Live Project Title

“Consumer Buying Behavior toward Shopping malls”

Submitted To –

Prof – Sunitha Ratnakaram

Submitted By

Raghvendra kumar patel

Regs no – 5117

Srisir Pratap Singh

Regs no - 5141

Marketing- 2

Date- 20-11-2010

Introduction

Shopping malls contribute to business more significantly than traditional markets which were

viewed as simple convergence of supply and demand. Shopping malls attract buyers and sellers,

and induce customers providing enough time to make choices as well as a recreational means of

shopping. However, competition between malls, congestion of markets and traditional shopping

centers has led mall developers and management to consider alternative methods to build

excitement with customers. This study examines the impact of growing congestion of shopping

mall in urban areas on shopping conveniences and shopping behavior. Based on the survey of

urban shoppers, the study analyzes the cognitive attributes of the shoppers towards attractiveness

of shopping malls and intensity of shopping. The results of the study reveal that ambiance of

shopping malls, assortment of stores, sales promotions and comparative economic gains in the

mall attract higher customer traffic to the malls.

Shopping malls are an emerging trend in the global arena. The first thing that comes in our mind

about the shopping malls is that it is a big enclosed building housing a variety of shops or

products. According to historical evidences shopping malls came into existence in the middle

ages, though it was not called so. The concept of departmental stores came up in the 19th century

with the Industrial Revolution. Consumers wanted a better shopping experience and this demand

gave rise to the emergence of shopping malls in India.

Objective of study

To understand the how changes are coming in the mind of customer regarding

shopping malls.

To understand that now customers are relay feeling much comfortable buying at the

shopping malls other than the retail stores.

To find out what all difficulties consumer are facing at the time of buying and after

buying in shopping malls.

To identify good & bad experiences regarding shopping malls.

Need of the Study

Understanding buying behavior pattern in shopping malls is not enough without understanding

the composition and origin of the customer. Today most of the Indian customers are attracted by

the imported goods because of their high quality. So that most of the Indian shopping malls

looses their credibility and loyalty in domestic customers. So the needs of the study are –

How can we stand out in a highly competitive market where consumers have so many

choices?

How we can provide best loyalty to our customer while earning a fair profit?

How can we grow our business while retaining a core of the loyal customer?

Scope of study

This study will provide us data and information about Shopping malls and its competitive

position in the market and this will also help us to analyze the market potential of

shopping malls as per consumer needs. This study provides a full idea about shopping malls pattern and how customers are

getting product from there.

How Mall owners could draw more people to their malls if they act upon customer

feedback and the researchers’ suggestions, which might not cost much.

Limitations of study

In today market there are lot of general store existing in the market and they are also giving a big

challenge to shopping malls that’s why we face many problem at the time of data collection

like……………

Consumers are not interested to give their opinion about shopping malls.

There are many people don’t know different between shopping mall and general store.

In this study we felt that some consumers are not able to recollect their past experience

regarding shopping mall.

With respect to actual population the sample size is too small. This might be effect the

final result

Review of Literature

“Consumer shopping behavior in malls with large scale entertainment centers.”

By- Talpade, Salil,haynes, Joel

Summary:- The idea of adding a major entertainment center to a shopping mall has been gaining

popularity over the past few years. Several of these so called 'mega-malls' have been constructed

in various regions of the country, with substantial square footage allocated to large-scale

entertainment centers. In terms of shopping center patronage, Ballenger et al. (1977) found that

some consumers placed the greatest value on convenience and economic attributes including

convenience to home, accessibility, and the presence of services such as banks and restaurants.

Others, however emphasized recreational attributes including atmosphere, fissionability, variety

of stores and merchandise. However, as mentioned earlier, there has been very little academic

research on mega-malls and the effects of entertainment centers in such malls on consumer

behavior. Most of the research conducted on this relatively recent phenomenon has been done by

either mall developers in specific malls (e.g., Stiller & Smith, 1992) or by private research

agencies which provide a fee-based information service (e.g., U.L.I. Publications). These studies

have primarily focused upon defining the trading area of the mall, the consumer characteristics,

and the extent of patronage at various stores and entertainment centers.

“Growing Shopping Malls and Behavior of Urban Shoppers”

By- Rajagopal

Summary:- Shopping malls contribute to business more significantly than traditional markets

which were viewed as simple convergence of supply and demand. Shopping malls attract buyers

and sellers, and induce customers providing enough time to make choices as well as a

recreational means of shopping. However, competition between malls, congestion of markets and

traditional shopping centers has led mall developers and management to consider alternative

methods to build excitement with customers. This study examines the impact of growing

congestion of shopping mall in urban areas on shopping conveniences and shopping behavior.

