Business Research Methods - Consumer Empowerment - assignment 1

1. Table of Contents
Consumer Awareness and Knowledge Influencing Consumer Behaviors:Case
of Mobile Phone Users for Secondary SchoolStudents in Cyberjaya, Selangor.
2
Abstract.........................................................................................................2
1. Introduction............................................................................................2
1.1 Background of the Study.................................................................................................. 3
1.2 Problem Statement ........................................................................................................... 4
1.3 Research Question (RQ)................................................................................................... 5
1.4 Research Objective (RO) ................................................................................................. 5
1.5 Scope of Research............................................................................................................ 6
2. Literature Review...................................................................................6
2.1 Introduction...................................................................................................................... 6
2.2 Consumer Behavior Defined............................................................................................ 7
2.3 Relationship of Consumer Awareness ............................................................................. 8
2.4 The importance of Consumer Knowledge ....................................................................... 9
2.5 Overview of Malaysia Demographic Characteristics..................................................... 10
2.5.1 Population size ........................................................................................................ 10
2.5.2 Ethnic composition, distribution, age structure, gender and growth rates .............. 10
2.6 Malaysian Consumers versus Developed Countries ...................................................... 11
2.6.1 Knowledge and Education...................................................................................... 11
2.6.2 Ethnocentrism ......................................................................................................... 11
2.6.3 Consumer confidence.............................................................................................. 12
2.7 Awareness - Consumer Rights ....................................................................................... 12
2.8 Types of Consumer Rights............................................................................................. 13
2.9 Larger context of Consumer Knowledge ....................................................................... 14
2.9.1 Consumer Protection, Consumer Association, NGO’s ........................................... 14
2.9.2 The National Consumer Policy (NCP) ................................................................... 15
2.9.3 Consumer-related legislations................................................................................. 15
2.9.4 Consumer Redress................................................................................................... 16
2.10 Theory......................................................................................................................... 17
2.11 Conclusion.................................................................................................................. 17
References...................................................................................................19

BMBR5103 – Consumer Awareness & Empowerment Nor Helmee Bin Abd Halim
2
Consumer Awareness and Knowledge Influencing Consumer Behaviors: Case of Mobile
Phone Users for Secondary School Students in Cyberjaya, Selangor.
Abstract
This study attempts to examine the current level of consumer awareness and consumer knowledge
(through education) which have influenced consumer behaviors of secondary school students in
Malaysia. The focus primarily on secondary school students is mainly because the young age
between 15 to 17 years old is the critical stage of consumerism knowledge before they enter a more
challenging stage in their life. The result indicates that consumer awareness and knowledge have
significant impact on consumer behaviors, while lack of awareness and knowledge resulting in
ignorant, and unable to act and decide effectively towards consumerism challenges in the daily
life.
1. Introduction
Phillip Kotler in his Marketing Management publication defines consumerism as a social
movement seeking to augment the rights and powers of consumers in relation to sellers (Kotler,
2002). The concept of “rights” or consumer rights is an entitlement that a consumer enjoys at the
marketplace whereby “powers” or consumer empowerment is a physical act which enables
consumers to put into effect of their own choices through demonstrating their needs, wants and
demands in their decision-making with other individuals or organizational bodies in the
marketplace (Wright et al, 2006).
Brennan and Coppack (2008) mention in the study that empowerment is a key concept in
relation to consumer education. They concluded the research as “to become confident and
empowered consumers, it was necessary that consumers were advised, informed and educated”.
These are the three vital elements in consumer empowerment. They added that consumer education
delivers the skills, attitudes, knowledge and understanding necessary to become an effective
consumer, and enables consumers to use information and advice effectively and “know how” to
access both.

