INDEPENDENT STUDY

CUSTOMERS PERCEPTION TOWARDS MARKETING ATTRIBUTES OF SF WORLD CINEMA AND PARAGON CINEPLEX

NAPASORN VACHARAPANICH

GRADUATE SCHOOL, KASETSART UNIVERSITY 2009

INDEPENDENT STUDY

CUSTOMERS PERCEPTION TOWARDS MARKETING ATTRIBUTES OF SF WORLD CINEMA AND PARAGON CINEPLEX

NAPASORN VACHARAPANICH

An Independent Study Submitted in Partial Fulfillment of

the Requirements for the Degree of

Master of Business Administration Graduate School, Kasetsart University

2009

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Napasorn Vacharapanich 2009: Customers perception towards marketing attributes of SF World Cinema and Paragon Cineplex. Master of Business Administration. Major Field: Business Administration MBA International Program. Independent Study Advisor: Nirundon Tapachai, D.B.A., 88 pages

The objectives of this study were 1) to study the personal factors and customer behavior of SF World Cinema and Paragon Cineplex customers 2) to study customer perceptions towards the marketing attributes 3) to compare perception towards marketing attributes between SF World Cinema and Paragon Cineplex, and 4) to study different perception towards marketing attributes between/among customers with different personal factors.

A sample of 400 respondents who aged above 15 years and ever have watched the movie at both SF World Cinema and Paragon Cineplex was drawn by convenience

sampling method. Self-administered questionnaire was used as data collection method. The data was analyzed using descriptive statistics including frequency percentage, mean and standard deviation. Hypotheses were tested using inferential statistics

including t-test, F-Test (ANOVA), and LSD at the significant level of 95%.

The results found that, in overall, respondents had somewhat positive perception towards marketing attributes of SF World Cinema and Paragon Cineplex. The hypothesis testing indicated that customers held higher positive perception towards product and people attributes of Paragon Cineplex than those of SF World Cinema. However customers held higher positive perception towards price attributes of SF World Cinema than those of Paragon Cineplex. In addition, the study showed the significant difference in different perception between customers with different gender

in people and process attributes.

Students signature Advisors signature Date/ Month/ Year

ACKNOWLEDGEMENTS

At the completion of this study, I would like to express my sincere thanks and appreciation to my independent study advisor Dr.Nirundorn Tapachai for his valuable advice and encouragement given to me since the start until the finish of this study, and to Dr.Haruthai Numprasertchai, co-advisor, for her kindness and useful comments during my defense.

I would also like to thank the customers of both SF World Cinema and Paragon

Cineplex who kindly completed the questionnaires of my study for their cooperation.

My thanks also go to my parents for their advice and support extended to me during the course of this study.

Napasorn Vacharapanich

April, 2009

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TABLE OF CONTENTS

Page

LIST OF TABLES iii

LIST OF FIGURES vi

CHAPTER 1 INTRODUCTION Background of Cinema Business 1 Statement of Problem 4 Objectives 6 Benefits of the Study 6 Scope of the Study 6 Definitions 7

CHAPTER 2 LITURATURE REVIEW Consumer Behavior Concept 10 Service Concept and Marketing Mix 12

Perception Concept 19 The Measurement of perception 21

Background of SF World Cinema and Paragon Cineplex 23 Related Study 27

Conceptual Framework 30 Hypothesis 31

CHAPTER 3 METHODOLOGY OF THE STUDY Study Design 33 Population and Samples 34

Study Instrument 36 Instrument Testing 37

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TABLE OF CONTENTS (CONTINUED)

Page

Data Collection 38 Data Analysis 39

CHAPTER 4 RESULTS AND DISCUSSIONS

Part 1 Personal Information of Respondents 42 Part 2 Customer Behavior in Watching of Respondents 44 Part 3 Perception towards Marketing Attributes of Respondents 48

Part 4 Hypothesis Testing 55

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS Conclusions 71 Limitations of the Study 72 Recommendations 73 Recommendations for Further Study 76

REFERENCES 77

APPENDICES

Appendix A Questionnaire 81

As of 31 December 2007

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LIST OF TABLES

Table Page

1.1 Market value of movie cinema business in Thailand 1

1.2 Number of cinemas and screens in Thailand by brand 2

1.3 Number of customers in the first four months at Paragon Cineplex (Jan-Apr06) 4

1.4 Number of customers in the first four months at SF World Cinema 4

1.5 A Comparison of the numbers of customers of SF World Cinema and Paragon Cineplex from January to March 2009 5

2.1 Characteristic of SF World Cinema and Paragon Cineplex 26

2.2 Related researches 29

3.1 Rating Sample Size by Taro Yamane table 35

3.2 Date and Time for collecting questionnaires 38

4.1 The personal information of respondents 43

4.2 Frequency of watching movie at cinema 45

4.3 Cinema where respondents usually watch movies 45

4.4 Day of watching movies 45

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LIST OF TABLES (CONTINUED)

Table Page

4.5 Time of watching movies 46

4.6 Person accompanying 46

4.7 Reason for coming to watching movie at cinema 47

4.8 Sources of information 47

4.9 Respondents perception towards marketing attributes of SF World Cinema and Paragon Cineplex 49

4.10 Paired t-test different in customers perception in product attributes between SF World Cinema and Paragon Cineplex 55

4.11 Paired t-test different in customers perception in price attributes between SF World Cinema and Paragon Cineplex 57

4.12 Paired t-test different in customers perception in place attributes between SF World Cinema and Paragon Cineplex 58

4.13 Paired t-test different in customers perception in promotion attributes between SF World Cinema and Paragon Cineplex 59

4.14 Paired t-test different in customers perception in physical evidence attributes between SF World Cinema and Paragon Cineplex 60

4.15 Paired t-test different in customers perception in people attributes between SF World Cinema and Paragon Cineplex 61

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LIST OF TABLES (CONTINUED)

Table Page

4.16 Paired t-test different in customers perception in process attributes between SF World Cinema and Paragon Cineplex 62

4.17 Hypothesis testing conclusions of different in customers perception in

marketing attributes between SF World Cinema and Paragon Cineplex 64

4.18 t-test different gender and different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex 65

4.19 F-test different age groups and different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex 66

4.20 F-test different educational levels and different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex 67

4.21 F-test different occupation groups and different perception towards

marketing attributes of SF World Cinema to relative to Paragon Cineplex 68

4.22 F-test different monthly income and different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex 69

4.23 Hypothesis testing conclusions of different personal information and

different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex 70

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LIST OF FIGURES

Figure Page

1.1 Thailand Cinema Business market share in 2007 2

2.1 Model of Consumer Behavior 11

2.2 Conceptual Framework 30

4.1 Profile of SF World Cinema and Paragon Cineplex perception 54

CHAPTER 1

INTRODUCTION

Background

The tendency of cinema business in Thailand in 2007 had a growth of around 10% from 2006 and total revenue of 5,500 million baht due to the continued expansion of cinemas, in both Bangkok and major provinces. Moreover, many Thai movies are very successful in terms of revenues and acceptance from movie viewers. Thus, many people come to watch the movie at cinema. However, cinema business has very high competition, especially in downtown areas including department stores, entertainment complexes and central business areas. At present, the competition in cinema business is seeking the best locations, advertising and communication to consumers, and differentiated services and various services in the cinema, etc. (www.gotomanager.com, 2007). Cinema business had a market value of 4,000 million baht in 2003. The value increased to 4,300 million baht in 2004, 4,700 million baht in 2005, and 5,000 million baht in 2006, with an estimate value of 5,500 million baht in 2007 (Kasikorn Thai Research Center, 2007). The details cinemas are as shown in Table 1.1.

Table 1.1 Market value of movie cinema business in Thailand

Year Market value (million baht) 2003 4,000.00

2004 4,300.00 2005 4,700.00 2006 5,200.00 2007 5,500.00

Source: Kasikorn Thai Research Center, 2007

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The cinema business in Thailand has two major service providers, namely Major Cineplex, which has a market share of 75%, and SF Cinema, which has a market share of 22%. And others, such as Major Hollywood, Century and local provincial cinemas, with a combined market share of 3% (Figure 1.1).

Figure 1.1 Thailand Cinema Business market share in 2007 Source: Research Department of Siam City Bank

The cinema business which operated by well-known companies in Thailand has more than 64 outlets around Thailand. Major Cineplex operates 46 cinemas with 343 screens around Thailand, while SF Cinema City operates 14 cinemas with 121 screens in Bangkok, Chonburi and Phuket provinces as show in Table 1.2.

