Segmented by Purpose Sponsors message … 2014.pdfSponsors message Shoppertunities: ... Deal...
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Sponsors message Shoppertunities: what people say and what they do SPECIALISTS IN MALL MEDIA, ACTIVATIONS, DIGITAL, MARKETING AND NON-GLA REVENUE MANAGEMENT www.primedia-unlimited.co.za GIBS, with a generous sponsorship from Primedia’s Mall Division, conducted research into shopper behaviour across seven major malls in Gauteng, KZN and the Western Cape. AC Nielsen did the fieldwork and the study itself was designed by GIBS senior lecturer Kerry Chipp and Dr Clive Corder. The study covered 4200 shoppers who collectively spent R1.1 million over a two week period in November. We sampled across days – from Monday to Sunday and across time of day. The sample data were weighted to reflect catchment area. The interview itself was a mall intercept interview which occurred twice – once on entry to the mall and again on exit. This gave us the opportunity to ask shoppers why they came to the mall and what they intended on doing and later to compare this to what they actually did, as reported on exit. Shopper Profiles Our shopper profile revealed that 60% were under the age of 35, most (64%) were women and half (51%) were weekly shoppers. We found that 75% of these visits result in purchases and of these purchases 40% were unintended. This also means that nearly a quarter (24%) did not purchase at all. These individuals either did not find the clothing they were after (30%), visited a bank (24%) or paid their accounts (9%). 37640 visits were made to different categories; of these 12794 were unplanned - which means 33% of visits were not planned at the outset of the trip. Mall Experience Super regional malls are about the experience and are rated higher in most qualities for a mall (from navigation to comfort) and they appreciate excitement that the mall provides as a third place. The regional malls are more functional and facilitate key transactions in people’s lives, such as banking and food. These malls should make the shopper experience about ease of navigation and build on marketing events to add excitement. Super-regionals should aim at a complete experience with a wide range of activities. They are the places to meet and greet friends and family. The Western Cape shoppers are more likely to view the mall as a means to an end rather than an end in itself; it is far less of a source of activity and entertainment. Pretoria patrons see the mall as a destination, spending a lot of time but less money on the premises. The remainder of Gauteng are also likely to see the mall as a third place, a good venue for many out of home activities while KZN see the mall as an outing. Many in KZN travel large distances to the super-regional malls. Anchor Tenants The big anchor tenants of department stores (stores with a mix of food, household ware and clothing), clothing stores and food remain large drawcards. These store types also benefit greatly from traffic from the smaller categories. It is rare for a shopper who has entered the mall for a small category, such as medical, to only patronise that sector. Small categories generate a lot of opportunistic spend for the large ones. Attitudes to Shopping We asked our shoppers about their attitudes to shopping, brands and credit. We found that there is still an appetite for credit, a large belief in brands both for status and to minimise risk (as they trust them) and the perception that shopping is an enjoyable experience. Forty five percent of the sample reported that they were responding to a special promotion when they found themselves visiting a category that they had not intended to visit that day. A further 31% attributed their visits to advertising. All of these attitudes and behaviour coexist with a strong assertion that many believe they are cautious shoppers. These two concurrent attitudes place South African shoppers as deal prone. Deal proneness is a concept from consumer behaviour that finds people responding to deals, without probing the actual value presented in the deal itself. It would be interesting to see if this attitude holds if household budgets become constrained. If belts tighten, we could see a move to shoppers being “value conscious” where deals are interrogated at greater length. Primedia Unlimited Mall Division and GIBS uncover shopping mall gold We at Primedia Unlimited’s Mall Division are incredibly proud and pleased to have had the opportunity to support GIBS (Gordon Institute of Business Science) in this research project. We also express our thanks to research specialists Nielsen who expertly completed the fieldwork. We have seen how interest and commitment to the mall space in SA has grown over the years, and our sponsorship of this survey gives credence to this interest. The Primedia Unlimited Mall Division is excited about the project as it proves the immense value in the mall node. It shows that there is immense potential for brands, retailers and mall owners wanting to speak to consumers at a critical phase of the purchase funnel, in the last retail mile. The aim of this shopping mall survey has been to ascertain what affects shopper behav- iour and to see if mall shoppers deviated from planned behaviour; and if so, what prompted this change. The survey clearly shows that shopper behaviour