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Mall mania
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  • 1. Mall Mania in India – Changing Consumer Shopping Habits Mall Mania in India – Changing Consumer Shopping Habits A dissertation submitted to The University of Nottingham for the degree of Ma in Management Kanika Taneja Business School, University of Nottingham September, 2007
  • 2. Mall Mania in India – Changing Consumer Shopping HabitsACKNOWLEDGMENTI deeply thank God and my family for showing me the way, no matter how difficult thetime was.For his aspiring and invaluable guidance, I wish to express my heartfelt gratitude to mySupervisor, Dr. Andrew Smith, without whose support this dissertation could not havebeen successfully realized.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 andsupport.Finally, special thanks to all my friends for their constant support and encouragement,and making this year in Nottingham memorable. 1
  • 3. Mall Mania in India – Changing Consumer Shopping HabitsAbstractFor the current generation of consumers, the meaning of shopping has changed.It is not just a mere necessity, as it was earlier, but much more than that. Thefactors that affect store choice and draw customers to the shopping centreinclude space, ambience, and convenience and moreover an array of choiceunder one roof. The growth of integrated shopping malls, retail chains andmulti-brand outlets is evidence of consumer behaviour being favourable to thegrowing organized segment of the business. Space, ambience and convenienceare beginning to play an important role in drawing customers. Malls, which arenow anchored by large outlets such as Westside and Lifestyle and are resided bya lot of Indian and international brands, are also being seen as image benchmarksfor communities.Thus, this dissertation aims at studying the changing shopping trends ofconsumers in the Indian economy. For doing this, semi structured interviewsfrom the Indian retailers as well as consumers have been used as a tool. Variousfactors on which the Indian consumers base their choice of going to the shoppingmall or the unorganized markets have been analyzed in this research. 2
  • 4. Mall Mania in India – Changing Consumer Shopping Habits Table of contentsACKNOWLEDGEMENT Page 1Abstract Page 2List of Tables and Figures Page 7Chapter One Introduction Page 8 1.1 Background of the Study............................................................8 1.2 Research Objectives ..................................................................10 1.3 Chapter Summary ……….........................................................11Chapter Two Literature Review Page 15 2.1 Introduction................................................................................15 2.2 Definition of Shopping .............................................................15 2.3 Types of Shoppers..................................................................... 18 2.4 Consumer Buying Behaviour ..................................................21 2.5 Organization of the Retail Industry ........................................25 3
  • 5. Mall Mania in India – Changing Consumer Shopping Habits 2.6 Types of Retail Formats .............................................................26 2.7 Shopping Malls ...........................................................................30 2.8 Determinants for Choice of Shopping Malls………...............31 2.8.1 Number of Stores and the Tenant Mix………..........34 2.8.2 Location of the Shopping Mall ..................................37 2.8.3 Shopping Experience………………...........................38 2.8.4 Shopping Mall Image...................................................40 2.9 Conclusion………………………………………………............41Chapter Three Methodology Page 42 3.1 Introduction..................................................................................42 3.2 Research Objectives.....................................................................43 3.3 Qualitative vs. Quantitative Research ......................................44 3.4 Data Collection………….............................................................46 3.4.1 Secondary and Primary Data.......................................46 3.4.2 Interviews ......................................................................48 3.4.2.1 Interview Sample............................................50 3.5 Research Procedure .....................................................................52Chapter Four The Indian Scenario Page 55 4
  • 6. Mall Mania in India – Changing Consumer Shopping Habits 4.1 Introduction ………………………………................................55 4.2 Past Trends of Shopping in India .............................................56 4.3 Conclusion ……………………………………………………...58Chapter Five Findings and Analysis Page 60 5.1 Retailers’ Perspective ..................................................................60 5.2Consumers’ Perspective ………...................................................68Chapter Six Discussion Page 80 6.1 Introduction ...................................................................................80 6.2 Choice Variables for Shopping Malls…….................................81 6.2.1 Anchor Stores ………………………………………….81 6.2.2 Location…………………………………………………83 6.2.3 Shopping Experience ………………………………....84 6.2.4 Image …………………………………………………...85 6.2.5 Price Sensitivity ………………………………………..86 6.3 Interdependence of the Retail and Real Estate Industry..........88Chapter Seven Conclusion Page 89 5
  • 7. Mall Mania in India – Changing Consumer Shopping Habits 7.1 Introduction...................................................................................89 7.2 Recommendations........................................................................90 7.2.1 Recommendations for the Government…………….90 7.2.2 Recommendations for the Developers………………92 7.2.3 Recommendations for the Retailers………………….93 7.3 Limitations…..................................................................................93 7.4 Conclusion …..................................................................................95References Page 96Appendices Page 130 6
  • 8. Mall Mania in India – Changing Consumer Shopping HabitsList of Tables and FiguresTable 1 - Motives of Shopping By Tauber (1972) ......................................17Table 2 – Store Based Retail Formats……………………………………..29Table 3 – Profile of Retailers Interviewed………………………………..51Table 4 – Retailers’ Perspective…………………………………………...60Figure 1 - Framework to Understand Shopping Behaviour……………22Figure 2 – A Two Dimensional Matrix of Consumer Buying..................24Figure 3 – Process of Format Selection………………………....................27Figure 4 – Store Choice Model for Evolving Markets...............................32Figure 5 – Experience Realms and Shopper Preferences..........................39Figure 6 – Shopping Malls Choice Variables…………………………….87 7
  • 9. Mall Mania in India – Changing Consumer Shopping HabitsChapter OneIntroduction1.1 Background of the StudyThe real estate market in India continues to be on its buoyant growth trend. Theentry of global players and international equity management firms into the sectorpoints to the abundance of enthusiasm and confidence that the investors havetowards the potential and prospects of the sector in the years to come. Thedemand for commercial space for organized retailing is expected to reach 200million sq. ft. by 2010 (Times Property, July 13, 2007). The retail sector in India,which is dominated by small and unorganized entrepreneurs consisting ofstandalone stores, boutiques and kirana stores, is radically changing its face.There has been a massive development of new retail formats such as malls,hypermarkets, supermarkets and lifestyle stores. The organised sector representsa mere 2 per cent share of this market (Business Today, 1999). It is very low ascompared to other developed economies of the world (Sinha and Banerjee,2004). However, as the spending power in the economy is growing fast, thisdevelopment has gained importance not only in the metropolitan cities but alsoin the Tier II and III towns. These upcoming formats are giving 8
  • 10. Mall Mania in India – Changing Consumer Shopping Habitsconsumers a lot to spend on, especially with existing players such as Pantaloon,Shopper’s Stop and the Tata and RPG Group Scaling up fast and the new playerssuch as Birlas and Sunil Mittal investing a lot in the retail market (HindustanTimes, New Delhi, July 22, 2007). With this transition taking place, the shoppingbehaviour of consumers is likely to change as these formats were not in existencein the country until recently.In these circumstances, in which these new retail formats are growing at a rapidpace in India, there remains a need among Indian businesses to understand thechanging behaviour of consumers towards shopping in these organized retailoutlets. Also, due to the limited success of these outlets, it is necessary forretailers to be aware of shoppers’ motivations and to understand ways ofattracting the consumers (Sinha and Banerjee, 2004). Till date, there has beenvery limited research on the shopping habits of consumers in the less developedeconomies of the world, India being one of them. In this research paper, Iattempt to fill these gaps, thereby investigating the shopping behaviour of theIndian consumers, particularly with the new retail formats emerging. This studywould concentrate on the behaviour the consumer exhibits while visiting ormaking purchases in the newly opened malls. It would explore the purpose andmotive behind the Indian consumers’ visit to these newly established shopping 9
  • 11. Mall Mania in India – Changing Consumer Shopping Habitsmalls, the values they derive from the shopping trip and their shoppingbahaviour in terms of impulse purchases, time and money spent at the shoppingmall, etc. A final objective is to establish a baseline for examining changingbehaviour in future as developments continue (Millan and Howard, 2007).1.2 Research ObjectivesThere have been many motivations for me to choose this topic for mydissertation. Firstly, there have been massive changes in the demographic factorsof the Indian consumer. Some of the factors include income and consumptiongrowth, increasing literacy levels, changes in family structure and women’s rolein the family, growing role of children as influencers, gradual acceptance offrozen goods as a viable alternative to fresh produce and the growing influenceof TV. These factors have been a driving force of organized retailing in Indiawhich has further driven the growth of the real estate industry with more andmore demand for retail space within malls.The second motivator behind my choice of topic was that it would help me in myfuture career. As my father is into the business of real estate within India, I planto join him after the completion of this course. Also I have always been interested 10
  • 12. Mall Mania in India – Changing Consumer Shopping Habitsin the marketing perspective of it. Therefore, this research would be helpful forme as it would give a clear idea about the consumers in malls.To carry out this research the research questions that have been formulated byme are- • What is the impact of the development in real estate industry on the organization of the retail industry in India? • 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?1.3 Chapter SummaryIn this section, a description of the organization of the whole study is provided,also describing briefly the content of each chapter of the dissertation. Thestructure of the dissertation is as follows. 11
  • 13. Mall Mania in India – Changing Consumer Shopping HabitsChapter 1 will introduce the research area of the study. It will be an overview ofthe purpose and the background of the whole essay. It describes the dissertationcontexts, followed by the brief description of developments taking place in theIndian real estate Industry and the dissertation’s research objectives.Chapter 2 is Literature Review, which sets the academic tone for the research. Itcontains the review and a comprehensive discussion of the rich and diverseliterature available in the area of consumer shopping behaviour. It is divided intovarious sections, which include the motives of shopping, the types of shoppers,the various types of the available retail formats, specifically the description ofshopping malls, consumer’s buying behaviour and their choice determinants forchoosing a shopping mall.Chapter 3 is the chapter describing the Research Methodology which identifiesthe research questions. It explains the objectives and procedures of carrying outthe research. The framework utilized in this study is described and the basis forits use is provided. A detailed description of all the research techniques that havebeen used for data collection and analysis in order to conduct the study has beenprovided in this chapter. 12
  • 14. Mall Mania in India – Changing Consumer Shopping HabitsChapter 4 is the description of the Indian Scenario in context to the retailindustry which gives an overview of the past trends of growth over the years inthe Indian retail and real estate industry from several perspectives and theirinterdependency. It also discusses the consumer shopping behaviour in thecountry prior to the development of shopping malls.Chapter 5 is the Findings and Analysis chapter which reports the findings of theinterviews and discusses reasons for the changes in consumer shopping habitsand provides the results from two main perspectives – the consumers’perspective and the retailers’ perspective.Chapter 6 which is the Discussion reports the results of the in-depth qualitativeinterviews and discusses them against the current literature. The additionalfindings have also been analyzed in this chapter, also giving a framework whichconsumers follow while choosing between a shopping mall and the unorganizedmarket.Chapter 7 is the Conclusion which summarizes the key findings of the entireresearch. It draws together all the key elements of the findings and proposes anoverall conclusion to the research conducted. It also provides some future 13
  • 15. Mall Mania in India – Changing Consumer Shopping Habitsrecommendations for the shopping mall developers and the retailers in India.The limitations of the research will also be provided in this chapter. 14
  • 16. Mall Mania in India – Changing Consumer Shopping HabitsChapter TwoLiterature Review2.1 IntroductionRowley and Slack (2004) describe literature review as “a summary of a subject fieldthat supports the identification of specific research questions”. McCraken (1998)specifies that a literature review offers “deconstruction” of the existing literatureby establishing a survey of the ground and assessing the categories andrelationships that must be investigated, an approach I would attempt toundertake in this research. The aim of this chapter is to examine and present acomprehensive analysis of existing literature on the research topic.2.2 Definition of ShoppingAccording to Dholakia (1999), the rationale for shopping is making physicalvisits to a shopping site. It is considered as a household task as well as a form ofrecreation, relaxation and entertainment. As per the definition of Lunt andLivingstone (1992), going out to shop is a conspicuous moment in consumption(Dholakia, 1999). Most researchers, who have studied shopping behaviour, 15
