STRATEGIES FOR SHOPPING MALL LOYALTY

THESIS SUMMARY

FOR THE DEGREE OF

DOCTORATE OF PHILOSOPHY (Ph.D)

IN

MANAGEMENT

Submitted to:

MAHARISHI MARKANDESHWAR UNIVERSITY

MULLANA-AMBALA

(2013)

Under the Supervision of: Submitted By:

DR. ANIL CHANDHOK MONIKA GUPTA

Professor, MMIM Univ. Regn. No.: 09-Ph.D-116

M. M. INSTITUTE OF MANAGEMENT

MAHARISHI MARKANDESHWAR UNIVERSITY

MULLANA-AMBALA – 133207 (HARYANA) INDIA

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INTRODUCTION

India has been ranked as the most attractive nation for retail investment among 30

emerging markets (GRDI, 2010). The Indian retail sector is booming and mall growth

is being seen as a clear indicator of the economic prosperity in the nation. These

shopping-cum-entertainment destinations are getting bigger and better and attracting

shoppers mainly with sporting multiplexes and food courts. Dominant retail activity is

visible in the top cities but tier II and III cities are also witnessing change. The malls

with multiplexes are catering to India‟s biggest USP, its youthful population who is

seeking increase in leisure and entertainment facilities and that too at the rate of

14% p.a. as per India Retail Report (2009).

A shopping mall for the purpose of study has been defined as mall typically enclosed

with a climate-controlled walkway between two facing strips of stores (Das, 2009).

1.1 IDENTIFICATION OF RESEARCH PROBLEM

In the markets like Delhi and NCR, where there is no shortage of quality shopping

and long distances can be easily travelled via Metro, shopping mall developers need

to think something different and fast. There is still untapped opportunity in Delhi

and NCR, and if planned properly and in the right direction, it would be fruitful to

all stake holders. So, the question rises, "What strategies should be devised and

implemented by mall operators for the success of shopping malls?"

1.1.1 RESEARCH QUESTIONS

The research questions posed in this study were:

“To identify how various shopping malls attributes rate on shoppers‟ evaluation in

shopping mall selection”.

“To determine how to categorize various shopping malls based on customer

perceptions”.

“To know how to profile various shopping mall customers based on demographics

and behavioural variables”.

“To understand how to propose strategies for creating shopping mall loyalty”.

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1.1.2 PROBLEM STATEMENT

The overall picture of a broader context of shopping behaviour of customers helps

in understanding the current position of existing malls and in determining the need

gaps not met by such malls. The study undertaken could help a mall to fill up the

gap, first among its competitors, by defining “How to propose strategies for creating

shopping mall loyalty by identifying relevant shopping mall attributes in mall

selection, assessing underlying customer perceptions leading to categorization of

various shopping malls and profiling shopping mall customers based on

demographics and behavioural variables?”

1.2 SIGNIFICANCE OF THE STUDY

The study focused on determining latest mall trends in India, the fundamentals of

good shopping centre investment, top challenges for mall managers in Asia, need

for mall managers to focus on running properties in perfect condition & operating

using best practices & international standards, all activities in mall management to

be directed at enhancing the guest experience & increasing the value of the centre

through strong merchandising and great marketing (McArthur, 2011) for owners,

mall managers, investors, tenants, customers, government, statutory organizations,

researchers, academicians and doctoral students and other stakeholders viz. media

partners, event sponsors, outdoor advertisers, kiosk owners and others.

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1.3 OBJECTIVES

The study was focused on objectives mentioned below:

1. To identify shopping mall attributes in mall selection.

2. To categorize various shopping malls according to customer perceptions.

3. To profile shopping mall customers on the basis of demographics and

behavioural variables.

4. To propose strategies for creating shopping mall loyalty.

1.4 HYPOTHESES

The study considered following hypotheses for the achievement of objectives:

1-Ho: Different shopping mall attributes have different importance as perceived by

customers.

2-Ho: Categorizing shopping malls on the basis of customer perceptions is different

from the traditional classification based on location.

3-Ho: It is possible to profile various customers visiting shopping malls on the basis

of demographics and behavioural variables.

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REVIEW OF LITERATURE

The literature reviewed was based on the research work conducted by renowned

researchers all over the world and published in journals of repute in context with

shopping mall attributes, mall marketing mix, mall classification, mall shopper

typologies, mall image and relationship with mall loyalty.

