Professional Documents
Culture Documents
Jitender Singh
Under the guidance of
DrS.K.Chadha
Submitted
to
University Business
School Panjab
University Chandigarh
In partial fulfilment of the
requirements for the degree of
Masters of Business
Administration
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DECLARATION
I hereby certify that the work which is presented in the project entitled A Study of
Consumer Behaviour in Selected Shopping Malls of chandigarh, in fulfillment of the
requirement for the award of the Degree of Master of Business Administration to be
submitted at the
University Business School, Chandigarh is an authentic record of my own work carried out
during 2nd year under the supervision of Dr.Suresh.K.Chadha, Professor, University
Business School, Chandigarh. The matter presented in this report has not been submitted by
me for the award of any other degree of this or any other Institute/University.
Name:Jitender Singh
Place: Chandigarh
Date: April 04, 2012
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CERTIFICATE
This is to certify that Mr.Jitender Singh, a student of Master of Business Administration
(General) 4th semester at University Business School, Panjab University, Chandigarh, has
undertaken a project on A Study of Consumer Behaviour in Selected Shopping Malls
of
Chandigarh
in partial fulfilment of the requirement of Master of Business
Administration
Program(2009-2011).
The project has been successfully completed under my supervision and guidance. This
research project is the original work of the student.
Dr.S.K.Chadha,
Professor
University Business School,
Panjab University, Chandigarh.
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ACKNOWLEDGEMENT
I avail this opportunity to express my profound sense of sincere and deep gratitude to many
people who are responsible for the knowledge and experience I have gained during the
project work.
I extend my overwhelming gratitude to Dr. Suresh. K. Chadha, faculty University Business
School, for his valuable guidance, intellectual contribution; encouragement and meticulous
supervision during the preparation of this Project Report in spite of his busy schedule. I
would also profoundly thank Dr Navdeep Kaur and Dr VaneetaAgarwa, faculty University
Business School for providing the valuable inputs during project review sessions.
My hearty and inevitable thanks to all the respondents who helped me to bring out the project
in a successful manner. I would also like to extend my gratitude towards my parents, faculties
and friends who extended their wholehearted support towards the successful completion of
this Project Work.
Jitender Sin
gh
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EXECUTIVE SUMMARY
Retail sector in India has seen an unprecedented growth with the compounded annual growth
rate of 46%. The India Retail Industry is the largest among all the industries, accounting for
over 10 per cent of the countrys GDP and around 8 per cent of the employment.
Purchasing
power of Indian urban consumer is growing and branded merchandise is slowly becoming
lifestyle products that are widely accepted by the urban Indian consumer. There is no doubt
that the Indian retail scene is booming.
This research aims at studying the shoppers experience in a shopping mall and factors which
lead to satisfaction of shopper.
Specific objectives of this study can stated as
To segment the consumers on the basis shopping style and mall attributes.
Descriptive research was used to understand the consumer behaviour. The proposed research
is developed from quantitative point of view. In this study, an effort has been shown to
exhibit the various mall attributes and shopping style affecting the preference of a shopping
mall by the residents of tri-city. Factor analysis is used to extract the factors which are
important for customers; further cluster analysis was carried out on these extracted factors in
order to segment the customers in various categories depending upon the relative importance
given to each factor. Cluster analysis was carried out on consumer shopping style variables
also and customers were segmented into four categories. A total of 136 meaningful responses
were recorded for this research study.
As the consumers purchasing power is increasing and companies are competing with
each other to tap the huge market potential it becomes imperative to understand the
consumers perception and its possible implications for success of shopping mall.
Consumers values and attitude also have impact on his satisfaction level so it become
imperative to study consumer
life style and shopping preferences to provide better service to him.
This study can help identify the prominent factors leading to customer satisfaction and will
help mall owners to segment the consumer in order to cater their needs in better manner.
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CONTENTS
DECLARATION ..........................................................................................................
...........................
CERTIFICATE
.................................................................................................................................
......
ii
ACKNOWLEDGEMENT
.....................................................................................................................
EXECUTIVE
iii
SUMMARY
................................................................................................................... iv LIST
OF
TABLES
................................................................................................................................
vii
1.
INTRODUCTION
.............................................................................................................................. 1
2.
LITERATURE
REVIEW
................................................................................................................... 9
3.
RESEARCH
METHODOLOGY......................................................................................................
14
4.