Based on the survey of urban shoppers, the study analyzes the cognitive attributes of the

shoppers towards attractiveness of shopping malls and intensity of shopping. The results of the

study reveal that ambiance of shopping malls, assortment of stores, sales promotions and

comparative economic gains in the mall attract higher customer traffic to the malls.

“Shopping Malls: A New Shopping Experience”

Summary:- The case let deals with the development of organized retailing in India in the form of

shopping malls. It looks into the reasons for the growth of shopping malls in India. With the

changing shopping needs and aspirations, consumers are finding it easier to shop at malls where

a wide choice of merchandise is available under one roof. The case let also delves into the

growth of specialty malls and the challenges faced by shopping malls in India.

“Shopping Malls Facing Consumer Decision Making Style”

Summary:- Retailers and marketers often seek to learn how and why people shop. The consumer

decision- making process is a complex phenomenon. The purchase of goods or services includes

a number of factors that could affect each decision. Decision making is more complex and even

more important for consumers today than in the past. Consumers are besieged by advertising,

news articles, and direct mailings that provide an abundance of information, much of it with

mixed messages. In addition, increases in the number and variety of goods, stores, and shopping

malls, and the availability of multi component products and electronic purchasing capabilities

have broadened the sphere for consumer choice and have complicated decision making. In the

extant consumer behavior literature, most studies assume that all consumers approach shopping

with certain decision-making traits that combine to form a consumer's decision-making styles.

Academicians and researchers have long been interested in identifying these underlying decision

styles of shoppers. For example, consumers are identified as economic shoppers, personalizing

shoppers, ethical shoppers, apathetic shoppers, store- loyal shoppers, recreational shoppers,

convenience shoppers, price-oriented shoppers, brand- loyal shoppers, name-conscious shoppers,

problem-solving shoppers, quality shoppers, fashion shoppers, brand conscious shoppers and

impulse shoppers.

“Malls See Change in Consumer Behavior”

Summary:- In the last ten years, many malls have donned the trappings of community centers.

Mall owners have gone to great lengths to lure consumers in and keep them in, installing free or

low-cost amenities like jogging routes, restaurants, movie theaters and merry-go-rounds. In the

recession, however, these attractions are now becoming more popular than the retail stores. Sales

in many mall stores in New York, New Jersey and Connecticut have declined. That said, food

courts, play areas and other thoroughfares are still welcoming visitors. Parents need to entertain

their children, teenagers need a hang out, and adults meet in shopping malls to socialize indoors.

Mall owners in New York, New Jersey and Connecticut, like their counterparts across the

country, have installed wave-riding machines and offer laser tag, paintball and ice skating. They

have also organized concerts and karaoke contests, temporary-tattoo parties and social clubs for

children, and they have begun turning vast and empty stores into community theaters and health

clinics.

“Adding Bricks to Clicks:The Effects of Store Openings on Sales through Direct Channels”

By- Jill Avery, Mary Caravella, John Deighton and Thomas Steenburgh

Summary:- Consider a retailer who operates both brick-and-mortar stores and direct channels

such as direct mail catalogs and an Internet Web site. What effect does the opening of a new

retail store have on direct channel sales in the retail trading area surrounding the store? Does the

existence of more opportunities for consumer contact with the brand increase the retailer's direct

sales, or does intra-brand, inter-channel competition erode the retailer's direct sales? Does

consumer response to the retailer's brand evolve over time, perhaps as consumers go through

some process of trial-and-error learning about the relative merits of stores and direct channels, or

is the impact of the new store relatively discrete? Does the answer depend on whether consumers

in the retail trading area have had the opportunity for previous experience with the brand's

stores?

“Shopping day and night: Area malls extend hours to satisfy the schedules of early birds and night owls”

By- Andrea K. Walker

Summary:- Some shopping malls are taking a cue from their big-box retail competitors by

opening their doors earlier and leaving them unlocked a little bit later. Many retail consultants

believe General Growth Properties' decision last month to expand its hours at most of its more

than 200 malls across the country -- including several in the Baltimore area -- could mark the

beginning of a trend for the nation's shopping centers. The Chicago-based company is adding a

few hours on weekend mornings and evenings in hopes of drawing more shoppers who say they

want the added convenience. It's a departure, however, from the normally staid world of

shopping malls, where hours typically change only during the busy holiday shopping season. But

some retail consultants said fewer hours aren't the reason shopping malls keep losing market

share to the rest of the retail world

“Consumer behaviour and retailing decisions”

By- S. Ramesh Kumar

Summary:- Decision making with regard to retail outlet selection is very similar to consumer

decision-making on brands where the consumer goes through a process starting from identifying

needs to post-purchase issues. There are a few interesting and important dimensions associated

with consumer behaviour and retail outlet selection. Marketers need in-depth knowledge about

the various dimensions which link retailing and consumer behaviour. There is research required

to handle retail decisions in a competitive context. McDonald's found that a major chunk of its

consumers decide to eat a few minutes before they make the purchase decisions and hence it is

building small outlets in large supermarkets such as Wal-Mart and Home Depot.