  • 17. Mall Mania in India – Changing Consumer Shopping Habitsconsider shopping a gendered activity. In their studies, South and Spitze (1994)and Flam and Axelrod (1990), have revealed that shopping is a women’s activityand they were the ones responsible for household shopping. Many otherconsumer research studies about shopping have also had a greater part theirrespondents as women (Dholakia, 1999).Shopping is also considered by Oakley (1974), to having the most positiveattribute of being a leisure activity along with work (Dholakia, 1999). Howard(2007) also believes shopping to be a leisure pursuit and with the rapiddevelopment of shopping centers, both retailers and developers are trying tomake it more of a pleasure activity. Of the many studies done in an attempt toidentify motives of shopping, the one by Tauber (1972) is a prime one. Heidentified eleven motives of shopping in a market based economy apart from theacquirement of products and services and classified them as role playing andsocial experience outside home (Howard, 2007). 16
  • 18. Mall Mania in India – Changing Consumer Shopping HabitsTable 1. Motives of Shopping By Tauber (1972)Source- Howard (2007)Social reasons are important, as Lunt and Livingstone (1992) describe shoppingas a spectacle in which the person who is shopping is both a spectator and aperformer (Dholakia, 1999). However, most of these motives that have beenmentioned in the table can be described as pleasure or leisure related. Manystudies that have followed Tauber’s (1972) study have made an attempt togenerate some evidence from reality to confirm these motives. A lot of consumerbehaviour researches have investigated and found insights into the personal andsituational experiences of shopping and its emotional and behavioural effects(Howard, 2007).Many other studies have also explored into the motives behind shopping. Babinet al. (1994) explained that the purpose of shopping can be utilitarian that isshopping for goods and non utilitarian or hedonic outcomes (Howard, 2007). 17
  • 19. Mall Mania in India – Changing Consumer Shopping HabitsThese two broad motives being product and experiential have been related toemotions while shopping and to the outcomes of shopping by Dawson et al.(1990) (Millan and Howard, 2007). Another research on the key determinantsand motivations of shopping behaviour by Dholakia (1999) has explored andempirically tested three reasons behind going for shopping as ‘interactions withfamily’, ‘utilitarian’ and ‘shopping as pleasure’.2.3 Types of ShoppersThere are many types of shopping behaviours and shopper types (Dholakia, 1999).Broadly, shoppers are divided into two categories based on their objectiveswhich are markedly different. Utilitarian shoppers are those according to whomshopping is a form of work or a task which is to be accomplished (Babin et al.,1994; Batra and Ahtola, 1991), until they make a purchase. The other categoryconstitutes of hedonistic shoppers who give importance to enjoyment andexcitement they experience during the shopping trip. These kinds of shoppersconsider shopping as a leisure activity and derive pleasure from it, along withthe purchase of products (Rook, 1987). Previous researches have also stated thatmajority of shoppers combine both utilitarian and experiential values duringtheir shopping activities (Nicholls et al., 2000) (Nichols et al., 2002). Accordingto Babin et al. (1994), developed market economies have consumers with high 18
  • 20. Mall Mania in India – Changing Consumer Shopping Habitslevels of hedonic shopping values; however, these values are less noticeable inless developed countries (Millan and Howard, 2007).CWHB’s (2002) survey on Where People Shop covering 12 countries of Europehas identified six types of shoppers on the basis of demographic, attitude andbehavioural characteristics. These can be segmented as pleasure seekingshoppers, principled shoppers, discerning food shoppers, independent shoppers,enthusiastic shoppers and negative shoppers. Apart from considering foodshopping as essential, pleasure seeking shoppers enjoy the leisure oriented sideof shopping and mostly shop for designer clothes or stop by at a coffee shop orsnack bar. Principled Shoppers who are mostly older women, are governed bystrong moral principles where shopping is concerned. In terms of food, they buyorganic, natural and non factory framed food and in terms of clothes, they preferto shop for fashion brands. Discerning food shoppers constitutes of thepopulation which buys food in markets and local shops around theneighbourhood instead of going to the supermarkets. The younger populationwith children, a part of the independent shoppers category, shop for clothesmore often than food and they do not prefer to be assisted while shopping,especially for clothes. The enthusiastic shoppers are most likely to shop in streetsrather than going to shopping centers and are influenced by the offers that aregiven in the various retail outlets. The last group of shoppers, known as the 19
  • 21. Mall Mania in India – Changing Consumer Shopping Habitsnegative shoppers has the highest ratio of males who have a negative perceptionof shopping and they cannot spend good time in a shopping area.Consumer Centre (2007) also classifies shoppers into six kinds of shoppingpersonalities. The window shopper visits the shopping mall for leisure, usuallywalks around in the mall with a friend enjoying the whole atmosphere, withoutan intention to buy. The second type is the bargain hunter who prefers to shop atdiscount stores and mostly buys when the retail outlets offer sales. The powershopper does not visit the shopping centers that often, but are very organizedwhen they are shopping. They carry a shopping list with them, buy only whatthey need and know where to get it. The shopaholics have been further dividedinto two segments, one being the consumers who enjoy the whole shoppingexperience, and the other being the compulsive spenders. The second kinds ofshopaholics are people with low self esteem and get pleasure out of spendingmoney, which is not a healthy thing to happen. Their urge to shop returns backevery few days. The shopping phobic people are the ones who just hate theexperience of shopping in a shopping centre and cannot find anything positiveout of going out to shop. They would rather sit at home and shop online. Theindecisive shoppers find it very difficult to decide what to buy. They run aroundeach store just to evaluate the price and quality of one product, which they don’t 20
  • 22. Mall Mania in India – Changing Consumer Shopping Habitsend up buying at all. Lastly, the shopping misers are somewhat similar to theshopping phobics, who just have to take out faults from everything they see inthe shopping centers including the parking lots, prices of the merchandise, thereturn policy of the outlets, etc.In reference to mall shopping behaviour, Bloch et al. (1994) has classifiedshoppers into four segments. They are enthusiasts, raditionalists, grazers andminimalists. Researches like Bellenger and Korgaonkar (1980) and Lesser andHughes (1986) have also emphasized on recreational shoppers (Dholakia, 1999).2.4 Consumer Buying BehaviourThe traditional shopping choice behaviour of consumers was related to needrecognition, when the consumer comes to know that he wants to purchase aproduct. Once the need has been recognized, then he moves on to search forinformation about the product and evaluates the alternatives available to himbefore finally makes a decision to purchase the product. He might visit certainoutlets stocking that product, consult his friends, buying guides or storeemployees about it. Even after making the purchase, he might reevaluate it(Taylor and Cosenza, 2002). 21
  • 23. Mall Mania in India – Changing Consumer Shopping HabitsShopping behaviour of consumers is different in different countries. The reasonsof this varying shopping behaviour are the diverse cultures and the changingeconomies of the various countries (Millan and Howard, 2007). A study of thevarious kinds of shopping behaviours, therefore needs to be done, covering thevarious shopping contexts. Dholakia (1999) has provided a framework tounderstand the shopping behaviour of consumers.Figure 1.- Framework to Understand Shopping BehaviourSource – Dholakia (1999)Solomon (2002) and Stern (1962) have recognized four types of purchasebehaviours namely, planned, unplanned, impulse and compulsive buyingbehaviour. Planned buying behaviour involves information search about the 22
  • 24. Mall Mania in India – Changing Consumer Shopping Habitsproduct to be bought, evaluation of alternatives and then rational decisionmaking. This is time consuming. Unplanned buying behaviour does not involvethis kind of an initial planning. It arises when the consumer is unfamiliar withthe store layout, has a shortage of time or just remembers to buy the productwhen he sees it on the store shelf (Shoham and Brencic, 2003; Hausman, 2000).Impulse buying behaviour occurs when a consumer finds a product on the storeshelf and is unable to resist the urge of buying it. It accounts for a large quantityof products sold that are bought every year and also covers a wide range ofproduct categories. It has been portrayed by many researchers as a signal ofimmaturity, irrationality and risk and an absence of behavioural control (Levy,1976 and Solnick et al., 1980) (Hausman, 2000). Repetitive and excessiveshopping by consumers due to anxiety, boredom and tension is referred to ascompulsive buying behaviour (Solomon, 2002). According to O’Guinn andFaber (1991), compulsive buying has been defined as a ‘chronic, repetitive purchasingthat becomes a primary response to negative events or feelings’. Such consumers arecharacterized by depression, obsession, tend to fantasize and have lower levels ofself esteem (Shoham and Brencic, 2003).Wilson (1998) represented consumer buying for social, recreational andtherapeutic reasons in the form of a matrix. 23
  • 25. Mall Mania in India – Changing Consumer Shopping HabitsFigure 2 – A Two Dimensional Matrix of Consumer BuyingSource – Wilson (1998)Many other factors may also affect purchase decisions. A person is likely to beinfluenced in making his/ her purchase decisions if he/ she is accompanied byanother 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 moneywhen going out with someone. Other situational factors can also have an impacton 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 24
  • 26. Mall Mania in India – Changing Consumer Shopping Habitsand store attribute salience, variety of merchandise available in the store andeven store fragrance have an effect on buying behaviour (Nichols et al., 2002).Shopping frequency is also a significant concept while studying consumershopping behaviour. It is defined as the number of incidences when a product ispurchased by someone in person. The shopping frequency is subjective to thetime and effort that is put by a person and his/ her gender and shoppingresponsibility for the household. It is also determined by the shopping context(Dholakia, 1999).2.5 Organization of the Retail IndustryAccording to Dixon (2005), for the development of cities and towns, the retailindustry has a very important contribution to make (Howard, 2007). The retailindustry these days is not just about selling products in the shops. With a lot ofdevelopment taking place in the retail industry, the retailer, along with that,needs to survey the consumers in the markets, identify and understand theirneeds, provide them with more choice and experience offering competitiveprices. Apart from that, he is also required to maintain a relationship with theconsumers in order to retain them for long(http://www.etretailbiz.com/dec2002/specialfeat.html). 25
  • 27. Mall Mania in India – Changing Consumer Shopping HabitsUnorganized retailing is defined as having outlets or stores run locally by theowner or caretaker of a shop that lacks enough technical and accountingstandardization. Both the supply chain and sourcing are done locally to meetlocal needs (Sathyaraj, 2006).Organized retail stores have been defined as stores characterized by largeprofessionally managed format stores providing goods and services that appeal tocustomers, in an ambience that is conducive for shopping and agreeable to customers(Tata, 2007).2.6 Types of Retail FormatsReynolds et al. (2007) defined a retail format as a physical representation in theform of firm’s activities which relates to the business model developed by theretailers and their business strategy. It is a kind of a retail mix followed by agroup of retailers, which they can present to the customers and where aninteraction with the shoppers can be made. It is an assortment of variables suchas the merchandise, price, ease of payment and the whole, shopping experiencethat is offered to the customers, through which the business context and strategy 26
  • 28. Mall Mania in India – Changing Consumer Shopping Habitscan be conveyed. To convince the target audiences and to compete with otherplayers in the market, the retailer needs to represent himself with an appropriateretail format. While deciding on the retail formats, the retailers ought to assesscertain factors such as drivers of growth, the customers’ profile and theirexpectations, the competitors and the challenges faced from them. The process offormat selection by the retailer is represented in the figure below (Sinha, 2004).Figure 3 – Process of Format SelectionSource- Sinha (2004) 27
  • 29. Mall Mania in India – Changing Consumer Shopping HabitsWith continued development of the retail industry, newer retail formats areemerging everyday. Many researchers have tried to explain as to why thisoccurrence of new retail formats takes place. These explanations have givencredit to demanding consumers, competitive retailers and manufacturers. Somestudies have proposed the idea that value oriented consumers demand for newformats and in a response to these demands; the retailers are driven to developthese. The retailers’ perspective suggests that as a result of expense control andoperational efficiencies, the competitive retailers are pushed towards bringingnew formats. Other researchers explain this phenomenon with the help ofglobalization of the manufacturing base. Rousey and Morgansky (1996) hassuggested that whoever may be responsible for the emergence of newer retailformats, but in the end the consumer is gaining as he is being provided with avariety to chose from (Rousey and Morgansky, 1996).The most common types of retail formats are listed in the table below. 28
