INFLUENCE OF MALL IN KERALA
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INFLUENCE OF MALL IN KERALA INFLUENCE OF MALL IN KERALA Document Transcript

  • “Influence of mall” – Changing consumer shopping habits of Kerala A Project submitted in partial fulfilment of the requirement for the degree Bachelor of Commerce (Honours) in Marketing of St. Xavier’s College, Kolkata Submitted By: Peter. J Roll No.: 417 Under the Guidance of: Prof.Dr.Shivaji Banerjee
  • DECLARATION STUDENT DECLARATION I hereby declare that the Project work with the title “Influence of mall – changing consumer shopping habits of Kerala” submitted by me for the partial fulfilment for the Degree of Bachelor of Commerce (Honours) in Marketing under St. Xavier‘s College is my original work and has not been submitted earlier to any other University or Institution for the fulfilment of requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part has been incorporated in this Report from any other work done earlier by others or me. However extracts of any literature which has been used for this Report has been duly acknowledged providing details of such literature in the references. Peter. J Registration No.: Roll No.: Kolkata 10 - 04 - 2013
  • ACKNOWLEDGEMENT ACKNOWLEDGEMENT I deeply thank God and my family for showing me the way, no matter how difficult the time was. For his aspiring and invaluable guidance, I wish to express my heartfelt gratitude to my Guide, Prof.Dr. Shivaji Banerjee, without whose support this project could not have been successfully realized. I thank Mr. N.P Dinta for his kindness and brotherly support towards me throughout the term of internship in Lowe Lintas, Cochin. Even thank Mr. Vinay Raj who held my hand during the period of internship in Lowe Lintas, Cochin My sincere gratitude to the interviewees and all respondents for their invaluable time, acknowledging that, this study would not have been possible without their assistance and support. Finally, special thanks to all my friends for their constant support and encouragement, and making these years in St. Xavier‘s memorable.
  • CONTENTS Contents Abstract Page 01 Chapter One Introduction Page0 2 Chapter Two Research Objectives Page 14 Chapter Three Literature Review Page 15 3.2 Definition of Shopping ............................................................15 3.3 Types of Shoppers..................................................................... 20 3.4 Consumer Buying Behaviour ..................................................22 3.5 Organization of the Retail Industry ......................................25 3.6 Types of Retail Formats ...........................................................25 3.7 Shopping Malls .........................................................................28 3.8 Determinants for Choice of Shopping Malls...…................29 3.8.1 Number of Stores and the Tenant Mix……...........31 3.8.2 Location of the Shopping Mall ...............................32 3.8.3 Shopping Experience…………….............................33 3.8.4 Shopping Mall Image................................................34 Chapter Four Research Methodology Page 35 4.2 Research Objectives..................................................................35 4.3 Qualitative vs. Quantitative Research ..................................36 4.4 Data Collection…………...........................................................36 4.5 Research Instrument.................................................................37 4.5.1 Interviews/Surveys.....................................................37 4.6 Research Procedure ...................................................................38
  • CONTENTS Chapter Five Findings and Conclusions Page 39 5.2 Consumers Perspective……………………………………....39 5.3 Retailers Perspective………………………………………....46 5.4 Findings………………………………………………………..51 5.4.1 Choice Variables for Shopping Malls……..51 5.4.1.1 Anchor Stores………………………....51 5.4.1.2 Location………………………………..51 5.4.1.3 Shopping Experience………………...52 5.4.1.4 Image……………………….………….52 5.4.1.5 Price Sensitivity……………………....53 5.5 Conclusion………………………………………………...…...53 Chapter Six Suggestions Page 55 Chapter Seven Conclusions Page 57 7.2 Limitations……………………………………………………58 Appendices Page 60
  • ABSTRACT Abstract Kerala,‘ The God’s own country‘. Where India‘s largest mall has opened, Lulu mall, as retail giants are raring to go in Kerala. How did the state become a shopper’s paradise? The retailing sector of Kerala is gradually marching its way towards becoming the next boom industry. The whole concept of shopping has altered in terms of format and consumer buying behaviour, ushering a revolution of shopping. The growth of integrated shopping malls, retail chains and multi-brand outlets is evidence of consumer behaviour being favourable to the growing organized segment of the business. Modern retail has entered Kerala as seen in sprawling shopping centres, multi stored malls and huge complexes offer, shopping, entertainment and food courts. Due to these factors, the meaning of shopping has changed. It is not just a mere necessity, as it was earlier, but much more than that. The factors that affect store choice and draw customers to the shopping centre include space, ambience, and convenience and moreover an array of choice under same roof. Space, ambience and convenience are beginning to play an important role in drawing customers. Malls, which are new to the state, are anchored by large outlets of Reliance group, Spencers, Big Bazaar and are also resided by a lot of Indian and international brands, are also being seen as image benchmarks for communities. Thus, this project aims at studying the change in shopping trends of consumers in Kerala with sprouting of malls in the state. For the completion of the project, the data collected from local retailers as well as consumers have been used as a tool. Various factors on which Keralites base their choice of going to the shopping mall or the unorganized markets have been analyzed in this research. 1
  • INTRODUCTION Introduction Kerala is a state located in the south-west region of India on the Malabar Coast. Spread over 38,863 km2 (15,005 sq mi) with a population of 33,387,677, it is bordered by Karnataka to the north and north east, Tamil Nadu to the east and south, and the Laccadive Sea to the west. Thiruvanthapuram the state capital among the 14 districts; other major cities include Kochi, Kozhikode, Kollam and Thrissur. Kerala leads many other Indian states and territories in terms of per capita GDP (74,620 INR States of India by size of economy) and economic productivity and Kerala's Human Development Index is the best in India. The 2011 census shows Kerala's HDI to be 0.920, which is higher than that of most developed countries.1 ―The Kerala Real Estate market remains buoyant despite many a setbacks and slowdowns it has faced in the last two years. Some cities have witnessed significant real estate activity especially Trivandrum, due to the influx of Information Technology industry and software professionals. They bring with themselves higher aspirations in terms of quality of life and higher disposable incomes which accelerates real estate growth. Cities like Kochi on the other hand are in the recovery mode after quite a large drop in prices over the last year. We expect prices to start accelerating in Kochi and Kerala as a whole towards 2014, once the recessionary trends reduce post elections in United States and economic developments kick in into the Euro zone.‖ K Ramachandran, CEO Nandanam Consultants.2 The Kerala model of development is famous for the achievements it has made in the field of social infrastructure development like health care education. Things have changed dramatically in the past few years especially the quantum leap in the IT sector. 1 2 http://en.wikipedia.org/wiki/Kerala http://www.slideshare.net/nandanamconsultants/kerala-real-estate-market-report-january-june-2012 Chapter:1 The real estate sector of the state's economy is really on an upswing. The entry of global players and international equity management firms into the sector points to the abundance of enthusiasm and confidence that the investors have towards the potential and prospects of the sector in the years to come. 2
  • INTRODUCTION The architecture of shops in all the cities and town in the state has changed beyond recognition. Organized retail chains are mushrooming all over Kerala. The first signs of their interest were 'supermarkets' such as IT super shops, white goods retail chains and gold souks. Then came the malls. Nearly 50 malls are said to be built in the state in three years. The state government announced the launch of agri-malls in all districts. At least three districts would have fisheries malls. The launch of Lulu Mall, in Kerala, being the largest mall in the country will only hasten the trend. In Lulu's case, though these are early days, consumer response has been "overwhelming", according to Shibu Philips, business head of Lulu Mall. The mall is attracting footfalls of around 1 lakh even during working days, he says. Established players in retail are not unduly worried. ―Several malls are already operating in the state. But our business grew by 20% last year,‖ says PP Jose, chief operating officer of jewellery chain Joyalukkas Group. Unsurprisingly, leading jewellers are present in most malls. Yet, they are just as focused on standalone stores. Joyalukkas Group, for instance, has said it will launch mid-size malls in district headquarters under the brand 'Mall of Joy'. In jewellery, says Jose, the bulk of the demand comes from families shopping for weddings.‖They want privacy and more comfortable in an exclusive standalone shop.‖3 The competition is also driving innovations. White goods retailer LanMark Shops introduced a cluster approach in retailing, after it was unable to compete with big players. "We have organized 200 smaller players under one brand name called White Mart," says Jerry Mathew, managing director at LanMark Shops. Buoyed by the success in Kerala, the company has expanded into Tamil Nadu. 3 http://economictimes.indiatimes.com/slideshows/infrastructure/indias-largest-mall-in-kochi-lulumall/slideshow/18923992.cms Chapter:1 It is not hard to understand Kerala's shopping frenzy. Despite the relative industrial backwardness, the state's per capita consumption expenditure is one of the highest in the country thanks to remittances — largely from West Asia — of nearly Rs 50,000 crore a year. 3
  • INTRODUCTION Kerala is also home to cash crops like rubber, pepper, cardamom etc. If that's not enough, there are easy loans — estimated to be over Rs 1 lakh crore provided by gold loan companies. The organized retailing in Kerala is going through a transformation and this upcoming potential market is witnessing a significant change in its growth and investment pattern. Both the unorganized as well as the existing organized domestic players are experimenting with new retail formats. These upcoming formats are giving consumers a lot to spend on. With this transition taking place, the shopping behaviour of consumers is likely to change as these formats were not in Kerala until recently or to be precise before 2009. A strong trend in favour of organized retail format is being witnessed in Kerala. Retailing has been considered as a sunrise industry. The Kerala retail sector is undergoing through a transition phase. It is one of the biggest contributors to the Kerala GDP. More and more players are venturing into the retail business in Kerala to introduce new attractive retail formats like malls, supermarkets, discount stores, departmental stores and even changing the traditional look of the bookstores, chemist shops and furnishing stores.4 Hence, retailing in Kerala has emerged as one of the most dynamic and fast paced industries with several players like: 4 http://www.kochukeralam.in/life-style/shopping-malls-in-kerala Chapter:1 Lulu Cochin Mall Abad Nucleus Mall Oberon Mall Focus Mall Bay Pride Mall Gold Souk Grande 4