can and does change en route to the till and marketers and advertisers can make use of this strategic opportunity. By being involved in this research we hope to contribute towards a better understanding of what influences consumer behaviour. The research has also revealed that consumers are open to suggestion within the mall space which offers advertisers and retailers a strategic advantage in capturing the shopper’s attention. Thank you for taking the time to attend our presentation. We look forward to unpacking the results with you in more detail. Molefi Moloantoa CEO: Primedia Unlimited Mall Division SHOPPERTUNITIES A CLOSER LOOK AT MALL SHOPPER BEHAVIOUR, THEIR INTENDED AND ACTUAL BEHAVIOUR, AND THE FACTORS WHICH INFLUENCE THEM IN THE LAST RETAIL MILE. SOUTH AFRICAN MALL SHOPPER BEHAVIOUR STUDY 2014 Segmented by Purpose The segmentation which was performed on purpose of the visit found a set of “Business Users”, “Leisure Shoppers”, “The General Shop”, “Purposeful/Goal Directed”, “Taking a break”. • Business users make the most of being in the mall. We hypothesise that these individuals are time pressed, so are rarely afforded the opportunity to shop and do so when they can. Not surprisingly this group is the most active online, particularly with international online stores such as Amazon. They do spend more which could be due to their lack of price sensitivity as they are time rather than income pressed. • Leisure shoppers (socialisers on the main) see the mall as a third place and therefore a destination. They spend the longest time and are responsive to in-mall advertising and activations. Generally younger, they have less money and spend less. They seek newness in the mall and malls with more activities attract more of these shoppers. • The General Shoppers come less often, travel far (more than 20 minutes) and are not there for entertainment or socialising. They are the least likely to shop online and the most likely to buy. They spend a lot of time in the mall and are open to marketing activities and messages in the mall. • The Goal Directed have a main purpose for being in the mall and so visit less often and spend less time in the mall. They do have unintended purchases and they do notice advertisements. • Taking a break: these shoppers are the least likely to have children with them, enjoy buying items which are on special and will get involved in mall marketing events. They often buy clothing which was unintended. In-Mall Advertising Does our marketing spend work? Only 4% of shoppers who travel from 5 minutes away come for a deal and half of this (2%) travel 20 minutes for a deal, which means that communication of deals needs to be “just in time” and capitalise on shopper presence in the mall. We can make use of this through in mall advertising, events and activities, as we found that 36% of spend was explained by these things. But we did not stop there. We looked at the reported sighting of in mall advertising in all its forms and found that the larger and more captured – that is hanging banners, escalator branding and lift banners – were associated with more unplanned visits to categories than those who saw none of these, as did demonstrations, marketing events and promotions. Of those shoppers who bought something they did not intend, 69% reported seeing in-mall advertising and 68% entered a promotion.. Social Media Are we missing a trick? If all these in-mall advertising and activities work, we can also build on this further through location based advertising on mobile, WiFi and social media which is sensitive to shopper location. New media did not fare as well for our malls. Very few are making use of this channel, which is compounded by limited store activity, as 85% of the sample reported that stores are not active on social media at all. We must stress that it is the location that is important. Receiving an SMS from your local store is far more effective when the store is in close proximity. Of the 4% of the sample who were active on social media, Twitter was found to be very prominent among those who reported that they purchased something they did not intend to purchase. Summary To reflect, therefore, shoppers say they are cautious shoppers but they respond well to promotions, in-mall activity and special deals. They say that advertising impacts them but few report responding to an outside offer. They do, therefore, respond to offers in front of them – there is a lot of opportunistic purchasing in conjunction with in-mall marketing events. Location based advertising is underutilised in terms of new media. We have five major shopper groups based on reason for visit. Two of these groups are purpose driven, the Business Shopper and the Goal Directed; two are relaxation driven, the Leisure Shopper and the Take a Break and the final group are the General Shoppers who are the most resistant to new media channels. They are drawn by department stores, clothing and food stores but also make the most of being in the mall for less frequent categories by visiting the larger anchor tenants as well. Super regional malls are about the experience while regional malls are about facilitating necessary transactions. Kerry Chipp Senior Lecturer Gordon Institute of Business Science
Transcript of Segmented by Purpose Sponsors message … 2014.pdfSponsors message Shoppertunities: ... Deal...