Table 1.2 Number of cinemas and screens in Thailand by brand

Company Brand Cinema Screen Major Cineplex Major Cineplex 34 233

EGV 10 82

Paragon Cineplex 1 16

Esplanade Cineplex 1 12

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Table 1.2 (Continued)

Company Brand Cinema Screen SF Cinema SF City 9 73

SFX 4 33

SF World Cinema 1 15

Others Major Hollywood 3 28

Century Movie Plaza 1 8

Source: www.wikipedia.org

Ratchadamri Area

At present, movie cinema business is in high competition, especially in the city center area because in this area has many businesses and customers with high purchasing power. Thus, it has a cluster of cinemas with over 15,000 seats in Sukhumvit, Ratchaprasong, and Pathumwan area, called Ratchadamri area (Kasikorn Thai Research Centre, 2007). Ratchadamri area in Bangkok is the best area where SF City-MBK, Grand EGV-Siam Discovery, EGV-Big C Ratchadamri and Major Cineplex World Trade Center are located cinema. Although, four cinemas already existed in Ratchadamri area but the consumer demand was not fulfilled. The companies still have to invest for the customers convenience in watching and build differences from competitors in serving diverse customer demand (Kasikorn Thai Research Centre, 2007). Major Cineplex and SF Cinema were concerned about this matter and came up with a new concept of cinema to serve high-end target groups with high purchasing power.

In January 2006, Major Cineplex opened Paragon Cineplex, with 16 screens and 4,500 seats; it was very successful and has become a popular cinema. Paragon Cineplex is located on 5th floor in Siam Paragon Department Store. Paragon Cineplex is the first six stars movie cinema in Thailand. After Paragon Cineplex was opened for four

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months, the number of customers of Paragon Cineplex grew at a high rate, with an average of customers being at 92,073 persons per month, as shown in Table 1.3.

Table 1.3 Number of customers in the first four months of Paragon Cineplex

Cinema Screen Jan-06 Feb-06 Mar-06 Apr-06 Paragon Cineplex 15 8,797 94,392 120,712 144,394

Source: Major Cineplex Public Co., Ltd.

In January 2007, SF Cinema opened SF World Cinema, with 15 screens and 4,000 seats, located on 7th floor in Central World Plaza. SF World is the first world class movie cinema of SF Cinema under the concept of Surpass in the world of movies. After SF World Cinema was opened, the average number of customers in the first four months was 53,000 persons per month, as shown in Table 1.4.

Table 1.4 Number of customers in the first four months of SF World Cinema

Cinema Screen Jan-07 Feb-07 Mar-07 Apr-07 SF World Cinema 15 32,000 49,000 74,000 57,000

Source: SF Cinema City Co., Ltd.

Statement of Problem

After SF Cinema City investment of 800 million baht in SF World Cinema, sales revenue from selling tickets in first four months was not more than 20% of total seats and the average number of customers was 53,000 persons per month. SF World Cinemas sales revenue should be at least 25 % of total seats (Bangkokbizweek, 2007). Moreover, in the same period of the study in 2008 (January-March, 2008), the numbers of Paragon Cineplex customers and SF World Cinema customers were 2: 1 as shown in Table 1.5.

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Table 1.5 A comparison of the numbers of customers of SF World Cinema and Paragon Cineplex from January to March 2008

Cinema Jan-08 Feb-08 Mar-08 SF World Cinema 70,000 84,000 95,000 Paragon Cineplex 133,146 153,922 185,718

Source: SF Cinema City Co., Ltd. and Major Cineplex Public Co., Ltd.

SF World Cinema and Paragon Cineplex tried to compete for gain more customers by using various marketing tools, such as promotion, price, place and others to create customer perception with cinema and affect on future intention. The study aimed at SF World Cinema and Paragon Cineplex because both cinemas are of the same level of cinema and nearby, located in the area of high competition, Ratchadamri area, and each cinema in a big department store. But, their success is a different story. Therefore, this study focused on the comparisons of the factors and customer perception of SF World Cinema and Paragon Cineplex. In the cinema business, products are not provided to customers but services to the customers who come to watch the movies at cinema. Below is the question of this study.

There a difference in service marketing (Product, Price, Place, Promotion, People, Physical evidence and Process) those customers perceive from SF World Cinema and Paragon Cineplex?

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Objectives of the study

The main objectives of the research study are as follows:

1. to study the personal factors and customer behavior of SF World Cinema and Paragon Cineplex customers

2. to study customer perception towards marketing attributes 3. to compare perception towards marketing attributes between SF World

Cinema and Paragon Cineplex, and 4. to study different perception towards marketing attributes between/among

customers with different personal factors

Benefits of the Study

The main benefits of the research study are as follows:

1. The study can provide information on customer behavior to SF World Cinema for use in their promotions as appropriate.

2. The study can provide information on the strengths and weaknesses of SF World Cinema by customers perception towards their marketing attributes. Thus, can give suggestion to SF World Cinema to improve marketing strategy as appropriate with customer.

Scope of the Study

The scope of this study is as follows:

1. The samples are customers of 15 age years old and above. 2. The samples are customers who ever have watched movies at both SF World

Cinema and Paragon Cineplex only. 3. Questionnaires are distributed in Ratchadamri area where both cinemas are

located.

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4. Questionnaires are distributed during period from 14 to 22 February, 2009.

Definitions

SF World Cinema is one of the cinema of SF Cinema Group. It was opened in January 2007 at Central World Plaza. SF World Cinema provides a variety of movies at various times. SF World Cinema was opened under The most Hip & Chic Cinemas theme. Its target group is movie viewers who are students, employees, etc, in the age range of 15-25 years. And its strengths are location and modern, attractive decoration.

Paragon Cineplex is one of the cinema of Major Cineplex Group. It was opened in January 2006 in Siam Paragon. Paragon Cineplex provides a variety of movies at various times and other related services to customers such karaoke, bowling etc. Paragon Cineplex was opened under First six-star cinema and World Class cinema concept. Paragon Cineplex target group is movie viewers who are in B+ level and upper and foreigners.

Cinema is place where performing movie films with the big screen by using picture and sound system to show the movies.

Customer behavior is the study of how, who, what, when, where and why people buy goods and/or service.

In this study refers to frequency of watching, cinema usually watch, day and time of watching, person accompanying, reasons for coming to watch, and information searching the movies at cinema.

Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world (Kotler and others, 2006).

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A service is any act or performance that one party can offer to another that is

essentially intangible and does not result in the ownership of anything. (Kotler and others, 2006).

Service marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing a service-based business is different from marketing a goods-based business. The service marketing mix comprises 7 ps as follows:

Product is the goods or service combination the company offers to the target market (Kotler and Armstrong, 1996). In cinema, it refers to the sound system, picture system, the variety of timing of round of movie showing.

Price is the amount of money consumers have to pay to obtain the product. The product or service price should be commensurate with the perceived value of the offer or buyers would turn to competitors in choosing products or services (Kotler, 1994). That refers to movie ticket price.

Place is the various activities the company undertakes to make the product accessible and available to target consumers (Kotler, 1999). That refers to location of cinema and parking lots.

Promotion is the various activities the company undertakes to communicate and promote its products to the target market (Kotler and Armstrong, 1996). That refers to the activities that attract customers to the cinema such as public relations, special events, member cards, advertising and sales promotions, etc.

Physical evidence is the element of the service mix that allows the consumers to make judgments on the organization. That refers to cinema seats, waiting area outside the cinema, the department store where the cinema is located, restaurants, beverage counters.

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People are an essential ingredient to any service provision; it is the use of appropriate staff and people. That refers to cinemas staff or department stores staff.

Process is the systems used to assist the organization in delivering the service. That refers to the time used in the line of buying the ticket and movie showing, ticket buying process, and checking point for checking the show time.

Customer is the person who comes to watch a movie at cinema. In this study, refer to person who goes to watch a movie at SF World Cinema and Paragon Cineplex.

CHAPTER 2

LITERATURE REVIEW

This study was focused on basic elements of marketing mix that affects customer perception behavior. In order to learn of the target customer wants, needs, perception, preferences and buying behavior, this chapter reviewed literature relevant to this study to create research framework. There were eight main topics as follows:

1. Consumer Behavior Concept

2. Service Concept and Marketing Mix

3. Perception Concept

4. The Measurement of Perception

5. Background of SF World Cinema and Paragon Cineplex

6. Related Study

7. Conceptual Framework

8. Hypotheses

Consumer Behavior Concept

Schiffman and Kanuk (2000) indicated that consumer behavior focuses on how individuals make decisions with spending their time, money and efforts on related factors that include what they buy, where they buy it, why they buy it, how often they use it.

Mowen (1993) stated that clearly understanding of consumers consumption process are benefits that helps managers in their decision making to provide marketing research with knowledge base from analyzing and concerning consumers purchase.