  • INTRODUCTION Image 1: Lulu mall, Kochi The Lulu Shopping Mall is the largest shopping mall in India, located in Edapally area of Kochi, Kerala. It is built on an area of 3,900,000 sq ft, with total area for mall alone at 230,000 square meters (3,900,000 sq ft) and the remaining portion for a premium five-star hotel managed by JW Marriott Hotels. Opened on 10 March 2013, the mall consist of more than 360 outlets including food courts, restaurants, family entertainment zones and a nine- Image 1 source: http://www.kochivibe.com/wp-content/uploads/2013/01/lulu-mall-kochi.jpg Chapter:1 screen multiplex, ice skating ring and bowling alley. 5
  • INTRODUCTION Image 2: Nucleus Mall, Maradu, Kochi. Nucleus Mall is a recently opened mall in Maradu, an upcoming suburb of Kochi, Kerala. The Mall has 13,000 square meters (140,000 sq ft) of retail space spread over 4 floors and 12,400 square meters (133,000 sq ft) of office space spread over 6 floors. The Mall is located in the developing suburban of Maradu, near to Thripunithura. The Mall was opened with much gala on November 12, 2010. The Mall is India‘s first LEED certified gold rated green Image 2 source: http://www.nucleusmall.in/images/map.jpg Chapter:1 mall. 6
  • INTRODUCTION Image 3: Oberon Mall, Kochi Oberon Mall is a shopping mall located in the Indian city of Kochi and the current largest lifestyle mall in Kerala in operation. The mall is also the first full format mall in Kerala, opened formally on March 2, 2009, though the mall was launched in 2008. The cost of construction of the mall is about Rs. 1 billion. It is built on an area of 39,600 square meters (426,000 sq ft) across five floors of shops and office spaces and covering grounds of up to 6 acres (2.4 ha). Oberon Mall was developed and promoted by the Oberon Group of Companies, India. The mall is one of the busiest shopping avenues for the city Chapter:1 of Cochin. Image 3 source:http://www.google.co.in/imgres?imgurl=http://www.oberonmall.com/photogallery/1315041338.jpg 7
  • INTRODUCTION Image 4: Focus Mall, Calicut Image 4 source: http://www.keralafind.com/advertisement_banners/calicut_thefocusmall_pic.jpg Chapter:1 Focus mall is a Shopping mall located in the heart of Calicut city. The mall is having six floors having a total area of 2.5 lakh square feet. The parking facility of Focus mall is also excellent. The vehicles can be parked in two floors on underground and top floor having a total capacity of 300 cars. The shopping mall contains all the leading brand products. Self service food court and restaurant in top floor is another specialty. Lifts and escalators are available for customers who make shopping friendly and healthy. Focus mall is also a centralized air-conditioned mall. View point is also available in top floor where visitors have a chance to see the entire Calicut city. Focus mall is the first ISO 9001:2008 certified mall in Kerala. 8
  • INTRODUCTION Image 5 Bay Pride mall, Kochi Image 5 source: http://kochipattanam.com/wp-content/uploads/2012/08/ob2-1346068914.jpg Chapter:1 Bay Pride mall is one of the top most shopping mall in Kerala. About 21000 square feet with two floors constructed on 9,000 square meters (97,000 sq ft). Bay Pride Mall is the prestigious product of Abad builders. This shopping mall in Kerala is situating face to Arabian Sea, is a plus point of this shopping mall. There have arranged showrooms of local and international leading branded items which facilitate shopping more easily. Bay Pride Mall is prestigious headstone to the Cochin business history. Every day a lot of peoples visited here and received Bay Pride Mall‘s services and are saying that they are satisfied in the services of Bay Pride Mall. To satisfying their customers they are giving lot of offers with their products. 9
  • INTRODUCTION Image 6: Gold Souke Grande, Kochi Gold Souk Grandé Kochi,is a shopping mall, in the city of Kochi, Kerala which was formally opened in March 2011. With retail space of 57,600 square meters (620,000 sq ft), this is the largest mall in the state of Kerala. The Mall is part of the Gold Souk chain of Malls located all over the country and a brand of Gurgaon based retail and property developer The Gold Souk Grande‘ Kochi is Aeren Chapter:1 Group‘s first venture in Kerala. Image 6 source: http://kochipattanam.com/wp-content/uploads/2012/10/1336887947_78890525_9-GoldSouk-Mall-Kochi-Retail-Space-with-rent-for-Sale--1349509961.jpg 1 0
  • INTRODUCTION Image 7 Big-I-Mall, Thiruvnanthapuram Big-I-Mall is an upcoming shopping mall under construction in Thiruvananthapuram, Kerala, India. It will have a built up area of 15,300 square meters (165,000 sq ft). It is also the first Green Mall to be built in Kerala as per the guidelines of the Indian Green Building Council. This mall features High speed Schindler elevators from Switzerland and for the first time in Kerala.. The Big I Mall is located on the NH bypass opposite Technopark, close to the international Chapter:1 airport. Image 7 source: http://thetrivandrumblog.blogspot.com/2012/09/upcoming-shopping-malls-in-trivandrum.html 11
  • INTRODUCTION Naaz Lifestyle Mall Naaz Lifestyle Shopping Mall is a recently opened mini mall in Pulimoodu, Thiruvananthapuram. The mall has 9 floors. It includes clothing centre of various brands like Wrangler, Levis etc , a crockery store , cosmetics store, food court and a gaming zone. Sobha City Mall Sobha City Mall is a shopping mall under construction in ThrissurCity, Kerala, India. The Mall is also the first shopping mall in South India to be themed with the concept of Wedding, catering to wedding shoppers. The Mall will have predominately a gold souk offering leading jewellery brands from all over India and the world, four major wedding apparels stores and other regular branded store. Forum Thomsun Mall Forum Thomsun Mall is an upcoming mall under construction in the city of Kochi, Kerala, India. The Mall is promoted by one of the India‘s largest realty firm, the Prestige Group as a joint venture with Thomsun Realtors. Prestige Group pioneered in retail sector by starting South India‘s first Mall ‗The Forum‘ in Bangalore. Forum Kochi Mall is debut venture of Prestige Group into Kerala.5 Nearly 50 malls are said to be built in the state in three years. The state government announced the launch of agri-malls in all districts. At least three districts would have fisheries malls. The launch of Lulu Mall, in Kerala, being the largest mall in the country will only hasten the trend. Chapter:1 In these circumstances, in which these new retail formats are sprouting at a rapid pace in Kerala, there remains a need among Kerala businesses to understand the pulse and pace of the state. There remains need among Kerala businesses to understand the changing behaviour of consumers towards shopping in these organized retail outlets or malls. 5 http://www.kochukeralam.in/life-style/shopping-malls-in-kerala 1 2
  • INTRODUCTION Also, due to the limited success of these outlets, it is necessary for retailers to be aware of shoppers‘ motivations and to understand ways of attracting the consumers. Till date, there has been very limited research on the shopping habits of consumers in Kerala has been done.6 Through this Project ―Influence of Mall – Changing Consumer Shopping Habits in Kerala‖, I attempt to fill these gaps, thereby investigating the shopping behaviour of the Kerala consumers, particularly with the new retail formats emerging. Chapter:1 This study would concentrate on the consumer response towards the large retail outlets, behaviour the consumer exhibits while visiting or making purchases in the newly opened malls. It would explore the purpose and motive behind the Kerala consumers‘ visit to these newly established shopping malls, the values they derive from the shopping trip and their shopping behaviour in terms of impulse purchases, time and money spent at the shopping mall, etc. 6 http://www.scribd.com/doc/53922188/Organized-Retailing-in-Kerala-%E2%80%93Key-Issues-and-Challenges 1 3
  • RESEARCH OBJECTIVE Research objectives There have been many motivations for me to pursue with this topic for my project. Firstly, there have been massive changes in the demographic factors of the Kerala consumer. Some of the factors include income and consumption growth (foreign remittance), high literacy levels, changes in family structure and women‘s role in the family, growing role of children as influencers, gradual acceptance of frozen goods as a viable alternative to fresh produce and the growing influence of media. These factors have been a driving force of organized retailing in Kerala which has further driven the growth of the real estate industry with more and more demand for retail space within malls. The second motivator behind my choice of topic was that, I‘m a Keralite who wonders regarding the twists and turns happening in my home state, social wise and economy wise. Being a marketing student I believe knowing the consumer behaviour of people from my land will be the first step I could lay in my career. Therefore, this research would be helpful for me as it would give a clear idea about the consumers in malls. How are the consumers‘ shopping habits changing with upcoming retail formats, specifically malls? What are the determinants of consumers when choosing between a shopping mall and the unorganized market? Chapter:2 What is the impact of the development in real estate industry on the organization of the retail industry in Kerala? 14
  • LITERATURE REVIEW Literature review Rowley and Slack (2004) describe literature review as ―a summary of a subject field that supports the identification of specific research questions”. McCraken (1998) specifies that a literature review offers ―deconstruction‖ of the existing literature by establishing a survey of the ground and assessing the categories and relationships that must be investigated, an approach I would attempt to undertake in this research. The aim of this chapter is to examine and present a comprehensive analysis of existing literature on the project topic. An entire culture has taken root in Kerala and a sub culture emerged round shopping malls. Shopping mall culture hits Kerala and malayali minds. Kerala has the ability to adapt fast to every new changes without losing its identity. Kerala‘s modern, multi-storey stylish shopping malls are a shopaholic paradise. Shopping malls in Kerala accommodate every taste, pocket and style. The latest addition to Kerala‘s ‗malls cape‘ is the new and fabulous Lulu International Shopping Mall, the largest mall in India. Shopping mall culture is growing in Kerala and a prominent feature of retail development here. Shopping malls with its fashion stores, multiplexes, hang outs, game zones bring new dimension and identity to cities of Kerala.7 3.2 Definition of Shopping: According to Dholakia, the rationale for shopping is making physical visits to a shopping site. It is considered as a household task as well as a form of recreation, relaxation and entertainment. 7 http://tumkuruniversity.in/blog/?p=152 Chapter:3 Malls are more than just shopping destinations. Shopping mall is a place for social gets together – to meet, eat and mingle and to be a one-stop entertainment destination with exceptional leisure opportunities. Extensive Shopping Malls in Kerala have changed the way people window shop and buy in Kerala. It promises an internationally accepted standard of shopping to every prospective customer and altogether a different and overwhelming shopping experience. The premier malls showcase of international lifestyle trends in relation to fashion, cuisine, urban leisure and more. 15
  • LITERATURE REVIEW As per the definition of Lunt and Livingstone, going out to shop is a conspicuous moment in consumption. Most researchers, who have studied shopping behaviour, changing consumer shopping habits consider shopping a gendered activity. It has been revealed that shopping is a women‘s activity and they were the ones responsible for household shopping. Many other consumer research studies about shopping have also had a greater part their respondents as women.8 Shopping is also considered by Oakley, to having the most positive attribute of being a leisure activity along with work. Howard (2007) also believes shopping to be a leisure pursuit and with the rapid development of shopping centres, both retailers and developers are trying to make it more of a pleasure activity. Of the many studies done in an attempt to identify motives of shopping, the one by Tauber (1972) is a prime one. He identified eleven motives of shopping in a market based economy apart from the acquirement of products and services and classified them as role playing and social experience outside home (Howard, 2007). Chapter:3 Diversion: 1. Shopping is a good excuse to get out of the house 2. Shopping is a hassle 3. Going to the mall picks up my spirit 4. Sometimes I go shopping just to kill time 5. You don't have to buy anything to have fun shopping 6. I only shop when I have to buy something 7. I can go shopping every hour of the day 8. I go to the mall to eat 8 South and Spitze (1994) and Flam and Axelrod (1990) 1 6