  • 30. Mall Mania in India – Changing Consumer Shopping HabitsTable 2 – Store Based Retail FormatsSource – Sinha (2004) 29
  • 31. Mall Mania in India – Changing Consumer Shopping HabitsWith a diverse range of retail formats available, consumers tend to get confused.Consumer try to stick to certain retail formats, however, their preferences changewith the development of newer retail formats. Although patronage patternsoccur, they are specific to certain product categories like food and clothing. Shiftsare bound to take place in other product categories. With the increase in thenumber of retail formats from which the consumers can make choices, theretailer should try to understand the market and consumer shopping habits froma dynamic rather than a static perspective (Rousey and Morgansky, 1996).2.7 Shopping MallsA shopping mall is typically, a shopping complex connected by walkways. It providesshopping as well as entertainment options to the target consumers. It generally, containsone anchor store, which consumes twenty five percent of its retail space. In addition amall contains specialty stores for clothes, accessories, home needs, books, as well as foodcourt, multiplexes and entertainment zones (Sankar, 2005).According to Nicholls et al. (2002), a shopping mall is a place where a wide mixof retail outlets are situated under one roof, and is usually anchored by one or 30
  • 32. Mall Mania in India – Changing Consumer Shopping Habitsmore stores like departmental stores, which also helps to attract consumer trafficto that place. Shopping malls have grown larger over the years and haveexpanded to include service outlets and entertainment providers (Ooi and Sim,2007). They are advertised as both shopping and recreation centers. An addedadvantage of the shopping mall is that all merchandise, entertainment such as atheatre or amusement park, food, services and atmosphere in the mall are allavailable under one roof and it is environmentally protected. This advantage alsoacts as a crowd puller. Moreover, the consumer can shop without the tensions ofany traffic congestions or parking problems, security issues or crime districts(Bloch et al., 1994; Roulac, 1994; Erkip, 2003) (Ooi and Sim, 2007; Nicholls et al.,2002). The collection of shops in the shopping mall is managed together and istaken as one single unit (Prendergast et al., 1998).2.8 Determinants for Choice of Shopping MallIn the views of Sinha and Banerjee (2004), store choice behaviour of a consumeris considered a cognitive procedure. It is believed to be a process of informationprocessing as the brand choice or any purchase decision is considered. It is verysimilar to the decision of making a brand choice except the fact that store choiceis influenced by the location factor, which does not need to be considered whenmaking a selection of brands (Fotheringham, 1988; Meyer and Eagle, 1982). 31
  • 33. Mall Mania in India – Changing Consumer Shopping HabitsAccording to a study conducted by Kenhove et al. (1999), the choice of store bythe consumer was differentiated by the nature of the task that had to be executedby him. The different tasks that were described by the respondents includedurgent purchases, large quantity purchases, difficult job, regular purchases andgetting ideas (Sinha and Banerjee, 2004).Figure 4 – Store Choice Model for Evolving MarketsSource – Sinha (2004)Store choice decision is also driven by other tangible and intangiblecharacteristics provided by the store. They include the store size, format, distance 32
  • 34. Mall Mania in India – Changing Consumer Shopping Habitsfrom home and environment of the store. Mattson (1982) found that store choicecan also be influenced by situational factors such as time constraints and giftversus self shopping, further which can be classified as the competitive setting,the individual’s situational set and the shopping occasion. However, if storechoice is evaluated by the nature of situational factors, then these factors need tobe studied for each shopping visit of the consumers to the various stores, alsolooking into the costs incurred and the benefits made by them during theshopping task (Sinha and Banerjee, 2004).Many other researches are also based on the store choice behaviour of consumersand have given various different viewpoints about the factors on which itdepends. Oppewal and Timmermans (1997) consider the major determinants ofstore choice behaviour to be external factors such as retail floor space, distance,parking facilities, etc (Zhu et al., 2006). Malhotra (1983) suggests that shopperschoose a particular store if the perceived value of visiting that store is the sameas the threshold value attached to it by the shopper. The threshold value is alsoallotted 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 economicbackground, the personality and the past purchase experiences of the consumers.Lumpkin et al. (1985) who conducted a study to compare the behaviour ofyoung and elderly shoppers found that instead of basing their store choice on 33
  • 35. Mall Mania in India – Changing Consumer Shopping Habitsprice and distance from residence, the elderly shoppers chose a store which washigh on entertainment value (Sinha and Banerjee, 2004).Various factors, both spatial and non spatial, have also been discussed inliterature about what attracts shoppers towards a shopping mall (Ooi and Sim,2007). Although a lot of differences have been noticed among the different agegroups while studying their preferences of the shopping malls (Anderson et al.,2003), general shoppers of all age groups are attracted to innovation anduniqueness (Wang et al., 2000) (Wilhelm and Mottner, 2005). Attractiveness ofthe shopping mall also determines the rent that the various retailers have to payin order to open an outlet in the mall (Sirmans and Guidry, 1993; Gatzlaff et al.,1994; Hardin and Wolverton, 2000). The major factors which affect theattractiveness of a shopping mall have been discussed below.2.8.1 Number of Stores and the Tenant MixWilhelm and Mottner (2005) have considered the number of retail outlets in ashopping mall as one of the factors that helps shoppers decide which mall tochoose. 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 adecisive aspect for them. The assortment of stores and services, known as the 34
  • 36. Mall Mania in India – Changing Consumer Shopping Habitsretail mix, as well as less repetition of stores are also key factors for a number ofshoppers (Wang et al., 2000; Anderson et al., 2003). Therefore, the tenant mix isalso an important construct.The range of tenants in the shopping mall can include departmental stores,supermarkets, apparel stores, and entertainment and leisure facilities (Abratt etal., 1985; McGoldrick and Thompson, 1992). The anchor tenants are also amajor part of the tenant mix as they help to generate a lot of shopper traffic to themall. Miceli et al. (1998) said that apart from considering the profit of a store, themall management (who is the deciding authority of the assortment of outlets)should also take into consideration its consumer drawing power to the mall, asmore consumers would also lead to the profit generation for other stores in themall as well. To ensure the success of a shopping mall, one or more anchortenants should be selected by the management so that they initially attractcustomers, which can be charged lower rent (Ooi and Sim, 2007). According toBrown (1992, 1993 and 1994), the anchor store for a shopping mall in the centralcity 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 ofthe mall should be such that the anchor stores should be placed at the both endsof the mall, service outlets on the side malls closer to the exits and entrances ofthe mall and outlets like pet shops and dry cleaners should be positioned away 35
  • 37. Mall Mania in India – Changing Consumer Shopping Habitsfrom the food stores (Prendergast et al., 1998). Moreover, if a large number ofsimilar stores are clustered together, this would bring agglomeration benefitsand thus more customers would be drawn towards the shopping mall(Hotelling, 1929; Miceli et al., 1998). Also, with smaller shopping malls comingup, tenants like restaurants and fast food outlets, clothing stores, retail serviceproviders and institutional tenants such as banks and post officers are gainingmore importance (Prendergast et al., 1998).As the tenant mix is a very important factor, the decision of correct assortment oftenants should be the starting point for any shopping mall. Apart from being acrowd puller, it also affects the image of the shopping mall, its patronage andrentals (Kirkup and Rafiq, 1994; Gerbich, 1998). It also influences the length ofstay of customers in the mall and their level of excitement (Wakefield and Baker,1998). However, the definition of what should be called the ideal tenant mixwould keep developing over time. It has also become difficult for the mallmanagement to find the appropriate tenants for the malls, reasons being largenumber and competition between shopping malls, upcoming newer retailingformats and the downturn in economies (Kirkup and Rafiq, 1994; Prendergast etal., 1998). 36
  • 38. Mall Mania in India – Changing Consumer Shopping Habits2.8.2 Location of the Shopping MallLocation is an important aspect of marketing and a good location can be a sourceof competitive advantage for the retail outlet (Dickinson, 1981; Vigoda, 1981).Some researchers have even shown that, while good business practices may notcompensate for poor location, good location may compensate for poor business practices(Achabal et al., 1982; Craig et al., 1984; Ghosh and Craig, 1983; Simkin et al.,1985; Wehrly, 1967) (Prendergast et al., 1998).Various theories and formal models have been provided in the literature to helpretailers and developers to decide the location of outlets or shopping malls. Oneof them is the traditional hierarchical model of retail development by Brown(1991). It compares and finds out the relationship between a major metropolitanarea and its neighbourhood communities and regional communities. Anotherresearch by Clarkson et al. (1996) has also categorized retail location theory intofour areas. These are the central place theory, spatial interaction theory, landvalue theory and the principle of minimum differentiation (Prendergast et al.,1998). The Law of Retail Gravitation Model by Reilly (1931) and Huff (1964),tested that the magnetism of a shopping mall decreases with distance andincreases with increase in its physical size. The gravity and potential models alsorecommend that while choosing between shopping malls, the customers try to 37
  • 39. Mall Mania in India – Changing Consumer Shopping Habitsfind a balance between the utility, which is measured by the size of the shoppingmall, and the cost, which is measured by distance. Shoppers patronize ashopping mall by finding out the correct balance between these two attributes(Ooi and Sim, 2007).In relation to the location of the shopping mall, accessibility and visibility are thetwo determinants which need to be noted (Simmons, 1992; Ownbey et al., 1994;Forgey et al., 1995). The size, quality and design characteristics should also befavourable as these impact the accessibility and visibility factors (Brown, 1999).2.8.3 Shopping ExperienceThe prime advantage of an experience product is the experience that the shoppergoes through by purchasing that product or service. Consumers derive valuefrom purchasing these goods or services because of their unique qualities and areready to pay a little extra for them. Mall developers have also tried to cope up inthe experience economy by providing the consumers with good store ambienceas well as entertaining and amusing experiences apart from shopping. They haveadded movie theatres or keep organizing live performances for the consumers inwhich they can get engaged and enjoy their experience while shopping in themall. An example is the various entertainment activities, like theme park and an 38
  • 40. Mall Mania in India – Changing Consumer Shopping Habitsice skating rink along with a huge variety of stores that are provided in the Mallof America (Wilhelm and Mottner, 2005; Sinha and Banerjee, 2004).According to the findings of Wilhelm and Mottner (2005), the age group ofteenagers also preferred going to a shopping mall whose atmosphere wasfriendly and made them feel welcomed. They wanted a mall which providedcool stores, entertainment options, attractive designing and a good place tospend time with friends, on the whole a good shopping experience.Figure 5 – Experience Realms and Shopper PreferencesSource - Wilhelm and Mottner (2005) 39
  • 41. Mall Mania in India – Changing Consumer Shopping HabitsConsumers these days are becoming very variety seeking and searching fornovel and unique experiences (Berry et al., 2002). They see malls as a source andvenue for recreation (Wilhelm and Mottner, 2005). Thus the overall shoppingexperience which includes shopping, leisure as well as entertainment is a keydeterminant of mall attractiveness.2.8.4 Shopping Mall ImageThe authors of “Shopping and the Fear of Others” have found out thatshopping malls have an important role to play in the formation of the socialidentity of the shoppers as they are connected to particular societal groups(Arnould, 2000). Shopping mall image has been defined by Houston and Nevin(1980) as the total of consumers’ perceptions of a shopping mall based on functional andemotional attributes. The image of the shopping mall is also related to thefrequency of customer visits to that mall and is important for customers whenchoosing between different shopping malls. Shopping mall developers shouldexpend resources towards the communication of the right image of the shoppingmall and this communication should be driven towards improving its image andthus frequency of visits. The image is also subject to the presence of anchor storesand other physical characteristics (Ooi and Sim, 2007; Hunter, 2006). 40
  • 42. Mall Mania in India – Changing Consumer Shopping Habits2.9 ConclusionAfter discussion of the factors influencing choice of shopping malls, it is worthmentioning that the effect of some of these factors like retail floor space, numberof shops and distance weaken over time, whereas the effects of other factors likeanchor stores, tourism site strengthen over time (Zhu et al., 2006). A healthyassortment of all these factors increases the attractiveness of the shopping mall.However, studying individual choice decisions would not help us to understandthe behaviour of the market as a whole (Millan and Howard, 2007). 41