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Based on Kotler and Armstrong (1996), consumer-buying behavior referred to the buying behavior of final consumers-individuals and household who buy goods and services for personal consumption. The company that really understands how consumers would respond to different product features, price, and advertising appeals had advantage over its competitors.

The starting point for the understanding of consumers behavior is the stimulus-response model shown in Figure 2.1 Marketing and environmental stimuli enter the consumers consciousness. A set of psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. The marketers task is to understand what happens in the consumers consciousness between the arrival of the outside marketing stimuli and the ultimate purchase decisions. Four key psychological processes motivation, perception, learning and memory fundamentally influence consumer responses to the various marketing stimuli (Kotler 2006).

Figure 2.1 Model of Consumer Behavior Source: Philip Kotler and Kevin Lane Keller (2006) Marketing Management: an Asian Perspective (4th ed) Prentice Hall

Consumer Psychology

-Motivation-Perception-Learning-Memory

Consumer Characteristics

-Cultural-Social-Personal

Buying Decision Process

- Problem recognition-Information search-Evaluation of alternatives-Purchase decision-Post-purchase behavior

Purchase Decision-Product choice-Brand choice-Dealer choice-Purchase amount-Purchase timing-Payment method

Marketing Stimuli Other Stimuli -Products & Services -Economic-Price -Technological-Distribution -Political-Communications -Cultural

Consumer Psychology

-Motivation-Perception-Learning-Memory

Consumer Characteristics

-Cultural-Social-Personal

Buying Decision Process

- Problem recognition-Information search-Evaluation of alternatives-Purchase decision-Post-purchase behavior

Purchase Decision-Product choice-Brand choice-Dealer choice-Purchase amount-Purchase timing-Payment method

Marketing Stimuli Other Stimuli -Products & Services -Economic-Price -Technological-Distribution -Political-Communications -Cultural

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Service Concept and Marketing Mix

Definitions of service

A popular definition describes service as any act or performance that one party can offer to another that is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product. Every business is a service business (Kotler, 1999). The key roles of service are added process and performance (Zeithaml and Bitner, 1996)

Gronroos (1990) observes that a service is an activity or series of activity that are more or less intangible. It normally, but not necessarily, takes place in interactions between customer and service employees and/or systems of service provider, which are provided as solutions to customer problems.

Categories of Service

A companys offerings often include some services. The service component can be a minor or a major part of the total offering. Five categories of offerings can be distinguished (Kotker, 2006):

1. Pure tangible good The offering consists primarily of a tangible good such as soap, toothpaste, or salt. No services accompany the product.

2. Tangible good with accompanying service The offering consists of tangible good accompanied by one or more services. Levitt observes that the more technologically sophisticated the generic product (e.g., cars and computers), the more dependent are its sales on quality and availability of accompanying customers services (e.g., display rooms, delivery, repairs and maintenance, application aids, operator training, installation advice, warranty fulfillment).

3. Hybrid The offering consists of equal parts of goods and services. For example, people patronize restaurants for both food and service.

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4. Major Service with accompanying minor goods and services The offering consists of major service along with additional services or supporting goods. For example, airline passengers buy transportation. The trip includes some tangibles, such as food and drinks, a ticket stub and an airline magazine. The service requires a capital intensive good an airplane for its realization, but the primary item is a service.

5. Pure service The offering consists primarily of a service. Examples include babysitting, physiotherapy, and massage.

Characteristics of Service

Four major characteristics of services which affect the design of marketing programs are following (Kotker, 2000):

1. Intangibility: Services are intangible. They cannot be seen, tasted, felt, heard or even smelled before they are bought, unlike physical product. To reduce uncertainty, buyers will look for signs and evidence of services quality. They will draw inferences about services quality from the place, people, equipment, communication material, symbols and price that they see. So the services providers task is to manage the evidence, to tangibilize the intangible. Whereas the product marketers are challenged to add abstract ideas, service marketers are challenged to put physical evidence and imagery on their abstract offers.

2. Variability: Services are highly variable which depends on who provides and when they are provided. Service buyers are aware of this variable and frequently collect the data with others before selecting a service provider. There are three steps concerned towards the quality control in the service firms:

The first is investing in good human resource and training. The second step is standardizing the service-performance process throughout the organization. This is helped by depicting the service events and processing a flow chart, with recognizing potential service fail points. The third step is monitoring customer satisfaction through suggestion

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and complaint system, customer surveys, and comparison, co the poor services can be detected and corrected.

3. Inseparability: Services are typical produced and consumed simultaneously. This is not true for the physical goods which are manufactured, put in inventories, distributed through multiple resellers and consumed later on. The provider is part of service. The provider-client interaction is a special feature of service marketing. Both the provider and client affect the service outcome.

4. Perishability: Service cannot be stores. The perishability of services is not a problem when demand is steady because it is easy prepare services in advance. When demand fluctuates, service firms will face the difficult situations.

Cinema is one kind of services that shows movie films on big screens. During time watching movie, cinema has provide seat, waiting area, sound and picture system etc. Thus, cinema is one of the categories of service called major service with accompanying. Moreover, cinema has the same characteristics of service as mentioned before.

Marketing Mix Concept

Marketing mix is a marketing tool designed to deliver a consumer benefit and important thing that are used to convince consumers to feel satisfaction. The marketing mix consists of everything the firm could do to influence the demand for its product. The many possibilities could be collected into four groups of variables known as the four Ps: product, price, place, and promotion (Kotler and Armstrong, 1996). The successful companies are those who can meet consumer needs economically and conveniently and with effective communication (Kotler, 1999).

Service has different characteristics from product. Thus, marketing mix for product and service should be different. Service marketing mix concept that applied

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forms the basic of marketing mix of four Ps and extended three Ps: People, Physical and Process that are called evidence of service.

1. Product

The product means the goods-and-service combination the company offers to the target market (Kotler and Armstrong, 1996). Strategies needed for managing existing products over time are adding new ones and dropping failed products. Strategic decision must also be made regarding branding, packaging and the product features such as warranties (Stanton, et al., 1994).

Product is defined by Kotler (1999) as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. This may include physical goods, services, persons, places, organization, and ideas. He also divides products into three levels. First is core product that it consists of the problem solving service or core benefits that consumers seek when they buy a product. Second, actual product generally has five characteristics a quality level, features, design, a brand name, and packaging. These characteristics are combined together to deliver to core benefit. Third, offering additional consumer services and benefits are called augmented product.

Service is activities or favors offered for sale which are basically intangible. The product in service is to provide value for consumers but cannot be tangible at the same time.

2. Price

Price is the amount of money consumers have to pay to obtain the product. The product price should be commensurate with the perceived value of the offer or buyers would turn to competitors in choosing products (Kotler, 1994).

Price is the amount of money charged for product or service, or the sum of the value that consumers exchange for the benefits of having or using the product or service.

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Price is the only element in marketing mix that produces revenue while all other elements represent costs. When setting prices, there are many internal and external factors to consider (Kotler, 1999).

The price variable is represented as a sign or tag that has relatively little direct sensory experience connected with it (Kotler, 1999).

Rao (1984) stated that the effect of price changes is more immediate and direct, and appeals based on price are the easiest to communicate to prospective buyers. However, competitors can react more easily to appeals based on price than to those based on product value and image. Price can be an effect to the customers decision to buy a product or service.

3. Place

Place stands for the various activities the company undertakes to make the product accessible and available to target consumers (Kotler, 1999).

Place is a channel to deliver a product or service to customers. Stern and El-Ansarys (1992) define marketing channel as sets of interdependent organizations involved in the process of marketing a product or service available for use or consumption.

Place means the structures of channel that consist of firm and activities to transfer products and services from firm to market. Firm is the organization that introduces a product into the market and the activities which help to distribute the product consist of transportation, warehouse, and inventory.

To understand the nature of distribution channel is important because it challenges the firms decision in choosing distribution channels to deliver products or services to consumers. The key distribution channel function is moving goods from producers to consumers by helping to complete transactions and fulfilling the completed transactions.

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4. Promotion

Promotion means various activities the company undertakes to communicate and promote its products to the target market (Kotler and Armstrong, 1996).

Promotion is communication about the information between the seller and the buyer to influence attitudes and consumer behavior. Communication can be used by personal selling or nonpersonal selling. There are many communication tools that can be chosen, only one or many tools as in Integrated Marketing Communication (IMC), as considered suitable for customers, products, competitors to reach same objective.

The purposes of promotion are to inform, persuade, and remind consumers. When deciding on a promotional mix; the combination of advertising, personal selling, and other promotional tools, management should consider: (1) the nature of the market, including the type of consumer, the prospects readiness to buy, and the geographic scope of the market; (2) the nature of the product, including unit value, the degree of customization required, and the amount of pre-sale and post-sale service; (3) the stage of the products life cycle; and (4) funds available for promotion (Stanton et al., 1994).

