Shodhganga.inflibnet.ac.in



Chapter I

INTRODUCTION

RETAILING AND PROFILE OF SHOPPING MALLS

1.1 Introduction

India, a country which had firm cultural links from medieval time, is trying to match the standards of other developed countries. In the last decade there has been a large increase in the number of malls and shopping centers. There were about 190 malls by the end of the year 2010, which swell to 280 in 2011-12. In Uttar Pradesh, there are about 51.

1.2 Retailing in India

Retailing is one of the pillars of Indian economy and accounts for 14 to 15 percent of its GDP. The Indian retail market is estimated to be US$ 450 billion and one of the top five retail markets in the world by economic value. India is one of the fastest growing retail markets in the world, with 1.2 billion people .India's retailing industry is essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4% of the industry, and these were present only in large urban centers. India's retail and logistics industry employs about 40 million Indians (3.3% of Indian population).Until 2011, Indian Central Government denied Foreign Direct Investment (FDI) in multi-brand retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets. Even single-brand retail was limited to 51% ownership and a bureaucratic process. In November 2011, India's Central Government announced retail reforms for both multi-brand stores and single-brand stores. These market reforms paved the way for retail innovation and competition with multi-brand retailers such as Wal-Mart, Carrefour and Tesco, as well single brand majors such as IKEA, Nike, and Apple. The announcement sparked intense activism, both in opposition and in support of the reforms. In December 2011, under pressure from the opposition, Indian Government placed the retail reforms on hold till it reaches a consensus. In January 2012, India approved reforms for single-brand stores welcoming anyone in the world to innovate in Indian retail market with 100% ownership, but imposed the requirement that the single brand retailer source 30% of its goods from India. Indian Government continues the hold on retail reforms for multi-brand stores. In June 2012, IKEA announced it has applied for permission to invest $1.9 billion in India and set up 25 retail stores. Fitch believes that the 30% requirement is likely to significantly delay if not prevent most single brand majors from Europe, USA and Japan from opening stores and creating associated jobs in India.

On 14 September 2012, the Government of India announced the opening of FDI in multi-brand retail, subject to approvals by individual states. This decision has been welcomed by economists and the markets, however has caused protests and an upheaval in India's Central Government's political coalition structure. On 20 September 2012, the Government of India formally notified the FDI reforms for single and multi-brand retail, thereby making it effective under Indian law. On 7 December 2012, the Federal Government of India allowed 51% FDI in multi-brand retail in India. The Feds managed to get the approval of multi-brand retail in the parliament despite heavy uproar from the opposition. Some states will allow foreign supermarkets like Wal-Mart, Tesco and Carrefour to open while other states will not. Organized retailing, in India refers to trading activities undertaken by licensed retailers, that is; those who are registered for sales tax, income tax, etc. These include the publicly traded supermarkets, corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganized retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local corner shops, owner manned general stores, paan shops, convenience stores, hand cart and pavement vendors, etc. Organized retailing was absent in most rural and small towns of India in 2010. Supermarkets and similar organized retail accounted for just 4% of the market.

Most Indian shopping takes place in open markets or millions of small, independent grocery and retail shops. Shoppers typically stand outside the retail shop, ask for what they want, and cannot pick or examine a product from the shelf. Access to the shelf or product storage area is limited. Once the shopper requests the food staple or household product they are looking for, the shopkeeper goes to the container or shelf or to the back of the store, brings it out and offers it for sale to the shopper. Often the shopkeeper may substitute the product, claiming that it is similar or equivalent to the product the consumer is asking for. The product typically has no price label in these small retail shops; although some products do have a manufactured suggested retail price (MSRP) pre-printed on the packaging. The shopkeeper prices the food staple and household products arbitrarily, and two consumers may pay different prices for the same product on the same day. Price is sometimes negotiated between the shopper and shopkeeper. The shoppers do not have time to examine the product label, and do not have a choice to make an informed decision between competitive products.

The typical Indian retail shops are very small. Over 14 million outlets operate in the country and only 4% of them being larger than 500 sq. ft. (46 m2) in size. India has about 11 shop outlets for every 1000 people. Vast majority of the unorganized retail shops in India employ family members, do not have the scale to procure or transport products at high volume wholesale level, have limited to no quality control or fake-versus-authentic product screening technology and have no training on safe and hygienic storage, packaging or logistics. The unorganized retail shops source their products from a chain of middlemen who mark up the product as it moves from farmer or producer to the consumer. The unorganized retail shops typically offer no after-sales support or service. Finally, most transactions at unorganized retail shops are done with cash, with all sales being final.

Until the 1990s, regulations prevented innovation and entrepreneurship in Indian retailing. Some retails faced complying with over thirty regulations such as "signboard licenses" and "anti-hoarding measures" before they could open doors. There are taxes for moving goods to states, from states, and even within states in some cases. Farmers and producers had to go through middlemen monopolies. The logistics and infrastructure was very poor, with losses exceeding 30%.Through the 1990s, India introduced widespread free market reforms, including some related to retail. Between the years 2000 to 2010, consumers in select Indian cities have gradually begun to experience the quality, choice, convenience and benefits of organized retail industry.

1.3 Growth of Retail Sector over 1997-2010

India in 1997 allowed Foreign Direct Investment (FDI) in cash and carry wholesale. Then, it required Government approval. The approval requirement was relaxed, and automatic permission was granted in 2006. From2000 to 2010, Indian retail attracted about $1.8 billion in Foreign Direct Investment, representing a very small 1.5% of total investment flow into India. Single brand retailing attracted 94 proposals between 2006 and 2010, of which 57 were approved and implemented. For a country of 1.2 billion people, this is a very small number. Some claim one of the primary restraints inhibiting better participation was that India required single brand retailers to limit their ownership in Indian outlets to 51%. China in contrast allows 100% ownership by foreign companies in both single brand and multi-brand retail presence. Indian retail has experienced limited growth, and its spoilage of food harvest is amongst the highest in the world, because of very limited integrated cold-chain and other infrastructure. India has only 5386 stand-alone cold storages, having a total capacity of 23.6 million metric tons. However, 80 percent of this storage is used only for potatoes. The remaining infrastructure capacity is less than 1% of the annual farm output of India and grossly inadequate during peak harvest seasons. This leads to about 30% losses in certain perishable agricultural output in India, on average, every year.

Indian laws already allow Foreign Direct Investment in cold-chain infrastructure to the extent of 100 percent. There has been no interest in Foreign Direct Investment in cold storage infrastructure build out. Experts claim that cold storage infrastructure will become economically viable only when there is strong and contractually binding demand from organized retail. The risk of cold storing perishable food, without an assured way to move and sell it, puts the economic viability of expensive cold storage in doubt. In the absence of organized retail competition and with a ban on Foreign Direct Investment in multi-brand retailers, Foreign Direct Investments are unlikely to begin in cold storage and farm logistics infrastructure.

Until 2010, intermediaries and middlemen in India have dominated the value chain. Due to a number of intermediaries involved in the traditional Indian retail chain, norms are flouted and pricing lacks transparency. Small Indian farmers realize only one-third of the total price paid by the final Indian consumer, as against two-third by farmers in nations with a higher share of organized retail. The 60%+ margins for middlemen and traditional retail shops have limited growth and prevented innovation in Indian retail industry.

India has years of debate and discussions on the risks and prudence of allowing innovation and competition within its retail industry. Numerous economists repeatedly recommended to the Government of India that legal restrictions on organized retail must be removed, and the retail industry in India must be opened to competition. For example, in an invited address to the Indian parliament in December 2010, Jagdish Bhagwati a Professor of Economics and Law at the Columbia University analyzed the relationship between growth and poverty reduction, then urged the Indian parliament to extend economic reforms by freeing up of the retail sector, further liberalization of trade in all sectors, and introducing labor market reforms. Such reforms Professor Bhagwati argued will accelerate economic growth and make a sustainable difference in the life of India's poorest.

A report which was published in the year 2007, noted that an increasing number of people in India are turning to the services sector for employment due to the relative low compensation offered by the traditional agriculture and manufacturing sectors. The organized retail market is growing at 35% annually while growth of unorganized retail sector is pegged at 6%.

The Retail Business in India is currently at the point of inflection. As of 2008, rapid changes with investments to the tune of US $ 25 billion were being planned by several Indian and multinational companies in the next 5 years. It is a huge industry in terms of size and according to India Brand Equity Foundation (IBEF), it is valued at about US$ 395.96 billion. Organized retail is expected to garner about 16-18 percent of the total retail market (US $ 65-75 billion) in the next 5 years.

India has topped the A.T. Kearney’s annual Global Retail Development Index (GRDI) for the third consecutive year, maintaining its position as the most attractive market for retail investment. The Indian economy has registered a growth of 8% for 2007. The prediction for 2008 was 7.9. The enormous growth of the retail industry has created a huge demand for real estate. Property developers are creating retail real estate at an aggressive pace and by 2010, 300 malls are estimated to be operational in the country.

1.1.1 Growth of Retail Sector after 2011

Before 2011, India had prevented innovation and organized competition in its consumer retail industry. Several studies claim that the lack of infrastructure and competitive retail industry is a key cause of India's persistently high inflation. Furthermore, because of unorganized retail, in a nation where malnutrition remains a serious problem, food waste is rife. Well over 30% of food staples and perishable goods produced in India spoil because poor infrastructure and small retail outlets prevent hygienic storage and movement of the goods from the farmer to the consumer.

In one of the report of Year 2011 it is mentioned that Indian retail market as generating sales of about $470 billion a year, of which a minuscule $27 billion comes from organized retail such as supermarkets, chain stores with centralized operations and shops in malls. The opening of retail industry to free market competition, some claim will enable rapid growth in retail sector of Indian economy. Others believe the growth of Indian retail industry will take time, with organized retail possibly needing a decade to grow to a 25% share. A 25% market share, given the expected growth of Indian retail industry in 2021, is estimated to be over $250 billion a year.

The Economist forecasts that Indian retail will nearly double in economic value, expanding by about $400 billion by the Year 2020. The projected increase alone is equivalent to the current retail market size of France. In 2011; food accounted for 70% of Indian retail, but was under-represented by organized retail. A.T. Kearney estimates India's organized retail had a 31% share in clothing and apparel, while the home supplies retail was growing from 20% to 30% per year.  These data correspond to retail prospects prior to November announcement of the retail reform. The Indian market offers endless possibilities for investors. It might be true that India has the largest number of shops per inhabitant.

1.4 The Indian Retail Market

Indian market has high complexities in terms of a wide geographic spread and distinct consumer preferences varying by each region necessitating a need for localization even within the geographic zones. India has highest number of outlets per person (7 per thousand) Indian retail space per capita at 2 sq ft (0.19 m2)/ person is lowest in the world Indian retail density of 6 percent is highest in the world 1.8 million households in India have an annual income of over [pic]45 Lacs (US$82,659.60).

While India presents a large market opportunity given the number and increasing purchasing power of consumers, there are significant challenges as well given that over 90% of trade is conducted through independent local stores. Challenges include: Geographically dispersed population, small ticket sizes, complex distribution network, and little use of IT systems, limitations of mass media and existence of counterfeit goods.

Indian apparel retailers are increasing their brand presence overseas, particularly in developed markets. While most have identified a gap in countries in West Asia and Africa, some majors are also looking at the US and Europe. Arvind Brands, Madura Garments, Spykar Lifestyle and Royal Classic Polo are busy chalking out foreign expansion plans through the distribution route and standalone stores as well. Another denim wear brand, Spykar, which is now moving towards becoming a casualwear lifestyle brand, has launched its store in Melbourne recently. It plans to open three stores in London by 2008-end

The low-intensity entry of the diversified Mahindra Group into retail is unique because it plans to focus on lifestyle products. The Mahindra Group is the fourth largest Indian business group to enter the business of retail after Reliance Industries Ltd, the Aditya Birla Group, and Bharti Enterprises Ltd. The other three groups are focusing either on perishables and groceries, or a range of products, or both.

• REI AGRO LTD Retail: 6TEN and 6TEN kirana stores

• Future Groups-Formats: Big Bazaar, Food Bazaar, Central, Fashion Station, Brand Factory, Home Town, E-Zone etc.

• Raymond Ltd.: Textiles, The Raymond Shop, Park Avenue, Park Avenue Woman, Parx, Colourplus, Neck Ties & More, Shirts & More etc.

• Fabindia: Textiles, Home furnishings, handloom apparel, jewellery

• RP-SanjivGoenka Group Retail-Formats: Spencer’s Hyper, Spencer's Daily, Music World, Au Bon Pain, Beverly Hills Polo Club

• The Tata Group-Formats: Westside, Star India Bazaar, Steeljunction, Landmark, Titan,Tanishq, Croma.

• Reliance Retail-Formats: Reliance MART, Reliance SUPER, Reliance FRESH, Reliance Footprint, Reliance Living, Reliance Digital, Reliance Jewellery, Reliance Trends, Reliance Autozone, iStore

• K Raheja Corp Group-Formats: Shoppers Stop, Crossword, Hyper City, Inorbit Mall

• Nilgiri’s-Formats: Nilgiris’ supermarket chain

• Shri Kannan Departmental Store (P) Ltd ., : Groceries, Clothing, Cosmetics [Western Tamil Nadu's Leading Retailer]

• Lifestyle International-Lifestyle, Home Centre, Max, Fun City and International Franchise brand stores.

• Pyramid Retail-Formats: Pyramid Megastore, TruMart

• Next retail India Ltd (Consumer Electronics)(next.co.in)

• Vivek Limited Retail Formats: Viveks, Jainsons, Viveks Service Centre, Viveks Safe Deposit Lockers

• PGC Retail -T-Mart India Switcher, Respect India, Grand India Bazaar,etc.,

• Aditya Birla Group- Formats: more., acquiuredPantaloon from Future group, acquired Trinetra (Fabmall and Fabcity)

• Vishal Retail Group-Formats: Vishal Mega Mart

• BPCL-Formats: In & Out

• Shoprite Holdings-Formats: Shoprite Hyper

• Paritala stores bazar: honey shine stores

• Kapas- Cotton garment outlets

• AaramShop - a platform which enables hybrid commerce for thousands of neighborhood stores.

• Gitanjali- Nakshatra, Gili, Asmi, D'damas, Gitanjali Jewels, Giantti, Gitanjali Gifts, etc.

• The world's largest retailer by sales, Wal-Mart Stores Inc and Sunil Mittal's Bharti Enterprises have entered into a joint venture agreement and they are planning to open 10 to 15 cash-and-carry facilities over seven years. The first of the stores, which will sell groceries, consumer appliances and fruits and vegetables to retailers and small businesses, is slated to open in north India by the end of 2008. see also for more Detail Pick/Müller

• Carrefour, the world’s second largest retailer by sales, is planning to set up two business entities in the country one for its cash-and-carry business and the other a master franchisee which will lend its banner, technical services and know how to an Indian company for direct-to-consumer retail. The world’s fifth largest retailer by sales, Costco Wholesale Corp (Costco) known for its warehouse club model is also interested in coming to India and waiting for the right opportunity.

• Tesco Plc. plans to set up shop in India with a wholesale cash-and-carry business and will help Indian conglomerate Tata group to grow its hypermarket business.

1.5 Apparel Retail

Indian clothing retail sector accounts for 36% of overall organized retail business. It is henceforth the largest sector; with growing middle class and working sector inclusive of women wearing western wear to work, and working under time pressure, market provides ample profitable room for readymade clothes which is likely to grow by multifold.

A country where more than 1000 movies are made over a year, where fashion dictates the persona of the general masses; clothing retail provides booming platform various clothing brands. Movies not only effect the clothing retail where as it has a brush off effect on other sectors as well such as footwear, wedding and fashion accessories.

With presence of Modern format retailers, leading foreign clothing brands and with the use of plastic money affluent urban populations are shopping like never before.

In the large urban centers, apparel retailers, like Shoppers Stop, Westside and Pantaloon have popularized their private labels, which have attracted urban shoppers. Metros having presence of world leading brands such as Versace, Dolce & Gabbana, Armani, Levis & Strauss and various others attracts the Indian consumers drastically.

Small & Medium or single brand stores make commendable marketing & customer loyalty programs in order to retain their loyal customers. Large format stores such as Westside which carries only its own private labels, while for the other stores, 20-30% of their apparel turnover is from private labels. Customers have loyalty to a store rather than any particular garment brand. This has led to a thriving unbranded or local brand market for ready-to-wear clothes leading to severe competition. Customers look to design and fit of the clothes, and use the shop’s name as a quality standard.

As apparel retail is led by fashion, a player needs to keep a close watch on fashion amongst teenagers as they are the trend setters. Role of Bollywood in spreading fashion needs to be understood. Seasonal variations on stocking pattern and need to clear inventory at the end of season should be understood by apparel retailer. Typically once an item is sold from the outlet, retailer ensures that there is no repetition of same. It gets replaced by different design, style, colour. Importance of store layout, décor is very critical. A browser visiting the store frequently likes to see changes in the layout otherwise he may carry the impression that stocks are not moving out of the store. Category management becomes very crucial function as transformation of design into production and delivery has to be completed before fashion or fad changes in the market.

This highlights the importance of sales promotions- short term activities which induces trade or consumer to buy now rather than in future as the value of apparel after the season goes down substantially and inventory carrying burden turns out to be very high. Apparel retailer needs to understand critical role of sales promotions. Attractive promotions induces purchase acceleration, stock piling and brand switching on the part of a consumer which substantially reduces retailers financial and inventory risk and consumer’s financial risk and psychological risk.

Communication activities followed by apparel retail stores in organized sector. Both exclusive and multi-brand retailers in apparel retail sector are studied. On the basis of practices, it poses few challenges which managers in the sector encounters several studies on apparel retail sector .

Indian organized retail industry is poised for growth. Apparel sector in particular has a great opportunity with alignment of Indian economy to globalised markets. With the widespread use of communication activities which provide material inducements to consumers and trade it becomes imperative for managers to understand such practices and understand challenges. This study investigates communication activities of various apparel stores in Lucknow & Gurgaon market and compares them on various dimensions. It presents major findings and provides insights on consumer behavior. Pantaloon, for instance, has a loyalty program called `Green Card' Rewards programs, Westside has `Club West' to woo the customers. Managerial challenges are posed in planning and implementing such activities.

1.6 Need for the Study

In order to sharpen the marketing mix companies have been moving from marketing at the aggregate level, called Mass Marketing, to Mass customization to the level of 1-to-1 marketing where each customer is treated as a separate segment. The factors that have weighed heavily on this decision are the need to fine-tune the marketing strategies and the realization that the cost of retaining customer (read servicing) an existing customer is much lower than acquiring a new customer.

Customer acquisition and retention for a retailer is more critical and difficult for the following reasons:

• Most retailers have a defined physical catchment area defined by the distance that most of its shoppers would travel to visit the store. Although it differs with the kind of product bought by the shopper, there is a significant impact on the frequency of visit to the store. Thus, a store has to work within a given geographical.

• Not every retailers is able to offer the merchandise that is very different nor the positioning of the store is differentiated; and

• Every visit of the shopper is an encounter and a moment of truth. Unless the interaction has been satisfactory, the next visit is not guaranteed. In case the store provides a compelling reason for visit, the amount of purchase per visit is likely to go down.

Under this condition, it is imperative that the store should understand the shoppers it wants to attract and keep. Since retailing is a service business, and is not just distribution, there are more “soft” than “hard” variables that would lead to creation of a customer franchise. It is not only important as to what is being retailed, it is equally, may be more, important as to how it is being retailed. This condition shifts the focus from the merchandise being handled to the processes that make shopping a memorable experience. All the retailers that believe in this paradigm would require that shoppers be segmented on the basis of attitude and behavior than on demographic. The latter is a pre-condition that works as eliminator and not describing the segment the retailer would serve. Also, a retail outlet is likely to be patronized more when it becomes a part of the life of the shopper

Most of the investment in a retail outlet is of fixed nature. It is more like a sunk cost, as is in the case of an airline. Of all the investments, the real estate costs are the highest and the store needs to improve on its productivity by utilizing the space optimally. This can be achieved by ensuring that there is high level of conversion rate from visitors to buyers. This conversion is possible by impacting the behavior using the variables, such as merchandise, display, layout and other communication, within the control of the retailer. It is, thus, necessary for the retailers to know how shoppers behave and whether there are any patterns that can be used to design the retail mix for specific set of shoppers. It can even be used for targeting and develop the position.

Shopping is an activity aimed at collecting information. The search processes give shoppers an opportunity to ensure that they take the right decision. In addition, they also derive emotional satisfaction (Tauber, 1972). It has been found that a high level of brand awareness need not always translate into sales. Shoppers do take into consideration the information they acquire in stores, rather than just relying on out of store communication (Underhill, 1999). In a study conducted by POPAI (2001), it was found that the sales of some product categories increased by almost 60% due to effective communication at the store. Shopping involves a “see-touch-feel-select” sequence. The degree to which the shoppers follow the whole or part of this process varies with brand, product category, and other elements of the marketing mix (Connolly and Firth, 1998). In an exploratory study conducted in India (Sinha andUniyal, 2000), it was found that the extent also depended on the association that the shopper had with the store. Shoppers, who were new to the store or were, considering buying a brand for the first time, showed a higher level of information search. Those who were frequent buyers of the store would either go straight to the stack or pick up the product or would ask the retailers when trying a new brand. In some cases they would pick up the product. In many cases they would buy the product recommended by the retailers. In any case they would not do a very elaborate information search. Such behaviour has been explained as the routine, limited or complex buying behaviour in marketing literature.

Demographic or psychographic, may not help the retailers understand the shoppers in their true form. Behavior may be a better base of profiling the shoppers and hence taking decisions that would improve the profitability of the store. It is also possible to mould shopper behaviour to suit the retailer’s requirements, especially in Indian context where retailing is opening up as an organised activity.

In spite of the widespread use of communication activities in India no study was found examining communication practices in apparel retail sector. Apparel sector is poised for growth in domestic and global markets due to liberalization. With the rapid growth organized retailing in India, there is a dire need to understand such practices, explore rationale behind it and pose managerial challenges.

1.7 Objectives of the Study

Hence, the present study attempts study practices of communication of apparel retail outlets

1) To explore the practices of communication strategy for retail sector malls.

2) To compare exclusive and multi brand outlets.

3) To explore rationale behind such activities by examining consumer behavior.

4) To study and compare the personal profile of the visitor related to both formats of shopping malls.

5) To find out the motives behind visit to shopping malls.

6) To examine the problems faced by shopping malls in India.

1.8 Hypothesis

“A hypothesis is a special proposition, formulated to be tested in a certain given situation as a part of research which states what the researcher is looking for.”

Null Hypothesis for Communication Strategy on Consumer Behaviour

Keeping in mind the above objectives following Null Hypotheses are framed.

Ho (1) There is no significant impact of communication strategy for retail sector malls depends on the profile for consumer.

Ho (2) There is no significant difference between the exclusive brand outlets and multi brand outlets.

Ho (3) There is no significant difference between the different taste and preference of consumer behind visit to the shopping malls.

1.9 Research Methodology

Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. To do my study I have adopted exploratory research design. The Primary Data is collected through questionnaire Method. Through the various steps, which are involved in the exploratory research, are as:

1. Research Design Exploratory

2. Data Source Primary & Secondary data

3. Research Instrument Questionnaire

4. Sample Plan Shopping Malls of Lucknow and Gurgaon

5. Sample Size 300 customers

6. Sampling Procedure Non Probability Sampling

7. Sampling Methodology Personal Survey

Visual Merchandising plays a very important role in apparel retail sector due to this separate study is done on the effect of visual merchandising which is discussed in chapter 3 and chapter5.

Name of the Shopping Malls:

In Lucknow:

▪ East End Mall (Waves)

▪ Fun Republic Mall

▪ Phoniex Mall

▪ Riverside Mall

▪ Saharaganj Mall

In Gurgaon:

▪ Ambience Mall

▪ DLF Star Mall

▪ Gold Souk Mall

▪ DLF City Centre

Data will be collected using both primary as well as secondary method. Primary data will be collected using structured questionnaire. The population of the study comprises of customer visiting retail malls. For the selection of respondents simple random sampling procedure is adopted. For data collection, questionnaire will be filled by personal interview technique. The respondent under study belongs to different demographic groups like sex, educational level, income level etc. A total of 300 customers will be approached to participate in the study. A pilot study will be conducted on 20 respondents to finalize the questionnaire items. Secondary data will be collected from managers of various outlets, previous studies, retailer’s records and journals.

1.10 Limitations of the Study

Major limitation of this study is the sample size which is limited to Lucknow and Gurgaon only. Most of the retailers in organized sector will be hesitant in providing information about their private brands, branding strategies and communication strategies. Most of the customers will not be willing to divulge personal details.

1.11 Plan of the Study

1) Introduction( Retailing & Profile of Shopping Mall)

2) Review of the Literature

3) Practices of Communication Strategy for Retail Sector mall

4) Comparison between Exclusive and Multi Brand Outlets

5) Perception of Consumers towards Shopping Malls

6) Problem and Challenges of Shopping Malls in India

7) Summary and Findings

1.12 Shopping in Lucknow

Lucknow is an old style shopper's paradise. The city is fit for those who believe that the art of shopping is a divine gifted quality that can only be mastered upon in the congested alleys of old bazaars. Lucknow has a number of sites to go shopping. Blended in history, these shopping places also are used as the popular means of passing time and lazy strolling. This does not come as a surprise for a city that is not only famous for its lethargy but also have a sense of pride over it. Shopping in Lucknow is fun as it is an entirely different experience. The city of Lucknow does not have many glittering malls and multiplexes; yet shopping in those little markets for knick-knacks and souvenirs has its own different charm. You wouldn't have to decide what to buy in Lucknow, as the place is very famous for quite some things. The first thing that comes to mind while talking about shopping in Lucknow is of course the famous Chikan work of Lucknow. Chikan is a very famous thread work that is done by the skilled craftsmen of Lucknow. It is combines with Zardosi (embroidery with gold and silver threads) and crystal work and embroidered on clothes for women, men, kids, mats, bed sheets, table mats and just about anything you can think of. They make great gifts and beautiful souvenirs.

Shopping in Lucknow which had firm cultural links from medieval time of the nawabs.Inspite of its shayri and mujras, the noble city of Lucknow is famous for cotton textiles and chikankari work from the ancient times. Perfumes of Lucknow are well known in India.The most favored and flocked shopping destinations of the city are located in old Lucknow area. Among them, Hazratganj (named after Begum HazratMahal) is most frequented. Hazratganj market has a big shopping area where the buildings are of colonial style building. Hazratganj is actually a fashionable bazaar that overflows with shops and restaurants. Strolling leisurely in Hazratganj and stopping for a bit of window-shopping or meeting friends at your favorite corner is a popular pastime here.

Lucknow is also famous for its shops of jewellery and ornaments. Right from the nose pin to the waistband, you name it and they will have it. These exquisite works of jewellery are exclusive and are found only in Lucknow. The jewellery pieces have unique work of metal ornamentation that looks splendid. Another famous type of jewellery found there is the Jadau, which means jewellery in which gems are studded. Lucknow is famous for its big danglers and Jhumkas that are found in the wardrobe of each and every girl. Lucknow has its own share of shopping places.

Some malls that have sprung up in Lucknow are often thronged by youngsters who come to shop for branded stuff. Among the malls, one finds some malls like Sahara Ganj, Fun Republic and East End Mall etc. One also finds some multiplexes like PVR, Waves and Fun Cinemas, which provide entertainment around the clock. Lucknow chikan is perhaps one of the finest works of embroidery that one can find here in India. It is known for its exquisite style and fine needlework and is unparalleled when it comes to refinement. The Mughal queen Noor Jehan revived this style in 655 A.D. in India. LucknowiChikan Kari gained an entirely new look as it was much preferred and supported by the Mughal rulers. This lead to further refinement and improvement of the Lucknow Chikan embroidery work. Today, Lucknowichikan Kari is synonymous with fashion and is worn by almost every celebrity at least once.

This chapter gives an account of different shopping malls in Lucknow, which had firm cultural links from medieval time of the Nawabs. There are lavish shopping malls in major shopping areas of Lucknow. There are numerous big and small restaurants and eating handouts around these famous market places. One can get mouthwatering non-veg dishes and enjoy rich delicacies at an affordable price. Lucknow is famous for Biryanis and travelers can get plentiful shops selling this favorite dish. Otherwise Shikawat near Gymkhana Club and Tundeke kebab in Chowk are two well known shops to the locals.

The two important shopping malls in Lucknow are the Zee Mall (Fun Republic) and the East End Mall (Wave) in Gomti Nagar and Sahara Ganj near Shahnazaf Road, Hazratganj that is visited by more than thousands visitors daily. Aminabad, can be compared to ChandniChowk in Delhi and is the largest shopping centre of the city daily visited by a huge number of consumers. The Hazratganj market has a big shopping area where the buildings are of colonial style buildings. Malls like Riverside - Pyramid has lavish shops and showrooms of reputed brands do a good business in Lucknow.

1.13 Profiles of Different Shopping Malls in Lucknow.

The malls like PVR, Wave, Sahara Ganj and Fun Cinemas beside or inside the shopping malls of Lucknow offer world class movie watching experience to the visitors. These malls are visited by more than thousands visitors daily. A brief detail of these malls are given as under:

i. East End Mall (Waves)

The East End Mall in Lucknow (Wave) can boast to be the the first shopping mall-cum-multiplex opened in Lucknow.Located in Gomti Nagar, this mall houses many leading brands including McDonalds, Westside, Globus, Landmark, Kohli Brothers, Archies, Women Store, etc. in addition to 4 Screen Multiplex run by Wave Cinemas. It is first Multiplex to be opened in Lucknow and still remains the best in terms of service and Seating Style. The multiplex also offers Gold Class seating which sets Wave Cinemas to set itself apart from other Multiplex in the town. Malls are one of India's finest shopping destinations, with the best infrastructure, technology and management. Wave malls are designed with physically challenged / handicapped friendly, senior citizen-friendly facilities like ramps in addition to stairs and convenience utilities. Wave Malls have adopted environment friendly service features like segregated garbage collection, rain water harvesting, effluent treatment plants, and sewerage treatment plants with latest technologies.

For the group, the security and safety of its patrons are of utmost importance, which is reflected in all Wave Malls having safety / security conscious designs of facilities / services. The group has retained Asero Worldwide, one of the top homeland security experts in the world to guarantee a safe environment for patrons to enjoy the comfort and convenience of air-conditioned, one-stop destinations for shopping, entertainment and food that Wave Malls provide.

All aspects of mall maintenance and operations are self-managed by professionals hired by the group to ensure a great customer and retail experience. The group is a pioneer in developing shopping malls in North India. The Centerstage Mall in Noida, Wave Malls in Kaushambi, Lucknow, Moradabad and Ludhiana are examples of its successful track record. Wave Infratech is the fastest growing name in the retail landscape of India, having built, launched and managed 1.4 million sq. ft. of commercial space.

ii. Fun Republic Mall

The city of Nawabs was overjoyed when Fun Republic started its operations.The Fun Republic Mall is located in Gomti Nagar, Lucknow, India. Built by Zee Group in around 2000s on about 18,000 sq. m. plot in GomtiNagar.Overlooking the affluent township of Gomti Nagar, the property has already become the hottest spot amongst Indian retailers. Situated just a kilometer away from the River Gomti that runs through the city of Lucknow, this area is fast emerging as the state capital’s Central Business, it comprises of retail outlets of branded companies, Multiplex, a food court, gaming zone for children It has parking 500 cars.  It is most preferred loation for shopping in Lucknow.

iii. Phoniex Mall

The mall has a number of retails brands, a uniquely-themed food court, a host of specialty restaurants, Lucknow's largest family entertainment centre, an exciting nightclub and a 5- screen multiplex, besides 80-room hotel towering above. This Mall is a most liked place for the influential and affluent business community in the surrounding areas such as LDA Colony, Sharda Nagar, Kanpur Road, Ashiana, Krishna Nagar, Alambagh, Shingarnagar, Hindnagar and RDSO colony. 3 levels of underground parking providing space for more than 500 cars, Phoenix United is now becoming an ideal place for shopping.  In addition to 5 screen multiplex, an 80-room hotel will be an added feature of the Mall.

iv. Riverside Mall

Riverside Mall is situated next to Hotel Taj Residency in Gomti Nagar. Riverside - Pyramid has lavish shops and showrooms of reputed brands do a good business in Lucknow. The mall has brands like Big Bazaar, Barista Lavaza, Barbeque Nation, and Zero Degrees Pub in addition to Inox Multiplex. Although more brands are yet to open their stores in this mall, the mall has good parking space.

v. Saharaganj Mall

A stylish designing, with all the parameters of a world class mall, Sahara Ganj has become the 1st most beautiful place in Lucknow for shopping and enjoying city's specialities, food and chikan works. Now a pioneer in its class, Sahara Ganj has become the standard in terms of quality and services for Lucknowties as well as tourists. Lucknow went through a transformation in its lifestyle with Sahara Infrastructure & Housing generating ample avenues. This mall provided the city with the best entertainment arena. A brand Super Mall, it is self-sufficient in its offerings & specifications of the highest order. This fabulous Mall consists of 4 PVR, Games Corridor, and a number of shops with beautiful display, most interesting Big Bazar and the top floor ready to serve you specialties of Lucknow foods.

Table 1.1 List of Top Shopping Malls in Lucknow

|NAME |LOCATION |

|Fun Republic/ Zee Mall |Gomti Nagar, Adjacent Eldeco Greens, Lucknow. |

|Khalsa Mall |318, New Ganeshganj, Lucknow. |

|Pheonix United Mall |Kanpur Road, Alambagh, Lucknow. |

|Sahara Ganj Mall |Hazrathganj, Shop No 421,4th Floor, Lucknow. |

|The East End Mall |Gomti Nagar, Lucknow. |

1.14 Shopping in Gurgaon

Gurgaon, the place is a shoppers' paradise and offers anything and everything you can imagine. Be it clothes, accessories, electronics or kitchenware, all is available here. Right from branded stuff to street bits and pieces, you can shop everything. Known as city of malls, Gurgaon has more than forty shopping malls that cater to the needs of middle as well as high profile people. Commenced in 2003, the mall civilization is still mounting and number of shopping malls is increasing every year.

Gurgaon offers a whole different shopping experience. The international brands, the taste of mall culture, great interiors and easy parking attract lot of people from the city and nearby districts as well.

The best places to shop in Gurgaon are Ambience Mall, DLF City Centre, DLF Mega Mall, MGF Metropolitan, DLF Grand Mall, The Galaxy Mall, Sahara Mall, Gold Souk Mall, MGF Mega City Mall, The Plaza, Gurgaon Central, The Landmark Mall, JMD Regent Plaza, Omaxe Plaza, SRS and many more. The city also has numerous supermarkets that fulfill all your basic and day-to-day requirements. Some of them are Sunrise Mart, Perfect Mart, Needs Super Market, Needs, MM Supermarts, KV Super Market, Essentials Super Market, Crossroads Super Market and Allmart Super Market.

MG Road, stretching for 18 km from Andheria More in New Delhi to IFFCO Chowk in Gurgaon, is the birthplace of the prevailing mall boom in northern India. The road forms the prime real estate spine, with a large number of retail malls and A grade commercial developments all along it, apart from a few prime residential complexes like Unitech Heritage City, Essel Towers etc, according to a Knight Frank report.

The stretch of MG Road within Delhi has, over the last few years, emerged as the hub of factory outlets of various top apparel and accessory brands. A large number of designers also have their outlets on this stretch, specifically clustered in ‘MG1’- the first of its kind retail development in the city. It is also home to a large number of furniture showrooms, housing several international and high-end furniture brands. This is owing to the posh residential catchment that this road commands. Along the road lies the farmhouse belt of Delhi, which is home to a large number of HNIs and NRIs, adds the report.

Several years ago, MG Road, the main arterial road, had only two lanes with no place to shop. The first mall, City Centre, materialized in 2002 and was the first mall in Gurgaon and second in India. Three years later, the number has risen to four and ten more are expected to come up in the next three years. Apart from City Centre, the other operational malls are Metropolitan Mall, MGF Plaza and Sahara Mall. The new malls scheduled to come up include Grand Mall, JMD Health & Beauty Mall, Agora by Vipul, Senior Builders Mall and MGF Metropolis.

1.15 Profiles of Different Shopping Malls in Gurgaon.

An umbrella of multiple malls, world class ambience, renowned Brand outlets provide all the choices for shopaholics and trend setters. Gurgaon, the city with largest number of malls such as Ambience mall, MGF megacity Mall, Gold Souk Mall, Omaxe Gurgaon Mall, DLF mega Mall and several others serve round the clock and all requirements for the consumers.

AMBIENCE MALL

Ambience Mall, with the most appropriate location and accessibility on national highway NH-8 offers a wide range of international and domestic brands. Having around 250 outlets, ambience mall provides an unmatchable shopping experience. With state of the art infrastructure, car parking for over 2500 cars, leisure activities for all age groups; Ambience mall truly inculcates all the qualities of a ‘One Stop Destination Mall’

Ambience mall is the largest operational mall in India, Having one kilometer of shopping experience on every floor.

Multiple exquisite brand outlets such as Esbeda, Satya Paul, W, United Colors of Benetton, Tommy Hilfiger, Giovanni, Lacoste, CK Jeans etc. setup a perfect platform for an overwhelming shopping experience.

Further, Ambience Mall also inculcates Food Courts, Beer Gardens, Meditation Centres, Kids Playing Zones, Bowling alleys.

i. SAHARA MALL

This mall has been introduced by Sahara group marks its foray in the emerging field of integrated complexes. Sahara Mall is the oldest mall established on M.G. Road, it has a presence of various chain retail outlets such as Van huesen, Raymonds, Titan Etc. This mall benefits the high level of skills and experience of its management. With exposure to global lifestyle and various international events through media, the average Indian consumer today has become more enlightened about his money’s worth and wants to enjoy the facilities which are available in developed countries. There is a vacuum of such facilities in India and Sahara mall foresees a vast potential for development of integrated entertainment facilities for shopping, entertainment, leisure and amusement parks. The group has taken the initiative to fill this gap by creating world-class shopping malls and multiplexes offering entertainment, leisure, amusement, corporate and shopping facilities.

Further, Sahara Mall at Gurgaon also offers a breathtaking Night Club as well.

ii. MGF Metropolitan Mall

The Metropolitan Mall in Gurgaon is built over 3, 50,000 sq.ft. The mall is fully operational providing top-notch brands such as Shoppers Stop, Archies, United Colors of Benetton, Marks & Spencers, Nike, Reebok, Guess, Lacoste and Sony Hidesign amongst others. This particular mall in its first year of operation achieved 100% occupancy.

MGF Mall provides a complete family joyful shopping experience. The multiplex inside has shows of new releases from Hollywood and Bollywood which attracts the style-conscious youth of the city. With underground parking and large food court, this mall is definitely noticeable and adheres to modern sensibilities.

1.2 List of Top Shopping Malls in Gurgaon

|NAME |LOCATION |

|Ambience Mall |Ambience Island |

|Sahara Mall |MG road |

|MGF Metrolpolitan Mall |MG road DLF Phase II |

References:-

▪ Alexander, A.A & Muhlebach, R.F.(1992). Shopping Center Management, Institute of Real Estate Management, Chicago – Illinois.

▪ Levy, M & Weitz, B.A. (2007). Retailing Management. 6th edition, Irwin Mc Graw Hill, Chicago.

▪ Research Article titled, “Retailing in India: The Way Ahead” written by Binod Kumar Sinha, Faculty Member in ICFAI Business School Raipur.

▪ Dutt, D.2004, ‘An outlook for Retailing in India, Vision2005’ (Form a presentation by KSA Technopak at MDI Gurgaon in January and February).

▪ Kotler, Philip 2000, Marketing Management, 10th Ed., Prentice Hall of India Pvt Ltd, New Delhi.

▪ Majumdar, S.2002, ‘FDI in retailing: India as a supermarket’, Business Line, Tuesday, Sep17.

