Case Study Of Kedai Rakyat 1 Malaysia

2.2 Market failure addressed by the program
In Malaysia have a stores are designed to provide essential goods to citizens Malaysia or consumers at cheaper prices which are Kedai Rakyat 1 Malaysia (KR1M). KR1M will aid the same consumer segment as hypermarkets do but with more focus on consumers with basic essential needs. Therefore, most items are distributed under the 1 Malaysia brand (Yassin, 2013). Even though KR1M selling products at minimum price but the majority of the consumers still prefer shop from other stores rather than purchases products from KR1M store nearby their residents. Below is some possible discussion reasons about the market failure of the Kedai Rakyat 1 Malaysia (KR1M): First, one reasons why market failure addressed by the KR1M is the product quality. The quality is the total of features and standard of a product or service that bear on its ability to satisfy specified or implied needs. Product quality is describe as the features and characteristics of a product have that contribute to its ability to meet the requirements. Besides that, product quality also can influence the customer’s satisfaction on a product. In fact, consumers don’t dare to buy items with the label “1 Malaysia” because they are doubtful of the quality. Honestly, KR1M public with sub-standard poor quality goods compare with other quality goods of other hypermarkets. Normally people who purchase branded products are person who can affordable it for better quality and these person