Promotions affect consumer behaviors, a firms sales profits, and market shares. Objectives can be accomplished only if consumers perform a variety of behaviors, including purchase of its product. Different types of promotions can be used to influence the various behaviors in the purchase/consumption sequence (Kotler, 1999).

A promotion strategy will be a success when consumers contact promotion information. It may be intentional or, often, incidental. Usually, the marketer must send the promotion message into the target consumers physical environment to maximize

chances for exposure, and design the promotion so that it will be noticed. Nevertheless, it requires knowledge of the media habits of target market. Moreover, by using telemarketing (telephones contact) and personal selling, promotion can be achieved. Also referrals or consumer contacting salespeople are likely to be more successful (Bayus, 1985:564).

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The marketing mix concept is a necessary part of marketing theory. It is endured because it is effective and simple. Now there are several ways managers can add more strength to the concept while maintaining its simplicity. By applying such ideas as consistency, integration, and leverage, managers can see how a marketing program fits the needs of the market place, the skill of the company, and the vagaries of the competition. To meet such disparate demands, the elements of the marketing mix must make the most effective use of company strengths, take aim at precisely defined segments, and protect the company from competitive threats (Shapiro, 1985).

First four Ps; product, price, place, and promotion, are basic of marketing mix both for product and service. And the last three Ps are used only for service industry.

5. People

People are everyone who plays a part in service delivery and thus influence the buyers perceptions; namely, the companys personnel, the customer, and other customers on the service environment. People are the element that differentiates service marketing from product marketing. It is important to pay attention to how people are selected, trained, motivated, and managed because these matters influence the consistency of service quality in customers perception (McDonald and Payne, 1996).

6. Physical evidence

Physical evidence connotes the environment in which the service is delivered and where the company and customers interact, and any tangible components that facilitate performance or communication of the service (Bitner and Zeithaml, 1996). Customers can make judgment on the company for using product or service when they use the service. It is important to help them to see what is them buying or not. Physical evidence is an essential of the service mix that consumers will make perceptions based on their sight of service provision which will affect the company plan of the service.

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7. Process

Process means the actual procedures, mechanisms, and flow of work activities by which the services are created and delivered to customers or the systems that are used to assist the organization in delivering the service to customers.

Process refers to the methods and processes of providing a service and it is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, and if the customers are informed in hand about the services and many such things.

Perception Concept

Perception is one of consumer psychology or psychological processes in consumer

behavior. Psychological processes combine with certain consumer characteristics to result in decision processes and purchase decisions. Psychological processes fundamentally influence consumer responses to the various marketing stimuli (Kotler et al. (2006).

Definition of perception

Bernard Berelson and Garry A. Steiner (1964) mentioned that Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world.

Sucha Janaim and Surang Janaim (1975) mentioned that Perception is the procedures that people who have experience of such items or incidents by all touches.

Gustav Puth, Pierre Mostert and Michael Ewing (1999) referred that The perception process has long been recognized as the most significant barrier to effective communication. It is at this point that the sender does or does not get through to the receiver (Aaker and Myers, 1987).

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Schiffman and Kanuk (2000) referred that Perception is the procedure which individuals recognize, select, organize and interpret to image which has meaning and is easier to understand. And they are a highly individual process based on each person's own needs, values, expectations and the like.

Jorge Martins de Oliveira (2000) said that the perception does not identify the outside world as it really is, but the way we are allowed to recognize it, as a consequence of transformations performed by our senses. Thus, we transform photons into images, vibrations into sounds and noises and chemical reactions into specific smells and tastes. Actually, the universe is colorless, inodorous, insipid and silent.

Kotler and others (2006) suggested that perception depends not only on the physical stimuli, but also on the relation to the surrounding field and on conditions within the individual. The key point is that perceptions can vary widely among individuals exposed to the same reality.

Kotler and others (2006) said that people can emerge with different perceptions of the same object because of three perceptual processes:

1. Selective attention means the process which consumers are exposed to numerous advertising or brand communications every day. Because they cannot possibly attend to all of these, most stimuli will be screened out.

2. Selective distortion is tendency to interpret information in a way that will fit our preconceptions. Consumers will often distort information to be consistent with prior brand and product beliefs.

3. Selective retention is tendency that people will fail to register much information to which they are exposed in memory, but will tend to retain information that supports their attitudes and beliefs. People are likely to remember good points about a product that they like but forget good points about competing products.

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Gustav Puth, Pierre Mostert and Michael Ewing (1999) referred that analysis of the consumer perception and decision-making processes is therefore extremely important to assist the marketer to understand consumer behavior, draft better positioning strategies and develop more effective marketing campaigns based on product attributes and the associated perceived benefits.

The Measurement of Perception

Attitude consists of three major components: a cognitive component, an affective component, and a behavioral component. The first component consists of persons knowledge (cognition) and perception that acquired by combination of direct experience with attitude-object and related information secured from various sources. The knowledge and resulting perceptions are from beliefs. Attitudes towards an attitude object are peoples learnt tendencies to evaluate an object in a consistently favorable or unfavorable way. In other words, people evaluate a particular object by an overall basis from poor to excellent (Shao, 2002).

Moreover, there are many variations of properties, but usually they are concerned with the psychological aspects of consumer. There are various terms and labels given to these constructs, including attitudes, opinions, evaluations, beliefs, impressions, perceptions, feelings and intentions. Because these constructs are unobservable, the marketing researcher must develop some means of allowing respondents to express the direction and the intensity of their impressions in a convenient and understandable manner (Burn C. and Burn F., 2006).

There are several attitude measurement approaches employed to determine consumer attitude: observation and inference, qualitative research method, and self report attitude scales (Zikmund, 2000).

1. Observation of behavior: Since we cannot get inside consumers idea directly to observe their attitudes, we must rely on indirect measures of attitudes. One of measurement approaches is to observe consumers behaviors and infer their attitudes

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from their behaviors. Although observational research is useful, drawing conclusion of consumer attitudes from their behaviors are often difficult and subjective. Since researchers observe the same consumers repeatedly, it is a common practice for other researches.

2. Qualitative research method: This research is useful in understanding the nature of consumer attitudes. Open-ended and free-response types of questions are used to stimulate respondents inner thoughts and beliefs. In-depth interviews and focus groups are conducted to determine which product or brand attributions are likely to be used in judging alternative brands.

Self-report attitude scale: The most common way in assessing consumer attitudes is through the administration of questionnaires containing attitude scales. The three most popular are Likert scales, Semantic differential scales, and Rank-order scales.

1. Likert scales: a measure of attitudes which allows respondents to rate how strong they agree or disagree with a constructed statement. Several scale items are ranged from very positive to very negative towards the statement. The number of alternative may range from 3 to 5. It is the most popular one because it is easy in terms of responding and interpreting the results.

2. Semantic differential scales: a measure of attitudes consisting of a series of 7-point rating that uses bipolar adjectives to anchor the beginning and end of each scale. Respondents are instructed to check the place indicating the nearest appropriate adjective. The focus of semantic differential is on the measurement of the meaning of an object, concept, or person and good way to measure a brand, company, or store image.

3. Rank-order scales: a measurement task that requires respondents to rank order a small number of stores, brands, or objects, in overall preference or on the basis of some characteristics of the stimulus.

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This study chose the semantic differential scale as perception measurement. It is suitable because of this study is study different perception towards marketing attributes of SF World Cinema and Paragon Cineplex, which is nearly close to a comparison of the store images of cinemas.

Backgrounds of SF World Cinema and Paragon Cineplex

SF World Cinema of SF Cinema City Group

SF Cinema City Group has grown up strongly from film distribution and cinema business in the eastern region of Thailand for more than 30 years. In 1999, SF Cinema City expanded cinema business to Bangkok and opened its first branch in Bangkok at MBK Center. It renovated MBK Centers 7th floor to look like a movie planet with a concept of One Floor Entertainment to include all entertainment services. After that in 2001, SF Cinema City opened more branches at The Mall Bangkapi, The Mall Bangkae, and The Mall Ngamwongwan. In 2002, SF Cinema City introduced a new brand, SFX, which presented first class cinema for the first time in Thailand, serving hi-end customers with an exclusive style of decoration in the concept Movie Terminal at Central Ladprao, The Emporium and Central Festival Phuket.

SF Cinema has a key strategy on location that SF Cinema will operate cinemas in mega stores such as Central Department Store, The Mall, and popular locations such as MBK, Bangkapi, and Pattaya etc. This is the important reason why SF chose to open a new cinema at Central World.

