Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
Marketing Malls: Defining Customer Motivations and
Attractions
Hemant Trivedi and Hersh Puri
Mall management changes its retail offering with time to make it more relevant
to target markets. For this it is essential to understand motivations for
customers to visit Malls and differentiate Mall consumption behavior by
different demographic groups. An exploratory study borrowing from literature
review and pilot survey through in-depth interviews led to a detailed
questionnaire based survey in Ahmedabad city as a representative of the
important tier II city offered insights into customer motivations and choice. It is
found that specific Mall offerings are attractive to a given set of customers. Of
the variety of offerings a Mall may have in its arsenal, there is no quick fix
formula or off-the-shelf solutions to making a Mall successful. Mall developers
and managers need to understand the motivations of customers and their
specific choices while making a Mall visit. Thereafter a suitable set of Mall
offerings in the form of marketing mix elements should be built into the
business strategy.
1. Introduction
As quoted by Feinberg and Meoli(1991), the mall was originally conceived of as a
community center where people would converge for shopping, cultural activity, and
social interaction (Feinberg & Meoli, 1991). According to Samuel Feinberg (1960) the
first enclosed mall was developed in the suburb of Minneapolis in 1956. Originally
designed to get the shopper out of the hard weather, The Mall of America, introduced
the world to shopping complexes as world unto themselves--- free from bad weather,
life, crime, dirt and troubles (Feinberg S. , 1960). The common Indian definition of the
shopping mall has developed from one of the earliest forms of retail prevalent in India
called the ‘Haat’ and the ‘Mela’, which are temporary open air markets generally held at
the fixed site on a fixed day or at a festival time, these ‘haats’ and ’melas’ are the
predecessors of ‘shoppertainment’ in India (Kuruvilla & Ganguli, 2008). Spenser Palza
in Chennai and Crossroads in Mumbai are considered to have pioneered the shopping
mall in its modern format (Kuruvilla & Ganguli, 2008); Crossroads since then has been
renamed Sobo Central (Mehta, 2012). Kuruvilla & Ganguli(2008) quotes that for the
Indian mass affluent the call of the mall has proved to be irresistible. The packed
parking lots, busy food courts and restaurants, crowded anchor stores, noisy gaming
arcades and multiplexes are attractions which are part of the allure. The lure of the mall
is its mass appeal--- it has something on offer for everyone in the family (Kuruvilla &
Ganguli, 2008). Khare and Rakesh (2010) asserted that Malls in India were earlier
____________
Dr.Hemant Trivedi, Professor and Director, School of Petroleum Management, Pandit Deendayal
Petroleum University, Gandhinagar, Mobile: +919426917876, E-Mail: drhemanttrivedi@gmail.com
Mr Hersh Puri, Sports Marketing Consultant, SportMARCOM , Ahmedabad, Mobile: +919624987858,
EMail: hersh.puri@gmail.com
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
concentrated in cosmopolitan cities and also states that malls are extending their reach
to non-metropolitan areas (Khare & Rakesh, 2010). The popularity in the retail format
has translated in the increase in the number of malls from 225 malls in 2008 to 570
operational malls as on May, 2013 (Sharma & Dhamija, 2013).