DATA
ANALYSIS
AND
.............................................................................. 21
INTERPRETATION
5
CONCLUSION
.................................................................................................................................
. 45
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5.1
Findings....................................................................................................................
................... 45
5.2 Recommendations and Managerial Implications
........................................................................ 46
5.3 Limitations of the
Study.............................................................................................................. 46
5.4 Suggestion for Further
Research................................................................................................. 46
REFERENCES ..............................................................................................................
....................... 48
ANNEXURE
1.................................................................................................................................
..... 50
ANNEXURE
2.................................................................................................................................
..... 52
ANNEXURE
3.................................................................................................................................
..... 53
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LIST OF TABLES
Topics
Page
15
16
17
17
21
22
23
30
31
31
32
38
38
38
39
40
41
42
43
44
44
vii
1. INTRODUCTION
1.1 Background
The Indian retail industry is divided into organised and unorganised sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets
and retail chains, and also the privately owned large retail businesses. Unorganised retailing,
on the other hand, refers to the traditional formats of low-cost retailing, for example, the local
kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart
and pavement vendors, etc.(7)
The Indian retail industry is presently experiencing exponential growth and has been reported
as one of the top five fastest growing retail destinations globally with 46.6% of compounded
annual growth. For a long time the corner grocery store was the only choice available to the
consumer, especially in urban areas. This is slowly giving way to international formats of
retailing. But the organised retail sector accounts for only 5% of the total retail trade in India.
Retail is Indias largest industry sector, and generates more than 10% of Indias GDP
and
around 8 per cent of the employment. (1)
Technopak research shows that by 2020, almost 35% of Indianpopulation will be living in
urban centres which will contribute to ~ 65% to the GDP. Set to grow threefold in the next
five years, organised retail is even now experiencing the expansion phase. Currently Retail is
$450 bn market. Out of which organised retail accounts for $ 20 bn.(1)
International retailers see India as the last retailing frontier left as the Chinas retail
sector is
becoming saturated. However, the Indian Government restrictions on the FDI are creating
ripples among the international players like Walmart, Tesco and many other retail giants
struggling to enter Indian markets. As of now the Government has allowed only 51 per cent
FDI in the sector to one-brand
other
international
players are taking alternative routes to enter the Indian retail market indirectly via strategic
licensing agreement, franchisee agreement and cash and carry wholesale trading (since 100
per cent FDI is allowed in wholesale trading). (7)
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The trends that are driving the growth of the retail sector in India are
Source: ibef
Another credible factor in the prospects of the retail sector in India is the increase in the
young working population. In India, hefty pay packets, nuclear families in urban areas,
along with increasing working-women population and emerging opportunities in the
services sector. These key factors have been the growth drivers of the organized retail
sector in India which now boast of retailing almost all the preferences of life - Apparel &
Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products,
Travel and Leisure and many more. With this the retail sector in India is witnessing
rejuvenation as traditional markets make way for new formats such as departmental stores,
hypermarket,
supermarkets
and
specialty
stores.
The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially
the malls, the Tier II cities are no longer behind in the race. If development plans till 2007
is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the
remaining 81 in the Tier II cities. The government of states like Delhi and National
Capital Region (NCR) are very upbeat about permitting the use of land for commercial
development thus increasing the availability of land for retail space; thus making NCR
render to 50% of the malls in India.
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Source: ibef
Malls
The largest form of organized retailing today. Located mainly in metro cities, in proximity to
urban outskirts. Ranges from 60,000 sqft to 7,00,000sqft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon.
Malls are springing up in every city and are fast becoming sought-after entertainment
hotspots, with shopping as the by-product. From a situation where there were no malls about
a decade ago, the country will have over 300 malls translating to over 100 million sq.ft. in
available mall space by the end of 2007.
The Indian Governments initiatives to aid growth in the retail sector are showing very
visible
results. Investment in world-class infrastructure is expected to be close to USD 150 bn.
The hitherto restricted retail real estate sector was opened up for Foreign Direct
Investment in 2005. As a result, malls of international scale and quality are expected to
come up;
Mall growth is being seen as a clear indicator of the economic prosperity in India.
Significantly, the number of malls in the country has increased at a fast pace. And they
are doing brisk business. A trip to the local mall (there will be one in every locality
soon!) will bear this out;
From almost no malls existing in the country over a decade ago, there were 96
operational malls in August 2005;
Heres more good news. This phenomenon is not restricted to major cities of
the
country alone. It has percolated to the Tier II and Tier III cities as well.