SF World Cinema is a new premium brand of SF Cinema City that targets new generation and young cosmopolitan people. SF World Cinema was opened in January 2007 at the 7th floor of Central World Department Store with investments of over 800 million baht. SF World Cinema operates 15 screens with 4,000 seats in the center of the city where large shopping are situated with numerous public transportation routes (bus, sky train, tuk-tuk, taxi and boat services). Moreover, SF World Cinema has special

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cinemas that are different from others in the market, called World Happiness Screen and Director World Screen

After expanding its cinema business to Bangkok, SF Cinema Group operates cinemas under three brands to serve different target groups in different locations as follows:

1. SF City has nine cinemas located in big department stores such as the Mall and Central department stores, etc. SF Citys target groups are divided by department stores location such as

1.1. Teenagers SF Bangkapi, SF Ngamwongwan, etc 1.2. Colleges and universities SF MBK, etc. 1.3. Families SF Bangkae, SF Rattanatibet, ect.

2. SFX has four outlets located in luxurious department stores such as Emporium, Central Ladprao etc. SFXs target group is hi-end people who well-to-do, urban families, office workers, etc.

3. SF World Cinema has only one outlet located in Central World. SF World Cinemas target group is people aged between 16-25 years old who love shopping and watching movies.

Paragon Cineplex of Major Cineplex Group

Paragon Cineplex is operated by Major Cineplex Group Public Company Limited. It is the first six-star cinema in Thailand. Major Cineplex Group was founded by Mr. Vicha Poolvaraluck in 1994, Cinema with a goal of becoming The Worlds Best Cinema and Lifestyle Entertainment Complex Provider, Major Cineplex Group has become a leader in the cinema industry with strategy as a professional and set market positioning strategy of company with vision and experience in cinema business to a world class

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cinema operator. Major Cineplex Group has continuously grown in Thailands cinema business

At the end of 1995, Major Cineplex opened the first Entertainment Complex Pinklao Branch under the Stand Alone Entertainment Complex Concept to compete face to face with EGV Entertainment Pinklao branch (Central Pinklao Shopping Center). They have tried to establish a good foundation for the company so that they can expand more branches easily in the future. After Major Cineplex opened the first branch, two years later, it opened the second branch at Ekamai and one year later the third branch at Ratchayothin, which had so much impact on Major Cineplex that its market share increased by 3-4 % for first branch and 7-8% and 10-15% for following branches.

In 2004, Major Cineplex merged its business with EGV Entertainment, resulting in Major Cineplex having a market share of 70%. At present, Major Cineplex has four brands, namely Major Cineplex, EGV, Paragon Cineplex, and Esplanade Cineplex, to serve different target groups with outlets as follows:.

1. Major Cineplex has 34 outlets around Thailand and most of them are stand alone outlets, serving every demographic group with focus on family group.

2. EGV has 10 outlets around Thailand and most of them are located in the department stores of major provinces, serving teenager group whose lifestyle is funny, free, independent, and extreme.

3. Paragon Cineplex has only one outlet located in Siam Paragon. Paragon Cineplex offers the first six-star movie cinema concept in Thailand targeting movie viewers who are moderate to high in income (B class), innovative, sophisticated, and worldly.

4. Esplanade Cineplex has only one outlet located in Esplanade Department Store, serving young generation viewers who like fashions and arts.

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Paragon Cineplex is a new brand of Major Cineplex Group and located on 5th floor in Siam Paragon. The Paragon Cineplex operates 16 screens with 4,500 seats, comprising fourteen 35mm screens, one 3-D IMAX screen and one exclusive cinema club called Enigma-the shadow screen.

This study has studied customers perception towards SF World Cinema and Paragon Cineplex. In Table 2.1 shows a broad range of SF World Cinema and Paragon Cineplex.

Table 2.1 Characteristics of SF World Cinema and Paragon Cineplex

Characteristics SF World Cinema Paragon Cineplex

Cinemas Concept Surpass the world of movies First six-star cinema in Thailand and

The Worlds Best Destination

Target Group Customers who aged 16-25 years old and love shopping

and watching the movies.

Customers who are moderate to high

in income (B class level), innovative, sophisticated, and worldly.

Services Movies and restaurants Movies, bowling alleys, and karaoke

First Class (VIP) Nokia Ultra Screen (VIP) World Happiness Screen

Digital Screen Siampavalai

Normal Screen Normal Screen

Krungsri Imax (3D)

Type of screen

Enigma (Member Club) Mon-Wed 600 B

VIP Seat Thu-Sun 700 B

600 B

Mon-Wed 120 B Price

Normal Seat Thu-Sun 140 B

140 B

Location 7th floor, Central World 5th floor, Siam Paragon

Tops Supermarket Starbucks Other shops on the same floor

Restaurants Bank of Ayuthaya

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Related Study

Pisitwutinan (2001) studied the customers satisfaction towards the services of the Multiplex IV Cinema at The Mall Ngamwongwan Branch. The objectives of this study were to search the level of customers satisfaction towards the selected sides of the Multiplex IV Cinemas services as classified into two groups according to the concepts of P. Eiglier and E. Langeard. The first is physical environment that is composed of three elements, namely general surrounding and decoration, technology and systems, and management. The second is contact personnel that have one element namely service employees at The Mall Ngamwongwan Branch. The study focused on the relationships between customer satisfaction and levels of customers income and education. Further, the results of this study were presented to the Cinemas executive committees for decision to improve the Cinemas system. Moreover, this study was conducted by collecting the questionnaires from sample customers at set times and areas. The collected data were then analyzed by using descriptive methods. The first factor, levels of customers income, was statistically related to the systems and technology and management while the second factor, levels of customers education, was significantly related to all of services of the cinema.

Champasoot (2004) studied the customer satisfaction towards Major Cineplex at Changwattana Branch. The study aimed at 1) customer behavior at Major Hollywood movie cinema, 2) customer satisfaction towards the marketing mix factors of Major Hollywood movie cinema, 3) the relationship between customer behavior and personal factors, and 4) customer satisfaction towards personal factors of marketing mix. The results of the study of customer behavior at Major Hollywood were that most sample customers watched movies two times per month, usually on weekends or official holidays. From Monday to Friday, they came for movies between 18.00-20.00 and for weekends or official holidays, between 14.00-16.00. Most of them were accompanied by boy/girlfriends. The customer satisfaction towards marketing mix factors was at satisfied level on product, place, promotion, people and process, but was at neutral

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level on price and physical evidence. The hypothesis testing result showed that age, education, and occupation had relationships with behavior. In addition, the result showed that age and income had high effects on marketing mix factors but education and occupation had lower effects, while gender and marital status had least effects. This study was done by collecting samples of customers who watched movies at the Major Hollywood.

Chanchaivoravit (2007) studied the perception of international backpackers to security incidents in Thailand. The objectives of the study were 1) to study international backpackers perception towards security incidents in Thailand, 2) to study the differences of international backpackers perception towards security incidents in Thailand according to their characteristics, 3) to study the differences of international backpackers perception towards security incidents in Thailand according to their travel behaviors. The results of study showed that respondents characteristics, the differences of the regions of origin, genders, ages and education levels of respondents held different perception towards security incidents in Thailand and respondents tourist behavior, the differences of previous experiences, lengths of stay and accompaniers of respondents held different perception towards security incidents in Thailand.

Vadeesirisak (2008) studied the Internet users perception on online banking regarding Paypal. The objectives of study were to find the perception of the Internet users towards online purchasing and the tendency of online purchasing and banking with users in Bangkok. The research found that gender, income, experience with online purchasing, knowledge of PayPal and frequency of purchasing correlate with the chance of online purchasing, while long time spending on the Internet and income, experience with online purchasing, knowledge of PayPal and frequency of purchasing correlate with the increase of online banking usage if it is convenient. The gender and income are the factors that affect the level of perception regarding PayPal online banking.

In summary, the related study found that gender, age, education, occupation and income have effects on the perception of customers as shown in Table 2.2

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Conceptual Framework

Figure 2.2 Conceptual framework

The difference in customer perception towards marketing

attributes of SF World Cinema and Paragon Cineplex 1. Product 2. Price

3. Place 4. Promotion

5. Physical Evidence 6. People

7. Process

Personal Factors

1. Gender 2. Age

3. Education 4. Occupation

5. Monthly Income

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Hypothesis

The hypotheses of this study classified as follows:

1. There is different in customers perception in product attributes between SF World Cinema and Paragon Cineplex

2. There is different in customers perception in price attributes between SF World Cinema and Paragon Cineplex

3. There is different in customers perception in place attributes between SF World Cinema and Paragon Cineplex

4. There is different in customers perception in promotion attributes between SF World Cinema and Paragon Cineplex

5. There is different in customers perception in physical evidence attributes between SF World Cinema and Paragon Cineplex

6. There is different in customers perception in people attributes between SF World Cinema and Paragon Cineplex

7. There is different in customers perception in process attributes between SF World Cinema and Paragon Cineplex

8. Customers with different gender groups hold different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex.

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9. Customers with different age groups hold different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex.