3
Consumer’s empowerment, awareness and knowledge are put to test every day as decision
making becomes more complicated. Consumers are vulnerable to a lot of consumer issues if they
are lacking in consumerism knowledge. At the same time, consumers need to be empowered, as
such they are able to act, make effective decisions and protected (Mohamad Fazli Sabri, 2014).
In general, consumer awareness, knowledge, consumer protection and consumer behaviors
are inter-related and important since it permits the consumer to get the most from what they buy,
to make the right choice and decision, and at the same time empower consumer to address
consumer rights and aware of the establishment of various channels for consumer redress.
1.1 Background of the Study
Today, in the era of globalization, the advent of Internet technology, e-commerce, online shopping
and social media, all consumers regardless of age categories are served 24 hours a day to a variety
of products, goods, services, individuals and enterprises offering services. The overwhelming
information has put a great challenge on the consumers to make the right choice and decision.
Consumers are facing with mass-marketing tactics, high-pressure salesman as well as appealing
advertisement as to add more pressure in the challenge (Fazli Sabri, 2014).
Various parties, including Malaysian government and various consumer associations have
joined efforts with one goal to protect consumers in the marketplace. However, the initiative is
meaningless when consumers do not have sense of consumer awareness of consumerism,
especially not knowing the basic of consumer knowledge, consumer’s rights, and consumer’s
protection entitlement in the marketplace, and not attaining the right level of consumer education
(Haron & Masud, 2012).
In relation to the previous studies, consumerism definition and concept defined by other
researchers for instance, Sharma, N (2013), defines consumer awareness as the practice where
consumers are aware of what they are buying and understand and knowledgeable of their rights as
a customer, while Haron and Masud (2012) indicates consumer protection comes in the forms of
enforcement of laws and regulations, as well as establishment of various channels for consumer
redress in light of protecting consumer rights.

4
Mulvihill (1972), in his research, defined consumer behavior is a collection of organized
processes and meaningful responses on how consumer use to select, secure, use and dispose ideas,
goods, and services to satisfy their needs and wants. It refers to the actions of the consumers in the
marketplace and the underlying motives for those actions.
In an analysis of relationship between consumer awareness and consumer behavior, Haron
and Masud (2012) found that some people choose not to assert their rights as consumers such as
making complaints or seeking redress, when they feel that they do not know enough about their
rights and the mechanics, and channel of seeking redress. In other words, consumer awareness and
knowledge via education is a precursor to consumer actions, thus, ensuring consumer suaveness
and resiliency in the market.
This finding is relevant to previous finding by Kaplan (1991), the state of one’s knowledge
about an issue, significantly impacts upon one’s decision making. People dislike, thus tend to avoid
situations where they have insufficient knowledge to guide their behaviors and where the
possibility of confusion is great. This explains the ground for some people with a minimum degree
of consumer awareness and knowledge falling prey to fraud and act nothing like making
complaints or seeking redress.
1.2 Problem Statement
Prime Minister of Malaysia, Datuk Seri Najib Abdul Razak said that Malaysia is set to attain
developed nation status by 2018, two years earlier than the targeted 2020. The country has seen a
steady increase in the standard of living and its purchasing power (Hasan Saaid, 2013). Indirectly,
it translates to more opportunities as well as greater consumerism challenges in Malaysia.
In light of this perspective, there are few problems that need to be addressed before the
developed nation status can be achieved. Some adults Malaysian may have experience some
embarrassing moment where they could not answer simple question like; “How many types of
consumers rights we have?” This is a true fact about consumer awareness many developing
countries including Malaysia. Meanwhile, different researchers quoted that, “although consumer’s

5
NGO in Malaysia has supported the consumerism education since early 1970s, the consumer
awareness of Malaysian is still very low, not many Malaysian knows and understand their right as
a consumer” (Mazlan, Redzuan, & Abu, 2014).
Mazlan, Redzuan and Abu (2014) also found that there is no consumer education in the
streamline education system whether in primary, secondary or tertiary level. In contrary, consumer
education starts from kindergarten for some developed country like Scandinavia and most of the
European countries have a proper consumer education system at various age group in their
streamline education system (Consumers Affairs Victoria, 2003).
Without an effective consumer awareness program and comprehensive consumer
education program in our streamline school education system, the perception, knowledge and
behavior of Malaysian consumer will not improve and therefore, it is important to address the issue
which prioritizing on the young people.
As such, the research study aims to determine the effect on consumer behavior by assessing
the level of consumer awareness and consumer knowledge among secondary school students. The
outcome of the study is important in developing an education program to improve consumer
knowledge in the secondary school syllabus.
1.3 Research Question (RQ)
The following are research questions in this study:
1. How does consumer awareness influence consumer behaviors?
2. How does consumer knowledge significantly influence consumer behaviors?
1.4 Research Objective (RO)
The objectives of the research are:
1. To measure the co-relation between consumer awareness and consumer behavior among
secondary school students.