The
contribution of Tier II cities in organized retail sales is expected to be about 20 25%.
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Mumbai, Bangalore, Hyderabad, Pune and New Delhi are expected to have nearly 75%
of the retail space in the country
Niche, speciality malls, discount malls, highway malls are the new trends (16)
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setting up Indu Mall and IJM is constructing IJM Mall in Hyderabad. ETL is constructing
ETL Central Mall in Coimbatore.
DLF Brands -- the retail and lifestyle division of DLF Ltd-plans to set up fourth store apart
from introducing DKNY jeans to India soon after opening three Donna Karan New York
(DKNY) stores in Delhi. In West, K Raheja Constructions is developing Infinity 2 mall at
Malad in Mumbai, Satra Property is setting up Dreams in Mumbai. Meanwhile, a Market
City mall in Kurla, Mumbai is coming up from Marketcity Developers. Paranjpe Schemes is
setting up Xion mall at Hinjewadi in Pune. DLF is setting up DLF Mall in Lower Parel in
Mumbai.
Kshitij Investment Advisory Company (KIAC), the real estate arm of Future Group, is
planning to set up two malls in the East by mid-2010, said a company source on promise of
anonymity. While J P Infrastructure (P) ltd and Prozone Enterprises (P) Ltd are setting up
Prozone Mall in Aurangabad.
Adidas India Marketing Pvt Ltd is planning to set up 200 branded stores which will include
maximum Adidas shop-in-shop formats and a few flagship stores in top 80 cities in India
in this financial year. This is mainly because retail rentals have fallen sharply,
says
TusharGoculdas its director - marketing and sales. Meanwhile, Portico New York, a brand by
Creative Portico (India) too is planning to set up 160 Portico branded shop-in-shop retail
formats and thereby increase penetration in North and South India, according to Chandan S,
its senior general manager-retail and marketing. (18)
SpecialtyStores
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword,RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
segments and have established themselves strongly in their sectors.
A large young working population with median age of 24 years, nuclear families in urban
areas, along with increasing workingwomen population and emerging opportunities in the
services sector are going to be the key factors in the growth of the organized Retail sector in
India. The growth pattern in organized retailing and in the consumption made by the Indian
population will follow a rising graph helping the newer businessmen to enter the India Retail
Industry. (6)
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Urbanization and increased incomes have been important in the rise of supermarkets, other
factors also played important roles. A crucial factor was the liberalization of retail foreign
direct investment (FDI), which sparked an avalanche of FDI (and competitive or at times
anticipatory domestic investments) through the 1990s and into the 2000s. Intense
competition, consolidation, and multinationalization in the supermarket sector have also
accelerated the spread of supermarket chains seeking to improve their competitive
positioning. In addition, domestic policies have often included tax incentives for
supermarkets and hygiene and location regulations for wetmarkets.(2)
The total concept and idea of shopping has undergone tremendous change in terms of format
and consumer buying behaviour, ushering in a revolution in shopping in India. Modern
retailing has entered into the Retail market in India as is observed in the form of bustling
shopping centres, multi-storied malls and the huge complexes that offer shopping,
entertainment and food all under one roof.
The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially the
malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is
studied it shows the projection of 220 shopping malls, with 139 malls in metros and the
remaining 81 in the Tier II cities. (2)
The BMI India Retail Report for the fourth quarter of 2011 forecasts that total retail sales will
grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by 2015. Robust economic
growth, population growth, the increasing wealth of individuals and the speedy construction
of organised retail infrastructure are key factors behind the forecast growth. As well as an
expanding middle and upper class consumer base, there will also be opportunities in India's
Tier-2 and Tier-3 cities. The greater availability of personal credit and a growing vehicle
population providing improved mobility also contribute to a trend of 11.9 per cent annual
retail sales growth. Tourism is also a major contributor to the Indian retail sector.
The country's franchise market is growing at a healthy pace of over 30 per cent per annum
with Tier-2 and Tier-3 cities gradually getting attracted to the network of retailers and
franchisers.
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"Franchising in India has witnessed impressive growth of around 30-35 per cent year-afteryear over the last 4-5 years with an estimated turnover of $4 billion. It is helping transform
good ideas into businesses. The FRO serves as a platform to identify, foster and
commercialise innovative business start-up ideas and to meet the demands of today's dynamic
entrepreneurial arena." according to GauravMarya, President, Franchise India.