  • 43. Mall Mania in India – Changing Consumer Shopping HabitsChapter ThreeResearch Methodology3.1 IntroductionMany attempts have been made to provide a formal definition of the researchactivity. Neuman (2000) defines research as “research is a collection of methodspeople use systematically to produce knowledge”. Research has also been defined asan organized and deliberate effort to collect new information or to utilize existingknowledge for a new purpose, seeking to answer worthwhile and fundamentalquestions, by employing valid and reliable techniques. In addition, researchinvolves the use of more appropriate tests to justify the methods employed, andprovides logical and objective data collection where conclusions can be drawn.Ultimately, it contributes to the gaining of new knowledge and a betterappreciation for the issues involved by the researcher (Gill and Johnson, 1997;Punch, 2001).Every piece of research has its own aims. Keeping in mind those aims, theresearch objectives and the method to accomplish these objectives should bederived. It is necessary for the researcher to know the suitability and thelimitations of choosing the appropriate method so as to be able to take necessary 42
  • 44. Mall Mania in India – Changing Consumer Shopping Habitsprecautions for increased validity, reliability and generalizibility of the research(Miles and Huberman, 1994).The use of appropriate methodology is very essential as it is an important part ofa research investigation. A well-defined methodology is a crucial step inactivities that require concrete results as the process of achieving the result canboth be studied and verified. In this chapter, the methodology employed incarrying out the study will be discussed. In doing so I would discuss the researchobjectives and the use of different forms of qualitative research methods whichhelped me to carry out this research successfully.3.2 Research ObjectivesIn order to conduct this research, the research questions that have been formedare- • What impact does the development in real estate industry have on the organization of the retail industry in India? • How are the consumers’ shopping habits changing with upcoming retail formats, specifically malls? 43
  • 45. Mall Mania in India – Changing Consumer Shopping Habits • What are the determinants of consumers when choosing between a shopping mall and the unorganized market?To answer these research questions I would look into the past trends in theIndian real estate and the Indian retail industries. With the help of the data that Ihave collected, I would compare the past trend with the present trends withrespect the gradual movement in the consumer shopping habits in the countryand the factors leading to it. With the continuing drift in their shopping habits,the future prospects of organized retailing in India would also been discussed.3.3 Qualitative vs. Quantitative ResearchQualitative and quantitative research methods are two major approachesemployed by researchers. These two methods are distinct from each other.Qualitative research seeks to describe and decode the meaning of naturallyoccurring phenomena in the social world through interpretative approaches(Van Maanen, 1983, cited in Easterby-Smith, Thorpe and Lowe, 2002), andthereby provides “well-substantiated conceptual insights that reveal how broadconcepts and theories operate in particular cases” (Gephart, 2004). In other words,qualitative research focuses on the nature of reality constructed from societal 44
  • 46. Mall Mania in India – Changing Consumer Shopping Habitsmembers’ ‘concepts-in-use’ (Schutz, 1973). Due to the direct access to the socialbehaviours of humans, qualitative researchers are able to collect information “ina detailed and complete form” (Sarantakos, 2005), and are allowed to examinesocial phenomena in depth and offer insightful depictions. In brief, qualitativeresearch enables the researchers to see the world through others’ eyes(Goodyear, 1990) and to understand individuals’ attitudes, perceptions, beliefs,views and feelings (Hakim, 1994). On the other hand, quantitative research“emphasizes measurement and analysis of causal relations among variables” (Denzinand Lincoln, 2000) and tests general propositions using the hypothetical-deductive model (Gephart, 2004). Quantitative research “imposes scientificmeanings on members to explain a singular, presumed-to-be true reality” (Gephart,2004).“Qualitative research thus has an inherently literary and humanistic focus, whereasquantitative research is grounded in mathematical and statistical knowledge”. Theformer uses richly descriptive words, talk, and texts as meaningfulrepresentations of concepts; the latter, in contrast, seeks significantrepresentations of concepts through coding, counting, and quantifyingphenomena (Gephart, 2004). The choice of research methods is not always aneither-or question, rather a careful evaluation of the suitability for researchpurpose and the type of questions posed. In effect, both of research methods can 45
  • 47. Mall Mania in India – Changing Consumer Shopping Habitsbe used in a single piece of work to deal with different types of researchquestions. However, qualitative research methods have been used by me inorder to conduct this research because qualitative research can provide ‘in-depth’understandings of research subjects in comparison with quantitative research(Easterby-Smith et al., 2002; Silverman, 2000). Quantitative research methodswere also analyzed while choosing a method of research for this study, howeverthe behaviour of consumers cannot be quantified and thus it would be difficult toanalyze. Thus qualitative research methods have been used.3.4 Data CollectionBoth primary and secondary data were used in order to conduct this research.3.4.1 Secondary and Primary DataSecondary data is very important in research because this can help the researcherto avoid duplication on research that has already been conducted. This saves theresearcher’s time and cost in conducting repetitive work. By conductingsecondary research prior to primary research, the researcher can assess theavailability of information and use it as a basis to design the methods to collectthe primary data (Parsuraman, 1986). In addition this can only enable a 46
  • 48. Mall Mania in India – Changing Consumer Shopping Habitsresearcher to develop a hypothesis or assumptions about the topic. Secondaryresearch also has the benefit of being carried out in privacy without anyoneknowing about it (Wright and Crimp, 2000). This is a cheap and impersonal formof research compared to primary research as this can be done at the researcher’sown convenience, either at home or at the university. The data sought fromsecondary forms of research are historical as they are from the past, thusmeaning that comparisons can be made by comparing the past and currentsituations (Saunder et al., 2000).This research was carried out by using news paper articles, internet reports, andacademic journals from sites such as Mintel, Science Direct and Emerald Insight,textbooks, industry reports, etc. Data from academic journals and textbooks wasparticularly useful in reviewing the existing literature on consumer buyingbehaviour and their choice determinants for shopping malls. However, one ofthe major drawbacks of this method of research is that sometimes theinformation gathered may not directly fit into your research area and some datacan also be out of date and not valid at the present moment (Kemp, 2002). Theinformation gathered from the sources can have an impact on the level of biasand in addition may not be very accurate. Some research reports aboutcompanies or retailers can be confidential and thus not published and difficult toobtain (Saunders et al., 2002). 47
  • 49. Mall Mania in India – Changing Consumer Shopping HabitsThe second type of research method carried out was primary research. Saunderet al. (2003) has defined primary research as “Data collected specifically for theresearch project undertaken”. The three main types of primary research that can beused are observation, interviews and surveys. For the purpose of this research Ihave used interviews as a form of primary research.3.4.2 InterviewsInterviewing has been one of the most widely used research approaches among avariety of qualitative methods (Have, 2004; King, 2004).Interviews can be used conducting various techniques such as telephoneinterviews, face to face interviews and focus group interviews. Interviews are avery common and flexible form of gathering qualitative data and according toParsuraman (1991) this is an effective form of conducting exploratory research,which can allow opinion of those with expertise in areas related to the subjectmatter under investigation to be examined.In social research there are four main types of interviewing techniques. Firstly,fully structured interviews are where the situation is fully controlled by thequestionnaire in terms of questions and potential answers (Crouch and 48
  • 50. Mall Mania in India – Changing Consumer Shopping HabitsHousden, 1996). Secondly, semi structured interviews are where open endedquestions are used and the interview’s job is to probe for more depth answers.Thirdly, unstructured interviews are where neither the interviewer nor theinterviewee has set questions. Instead, a topic guide forms the basis of theinterview, and the interviewee is encouraged to explore his/ her thoughts on thetopic of research. Finally, in the in depth interviews, the respondent isencouraged to go deeper and deeper into their levels of thinking to develop intothe subject area (Crouch and Housden, 1996).A semi-structured format has been adopted for this research, which means open-ended questions are used across all interviews and some questions are preparedin advance. This type of interview can help the researcher focus on researchtopics. On the one hand, it makes the most of the value of time spent with theinterviewees (McCraken, 1988), on the other, it ensures that the interviewquestions cover all research topics more fully, and facilitates the comparabilitybetween interviews (Karantinou and Hogg, 2001; Selltiz, Jahoda, Deutsch, andCook, 1964). This type of interviewing provides the researchers with theopportunity to explore answers, where the researchers want their interviewees tobuild up on the responses. It has been sought that open ended questions aredesigned to encourage the interviewees to offer extensive and developmentalanswers and can be used to reveal the interviewees attitudes or obtain facts 49
  • 51. Mall Mania in India – Changing Consumer Shopping Habits(Grummit, 1980). Additionally, it also gets the interview to gain unpredictableviewpoints from the interviewees. Thus this method of analysis has been usedfor this research paper.3.4.2.1 Interview SampleFor conducting the interviews, two different sample populations were chosen.The first sample consisted of retailers who had already opened their outlets inthe shopping malls of Delhi and NCR. For conducting these interviews,purposeful sampling was used. Purposeful sampling selects information richcases for in depth study (Mugo, 2007). This could be a help as most of theseretailers already had their outlets in the unorganized markets before openingshop 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 themarkets. Qualitative research typically uses a relatively small sample yet focusesin depth on it (Patton, 1990). Therefore, a sample size of 15 respondents waschosen for taking the interviews of retailers. 50
  • 52. Mall Mania in India – Changing Consumer Shopping HabitsTable 3 – Profile of Retailers Interviewed RETAILER BUSINESS E – MAILDockers Men’s Apparel ravibdravibd@yahoo.co.inRoyal Sporting House Sports Wear & manuvijay@hotmail.com AccessoriesShringis Women’s Western shringis@yahoo.com WearSatya Paul Women’s Ethnic Wear satyapaul@genesiscolors.netVIP Travel Accessories anupambhatia@yahoo.comStupid Cupid Women’s Accessories umesh_mathur2002@yahoo.comFirst Impression Women’s Traditional honey12@rediffmail.com WearNextt 2000 Women’s Western nextt2000@rediffmail.com WearAbhinetri Women’s Ethnic Wear abhnetri_rjrgdn@yahoo.comTimex – The Time Watches bhalla_preeti@yahoo.co.inFactoryBose Music Systems joseph_jt@boseindia.comRoop Vatika Women’s Ethnic Wear roopvatika@hotmail.com & AccessoriesOSHO bharti_ravindra@gmail.com 51
  • 53. Mall Mania in India – Changing Consumer Shopping HabitsFor choosing the second sample, 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. Asimple random sample is free from sampling bias (Mugo, 2007). This sampleconsisted of consumers living in India, who have seen a drastic change in theorganization of the retail scenario in India and are familiar with it. Randompeople were chosen from family, friends and employees who are a part of theconsumer group and are a witness to this transition. To get a wider view, therespondents that were chosen belonged to diverse age groups and income levels.The sample size for this was 20.3.5 Research ProcedureIn order to perform a successful research, it is very important to have a welldefined procedure of carrying it out. To start this research I started reading aliterature that was relevant to my area of study, which took a very long time.Reading that, I formulated the literature review which consisted mostly ofconsumer buying behaviour and their choice determinants for choosing ashopping mall. After a careful examination of the literature, questionnaires wereformulated for conducting the interviews from the retailers who had openedtheir outlets in the malls and the Indian consumers. 52
  • 54. Mall Mania in India – Changing Consumer Shopping HabitsFor conducting the research, 6 major malls in the parts of West Delhi, SouthDelhi and NCR were visited. Conducting the interviews from the retailers wasnot a very easy task to do. Even though I approached them in their non peak saletime of the day, they seemed to be busy and disagreed to give the interviews.Furthermore, most of the retailers who agreed to be interviewed by me werereluctant of giving recorded ones. However, I got hold of 15 retailers fromdifferent malls and conducted their interviews and writing down their responsesside by side. For the interviews of the consumers, approaching them was quiteeasy as most of them were familiar with my area of study. Face to face interviewswith some and telephonic interviews with the others helped me complete myfield research.Gaining trust was a crucial part of the whole process of conducting the interviewbecause if the researcher is not trusted the interviewee may not refuse to give theinterview but may desire and act such that the interview gets over as quickly aspossible with enough detail to satisfy the researcher that she is getting somethingof value but without saying anything that touches the core of what is actuallybeing believed and cared about in the research (Jones, 1985 quoted in Easterby-Smith, 2002). Thus the purpose of the interview and the study was explainedclearly to each interviewee before taking the interview. 53
  • 55. Mall Mania in India – Changing Consumer Shopping HabitsThe data that was collected was then analyzed and results were evaluated. Somerecommendations for the future were then suggested for the real estatedevelopers and the retailers. 54