6
2. To assess the impact of consumer knowledge on consumer behavior among secondary
school students.
1.5 Scope of Research
The scope of this research focus on secondary school students in Cyberjaya, Selangor. The scope
is for student age between 15 to 17 years old from SMK Cyberjaya. Consent and approval to
conduct the research is obtained from the Sepang District Education Officer.
2. Literature Review
2.1 Introduction
The popularity of digital devices among younger consumers has generated enormous attention
among marketers. Tablets, mobile phones or smartphones have become common things among
millions of young consumers around the world. These young people are continuously looking for
opportunities to purchase mobile phones for use in their everyday activities. The mobile phone
popularity revolves around convenience, business, recreation, and safety. It provides young people
with almost instant communication to family members and friends, information searching well as
making simple purchases like prepaid mobile phone credit (Torlak, Spillan, & Harcar, 2011).
According to Torlak, Spillan and Harcar (2011), the fact that so many teenagers have been
involved in the selection and purchase of mobile phones has motivated various researchers to
investigate the usage of mobile phones among this demographic group. The rapid adoption of
mobile phone technology by teenagers has been studies by various researchers (Thrane, 2003; Rice
and Katz, 2003, Wilska, 2003; Haddon, 2004; and Dedeoglu, 2004). These studies indicate that a
youth’s involvement in purchasing a mobile phone is a critically issue relating to how, when, and
to what extent the mobile phone is used. Those researchers interested in this group have found that
this market has great potential. Lindstrom (2003) has described the teen market as one of the richest
generations in history.
Today, the discovery of consumer behaviors towards products becomes important to all
level of ages including teenagers. As many previous researchers have suggested that consumer

7
behaviors can be influenced by many factors like demographics, culture and social environment,
lifestyle, buying power, ethnocentrism and so on. In this study discusses the relationship between
consumer awareness and consumer knowledge with consumer behaviors.
2.2 Consumer Behavior Defined
Consumer behavior involves studies, which look into how people decide to buy things, what they
choose to buy, where they prefer to buy it, why and when they buy it. It is a mix of psychology,
sociology, anthropology, and economic elements (Muniady, Al- Mamun, Permarupan, & Zainol,
2014). While earlier researchers, Jacoby, Johar and Morrin, (1998) defined consumer behavior as
the “acquisition, consumption and disposition of products, services, time and ideas by decision
making units”.
The academic field of consumer behavior has long been associated with the marketing
discipline. Growth in the study of consumer behavior was fueled in the late 1950s by a set of
commissioned studies on the state of business education. The conceptualizations of consumer
behaviors focused on consumers as buyers and hence emphasized consumer behavior as buyer
behavior (MacInnis & Folkes, 2010). The same researchers (MacInnis & Folkes, 2010) also
conducted an important research on debate whether consumer behavior should be an independent
discipline and they concluded that consumer behavior is not an independent discipline or
independent variable.
In relation to marketing discipline, Kotler (2002) mentioned that consumer behavior has
an important role in business markets and therefore it is imperative for marketers to have in depth
knowledge and understanding of consumer behavior particularly. There are four factors as
described by Kotler which are cultural (culture, subculture, and social class), social (reference
groups, family, and social roles and statuses), personal (age, stage in the life cycle, occupation,
economic circumstances, lifestyle, personality, and self-concept), and psychological (motivation,
perception, learning, beliefs, and attitudes). Research into all of these factors can provide clues as
to how to reach and serve consumers more effectively.

8
2.3 Relationship of Consumer Awareness
Consumer awareness is more about marketing term. It means that consumers note or are aware of
products or services, its characteristics and the other marketing P’s (place to buy, price and
promotion). Usually commercials and ads increase consumer awareness, as well as “word of
mouth” (Wadhe & Ghodke, 2013).
Many studies indicate that consumer awareness impose significant impact on consumer
behaviors. (Ishak & Zabil, 2012) indicate in their study that consumer awareness influence
consumers behaviors while lack of awareness leads to ignorant and reduction of individual
capacity in consumer empowerment and protection. This notion is also supported by few other
researchers confirming the findings (McEachern & Warnaby 2008; Hartlieb & Jones 2009; Liang
& Xianyu 2008; Donoghue & de Klerk, 2009; Thomas & Mills 2006; Chartrand 2005; Coulter et
al. 2005; and Dommeyer & Gross 2003).
Chartrand (2005) stated that consumer awareness is an element that appears in the human
automatic process. The automaticity can involve conscious or unconscious course of actions. The
process is comprised of environmental features; automatic process and outcome. According to
Chartrand (2005), consumer awareness (either consciously or unconsciously) precedes the control,
modification, elimination and change in human behaviour (consumer behaviour) and decisions.
Meanwhile, Dommeyer and Gross (2009) examines the role of customer awareness in the
area of consumers private information invasion by direct-marketers found that male and younger
people have more awareness on privacy-related laws and practices. As a result, these groups of
people have adopted specific strategies to protect themselves from the invasion syndicate.
Another study conducted in Malaysia covering consumer awareness on the health effect of
mobile phone usage mentioned that consumers in Malaysia have started to raise health concerns
on the impact of radio-frequency radiation. Several studies have shown that prolonged exposure
to radio-frequency radiation may result in insomnia, dizziness, headaches, and earaches. As a result
of the increased on awareness and concerns of the health issue, the government and mobile service
providers in Malaysia have been working closely to ensure that providers following the standard

