751 h 18Table 3: Sampling Plan Summary PAGEREF _Toc516403752 h 22Table 4: Reliability Measurement of the study PAGEREF _Toc516403753 h 24Table 5: Statistics of the study PAGEREF _Toc516403754 h 24Table 6: Gender representation in the study PAGEREF _Toc516403755 h 25Table 7: Age representation in the study PAGEREF _Toc516403756 h 25Table 8: Household size representation in the study PAGEREF _Toc516403757 h 26Table 9: Occupation representation in the study PAGEREF _Toc516403758 h 26Table 10: Household Income representation in the study PAGEREF _Toc516403759 h 26Table 11: Occupation * Income Cross tabulation PAGEREF _Toc516403760 h 27Table 12: Descriptive Statistics of the study PAGEREF _Toc516403761 h 28Table 13: Correlation Analysis of the study PAGEREF _Toc516403762 h 29Table 14: Model summary for the study PAGEREF _Toc516403763 h 30Table 15: ANOVA Table Analysis for the study PAGEREF _Toc516403764 h 31Table 16: Coefficients of Awareness PAGEREF _Toc516403765 h 32Table 17: Coefficients of Trust PAGEREF _Toc516403766 h 32Table 18: Coefficients of Cost PAGEREF _Toc516403767 h 32Table 19: Coefficients of Quality PAGEREF _Toc516403768 h 33Table 20: Coefficients of Convenience PAGEREF _Toc516403769 h 33Table 21: Suggestion for future of laundry industry PAGEREF _Toc516403770 h 39AbstractThis research report was conducted in Sri Lanka to analyse & evaluate the factors affecting low purchase intention for laundry services with special reference to Moratuwa Municipality. The laundry industry in Sri Lanka as well as in the Moratuwa Municipality are yet in the stage of development. This could be due to the negative perception the locals used to have about people involved in washing others clothes as low cast in the society. However, the laundry industry in Sri Lanka has much to grow.
The researcher hopes to get in to this area of business which is how this area was taken in to consideration & then further explored through a preliminary research to confirm the current situation in the laundry industry of the Moratuwa Municipality. It was found that the consumer purchase intention was extremely low for laundry services even though it is an essential household need for all.Moving forward the researcher conducted a scientific research and chose to follow the deductive approach for the study. In this process many literature of past studies performed on factors affecting customer purchase intention in similar settings were critically reviewed and subsequently a conceptual framework was developed by the researcher for this study.The conceptual framework proposed by the researcher consisted of five independent variables which are “Awareness”, “Trust”, “Cost”, “Quality” and “Convenience” and “Purchase Intention” as the dependent variable. The research was conducted using “Positivism” as the philosophy with the deductive approach. The strategy used was mono method quantitative surveys in a cross sectional time horizon.
100 responses were collected as the samples in a face to face setting through interviewer administrated questionnaire.The collected data was then analysed by the researcher using both descriptive and inferential statistics with aid of SPSS software package to produce a meaningful outcome. The outcome of the research was that out of the five independent variables “Quality” was rejected while “Awareness”, “Trust”, “Cost” and “Convenience were accepted.The model summary which indicated a R square value of 30.4% suggests that the model proposed could only explain part of the variance in Purchase Intention and that there are other variables that need to be identified, thus giving the opportunity for future research.Chapter 1 – IntroductionThis research was conducted by the researcher with the intention of entering in to the laundry industry of Sri Lanka in the near future.
The researcher hopes to commence this new business venture starting from the Moratuwa Municipality. Accordingly, the research has been structured to support this initiative.Background of the IndustryThe potential for growth of the laundry industry in Sri Lanka is huge and is turning in to a more formal one which provides professionals services to both individuals & corporates CITATION Jay12 l 3081 (Jayasuriya, 2012).
According to CITATION Dai17 l 3081 (Daily Mirror, 2017); the laundry industry in Sri Lanka has much to grow and is yet to be touched by modern technology.The laundry industry in Sri Lanka used to be a family oriented business & the people involved in it were perceived as members who belonged to a low cast by the society. Due to this even today, very few enter the laundry industry and it explains why this industry is yet to develop.
However laundry services is an essential need for any household and currently many spend hours & hours doing their own laundry. The Laundromat, WashApp & hotel laundries are some popular laundries in Colombo. Moratuwa municipality also has a few laundries known in that area & most of them are small business owners.Background of the ProblemMoratuwa Municipality is a large urban area in the Colombo District. It is situated in the south-western coast of Sri Lanka.
Refer Figure 1 for the map placement of Moratuwa Area. Including the city of Moratuwa, it compromises of 22 main areas with a total population of 182,065 (Source: Performance Report Colombo District Secretariat 2016). Figure SEQ Figure * ARABIC 1: Municipality of Moratuwa06332855Source: Survey Department of Sri Lanka0Source: Survey Department of Sri LankaCurrently there are laundry services in the Moratuwa area.
However, it was identified that most people in Moratuwa are not making use of laundry services. This was confirmed by the researcher through a preliminary research which was conducted using interviewer administrated surveys on both laundromats (Refer Annexure 2) & potential consumers (Refer Annexure 3). Judgmental sampling technique was used in both cases to ensure that the small sample is representative & for it to provide accurate results.Results of Preliminary Survey on Laundromats01958340Figure SEQ Figure * ARABIC 2: Number of customers handled by a laundromat per day – Actual vs Capacity0Figure SEQ Figure * ARABIC 2: Number of customers handled by a laundromat per day – Actual vs CapacityFor the preliminary survey, 02 of the most popular laundromats in Moratuwa were selected. The results showed that their target market consists of middle & above income earners. While 18 is their average number of customers per day, they have a capacity of handling at least 50 customers per day, which shows that their resources are not effectively utilized upto their total capacity. Refer Figure 2 for the diagrammatical illustration of the number of customers an average laundromat can handle vs how many it actually handles per day.
Clearly there is a significant gap of 64% between the 02 numbers.Results of Preliminary Survey on Potential Consumers for LaundromatsThe second part of the preliminary survey was conducted by interviewing 10 people who were potential consumers for laundromats. The sampling was done in a supermarket in Moratuwa during both morning & evening hours. Housewives & the working crowd was interviewed. All 10 interviews were conducted after getting a successful response for the qualifying questions.
The company & employment level/designation of the interviewee, spouse & parents (if living with parents) were questioned and people who provided a response to support a household monthly income over 70,000 were the successors chosen for the sample of 10 middle & above income earners. 0643890Figure SEQ Figure * ARABIC 3: Potential Consumer feedback on preference for regular laundromat use0Figure SEQ Figure * ARABIC 3: Potential Consumer feedback on preference for regular laundromat useAccording to them 70% preferred using laundry services regularly, while the balance 30% did not show interest in regular laundromat use. Refer Figure 3.Moratuwa Municipality is an urban area. The average household size is 04 for both Colombo District & Urban areas in Sri Lanka (Source: Department Of Census And Statistics, Sri Lanka – 2016). The share of income to total household income by household income decile for the urban sector is projected in Table 1, highlighting the target income groups accounting to 73% of the total households of Moratuwa. Table SEQ Table * ARABIC 1: Urban Sector household income by household income decile029845Source: Department Of Census And Statistics, Sri Lanka (2016)0Source: Department Of Census And Statistics, Sri Lanka (2016)Accordingly the potential number of households who would use laundromats would be 33,227 Nos.This survey also identified how often a person does their household laundry.