  • LITERATURE REVIEW Self-gratification: Learning about new trends: 1. I rarely buy things just as a special treat 2. Sometimes I go shopping just to pamper myself 3. I often buy something I don't really need to pick up my spirit 4. It's especially fun to buy "impulse" items 5. I enjoy anonymity 6. I can mind my business 7. There is no pressure to buy 1. Shopping is how I find out what's new 2. I often browse just to keep up with new products on the market 3. I often shop to keep up with the latest trends 4. I like to visit new stores to see what they have to offer 5. I enjoy window shopping and browsing through stores 6. I feel modern Chapter:3 Sensory stimulation: 1. I enjoy looking at store displays 2. I enjoy the hustle and bustle of stores and shopping malls 3. Stores and shopping malls are exciting places to visit 4. At the shopping mall you can find anything 5. I can give a glance 6. It's a source of inspiration 1 7
  • LITERATURE REVIEW Social experiences outside the home: Communication with others having similar interests: Status and authority: 1. Store crowds get on my nerves 2. Sometimes I shop just to be around other people 3. Shopping is an opportunity for social interaction 4. I like meeting people while shopping 5. I do not suffer from loneliness 1. I enjoy talking to other shoppers 2. I enjoy talking with other customers and salespeople 3. Salespeople are kind 4. I can talk with salespeople who advise me 1. It's fun to be waited on in stores 2. I enjoy the personal attention I get at better stores 3. I like being "pampered" by attentive salespeople 4. I wish salespeople would just leave me alone 5. I wish salespeople were more attentive and respectful Chapter:3 Physical activity: 1. Sometimes I shop just to get some exercise 2. Sometimes I go to the mall just to stretch out and walk 3. Shopping gets me up and doing something physically active 1 8
  • LITERATURE REVIEW Pleasure in bargaining (Processes): Pleasure in bargains (Outcomes): External reasons: 1. I like to dicker with salespeople 2. I hate to negotiate over prices 3. When I think I can bargain, I offer a lower price 1. 2. 3. 4. 5. 6. I don't worry much about getting the best deal I'm always looking for sales I love to hunt for bargains It's important to me to be a smart shopper I constantly have my eyes open for good deals You can save money by shopping in malls 1. 2. 3. 4. 5. 6. The parking lot is wide The shopping mall is near my house The salesgirls are pretty Entry is free The environment is inviting I go to the shopping mall because it's new Table 1: Shopping motives and items according to Tauber (1972) Social reasons are important, as Lunt and Livingstone (1992) describe shopping as a spectacle in which the person who is shopping is both a spectator and a performer (Dholakia, 1999). However, most of these motives that have been mentioned in the table can be described as pleasure or leisure related. Many studies that have followed Tauber‘s (1972) study have made an attempt to generate some evidence from reality to confirm these motives. A lot of consumer Behaviour researches have investigated and found insights into the personal and Situational experiences of shopping and its emotional and behavioural effects (Howard, 2007). Interactions With Family Utilitarian Shopping As Pleasure Table 1 source: Shopping motives and items according to Tauber (1972) from Sinha (2004) Chapter:3 Another research on the key determinants and motivations of shopping behaviour by Dholakia (1999) has explored and empirically tested three reasons behind going for shopping as: 1 9
  • LITERATURE REVIEW 3.3 Types of Shoppers: CWHB‟s (2002) survey on Where People Shop covering 12 countries of Europe has identified six types of shoppers on the basis of demographic, attitude and behavioural characteristics. Apart from considering food shopping as essential, these can be segmented as: Pleasure Seeking Shoppers: Enjoy the leisure oriented side of shopping and mostly shop for designer clothes or stop by at a coffee shop or snack bar. Principled Shoppers: who are mostly older women, are governed by strong moral principles where shopping is concerned. In terms of food, they buy organic, natural and non factory framed food and in terms of clothes, they prefer to shop for fashion brands. Discerning Food Shoppers: constitutes of the population which buys food in markets and local shops around the neighbourhood instead of going to the supermarkets. Independent Shoppers: The younger population with children, a part of this category, shop for clothes more often than food and they do not prefer to be assisted while shopping, especially for clothes. Enthusiastic Shoppers: They are most likely to shop in streets rather than going to shopping centres and are influenced by the offers that are given in the various retail outlets. 9 CWHB (2002), Where People Shop, Cushman Wakefield Healey & Baker, London in Millan E.S. & Howard E. (2007), Shopping for Pleasure? Shopping Experiences for Hungarian Consumers, International Journal of Retail and Distribution Management, Vol. 35 No. 6, pp 474-487 Chapter:3 Negative Shoppers: This category has the highest ratio of males who have a negative perception of shopping and they cannot spend good time in a shopping area.9 2 0
  • LITERATURE REVIEW Consumer Centre (2007) also classifies shoppers into seven kinds of shopping personalities: Window shopper: they visits the shopping mall for leisure, usually walks around in the mall with a friend enjoying the whole atmosphere, without an intention to buy. Bargain hunter: they prefer to shop at discount stores and mostly buy when the retail outlets offer sales. Power shopper: they do not visit the shopping centres that often, but are very organized when they are shopping. They carry a shopping list with them, buy only what they need and know where to get it. Shopaholics: they have been further divided into two segments, (1) The consumers who enjoy the whole shopping experience, and the other being the compulsive spenders. (2) These are people with low self esteem and get pleasure out of spending money, which is not a healthy thing to happen. Their urge to shop returns back every few days. Shopping phobic: these people are the ones who just hate the experience of shopping in a shopping centre and cannot find anything positive out of going out to shop. They would rather sit at home and shop online. Shopping misers: these are somewhat similar to the shopping phobic‘s, who just have to take out faults from everything they see in the shopping centres including the parking lots, prices of the merchandise, the return policy of the outlets, etc.10 10 Consumer centre (2007), http://www.superpages.com/consumercenter/clothing/personality.html Chapter:3 Indecisive shoppers: this category finds it very difficult to decide what to buy. They run around each store just to evaluate the price and quality of one product, which they don‘t end up buying at all. 2 1
  • LITERATURE REVIEW 3.4 Consumer Buying Behaviour: The traditional shopping choice behaviour of consumers was related to need recognition, when the consumer comes to know that he wants to purchase a product. Once the need has been recognized, then he moves on to search for information about the product and evaluates the alternatives available to him before finally makes a decision to purchase the product. He might visit certain outlets stocking that product, consult his friends, buying guides or store employees about it. Even after making the purchase, he might re-evaluate it (Taylor and Cosenza, 2002). Shopping behaviour of consumers is different in different countries. The reasons of this varying shopping behaviour are the diverse cultures and the changing economies of the various countries (Millan and Howard, 2007). A study of the various kinds of shopping behaviours therefore needs to be done, covering the various shopping contexts. Dholakia (1999) has provided a framework to understand the shopping behaviour of consumers. Chapter:3 Figure 1 : Framework to understand shopping behaviour Figure 1 source: Dholakia R.R. (1999), Going Shopping: Key Determinants of Shopping Behaviours and Motivations, International Journal of Retail and Distribution Management, Vol. 27 No. 4, pp 154-165 2 2
  • LITERATURE REVIEW Solomon (2002) and Stern (1962) have recognized four types of purchase behaviours namely: Planned: it involves information search about the product to be bought, evaluation of alternatives and then rational decision making. This is time consuming. Unplanned: it does not involve this kind of an initial planning. It arises when the consumer is unfamiliar with the store layout, has a shortage of time or just remembers to buy the product when he sees it on the store shelf (Shoham and Brencic, 2003; Hausman, 2000). Impulse: occurs when a consumer finds a product on the store shelf and is unable to resist the urge of buying it. It accounts for a large quantity of products sold that are bought every year and also covers a wide range of product categories. It has been portrayed by many researchers as a signal of immaturity, irrationality and risk and an absence of behavioural control (Levy, 1976 and Solnick et al., 1980) (Hausman, 2000). 11 Solomon M.R. (2002), “Consumer Behaviour”, Prentice Hall, Englewood Cliffs, NJ in Shoham A. & Brencic M.M. (2003), “Compulsive Buying Behaviour”, Journal of Consumer Marketing, Vol. 20 No. 2, pp 127-138 Chapter:3 Compulsive: it is repetitive and excessive shopping by consumers due to anxiety, boredom and tension (Solomon, 2002). According to O‘Guinn and Faber (1991), compulsive buying has been defined as a ‗chronic, repetitive purchasing that becomes a primary response to negative events or feelings‘. Such consumers are characterized by depression, obsession, tend to fantasize and have lower levels of self esteem (Shoham and Brencic, 2003).11 2 3
  • LITERATURE REVIEW Wilson (1998) represented consumer buying for social, recreational and therapeutic reasons in the form of a matrix: Figure 2 – A Two Dimensional Matrix of Consumer Buying 12 & Figure 2 source: Wilson D.F. (1998), “Why Divide Consumer and Organizational Buyer Behaviour?”, European Journal of Marketing, Vol. 34 No. 7, pp 780-793 Chapter:3 Many other factors may also affect purchase decisions. A person is likely to be influenced in making his/ her purchase decisions if he/ she are accompanied by another individual while making a shopping trip. A study by Nicholls et al. (1994) also found that a person will tend to shop more and spend more money when going out with someone. Other situational factors can also have an impact on shopping behaviour and purchase decisions. They include task definition, antecedent states, social and physical surroundings and temporal perspectives. For example, scarcity of time, any pre-existing affects, choice of the retail outlet and store attribute salience, variety of merchandise available in the store and even store fragrance have an effect on buying behaviour (Nichols et al., 2002). Shopping frequency is also a significant concept while studying consumer shopping behaviour. It is defined as the number of incidences when a product is purchased by someone in person. The shopping frequency is subjective to the time and effort that is put by a person and his/ her gender and shopping responsibility for the household. It is also determined by the shopping context.12 2 4