9
guideline for installing and deploying equipment that related to radio-frequency radiation exposure
(Yeow, Yen Yuen, & Connolly, 2008).
2.4 The importance of Consumer Knowledge
The aim of consumer knowledge has been mainly to teach and educate people to act as informed,
rational and prudent consumers. A previous research on the importance of consumer knowledge
among young people mentioned that consumer knowledge is taught at different age across the
globe via formal education. Most of the developed countries started to educate their young people
as early as at five years old referring to well-established education system in Scandinavia
(Consumer Affairs Victoria, Australia, 2003). Comparing to developing country like Malaysia,
according to Mazlan et al., (2014) there is no formal consumer education in the streamline
education system whether in primary, secondary or tertiary level.
In a different study on consumer knowledge specifically about consumer legislations
mentioned that in order to be empowered, savvy and resilient consumers, it is important for
consumer to be equipped with an elevated level of consumer knowledge and skills. Without the
necessary understanding and knowledge of the laws and regulations, consumers will be exposed
to fraud or will may receive unfair treatment from service providers or traders. Consumer
protection and legislations are always associated with government as the enforcer and local
consumer association, however, the consumers must ensure that they are aware and well educated
on how to make complaint or know which channels to go for consumer redress for intance (Fazli
Shaari, 2014).
There is also proven relationship between consumer knowledge and purchase behavior.
(Mceachern & Warnaby, 2008) conducted a study on this relationship found that knowledge in
terms of product knowledge plays a significant role in aiding purchase decisions. The research
covers the role of the product label or product information as labelling communications to
customers that attracts as well as influence consumer purchase behavior. The result of the study
found that consumers today preferred products which are quality-centred, welfare friendly and
organic brands.

10
2.5 Overview of Malaysia Demographic Characteristics
Malaysia is a federal constitutional monarchy, consisting of thirteen states and one federal territory
encompassing the city of Kuala Lumpur, Labuan and Putrajaya in Southeast Asia. It consists of
two parts separated by the South China Sea and bordered by Brunei, Indonesia, and Thailand. The
chief of state is the King and the head of government is the Prime Minister.
Malaysia is a multi-racial, multi-ethnic and multi-religious nation, with Malay, Chinese
and Indian ethnic groups. In religious terms, it is predominantly Islamic, but with strong Christian,
Buddhist and Hindu communities. In terms of economic welfare, Malaysia ranks second in
Southeast Asia, after Singapore. In 2014, Gross Domestic Product’s (GDP) composition by sector
was estimated to be 56% in services, 34.7% in industry and 9.3% in agriculture (CIA World
Factbook, 2015).
2.5.1 Population size
According to the Statistics Department, Malaysia’s population has more than tripled since it was
formed in 1963. Back in 1957 when Tunku Abdul Rahman shouted “Merdeka” seven times in the
newly–built Stadium Merdeka on August 31st, there were just 6.3 million Malayans. As of July,
2015, the total population is estimated to be 30,513,848 with Malays form the largest segment of
the population. The Malaysian population continues to rise at a pace of 1.44% per annum as per
2015 data (Department of Statistic Malaysia, 2015).
2.5.2 Ethnic composition, distribution, age structure, gender and growth rates
Based on the last census conducted in 2010, distribution of ethnic groups for Malays was 50.1%,
Chinese 22.6%, indigenous 11.8%, Indians 6.7%, other 0.7% and non-citizens 8.2% of the total
population. The population distribution is uneven, with over 20 million of 31 million citizens
concentrated in Peninsular Malaysia. Based on July 2014 data prepared by Department of Statistics
Malaysia, almost 70% of the population are aged 15 to 64 years old. Lastly, sex ratio of the entire
population is 1.03 males (s) /female and life expectancy at birth for male is 71.74 years and female
77.48 years (Department of Statistic Malaysia, 2015).