  • 56. Mall Mania in India – Changing Consumer Shopping HabitsChapter fourThe Indian Scenario4.1 IntroductionThe key areas on which the real estate industry in India is focused are residentialand commercial. The commercial area is majorly dependent on the retailindustry. India has been ranked fifth of the thirty emerging retail markets of theworld by the global real estate consulting group Knight Frank (Real trends: Theboom continues, 2006). There is a transition taking place from the conventionalunorganized retail sector to an organized one, for example, the big super marketsare replacing the small neighborhood kiranawalas(http://www.etretailbiz.com/dec2002/specialfeat.html). This organized retailsector in India now boasts of having preferences of almost all consumers whichinclude apparel and accessories, appliances, electronics, cosmetics and toiletries,home and office products, travel and leisure products and much more (RetailSector in India, 2007). The organized retail segment which is currently only 2percent of the retail industry is estimated to grow at a rate of 20 percent by 2010.This development in the retail industry is leading to a boom in the real estatesector. In a report by Merrill Lynch, the real estate trends of the country 55
  • 57. Mall Mania in India – Changing Consumer Shopping Habitsindicated the growth in the number of malls in the major cites from 40 to about250 by the end of this decade (Real trends: The boom continues, 2006). Not onlyare these shopping malls becoming familiar in the larger cities, but this boom isalso racing its way to the Tier II cities or the smaller cities.4.2 Past Trends of Shopping in IndiaEarlier, the retail industry in India could be labeled as highly unorganizedcomprising of large, medium and small grocery stores and drug stores(Organized Retail Industry in India, 2006). The concept of shopping in Indiawas led by the general stores that supplied everything from groceries tostationery, and small shops in localities that stocked limited varieties of products.Before the evolution of organized retailing and with limited brands available inthe market, the people only used to buy what was offered to them. The existenceof consumer culture was very limited and there were no defined ‘shopping areas’(Tata, 2007). Since then, the idea of retail merchandising and consumer shoppinghas changed by leaps and bounds (India Retail: Global Brands and Chains SetSights, 2007). Modern retail formats came into existence such as malls andsupermarkets. Many companies also started to set up exclusive showrooms andother larger retail formats such as Westside, Shoppers Stop, etc. Most of theseorganized retailing formats are mainly concentrated in the metropolitan cities; 56
  • 58. Mall Mania in India – Changing Consumer Shopping Habitshowever they are getting diversified into smaller cities and towns (OrganizedRetail Industry in India, 2006). The introduction of these larger and morediverse formats provided the consumers with more options to shop from andnovel experiences for the Indian population.However, the traditional forms of retailing which provided a great amount ofpersonalized service to the shoppers, made them vary about shifting from theirusual methods of shopping. “The traditional consumer, initially overawed by the newlook and used to equating glitzy with expensive, refrained from entering the store” (Tata,2007). Also, the new formats were perceived to be having not enough addedvalues for most of the customer segments. One of the obstacles that came in theway of the success of these formats was the perception of consumers about theprice of the merchandise that was offered. They thought that the products theypurchased at malls were far more expensive than the ones they shopped from theunorganized markets, however, providing no extra value(http://www.etretailbiz.com/dec2002/specialfeat.html). Another key challengefaced by the developers to make their shopping centers a success is the scarcityof anchor retailers which are considered a key source of crowd pulling. Thenumber of anchor retailers in India is limited. With huge number shopping malldevelopments that are currently taking place and are projected for the future,there is a shortage of the alternatives available for selection of anchor stores. This 57
  • 59. Mall Mania in India – Changing Consumer Shopping Habitscreates a lack of ability for the developer to form a unique and characteristicpositioning of the shopping center in the minds of the consumers (ImagesReport 2005 on shopping centre development in India – II, 2005). Stringenttrade laws and government regulations, further added to this difficulty. Thus,these shopping centers received only moderate success in the Indian market intheir introduction phase. Looking at this, many of the retail chains held backtheir expansions into the organized segment (Sinha and Banerjee, 2004).However, liberalization has changed all this. There was an effort made by theorganized retailers as well as the consumers to make this new found trend asuccess.4.3 ConclusionWith consumer demographics becoming more and more favorable to theorganized segment of the retail industry and the increase in the availability ofretail space and a skilled workforce, there has been a complimenting growth inretail chains, multi brand outlets and integrated shopping malls. A variety ofnewer retail formats are being introduced. Enormous networks of stores aregetting scattered on the Indian landscape, starting with larger cities and thenmoving on to smaller towns as well (India Retail : Global Brands and Chains 58
  • 60. Mall Mania in India – Changing Consumer Shopping HabitsSet Sights, 2007). The infrastructure and supply chain mechanisms of malls aregetting organized and spreading across the country. This brought about arevolution in shopping in terms of the consumer buying behaviour. Theintroduction of these larger and more diverse formats is providing theconsumers with more options to shop from and novel experiences for the Indianpopulation. This changing retail environment is leading to a change in shopperexpectations and factors effecting store choice (Sinha and Banerjee, 2004).According to the research on store choice behaviour in an evolving market bySinha and Banerjee (2004), both the consumers and retailers are in the testingphase as to what will be the factors effecting store choice behaviour in the Indiancontext. It is being currently evaluated by a few big players such as PantaloonRetail, Food World, Spencers, Shoppers Stop, Lifestyle, Subhiksha and a numberof other smaller entrepreneurs (India Retail : Global Brands and Chains SetSights, 2007). 59
  • 61. Mall Mania in India – Changing Consumer Shopping HabitsChapter FiveFindings and AnalysisIn this chapter, the findings of all the semi structured interviews have beenstated. Also, the analysis and investigation of the data that is collected has beencarried out. The interviews have been broken down into themes aiming to carryout a comprehensive in-depth analysis. This part has been broken down into twosections – the retailer’s point of view and the customers’ perspectives.5.1 Retailers’ PerspectiveThe interviews that had been taken from the retailers who had already openedtheir retail outlets in the malls have been analyzed in the following section. Theresponses by the retailers have been listed in a table format question by questionand then analyzed later using points that have been listed in the literature aboutchoice determinants of mall.Table 4 – Retailers’ Perspective QUESTION ANALYSIS OF RESPONSESQ1. How long has it been All the retailers who were interviewed had openedsince you have opened the their outlets in the malls since a period of less thanshop in this mall? 2 years except one, for whom it had been two and a 60
  • 62. Mall Mania in India – Changing Consumer Shopping Habits half years.Q2. Why did you choose to Different retailers gave different responses to thisopen your outlet in the question. The most common reasoning that wasmall other than the given by them was the upcoming trend of mallunorganized market? 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 India. 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 have another All retailers who were interviewed had theirretail outlet other than in outlets in unorganized markets of different areas asthis 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.Q4. Do you reach the There was a mixed response of this question. Seventargeted sales level in this of the interviewed retailers were happy with the 61
  • 63. Mall Mania in India – Changing Consumer Shopping Habitsoutlet or as much as the amount of sales level that they were getting in theirother 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.Q5. What do you do to A variety of promotional tools were being used byattract customers to your the retailers to get the customers’ attention towardsoutlet? 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 62
  • 64. Mall Mania in India – Changing Consumer Shopping Habits 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.Q6. What do you think can Attraction of customers is the most important forbe done to attract the success of malls. According to the responsescustomers to a mall? What provided by various retailers, location, having ado you think of anchor good mix of brands within the mall, having anstores? 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 63
  • 65. Mall Mania in India – Changing Consumer Shopping Habits 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”.Q7. What do you think of Majority of the retailers say that a major part of theconsumers’ perception of customer base still perceives that the merchandisemall 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 64
  • 66. Mall Mania in India – Changing Consumer Shopping Habits 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.Q8. What benefits do Several facilities are made available to theconsumers obtain from consumers when they visit a mall. Firstly, “they cancoming to a mall rather shop for so many things at one place, they can eat andthan the unorganized hang out and entertainment places like PVR aremarket? What effect do available, all this can be done along with shopping”.these benefits have on Other than this, comfort, security, parkingsales? 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 65
  • 67. Mall Mania in India – Changing Consumer Shopping Habits 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.”Q9. If you have to open a Few of the respondents have mentioned variousnew outlet, would you criteria for this decision, the major being location ofchoose to open it in the the mall or the market, foot fall of the mall,upcoming malls? 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 66
  • 68. Mall Mania in India – Changing Consumer Shopping Habits reasons that they opened their outlets in the malls, and would plan any further expansions within the malls developed by those companies.It can be analyzed from the responses that the introduction of the so called “mallmania” has not been there in India for a long time. It is a novice situation for theretailers as well as the consumers. Therefore, it is going to take a little while forboth the parties to get along with this rapid development taking place in thecountry. The government is also encouraging this growth that is taking place inthe retail as well as the real estate industry of the country. Various steps arebeing taken by it in the different parts of the country to make this development asuccess. For example, in the capital city of New Delhi, the government startedsealing activity of the retail outlets that had been opened in the residential areasin order to discourage the growth of unorganized markets, due to which theretailers had to buy retail space in malls for expansion; in Mumbai as well, thefreeing up of much needed real estate has been responsible for the developmentof the city in terms of retail space. Accessibility of real estate at affordable priceshas been made easier partly due to easier availability of finance and bank loans.The investors are also motivated towards this development as they get a higherreturn of 14 percent on the mall business as compared to 11 and 6 percent in theoffice segment and the residential segment, respectively (Bist, 2004). All these 67
  • 69. Mall Mania in India – Changing Consumer Shopping Habitseconomic activities along with the gradually changing consumer preferences areresponsible for the ongoing boom in the mall activity in India.5.2 Consumers’ PerspectiveTo get the Indian consumers’ viewpoint on the upcoming trend of shopping inthe malls, interviews that were taken from the consumers have to be analyzed.The respondents’ views have been generalized as the views of the consumerpopulation in India. These interviews have been analyzed in the followingsection taking one question at a time and quoting consumer responses.The current preferences of consumers between the shopping malls and theunorganized markets were asked. On the one hand, majority of the consumers’preferences had now shifted from unorganized markets to shopping malls asdevelopment is taking place in diverse parts of the country including smallerlesser developed cities and in different areas within a city. Many respondentshave also stated various criteria for choosing between the malls and the localitymarkets which have been stated in the following quotes listed below.“The choice between unorganized and malls depends upon a number of other factors suchas mood, type of shops etc.” 68
  • 70. Mall Mania in India – Changing Consumer Shopping Habits“Price is the factor associated with the choice. For items priced equally in the malls Iwould prefer the malls or else the markets.”“It depends on the weather if it is really hot I would like to shop in a mall. It also dependson when I am looking to buy and what is my budget. If I am looking for somethingspecial then maybe I will prefer a mall but if I am looking for something which isavailable every where I would buy for the place which is nearest.”“Depends on the purpose, if I have time to spare and want to spend an entire dayshopping, eating, watching a flick then mall would be the preferred choice because itwould be convenient, if only shopping for a particular item or grabbing a bite then localmarkets will be more convenient”On the other hand, few of the respondents also preferred the unorganizedmarkets over malls as they did not think that malls that have currently beenopened in India can offer everything that a consumer needs and also a majorityof the population stayed away from the malls due to high prices of the products.This mixed response indicates that the consumers in India are changing and areoverall beginning to prefer the malls instead of the markets. Probably, it isdependent on the income group the consumers belong to. A higher incomegroup consumer would indicate a higher preference for malls and vice versa. 69