In average 30% do their laundry 6 times a week while 50% does it 3 times a week & the balance 20% does laundry once a week. Through this the cumulative number of times the potential households do laundry within a week as well as within a day were calculated.With the above calculation we can come to a conclusion that 16,613 is the potential number of households needing laundry services in Moratuwa per day. Yet when the same interviewees were questioned about how often they use laundry services; 30% responded by saying 3 times a year, another 30% used laundry services 6 times a year, 20% mentioned using it once a month & only 10% uses laundry services once a week. Through this the cumulative number of times the potential households use laundry services within a week as well as within a day were calculated.01367790Figure SEQ Figure * ARABIC 4: Potential for laundry services in Moratuwa per Day0Figure SEQ Figure * ARABIC 4: Potential for laundry services in Moratuwa per DayWith the above calculation we can come to a conclusion that 901 is the actual number of households using laundry services in Moratuwa per day, even though 16,613 is the potential number of households needing laundry services in Moratuwa per day. There is a significant gap between the 02 numbers as shown in Figure 4. 15,712 or 95% is the untouched potential.
Additionally a person’s favourability in regard to doing their own laundry was questioned. No one showed extreme interest in doing laundry, but 30% were positive about doing laundry and said that they didn’t mind doing it. 40% mentioned that they dislike it & 30% said they strongly dislike it.
Refer Figure 5.left0Figure SEQ Figure * ARABIC 5: Feedback on favourability in doing own laundry0Figure 5: Feedback on favourability in doing own laundryProblem StatementAccording to the Background study the researcher was able to identify that the laundry Industry in Moratuwa Municipality has a huge potential which the current players haven’t been able to cater. Statistically, in average each laundromat is not utilizing 64% of their capacity. And their target market, who are middle ; above income earners account up to 73% of the population in Moratuwa.Furthermore 70% of the interested population are interested about using laundromats on a regular basis in addition to the 70% who were negative about doing their own laundry.
The background research also showed that only 5% of the potential middle ; above income households use laundromats per day; subject to their frequency of doing day to day laundry.Gathered data shows that the laundry industry in Moratuwa is not being utilized by the potential customer base. On these grounds the researcher has carried out a research to find out “What are the factors affecting low purchase intention for laundry services with special reference to Moratuwa Municipality”.Significance of the exploration of the problemSignificance to the ResearcherThe researcher will be able to gain knowledge in conducting research with hands on experience. With the findings of this research, the researcher has gained insights of the current laundry market expectations ; why the industry hasn’t been able to cater for it successfully, within the Moratuwa Municipality.
Also this would be a stepping stone for the researcher to get in to the laundry industry as intended.Significance to the ReaderThe reader will be aware of the current status of the laundry industry in Moratuwa. Specifically about the factors affecting the low purchase intention for laundry services with special reference to Moratuwa Municipality. Also the reader would gain knowledge about the consumer expectations related to the laundry industry. Significance to the IndustryThis research will serve as knowledge & guidance for the existing laundry service providers in Moratuwa. They can use this research to identify their strengths, weaknesses, opportunities and threats. This will help them to improve their individual businesses which will work for the overall benefit of the laundry industry.Significance to the EconomyKnowledge about consumer purchase intention is important for all industries.
This research could be relevant across multiple industries, where they can use the findings for their benefits accordingly. Additionally, the benefits that this research provides the researcher, reader & industry would indirectly have a positive effect on the growth of the economy.ObjectivesPrimary Objective:To identify factors affecting Low Purchase Intention for Laundry Services in Moratuwa. Secondary Objectives:To identify the most determinant factor(s) affecting customer’s purchase intention for laundry services in Moratuwa. To propose how laundry services can attract potential customers in Moratuwa.To explain consumer expectations for the future of laundry services in Moratuwa.Delimitations of the studyThere are many issues that need be considered as delimiting parameters for this study as mentioned below.
Inter- Relationship between Independent Variables are not considered through this study.The independent variables have been derived through literature review and there can be space for more important variables which haven’t been yet explored. Thus this research will be valid only within the constructed conceptual framework.The literature review mainly compromises of non-local markets, which could be a limiting factor.The samples considered for the research were picked up only from areas of Katubedda & Idama while the balance 20 areas were not studied. There could be area specific factors affecting the problem statement.The main delimitation of the study is that it is impossible to do the research basing the overall target market due to time & cost limitations, thus the data collected may not be complete.Outline of the reportThe report which is on “the factors affecting low purchase intention for laundry services with special reference to Moratuwa Municipality” will be presented in the following format.
Chapter One – IntroductionUnder this chapter, background of the industry & problem, establishment of the problem, problem statement, significance of the problem, objectives of the study and delimitations are stated.Chapter Two – Literature ReviewPast studies similar to this research industry and problem have been thoroughly reviewed in this chapter and factors with their indicators which have an effect on purchase intention for laundry services have been identified.Chapter Three – Methodology of PerspectiveIn this chapter, the conceptual framework for the study, the hypotheses derived through the literature review, the operationalization, how the research methodology was created and the data collection approach for the research have been detailed. Also a brief description on how the data analysis will be done is included.Chapter Four – Data AnalysisThis chapter presents the collected data using tables and charts with findings derived using descriptive and inferential statistical analysis.Chapter Five – Conclusions and RecommendationsThis is the final chapter which includes the conclusions and recommendations by the researcher based on the complete study & it’s findings.Finally, a list of references is included followed by annexures with the entire research time plan and questionnaires used for both the preliminary ; primary research.
Chapter 2 – Literature ReviewThe researcher has referred many previous studies done on Consumer Purchase Intention in order to develop a solid theoretical base for this research using the perspective of the previous research results. The referred studies have been done by various academics ; institutions mostly in relation to the laundry service industry.Purchase IntentionCulture, Society and morals influence the perception of cleanliness which is directly linked to laundry habits. However these influential factors are eternally changing CITATION Lai2b l 3081 (Laitala, et al., 2012b), causing consumer behavioural changes from time to time.
It is said that social competition along with values such as success, acceptance and happiness drives cleanliness CITATION Coa14 l 3081 (Coats, 2014). Laundering as well as showering has increased significantly during the past few decades due to rising cleanliness standards CITATION Gra07 l 3081 (Gram-Hanssen, 2007). The laundry industry’s main concern should be to cater for it’s customer’s needs and their desires CITATION Bha17 l 3081 (Bhate & Shivdas, 2017). CITATION Bau16 l 3081 (Baum, et al., 2016); an average person spends most of his/her life working & sleeping.