11
2.6 Malaysian Consumers versus Developed Countries
Lau (2011) indicates that the Malaysian consumer market has been growing steadily over the last
few decades. The dynamic growth of population and purchasing power signify the vast potential
of a consumer market in Malaysia. Consumer lifestyles have been evolving and changing, due in
part to rising affluence and education levels. High profile international retailers and the advent of
global mass media have also played a hand in shaping consumer-buying behavior. In general,
Malaysians are becoming more westernized, sophisticated and universal in their outlook of
consumerism.
In April 2015, the implementation of the Goods and Services Tax (GST) has, indirectly,
taken consumer awareness in Malaysia a few notches higher. It is not too far-fetched to say that
the new consumption tax has triggered some semblance of a paradigm shift in consumerism in this
country. Local consumer activists note that besides exercising more caution in their spending, the
people are also doing their own research and comparing prices to find out where they can buy
competitively-priced goods. (Ministry of Domestic Trade, Co-operatives and Consumerism,
2015).
2.6.1 Knowledge and Education
In terms of consumer rights awareness, as reported in Consumer Profile Research conducted by
MDTCC, revealed that only half Malaysian consumers are properly aware of their rights. It means,
Malaysian consumers are generally less educated, especially youths or young people. Local
consumers are unaware of their rights to protection from items, manufacturing processes and
services that endanger their health and lifespans. In addition to that, Malaysian is also lacking of
knowledge on rights to a clean and healthy environment, consumer education, security and
information (Mazlan et al., 2014). According to Benn (2004), developed countries, consumers
including youths are well educated and more particular about their rights while traders are more
responsible.
2.6.2 Ethnocentrism
Other important differences between Malaysia as developing country and developed countries are
ethnocentrism and nationalism. Anuar, Shah, and Ibrahim (2012), found that Malaysian

12
consumers depending on several demographic variables are tend to be more ethnocentric than
those in developed countries. In developed countries, price, quality, durability and other product-
related aspects are the major factors that influence buying decisions.
2.6.3 Consumer confidence
The other important element in behavioral differences and consumer confidence is “halal” product
consumptions. Islam is constitutionally the country’s official religion with 61.3% of 30 million
population plays an integral part of the Malaysian Malay culture. Therefore, selecting and ensuring
products are halal has major influence in local consumer behavior. As compared to westerners or
non-Muslim countries, halal may not give significant impact towards consumer behavior,
however, empirical study shows that halal products are rising in popularity among non-Muslim
consumers globally due to the increase among the health-conscious grocery stores (Muslim &
Student, 2013).
2.7 Awareness - Consumer Rights
The term “consumer rights” has been part of business literature since it was employed by President
J.F. Kennedy in his address to the United States Congress in 1962. Since then, it has provided a
basis for policy development by various supranational organizations, including the European
Union, the OECD and the United Nations (Harland, 1987). Consumer rights cover many areas
from food issues, housing, public transportation, human rights, public policy, education as well as
healthcare services provided in any country.
According to Garman (2003), a right is an entitlement to something or to be treated in some
special ways. It adverts to a set of regulations and laws that has a principal aim to secure the
defense of any type of consumer situations in which does not respect consumer’s power. As such,
provisions of consumer rights are critical as they empower people to protect themselves in the
marketplace.

13
2.8 Types of Consumer Rights
In 2005, Matthew Hilton published a paper outlining 1962’s President Kennedy Consumer Bill
of Rights. The four basic consumer rights that should act as the guiding principles for legislative
and voluntary action are:
1. the Right to Safety – to be protected against products, production processes and
services which are hazardous to health or life;
2. the Right to be Informed – to be given the facts needed to make an informed choice,
and to be protected against dishonest or misleading advertising and labelling;
3. the Right toChoose – to be able to select from a range of products and services, offered
at competitive prices with an assurance or satisfactory quality; and
4. the Right to be Heard – to have consumer interests represented in the making and
execution of government policy, and in the development of products and services.
These four rights were also adopted by the Consumers Union set up in 1960 and subsequently
called Consumers International and have become the core principles of various national consumer
movements around the world (Hilton, 2005).
By 1983, the differing concerns between North and South saw the expansion of the four to
eight consumer rights (Garman, 2003; Fernandez, 2004).
5. the Right to Redress – to receive a fair settlement of just claims, including
compensation for misrepresentation, shoddy goods or unsatisfactory services;
6. the Right to Consumer Education – to acquire knowledge and skills needed to make
informed, confident choices about goods and services, while being aware of basic
consumer rights and responsibilities and how to act on them;
7. the Right to a Healthy Environment – to live and work in an environment which is
non-threatening to the well-being of present and future generations; and
8. the Right to Basic Needs – to sustain access to basic, essential good and services;
adequate food, clothing, shelter, health care, teaching, public utilities, water and
sanitation.