  • 71. Mall Mania in India – Changing Consumer Shopping Habits“I would prefer unorganized local markets because shopping malls which Cater to all theneeds of a customer or provide all popular brands under one roof are yet to come toIndia.”“Shopping malls provide many facilities under one roof but lack in providing goods at acheap price. This makes Local markets more famous among the Common Man as theyprovide largely the same goods at a competitive price.”A very mixed response was obtained when the consumers were questionedabout the frequency of their mall visits for the purpose of shopping. Few of therespondents visited only the mall whenever they would move out with theintention of shopping. Others visited a mixture of both, which must bedependent on various factors. From the responses it can be analyzed that thecustomers who initially visited only the unorganized markets with the shoppingmotive in mind has also started to consider the malls for specific productcategories or brands. This again indicates a gradual change in the consumerpreference for malls.“In a week I go around 3 to 4 times for shopping and all the time in malls.”“Once in a fortnight I go out for shopping. And alternatively I go to malls and markets.” 70
  • 72. Mall Mania in India – Changing Consumer Shopping Habits“At least once a week in the unorganized market and once a month in malls.”“I go out for shopping five to six times a month - 80% to local markets and rest of thetime to malls”“Around 4 times monthly, and twice to malls.”There is also a difference in the kind of merchandise that a consumer buys fromthe mall and that he/ she buys from the unorganized markets. The Indianconsumer has been very used to picking up products form the local marketswhich is proximity of their homes. Although, they are getting used to visiting themall for their shopping needs, they still shop for their daily needs from themarket itself. The respondents have also stated various advantages anddisadvantages that they have associated with the visit to the malls.“Branded items are bought from malls and day to day items from markets.”“Malls: because they are comfortable, you get everything under one roof, air-conditionedenvironment and non-tiring. Unorganized Markets: they too tiring, messy at times butthey are good for getting little things which you normally don’t get in the malls.” 71
  • 73. Mall Mania in India – Changing Consumer Shopping Habits“Malls are visited at all times but most purchases are done from local markets which offera wider variety of branded goods.”“In shopping malls everything is organized and a person does not have to face the terribleheat of Delhi.”“Malls have a comfortable environment with a good parking facility and all brands areavailable under one roof. And unorganized markets are visited for fulfilling the dailyrequirements.”“Unorganized local markets provide all essential goods in a confined small area whereasmalls only house a few selected brand stores.”“Local Markets are more accessible, better priced & have a large variety.”Almost all of the consumers associated leisure activities with malls. For manyconsumers, malls have become a destination where they can hang out andsocialize with friends in coffee shops like Barista and Cafe Coffee Day. Anentertainment factor has also been associated with shopping in the malls as manyconsumers have started to view shopping as an enjoyable pastime. All their 72
  • 74. Mall Mania in India – Changing Consumer Shopping Habitspurposes of shopping, entertainment, socializing with friends and eating outcould be fulfilled by a single visit to the malls. It can be inferred from therespondents’ views that some of the visitors who come to a mall can becategorized as serious shoppers who are attracted by the convenience of buying awide variety of products under one roof. However, most of them are stilloverawed by the whole experience that they go through when they visit ashopping mall which includes gazing at luxurious branded products, cooling offin air conditioned comfort and enjoying an ambience that was never experiencedwhile shopping in the markets but was “only seen in Hollywood movies” (Bist,2004). Also, it has been seen that shoppers these days are also combining theshopping and leisure activities. They can do this by visiting the mall where theycan get an environment where they are able to carry out their leisure activitiesalong with shopping.“Oh yes, because apart from shopping, there are road shows, movies, trivia contests,lucky draw and all of the same can be associated to leisure.”“I go to malls four to five times a week for a coffee, shopping is just as per the needs.”“Malls are visited once in a month, they are not as accessible as local markets so going toa mall is more of an outing than fulfilling the purpose of shopping.” 73
  • 75. Mall Mania in India – Changing Consumer Shopping Habits“Yes malls are good for catching up with friends.”“Malls because of convenience of parking, everything is organized, combines leisure withshopping and better ambience.”“Yes, malls are mostly associated with entertainment and food.”Considering the location factor, majority of the respondents did not care aboutthe proximity of the shopping malls from their homes. The reason for thisprobably would be that there are only a few shopping malls currently and all theconsumers want to experience this new way of shopping, therefore, they do notmind even if they have to travel a long distance to visit the shopping malloccasionally. However, few of the interviewees associated their decision of theirshopping destination with respect to its proximity from their home.“Yes because it is very near to my house, I can go there anytime when I feel like, evenalone.”“As long as I get what I want in terms of the brands and variety, I don’t mind shoppinganywhere. However malls would be more convenient, if they are closer and have similarvariety.”“If I have decided on the shop and know what exactly to buy, then I wouldconsider proximity as a major factor that would affect my decision. Apart from this 74
  • 76. Mall Mania in India – Changing Consumer Shopping Habitsvariety can also affect my decision making, for example due to availability of space, theshop in the mall would be bigger and would store more variety of the product, then in thatcase the mall shop would be a better option.”“Proximity can be related to time, if I have some extra time then I prefer going to themall, otherwise local shopping would be just fine.”In general consumers’ perception, there exists a pricing difference betweenmerchandise in the mall and that in the unorganized markets. The productsavailable in the malls are considered to be more expensive than those available inthe markets. However, from the responses that were obtained, it was evident thatthe consumers’ outlook is completely changing and they are becoming morespend thrift. In addition, this difference in pricing does not seem to be affectingtheir shopping decisions. This is also a change that can be seen in the consumerpopulation as a whole, as compared to a few years earlier.“Well I don’t think that there is any price difference and if it is then that’s something aconsumer wont mind spending for the leisure a consumer gets in the mall.”“Generally, for some goods it is assumed that malls are expensive. But I buy mostlybranded goods from malls, and they have the same process all over. So doesn’t really makea difference.” 75
  • 77. Mall Mania in India – Changing Consumer Shopping Habits“I think it’s a misconception that malls are more expensive that local markets. If the sameshop is present in both the market types then pricing would be the same. It so happensthat generally there are better quality shops present in the malls which can shoot up aprice of a product, so its generally perceived that malls are more expensive, but if you putthe same shops in local markets then the price would be just as expensive.”After going through the literature, a question that was formulated for theinterviewees enquiring them if going to the shopping mall has an effect on theirimage or status in the society. Almost all of the respondents denied this fact.They did not find any relation between image and visiting the shopping mall.Any image was not assumed to be associated with the shopping malls and theimage factor was immaterial if they bought the products from the markets or theshopping malls.“No, shopping is all about buying stuff I like, where I find it is immaterial.”“Shopping in the mall does not influence the status because status is related to the shopthat you are shopping in, whether it be in the mall or market.” 76
  • 78. Mall Mania in India – Changing Consumer Shopping Habits“As long as what you shop appeals to you and you have the confidence to carry it out itdoes not matter where you have bought it. However, shopping malls are characterized bybranded stores.”According to the findings of my research, the shopping experience is a veryimportant factor for the consumers. In their views, shopping experience includesvariety of stores within a mall and the collection within the stores, the gentry thatcomes to the mall; time that is saved by coming to the mall and gettingeverything under the same roof is the biggest advantage. They are alsoconsidered to be easier and more sophisticated.“Shopping experience to me means actually buying stuff that I like irrespective of the factwhether it is in a mall or a local market but malls are definitely a better and moreconvenient place to shop in.”“Shopping experience is very important for me because if I am not satisfied from a placethen I might not go there again.”“It is a very important criterion because not always do we go with a motive to shop.Sometimes it is for fun, or just time pass. In those cases shopping malls are a betteroption.” 77
  • 79. Mall Mania in India – Changing Consumer Shopping Habits“As an experience malls would be rated higher because of the sheer variety of shops, andconvenience of a multiplex, kids’ corner, eateries, all under one roof.”When asked about their future shopping preferences, all of the respondentschose mall shopping over the unorganized market shopping where one couldfind all the brands, entertainment as well as food joints. The markets would onlybe selected by them in case whatever they needed would not be available in themalls. It has also been viewed that with a rapid growth in the real estateindustry, the malls will eventually take over all forms of markets. However, thispossibility is not visible in the near future as the unorganized retail sector inIndia is almost 97 percent. Also, this trend has not even been seen in developedcountries where malls have now lost the importance that they used to hold in thepast.“If there is growth in the mall industry then it will eventually take over all forms ofunorganized market.”“Malls are preferable. But there is no bargaining in malls and you at times don’t getminute and little things, which you get from markets. So, both hold their ownimportance.” 78
  • 80. Mall Mania in India – Changing Consumer Shopping HabitsChapter SixDiscussion6.1 IntroductionFrom the analysis above, it can be inferred that there is a slow and steady changethat is taking place and the preferences of the Indian consumers are shifting fromshopping in the unorganized markets to shopping in the newly developed malls.The vast Indian consumers’ population is varied among diverse incomesegments. According to secondary data, there exists a significant difference in theshopping patterns of consumers across these income segments and there are nouniform trends in their buying behaviour. Researchers who have done theirresearch on the organized retailing sector of India have also said that organizedretailing 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. The middle income classprefers shopping for processed food and personal care in supermarkets and fallback on traditional outlets for bulk shopping. For them, organized retail outletsseem to be associated with branded items/special purchases. Organized retailingdoes not seem to have made an impact on the lower class, except for ‘curiosity’ 79
  • 81. Mall Mania in India – Changing Consumer Shopping Habitsshopping (Chandrasekhar, 2001). This fact can also be supported by the findingsof my study as it was conducted on consumers who belonged to varied incomegroups.On the whole this study has found out that a large number of consumers havestarted choosing the malls over the unorganized markets for the purpose ofshopping which is also associated with leisure. The attributes of the malls, whichattract the consumers towards it and are responsible for this change of choice ofthe consumers, have been represented in the form of a decision tree. In thischapter, the analysis has been done by comparing the findings with what hasbeen said in the literature. A few extra points that came up in the findings havealso been analyzed and this fills the gap in the studies that have been conducted.The significance of the various mall attributes has also been discussed below.6.2 Choice Variables for Shopping Malls6.2.1 Anchor StoresAs stated in the literature, the anchor tenants are an important part of the tenantmix as they help to generate a lot of shopper traffic to the mall. It has also beensaid that the mall management (who is the deciding authority of the assortment 80
  • 82. Mall Mania in India – Changing Consumer Shopping Habitsof outlets) should also take into consideration its consumer drawing power to themall, as more consumers would also lead to the profit generation for other storesin the mall as well. All retailers have agreed to this fact that anchor stores are amajor factor responsible for pulling crowd towards a mall. There are a variety ofanchor retailers in India. They include US and European chains like McDonalds,Lacoste, Pizza Hut, Benetton, Subway, Marks & Spencer and Mango. This hasalso led to the emergence of Indian chains such as Pantaloon, Globus, ShoppersStop, Giant, Lifestyle and Big Bazaar that can act as anchor stores in a mall. Otherbranded outlets like Tommy Hilfiger, Swatch, Arrow, Louis Vuitton and Nikeare also considered as effect anchors in the Indian malls which are effective inattracting customers towards a mall (Chadrasekhar, 2001).However, one of the retailers also contradicted this fact from his personalexperience of having an outlet in the mall, with a very valid point. Thedepartmental stores in India, which act as anchor outlets, carry a variety ofbranded merchandise other than non branded ones. If the same brands also havetheir exclusive outlets in the mall, the anchor stores tend to cannibalize the salesof the individual outlets as most of the crowd is attracted towards them.Although this is a convincing argument, but majority of the retailers havesupported the literature that successful anchor stores are a key to increasing footfall in a mall. 81