Sponsors message Shoppertunities: what people sayand what they do
SPECIALISTS IN MALL MEDIA, ACTIVATIONS, DIGITAL, MARKETING AND NON-GLA REVENUE MANAGEMENT
www.primedia-unlimited.co.za
GIBS, with a generous sponsorship from Primedia’s Mall Division, conducted research into shopper behaviour across seven major malls in Gauteng, KZN and the Western Cape. AC Nielsen did the fieldwork and the study itself was designed by GIBS senior lecturer Kerry Chipp and Dr Clive Corder. The study covered 4200 shoppers who collectively spent R1.1 million over a two week period in November. We sampled across days – from Monday to Sunday and across time of day. The sample data were weighted to reflect catchment area. The interview itself was a mall intercept interview which occurred twice – once on entry to the mall and again on exit. This gave us the opportunity to ask shoppers why they came to the mall and what they intended on doing and later to compare this to what they actually did, as reported on exit.
Shopper Profiles
Our shopper profile revealed that 60% were under the age of 35, most (64%) were women and half (51%) were weekly shoppers. We found that 75% of these visits result in purchases and of these purchases 40% were unintended. This also means that nearly a quarter (24%) did not purchase at all. These individuals either did not find the clothing they were after (30%), visited a bank (24%) or paid their accounts (9%). 37640 visits were made to different categories; of these 12794 were unplanned - which means 33% of visits were not planned at the outset of the trip.
Mall Experience
Super regional malls are about the experience and are rated higher in most qualities for a mall (from navigation to comfort) and they appreciate excitement that the mall provides as a third place. The regional malls are more functional and facilitate key transactions in people’s lives, such as banking and food. These malls should make the shopper experience about ease of navigation and build on marketing events to add excitement. Super-regionals should aim at a complete experience with a wide range of activities. They are the places to meet and greet friends and family. The Western Cape shoppers are more likely to view the mall as a means to an end rather than an end in itself; it is far less of a source of activity and entertainment. Pretoria patrons see the mall as a destination, spending a lot of time but less money on the premises. The remainder of Gauteng are also likely to see the mall as a third place, a good venue for many out of home activities while KZN see the mall as an outing. Many in KZN travel large distances to the super-regional malls.
Anchor Tenants
The big anchor tenants of department stores (stores with a mix of food, household ware and clothing), clothing stores and food remain large drawcards. These store types also benefit greatly from traffic from the smaller categories. It is rare for a shopper who has entered the mall for a small category, such as medical, to only patronise that sector. Small categories generate a lot of opportunistic spend for the large ones.
Attitudes to Shopping
We asked our shoppers about their attitudes to shopping, brands and credit. We found that there is still an appetite for credit, a large belief in brands both for status and to minimise risk (as they trust them) and the perception that shopping is an enjoyable experience. Forty five percent of the sample reported that they were responding to a special promotion when they found themselves visiting a category that they had not intended to visit that day. A further 31% attributed their visits to advertising. All of these attitudes and behaviour coexist with a strong assertion that many believe they are cautious shoppers. These two concurrent attitudes place South African shoppers as deal prone. Deal proneness is a concept from consumer behaviour that finds people responding to deals, without probing the actual value presented in the deal itself. It would be interesting to see if this attitude holds if household budgets become constrained. If belts tighten, we could see a move to shoppers being “value conscious” where deals are interrogated at greater length.
Primedia Unlimited Mall Division and GIBS uncover shopping mall gold
We at Primedia Unlimited’s Mall Division are incredibly proud and pleased to have had the opportunity to support GIBS (Gordon Institute of Business Science) in this research project. We also express our thanks to research specialists Nielsen who expertly completed the fieldwork.
We have seen how interest and commitment to the mall space in SA has grown over the years, and our sponsorship of this survey gives credence to this interest.
The Primedia Unlimited Mall Division is excited about the project as it proves the immense value in the mall node. It shows that there is immense potential for brands, retailers and mall owners wanting to speak to consumers at a critical phase of the purchase funnel, in the last retail mile.
The aim of this shopping mall survey has been to ascertain what affects shopper behav-iour and to see if mall shoppers deviated from planned behaviour; and if so, what prompted this change.