  • LITERATURE REVIEW 3.5 Organization of the Retail Industry: According to Dixon (2005), for the development of cities and towns, the retail industry has a very important contribution to make (Howard, 2007). The retail industry these days is not just about selling products in the shops. With a lot of development taking place in the retail industry, the retailer, along with that, needs to survey the consumers in the markets, identify and understand their needs, provide them with more choice and experience offering competitive prices. Apart from that, he is also required to maintain a relationship with the consumers in order to retain them for long unorganized retailing is defined as having outlets or stores run locally by the owner or caretaker of a shop that lacks enough technical and accounting standardization. Both the supply chain and sourcing are done locally to meet local needs.13 3.6 Types of Retail Formats: Reynolds et al. (2007) defined a retail format as a physical representation in the form of firm‘s activities which relates to the business model developed by the retailers and their business strategy. It is a kind of a retail mix followed by a group of retailers, which they can present to the customers and where an interaction with the shoppers can be made. It is an assortment of variables such as the merchandise, price, ease of payment and the whole, shopping experience that is offered to the customers, through which the business context and strategy can be conveyed. To convince the target audiences and to compete with other players in the market, the retailer needs to represent himself with an appropriate retail format. While deciding on the retail formats, the retailers ought to assess certain factors such as drivers of growth, the customers‘ profile and their expectations, the competitors and the challenges faced from them.14 13 Sathyaraj , “Definition of Unorganized Retailing”, http://retail-industry.blogspot.com/ & Figure 3 source: Reynolds et al. (2005), “Assessing the productivity of the UK retail sector”, International Review of Retail, Distribution and Consumer Research 14 (2005) (3), pp. 337–349 14 Chapter:3 As the researchers classify the types of retail format it can also be observed the method or the thought process of people to go to these stores and purchase vary. Therefore it is better to understand the objectives of shoppers, retailers and competitors for this purpose. 2 5
  • LITERATURE REVIEW The process of format selection by the retailer is represented in the figure below: With continued development of the retail industry, newer retail formats are emerging every day. Many researchers have tried to explain as to why this occurrence of new retail formats takes place. These explanations have given credit to demanding consumers, competitive retailers and manufacturers. Some studies have proposed the idea that value oriented consumers demand for new formats and in a response to these demands; the retailers are driven to develop these. The retailers‘ perspective suggests that as a result of expense control and operational efficiencies, the competitive retailers are pushed towards bringing new formats. Other researchers explain this phenomenon with the help of globalization of the manufacturing base. Rousey and Morgansky (1996) has suggested that whoever may be responsible for the emergence of newer retail formats, but in the end the consumer is gaining as he is being provided with a variety to chose from15 15 Rousey S.P. & Morganosky M.A. (1996), “Retail Format Change in US Markets”, International Journal of Retail and Distribution Management, Vol. 24 No. 3, pp 8-16 Chapter:3 Figure 3 – Process of Format Selection 2 6
  • LITERATURE REVIEW TYPE LOCATION ASSORTMENT SERVICES PRICE AND PROMOTION Business district shopping centre or isolated store Extensive width and depth of assortment: average to good quality Good to excellent Average to high prices heavy and catalogue use, direct mail; personal selling Full – line discount store Business district shopping centre or isolated store power strip centres Extensive width and depth of assortment; average to good quality Slightly below average–toaverage Low prices; heavy use of newspapers, price oriented, moderate sales force Specialty store Business district or shopping centre regional malls Very narrow width of assortment; extensive depth of assortment; average to good quality Average to high excellent High prices, heavy use of displays; extensive sales force Hypermarkets Stand - alone Average Low Low Variety store Business district shopping centre or isolated store Good width and depth of assortment; below average to average quality Below average Heavy use of newspapers, self service Off-price chain Business district, suburban shopping strip or isolated store Moderate width, but poor depth of assortment; average to good quality, low continuity Below average Use of newspapers, brands not advertised; limited sales force Factory outlet Out-of-the way site or discount mall Moderate width but poor depth of assortment; some irregular merchandise; low continuity Very low Little; self service Drug store Stand-alone, strip Very deep centres Average Average to high Home improvement centres Stand-alone, Very deep power strip centres Low to high low Table 2: Most common types of retail formats Chapter:3 Traditional department store 2 7
  • LITERATURE REVIEW With a diverse range of retail formats available, consumers tend to get confused. Consumer try to stick to certain retail formats, however, their preferences change with the development of newer retail formats. Although patronage patterns occur, they are specific to certain product categories like food and clothing. Shifts are bound to take place in other product categories. With the increase in the number of retail formats from which the consumers can make choices, the retailer should try to understand the market and consumer shopping habits from a dynamic rather than a static perspective.16 3.7 Shopping Malls: A shopping mall is typically, a shopping complex connected by walkways. It provides shopping as well as entertainment options to the target consumers. It generally, contains one anchor store, which consumes twenty five percent of its retail space. In addition a mall contains specialty stores for (Sankar, 2005): Clothes Accessories Home needs Books Food court Multiplexes Entertainment zones 16 & Table 2 source: Rousey S.P. & Morganosky M.A. (1996), “Retail Format Change in US Markets”, International Journal of Retail and Distribution Management, Vol. 24 No. 3, pp 8-16 Chapter:3 According to Nicholls et al. (2002), a shopping mall is a place where a wide mix of retail outlets are situated under one roof, and is usually anchored by one or more stores like departmental stores, which also helps to attract consumer traffic to that place. They are advertised as both shopping and recreation centres. An added advantage of the shopping mall is that all merchandise, entertainment such as a theatre or amusement park, food, services and atmosphere in the mall are all available under one roof and it is environmentally protected. This advantage also acts as a crowd puller. Moreover, the consumer can shop without the tensions of any traffic congestions or parking problems, security issues or crime districts. 2 8
  • LITERATURE REVIEW 3.8 Determinants for Choice of Shopping Mall: In the views of Sinha and Banerjee (2004), store choice behaviour of a consumer is considered a cognitive procedure. It is believed to be a process of information processing as the brand choice or any purchase decision is considered. It is very similar to the decision of making a brand choice except the fact that store choice is influenced by the location factor, which does not need to be considered when making a selection of brands.17 According to a study conducted by Kenhove et al. (1999), the choice of store by the consumer was differentiated by the nature of the task that had to be executed by him. The different tasks that were described by the respondents included: Figure 4 – Store Choice Model for Evolving Markets 17 Fotheringham, A.S. (1988), “Consumer store choice and choice set definition”, Marketing Science, Vol. 7 No. 3, pp. 299-310 in Sinha P.K. & Banerjee A. (2004), Store Choice Behaviour in an Evolving Market, International Journal of Retail and Distribution Management, Vol. 32 No. 10, pp 482-494 Chapter:3 Urgent purchases Large quantity purchases Difficult job Regular purchases Getting ideas 2 9
  • LITERATURE REVIEW Store choice decision is also driven by other tangible and intangible characteristics provided by the store. They include the store size, format, distance from home and environment of the store. Mattson (1982) found that store choice can also be influenced by situational factors such as time constraints and gift versus self shopping, further which can be classified as the competitive setting, the individual‘s situational set and the shopping occasion. However, if store choice is evaluated by the nature of situational factors, then these factors need to be studied for each shopping visit of the consumers to the various stores, also looking into the costs incurred and the benefits made by them during the shopping task. Many other researchers are also based on the store choice behaviour of consumers and have given various different viewpoints about the factors on which it depends. Oppewal and Timmermans (1997) consider the major determinants of store choice behaviour to be external factors such as retail floor space, distance, parking facilities, etc. Malhotra (1983) suggests that shoppers choose a particular store if the perceived value of visiting that store is the same as the threshold value attached to it by the shopper. The threshold value is also allotted on the basis of the image associated with that store. Dodge and Summer (1986) found that store choice is a function of variables like socio economic background, the personality and the past purchase experiences of the consumers. Lumpkin et al. (1985) who conducted a study to compare the behaviour of young and elderly shoppers found that instead of basing their store choice on price and distance from residence, the elderly shoppers chose a store which was high on entertainment value.18 18 & Figure 4 source : Sinha P.K. & Banerjee A. (2004), “Store Choice Behaviour in an Evolving Market”, International Journal of Retail and Distribution Management, Vol. 32 No. 10, pp 482-494 Chapter:3 Although a lot of differences have been noticed among the different age groups while studying their preferences of the shopping malls (Anderson et al., 2003), general shoppers of all age groups are attracted to innovation and uniqueness. Attractiveness of the shopping mall also determines the rent that the various retailers have to pay in order to open an outlet in the mall. The major factors which affect the attractiveness of a shopping mall have been discussed further. 3 0
  • LITERATURE REVIEW 3.8.1 Number of Stores and the Tenant Mix: Wilhelm and Mottner (2005) have considered the number of retail outlets in a shopping mall as one of the factors that helps shoppers decide which mall to choose. While studying mall preferences of teenagers, Baker and Haytko (2000) have said that not only the number but the variety of different stores is also a decisive aspect for them. The assortment of stores and services, known as the retail mix, as well as less repetition of stores are also key factors for a number of shoppers. Therefore, the tenant mix is also an important construct. The range of tenants in the shopping mall can include: Departmental stores Supermarkets Apparel stores Entertainment and leisure facilities 19 Miceli, T.J., Sirmans, C.F. and Stake, D. (1998), “Optimal competition and allocation of space in shopping centres”, Journal of Real Estate Research, Vol. 16 No. 1, pp. 113-26 in Ooi J.T.L. & Sim L.L. (2007), The Magnetism of Suburban Shopping Centers: Do Size and Cineplex Matter? , Journal of Property Investment and Finance, Vol. 25 No. 2, pp 111-135 Chapter:3 The anchor tenants are also a major part of the tenant mix as they help to generate a lot of shopper traffic to the mall. Miceli et al. (1998) said that apart from considering the profit of a store, the mall management should also take into consideration its consumer drawing power to the mall, as more consumers would also lead to the profit generation for other stores in the mall as well. To ensure the success of a shopping mall, one or more anchor tenants should be selected by the management so that they initially attract customers, which can be charged lower rent. According to Brown (1994), the anchor store for a shopping mall in the central city is more likely to be a departmental store, whereas for a mall in the suburbs, the anchor store would be a supermarket. He also suggested that the layout of the mall should be such that the anchor stores should be placed at the both ends of the mall, service outlets on the side malls closer to the exits and entrances of the mall and outlets like pet shops and dry cleaners should be positioned away from the food stores. Moreover, if a large number of similar stores are clustered together, this would bring agglomeration benefits and thus more customers would be drawn towards the shopping mall. 19 31