According to study carried out by Assocham, a whooping Rs. 1,31,804crore has been
invested in organised retailing in last 6 months alone.
Here are some of the highlights of that study:
Organized retail growing at estimated 25%; set to penetrate tier II and tier III cities
like Pune, Chandigarh and Hyderabad; investment worth Rs27,550 crore announced
Real estate companies like Unitech and DLF draw up plans that cater to growing demand
of shopping malls; capex of Rs65,000 planned to be invested in real estate
development for retail space in next four to five years; food and grocery is next big
retail segment with investment plan of Rs22,100 crore
Hyper marts will soon dot the Indian retail space with investment announcements of
Rs29,154 crore expected to set them up
Companies like Reliance Retail have set aside Rs24,000 crore for setting up hyper marts
by 2010-11 in National Capital Region; Spencer retail announced capex of Rs3000 crore
for expanding its retail outlet and setting up hyper marts by 2010
Increased competition among food & grocery retailers will provide better services to
users; capex of Rs22,100 crore planned to set up chains of food and grocery stores in next
three years
Past six months witnessed major expansion in textile and apparel segment by large
retailers including Provogue, Trent and Arvind Mills drawing up an investment chart of
Rs7,900 crore for setting up new stores in Pune, Hyderabad, Navi Mumbai
Job creation centres of the future will be cities like Hyderabad, Pune, Surat and
Chandigarh among others (17)
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houses like
Tatas,
Rahejas, Piramalss, Goenkas have already made their foray into this
arena.
As the consumers purchasing power is increasing and companies are competing with
each other to tap the huge market potential it becomes imperative to understand the
consumers perception and its possible implications for success of shopping mall. Due to
intensified
competition it is becoming difficult for a consumer to choose the shopping destination. There
is increasing pressure on shopping mall to reflect a better image in mind of customers which
can provide them sustainable competitive advantage.
Consumers values and attitude also have impact on his satisfaction level so it
become
imperative to study consumer life style and shopping preferences to provide better service to
him.
This study can help identify the prominent factors leading to customer satisfaction and will
help mall owners to segment the consumer in order to cater their needs in better manner.
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2. LITERATURE REVIEW
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3. RESEARCH METHODOLOGY
CALL
9855017625
1
0
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Approx. Chi-Square
.595
332.630
df
171
Sig.
.000
Table 4.1
The KMO value came out to be 0.595 as shown in table 4.1 which is greater than 0.5, the
minimum value required for estimating the appropriateness of factor analysis. So factor
analysis can be applied for the given data.
1
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Table 4.2
Extraction Method: Principal Component Analysis.
The Eigen values are designed to show the proportion of variance accounted for by each
factor. The higher the Eigen value of a factor, the higher is the amount of variance explained
by that factor. The first Eigen value will be always the largest because the first factor will
explain the greatest amount of total variance.
As shown in table 4.2 the first five components explain the 70% of the total variance. The
first five principle components formed the extracted solution.
Once the factors have rotated the next is to rotate them. The goal is to rotate the axes to have
data points as close as possible to the rotated axes. Varimax rotation procedure was used in
present case. Varimax method is an orthogonal rotation method that minimizes the number of
variables that have high loadings on each factor. This method simplifies the interpretation of
the factors. The rotation maintains the cumulative percentage of variation explained by the
extracted components.
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Rotated Component Matrix
Component
1
Presence of large number of
.432
-.020
.205
-.388
-.217
.444
.250
-.071
.708
-.132
.145
.820
-.021
-.043
-.100
.196
-.171
.292
.512
-.036
.040
.073
.047
.007
.058
.059
.908
-.167
.065
.067
.941
.025
.529
.609
.086
-.808
-.376
-.137
.007
-.063
.714
-.133
.969
.053
.065
-.001
.092
.118
.028
.777
-.106
.071
-.036
-.041
.025
.089
.899
.045
.197
.911
-.065
.435
.124
.142
-.196
.354
.737
.103
.036
.198
.343
.021
.073
.047
.007
.908
brands
It is important to have a mall
closest to my place
It is important to have multiplex
and gaming zone at the Mall.
Presence of bench/Chair at
Shopping Mall.
Mall layout should aid in
.904
-.078
important.