  • 83. Mall Mania in India – Changing Consumer Shopping Habits6.2.2 LocationLiterature has stated that location is an important aspect of marketing and agood location can be a source of competitive advantage for the retail outlet. Also,according to a survey conducted by global property consultancy firm Cushman& Wakefield, not all mall operators are likely to benefit equally. The report alsoinforms that "Only the ones in favorable locations and having the right formatand suitable strategies are likely to remain long-term players" (Chandrasekhar,2001). However, in the Indian context, the factor of location of a shopping malldoes not seem to affecting the consumers’ visits to these malls. As it has beendiscussed above that there are only a few shopping malls that have come up inthe country and the consumers are finding it to be a very novel experience tovisit a shopping mall for shopping. They are still overawed by this new methodof shopping, therefore they even travel long distances to capture the advantageof getting everything under one roof. However, their daily needs are still fulfilledby the unorganized markets that are situated close to their homes.With the speedy development in the number of shopping malls in the country,soon there would be a shopping mall in every area. The consumers would thenprefer to visit the malls that are closer to their homes, for their daily needs as 82
  • 84. Mall Mania in India – Changing Consumer Shopping Habitswell. Thus, location has still been considered a significant factor while choosing ashopping mall.6.2.3 Shopping experienceThe literature has been backed up by the findings that consumers derive valuefrom purchasing goods or services because of their unique qualities. Malldevelopers have also tried to cope up in the experience economy by providingthe consumers with good store ambience as well as entertaining and amusingexperiences apart from shopping. They have added movie theatres or keeporganizing live performances for the consumers in which they can get engagedand enjoy their experience while shopping in the mall. Consumers these days arebecoming very variety seeking and searching for novel and unique experiences.The shoppers in the Indian market also tend to look at visits to stores and mallsas an enjoyable experience, an outing for the family, receiving value for moneywhile shopping and also as an entertainment available there. The players in theretail industry who are competing with one another, are trying to come up to theexpectations of shoppers giving the shoppers a great international shoppingexperience, a wonderful ambience and something or the other, for everyone inthe family (Retail Industry: Changing Trends, 2007). Thus the overall shopping 83
  • 85. Mall Mania in India – Changing Consumer Shopping Habitsexperience which includes shopping, leisure as well as entertainment is a keydeterminant of mall attractiveness.6.2.4 ImageAs stated in the literature, the authors of “Shopping and the Fear of Others”have found out that shopping malls have an important role to play in theformation of the social identity of the shoppers as they are connected toparticular societal groups (Arnould, 2000). Self image is also exceptionallyimportant for Indians, however, they do not tend to attach self image withshopping in a shopping mall. This factor has been falsified in the findingsbecause India has not yet reached that stage of development that it tends toassociate image with a shopping mall. The unorganized market in India still hasa very significant proportion; therefore, all consumers have to visit theunorganized markets for the fulfillment of some or the other needs. It does notaffect his/ her personality or status. Thus image has not been considered asubstantial factor in the Indian context, when the consumer chooses between ashopping mall and the unorganized market for making purchases. 84
  • 86. Mall Mania in India – Changing Consumer Shopping Habits6.2.5 Price SensitivityNot much has been said about price sensitivity of consumers in the existingliterature. This is due to the fact that almost all studies that have been conductedare directed towards the developed countries of the world, where the incomelevel of the consumers is quite high as compared to India and they do not mindspending on expensive branded products. However, looking at the Indiancontext, about which much has not been said, a large part of the populationbelongs to the middle income group who cannot afford these luxurious brands.Therefore, this was one of the additional major aspects that came up in theresearch.Although, from secondary data it has been found that the income level and thepurchasing power of the Indian consumers is increasing, majority of the retailersare still in the perception that the most of the consumer population is still pricesensitive. Even though a market for high end luxurious brands exists in thecountry, a major chunk of the population does not buy these brands. Howeverwith globalization taking place throughout the world, the consumers are gettingthe hang of the branded products and their demands are changing with growingincome levels. From the consumers’ perspective, it has also been seen that a highprice level in the malls does not stop them from purchasing what they want. On 85
  • 87. Mall Mania in India – Changing Consumer Shopping Habits 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. Figure 5 – Shopping Malls Choice Variables MALL CHOICE VARIABLES STORES LOCATION EXPERIENCE PRICE LEVELVARIETY ANCHOR ENTERTAINMENT ENVIRONMENT STORES CINEMA AMENITIES EVENTS FACILITIES 86
  • 88. Mall Mania in India – Changing Consumer Shopping Habits6.3 Interdependence of the Retail and Real Estate IndustryThe present time has seen a boom in the Indian economy, especially in the retailand the real estate sectors. The prospects of both these have been found to bemutually dependent on each other and the factors that are driving growth inthese two sectors are low share of organized retailing in the economy, falling realestate prices, increase in the disposable income and customer aspirations as wellas increase in the expenditure for luxury products by consumers.The retail industry is one of the largest industries of the modern days, especiallyin India. It has emerged as one of the most dynamic and fast growing industriesin the economy with several players entering the market. Unlike traditionalretailing, the contemporary retail sector is mirrored by shopping centers,multiplex malls and huge complexes that offer shopping, entertainment andfood, all under one roof. The concept of shopping in India is also in its alterationphase in terms of the buying behaviour of the consumers and the retail formats.This has also led to the growth in the real estate sector, with large investments bynational and global players taking place with a motive of developing theinfrastructure and construction of the retailing business (Retail Sector in India,2007). 87
  • 89. Mall Mania in India – Changing Consumer Shopping HabitsChapter SevenConclusion and Recommendations7.1 IntroductionThe revolutionary development in the Indian real estate and retail industries isdriven by large expectations, keen interest by the Indian and internationalcompanies who are eager to invest and the operation of large scale developmentof shopping malls that is taking place throughout the country. The Indian andinternational brands are using these retail malls as a medium to spreadthemselves throughout the Indian cities in these high profile brand formats(India Retail : Global Brands and Chains Set Sights, 2007). They get therequired image for their brand, the environment and the clientele that they wantin a shopping mall which is difficult to achieve if they open an outlet in theunorganized market.The most important activity for mall owners is to attract the maximum numberof people and to convert them into buyers. As discussed in the previous chapter,a mix of attributes such as variety of stores in the mall, the location of theshopping mall, the shopping experience offered to the consumers in the 88
  • 90. Mall Mania in India – Changing Consumer Shopping Habitsshopping mall and the correct pricing of the available merchandise would makea shopping mall successful in the Indian retail environment. Apart from these, aseven point strategy for a successful mall in India has been recommended by awell known property consultant firm of India. Location, product mix, right-footfall, right pricing, strong infrastructural support, circulation and differentialpricing are the factors which will be sought and appreciated by the customersand would lead to the success of the mall (Retail Industry: Changing Trends,2007). If these attributes are present in the shopping malls of India, they wouldfurther push the consumers, who are already in the transitional phase of shiftingtheir preferences from the unorganized markets, towards shopping in thesemalls.7.2 RecommendationsIn this section, recommendations for the government, the shopping malldevelopers and the retailers have been suggested to further this developmentthat is taking place in the real estate and the retail industries of India which willalso drive the changes in the shopping habits of the consumers.7.2.1 Recommendations for the Government 89
  • 91. Mall Mania in India – Changing Consumer Shopping HabitsThe government should open up the retail sector by further liberalizing foreigninvestment norms. This will not only favor development in the retail sector interms of design concept, construction quality and providing modern amenitiesbut will also help in creating a consumer-friendly environment. The governmentshould allow FDI in select specialty retail areas like electronics, buildingequipments, furniture, sports goods and stationery. Such reforms in FDI willinduce a number of global chains to set up shops in India without posing anythreat to Indian retailers dealing in multiple brands.“FDI in retail trade can not only organize a significant part of the largely unorganizeddomestic retailing, but also invite established global retail brands into the Indian market,thereby creating greater outlets for outsourcing and marketing Indian products.” - Recommendations from Economic Survey of 2004-05. (Organized Retail Industry in India, 2006)FSI norms should also be liberalized by the government for designated retailprojects in order to reduce the project cost and encourage builders as wells asretailers to undertake new projects. The government, in order to boost retail 90
  • 92. Mall Mania in India – Changing Consumer Shopping Habitssector growth should accord industry status and ease labour laws. Apart fromthis, the local government authorities of each state must provide the necessaryinfrastructure such as roads, public transport and communication facilitieswithout which the most modern and expensive malls would not achieve theirgoal. Providing the necessary infrastructure will certainly will provide therequired boost for the development of the local economy, employment and apromising business climate (Retail Industry: Changing Trends, 2007).7.2.2 Recommendations for the DevelopersThe developers of the malls have to realize that they have to create a entireshopping destination for the shoppers which has a mix of retail outlets, eatingjoints, entertainment places which offers them the whole shopping experience.The promoters should take the help of retail experts to create a balanced tenantmix so that the shoppers are able to get everything they want under one roof,which will solve their purpose of coming to the shopping mall.The developers should try to create a specific image of the shopping malls by theprocess of segmentation and creation of a particular shopping environment. Forexample, the high end luxurious brands and the brands for price sensitive 91
  • 93. Mall Mania in India – Changing Consumer Shopping Habitsconsumers should not be put under one roof. This will help them captureaudience belonging to different customer segments. Apart from this, thedevelopers can also promote their shopping malls as specialized shoppingdestinations. For example, there can be specialized malls where a consumer cango to buy specific products, like a mall for jewellery, or a mall for furniture, etc.7.2.3 Recommendations for the RetailersThe organized retailers can be suggested to target the untapped middle incomegroup population of India. Although, it may not be so easy to change themindsets of these consumers might not be an easy task, it can be a means ofattracting the global retail giants that want to enter into the Indian economy.Another recommendation for the retailers would be that they should buildrelationships with their existing customer segments. The retailers should be wellversed with the consumer preferences and they should also offer them additionalservices apart from the products. For developing loyal customers, the employeesof the retail organizations would play an important role. Therefore, the must hirethe right kind of employees and train them.7.3 Limitations 92
  • 94. Mall Mania in India – Changing Consumer Shopping HabitsEvery piece of research has its own set of limitations which can arise during thecourse of conducting it. This research faced the following limitations - • Penaloza (1994) 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 (McCracken, 1998) hence influence the interpretation of data analysis (Kapur, 2006). This research is based on analyzing an Indian perspective and I, being an Indian, had awareness of a lot of facts which might have influenced the results at some point of time. • 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 twenty consumers which can be unrepresentative of the population. The rest of the information has been collected from secondary sources, reducing the validity of the data collected. It was very difficult to get interviews from the retailers. Hence, gathering empirical evidence for the research faced certain restrictions. 93
  • 95. Mall Mania in India – Changing Consumer Shopping Habits • This research mainly relies on secondary sources such as the research of other people; hence it was difficult to come to strong recommendations.7.4 ConclusionIt can be concluded from the research that the consumer markets in India havepotential for the future development of the retail industry as the market isgrowing, government policies are becoming liberal and the technologicaldevelopments in the country are favourable for operations in India. Due to thesepromising factors, more and more retail investors have been encouraged toinvest into the Indian market which has further impelled investments in the realestate industry.However, the success of malls in the long run in the Indian market wouldinvolve attraction of diverse consumer segments towards the malls whichincludes diverse income groups, nuclear families, working women, etc. Theprovision of wide choice and the comfort of being able to shop everything underone roof would attract all these groups of buyers. 94