10. Customers with different educational levels hold different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex.

11. Customers with different occupations hold different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex.

12. Customers with different monthly incomes hold different perception towards marketing attributes of SF World Cinema in relative to Paragon Cineplex.

CHAPTER 3

METHODOLOGY OF THE STUDY

This chapter mentioned the methodology of this study which had been developed from the conceptual framework. The following methodology was the guild line through this study starting with study design to data analysis. There were six main topics as follows:

1. Study Design

2. Population and Samples

3. Study Instrument

4. Instrument Testing

5. Data Collection

6. Data Analysis

Study Design

This study was designed to use descriptive research by using survey method. The research used questionnaire as a research instrument to collect the information from 400 respondents regarding their perception towards marketing attributes of SF World Cinema and Paragon Cineplex. A sample of population in this descriptive study was customers who aged above 15 years and ever have watched the movie at both SF World Cinema and Paragon Cineplex. The questionnaires were collected in Ratchadumri Area. The time to conduct the survey was February 14 - February 22, 2009.

The key materials used in the descriptive research were comprised of questionnaire and a statistical program.

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Population and Samples

Population

The target Population of this study is persons who aged 15 years and above and ever have watched the movies at both SF World Cinema and Paragon Cineplex. Since, this target population had direct experience in watching movies at both cinemas so they could give the information regarding their perceptions in marketing attributes of SF World Cinema and Paragon Cineplex with most accuracy.

This study identified number of target population based on number of customers at SF World Cinema and Paragon Cineplex between January-March, 2008 (period of study and growth rate was not considered). Therefore, number of population of SF World Cinema and Paragon Cineplex were 249,000 and 472,786 persons (source from SF Cinema Group & Major Cineplex Group).

Sample Size

Sample size was the selective customers from the total population to use as a representative. In order to determine the appropriate sample size for large population and to ensure the results of each respondent was reliable. Thus, the number of sampling respondents was calculated from Taro Yamane statistical table (table 3.1). In this case, the number of target population who ever have watched movies at both SF World Cinema and Paragon Cineplex was more than 100,000 and infinity with 95% of confidential level. Therefore, the sample size was determined from the population over 100,000 people. As a result, the sample size used in this study was 400 respondents who ever have watched movies at both SF World Cinema and Paragon Cineplex

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Table 3.1 Rating sample size by Taro Yamane table (Yamane, 1967)

Sample Size (n) for Precision (e) of: Size of Population 3% 5% 7% 10%

500 a 222 145 83

600 a 240 152 86

700 a 255 158 88

800 a 267 163 89

900 a 277 166 90

1,000 a 286 169 91

2,000 714 333 185 95

3,000 811 353 191 97

4,000 870 364 194 98

5,000 909 370 196 98

6,000 938 375 197 98

7,000 959 378 198 99

8,000 976 381 199 99

9,000 989 383 200 99

10,000 1,000 385 200 99

15,000 1,034 390 201 99

20,000 1,053 392 204 100

25,000 1,064 394 204 100

50,000 1,087 397 204 100

100,000 1,099 398 204 100

>100,000 1,111 400 204 100 a = Assumption of normal population is poor (Yamane, 1967). The entire population should be sampled.

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Study Instrument

The instrument for study was the questionnaire which was developed from the objectives and conceptual framework regarding the theory and from the exploratory research in order to study the consumers perception towards marketing attributes of SF World Cinema and Paragon Cineplex. The questionnaire was divided into three parts as follows:

Part 1: The personal information of respondents

The questions were to ask the respondents regarding the personal information including their gender, age, educational level, occupation and monthly income. The respondents were subject to give one answer that fit their own characteristic. This part had five questions which two nominal scale and three ordinal scale questions. Furthermore, they were analyzed by frequency and percentage.

Part 2: Consumer behavior in watching of respondents

The questions were to ask the respondents regarding the customer behavior including frequency of watching, cinema usually come to watch, day and time of watching, person accompanying, information searching the movies at cinema, and reasons for coming to watch the movies. The respondents were subject to answers that match their own behaviors. This part had seven questions which two nominal scale and five ordinal scale questions. Furthermore, they were analyzed by frequency and percentage.

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Part 3: Customers perception towards marketing attributes of SF World Cinema and Paragon Cineplex

The questions were to ask the perceptions of customers towards SF World Cinema and Paragon Cineplex in seven marketing attributes including product, price, place, promotion, physical evidence, people, and process. Questionnaire was designed by using semantic differential scale with seven-point scale. The seven-point scale ranging from extremely positive agree, very positive agree, somewhat positive agree, neutral

agree, somewhat negative agree, very negative agree, and extremely negative agree. Score of the answer was seven, six, five, four, three, two, and one respectively between several bipolar adjective phases. The respondents were subject to give one best answer that fit their own perceptions towards marketing attributes of SF World Cinema and Paragon Cineplex. They were analyzed by mean and standard deviation.

Instrument Testing

Pre-testing was conducted in order to test whether the questionnaires were appropriate, suitable, and understandable to target respondents as well as their validity and reliability. Therefore, the pre-testing of questionnaire was done before distribute. The result can be described as below:

Validity Test

Validity test was conducted in order to ensure that all questions covered the problem and objectives of study. To have the content validity, testing the questionnaire by consult with advisor. This process was to check to appropriateness and clearness of language and scale of measurement used in each that can be analyzed and answered the problem accurately.

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Reliability Test

The valid questionnaires were distributed to thirty respondents who ever have watched movie at both SF World Cinema and Paragon Cineplex at Ratchadamri Area. This pre-testing was conducted on February 9, 2009 as a pre-test to check whether the respondents had some misunderstanding on the questionnaire.

The reliability analysis of this study was analyzed on the basis of these completed questionnaires. Therefore, the reliability analysis by Cronbachs Alapha coefficient was used as measure the reliability of questionnaire. The results of Cronbachs Alapha are

Questionnaire for perceptions towards SF World Cinema = 0.951 Questionnaire for perceptions towards Paragon Cineplex = 0.944

Data Collection

The data was gathered by using questionnaire with totally 400 respondents who aged above 15 years and ever have watched the movie at both SF World Cinema and Paragon Cineplex was drawn by convenience sampling method. Time to collect was on February 14 - February 22, 2009. Self-administered questionnaires were used since it was not time consuming method in collecting the information. The 400 questionnaires were collected from Ratchadamri area where both cinemas are located. Ratchadamri area was covering Siam Paragon, Siam Square, MBK, Central World, and Big C-Ratchadamri.

The first question before distributed questionnaire was screening question who match with target population who have aged above 15 years old and ever have watched movies at both SF World Cinema and Paragon Cineplex.

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Table 3.2 Date and Time for collecting questionnaires

Date Time of Collection Number of Questionnaires 14-Feb-09 11 AM - 8 PM 70 15-Feb-09 11 AM - 8 PM 70 16-Feb-09 2 PM - 9 PM 60 18-Feb-09 2 PM - 9 PM 60 19-Feb-09 2 PM - 9 PM 70 22-Feb-09 11 AM - 8 PM 70

Total 400

Data Analysis

Once the questionnaire was completely distributed to respondents and rechecked whether all of them were filled completely in every part. Raw data was put and coded in a SPSS (Statistical Package for Social Science) program.

According to part of consumer perception towards SF World Cinema and Paragon Cineplex assigned a point by using semantic differential scale. The answer of this part was chosen from seven response categories ranging from extremely positive agree to

extremely negative agree. The researcher assigned scores or weights to the alternative responses. The weight of score would be assigned to the answer as below:

extremely positive agree = 7 scores

very positive agree = 6 scores

somewhat positive agree = 5 scores

neutral agree = 4 scores

somewhat negative agree = 3 scores

very negative agree = 2 scores

extremely negative agree = 1 score

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The range of mean score of each level regarding their perceptions were be calculated as the below equation;

Interval = Highest score Lowest score

Number of range = 7-1

7 = 7-1

7 = 0.85

From the calculation of interval above, 0.85 score was used to separate the measurement of rating. Then, the average mean could explain the perceptions for the variable as following:

Rating Range Level of perception

6.16-7.00 = extremely positive perception

5.30-6.15 = very positive perception

4.44-5.29 = somewhat positive perception

3.58-4.40 = neutral perception

2.72-3.57 = somewhat negative perception

1.86-2.71 = very negative perception

1.00-1.85 = extremely Negative perception

In this study, the statistical tool used for data analysis can be categorized into two types as descriptive and inferential statistic.