2. Literature Review
As quoted by Feinberg and Meoli(1991),in the 1960, the US has around 4500 malls,
contributing 14% to retail sales. 15 years later, in 1975 the number of malls is the USA
increased to 16400, the sales making third of retail sales. And in the year 1987, the
number of malls existing increased to 36000 and mall retail sales made 50% of retail
sales in the country. Moreover, malls employed 8% of the labor force and contributed
13% to the national GNP (Feinberg & Meoli, 1991). In the 1980s, overbuilding and
overexpansion created turmoil for mall retailers and mall developers. During such
difficult times of the apparel industry mall merchants used sales promotions to attract
customers. This resulted in low profit margins for mall developers and consumers
addicted to sales. At the same time, non-traditional apparel discount businesses
emerged such as strip malls, e-shopping and catalog retailing (Barnes, 2005). Barnes
(2005) suggests that the decline of the traditional mall and the emergence of consumer
value conscious attitudes coincided with the growth of the factory outlet center (Barnes,
2005). Kooijman(2002) states that shopping mall and urban entertainment are not
export item over which the US has the sole rights. Plans of a shopping mall were on
drawing board as early as 1948 in Netherlands. Lijinbaan, which was completed in
1953, was the first urban entertainment center (Kooijman, 2002). In this study,
Kooijman(2002) provides a explanation for developments in the retail sector in form of
three retail revolutions. The first retail revolution took place in the 19th century, when
the distribution sector became an independent economic activity of the production
sector, when producers could not handle the distribution of consumer goods. It was the
distribution sector which took the lead, instead of the production sector. Increase in
scale, a key factor for the growth of distribution sector. The increase in scale was
achieved was achieved by a substantial reduction in prices combined with larger
turnover, the first revolution was largely driven by demand. The second retail revolution
took place in the 1950s and the 1960s with the increased efficiency of the distribution
chain and reduction of associated costs through new concepts and shops such as self
service, supermarkets and shopping centers. Kooijman(2002) in his study puts forward
a hypothesis of third revolution of retail in terms of different combinations of retailing,
leisure and urban entertainment. ULI, Urban Land Institute, defines urban entertainment
center as a new form of shopping center that must contain three basic components: at
least one pure entertainment attraction, usually a new generation cinema complex;
theme restaurant; and entertainment oriented shops in a coordinated, intense sociable
environment that draws large and diverse audiences to activate the place (Beyard,
1998). Developing Urban Entertainment Centers provides definition of urban
entertainment and describes a number of examples. The projects described by ULI
show different combinations of retail, leisure and restaurants, these examples cited
spread across three continents always express an urban atmosphere and are
predominantly themed (Beyard, 1998).
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
Messinger and Narasimhan(1997) suggest that consumers’ choice of retailers is
influenced by : assortment of products available, price of products, transactional
convenience and the shopping experience (Messinger & Narasimhan, 1997). Bloch et
al(1994) stressed that malls are perceived to be attractive because of the physical
ambience and the entertainment facilities, stating that physical environment affects the
emotions of the consumers (Bloch, Ridgway, & Dawson, 1994). To generate consumer
traffic in malls, mall retailers have to fulfill the social and hedonic shopping needs
(Tauber, 1972). Khare and Rakesh(2010) give a mall retailer’s perspective on the what
generates traffic in a mall. Retailers expect the mall management to endow the malls
with relevant cues in form of stores of branded apparel, cinema halls, dining areas and
recreational centers for drawing customers to the mall. Mall retailers placed a high value
on the presence of a Cineplex and anchor stores for pulling in consumers. Retailers
were of the view that if consumers visited the mall for watching a film or just for
spending time, there is a high probability that they would also shop (Khare & Rakesh,
2010). Additionally, academic research has revealed that many consumers are apt to
making decisions regarding where to shop on the basis of their attitude toward a mix of
the stores and the mall or shopping center environment (Finn & Louviere, 1990). As
quoted by Wakefield & Baker (1998), a number of scholars and practitioners argue that
central reason many people visit malls is for excitement of the experience (Wakefield &
Baker, 1998). Wakefield and Baker(1998) in their study addressed a nature of influence
of the mall environment by modeling the relationships among a number of antecedent
factors and retail responses found that tenant variety(food services, stores and
entertainment) had the strongest influence on excitement. The study suggested that
food and entertainment alternatives may provide shoppers with needed breaks from
hours of shopping or as a conclusion to an extended shopping excursion. Variety of the
number of stores also had the strongest effect to desire to stay at the mall. (Wakefield &
Baker, 1998)
Kuruvilla, Joshi and Shah (2008) explored gender specific differences mall shopping
habits. The study indicated that there are significant differences between men and
women in the process of shopping (Kuruvilla & Ganguli, 2008). Since malls as centers
for family outing (Khare & Rakesh, 2010), the present study explores the differences in
demographic differences shopping behavior and consumer motivations towards a mall.
This study examines the motivations of Indian consumers to shopping mall in its modern
format by deconstructing various mall elements and mall offerings. The second
objective of the study is to find out motivations of different age groups for visiting a mall,
activities engaged in during a mall visit and mall visit patterns. The second objective
would serve as an imperative for practical managerial implications. The research adds
to the existing literature on Indian consumer behavior in malls as the study in done in a
non metropolitan city of Ahmadabad.