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  • 126. Mall Mania in India – Changing Consumer Shopping HabitsMotivations”, International Journal of Retail and Distribution Management, Vol. 27No. 4, pp 154-165Stern, H. (1962), “The significance of impulse buying today, Journal of Marketing,Vol. 26, April, pp. 59-63 in Hausman A. (2000), “A Multi Method Investigation ofConsumer Motivation in Impulse Buying Behaviour”, Journal of ConsumerMarketing, Vol. 17 No. 5, pp 403-419Tata S. (2007), “Spurring Super - Shopping” inhttp://www.tata.com/trent/articles/20030305_spurring_super_shopping.htmaccessed on 25 July 2007Tauber, E.M. (1972), “Why do people shop?”, Journal of Marketing, Vol. 36 inHoward E. (2007), “New Shopping Centres: Is Leisure the Answer?”,International Journal of Retail and Distribution Management, Vol. 35 No. 8, pp 661-672Taylor S.L. & Cosenza R.M. (2002), “Profiling Later Aged Female Teens: MallShopping Behaviour and Clothing Choice”, Journal of Consumer Marketing, Vol. 19No. 5, pp 393-408 125
  • 127. Mall Mania in India – Changing Consumer Shopping HabitsWakefield, Kirk L and Julie Baker (1998), “Excitement at the Mall: DeterminantsEffects on Shopping Response,” Journal of Retailing, 74(4): 515-40 in Wilhelm W.B.& Mottner S. (2005), “Teens And Shopping Mall Preferences: A Conjoint AnalysisApproach To Understanding The Generational Shift Toward An ExperientialEconomy”, Journal Of Shopping Centre Research, Vol. 12 No. 1Wang, Shuguang, Ricardo Gomez-Insausti, Marco Biasiotto, Pina Barbiero andBruce McNally (2000), “A Comparative Analysis of Entertainment Cross-Shopping in a Power Node and a Regional Mall,” Journal of Shopping CenterResearch 7(1): 59-84 in Wilhelm W.B. & Mottner S. (2005), “Teens And ShoppingMall Preferences: A Conjoint Analysis Approach To Understanding TheGenerational Shift Toward An Experiential Economy”, Journal Of Shopping CentreResearch, Vol. 12 No. 1Wang C.L., Siu N.Y.M. & Hui A.S.Y (2004), “Consumer Decision-Making Styleson Domestic and Imported Brand Clothing”, European Journal of Marketing, Vol.38 No. 1/2, pp 239-252Wehrly, M.S. (1967), in Gruen, C. and Gruen, N (Eds), “Store Location andConsumer Behavior”, Urban Land Institute, Washington D.C, Technical Bulletin No.56 in Prendergast G., Marr N. & Jarratt B. (1998), “Retailers View on Shopping 126
  • 128. Mall Mania in India – Changing Consumer Shopping HabitsCenters: A comparison of Tenants and Non-Tenants”, International Journal ofRetail and Distribution Management, Vol. 26 No. 4, pp 162-171Wesley S., LeHew M., Woodside A.G. (2006), “Consumer Decision Making StylesAnd Mall Shopping Behavior: Building Theory Using Exploratory Data AnalysisAnd The Comparative Method”, Journal Of Business Research, Vol. 59, pp 535-548Wilhelm W.B. & Mottner S. (2005), “Teens And Shopping Mall Preferences: AConjoint Analysis Approach To Understanding The Generational Shift TowardAn Experiential Economy”, Journal Of Shopping Centre Research, Vol. 12 No. 1Wilson D.F. (1998), “Why Divide Consumer and Organizational BuyerBehaviour?”, European Journal of Marketing, Vol. 34 No. 7, pp 780-793Wright, L.T. and Crimp, M. (2000), “The Marketing Research Process”, Essex:Pearson Education Limited in Cheng C.W. (2006), “The Impact of Brand Imageon Consumer Behaviour of Luxury Goods of Fashion Industry in China”,University of NottinghamVigoda, L. (1981), “The dynamics of retail location”, in Mason, J.B. and Mayer,M.L., Modern Retailing Theory and Practice (2nd ed.), Business Publications Inc, 127
  • 129. Mall Mania in India – Changing Consumer Shopping HabitsPlano, TX, pp. 546-7 in Prendergast G., Marr N. & Jarratt B. (1998), “RetailersView on Shopping Centers: A comparison of Tenants and Non-Tenants”,International Journal of Retail and Distribution Management, Vol. 26 No. 4, pp 162-171Zhu, W., Timmermans H., & Wang D. (2006), “Temporal Variation In ConsumerSpatial Behavior In Shopping Streets”, Journal Of Urban Planning and Development,Vol. 132 No. 3, pp 166-171http://www.etretailbiz.com/dec2002/specialfeat.html (Accessed on 1 August2007) 128
  • 130. Mall Mania in India – Changing Consumer Shopping HabitsAPPENDICESAPPENDIX 1Factors Leading to Change in Consumer Shopping HabitsIndia has undergone certain fundamental changes in it political, economic andsocial structure over the years. Each of these factors has brought about changesin the way people perceive, select and finally purchase products. In this section,the PEST (Political, Economic, Social and Technological) factors that are affectingthe organization of the retail industry and are responsible for the change in theshopping habits of the Indian consumers have been discussed.Political FactorsEarlier, the foreign mall operators were not allowed to enter and operate in theIndian market as foreign companies and could not own real estate in India. Theforeign brands like Nike, Reebok and McDonalds still operate in the countrythrough their subsidiaries or franchises(http://www.atimes.com/atimes/South_Asia/FG24Df01.html). However, thegovernment is changing the FDI norms and making them more liberal so that itis easier for the foreign players to enter the Indian market. Currently, 129
  • 131. Mall Mania in India – Changing Consumer Shopping HabitsGovernment allows 100% FDI in cash-and-carry retail through the automaticroute and 51% in single branded products (Indian Organized Retail Industry(2005-2007) Pub Time: 2006/03http://www.the-infoshop.com/study/rnc36720-retail-industry-india.html).Most of the foreign players that are entering the market are setting up theiroutlets in shopping malls and are providing the consumers with internationalshopping experiences. Moreover, the government of the states like Delhi andNational Capital Region (NCR) is also permitting the use of land for commercialpurposes, thus increasing the availability of land for retail space(http://www.indianground.com/retail/retail-sector-in-india.aspx).Economic FactorsAlso, according to Jeff Immelt, Chief Executive, GE, “We believe that India is arising star at the beginning of a growth cycle, with consumer spendingincreasing at a strong rate, and people seeking and demanding a better quality oflife. India is going to be one of the fastest-growing regions of the future. Allconditions are right to invest in India.”(http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG114.htm) 130
  • 132. Mall Mania in India – Changing Consumer Shopping HabitsThere has been an immense amount of economic development in the countrywhich has led to the growth of the retail industry. The high and middle incomepopulation is growing at a pace of over 10% per annum and the disposableincome of these households is also increasing, With strong GDP performance, therising income levels and growing purchasing power of people, consumerspending has grown at an average of 11.5% annually over the past decadeleading to enormous growth potential and future prospects for the organizedretailers (http://www.indiainbusiness.nic.in/india-profile/ser-retail.htm). Thus,there has been a significant amount of growth in the retail industry and there isstill a lot of scope in the coming years due to factors such as the presence of avast market, higher disposable income and consumer spending as well asincreasing awareness of the consumers about new products and their quality(http://www.icmr.icfai.org/casestudies/catalogue/Marketing/MKTG114.htm).With the increase in the disposable incomes, the malls, which were earlier,perceived to be carrying highly priced merchandise has now come into the reachof a wider group of consumers.Social FactorsThe increasing demand which is the driving force of organized retailing in Indiais also because of a few major changes in the demographics of the consumers. As 131
  • 133. Mall Mania in India – Changing Consumer Shopping Habitsstated in the Chesterton Meghra findings in the Images Report 2005 on shoppingcentre development in India, the increase in the spending power of India’smiddle class which forms 20-25 percent of the total population is the majordriving factor of demand. With increased purchasing power and changinglifestyle of people, the upper class is expected to double itself in the coming threeyear period. Other major demographic factors which are responsible for thisdevelopment are income and consumption growth, increasing literacy levels,changes in the family structure and the role of women in the society and thegrowing role of children as influencers(http://www.etretailbiz.com/dec2002/specialfeat.html). Besides that, themajority of the population is under the age of 40(http://www.expresstextile.com/20051115/apparelbiz02.shtml) and there is alsoan increase in the young working population. The traditional consumers whichconstituted of joint families are being replaced by new consumer segments whichinclude nuclear families, single and working women, collegians with allowancesand increase in the number of working couples with hefty pay packets, whoactively support the new concept. All this has led to a positive impact on thedevelopment and success of the new retail formats(http://www.tata.com/trent/articles/20030305_spurring_super_shopping.htm). 132
  • 134. Mall Mania in India – Changing Consumer Shopping HabitsBesides these, few other social factors also contribute to this revolution in theIndian retail scenario and the consumer mindset. With increase in the number ofworking women, very little time is available to them for leisure activities,shopping being one of them, and there is increasing pressure on time. Therefore,they are looking for the convenience of one stop shopping, and speed andefficiency in the processing through which they can utilize their time in a bettermanner. Consumers these days have also started paying attention to betterquality, hygiene as well as customer service. These changes in consumerbehaviour also compliment the development of the retailing industry(http://www.afferguson.com/bulletin/ret-pri.htm).Technological FactorsDevelopments in the technological factors have provided a new dimension to theretail sector and the changing consumer shopping routine. It is technology thatdifferentiates organized retailing from the unorganized(http://www.indianmba.com/Occasional_Papers/OP129/op129.html). Theintroduction of point of sale equipment, bar codes and huge storage capacity forbilling and payment database has not only facilitated the management of largeset-ups with ease but it also allows operations to be recorded in a structured andsystematic way, enabling detailed analysis of the huge volume of sales and 133
  • 135. Mall Mania in India – Changing Consumer Shopping Habitstransactions. As retail is becoming more and more organized huge investmentshave to be planned for supply chain infrastructure. With this, informationsharing becomes important across the whole chain. Additionally, IT solutions arerequired for inventory planning, elimination of wastes, mapping consumerbehaviour and trends, planning of merchandise sourcing, management of multi-format stores and improved store experience.With improvement in technology, consumers are being facilitataed as themanagers can now lay more emphasis on consumer needs. Flexibility in themode of payment and cashless transactions has helped in driving sales. Anotherstep which retailers are taking towards consumer satisfaction is by the means ofrelationship marketing and improving delivery systems as well as enhancingtheir response to customer demands(http://icfaiuniversitypress.org/books/RetailIndustryChangeingTrends_ovw.asp). Through this they are trying to retain their old customers by laying moreemphasis on customer preferences and contentment. They maintain a track ofloyal customers as they are now aware that it is cheaper to retain an existingcustomer than to acquire a new one. Customers are being provided a lot ofconvenience in terms of methods of payment and membership cards providing 134
  • 136. Mall Mania in India – Changing Consumer Shopping Habitsoffers and discounts for frequent customers(http://www.etretailbiz.com/dec2002/specialfeat.html).All these technological developments along with improved infrastructure andbetter facilities like parking places, air conditioned atmosphere, elevators andescalators, etc that are made available to the customers in a shopping mall, play asignificant role in pulling the customers towards the mall, making mall shoppinga success and thereby improving realty prospects in any area(http://www.indianrealtynews.com/indian-states/). 135
  • 137. Mall Mania in India – Changing Consumer Shopping HabitsAPPENDIX II QUESTIONNAIRE FOR INTERVIEW OF THE RETAILERS IN THE MALL 1. How long has it been since you have opened the shop in this mall? 2. Why did you choose to open your outlet in the mall other than the unorganized market? 3. Do you have another retail outlet other than in this mall? 4. Do you reach the targeted sales level in this outlet or as much as the other outlets? 5. What do you do to attract customers to your outlet? 6. What do you think can be done to attract customers to a mall? What do you think of anchor stores? 7. What do you think of consumers’ perception of mall shopping? 8. What benefits do consumers obtain from coming to a mall rather than the unorganized market? What effect do these benefits have on sales? 9. If you have to open a new outlet, would you choose to open it in the upcoming malls? 136
  • 138. Mall Mania in India – Changing Consumer Shopping HabitsAPPENDIX III INTERVIEW QUESTIONNAIRES FOR CONSUMERS 1. Given the choice of shopping malls and unorganized local markets in India, where do you go for shopping? 2. How frequently do you go for shopping and out of that how many times do you go to malls? 3. Why do you shop in malls/ unorganized market? 4. Do you associate leisure activities with the shopping malls? 5. Do you go to malls for shopping, entertainment, eating out or socializing? 6. What all do you shop in malls and what all from the market? 7. Given a choice to going to the same shop in the mall and the unorganized market, where would you go and what factors would effect your decision? 8. Does proximity to the mall affect your shopping decision? 9. Do you find a pricing difference in malls and unorganized market and does it affect your shopping habits? 10. How important is the whole shopping experience, and how do you rate the shopping experience in malls and in the unorganized markets? 11. Do you associate image with shopping in the shopping mall? Does it influence your personality/ status? 137
  • 139. Mall Mania in India – Changing Consumer Shopping Habits 12. Eventually with the constant growth in the number of malls, where would you prefer to shop? 138

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