This makes consumers desire to make most of their available time to relax & do things they love. Young professionals working under pressure who need quality dry cleaning, families with young kids where both parents are working and are under time pressures with limited time for the family members, elders who are unable to do their own laundry are a few segments with needs for laundry services. Identifying these categories who have a purchase intention is critical.AwarenessPhysical visibility is important for marketing purposes. When people are looking for a place to get their laundry done, they tend to visit laundries which are more easily accessible & closer to major traffic centres such as apartment/shopping complexes.
Laundromats should be located in relation to where people are coming from, that way the visibility of the place will be better CITATION Eas17 l 3081 (Eastern Funding, 2017). CITATION Jef02 l 3081 (Jeffcoate, et al., 2002); suggests to start considering the business environment and benefits of e-commerce by analysing key success factors in e-commerce activities in order to gain competitive success.
E-commerce is the latest method for business transactions as well as for spreading awareness. Promotions are used for the awareness and fame of the product in the market. Promotions act in multiple ways; it informs, persuades and reminds about the product. In addition to advertising, sales promotions are also to be used to increase the turnover through discounts & special offers CITATION Kum12 l 3081 (Kumar, et al.
, 2012). The research paper by CITATION Yut17 l 3081 (Yutuc, et al., 2017); also shows that awareness has a positive relationship with the purchase intention for laundry services and that a huge weight needs to be given to marketing promotions while word of mouth is one of the main focus areas.
Customer satisfaction is shown as the key element in achieving successful word of mouth promotion. People tend to spread the word voluntarily when they are happy & contended.Trust Consumers are highly attached to their clothes which extend beyond it’s physical value, since most people have stated that they value their clothes more than the value of the price tag (Baum C et al., 2016). Trusting another with clothes that they love ; are also an intimate part of ones life will not be just done. There are many factors affecting their willingness to trust another with their clothes. Regardless of the service, reliability is most important to service consumers and trust has a positive relation with regard to laundry services’ purchase intention. Also responsiveness, assurance & empathy are important when it comes to providing a service CITATION Par88 l 3081 (Parasuraman, et al.
, 1988), CITATION Zei90 l 3081 (Zeithaml, et al., 1990). While CITATION Wal90 l 3081 (Walker, 1990); also suggested reliability, CITATION Grö90 l 3081 (Grönroos, 1990); put forward six criteria for consumer perception of a good service and out of those 03 are: professionalism, reliability & reputation. Professionalism can be displayed through the knowledge of the business, how the customers are greeted and at all times taking responsibility of the actions and this will make customers trust & appreciate the business CITATION Wei17 l 3081 (Weingarten Realty, 2017). When providing laundry services, due to it’s intangibility, factors such as credibility plays a main role and CITATION Gil07 l 3081 (Gil ; Hartmann, 2007) also points out that reputation and enhanced communication with customers through responsiveness ; empathy are factors which play a major role in determining the boundaries of a laundry business.CostPeople who are able to use their own washer/dryer at a much lower cost and get the job done are not willing to pay the cost for dry cleaning.
Yet people do spend a lot on services which offer professionalism ; convenience which enables them to spend their valuable time on what they enjoy or are good at. So it was stated that the laundry services need to charge an amount which would need to be a combination between the cost for laundry, the opportunity cost of the consumers and the dependability of the service in general CITATION Bau16 l 3081 (Baum, et al., 2016). Consumers who highly dependent on laundry services are willing to pay even a premium price for meeting their needs CITATION Bro02 l 3081 (Broekhuizen ; Alsem, 2002). Anyhow if the prices go up beyond the accepted amounts, consumers might try substitutes CITATION Urb93 l 3081 (Urban, et al., 1993) since with the availability of information at the finger tips, consumers are becoming more price-sensitive CITATION Amo l 3081 (Jiang, 2002).QualityAccording to CITATION Bit94 l 3081 (Bitner ; Hubbert, 1994); service quality is the customer’s overall impression of the relative inferiority/superiority of the organization & it’s services.
Consumer motives and attitudes are the 02 main deciding factors when they rate the quality of a service and since personal consumer observation and rating could differ from person to person, the measurements must be based on field investigation of the consumer population. Several reports conclude that the quality of the service is essential for the success for a service provider. This is supported by the findings of CITATION Bol91 l 3081 (Bolton ; Drew, 1991) ; CITATION Cro94 l 3081 (Cronin ; Taylor, 1994); they show that the experience of quality service has a positive relationship with a consumer’s intention to purchase as well as repeat purchases. Further studies have also showed that customers are concerned about the hygiene factor when giving out their materials to laundromats, especially for clothes which touch their bodies. Also it is important to understand that laundromats offer an intangible yet perishable personal service which makes it essential for the service to be a personalized quality experience for consumers CITATION Bha17 l 3081 (Bhate & Shivdas, 2017).
Convenience Laundromats which succeed in serving the ever demanding customers in a warm and efficient manner will be the companies which will be likely to obtain long term competitive advantage over their competitors CITATION Bha17 l 3081 (Bhate & Shivdas, 2017). As for any other service, efficiency is mandatory for a laundromat since people tend to pay for a service due to the higher efficiency a service provider offers in comparison with doing it by themselves without expert knowledge or machinery CITATION Nic83 l 3081 (Nickols & Fox, 1983). CITATION Arm90 l 3081 (Armistead, 1990); mentioned that time which includes availability, waiting time and responsiveness are key deciding factors for a service along with flexibility which includes customized services and add-ons to provide convenience to consumers. CITATION Wal90 l 3081 (Walker, 1990); confirms it by stating that delivery systems that work together with good personal service are key determinants for the success of a service product.Further empirical studies done by CITATION And94 l 3081 (Andaleeb & Amiya, 1994) shows that convenience is significantly related to a customers’ behavioral intentions. It is confirmed by CITATION Ber02 l 3081 (Berry, et al.
, 2002) by stating that convenience enhances the positive effect of a consumer’s purchase intention and that the level of convenience acts as a factor which encourages or discourages the repurchase behavior.Summary of Literature ReviewThe critical literature review has been carried out with regard to the problem statement & the background of the problem. Through this the researcher was able to identify many factors affecting consumer purchase intention and also the indicators for those factors. Awareness, Trust, Cost, Quality & Convenience are the 05 independent variables which were selected for this study from the many factors identified through the literature review through sufficient justification and careful analysis.Chapter 3 – Methodology of PerspectiveTo identify the factors affecting a potential customer’s low purchase intention for laundry services in Moratuwa, a critical literature review was conducted. It revealed that “Customer Purchase Intention” is a subject which has been explored by many.