Table 2.2 Shopping Mall Classification

S. No. Author Year Shopping Mall Classification

1 Jarboe and

McDaniel

1987 anchor stores, specialty stores or mall attractions

2 Doherty 1991 Super-regional and regional malls; Community and

neighborhood shopping centers; Other areas of high retail

traffic

3 Stoltman et

al.

1991 A mall, the downtown area (a four-square block mixed-use

development), and the largest shopping plaza in market.

4 Barnes 1998 Northeast Manufacturers' outlet center and a traditional

suburban mall nearby anchored by Sears and J.C. Penny

5 Guy 1998 unplanned „retail areas‟ and planned „shopping centres‟

6 Dennis et al. 2002 Large, out-of-town, regional; In-town, regional; In-town, sub-

regional

7 Anselmsson 2006 shopping centres - out-of town regional centres, intown

regional centres, in-town sub-regional centre, intown

neighbourhood-centre

8 Ertekin et al. 2008 malls from the inner and peripheral zones

9 Teller et al. 2008 created agglomerations, such as shopping centres and malls,

and evolved agglomerations, such as shopping streets

10 Carter 2009 four main types of shopping centers: neighborhood,

community, regional, and super-regional

11 Johnson and

Raveendran

2009 Departmental Stores, Shopping Centres, Shopping Malls

12 Rajagopal 2009 malls, congestion of markets, traditional shopping centres

13 Rosiers et al. 2009 regional and super-regional shopping centers

14 Sannapu and

Singh

2012 Malls with no clear positioning; Malls with distinctive

positioning

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Table 2.3 Mall Shopper Typologies

S.

No.

Author Year Mall Shopper Typologies

1 Bellenger et al. 1977 Convenience (Economic) Shopper, Recreational

Shopper

2 Jarboe and

McDaniel

1987 Economic Shoppers, Recreational Shoppers

3 Bloch et al. 1994 Mall Enthusiasts, Traditionalists, Grazers,

Minimalists

4 Barnes 1998 Traditional mall shoppers vs. Manufacturer's

Outlet shoppers

5 Wakefield and

Baker

1998 Out-of-Town Vs. Local Shoppers

6 LeHew et al. 2002 Loyal vs Non-Loyal Mall Shoppers

7 Adiwijaya 2007 Rationale and Satisfier

8 Chebat et al. 2008 Teenagers, Adult Customers

9 Kuruvilla and

Ranjan

2008 Male Shoppers, Female Shoppers

10 Patel and Sharma 2009 Utilitarian, Hedonic

LIMITATIONS OF THE STUDY

The respondents included shoppers who were 18 years or above, as shoppers below 18

years might exhibit different behaviour in selecting the mall. The study covered only

the shoppers visiting specified shopping malls in actual, as the shoppers preferring

online shopping might behave differently. The study was conducted in selected malls in

Delhi and National Capital Region (NCR). The shopper‟s perception and attitude might

vary in other regions.

LITERATURE REVIEW ANALYSIS (Indications for Further Research)

The review of the literature indicated that the successful malls of the future might offer

dental offices, full service banks, might help to explore other potential contributors to

mall excitement, including temporal effects, such as those associated with special

promotions and shows, classifications might be based upon physical development

characteristics and type of shopping trip, might be focused on effect of various formats

of malls on consumer‟s decision making styles, and might also reveal the impact of

price and value attributes on mall loyalty patronage.

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RESEARCH METHODOGY

3.1 Universe of the Study

All adult male and female shoppers (above 18 years) residing in Delhi and NCR

3.1.1 Survey (Target) Population: All adult shoppers (above 18 years of age) visiting

shopping malls in Delhi and NCR

3.2 Data Collection

Data was collected using both primary and secondary data collection methods

3.2.1 Primary method: Data was collected from mall shoppers via mall intercept survey

and the research technique used was survey research method via a structured

questionnaire

3.2.2 Secondary method: Some of the data collected was also based on available

information published in newspapers and industry journals, or that released by

retail companies or shopping centre developers themselves via internet

3.3 Sample Selection

Sampling may be defined as the selection of some part of an aggregate or totality on

the basis of which a judgment or inference about an aggregate or totality is made