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Descriptive Statistics

Percentage was used to division of the frequency for each value by the total number of observations for all of the values resulting in a percent called a percentage distribution.

The mean or the average was used to measure of central tendency that used to consider general picture of the data without unnecessarily inundating one with each of the observations in a data set. It was to use analyze the information such as perception towards marketing attributes.

Standard deviation was used to in conjunction with the mean to indicate a perception towards marketing attributes of SF World Cinema and Paragon Cineplex. The result from calculation had matched with range of the above criteria.

Inferential Statistics

The t-test method was assessed whether the differences of mean scores of the two sample mean were statistically significant. The study would check significant difference at 95% confidence level ( = 0.05). If hypothesis significant 0.05 the variances null hypothesis (H0) was not supported.

The F-test method or analysis of variance (ANOVA) was used to test the differences of mean scores among three groups. Then, the LSD (Least Significant Difference) was utilized to test which sub-group made the significant difference if it was found there was the significance among groups. The study would check significant difference at 95% confidence level ( = 0.05). If hypothesis significant 0.05 the variances null hypothesis (H0) was not supported.

CHAPTER 4

RESULTS AND DISCUSSIONS

This chapter emphasized the analysis of the data including the description of personal information (gender, age, educational level, occupation and monthly income), customer behavior (frequency of watching, cinema usually come to watch, day and time of watching, person accompanying, information searching the movies at cinema, and reasons for coming to watch the movies), and customers perception towards marketing attributes of SF World Cinema and Paragon Cineplex.

This analysis of study used two types of statistic. The first was descriptive

statistic including frequency, percentage, mean, and standard deviation. The second type was inferential statistics including t-test (paired), t-test (independent) and F-test (one-way analysis of variance), multiple comparisons (LSD).

The analysis in this chapter was divided into four parts as follows:

Part 1 Personal information of respondents

Part 2 Customer behavior in watching of respondents

Part 3 Perception of respondents towards marketing attributes of respondents

Part 4 Hypothesis testing

Part 1 Personal Information of Respondents

The personal information of the respondent was divided into five questions

including gender, age, educational level, occupation and monthly income. All of this personal information was reported in the form of descriptive statistic as follows:

From table 4.1, the result showed that respondents who answer the questionnaire consisted of female 62.8% and male 33.8%.

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Table 4.1 The personal information of respondents

(n=400) Personal Information Number Percentage

Gender Male 149 37.2 Female 251 62.8

Total 400 100 Age Between 15 -18 years 123 30.8 Between 18 - 22 years 141 35.2 Between 22 - 29 years 79 19.8 Between 29 - 35 years 15 3.8 Between 35 - 40 years 33 8.2 Over 40 years 9 2.2

Total 400 100 Education level

High School/Vocational Certificate or lower 127 31.8

Diploma/ High Vocational Certificate 37 9.2

Bachelor Degree 200 50.0 Master Degree or higher 36 9.0

Total 400 100 Occupation Students 271 67.8 Private Company Officers 70 17.5 Government Officials 14 3.5 State Enterprise Officer s 9 2.2 Business Owners-Proprietors 27 6.8 Others 9 2.2

Total 400 100 Monthly income Less than 5,000 Baht 164 41.0 5,000 10,000 Baht 94 23.5 10,001 20,000 Baht 61 15.3 20,001 30,000 Baht 26 6.5 30,001 40,000 Baht 33 8.2 More than 40,000 Baht 22 5.5

Total 400 100

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In term of age, the result showed that most of respondents were between 18 - 22 years old (35.2%), followed by 15-18 years old (30.8%), and 22-29 years old (19.8%). And lowest number of respondents was in age group of over 40 years old (2.2%).

For educational level, the result showed that most of respondents had education at the level of bachelor degree (50.0%), followed by High School/Vocational Certificate or lower (31.8%), Diploma/High Vocational Certificate (9.2%) and Master Degree or higher (9.0%).

In the case of occupation, the result showed that the majority of respondents was students (67.8%) and followed by private Company Officer (17.5%) and business owners-proprietors (6.8%).

Finally, the result indicated that the majority of respondents earned personal income per month less than 5,000 baht (41.0%) and followed by personal income per month between 5,000 10,000 baht (23.5%) and 10,001 20,000 baht (15.3%) and the lowest of respondents earned personal income per month more than 40,001 baht (5.5%).

Part 2 Customer Behavior in Watching of Respondents

Customer behaviors of respondent were divided into seven categories as frequency of watching, cinema usually come to watch, day and time of watching, person accompanying, information searching the movies at cinema, and reasons for

coming to watch the movies. All of these customer behaviors were reported in the form of descriptive statistic as follows:

From table 4.2, the result indicated that most respondents watched movie once a month (33.8%) and followed by 2-3 times per month (28.5%) and every couple months (22.8%). The lowest frequency was 1-2 time per week (5.5%).

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Table 4.2 Frequency of watching movie at cinema

Frequency of watching Number Percentage

1-2 time per week 22 5.5 2-3 time per month 114 28.5 Once per month 135 33.8 2-3 months per time 91 22.8 Others 38 9.5

Total 400 100

Table 4.3 indicated that most respondents usually watched the movie at SF World Cinema 41.8% and followed by Paragon Cineplex (36%) and at both cinemas (22.2%).

Table 4.3 Cinema where respondents usually watch movies

Cinema Number Percentage Paragon Cineplex 144 36.0 SF World Cinema 167 41.8 Both cinema equally 89 22.2

Total 400 100

Table 4.4 indicated that most respondent watched movie at their convenience

days (53.2%) and followed by weekends or official holiday (41.3%) and Monday-Friday (5.5%).

Table 4.4 Day of watching movies

Day of watching Number Percentage Monday-Friday 22 5.5 Weekend or Official Holidays 165 41.3 Convenient days 213 53.2

Total 400 100

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Table 4.5 indicated that most respondents watched movies from 14.00-16.00 (29.5%), followed by 12.01-14.00 (23.5%) and 16.01-18.00 (20.5%). And the least number of respondents watched movies from 10.00-12.00 (3.8%).

Table 4.5 Time of watching movies

Time Number Percentage 10.00-12.00 18 4.5 12.01-14.00 94 23.5 14.01-16.00 118 29.5 16.01-18.00 82 20.5 18.00-20.00 61 15.2 After 20.00 27 6.8

Total 400 100

Table 4.6 showed that most respondents came to watch movies with their friends (53.3%), followed by girlfriend/boyfriend (23.3%) and family (19.5%).

Table 4.6 Person Accompanying

Person Accompanying Number Percentage Friends 213 53.3 Family 79 19.8 Girlfriend/Boyfriend 95 23.8 Alone 10 2.5 Others 3 0.8

Total 400 100

Table 4.7 indicated that most respondents come to watch movies at theater for the reason of relaxation (67.8%) and entertainment (64.0%), followed by for meeting with friends (39%) and as movie fans (32.3%).

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Table 4.7 Reasons for coming to watch movie at cinema

Reason for coming to watch a movie Number Percentage Relaxation 271 67.8 A family activity 63 15.8 Meeting with up friends 156 39 Kill the time 48 12 Discuss with friends 39 9.8 Friend ask me to go 31 7.8 For entertainment 256 64 Movies fan 129 32.3 Not to miss new movies 49 12.3 Dating activity 59 14.8 Various activities at theater 21 5.3 Special event such as birth anniversary, Fathers Day, etc 28 7 Others 8 2 * Respondents can answer more than 1 item

Table 4.8 indicated that most respondents used Internet (48.3%) to check information of SF World Cinema and Paragon Cineplex, followed by the point of

program at theatre (37%) and friends (33.5%).

Table 4.8 Sources of information

Sources of information Number Percentage Newspaper 113 28.3 Internet 193 48.3 Call Center 50 12.5 Program at cinema 148 37 Friends or other persons 142 35.5 Television 89 22.3 Mobile Phone/GPRS/WAP 41 10.3 Others 6 1.5 * Respondents can answer more than one item

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Part 3 Perception Towards Marketing Attributes of Respondents

This part of the questionnaire was the perception survey. There were twenty-

one questions which separated into seven attributes including product, price, place, promotion, physical evidence, people, and process as shown in table 4.9. The results analyzed in mean, standard deviation.

Table 4.9 indicated that the respondents had very positive perception towards

clear sound system of SF World Cinema ( x =5.37), followed by somewhat positive perception towards clear picture system ( x =5.26) various cinema show time ( x = 5.14). From the average product attributes score, mean analysis found that the respondents had somewhat positive perception towards product attributes of SF World

Cinema ( x =5.26).