However the main focus was on customer purchase intention for laundry services and the researcher has used the findings obtained from the literature review as a foundation to execute the research using the “Deductive Approach”. 3.1Conceptual FrameworkAccording to the literature review the conceptual framework has been developed. Awareness, Trust, Cost, Quality ; Convenience were identified as the prominent independent variables affecting the Purchase Intention of customers. The research was focused on explaining the relationship between the independent variables and the dependent variable. Refer Figure 6 for the Diagrammatic illustration of the conceptual framework for the study of “the factors affecting low purchase intention for laundry services with special reference to Moratuwa Municipality”.36830344008Independent VariablesDependent VariablePurchaseIntentionAwarenessTrustCostQualityConvenienceFigure SEQ Figure * ARABIC 6: Conceptual Framework for consumer purchase intentionIndependent VariablesDependent VariablePurchaseIntentionAwarenessTrustCostQualityConvenienceFigure SEQ Figure * ARABIC 6: Conceptual Framework for consumer purchase intention3.
2HypothesesH1 : There is a positive relationship between Awareness and Purchase IntentionH10 : There is no relationship between Awareness and Purchase IntentionH2 : There is a positive relationship between Trust and Purchase IntentionH20 : There is no relationship between Trust and Purchase IntentionH3 : There is a negative relationship between Cost and Purchase IntentionH30 : There is no relationship between Cost and Purchase Intention H4 : There is a positive relationship between Quality and Purchase IntentionH40 : There is no relationship between Quality and Purchase Intention H5 : There is a positive relationship between Convenience and Purchase IntentionH50 : There is no relationship between Convenience and Purchase Intention3.3OperationalizationAfter the independent variables of the dependent variable has been identified, the next step was to identifying how each independent variable should be verified so as to test the above formulated hypotheses. Table 2 includes the Operationalization table which acted as a guideline for the researcher to proceed on this task.Table SEQ Table * ARABIC 2: Operationalization table of the researchConcept Source Variable Indicators Measurement Scale Question NumberEffect on Purchase Intention CITATION Lai2b l 3081 (Laitala, et al., 2012b) CITATION Coa14 l 3081 (Coats, 2014) CITATION Gra07 l 3081 (Gram-Hanssen, 2007) CITATION Bha17 l 3081 (Bhate ; Shivdas, 2017) CITATION Bau16 l 3081 (Baum, et al., 2016)Purchase Intention QualityTime SavingInability to do laundry Likert Scale20 – 23 CITATION Eas17 l 3081 (Eastern Funding, 2017) CITATION Jef02 l 3081 (Jeffcoate, et al.
, 2002) CITATION Kum12 l 3081 (Kumar, et al., 2012) CITATION Yut17 l 3081 (Yutuc, et al., 2017)Awareness LocationCompetitive Success through e-commercePromotionsCustomer Satisfaction Likert Scale01 – 04 CITATION Bau16 l 3081 (Baum, et al., 2016) CITATION Par88 l 3081 (Parasuraman, et al., 1988) CITATION Zei90 l 3081 (Zeithaml, et al., 1990) CITATION Wal90 l 3081 (Walker, 1990) CITATION Grö90 l 3081 (Grönroos, 1990) CITATION Wei17 l 3081 (Weingarten Realty, 2017) CITATION Gil07 l 3081 (Gil ; Hartmann, 2007)Trust Reliability Responsiveness ; EmpathyProfessionalismReputation Likert Scale05 – 08 CITATION Bau16 l 3081 (Baum, et al., 2016) CITATION Bro02 l 3081 (Broekhuizen ; Alsem, 2002) CITATION Urb93 l 3081 (Urban, et al., 1993) CITATION Amo l 3081 (Jiang, 2002)Cost Opportunity CostLow CostConsumer Dependability on service Likert Scale09 – 11 CITATION Bit94 l 3081 (Bitner ; Hubbert, 1994) CITATION Bol91 l 3081 (Bolton ; Drew, 1991) CITATION Cro94 l 3081 (Cronin ; Taylor, 1994) CITATION Bha17 l 3081 (Bhate ; Shivdas, 2017)Quality PersonalizationService ExperienceHygieneLikert Scale12 – 14 CITATION Bha17 l 3081 (Bhate ; Shivdas, 2017) CITATION Nic83 l 3081 (Nickols ; Fox, 1983) CITATION Arm90 l 3081 (Armistead, 1990) CITATION Wal90 l 3081 (Walker, 1990) CITATION And94 l 3081 (Andaleeb ; Amiya, 1994) CITATION Ber02 l 3081 (Berry, et al.
, 2002)Convenience EfficiencyAvailabilityLow Waiting TimeResponsivenessDelivery Systems Likert Scale15 – 193.4Research OnionThe research onion illustrates step by step the stages essential when formulating a methodology for a research CITATION Sau07 l 3081 (Saunders, et al., 2007). Figure 7 displays the standard research onion with the philosophies, approaches, strategies, quantitative-qualitative choices, time horizons, techniques ; procedures for data collection ; analysis. Also Figure 7 shows the selections made by the researcher for the current research of identifying “the factors affecting low purchase intention for laundry services with special reference to Moratuwa Municipality”. Positivism has been used as the philosophy. Accordingly, the hypotheses mentioned above has been tested by giving importance to quantitative results which led to statistical analysis.
The deductive approach has been used as stated at the beginning of this chapter and data was collected to confirm or reject the hypotheses. Figure SEQ Figure * ARABIC 7: Research Onion0-635Source: https://www.researchgate.net/figure/Research-Onion_fig4_2830135730Source: https://www.researchgate.net/figure/Research-Onion_fig4_283013573The following strategies, quantitative-qualitative choices, time horizons along with techniques ; procedures were used for data collection ; analysis of this research.Strategy: SurveyMethod: Mono MethodTime Horizon: Cross sectional3.5Data Collection ApproachWhile the preliminary research acted as a base for this research, a more in depth primary ; secondary data collection was accommodated.
Data was gathered to identify “the factors affecting low purchase intention for laundry services with special reference to Moratuwa Municipality”. The hypotheses were verified after analysing the collected data. The findings helped in achieving the stated research objectives.Secondary Data CollectionSecondary data was collected by referring to sources such as laundromat websites, government publications, business magazines, journals, institutional reports and previous research papers relevant to this industry/business matter.Primary Data CollectionQuestionnaires were used to collect primary data from the samples derived from the population of interest (Refer Annexure 4).Primary Data Collection MethodSurvey strategy was used to collect primary data as it is one of the best strategies to use with the deductive approach. It is also one of the most efficient strategies for data collection where both rich ; reliable data can be collected with the right method ; questions.The data collection method which was used is the mono-method where only quantitative information was gathered using; Likert Scales.