3.3.1 Sampling Unit: customers visiting selected shopping malls in Delhi & NCR

3.3.2 Sampling Size: 400 respondents constituted sample covering seven main malls

3.3.3 Sampling Design: Non-Probability Convenience Sampling and only adult

individual customers who shop in malls were contacted

3.4 The Area Covered for conducting the study included Delhi and NCR

3.5 Instrument Development

3.5.1 Measures: The instrument was designed using scales and shopping mall attributes

from previous research. The survey included questions related to respondent‟s

demographics and shopping behaviour, 18 items measuring shopping motivations

and 20 items evaluating shopping mall attributes. The shopping mall attributes

categorized in terms of either the 4P‟s framework or 7P‟s framework is

collectively termed as the „Shopping Mall Marketing Mix‟.

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3.5.2 Shopping Motivation Measurement Scale was developed by Arnold and

Reynolds (2003). The scales comprises 18 items to measure six different

motivations viz. adventure shopping, gratification shopping, role shopping, value

shopping, social shopping, and idea shopping. To measure response to each item

on scale, Five-point Likert Scale ranging from „Strongly Agree‟ (5 points) to

„Strongly Disagree‟ (1 point) was used. The scale was also used by Patel and

Sharma (2009), Jamal et al. (2006) and others.

Description of Sample

In summary, the typical sample respondent profile could be described as follows

(Table 3.4):

The mall shoppers included in the sample were mainly students in the young-age

group (18-27 years). They were typically undergraduates either studying or in

jobs and had monthly household incomes between INR 25,000 to 35,000.

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DATA COLLECTION, INTERPRETATION AND

ANALYSIS

In this section, the results of the research were presented in accordance with the

objectives and hypothesis of the study.

1-Ho. Different shopping mall attributes have different importance as perceived by

customers:

First objective of the study was met by testing the first hypothesis by subjecting the

ratings of the shopping mall attributes (by respondents) to Factor Analysis based on the

Principal Component Analysis (PCA) method via SPSS 12.0 version. Factor Analysis

was used in the research to summarize the variables by examining correlation between

them, and to create an entirely new set of variables replacing the original one‟s i.e. factors

summarizing the original information into factors for prediction.

Factor Analysis of Shopping Mall Attributes

Items related to mall attributes (included in questionnaire) were identified (based on

discussions with academicians, students and professionals of retailing). To measure the

questions on the scale, respondents were asked to rate the importance of mall attributes

in mall selection on a 5-point Likert scale of importance, with 5 being extremely

important and 1 being extremely unimportant. 20 shopping mall attributes were factor

analyzed to produce several factors. Statistical significance was set (if not stated

otherwise) at a level of 0.05 (for all analysis). To test the suitability of Factor Analysis

(for the research), the KMO score was found to be above .50 (.807) and the Bartlett‟s

test was also observed to be significant ( 2 = 8315.399, df = 190). Varimax Rotation

Method was used for the purpose. Rotation converged in four iterations.

Only those factors were retained, which had latent roots or Eigen value more than 1,

since these were considered significant. A total of 5 factors accounted for 80% of the total

variance, much more than the desired level of 60% of the total variance (Malhotra 2009).

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Table 4.5 Shopping Mall Attributes Statistics

Factors Loading Eigen

Value

% of

Variance

FACTOR 1: ONE STOP SHOP 4.704 23.518

Visual Merchandising 0.959

Atmospherics 0.974

Personnel Services 0.949

Guarantee Policies 0.954

Loyalty Cards 0.941

FACTOR 2: ENTERTAINMENT 3.686 18.431

Multiplexes 0.983

Food Courts 0.981

Games for Children 0.983

Festive Events 0.045

FACTOR 3: VALUE 2.905 14.527

Value for Money 0.982

Utility Based 0.952

Credit Terms 0.967

FACTOR 4: CONVENIENCE 2.640 13.199

Security 0.976

Parking 0.941

Proximity to Home 0.952

Shopping Hours 0.074

FACTOR 5: SPECIALTY 2.153 10.765

Full Department Store 0.649

Choice of Stores 0.758

Well Known Brands 0.848

Anchor Stores 0.786

Hence, the five-dimension solution viz. entertainment, specialty, value, one stop shop

and convenience resulted in the acceptance of first null hypothesis (1-Ho).