There are three fundamental patterns which a consumer can follow and they could be:

(I) Brand first, retail outlet second

(ii) Retail outlet first, brand second

(iii) Brand and retail outlet simultaneously.

Research Methodology

For finding out various details of our project we have to find the various factors which is making

the shopping malls so attractive to the customer. is it the huge variety attainability, effortless

business, service variety ambience, active marketing and cleanliness . We have to also find out

the what is the impact of these malls on the small retail shops. We have to visit various shopping

malls and by observation method we have to find out the various factors which is making these

malls so attractive to the customer, we also need to interview the customer and ask them about

their choice and preferences like what are the thing they like about the shopping malls that

includes (variety, price shopping environment, service, cleanliness, attainability) etc. And for

finding out the impact of these malls on the small retailers we need to interview some small

retailer and know their opinion and position.

Research problem-“Consumer Buying Behavior toward Shopping malls”

Data source- Primary data

Research Approach- Survey Approach

Research Methodology- Exploratory method

Research Instruments- Questionnaire

Sampling plan

Sample collection- Malls, super market

Sample method- Random Sample method

Sample Size- 50

Primary Data- Questionnaire

Primary data

Primary data is the specific information collected by the person who is doing the research. It can

be obtained through clinical trials, case studies, true experiments and randomized controlled

studies. This information can be analyzed by other experts who may decide to test the validity of

the data by repeating the same experiments. Primary data can also be retrospective,

interventional and observational in nature. Retrospective primary data gathers information about

past conditions or behaviors. Interventional primary data may be gathered to see the effect of a

new product or services. Observational studies gather primary data by means of case studies such

as the work done by naturalists like Jane Good all on chimpanzees in the wild.

Survey Approach

We collected primary data through sample survey from the selected elements in malls and super

markets. So for this purpose we have used the most popular tool of primary data collection

through direct communication with respondents. The tools we used are questionnaires. After

fulfilling the questionnaires we asked some verbal question also. According to their response we

are able to recollect some more information regarding this study and survey. Convenience

sampling is used for this study Convenience sampling is used in exploratory research where the

researcher is interested in getting an inexpensive approximation of the truth. As the name

implies, the sample is selected because they are convenient. This non probability method is often

used during preliminary research efforts to get a gross estimate of the results, without incurring

the cost or time required to select a random sample.

Exploratory method

Exploratory research is a type of research conducted for a problem that has not been clearly

defined. Exploratory research helps determine the best research design, data collection method

and selection of subjects. It should draw definitive conclusions only with extreme caution. Given

its fundamental nature, exploratory research often concludes that a perceived problem does not

actually exist.

Questionnaire

Under the Questionnaire we have 16 Question and each Question related to different-different

factor (purchasing or buying at the shopping malls, pattern of the selling, rang and product price,

offer, parking facilities, employee behavior) of shopping malls.

Sample collection

For collecting the sample we had visited many shopping malls and super market. What we had

done their we simply approach the people who came out from shopping mall.

Sample Method-

Random Sample method-

A random sample is one chosen by a method involving an unpredictable component. Random

sampling can also refer to taking a number of independent observations from the same

probability distribution, without involving any real population. The sample usually is not a

representative of the population from which it was drawn— this random variation in the results

is known as sampling error.

A simple random sample is selected so that all samples of the same size have an equal

chance of being selected from the population.

A self-weighting sample, also known as an EPSEM (Equal Probability of Selection

Method) sample, is one in which every individual, or object, in the population of interest

has an equal opportunity of being selected for the sample. Simple random samples are

self-weighting.

Stratified sampling involves selecting independent samples from a number of

subpopulations, group or strata within the population. Great gains in efficiency are

sometimes possible from judicious stratification.

Cluster sampling involves selecting the sample units in groups. For example, a sample

of telephone calls may be collected by first taking a collection of telephone lines and

collecting all the calls on the sampled lines. The analysis of cluster samples must take

into account the intra-cluster correlation which reflects the fact that units in the same

cluster are likely to be more similar than two units picked at random.

