CHAPTER 11.0 INTRODUCTIONThis Chapter 1 includes the research background, problem statement, objectives of the study, research questions, hypotheses and the research setting, the importance of the study and the scope of the study.1.1. Research BackgroundRetail is one of the most active sub-sectors of the Malaysian economy. According to Kotler (1996), retailing includes all activities involved in selling goods and services directly to end consumers for their personal or non-business use. The retail environment in Malaysia has seen continuous and marked evolution over the decades. Even new facilities ranging from supermarkets and big box stores to retail warehouses and convenience stores have been added to the retail landscape, but this has still not interfered with the operations of traditional retail stores. It may be losing out in urban centers, but in suburban areas the small retailer remains necessary. Zalina (2013), cited in (Guy, 1980), states that retail can be classified into three groups: convenience products which include groceries and daily provisions, shopping products which refer to much more expensive items purchased at less regular intervals and specialty products. which are unique items requested from customers with a higher income level. Lim (2003) discussed small individual shops located along main roads in urban areas. These premises are generally two or three storey pre-war shops with retail operations on the ground floor and residential units on the upper floors such as a retail store, a medicinal herbs, a clothing store and a cafe. As we know, in traditional retail stores they sell a variety of products from different brands. This gives consumers the choice to make the right purchase...... middle of paper ...... manufacturer brands are still new. Many consumers are still confused about manufacturer branded products. This is because they believe that the most popular brands are better and of good quality than the manufacturer's branded products. Mahathir (1999) agrees that most people have a negative perception towards local products and it is difficult to change their mindset. Constraints in terms of quantity and type of branded products from manufacturers are limited and sometimes fail to highlight the benefits. store brands that cause the product to get no response from the consumer. It is quite difficult to change the attitude and mentality of consumers in Malaysia as they always cry about the influence of famous brands and luxury over saving on their spending even though they know that function and quality of products are the same..