This was done through a Survey in a face to face setting where the researcher administrated the questionnaire. This method was ideal to gather accurate data by eliminating misunderstandings through clarity. Also this helped to overcome language barriers ; time constraints. Also this was a cross sectional study where the interviews were done at one point of time selected by the researcher.Sampling PlanSampling was done based on the population of interest which is the middle and above income earners in Moratuwa.Table 3 includes further details on how the sampling was carried out by the researcher with attention to the sampling frame, sample, sampling technique ; sampling locations. Table SEQ Table * ARABIC 3: Sampling Plan SummaryTotal Population Adults of Middle ; Above income class householdsin Moratuwa MunicipalitySampling Frame Idama ; Katubedda AreasSample 100Sampling Technique Judgmental Sampling Sampling Locations K- Zone (Supermarket – Katubedda)Piyara (Fashion Store – Idama)3.6Data Analysis using Descriptive Statistics and Inferential StatisticsDescriptive statistics help to summarize data in a meaningful way.
Also patterns can be identified when using descriptive statistics. There are 02 general types of statistics which can be used to describe data with the use of statistics ; graphs; measures of central tendency (mode, median, and mean) ; measures of spread (range, quartiles, absolute deviation, variance and standard deviation). Inferential statistics on the other hand is essential for this type of research since data is not collected using the complete population, but using a sample.
Inferential statistics make use of properly drawn samples to produce generalizations about the population of interest. Using inferential statistics data can be compared, tested and also predicted in the form of probability in order to explain the chance of occurrence of events. 3.7Correlation AnalysisCorrelation Analysis is done to quantify the strength of the linear relationship between variables using values of the correlation coefficient which will range between -1 and +1 as shown in the below scale. (refer Figure 8) Figure SEQ Figure * ARABIC 8: Values of Correlations0-635Source: CITATION Sau l 3081 (Saunders, et al., n.d.)0Source: CITATION Sau l 3081 (Saunders, et al.
, n.d.)Chapter 4 – Data AnalysisThis chapter details the analysed results of the research based on the collected data. As the entire data collection was done to gather quantitative data, all data has been statistically analysed using SPSS Statistics software package. This covers the primary objective of this research which is to identify the factors affecting low purchase intention for laundry services in Moratuwa. 100 respondents were selected for data collection and the collected data was analysed using statistical tools to construct the patters of the received responses. All 100 interviews were conducted after getting successful responses for the qualifying questions.
The respondents’ location was questioned and it was mandatory for him/her to be living within the geographic area of the Moratuwa Municipality and their household monthly income was questioned, which had to be Rs. 75,000 per month or above. 4.
1Reliability MeasurementTable SEQ Table * ARABIC 4: Reliability Measurement of the studyReliability StatisticsCronbach’s Alpha N of Items.735 6As per the findings from SPSS the Cronbach’s Alpha reliability statistics have been presented as .735. Based on this it can be interpreted that the consistency of data used in this study is in the acceptable level in terms of reliability and thus it will be useful in order to arrive at the findings.4.2Statistics used in the study Table SEQ Table * ARABIC 5: Statistics of the studyStatisticsAwareness Trust Cost Quality Convenience Purchase Intention (DV)N Valid 100 100 100 100 100 100Missing 0 0 0 0 0 0As shown in Table 5 six variables including the dependant variable (customer purchase intention) have been included in this study. Also Table 5 validates the entry of data pertaining to all the questions for each variable and ensures that there are no missing values that could lead to defects or incorrect outcomes.4.
3Customer Profile AnalysisThe respondent customer profiles have been analysed under 05 categories as shown in Tables 6 to 10. Table SEQ Table * ARABIC 6: Gender representation in the studyGenderFrequency Percent Valid Percent Cumulative PercentValid Female 50 50.0 50.0 50.0Male 50 50.0 50.0 100.
0Total 100 100.0 100.0 There is an unintentional equal gender representation.Table SEQ Table * ARABIC 7: Age representation in the studyAgeFrequency Percent Valid Percent Cumulative PercentValid Between 20 to 25 years 29 29.0 29.0 29.0Between 26 to 40 years 46 46.
0 46.0 75.0Between 41 to 59 years 15 15.0 15.0 90.060 years or above 10 10.0 10.
0 100.0Total 100 100.0 100.0 All respondent were above the age of 20.
For this study the lowest contribution is from the aged 60 and above category which is 10% and the next lowest contribution is from the 41 to 59 aged category with a 15% representation. There is a 29% representation from the 20 to 25 aged category and a 46% representation from the 26 to 40 aged category which is also the highest contribution for this study.Table SEQ Table * ARABIC 8: Household size representation in the studyHousehold SizeFrequency Percent Valid Percent Cumulative PercentValid 1 3 3.0 3.
0 3.02 20 20.0 20.0 23.
03 22 22.0 22.0 45.04 25 25.0 25.0 70.05 21 21.0 21.
0 91.06 9 9.0 9.0 100.0Total 100 100.0 100.
0 During the survey the household size of each respondent was collected. While 25% mentioned that there were 04 members in the household, 22% had 3 members in their households. 21% had 5 members & 20% had 2 members in the household.
Also the lowest representations were 6 members in 9% and 1 member in 3% of the households. Table SEQ Table * ARABIC 9: Occupation representation in the studyOccupationFrequency Percent Valid Percent Cumulative PercentValid Below Executive Level 16 16.0 16.
0 16.0Executive 22 22.0 22.0 38.
0Middle Management 36 36.0 36.0 74.0Top Management / Owner 26 26.
0 26.0 100.0Total 100 100.0 100.0 The majority which is 36% were of middle management.
26% were in top management or entrepreneurs and 22% were Executives. 16% were below executive level.Table SEQ Table * ARABIC 10: Household Income representation in the studyHousehold IncomeFrequency Percent Valid Percent Cumulative PercentValid Approximately Rs.75,000 25 25.
0 25.0 25.0Approximately Rs.100,000 31 31.0 31.
0 56.0Approximately Rs.150,000 14 14.0 14.0 70.0Approximately Rs.
200,000 10 10.0 10.0 80.0Approximately Rs.250,000 13 13.0 13.0 93.0Approximately Rs.
300,000 or More 7 7.0 7.0 100.0Total 100 100.0 100.
0 Household income was one of the qualifying questions and only respondents who had a total household income of over 75,000 per month were further interviewed. 31% approximately had a 100k income, 25% had a 75k income, 14% had a 150k income, 13% had a 250k income, 10% had a 200k income and 7% had a 300k or above income.4.4Correlation of Demographic VariablesTable SEQ Table * ARABIC 11: Occupation * Income Cross tabulationOccupation * Income CrosstabulationCount Income TotalApproximately Rs.75,000 Approximately Rs.
100,000 Approximately Rs.150,000 Approximately Rs.200,000 Approximately Rs.250,000 Approximately Rs. 300,000 or More Occupation Below Executive Level 7 5 3 0 1 0 16Executive 13 6 0 2 1 0 22Middle Management 3 18 5 5 4 1 36Top Management / Owner 2 2 6 3 7 6 26Total 25 31 14 10 13 7 100According to the data collected, 50% of the top managers or people who own a business have a household income of more than Rs. 250,000 per month and 41.
67% of the middle managers have a household income of more than Rs. 150,000 per month. While 59% of the executives & 43.75% of the people below the executive grade have a household income of more than Rs. 75,000 per month.