(Here I have chosen simple random sample method for collecting the data)

Sample Size

We have collected 50 samples from the population of different- different area of Hyderabad and

from our friend.

Data Analysis and Interpretation

Q-1 Do you like purchasing or buying at the shopping malls

Yes No

Respondents 42 8

84%

16%

Purchasing or Buying at the Shopping Malls

YesNo

Interpretation - The above chart shows that the 84% of people like to purchase in

shopping malls.

Q-2 How many time you visiting at shopping malls in a month?

2 time 4 time 6 time 10 time

Respondents 16 10 11 13

32%

20%

22%

26%

Visiting at Shopping Malls

2 time4 time6 time10 time

Interpretation - The above chart shows that the 32% peoples visit only 2 times in

a months, 26% peoples visit 4 times in a month, 22% people visit 6 times in month,

and 20% people visit 10 times in months.

Q-3 Do you like the pattern of the selling product at shopping malls?

Yes No

Respondents 39 11

78%

22%

Pattern of the Selling Product

YesNo

Interpretation - The above chart shows that the 78% people like the selling

pattern if shopping malls and 22% people, they don’t like the selling pattern of

shopping malls.

Q-4 Do you feel any type of differences between shopping malls & general store?

Yes No

Respondents 42 8

84%

16%

Differences Between Shopping Malls & General Store

YesNo

Interpretation - The above chart shows that the 84% people feel difference the

difference between shopping mall and general store.

Q-5 Did you get confuse at the time of product searching in malls?

Yes No

Respondents 13 37

26%

74%

Confuse At The Time Of Product Searching

YesNo

Interpretation – The above chart shows that the 74% people do not get any

confusion at the time of product searching in shopping mall.

Q-6 How much you satisfy with their rang and product price?

Satisfy Highly satisfy Unsatisfied Highly unsatisfied

Respondents 29 12 9 0

58%24%

18%

Rang And Product Price

SatisfyHighly satisfyUnsatisfiedHighly unsatisfied

Interpretation - The above data shows that the 58% peoples are satisfied with the

product range and product price at shopping mall.

Q-7 Do you like purchasing product at the offer time only?

Yes No

Respondents 15 35

30%

70%

Purchasing Product At The Offer Time Only

YesNo

Interpretation - The above chart shows that the 30% peoples, they like to buy the

product at offer time only.

Q-8 Are you satisfy with shopping malls facilities?

Yes No

Respondents 41 9

82%

18%

Shopping Malls Facilities

YesNo

Interpretation – The above chart shows that the 82% peoples are satisfied with

the facilities of shopping mall.

Q-9 Do you face any problem at the payment counter?

Yes No

Respondents 24 26

48%

52%

Problem At The Payment Counter

YesNo

Interpretation – The above chart shows that the 48% peoples face such problem

and 52% people , they don’t face any problem on the payment counter.

Q-10 Are you satisfy with their parking facilities?

Yes No

Respondents 26 24

52%

48%

Parking Facilities

YesNo

Interpretation – The above chart shows that the 52% people are satisfied and 48%

are not satisfied with their parking facilities.

Q-11 How much will you rate the parking facilities at shopping malls out of 10?

1 2 3 4 5 6 7 8 9 10

Respondent

s

0 0 4 7 8 6 7 13 5 0

4

7

8

67

13

5

Rate The Parking Facilities

3456789

Interpretation – The above chart and data shows the rate of parking facilities in

out of 10, here 13 peoples are rating 8 out of 10 for the parking facilities in sopping

mall.

Q-12 How much you rate the employee behavior in shopping malls out of 10?

1 2 3 4 5 6 7 8 9 10

Respondent

s

0 0 3 5 10 5 7 14 6 0

3

4

10

57

14

6

Employee Behavior

3456789

Interpretation - The above chart and data shows the rate of employee behavior in

out of 10, here 14 peoples are rating 8 out of 10 for the employee behavior in

shopping mall.

Q-13 Do you feel the product arrangements are good in shopping malls?

Yes No

Respondents 45 5

90%

10%

Product Arrangements

YesNo

Interpretation – The above chart shows that the 90% people feel good with the

product arrangement in shopping mall.

Q-14 How much you will rate the product quality in shopping malls out of 10?

1 2 3 4 5 6 7 8 9 10

Respondent

s

0 0 0 0 7 9 14 12 5 3

7

9

14

12

5

3

Rate The Product Quality

5678910

Interpretation - The above chart and data shows the rate of product quality in out

of 10, here 13 peoples are rating 8 out of 10 for the product quality in shopping

mall

Q-15Are you always finding shopping malls which is located at the good location?