▪ Levy, Michel; and Weitz, Barton A. Retailing Management .New Delhi, Tata McGraw-Hill Publishing Company Limited, 2002.

▪ Retail Marketing Management. Hemel Hempstead: Prentice Hall. Guy, C 1994.

▪ Kuruvilla, S. J. and Ganguli, J. (2008), Mall development and operations: An Indian perspective, Journal of Retail and Leisure Property, 7 (3), 204-215

▪ Rajagopal (2009), Growing Shopping Malls and Behavior of Urban Consumers, Journal of Retail and Leisure Property, 8 (2), 99-118

▪ POPAI (2001), “In-Store Advertising Becomes a Measured Medium”, Survey Report.()

▪ Sinha P K and Uniyal D P (2000) “Communication @ Point of Purchase”, Working Paper, Mudra Institute of Communications, Ahmedabad.

▪ Smith W R (1956), “Product Differentiation and Market Segmentation as Alternative Marketing Strategies”, Journal of Marketing.

▪ Connolly A and Firth D (1999), “Visual Planning - the Power of Thinking Visually”, The Journal of Brand management, Vol.6, No. 5, 161-173.g, Vol. 21, July, 3 – 8.

▪ Tauber E (1972), “Why Do People Shop”, Journal of Marketing, 36 (Oct), 56 – 59.

▪ Underhill P (1999), “Why we Buy: The Science of Shopping”, Simon and Schuster

-------:0:-------

Chapter II

REVIEW OF LITERATURE

2.1 Review of the Studies

Research dealing with shopping malls’ and or hypermarkets’ attributes, especially in the Indian context, is very less in number. Not many studies have empirically analyzed the influence of an assortment of attributes on buying behavior in shopping arcades and malls and customers’ shopping experiences. Mostly the researches undertaken so far have been taken from the foreign experiences, as they have come of age in the US, UK and European markets.

An earnest attempt has been made to delve into the relevant researches done on the theme, presented henceforth as follows:

Martineau (1958), the first researcher to investigate specific dimensions of store image, proposed four dimensions of store attributes: layout and architecture, symbols and colors’, advertising and sales personnel. The concept was expanded by later researchers.

Huff (1964 and 1966) concluded that the comparative size of the centers and the convenience of access were the primary characteristics that consumers sought when choosing a shopping center to visit.

Brunner and Mason (1968) investigated the importance of driving time upon the preferences of consumers towards regional shopping centers. They expressed that although it is recognized that population, purchasing power, population density, newspaper circulation, and other factors are influential in determining the shopping habits of consumers, a factor which is generally overlooked is the driving time required to reach the center. In this study, it was established that the driving time required to reach a center is highly influential in determining consumer shopping center preferences. The most consistent and significant driving time dimension in delineating shopping center trade areas was found at the 15-minute driving points, as three-fourths of each center’s shoppers resided within this range.

Cox and Cooke (1970) determined customer preference for shopping centers and the importance of driving time. The authors concluded that location and attractiveness are important determinants of consumer shopping center preferences.

Linquist (1974), who discovered nine different retail attributes that contribute to store image, namely, merchandise, service, clientele, physical facilities, comfort, promotion, store atmosphere, institutional factors, and post-transaction satisfaction.

Mehrabian and Russell (1974) noted that the response that store atmosphere elicits from consumers, varies along three dimensions of pleasantness, arousal, and dominance.

Bearden (1977) identified seven salient store characteristics that influence consumer patronage decisions concerning where to shop. Those attributes are price, quality of merchandise, selection, atmosphere, location, parking and sales people. He further stated that store atmosphere, location, parking facilities and friendliness of store people are the salient factors that influence consumer store patronage. As a result store attributes such as service offering, activities, facilities and convenience have major influence on customer satisfaction and loyalty.

Vaughn and Hansotia (1977) opined that merchandise and convenience seem to be the two underlying dimensions which consistently appear every time. Merchandise quality, merchandise variety, atmosphere of shopping area, availability of sale itemsand ease of shopping comparisons is all component parts of this underlying dimension.

McCarthy (1980) attempted to include transport mode / travel attributes in studying the role of the qualitative characteristics that influence the choice in shopping destination. Using the factor analytical technique, five sets of qualitative generalized attributes were generated. These generalized attributes include trip convenience, trip comfort, and trip safety, shopping area attraction and shopping area mobility. He found that these generalized attributes, which were obtained from attitudinal information, are significant in an individual's choice of shopping area.

Kumar (1983) in his extensive research found ‘shelf exposure’, ‘exposure to others buying’ and ‘window display’ as major in–store influences in hypermarkets. His study revealed that males (47%) are more susceptible to shelf display influence than females (39%). He cited ‘retail environment’ (25%) as the second major in–store influence and ‘exposure to others buying’ (21%) as the third major influencing factor resulting in buying behavior.

According to Sproles & Kendall (1986), identification of these characteristics among consumers “helps to profile an individual consumer style, educate consumers about their specific decision making characteristics, and counsel families on financial management”. Consumer Style Inventory (CSI) developed by Sproles & Kendall (1986) was used by many researchers to study the consumer decision making styles.

Feinberg, Sheffler, Meoli and Rummel (1989) considered the social stimulation provided by malls, finding that the mall served as an outlet for social behavior. Further examination of this issue was made by Lotz, Eastlick and Shim (2000), who studied the similarities and differences between mall entertainment seekers and mall shoppers. Their results supported hypotheses that there are different motivations for individuals who visit a mall for entertainment activities versus those who visit for shopping purposes.

Hafstrom (1992) used the CSI to identify the decision-making styles of Korean students. They confirmed seven of the eight factors using Sproles & Kendall’s analytical methods and conceptual framework. The only factor that was not confirmed was ‘novelty fashion consciousnesses. They attributed this to possible links between ‘brand consciousness’ and ‘fashion consciousnesses among young Korean consumers. Administered the CSI to 387 adult consumers in China; their findings indicate that five decision-making styles are valid and reliable in Chinese culture. There styles were perfectionist, novelty-fashion conscious, recreational, price conscious, and confused by over choice.

Durvasula (1993) administered the CSI on 210 undergraduate business students at a large university in New Zealand. They found eight consumers decision making styles. These styles are perfectionist, brand conscious, novelty-fashion conscious, recreational shopping conscious, price-value conscious, impulsive, confused by over-choice, and habitual/ brand-loyal.

Goss (1993) in his research established that the mall developers’ profit accrues from the construction and sale of shopping malls, lease rent and deductions from the retail revenues. Unlike other forms of real estate, where markets have rapidly saturated and are dependent on urban and regional economic fortunes, shopping mall construction has been a relatively secure investment.

Lorch and Smith (1993) concluded that customers coming from a parking lot walk straight forward to the nearest shopping mall entrance and only those shops which are immediately adjacent to this entrance benefit from it.

Roy (1994) in his study considered several characteristics of shoppers – such as functional shopping motivation, deal proneness, recreational shopping motivation, age, income and family size, to be a significant influence on mall shopping frequency. He demonstrated that consumers go to shopping centers to seek entertainment, boredom relief, social interaction with friends, fun, relaxation, and freedom from concerns about personal safety, as well as a wide choice of comparison shopping. However some research studies have found that value perceptions.

Burns and Warren (1995) opined that since the store mix and product offerings of many regional shopping malls are very similar, often the primary discriminator between many of these centers is merely location. Making the choice to shop at a regional shopping mall other than the one nearest to one’s place of residence, therefore, does not appear to be a logical choice in many instances. Such behavior, however, appears to be relatively common. It would appear, therefore, that regional shopping mall choice may not always be based solely on the offerings and location of the available shopping alternatives.

Davies (1995) expressed that the way we think about retail location is dominated by the idea that the primary role of the retail store or the retail center is to attract the shopper to the location. An alternative paradigm exists, of taking retailing to where there are people, either at home or in crowds and this is likely to become more important for a number of reasons. Just because a crowd exists does not mean that the people in it can be easily converted to being shoppers. A number of factors will determine the likely levels of sales: the complementarily of the merchandise with the primary activity being followed by the crowd; the ease with which they can exit from that activity; the associated issue of how much time they perceive is available to them; and the level of crowding.

Jackson (1996) in his study observed that malls have become the place where senior citizens walk in comfort and security, where parents lead their young to Santa Clauses, where singles court, where teenagers socialize and where everybody consumes. Indeed a new term, “Mall Rats” has been coined to describe the legions of young people who spend their free time cruising indoor corridors. This proliferation of uses and of customers has led to the frequent observation that regional malls are the new downtowns, the centers of informal social interactions, the successors to the traditional marketplace. He has also noted that new so–called category–killers like Home Depot, Toys ’r’ Us, Staples etc are taking customers from the malls. It is discount with a vengeance, a place of take–no–prisoners, no–frills shopping, where mantra is value and where the upscale shops and elaborate fixtures of the traditional malls are dismissed as frivolous affectations of a bygone era.

Kaufman (1996) Because consumers are increasingly undertaking multipurpose shopping trips (Arentze et al., 2005), they are likely to favor centers that offer one– stop shopping (Kaufman, 1996).

Ashley (1997) and Templin (1997) both in their separate researches, observed that over the years, the competition between shopping malls had increased significantly, possibly due to the overbuilding of retail centers and changing consumer shopping activities. Advancement in the transportation system had further accelerated the level of competition. Another contributing factor was the similarity of the attributes of most shopping malls, with too many stores offering too much of the same merchandise. So given the apparent similarity in shopping center attributes, shoppers will probably choose to visit the nearest shopping mall when faced with the existence of more than one shopping mall within ‘reasonable’ traveling distance. However, not all shoppers seem to conform to such normative behavior. Past research has revealed that many consumers make a decision regarding where to shop based on their attitude toward a mix of stores, the shopping center environment and entertaining shopping experience.

Fan and Xiao (1998) used a modified CSI with Chinese students. They clearly identified five dimensions of consumer decision making styles for German consumers. These factors were brand consciousness, perfectionism, recreational/hedonism, confused by over choice, impulsiveness, novelty-fashion consciousness, and variety seeking.

Pashigian and Gould (1998) stated that consumers are attracted to malls because of the presence of well–known anchors – department stores with recognized names. Anchors generate mall traffic that indirectly increases the sales of lesser–known mall stores. Lesser–known stores can free ride off of the reputations of better–known stores. Mall developers internalize these externalities by offering rent subsidies to anchors and by charging rent premiums to other mall tenants. The results of this article suggested that mall developers are behaving rationally because they know that anchors attract customers to the mall and increase the sales of other mall stores.

Shim and Eastlick (1998) defined mall shopping attitude as the shopper’s attitude towards a variety of dimensions including location, variety of stores, parking, mall employee behavior, price, quality, customer service, promotional activities, ambience, mall amenities, food and refreshments and safety. They suggest that mall patrons’ attitudes to malls can be assessed by shoppers’ cognitive belief about the importance and their effective evaluation of those attributes. After an extensive review of store and shopping–center patronage literature, 12 shopping mall attributes were chosen to evaluate the importance mall patrons place on them. They correspond to the most common attributes measured in past patronage research: price, tenants variety of stores, personnel, customer service, promotions, merchandise quality, mal facilities, parking, atmosphere / ambience, location, refreshments available and safety.

Swinyard (1998) in a national US study of heads of households, examined shopping mall behaviors and values in which three–fourths of respondents reported visiting at least one shopping mall during a 2 month period. Among mall customers, during this 2 month period the average number of mall visits was 4.69, resulting in 5.35 purchases averaging $60.00 (Rs 3,000 approx) each. It was hypothesized and found that frequent mall shoppers have higher needs than others for ‘sense of belonging’, ‘warm relationships’ and ‘security’. Their needs are also higher for ‘excitement’. It was also hypothesized that needs for ‘self–fulfillment’, ‘self–respect’, and a ‘sense of accomplishment’ are negatively related to mall–visit–frequency.

Waerden, Borgers and Timmermans (1998) discussed the effects of changing the parking situation in the surrounding of shopping centers on consumers store choice behavior. The consumers’ choice of supermarkets is influenced by store characteristics and also by parking lot characteristics. The probability of choosing a parking lot decreases with an increasing size, suggesting that customers want to avoid long walking distances.

Wakefield and Baker (1998) examined the relationship between three factors– tenant variety, mall environment and consumer shopping involvement and studied the influence of these factors on shopper excitement and desire to stay at a mall. Their findings indicated a differential influence from the three factors. Tenant variety had the biggest impact on shoppers’ excitement, while the mall environment had the greatest influence on their desire to stay. Wakefield and Baker gave more in–depth consideration to environmental factors by grouping them into music, lighting and temperature, layout, architectural design and interior decor. Interestingly, they also found differential influence from the environmental factors on excitement and desire to stay. Architectural design had the strongest positive influence on excitement, but no effect on desire to stay. Interior decor, on the other hand, had the strongest positive effect on desire to stay, but no effect on excitement.

Christiansen et al. (1999) examined the effects of mall ‘entertainment value’ from the consumers’ perspective on mall profitability. Consumers basically defined entertainment as some activity that provided a diversion or relief from normal day– to–day activities and could include movies, theatre, people watching, entertainment retail stores, shopping itself, restaurants, bars and even the architecture and interior design of the mall itself. The study found evidence that demonstrated that there is a positive relationship between entertainment and mall profitability and value.

Severin (2001) and Yilmaz (2004) showed that convenient location has the greatest impact on consumers’ choice of center.

According to Leo and Phillipe (2002), the shopping mall image is a holistic entity created from the elements such as retail mix, infrastructure and atmosphere. Thus, the shopping mall image can be managed to create a shopping destination for its potential shoppers.

Nicholls, Li, Kranendonk and Roslow (2002) investigated changes in the shopping behavior of today’s mall patrons as opposed to those in the early 1990s. Although not many differences were found between the demographics of the respondents in the earlier and later periods, they discovered significant differences in shopping patterns and purchase behaviors. Compared with the shoppers in the early 1990s, today’s mall patrons tend to be more leisure driven, they have a greater concern for merchandise selection, and they visit the mall less often but make more purchases per visit. The findings also reveal that situational variables are more likely to have an impact on shoppers’ purchase decisions today than they did before.

Sinha, Banerjee and Uniyal (2002) suggested a classification of stores on convenience, variety and experience. They also propound that there exists an interaction effect between the store benefit and the level of information search that a customer would seek while shopping.

Parsons (2003) in his paper analyzed common promotional activities employed by shopping mall marketers, which were ranked by a sample of customers on their likelihood of encouraging increases in the two key performance indicators used by shopping malls – sales and visits. Whilst mall–wide sales are the preferred promotion, a combination of general entertainment and price–based promotions were found to be a strong alternative way to encourage visits and spending.

Sinha (2003) suggested in his research that the evolving retail environment in India seems to be affecting the orientation and Indian retailing is facing a transition. He established that the shoppers have a very limited choice of retail formats, an important variable in shaping orientation. He suggested that retailers in shopping malls need to take up the task of demonstrating the value added by the store – the format of the store could be the prime driver. The retailers delivering the experience of ‘fun’ would need to offer wider assortment and an ambience where the shoppers would like to spend more time.

Ailawadi and Keller’s (2004) store–image dimensions may apply equally to shopping malls. Access in the context of malls (rather than stores) refers to the location of the mall that shoppers must travel to. Malls located in areas highly accessible to shoppers are likely to be perceived more favorably than malls that are less accessible. Recently, using a qualitative mean–end chain analysis.

Tuli and Mookerjee (2004) found that some consumers placed the greatest value on convenience and economic attributes including convenience to home, accessibility, and the presence of services such as banks and restaurants. Others however, emphasized recreational attributes including atmosphere, fashion ability, variety of stores and merchandise.

In a study of the impact of daily schedules on shopping behaviour, Arentze, Oppewal and Timmermans (2005) found that the busier the schedule, the greater the likelihood the nearest center would be chosen.

Changand Tu (2005). Indian consumers were also found to be price sensitive and quality conscious.

Eppli and Tu (2005) examined the impact of 39 mall renovations and expansions between 1995 and 1997 on the performance of in–line retail stores. Some of the expansions were entertainment–based with theatres, restaurants, and major bookstores. They found that although entertainment–based expansions did not significantly result in an increase in the per square foot sales growth rates for in–line stores, it did increase aggregate sales and thus helped the mall by establishing its presence of being the dominant regional mall and enhanced its brand image.

Wilhelm and Mottner (2005) in their study focused on the shopping mallpreferences of teens 12–17, a trendsetting segment that tends to be heavy users of enclosed shopping malls. The findings indicated that the most important attributes in teens’ choice of a mall to frequent are, how friendly and welcoming the mall is to teens and whether the mall contains ‘cool’ stores. Further, the most preferred or ‘ideal’ mall (i.e. the one with the greatest overall utility), across all respondents, is one that has ‘lots of’ everything (cool stores, entertainment options, etc.), is a good place to hang out with friends and is very attractively designed. Teens are also almost twenty times more likely to choose to go to a mall with lots of experiential characteristics (skateboard and theme parks, cultural and live music events, theatres, etc.) than to go to the typical status–quo mall with a movie theatre (76% versus 4%, respectively), everything else being equal.

Anselmsson (2006) in his study found selection as the most important determinant of shopping mall choice, followed by atmosphere / ambience of the mall and third most important determinant of satisfaction was convenience, which includes opening hours, parking, ease–of–movement and ability to find one’s location in the mall. If a shopping center enjoys high visiting rates, a better strategy might be to focus on present customers and build relationships by improving satisfaction management. The focus would then be on atmosphere, refreshments, convenience, and performance of the store personnel. On the other hand, if a center is behind competitors and needs to increase sales and visit frequency, management should focus more on promotional activities and location aspects in terms of improving geographical convenience.

Gupta (2006) in his research examined the extent to which different promotional frames attached shoppers’ perception towards product service and made a positive buying decision. His study found that significant difference is found in two groups of discount and non–discount category, seasonal sales and non–seasonal sales, coupons and non–coupons, so far as indicators like general characteristics and physical characteristics. Location convenience is concerned but no significant difference is found in two groups of membership discounts and non–memberships discounts. He has further gone to suggest that store retailers must provide a setting that will allow consumers to shop for their needs and wants in the marketplace and they should find ways to tailor their environments to attract customers and increase patronage.

Gupta and Kaur (2006), in their paper, examined the extent to which different promotional frames attracted shoppers’ perceptions towards product service and made a positive buying decision. They stated that retail location of a store and the distance that the customers must travel to shop are basic criteria in their store choice decisions. Their analysis stated that customers consider price discounts as an important promotional tool in the malls. They also found that seasonal sales have a positive effect on both patronage and spending. Major promotional tools on the basis of which the customers prefer to visit the stores in the malls are promotional strategies. Stores using advertising, promotions, seasonal sales, and private labels on a particular category of products had caused people to perceive the benefit of buying a product at one store to be higher than it is.

Kumar and Sarkar (2006) in their research pointed out that emerging organized retailing will face stiff challenges from traditional retailing or unorganized retailing – a sector which is deep rooted in India. Traditional retailing has got relatively low cost structures, mostly owner operated, has negligible real estate and labour costs and little or no taxes. According to them distributors will no longer be rewarded just on the basis of how much they sell. Instead, their compensation will depend on the width of the merchandise stocked and more importantly their prominence on the supermarket / hypermarket shelves.

Lather and Kaur (2006) in their paper studied various malls and established the relationship between the shoppers’ behavior and various attributes / indicators of stores in malls. They observed that most of the customers do not look at the pricing alone. They are looking for a sense of belongingness, a brand of quality and innovation they can trust. Small retailers no longer remain the primary source for the basic monthly shopping basket. The consumer normally gets better prices, quality selection, and convenience for these purchases at organized retail chains and shopping malls. Their results also suggested that if proper window displays and other proper methods of presentation of merchandising are done, the retailers are able to attract more shoppers. They established that in the past few years, there has been a significant shift in India from individual retail outlets, owned separately, and managed distinctively, to professionally managed retail stores. Their findings also supported the positive effect of location on store traffic and sales. They established that the most preferred retail outlets are multi–brand outlets and exclusive outlets. Every type of shopper wants to visit the stores, while they may or may not buy but curiosity is there for visiting the malls. The study also examined alternatives to discounts when negative quality inference was likely to occur, and it was found that free gifts were effective in increasing sales and market share. They suggested that for shoppers to have a good mall experience, the retailers should focus on creating a pleasant shopping environment by using an optimum blend of variables like temperature, air quality, lighting, scent, noise level and layout amongst others. The desire for more open–air structures also emerged as a result of the uniformity associated with enclosed malls, and the yearning for unique shopping places that reflect the characteristics of the locality. For all these reasons, many shoppers now prefer more natural environments where there is daylight and a feeling of contact with the outside world (Coleman, 2006).

Mehta (2006) in her study examined the expectations of people of Ludhiana, India, towards overall shopping experience and entertainment towards shopping malls. She found that people don’t just buy a product in a mall, they buy an experience. On being asked to rank the features in the mall that would attract the customers, people gave the following ranking in the order of preference: shopping experience, eating joints, entertainment, apparel section, jewellery, music / books section, reasonable prices, decoration items and beauty salons. She gave certain suggestions to make the mall more appealing to the customers like free parking for the regular customers / heavy purchasers. Such customers may be issued a parking card, which ensures free earmarked parking. Malls with PVR multiplex should offer “weekend specials” like classics, movies for children, etc.

Memon (2006) cited in his study that about 50% of the people purchase their products from organized retail stores (hypermarkets / malls), 28 % still buy from wholesale distributors who sell in bulk and rest 22 % buy from small kirana stores around their households. As per his findings a combination of price and location policy is the single most important factor for the buyer, and a combination of price and availability of product is the second component. Availability of a large array of products at one place is another factor scoring 20% of the respondents’ liking for retailing stores, while ambience and service quality scored only 16% and 6% respectively.

Rajaguru and Matanda (2006) in their paper studied consumers’ perception of store and product attributes and customer loyalty in Indian context. Store attributes are assessed in the dimensions of store appearance, service quality and convenience of store. Product attributes dimensions investigated include product quality, price, and availability of new products. In their study, customer loyalty was considered as repeated purchasing behavior of consumer towards a store. The results suggested that except product price, other store and product attributes have positive effects on customer loyalty. Store attributes such as service quality and convenience of store and product attributes such as product quality, price, and availability of new products, show significance towards customer loyalty.

Rath (2006) in his article expressed his fear that global retailers will quickly put the kirana shops out of business, leading to millions of job losses. He pointed out that 95% of all retailers in US are single store operations. They may not be as small as Indian Kirana stores, but despite six decades of dominance by large chains these small players had not been wiped out, the reason being the added advantages these types of small retail or kirana stores enjoy:

• They are local and usually in small blocks that the customers are in

• Level of convenience in purchasing is very high

• Personal attention to their customers

• Investment as per customer needs and good inventory management

He further suggested that the move towards FDI shouldn’t be opened such wide that no room is left for local kirana stores. He suggested beginning with a 26% FDI approvals and then gradually moving onto 100% in a span of 4–5 years.

Zameer (2006) in his study defined effective mall management as differentiating a mall from the rest, getting maximum footfalls, converting footfalls to purchase and keeping the tenants and the customers happy and satisfied. According to him mall management entails retail–mix planning and tenant selection, lease management, facilities management, utilities management, parking and organizing events and collaborative promotions, which according to him are critical factors for the success of any shopping mall.

Ahmed, Ghingold and Dahari (2007) assessed international consumer behavior in regards to shopping malls in a non–western country, specifically, Malaysia. A survey of Malaysian university students was conducted to assess the mall–directed shopping habits and shopping orientations of young adults in that country. A total of 132 usable surveys were obtained from five university campuses in the Klang Valley region of Malaysia. The findings revealed that the Malaysian students were motivated to visit malls primarily by the interior design of the mall; products that interested them; opportunities for socializing with friends; and convenient one–stop shopping. Further analysis showed that younger respondents have more favorable dispositions or shopping orientations towards malls than somewhat older respondents. Post–secondary students in the Klang Valley of Malaysia were frequent and long–staying visitors to shopping malls, typically visiting six stores per 2.5 hrs mall visit. And, more than one-third of respondents visited three or more different shopping malls during the previous 30 days. Generally, the observed Malaysian shopping behavior was similar to that observed of western shoppers in prior shopping studies.

El–Adly (2007) determined the attractiveness factors of UAE shopping malls from the shoppers’ perspective and then segmented shoppers according to these attractiveness factors. The study revealed six mall attractiveness factors from the shoppers’ perspective: comfort, entertainment, diversity, mall essence, convenience, and luxury.

Kaur and Singh (2007) opined that the retail boom in India has brought tremendous opportunities for foreign as well as domestic players. The changing lifestyle of the Indian consumer makes it imperative for the retailers to understand the patterns of consumption. The changing consumption patterns trigger changes in shopping styles of consumers and also the factors that drive people into stores. Hence, the key objective of their paper was to uncover the motives that drive young people to shop in departmental stores or malls. A sample of 115 students was taken and their responses were gauged through a personally administered, structured questionnaire. The results revealed that the Indian youth primarily shop from a hedonic perspective. They importantly serve as new product information seekers and the retailing firms can directly frame and communicate the requisite product information to them.

Lang & Meghraj (2007) concluded that Mall management has been identified as a critical factor for the success of malls and the retail industry across the world. Mall management broadly includes mall positioning, zoning, tenant mix, promotions/ marketing and facility/finance management. The Indian retail market lacks designated mall management firms. Large real estate developers and retail chains either have their own mall management arms operating as subsidiaries or have contractual agreements with international property consultants. Till recently, mall management was limited to facility management by a majority of developers in India, leading to gaps in mall management practices. Given the high future supply of malls and increasing competitiveness within the Indian retail market, developers must correctly address these gaps to ensure success.

Millan and Howard (2007) examined shopping motives and behavior in shopping centers in Hungary, which had seen rapid and recent development in its retail structure. The data was collected through a mall intercept survey of 355 shoppers at seven large shopping centers in five major cities in Hungary. The findings revealed that Hungarian consumers tend to approach shopping as work, despite the rapid development of the retail industry in the country. Four shoppers' segments were identified using cluster analysis: relaxed utilitarians, strict utilitarians, committed shoppers and browsers. The study highlighted that Hungarian consumers lay emphasis on product–related shopping motives and they make most of their purchase decisions prior to their mall visit, and therefore, marketing campaigns should focus on providing information about retailers’ offers beforehand. Social and recreational appeals for attracting consumers to the mall may not work well.

Uniyal and Gandhi (2007) carried out a primary study in order to understand the behaviour and attitude of shoppers towards malls in Mumbai, India. Some of the findings are as under:

• Frequency of visit to malls clearly depends on whether the mall is in the vicinity of their residence or workplace. Youngsters visit malls more frequently as for them it is more of a hang out area where they indulge in window–shopping and entertain themselves with games and food.

• The most preferred mode of transport to the mall is the car. However, for those who don’t own a vehicle, the most preferred means of local transport is usually trains and cabs / autos.

• Malls are visited mainly for shopping, the variety of brands they house, entertainment (movies and other events), recreational activities like sports and games, consumption of a variety of food items, as an outing destination with families, as a sophisticated hangout area with friends.

Wanger (2007) found that consumers perceive a convenient shopping experience as a means to obtain physical and mental balance contributing to contentment and shopping enjoyment (cited [Ahmed et al., 2007], [Leo and Phillipe, 2002] and [Nicholls et al., 2003]). Majumdar (2005) in his study on customer loyalty in shopping malls found that mall accessibility and mall ambience have a significant influence on mall loyalty. He also established that mall loyalty, value perception (price-quality) and overall store impressions are found to be significant predictors of store loyalty. He stated that if the customers are not satisfied with the shopping malls as such, their loyalty to a particular store will decline and therefore suggested that it is essential for the mall managers to see that sound strategies are implemented to maintain a satisfactory level of patronage and loyalty.

Chandok (2008) in his study pointed out that the location of a retail store not only depends on the market and the product, but also on kinds of customers it wants to target and the price band that the store needs to operate in. The author has discussed the factors that need to be considered while choosing any business model for starting up of a retail business, which primarily are: elements of the format, information technology, location and finance, keeping in view the overall strategy, the competitive forces and regulations.

Kainth and Joshi (2008) attempted to examine in depth the customers and retailers satisfaction towards malls of Jalandhar in Punjab, India. Their results showed that the quality is the most preferred attribute of customer while shopping at a mall. Replacement guarantee, cash discount, and free gifts are the most effective incentive schemes which the retailers are using for attracting the customers to their shops in the malls.

Patel (2008) investigated the decision making styles of Indian shoppers in shopping malls and studied the variations in these styles across different demographic variables. Mall intercept survey was conducted across 128 active mall shoppers, to study the decision making styles of Indian shoppers in shopping malls. The consumers’ decision making styles were identified by a structured questionnaire and the responses captured in six styles by conducting factor analysis. These decision making styles were: price consciousness, quality consciousness, recreational, confused by over–choice, novelty consciousness, and variety seeking. This study revealed that the average Indian shopper was not very brand conscious, but quite price and quality conscious. It was found that single (un–married) consumers are more price conscious than married consumers. Indian consumers are recreational in their shopping. Shopping is a fun activity for them. Young consumers between the age group of 11–20 years were found to be the most frivolous in their shopping.

Rathod and Patel (2008) attempted to know the importance of different criteria for the selection of retail outlets amongst the customers. They found that availability of variety has been given highest importance by customers, second priority has been given to service quality and third most important criteria is convenient location.

Srivastava (2008) presented a picture of the changes in retail taking place in India. His paper looked at the changing scene in the retail sector in view of many MNCs and large industries entering into this segment. The findings presented that malls are more developed in the North and West part of India. Food, groceries, and apparel purchase by customers contributed to 52%. On an average, 75% of customers spend about 1 – 3 hours in the mall. Malls with multiplexes such as cinema theatres, food courts, play–pens for children are becoming the center of family outings. Small retailers have improved their service to cater to Indian consumers. Credit limits and home service are helping them to hold on to their customers. Retailing focus is changing towards satisfying the different hierarchy of needs of customers. The four attributes of a retail center that influence the temporal convenience it offers are: one–stop shopping, trading hours, enclosure and proximity to home / work.

Trivedi (2008) stated that where the organized sector poses a cut–throat competition for the kiranas, the fact still remains that India being a country with diversified social classes, there is a scope for both to survive. The emergence of a developed retail sector will pose a competition rather than a threat to the traditional stores which would help these stores change their outlook and ways of working. Looking at the situation from a different perspective ‘Kirana’ stores target the masses whereas organized retail services cater to a specific class of people. The mall going consumers are more or less global, that is, they have moved from price to value. This section is more value conscious, as they will buy the most exclusive item and concurrently, will want to acquire the finest price for it. A price conscious consumer, alternatively, will look at price alone and choose a product which is the cheapest.

White (2008) in his paper has elaborated that the customer and their lifestyles have changed, and with that, shopping centers are changing to continue to attract consumers. Entertainment centers, entertainment and destination venues, once of little significance to shopping centers and malls, are now growing in importance as an essential part of the mix, since in order to attract today’s consumer, goods alone don’t work. He further states that a survey by the International Council of Shopping Centers (ICSC, 1997) found that movie theaters drew in potential shoppers who otherwise wouldn’t have been exposed to the mall and that 60% of movie patrons shopped in the mall during their movie visit, spending an average of 35% of what all mall shoppers spent. The ICSC then conducted a second study in 1999 that found:

▪ 52% of moviegoers’ trips to the mall also involved visits to other mall stores.

▪ Moviegoers spent one–third as much on retail and food items as shopper– only mall visitors.

▪ Movies attract younger audiences than general shopper traffic.

▪ Moviegoers and non–moviegoers have similar incomes.

According to White, malls and lifestyle centers now offer a fun and a social experience. Today, shopping centers are in the out-of-home entertainment and dining business as much as they are in the retail goods business.

Anand and Sinha (2009). Studies have also indicated that customers tend to prefer specialised stores in case of high involvement purchases.

Bhatnagar (2009) in her paper examined the extent to which the various factors comprising the internal vibes of the stores influence the visitors. The author concluded that the seven attributes against which the opinion was taken, were lighting in the store, colour scheme, window display, smell, music, design layout and cleanliness. She further explained that in the present age, goods are not only consumed for their use or exchange value, but are also consumed as signs of luxury, exoticism, and excess. Thus consumers need to be seduced and delighted when they come to a store for shopping. Stores with a beautiful display, perfect lighting coupled with appealing smell and music can create sensations and affect consumer shopping attitude and patronage behavior.

Bhattacharjee (2009) highlighted the attraction points of shopping food and groceries in hypermarkets. He identified seven attraction points to visit a store and a retail format: price, promotions, hangout place, product range, product mix, ease of travel and parking comfort. He further said that the tolerance to commute is lowering. The people are willing to go 4 km or even more for hypermarkets / shopping malls, while for small format modern stores not more than half a kilometre. Expectation for a kirana store is less than 500 metres.

Chebat, Hedhlia and Sirgy (2009) expressed that understanding the antecedents of shopping mall loyalty remains one of the crucial issues for both mall managers and retailing researchers. They proposed a conceptual model that explained the psychological process by which shopper–based mall equity (e.g., the perceived mall value) generated mall loyalty. They collected data from shoppers in two urban North- American shopping malls and the empirical results generally supported the model: Mall loyalty was significantly predicted by the commitment that shoppers held toward the mall; and that commitment, in turn, was significantly predicted by shoppers’ positive awareness of the mall’s characteristics, and shoppers’ self– congruity. The latter construct, in turn, was significantly predicted by mall image dimensions such as the mall’s environment and the quality of the products and services found in the mall. They also found the model to be invariant between female and male shoppers.

Clulow and Reimers (2009) The term one–stop shopping implies that all, but the most esoteric of shopping needs, can be satisfied in the one center, all at the one time.

Hemalathaa and Ravichandran (2009) in their study established the motivational factors that influence mall visit by older generation Y consumers. The motivational factor, social shopping was seen as the most dominating factor. Most of the older generation Y consumers go shopping with friends and family for the purpose of socializing. They enjoy socializing with others when they do their shopping. For them shopping with friends and family is a social occasion. Idea shopping is the second significant motivational factor for visiting malls by generation Y consumer. They go shopping to keep up with trends, to keep up with new fashions, to see what new products are available and to experience new things. Role shopping is the third significant factor, that reflects the enjoyment that shoppers derive from shopping for others, the influence that this activity has on the shoppers’ feelings and moods, and the excitement and intrinsic joy felt by shoppers when finding the perfect gift for others. Many respondents talked about the enjoyment they obtained from shopping for other people, explaining that shopping for their friends and family is very important to them and that it makes them feel good. Some respondents described the positive feelings they got from finding the perfect gift for someone. In essence, people seek ego enhancement to their self–concepts through the addition of satisfying roles and ‘acting out’ the role’s responsibilities. Fourth important factor is the adventure shopping. Adventure shopping refers to shopping for stimulation, adventure and the feeling of being in another world. A significant number of respondents reported that they go shopping for the sheer excitement and adventure of the shopping trip. These informants often described the shopping experience in terms of adventure, thrills, stimulation, excitement, and entering a different universe of exciting sights, smells and sounds. Fifth important factor is the value shopping. Value shopping refers to shopping for sales, looking for discounts, and hunting for bargains. Many of the respondents talked about how they enjoyed hunting for bargains, looking for sales and finding discounts or low prices, almost as if shopping is a ‘challenge to be conquered’ or ‘a game to be won’. The last factor is the gratification shopping. Gratification shopping involves shopping for, stress relief, shopping to alleviate a negative mood, and shopping as a special treat to oneself. Several respondents admitted that they go shopping to relieve stress or to forget about their problems. Other informants view the shopping experience as a way to wind down, relax, improve a negative mood, or just treat themselves.

Kuruvilla, Joshi and Shah (2009) explored the possibility that there are gendered differences in mall shopping attitude and behavior. The study indicated that, overall, women have a more positive attitude to mall shopping and that they purchase fashion related categories more often than men. But men visit more often and spend more time and money. While most men and women spend 2–4 hours on an average at the malls, men reported spending more time and visiting more frequently. If the fact that mall shopping is usually a family affair is taken into consideration, it could be that men perceive themselves as spending more time. But this explanation seems improbable, as both genders have not shown significant difference in their recreational approach to shopping. Malls seem to be popular destinations to purchase clothes, footwear, and accessories for both men and women. Footwear and accessories also seem to be popular purchases. But in all categories women report more frequent purchase. At the same time, it is also reported that men spend more. One possible explanation can be that men spend on merchandise other than fashion, but it is more likely that as ‘the purse bearers’ of the family, men do spend more than the women.

Rajagopal (2009) said that the shopping malls contribute to business more significantly than traditional markets, which were viewed as simple convergence of supply and demand. Shopping malls attract buyers and sellers and induce customers providing enough time to make choices as well as a recreational means of shopping. However, competition between malls, congestion of markets and traditional shopping centers has led mall developers and management to consider alternative methods to build excitement with customers. The study examined the impact of growing congestion of shopping mall in urban areas on shopping conveniences and shopping behavior. Based on the survey of urban shoppers, the study analyzed the cognitive attributes of the shoppers towards attractiveness of shopping malls and intensity of shopping. The results of the study revealed that ambience of shopping malls, assortment of stores, sales promotions, and comparative economic gains in the mall attract higher customer traffic to the malls.

Sinha and Krishnaswamy (2009) stated that customers show clear preferences in choosing a store. In most cases, they tend to set their expectations based on the positioning of store. They tend to associate store with the value propositions promised by the stores and respective formats. Store formats stand for their own mix of values that helps customers maximize the benefit.

Uniyal and Sinha (2009). In another study of format choice it was found that even in case of a planned purchase, customers tend to show both affective and cognitive search based behavior.

Atiq (2010) in her article suggested that the Indian retailers should understand that retailing has to be taken as a brand in itself. A single large retailer should not be allowed to capture the larger market share. The Indian government should not make haste in inviting the foreign retailers; instead it should wait to see the great power of the Indian retailers. But then, Indian retailers have to master both the art and the science of retailing by looking at the way the giant retailers are organizing and managing their activities. Indian retailer needs to be innovative and needs to understand the regional variations in consumer tastes.

Baltas, Argouslidis and Skarmeas (2010) demonstrated that shopper characteristics are related to dispersion of patronage among more stores. Shopping behavior appears to be partly driven by cost–benefit tradeoffs, suggesting differential responsiveness to incentives by customers. This is particularly relevant for retailers who wish to design and implement communication and loyalty programs to defend their customer base, since the responsiveness of targeted customers determines the efficiency of these policies. They also suggested that loyalty programs can be more than a defensive means of keeping loyal customers and sustaining loyalty levels. The challenge rests in targeting non-loyal customers who are more likely to respond to marketing initiatives. They also showed that heavily spending and multi-member households tend to disperse supermarket patronage and both heavy groceries spend as and large families adopt such shopping patterns in order to find better deals and maximize value-for-money. Moreover, large households shop around aiming at a more precise matching of the diverse and heterogeneous product needs of their members. Much as a multi-store patronage may be an established shopping pattern for large families and heavy grocery spenders, retail managers can still try to increase their loyalty.

Bhupta and Vaish (2010) in their study stated that developers and retailers need to plan the merchandising by the customer needs. Just the way a store has to choose appropriate merchandise, so does a mall needs to have an excellent mix of good retailers. To get couple of anchor tenants is not enough to make a mall successful.

Chebat, Sirgy and Grzeskowiak, (2010) opined that one way to generate more traffic in a mall is to build a strong mall image perceived by shoppers as delivering a unique bundle of benefits. Such effort has to be guided by a performance metric, namely a comprehensive measure of mall image. They hypothesized that mall image could best be conceptualized in terms of five major retail branding dimensions: access, store atmosphere, price and promotion, cross–category assortment and within–category assortment.

Devgan and Kaur (2010) in their paper have mentioned six factors, upon whose adaptability the success of any shopping mall would largely depend. These were value for money, customer delight, information security, credibility,store charisma and product excellence. The authors explicated that the modern day customers lay more emphasis on value for money; however, almost equal weightage is given to comfort and enjoyment while shopping from malls. But simultaneously, customers also care for factors like personal information security and payment security. Hence they wish to buy from only that shopping mall which is more reliable from these perspectives.