3. Methodology
A pilot survey was conducted through in-depth interview of 20 respondents. Twenty
respondents were interviewed outside four malls in the city. A systematic review was
done of the 20 in-depth personal interviews with the help of a consumer insight
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
specialist. Based on the two research study objectives identified from a literature review
and after a systematic review of results of the pilot survey a set of variables were
identified. From the systematic review of the pilot survey, physical environment element
such as parking, air conditioning and sitting spaces etc had emerged. Subsequently,the
questionnaire was developed based on the pilot survey on importance attached to
different mall offerings, and the existing literature on consumer behavior and attractions
in/to a mall. Eighteen statements measured weight age of different considerations when
visiting a mall. The questionnaire consists of statements about consumption activities
like shopping and eating. Three questions focused on indulgence activities that a mall
visitor can involve in, indulgence activities taken were movies, fun and games and
‘shoppertainment’. Specific statements were incorporated for mall facilities and
amenities like importance given to parking, air conditioning and sitting spaces. In order
to know the consumer mindset, a survey of 200 respondents, residing in Ahmadabad
was undertaken.
The questionnaire was used in survey for collection of primary data on consumers’
perception and acceptance of malls as a retail format. To arrive at the final
questionnaire, a rough draft was first formulated with a few open ended questions,
which generated a lot of qualitative data, which played a crucial role in helping
researchers zero in on the final questions. Based on responses collected a crosstabulation was done on gender and age classification. To attain some results crosstabulation was done with three variables.
Specifying measures for the variables, statements were created to fit into a Likert type
scale of 1 to 5 from ‘strongly agree’ to ‘strongly disagree’. The questionnaire was used
in survey for collection of primary data on consumers’ perception and acceptance of
malls as a retail format. To arrive at the final questionnaire, a rough draft was first
formulated with a few open ended questions, which generated a lot of qualitative data,
which played a crucial role in helping researchers zero in on the final questions. Based
on responses collected a cross-tabulation was done on gender and age classification.
To attain some results cross-tabulation was done with three variables.
4. Research Findings
The research findings are presented contextualizing them to the different mall offerings
and their attractiveness to respondents and the relevant behavior manifested by mall
visitors.
4.1Visit Frequency
Roy (1994) reported that mall visit frequency was positively associated with degree of
consumers’ recreational shopping motives (Roy, 1994). It is found that men frequent
mall more than women with 33.1% men visiting weekly as compared to a mere 15.1%
women visiting the mall every week. 60.6 % of female respondents visit the mall on a
fortnightly and monthly basis. The results of the study are in accordance with the study
on gender differences of the shopping behavior in India done by Kuruvila, Joshi and
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
Shah (2009). Teenagers have highest frequency of visit to malls with 60% of them
visiting weekly, our study adds to the research in the west (Bip).
4.2 Company
Research findings show that age of customer and visit to a mall with family are inversely
related, with 90.9% of the 45+ age group visiting the mall with family. Respondents of
the ‘35-45 age ‘bracket’ have 75% of visitors who visit with the family and 29-34 age
group being 64.8%. It decreases drastically in the next age group 23-28 with only 18%
respondents visiting the mall with the family, 57.4% of the same age group visit with
friends which is the highest percentage across all age groups. Women treat malls as a
serious shopping event with more number of women agreeing that their companion
doesn’t influence which mall they should go to with 47% agreeing and 18.2% strongly
disagreeing as compared to Men with 33.1% agreeing and 14.3% strongly disagreeing.
4.3 Parking & Mode of Transport
This study shows that mall parking and vehicle on which a customer travels to the mall
do not have a proportional relationship. The 18-22 age group who are highest (44.6%)
in using two wheelers as a mode of transport strongly feel (67.9%) the need to have a
good parking facility. Results of the survey indicate 67% of respondents strongly
agreeing to the statement about ‘importance of parking’. Around 56.5% of total
respondents offer a negative response to availability and quality of parking facility
outside a mall. It is clear from our study that 45+ age group is most affected when there
isn’t a parking facility with 81.8% having a negative response to the same.
4.4 Mall as a Shopping Destination
While 56% of the respondents’ think of malls as their favorite shopping destination, that
figure rises to 61.3% and 64% for shoppers in the age group 29-35 and 23-28
respectively. Shoppers aged above 45 do not fancy malls as a shopping destination
with 45.5% people disagreeing to the statement. 67.5% of respondents are of the opinion
that malls should have a unique tenant-mix with the number increasing to 80% in the
13-17 age classification. Men prefer malls to have a different (unique) tenant mix with
51.9% agreeing and 21.8% strongly agreeing as compared to 39.4% (agreeing) and
15.2% (Strongly Agreeing) amongst women.