Restrooms should be neat and
.150
-.044
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Do you think Malls should have
-.126
.715
.112
-.056
.195
.111
.002
.776
.351
.422
.086
.075
.068
-.052
malls
Mall should be air-conditioned
.004
Table 4.3
1) Convenience: the first component represents convenience and comfort through the
manifest variables viz.
Convience
Presence of bench/Chair at Shopping Mall.
It is important to have a mall closest to my place
Adequate parking space is very important for me.
Escalators should be provided in malls
P
Value
0.512
0.708
0 .714
0.776
1
4
ENTERTAINMENT
It is important to have multiplex and gaming zone at the Mall.
Good food court at shopping Mall is very important.
Do you think Malls should have their own websites to update shoppers about
new schemes and available products?
Mall should be air-conditioned
P value
0.82
0.609
0.715
0.351
3) Shopaholics
SHOPAHOLICS
Presence of large number of brands
Availability of shopping cart for shoppers.
Credit facility should be provided
Ambience of the mall is important for me.
P value
0.432
0.737
0.435
0.969
This category of respondents is serious customers for shopping malls. They prefer large
number of brands and also demand credit facility in order to cater their needs. Mall ambience
also affects their choice of shopping mall. This factor accounts for more than 25% of total
variance. This explains the largest variation.
4) Physical Evidence Seekers
PHYSICAL EVIDENCE SEEKERS
Cleanliness of the mall is important.
Restrooms should be neat and clean and properly maintained.
Presence of security features at shopping Mall is important for me.
It is important is for shopping Mall to provide fire and other safety features
to shoppers.
P value
0.908
0.941
0.777
0.911
This category of respondents gives importance to housekeeping and other physical evidence.
Clean restroom and safety features matters to them a lot. This factor accounts for 10% of total
variance.
5) Service
Service
P value
0.904
0.908
0.899
This component represents prompt service inside the mall stores. Easy accessibility,
architecture and proper sign and symbols for guiding the shoppers to the right stores matters
to them. This factor accounts for 6.6% of total variance.
columns
titled Stage Cluster First Appears indicate the stage at which a cluster is formed. The
last
column Next Stage indicates the stage at which another respondent or cluster is
combined
with the present one.
Agglomeration Schedule
Cluster Combined
Stage
Cluster 1
Cluster 2
Coefficients
Cluster 1
Next Stage
Cluster 2
18
133
.000
17
121
.000
105
120
.000
118
80
115
.000
35
75
110
.000
18
72
107
.000
69
25
88
.000
47
21
136
.500
85
85
134
1.000
75
10
17
132
1.500
108
11
11
126
2.000
106
12
10
125
2.500
59
13
83
118
3.000
70
14
82
117
3.500
20
15
74
109
4.000
100
16
48
81
4.500
58
17
18
79
5.167
19
18
67
75
5.833
68
19
18
23
6.667
17
95
20
46
82
7.500
14
89
21
124
131
8.500
71
22
100
123
9.500
61
23
113
114
10.500
86
24
77
112
11.500
63
25
76
111
12.500
48
26
106
13.500
60
27
94
97
14.500
76
28
49
84
15.500
62
29
36
70
16.500
47
30
64
68
17.500
68
31
57
66
18.500
32
32
54
57
19.500
31
77
33
47
50
20.500
72
34
19
27
21.500
49
35
80
98
22.833
111
36
56
135
24.333
66
37
86
129
25.833
51
38
87
116
27.333
79
39
65
108
28.833
52
40
95
96
30.333
50
41
71
73
31.833
99
42
55
63
33.333
75
43
52
62
34.833
67
44
39
44
36.333
80
45
40
41
37.833
108
46
28
38
39.333
69
47
25
36
40.833
29
81
48
30
76
42.500
25
93
49
19
44.167
34
115
50
61
95
46.000
40
64
51
51
86
47.833
37
78
52
14
65
49.667
39
77
53
15
130
51.667
112
54
13
128
53.667
101
55
12
127
55.667
92
56
35
60
57.667
83
57
32
45
59.667
84
58
48
53
61.833
16
67
59
10
24
64.000
12
94
60
105
66.333
26
97
61
100
104
68.667
22
88
62
49
93
71.000
28
98
63
59
77
73.333
24
81
64
26
61
75.750
50
88
65
43
78
78.250
86
66
20
56
80.750
36
87
67
48
52
83.383
58
43
98
68
64
67
86.117
30
18
90
69
28
72
88.867
46
104
70
29
83
91.700
13
85
71
124
94.700
21
110
72
47
122
97.700
33
79
73
58
103
100.700
101
74
92
99
103.700
106
75
55