Martin & Knudsen (2010) examined the way post-industrial Britain and Denmark undertake vocational training for low-skilled retail workers. They evaluated whether leaders in training skilled industrial workers are also doing the best job with low-skilled service workers. While Danish retail is increasingly becoming a haven for low-skilled workers, British workers are gaining in skills levels with the transition to services even in the retail sector. While some suggest that social democratic countries have sacrificed the political interests of low-skilled workers in order to protect core manufacturing workers, they find no evidence of this. Rather, the high expectations of vocational training in Denmark have forged barriers to the easy admission of low-skilled service workers, while the British system provides more entry points for vocational training at different levels. The structures of coordination that had narrowed the gap between white-collar and blue-collar manufacturing workers during the industrial age are creating new cleavages in the post-industrial eonomy.

Rajagopal (2010) in his article “Coexistence and Conflicts between Shopping Malls and Street Markets in Growing Cities: Analysis of Shopper’s Behavior” was of the views that in urban areas a marketplace achieves differentiation from different market formats-shopping malls and street markets through the pursuit of singular orientations following the hedonic and utilitarian dimensions of shopping. Furthermore, consumer beliefs on the choice of a marketplace is found to positively influence the shopping behavior Interestingly, urban orientation of urban shoppers is related to a triadic factor relationship consisting of physical, economic and hedonic elements towards choosing a right marketplace. This study discusses the impact of growing congestion in urban marketplace due to overlapping of market territories of shopping malls and street markets in urban areas of Mexico. The analysis has been carried out in reference to the shopping conveniences and shopping behavior. The results of the study evidence the complex consumer decision-making styles towards shopping malls and street markets based on competitive advantages. Street markets are largely preferred by the shoppers as they exhibit ethnic and cultural attributes while cross-cultural attributes of stores and shopping ambience is found to be one of the major determinants of shopping behavior. The discussions in the study divulge that shopping arousal is the principal determinant in developing preference of marketplace. Shopping arousal is driven by mall attractions, inter-personal influences, ethnicity, shopping ambience, sales promotions and comparative gains among urban shoppers. Other factors that affect the preference of a marketplace among urban shoppers include recreational facilities, location of the mall, ambiance and store attractiveness in reference to products and services, brand value, and price.

Ranjan (2010) in his research examined the impact of retail outlets and malls on the purchase behavior of middle class consumers. He comments that the successful organised retail chains and also the malls in the country today operate at regional segments and are not aiming at the nationwide presence, at least for the time being. According to the author, in order to reach all classes of the society in India, organized retail formats should design a comprehensive and prospective business model which offers the quality product / services at affordable prices and generate more socially balanced business.

Sonia (2010) in her article “Changing Face of Indian Retail Sector: Ethics, Challenges and Opportunities” observed that "As consumer behavior and lifestyles changed, people no longer buy the way they used to. Simply increasing 'width’ and 'depth’ of coverage no longer seems to produce the magical results it once used to." The retail sector has played a phenomenal role throughout the world in increasing productivity of consumer goods and services. It is also the second largest industry in US in terms of numbers of employees and establishments. There is no denying the fact that most of the developed economies are very much relying on their retail sector as a locomotive of growth. The Indian retail industry is going through a period of golden sunshine Retailers: The retailers’ management does not have clear policies. They have not developed ethical code of practice. They are concerned with ethical behavior and doing the right thing. Since ethical conduct is largely an individual process, training and individual related factors are important .Retail salespeople need guidelines on ethical issues. This poses considerable challenges to retail managers. If we focus on problems of retail industry and solve them then Indian retail sector will boom.

Gopal & Suryaarayana (2011) depicts in his paper “Growth Drivers and Challenges for Organised Retailing in India” that there are a great many challenges that need to be addressed by the retailers as well as the government. Unlike FDI that requires policy changes, there are other major issues that need to be addressed on a war footing. Retailers have to invest heavily in technology to monitor stocks and their movement, both in-stores as well as enroute. This will enable them to adopt concepts such as QRDS (Quick Response Delivery System) and ECR (Efficient Customer Response). Another focus area is the supply chain. The entire supply chain in the country is dominated by unorganized players with several layers of intermediaries, thereby adding to wastage and pilferage at each level. The country loses more than Rs 580 billion worth of agricultural food items due to lack of post harvesting infrastructure such as cold chains, transportation, and storage facilities. According to Confederation of Indian Industry (CII), post-harvest losses of fruits and vegetables are about 25% to 30%.India can ill afford losses of this magnitude. The only way out is to focus on creation of road, rail and air links and connect the same to cold storage facilities in different parts of the country. Considering the contribution of retail towards the GDP of the country it is time the government chips in with active participation. The net result would be a win-win situation for all the parties concerned.

Jackson, Stoel and Brantley (2011) in their paper expressed that the customer segments seek out relevant shopping venues based on their shopping wants and needs. Knowledge of the preferences of distinct consumer groups is useful in the development of marketing communications and promotional strategies, as well as for designing mall configurations that are likely to generate patronage and repatronage due to the value creating potential of the mall. Advertising materials could express the specific attributes the mall has to offer to the cohorts comprising its customer base, either by gender, generation, or both. When a retailer or mall owner finds that a large segment of its consumers are from particular segments (e.g. generation, gender), the company can focus on segment relevant ways to facilitate and promote a shopping experience that will drive shopping value and create potential for patronage.

Maiyaki & Mokhtar (2011) in his paper Determinants of Customer Behavioral Responses: A Pilot Study aims that the validity and reliability of the instrument of an ongoing project in preparation for the large scale study. Hence, the conclusion of this study is tied to its objective which is mainly statistical in nature at this stage. The managerial implication of the variables under investigation would be fully uncovered after the main study is carried out. The study explored the small scale data that was collected during the pilot test. Both content and face validity were conducted which subsequently led to the rewording of several items and two items were removed on grounds of high similarity with other questions. Furthermore, the inter-item reliability test revealed that all the items were reliable with Cronbach Alpha well above the benchmark of 0.70; thereby no item was deleted. Finally, normality test using skewness and kurtosis shows that the data as a whole is reasonably normal more especially with skewness values not significantly different from zero.

Tanwar, Kaushik & Kaushik (2011) depicts in his paper Retail Malls: New Mantra for Success that In India, while organised retail has yet not been accorded the status of an industry, it is witnessing a large number of formats emerging in the market at a very fast pace. Indian organised retail is moving with an exponential rate that no other sector has witnessed. Ample opportunities are present as 94% of the Indian retail is still unorganized. Moreover, Indian retailers can learn from the mistakes committed by their global counterparts and fuel the tremendous growth of Indian organised retail sector.

In the present scenario, making the biggest malls with top class retailers is not the key to success. A cool and refreshing environment is required which makes the shoppers to forget all worries of the day. Malls are here for putting smiles on the face of shoppers. It is non-crucial whether a purchase is made or not, entry into the mall has given the right to courtesy. It should be the USP of the malls as the window shopper of today is the prospective customer of tomorrow. Further, malls should commune a feeling of oneness-with retaining the individuality of each store. Something fresh and novel always attracts shopper‘s attention but raises the bar for future innovation. Thus, malls should be designed in a manner that the new and innovative aspects can be added later on to keep up the consumer‘s delight. Successful malls are those that will adjust its mall culture with the consumer sensitiveness and preferences. Managing consumer attitude and innovation are the keys to stay afloat amid competition. Indubitably, malls have enlarged social fabric, cultural mixture and retail feasibility. And when the core focus is on higher conversion than footfalls, then mixed use and open malls is the way towards accomplishing the aforesaid goal. The opportunities offered by young India exhibits a bright road for malls. These architectural wonders have changed the overall meaning of shopping, leisure and entertainment. Ensuring a relaxing ambience and facilities like seating arrangements for elders to babies is not a child‘s play. But malls managers are performing the tasks with ease. Malls- with a bouquet of value propositions like value for time, value for quality, value for experience, value for money is boosting India in becoming a SHINING STAR of GLOBAL RETAIL.

Handa & Grover (2012) conducted a study on the “Retail Sector in India: Issues & Challenges”. They concluded that India at the crossroads with regard to the retail sector. Several emerging market economics have gone ahead and reaped the benefits of modern retail. Politics is an unfortunate reality that has been coming in the way of success of organized sector and ultimately the overall retail sector. The hue and cry created by unorganized sector against Reliance Fresh, Wal-Mart especially in U.P., Jharkhand etc. is not appreciable, it is the major hindrance in the growth of retail sector. There is need of balanced approach to retail & govt. has to play a very vital role in shaping the future course. Though tradition retail has been performing a vital function in the economy, but it has to shed off its shortcomings and inefficiencies and this is actually happening. Thus, the organized sector is not only impacting the other sectors positively but also it has benefited its own competition i.e. unorganized sector. So, organized sector becomes the growth mantra of Retail sector.

Jain & Sukhlecha (2012) tries to establish the need of the retail community to invite FDI in multi brand retailing. In between the advocators and antagonists of FDI inflows in Indian retailing, there are few issues to be addressed for the consumers ‘rights to be saved, for the employment opportunities to be generated, for the regularization of the different retailers working in different areas, etc. In spite of so many reasons behind allowing and not allowing FDI from entering our Indian borders, there are few examples of other developing countries who initially protested against the entry of foreign investment in retail sector and then, later on proved out to be the most effective decision in country‘s development and standing in the world. The final decision is yet to be taken by the Indian Government for the same.

Manikrao (2012) concluded that in India, it can evidently noticed that there are Mandis/Bazaars (place where vegetables and groceries are sold) in county side, some daily and some weekly, but most people recognize them as weekly mandis only where in all house hold and vegetables are sold and later small stores came up at corners of the streets or residential locality which were called as Kirana stores now referred as Mom and Pop Stores, In the early 1980s manufacturer's retail chains like Binny, S Kumars, Vimal, Bombay Dying, HMT, Allwyn, etc started making their appearance in bigger cities. Later in 1990s Branded retail outlets like Food world, Nilgris and local retail outlets like Trinetra super market, Apna Bazaar, came into existence. Now big players like Reliance, Bharti, Tatas, ITC and other reputed companies are entering into organized retail businesses. And the big multinational retailers are waiting to enter India in the form of direct entrance eg: - Nike, Reebok, Metro etc or Joint Ventures eg: - Bharti with Wal Mart and Tatas with Tesco. In their preparation to face fierce competitive pressure, Indian retailers must come to recognize the value of building their own stores as brands to reinforce their marketing Positioning, to communicate quality as well as value for money. Sustainable competitive advantage will be dependent on translating core values combining products, image and reputation into a coherent retail brand strategy.

Manocha & Pandey (2012) analysed in his paper “Organised Retailing in India: Challenges and Opportunities” that the retail landscape in India is changing rapidly and is being scrutinized by large scale investments by foreign and domestic players. Market liberalization and changing consumer behaviour have sown the seeds of a retail transformation. Indian retailing is growing fast and imparting the consumer preferences across the country. Today retailing is largest contributing sector to country's GDP i.e. 10% as compared to 8% in China, 6% in Brazil. Modern retailing is capable of generating employment opportunities for 2.5 million people by 2010 in various retail operations and over 10 million additional workforces in retail support activities. Organised retail which presently account for only 4-6 percent of the total market is likely to increase its share to over 30% by 2013.It offers huge potential for growth in coming years. India is becoming most favoured retail destination in the world. Sharma (2012) depicts in his study “Customer Attitude Towards Shopping Malls in Mumbai” that the “customer attitude towards shopping malls in Mumbai” which is found to be positive. Today multi storey shopping malls are a shopaholic’s paradise in Mumbai. These shopping malls accommodate every taste, pocket and style. Also, the city of Mumbai offers ample shopping opportunities to tourists who come here to spend their vacation. it is revealed that a majority of ‘Mumbaikars’ do prefer to shop at shopping malls as it is a convenient place to buy anything they desire. Most respondents expressed that the shopping malls are just not a place to shop due to its constant availability, but has also created an ideal environment for social interaction for people of all ages. shopping malls offer excellent parking facilities, create value for money, credit / debit card facilities, and so on. As a result, higher customer traffic is attracted towards shopping malls. All thanks to shopping malls for bringing about an overall development in Mumbai.

Sikri & Wadhwa (2012) concluded in his paper “Growth and Challenges of Retail Industry in India: An Analysis” that Many agencies have estimated differently about the size of organized retail market in 2011. The one thing that is common amongst these estimates is that Indian organized retail market will be very big in 2011. The status of the retail industry will depend mostly on external factors like Government regulations and policies and real estate prices, besides the activities of retailers and demands of the customers also show impact on retail industry. As the retail market place changes shape and competition increases, the potential for improving retail productivity and cutting costs is likely to decrease. Therefore it is important for retailers to secure a distinctive position in the market place based on values relationships or experience. Finally, it is important to note that these strategies are not strictly independent of each other; value is function of not just price quality and service but can also be enhanced by personalization and offering a memorable experience.

References:-

▪ Chandrasekhar, Priya 2001, ‘Retailing in India: Trends and opportunities’, Business Line: Catalyst, February 15.

▪ Devasahayam, Madona 1998, ‘Big Deal’, Praxis Quarterly Journal on Management, August, Vol.2, No.2.

▪ Majumdar, S.2002, ‘FDI in retailing: India as a supermarket’, Business Line, Tuesday, Sep17.

▪ Kannan, S. 2001, ‘Huge potential awaits retailing’, Business line, Thursday, September 13.

▪ Jagannathan, V.2001, ‘Vivek’s – a store more reputed than the brands it sells’, Business Line, February 5.

▪ Bhushan, R.2002, ‘The show begins here’, Business Line, Thursday, December 26.

▪ Aroor, S. and Singh, S.2004, ‘Market Dynamics: Cigarette Retailer as The New King’, The Financial Express, Net Edition, May 4.

▪ Gupta, R., ‘Pharma retailing gains momentum in India’,

▪ Levy, Michel; and Weitz, Barton A. Retailing Management .New Delhi, Tata McGraw-Hill Publishing Company Limited, 2002.

▪ Mariton, John. Smart Things to Know about Brands and Branding .Mumbai, Indian Books Distributors Limited, 2000.

▪ The Economic Times Knowledge Series :Retail 2000-2001",New Delhi: Times Multimedia,2001(CD-ROM)

▪ "Changing Gears :Retailing in India",New Delhi: Times Multimedia,2003"ET in The Classroom", Times Multimedia , 2003(CD-ROM) "Mall Management strategies"

▪ Abramowitz, D n.d. R 174 m Renovations to Retail Centres Increase Value of ApexHi Portfolio. Accessed online on10 May 2006 at 7210

▪ Alexander, AA & RF Muhlebach 1999. Shopping Centre Management. Chicago, IL: Institute of Real Estate Management.

▪ Anon 2004. Shopping Centre Marketing is an Investment, not an Unnecessary Expense. Accessed online on 29April 2004 at http: //-com/Article/196/11/2232.html.

▪ Barnes, A. 2002. Shopping Centres – More than Just a Tenant. Shopping South African December 1,7: 11. Bloch, PH, NM Ridgeway & SA Dawson 1994.

▪ The Shopping Mall as Consumer Habitat. Journal of Retailing Spring, 70,1: 23-42. Brassington, F & S Pettitt 2003. Principles of Marketing. 3rd Edition. Essex: Prentice Hall, Pearson Education Limited.

▪ Business Day Newspaper 2004. Accessed online on 23 July 2004 at http//businessday.co.za . Cloete, CI 003.

▪ Shopping Centre Management in South Africa. South African Council of Shopping Centres. Dardagan, C 2006.

-------:0:-------

Chapter III

PRACTISES OF COMMUNICATION STRATEGY FOR RETAIL SECTOR MALLS

3.1 Concept of Communication Strategy

Shopping mall is one of the most complete retail industry carders. Strong market demands should result in continuous flourishing sales and continuing increase in value of shopping mall, to achieve a win-win situation between the shopping mall developer, operator, property management companies and consumers. However, in reality, most shopping malls have a high vacancy rate due to various problems, and this situation has become more and more bad. The expectation to make a win-win situation becomes a lose-lose reality. First, this paper analyzed the character of products in shopping malls, and then to probe into the problems on communication of the shopping mall by making use of some relevant communication theories and marketing theories. For instance: lack of strong supporting points and cultural factors in communication contents, and communication activities are short of systematicness, without clear brand communication strategies. The three corresponding communication strategies, clear and definite subject location, including the necessity, methods of subject location and some problems pertaining are needed to be taken care off. The brand-oriented multi-brand strategies, covering functional characters and components of brand communication, as well as mutual relations between them have to be understood. Giving priority to Pro-shops, namely, pro-shops should enter shopping mall in advance, and the necessity of business planning ahead of products planning for shopping malls, on this basis, sum up some brand priority communication strategies supported by pro-shop.

Communication is a critical function in organizations, from the very small to the very large. Even one-to-one communications can be fraught with challenges and misunderstandings. By communicating usefully, emphasizing on results and relationships, businesses can leverage effective communication strategies to generate solid results with multiple audiences such as-

• Open: In an open communication environment, all members of the organization feel free to share feedback, ideas and even criticism at every level. Leaders who are committed to open communication build an environment of trust that can be the foundation for success.

• Inclusive: An inclusive communication strategy is one in which explicit steps are taken to ensure that all employees feel they are involved in decisions that affect their day-to-day work. Organizations with a secretive communication environment shut people out, which can stifle involvement and result in lost ideas and opportunities. Employee involvement is a key factor that affects employee satisfaction and success.

• Two-Way: Communication should never be one-way--either from the top-down or the bottom-up. Effective communication strategies involve two-way communication, or conversations, between members of the organization. Companies whose managers successfully engage employees in conversations about their work, their ideas and their perspectives on issues related to products, services, customers and the business environment develop a culture of inclusiveness that generates results.

• Results-Driven: Business communication should be results-driven and strategically focused on achieving measurable results. Organizations need to think about what employees need to know to do their jobs effectively, to interact with customers effectively and to serve as ambassadors outside of the organization. Effective communication isn't just nice to do; it's need to do.

• Multi-Channeled: Effective organizational communicators know that messages need to be delivered multiple times in multiple ways to have the most impact. Employee communication needs and preferences differ, different messages require different methods and busy business environments can mean that messages get lost. Using multiple channels to communicate with various audiences will increase the odds that communications are received and understood.

Communication strategies encourage consumers to make a response, either by requesting further information or purchasing a product. You can improve the effectiveness of your strategies by building a greater understanding of consumers’ individual needs and preferences and personalizing communications. Strategies that build dialogue with consumers create trust and provide you with feedback that enables you to fine-tune your communications even further.

Business communication takes many forms. Companies communicate internal information between managers or employees, while external communication is used to inform consumers about the company’s products. Marketing is an important function for a new small business. Entrepreneurs and business owners must inform consumers about the goods or services they are offering.

3.2 Businesses Explore Marketing Strategies to Give Specific Messages to Consumers in the Economic Marketplace

The marketing strategy prevailing at the market place are as follows:

Awareness: Successful organization aim to build strong relationships with consumers so they can retain those consumers as long-term customers and maximize revenue opportunities. Therefore, the first task for a communication strategy is to make consumers aware of your company and products. When consumers are buying, they make decisions based on the information they have about an available product. By communicating through advertising or other media, you can make consumers aware of your product so it becomes one of the alternatives they consider.

Choice: Product communication through media such as advertising promotes choice for consumers, according to the World Federation of Advertisers. Communication informs consumers about the differences in price, quality or features of competing products, enabling consumers to make informed choices.

Preference: The initial communication raises consumers’ awareness of the products. By communicating regularly, we can make consumers aware of the benefits of your products, differentiate your products from those of your competition and create a preference for yours. If the communication strategy is effective, it will convince consumers to choose the product over the competition next time they make a purchase.

Accountability: Communication strategies that encourage consumers to provide feedback on your products demonstrate that your company is accountable to its customers. Setting up an online forum, for example, allows consumers to post their comments on your products and share their views with other consumers. Interactive communication like this recognizes the changes in the way consumers respond to advertising, according to the Journal of Interactive Advertising. Consumers can now source their information on products and companies from other consumers via social networking sites, rather than just responding to marketing messages from manufacturers and retailers.

Personalization: A strategy based on personalized communication builds a one-to-one relationship between your company and individual consumers. By collecting and analyzing information on consumers’ purchasing patterns and communication preferences, you can develop tailored communication via email. Personalized communications give consumers information on products or services that they are likely to be interested in. This indicates to consumers that you understand their needs and will not waste their time on irrelevant offers.

3.3 Disadvantage of Providing Too Much Communication Strategy

The retail space in India is attracting both international retail giants and big Indian business houses. Entry of many players is leading to increasing competition within the retail industry and the managers’ last resort, to attract and retain customers, is to improve the way they communicate with their customers. The methodologies adopted currently by retailers for designing communication strategies are neither structured nor robust; this paper aims to attend to this need for a framework which can assist managers, of different formats, in taking decisions regarding the communication strategies. The utility of the framework has been illustrated by developing communication strategies for a leading departmental store chain in India, and comparing them with the existing strategies.

As everyone discusses the furious pace of development in emerging markets such as India, one definite contributor to this growth has been the organised retail industry. Even as the organised retail industry in developed nations stagnates, we can see an increasing rate of growth in the emerging markets. In fact, the slowdown in the traditional hubs of organised retail is forcing the large players to look for opportunities for growth in other nations – and they have all set their sights on the emerging nations of Eastern Europe, India, etc. These markets represent fast developing economies where consumer spending power is on an upward trend. Also, the consumers in each country belong to distinct groups which have varied needs and demands.

To fulfill to each of these customer groups, retailers have come up with different formats within organised retail, the most popular of which are Hyper-marts, Super-Markets, Departmental Stores, and specialty stores. Each of these formats offers a different set of benefits to the consumer, though there is a fine line separating them from each other. To reach out to the customers, and to effectively communicate its message, each format needs a separate communication strategy. This need, in turn, has created a need for frameworks that the marketers can use to promote their own store and format. To reach out to the customers, and effectively communicate its message, each format needs a separate communication strategy.

3.4 Some Research Practices Used in Retail Stores:

The retail malls can undergo some homework so as to identify the current strategies and communication tools prevalent in the market. The following ideas have been derived for the same:-

• Importance of Customers: As with any business, all the decisions of the management take into account the customers. However, since the formats target different customer segments – which are differentiated on subtle factors, there are differences in decision making across the stores.

• Positioning of the Store: Again, as with any business, the positioning of the store is interrelated to the customer segment which is being targeted. The positioning of the store and the target customer segment are interdependent and together form the basis for most other decisions taken by the management.

• Customer Touch Points : The stores are looking at ways to increase interactions with customers and one way to do it is to enhance the interaction at specific ‘touch points’ – points where there is an opportunity to actively communicate with the customers such as wash rooms, trial rooms, billing counters, etc. Communications through these touch points have a higher probability of getting across as the clutter is removed and there is a higher chance of gaining customer attention.

• Timing of Purchase: Every format observes a certain period in each month where the bulk of the sales are achieved, and during these periods all stores try to capture the attention of the customers to maximise these sales. Big Bazaar, for instance, observes the bulk of its sales between the 28th of the current month to the 8th of the next month, wherein the staples and other essentials form the most sought after products. During this period, the emphasis is on maximizing sales and thus offers and discounts are offered on these products.

• Similar Communication Tools across Stores: We observed that almost all stores use similar communication tools, especially instore tools. These tools have a proven track record in terms of being able to garner customer attention, and the management is not willing to experiment. This has also lead to limited use of new media such as digital and interactive bill boards, which involve higher costs and unproven efficiency. The stores use other media generally only to promote specific schemes and offers.

• Communication Strategies of Competitors: Stores give consideration to the communication strategy followed by similar format competitors, while they are designing one for themselves. The market is large enough to accommodate all players, yet no player wants to watch on the sidelines while one store makes use of a new tool or media and thus the competition analysis.

• It would enable retailers to design a communication and promotion strategy that would help them meet their unique requirements. The communication need is derived from the marketing objectives of the firm, which can further be categorized as strategic objectives (long term) and tactical objectives (short term). The strategy would be different for each of the objectives, but the basic framework remains the same.

• Customer Analysis: Once the marketing objective is clear the manager should identify the target group and develop a customer profile. The manager should address a few questions such as: Who is my customer? How do customers behave in the shopping centre? When do customer purchase from our store? These questions lead to identification of various customer-attributes such as - Demographics, Psychographics, Income levels, Price sensitivity, Fashion sensitivity, Loyalty and Media access.

• Retail Analysis and Environment : It is important to understand the source of the communication (retailer) along with the receiver (customer). The manager should identify the following factors:

1. The communication practices of a retail chain and the centralization of decision making which affect the capability of store managers to address tactical issues.

2. The size, shelf arrangement, and location of individual stores that help in attracting the walk-in customers. For e.g. retail shop in a shopping mall would attract youth while a retail shop at a shopping market would attract householders.

3. The positioning of the retail chain. The communication strategy should not dilute the positioning and confuse the shoppers. For e.g. Shopper’s Stop is known for luxury brands and price-off promotions would be contrary to such positioning.

• Competition Analysis: Currently, the scope of the retail market in India is huge and the competition among organized retailers is low. This has lead to a situation where most retailers are not concerned with competitor activity. With the expansion of organized retail in India, the competition among retailers will increase and therefore, it is important for retailers to perform competitor analysis including identification of competitor, their communication strategies and the impact thereof on customers.

• Communication Analysis: Based on the communication objectives, a manager should choose communication types (Promotions, Public Relations, Direct Selling, Personal Selling, and advertising) and corresponding tools (price promotions, coupons, Signage, Posters, advertisements, consumer contact activities, sponsorships, events etc.). He should also select suitable media and media vehicle based on communication objectives (high reach or high frequency), past performance of media, etc. Attention should also be paid to media accessibility of target customers, which also helps in identification of new media which can be used.

• Market Environment: There are various market environment factors which affect the communication strategy and force retailers to adopt new or altered strategies. For example, Introduction of a new product by a manufacturer can lead to increase in attention and focus towards the new product, attention towards the existing product declines. Also, externalities like recession can decrease customer disposable incomes, causing higher demand for low price items. The discount retailers can tap this opportunity by giving price-off promotions. The premium retailers on the other hand should not change their positioning but use different means of retaining their customers such as longer credit period for loyal customers etc.

The organization face several decisions, strategic as well as tactical, and adopts communication strategies for each. The current communication strategy development process involves a study of the message to be conveyed, the target audience and the effectiveness of media available based on past performance. The company treats each communication need as an individual message and the same process is repeated every time. The comparison between the existing and proposed strategies distinctly brings out the advantage of having a formal structure to follow. The current focus of retailers is on traditional media as they have been unable to track the media accessibility of the target customer to new media, which would be crucial for future communications given the emergence of mobile phones, internet, and digital billboards etc as media types. This information can be obtained in part by analyzing competitor’s communication strategy to detect early adopters of media technologies. The external market environment has also been ignored by retailers, even though it can alter the consumer behavior - making existing strategy of using past communication effectiveness as a standard useless. The current shift in consumer preferences towards low price offerings due to economic crisis is an excellent opportunity for discounters. However, these lucrative opportunities should not be utilized if they lead to dilution of the positioning of the retailer.

The external market environment has also been ignored by retailers, making existing strategy of using past communication effectiveness as a standard useless.

However, this can cause confusion among the loyal customers who may switch towards other retailers offering more fashionable products at reasonable prices. It was also observed that the communication needs are largely considered by the management to be tactical in nature (for a given period). The tactical decisions which repeat over time however become strategic and should be tackled uniformly across the retail stores. The Red Apple sales and Mahasale are considered as tactical but as they are repeatedly undertaken, the customers expect them to happen and thus the nature of these becomes strategic, requiring top management involvement.

The proposed framework would immensely help management to extensively analyse all the important aspects before designing a communication strategy for a given management objective. The robustness of the framework is the key for successful realisation of objectives.

3.5 Effective Communication Strategy at Malls:

Retailers should expect customer-centric retailing to continually gain steam throughout 2013. Over the last few years, there has been an exponential increase in the potential paths a customer can take in the buying process.

• Right Positioning: The effectiveness of the mall developer's communication of the offering to the target customers determines how well the mall gets positioned in their minds. At this stage, the communication has to be more of relative nature. This implies that the message conveyed to the target customers must be effective enough in differentiating the mall's offering from that of its competitors without even naming them. The message should also clearly convey to the target audience that the mall offers them exactly what they call the complete shopping-cum-entertainment point that meets all their expectations. The core purpose is to inform the target customers about the offering of the mall, persuade them to visit the mall and remind them about the mall. The mall developer can create awareness about the offering among the target customers in a number of ways. Various communication tools available to the mall developer for this purpose may include advertising, buzz marketing, celebrity endorsement, use of print media, press releases and viral marketing .Once the message is being conveyed through these channels, the mall developer must add a personal touch to his message by carrying  out a door-to-door campaign in order to reinforce the message of the product.

• Effective Visual Communication: Retailer has to give more emphasis on display visual merchandising, lighting, signages and specialized props. The visual communication strategy might be planned and also be brand positioned. Theme or lifestyle displays using stylized mannequins and props, which are based on a season or an event, are used to promote collections and have to change to keep touch with the trend. The merchandise presentation ought to be very creative and displays are often on non-standard fixtures and forms to generate interest and add on attitude to the merchandise.

• Strong Supply Chain: Critical components of supply chain planning applications can help manufacturers meet retailers' service levels and maintain profit margins. Retailer has to develop innovative solution for managing the supply chain problems. Innovative solutions like performance management,    frequent sales operation management, demand planning, inventory planning, production planning, lean systems and staff should help retailers to get advantage over competitors.

Shopping mall development in the early days focused on expansion of hardware such as enlarging building size and adding new floors, but recent developers of retail centers consider, in addition to physical expansion, expansion of software (functions) which includes providing various services related to health, beauty, education and entertainment. Such a change in trend continues. One-time visitors revisit a shopping mall to benefit from customized services, hence contributing to vitalization of the shopping mall. The vitalized shopping malls accumulate strengths that surpass those of existing competitors while consistently reflecting their loyal customers’ needs, and maintain this virtuous cycle until it is superseded by new competitors. The mall and the retailer should work out a strategy where the mall focuses and enhancing the overall experience and the retailer focuses on the delivering a good variety of products, With the retail business state will grow at a rapid speed, managing malls is a huge challenge. The need for proper retail asset management is critical.

It’s an old truism that retail starts and stops with the shopper. Understand why shoppers behave the way they do and you can inform and influence their shopping behavior . Influence their buying behavior and you can get them to spend more at your store and less at your competitor’s store. Sales go up, out of stock go down and all stakeholders are happy.

Unfortunately, shoppers are fickle and unpredictable, and they are constantly changing their minds and the way they shop. The advent of mobile marketing adds to an already crowded mix of options for information that includes television, print, Internet and more. This makes the retailer’s job of buying what is going to sell less intuitive and more dependent on data-driven insight.

It is clear that the omnichannel world of retailing is requiring marketers and merchandisers adjust the way they attack the point where there is a consumer interaction. They need to message and promote to that segment of one to gain ultimate relevancy. And along the way they still need to do the basics of adjusting assortment to local market, optimizing replenishment and anticipating challenges throughout the supply chain.

While there is no panacea for this new world of retailing, there is something that’s close — a Big Data approach that integrates traditional sources of information like the transaction log and ASNs with social media and other unstructured data to give the retailer a quick and true picture of the business. By providing the marketers and merchandisers with the technology that delivers a full view of the potential impact their programs will have on sales and profits, retailers can close in on the goal of giving shoppers what they want, when and where they want it.

Innovative retailers will use Big Data analytics to derive intelligence from the new and emerging data types that had previously strained their systems. While creating the new applications for analysis of multi-structured data requires a strategic investment in specialized resources and tools, the payoff is immense. The technology will help brick and mortar retailers to effectively combat the challenges of show rooming. It will help e-retailers enhance their personalization of offers to customers. And it will help multi-channel retailers cross-sell a mobile shopper who happens to be in a physical store.

Using advanced analytics technology is critical to leveraging data to improving the promotional interaction with shoppers. The use of a data warehouse to analyze both structured and unstructured data is critical for all retailers with the goal of being the store of choice for shoppers. By using Big Data analytics to better understand behavior, retailers will optimize the way they go to market with an increasingly on the channel worlds this is important because shoppers are not committed to a specific store or online retailer-they will go to wherever their needs are met best.

Big data presents both an opportunity and a threat to retailers. Those companies that are able to capture and analyze complex data streams to extract new insights with precision will have a major advantage over their less-informed competitors. On a positive note, it is believed that more retailers will realize the need to integrate the varieties of data to create insight for personalized experiences on any and every channel.

3.6 Marketing Strategy for Retail Malls through Market Segmentation

The shopping mall image is derived from the customer perception toward the performances of shopping mall attributes such as merchandising, accessibility, service, atmosphere, entertainment, food, and services. There are four results from the market segmentation processes; they are market or customer segments, customer demographic profile, customer shopping behavior description, customer perception and customer opinion toward the shopping mall image.

Nowadays one of the global market main challenges for shopping mall industry is the intense competition between the shopping mall both in the same region and also in the different region as well. (Soriano, 2003). This competition becomes more intense because the shopping malls not only compete with the other shopping malls but also with the other shopping centers format such as strip centers. Beside that, the shopping malls also have to compete with the indirect competitors both for the stores formats such as department stores, specialty stores, category specialist etc and for the non store formats such as online retailers, television home shopping, direct selling, etc as well. (Levy & Wietz, 2007, p.192)

Another global market main challenge of shopping mall industry is the changing of consumer market. Spurred by several demographic and life style trend, consumers have become a heterogeneous market. One composed of numerous micro segments. These trends include increasing ethnic diversity, an increasing proportion of elderly, smaller households due to the lower birth rate, higher divorce rate, greater double income, etc. (Dunne & Lusch, 1999, p.88).

In response to the intense competition and the changing consumer environment, several industry practitioners and academic experts have expressed the benefits of targeting specific consumer segments, positioning or repositioning the mall to attract those segments and differentiating the shopping mall’s attributes (Alexander & Muchlebach, 1992, p.75). Shopping malls management realized the efficiency and effectiveness of targeting a few segment of the market. Before target markets can be selected, the market must be segmented into meaningful group that can be realistically with the communication and marketing mix (Kotler, 2004, p.9).

The understanding for the need and characteristic of each customer segment gives the advantages for management of shopping mall in designing appropriate marketing strategies in order to attract potential customer segments which result the increasing visitor traffic and the increasing of tenants’ revenue within the shopping mall.

• Shopping Mall Images

Nowadays the development of shopping mall is growing very fast especially in the developed and developing countries that leads to tight competition within shopping centers, but although there are so many shopping malls even in the same area, however each of shopping mall has its own image in the customer perception. Shopping mall attributes created distinctive shopping mall image as the result of the combination of several attributes performance within the mall

• Merchandising

Merchandising is an important image attribute because it represents the core product of shopping center based on Berman and Evans study (as cited on Sit et al. 2003). The roles of merchandising are also supported by Wakerfield and Baker (1998) that highlighted the merchandising and tenant variety as stimuli that induce purchasing in a shopping mall setting and thus influence the consumer image of the mall.

• Accessibility

The definition of accessibility is the ease of getting in and out of a shopping center (Levy and Weitz, 2007, p.594). Accessibility can be further divided into macro accessibility and micro accessibility. Macro accessibility concerns access road condition to the center and the proximity of the center from the customer’s work place or residence. Meanwhile according to Sit et al. (2003), the micro accessibility refers to parking facilities within the center and the ease of navigation within the shopping center. The definition of accessibility is close related with the site selection process and layout planning within the mall as one part of retail mix.

• Service

Shopping center services are confined to behavior of retail employees such as courtesy, knowledge, and friendliness. Thus these services can be classified as personal service. By Lovelock et al (as cited in Sit et al, 2003). However, according to Berman & Evans (as cited in Sit et al, 2003) besides personal service, shopping mall also provides communal services in terms of ambulance such as escalators, lifts, and sign boards and amenities such as restrooms. Sit et al. (2003) stated that both personal and communal services are central to the shopping mall image because they represent the augmented product that support the core product (merchandising) and also add value to the total shopping experiences of the customers.

• Atmospherics

Atmospherics refer to the design of an environment via visual communicators, lighting, colors, music, and scent to stimulate customer’s perceptual and emotional response and ultimately to affect their purchase behavior (Levy & Weitz, 2007, p.510). According to Smith and Burns (as cited on Sit et al, 2003), the atmospherics are critical because they act as environmental cues that consumers use to imply the quality of a shopping center. Further, atmospherics have been reported to stimulate consumer purchase at a shopping mall (Wakefield & Baker, 1998).

• Entertainment

Entertainment is pivotal for shopping center because it induce an exciting or fun shopping experience, which in turn can entice consumer patronage. Entertainment in the shopping center can be categorized into special event entertainment and specialty entertainment. The key distinction between these two types of entertainment is the length of duration or span of operation. Special entertainment is offered on an occasional or seasonal basis for a short period of time. Conversely, specialty entertainment is generally incorporated into a shopping center’s property for longer duration (Haynes & Talpade, 1996).

• Food

Food is pivotal to shoppers because they: first, create an entertaining ambience within a shopping centre conducive to a pleasant or exciting shopping experience. And second, provide a needed break from hours of shopping and or as a conclusion to an extended shopping excursion (Haynes & Talpade, 1996).

• Security

Besides attracting consumers, shopping centers also appeal to the criminals. The consumer behavior literature by Schiffman & Kanuk has revealed that many consumers are risk averse and thus they may be reluctant to visit a shopping center that is perceived to be dangerous (as cited in Sit et al. 2003). Despite its significance, Sit et al. (2003) elucidate that limited studies have examined the contribution of security to shopping center image. There are three security variables; they are quality of the center, safe place to be, and the personal security.

• Customer Perception

Perception is defined as the process by which an individual selects, organizes, and interprets stimuli into a meaningful and coherent picture of the world (Schiffman and Kanuk, 2004, p.158). Meanwhile customer perception according to Cutlipp (1999, p.120) is the interpreted of scene of actions, included people, places, actions, and entire range of phenomena, which is give perceptions of that scene to the customer and respond based on the perception.

Two individuals may be exposed to the same stimuli under the same apparent conditions, but how each person recognizes, selects, organizes, and interprets this stimuli is highly individual process based on each person’s own need, values, and expectation. (Schiffman and Kanuk, 2004, p.158)

• Market Segmentation and Targeting

Market segmentation can be defined as the process of dividing a market into distinct subsets of consumers with common needs or characteristics and selecting one or more segments to target with a distinct marketing mix (Schiffman and Kanuk, 2004, p.50). Based on Kotler, there are two kind bases for market segmentation. They are descriptive base and causal base (as cited in Lee Hew & Fairhurst, 2000). The descriptive segmentation base uses demographic, socio-economic, geographic, personality, lifestyle, product usage and brand loyalty as the characteristic of customer in the market. Demographic and socioeconomic bases, which include age, gender, education, marital status, and life cycle stage, have been utilized most frequently. There has been empirical support for the validity of using the descriptive segmentation bases (Plummer, 1974).

The causal segmentation bases include self concept, attitude or preference or perceptions, benefits and usage situation. These bases typically are preferred over descriptive ones, by academicians and practitioners, because of their link to the actual behavior of the consumer. There has been empirical support for the validity of using the causal segmentation bases (Finn and Louviere, 1996).

The shopping malls management face lot of challenges nowadays. Those main challenges replace the mass marketing strategy into the segmented marketing strategy for shopping mall management. Moreover this research did causal market segmentation based on shopping mall image. The next phase is the market targeting process that was conducted by measuring each market segment based on their perception toward the performances of shopping mall attributes and based on their shopping behavior in order to identify and to select the potential market segment to be served and treated specially.

After finding the potential market segments together with their perception information and their shopping behavior; then the development of marketing strategy can be established.