4.5 Fun and Games
Traditionally, teenagers and malls have co-existed in perfect harmony (Bip). This holds
true with 40% among 13-17 age bracket and 37.5% among the 18-22 age bracket.
Considered to be a teenage amenity the study shows it is favorable to 85.5% of the
respondents in the younger age group.
4.6 Cineplex
53.5% favorable (strongly agree and agree); however multiplexes are, to a large extent
favored by the young with 39% of the respondents feeling strongly [strongly agreeing]
that a mall should have a Cineplex. A mall in India is part of the urban entertainment
center. Having a Cineplex and fine dining as tenants in a mall has been proposed as the
third revolution of retail (Kooijman, 2002).
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
4.7 Food courts and Fast Food Restaurants
Findings for the above state that around 74% are favorable to having a food court and
73% favorable to having a fast food restaurant in a mall. Making a distinction it is
observed that fast food restaurants have a stronger pull in the younger age brackets;
with 40%, 30.4% and 32.8% in 13-17, 18-22 and 23-28. This results of this study are in
agreement with research which states that variety of tenant mix(food courts and
entertainment) is found to be important to mall goers(Wakefield & Baker, 1998).
4.8 Air conditioning and Benches
Benches are more popular among women rather than men with 36.4% strongly agree to
28.6% men. A/C is an amenity which is a strong favorite with people conditioned to
numerous power cuts and unbearable heat. These facilities make malls a perfect place
to hang out for youngsters driving many footfalls. Although there was a variation
observed in the negative statement about benches and sitting space. One insight that
can be drawn would be importance of benches/sitting space can be felt when they are
not found. While physical environment has been documented as an important factor in
consumer mall patronage/behavior, this research ads to research by identifying two
specific elements that were found in the review of the pilot survey—air conditioning and
benches.
4.9 Events
The result of the research findings indicate that events in a mall find more favor with
men (55.6% agreeing to the statement) as compared to the women (40.9% agreeing to
the statement). Women who are neutral to the statement is 30.3%; males being 14.3%
4.10 Shopper-tainment
Malls introduced the concept of shopper-tainment in India (Kuruvilla & Ganguli, 2008).
The word shoppertainment has a strong connotation of convenience to the Indian
consumer. 33.3% of men strongly agree while 44.4% agree, 28.8% of women strongly
agree and 37.9% of them agree thus confirming the earlier conclusion of men favoring
malls more than women.
4.11 Mall attracting similar customers in terms of socio economic segmentation
Research findings show that customers that a mall usually attracts are among the oldest
generation of 45+ with 36.4% strongly agreeing to the statement. This variable affects
women slightly more than men with only 13.5% of men strongly disagreeing to 16.7% of
women; responses to the same statement have more number of men neutral with
22.6% as compared to 18.2% of women. This was an element which was identified by a
review of the pilot study done.
5. Managerial Implications
Findings of this study demonstrate how different segments of customers use shopping
malls and what appeals, amongst different mall attractions, to these groups. It was
found that demographic profile explains the difference among group of customers. This
perspective shall help Mall retailers and Mall managers to make a lot of decisions.
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
Study revealed that majority of customers goes to the mall accompanied by others;
either family or friends. Managerial implications and recommendations are made on the
basis of age and gender to make the presentation reader friendly. Results found out that
value derived from malls by each group differs.
5.1.1Teenagers (13-17)
Teenagers visit malls quite frequently either with their friends or family. Activities of most
interest to them are fun and games. A visit to mall never really ends without a visit to
Food Court or Fast Food restaurant. Teenagers and malls have a longstanding
relationship; they treat malls as a pass time. Mall managers should make regular
innovations in their ‘Fun and Games’ to fulfill teenagers’ need for variety. Research
shows that some teenagers visit malls to keep up with latest trends. A mall which has
teenagers as its prime target group ought to offer entertainment and experiential
indulgences.
5.1.2 College-Goers(18-22)
Research shows that it’s the uniqueness in a mall that appeals to college-goers.