85
106.700
42
96
76
94
101
110.367
27
102
77
14
54
114.033
52
32
97
78
51
117.700
51
112
79
47
87
121.400
72
38
109
80
33
39
125.233
44
104
81
25
59
129.114
47
63
93
82
69
119
133.114
107
83
31
35
137.114
56
100
84
32
141.114
57
103
85
21
29
145.281
70
111
86
43
113
149.531
65
23
105
87
20
91
153.781
66
117
88
26
100
158.126
64
61
102
89
42
46
162.543
20
113
90
16
64
166.976
68
116
91
34
89
171.476
118
92
12
176.143
55
103
93
25
30
180.862
81
48
99
94
10
102
185.695
59
117
95
18
22
190.595
19
114
96
55
90
195.595
75
120
97
14
201.040
60
77
113
98
48
49
207.156
67
62
120
99
25
71
213.390
93
41
119
100
31
74
219.690
83
15
114
101
13
58
226.190
54
73
122
102
26
94
232.694
88
76
110
103
239.361
84
92
121
104
28
33
246.349
69
80
124
105
43
253.433
86
115
106
11
92
260.683
11
74
123
107
69
268.016
82
124
108
17
40
275.516
10
45
116
109
37
47
283.316
79
121
110
26
291.793
71
102
122
111
21
80
300.709
85
35
128
112
15
309.709
78
53
126
113
42
318.797
97
89
127
114
18
31
328.797
95
100
119
115
338.853
105
49
131
116
16
17
349.019
90
108
125
117
10
20
359.894
94
87
129
118
34
371.144
91
130
119
18
25
385.202
114
99
126
120
48
55
399.260
98
96
129
121
37
413.426
103
109
132
122
13
428.143
110
101
123
123
11
444.766
122
106
130
124
28
462.161
107
104
125
125
16
480.261
124
116
127
126
18
502.527
112
119
128
127
526.618
113
125
134
128
21
555.511
126
111
131
129
10
48
584.578
117
120
132
130
618.802
118
123
133
131
659.124
128
115
135
132
10
718.684
121
129
133
133
797.570
132
130
134
134
880.367
127
133
135
135
1045.934
134
131
Table 4.4
Number of clusters
After applying K- means four clusters were formed from the marketing purpose. The
proportion of respondents falling in each category was appropriate to be considered as one
separate cluster.
30.000
33.000
29.000
44.000
Valid
136.000
Missing
.000
Table 4.5
The next table provides the initial and final cluster centres for all the nine variables of
shopping style.
imp for me
I prefer buying most popular
brands
Fashionable and attractive
styling is very important to me
I prefer to buy heavily when sale
is declared at discounted prices.
I carefully evaluate options to
find the best value for money
I prefer repeat purchase of my
favourite brands
I often but at the spur of the
moment and repent later on
I often confuse between so many
brands
Recommendation from
friend/peers/Family matters to
me
Table 4.6
imp for me
I prefer buying most popular
brands
Fashionable and attractive
styling is very important to me
I prefer to buy heavily when sale
is declared at discounted prices.
I carefully evaluate options to
find the best value for money
I prefer repeat purchase of my
favourite brands
I often but at the spur of the
moment and repent later on
I often confuse between so many
brands
Recommendation from
friend/peers/Family matters to
me
Table 4.7
The cluster centre values in Table 4.7 represent the mean values of each of the 9 variables
based on the feedback from respondents belonging to the respective clusters. The rating scale
used during data collection ranges from 1 to 5. Higher rating on a particular variable depicts
lower preference and lower rating represents higher preference. Rating 3 by respondents
represents neutral towards that variable.
First, Hierarchical clustering was carried out. This was done in order to find out the number
of clusters that exist in the data. The basic output of this exercise is the agglomeration
schedule, which eventually aggregates the 136 respondents into one cluster, going stage by
stage. The agglomeration schedule is shown in Table 4.9.
The first column in Table 4.9 represents the stages, total number of which is always one less
than the number of respondents or objects. The squared Euclidean distance between these two
respondents is given under the fourth column labeled Coefficients.
columns
titled Stage Cluster First Appears indicate the stage at which a cluster is formed. The
last
column Next Stage indicates the stage at which another respondent or cluster is
combined with the present one.