3.7 Market Segment Analysis

Demographic Profile for Each Market Segment

The market segment is dominated by female teenager with average age on 13-19 years old. Their marital statuses are single with education background at senior high school and some of them at bachelor level. They are student with monthly income below Rp 1 million (± US$ 100) and only small number of them has income between Rp 1 – 3 million (± US$ 100 – 300) per month.Another segment is dominated by young female with average age on 20-25 years old. Their marital statuses are single with education background at senior high school and small number of them at bachelor level. Most of them work as an employee with monthly income below Rp 1 million (± US$ 100) but also many of them have income between Rp 1 – 3 million (± US$ 100 – 300) per month. Finally for segment 3, the description of its demographic profile is as follow: This segment is dominated by male with average age on 20-25 years old. Their marital statuses are single and some of them are married with more than one child. Most of them have education background at senior high school but also many of them have bachelor level. They work as an employee with monthly income below Rp 1 million (± US$ 100) but also some of them have income between Rp 1 – 3 million (± US$ 100 – 300) per month.

Opinion Description for Each Market Segment

“Demander” segment as the convenience place where they can do the shopping activities on many stores that offer many type of products with good services and also can enjoy the atmosphere within the mall. In retail perspective, this segment perceived that the quality performances can be seen on merchandising, service, and atmosphere dimension or attribute.

“Rationale” segment as the strategic mall because of its location in the center of Surabaya which ease the customer to access the mall from many directions all around the city; also because of its history as the first mall in Surabaya and because of many occasional entertainments such as celebrities visit, exhibition, etc. In retail perspective, this segment perceived that the quality performances can be seen on accessibility and entertainment dimension or attribute.

“Satisfier” segment have the combination of opinion from segment 1 and segment 2. Therefore in retail perspective, this segment perceived that the quality performances can be seen on merchandising, service, atmosphere, accessibility, and entertainment dimension or attribute.

3.7.1 Marketing Strategy Recommendation:

There are three market segment revealed, namely “Demander”, “Rationale”, and “Satisfier”. Market segment “Demander” refers to customers who demand the entire shopping mall attributes to perform well in reaching their expectation and satisfaction. Meanwhile market segment “Rationale” refers to customers who are rationale that can balance between which attributes performances are perceived important and which are not. Finally, market segment “Satisfier” refers to customers who have less demand on the performances of shopping mall attributes.

Moreover, based on the observation and analysis the profile of each market segment especially on the perception of each market segment toward the performance of shopping mall attributes, then two potential market segments are identified; they are “Rationale” and “Satisfier”.

The recommendations for marketing strategies in serving the target markets are explained as follow: For merchandising attribute; the brand options variable is perceived important which means the mall management should manage the stores or tenants within mall to offer many brand options. Meanwhile for accessibility attribute; the road access to the mall is perceived important which means the mall management should coordinate with the local government in providing good road access condition into the mall.

For service attribute; the personal service and amenities service should be managed and be maintained well. Courtesy, prompt service and knowledge of the staff at information desk are the important variables to be noticed on personal service. Therefore mall management should schedule the training program for staffs at information desk in order to prepare them to be courtesy to customer, having appropriate mall knowledge, and help the customer promptly. While the restrooms which are clean, easy to be found, and strategically located are the important variables to be noticed on amenities service. Therefore mall management should monitor the cleaning service department and the traffic into the restrooms location.

At the mean time, for atmosphere attributes; comfort situation within mall is perceived as the important variable Therefore mall management should manage the customer traffic to flow smoothly within each part of location within mall. For entertainment attribute; both permanent and occasional entertainment are perceived important. Therefore mall management should manage the contract with stores that supporting the permanent entertainment such as cinema, game zone, toys stores, etc. In addition, mall management can arrange many occasional entertainments such as live music, performances by celebrity, conducting exhibition, etc to provide occasional entertainment at the mall.

Finally for food attribute and service attribute; the entire variables are perceived important. Therefore food court center, types of food offered, food price, and the quality of food should be managed well by monitoring the performances of food department at the mall. Meanwhile the safety of the mall facilities such as escalator and lift, safety in all mall areas such as restroom, parking space, and inside mall, safety of vehicle, and the security guard on duty should be developed or at least maintained at the good level by mall management through the monitoring of security department at the mall in partnership with local police department and also through the coordination with its customer via security campaign within mall.

As companies in the retail sector gear up for harnessing global opportunities, it is important for them to have a solution partner with strong global capabilities. Companies has to tackle their global challenges and need to deploy Open Communications solutions globally, providing the same level of business benefit .These global business benefits can be achieved through improvement of processes or the deployment of collaborative tools and environments among the different teams in the companies.

3.8 Global Issues for Retail Malls in Framing their Strategy:

Retail, of about 15 million employees in America alone is one of the largest industries in the world by number of businesses and number of employees. Retail sales in the U.S. totaled an estimated $4.920 trillion during 2013, according to Plunkett Research.

3.6.1 Factors that will Impact the Retail Sector during 2013 in the U.S. and Europe:

▪ Surveys show that consumers are focused on increasing their savings and paying down debts.

▪ Persistently high unemployment levels and a difficult environment for job seekers are reducing retail spending.

▪ Price-sensitive consumers will continue to be more conservative. When they do spend, they want to feel like they are buying merchandise that is fairly priced, if not a significant bargain.

Meanwhile, competition among retailers has never been tougher. A retailer without a significant competitive advantage doesn’t stand a chance. Superstores are battling each other on every major corner, while Internet marketers are stealing customers from stores. Some consumers are using stores as showrooms where they can touch and feel the merchandise, and then making their purchases at lower cost online at sites like . Online selling at deep discounts is even making inroads into major consumer purchases such as jewelry.

The retail industry is experiencing a momentous shift in consumer behavior, fueled by the ubiquity of smartphones. In the U.S. alone, 31% of online shopping traffic happens on mobile devices.

Growth in online shopping has been driven by two factors. First, the number of fast Internet connections in U.S. homes and businesses leapt to about 100 million by 2013, plus tens of millions of wireless connections, which makes buying online faster and more interactive. Next, there’s the savvy marketing of online giants like (with more than $48 billion in 2011 revenues, by far one of the fastest growing companies in the world), as well as the e-commerce efforts of traditional retailers such as Home Depot and Wal-Mart. These fast Internet connections are extremely important, even at the office, since a large number of workers take time out to shop online from their desktops. Globally, the number of Internet users has passed 2.4 billion.

Analysts at e-Marketer reported growth in American e-commerce sales from $188 billion in 2010 to $194.3 billion in 2011. This figure does not include online travel sales or sales of tickets to events. For 2012, the firm forecasted U.S. e-commerce retail to reach $224.2 billion, and for 2015 sales are expected to hit $270 billion. Travel was forecast to grow 11% to reach $119.2 billion in 2012.After a dismal 2008-09 recession, retailing has bounced back. However, retailers are much more conservative. Stores of all types have been seeking creative ways to cut operating expenses. Methods range from reducing the size of stores to lowering the employee count to reducing inventory exposure. Meanwhile, sales of luxury items have made a strong comeback at many stores in America, while luxury sales have been surging in recent years in developing markets such as China, where high-end stores including Tiffany & Co., Hermes and Gucci do very well.

Typical U.S. and European consumers are focused on buying less, and when they do make purchases, they are seeking the best possible prices.  This means that revenues have been strong at so-called “dollar stores” in America, and at other outlets that are known for exceptionally low prices. Elsewhere, many retailers, including department stores, are forced to offer special prices on a frequent basis.

Sales of private-label items are generally growing at a faster rate than those of name brands. At Kroger, for example, house-brands make up 40% of products sold, up from 34% in 2010. Kroger stores stock, on average, about 11,000 private label items. Overall, private-label sales (in supermarkets, drug stores and mass merchandisers) grew 3.92% over the previous year, to reach $92.7 billion in the U.S. in 2011, according to the Private Label Manufacturers Association.

Coupons have made a big comeback. Big factors in this growth include the financially challenged consumer and the use of advances in technology. Coupon distribution via cellphones has made a big impact. Also, the fact that consumers now use the Internet to search for and print out coupons caused significant growth. Another huge boost to coupon redemption is web sites that push special offers to members, such as Groupon. The success of this business strategy has led to a massive wave of coupon site startups around the world. It remains to be seen whether they can continue to lure retailers and restaurants to offer immense discounts and then split those discounted receipts with the coupon firms.

The most exciting stories in retail industry growth are in emerging nations, such as China, India and Brazil. In China, many of the world’s leading retail chains are rushing to open stores and new malls have been developed at a rapid clip, even in remote cities. This retail trend in China includes middle-of-the-road chains such as Nike and Starbucks, automotive centers including car dealers and tire and accessory stores such as Goodyear, as well as the world’s top luxury retailers, including Chanel, Louis Vuitton and Fendi. The government in India is taking steps to open up the Indian market to foreign retail chains also.

In the U.S. and Europe, many businesses outside of the luxury field have repositioned themselves as providers of high-value, reasonably priced merchandise. Household product makers are emphasizing lower-priced soaps and detergents, or high-value larger packages. Even companies that were already known for reasonably priced goods have changed strategy to some degree. Ann Taylor, a national U.S. chain of moderately priced women’s fashion stores, hired a new designer during the recession and added a selection of trendier, fashion-forward clothes at reasonable prices. Thus, it has been able to retain existing customers while attracting new shoppers who want chic clothing that fits within their restrained budgets. This is a good example of adapting to the new retail era, since many fashion-conscious women have become more conservative about the amount they are willing to spend on clothing. “Shop your own closet first,” is the new mantra of some American women who realize they can get more use from the fashions that they already own. Personal spending has shifted more toward goods and services offering quality, durability, affordability and lasting value, with less focus on the purchase of trendy items for fashion’s sake. Going forward, consumers will spend their money more wisely while using debt more carefully. Successful manufacturers, home builders, services providers and retailers will respond quickly to this trend. When consumers spend, they want to do so with confidence that they are using their money in a smart way.

3.9 Innovative ideas for retail secor malls in present era

The retail industry is experiencing a momentous shift in consumer behavior, fueled by the ubiquity of smartphones. While they are out shopping, consumers increasingly are using their smartphones to take and share product photos, search for nearest store locations, research products and prices online, and ultimately, make a purchase. Retailers have caught onto this and are making it easier for consumers to navigate, browse and cart products on mobile-friendly web sites. It is anticipated that the number of merchants accepting mobile payments will explode and consumers will start the move toward using “mobile money.” The practice of “showrooming,” in which consumers use their mobile devices in stores to research a product and compare prices from another retailer or online merchant. A full 20% of online adults are practicing showrooming, and 33% of them say they ultimately used the information to buy an item from another store. With mobile payment on the horizon, this could spell trouble for many brick-and-mortar retailers who will increasingly find their sales cannibalized by these showroomers.

While price-matching is an obvious way for retailers to avoid losing sales to showroomers, retailers also need to seriously consider and develop strategies to attract and engage consumers on smartphones. Additionally, merchants must leverage tactics to build brand loyalty and value. Near-field communication and location-based mobile advertising are on the rise, but until the technology and consumer acceptance are there, retail marketers ought to look for ways to optimize the tools that are already in their kits — mobile-optimized email and mobile messaging — to send highly personalized and targeted messaging.

Retail malls will tell you that nothing is a better indicator of likely future purchases than what a consumer has already purchased. And this order data is more accessible than ever before. By integrating this transactional information with marketing platforms, retailers can segment shoppers based on product categories of purchased items and send personalized coupons, as well as relevant offers. Retailers also can use this information to send service-oriented messaging that speaks to previous purchases, such as reorder reminders, installation tips or customer service contact information. And many of these programs can be automated or triggered based on a consumer’s behavior or action, giving the marketer more time to focus on other innovative ways to build customer loyalty and combat showrooming. Making past-purchase data part of a retail marketing strategy in 2013 is an imperative. The high-quality communications and service will be remembered the next time the consumer goes “showrooming.”

We’re now in an era of mobile commerce. Whether at home, on the go, or in a store, shoppers increasingly are accessing the Internet through smartphones and tablets for product research or to complete transactions. In addition, we’re now in an era of Big Data as a competitive advantage.  Retailers now routinely gather both structured and unstructured (for instance, WiFi-captured store traffic flows) data, and are able to rapidly obtain new and deeper insights into consumption trends and shopper behavior.

Mobility and Big Data also offer retailers significant opportunities on the operational side of the business. With secure, enterprise-class WiFi in the store, managers no longer need to be tied to their desks, and associates can access task and time tools, as well as critical shopper-support information — including the same net-based data upon which shoppers rely. In the same way, the tools of Big Data analysis also can find long hidden inefficiencies in internal business processes, and help retailers save monies in labor and time in the supply chain.

What does this mean for retailers today?

▪ Robust, secure WiFi in the store is becoming a requirement: For the shoppers who are seeking Internet-based information on prices, ratings and reviews, they expect WiFi in the store. Shoppers in dressing rooms or in far sections of the store who would prefer to check out right there and then expect connection to the Internet.  And of course, young age associates who always want to be connected also want fingertip-access to the knowledge that will bring more sales. The next-generation store WiFi also is a tool for personalized experience and behavioral analysis.   

▪ Big Data opens the retail door to the “Internet of Everything”: What was envisioned in the early days of retail RFID now is becoming a fast reality: a responsive, real-time networked web of data flowing from things, people, and processes, reporting on decision-critical events in the business and driving efficiency and innovation. And it opens the door to new types of retailing. As consumers rely less on retail personnel and more on technology-enabled, self-service retail vending machines, micro-markets and virtual stores will create a completely new retail business model with what we call “Digital Malls.” These interactive, low-labor Digital Malls will grow in numbers in densely populated venues such as airports, universities, stadiums, resorts and larger workplaces.  Consumers will be able to research and purchase merchandise while waiting for a train or flight, without waiting in line for a service representative.

Merchants will continue to strive to engage customers across the “splinternet,” a term referenced by many, including industry analyst firm Forrester, Inc. — and the devices that comprise it — looking to land the right strategy and mix of tactics.

The key to customer centricity is understanding that customers want to control how they interact with a retail brand, ultimately shaping a personalized customer experience. Today’s consumers want more from your brand than merchandise — they want to be inspired. For improved loyalty and profitability, retailers must engage customers to get them emotionally invested for the long-term.

Empowering and inspiring customers starts with providing access to a variety of information, such as product data, reviews, inventory levels, pricing, transaction history, loyalty point totals and special offers.

During 2012, we saw many retailers building out capabilities to allow transactions at anytime from anywhere (e.g. via traditional POS, mobile POS, self check-out, kiosks, e-commerce, phone orders, mobile commerce), to support the customer-centric retail imperative. Now that the dust has settled, many are finding themselves saddled with the challenges associated with managing, modifying and migrating multiple systems — chief of which is the integration of customer data from separate, siloed systems. Next year, expect to see a concentrated focus on supporting a seamless transaction experience across all channels. To that end, many retailers may find themselves taking a step back, mapping those paths to identify the information and transaction capabilities that are required at each step to ensure they are meeting heightened customer expectations and have the ability to capture and leverage customer information across all channels.

Retailers now engage customers in executing the buying process in the customer’s preferred channel, and on the customer’s terms. If successful, a retailer is rewarded with the customer’s loyalty, and can leverage the insight gleaned from the customer’s interaction(s) to further personalize the shopping experience. In doing so, the retailer is equipped to deliver relevant, tailored experiences that meet that specific customer’s needs. Retailers that can do this will be positioned for success in 2013 and beyond.

In 2013, we will see continued interest and investment in two types of technology:

1. Clienteling solutions to empower store associates: When customers walk into a retail store, their shopping experience determines whether they will make a purchase in-store or use the store as a showroom. Store associates today need smart applications to give them customer-specific data — such as order history and buying preferences — and empower them to make decisions for customers that also are profitable for the retailer.

In the back-end office, retailers must build profitability rules and automate the administration of those rules to every unique transaction. For instance: What options or incentives are available to a premier customer? For a new customer? For a high-dollar transaction? For a high-margin transaction?  On the store floor, associates must have the ability to look up inventory and customer information via mobile devices that ultimately help customers make their in-store, online and/or mixed-channel purchases.

In other words, rich clienteling solutions help retailers move past “one size fits all” programs that are myopic and erode profit margins, including “low price” and “price matching” strategies, and enable store associates to engage with customers personally to drive sales, satisfaction and return trips.

2. 3D visualization to increase retailer-manufacturer collaboration: Over the past few years, heightened consumer expectations have raised the bar dramatically for retailers and manufacturers alike. Close collaboration and synchronization across the extended retail and manufacturing value chain has now become a vital necessity. With a growing need to configure assortments down to the local store level, retailers and their suppliers are turning to visualization technology to create win-win business strategy.

 For retailers, 3D technology is a dynamic and cost-effective way to test new store designs, understand shopper behavior and introduce new products or promotions. For manufacturing companies, 3D technology can be used to perform shopper research without actually sending product prototypes to the retail store. In fact, leading manufacturers have invested in 3D visualization to simulate different shelf configurations for their products in order to deploy the most effective combinations possible. If showrooming is here to stay, these manufacturers want to make sure that their products are displayed to create the best showing and their supply chains are designed to deliver the best availability.

We’ve already seen how retailers have gotten more tech savvy to engage customers and offer more flexibility in how they shop, with holiday shopping apps across the phone, tablet and PC, in-store modes for mobile apps, and in-store pick up options for online shoppers. As the lines between traditional and digital channels continue to blur, we predict several technology trends in 2013.

Engaging Your Customers

1. Integrated multichannel retail capabilities, strategies and management solutions are poised to have significant impact on the industry, as more retailers move to make omnichannel a reality. With consumers having increased options for how and when they shop, retailers need to deliver a seamless customer experience across all their channels. Optimizing and integrating their shopping channels as part of a single strategy for driving compelling customer experiences has become a must.

As retailers look to better connect with their customers through more relevant campaigns, integrated marketing and digital campaign management solutions are of increasing importance to dynamically manage content across digital channels and measure and optimize ROI on their digital marketing investments. Integrated marketing management solutions combine marketing resource management and multichannel campaign management into a combined executional, operational and analytical process that optimizes marketing impact and returns.

Knowing and Serving Your Customers Better

2. Predictive analytics and big data will be another technology focus area in 2013. In order to remain competitive with a growing variety of shopping alternatives, retailers must seek new ways to deliver the most value, revenue and loyalty.  To do so, they must harness the increasing volume and availability of data using technology to process large amounts of data into meaningful reports and insights as quickly as possible.

Engaging our employees

To help improve operational efficiencies and productivity, we are also seeing increased interest from our retail customers in cloud computing solutions like Microsoft Office 365 and SharePoint Online. With the continued tight economy, the cloud provides cost-effective solutions for retailers to run their business more effectively by optimizing and streamlining operations. It also helps deliver modern productivity tools to deskless store employees. A cloud-based Store Employee Portal, for example, can easily provide personalized access to the information each employee needs to complete their critical sales, inventory and customer service tasks from any device or location. Faced with increasing online competition, retailers must deliver differentiated and superior in-store experiences that leverage their people. To do that, they must engage their employees by providing the modern sales, social, and collaborative tools they need to best serve customers and the business.

2013 is poised to be an exciting time for retail. Today’s technologies can help retailers address the dynamic and multichannel retail environment. By embracing technological change, savvy retail malls can meet the changing demands and expectations of consumers, ensure smart and successful business operations and be in a position of strength to adapt and grow as needs change.

More than ever before, customers were more empowered through social channels, feedback mechanisms, 24 x 7 access to information, price comparison data and “deals.” In fact, consumers have become more comfortable sharing information digitally and online than most will in person. While retailers all had an eye on the customer in 2012, how we take action based on this vast amount of customer information across channels will be the focus for 2013.

Aside from historical transaction data already in-house, retailers now have access to an amazing amount of social data. This unaided information allows retailers to get a glimpse into what customers want in terms of offerings, marketing promotions and services, which products work and which don’t, what offerings customers want in the future and even when and how they plan to spend their money.

The opportunity for retail mall is in finding the right tools and technologies to pare down and analyze data, get more granular and then define proactive campaigns to maximize customer interactions across all channels — a true multichannel approach based on real data. This strategy, which combines the power of predictive analytics with the ability to personalize the shopping experience for individuals, is key to getting closer to customers, driving purchases and increasing revenues.

Already today we can gather and analyze social data. We can target promotions to select customers based on purchase data. We can personalize online marketing messages based on search history. The retailers that are able to integrate all aspects of that data into actionable and relevant campaigns that anticipate and deliver on customer shopping needs will be the big winners in 2013.

3.10 Visual merchandising

The detailed research study acquired a consumer response centred approach to visual merchandising stimuli, in an endeavour to holistically deem this area of the retail apparel industry. Through the study, consumer’s perception towards visual merchandising displays and what effect these displays carry on consumer’s perception and behaviour were exposed. The secondary question pertaining from the introductory literature study was to conclude the effect of visual merchandising displays on consumer perceptions. Explorative research was performed and qualitative data were collected by means of focus groups . End consumers perceptions of visual merchandising were identified and concealed in creating an interest and were longing to promote persuasion towards merchandise and aesthetically to beautify the store. Consumers expressed that the impact that visual merchandising displays had on their buying decisions depended on their personal preferences.

VISUAL MERCHANDISING AND VISUAL MERCHANDISING DISPLAYS

Visual merchandising display plays a pivotal role and is an important subsection of visual merchandising and branches a part of visual merchandising as a whole, it is important to understand all the aspects of visual merchandising. “Visual merchandising is defined as the activity that synchronizes effective merchandise assortment with effective merchandise display.”(Bell & Ternus, 2006:20).The Objective of visual merchandise is to display a complete store together with its merchandise in such a manner that it reaches out and draws the attention of all the potential consumer’s and treats them with an appealing & gratifying shopping environment.

Visual merchandising’s concept urbanized from the term Merchandising. Merchandising is the modus operandi opted by all the stores in order to sell their products to the consumers. It is the course of action undertaken by all the stores to sell the correct merchandise in correct quantity keeping in lieu to achieve the company’s financial objectives (Levi & Weitz,2009:642).Visual Merchandise as defined by Pegler (2010:3) “…showing merchandise and concepts at their very best, with the end purpose of making a sale.”The display of merchandise which makes them appealing, attractive, accessible, engaging and enticing to all the shoppers in the retail store and hence contributes in closing potential sales.

Visual Merchandising utilizes display, colour, lighting, sounds, digital technology and uses interactive elements which catches consumers attention and ends up in persuading them to purchase products. Visual merchandising further helps to convey the image of the brand and reflects the personality of the target markets that the retail store wants to attract. Visual merchandising possess diverse functions in an apparel retail store entailing supporting sales, supporting retail strategies, communicating with consumers and assisting in communicating the apparel retailers ‘ brand image (Levi & weitz,2009;531) All the elements inside a store except the merchandise itself such as store design, lighting, product placements, atmospherics, fixtures and permanent props in total constitutes Visual Merchandising.The Solo objective of all the elements comprised in Visual merchandising is to portray the store together with its merchandise in such a manner that it draws the attention of a possible consumer. Visual Merchandise has urbanized and evolved into being more than product presentation. It contains another aspect called Visual Merchandising Display.

Visual merchandising display

The Focal Point of this research study will be on visual merchandising displays that are currently the core of extreme levels of passion and consideration in apparel retailing (Tullsman, Clark &Rose, 2004: 66-68).Visual Features of the merchandise and store that creates attention or pleasure (Matthew, 2008:48). These display areas are known as feature areas. To all the intent and purposes the displays are used to decorate and beautify a store by adding together additional fixtures, props, posters, materials, colours, frills and objects to a store. Displays in general can be divided into three different categories: on-shelf displays, off-shelf displays and window displays (Matthew, 2008: 48-52)

3.10.1 Uses of visual merchandising displays

Props comprise the main objects utilised in visual merchandising displays and can be defined as the other items inside a store except the merchandise that the store sells (Colborne,1996: 109). Props include a variety of items, antiques, art objects, artificial grass & Snow, ribbons, flowers, banners, boxes, baskets, decorative panels & Screens, Floor coverings, Flexes & Vinyl printing, paper & cardboard, pots, pedestals, textiles and many more which contribute to an effective and enticing Display. Props are secondary to the merchandise sold in store; it enhances merchandise display which is sold at the store, not to detract from it (Colborne, 1996: 109). Idyllically, props should never clutter a display. With reference to the Apparel retail stores frequently utilise visual merchandising displays to exemplify a subject matter that on a regular basis is associated with holidays like Diwali, Holi, Marriage Season, Rakshabandhan, Christmas and seasonal sales.Further, as our nation is urbanizing day by day special days such as Valentine’s Day and major sporting events such (IPL, FIFA etc) also provide ample scope for Visual merchandising displays potential scope in apparel retailing store. Displays are also utilised for general decoration of the stores. Stores are also designed based on themes which are determined by the style, price and the quantity of merchandise available, as well as the merchandise’s relevance to the specific topic (Colborne, 1996: 109).

As per the occasion /event chosen, apparel retailers’s displays can change often. For example, nearly every apparel store uses some form of celebratory display and decoration to demonstrate the Deepawali theme consecutively every year. The props range from Diyas, sparkles and posters/signage. Utilisation of visual display enables a single store to metamorphose into Bazaar of different climates, architectural styles, smells, colours, lights and music. The mood, character and the number of display props that are essential to amaze consumers are dependent on the store’s target market, the type of merchandise they sell, as well as the size of the store (Colborne, 1996: 108). Further, it has been recommended that good and effective visual merchandising display inside a store can sustain customer’s interest and persuade consumers to lower their psychological differences and hence to make a purchase (Kefroot, Davies & Ward, 2003: 144). Therefore retailers use store design to influence consumer buying behaviour and in so doing also influence their perceptions.

In Indian Retail culture question which often rises is whether the visual merchandising displays of a store have the same effect on all the consumers or not. However, Retailers want their stores to attract consumers into their stores, assisting them to find the merchandise they desire and to motivate them to make unplanned, impulse purchases and ultimately provide them with an enjoyable shopping experience (Levi & Weitz, 2009: 509).

The visual merchandising displays and the type of environmental stimuli these displays create could have an effect on consumers perceptions, which is the practice where a person observes, selects, organises and reacts to environmental stimuli in a significant way (du Plessis & Rousseau, 2003: 218). It is therefore important that visual merchandising displays created in an apparel retail store influence a consumer to approach that store and make a purchase, not avoid it. Apparel retailers have to ascertain how their visual merchandising displays are perceived by consumers with the intention to identify what the consumers are actually seeing, how it is interpreted and which features are most important to them.

3.11 CONSUMER BEHAVIOUR

Sales and customer footfall in a store are very pivotal aspects in terms of revenue generation. Consumer behaviour plays a decisive role for apparel retailers; knowledge and understanding of consumer behaviour may assist retailers to understand what is important to the consumer, further it also helps in identifying important influences that are present during consumer decision- making. Consumer behaviour is defined as, “The Study of individuals, groups or organisations and the processes they use to select, secure, use and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society” ( Cant, van Heerden &Ngambi,2010: 51).

Consumer behaviour is unpredictable, often retailers ask of their potential consumers is why do some consumers buy certain products/brands, and why do they buy those specific products at certain stores at certain times. Environmental factors convert consumer behaviour swiftly and effects retailing drastically (Cant,2010:7). As perpetuated by the likes of Grewal, Puccinelli, Goodstein, Price, Raghubir & Steward (2009: 24), Consumers emotional state which repeatedly drives the consumers approach is influenced by Visual Merchandise. Visual Merchandising displays form an integral part of visual merchandising. Hence, apparel retailers all around can create visual merchandising displays as per their own perception which they believe will be of value to the consumers and would encourage their buying approach and behaviour. According to Turley and Ronald (2000: 193-211), approach behaviour is seen as optimistic responses to a store, such as an aspiration to stay in the particular store and explore it, and ultimately make a purchase. On the other hand, avoidance behaviour comprises of staying away from a store or not wanting to spend time exploring it. Levi and Weitz (2009: 526) argue that consumers see the visual merchandising of a store as a very important element when deciding to approach a store to purchase their products.

3.11 Consumer perception

Consumer’s perceptions often get affected by daily happenings, events and thereby influence consumer’s behaviour. Consumer’s decision making is highly influenced by what they see and what they perceive to be true. It is mandatory for the retailers to understand the whole concept of perception in order for them to determine all influential factors that affect consumers to buy. (Cant et al., 2010: 54) Blythe (2008: 91) summarized perceptions as being “... a process of converting sensory input into an understanding of how the world works”.

Perception as a process entails four necessary steps:

▪ Exposure

▪ Attention

▪ Interpretation

▪ Memory

Levi and Weitz (2009: 532) further explain that consumer’s perception of the store solely depends on the consumer’s shopping goals.Some of the consumers prefer to walk around the shopping arena before they make a purchase. Their perception is totally deemed by the store layout, visual merchandising displays and the environment the store can offer. Price of the products is also an important tool while making a purchase, but the first appearance of the store lays an everlasting image on consumer’s perception about the store. Apparel industry runs on the Mantra of what looks good, sells good. Henceforth, it is concrete that consumer’s perceptions may have an impact on the way they behave towards a store and its merchandise.

There is a lack of literature that examines the influence that visual merchandising displays provoke in consumers and in particular, how these displays influence consumer perceptions. Apparel retailers ought to establish how their visual merchandising displays are perceived by the consumers. It is essential to identify what consumers are actually seeing, how they interpret the displays and which features are most important to them. By doing this, it could benefit the apparel retailer if they align the internal focus of their visual merchandising together with their visual merchandising displays with the consumer’s expectations. Visual merchandising displays are concerned with how the product is visually communicated to a consumer and also whether this message is interpreted in the correct way--ultimately affecting the consumer’s behaviour in such a way that it will lead to a decision to purchase.

This research study aims to identify the relative importance of the influential variables from the consumer’s perspective. The current marketplace has become increasingly competitive and therefore consumer perceptions are crucial for gaining sustainable competitive advantage in the apparel retail industry. Apparel retailers should be willing to analyse the whole process of how consumers make decisions and how perceptions are formed regarding their visual merchandising displays, from the consumer’s perspective.

3.12 ELEMENTS OF VISUAL MERCHANDISING DISPLAY

The foremost important objective of the elements of visual merchandising is to put up and display a store with its merchandise in such a manner that it draws the attention of every possible customer (Bell & Turnus,2008: 20-22).The rudiments of visual merchandising displays, among others, include store design, signage and graphics, atmospherics, fixtures, and props.

Store design: Store design includes all the aspects of visual merchandising. These aspects include visual displays, window displays and interior design as well as fixtures, fittings and lighting (Morgan, 2008: 30). The main purpose of store design is to execute the retailer’s strategy; the design must be consistent with and support the retailer’s strategy by meeting the needs of the target market and building a sustainable competitive advantage (Levi & Weitz, 2009: 508). Store design is important for retailers due to the fact that it can help support the brand image as well as strengthen a successful retail strategy. Retailers rely on the design of a store to attract consumers inside; some retailers choose a more delicate design while others like to surprise and motivate. A retailer’s store design encompasses different floor plans and store layouts (grid layout, racetrack layout, free-form layout) and feature areas (displays). A floor plan is a flat illustration of two dimensions, with the length and width of an area as seen from overhead (Pegler, 2010: 284). The most popular floor plans are discussed below.

Grid layout: The grid layout is the most popular layout used in supermarkets and discount stores, especially stores that adopt self-service. One area of display is along the walls of the store, where the other merchandise is displayed in an equivalent way (Pradhan, 2008: 351). A grid layout permits consumers to move without restraint within the area and it uses space effectively.

The free-flow layout: In a free-flow layout, the merchandise is arranged in an asymmetrical manner. It allows the consumers to move freely throughout the store and this type of layout encourages consumers to browse (Pradhan, 2008: 351).

The racetrack layout: The race-track layout is also known as the loop layout. As the name suggests, the display is in the form of a racetrack or a loop with a main aisle running through the store (Pradhan, 2008: 351). This type of layout is most often found in department stores.

3.13 Signage and graphics

Signage and graphics are used by retailers to help consumers locate particular products and departments in a store. An effective sign/graphic attracts the shopper’s attention and conveys the brand identity, thereby shaping the consumer’s first impression of what they will find inside the store (Bell & Ternus, 2006: 190). Graphics are defined as “...referring to drawings, paintings, and lettering or the reproductive arts of engraving, etching, lithography, etcetera” (Pegler, 2010: 255). In apparel retail stores, graphics usually refers to oversized photos, blow-ups or light box art. Where words cannot be read by everyone, photos and pictures are understood throughout society. Graphics are usually photo blow-ups of people doing things or people who are dressed for a specific occasion. Graphics show people living a particular kind of life and dressing in that life’s style. Graphics can add personality and beauty to a store (Levi & Weitz, 2009: 516). In retail stores, photo blow-ups usually appear as a framed or unframed background panel, or in a light box lighted from behind (Pegler, 2010: 255).

All retailers, and in particular apparel retailers, start communicating with consumers even before they enter the store. From the second that consumers read the store’s name or see the logos on the store front, they receive a message. Signage can be referred to as visual graphics created to present information to consumers. Signage and graphics are used by apparel retailers to help consumers locate particular products and departments. An effective sign attracts the shoppers attention and conveys the brand identity, shaping the consumers first impressions of what they will find inside the store (Bell & Ternus, 2006: 190).

Large department stores often need to display directional signage to direct consumers through the store and to indicate where the different departments are (Levi & Weitz, 2009: 516). Apparel retail stores could use signage in order to indicate the location of certain merchandise, to indicate different categories, and to indicate prices.

Graphics are used to strengthen and emphasize a current promotion or an advertising campaign. A specific photograph may sometimes be the foundation for a complete promotion. A lifestyle graphic is used as a selling device, such as shown in figure below. It usually describes how different items of merchandise are placed together and how a desired look could be created.

Even though a picture is worth a thousand words, it is sometimes better when a message is read as well as seen. Signs are often a consumer’s first contact with a store. Effective signs identify the store and these signs are used to inform consumers of special events (Colborne, 1996: 234). Signs could also be used to describe the theme of a window or an in-store display.

As per Levi and Weitz (2009: 516-517), signage can be used as a form of visual communication, and it can be used in the following ways:

Promotional signage: The goal of promotional signage is to attract the consumer into the store. It describes the special offers on display. : The apparel retailer could use different images to create moods that encourage consumers to buy the products.

As mentioned earlier in this section, signage is used to inform shoppers about merchandise characteristics. This could include price, use, size, fabric content, lifestyle, construction or other benefits. Signs can be made from plastic, metal, paper, straw, branches and other materials, depending on where the sign will be placed. Alternatively, stick-on lettering (decals) could also be used. Stick-on letters are available in a variety of typefaces, colours and sizes. They can be made from plastic, wood, metal, foam, acrylic and other materials (Colborne, 1996: 237).

In order for apparel retailers to effectively use their signage and graphics, they could use the following techniques (Pegler, 2010: 256): Coordinate signs and graphics. The fashion retailer should choose graphics and signage that acts as a link between the merchandise and the retailer’s target market. Inform consumers. Educational signs and graphics make merchandise more attractive. For example, having the price and the type of material the knits are made of help consumers to differentiate between different merchandise. Use signs and graphics as props. Signage and graphics are used as props to merge a theme of the fashion retail store. Keep signs and graphics fresh. The signs and graphics used should be relevant to the merchandise displayed in-store. New signs imply new merchandise.

Limit the text on signs. Signs that have too much text will not be read. Consumers should be able to seize the information on the sign rapidly as they browse through the store. A sign should include lettering that enhances the store design and sends a message about the store’s image and merchandise. Elements such as colour, texture, size, location, style and balance are some of the design principles to mull over before choosing a sign (Colborne, 1996: 234).

3.14 Atmospherics

Atmospherics (also called attention-grabbing devices) refers to the design of the in-store environment through communicating with the consumers by means of senses such as lighting, colour, music and scent (Pegler, 2010: 181). Bell and Ternus (2006: 36) explain that atmospherics that appeal to the five senses of humans can be layered into the store to improve the shopping environment and build the brand image of the store. Layering means including several sensory elements to accomplish a particular atmosphere for the store environment--concurrent use of sight, sound, touch, taste and smell.

Creating the perfect store environment has become a progressively more important method of retail positioning. Stores have individual environments and marketers have to understand that the environment of a store is a significant part of the shopping experience. A consumer’s decision to visit/revisit a store can be influenced by the environment offered by the store and the retail environment can guide consumer’s conclusions about merchandise, service quality and satisfaction of the store. Recent experiential results suggest that signals in the store environment add to consumers perceptions of that specific store (Sharma & Stafford, 2000: 183).

Atmospherics include, but are not limited to, the following (Levi & Weitz, 2009: 530-532):

Lighting: Lighting refers to the method used to provide artificial illumination (Gilmour, 2010:166). Lighting is used to highlight merchandise and to create a mood or a feeling. Lighting can also be used to improve a store’s image.

Colour: The inventive use of colour can improve a retailer’s image and help form a mood as well. Warm colours such as red, gold and yellow can create emotional, lively, hot and active responses, where cool colours such as white, blue and green have a more serene, tender and soothing effect on consumers.

Music: Music, just as colour and lighting, has an effect on a retailer’s image. Music is also used to influence a consumer’s behaviour. Music can direct the pace of the store “traffic” and it can entice or direct consumer’s attention.

Scent: As smell has a huge impact on consumer’s emotions, many purchasing decisions are based on scent. Natural scents create better perceptions in the mind of the consumer than no scent at all. Scented stores give consumers the perception that they are spending less time in the store while browsing through merchandise or waiting for an assistant. Scent, together with music, has an optimistic impact on impulse buying behaviour and consumer contentment.

These devices are used to stimulate consumer’s perceptions and responses to affect their purchase behaviour. For example, lighting in a retail store involves more than just lighting up an area. If lighting is used effectively it may catch the eye of the consumer and it has been illustrated that lighting can positively influence consumer shopping behaviour (Pegler, 2010: 181 and Levi & Weitz, 2009: 530).

A variety of studies have focused on atmospherics and their effects on consumer behaviour (Jang & Namkung, 2009: 451).

3.15 Display fixtures

Display fixtures are pieces of equipment or furniture that is used in a store for visual merchandising display purposes (Pegler, 2010: 125). The main functions of display fixtures are to effectively hold and display merchandise or props (Pegler, 2010: 125). Display fixtures changes as the displays do, depending on the theme or promotion of the store.

Platforms and elevations are commonly used as display fixtures. It is used to provide interest and to help separate merchandise in mass displays. Platforms and elevations can be cubes, cylinders or saddles of any shape and size (Pegler, 2010: 126). Elevations could also include tables and chairs and other pieces of furniture that are used to raise mannequins or arrangements of merchandise.

Mannequins

A mannequin is a life-sized representation of the human body, used mainly in the promotion of apparel items (Maier, 2010: 1). Mannequins are silent salespeople. They stand determinedly for hours and months, in the same position with the same attitude--always pleasing. Mannequins that are well dressed make an impressive fashion presentation. Visual merchandisers that dress their mannequins with style and place them correctly will create a strong initiator for sales (Colborne, 1996: 186). According to Pegler (2010: 91), a mannequin may be a store’s most valuable asset.

Consumers gain more fashion knowledge from merchandise displayed on mannequins than from fashion shows, magazines and advertising. Due to the fact that mannequins are a strong sales tool, visual merchandisers should dress mannequins in the latest fashion merchandise available in store, together with complementary accessories. Shoppers look to mannequins to gain knowledge of combining separates and accessories (Colborne, 1996: 193). Pegler (2010: 91) explains that there are different types of mannequins that can be used in a retail store:

Realistic mannequins are mannequins that resemble the human being best. They have heads, hair and they are “wearing” make-up. In the past, realistic mannequins looked like gorgeous movie stars – perfect body, hair and make-up. Today, realistic mannequins look more like the everyday person. Fashion retailers such as Globus, makes use of realistic mannequins in their displays. Realistic mannequins come in all shapes and positions, from infant to grown-up, male and female. Positions can vary from sitting down with crossed legs or flat on the ground, to leaning against a wall or standing upright. Poses vary from manufacturer to manufacturer, but mostly anything is possible.