  • LITERATURE REVIEW Also, with smaller shopping malls coming up, tenants like restaurants and fast food outlets, clothing stores, retail service providers and institutional tenants such as banks and post officers are gaining more importance. As the tenant mix is a very important factor, the decision of correct assortment of tenants should be the starting point for any shopping mall. Apart from being a crowd puller, it also affects the image of the shopping mall, its patronage and rentals. It also influences the length of stay of customers in the mall and their level of excitement. However, the definition of what should be called the ideal tenant mix would keep developing over time. It has also become difficult for the mall management to find the appropriate tenants for the malls, reasons being large number and competition between shopping malls, upcoming newer retailing formats and the downturn in economies.20 3.8.2 Location of the Shopping Mall: “Some researchers have even shown that, while good business practices may not compensate for poor location, good location may compensate for poor business practices” The Law of Retail Gravitation Model by Reilly (1931) and Huff (1964), tested that the magnetism of a shopping mall decreases with distance and increases with increase in its physical size The gravity and potential models also recommend that while choosing between shopping malls, the customers try to find a balance between the utility, which is measured by the size of the shopping mall, and the cost, which is measured by distance. Shoppers patronize a shopping mall by finding out the correct balance between these two attributes.21 20 Kirkup, M. and Rafiq, M. (1994), “Managing tenant mix in shopping centres”, International Journal of Retail & Distribution Management, Vol. 22 No. 6, pp. 29-37 in Ooi J.T.L. & Sim L.L. (2007), The Magnetism of Suburban Shopping Centres: Do Size and Cineplex Matter? , Journal of Property Investment and Finance, Vol. 25 No. 2, pp 111-135 21 Ooi J.T.L. & Sim L.L. (2007), “The Magnetism of Suburban Shopping Centers: Do Size and Cineplex Matter?”, Journal of Property Investment and Finance, Vol. 25 No.2, pp 111-135 Chapter:3 In relation to the location of the shopping mall, accessibility and visibility are the two determinants which need to be noted. The size, quality and design characteristics should also be favourable as these impact the accessibility and visibility factors. 3 2
  • LITERATURE REVIEW 3.8.3 Shopping Experience: The prime advantage of an experience product is the experience that the shopper goes through by purchasing that product or service. Consumers derive value from purchasing these goods or services because of their unique qualities and are ready to pay a little extra for them. Mall developers have also tried to cope up in the experience economy by providing the consumers with good store ambience as well as entertaining and amusing experiences apart from shopping. They have added movie theatres or keep organizing live performances for the consumers in which they can get engaged and enjoy their experience while shopping in the mall. An example is the various entertainment activities, like theme park and an ice skating rink along with a huge variety of stores that are provided in the Mall of America.22 According to the findings of Wilhelm and Mottner (2005), the age group of teenagers also preferred going to a shopping mall whose atmosphere was friendly and made them feel welcomed. They wanted a mall which provided cool stores, entertainment options, attractive designing and a good place to spend time with friends, on the whole a good shopping experience. 22 & Figure 4 source: Wilhelm W.B. & Mottner S. (2005), “Teens And Shopping Mall Preferences: A Conjoint Analysis Approach To Understanding The Generational Shift Toward An Experiential Economy”, Journal Of Shopping Centre Research, Vol. 12 No. 1 Chapter:3 Figure 4: Experience Realms and Shopper Preferences 3 3
  • LITERATURE REVIEW 3.8.4 Shopping Mall Image: The authors of ―Shopping and the Fear of Others‖ have found out that shopping malls have an important role to play in the formation of the social identity of the shoppers as they are connected to particular societal groups. Shopping mall image has been defined by Houston and Nevin (1980) as the total of consumers‘ perceptions of a shopping mall based on functional and emotional attributes.23 The image of the shopping mall is also related to the frequency of customer visits to that mall and is important for customers when choosing between different shopping malls. Shopping mall developers should expend resources towards the communication of the right image of the shopping mall and this communication should be driven towards improving its image and thus frequency of visits. The image is also subject to the presence of anchor stores and other physical characteristics. 23 Arnould E. (2000), Reviewed Work(s): A Theory of Shopping by Daniel Miller and Shopping, Place, and Identity by Daniel Miller; Peter Jackson; Nigel Thrift; Beverly Holbrook; Michael Rowlands, Journal of Marketing, Vol. 64 No. 1, pp 104- 106 24 Millan E.S. & Howard E. (2007), Shopping for Pleasure? Shopping Experiences for Hungarian Consumers, International Journal of Retail and Distribution Management, Vol. 35 No. 6, pp 474-487 Chapter:3 After discussion of the factors influencing choice of shopping malls, it is worth mentioning that the effect of some of these factors like retail floor space, number of shops and distance weaken over time, whereas the effects of other factors like anchor stores, tourism site strengthen over time. A healthy assortment of all these factors increases the attractiveness of the shopping mall. However, studying individual choice decisions would not help us to understand the behaviour of the market as a whole.24 3 4
  • RESEARCH METHODOLOGY Research Methodology Neuman defines research as: ―Research is a collection of methods people use systematically to produce knowledge‖25. Research has also been defined as an organized and deliberate effort to collect new information or to utilize existing knowledge for a new purpose, seeking to answer worthwhile and fundamental questions, by employing valid and reliable techniques. In addition, research involves the use of more appropriate tests to justify the methods employed, and provides logical and objective data collection where conclusions can be drawn. Ultimately, it contributes to the gaining of new knowledge and a better appreciation for the issues involved by the researcher.26 4.2 Research Objectives: How are the consumers‘ shopping habits changing with upcoming retail formats, specifically malls? What are the determinants of consumers when choosing between a shopping mall and the unorganized market? What is the impact of the development in real estate industry on the organization of the retail industry in Kerala? 25 Neuman W.L. (2000), Social Research Methods: Qualitative and Quantitative Approach, 4th Edition, London: Allyn and Bacon in Kapur, R. (2006) 26 Gill J. and Johnson P. (1997), “Research Methods for Managers”, 2nd Edition, Paul Chapman Publishing Limited, London in Kapur, R. (2006) “Globalization of high street UK brands in the Indian retail market and its impact on the culture and buying behavior of Indians”, The University of Nottingham. Chapter:4 To answer these research questions I would look into the past trends in the Kerala retail industries and Kerala real estate. With the help of the data that I have collected, I would compare the past trend with the present trends with respect the gradual movement in the consumer shopping habits in the state and the factors leading to it. With the continuing drift in their shopping habits, the future prospects of organized retailing in Kerala would also been discussed. 35
  • RESEARCH METHODOLOGY 4.3 Qualitative vs. Quantitative Research: These research methods are two major approaches employed by researchers. These two methods are distinct from each other. Qualitative research: It seeks to describe and decode the meaning of naturally occurring phenomena in the social world through interpretative approaches and thereby provides ―well-substantiated conceptual insights that reveal how broad concepts and theories operate in particular cases‖. Due to the direct access to the social behaviours of humans, qualitative researchers are able to collect information ―in a detailed and complete form‖, and are allowed to examine social phenomena in depth and offer insightful depictions. Quantitative research: Emphasizes measurement and analysis of causal relations among variables and tests general propositions using the hypothetical deductive model. Quantitative research ―imposes scientific meanings on members to explain a singular, presumed-to-be true reality‖. Here, I have used qualitative research which can provide ‗in-depth‘ understandings of research subjects in comparison with quantitative research. Quantitative research methods were also analyzed while choosing a method of research for this study, however the behaviour of consumers cannot be quantified and thus it would be difficult to analyze. Thus qualitative research methods have been used.27 Data Collection: Both primary and secondary data were used in order to conduct this research. The three main types of primary research that I have used here are observation, interviews and surveys. The secondary research was carried out by using news paper articles, internet reports, and academic journals from sites such as Jstore, Wikipedia, textbooks, industry reports, etc. Data from academic journals and textbooks was particularly useful in reviewing the existing literature on consumer buying behaviour and their choice determinants for shopping malls. 27 Neuman W.L. (2000), Social Research Methods: Qualitative and Quantitative Approach, 4th Edition, London: Allyn and Bacon in Kapur, R. (2006) Chapter:4 4.4 3 6
  • RESEARCH METHODOLOGY 4.5 Research Instrument: In marketing research the main research instrument used in collecting primary data is the Questionnaire. For this research, a questionnaire was structured for both consumer buying behaviour and the for the consumer perception on malls. The questionnaire was having close ended and very few descriptive questions. Questionnaire was put to the customers. It had a set of option and the respondent made a choice among them. 4.5.1 Interview/Survey Sample: 2. Retailers: the ones who had already opened their outlets in the shopping malls of Cochin, Kerala. For conducting these interviews, purposeful sampling was used. Purposeful sampling selects information rich cases for in depth study. This could be a help as most of these retailers already had their outlets in the unorganized markets before opening shop in the shopping malls. Thus, they could give their views on the consumers‘ shopping habits in the malls and how was it different from the outlets in the markets. Qualitative research typically uses a relatively small sample yet focuses in depth on it. Therefore, a sample size of 15 respondents was chosen for taking the interviews of retailers. Chapter:4 For conducting the interviews/survey, two different sample populations were chosen: 1. Customers: a simple random sampling technique was used. A simple random sample is obtained by choosing elementary units in search away that each unit in the population has an equal chance of being selected. A simple random sample is free from sampling bias (Mugo, 2007). This sample consisted of consumers living in Kerala (mainly Ernakulum district) who have seen a drastic change in the organization of the retail scenario in Kerala and are familiar with it. Random people were chosen from family, friends and employees who are a part of the consumer group and are a witness to this transition. To get a wider view, the respondents that were chosen belonged to diverse age groups and income levels. The sample size for this was 80. 3 7