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2-Ho. Categorizing shopping malls on the basis of customer perceptions is different

from the traditional classification based on location and convenience

To achieve the second objective, the second hypothesis was tested using Positioning

Analysis and Perceptual Mapping Model technique via MEXL (Marketing Engineering

for Excel) Software. Selected shopping malls under study included Ambience Mall,

Gurgaon; DLF Emporio, New Delhi; The Great India Place, Noida; SRS Mall,

Faridabad; Sahara Mall, Gurgaon; Shipra Mall, Ghaziabad; and Ansal Plaza, Delhi.

Shopping mall dimensions included entertainment, specialty, value, one stop shop and

convenience. Positioning Analysis Software incorporates several mapping techniques

enabling mall owners and managers to develop differentiation and positioning strategies

for their malls. Perceptual Mapping Technique used helps mall owners and managers in

understanding underlying perceptions of customers about their shopping mall in

comparison to that of competitors.

Perceptual data comprised the number of dimensions (rows) along which the shopping

malls were compared. The generated positioning map(s) consisted of one map retaining

two dimensions (X-Y). Perceptual Map depicted a data matrix consisting of the average

perceptions of different shopping malls (i.e. choice alternatives) in a target segment. The

perceptions measures relied on select attributes of the shopping malls, and the resulting

map exhibited a visual representation, in two dimensions, of perceptions of the target

segment about all the shopping malls. The distances between malls on the map indicated

their perceived similarities. Malls that were close together were perceived as similar,

whereas those that were far apart were perceived as different. The axes of a perceptual

map indicated the aggregate dimensions (or composite attributes) along which customers

tend to discriminate shopping malls. Attributes aligned close to each axis provided clues

of the meaning of that axis.

The variance explained by each axis indicated the relative importance of that axis for

explaining customer perceptions. The variance explained by the horizontal dimension

was 29.1% and the variance explained by the vertical dimension was 41.3%.

This indicated that the vertical dimension was nearly one-and-a-half times as important in

explaining customer perceptions. The lines on a perceptual map indicated the direction in

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which an attribute kept on increasing while moving away from the origin along that line.

For example, if the „Entertainment‟ attribute used a 1-5 scale, in which 5 represented the

highest entertainment, then entertainment kept on increasing along that line and away

from the origin. The length of a line on the map indicated the variance in that attribute

explained by the perceptual map. The longer a line, the greater was the importance of that

attribute in differentiating shopping malls in the market.

Figure 4.2 Positioning Map

To position a shopping mall on any attribute on the map, an imaginary perpendicular line

could be drawn from the shopping mall to the attribute. The farther a shopping mall was

from the origin along the direction of that attribute, the higher was the rating of the

shopping mall on that attribute.

Reason for retaining two dimensions: The first two factors captured 70% of the variance

in the initial data, and adding a third factor captured only an additional 18%. Since the

third factor did not capture significantly more variance (compared with the first two),

only two dimensions (first two) were retained.

A new shopping mall categorization was discovered by research based on Positioning

Analysis and Perceptual Mapping Model. The shopping malls have been categorized as

„enjoyment-centric‟ and „value-centric‟ malls, whereas traditional classification indicated

town centre, edge of town classification based on location (Guy, 1998); malls from the

inner and peripheral zones (Ertekin et. al., 2008); convenience- household, personal/

fashion based on location trip purpose (Guy, 1998).

Hence, the two-category solution resulted in the acceptance of the null hypothesis (2-Ho).

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3-Ho. It is possible to profile various customers visiting shopping malls on the basis

of demographics and behaviour

For achieving the third objective, the third hypothesis was tested by administering the

respondents to eighteen questions measuring hedonic motivation towards shopping on a

5-point Likert scale. Statistical testing of research revealed shopping motives of

respondents towards mall shopping. Shopping Motivation Measurement Scale was

developed by Arnold and Reynolds (2003). Patel and Sharma (2009) used the fourteen

questions; Jamal et al. (2006) used fifteen questions, while Kim (2006) used all the

eighteen questions. Clustering procedure assigns a case/ respondent to only one cluster

(Malhotra and Dash 2009).

Results and Findings of the Study

SPSS 12.0 version was used for Cluster Analysis. Mean Scores indicated that the

respondents in cluster 1 were found to be less positive (mean score of 3.08) and enjoyed

shopping lesser than the respondents in cluster 2 (with a high mean score of 3.53)

indicating they viewed shopping positively. New shopping mall customer profiling was

discovered by research (based on cluster analysis). As per motives towards shopping, the

shopper types were named as Shopping Mall Shirkers and Shopping Mall Visitors.