Semi-realistic mannequins are proportioned and sculpted similar to realistic mannequins, however their make-up and hair is not natural, but more decorative or stylized. Sometimes, the entire mannequin could be all black or all red, depending on the store.

Semi-abstract mannequins are “doll-like” and decorative. They are not as expensive as the realistic or semi-realistic mannequins, as they might have a bump for a nose, a hint of pursed lips and painted on hair, if any hair at all.

3.16 Props and permanent props

Props are very important objects that are used in visual merchandising displays and can be defined as all the other items inside a store except the floor fixtures and the merchandise that the store sells (Bell & Ternus, 2006: 117). Floor fixtures are pieces of equipment or furniture that are in a permanent position in a store. The main functions of floor fixtures are to effectively hold and display the merchandise sold in store (Pegler, 2010: 125).

Props could include any of the following depending on the type of store design: antiques, art objects, artificial grass and snow, flowers, ribbons, bows, banners, baskets, boxes, decorative screens and panels, floor coverings, papers and cardboards, pots, pedestals, textiles, and more. Props are secondary to the merchandise sold in store; the main purpose is to decorate a store, to create a mood and to create an image for a store as well as to boost the amount of merchandise that is sold (Colborne, 1996: 109). The props that are used in visual merchandising displays change as the displays alter, depending on the theme or current promotion of the store.

Pegler (2010: 193) explains that props originate from an industry that do nothing else but produce props, devices and gimmicks to improve visual merchandising display presentations. The manufacturing companies vary from specialising in mannequins and forms, fixtures, displayer units, backgrounds and much more. Some manufacturers specialise in plants, while others specialise in raw materials from all over the world and supply them to visual merchandisers. For example, props such as crates and cartons can say “import” or “new arrival”. A broom and a shovel could convey “clearance”. Sources of props could include furniture stores, toy stores, garden centres, travel agents, luggage shops, hardware stores, galleries, antique shops, and more. Props can be bought, rented, borrowed or improvised from whatever the visual merchandiser has available.

The mood, character and amount of display props required for a display depends on the target market of the store, the type of merchandise sold, and the image the store would like to portray. When visual merchandisers choose props for their displays, they have to remember the relationship between the theme and the fashion. Props that are chosen well could be the distinguishing factor between a great visual merchandising display and an average one (Bell & Ternus, 2006: 117). The different visual merchandising display elements used in store will depend on the type of visual merchandising display.

3.17 TYPES OF VISUAL MERCHANDISING DISPLAYS

The main function of a display is to present and promote the merchandise that is sold in store. Displays can generally be broken down into four different categories: on-shelf displays, off-shelf displays, point of purchase displays and window displays (Mathew, 2008: 48-52).

On-shelf displays

On-shelf displays are the “normal” displays that are found in a store and that show different variations of products on offer in some kind of rational order (Mathew, 2008: 48-52). They combine functionality with aesthetic sensibility. On-shelf displays are a visual merchandising necessity in displaying merchandise sold in store. The ways in which products are presented depend on the type of fixtures available; basically this could include:

▪ Vertical stacking: magazines or CDs

▪ Horizontal stacking: folded garments

▪ Hanging on hangers or hooks: front faced hangers or side hang hangers

▪ On shelf displays: makes use of floor fixtures such as hang rails, four-way stands and rounders.

On-shelf displays are not the focus area of this study as this type of display’s primary concern is product presentation. Even though this form of display forms part of visual merchandising display, the focus of this study lies in the other forms of displays that are discussed subsequently that makes use of additional fixtures, props, mannequins and signage that changes as the season, event or theme changes.

Off-shelf displays

Off-shelf displays are intended to have added impact by showing the merchandise as it could be used, or possibly next to other merchandise to suggest complementary purchases. They are not used in the regular selling process and are therefore made to create a major visual impact. They are often creatively arranged and are only changed by the visual merchandising team. These types of displays may include props. Props are secondary to the merchandise sold in store; their main purpose is to improve the amount of merchandise that is sold, not to upstage it in order for the consumer to capture the merchandise (Colborne, 1996:109). It is very important that props should never clutter a display.

Off-shelf displays are also used for promotional purposes. Depending on the season, event or special day, a fashion retail store’s displays can change on a weekly or monthly basis. The mood, character and the number of display props that are essential to amaze consumers are dependent on the store’s target market, the type of merchandise they sell, as well as the size of the store (Colborne, 1996: 108).

Point of purchase displays

Point of purchase displays used to be associated with merchandise sold at the checkout counter. Today point of purchase displays can be displays or fixtures used by stores to assist in selling their products. The displays, fixtures and assorted signage can appear outside the store, in windows, and inside the store on ledges, counters, shelves, on the floor or hanging from the roof. These types of displays can be made of cardboard, paper, wood, plastic and metal, or a combination of these materials. Usually point of purchase displays are designed to be part of a promotion or a theme that involves many harmonized elements (the elements will be discussed in the next section)--each one specifically positioned and doing its work in another part of the store (Pegler, 2010: 312).

According to Pegler (2010: 312), some of the reasons retail stores use points of purchase displays are:

The appearance of a sign or a display in the retail store could persuade the consumer to make an impulse decision to purchase.

The sign or display draws attention and directs the consumer to the product.

Point of purchase displays improves the product’s image and it explains the product to the consumer, therefore informing the consumer.

Harmonized promotions could stimulate the consumer to buy the product and to buy other products that are being promoted together with it.

Point of purchase displays can motivate an instant action response from the consumer.

The point of purchase displays can be permanent, semi-permanent, temporary or promotional. For the purpose of this study, the focus is on the temporary and promotional point of purchase displays. Temporary and promotional displays could for example be created for an important Festivals, Valentines Day, Mothers and Fathers Day, Christmas, a new colour, a new season and much more. It could also be used for the general decoration of a store. The display could include an endless number of props which could include banners, posters, mannequins and other facets. Once the event or special day has passed, the point of purchase display’s “life” is over (Pegler, 2010: 316).

A promotional display is a display that is used by a store to promote. For example, if Mothers Day is coming up and the fashion retailer has decided to promote the day, the theme being created will have to be carried out throughout the store--in the windows as well as the in-store decorations, trimmings and props. A sale could also be used as the basis for a promotional display. It can either be a pre- or post-holiday sale, an end-of-season sale or an anniversary sale. On the other hand, institutional displays can also be used. This specific display promotes a thought rather than an item or a product.

Window displays

A window display is a window outside a retail outlet that is used by retailers to display merchandise for sale or otherwise designed to attract consumers to their store (Bell & Ternus, 2006: 290). Window displays are used to communicate to the consumers--what the retailer stands for as well as the image of the retailer; it makes consumers aware of the type of merchandise being sold and therefore creates interest with the consumer (Mathew, 2008: 45). Creative window displays may have the power to stop anyone in their tracks. As mixes of art, fashion, design and marketing, window displays have to rapidly grab the consumer’s interest and they must be created in such a way that they compel consumers into a store. By providing people with an experience, these displays also have the important duty of helping to define a brand's image. Window displays have started to become remarkable art mechanisms, although it takes significant time to conceptualize, plan and install these artistic displays (Mathew, 2008: 45).

Typically, fashion retailers have one of two window styles: enclosed windows or open-back windows (Bell & Ternus, 2006: 277-280). An enclosed window has a solid back wall, two side walls and a glass front that faces the aisle of the mall or that faces the street. These windows have hidden doors where the visual merchandisers can enter to change them. An open-back window does not have a back wall, therefore people who are walking in the aisles of the mall or on the street will not only see the merchandise displayed in the window, but they will also see the merchandise in the rest of the store. Open-back windows should use props carefully or viewers will miss the message the window is attempting to send due to visual clutter.

According to Pegler (2010: 69-72), there are several “special windows” that can be identified:

A shadow box. A shadow box is a small, raised window used for the close- up presentation of unique merchandise or accessories. It has a smaller window surface and the shadow box is often shallower and it is higher than the standard display window.

An elevated window. Elevated windows may have the floor raised up to about 3 meters above street level. A regular mannequin would not be able to stand up straight in this window; however it can sit, kneel or lie down.

Deep windows. Deep windows require a great deal of merchandise to fill the space, and much lighting to light the back area of the window.

Tall windows. In a very tall window, the lighting is very far from the merchandise or mannequins that are used. The visual merchandiser has to use lighting on the sides for emphasis and use the overhead lights for atmospheric purposes.

Now that the types of visual merchandising displays have been explained, it is important to understand the various visual merchandising display settings.

3.18 DISPLAY SETTINGS

Display settings are different approaches a visual merchandiser can make use of when presenting a display. These could include anyone of the following: realistic setting, environmental setting, semi-realistic setting, fantasy setting and an abstract setting (Pegler, 2010: 46). These settings are discussed in the following sections.

Realistic setting

A realistic setting is the representation of a room or an area that is reinterpreted in the display area. These settings are most effective in a closed window display where the visual merchandiser can recreate a miniature stage setting. When realism is used, it is very important that the scale is perfect. The props should be the correct size for the display area.

Environmental setting

An environmental setting is used when the retailer wants to illustrate how and where the merchandise could be used.

Semi-realistic setting

When retail stores do not have enough space or a large enough budget, the visual merchandiser may use a semi-realistic or “vignette” setting. The visual merchandiser only shows what is necessary and leaves the rest to the shopper’s imagination.

Fantasy setting

Fantasy is a genre of fiction that uses magic and other supernatural phenomena as a primary element of a setting. A fantasy setting is dependent on the visual merchandising budget, the amount of time available and the type of store. A good imagination goes hand in hand with a fantasy setting.

3.19 OBSERVATION

It has been suggested that good visual merchandising inside a store can sustain consumer interest and persuade them to lower their psychological defences and make a purchase (Kerfoot et al., 2003: 144), therefore retailers use store design to influence consumer buying behaviour. However, do the visual merchandising displays of a store have the same effect? Retailers want the store design to attract consumers into their stores, assisting them to find the merchandise they desire and to motivate them to make unplanned, impulse purchases and ultimately provide them with an enjoyable shopping experience (Levi & Weitz, 2009: 509).

The visual merchandising displays and the environmental stimuli of an apparel retail store could have an effect on a consumer’s perceptions. It is therefore important that visual merchandising displays created in an apparel retail store should influence a consumer to approach that store and make a purchase, not avoid it. Apparel retailers need to find out how their visual merchandising displays affects consumers perception and what is required in order to draw their attention towards their merchandise.

References:-

▪ Alexander, A.A & Muhlebach, R.F.(1992). Shopping Center Management, Institute of Real Estate Management, Chicago – Illinois.

▪ Bulan Penuh Rahmat, Bulan Penuh Diskon. (2002, November 10). KOMPAS, from Kompas Online Database

▪ Cooper, D.R & Schindler, P.S. (2006). Business Research Methods. 7th edition, Mc Graw Hill, Singapore.

▪ Cutlipp, S.M. (1999). Effective Public Relations, Prentice Hall International, London

▪ Dunne, P & Lusch, R.F. (1999). Retailing, The Dryden Press, Fort Worth

▪ Finn, A and Louviere, J. (1996). Shopping Center Patronage Models: Fashioning a Consideration Set Segmentation Solution. Journal of Business Research, 21(3), 259 – 275, from ABI/INFORM Global database

▪ Haynes, J & Talpade, S. (1996). Does Entertainment Draw Shoppers? The Effect of Entertainment Center on Shopping Behavior in Malls. Journal of Shopping Center Research, 3(2), 29-38, from ABI/INFORM Global database

▪ Kotler, P. (2004). Marketing Management. 11th edition, Prentice Hall, Englewood, New Jersey.

▪ Levy, M & Weitz, B.A. (2007). Retailing Management. 6th edition, Irwin Mc Graw Hill, Chicago.

▪ Maholtra, K. N. (1996). Applied Marketing Research. 2nd edition, Prentice Hall, New Jersey.

▪ Plummer, J.T. (1974). The Concept and Application of Lifestyle Segmentation. Journal of Marketing, 38, 33-37. January 1974, from ABI/INFORM Global database

▪ Schiffman, L.J & Kanuk, L.L. (2004). Consumer Behavior. 7th edition, Prentice Hall, Upple Sadle River, New Jersey

▪ Sit, J., Merillees, B., & Birch, D. (2003). Entertainment Seeking Shopping Center Patrons: The Missing Segment. International Journal of Retail and Distribution Management, 31, 80-94, from ABI/INFORM Global database

▪ Soriano, V.V. (2003). Cross Shopping Trends between Store Formats. The ISCS (International Council of Shopping Center). Research Quarterly. Vol.10, No.3, from:

▪ Wakefield, K & Baker, J. (1998). Excvariableent at the Mall: Determinants and Effects on Shopping Response. Journal of Retailing, 74(4), 515-539, from ABI/INFORM Global database

▪ Weiers, R.M. (1988). Marketing Research. 2nd edition, Prentice Hall, Englewood Cliffs – New Jersey

▪ Bell, J. & Ternus, K. 2006. Silent selling. 3rd ed. New York: Fairchild Publications.

▪ Levi, E. & Weitz, S. 2009. Retailing management. 7th ed. New York: McGraw Hill.

▪ Colborne, R. 1996. Visual merchandising: The business of merchandising presentation. United States of America: Thomson Learning Inc

▪ Jang, S. S. & Namkung, Y. 2009. Perceived quality, emotions and behavioural intentions: Application of an extended mehrabian-russell model to restaurants. Journal of Business Research, 62: 451

▪ Pegler, M. 2010. Visual merchandising and display. 5th ed. China: Fairchild publications.

▪ Tullman, M., Clark, & R. Rose, K. 2004. Revitalizing visual merchandising. Chain store age, 80(7): 66-68.

▪ Mathew, R. 2008. Apparel Merchandising. New Delhi: Book Enclave.

▪ Kerfoot, S., Davies, B. & Ward, P. 2003. Visual merchandising and the creation of discernible retail brands. International Journal of Retail & Distribution Management, 31(3):143-152.

▪ Pradhan, S. 2008. Retailing management. 11th ed. India: McGraw Hill.

▪ Cant, M. 2010. Introduction to retailing. 2nd ed. Cape Town: Juta.

▪ Sharma, A. & Stafford, T.F. 2000. The Effect of Retail Atmospherics on Consumers’ Perceptions of Salespeople and Consumer Persuasion: An Empirical Investigation. Journal of Business Research, 49: 183–191.

▪ Maier, R. 2010. Visual merchandising with mannequins. [Online] Available from: 64.html [Accessed: 2011-01-18].

▪ Turley, L. W. & Ronald, E. M. 2000. Atmospheric effects on shopping behavior: A review of the experimental evidence. Journal of business research, 49: 193-211.

-------:0:-------

Chapter IV

COMPARISON BETWEEN EXCLUSIVE AND

MULTI-BRAND OUTLETS

4.1 Introduction

There are a number of different types of retail outlets with their distinctive attributes. Marketers and customers select particular type of retail outlet considering various aspects. On the basis of three types of distribution, i.e., intensive distribution, selective distribution and exclusive distribution, we can broadly classify retail outlets into two types—exclusive retail outlets (single brand) and multiband retail outlets. As the market is growing and organized retailing is flourishing, it is interesting to study various aspects related to these two types of retail outlets from the consumer behavior point of view. Many interesting question arise like: Why do customers perceive them differently? How do they choose between the two? What are their expectations and experiences from these two types of retail outlets? This article mainly concentrates on these two major types of retail outlets and attempts to compare and analyze them.

An exclusive retail outlet deals with only one brand usually in a single product category. It may be owned by the company itself or be a franchised outlet selling only a single brand. We may find different products of the same brand. Many Indian as well as popular foreign brands successfully run exclusive retail showrooms. Examples are outlets of brands like Bata, Liberty, Reebok, Nike, Addidas, Raymond’s, Van Heusen, Peter England, Louis Philippe, Allen Solly, Blackberry, Scullers, Mango, Oobe, Videocon, Cambridge, Arrow, Ajanta, Titan, Citizen, etc.

4.2 Indian Retail Reforms

Until 2011, Indian central government denied foreign direct investment (FDI) in multi-brand Indian retail, forbidding foreign groups from any ownership in supermarkets, convenience stores or any retail outlets, to sell multiple products from different brands directly to Indian consumers. The government of Manmohan Singh, prime minister, announced on 24 November 2011 the following: India will allow foreign groups to own up to 51 per cent in "multi-brand retailers", as supermarkets are known in India, in the most radical pro-liberalisation reform passed by an Indian cabinet in years;

▪ Single brand retailers, such as Apple and Ikea, can own 100 percent of their Indian stores, up from the previous cap of 51 percent;

▪ Both multi-brand and single brand stores in India will have to source nearly a third of their goods from small and medium-sized Indian suppliers;

▪ All multi-brand and single brand stores in India must confine their operations to 53-odd cities with a population over one million, out of some 7935 towns and cities in India. It is expected that these stores will now have full access to over 200 million urban consumers in India;

▪ Multi-brand retailers must have a minimum investment of US$100 million with at least half of the amount invested in back end infrastructure, including cold chains, refrigeration, transportation, packing, sorting and processing to considerably reduce the postharvest losses and bring remunerative prices to farmers;

▪ The opening of retail competition will be within India's federal structure of government. In other words, the policy is an enabling legal framework for India. The states of India have the prerogative to accept it and implement it, or they can decide to not implement it if they so choose. Actual implementation of policy will be within the parameters of state laws and regulations.

The opening of retail industry to global competition is expected to spur a retail rush to India. It has the potential to transform not only the retailing landscape but also the nation's ailing infrastructure. A Wall Street Journal article claims that fresh investments in Indian organized retail will generate 10 million new jobs between 2012–2014, and about five to six million of them in logistics alone; even though the retail market is being opened to just 53 cities out of about 8000 towns and cities in India. It is expected to help tame stubbornly high inflation but is likely to be vehemently opposed by millions of small retailers, who see large foreign chains as a threat. The need to control food price inflation—averaging double-digit rises over several years—prompted the government to open the sector, analysts claim. Hitherto India's food supplies have been controlled by tens of millions of middlemen (less than 5% of Indian population).

Traders add huge mark-ups to farm prices, while offering little by way of technical support to help farmers boost their productivity, packaging technology, pushing up retail prices significantly. Analysts said allowing in big foreign retailers would provide an impetus for them to set up modern supply chains, with refrigerated vans, cold storage and more efficient logistics. "I think foreign chains can also bring in humongous logistical benefits and capital," Chandrajit Banerjee, director-general, Confederation of Indian Industry, told Reuters. "The biggest beneficiary would be the small farmers who will be able to improve their productivity by selling directly to large organised players," Mr Banerjee said.

4.3 Single-Brand or Exclusive Brand Outlets

On January 11, 2012, India approved increased competition and innovation in single-brand retail. The reform seeks to attract investments in operations and marketing, improve the availability of goods for the consumer, encourage increased sourcing of goods from India, and enhance competitiveness of Indian enterprises through access to global designs, technologies and management practices. In this announcement, India requires single-brand retailer, with greater than 51% foreign ownership, to source at least 30% of the value of products from Indian small industries, village and cottage industries, artisans and craftsmen.

Mikael Ohlsson, chief executive of IKEA, announced IKEA is postponing its plan to open stores in India. He claimed that IKEA's decision reflects India’s requirements that single-brand retailers such as IKEA source 30 percent of their goods from local small and medium-sized companies. This was an obstacle to IKEA's investment in India, and that it will take IKEA some time to source goods and develop reliable supply chains inside India. Ikea announced that it plans to double what it sources from India already for its global product range, to over $1 billion a year, within three years. IKEA in the near term, plans to focus expansion instead in China and Russia, where such restrictions do not exist

On 19 Feb, 2013 Tamil Nadu became the first state in the country to stoutly resist MNC ‘invasion’ into the domestic retail sector. In Chennai, Tamil Nadu CMDA authorities placed a seal on the massive warehouse spreading across 7 acres that had reportedly been built for one of the world’s leading multinational retail giants, Wal-mart. Despite the recent government stay on allowing FDI in multi-brand retail this sector is still going strong with many local players reaping the benefits. This segment of retail has the most complex of challenges when it comes to dealing with inventory management as they need a variety of suppliers and usually deal in a variety of goods including apparel, footwear, toys, cosmetics, homeware etc.

Maintaining a huge inventory master and dealing with replenishment and store planning (for multi-store chains) becomes a huge headache typically resulting in dead stock.Also buying and managing the procure-to-pay cycle is very complex without automation.

“Eclusive retailers often get territory protection from the vendors, in the multi-brand model we frequently have to face tough competition from other retailers because they might just start another multi-brand store in the same area and give better schemes and discounts than us. As a result, in order to retain our customers, we have to be on our toes and keep on holding events and promotions in our stores,” notes P Mahalingam, Director of the Coimbatore-based Indsys Infotech. The retailer currently has two stores in the city. One is a 400 sq ft exclusive Toshiba store, the other a 600 sq ft multi-brand outlet which contributes half the overall revenues.

4.3.1 Single-Brand Advantages

The exclusive or mono-brand is a vendor-centric model retail concept. Here, a retailer has intense commitments in terms of investments, sales, targets and marketing. Some of the benefits that a retailer can derive from exclusive retailing are territory protection, better margins, manpower subsidy, demo subsidy, backend rebates, brand marketing rights, lead generation support and marketing support from the vendor.

The exclusivity status also places a retailer higher on the vendor's priority list. The vendor provides lead generation support, involves him in special marketing campaigns, and even helps chalk out business roadmaps aligned to the vendor's own long-term vision.

According to Sinha, “One of the biggest benefits that an exclusive franchisee retailer can get from a vendor is the payout scheme. Vendors often buy back the stocks that the retailer wasn't able to sell at the end of the day, but this is often not possible in multi-brand stores.”

“The vendor tends to give you more importance than it gives to a multi-brand partner. Exclusive retailers get more discounts and incentives, in addition to branding and marketing support. For example, if a multi-brand partner gets a 5 percent discount on the vendor's products, an exclusive retailer may get around 10 percent. Other than generating leads and giving MDFs, vendors may give an additional 1 percent incentive on the overall sales done by the retailer during a month,” says Naresh Garg, MD of the Chandigarh-based Accord Computech. Garg has two exclusive 1,000 sq ft HP World outlets in Chandigarh and Ludhiana which together contribute Rs 8.5 crore to his revenues.

There's more. In an exclusive store, uniformity in terms of store design, store interiors, store size, products, prices, promotions and events are strictly maintained. This method prevents competition among the vendor's exclusive retailers, and gives all the retailers a fair chance to earn profits. Vendors also work more closely with exclusive retailers to conduct events and promotional schemes, and provide, along with the retailers, region- or city-specific advertisements.

Opines Devraj Parasvakumar Jain, Director of the Bangalore-based DevrajInfotech, “Mono-brand outlets are the always the best option for partners because they provide long-term benefits, and save cost, time and energy. Being the partner of just one vendor, a retailer has to work with only one supplier. By contrast, in multi-brand retail, a retailer has to work with numerous suppliers and will therefore spend more time and energy running after the suppliers than concentrating on achieving the sales target.” With a turnover of Rs 10 crore, Jain has one exclusive HP World outlet in Bengaluru.

4.3.2 Single Brand Disadvantages

Exclusive retail stores certainly have their plus-points, but, like their multi-brand counterparts, they have their share of negatives. “Unlike multi-brand outlets, exclusive retailers get very little footfall and lose out on every other customer,” says Kukreja.

“Over 80 percent of consumers today prefer to go to a store where they can see and test all the different brands and then make a decision. If a retailer has a multi-brand outlet he can keep the customer in the store by showing him different varieties of products. But if a retailer has an exclusive outlet and the customer wants to see and test the competitor's products he can't retain the customer. Two other disadvantages are the risk of losses if the vendor's marketshare falls, and the lack of freedom to make your own decisions.”

4.4 Multi - Brand Outlets

Invasion of multi-national multi-brand retailers such as Walmart is now imminent since Foreign Direct Investment (FDI) in that sector is now legally encouraged by the UPA government. As it is, even today, retail outlets with foreign brands have begun to dominate the marketplace in several segments. It is clear that this will progressively cut into the standalone retailer’s market. For an increasing number of family-run small retail stores the choice would not be between growing slow or growing fast but between growing slow and closing down as their profits evaporate. It has happened everywhere in the world and Indian retailers too can't save themselves from extinction, unless they can counter it some way. In India, common people have to be innovative to fight their government to survive. 

Branded foreign retailers have tempted many such stores to ride their franchisee “Brand Wagon.” The fear of survival and the greed for a rapid growth is making them surrender their independence; their identity. Franchisee route is not possible in case of multi-brand global retailers. The only beneficiaries in this whole gamut of allowing FDI in multi-brand retail will be the foreign multi-nationals and their Indian capitalist class partners. Many retailers are however, yet holding on, with a belief that their neighbor hood goodwill will help them to fend themselves from these branded chains. Some others are simply ignoring the reality, or are too proud to bother. I however, believe that there is way for the small retailers to hold their own, and grow faster and more profitable without surrendering their identity like those who opted for branded franchisee ventures. I feel, from my own experience, that they have an alternative route.

There is no doubt that succeeding or surviving in today’s demanding economy, a lot of retail businesses need to undergo major changes in the way they do business. One finds that the store-fronts are changing and customers are sensing refreshing friendliness. Still many stores have no resources or courage to invest more. Stores are too small to grow with outside capital and borrowing money isn’t easy anymore. Besides, investing more money alone may not help them in facing competition from the big chain stores. It must be realized that more than money, most importantly, they lack advantage of bulk purchase as well as brand equity of their newly emerging competitors.

The biggest advantage of such a cooperative lies in four important areas. First, cost of setting up business will be very low, since all such stores already have low-cost space, unlike the multi-brand foreign retailers. Second, in case of shop-keeper’s cooperative, every retail outlet is owner-managed and therefore, highly motivated. Good management training will also help to develop professional administration of the store and high quality customer relationship. Third, these brand owners have huge traditional long-established and emotionally attached clientele from the locality. Fourth, such locality retailers are never competitors, if the membership is given to one store in each area. A retail stationery shop in Dadar is not a competitor to one in Mahim, nor is one in East Mulundof the one in West Mulund. Creating brand equity of their own will start with a common name for the shops of all member retailers. Retailers normally have an emotional attachment to the store’s name—in many cases their family name. But one should realise that branding your family shop under a common name has many benefits.

Understanding the objectives behind a name change is important. Unlike a franchise, under the proposed cooperative framework one can do so without risking the ownership of business and one’s independence. Under a franchise framework, one loses one’s identity along with the name. Under a cooperative format one shares the ownership of the brand. In today’s highly competitive environment, the strongest brands are those that transcend their speciality service to form an emotional connection with the customer. The key in name creation ensures that it creates a distinct identity that becomes an icon and aids the communications campaign to support the new name. One has to understand that a store’s new name is a smart opportunity to communicate a new or refreshed point of view.

A retailer’s co-operative, if professionally managed, would prevent multi-brand retailers to hurt Indian traders. It has several advantages like lower risk, highly enhanced buying power and professionally evolved strategy for running your business better. A lower risk because the umbrella cooperative shall accept most of the legal and operational risks involved in running a business, you assume less risk at the unit level, far superior buying power as a co-operative of few hundred retailers, negotiating power on products, supplies, and services increases, helping lower costs, better logistics and higher quality assurance. Finally, you have a professionally structured strategy for running your business better. The low overhead costs of the member shops, motivated proprietary management of each outlet, as against the hired management and strengths of unified purchasing, will give the cooperative an edge over the top-heavy multi-brand stores modelled over an international franchisee concept like Walmart.It is an every day challenge for a retailer to satisfy the diversified demands of discerning customers. The further challenges are to reel in more customers, assure their loyalty, drive in more footfalls and ensure the conversion rate. In order to gain more profits, retailers try to lure the customers with in-store signage, advertisements and customer-loyalty programs. No matter how unique these strategies may be, they do not guarantee a success rate.

Thus, to ensure a minimum return on investment, the retailers need to ascertain that the format, product assortment and the location of their store assures profits. Exclusive brand outlet (EBO) does ensure that the store is never out of stock, thanks to the predominant one-brand presence. However, veterans argue that it is the multi-brand outlets (MBOs), which drives more footfalls. In the MBOs, the retailers offer wider range of merchandise but EBOs are in command with better visual merchandising, more control over the brand, customer experience etc. In the response to the open poll question on India Retailing — Exclusive brand stores may allow for greater depth and branding of merchandise, but multi-brand outlets and shop-in-shops are really the revenue drivers for a brand — 91.67 per cent of the respondents support the statement while the remaining 8.33 per cent of them negated it.

4.4.1 Multi-Brand Advantages

 Until a few years ago, the IT retail industry in India was mostly dominated by the mono-brand model. But with the entry of large format retail (LFR) stores like Croma, Reliance Digital and E-Zone many IT retailers began adopting the multi-brand retail model as a way of competing with the LFRs and as a way of adding more value to their business. ³Multi-brand means more footfalls because the public gets a wider choice´ explains S Karthikeyan, Director, and Bloom Electronics. When a customer visits a multi-brand store it satisfies his hunger for choice on both the time and space parameters. The customer gets to choose from a host of brands and products in a single visit to a single outlet, thus allowing him to make a real-time product comparison, save on time, and [perhaps even save on] the cost of purchase.´ Karthikeyan has a 3,000 sq ft two-storied multi-brand retail outlet in Coimbatore; retail contributes Rs 15 crore to his overall revenues. Karthikeyan adds, ³In the case of multi-brand stores, retailers can easily lower their losses because they can distribute their costs among multiple brands. But in exclusive stores, if a vendor suffers a fall in market share or suffers losses, the retailer is unable to reduce his own losses and so he suffers along with the vendor.´

 Retailers often prefer the multi-brand option because they have more freedom to make decisions. ³With exclusivity, retailers often lose out on the freedom to make decisions because they have to abide by the guidelines that the vendor has set for them. For instance, vendors usually have a fixed set of promotions and events that a retailer can conduct through the year. If this is the case, and if a retailer wants to conduct a particular event beyond the decided set of events, he will have to get the vendors permission to conduct the same,´ points out P K Sinha, Director of the Patna-based IT Zone. Sinha has two stores²a 500 sq.ft exclusive HP store, and a 2,500 sq ft multi-brand store called e-Mall. The multi-brand store contributed 60 percent to his revenues while the HP store contributed the rest.

Until a few years ago, the IT retail industry in India was mostly dominated by the mono-brand model. But with the entry of large format retail (LFR) stores—like Croma, Reliance Digital and E-Zone—many IT retailers began adopting the multi-brand retail model as a way of competing with the LFRs and as a way of adding more value to their business.

“Multi-brand means more footfalls because the public gets a wider choice,” explains S Karthikeyan, Director, and Bloom Electronics. “When a customer visits a multi-brand store it satisfies his hunger for choice on both the time and space parameters. The customer gets to choose from a host of brands and products in a single visit to a single outlet, thus allowing him to make a real-time product comparison, save on time, and [perhaps even save on] the cost of purchase.” Karthikeyan has a 3,000 sq ft two-storied multi-brand retail outlet in Coimbatore; retail contributes Rs 15 crore to his overall revenues.

Karthikeyan adds, “In the case of multi-brand stores, retailers can easily lower their losses because they can distribute their costs among multiple brands. But in exclusive stores, if a vendor suffers a fall in marketshare or suffers losses, the retailer is unable to reduce his own losses and so he suffers along with the vendor.”

Retailers often prefer the multi-brand option because they have more freedom to make decisions. “With exclusivity, retailers often lose out on the freedom to make decisions because they have to abide by the guidelines that the vendor has set for them. For instance, vendors usually have a fixed set of promotions and events that a retailer can conduct through the year. If this is the case, and if a retailer wants to conduct a particular event beyond the decided set of events, he will have to get the vendor's permission to conduct the same,” points out P K Sinha, Director of the Patna-based IT Zone. Sinha has two stores—a 500 sq ft exclusive HP store, and a 2,500 sq ft multi-brand store called Mall. The multi-brand store contributed 60 percent to his revenues while the HP store contributed the rest.

4.4.2 Multi-Brand Disadvantages

The multi-brand retail model comes with its own set of disadvantages. ³Offering multiple choices often leave the buyer confused. In a multi-brand setup it’s also difficult for a retailer to recommend a brand to the customer because that would amount to underselling the other brands, states Kukreja. Another disadvantage of multi-brand retail is that not only do retailers face tough competition if other retailers start their own stores in the neighborhood, but they also receive fewer benefits from vendors. ³While exclusive retailers often get territory protection from the vendors, in the multi-brand model we frequently have to face tough competition from other retailers because they might just start another multi-brand store in the same area and give better schemes and discounts than us. As a result, in order to retain our customers, we have to be on our toes and keep on holding events and promotions in our stores, notes P Mahalingam, Director of the Coimbatore-based Indsys Infotech.

The retailer currently has two stores in the city. One is a 400 sq ft exclusive Toshiba store, the other a 600 sq. ft multi-brand outlet which contributes half the overall revenues. Earlier, there were times when vendors would not allow an exclusive partner to start his own multi-brand outlet. If are tail partner wanted to venture into multi-brand retail he would have to start the store with a different name. But with LFRs coming into the picture, vendors have become more lenient and allow their partners to start their own chains of multi-brand retail outlets. However, the matter doesn’t end there, as Kukreja points out: Although vendors have become more lenient with retail partners now, they are still vengeful. They tend to focus more on their exclusive partner sand also tend to give better benefits, support and deals to them than a multi-brand retail partner.´ 

The multi-brand retail model comes with its own set of disadvantages. “Offering multiple choices often leaves the buyer confused. In a multi-brand setup it's also difficult for a retailer to recommend a brand to the customer because that would amount to underselling the other brands,” states Kukreja.

Another disadvantage of multi-brand retail is that not only do retailers face tough competition if other retailers start their own stores in the neighborhood, but they also receive fewer benefits from vendors.

Earlier, there were times when vendors would not allow an exclusive partner to start his own multi-brand outlet. If a retail partner wanted to venture into multi-brand retail he would have to start the store with a different name. But with LFRs coming into the picture, vendors have become more lenient and allow their partners to start their own chains of multi-brand retail outlets. However, the matter doesn't end there, as Kukreja points out: “Although vendors have become more lenient with retail partners now, they are still vengeful. They tend to focus more on their exclusive partners and also tend to give better benefits, support and deals to them than a multi-brand retail partner.”

Before the 1980s people used to import electronic goods from different parts of the world, mainly from Middle East countries. This brought into their notice that there are customers for their product in India, thus the foreign companies decided to invest in India (Bolen, 2004).

A strategy is defined as long term plan to achieve certain objectives. Market objective may relate to become the market leader by delighting customers. Marketing plan is designed to achieve marketing objectives, which may relate to become the market leader by delighting the customers. The strategic plan therefore is the detailed planning involving marketing research, and then developing a marketing mix to delight customers. The more committed a company is to its marketing activities, the more able it will be to pursue its corporate objectives and develop and retain customers. Every business in existence relies upon its customers for survival, and those who best meet customer needs will always survive a period of change. The marketing function is therefore an essential ingredient of corporate strategy, and this marketing focus should be communicated through marketing planning into all aspects of business activity.

In choosing a marketing strategy a frequent distinction i.e. made is between undifferentiated marketing and differentiated marketing. Marketing mix is one of the key marketing function followed by the multinational companies.

When marketing their products firms need to create a successful mix of: the right product, sold at the right price, in the right place, using the most suitable promotion. To create the right marketing mix, businesses have to meet the following conditions:

1. The product has to have the right features - for example, it must look good and work well.

2. The price must be right. Consumer will need to buy in large numbers to produce a healthy profit.

3. The goods must be in the right place at the right time. Making sure that the goods arrive when and where they are wanted is an important operation.

The target group needs to be made aware of the existence and availability of the product through promotion. Successful promotion helps a firm to spread costs over a larger output. Getting into detail about the about each individual P's and how it is implemented by electronic giants.

Products or services

Must meet customer requirements whatever these might be. For example, an important aspect is function - products should do what they say they can do and what they are expected to do. For example, Audi cars are popular because of their high performance. Appearance is also important. For example, a company like Kellogg's is constantly developing new breakfast cereals - the product element is the new product itself, getting the price right involves examining customer perceptions and rival products as well as costs of manufacture, promotion involves engaging in a range of promotional activities e.g. competitions, product tasting etc, and place involves using the best possible channels of distribution such as leading supermarket chains. The product is the central point on which marketing energy must focus. Finding out how to make the product, setting up the production line, providing the finance and manufacturing the product are not the responsibility of the marketing function. However, it is concerned with what the product means to the customer. Marketing therefore plays a key role in determining such aspects as:

1. The appearance of the product - in line with the requirements of the market

2. The function of the product - products must address the needs of customers as identified through market research.

The product range and how it is used is a function of the marketing mix. The range may be broadened or a brand may be extended for tactical reasons, such as matching competition or catering for seasonal fluctuations. Alternatively, a product may be repositioned to make it more acceptable for a new group of consumers as part of a long-term plan. The most important of all is the product the firm produce should be of more user friendly and should be easily understood by the market about the product.

The price

Of all the aspects of the marketing mix, price is the one, which creates sales revenue - all the others are costs. The price of an item is clearly an important determinant of the value of sales made. In theory, price is really determined by the discovery of what customers perceive is the value of the item on sale. Researching consumers' opinions about pricing is important as it indicates how they value what they are looking for as well as what they want to pay. An organization’s pricing policy will vary according to time and circumstances. Crudely speaking, the value of water in the Lake District will be considerably different from the value of water in the desert. A proper pricing should be made by the company to compete the local competitors as well as to attain the major market share for that product.

Pricing strategies

Pricing strategy is an important part of the marketing mix. The price of a product should reflect its image and the need to give a consumer what they want. For example, upmarket products are associated with premium prices. There are a number of popular pricing techniques to choose from:

1. Cost-plus Pricing. A common way to make pricing decisions is to calculate how much it costs to do a particular job or activity, and then add on a given percentage as a return for the job or activity. This is sometimes known as mark-up.

For example, a business may decide that it will cost £100 to do a small repair job on a car, including parts, labour, use of premises, equipment, etc. The business works on the basis of making a return of 20% on all the work that it does. It therefore charges the customer £120.

2. Hour-based Pricing. Many small businesses are able to work out what their typical costs are for every hour of work they do, e.g. for gardening, sign writing, photography, etc. The business owner is then able to charge a standard rate per hour.

3. Penetration Pricing. When a firm brings out a new product into a new or existing market, it may feel that it needs to make a lot of sales very quickly in order to establish itself and to make it possible to produce larger quantities. It may therefore start off by offering the product at quite a low price. When market penetration has been achieved, prices can be raised.

4. Skimming. When you bring out a new product, you may be able to start off by charging quite a high price. Some customers may want to be the first to buy your product because of the prestige of being seen with it, or because they want to be associated with your product before anyone else.

An exclusive dress could be sold initially at an exclusive price to wealthier customers. The next season, the price could be lowered making it accessible to a less wealthy group of customers. Later on, the dress could be mass produced and made available at low prices to the mass market.

The Place

Although figures vary widely from product to product, roughly a fifth of the cost of a product goes on getting it to the customer. 'Place' is concerned with various methods of transporting and storing goods, and then making them available for the customer. Getting the right product to the right place at the right time involves the distribution system. The choice of distribution method will depend on a variety of circumstances.

It will be more convenient for some manufacturers to sell to wholesalers who then sell to retailers, while others will prefer to sell directly to retailers or customers. Big firms distribute their product through a distributor to the local shops and the company supply the product directly to big dealers in that region. The company also have a exclusive showroom in that region. This increase competition between the retailers. The product nature varies from place to place , for example if LG company is selling more Air conditioners in south India unlike North India due to the hummid climate ,as in north they prefer to sell more of heaters. Studying the local market is an important factor for a company’s development in that region. Learning more about consumer perceptions can improve their marketing strategies. The company always change their marketing strategies by bringing innovations in their existing products or launching a new model into the market. The company has also focus on after sales services in order to maintain their customers. The company always sees to it that the customers use the products of their company alone, the company provide warranty and guarantee for their products which is a part of their customer care (William J. Stanton, 2000.)