Mirroring the teenage segment on most variables there are a lot of mall attractions
having the same appeal, however it is important to make a distinction in the lifestyles of
the two: College-goers stand out from other age groups in their usage of two wheelers
5.1.3 Young Professionals (23-28)
Research finding show that the age group has a high frequency of shopping, watching
movies is a mall Cineplex, and enjoying a meal in a mall makes this group a prime
target group for any mall. This demographic has been cited as one of the growth drivers
of modern retail and the number of malls in India (Khare & Rakesh, 2010) (Kuruvilla &
Ganguli, 2008).
5.1.4 Young Family (29-35)
Most people in this age group are accompanied by their family visiting a mall on a
monthly basis. Family accompanying draws parking facility as the most important
amenity in influencing which mall to visit. A mall drawing major footfalls from this agebracket generally has an offering not attractive to College-Goers and Teenagers. It can
be concluded that ‘Fun and Games, and other experiential mall offerings are not of
much interest as for most respondents in this age group, a visit to a mall is a family
outing.
5.1.5 Serious Shoppers (35-45)
Distinction which lies with the last age group is a stronger need for different tenants that
they can shop at. Food courts and fast food restaurants are refreshments for these mallgoers after a tiresome day of shopping at a mall. Without any doubt this is the market
segment which fulfills the interests of most tenants in a mall. Similar to the young family
age group, serious shoppers are mostly accompanied by their family, making a visit to
the mall an answer to most of their shopping and entertainment needs.
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
5.1.6 Outsiders (45+)
Around 90% of respondents are accompanied by their family. Parking facility and socio
economic classes of the mall customer base are the two variables drawing strong views
on the same. It is clear from the study that this age group is more of a companion to
mall goers than market segment which shops from the mall.
5.2 Gender Based Segmentation:
Men compared to women are more frequent visitors to malls. Men are more affected by
parking facility that a mall provides to them with their affinity towards automobiles.
Another reason cited is mode of transport mall customers use to get to the mall; there
are higher numbers of women who come to mall by public transport: Auto rickshaw.
‘Shoppertainment’ term was more fancied by males as compared to women. Mall
Amenities like Benches and Air Conditioning which increase a shopper’s comfort draw
higher weight-age from females. Consumption activities that are more important to
women than men are movies and shopping. Women compared to men have more
positive attitude towards shopping. Shopping is perceived differently by the two sexes,
males tend to view it as an activity while women a process. Women having higher mall
loyalty of two sexes, mall management should take this factor into account during
modification of tenant mix. Women have a stronger purpose during a mall visit with
increased motivation on comfort, shopping and movies. However it should be noted that
men have a broader range of activities that they can indulge in at a mall.
6. Discussion and Conclusion
Mall as a retail format is now gradually being understood by customers who some time
ago considered any large format retail establishment as a Mall. Of the variety of
products and services that are offered at a typical Mall, some attract customers more
than others. Of the attractive products and services all do not attract customers of all
types. It is necessary to understand and relate the demographic and psychographic
characteristics of the customers and their likes and attractions. It is observed through
this research that choices differ from person to person based on their age, sex, level of
education etc. Choices also vary for the same person based on the person
accompanying a Mall visit. While many of the choices are easy to understand there are
some choices that defy reason or common understand like the inverse relationship of
Mall visits with the family and the age of the customer.
This research has highlighted different demography based choice and customer
behavior particularly by age groups. While teenagers have a need to visit the food court
or fast food restaurant as a part of a Mall visit, the immediate older age group of 18 to
22 year old college goers has a distinct need for uniqueness or novelty. The entire
marketing strategy has to be thought through in context of the choices across age
groups and other demographic characteristics. This data when read in conjunction with
the population data for particular geographies through GIS systems offer a great
promise for creating the most appropriate product and service element mix for any given
location
Proceedings of Global Business Research Conference
7-8 November 2013, Hotel Himalaya, Kathmandu, Nepal, ISBN: 978-1-922069-35-1
Marketing strategy is a complex decision making function of intertwining variables
having cross relationships. Any level of clarity on the relation between one to another
variable offers a justifiable argument toward most plausible positive decision making.
This research contributes in that it offers an understanding of definite relationship
between demographic variables and customer choices and attractions in relation to Mall
visits. The very fact that Indian familial structure is undergoing a change offers huge
opportunities to strategize given the understanding this research offers about the person
accompanying for different age groups and frequency of visits. Changing economic
status of people and the corresponding shopping behavior can be well associated with
research outcomes in respect of attitude towards availability / non availability of parking
space and ease of navigation.