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Mall Shopping Scenario

The first aspect chosen for profiling was shopper‟s loyalty. To check whether a

significant association exists between loyalty and shopping motives, Pearson Correlation

Coefficient was applied. The result clearly showed a significant association (positive

correlation) between shoppers‟ loyalty towards malls and their level of mall shopping

motives. This means more the shopping motivation more would be shopping mall loyalty.

Table 4.11 Shoppers’ Loyalty and Shopping Motives- Correlation Analysis

Loyalty

Shopping

Motives

Loyalty

Pearson

Correlation 1 .058

Sig. (2-tailed) . .292

N 327 327

Shopping Motives

Pearson

Correlation .058 1

Sig. (2-tailed) .292 .

N 327 327

The next stage of profiling: Demographics & shopping behavior variables

Cross Tabs and Chi-Square Tests of Mall Shoppers’ Responses

Chi-Square Test of Independence: has been administered to the cross-tabulated data

(describing two or more variables simultaneously). The statistically significant

differences were then reported.

A Pearson Chi-Square Test: A p-value less than the accepted levels of 0.05 and a high

value of the Chi-Square statistically enabled the researcher to reject the null hypothesis.

This indicated the association to be statistically significant (or not statistically significant)

at or greater than the 0.05 level of p-value (Malhotra and Dash 2009).

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Table 4.17 Income* Mall Shopper Clusters

Cluster

Total

1 2

Income 1 Count 33 12 45

Expected Count 31.6 13.4 45.0

% within

Income 73.3% 26.7% 100.0%

% within

Cluster 15.6% 13.3% 14.9%

% of Total 10.9% 4.0% 14.9%

2 Count 56 23 79

Expected Count 55.5 23.5 79.0

% within

Income 70.9% 29.1% 100.0%

% within

Cluster 26.4% 25.6% 26.2%

% of Total 18.5% 7.6% 26.2%

3 Count 78 39 117

Expected Count 82.1 34.9 117.0

% within

Income 66.7% 33.3% 100.0%

% within

Cluster 36.8% 43.3% 38.7%

% of Total 25.8% 12.9% 38.7%

4 Count 45 16 61

Expected Count 42.8 18.2 61.0

% within

Income 73.8% 26.2% 100.0%

% within

Cluster 21.2% 17.8% 20.2%

% of Total 14.9% 5.3% 20.2%

Total Count 212 90 302

Expected Count 212.0 90.0 302.0

% within

Income 70.2% 29.8% 100.0%

% within

Cluster 100.0% 100.0% 100.0%

% of Total 70.2% 29.8% 100.0%

(Income: 1-Upto INR 15,000, 2- INR 15,001 to INR 25,000, 3- INR 25,001 to

INR 35,000, 4- INR 35,001 and above;

Cluster 1: Shopping Shirkers, 2-Shopping Visitors)

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Result of Chi-Square Test: The null hypothesis cannot be rejected.

There is significant relationship between average household income and shopping

motives-based clusters (2

cal = 1.299, 2

tab =7.815, df = 3, p-value = 0.729).

Summary of Results of Chi-Square Tests of Independence on Mall Shopper Clusters

Result of Chi-Square Test: The null hypothesis could not be rejected. There was

significant relationship between demographic and behavioural variables and shopping

motives-based clusters. Segmentation profiles of the mall shopper clusters were then

obtained. Hence, the two-cluster solution resulted in the acceptance of the null hypothesis

(3-Ho).

Keeping in consideration the nomenclature of the shopping attitudes scale as well as

review of past literature, the following names were given to the new shopper typology:

Cluster 1: Mall Shopping Shirkers; and Cluster 2: Mall Shopping Visitors.

The Pearson Correlation Coefficient showed that there was a significant association

between shoppers‟ loyalty towards shopping malls and shopping attitudes.

The Chi-Square tests showed that there was a significant relationship between shopping

attitudes based clusters and some demographic and shopping behavior variables.