The Promotion

Promotion is the business of communicating with customers. It will provide information that will assist them in making a decision to purchase a product or service. The razzmatazz, pace and creativity of some promotional activities are almost alien to normal business activities.

The cost associated with promotion or advertising goods and services often represents a sizeable proportion of the overall cost of producing an item. However, successful promotion increases sales so that advertising and other costs are spread over a larger output. Though increased promotional activity is often a sign of a response to a problem such as competitive activity, it enables an organisation to develop and build up a succession of messages and can be extremely cost-effective. It takes many forms: TV, radio, internet, newspapers, yellow pages, and so on. You have to take notice about three important notions: frequency is the number of time a person is exposed to your message. It is said that a person must be exposed seven times to the message before to be aware of it. Reach*frequency gives the gross rating point. You have to evaluate it before any advertisement campaign. Message: Sometimes, it is called a creative. Anyway, the message must: get attraction, capture interest, create desire and finally require action that is to say close the sale. Product launching- Introducing new products or renewed old models for every year keeping in mind as they launch the latest technologies to the market. Advertising- the Company divides Kerala into different regions like north region, south region, west region and east region. As they give a theme for their advertisement on different regions according to the interest of their customers. Some of the themes are they use festive offers, sports entertainment or movie backups to enhance their advert. Thus they make their brand localized for the customers of different region. They do sponsorships for entertainment programs in channels, live events, charity works, and local functions. Schemes: The Company introduces schemes for the retailers as well as the wholesalers i.e. targets in order to concentrate on turn over. As they give targets like 1000 lcds or ctv,s or cameras, similar targets are given to the dealers to promote the brand. They give credits to these dealers for target achievement such as quantity discounts, world tour or a gift as a part of encouragement.

POP's- Marketing materials or advertising placed next to the merchandise it is promoting. These items are generally located at the checkout area or other location where the purchase decision is made. These POP's have the theme of advertising. Experience with the Brand. Brand Identity-keeping the identity of the brand as the company never does anything against the good will of the brand. After sales service- Having authorized service centers nationwide, so that the customer service can be done easily and the problems can be rectified at their door step. Sony was the company to introduce warranty and guarantee into the market. Positioning of the brand in the market- Brand imaging is an important part as the company does sponsorships and road shows to promote their brand. Price to quality\value. Sony keeps in track that as they were able to serve the consumers at its best with a reasonable price. Range of choice offered.- A different range of variety information technologies were introduced into the market to enhance their brand, like from lcds to walk mans.

Promotions\Offers

The company put upon kombi offers or a price reduction for limited periods in order to attract new customers to their brand and also gifts or free services are offered during festive offers. Packaging of the product- kombi offers like two or more of the same rand is given in a special price. Accessories- The sony company concentrate on accessories such as CDs, headset, batteries, cable wires, lenses, ac adapters, cases, microphones, printer cartridges, pen drives, CD Drives….etc. Other products of the same company. Influence of Brand Ambassador- the company updates its video clips every time when a new product is launched. As the company has Hrithik Roshan as its brand ambassador for sony Ericson mobile phones. We can notice that in their each advert they mainly focus on the quality of their product and what special features they got from other competitors and how special is their product is from rest (Rajeev Batra, John G. Myers & David A. Aaker, 2000).

Public Relations:

Public relations are more subtle and rely mainly on your own personality. For example, you can deliver public speeches on subjects such as economics, geo-economics, futurology to several organizations (civic groups, political groups, fraternal organizations, professional associations).These speeches will enable you to develop new relationships and their cost is nil. Sales promotion: It includes fair trades, coupons, and discounts are linked to the sales strategy.

Marketing Success:

The companies are successful in their business implementing different unique marketing strategies. The aggressive startups have skyrocketedin their respective industries.

For example:

1. Dell computers gateway together hold 53% of the direct response market, primarily through the internet.

2. , an electronic bargaining system, allows buyers to name their price for air fares, hotel rooms, and cars-even mortgages.

3. started out selling books at 10% discount. Now it sell at up to 50% off the cover price, challenging the traditional leaders, Such as Barnes &Noble. With competitors attempting to copy its every move, the company is diversifying fast with other on-line ventures, such as , Live bid. Com and .

4. Charles Schewab & Co. Pioneered electronic trading and outperformed the traditional leaders in grabbing market share with its on line brokerage services.

As when I went in detail with one of the marketing success the Moore Corporation (over 100 year old company) .The company had begun a precipitous fall in income and a sharp 16% decline in sales, which finally bottomed out in sales, Which final bottomed out in 1993 and market share also dropped a 13% from 30. The Moore corporation decline due to restructuring and the stream lining approaches to maintain and also had to improve the technological side as during this time the customers were about to step back from the company. %. The corporation introduced the Marketing strategy with the positioning, planning, product and promotion.

Positioning was a serious task performed by the company, an old line forms printer to a 21st century organisation able to design the flow of office information, both digitally and on paper. The new position moved Moore into database management, selling such items as computer software that turns out electronic forms. It made a manual growth of 25%.

The company did a product mix between paper forms and electronic media, and they introduced a joint venture. As they were successful in acquiring Jet forms Corp., a leading supplier of electronic forms software and developed a alliance with Electronic data systems Corp., helping Moore provide solutions to the accelerating flow of information. Re launch products that produce direct mail and labels achieved new lives. Computerization and the increasing use of bar coding to track products. Thus the sales jumped 30%, due to such innovations.

Advertising

Traditional marketing plans include above-line and below-line campaigns. Above-line promotions use radio, newspapers and the Internet to communicate deals and offers and create awareness. Below-line promotions are indirect ways of communicating with customers, and include direct mail, product placement, community events and public relations. The goal with both avenues is to create awareness, increase sales, offer new products or services. or announce a new store to remain competitive.

"Before implementing any promotion, develop a well-organized marketing plan," says Elisa Liehr, President of Liehr Marketing. Your Website should highlight your advantage over your competition, your paint matching system, free loaner car, or free pickup and delivery. Include before and after photos of repairs and offer a free estimate. "A detailed Website that showcases the benefits of your shop is essential to Internet marketing," explains Liehr. "Also, think about promoting your shop in online search engines and business pages so customers can find you easily." Attracting new business is a must, and promotions are an important way to stay relevant to your customers. Be creative and thoughtful and try to make a lasting and positive impression. For example, Advertise that you use Genuine Toyota Parts, have trained technicians and practice Toyota-recommended procedures to keep your customers talking about the quality and service your shop provides. Advertising and promotions is bringing a service to the attention of potential and current customers. Advertising and promotions are best carried out by implementing an advertising and promotions plan. The goals of the plan should depend very much on the overall goals and strategies of the organization, and the results of the marketing analysis, including the positioning statement.

The plan usually includes what target markets you want to reach, what features and benefits you want to convey to them, how you will convey it to them (this is often called your advertising campaign), who is responsible to carry the various activities in the plan and how much money is budgeted for this effort. Successful advertising depends very much on knowing the preferred methods and styles of communications of the target markets that you want to reach with your ads. A media plan and calendar can be very useful, which specifies what advertising methods are used and when.

For each service, carefully consider: What target markets are you trying to reach with your ads? What would you like them to think and perceive about your products (this should be in terms of benefits to them, not you)? How can you get them to think and perceive that? What communications media do they see or prefer the most? Consider TV, radio, newsletters, classifieds, displays/signs, posters, word of mouth, press releases, direct mail, special events, brochures, neighborhood newsletters, etc.

4.5 Single Brand Outlets vs Multi-Brand Outlets

Two basketball players X and Y wanted to buy Nike shoes, X went to a Nike showroom and Y went to a Shoppers Stop. X enjoyed the Nike store’s atmosphere where he was exposed to the exhaustive range and hence bought exactly what he was looking for. Y on the other hand, got spoilt with offerings from various brands but limited variety in each. He got to weigh his options and bought an Adidas which offered more value for money.   Although both identified with Nike’s brand personality, the fact that Y went to a multi brand store and was subsequently exposed to more options of different brands helped him choose Adidas. X enjoyed the extensive collection of Nike shoes which satisfied him and retained brand loyalty towards Nike.  A branded outlet carries exclusively the range of one brand and has the advantage of creating a store ambiance to convey its brand image. It gives the brand an option to choose the location, size and configuration of the store. Unique promotional sales offers may be implemented at any time. This provides the brand with greater control over its sales activities.

Multi-brand outlets put a company and its products right in the middle of the arena with its competitors. This enables new offerings to be showcased in a way in which consumers can compare and decide. The sheer volume of customers who are going to Multi-brand outlets (Shopper’s Stop achieved one million footfalls in 90 days) makes it essential that it cannot be ignored. Traditionally, Branded outlets were employed by companies but now there are ever increasing ways of reaching one’s customers with Multi-brand outlets being the most prominent alternative. Stores like   Lifestyle, Maria Luisa, Aeffe Spa, Croma etc. are gaining popularity with consumers. Companies like the Future Group have gone a step further and established Multi-brand outlets differentiated on the basis of concept e.g.: Food Bazaar, Fashion Bazaar etc.

Branded outlets and Multi brand stores are just not about the preference of the company. There is a lot more to it like availability of financial resources, the customers, the brand itself and of course the overall marketing strategy adopted by the company among others. The authors have identified a few parameters and compared the two formats on these parameters.

Financial Resources:

 Multi brand store format is always a relatively cheaper and a less risky option than the branded outlet. This is because the owner of the store is able to leverage his costs among many brands, thus reducing the overall risk on his investments. The break-even is achieved faster in multi brand stores due to more public coming to store.

Brand: 

The single branded outlets contribute dedicatedly to the perceived value; the exclusivity factor helps a premium brand command a separate image in the minds of the consumer. The brand image can be reinforced easily in a branded outlet with the outlet complimenting the brand personality, communicating brand identity to the customer. On the other hand, in a multi-brand store there are a lot of brands, the exclusivity of the brand is lost in such a scenario. However, this is an ideal condition for me-too products and value-for-money brands as consumer can compare the products before making a final decision. Multi brand store can come up with its own private labels, thus cannibalizing the brands.

Consumer: 

A consumer usually has a few brands in his/her consideration set when he goes to shopping. A multi-brand store gives the customer an opportunity to compare the brands in the consideration set on the parameters important for him/her. This helps in making better choices, as a customer may perceive all the brands in his consideration set to be at par in terms of the quality and performance, thus the decision making criteria is value. On the other hand, a single brand store may not help a consumer compare different brands. But at the same time, consumer will not defect to other brands. Brands which follow imagery approach to differentiate their product from others may benefit from single brand store. Also, single brand store helps a company to cross sell and up sell.

On the other hand, in a multi brand store, personal attention does not contribute to the brand, in fact it adds to the equity of the store. Also, it is very difficult to give the same experience due to large number of customers in the store at a given time.

Communication and Promotion: 

Communicating to customer and brand promotion in a single brand store is relatively cheap option for the brand. However, it is more effective in multi store brand. With multiple brands, timely communication and promotion helps a brand to differentiate itself, thus gaining more number of trails. However in a single brand store the return may be less than other format. Levi’s jeans came up with a cheap range of product line under a new brand for Wal-Mart, after it realized that it is losing on a big market. Therefore, the premium products are still catered to in single brand store, whereas cheap product is sold in the multi brand outlets. This approach helps a company to maintain its exclusive position while successfully stretching down the product line .In India, Tier II and Tier III cities may not still afford single brand stores catering high cost, high value products, in these cases multi branded stores will be success. However, in Tier I and Tier II cities, both formats are effective catering to two different segments of consumers.

Single branded stores are an excellent medium to romance the target customers. The flip side to this that the brands are not in a position to cover the entire target audience.

BRANDED outlets are target to customers who want to come close and personal with a single brand.  To promote the brand idea a single branded outlet can be a better option because with this, the idea can be communicated effectively. The ambience is designed carefully to flourish the brand image and give a holistic experience to the customer. The furniture, music, lighting, beverages and colours are chosen which helps to create the brand image. Since there is a considerable control over the ambience of the single branded outlet, the target group can be attracted effectively by providing an experience which is in line with the brand idea. For example, the Reebok showroom provides an ambience for sports lovers.

The objective of the single branded outlets is spotting the next trend, test-market combinations that a retailer might otherwise hide at the bottom of the rack, pick-up consumer feedback, and even making customers co-creators. These outlets are the ultimate in being customer-centric. Beyond being points of interaction, they enable the companies to pick ideas, track trends, test products and even reverse-engineer products based on feedback.

Luxury products generally have single branded outlets to position it as an aspirational product. But the recent trends has shown that the non luxury product brands are also coming with their own branded outlets like Levis, Sony, Nokia, Reebok etc.

MULTI BRAND outlets are targeted at customers who want more options to fulfil their needs and desires. The idea of bringing world’s top big brands under one roof can be accomplished using this strategy. Consumers walk into multi brand outlets with two-three brands already in their consideration set, and often walk out with the ones that deliver the best value-for-money.

This arrangement can help different chains to actually gauge buying patterns of consumers like any other retail channel, as the evaluation happens across brands, rather than studying buying patterns within a single brand. The increasing importance of the multi brand experience, which mirrors consumers' inclination for mix 'n' match attitude. The "total look" is completely out of fashion, and this new way encourages a multi brand environment.

The multi branded stores can also be cost effective. In short, it is better to have all the brands together in just one real estate investment rather than spending the money to open five separate stores in a city. The volume is more significant and works well in mid-sized cities where a mono brand store would be too invasive. Basically it makes much more sense to offer several brands together.

People who truly love fashion are curious and they want to discover and to have choice. Ten years ago, even mono brand stores were destinations for these people, but that was before we had so many of the stores, looking the same, all over. But now everyone is getting tired of it. These stores allow these people to break even much more quickly so that they can go into many more cities.

The multi-brand store concept will provide manufacturers, especially new entrants and those with limited market share, small in size and having capacity constraints, a more efficient route-to-market through faster nationwide retail presence, scale efficiencies and servicing support.

The very variety that these stores offer, and the fact that they carry multiple brands that sometimes overlap across chains, has made some customers complain that essentially these stores are all the same. Basically it's hard to find a store today where you can go in and buy multiple brands focused on certain lifestyles. The "store within a store" concept where brands control their display space still works well for certain brands.

Though there are advantages and disadvantages in both the strategies. The firm works on the strategy depending on the external environmental factors like political, social, cultural, economic and legal. Also there are different legal issues in countries like India for single and multi-branded retail outlets. All these factors in accordance with the brand positioning, target group and communication strategy determines the strategy chosen by the firm. Recently firms like Levis, LG have chosen the mix of both the strategies to increase their sales.

It is an everyday challenge for a retailer to satisfy the diversified demands of discerning customers. The further challenges are to reel in more customers, assure their loyalty, drive in more footfalls and the ensure the conversion rate. In order to gain more profits, retailers try to lure the customers with in-store sign ages, advertisements and customer-loyalty programs. No matter how unique these strategies may be, they do not guarantee a success rate.

Thus, to ensure a minimum return on investment, the retailers need to ascertain that the format, product assortment and the location of their store assures profits. Exclusive brand outlet (EBO) does ensure that the store is never out of stock, thanks to the predominant one-brand presence. However, veterans argue that it is the multi-brand outlets (MBOs), which drives more footfalls. In the MBOs, the retailers offer wider range of merchandise but EBOs are in command with better visual merchandising, more control over the brand, customer experience etc.

In the response to the open poll question on India Retailing — Exclusive brand stores may allow for greater depth and branding of merchandise, but multi-brand outlets and shop-in-shops are really the revenue drivers for a brand — 91.67 per cent of the respondents support the statement while the remaining 8.33 per cent of them negated it.

Devangshu Dutta, chief executive, Third Eyesight observes, “MBOs and shops-in-shop (SIS) can certainly help a brand build its footprint more rapidly and with lower capital than it could with only exclusive brand outlets. However, EBOs provide more control to the brand on the overall customer experience, merchandise assortment, pricing and margins."

Gopal krishnan Sankar, chief executive, Reliance Footprint says, “MBOs and shop-in-shops give the size and scalability opportunities. Customers also look for variety of products, choice of price points all in one place. This is best captured by MBOs, particularly the ones who are positioned as destination stores.”

Sunil Sanklecha, managing partner, Nuts 'n' Spices maintains, “From any business perspective, the model that leads us to bottom line is the right strategy which depends on different aspects, such as, is the individual brand strong enough to survive with exclusive store format? How do we want to position our brand? Are we looking at the long-term or short-term strategy and strength of the finance on the marketing part .”

He strongly believes that EBOs have better future than MBOs or SIS format. He says, “Everyone wants the larger pie. We see that the big stores want bigger margins and they start building their own brand. The manufacturers want their presence everywhere in the store but without sharing a larger pie.”

“A well-put together and well-located MBO is usually a destination for most of the categories that sit within it. Also by virtue of the range and brands that it encompasses, the customer engagement is strong. This ensures good footfalls and hence individual brands in MBO’s stand a far better chance of maximizing revenues vis-a-vis exclusive stores,” says Viney Singh, MD, Max Hypermarket India Pvt. Ltd.

T S Ashwin, managing director of Odyssey India Ltd, which has recently opened an SIS at Easy day Market comments, "This depends on what kind of brand it is. If the brand is niche and has a clear TG, then it needs more exclusive stores to showcase the width and depth of the range. Also it may really not have the market size for selling through multi-brand outlets. If the brand is not niche, then the exclusive stores help in building the brand and the multi-brand stores and shop-in-shops will help in increasing the visibility and reach of the brand as sales channels for the fast moving SKU’s in the brand."

Thomas Varghese, CEO, Aditya Birla Retail Limited says, “Exclusive brand stores have a place in the marketing strategy for a brand as they enhance visibility within the catchment, a consistent story to the consumer and a depth and breadth of merchandise. However, positioning a brand in multi-brand outlets enables the brand to enhance reach across a cross-section of customer’s thereby driving revenue.”

In the further analyses on the store formats in India, Dutta says, “In a market like India, brands need to follow a blended approach since in many locations MBOs or department stores suitable to the brand may not be available and the only option may be to open EBOs directly or through franchisees.”

“There is no ideal balance between EBOs, MBOs and shops-in-shop. The mix would differ from brand to brand and also change over the lifecycle of any single brand,” concludes Dutta.

References:-

▪ Finn, A and Louviere, J. (1996). Shopping Center Patronage Models: Fashioning a Consideration Set Segmentation Solution. Journal of Business Research, 21(3), 259 – 275, from ABI/INFORM Global database

▪ Plummer, J.T. (1974). The Concept and Application of Lifestyle Segmentation. Journal of Marketing, 38, 33-37. January 1974, from ABI/INFORM Global database

▪ Amatual Baseer (2007), “Emerging Trends in India”, Indian Journal of Marketing, Vol. XXXVII,No.11.

▪ Jagannathan, V.2001, ‘Vivek’s – a store more reputed than the brands it sells’, Business Line, February 5.

▪ Mariton, John. Smart Things to Know about Brands and Branding. Mumbai, Indian Books Distributors Limited, 2000.

▪ Anselmsson, J. (2006), Sources of customer satisfaction with shopping malls: A comparative study of different customer segments, The International Review of Retail,Distribution and Consumer Research, 16(1), 115-138

▪ Armstrong J S and Overton T S (1977), Estimating non-response bias in mail surveys, Journal of Marketing Research, 14 (3), 396-402

▪ Wilmshurst, J & Adrian Mackay 2002. The Fundamentals and Practice of Marketing. 4th edition. Oxford: Butterworth Heinemann.

-------:0:-------

Chapter V

PERCEPTION OF CONSUMERS TOWARDS

SHOPPING MALL

5.1 Introduction

Retailing is the final step in the distribution of merchandise - the last link in the Supply Chain - connecting the bulk producers of commodities to the final consumers. Retailing covers diverse products such as foot apparels, consumer goods, financial services and leisure. A retailer, typically, is someone who does not affect any significant change in the product execs breaking the bulk. He/ She are also the final stock point who makes products or services available to the consumer whenever require. Hence, the value proposition a retailer offers to a consumer is easy availabilities of the desired product in the desired sizes at the desired times. In the developed countries, the retail industry has developed into a full-fledged industry where more than three fourths of the total retail trade is done by the organized sector. Huge retail chains like Pantaloon, RPG, Wal-Mart, K-Mart, McDonalds, etc. have now replaced the individual small stores.

Large retail formats; with high quality ambiance and courteous and well-trained sales staff are regular features of these retailers. Broadly the organized retail sector can be divided into two segments, In-Store Retailers, who operate fixed point-of-sale locations, located and designed to attract a high volume of walk-in customers, and the non-store retailers, who reach out to the customers at their homes or offices. Every organized retailer in India is faced with myriad questions: differentiating with the other competitive formats; sustaining the differentiation with upcoming me-too formats; retention of footfall day after day; coping with local-neighborhood shops; and maintaining post tax profitability with all the additional expenses of providing “shopping experience” to consumers. A possible solution to all these are offered by store brands. A store brand (also called own label, dealer owned brand or private label) is defined as a product line, which is owned, controlled, merchandised and sold by a specific retailer in its own stores. The growing strength of retailers poses many challenges to manufactures of consumer goods. Conventionally viewed, store brands are thought to be weapons for fighting national brands, shifting power equilibrium in favor of retailers. Store brand offerings have steadily stolen share from popular brand-name products. Store brands represent one of the greatest challenges to manufacturers.

5.2 Perception and Attitude of Consumers towards Shopping Mall

The “objective” reality of the retail environment, i.e. the retail store and its attributes, influences the shopping behaviour of consumers through certain internal, psychological variables. The first of those variables to be discussed here is the “filter” through which consumers see objective reality, that is the perception of those attributes of which the retail store consists from the perspective of the consumers. Perception is the process by which an individual is exposed to, attends to, selects, organises, and interprets stimuli. Interpretation is the stage of this process in which people draw upon their experience, memory, and expectations in order to attach meaning to a stimulus (Mowen and Minor 2001; Schiffman and Kanuk 2004). In the field of retailing research literature, consumers’ perception of a retailer can be seen as being closely related to the construct “store image”. To explain this statement we discuss this construct shortly. Early definitions of store image had a broad understanding of the construct. Definitions included the total knowledge and all beliefs that a consumer holds. For instance, Martineau (1958, 47), in an early and typical definition, characterises it as “the way in which a store is defined in the shopper’s mind, partly by its functional qualities and partly by an aura of psychological attributes.” In his meta-study of store image investigations, Lindquist (1974/75) summarises that all authors see store image as complex and as built on a combination of components perceived by the consumer, which merge into an overall or total impression (see also Keaveney and Hunt 1992; Oxenfeldt 1974/75; Zimmer and Golden 1988). However, even the studies that emphasise the configurationally or composite character of store image operationalise it on an attribute-by-attribute-basis, following the assumption that consumers perceive stores on a number of different dimensions that– summed up–make up the store image (Keaveney and Hunt 1992).

In this way, the chosen statements in the scales are predominantly measuring the cognitive, rational and isolated evaluation of certain attributes (Morschett 2001). This perception also tends to be short term, i.e. changing the attribute (e.g., changing the store layout) quickly leads to a change in perception. Doyle and Fenwick (1974/75) state that what is called store image is very often the shoppers’ perception of store attributes such as variety of goods sold, relative prices and store layout. They continue to explain (p. 40) that, “it is reasonable to view the customer as rationally evaluating the store on a multi-attribute utility function”. This view is also confirmed by the fact that many researchers refer to the work of Fisk (1961/62). He combined 30 items into six store image dimensions. But while he emphasised that those are only the “cognitive dimensions” of store image, most succeeding studies use his dimensions without referring to this restriction. Zimmer and Golden (1988, 265) define: “The image of a store consists of the way it is perceived by consumers.” Therefore, we would conclude that past image research has basically been research of perception (including interpretation and assessment) of store attributes in a modern understanding of this construct (Hanna and Wozniak 2001; Schiffman and Kanuk 2004) and has often neglected the long-enduring factors, which are more holistic and emotional.

5.3 METHODOLOGY

THE MARKETING RESEARCH PROCESS

As per the definition Marketing research refers to the process of “...planning, collection and analysis of data relevant to the marketing decision making and the communication of the results of this analysis to management” (McDaniel & Gates, 2001: 6). Methods and techniques use by the researcher differs according to their different research aims.

In research study gathered data can either be primary or secondary data, and can either be quantitative or qualitative in nature. Secondary data are the data that are already exists and can be used in solving a research problem, while primary data is the data which is collected by the researcher first time, according to the research study (Tustin et al., 2005: 89).

The marketing research process provides a systematic and intended approach to the research study, and verifies that all aspects of the research are regular with one another (Tustin et al., 2005: 75). Further, the research process entails following steps:

STEP 1: Identify and formulate the research problem

STEP 2: Determine the research objectives

STEP 3: Research design

STEP 4: Conduct secondary research

STEP 5: Select primary research method

STEP 6: Determine the scope of the research

STEP 7: Selecting a sampling method

STEP 8: Gather the data

STEP 9: Data analysis and interpretation of results

STEP 10: Reporting the results

5.4: The marketing research process

Source: Adapted from Tustin, D. H., Ligthelm, A., Martins, J. H. & Van Wyk, H. De J. 2005. Marketing research in practice. South Africa: ABC Press. p. 76; Wellman, J. C. & Kruger, S. J. 2001. Research methodology. 2nd ed. South Africa: Oxford. p. 1 and Mc Daniel, C. & Gates, R. 2001. 3rd ed. Marketing research essentials. USA: South-Western. p. 22.

In the following sections, each step as indicated in figure 5.4 is discussed in detail and relates to the imminent study.

STEP 1: Identifying and formulating the research problem

The first step is to identify and formulate a research problem. A marketing research problem refers to circumstances that present difficulties for marketing decision-makers (Cant et al., 2010: 124). A marketing opportunity refers to any favorable or unexploited situation in the marketing environments that can be utilized proactively by decision makers to the advantage of the organization (Cant et al., 2010: 124).

The research study commences with identifying a specific marketing complexity or opportunity. If a marketing research problem and objective are accurate and well devised then, the probability of designing a research study that presents the required information resourcefully is increased to a great extent (McDaniel & Gates (2001: 26).

In this study, consumers’ perceptions regarding visual merchandising displays are being analyzed.. The purpose of this study is to investigate consumers’ perceptions towards visual merchandising displays in the Uttar Pradesh & Haryana’s apparel retail industry, and providing with the necessary knowledge regarding the visual merchandising displays used in store.

STEP 2: Determine the research objectives

To resolve a research problem, research objectives are formulated. Research objectives are the statements that the research project will try to achieve (Mc Daniel & Gates, 2001: 27). The research objectives should be in accordance with the definition of the research problem (Mc Daniel & Gates, 2001: 27). For the purpose of this study, both primary and secondary objectives were formed. The secondary objectives were made from the primary objective.

How can insight into the effect of visual merchandising displays on consumer perceptions inform knowledge in apparel retail? The primary research objective derived from the research problem is as follows:

Determine the effect of communication strategy on consumers perception?

The secondary objectives derived from the research problem are the following:

1. To determine the effect of visual merchandising displays on consumer behavior.

2. To determine impact of store layout on the amount of impulse purchase made by the consumer.

3. To determine how communication strategy varies according to the consumers profile.

STEP 3: Research design

Research design enables to draw schematic analysis in order to answer the research objectives. In quintessence, the researcher develops a structure or outline to answer an unambiguous research problem (Mc Daniel & Gates, 2001: 26).

The methodology used for this study provides in-depth explanation, the design, the sampling methods, and the data gathering techniques as well as the data analysis.

Exploratory research which is mostly apt in studies where the researcher is unaware of the issues he/she will face during the study. It enables the researchers in developing clear concepts (Cooper & Schindler, 2008: 145).

Descriptive research is used by and large to revert on questions such as who, when, where and how. It is also used to describe objects, people, groups, organizations/environments.(Zikmund & Babin, 2010: 51).

The research methods used in descriptive research are structured and quantitative in nature. Typical approaches to a descriptive research design include in-house personal interviews, surveys, telephone interviewing, e-mail surveys and web-based surveys (Tustin et al., 2005: 86).

Causal research pertains to studies where the researcher examines whether one variable causes or changes the value of another variable. In most of the cases, experiments are used to measure causality (Tustin et al., 2005: 87).

Henceforth, the purpose of this study to analyze the effect of communication strategy on consumer behavior for apparels in shopping malls was perceived and studied by the means of exploratory research. As soon as the type of research design was resolute, the researcher conducted the secondary research.

STEP 4: Conduct secondary research

In order to conduct secondary research, secondary data can be utilized as historical findings earlier collected for some other research opportunity/problem (Zikmund & Babin, 2010: 163).Further, If the analysis of secondary data and the analysis of existing literature yields no solution to the marketing problem, the marketing research process, proceeds to the selection of a primary research method.

For the purposes of this study, secondary data were analyzed to develop an understanding of the Uttar Pradesh’s & Haryana retail environment, visual merchandising displays, as well as consumer behavior. Furthermore, secondary data were analyzed to investigate consumer perceptions toward visual merchandising displays used in apparel retail outlets at various shopping malls. For the purposes of this study, secondary data and existing literature further defined the marketing problem rather than providing a solution.

As facts recorded by secondary data were inadequate to answer the research problem, it was mandatory to gather primary data.

Hence, the next step in the marketing research process is selecting a primary research method.

STEP 5: Select primary research method

Primary research method entails the data which is collected for the first time, and is collected in particular to address specific research objective. (Tustin et al., 2005: 89).

Debating about which method proves the research design effective and tackles with all the research objectives remains unanswered. Each research problems are varied which are faced by all the researchers.

Data gathered for a research design can either be qualitative and quantitative. Each research design has its own advantages and disadvantages.

In support for the research design chosen i.e. Qualitative research; for this particular research below are the mentioned arguments (Comparison with quantitative research)

Quantitative marketing research

Quantitative research is only utilized where mathematical speculations and analysis is required for descriptive and casual research (McDaniel & Gates, 2001: 109). Quantitative marketing research relates to objectives through practical assessments that addresses research objectives through practical assessments that engage in statistical evaluation and analysis approaches (Zikmund & Babin, 2010: 133-144). Qualitative research requires minimal interpretation and is more suitable to be independent (Zikmund & Babin, 2010: 134-135).

Qualitative marketing research

Qualitative research data is not subjected to mathematical speculations/quantifications and is frequently utilized in exploratory research (Mc Daniel & Gates, 2001: 109).

Qualitative technique is utilized to analyze and interpret consumer attitudes, feelings and motivations/drives. Henceforth, it is an interpretative technique that describes, decodes, and translates information (Cooper & Schindler, 2008: 214).

It does not rely on self-response questionnaires as in qualitative research. What makes qualitative research such a strong method lies in its ability to provide comprehensive textual explanations of how individuals experience a given research subject. It helps in obtaining the ‘human-side’ data about their perceptions.

For this research study, qualitative research method was proven to be more suitable because detailing about consumers perceptions about effective communication strategy of retail outlets which inculcates visual merchandising displays and further, the influence they carry on consumer behavior was needed.

The disadvantage of qualitative research I the fact that it represents only a small fraction of interviewed participants who cannot be the representatives of the whole population (Zikmund & Babin, 2010: 131-133).

STEP 6: Determine the scope of the research

Determining the scope of the research study is the sixth stage of the marketing research process. Depending on the problem or opportunity under investigation, research is conducted using either a census or a sample of the research population. The research population is defined as the total group of people or establishments whose opinions, behaviour, preferences or attitudes will yield information for the answering of the specific research question (Tustin et al., 2005: 97).

When conducting a census, data are obtained from every member of the research population (Tustin et al., 2005: 337). A sample, on the other hand, refers to a representative subset of the population of interest (Wiid & Diggines 2009: 193). Because census research is costly, researchers will most often draw a sample from the population in which they are interested (Zikmund & Babin, 2010: 412). - 152 -

Researchers have two options when selecting respondents to form part of the sample, namely probability sampling and non-probability sampling. In the former, all the subsets of the population have a known non-zero chance of being selected to be part of the sample, whereas in the latter, certain subsets of the population have little or no chance of being selected for the sample (Tustin et al., 2005: 344). Probability sampling as well as non-probability sampling is discussed in detail below, together with a discussion on why non-probability sampling was used for this research study.

Probability sampling

As discussed above, probability sampling supplies every element in the population with a known, non-zero probability of being selected for the sample (Tustin et al., 2005: 344). The sampling methods that can be utilized in probability sampling include the following: simple random sampling, systematic sampling, stratified sampling, proportional sampling, cluster sampling and multistage area sampling.

Simple random sampling is a sampling process through which each element in the population has a similar chance of being included in the sample is guaranteed.

Non-probability sampling : Non-probability sampling relies on the discretion of the researcher (Tustin et al., 2005: 344). Non-probability sampling is a sampling method where the samples are grouped in a process that does not provide all the individuals in the population an equal chance of being selected (Tustin et al., 2005: 344). Subjects in a non-probability sample are usually selected on the basis of their accessibility or by the purposive personal judgment of the researcher.

The major disadvantages of non-probability sampling are the possible sources of bias. The advantages of non-probability sampling include that:

• It is cost effective

• It is useful when the population is widely scattered

• It is often used in exploratory studies

The sampling methods that can be utilised in non-probability sampling include the following: convenience sampling, judgemental sampling, purposive sampling, quota sampling and snowball sampling. These are all discussed briefly below (Tustin et al., 2005: 97):

• Convenience sampling is a method where the members of the sample are chosen based on them being readily available.

• Judgemental sampling is a method where the members are chosen on the basis of the researcher’s judgement on what constitutes a representative sample of the population.

• Purposive sampling is a sampling method where the members are chosen with a specific purpose in mind. They are therefore intentionally chosen to be non-representative.

• Quota sampling is a sampling method where the members are chosen on the basis of satisfying some form of pre-specified criteria that applies to the population.

• Snowball sampling is a sampling method where the members are originally chosen judgementally and are then asked to identify others with the desired characteristics to be part of the sample.

For this particular research study, non-probability: purposive sampling was applied. The respondents were chosen on the basis of their accessibility and by the purposive personal judgment of the researcher. Therefore non-probability sampling was utilized because not every element in the population had a known probability of being selected for the sample (due to purposive sampling). The fact that the sample population for this given study was widely spread and because non-probability sampling is cost effective, it contributed to the decision to make use of non-probability sampling.

The leading disadvantages of non-probability sampling are the possible sources of bias. However, this does not mean that non-probability sampling methods cannot provide good results; the problem is that the researcher is unable to provide any suggestion of the reliability of the results that are attained from the research (Wiid & Diggines, 2009: 199). However, given the exploratory nature of the study it was not the goal for the findings to be representative to the whole population, but rather to be able to transfer the findings to another study. Consequently the sample was nevertheless deemed adequate.

STEP 7: Selecting a sampling method

Selecting a sampling method is the seventh step of the marketing research process). Even though sampling is part of the scope of the research, it can still be seen as a separate step in the marketing research process.

A sample can be seen as a subset (or some part) of a population (Tustin et al., 2005: 96). A population is any complete group of entities that share some a common set of characteristics (Zikmund & Babin, 2010: 412). In order to select a sample, a researcher has to complete the following five stages: define the population, specify the sample frame, select the sampling method, determine the sample size and draw the sample (Zikmund & Babin, 2010: 415).

Define the population

The population is the group from which the researcher will draw his/her sample. The population should include all the people whose opinions, behaviour, preferences and attitudes will be of value to answer the research question.

When using qualitative research, it is not necessary to collect data from everyone in the area of interest in order to retrieve convincing findings. In qualitative research, only a sample of a population is selected for any given study (Cooper & Schindler, 2008: 215). For this research study, the population was defined as any person who buys clothing or clothing related items at retail stores in Lucknow & Gurgaon. Having defined the target population, the researcher now specifies the sample frame. - 159 -

Specify the sample frame

A sample frame is necessary if a probability sample is drawn. As explained previously, with probability sampling, every element in the population has a known, non-zero probability of being selected for the sample (Tustin et al., 2005: 344). In non-probability sampling, the sample relies on the discretion of the researcher (Tustin et al., 2005: 344).

Because this research study used non-probability sampling, it was not necessary to draw a sample frame. Refer back to step 6 of the marketing research process for a detailed explanation. After the sample frame has been specified, the next stage is to select a sampling method.

Select the sampling method

In the third stage of selecting a sample, the researcher specifies whether he/she will use probability or non-probability sampling, as well as how the sample units will be selected (Tustin et al., 2005: 97). As discussed in step 6 of the marketing research process, non-probability sampling was best suited for this research study.

The sampling method chosen for this particular research study was non-probability: purposive sampling. In purposive sampling, the researcher samples with a purpose in mind. This is usually the case where the study requires one or more specific predefined groups. Purposive sampling can be very useful for situations where one has to reach a targeted sample quickly and where sampling for proportionality or representativeness is not the main concern.

With a purposive sample, the researcher is likely to retrieve the opinions of the target population. However, a disadvantage is the fact that the researcher might overweight subgroups in the population that are more willingly available (Cooper & Schindler, 2008: 455).

However, due to the fact that the research study had a qualitative paradigm (it was not the goal to be representative) and was exploratory in nature (not proposed to present definite evidence and where further research is required); the sampling method was nonetheless considered sufficient.

The inclusion criteria for the purposive sampling for this research study were as follows:

▪ People who buy clothing at apparel retail outlets at shopping malls

▪ People that are residing in Uttar Pradesh (Lucknow,Gurgaon )

▪ People that are willing and have the time to participate in the study

Further, after choosing the sampling method the researched determines the sample size in order to collect the data.

Stage 4: Determine the sample size

In this stage the researcher specifies the number of sample elements to be included in the final sample.

Eight members were chosen in order to prevent sample sizes being too big or too small. If the focus group was too small, one or two members could intimidate the other members, and if the groups were too big, it could have influenced the participation of the members of the group. The prearranged size of the groups ensured that every participant was proficient to voice his/her opinions. Two Focus groups were constituted having 8 members each.

However, after analyzing both the group opinions it was observed that the participant’s responses had common themes.

Stage 5: Draw the sample

For the rationale of this study, each participant was sent an email inviting them for the Focus group sessions. The email incorporated the session time and the list of questions the group was to discuss. Once 16 participants (eight participants per focus group) agreed on the date and time, and then the sample was finalized.

Even though diversity and representativeness of the population is not a requirement of purposive sampling, diversity was created in terms of age (ages ranged from the age of 17 to the age of 45) and gender to encourage conversation in the focus groups. This permitted for a more envoy sample of the population and diverse views regarding the subject at hand.

STEP 6: Gather the data

The process of collecting data is usually referred to as field work. When using qualitative research, there are four common techniques used to collect data, namely: focus groups, depth interviews, conversations and free association and sentence completion methods. These techniques are all discussed below, together with a discussion that explains why focus groups were utilized for this particular research study.

Focus groups

Focus group can be defined as free- flowing interviews that comprise s small groups of participants, by and large between six and ten people. The participants who take part in focus groups discussions gather at a specific time at pre-determined location and discuss the pertaining/relevant subject. Focus group is generally led by a moderator or a group of moderatos who follow a flexible layout. Moderators along with many tasks during focus group discussions also initiate/promote conversations amongst participants.

Depth interviews

Depth Interview can be defined as one-on-one interviews between the researcher and a respondent. During this interview session the researcher asks questions and follows up with the respondent’s answers in order to retrieve more information about the pertaining subject of discussion. The moderator during the session should ensure and should be highly skilled in order to encourage the respondents to talk freely.

Focus groups

This research study made use of self-reporting as a data source by means of focus groups. A focus group is an unstructured, free flowing interview with a small group of people, usually between six and ten participants. This use of data collection aligns well with an exploratory approach as focus groups enable the researcher to illuminate unclear situations. This specific research topic needed to be discussed in detail and different types of views and perceptions needed to be explored. This would not have been possible with the use of a structured questionnaire. A group of participants were asked about their perceptions, opinions, and views towards visual merchandising displays, and whether these displays had an influence on their buying behaviour.

