CHAPTER 11.0 INTRODUCTION This chapter 1 includes the research context, problem statement, aims of the study, research questions, hypotheses and research design , the significance of the study and the scope of the study.1.1. Research Context Retail has been one of the most active sub-sectors in the Malaysian economy. According to Kotler (1996), retailing includes all activities involved in selling goods and services directly to final consumers for personal or non-commercial use. The retail environment in Malaysia has undergone continuous and marked change over the decades. New facilities, ranging from supermarkets and hypermarkets to retail warehouses and convenience stores, have also been added to the retail landscape, but this still has not interfered with the operations of traditional retail stores. It may be losing ground in urban centers, but in suburban areas the small retailer is still needed. Zalina (2013), cited in (Guy, 1980), states that retail can be classified into three groups: consumer goods which include groceries and daily supplies, grocery goods which refer to much more expensive items purchased at less regular intervals and specialty goods which are one-off items requested by customers with a higher income level. Lim (2003) stated small-scale and single-owned shops along main streets in urban areas. These are usually two- or three-story pre-war shops with retail operations on the ground floor and residential units on the upper floors such as a retail shop, herb shop, clothing store and coffee shop. As we know, traditional retail stores sell a variety of products from different brands. This gives consumers the ability to make the right purchases…in the middle of the paper…manufacturer brands are still new. Many consumers are still confused about manufacturer's brand products. This is because they have the mentality that the most popular brands are better and have good quality rather than the manufacturer's branded products. This statement is agreed by Mahathir (1999) that most people have a negative perception towards local products and it is difficult to change their mindset. The constraints in terms of quantity and type of branded goods manufacturers are limited and sometimes fail to highlight the advantages of store brands which cause the product does not get response from the consumer. It is quite difficult to change the attitude and mindset of consumers in Malaysia because they keep shouting about the influence of famous brands and luxury over saving on groceries, even though they know that the functionality and quality of the products are the same.