4.5Descriptive AnalysisTable SEQ Table * ARABIC 12: Descriptive Statistics of the studyDescriptive StatisticsN Minimum Maximum Mean Std. DeviationAwareness 100 2.00 5.
00 3.8525 .61350Trust 100 2.50 5.00 4.1125 .
60237Cost 100 1.00 5.00 3.
4667 .85805Quality 100 2.00 5.00 4.2300 .
67286Convenience 100 3.00 5.00 4.4420 .
52823Purchase Intention (DV) 100 1.33 5.00 3.8633 .78438Valid N (listwise) 100 First independent variable used is “Awareness” showing a mean value of 3.
8525 and a standard deviation of 0.61350. The mean value of the variable is in a state closer to the agreed position in the Likert Scale and the Standard Deviation value shows that the data spread is relatively closer to the mean value. “Trust” about the product has recorded a mean value of 4.1125 with the Standard deviation value as 0.
60237. The mean value of the variable is in the agreed position in the Likert Scale and the Standard Deviation value shows that the data spread is relatively closer to the mean value. “Cost” which the customer is willing to bear shows a 3.4667 mean value in the scale and the Standard deviation shows 0.85805. The mean value of the variable is in a state closer to the agreed position in the Likert Scale but the Standard Deviation value shows that the data relatively varies. “Quality” about the product has recorded a mean value of 4.2300 and a Standard deviation of 0.
67286. The mean value of the variable is in the agreed position in the Likert Scale and the Standard Deviation value shows that the data spread is relatively closer to the mean value. “Convenience” about the product has recorded the mean value as 4.44 and the Standard deviation has recorded a value of 0.52823. The mean value of the variable is in the agreed position in the Likert Scale and the Standard Deviation value shows that the data spread is relatively closer to the mean value.
“Purchase Intention” which is the dependent variable shows a 3.8633 mean value in the scale and the Standard deviation shows a value of 0.78438. The mean value of the variable is in a state closer to the agreed position in the Likert Scale but the Standard Deviation value shows that the data relatively varies.
4.6Correlation Analysis Table SEQ Table * ARABIC 13: Correlation Analysis of the studyCorrelationsAwareness Trust Cost Quality Convenience Purchase Intention (DV)Awareness Pearson Correlation 1 .515** .399** .305** .473** .
376**Sig. (2-tailed) .000 .000 .002 .
000 .000N 100 100 100 100 100 100Trust Pearson Correlation .515** 1 .282** .
208* .242* .313**Sig. (2-tailed) .
000 .005 .038 .015 .002N 100 100 100 100 100 100Cost Pearson Correlation .399** .
282** 1 .281** .188 .503**Sig. (2-tailed) .000 .005 .
005 .061 .000N 100 100 100 100 100 100Quality Pearson Correlation .305** .208* .281** 1 .384** .
188Sig. (2-tailed) .002 .038 .005 .
000 .061N 100 100 100 100 100 100Convenience Pearson Correlation .473** .242* .188 .384** 1 .233*Sig.
(2-tailed) .000 .015 .061 .000 .019N 100 100 100 100 100 100Purchase Intention Pearson Correlation .
376** .313** .503** .
188 .233* 1Sig. (2-tailed) .
000 .002 .000 .061 .
019 N 100 100 100 100 100 100**. Correlation is significant at the 0.01 level (2-tailed).*. Correlation is significant at the 0.05 level (2-tailed).Considering above correlation analysis, the relationships between independent and dependent variables are explained as follows. • Independent variable “Awareness” shows a weak positive correlation value of 0.376 which means it has a weak positive correlation to the dependent variable Purchase Intention and it is statistically significant at the 0.05 level. (P=0.000<0.05) • Independent variable “Trust” shows a weak positive correlation value of 0.313 which means it has a weak positive correlation to the dependent variable Purchase Intention and it is statistically significant at the 0.05 level. (P=0.000<0.05) • Independent variable product “Cost” shows a positive correlation value of 0.503 which means it has a positive correlation (which is in-between a weak positive & a strong positive) to the dependent variable Purchase Intention and it is statistically significant at the 0.05 level. (P=0.000<0.05) • Independent variable product “Quality” shows an extremely weak positive correlation value of 0.188 which means it has an extremely weak positive correlation (which is in-between perfect independence & a weak positive) to the dependent variable Purchase Intention and it is not statistically significant at the 0.05 level. (P=0.000<0.05) • Independent variable product “Convenience” shows an extremely weak positive correlation value of 0.233 which means it has an extremely weak positive correlation (which is in-between perfect independence & a weak positive) to the dependent variable Purchase Intention and it is statistically significant at the 0.05 level. (P=0.000<0.05) 4.7Regression AnalysisTable SEQ Table * ARABIC 14: Model summary for the studyModel SummaryModel R R Square Adjusted R Square Std. Error of the Estimate1 .551a .304 .267 .67162a. Predictors: (Constant), Convenience, Cost, Trust, Quality, awarenessRegression analysis was used to assess the strength of the relationship each independent variable has with the dependent variables and statistically prove the hypothesis created for this study.The output of the regression analysis used in this study shows that the R value as 55.1%. The R Square value is shown as 30.4% which describes the goodness of fit of this regression model, and here it highlights that there is a reasonable level of acceptance of the proposed conceptual model.While 30.4% variance of customer purchase intention can be explained using this framework or variables, 69.6% variance of customer purchase intention cannot be explained by this model and hence implies that there may be other independent variables affecting customer purchase intention, giving further research opportunities. Table SEQ Table * ARABIC 15: ANOVA Table Analysis for the studyANOVAaModel Sum of Squares dfMean Square F Sig.1 Regression 18.509 5 3.702 8.206 .000bResidual 42.401 94 .451 Total 60.910 99 a. Dependent Variable: Purchase Intentionb. Predictors: (Constant), Convenience, Cost, Trust, Quality, awarenessAccording to the above analysis there is a clear significance established as the F-test result is 8.206 with a significance of P < 0.05. This simply gives us the picture that there is a reasonable relationship between the dependent and independent variables.4.8Regression Coefficients AnalysisThis analysis is used to test the hypothesis and to measure the strength of the cause and effect relationship which the dependent variable has with each independent variable within this conceptual model.Table SEQ Table * ARABIC 16: Coefficients of AwarenessCoefficientsaModel Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.013 .467 4.311 .000Awareness .480 .120 .376 4.014 .000a. Dependent Variable: Purchase IntentionIndependent variable “Awareness” shows a “t-test” value of 4.014 and a significance of 0.000 (P=0.000<0.05) which means the variable is statistically significant at the 0.05 level. Table SEQ Table * ARABIC 17: Coefficients of TrustCoefficientsaModel Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.189 .519 4.216 .000Trust .407 .125 .313 3.258 .002a. Dependent Variable: Purchase IntentionIndependent variable “Trust” shows a “t-test” value of 3.258 and a significance of 0.002 (P=0.000<0.05) which means the variable is statistically significant at the 0.05 level.Table SEQ Table * ARABIC 18: Coefficients of CostCoefficientsaModel Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.271 .285 7.966 .000Cost .459 .080 .503 5.755 .000a. Dependent Variable: Purchase IntentionIndependent variable “Cost” shows a “t-test” value