  • RESEARCH METHODOLOGY 4.6 Research Procedure: To start this research I first went to the malls and spent time observing the gradual shift which occurred during the past few years. Then I gathered few articles relevant to my area of study. Reading that, I formulated the literature review which consisted mostly of consumer buying behaviour and their choice determinants for choosing a shopping mall. After a careful examination of the literature, questionnaire was formulated for conducting the interviews/surveys from the customers/retailers who had opened their outlets in the malls and the Kerala consumers. For conducting the research, 3 major malls in Cochin were visited. Conducting the interviews from the retailers was not a very easy task to do. Even though I approached them in their non peak sale time of the day, they seemed to be busy and disagreed to give the interviews. However, I got hold of 15 retailers from different malls and conducted their interviews and writing down their responses side by side. For the interviews of the consumers, approaching them was quite easy as most of them were familiar with my area of study. Face to face interviews with some and telephonic interviews and online survey with the others helped me complete my field research. The data was collected and compiled using Google docs which made the analysis easy. Chapter:4 The purpose of the interview and the study was explained clearly to each interviewee before taking the interview. The data that was collected was then analyzed and results were evaluated. Some recommendations for the future were then suggested for the retailers and the mall management from the side of customers. 3 8
  • FINDINGS AND CONCLUSIONS Findings and Conclusion All the data has been collected through opinion survey conducted by me. 5.2 Consumer perspective 1. Is malls a blessing to „God‟s own country‟? When this question has been popped to the public majority of them supported it as a blessing to the society. They even pointed out that malls make them feel good about their state in race of being par with the other states in the country whereas the minor group even criticized malls as an unwanted luxury and a curse to the morality of the society. Majority of the sample makes a visit to the mall between 1- 2 times in a month, followed by 3-5 time visits and more than 5 time visits. While a small portion of the sample doesn‘t visit a mall quite often. It has also been observed that no one visits a mall on a daily basis. That shows that people visits malls with a reason. Chapter:5 2. How often do you visit a mall (in a month)? 39
  • FINDINGS AND CONCLUSIONS 3. With whom do you go to a mall? Considering the high ratio of youth in the survey sample it has been noticed that majority goes to a mall with their friends, whereas middle aged or married individuals visit mall with their family or colleagues and very less part of the group prefer to visit the mall alone. It has been also found that people even switch over the group accordingly with the purpose of visit to the mall. It can be observed that people prefer visiting mall on weekends than any other day. But it is also visible that other majority of people are those who don‘t mind to make a visit on any random day. Other group can be termed as offer seekers who visit mall during offers or seasonal. Chapter:5 4. When do you generally go to malls? 40
  • FINDINGS AND CONCLUSIONS 5. What is the average time you spent in a mall? It has been found that maximum number of people usually prefers to spend their time between 1-3 hours in a mall. Interestingly it is also noticed that the number of people who spend less than 1-hour in a mall and the number of people who spend more than 3-hour in a mall, in the sample size, are same. 6. What does the word „mall‟ signify in your life? Chapter:5 Here, it is seen that majority consider mall as a hangout destination more than a shopping destination. Since, Kerala has quite number of local movie halls I personally feel that people doesn‘t consider mall for movies. Whereas, people even commented that mall signifies all the above mentioned features to them and it is also observed that for some mall even signify as luxury of life. 41
  • FINDINGS AND CONCLUSIONS 7. Which factor of a mall makes you come back again? The research has been made it even clear that shopping centres in a mall pulls the people back. The ambience of the mall also plays a key role as a pull factor. Come back factor provided through movie halls has been noted limited. Eating joints and vicinity factors keeps the same amount of interest in people. It has been noted that the presence of crowd also attracts people to be there in a mall. Majority among the sample believe malls as an enlarged family shop considering the malls serving capability to every member in the family. The next major group consider malls to an extent as enlarged family shop. Whereas for 20% people it is not a family shop, even people responded that stores like Big Bazaar can be considered as an enlarged family shop but not a mall. Chapter:5 8. Do you think mall is an enlarged family shop? 42
  • FINDINGS AND CONCLUSIONS 9. Do you purchase retail goods from the mall? (Retail goods here I mean fast moving consumer goods like food, personal products, clothing and footwear) As we can see from the data collected, it was a positive response from the crowd regarding the purchase of retail goods from a mall. Majority purchases from mall whereas 25% of the sample responded ‗No‘ towards this query. Offers attract people – this point has been further concreted with this result. It can be noticed majority among the group visit the mall without a plan for purchasing but when they see an offer/product product attractive they end up purchasing. Festive seasons all pull the crowd considering the promotional offers during that season. People have even responded that money also matters them while it come to purchase. Chapter:5 10. How often you purchase from a mall? 43
  • FINDINGS AND CONCLUSIONS 11. Scale your preference for shopping from a mall to a local retail store? (1 - From Malls; 5 - from Local retail store) It can be observed that people choose to be in the average mark when it comes to their preference for shopping from a mall to a local retail store. Keeping ‗3‘ as the average mark we can notice that people tend to have more affinity to purchase from mall than from a local retail store. Although the affinity ratio is lead by a small proportion we can presume it in the long run that people will be more likely to purchase from malls. 12. Do you think malls lacks the personal touch which local retail store offer? Chapter:5 It is widely felt among the people that malls lack the personal touch provided by a local retail store. We can see that 57% people feel it lacks the personal touch where other 47% doesn‘t feel so. 44
  • FINDINGS AND CONCLUSIONS 13. Do you believe in the promotional programs offered by the malls? 50% of the people have responded that they believe in the promotional programs offered by the malls to an extent. Whereas it has been found that another 34% believe in the promotional programs. Therefore we can see people generally get attracted towards the promotional programs and it can be used by the malls to increase their foot fall. According to the data collected we can see that people widely claim malls not as a part of their daily life. The other closer group prefer considering it to an extent as a part of their daily life. Whereas 21% people like to think malls as a part of their daily life while others were unable to fix an opinion. Chapter:5 14. Do you think malls have become a part of your daily life? 45
  • FINDINGS AND CONCLUSIONS Considering the age wise distribution of people in the sample we can find the average amount of spending in a mall: Spend per visit in shopping mall in the age BETWEEN group 20-25 yrs. Up to Rs.200 Rs.200-500 Rs.500-2500 Rs.2500 & Above 6 (7%) 52 (65%) 18 (22%) 4 (13%) Spend per visit in shopping mall age group BETWEEN 25 – 35 yrs. Up to Rs.200 Rs.200-500 Rs.500-2500 Rs.2500 & Above 0 (0%) 34 (43%) 40 (50%) 6 (7%) The main purpose of visiting the mall is fun & entertainment, family outing and shopping at the last. The average amount spend by the consumers varies in different age groups. Consumers in malls were mostly in the age group of 20 – 25 yrs and 25 - 35. They came to the mall mainly for the entertainment. 5.3 Retailers‟ Perspective Chapter:5 The interviews that had been taken from the retailers who had already opened their retail outlets in the malls have been analyzed in the following section. The responses by the retailers have been listed in a table format question by question and then analyzed later using points that have been listed in the literature about choice determinants of mall. The analysis and the observation have been further followed after the research conducted among the retailers. All the retailers who were interviewed had opened their outlets in the malls since a period of less than 2 years. 46
  • FINDINGS AND CONCLUSIONS Q1. Why did you choose to open your outlet in the mall other than the unorganized market? Different retailers gave different responses to this question. The most common reasoning that was given by them was the upcoming trend of mall shopping and the changing customer preferences. As all their needs get fulfilled under one roof and they get the required quality, price and environment, they are attracted more towards the malls. Another reason for the customers getting fascinated to the malls is the hot and rainy weather conditions in Kerala. Other responses included bigger retail space which is not available in the congested unorganized markets, and also for the separation of the commercial establishments from the residential areas. Q3. Do you reach There was a mixed response of this question. Seven of the targeted sales the interviewed retailers were happy with the level in this outlet or as amount of sales level that they were getting in their much as the other outlets? mall outlet as their target was being achieved. Out of them, one women‘s ethnic wear retailer was achieving the best sales level in that outlet out of all others. The reasoning that was given by them was that the customers were attracted by their brand name. However, the other retailers were not achieving as much sales as they did in the unorganized market outlets. Different explanations were given for it. They said that the outlets in the markets were very old and well known to the customers. Other reasons were mall specific such as not much foot fall in the mall and absence of a cinema due to which fewer customers are attracted towards the mall. Chapter:5 Q2. Do you have another All retailers who were interviewed had their retail outlet other than in outlets in unorganized markets of different areas as this mall? well as other malls except two retailers who only had outlets in malls and one who only had another outlet in the unorganized market area. 47
  • FINDINGS AND CONCLUSIONS A variety of promotional tools were being used by the retailers to get the customers‘ attention towards their outlets in the malls. End of season sales was the most common form of the promotional schemes being used. Customer databases were maintained by most of the retailers and different schemes were provided to them by different retailers. These included informing the clients regularly about change of stock and in store promotions, coupon schemes, etc. Some of the bigger country wide known brands were also advertised in magazines, newspapers as well as television. Word of mouth and brand loyalty were also used as other modes of promotions. Q5. What do you think can be done to attract customers to a mall? What do you think of anchor stores? Attraction of customers is the most important for the success of malls. According to the responses provided by various retailers, location, having a good mix of brands within the mall, having an ambassador for promoting the mall or the various branded outlets present in it, timely promotions using banners and posters, economical prices of merchandise, provision of regular weekend and monthly schemes to keep the customers loyal, organization of events and programs within the mall, positive behaviour of the staff, cleanliness, promotion of the mall as a whole instead of the different retail outlets present in the mall are the various methods of pulling the customers towards the mall. One of the retailers also held a fashion show within the mall to promote their outlet. Positive responses were also provided by majority of the interviewees about having an anchor store in the mall as it is a positive point to have such an outlet in the mall and has advantages like “it is a great help in attracting customers” and they visit the other shops as well, it increases “walk – ins” into a mall. One of the retailers also believed that “the crème customers”, who have the buying capacity are attracted towards the anchor stores. However, one of the retailers differed in his views about having the anchor store in the mall. According to him, “although the anchor store attracts customers towards the mall, but the other brands suffer due to it”. Chapter:5 Q4. What do you do to attract customers to your outlet? 48