Agglomeration Schedule
20
45
.000
102
21
44
.000
10
82
22
43
.000
11
109
23
42
.000
12
120
24
41
.000
13
42
25
35
36
.000
26
26
28
35
.000
25
28
27
33
34
.000
28
28
28
33
.000
26
27
29
29
28
30
.000
28
56
30
24
27
.000
56
31
25
26
.000
75
32
102
135
.031
53
33
108
112
.063
83
34
63
89
.094
87
35
62
88
.125
73
36
10
83
.156
73
37
11
81
.188
57
38
70
74
.219
76
39
29
39
.250
51
40
37
38
.281
88
41
66
84
.323
105
42
109
.370
24
96
43
16
61
.424
86
44
107
116
.487
79
45
56
113
.549
67
46
93
97
.612
15
16
105
47
71
94
.674
80
48
75
82
.737
81
49
77
.799
84
50
53
57
.862
68
51
29
65
.945
39
65
52
105
1.039
19
103
53
91
102
1.132
32
94
54
17
87
1.226
79
55
12
79
1.320
77
56
24
28
1.414
30
29
92
57
11
21
1.507
37
84
58
90
120
1.622
17
98
59
92
117
1.738
106
60
60
73
1.855
90
61
13
64
1.972
107
62
54
58
2.089
76
63
19
51
2.208
103
64
20
32
2.328
82
65
29
103
2.452
51
78
66
40
2.577
14
121
67
56
72
2.712
45
100
68
53
55
2.858
50
99
69
18
99
3.006
93
70
15
111
3.162
99
71
67
78
3.319
83
72
22
76
3.475
94
73
10
62
3.631
36
35
113
74
31
59
3.787
95
75
23
25
3.954
31
97
76
54
70
4.122
62
38
85
77
12
98
4.314
55
108
78
29
69
4.513
65
86
79
17
107
4.716
54
44
91
80
71
119
4.934
47
97
81
75
85
5.153
48
100
82
20
5.375
21
64
116
83
67
108
5.609
71
33
124
84
11
5.846
49
57
98
85
54
110
6.117
76
108
86
16
29
6.389
43
78
107
87
63
101
6.680
34
110
88
37
96
6.971
40
106
89
48
50
7.284
131
90
60
106
7.600
60
93
91
17
52
7.938
79
114
Table 4.8
Number of clusters
After applying K- means four clusters were formed from the marketing purpose. The
proportion of respondents falling in each category was appropriate to be considered as one
separate cluster.
25.000
29.000
42.000
40.000
Valid
136.000
Missing
.000
Table 4.9
The next table provides the initial and final cluster centres for all the five variables of
shopping style.
Initial Cluster Centres
Cluster
1
Convience
4.25
3.50
3.00
4.50
Entertainment
4.75
3.75
3.25
3.00
Shopalic
4.00
2.75
3.75
4.50
physical Evidence
4.00
2.25
4.02
3.75
Service
4.67
2.33
4.33
3.00
Table 4.10
Convience
3.94
3.34
3.39
4.28
Entertainment
4.22
4.26
3.45
3.68
Shopalic
4.34
3.28
3.71
4.02
physical Evidence
3.52
3.18
4.18
3.71
Service
3.27
3.06
3.94
4.03
Table 4.11
The cluster centre values in Table 4.11 represent the mean values of each of the 5 variables
based on the feedback from respondents belonging to the respective clusters. The rating scale
used during data collection ranges from 1 to 5. Higher rating on a particular variable depicts
lower preference and lower rating represents higher preference. Rating 3 by respondents
represents neutral towards that variable.
Cluster 4 Pragmatic
Cluster 4 respondents focus on convenience, shopping and safety features. They are neutral
towards entertainment and physical evidence.
tabulation is
the
process
of
creating
a contingency
table from
the
Table 4.13
We can see that there is almost equal proportion of male and female in total. In category one
and two males are in higher number but in cluster 3 and 4 females outnumber males. So we
can say that females prefer good quality but moderately buy best-selling brands. They buy
products having fashionable and attractive styling.
Table 4.14
Table 4.15
The majority of respondents belong to income group 6.1 - > 8 lakhs groups. Cluster 3 and
cluster 4 have majority of respondents belonging to income group 6.1 8 lakhs.
Table 4.16
Not much significant results can be obtained as both represent the clusters in equal proportion
except cluster 2 in which Males is present in much higher number as compared to females. So
we can say that males are more inclined towards entertainment as compared to females.