of 5.755 and a significance of 0.000 (P=0.000<0.05) which means the variable is statistically significant at the 0.05 level.Table SEQ Table * ARABIC 19: Coefficients of QualityCoefficientsaModel Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.938 .495 5.930 .000Quality .219 .116 .188 1.892 .061a. Dependent Variable: Purchase IntentionIndependent variable “Quality” shows a “t-test” value of 1.892 (which means that this variable is not relatively important). and a significance of 0.061 (P=0.000<0.05) which means the variable is statistically insignificant at the 0.05 level.Table SEQ Table * ARABIC 20: Coefficients of ConvenienceCoefficientsaModel Unstandardized Coefficients Standardized Coefficients t Sig.B Std. Error Beta 1 (Constant) 2.324 .652 3.562 .001Convenience .347 .146 .233 2.376 .019a. Dependent Variable: Purchase IntentionIndependent variable “Convenience” shows “t-test” value of 2.376 and a significance of 0.019. (P=0.000<0.05) which means the variable is statistically significance at the 0.05 level.Therefore in order to generalize as per the inferential statistics, it can be stated that a change in “Awareness”, “Trust”, “Cost” & “Convenience” can have a significant impact on “Purchase Intention” while “Quality” may not have a significant relationship with the “Purchase Intention” for Laundry Services.Chapter 5 – Conclusions & RecommendationsAccording to the primary research findings it is necessary to analyse and evaluate the conceptual model and its hypotheses through this chapter. Finally, researcher concludes on the hypotheses, whether to accept or reject it and whether this conceptual model can be accepted or not.The conceptual model which was developed through an extensive literature review has been deductively tested through this study. According to these model consumer demographics such as age, occupation, monthly household income level and 05 independent variables (Awareness, Trust, Cost, Quality, Convenience) have been tested to find out its effects to the dependent variable (Purchase Intention).5.1Hypothesis TestingHypothesis H1 – There is a positive relationship between Awareness and Purchase IntentionPrimary research study statistically proves that customer awareness about the laundry services is highly important for a customer’s laundry service purchase intention. Because this variable indicates a positive correlation of 0.376 to the dependent variable and the regression coefficients statistically prove that the probability of this relationship between purchase intention and awareness occurring by 4.014 level and a significance of 0.000. (P=0.000;0.05) which is lesser than 0.05.Hypothesis H10 – There is no relationship between Awareness and Purchase IntentionSince Hypothesis H1 was accepted, Hypothesis H10 was rejected.Hypothesis H2 – There is a positive relationship between Trust and Purchase IntentionPrimary research study statistically proves that customer trust about the laundry services is highly important for a customer’s laundry service purchase intention. Because this variable indicates a positive correlation of 0.313 to the dependent variable and the regression coefficients statistically prove that the probability of this relationship between purchase intention and trust occurring by 3.258 and a significance of 0.002. (P=0.000<0.05) which is lesser than 0.05.Hypothesis H20 – There is no relationship between Trust and Purchase IntentionSince Hypothesis H2 was accepted, Hypothesis H20 was rejected.Hypothesis H3 – There is a negative relationship between Cost and Purchase IntentionPrimary research study statistically proves that the cost a customer is willing to bear is highly impacting for a customer’s laundry service purchase intention. Because this variable indicates a positive correlation (positive correlation for the negative impact) of 0.503 to the dependent variable and the regression coefficients statistically prove that the probability of this relationship between purchase intention and cost occurring by 5.755 and a significance of 0.000. (P=0.000;0.05) which is lesser than 0.05.Hypothesis H30 – There is no relationship between Cost and Purchase IntentionSince Hypothesis H3 was accepted, Hypothesis H30 was rejected.Hypothesis H40 – There is no relationship between Quality and Purchase IntentionPrimary research study statistically proves that quality about the laundry services is not important for a customer’s laundry service purchase intention, even though this variable indicates a positive correlation (extremely weak positive correlation) of 0.188 to the dependent variable. The regression coefficients statistically prove that the probability of this relationship between purchase intention and quality occurring by 1.892 is insignificant with a value of 0.061. (P=0.000<0.05) which is higher than 0.05.Hypothesis H4 – There is a positive relationship between Quality and Purchase IntentionSince Hypothesis H40 was accepted, Hypothesis H4 was rejected.Hypothesis H5 – There is a positive relationship between Convenience and Purchase IntentionPrimary research study statistically proves that the convenience for customers highly impact a customer’s laundry service purchase intention. Because this variable indicates a positive correlation of 0.233 to the dependent variable and the regression coefficients statistically prove that the probability of this relationship between purchase intention and convenience occurring by 2.376 and a significance of 0.019. (P=0.000;0.05) which is lesser than 0.05.Hypothesis H50 – There is no relationship between Convenience and Purchase IntentionSince Hypothesis H5 was accepted, Hypothesis H50 was rejected.Table 21: Summary of HypothesisHypotheses Literature Source Research ResultH1 : There is a positive relationship between Awareness and Purchase Intention CITATION Eas17 l 3081 (Eastern Funding, 2017) CITATION Jef02 l 3081 (Jeffcoate, et al., 2002) CITATION Kum12 l 3081 (Kumar, et al., 2012) CITATION Yut17 l 3081 (Yutuc, et al., 2017)AcceptedH2 : There is a positive relationship between Trust and Purchase Intention CITATION Bau16 l 3081 (Baum, et al., 2016) CITATION Par88 l 3081 (Parasuraman, et al., 1988) CITATION Zei90 l 3081 (Zeithaml, et al., 1990) CITATION Wal90 l 3081 (Walker, 1990) CITATION Grö90 l 3081 (Grönroos, 1990) CITATION Wei17 l 3081 (Weingarten Realty, 2017) CITATION Gil07 l 3081 (Gil ; Hartmann, 2007)AcceptedH3 : There is a positive relationship between Cost and Purchase Intention CITATION Bau16 l 3081 (Baum, et al., 2016) CITATION Bro02 l 3081 (Broekhuizen ; Alsem, 2002) CITATION Urb93 l 3081 (Urban, et al., 1993) CITATION Amo l 3081 (Jiang, 2002)AcceptedH4 : There is a positive relationship between Quality and Purchase Intention CITATION Bit94 l 3081 (Bitner ; Hubbert, 1994) CITATION Bol91 l 3081 (Bolton ; Drew, 1991) CITATION Cro94 l 3081 (Cronin ; Taylor, 1994) CITATION Bha17 l 3081 (Bhate ; Shivdas, 2017)RejectedH5 : There is a positive relationship between Convenience and Purchase Intention CITATION Bha17 l 3081 (Bhate ; Shivdas, 2017) CITATION Nic83 l 3081 (Nickols ; Fox, 1983) CITATION Arm90 l 3081 (Armistead, 1990) CITATION Wal90 l 3081 (Walker, 1990) CITATION And94 l 3081 (Andaleeb ; Amiya, 1994) CITATION Ber02 l 3081 (Berry, et al., 2002)Accepted5.2RecommendationsThe ultimate objective of this study was to identify the factors affecting low purchase intention for laundry services in Moratuwa. From the main objective three specific secondary objectives were derived which later helped in the formulation of the conceptual framework and hypothesis which guided this study.Since one variable that was used to conceptualize this study has been rejected and the other four were accepted, a new conceptual model has resulted