  • FINDINGS AND CONCLUSIONS Q6. What do you think of Majority of the retailers say that a major part of the consumers‘ perception of customer base still perceives that the merchandise mall shopping? in the mall is highly priced. According to one of the retailers, “50 percent of the consumers think that products in the malls are expensive and so they just hang out in the mall and go. For shopping they go to the markets which they perceive to be cheaper”. However, some of them also believe that the mindset of the consumers is changing and they are getting more convinced about the prices. Also, the prices of branded products are found to be similar in the malls as well as the unorganized markets. The customers also tend to receive many benefits if they come to the malls for shopping which compensates for the high price factor. These include better infrastructure, comfort of one stop shopping, good experience and ambience, protection from the harsh Indian weather conditions, etc. Several facilities are made available to the consumers when they visit a mall. Firstly, ―they can shop for so many things at one place, they can eat and hang out and get entertained, all this can be done along with shopping‖. Other than this, comfort, security, parking facilities, air conditioned environment, neat and clean atmosphere and easier commuting are the other benefits that a customer can get when he/ she comes to a mall. Unlike the markets, this also saves time and the customers also get rid of traffic jams. All these factors affect sales because “this is why people come to malls” and “any mall having all this attracts customers”. “If people don’t have to shop then also they can come to just hang around with friends. This sometimes affects sales as some people end up purchasing goods.” According to another retailer, “When people come to a mall, they are mentally prepared to spend money.” Chapter:5 Q7. What benefits do consumers obtain from coming to a mall rather than the unorganized market? What effect do these benefits have on sales? 49
  • FINDINGS AND CONCLUSIONS Few of the respondents have mentioned various criteria for this decision, the major being location of the mall or the market, foot fall of the mall, consumer preferences for the mall and government policy. However, a good number of the retailers would prefer to open their next outlet in the upcoming malls of the country as “markets are doing better currently but in the future malls would be the only thing” and “the coming time will see an end of the markets”. “It will take time for the malls to develop and grow; patience is required to get sales in the malls however the future prospects are bright”. Two of the retailers also had tie ups with two of the biggest mall developers of the country; this was one of the reasons that they opened their outlets in the mall, and would plan any further expansions within the malls developed by those companies. Chapter:5 Q8. If you have to open a new outlet, would you choose to open it in the upcoming malls? 50
  • FINDINGS AND CONCLUSIONS 5.4 Findings 5.4.1 Choice Variables for Shopping Malls 5.4.1.1 Anchor Stores: The anchor tenants are an important part of the tenant mix as they help to generate a lot of shopper traffic to the mall. It has also been said that the mall management should also take into consideration its consumer drawing power to the mall, as more consumers would also lead to the profit generation for other stores in the mall as well. All retailers have agreed to this fact that anchor stores are major factor responsible for pulling crowd towards a mall. There are a variety of anchor retailers in Kerala. They include US and European chains like McDonald's, Lacoste, Pizza Hut, Benetton, Subway etc. This has also led to the emergence of Indian chains such as Shoppers Stop, Reliance fresh and Big Bazaar that can act as anchor stores in a mall. However, one of the retailers also contradicted this fact from his personal experience of having an outlet in the mall, with a very valid point. The departmental stores, which act as anchor outlets, carry a variety of branded merchandise other than non branded ones. If the same brands also have their exclusive outlets in the mall, the anchor stores tend to cannibalize the sales of the individual outlets as most of the crowd is attracted towards them. Although this is a convincing argument, but majority of the retailers have supported the literature that successful anchor stores are a key to increasing foot fall in a mall. It has been said that "Only the ones in favourable locations and having the right format and suitable strategies are likely to remain long-term players". However, in the Kerala context, the factor of location of a shopping mall does not seem to affecting the consumers‘ visits to these malls. As it has been discussed above that there are only a few shopping malls that have come up in the country and the consumers are finding it to be a very novel experience to visit a shopping mall for shopping. They are still overawed by this new method of shopping, therefore they even travel long distances to capture the advantage of getting everything under one roof. Chapter:5 5.4.1.2 Location 51
  • FINDINGS AND CONCLUSIONS However, their daily needs are still fulfilled by the unorganized markets that are situated close to their homes. With the speedy development in the number of shopping malls in the state, soon there would be a shopping mall in every area. The consumers would then prefer to visit the malls that are closer to their homes, for their daily needs as well. Thus, location has still been considered a significant factor while choosing a shopping mall. 5.4.1.3 Shopping experience Mall developers have tried to cope up in the experience economy by providing the consumers with good store ambience as well as entertaining and amusing experiences apart from shopping. They have added movie theatres or keep organizing live performances for the consumers in which they can get engaged and enjoy their experience while shopping in the mall. Consumers these days are becoming very variety seeking and searching for novel and unique experiences. The shoppers in the Kerala market also tend to look at visits to stores and malls as an enjoyable experience, an outing for the family, receiving value for money while shopping and also as an entertainment available there. The players in the retail industry who are competing with one another, are trying to come up to the expectations of shoppers giving the shoppers a great international shopping experience, a wonderful ambience and something or the other, for everyone in the family. Thus the overall shopping experience which includes shopping, leisure as well as entertainment is a key determinant of mall attractiveness. Image The authors of ―Shopping and the Fear of Others‖ have found out that shopping malls have an important role to play in the formation of the social identity of the shoppers28. Self image is also exceptionally important for Keralites, however, they do not tend to attach self image with shopping in a shopping mall though. This factor has been falsified in the findings because Kerala has not yet reached that stage of development that it tends to associate image with a shopping mall. The unorganized market in Kerala still has a very significant proportion; therefore, all consumers have to visit the unorganized markets for the fulfilment of some or the other needs they face. 28 Arnould E. (2000), Reviewed Work(s): A Theory of Shopping by Daniel Miller and Shopping, Place, and Identity by Daniel Miller; Peter Jackson; Nigel Thrift; Beverly Holbrook; Michael Rowlands, Journal of Marketing, Vol. 64 No. 1, pp 104-106 Chapter:5 5.4.1.4 52
  • FINDINGS AND CONCLUSIONS It does not affect his/ her personality or status. Thus image has not been considered a substantial factor in the Kerala context, when the consumer chooses between a shopping mall and the unorganized market for making purchases. 5.4.1.5 Price Sensitivity While looking at the Kerala context large part of the population belongs to the middle income group who cannot afford these luxurious brands. Therefore, this was one of the additional major aspects that came up in the research. Although, from secondary data it has been found that the income level and the purchasing power of the Kerala consumers is increasing, majority of the retailers are still in the perception that the most of the consumer population is still price sensitive. Even though a market for high end luxurious brands exists in the state, a major chunk of the population does not buy these brands. However with globalization taking place throughout the world, the consumers are getting the hang of the branded products and their demands are changing with growing income levels. From the consumers‘ perspective, it has also been seen that a high price level in the malls does not stop them from purchasing what they want. On the whole, there has been seen a slight positive change in the consumer spending habits with respect to the price. Thus, it can be concluded that the consumers shopping habits are changing slowly but surely. Conclusion From the analysis above, it can be inferred that there is a slow and steady change that is taking place and the preferences of the Kerala consumers are shifting from shopping in the unorganized markets to shopping in the newly developed malls. The Kerala consumers‘ population is varied among diverse income segments. According to secondary data, there exists a significant difference in the shopping patterns of consumers across these income segments and there are no uniform trends in their buying behaviour. Researchers who have done their research on the organized retailing sector of Kerala have also said that organized retailing has made headway in the upper class. However, even in this segment, items such as milk, fruits, vegetables and a significant portion of ‗through-the month‘ purchases seem to be done at traditional outlets. Chapter:5 5.5 53
  • FINDINGS AND CONCLUSIONS The middle income class prefers shopping for processed food and personal care in supermarkets and fall back on traditional outlets for bulk shopping. For them, organized retail outlets seem to be associated with branded items/special purchases. Organized retailing does not seem to have made an impact on the lower class, except for ‗curiosity‘ shopping 29. This fact can also be supported by the findings of my study as it was conducted on consumers who belonged to varied income groups. On the whole this study has found out that a large number of consumers have started choosing the malls over the unorganized markets for the purpose of shopping which is also associated with leisure. The attributes of the malls, which attract the consumers towards it and are responsible for this change of choice of the consumers, have been represented in the form of a decision tree. In this chapter, the analysis has been done by comparing the findings with what has been said in the literature. A few extra points that came up in the findings have also been analyzed and this fills the gap in the studies that have been conducted. With consumer demographics becoming more and more favourable to the organized segment of the retail industry and the increase in the availability of retail space and a skilled workforce, there has been a complimenting growth in retail chains, multi brand outlets and integrated shopping malls. A variety of newer retail formats are being introduced. Enormous networks of stores are getting scattered on the Indian landscape, starting with larger cities and then moving on to smaller towns as well. 29 Chandrasekhar P (2001), “Retailing in India: Trends and opportunities”, Business Line: Catalyst, in http://www.afferguson.com/bulletin/ret-pri.htm accessed on 19 August 2007 Chapter:5 The infrastructure and supply chain mechanisms of malls are getting organized and spreading across the state. This brought about a revolution in shopping in terms of the consumer buying behaviour. The introduction of these larger and more diverse formats is providing the consumers with more options to shop from and novel experiences for the Kerala population. 54