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MAJOR FINDINGS AND SUGGESTIONS

FOR PROPOSING STRATEGIES FOR SHOPPING MALL LOYALTY

Objective 1: To identify shopping mall attributes in mall selection

This objective was met by testing the hypothesis that „different shopping mall attributes

have different importance as perceived by customers‟. The hypothesis was tested by

subjecting the ratings of the shopping mall attributes to Factor Analysis. The following

factors emerged as a consequence of the PCA (Principal Component Analysis) (Refer

Table 5.2):

Table 5.2 Summary of Shopping Mall Factor Rankings

Rank* Factor

I Factor 2: Entertainment

II Factor 5: Specialty

III Factor 3: Value

IV Factor 1: One Stop Shop

V Factor 4: Convenience

*Ranks based on Mean Scores

Glances at the shopping mall attributes emerged from this study proved that the factors

differ in terms of their composition and importance.

Objective 2:To categorize various shopping malls according to customer perceptions

The research discovered a new shopping mall categorization based on Positioning

Analysis and Perceptual Mapping Model. The shopping malls have been categorized as

Enjoyment-centric and Value-centric Malls. The traditional classification based on

location and convenience revealed the dimensions used in retail classifications as town

centre, edge of town based on location (Guy, 1998); malls from inner and peripheral

zones (Ertekin et. al., 2008); and convenience household, personal/ fashion based on trip

purpose (Guy, 1998).

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Objective 3: To profile shopping mall customers on the basis of demographics and

behavioural variables

An important finding „shoppers‟ loyalty‟ revealed from the research for mall shopping.

The result clearly showed a significant association (positive correlation) between

shoppers‟ loyalty towards malls and their level of mall shopping motives i.e. more the

shopping motivation; more would be the shopping mall loyalty. The findings of this

research were in line with bi-polar shopping orientation concept of Hedonic and

Utilitarian shoppers, 2-cluster solutions of loyal and non-loyal mall shoppers and 2-polar

shopper types viz. convenience & recreational. The findings of this research indicated

that shoppers with a positive motivation towards shopping believed in adventure,

gratification, social and idea shopping.

Objective 4: To devise appropriate retail marketing strategies for creating shopping

mall loyalty among shoppers

To meet this objective, a retail marketing strategy has been proposed for mall managers.

The marketing strategy could be devised to create shoppers‟ loyalty i.e. to ensure repeat

and dedicated patronage. Mall manager‟s marketing activities could be designed

considering three major objectives of drawing shoppers to shopping malls, encouraging

shoppers to buy, spend and influence the type and quantity of items, motivating them for

repeat purchase, more specifically, for same product categories. The important shopping

mall attributes, which derive shopping mall loyalty, could be used in devising the right

retail mix.

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The Retail Marketing Strategy Framework

Shopping mall marketing strategies for building shopping mall loyalty among shoppers

could be designed, keeping in view mall shopper‟s clusters, at two levels viz. retail

outlet (tenant) level and shopping mall level.

Retailer Level Strategy/ Internal Strategy by Mudambi (1994)- The steps to be followed

could be: identifying the retail marketing mix, drawing elements from identified

shopping mall attributes, and classifying the retail marketing mix into

(1) Shopping Mall Enjoyment Motivators and (2) Shopping Mall Loyalty Enhancers.

This could be followed by proposing an appropriate retail format consisting of a

combination of the „shopping mall enjoyment motivators‟ and „shopping mall loyalty

enhancers‟.

Shopping Mall Level Strategy: At shopping mall level, mall managers have the three

strategic options- Vertical Strategy, Horizontal Strategy and Migrational Strategy.

Various steps to be followed (as proposed by researcher):

Step-1: Identifying the Retail Marketing Mix

Kotler et al (1999) indicated that the marketing mix is one of the key concepts in modern

marketing theory.

Important Retail Marketing Mix Elements for Mall Shopping:

1. Entertainment: Multiplexes, food courts and games for children

2. Specialty: Full department store, choice of stores, well known brands and anchor stores

3. Value: Value for money, utility based and credit terms

4. One Stop Shop: Visual merchandising, atmospherics, personnel services, guarantee

policies and loyalty cards

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5. Convenience: Security, parking and proximity to home

Step-2: Choosing the Right Retail Format for Shoppers’ Loyalty

In this study, the retail format was proposed keeping in consideration the retail marketing

mix elements/ shopping mall attributes as identified above. A brief overview of selected

shopping mall attributes was discussed, in order to interpret the findings of the research:

Entertainment, specialty, value, one stop shop, and convenience.