The survey clearly shows that shopper behaviour can and does change en route to the till and marketers and advertisers can make use of this strategic opportunity. By being involved in this research we hope to contribute towards a better understanding of what influences consumer behaviour.
The research has also revealed that consumers are open to suggestion within the mall space which offers advertisers and retailers a strategic advantage in capturing the shopper’s attention.
Thank you for taking the time to attend our presentation. We look forward to unpacking the results with you in more detail.
Molefi MoloantoaCEO: Primedia Unlimited Mall Division
SHOPPERTUNITIES
A CLOSER LOOK AT MALL SHOPPER BEHAVIOUR, THEIR INTENDED AND ACTUAL BEHAVIOUR, AND THE FACTORS WHICH INFLUENCE THEM IN THE LAST RETAIL MILE.
SOUTH AFRICAN MALL SHOPPER BEHAVIOUR STUDY 2014
Segmented by Purpose
The segmentation which was performed on purpose of the visit found a set of “Business Users”, “Leisure Shoppers”, “The General Shop”, “Purposeful/Goal Directed”, “Taking a break”.
• Business users make the most of being in the mall. We hypothesise that these individuals are time pressed, so are rarely afforded the opportunity to shop and do so when they can. Not surprisingly this group is the most active online, particularly with international online stores such as Amazon. They do spend more which could be due to their lack of price sensitivity as they are time rather than income pressed.
• Leisure shoppers (socialisers on the main) see the mall as a third place and therefore a destination. They spend the longest time and are responsive to in-mall advertising and activations. Generally younger, they have less money and spend less. They seek newness in the mall and malls with more activities attract more of these shoppers.
• The General Shoppers come less often, travel far (more than 20 minutes) and are not there for entertainment or socialising. They are the least likely to shop online and the most likely to buy. They spend a lot of time in the mall and are open to marketing activities and messages in the mall.
• The Goal Directed have a main purpose for being in the mall and so visit less often and spend less time in the mall. They do have unintended purchases and they do notice advertisements.
• Taking a break: these shoppers are the least likely to have children with them, enjoy buying items which are on special and will get involved in mall marketing events. They often buy clothing which was unintended.
In-Mall Advertising
Does our marketing spend work? Only 4% of shoppers who travel from 5 minutes away come for a deal and half of this (2%) travel 20 minutes for a deal, which means that communication of deals needs to be “just in time” and capitalise on shopper presence in the mall. We can make use of this through in mall advertising, events and activities, as we found that 36% of spend was explained by these things. But we did not stop there. We looked at the reported sighting of in mall advertising in all its forms and found that the larger and more captured – that is hanging banners, escalator branding and lift banners – were associated with more unplanned visits to categories than those who saw none of these, as did demonstrations, marketing events and promotions. Of those shoppers who bought something they did not intend, 69% reported seeing in-mall advertising and 68% entered a promotion..
Social Media
Are we missing a trick? If all these in-mall advertising and activities work, we can also build on this further through location based advertising on mobile, WiFi and social media which is sensitive to shopper location. New media did not fare as well for our malls. Very few are making use of this channel, which is compounded by limited store activity, as 85% of the sample reported that stores are not active on social media at all. We must stress that it is the location that is important. Receiving an SMS from your local store is far more effective when the store is in close proximity. Of the 4% of the sample who were active on social media, Twitter was found to be very prominent among those who reported that they purchased something they did not intend to purchase.
Summary
To reflect, therefore, shoppers say they are cautious shoppers but they respond well to promotions, in-mall activity and special deals. They say that advertising impacts them but few report responding to an outside offer. They do, therefore, respond to offers in front of them – there is a lot of opportunistic purchasing in conjunction with in-mall marketing events. Location based advertising is underutilised in terms of new media. We have five major shopper groups based on reason for visit. Two of these groups are purpose driven, the Business Shopper and the Goal Directed; two are relaxation driven, the Leisure Shopper and the Take a Break and the final group are the General Shoppers who are the most resistant to new media channels. They are drawn by department stores, clothing and food stores but also make the most of being in the mall for less frequent categories by visiting the larger anchor tenants as well. Super regional malls are about the experience while regional malls are about facilitating necessary transactions.
Kerry ChippSenior LecturerGordon Institute of Business Science