  • SUGGESTIONS Suggestions The organized retailers can be suggested to target the untapped middle income group population of Kerala. Although, it may not be so easy to change the mindsets of these consumers might not be an easy task, it can be a means of attracting the global retail giants that want to enter into the Kerala economy. Another recommendation for the retailers would be that they should build relationships with their existing customer segments. The retailers should be well versed with the consumer preferences and they should also offer them additional services apart from the products. For developing loyal customers, the employees of the retail organizations would play an important role. Therefore, the must hire the right kind of employees and train them. 2. Long term advertising: I have seen Mall owners, waiting for the completion of their malls to start its space marketing. This is not just a sheer waste of time, but also a suicide for the mall! Tenants don‘t come together; they come, when they are looking for a space or expansion. My observation is that, the mall marketing should begin, right from when the Mall 3D drawing is ready. The construction of the mall might take, 1-2 years. And if the marketing starts at this time, the prospective tenants of the mall gets 2 years to prepare and plan their new shop in that mall. This will allow the mall to open itself, with all the shops ready for business. 2 years is a good time, to select and choose the best tenants Chapter:6 1. The Facilities at the mall: The mall should be a place, where one should spend a good amount of time. For that there should be facilities to eat food, sit, rest, pray, entertainment, clean toilets, breast feeding, smoking areas etc. Why is this important? Because any customer who goes out for meeting these needs may not come back again! You have to retain as many people as possible in the mall, so that they get exposed to all the shops in the mall, which might translate to business. 55
  • SUGGESTIONS 3. Tenant Mix: Many mall owners don‘t know what a tenant mix is! And those who got their strategies wrong, and are desperate to fill the spaces will not think of a mix either. What is tenant mix? It is the right mix of shops catering different services to the same defined customer category. So if it‘s a ladies mall, it will have shops like ladies dresses, ladies shoes, beauty parlours, purdah shops, kids wear bridal boutiques etc. And not car accessories shop, or a whole sale outlet for hardwares etc. A poor tenant mix can really kill the shops in a mall, and the mall itself! A good tenant mix is possible only if you start marketing your mall, during its construction phase itself. 4. Mall Branding: Malls have to be branded well. So what‘s branding? Branding is creating the right impression in the minds of the people, as to how we like people to think of us. So you should do all that it takes to brand the mall effectively, so that your target customers sees you the way you wish them to see you. This will help the mall survive when better and bigger malls come up in future; or survive when the market is slow and customers become scarce. Chapter:6 5. Mall Events: Customers basically shop at the mall for two main reasons, one is the experience or ―good feeling‖ and other is the ‗variety‘ of goods they can purchase. We can do this by structuring the mall to include elements that is continuously changing. For example, it can range from what malls do now (like organizing shows and programs) to having commercial spaces that is let out to modern business gypsies or a traditional ‗chanda or mandi‘ version of a mall range, where you have one theme for a specific day of the week, and people who sell that visits the mall to get access to these 100s of temporary outlets. Since these themes change every day, there is a reason for people to come and visit it every day! This is in no way an easy task, it needs a strong visionary team, and strong management team from the mall mgt side, it also needs the cooperation of the retail shops. 56
  • CONCLUSION Conclusion The changes in the consumer behaviour, is bringing about change in retail industry, as Kerala migrates from the unorganized to organized retail. The past 3-4 years have seen increasing activity in retailing. And, various business houses have already made investments in this sector years. Though the retailers will have to face increasingly demanding customers, and intensely competitive rivals, more investments will keep flow in. The share of organized sector will grow rapidly. Retailing in Kerala is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants. The state is witnessing a period of boom in retail trade, mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households. More and more corporate houses including large real estate companies are coming into the retail business, directly or indirectly, in the form of mall and shopping centre builders and managers. New formats like super markets and large discount and department stores have started influencing the traditional looks of bookstores, furnishing stores and chemist shops. The retail revolution, apart from bringing in sweeping, positive changes in the quality of life, and is also bringing in slow changes in lifestyle in the smaller towns of Kerala. Increase in literacy, exposure to media, greater availability and penetration of a variety of consumer goods into the interiors of the country, have all resulted in narrowing down the spending differences between the consumers of larger metros or states and those of smaller states like Kerala. Lastly I want to conclude my project in some points: The customers are attracting towards shopping malls & retail outlets. The young generation is fashion & show-off conscious so retail outlets are mainly focused on them. Chapter:7 The shopping malls & retail outlets are targeting to middle class customers because the purchasing power of this class is rapidly growing as well as the class is also growing. 57
  • CONCLUSION Most of the family wants to purchase from big showrooms and malls because there are no bargaining system so they have a trust that there is no cheating. The main strength of most of the retail outlets are providing attractive offers to attract customers. Big retail stores are running customer loyalty programmes which has increased profits and no. of customers, and increase their switching costs. It can be concluded from the research that the consumer markets in Kerala have potential for the future development of the retail industry as the market is growing, government policies are becoming liberal and the technological developments in the state are favourable for operations in Kerala. Due to these promising factors, more and more retail investors have been encouraged to invest into the Kerala market which has further impelled investments in the real estate industry. However, the success of malls in the long run in the Kerala market would involve attraction of diverse consumer segments towards the malls which includes diverse income groups, nuclear families, working women, etc. The provision of wide choice and the comfort of being able to shop everything under one roof would attract all these groups of buyers. 6.2 Limitations 30 Penaloza, L., (1994) “Atravesando Fronteras/Border Crossings: A Critical Ethnographic Exploration of The Consumer Acculturation of Mexican Immigrants”, Journal of Consumer Research, Vol 21, pg 32-54 in Kapur, R. (2006) “Globalization of high street UK brands in the Indian retail market and its impact on the culture and buying behavior of Indians”, The University of Nottingham. Chapter:7 Every piece of research has its own set of limitations which can arise during the course of conducting it. Penaloza suggests that the researcher should be careful enough to avoid any kind of bias with the research subjectivity. This is mainly because of the reason that researchers working in their own culture tend to avoid keeping a critical distance from their work as they may hold a set of assumptions about their own culture hence influence the interpretation of data analysis30. 58
  • CONCLUSION This research faced the following limitations: This research is based on analyzing a Kerala perspective and I, being a Keralite, had awareness of a lot of facts which might have influenced the results at some point of time. • Kerala is possessing limited number of malls in the state and most of the malls has been concentrated or built in the Cochin area, which emerging business hub, of the state. Therefore the study has been conducted among the people who live in Cochin area, so the study may not provide an entire overview of Kerala. • The sample size of the population being tested should be large enough to increase its validity. However, the findings and analysis are based on semi-structured interviews taken from fifteen retailers and eighty consumers which can be unrepresentative of the population. Chapter:7 This research mainly relies on secondary sources such as the research done by other people; hence it was difficult to come to strong recommendations. 59
  • CONCLUSION Appendices Appendix – I Questionnaire for the consumers from mall 1. Is malls a blessing to ‗God‘s own country‘? Yes No 2. How often do you visit a mall (in a month)? 1-2 times More than 5 3-5 times Almost daily Never 3. With whom do you go to a mall? Alone Colleagues Friends Others: Family 4. When do you generally go to malls? Almost every day Public holidays Weekends Week days Seasonal (during Onam, Christmas etc) When there is an offer/program 6. What does the word ‗mall‘ signify in your life? Hangout destination Eating joints Shopping Others: Movies Chapter:7 5. What is the average time you spent in a mall? Less than 1 hour 1-3 hour More than 3 hour 60
  • CONCLUSION 7. Which factor of a mall makes you come back again? Shopping centres Ambience Movie halls Vicinity Eating joints Other 8. Do you think mall is an enlarged family shop? Yes 9. Do you purchase retail goods from the mall? Yes 10. How often you purchase from a mall? Whenever I go When there is particular offer Festive season (Onam, Christmas, etc) No No I go, when I see a offer/product attractive I buy Other 11. Scale your preference for shopping from a mall to a local retail store? (1 for mall and 5 for local retail store) 12. Do you think malls lacks the personal touch which local retail store offer? Yes No 13. Do you believe in the promotional programs offered by the malls? Yes No Chapter:7 14. Do you think malls have become a part of your daily life? Yes No 61
  • APPENDICES Appendix – II Questionnaire for interview of the retailers in the Mall 1. Why did you choose to open your outlet in the mall other than the unorganized market? 2. Do you have another retail outlet other than in this mall? 3. Do you reach the targeted sales level in this outlet or as much as the other outlets? 4. What do you do to attract customers to your outlet? 5. What do you think can be done to attract customers to a mall? What do you think of anchor stores? 6. What do you think of consumers‘ perception of mall shopping? 7. What benefits do consumers obtain from coming to a mall rather than the unorganized market? What effect do these benefits have on sales? 8. If you have to open a new outlet, would you choose to open it in the upcoming malls? 62