14
2.9 Larger context of Consumer Knowledge
2.9.1 Consumer Protection, Consumer Association, NGO’s
Consumer protection has been a problem ever since the outset of trading 10,000 years ago. In
Malaysia, continuous effort is held out by various parties to assure efficient and comprehensive
protection of consumers in the marketplace. Consumer associations such as the Consumer
Associations of Penang (CAP), the Muslim Consumers Association of Malaysia (PPIM), and the
commonly known non-governmental consumers’ organization, the Federation of Malaysian
Consumers Associations (FOMCA) have been actively defending the consumer interest in the
market through advocacy, lobby for policy change and consumer education. The Malaysian
government has made consumer protection as one of the top national priorities (Haron & Masud,
2012).
A considerable amount of literature has been published on consumer protection. Mohd
Fazli Sabri (2014), mentioned that wider understanding of consumer protection encompasses the
laws and regulations ensuring that interaction between service providers and consumers are fair.
Consumer protection seeks to defend and protect consumer interests. Consumer protection in
Malaysia is carried out in a variety ways such as formulation and implementation of national
policies pertaining to consumer protection; the enforcement of existing legislations related to
consumer protection and the formulation of new legislation and amendments to old laws.
In 1990, the government established The Ministry of Domestic Trade and Consumer
Affairs (MDTCA), which was then renamed as The Ministry of Domestic Trade, Cooperatives and
Consumerism (MDTCC) in 2009. The aim of the Ministry is to balance the interest of both sellers
and consumers. The responsibilities include monitoring domestic trade, advocating and protecting
consumer’s rights, protection of intellectual properties as well as registration and governance of
businesses (Ministry of Domestic Trade, Co-operatives and Consumerism, 2015). Subsequently,
a few new consumer-related legislations (e.g. Consumer protection Act 1999) have been
implemented, the launching of The National Consumer Policy (NCP) in 2002, and new agencies
have been established since 1990s.

15
2.9.2 The National Consumer Policy (NCP)
The National Consumer Policy or Dasar Pengguna Negara (DPN) was established on 26th July
2002 to instill self-protection by the consumers, self-regulation by the traders and manufacturers,
and to achieve an effective consumer protection level, which will provide conducive environment
for the formation of a fair market and sustainable development in tandem with the local and global
economic developments (Ministry of Domestic Trade, Cooperatives and Consumerism, 2015).
The goal of NCP is to improve the quality of life of the people who are also consumers. A
comprehensive policy is defined to ensure consumers and traders play their roles and perform their
respective responsibilities for the sustainable economic growths of the country. In summation, it
proposes to create an ethical, self-regulating, responsible and honest trading community in relation
to consumer welfare and wellbeing of the consumers.
2.9.3 Consumer-related legislations
Consumers in Malaysia are protected by various laws and rules. There are a number of consumer-
related legislations which have been enforced in an endeavor of installing a more consumer-
favorable market in Malaysia.
2.9.3.1 Consumer Protection Act (CPA 1999)
The Malaysia’s Consumer Protection Act 1999 (CPA) is an act which came into effect on 15th
November 1999. The primary aim is to provide greater security for consumers and its provisions
cover areas that are not handled by other existing laws. The Act provides simple and inexpensive
redress of consumer grievances, and relief of a specific nature. The Tribunal of Consumer Claims
was set up under this Act and an aggrieved consumer may refer any difference of opinion or claim
that does not exceed RM 25,000 to this tribunal.
2.9.3.2 Price Control and Anti Profiteering Act 2011 (Act 723)
Price Control Act 1946 (Act 121) is among the earliest legislation to protect consumers. It was
ordained by the colonial government in Malaya and aimed at controlling prices and rising prices.
The Act underwent no less 40 amendments. It was later revised in 1973 as Act 121, and regardless