Meanwhile, the respondents had very positive perception towards clear sound

system ( x =5.50) and clear picture system of Paragon Cineplex ( x =5.50), followed by somewhat positive perception towards various cinema show time ( x = 5.25). From the average product attributes score, mean analysis found that the respondents had

very positive perception towards product attributes of Paragon Cineplex ( x = 5.42)

From difference perception towards product attributes of SF World Cinema and Paragon Cineplex, the result indicated that the respondents had higher perception

towards Paragon Cineplex than SF World Cinema in all of product attributes regarding clear sound and picture of cinema, and various cinema show times.

For price attributes, the respondents had somewhat positive perception towards SF World Cinema regarding it has suitable movie ticket price for normal seat

( x =5.06), VIP seat ( x =4.91) and felt worthy if compare movie ticket price with service quality of cinema ( x =5.09). From the average price attributes score, mean analysis found that the respondents had somewhat positive perception towards price

attributes of SF World Cinema ( x =5.02).

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Table 4.9 Respondents perception towards marketing attributes of SF World Cinema and Paragon Cineplex

SF World Cinema (S)

Paragon Cineplex (P)

Difference Perception (S-P) Perception towards Marketing

Attributes Mean S.D. Mean S.D. Mean

Product 1 Sound System of theatre 5.37 1.13 5.50 1.06 -0.13 2 Picture System of theatre 5.26 1.13 5.50 1.10 -0.24 3 Show time of theatre 5.14 1.16 5.25 1.16 -0.11 Average perception towards product

attributes 5.26 1.01 5.42 1.00 -0.16

Price 4 Movie ticket price for normal seat 5.06 1.14 4.90 1.25 0.16 5 Movie ticket price for VIP seat 4.91 1.36 4.68 1.46 0.23

6 compare movie ticket price with service 5.09 1.14 4.99 1.19 0.10

Average perception towards price attributes 5.02 1.02 4.92 1.12 0.10

Place 7 Search on theatre location 5.06 1.16 5.10 1.26 -0.04 8 Transportation to theatre 5.15 1.18 5.24 1.30 -0.09 9 Parking Lots 4.85 1.52 4.86 1.46 -0.01 Average perception towards place

attributes 5.02 1.05 5.07 1.10 -0.05

Promotion 10 Co-Promotion with Other Partner 4.83 1.39 4.87 1.40 -0.04

11 Privilege from theatres member card 4.80 1.52 4.82 1.46 -0.02

12 Movie Festival at theatre 4.89 1.43 4.95 1.38 -0.06 Average perception towards

promotion attributes 4.84 1.30 4.88 1.23 -0.04

Physical Evidence 13 Normal seat in theatre 4.96 1.19 5.08 1.19 -0.12 14 Temperature in theatre 5.10 1.18 5.17 1.28 -0.07 15 Waiting area outside theatre 5.09 1.23 5.08 1.30 0.01

Average perception towards physical evidence attributes 5.05 1.04 5.11 1.07 -0.06

People 16 Courtesy in service of staff 5.08 1.22 5.19 1.28 -0.11

17 Concentration in the service of staff 5.06 1.23 5.16 1.23 -0.10

Average perception towards people attributes 5.06 1.09 5.17 1.18 -0.11

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Table 4.9 (Continued)

SF World Cinema (S)

Paragon Cineplex (P)

Difference Perception (S-P) Perception towards

Marketing Attributes Mean S.D. Mean S.D. Mean Process

18 Movie checking points 5.07 1.19 5.22 1.14 -0.15

19 Period of buying the ticket at Box Office 5.08 1.14 5.14 1.18 -0.06

20 Movie ticket buying process on internet 4.72 1.65 4.69 1.72 0.03

21 Buying the ticket on automatic call center 4.67 1.73 4.69 1.75 -0.02

Average perception towards process attributes 4.88 1.14 4.94 1.17 -0.06

While Paragon Cineplex, the respondents had somewhat positive perception towards price attributes regarding Paragon Cineplex has suitable ticket price for

normal seat ( x =4.90) and VIP seat ( x =4.68) and felt worthy if compare movie ticket price with service quality of cinema ( x =4.99). From the average price attributes score, mean analysis found that respondents had somewhat positive perception

towards price attributes of Paragon Cineplex ( x = 4.92).

From difference perception towards price attributes of SF World Cinema and

Paragon Cineplex, the result indicated that the respondents had higher perception towards SF World Cinema than Paragon Cineplex in all of price attributes regarding ticket price for normal and VIP seats, and worthiness from service quality.

For place attributes, the respondents had somewhat positive perception

towards SF World Cinema in term of easy to searching on location ( x =5.06), convenient transportation to cinema ( x =5.15), and convenient parking lots at cinema ( x = 4.85). From the average place attributes score, mean analysis found that respondents had somewhat positive perception towards place attributes of SF World

Cinema ( x = 5.02).

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Meanwhile, the respondents had somewhat positive perception towards

Paragon Cineplex in term of easy to searching on location ( x =5.10), convenient transportation to cinema ( x =5.24) and convenient parking lots at cinema ( x = 4.86). From the average place attributes score, mean analysis found that respondents had

somewhat positive perception towards place attributes of Paragon Cineplex ( x = 5.07).

From difference perception towards place attributes of SF World Cinema and

Paragon Cineplex, the result indicated that the respondents had higher perception towards Paragon Cineplex than SF World Cinema in all of place attributes regarding search on cinema location, transportation, and parking lots.

For promotion attributes, the respondents had somewhat positive perception towards SF World Cinema regarding to interesting in co-promotion with other

partnership ( x =4.83), worthy in privilege of cinemas member card ( x = 4.80), and interesting in movie festival event ( x = 4.89). From the average promotion attributes score, mean analysis found that respondents had somewhat positive perception

towards promotion attributes of Paragon Cineplex ( x = 4.84).

While, the respondents had somewhat positive perception towards Paragon

Cinema to interesting in cinema co-promotion with other partnership ( x =4.87), worthy in privilege of cinemas member card ( x = 4.82), and interesting in Movie Festival Event ( x = 4.95). From the average promotion attributes score, mean analysis found that respondents had somewhat positive perception towards promotion

attributes of Paragon Cineplex ( x = 4.88).

From difference perception towards promotion attributes of SF World Cinema and Paragon Cineplex, the result indicated that the respondents had higher perception towards Paragon Cineplex than SF World Cinema in all of place attributes regarding

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co-promotion with other partners, privilege from theatres member card, and movie festival event.

For physical evidence attributes, the respondents had somewhat positive

perception towards SF World Cinema regarding comfortable seating ( x = 4.96) and temperature in cinema ( x = 5.10), and adequate waiting area outside cinema ( x = 5.09). From the average physical evidence attributes score, mean analysis found that respondents had somewhat positive perception towards physical evidence attributes of

SF World Cinema ( x = 5.05).

However, the respondents had somewhat positive perception towards Paragon

Cineplex regarding comfortable seating ( x = 5.08) and temperature ( x = 5.17) in cinema, and adequate waiting area outside cinema ( x = 5.08). From the average physical evidence attributes score, mean analysis found that respondents had somewhat positive perception towards physical evidence attributes of Paragon

Cineplex ( x = 5.11).

From difference perception towards physical evidence attributes of SF World

Cinema and Paragon Cineplex, the result indicated that the respondents had higher perception towards Paragon Cineplex than SF World Cinema in term of comfortable

seating and temperature. But had higher perception towards SF World Cinema and Paragon Cineplex in term of adequate waiting area outside cinema.

For people attributes, the respondents SF World Cinema, respondents had

somewhat positive perception towards SF World Cinema regarding courtesy of staff

service ( x = 4.96) and concentration in service. ( x = 5.06). From the average people attributes score, mean analysis found that respondents had somewhat positive

perception towards people attributes of SF World Cinema ( x = 5.06).

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While, the respondents had somewhat positive perception towards Paragon

Cineplex regarding courtesy of staffs service ( x = 5.19) and concentration in service ( x = 5.16). From the average people attributes score, mean analysis found that respondents had somewhat positive perception towards people attributes of Paragon

Cineplex ( x = 5.17).

From difference perception towards people attributes of SF World Cinema and Paragon Cineplex, the result indicated that the respondents had higher perception

towards Paragon Cineplex than SF World Cinema in all of people attributes regarding courtesy in service staff and concentration in service

For process attributes, the respondents had somewhat positive perception

towards movie checking point at cinema ( x = 5.07), buying ticket process at Box Office ( x = 5.08), buying ticket process on internet ( x = 4.72), and buying ticket process on automatic call center ( x = 4.67). From the average process attributes scor