The focus groups were based on the use of visual stimulus material. Photographs were taken of an apparel retail store in Lucknow and Gurgaon; further they were presented to the participants in the focus groups. The participants were then asked questions derived from the research objectives. The following questions were used to arrange the focus group –

1. What perception you have about visual merchandising displays?

2. When you enter into a apparel store, what do you observe about the visual merchandising displays

3. Does Store layout have an effect on your buying decision?

It has helped the participants to share their views, freely regarding visual merchandising. It was a speedy way for collecting in depth data .Additional insight was created as it allowed participants to use each other ideas, views .it helped the researcher in having different perceptive about the topic.

It allowed flexibility for a more detailed explanation about the topics that needed exploration. Several topics could be talked about and many insights were achieved, especially with regard to the differences in consumer behaviour in different situations.

The disadvantages of using focus groups are summarized as mentioned. Further the counter active measures have also been summarized which oppose the disadvantages for the purpose of the Study.

Disadvantages of focus Group

1. Focused groups output can be manipulated or are likely to become partial/ biased due to the influence of one or two people.

Corrective Measure: A proper skilled moderator who observed all the respondents can ensure that the participants were comfortable enough in putting up their views.

2. Focus groups should ensure purpose and efficient moderators.

Corrective Measure: Independent Moderator who cannot be influenced by other people views can manage and resolve.

3. It may not be easy to retrieve a representative sample of the population.

Corrective Measure: Given the exploratory nature of the study, the sample was nevertheless deemed adequate

STEP 9: Data analysis and interpretation of results

Once all the data had been collected, the data analysis process started. The objective of data analysis is to understand the data and to draw conclusions from the data collected (Tustin et al., 2005: 102).

Thematic analysis was used to analyse the data. Thematic analysis involves penetrating through data to identify any repeated patterns (Tesch, 1990: 113) the process that was followed in order to analyse the data gathered from the focus group interviews

Thematic Analysis

• Action

Formulate a sense of the storyline by reading through the transcriptions.

• Description

Formulate the necessary background information. The researcher wrote down ideas as they came to mind.

• Action

The researcher selected one interesting and short document and asked herself what the interview was all about.

• Description

Focusing on the underlying meaning of the text the researcher wrote down the thoughts in the margin. Repetition of this process was followed thorough out all the gathered data. . As there was transition from one topic to another, the researcher distinguished content from topic. Identified topics were then written in the margin of the document.

• Action

The researcher paid attention to the underlying meaning rather than the content. As topics emerged, they were written down in the margin, clustering similar topics together

• Description

A connection was made between similar topics by using highlighters. Topics with the same colour were clustered together. All topics were arranged into columns on one sheet of paper, one column per each data document. The best fitting name that captured the substance was chosen for the clustered topics. These topics were then further arranged into major topic, unique topics and leftovers.

• Action

Abbreviated topics were written as codes. The clustered major topics as well as the unique topics were abbreviated as codes.

• Description

These codes were written next to the appropriate segment of the text. This process indicated how well the topic descriptions corresponded with what was found in the data. It also led to the discovery of new topics that were not previously identified.

• Action

At this stage the researcher was ready for refinement of the organized data.

• Description

The most descriptive wording for the topics was found and the topics were turned into categories and sub-categories.

• Action

A final decision was then made on the abbreviated category name.

• Description

Each code was alphabetized. Subsequently a coding session was completed.

• Action

The data material belonging to each category was assembled in one place and a preliminary analysis was performed.

• Description

Confusions and contradictions, as well as the missing information with regard to the research topic were then identified. This led to some of the data being discarded, as it was not relevant.

Source: Adapted from Cresswell, J.W. 1994. Research Design: Qualitative and quantitative approaches. London: Sage publication. p. 154-155; Merriam, S. B. 2002. Introduction to qualitative research. San Francisco: Jossey-Bass. p. 3-17 and Tesch, R. 1990. Qualitative research analysis tapes and software tools. New York: Wordsworth. p. 113.

STEP 10: Reporting the results

The final step in the marketing research process is the preparation of the research results and conveying the research findings and recommendations to the client or decision-maker.

5.5 THE RESEARCH QUESTION

The sole purpose of the research study was to determine the effect of communication strategy on consumer’s behavior for apparels in shopping malls with the focus on consumer’s perceptions towards visual merchandising displays in Indian apparel retail industry.

The primary research question in the course of the preliminary literature was consequently as follows: To Determine the Impact of Communication Strategy on Consumer Behaviour for apparels in Shopping Malls? (A Study of Lucknow and GurgaonCity)

The primary and secondary research objectives are reviewed in the following section.

THE RESEARCH OBJECTIVES

Primary objective

To determine the effect of communication strategy on consumers perception?

Secondary objective

The secondary objectives derived from the research problem are the following:

1. To determine the effect of visual merchandising displays on consumer behavior.

2. To determine impact of store layout on the amount of impulse purchase made by the consumer.

3. To determine how communication strategy varies according to the consumers profile.

Consumer centered approach towards visual merchandising display was acquired; further this enabled to consider this area of retail sector in a valuable manner.

5.5.1PRE-TESTING

In order to know the effectiveness of a questionnaire, it was important to pre-test it. Pretesting helps the researcher in determining the strengths and weaknesses of the questions concerning question format, wording and ordert. Pre-testing ends when the researcher is satisfied that the target audience understands the questions correctly (Tustin et al., 2005: 413).

For this research study, pre-testing was done by using the naive sketches. Five participants were asked to complete the naive sketch where after the researcher analysed the answers. During the pre-testing of the naïve sketches it was apparent that the participants misinterpreted the concept of “visual merchandising display”. Many participants were of the opinion that mannequins and actual clothing on the mannequins was the visual merchandising displays. This might have created an impression that visual merchandising displays are not noticeable or important to a store as participants rarely noticed or referred to them. It was therefore decided to explain the concept of visual merchandising displays to the participants more effectively by means of photos and verbal discussions.

5.5.2 THE DYNAMICS OF THE FOCUS GROUP

It was clear from the naïve sketches that many of the participants did not fully understand what visual merchandising displays were and therefore misunderstood the context of the questions. Many participants thought that mannequins and actual clothing on the mannequins was the visual merchandising displays. This might have created an impression that visual merchandising displays are not noticeable or important to a store as participants rarely noticed or referred to them. They gave more importance to the mannequins and how they portrayed the store’s brand, merchandise and the quality of that merchandise.

There were some disagreements between participants about the main concepts. The focus groups were only continued when all the participants agreed that they had a clear understanding of the concepts. Interaction between the participants was free flowing in both the focus groups.

5.6 FINDINGS

The central theme

Participants perceptions of the impact of visual merchandising displays on their buying behaviour varied as evidenced by their attention or lack of interest to visual merchandising displays when they first walked into a store. A prominent visual stimulant and important aspect of visual merchandising that was identified by participants was colour.

Other important aspects of visual merchandising that were identified were positioning of displays and the use of space, lighting, and the neatness of displays. Emotional responses to the visual merchandising displays ranged from feeling overwhelmed, as well as experiencing extreme irritation or feelings of calmness and relaxation.

Perceptions of visual merchandising displays that were identified were subliminal in creating an interest and desire to further peruse the merchandise and aesthetically to beautify the store as well as to add to the character of the store. Participants expressed that the impact that visual merchandising displays had on their buying decision depended on personal preferences.

A discussion on the four main themes and their underlying categories follows.

5.6 Themes and categories

Theme 1: During qualitative analysis participants perceived that visual merchandising is an essential tool which creates a “purchasing” context that adda to the retail experience.

This particular theme relates with the primary objective of this research study: To determine the effect of communication strategies on consumer behavior for apparels in retails Malls. The participants expressed that the visual merchandising portrays the most effective communication strategy which enhances the buying experience in unconditional ways through the beautification of the store and by creating a calm and relaxed environment. The participants also stated that the displays contributed to the image of a store through the quality of the product sold in store and the character of the store.

The participants also stated that visual merchandising displays are viewed as a promotional tool, for example: to convey branding, the product, product information and product quality. The participants said that in order for the displays to attract attention, the displays should be well designed. If not, the displays only create irritation and it could be overbearing.

Four categories emerged from the first theme and are explained below. Quotes were taken from the focus groups to illustrate the participants views on the various categories of this theme/objective.

1.1 Visual Merchandising enhances the end consumers buying experience in an unconditional manner:

1.1.1 It beautifies the store (including a colourful environment and decorative in nature)

The focus groups explained that although they participants did not always consciously notice the visual merchandising displays, the displays definitely aided

In contributing to a pleasant experience as the store was more beautiful with decorated displays.

1. It creates a relaxed and customer pro environment.

The participants felt that a store with pleasing displays that were calming and well-designed enhanced the peaceful, relaxed atmosphere of a store. Even if the store did not offer the required product, participants still viewed the store as a haven of tranquillity that they could enjoy.

Visual merchandising displays contribute to the image of the store through:

The quality of the product sold

The quality of the product is inferred by the quality of the display as well as the quality of the materials used in the display.

The character of the shop

The character of the shop is enhanced by visual merchandising displays. Visual Merchandising displays provide a perfect setting and give the shop its true picture.

Visual Merchandising display is perceived as a promotional tool for the consumers.

Many participants were of the opinion that the visual merchandising displays were part of the store’s product promotion strategy. Posters, mannequins, and clothes that are displayed in light boxes seem to affect the consumer, as the focus group explained that the participants thought that the reason these products were being promoted by these various displays was for the consumer to be enticed to buy them.

Visual merchandising displays should be well designed to attract positive attention (if not, it creates “irritation” and could be “overbearing”).

The focus groups explained that in order to have a positive experience in a store, the visual merchandising displays should be well designed but should limit the amount of décor that is used in the display. Furthermore, the focus groups explained that when merchandise is moved or scattered regularly because the visual displays change, it causes irritation and negative feelings towards the store’s ability to satisfy the consumers’ needs. Spatial orientation and perfectly designed visual merchandising displays are definitely themes that affect the consumers’ perception of the store.

5.7 SUMMARY

The participants expressed that the visual merchandising displays enhanced their buying experience in subliminal ways through the beautifying of the store and by creating a relaxed environment to shop in. They also stated that the displays contributed to the image of a store through the quality of the product sold in store and the character of the store. Participants explained that visual merchandising displays are mostly noticed in a subliminal way, and that it is influenced by personal preferences, contextual aspects such as themes, type of store and brand or branding, gender to some degree, and sensory and cognitive aspects.

Participants communicated that sensory and physical attributes are important to them. Attributes such as brightness, the size and height of displays, the suitability of the displays and the fact that the displays should be realistic and logical were emphasized. They also mentioned that the displays should complement the space of the store. Another aspect that the participants stressed was that visual merchandising displays should give information about the merchandise on display.

The participants explained that their buying behaviour is influenced to a limited extent. They continued to say that the visual merchandising displays guide them in the direction of the products they are seeking and that it guides their product choice. The participants agreed that their buying behaviour is influenced on a subliminal level based on the quality of the visual merchandising displays and their personal preferences, including gender.

5.8 CONCLUSIONS OF THE STUDY ON VISUAL MERCHANDISING:

In order to determine what effect visual merchandising displays has on consumer perceptions), the participant’s perceptions of visual merchandising displays were subliminal (intense enough to influence the mental processes or behaviour of the consumer) in creating an interest and desire to further peruse the merchandise and aesthetically to beautify the store.

The perceptions of the participants indicated that the visual merchandising displays contributed to the image of the store and also added to the character of the store. Spatial orientation and perfectly designed visual merchandising displays are definitely themes that affect the consumers’ perception of an apparel retail store.

Furthermore, consumers perceived visual merchandising displays as a tool to establish a „purchasing’ environment and as a vehicle to portray the brand of the store.

In order, to determine to what extent consumers’ notice the visual merchandising displays presented in stores, concluded that what is noticed by the consumers in terms of the visual merchandising displays are mostly below the threshold of consciousness, and it is influenced by personal preferences, contextual aspects such as themes, type of store and brand or branding, gender to some extent, quality of the visual merchandising display and sensory and cognitive aspects.

The research study suggests that women are more attentive to the complete retail experience which includes visual merchandising displays. In comparison, men search for signs in a store about where to find what they are looking for.

The focus groups also explained that they notice ill-fitting themes in apparel retail stores, in terms of whether the items displayed are actually available in store, or whether it sends the correct message with the complement of the display.

In order, to determine what aspects of visual merchandising displays are important to consumers, identified that a prominent visual stimulant and important aspect of visual merchandising displays was colour, which creates visual attraction and stimulation.

Other important aspects of visual merchandising that were identified were the positioning of displays and the use of space, lighting as well as the neatness of displays. Another important aspect that was noted was that visual merchandising displays should provide information about the products sold in store.

It was also apparent that the visual merchandising displays should cater for individual needs. In addition, participants explained that by placing too many diverse kinds of products in the same visual merchandising display area, a confusing display could be the result.

In order to determine the effect of visual merchandising displays on consumer behaviour, the participants’ perceptions of the impact of visual merchandising displays on their buying behaviour varied as evidenced by their attention or lack of interest to visual merchandising displays when they first walk into a store. Consumers’ behaviour is influenced by a limited extent as visual merchandising displays guides consumers in the direction of the products as well as in product choice. Consumers’ behaviour will also be influenced by their personal preferences and the quality of the displays.

It was noted in the focus groups that the consumers’ attention is drawn to certain aspects (such as colour and breathing space in the store) of visual merchandising displays that creates a space where their shopping experience can be positive. The participants tended to be attracted to visual merchandising displays that are well designed and logical. This illustrates that visual merchandising displays influence buying behaviour.

The theory, as explained earlier argues that the consumers’ perceptions of a store’s environment depends on the consumers’ shopping goals. The focus groups seemed to submit to the view that the after-purchase satisfaction is what often draws consumers back to a particular retail store, regardless of the visual merchandising displays. Apparel retailers should realise that if a store fulfilled a consumer’s shopping goals before, consumers are also more likely to return. Similarly, no amount of great quality visual merchandising displays will draw consumers in if they have already decided that a particular store will not aid in fulfilling their shopping goals.

Furthermore, emotional responses to the visual merchandising displays ranged from feeling overwhelmed, to experiencing extreme irritation or feelings of calmness and relaxation. Participants expressed that the effect that visual merchandising displays had on their buying decisions varied and depended mostly on their personal preferences. The participants also indicated that the visual merchandising displays influenced their buyer behaviour on a subliminal level, meaning that they could not produce a conscious awareness of the displays, but that these displays do evoke some form of response below the threshold of conscious perception.

5.9 RECOMMENDATIONS

Based on the findings drawn and the conclusions derived from the findings above, various recommendations can be offered to apparel retailers located in Lucknow & Gurgaon. These recommendations are:

The participants mentioned that less is more; simplicity and clarity are better than ambiguity. Therefore apparel retailers should avoid surface clutter and should not overcrowd the space that is utilised for a display. Larger items have more impact than smaller items, however if small items are used they will require special treatment or they disappear in the overall display, or the display becomes cluttered.

Objects (props) have more impact when they are displayed together. As a result, if objects are massed together they will create the impression of a collection and will not be viewed as cluttered if they were spread out individually.

Scale is also very important. If apparel retailers want to showcase a small item, they should keep it in a smaller context. Apparel retailers could set it on a small shelf, a box or a decorative tray to create a focal point.

The focus groups explained that in order to have a positive experience in an apparel retail store, the visual merchandising displays should be well designed but should limit the amount of décor and or props that are used in the display.

Visual merchandising displays should focus on one product or a small family of products to avoid confusion. Products that are in high demand should be given priority in visual merchandising displays. Popular products will draw consumer attention and help to sell other items in and near the display. However, for the display to be effective, the high-revenue products should be the display’s main focal point.

Participants agreed that they all notice a particular theme that is conveyed through a visual merchandising display. For this reason apparel retailers should be attentive to social and environmental phenomena such as sporting events or seasonal changes and create visual merchandising displays according to these event or season changes.

The visual merchandising displays used in apparel retail stores should communicate the correct messages to consumers, for example the personality of the brand, the season, the current trends, etc.

Apparel retailers should keep the distinct differences between male and female consumers in mind when designing their visual merchandising displays, especially in men’s retailer stores or in retail stores that have menswear departments.

Colour displays that are realistic for the consumer and not simply part of a trendy display draws more attention than just using colour for the sake of colour.

Physical attributes such as brightness; the size and height of displays, the suitability of the displays and the fact that the displays should be realistic and logical are important. The displays should complement the space of the store and the visual merchandising displays should provide information about the merchandise on display.

A far-fetched, richly imaginary display, while beautiful for some consumers, would not attract others if it was out of context with the product offering. Visual merchandising displays should always strive to educate the consumer about the products and merchandise on offer.

Visual merchandising displays should provide context and cater for individual needs, by staying true to the brand image and by changing the displays regularly--once every 3 months, or together with changing of the seasons. The visual merchandising displays need to be altered regularly in order to keep the atmosphere of the store fresh, vibrant and competitive. This denotes that new stock has arrived, or that new merchandise or products are on offer, creating more opportunities for the consumer to make a purchase decision.

It is suggested that apparel retailers should keep the visual merchandising displays secondary to the actual products that are sold in store. Busy and extensive displays are not well received by the consumers; therefore enough space to move around freely in the store is vital. The visual merchandising displays are better received if they are logical and realistic to the consumer.

The visual merchandising displays can be used to communicate a store’s brand identity. A strong brand identity creates loyalty and ensures that people feel comfortable with the quality and product offering that can be expected.

The participants explained that visual merchandising displays guide the consumers’ choices regarding products. Should a consumer be searching for a pair of boots, and a specific pair is highlighted in a display, the consumer may be more inclined to select that pair of boots than another pair that were not part of the display. Therefore apparel retailers should make use of their latest products in their displays.

Apparel retailers should keep their visual merchandising displays neat and tidy at all times, and ensure that the displays does not impact on the breathing space of the store. Therefore there should be a systematic structure and purpose for the display.

Apparel retailers should use aspects such as brightness, size and height in their displays as consumers prefer physical displays to images and pictures. The displays should be kept realistic and logical and the props and fixtures used should complement the space of the store.

Apparel retailers should use visual merchandising displays to enhance a shopper’s experience by beautifying the store, to create a relaxed environment and to create interest and desire to enter the store. Visual merchandising could also be used as a tool to display the store’s brand and to communicate information of the products as well as the quality of the products.

Well designed visual merchandising displays will create the correct atmosphere and context for consumers to buy while bad visual merchandising displays will work against the decision to purchase the product in question. Consequently an attractive display will have an impact on a consumer’s buying decision.

Visual merchandising displays should be used to guide consumers in the direction of the products and to guide product choice.

5.10 THE STUDY’S CONTRIBUTION TO LUCKNOW & GURGAON RETAIL INDUSTRY

In order for apparel retail stores to survive and to be successful, it is important for them to understand how consumers behave in a buying situation and to understand what their perceptions are regarding the visual merchandising displays.

The results of the study could benefit Mall apparel retailers in Lucknow & Gurgaon because a detailed exploration in terms of consumer perceptions towards visual merchandising displays and a discussion regarding the effect these displays have on consumer behaviour was completed. The apparel retailers in Lucknow & Gurgaoon can therefore apply these findings to their retail environments and create visual merchandising displays that will be of value to consumers, and that will encourage approach behaviour and ultimately lead to a consumer purchasing a product.

By applying the findings of the research, apparel retailers can now decrease the consumer’s avoidance behaviour towards their store and the merchandise the store sells, thereby positively influencing the consumer’s decision making to ultimately make a purchase.

The limitations of this research study are discussed next.

5.11 LIMITATIONS

The opinions of many individuals outside the chosen participants were not represented. Future research could therefore aim to identify a more diverse and representative sample of Residents of Lucknow & Gurgaon.

Similarly, the sample was primarily taken from those living in Lucknow & Gurgaon, and thus it was not geographically representative. Due to the qualitative nature of this study, it was not the goal to be representative; the goal was for other researchers to be able to transfer the findings. Given the exploratory nature of the study, the sample was nevertheless deemed adequate.

5.12 SUGGESTIONS FOR FUTURE RESEARCH

Based on the findings and the conclusions discussed above, various suggestions for future researchers can be offered. These suggestions are:

From this research study it was clear that the respondents expressed behavioural responses to visual merchandising displays. An area that would benefit from more detailed exploration is the influence of visual merchandising displays on brand recognition and differentiation.

Whilst it is clear that the respondents expressed both affective and behavioural responses towards visual merchandising displays, an interesting study would be to ascertain whether visual merchandising displays have the ability to act as an identifying factor, i.e.: whether consumers are able to identify a store by only looking at the visual merchandising displays.

Although some consumers have a stronger preference to visit/shop at certain apparel retail stores, more research is required to determine whether this preference renders into repeat visits and possibly higher patronage of the stores. One has to keep in mind that improving a store’s image to increase the number of consumers shopping in that store adds to the costs of operation and should be carefully evaluated against the profit objectives of the store. As a result, being or becoming the most favoured store does not automatically increase the profitability for the store.

The exterior of a retail store is also an important variable when considering the store environment and atmosphere. The outside appearance of a store is the first thing a consumer sees and it must therefore also be acceptable. Research on the exterior of the building, its shape, characteristics, colours, architectural style and signage could provide a retail store with a competitive advantage over its rivals if the store can successfully attract consumers according to their perceptions.

A stimulating study could test consumers’ perceptions of two stores from the same chain that is located in different regional areas. The outcome could lead to thought-provoking insights regarding the effect of exterior variables on shopping behaviour.

Store layout options could be observed to study the effects on the amount of time consumers spend in the store.

Another inspiring study would be how the retail environment can be used as a segmentation tool. Previous research has shown that consumers of different ages respond in a different way to music in retail stores, where other segmentation variables also need to be studied to analyse whether it has a similar effect. For example, is there a gender difference in the perception of and response to certain atmospheric cues, such as colours, scents or music? We all know from walking through almost any shopping centre that retailers design their environments for their specific target markets; however the research could be elaborated to find ways to manipulate or develop the atmosphere to better appeal to the different target markets

5.13 Research Methodology For Other Objectives and Hypothesis

Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. To do my study I have adopted exploratory research design. The Primary Data is collected through questionnaire.

1. Research Design Exploratory

2. Data Source Primary & Secondary data

3. Research Instrument Questionnaire

4. Sample Plan Shopping Malls of Luck now & Gurgaon

5. Sample Size 300 customers

6. Sampling Procedure Non Probability Sampling

7. Sampling Methodology Personal Survey

Table – 5.1

Visitors of Shopping Mall According to their Age-Group

|Age |Total |Percentage |

|16-20 |60 |20% |

|20-30 |90 |30% |

|30-40 |60 |20% |

|40-50 |48 |16% |

|50 & above |42 |14% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.1, Represent that the shopping malls is mostly visited by age group of 20 - 30 followed by 30 - 40 age groups. The reason behind this was, as most of the visitors of shopping malls are being college students and families. Above same thing has been presented through the pie chart also.

Figure – 5.1

Visitors of Shopping Mall According to their Age-Group

[pic]

Source: Table 5.1

Table – 5.2

Category Wise Distribution of Visitors

|Field |Total |Percentage |

|Student |70 |23% |

|Businessman |30 |10% |

|Professional |45 |15% |

|Govt. employee |35 |13% |

|Housewife |70 |23% |

|Others |50 |16% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.2, Represents that the 23% of the students and 23% of the housewife are the most common visitors of the shopping malls, which is followed by the professional and government employee as 15% and 13%. Only 10 % of the visitors are businessman. Following thing has been also presented through a pie chart which is as bellow.

Figure –5.2

Category Wise Distribution of Visitors

[pic]

Source: Table 5.2

Table – 5.3

Income Wise Distribution of Visitors

|Income |Total |Percentage |

|Up to Rs. 10,000 |21 |7% |

|10,000 to 20,000 |30 |10% |

|20,000 to 30,000 |45 |15% |

|30,000 to 40,000 |90 |30% |

|above 40,000 |114 |38% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.3, shows that the income group of above 40,000 is the most common sightseer of the shopping malls with a percentage of 38. Income group of 30,000- 40,000 are having a share of 30%. Income group up to to10, 000 is having a lowest percentage of 7. The same is been represented through a pie chart which is as bellow.

Figure – 5.3

Income Wise Distribution of Visitors

[pic]

Source: Table 5.3

Table – 5.4

Purpose of Visiting Shopping Mall

|Purpose |Total |Percentage |

|Shopping |138 |46% |

|Entertainment |114 |38% |

|Window Shopping |48 |16% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.4, represent that the most of the respondents go for shopping purpose in shopping malls, 38% of the respondents go for entertainment purpose, and window shopping is also one big factor of attraction towards shopping malls. This thing is been shown through a pie chart also which is as below.

Figure – 5.4

Purpose of Visiting Shopping Mall

[pic]

Source: Table 5.4

Table – 5.5

Frequent Visits of Consumers

|Frequent Visit |Total |Percentage |

|Daily |30 |10% |

|Weekly |90 |30% |

|Fortnightly |120 |40% |

|Monthly |60 |20% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.5, the above table shows that mostly respondents use to go fortnight to shopping malls. 30% of respondents used to go weekly for various purposes to shopping malls. Only 10% of people go daily at shopping mall. The same thing has been presented through a pie chart which is as below.

Figure – 5.5

Frequent Visit of Consumers

[pic]

Source: Table 5.5

Table – 5.6

Taste and Preference of Consumers

|  |Affordability |Branded item |Trend & Fashion |All under one room|Total |

|1st Prefer |24 |48 |48 |180 |300 |

|2nd |60 |120 |72 |48 |300 |

|3rd |84 |72 |96 |48 |300 |

|4th |132 |60 |84 |24 |300 |

|Total |300 |300 |300 |300 |1200 |

Source: compiled from questionnaire

Table 5.6, according to this table the respondents all less than one room concept was the main motivator factor behind the success of shopping malls. Second preference of choice was availability of branded items. The above table is been represented through a column chart which is as below.

Figure – 5.6

Taste and Preference of Consumers

[pic]

Source: Table 5.6

Table – 5.7

Preference of Purchasing

|Location |Total |Percentage |

|Kirana Store |48 |16% |

|Local Market |72 |24% |

|Shopping Malls |90 |30% |

|Show Rooms |90 |30% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.6, shows that mostly customers prefer SHOW ROOMS and SHOPPING MALLS for purchasing. Local market is also used for shopping that includes MOM & DAD shop. The same thing is been shown through a below pie chart.

Figure – 5.7

Preference of Purchasing

[pic]

Source: Table 5.7

Table – 5.8

Perception about Location

|Perception about Location |Total |Percentage |

|Yes |195 |65% |

|No |75 |25% |

|can’t say |30 |10% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.8, show that 65% of the respondents are having a positive response towards the location of the shopping malls. Only 25% respondent said that location of shopping mall not affect the perception about shopping malls and 10% said they have no idea. Below pie chart present the same information of the above table.

Figure – 5.8

Perception about Location

[pic]

Source: Table 5.8

Table – 5.9

Satisfaction Level from Different Facilities Provided by Shopping Malls

|  |Excellent |Good |Average |Poor |Total |

|Parking facility |180 |66 |30 |24 |300 |

|Quality of Service |66 |150 |48 |36 |300 |

|Quality of Product |96 |90 |60 |54 |300 |

|Value for Money |48 |120 |66 |66 |300 |

Source: compiled from questionnaire

Table 5.9, according to this table mostly respondents were highly unsatisfied with the parking facilities. Respondent agreed that the quality of service is up to the mark at shopping malls. Accordingly most of the respondent said that quality of the product was good. And respondents were satisfied with the money paid at shopping malls. This can be seen in the below chart also.

Figure – 5.9

Satisfaction Level from Different Facilities Provided by Shopping Malls

[pic]

Source: Table 5.9

Table – 5.10

Layout Perception of Consumers

| |Total |Percentage |

|Yes |195 |65% |

|No |90 |30% |

|Can’t say |15 |5% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.10, in this table we find that 65 % of the respondents were satisfied with the layout of shopping malls and 30% told that they do not like very much. 5% have not responded. We can understand it through a below pie chart also.

Figure – 5.10

Layout Perception of Consumers

[pic]

Source: Table 5.10

Table – 5.11

Preference of Facilities

|  |Total |Percentage |

|Credit facility |69 |23% |

|Transportation facility |51 |17% |

|Delivery facility |180 |60% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.11, both the above table and below pie chart present that out of our total respondents 23% like credit facility of shopping malls while 17 % like the transportation facility and 60% like the delivery facility. So it is clear that the customer wants delivery services most.

Figure – 5.11

Preference of Facilities

[pic]

Source: Table 5.11

Table – 5.12

Better Services Provided by Shopping Malls

|  |Total |Percentage |

|Always |180 |60% |

|Sometimes |90 |30% |

|Never |30 |10% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.12, the table and below chart shows that, the 60% of respondents said that shopping malls always provide better services & it exceeds their expectations. 30% said that sometimes they are not satisfied with the services of shopping malls. 10% have said that they are never satisfied with the services of shopping malls.

Figure – 5.12

Better Services Provided by Shopping Malls

[pic]

Source: Table 5.12

Table – 5.13

Ethical Practices Followed by Malls

| |Total |Percentage |

|Yes |210 |70% |

|No |75 |25% |

|Can’t say |15 |5% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.13, this table shows that 70% of the respondents said shopping malls follow the ethical marketing practices. 25% said that the malls do not follow and 5% were having no knowledge about this. The pie chart below presents the same thing.

Figure – 5.13

Ethical Practices Followed by Malls

[pic]

Source: Table 5.13

Table – 5.14

Satisfaction Level from Price as well as Quality of the Products

|  |Yes |No |Total |

|Quality |255 |45 |300 |

|Price |210 |90 |300 |

Source: compiled from questionnaire

Table 5.14, customer said that when they think about shopping mall they think about quality. Out of 300 customer 255 customer have told this while 210 customer think about price out of 300.45 customers do not think of quality and 90 customers do not consider price of shopping mall. This is been presented through a pie chart which is as below.

Figure – 5.14

Satisfaction Level from Price as well as Quality of the Products

[pic]

Source: Table 5.14

Table – 5.15

Awareness of Brands since the Opening of the Shopping Malls

| |Total |Percentage |

|Yes |240 |80% |

|No |45 |15% |

|Can't Say |15 |5% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.15, according to this table 80% of our respondents is aware about the brand of the shopping malls while 15% are not aware about brand while 5% were neutral. This table has been presented through a below pie chart also.

Figure – 5.15

Awareness of Brands since the Opening of the Shopping Malls

[pic]

Source: Table 5.15

Table – 5.16

Big Brands Offer More Value for Money

| |Total |Percentage |

|Yes |195 |65% |

|No |99 |33% |

|Can't Say |6 |2% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.16, according to this table 65% of our respondents has said that big brand offers the more value for money. 33% percent do not agree and 2% can’t say anything. We can analyze it through a below pie chart also.

Figure – 5.16

Big Brands Offer More Value for Money

[pic]

Source: Table 5.16

Table – 5.17

Purchases of Branded Items in A Year

| |Total |Percentage |

|Yes |252 |84% |

|No |42 |14% |

|Can't Say |6 |2% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.17, according to this table 84% of our respondents purchase branded items in a year from shopping malls while 14% of them do not purchase branded items from shopping malls. This is also been presented through a bellow pie chart.

Figure – 5.17

Purchases of Branded Items in A Year

[pic]

Source: Table 5.17

Table – 5.18

Expenditure on Purchasing from Shopping Malls on One Visit

| |Total |Percentage |

|Less than 1,000 |84 |28% |

|1,000 to 5,000 |96 |32% |

|5,000 to 10,000 |66 |22% |

|10,000 to 50,000 |36 |12% |

|50,000 & above |18 |6% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.18, according to this table 32% of our respondents spends 1000 to 5000 at a onetime visit to shopping malls, while 28% spend less than 1000 at a onetime visit. 10,000 to 50,000 are spending by 12% and only 6% respondent spend more than 50,000 at one time visit to a shopping mall. We can analyze it through a bellow pie chart also.

Figure – 5.18

Expenditure on Purchasing from Shopping Malls on One Visit

[pic]

Source: Table 5.18

Table –5.19

Visit to the Food Court

| |Total |Percentage |

|Yes |189 |63% |

|No |111 |37% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.19, through this table we analyse that only 63% of our respondents visit to the food court of shopping malls while 37% do not visit to a shopping malls food court. This is shown through a below pie chart.

Figure – 5.19

Visit to the Food Court

[pic]

Source: Table 5.19

Table – 5.20

Preferences of Beverages

| |Total |Percentage |

|Chinese |21 |7% |

|Non Veg |6 |2% |

|Cold Drinks |18 |6% |

|Coffee |75 |25% |

|Ice-Cream |60 |20% |

|Fast Food |45 |15% |

|Continental |51 |17% |

|South Indian |24 |8% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.20, according to this table the number of respondents who visit to a shopping malls 25% take coffee from a food court. Whereas ice cream and continental is on 2nd and 3rd preference of respondent with 20% and 17% and only 2% like to have a non - veg in food court of shopping malls. Below pie chart represents the same.

Figure – 5.20

Preferences of Beverages

[pic]

Source: Table 5.20

Table –5. 21

Expensive Foods in Malls

| |Total |Percentage |

|Yes |198 |66% |

|No |72 |24% |

|Can't Say |30 |10% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 6.21, from this we analyse that 66% of our respondents believe that foods of shopping malls are costly while 24% do not agree with this. For better understanding we can refer below chart also.

Figure – 5.21

Expensive Foods in Malls

[pic]

Source: Table 5.21

Table – 5.22

Eating Out More often Now than A Year Back

| |Total |Percentage |

|Yes |135 |45% |

|No |75 |25% |

|Can't Say |90 |30% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.22 , 45% of the respondents are accepting that they eat out more in shopping malls now a days from the last year where as 25% just oppose that they are not eating out in shopping malls in comparison to last year. The same thing is been presented through a pie chart which is as below.

Figure – 5.22

Eating Out More often Now than A Year Back

[pic]

Source: Table 5.22

Table – 5.23

Safe-Guarding taken by Malls for Publics

| |Total |Percentage |

|Yes |99 |33% |

|No |165 |55% |

|Can't Say |36 |12% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 23, from this table we find that 33% of our respondents believe that there is safety in the shopping malls while 55% do not believe that shopping malls are safe for the public. Bellow pie chart represents the same thing.

Figure – 5.23

Safe-Guarding taken by Malls for Publics

[pic]

Source: Table 5.23

Table – 5.24

Drawback in Shopping Malls

|Drawbacks |Total |Percentage |

|Expensive |96 |32% |

|Parking Facility |21 |7% |

|Weekend Rush |60 |20% |

|Others |123 |41% |

|Total |300 |100% |

Source: compiled from questionnaire

Table 5.24, shows that the weekends rush was the one of the major problem for the normal customer. 32% of the respondents were not happy due to expensive things of mall. 7% were not satisfied with the parking facility at shopping mall. Below pie chart also shows the same.

Figure – 5.24

Drawback in shopping malls

[pic]

Source: Table 5.24

5.14 Summing-Up

The given data represents that the shopping malls is mostly visited by age group of 20 - 30 followed by 30 - 40 age groups. The reason behind this was, as most of the visitors of shopping malls are being college students and families. Out of which 23% of the students and 23% of the housewife are the most common visitors of the shopping malls, which is followed by the professional and government employee as 15% and 13% respectively. It also reveals that the income group of above 40,000 is the most common sightseer of the shopping malls with a percentage of 38. Income group of 30,000- 40,000 are having a share of 30%. Income group up to to10, 000 is having a lowest percentage of 7. The most of the respondents go for shopping purpose in shopping malls, 38% of the respondents go for entertainment purpose, and window shopping is also one big factor of attraction towards shopping malls. Mostly respondents use to go fortnight to shopping malls. 30% of respondents used to go weekly for various purposes to shopping malls. Only 10% of people go daily at shopping mall. The respondents all less than one room concept was the main motivator factor behind the success of shopping malls. Second preference of choice was availability of branded items. Mostly customers prefer show rooms and shopping malls for purchasing. 65% of the respondents are having a positive response towards the location of the shopping malls. Only 25% respondent said that location of shopping mall not affect the perception about shopping malls and 10% said they have no idea. Mostly respondents were highly unsatisfied with the parking facilities. Respondent agreed that the quality of service is up to the mark at shopping malls. Accordingly most of the respondent said that quality of the product was good. And respondents were satisfied with the money paid at shopping malls. I found that 65 % of the respondents were satisfied with the layout of shopping malls and 30% told that they do not like very much. 5% have not responded. 60% of respondents said that shopping malls always provide better services & it exceeds their expectations. 30% said that sometimes they are not satisfied with the services of shopping malls. 10% have said that they are never satisfied with the services of shopping malls. 70% of the respondents said shopping malls follow the ethical marketing practices. 25% said that the malls do not follow and 5% were having no knowledge about this. Customer said that when they think about shopping mall they think about quality. Out of 300 customer 255 customer have told this while 210 customer think about price out of 300.45 customers do not think of quality and 90 customers do not consider price of shopping mall. According to the table 80% of our respondents is aware about the brand of the shopping malls while 15% are not aware about brand while 5% were neutral. 65% of our respondents has said that big brand offers the more value for money. 33% percent do not agree and 2% can’t say anything. 84% of our respondents purchase branded items in a year from shopping malls while 14% of them do not purchase branded items from shopping malls. 32% of our respondents spends 1000 to 5000 at a onetime visit to shopping malls, while 28% spend less than 1000 at a onetime visit. 10,000 to 50,000 are spending by 12% and only 6% respondent spend more than 50,000 at one time visit to a shopping mall. We analyze that only 63% of our respondents visit to the food court of shopping malls while 37% do not visit to a shopping malls food court. The number of respondents who visit to a shopping malls 25% take coffee from a food court. Whereas ice cream and continental is on 2nd and 3rd preference of respondent with 20% and 17% and only 2% like to have a non - veg in food court of shopping malls. We analyze that 66% of our respondents believe that foods of shopping malls are costly while 24% do not agree with this. 45% of the respondents are accepting that they eat out more in shopping malls now a days from the last year where as 25% just oppose that they are not eating out in shopping malls in comparison to last year. We find that 33% of our respondents believe that there is safety in the shopping malls while 55% do not believe that shopping malls are safe for the public. The weekends rush was the one of the major problem for the normal customer.

References:-

▪ Finn, A and Louviere, J. (1996). Shopping Center Patronage Models: Fashioning a Consideration Set Segmentation Solution. Journal of Business Research, 21(3), 259 – 275, from ABI/INFORM Global database

▪ Haynes, J & Talpade, S. (1996). Does Entertainment Draw Shoppers? The Effect of Entertainment Center on Shopping Behavior in Malls. Journal of Shopping Center Research, 3(2), 29-38, from ABI/INFORM Global database

▪ Plummer, J.T. (1974). The Concept and Application of Lifestyle Segmentation. Journal of Marketing, 38, 33-37. January 1974, from ABI/INFORM Global database

▪ Wakefield, K & Baker, J. (1998). Excvariableent at the Mall: Determinants and Effects on Shopping Response. Journal of Retailing, 74(4), 515-539, from ABI/INFORM Global database

▪ Hariharan.G. (2008), “Profile and perception of retail consumers”, Indian Journal of Marketing, Vol.XXXVIII, No.2.

▪ "Changing Gears :Retailing in India",New Delhi: Times Multimedia,2003"ET in The Classroom", Times Multimedia ,2003(CD-ROM)

▪ Barnes, A. 2002. Shopping Centres – More than Just a Tenant. Shopping South African December 1,7: 11. Bloch, PH, NM Ridgeway & SA Dawson 1994.

▪ Rajagopal, D 2006. Leisure Shopping Behavior and Recreational Retailing: A Symbiotic Analysis of Marketplace Strategy and Consumer Response. accessed online on 14 June 2010 at .