from the primary research that was conducted and a new conceptual model is recommended as shown in figure 8 below.Independent variable “Quality” has been removed from the new conceptual framework. It has been identified that, since the laundry industry in Sri Lanka is yet a developing industry independent variables such as “Awareness”, “Trust”, “Cost” ; “Convenience” plays a major role in impacting their purchase decision. On the other hand “Quality” may be seen as a secondary concern for them which may have an impact in customer retention or may be people are naturally assuming that laundries are already providing high quality services.When summarizing the consumer demographical influences on Laundry service purchase intention, the most suitable age is between 25 – 65 age limits. When considering the household income level of the customers most suitable household income level is customers who earn more than Rs. 100,000. When considering the occupation of the customers most suitable occupation level is executives or higher. Based on these findings it is recommended to have a target market outline covering the mentioned consumer demographics and adopt a focused selling in these segments.According to the statistics gathered it was proven that awareness is very important to customer purchase intention. Currently awareness level of the customers towards the product is very low. Laundromats ; their services should be more visible to customers by doing many comprehensive advertising ; promotional campaigns. BTL campaigns are more important which consists of very specific, memorable activities focused on targeted groups of consumers and online media should not be forgotten since we’re in an age of digital marketing. Also the importance of where the laundry is located physically & virtually (online ordering) and the power of word mouth of satisfied customers would play a major role in generating awareness. When analysing the coefficients researcher has analysed the variables which impact the dependent variable from highly important to least important. In that cost has taken the 1st place with a significant gap from the rest, which means customers are more concerned about how much they spend on laundry services rather than about the other variables. According to this Laundromats should use pricing strategies and be more concerned in providing services at affordable rates which will make customers feel that they have spent money for good value. Also making use of their dependability (how much they are attached to using laundry services) on the cost factor to as an opportunity and the opportunity cost factor in the consumer’s mind as a threat which needs to be overcomed is impotant. Trust is also a very important factor that customers are considering when purchasing laundry services. Positive recommendations always come when a customer trust the product which would lead to having a good reputation and also keeping in mind the importance of professional conduct. Since Laundromats are yet a developing industry it could be hard to build trust among people. Yet it is essential for laundromats to understand that people highly value their clothes, even more that the price tags. Anyhow this can be achieved through an excellent customer experience. Being responsive ; showing empathy and being known as a reliable organization is the best ; easiest way to build trust among new customers. According to the variable analysis it was evident that convenience has a high impact on the purchase intention of laundry services. Currently people cannot reach laundromats in Moratuwa whenever they want. Most laundromats open after 9am and are closed by 5pm making it highly inconvenient for potential customers. Also including pickup ; delivery services are guaranteed to attract a large number of customers who are unable to visit laundromats for various reasons such as being busy, transportation ; parking problems and being unable due to old age. This would also ensure no or minimal waiting time ; high efficiency, yet waiting time ; efficiency are factors to be considered for walk-in customers as well. Last but not least responsiveness is essential to ensure convenience; no one wants to waste their time just to get some information. 5.3Suggestions for the future of the laundry industry in MoratuwaTable SEQ Table * ARABIC 21: Suggestion for future of laundry industrySuggestions Affecting Independent VariablesWell optimized website with online ordering system Awareness, TrustSituated in a good location (popular ; easily accessible) AwarenessProfessional Conduct TrustAffordable Rates CostPick up ; Delivery Service ConvenienceResponsiveness Trust, Convenience5.4Limitations and Future Research OpportunitiesThere were many boundaries within this study and some of key limitations are outlined below:The sample was limited to 100 units due to time constraints.Representation is only from 02 of the 22 area of Moratuwa.Independent variables were picked up after critical literature review, however the literatures were mostly based on non-local markets, thus the outcome was somewhat different when considering the local context.Some of the independent variables identified through literature review were dropped out due to practical difficulties and execution issues in the local scenario.However these limitations in the study have given rise to future research opportunities and since Quality was rejected through the proposed model, there is an opportunity that exists to identify other strong variables that effects the purchase intention of customers for laundry services with special reference to Moratuwa. This view is consolidated by the model summary (R Squared value= 30.4%) that was derived in this study using SPSS which also indicates that there are other variables that need to be identified to have a better model for analysing the same. Thus future research needs to be carried out to identify these factors.Data and representation inclusive of the entire Moratuwa municipality will be a better predictor of the actual situation and thus there is opportunity to carry out a research with all this information to have greater accuracy in the strategies that can be implemented in the future business entering the laundry industry starting from Moratuwa.References BIBLIOGRAPHY Andaleeb, S. S. ; Amiya, K. B., 1994. TechnicalComplexity and Consumer Knowledge as Moderators of Ser-vice Quality Evaluation in the Automobile Service Industry. Journal of Retailing, Volume 70.Anon., 2016. HIES Final Report 2016, s.l.: Department of Census and Statistics .Anon., n.d. 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More than 100 2) How many consumers do you actually handle per day? ? Less than 10 ? Between 10 – 25 ? ? 100%? Between 26 – 50 ? Between 51 – 75 ? Between 76 – 100 ? More than 100 3) How many days per week do you work? ? 5 Days ? 50%? 6 Days ? 7 Days ? 50%4) What is your target market? ? Low income earners ? Middle income earners ? ? 75%? High income earners ? 25%Questions 1 2 3 4 5 6 7 8 9 10 %1) How often do you do your laundry at home? ? Daily ? ? ? 30%? 2 – 4 times a week ? ? ? ? ? 50%? Once a week ? ? 20%? Once in 2 weeks 2) How do you feel about doing laundry at home? ? Hate it ? ? ? 30%? Dislike it ? ? ? ? 40%? I don’t mind doing it ? ? ? 30%? I like doing it 3) How often do you use laundry services? ? Never ? 10%? Once a year ? 2 – 4 times a year ? ? ? 30%? Once in 2 months ? ? ? 30%? Once a month ? ? 20%? Once a week ? 10%? More than once a week 4) Would you like to use laundry services regularly? ? Yes ? ? ? ? ? ? ? 70%? No ? ? ? 30%Annexure 3 – Preliminary research done on potential consumersAnnexure 4 – Questionnaire used for Primary researchCont .…