Step-3: Devising Suitable Retail Marketing Strategies for Mall Shoppers’ Loyalty

The first factor has mean scores above 4 (out of a maximum of 5), the second and third

factors have mean scores below 4 and above 3, and the fourth and fifth factors have mean

score below 3 and above 2. The first factor could be referred to as „Shopping Enjoyment

Motivator(s)‟ and the last four could be referred to as „Shopping Mall Loyalty

Enhancers‟. To ensure primary mall loyalty, mall managers must concentrate on

providing the „Shopping Enjoyment Motivator(s)‟ features to their customers in order to

retain them; and to differentiate from competing retailers, the „Shopping Mall Loyalty

Enhancers‟ features could be incorporated in the retail format.

A Shopping Mall Preferences Model in an Evolving Market was thus proposed.

Shopping Enjoyment Shopping Motivations

Motivators

Shopping Mall

Loyalty Enhancers

Shopping Mall Shirkers

Shopping Mall Visitors

Entertainment

Mall Shoppers’

Loyalty Specialty

Value

One Stop Shop

Convenience

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Figure 5.3 Shopping Mall Preferences in an Evolving Market

The recommendations to shopping mall managers for creating strategies for

individual factors are given below:

Shopping Mall Enjoyment Motivators:

Initially, the shoppers feel motivated to visit a shopping mall providing modes of

enjoyment. To draw their attention, the mall operators need to focus on developing

effective entertainment strategy.

1.Entertainment Strategy:

A balance between the major components viz. entertainment, food and retail space is

essential as it may influence mall selection decision of shoppers to a great extent. This

strategy may draw attention of shoppers in motivating them to make a first visit. But, in

order to encourage them to visit malls repeatedly and to retain them, mall managers

need to focus on strategies enhancing loyalty towards the mall.

Mall Shopping Loyalty Enhancers:

2. Specialty Strategy:

Based on mall image projected in society and preference of local clientele, mall

managers need to focus on having a right mix of national and international brands and

private labels etc. A well-planned and executed tenant mix can help a mall retain its

„first preference’ status even during immense competition. The tenant selection

decisions focusing anchors need to be taken carefully by mall operators.

3. Value Strategy:

The rental technique adopted by most of the mall operators (for tenants) is lease-based

whereas tenants prefer rent-based. Another could be revenue-sharing based. The

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pricing techniques used by most retailers (tenants) include cost-plus pricing,

discounting for youth, students or senior citizens. A „discount orientation‟ strategy is

suitable for low to medium stores inside malls. For mass marketers, the use of high

everyday pricing and low leader specials on items typically featured in periodic/ end of

season sale is proposed.

4. One Stop Shop Strategy:

A place wherein routine purchases besides spending quality time with family could be

made comfortably in a climate controlled environment under one roof. Exterior and

interior design of the mall, basic amenities, ambience and tenants play role in

motivating customers to spend more time, feel comfortable and stress free.

Lady employees might take care of kids and deal with customers in specific sections.

In case of defective goods, quick, hassle-free and time saving response strategy is

proposed. „No questions asked‟ policy could be adopted. Option should be there to

exchange/ return at any store across the country in case of chain stores. Services such

as „suggestive selling‟, politeness, and guidance might help in retaining the customers.

5. Convenience Strategy:

Malls can be centrally placed either in Heart of the City adjoining residential areas or

can be located in pleasant and peaceful environment, surrounded by major corporates.

Hydraulic parking could be adopted to resolve parking issues. To overcome the

problem of shrinkage, retailers are using hi-tech machines at entry and exit gate.

A mall strategy might also include zoning of tenants, mall maintenance strategy,

competitive positioning, promotion and marketing strategy for the entire mall during

festival and off seasons. Malls should have standard opening and closing times for all

tenants except entertainment and food zones.

Step-4: Proposed Retail Formats

a) Enjoyment-centric Shopping Malls: Those typically carry major components of the

dimension of entertainment consisting of multiplexes, food courts and games for

children such as The Great India Place, Noida.

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b) Value-centric Shopping Malls: The retailers‟ USP lies in reasonable pricing of the

products and services. The buyers spend keeping in view the facility to make use of

credit cards and also take into consideration discounts offered. Sahara Mall, Gurgaon,

India‟s first Brand Super Mall, has Haldiram‟s family restaurant, Big Bazaar and

Odyssey restaurant and Bar as major mall attraction.