Yes No

Respondents 34 16

68%

32%

Shopping Malls Location

YesNo

Interpretation - The above chart shows that 68% people want to be a shopping

mall in good location.

Q-16 Did you purchase every daily use product from shopping malls only?

Yes No

Respondents 20 30

40%

60%

Daily Use Product From Shopping Malls

YesNo

Interpretation – The above data shows that the 60% peoples like to buy the daily

product at shopping mall.

Findings

It has been observe here most of the people like to buy at shopping malls and their

percentage of visiting to shopping malls is also high means peoples are ready to accept

shopping malls pattern.

We also observe that consumers are happy with selling pattern of shopping malls. And

consumers are feel that there many type of differences between shopping malls & general

store.

Consumers are very much satisfied with rang and price of product and they are not

buying goods at offer time only they use to buy regular basis.

It is also observe that most of people happy with shopping malls facilities (payment

system, parking facilities) and customers are also happy with employee behavior at

shopping malls.

We also observe that shopping malls are catching more number of customer rather than

general stores that’s why small shop keeper are not happy with shopping malls and super

market.

Recommendations

Small retailers need protection and policy support in order to compete with organized

Retail what is required is a more comprehensive policy, which addresses the needs of

small retailers, especially in terms of access to institutional credit and knows how to

upgrade their businesses.

At the shopping malls there should be some improvement in parking facility because

most of the customers are facing big problem with parking.

In addition, the Government should also abandon the moves to permit FDI in retail trade

through the back door, as in the case of the joint venture between Wal-Mart and Bharti

whereby the former proposes to operate in the cash-and-carry segment while the latter in

the front-end.

A system of licensing should be introduced for organized retail. Any retail outlet with

floor area over an appropriate minimum floor area should require prior license from local

authorities (city corporations or municipalities). Corporate entities should not be allowed

to operate retail outlets below the specified minimum floor area

Conclusion

After looking at the above data we have come to a conclusion that presently there is a trend of

considerable increase of shopping malls in all the metro cities, small towns and a large section of

middle class, upper middle class people are coming for shopping because of the following

reasons:

Customer’s convenience for shopping Items from food to clothing, grocery to electronics

is available under one roof.

Better environment and improved customer service.

Competitive price with seasonal discount various gift scheme.

Various options to the customer for choosing brand and variety.

Ample scope of promoting sales and enhance brand image.

Availability of parking space for their car

Scope of employment at local area for various segments.

Bibliography

http://www.amazon.com/gp/richpub/syltguides/fullview/R25NB8OBISEFAF

http://www.answers.com/topic/shopping-mall

http://www.highbeam.com/doc/1G1-19781285.html

http://ideas.repec.org/p/ega/wpaper/200805.html

http://www.malls.com/news/2009/07/14/malls-see-change-in-consumer-behavior/

http://jobfunctions.bnet.com/abstract.aspx?docid=314786

http://www.highbeam.com/doc/1G1-159775582.html

http://www.thehindubusinessline.com/catalyst/2004/01/08/stories/2004010800090300.htm

Questionnaire

Q -1 Do you like purchasing or buying at the shopping malls?

a) Yes b) No

Q-2 How many time you visiting at shopping malls in a month?

a) 2 time b) 4 time c) 6time d)10 time e) ______

Q-3 Do you like the pattern of the selling product at shopping malls?

a) Yes b) No

Q-4 Do you feel any type of differences between shopping malls & general store?

a) Yes b) No

Q-5 Did you get confuse at the time of product searching in malls?

a) Yes b) No

Q-6 How much you satisfy with their rang and product price?

a) Satisfy b) highly satisfy c) unsatisfied d) highly unsatisfied

Q-7 Do you like purchasing product at the offer time only?

a) Yes b) No

Q-8 Are you satisfy with shopping malls facilities?

a) Yes b) No

Q-9 Do you face any problem at the payment counter?

a) Yes b) No

Q-10 Are you satisfy with their parking facilities?

a) Yes b) No

Q-11 How much will you rate the parking facilities at shopping malls out of 10?

1 2 3 4 5 6 7 8 9 10

Q-12 How much you rate the employee behavior in shopping malls out of 10?

1 2 3 4 5 6 7 8 9 10

Q-13 Do you feel the product Arrangements is good in shopping malls?

a) Yes b) No

Q-14 How much you will rate the product quality in shopping malls out of 10?

1 2 3 4 5 6 7 8 9 10

Q-15Are you always finding shopping malls which is located at the good location?

a) Yes b) No

Q-16 Did you purchase every daily use product from shopping malls only?

a) Yes b) No