Table 4.17
4.8.3 Relationship between Mall Attributesand Household Income
Table 4.18
The majority of respondents belong to income group 6.1 - > 8 lakhs groups. Cluster 3 and
cluster 4 have majority of respondents belonging to income group 6.1 8 lakhs which means
these respondents are more demanding and pragmatic.
5 CONCLUSION
5.1 Findings
The study has focused on two major constructs, shopping mall attributes and consumer
shopping style. Findings of the study, with respect to both the construct can be concluded
with recommendation and managerial implications.
Shopping mall attributes
A two stage factor analysis was performed i.e. factor extraction and rotation of principle
components. The study included 19 variables which could have an impact of consumer
choice of shopping mall. the first five components explain the 70% of the total variance. The
first five principle components formed the extracted solution. The factors which got extracted
amongst the various variables for a preferable shopping mall are convenience, entertainment,
service, shopaholics and physical evidence seekers. These extracted factors consist of pool of
factors such as presence of multiplex, food court, architecture, safety, cleanliness and location
of shopping mall etc.
These factors were further subjected to cluster analysis in order to segment the customer on
the basis of importance given to various attributes. The respondents were classified into four
clusters viz. fun loving shoppers, entertainers, demanders and pragmatic.
Consumer shopping style
Cluster analysis was performed with K-means clustering for a four cluster solution on the
total sample space. Cluster 4 have the largest number of respondents which gives moderate
importance to good quality products, moderately brand conscious nut neutral towards fashion
and styles. They do not buy during sale. They are neutral for value for money. They buy their
favourite brands only. Not sure of being impulsive and are not confused while shopping.
Relationship of clusters with demographic variables.
A healthy proportion of both the genders were found in all the categories with male
dominating in cluster 1 and cluster 2 whereas females outnumbered males in cluster 3 and
cluster 4 as far as consumer shopping style is concerned. Majority of respondents were from
REFERENCES
Accessed
on
28/08/2011.
8. http://www.ibef.org/industry/retail.aspx, Accessed on 28/08/2011.
9. Shaliesh K. Kaushal, Sanjay Medhavi (May, 2011), To identify the prominent factors
of shopping mall behaviour: A factor Analysis, India Journal of marketing.
10. DhruvGrewal, Michael Levy (April,2007), Retailing research: Past, present, and
future Journal of retailing.
11. R. Tamilarasan (July,2007), A study on retail store services quality dimensions in
select retail stores of Chennai city,India Journal of marketing
12. Manju Rani Malik (April, 2011), Determinants of retail customer satisfaction- A
study of organized retail outlets in Kurukshetra, India Journal of marketing
13. Krishna, Aradhna, Richard Briesch, Donald R. Lehmann and Hong Yuan (2002), A
Meta-analysis of the Impact of Price., Journal of marketing.
14. Raju M Rathod, (April 2004), Challenges and strengths of supermarket, India Journal
of marketing.
15. http://www.fibre2fashion.com/industry-article/free-retail-industry-article/indianretail-industry-its-growth-challenges-and-opportunities/indian-retail-industry-itsgrowth-challenges-and-opportunities3.asp.Assessed on 15/09/2011
16. http://www.india-reports.com/summary/Growth-Malls-India.aspx.Assessed
18/10/2011
on
ANNEXURE 1
Questionnaire
Dear Sir/Madam,
I, Jitender Singh, student of University Business School, am doing a research on
Consumer Behaviour in Shopping Malls. I request you to share your experience
which can help me in completion of my project. I promise you that this information will
only be used only for
academic purpose and will not be revealed to anyone. Thanks for your support.
1.) Kindly encircle one of the given responses.
S.No
Strongly
disagree
Disagree
Neutral
Agree
Strongly
agree
7
8
9
10
11
12
13
14
15
17
18
19
16
S.No
Shopping style
Strongly
disagree
1
Disagree
2
Neutral
3
Agree
4
Strongly
agree
5
3
4
5
6
7
8
9
Personal Details
1) Name
2) Gender
Male
_______
Female ______
3) Age
a)
b)
c)
d)
e)
15 - 19 years
20 25 years
26 30 years
30 45 years
> 45 years
Thank you
ANNEXURE 2
Variable View of SPSS17
Shopping mall attributes
ANNEXURE 3
Data View in SPSS