CONCLUSION

The ultimate objective of any shopping mall: „image building‟, resting on a specific set

of attributes. These days malls are primarily focusing on the dimension „Entertainment‟

along with focus on other dimensions. The objectives contributing to image building

include creation of brand equity, sales increase, new product acceptance, positioning,

competitive retaliation/ creation of a corporate image. All historical trends for different

segmentations & their standard of living may be helpful in developing customer

retention strategy. For mall shopping, the retail marketing mix has been classified into:

(1) Shopping Enjoyment Motivator(s) and (2) Shopping Mall Loyalty Enhancers. Based

on the classification, shopping mall categorization has also been proposed. For mall

shopping, the Shopping Enjoyment Motivator(s) identified is Entertainment whereas the

Shopping Mall Loyalty Enhancers identified are Specialty, Value, One Stop Shop and

Convenience. The attributes play a major role in building a specific mall image, thus,

facilitating prospects in choosing a mall. The mall managers and retailers might focus

on the said attributes to propose appropriate customer loyalty strategies for mall

promotion and mall positioning. These strategies could be devised at various stages viz.

shopping mall level and retailer level.

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RECOMMENDATIONS

The mall operators/ managers need to focus on mixing of various „Ps‟ and their

sub-elements effectively to achieve the highest expected probability of meeting the

plan‟s objectives. The relative importance of attributes varies from country to country.

The mall operators and managers in Delhi and NCR need to focus more on positioning/

re-positioning of shopping malls. The focus to be on research activities in determining

the rapid shift in buyers‟ perceptions, and formulating innovative marketing practices

well in time in accordance with international standards. The retailers need to reinvent

their mall continually particularly during special occasions, A significant association

(positive correlation) between shoppers‟ loyalty towards malls and their level of mall

shopping motives was determined. Thus, more the shopping motivation, more will be

the mall loyalty. The mall shopper clusters so obtained – Shopping Mall Shirkers and

Shopping Mall Visitors help them know their clientele better. The demographic

information could be exploited to better serve the needs of the customers, which can

improve sales, paving the way for higher profitability. Also, to market store locations in

the mall to prospective retailers who specifically cater to the groups identified, changing

gender role, age, occupation, education and income, expenditure need to be monitored

regularly. Increase in working women population resulted in increased total income of

the family causing an increase in personal asset belongings, related to continuing mall

loyalty. Different loyalty building initiatives/ promotional strategies rate differently on

shoppers‟ evaluation. To improve the shopping mall marketing mix, the evaluation of

consumers‟ perceptions towards mall image need to be understood. The shoppers are

influenced by loyalty building initiatives/ promotional strategies during actual purchase

and re-purchase. The local conditions and insights into local buying behavior also need

to be considered before shaping the mall format choice.

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FURTHER SCOPE OF STUDY

Top challenges for mall managers in Asia focus on increasing the value of the mall

through strong merchandising and great marketing, in providing basis for further

research to be carried out in the same field with larger sample size, larger area, might be

expanded across the boundaries. The study could support an „individualized‟ customer

management in acquisition and establishment of a strong relationship and prevention of

attrition and winning back of lost customers.

CHAPTER WISE BREAKUP OF THE PRESENT STUDY

Chapter 1 deals with the general introduction of the study undertaken, overview of malls

all over the world, India, Delhi and National Capital Region and specifically the malls

selected for conducting the study. How research questions evolved, identification of the

problem, problem statement leading to research objectives and framing of hypotheses,

significance of the study have been discussed.

Chapter 2 presents the review of the published literature on shopping malls under

different conditions, circumstances, and places all over the world. Also, the identified

gaps in the literature have been discussed. Limitations while conducting the study have

also been mentioned.

Chapter 3 deals with the research methodology. How the present research has been

conducted, research design, sampling design, data collection methods, instrument

development, various scales, and relevant research techniques have been highlighted.

Chapter 4 focuses on objective-wise data collection methods, hypotheses testing using

appropriate tools and techniques, interpretation and analysis in detail, highlighting

acceptance or non-acceptance of hypothesis.

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Chapter 5 reflects the findings of the research conducted. A framework for shopping

mall loyalty has been proposed. Recommendations and suggestions for future work on

the related topics have been enumerated.