16
of the imposition of price control, prices of goods kept rising above the controlled price (Mohamad
Fazli Sabri, 2014).
The Act then abolished and replaced by the new Price Control and Anti Profiteering Act
2011 (Act 723) to include anti-profiteering. This Act empowers the Minister of Domestic Trade
and Consumerism to determine prices and charges, and the mechanism to determine if the profit
is unreasonably high (Law of Malaysia Act 121).
2.9.3.3 Hire Purchase Act 1967
In Malaysia, the law on hire purchase is governed by the Hire Purchase Act 1967 which came into
force on 11th April 1968. It forms the legislation that governs hire purchase transactions in
Malaysia, regulating and controlling the form and contents of hire purchase agreements. The Act
imposes fines and imprisonment, with the office of the Controller of Hire Purchase as the
enforcement agency (Law of Malaysia Act 212).
2.9.3.4 Other Legislations
There are many other legislations primarily protecting Malaysian consumers. Among the
legislations are Sales of Goods Act 1957; Contracts Act 1950; Control of Supplies Act 1961;Trader
Descriptions Act 1972; Food Act 1993; Direct Sales and Anti-Pyramid Scheme Act 1993;
Communication and Multimedia Act 1998; Consumer Protection (Safety Standards for Toys)
Regulations 2010; Consumer Protection (Certification of Approval and Conformity Mark of Safety
Standards) Regulations 2010; Malaysia Code of Advertising Practise 1990; and Persona Data
Protection Act 2010 (Mohamad Fazli Sabri, 2014).
2.9.4 Consumer Redress
One of the most important components in consumer protection law is establishing a proper system
of resolving consumer disputes or problems with goods or services. The establishment of the
Tribunal for Consumer Claims in 1999 and the Tribunal of Homebuyer Claims in 2002 are the two
major highlights in the development of consumer protection law in Malaysia (Amin, 2007).

17
2.9.4.1 Tribunal for Consumer Claims Malaysia (TCCM)
The Tribunal for Consumer Claims Malaysia (TCCM) is an independent judicial body established
under the Consumer Protection Act 1999. The enforcement of TCCM is on the same date as
Consumer Protection Act 1999, which is on 15th November 1999. It is below the jurisdiction of
the Ministry of Domestic Trade and Consumer Affairs. The main part of the TCC is to try and
settle claims filed by consumers under the CPA. The claim includes claims relating to supply of
foods, supply of services and unfair trade practices such as misleading advertisements, misleading
price indications and so forth, provided that the claim does not exceed RM 25,000 (Amin, 2007).
2.9.4.2 Tribunal for Homebuyers Claims (THC)
The Tribunal was established under the Housing Development (Control and Licensing) Act 1966.
The objective is to provide better protection to home buyers in Peninsular Malaysia. The main
function of the THC is to resolve complaints on housing-related problems which have been a major
consumer’s complaints in Malaysia for the past many years. THC’s jurisdiction is restricted to the
claims made by homebuyers and the amount of which does not exceed RM 50,000 (Mohamad
Fazli Sabri, 2014).
2.10 Theory
Many researchers agree that knowledge can influence human decisions or actions. Ajzen’s theory
of Planned Behavior (TPB) explained the relationship between knowledge and consumer
behaviors. In the theory argues that individual attitudes and opinions are influenced by knowledge.
As such, the study which determines how consumer awareness and education influence consumer
behavior is in line with Planned Behavior Theory (Ishak & Zabil, 2012).
2.11 Conclusion
In summary, there is positive relationship between consumer awareness and consumer knowledge
with consumer behaviors. The greater consumer awareness and knowledge have better implication
on how consumer behave towards any circumstances. Knowledge is the key concept in consumer
empowerment, without knowledge, customer is vulnerable to any misconduct by traders or sellers
in the marketplace. Knowledgeable consumer also enables consumer protection from any

18
consumerism threats. On the opposite note, consumers hold the sole responsibility of learning,
knowing, and mastering how to utilize their rights in order to stay safe in the market. In a different
perspective, Malaysian government and other consumer associations must double the current
effort, especially on providing consumer education at all levels. The Ministry of Education and
other relevant parties must also revisit the current streamline school education system to ensure
consumer related education is part of the syllabus. Aggressive awareness campaigns should also
be considered to assure consumers are receiving the correct message.
[Word count - 5756]

19
References
Amin, N. (2007). CONSUMER REDRESS MECHANISMS IN MALAYSIA :, (April), 11–13.
Anuar, K., Shah, M., & Ibrahim, H. I. (2012). Consumer Ethnocentrism : Does It Really Matter
for Malaysian Consumers. West East Journal of Social Sciences, 1(1), 26–38.
Benn, J. (2004). Consumer education between “consumership” and citizenship: Experiences
from studies of young people. [References] 2394. International Journal of Consumer
Studies, 28(2), 108–116. http://doi.org/10.1111/j.1470-6431.2003.00364.x
Brennan, C., & Coppack, M. (2008). Consumer empowerment: global context, UK strategies and
vulnerable consumers, 32, 306–313. http://doi.org/10.1111/j.1470-6431.2007.00640.x
Central Intelligence Agency. - Malaysia. CIA World Factbook. Retrieved on October 1, 2015
from: https://www.cia.gov/library/publications/the-world-factbook/geos/my.html
Consumer Affairs, Victoria (2003). Background Report.
Department of Statistics Malaysia. Retrieved on October 1, 2015 from:
https://www.statistics.gov.my/
Haron, S. A., & Masud, J. (2012). SOCIAL SCIENCES & HUMANITIES Assessment of Self-
Rated Consumer Knowledge among Low Income Housing Residence in Malaysia,
20(October 2011), 1085–1102.
Hasan, M., & Saaid, M. (2013). CONSuMERISM TREND IN MALAYSIA, 18–24.
Hilton, M. (2005). The duties of citizens, the rights of consumers. Consumer Policy Review,
15(1), 6–12.
Ishak, S., & Zabil, N. F. M. (2012). Impact of consumer awareness and knowledge to consumer
effective behavior. Asian Social Science, 8(13), 108–114.
http://doi.org/10.5539/ass.v8n13p108
Kaplan, S. (1991). Beyond rationality: Clarity-based decision making. In T. Garling & G. Evans
(Eds.), Environment, Cognition and Action (pp. 171-190). New York: Oxford University Press.
Kotler, P. (2002). Marketing Management , Millenium Edition.
Lau, T. (2011). Ethical Beliefs Amongst Malaysian Consumers : a Look At Demographic
Indicators. International Journal of Academic Research, 3(1), 843–848.
Laws of Malaysia Act 121. Price Control Act 1946 (Amendments 2006). Retrieved from
http://www.agc.gov. my/Akta/ Vol.%203/Act%20121.pdf

20
Laws of Malaysia Act 212. Hire Purchase Act 1967 (Amendments 2006). Retrieved from
http://www.agc.gov.my/Akta/Vol.%205/Act%20212.pdf
Mazlan, D., Redzuan, A., & Abu, D. (2014). Consumer Education in Creating a Consumer
Conscious Nation. Procedia - Social and Behavioral Sciences, 155(October), 448–453.
http://doi.org/10.1016/j.sbspro.2014.10.320
Ministry of Domestic Trade, Co-operatives and Consumerism – Better Consumer Awareness in
Malaysia, Thanks To GST. Retrieved on October 1, 2015 from:
http://kpdnkk.bernama.com/featuresEn.php?id=1124352
Mohamad Fazli Sabri. (2014). The Development of Consumer Protection Policies in Malaysia,
(June 2014), 98–108.
Mulvihill, D. F. (1972). CONSUMER CHOICE BEHAVIOR — A COGNITIVE THEORY by
Flemming Hansen edited by Russell I . Haley.
Muslim, N., & Student, M. (2013). 2013 Selecting Halal Food : A Comparative Study Of The
Muslim And, (December), 438–453.
Sharma, N. (2013). Awareness in Consumer about Consumer Protection Act. & Consumer Right
in India. Globsyn Management Journal, 7(1/2), 82-93.
Wright, L. T., Newman, A., & Dennis, C. (2006). Enhancing consumer empowerment. European
Journal Of Marketing, 40(9/10), 925-935. doi:10.1108/03090560610680934

Business Research Methods - Consumer Empowerment - assignment 1

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (8)

Similar to Business Research Methods - Consumer Empowerment - assignment 1

Similar to Business Research Methods - Consumer Empowerment - assignment 1 (20)

More from Helmee Halim

More from Helmee Halim (11)

Recently uploaded

Recently uploaded (20)

Business Research Methods - Consumer Empowerment - assignment 1