▪ Wilson, N 2006. Soweto’s Buying Power Boosts Mall Development.

▪ Dixon, T. and Marston, A. (2005), Taking the shopping centre online: new models in ecommerce, Property Management, 23 (2), 97-109

▪ El-Adly, M. I. (2007), Shopping malls attractiveness: a segmentation approach,

▪ International Journal of Retail & Distribution Management, 35 (11), 936-950

-------:0:-------

Chapter VI

PROBLEM AND CHALLENGES OF SHOPPING MALLS IN INDIA

6.1 Introduction

Mall is the largest form of organized retailing today. Located mainly in metro cities, in proximity to urban outskirts. Ranges from 60,000 sq ft to 7, 00,000 sq ft 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. Development of organized retailing in India, in the form of shopping malls is one of the main reasons for the growth of shopping malls in India. With the changing shopping needs and aspirations, consumers are finding it easier to shop at malls where a wide choice of merchandise is available under one roof. Shopping malls have mushroomed all over the major metros of India, spreading its tentacles far and wide. Gurgaon, Noida, and a few other satellite townships in the NCR (national capital region) of India’s capital city Delhi, have been standing witnesses and silent partners to this mall mania. Called as the ‘Shopping-mall capital of India’, Gurgaon has been a focal point of the this rising tide, with monolithic glass structures, colossal trade towers and a lot of glitzy skyscrapers manning the entire length and breadth of this erstwhile urban village. Many others have followed suit, as they jump into this bandwagon of a modern India, cashing in on the rising spending potential of the ‘great Indian middle class’. But, beneath the swanky and ritzy surface, away from all the hype, the underbelly of this modern mega polis tells a totally different story. Not everything is bright and sunny as it seems. Recent studies have shown that many retail players have jumped into the fray and joined the rat race without much ado, completely overriding and overlooking the necessary checks and balances, before they get into a business venture. Retail companies in India have missed the woods for the trees, as the trend in the market shows that there has been a complete mismatch of consumers and brands. It’s true that the foot-falls in most of the major malls have been great and phenomenal, matching those in any developed retail markets; but, not all footfalls generate business. Other than the few multiplexes and the fast food chains, most of the retail endeavors have run into big troubles. Not everyone who enters the mall is a prospective consumer, as majority of them come just to hang out, and indulge in window shopping in an air-conditioned environment for free. With high real estate cost, many of these retailers have failed to break even, and business has been abysmally low, even non-existent at times. It is high time for companies involved in retail in India organized to seriously think over the location, demography, culture and taste of the target consumers, before they join the free-for-all brigade. ‘Mall Culture’ is in, but with the fierce competition in the market, not many will make it without proper planning and strategy.

In India, it can evidently noticed that there are Mandis/Bazaars (place where vegetables and groceries are sold) in county side, some daily and some weekly, but most people recognize them as weekly mandis only where in all house hold and vegetables are sold and later small stores came up at corners of the streets or residential locality which were called as Kirana stores now referred as Mom and Pop Stores, In the early 1980s manufacturer's retail chains like Binny, S Kumars, Vimal, Bombay Dying, HMT, Allwyn, etc started making their appearance in bigger cities. Later in 1990s Branded retail outlets like Food world, Nilgris and local retail outlets like Trinetra super market, Apna Bazaar, came into existence. Now big players like Reliance, Bharti, Tatas, ITC and other reputed companies are entering into organized retail businesses. And the big multinational retailers are waiting to enter India in the form of direct entrance eg: - Nike, Reebok, Metro etc or Joint Ventures eg: - Bharti with Wal Mart and Tatas with Tesco.

India is making a landmark revolution in the retail space in the world and Asia in particular. India's strong economic growth and rising disposable incomes of middle class and lower middle class made big business houses venture in to this business, many businesses are coming from US and Europe. The Government's decision to allow foreign Direct Investment and businesses in to this sector has attracted foreign companies to establish their businesses in India. Now foreign retailers will be able to own their own stores in India for the first time as part of a major government liberalization of business. Till 2006 foreign companies were allowed to operate franchises by the government to protect the indigenous companies. Now new regulations may allow foreign companies to hold up to 100%. But the Indian government is going ahead with new reforms which may create millions of job in the near future while safeguarding the interest of domestic firms.

The increase in the land value and number of real estate companies investing in this field has also helped power the boom as financing is made easier, one can see that software companies like satyam has marked their presence in reality and infrastructure and the reality company, k Raheja group has stretched their wings to retail. The noted swift growth in reality industry is of significance and this is changing the evolution and the spectrum of whole marketing of FMCG, farm and dairy products.

Retailing is still in its infancy in India. In the name of retailing, the unorganized retailing has dominated the Indian landscape so far. According to an estimate the unorganized retail sector has 97% presence whereas the organized accounts for merely 3%. Industry has already predicted a trillion dollar market in retail sector in India by 2010. However, the retail industry in India is undergoing a major shake-up as the country is witnessing a retail revolution. The old traditional formats are slowly changing into more complex and bigger formats. Malls and mega malls are coming up in almost all the places be it – metros or the smaller cities, across the length and breadth of the country. Both MNCs and Indian firms want to get their share of this burgeoning pie. Notable in Indian firms are Pantaloons Retail & Big Bazaar, Trent's Westside, Shopper's stop, Reliance and Subhiskha, Wills Lifestyle stores, Café Coffee Day, which are present in India in different retail formats. Wal-Mart stores have just started operations in India. Some leading retail coffee chains of the world like Starbucks, Barnies are planning to expand in a major way in India.

6.2 Factors Driving the Growth of Shopping Mall

Indian economy is growing at the rate of 8%, indicating a prosperous future. The consistent economic growth resulted in a decent rise in income level of the middle class. The thickening of the pocket of the consumer resulted in a revolution of the retail industry. Many International brands have entered the market. With the growth in organized retailing, unorganized retailers have brought drastic changes in their business models, many factor are responsible for the growth of retail sector. These are:

1. INCREASING DISPOSABLE INCOME:

Rising disposable incomes in middle class and lower middle class with increase in employment opportunities for young adults in IT & IT enabled sectors are the major cause of retail growth in India.

2. INCREASING NO. OF DUAL INCOME NUCLEAR FAMILIES

In India, hefty pay packets, nuclear family along with increasing working women population and dual income in family are the factors contributing to prosperous retail sector.

3. CHANGING LIFESTYLE AND CONSUMER BEHAVIOR

Due to increasing working population, comfortable life, travel and leisure are given importance. These key factors are growth drivers of retail sector in India which now boast of retailing almost all the preferences of life – apparel and accessories, Appliances, Electronics, cosmetics & Toilets cries etc.

4. EXPERIMENTATION WITH FORMATS

Due to competition in the market, retailing is still evolving and the sector is witnessing a series of experiments with new formats being tested out.

5. STORE DESIGN

Shopping malls and super markets are growing at a very faster rate. Improvements in infrastructure and enhanced availability of retail space, store design are the factors increasing the share of organized retail ad thereby contributing to growth of Indian retail sector.

6.3 Challenges of Shopping Malls

The challenges which many malls are facing today is to keep up with the competition and to attract retailers of a higher quality, A host of additional challenges may exist for developers and their business and retail tenants in malls; these include:

1. Rising real estate values

National and international players are focusing India as the major point of construction, giving rise to skyrocketing prices of real estate. Real estate is a game of demand and supply. Supply is perfectly inelastic which paves the way to sky touching real estate prices. Due to this disequilibrium of demand and supply of quality space, real estate prices in NCR are ranked as highest in the world. And this escalating rent or lease of the property is such an aspect, which is eating up profit margin of the retailers.

2. Lack of feasibility/Market research prior to the development of a Mall

Some malls developers make a blunder by constructing the malls without carrying out rigorous due diligence exercise on their feasibility. If the mall developer flunks in conducting any of the feasibility analysis i.e. market study, technical study, financial study, economic study and ecological study it may lead to blunders. Before jumping on mall bandwagon, developers need to undertake market feasibility.

3. Long gestation period

Malls are the latest format in Indian organised retail. So, the gestation period of these ventures is quite long. A mall sprawl over one lakh sq ft requires capital budget of Rs.20-30crores, with a payback period of 60-75 months.

4. Lack of adequate infrastructure

Indian malls are facing the problem of woeful inefficient supply chain. Supply chain for most of the goods is in the grip of vicious circle of inefficiency due to the factors like obsolete warehousing, outdated transport technology and poorly coordinated logistics. Poor roads, the lack of cold chain infrastructure etc. hampers the development of food and fresh grocery retail in India. Pilferage was another challenge mall managers struggled with, which eat up their profit margins.

5. Retail/Mall resource shortage

Human resource is the most important asset of an organization and no one can understand this better than the mall developers of India. They are facing a crunch in hiring personnel. In India the mall managers are substituted either by real estate or hospitality personnel, which is totally a misfit case. The deficiency is not limited to mall managers only; human resources specialized in the facility management, advertising programs, and event management is not upto the mark.

6. Poorly designed mall

A mall is a blend of high rent paying speciality stores and low rent paying anchors tenants. But, design of Indian malls is an irony to that. Mall developers are practising ―first come, serve first‖ i.e. selling the mall space to the forthcoming retailer. For realizing land value quickly mall developers can turnaround a well designed mall into a number of shops with unattractive offering and ambience. Developers are blindly building malls, without considering the basic fundamentals of mall management i.e. back office logistics and material movement planning.

7. Positioning a mall

Positioning of malls refers to define the services on the basis of various factors like demographics, psychographics, income levels and market research. Positioning also refers to the location of the mall and Indian developers are lacking in this perspective. Tenant mix (players/shops operating within a mall on rental basis) is a variable factor but location is a fixed factor and can‘t be changed. This poor positioning results in poor platform of differentiating the malls from the competitors. Proper positioning is the key to distinguish from mall clutter. Usual and identical malls give a monotonous feeling. Hence, malls are required to develop its own USP rather than ―just one amongst many.

8. Zoning – Formulating the right tenant mix and its placement

Proper zoning is one of the ways to elicit the target traffic. Tenant mix should be designed in a way that it renders value proposition to all shoppers, retailers, and mall developers. Right tenant mix calls for anchor clients like large format retailers, departmental stores, exclusive outlets, fast food outlets etc. to take up space and attract other retailers. A mall is dependent on the success of its tenant‘s performance and if on the same floor lifestyle products were located next to a food retailer, than the customers will lose its interest which results in lesser footfalls.

9. No-Change Areas:

Tenants should identify those areas outside of the premises that are critical to their use (such as elevators, lobby areas, and access-ways between the loading dock, freight elevator and the premises), and make certain that those areas cannot be changed without the tenant’s approval. From the developer’s perspective, careful attention should be given to the tenant’s proposed no change area in order to make certain that the requested area is not too large so as to restrict the developer’s need for flexibility to accommodate demands by future tenants, market changes and laws.

10. Loading/ Unloading:

In malls, the loading/unloading dock is often shared by the building occupants. Ideally, the building will have a dock master who will coordinate the use of this dock, the cost of which will be included in building services or common area maintenance charges. If there is no dock master, then the developer and tenant need to address this issue in their lease negotiation because the tenant will want to make certain that its trucks can unload merchandise in a timely and efficient manner and the developer will want to avoid delivery trucks blocking roads and access to the building. Often an anchor tenant will negotiate to obtain priority rights to the loading dock during certain hours and an alternate means of loading/unloading if the main loading dock is unavailable.

11. Parking:

The parking areas are either operated by the developer or by a parking operator on a pay-for-use basis. As part of lease negotiations, the tenant should insist that its customers be able to park for free for a certain period of time, or, if not free, then at a reduced rate for the first hour or two. From the developer’s perspective, the developer must make certain that there is enough parking available for the entire project, and that available parking is not unduly limited by granting exclusive rights to parking spaces. In some projects, the developer can utilize some of the retail parking to accommodate overflow parking from the residential uses in the evening time after the stores are closed. This can be an additional source of income.

12. Certificate of Occupancy:

If the tenant is performing work in the premises prior to occupancy, then the lease will often obligate the tenant to obtain the certificate of occupancy upon completion of such work. However, some jurisdictions will use this request as leverage to compel the building owner to cure any building violations, even if unrelated to the subject premises. Tenants should therefore insist that their lease obligates their landlords to be responsible for curing any building violations that would prevent the tenant from receiving a certificate of occupancy following completion of their work. 

13. Satellite Dishes:

If a tenant needs a satellite dish to communicate with a home office or other stores, the landlord will need to grant easements in the lease in order to permit the tenant to use building chases and the rooftop for the satellite dish. The developer must make certain that any work done on the roof be performed with roofing contractors approved by the developer and in a manner that does not void the roof warranty. In addition, the developer should insist that the tenant be responsible for any damage to the roof or building as a result of such installation.

14. Scaffolding:

Careful negotiation between developers and tenants should take place if scaffolding might be erected on the building at a future point in time (perhaps for renovation purposes, or to hold billboard/advertising materials — provided, of course, all scaffolding complies with legal and regulatory constraints). Though the developer usually retains the absolute right to erect scaffolding, the tenant should ensure its lease mandates scaffolding will not block access to its store or its signage.

15. Poor Mall Traffic:

Although shopping malls started making their presence felt, consumers still go to the traditional stand-alone stores, when they are purchasing specialized products like electronics, home needs, and jewelry. What are the ways in which shopping malls in India can attract more number of customers? Poor mall management and poor tenant mix have resulted in poor mall traffic and low conversion rate. This has led to the closure of individual shops, at several malls. What can the mall management do, to attract serious buyers? What are the secrets of successful shopping malls and how to apply them to your centre? How to develop/ redevelop and operate shopping centre efficiently? What are the innovative ways to increase center’s sales and profits? What are the latest techniques for maintenance and security tactics? These are all the challenges faced by a shopping mall in India, today points to ponder, and solutions to be FOUND……………….

6.4 Challenges faced by Retail Brands at Indian Malls

Mostly once the stores are leased out, the developers are not worried about the promotion any more. Though a few malls organize some in-house promotional activities but that alone doesn’t guarantee a good footfall. Majority of the developers don’t pay attention about the branding, marketing, promotions, budgeting, financing as part of running a mall. This affects the overall footfalls in the mall, and thus the business of the retailers. The retailers are given a lot of importance to sign in the mall but later on not considered as an integral part of mall. With over 100 malls operating in India and more than 300 being developed, the opportunities offered in the retail landscape are immense. Mall space is expected to touch 60 million square feet by end-2010. With such a huge supply of space, mall owners and developers in India need to focus on vision, scalability and processes and create a distinct proposition for themselves in the market. The emergence of specialty malls is a step in this direction. Retailers today face many challenges, including increasing competitive pressures, thin margins, high occupancy costs and unpredictable supply base that come in the way of their attaining operational efficiency and profitability. In the mall they not only deal with additional super area loading but also the additional CAM expenses. As organized retail grows, the market will only become more competitive and developers will have to work hard to differentiate. Faulty mall management along with inappropriate tenant mix would lead to poor mall traffic and closure of individual stores in malls. Professional third party mall management service providers are hence likely to come to the fore. They not only understand these business challenges, but also have the ability to help retailers effectively deal with them. 

Generally there are two types of consumers who visit malls – focused buyers and impulse buyers. The time spent by focused buyers inside the mall is relatively lower as compared with impulse buyers who spend a lot of time window shopping. Malls which have entertainment zones and/ or promotional activities have larger foot falls and more percentage of impulse buyers. Mall management becomes critical to attract impulse buyers. For example, Ansal Plaza in Delhi has ensured its success through good promotional events and mall management practices since its inception in 1999. Its amphitheater which is dedicated to promotional activities has ensured footfalls despite newer malls coming up in the NCR region. Contrary to popular misconception that mall management is synonymous with facility management, mall management actually takes care of the issues such as:

• Positioning,

• Zoning (tenant mix and placement within mall),

• Promotions and Marketing,

• Facility Management (infrastructure, footfalls, and ambiance),

• Finance Management. 

Various business models are adopted by retailers/ developers while utilizing the services of a There are very few mall management companies in India at present. Large real estate developers and retail chains either have their own mall management divisions or have contracts with international consultants. In developed markets mall management is an established independent service line. Till recently contract model was the norm in India. But the revenue sharing model is increasingly becoming popular with retailers in India due to the present economic situation. India is yet to embrace the concept of third party mall management in retailing. Some of the issues could be:-

• Planning the mall around anchor tenants, 

• Lack of market research by developers,

• Tendency to lease out on a FCFS basis,

• Perceive outsourcing as additional cost,

• Lack of accountability for in-house promotional activities.

• Improper planning for space (lack of parking space, single entry/ exit points)

With the slowdown of the realty sector, developers might give the mall management practice a thought in order to ensure that the slowdown does not affect its footfalls. Mall market in India has become extremely competitive especially due to the sudden boom in the real estate sector. Malls have come up in the Tier II cities and rural areas as well albeit in a smaller and different format. With increasing competition from high street retailers, developers are finding it difficult to achieve 100% occupancy rates. A specialist’s retail property management skills enable property owners to receive the benefit of master planning and development expertise which is critical to ensure that malls are strategically positioned for long-term growth and success.

How a retail shopping mall can be transformed into a brand? So that people recognize it with its name, and same is repeated later in other cities at other locations. But for that principle A to Z is being retailer friendly.

6.5 Challenges faced by HR in Shopping Malls

"Take away my factories, but leave my people, and soon we will have a new and better factory." Andrew Carnegie, the American steel billionaire.

With growing consumerism, unprecedented awareness, and a youth-hefty customer base, India is perceived as 'Most Promising Land' for the Global and domestic retailers. According to AT Kearney's 2007 Global Retail Development Index (GRDI), for the third consecutive year, India remains the top retail investment destination among the 30 emerging markets across the world. As per the report of McKinsey Global Institute (2007), India is becoming the world's 12th Trillion dollar economy, and further it predicts that India is well on its way to become the world's fifth-largest consumer market by 2025. Currently, India is ranked as the 12th largest consumer market in the world. The Indian retail market is professed as potential goldmine and is attracting a large number of giant international and domestic players in anticipation of explosive growth. The organised retail sector is likely to increase its share from the current 4% to over 20% by 2010, as the overall retail sector grows from $328 billion to $430 billion, as per report by FICCI (2007) on the retail sector. The boom in the retail sector in India and its corresponding spike in demand for talent has under scored the need for effective HR systems. The function of human resources has special significance in retail as the employees operate in a unique environment. In any retail organisation, the people who deal with the customers at a one to one level are considered to be the face of the organisation. According to a recent study conducted by Wharton (2007) at a Canadian consulting firm on retail customer dissatisfaction, it was found that disinterested, ill-prepared and unwelcoming salespeople lead to more lost business and word-of-mouth than any other management challenge in B.D. Singh and Sita Mishra are Sr. Professor and Asst. Professor respectively in the Institute of Management Technology, Ghaziabad, 201001 retailing. Thus, there is utmost need for effective HR systems to encourage and develop employees, manage performance, reward recognition which helps to increase the opportunity for employee advancement and to retain engaged employees. In shopping Malls, it is important to specify tasks to be performed for effective retailing to occur. Some of these tasks are as follows:

▪ Buying merchandise for retailer

▪ Shipping merchandise to the retailers

▪ Receiving merchandise and checking incoming shipments

▪ Marking merchandise, inventory storage and control

▪ Preparing merchandise and window display

▪ Facilities maintenance, facilitating shopping

▪ Setting Price

▪ Customer contact, customer research and exchanging information

▪ Customer follow-up and complaint handling

▪ Sales forecasting and budgeting

▪ Credit operations, billing customers

▪ Handling receipts and financial records

▪ Gift wrapping, delivery to customers

▪ Repairs and alteration of merchandise, returning unsold or damaged goods

▪ Personnel management, coordination.

These areas are organized by line and staff employees. These employees are divided in to managerial, supervisory and working hands. In the above backdrop, the HR Challenges are as follows:

1. Lack of talent

Organized retailing is highly manpower intensive. Retailing is the second largest employer in India, presently it employs about 22 million people. The present scenario depicts that there will further be a very high demand for manpower to match the scope of roll out plans of various players in the near future. It is estimated that 8 million people will be required in organized retail by 2011 (Pant 2007). This gives a clear indication of the extent of human resources required to support the growth of retailing in India. Especially, at the lower levels, there is requirement for large number of support staff as customer care associates. Moreover, due to organized retailing correlation with other industrial and service sectors, it is generating a great deal of indirect employment viz. security, electrical and mechanical maintenance, property management services, parking, sorting, packaging, etc. The sector is facing talent crunch because neither the talent required on such a large scale in the sector are available nor there is training infrastructure facility for them.

2. Unavailability of Experienced Manpower

Organized retailing is an emerging sector in India; there are not many executives with long and relevant experience. KPMG report (2006) reveals that there is a skill-set gap in those manning the floors. Although, India has a huge posse of qualified human resources, who have the required education and are highly motivated to undertake the challenging tasks still there is more pronounced need for middle and senior level management. Managers from industries such as FMCG, Telecom, BPO, and Hospitality are able to quickly learn and adapt to the demands of retailing. Consequently, the scramble for talent hunt amongst organised retail players will be as fierce as their battle for customers. Therefore, developing strategies for creating, attracting, nurturing, retaining are required in the initial stages themselves.

3. Lack of Formal Retailing Education

KPMG report (2006) points out that there are also competency gaps in various key areas like supply chain management, vendor development and customer relations management. There is requirement for qualified and trained manpower to look after day-to-day operations and cater to the wide spectrum of customer expectations. Therefore, it necessitates appropriate training to provide them exposure and also to equip them with progressive working methods. As there is lack of formal vocational institutes, where students can be trained for entry-level positions, most retailers in India depend on in-house training or fulfilling their training needs with small institutes. Keeping in mind the growth in the retail industry, some business schools are coming forward to pioneer courses in retail management. The Indian Retail School has a number of such short-term courses on retail management. Pantaloon has made a tie-up with several management schools to offer programs in retail management. RPG Enterprises has also set up a training institute for front line staff and store managers. Tesco runs a retail certification course with IIM-Bangalore. Reliance retail has also decided to set up its own training centers across the country. At present, it has two such centers in Mumbai and Kolkata. Training of the staff is the best investment in business and so in the retail business. The lack of formal retailing education further exacerbates the problem of recruiting. There is urgent need for management education for fraternity to fill in this vacuum. Top management institute are not showing interest because of low salary packages being offered to their students. Despite all these difficulties, the problem is required to be addressed. Proactive training strategies would become a competitive differentiator for retailers given the resource and competency shortages in India.

4. Threat of Poaching

While most of these challenges are gradually being addressed by the growing organized retail segment, the shortage of experienced human capital across all levels leads to poaching problem. The gap between supply and demand is resulting in high levels of attrition, and increased costs of doing business for the industry. The growth in retail salary in India has been one of the highest among all sectors in the past two years. The average yearly increment is 18-22 per cent against the all-sector average of 13-14 per cent (Saha 2007). According to VP (HR) RPG, "The biggest poachers are the BPOs. Every second youngster leaving us joins a BPO". At the same time, upcoming retail chains are poaching from multinationals and the established retail players like Shopper's Stop, Kishore Biyani's Big Bazaar and RPG Group's Spencer's for back end operations. But for front-end operations like HR and merchandise management, the target is FMCG. According to HR consultants, the biggest setback for FMCG companies has been at the middle management level. Retention of employed staff, particularly the frontline staff who constitutes 85% of a retailer's workforce is becoming a rising concern. While Pantaloon has attrition rate of 8.6% per annum, RPG Retail accepts that their frontline attrition rate has drastically increased to 16% from 5% last year. Subhiksha too is faced with an attrition of as much as 5-6% per month. There is growth in retail sector, with many well-established business houses like Reliance, Birla and Bharti Enterprises have drawn up ambitious plans to foray into retail and other established players like Pantaloon Retail, Shoppers' Stop, Subhiksha and Spencer's are also investing heavily in this sector. Apart from this, many global players are foraying into retailing through one or the other way. All this can lead to higher attrition or poaching problem. Battling acute attrition, retailers are throwing in plenty of incentives to retain frontline staff, reports CNBC-TV 18.

1. Stressful Environment

According to a survey carried out by Associated Chambers of Commerce and Industry of India (ASSOCHAM), retail sector is among the top ten segments in which the menace of stress and mental fatigue had intensified during the recent times (Tribune News Service 2007). The working pattern of retail industry requires employees to put in long hours (8-12 hrs.) of work which generally cause fatigue and lower motivation among employees. There is lot of work pressure in particular from work overload, time pressures and deadlines, and staff shortages and turnover rates. This may lead to poor performance, absenteeism, mistakes in jobs etc. Besides this, in part-time and casual jobs in retail sector, there is job insecurity, short-and split-shifts, unpredictability of hours, low wages and benefits, poor working facilities, and the need to juggle multiple jobs to earn a living wage contribute to stress and workplace problems.

2. High Turnover

According to KPMG report (2006), globally, retailing is a high staff turnover industry, with even the larger retailers facing attrition rates of between 40 and 60 per cent a year. As organized retailing is at a nascent stage in India, attrition is not yet an issue at least at the middle and senior management level. However, with rapid growth in retailing, the demand for managers with good retailing experience is set to increase, hence attrition levels are expected to worsen. For front-end staff attrition rate is believed to be 25 to 50 per cent which may be due to large number of inexperienced and part-time staffs. With more and more players roll out their retail initiatives, industry experts expect that attrition will rise at the managerial level too. At lower levels some perennial issues for high employee turnover within the sector are: seasonal employment during peak trading period and the perceived lack of career opportunities. This is especially true amongst students many of whom are employed by retail organizations as undergraduates but would look for alternative employment as graduates.

3. Complex Human Resource Environment

The development of the retail sector is dependent on the availability of skilled and knowledgeable manpower broadly at two levels- managerial and associates. Although growing consumerism and availability of manpower are powering the growth of organized retail business in India but skilled human resources are woefully short in supply. Traditionally, the task content of frontline jobs has been low and segmented, requiring little skill or training. It leads to cycle of low wages, low morale, and high turnover and high customer dissatisfaction and, therefore, loss of sales. But at present the need of the hour is to hire employees with the right skill set who can take care of operational functions and also there is necessity to engage employees with the right attitude as they need to work long hours and also on holidays and festive occasions. The retail human resource environment in India is very complicated with lack of experienced and trained people, lack of sources of employment and little focus on human resource planning, compensation measurement and working conditions. In addition to this, the perception of working within retail is poor with entrenched beliefs that all roles involve long and unsocial hours, which limits the ability of employees to manage the balance between work and life. It may be business requirement to open the retail stores on holidays and festivals, but from employees' perspective that deprives them of community activities.

6.6 Recruitment Challenge & Employing Strategies in shopping Mall

Indian retail sector is facing some specific recruitment challenges, even companies known to be leaders in retail industry are experiencing recruitment challenges, especially for entry-level store employees and for store managers. Some of the recruitment challenges are:

• Finding the right talent that is willing to commit over the long-term.

• Retail jobs in the frontline are near minimum wage jobs, although players in specialty format tend to pay a little more. But pay cannot be used to hire people.

• Retail jobs are also not career builders in the short run. Thus, making career paths clear to new talent also poses as one of the biggest challenges.

• Competition and diversity are challenging too; everyone is looking for the same highly-qualified employees.

To overcome these challenges retailers can employ following strategies to recruit workers:

• Build the brand name of the company in the overall employment market by communicating its attributes in a way that distinguishes the company from the competitors. The focus of the company can be on attributes such as inclusiveness, competitiveness, fast-paced, goal-oriented, values-based, having high integrity, graceful under pressure, fun, entrepreneurial and so on.

• Highlighting the job opportunities through company's own website as well as major job listing websites, such as and targeting intranet postings current employees so they can see where new opportunities are available.

• Classified ads, signs at shopping malls, radio ads, brochures, message on sales receipts can also be used for recruitment.

• Employee referrals can also be promoted with bonuses for referring new hires that stay with the company for at least a prescribed period of time.

• The culture of a company, its values, and the way in which attributes are expressed and demonstrated appears to be a significant factor in employees choosing the retail company for which to work. It is also important to company managers who select employees for their temperaments as well as their skills.

• To overcome the short run career image, exposure to career paths to employees is required. Different companies have different career path models which are aligned with the company's culture, approach to employee communications, size and available opportunities, and management approach. Along with this, showing wages associated with career paths, showing career paths and opportunities, internal promotions, internal job fairs can also be useful.

6.6.1 Compensation Strategies

The biggest challenge of ensuring employees contribution to business results is in figuring out what kind of reward and recognition programmer to implement. Total compensation comprises direct monetary payments (salaries, commission and bonuses) and indirect payments (paid vacations, health and life insurance and retirement plans). It should be fair to both the retailers and its employees. To better motivate employees, some firms also have profit-sharing.

In India, the compensation strategy for front-liners is conservative, while retailers develop a very competitive plan for store managers. But if retailers want to provide stability to their employees and also want them to act as the custodian of their business who can contribute to business, they should plan for devising an effective compensation strategy. In order to get maximum contribution from employees the retailers can design a compensation programmer which is low on guaranteed pay but aggressive on store profitability linked bonuses or incentives. Even those in support functions such as merchandising, distribution, accounts and so on need to be rewarded based on the performance of the stores that they are servicing.

6.6.2 Engaging & Retaining the Talented

It is challenging enough to find the right people, but more challenging is to retain and engage competent employees. High attrition rate in retail is acknowledged as an accepted but inefficient practice which not only affects retailers in their ability to develop and retain talent, but also to drive higher levels of profit. The companies are forced to spend time on recruiting and screening new talent, rather than in growing the business. The impact of turnover also affects the experience levels of employees who are interacting with customers and, therefore, may also impact the quality of service and the quantity of sales. Hence, retailers must examine different strategies which they can use to engage their employees, reduce turnover and boost morale. These strategies are given below:

• Fairness/equitable treatment.

• Better hiring processes and improved efforts to meet employee training needs.

• Providing good work environment with clear values and goals.

• Ensuring equitable pay and fair treatment.

• Helping employees maintain a balance between personal and work life is a vital strategy that can help retailers develop a happier, more productive and more loyal employee culture. Retailers should focus on sufficient hours of work and flexibility in the scheduling of those hours to meet employees' personal needs as well as those of the company.

• To retain their people, the retailers should take every opportunity to tell employees about the career paths and opportunities that exist to move ahead and earn more money.

• Leading retail companies of all sizes make investments in training. Although some of the key retention strategies for entry-level employees are competitive pricing (i.e. salary) but giving them the right training can also be a tool for retention. Most of the companies gear a basic training to employees. But focusing on training for specific competencies required for the positions within the company and requirements at each job progression is also advisable for retention.

• Retail companies emphasizes on performance, although to achieve this they provide the support needed to assure the employees will be successful in their positions. Retailer can supplement this by emphasizing on special assignments, rotations, and training which can be used by retail companies to keep their employees.

• In India, some leading retailers focus a lot on this issue. Reliance Retail has a talent transformation programmer where people are made to identify their skill sets.

• Employee retention through job enlargement in retail plays a crucial role as the job markets perform better for skilled personnel.

• Focusing on polychromic-orientation (an employee's preference for switching between multiple tasks within the same time-block) can be very useful. It has been demonstrated empirically that a polychromic-orientation has both direct (employee fit) and indirect (through fairness perceptions) effects on retail employee satisfaction. (Arndt et al 2006)

6.6.3 Career Advancement

Any Company's ability to recruit and retain a high-quality employee diminishes as the perception grows that it offers limited advancement potential. This limited advancement potential within individual retail firms leaves many qualified employees with few options other than to look elsewhere for employment, which, in turn, contributes to the turnover costs paid by employers. Thus, providing opportunities for career advancement can be an important attraction point to draw top-notch talent, although this can be a way by which retailer "brand" their company in the employment market. Due to scarcity of experienced and talented people, one can find that there are too many companies chasing too little talent. Thus, in this competitive environment showing that a company offers the employee a bright future provides a competitive advantage in recruitment. Career advancement in companies can be done though:

• Developing career path

• Recognizing and communicating advancement opportunities

• Company's commitment to internal promotion

• Identification of critical positions

• Developing talent and succession planning

6.6.4 Healthy Management Practices

In conjunction with the above mentioned human resource management (HRM) practices it is advisable for retailers to ensure healthy management practices. The implementation of these practices is increasingly regarded as an important determinant of an organization’s competitive advantage

• Providing safe and secure workplace

• Paying salaries on time

• Providing and processing leaves, loans and other requests on time

• Providing neat and clean wash rooms, changing rooms and rest rooms

• Providing good uniform

• Ensuring the handling of grievances

• Equitable treatment at workplace

6.6.5 Ethnic Diversity Management

Many multi-nation companies (MNCs) are going to open their retail outfits in India. Naturally, employees profile is going to be a complex and diverse one. It requires developing a global cultural management to take care of this future HR problem.

References:-

▪ Levy, Michel; and Weitz, Barton A. Retailing Management .New Delhi, Tata McGraw-Hill Publishing Company Limited, 2002.

▪ Mariton, John. Smart Things to Know about Brands and Branding .Mumbai, Indian Books Distributors Limited, 2000.

▪ The Economic Times Knowledge Series : Retail 2000-2001",New Delhi: Times Multimedia,2001

▪ "Changing Gears :Retailing in India",New Delhi: Times Multimedia,2003

▪ A.T. Kearney’s Report on Indian Retail, 2008

▪ Agarwal Pulkit, Tyagi Esha, Foreign Direct Investment In retail Sector- An Analysis, 2010

▪ Krafft M and Mantrala, Murali K (eds), (2010), Retailing in the 21st Century: Current and Future Trends, US

▪ Dhanabhakyam M, Shanthi A Indian Retail Industry – Its Growth, Challenges and Opportunities, 2010

▪ Sanjeev Kumar Retail Industry: Where does India Stand? at ? F=9

▪ Cant, M. 2010. Introduction to retailing. 2nd ed. Cape Town: Juta

▪ Cant, M. C., Brink, A. & Brijball, S. 2006. Consumer behaviour. Cape Town: Juta.

▪ Cant, M. C., van Heerden, C. H. & Ngambi, H. C. 2010. Marketing management: A South African Perspective. Cape Town: Juta.

▪ Colborne, R. 1996. Visual merchandising: The business of merchandising presentation. United States of America: Thomson Learning Inc.

▪ Cooper, D.R. & Schindler, P.S. 2008. Business research method. 10th ed. Singapore: McGraw Hill.

▪ Tustin, D. H., Ligthelm, A., Martins, J. H. & Van Wyk, H De J. 2005. Marketing research in practice. South Africa: ABC Press. .

▪ Wiid, J. A. & Diggines, C. 2009. Marketing research. South Africa: Print communication.

▪ Zikmund, G. & Babin, B. J. 2010. Exploring marketing research. 10th ed. China: South Western.

▪ Mc Daniel, C. & Gates, R. 2001. 3rd ed. Marketing research essentials. United States of America: South Western

-------:0:-------

Chapter VII

CONCLUSION & SUGGESTIONS

7.1 Introduction

Today multi store shopping malls are a shopaholic’s paradise in Lucknow and Gurgaon. These shopping malls accommodate every taste, pocket and style. Also, the city of Lucknow and Gurgaon offers ample shopping opportunities to tourists who come here to spend their vacation. Shopping malls offer excellent parking facilities, create value for money, credit / debit card facilities, and so on. As a result, higher customer traffic is attracted towards shopping malls. All thanks to shopping malls for bringing about an overall development in lucknow and Gurgaon. In India, while organized retail has yet not been accorded the status of an industry, it is witnessing a large number of formats emerging in the market at a very fast pace. Indian organized retail is moving with an exponential rate that no other sector has witnessed. Ample opportunities are present as 94% of the Indian retail is still unorganized. Moreover, Indian retailers can learn from the mistakes committed by their global counterparts and fuel the tremendous growth of Indian organised retail sector.

Showing appreciation for customer through things like thank you notes, exclusive client-only briefings, and open house, etc. Clearly these are not the only relevant areas for creating great customer service. Hence this chapter is a platform to unfold few suggestions and findings for the same.

7.2 Finding of the Study

➢ The given data represents that the shopping malls is mostly visited by age group of 20 - 30 followed by 30 - 40 age groups. The reason behind this was, as most of the visitors of shopping malls are being college students and families. Out of which 23% of the students and 23% of the housewife are the most common visitors of the shopping malls, which is followed by the professional and government employee as 15% and 13% respectively.

➢ The table given in the previous chapter reveals that the income group of above 40,000 is the most common sightseer of the shopping malls with a percentage of 38. Income group of 30,000- 40,000 are having a share of 30%. Income group up to to10, 000 is having a lowest percentage of 7.

➢ The most of the respondents go for shopping purpose in shopping malls, 38% of the respondents go for entertainment purpose, and window shopping is also one big factor of attraction towards shopping malls.

➢ Mostly respondents use to go fortnight to shopping malls. 30% of respondents used to go weekly for various purposes to shopping malls. Only 10% of people go daily at shopping mall.

➢ The respondents all less than one room concept was the main motivator factor behind the success of shopping malls. Second preference of choice was availability of branded items.

➢ Mostly customers prefer show rooms and shopping malls for purchasing.

➢ 65% of the respondents are having a positive response towards the location of the shopping malls. Only 25% respondent said that location of shopping mall not affect the perception about shopping malls and 10% said they have no idea.

➢ Mostly respondents were highly unsatisfied with the parking facilities. Respondent agreed that the quality of service is up to the mark at shopping malls. Accordingly most of the respondent said that quality of the product was good. And respondents were satisfied with the money paid at shopping malls.

➢ I found that 65 % of the respondents were satisfied with the layout of shopping malls and 30% told that they do not like very much. 5% have not responded.

➢ 60% of respondents said that shopping malls always provide better services & it exceeds their expectations. 30% said that sometimes they are not satisfied with the services of shopping malls. 10% have said that they are never satisfied with the services of shopping malls.

➢ 70% of the respondents said shopping malls follow the ethical marketing practices. 25% said that the malls do not follow and 5% were having no knowledge about this.

➢ Customer said that when they think about shopping mall they think about quality. Out of 300 customer 255 customer have told this while 210 customer think about price out of 300.45 customers do not think of quality and 90 customers do not consider price of shopping mall.

➢ According to the table 80% of our respondents is aware about the brand of the shopping malls while 15% are not aware about brand while 5% were neutral.

➢ 65% of our respondents has said that big brand offers the more value for money. 33% percent do not agree and 2% can’t say anything.

➢ 84% of our respondents purchase branded items in a year from shopping malls while 14% of them do not purchase branded items from shopping malls.

➢ 32% of our respondents spends 1000 to 5000 at a onetime visit to shopping malls, while 28% spend less than 1000 at a onetime visit. 10,000 to 50,000 are spending by 12% and only 6% respondent spend more than 50,000 at one time visit to a shopping mall.

➢ We analyze that only 63% of our respondents visit to the food court of shopping malls while 37% do not visit to a shopping malls food court.

➢ The number of respondents who visit to a shopping malls 25% take coffee from a food court. Whereas ice cream and continental is on 2nd and 3rd preference of respondent with 20% and 17% and only 2% like to have a non - veg in food court of shopping malls.

➢ We analyze that 66% of our respondents believe that foods of shopping malls are costly while 24% do not agree with this.

➢ 45% of the respondents are accepting that they eat out more in shopping malls now a days from the last year where as 25% just oppose that they are not eating out in shopping malls in comparison to last year.

➢ We find that 33% of our respondents believe that there is safety in the shopping malls while 55% do not believe that shopping malls are safe for the public.

➢ The weekends rush was the one of the major problem for the normal customer. 32% of the respondents were not happy due to expensive things of mall. 7% were not satisfied with the parking facility at shopping mall.

7.3 Result of Hypothesis

Ho (1) There is no significant impact of communication strategy for retail sector malls depends on the profile of consumer.

On the basis of Chapter IV, the retailers expect customer-centric retailing to continually gain steam throughout 2013. Over the last few years, there has been an exponential increase in the potential paths a customer can take in the buying process. This means there is significant impact of communication strategy for retail sector malls depends on the profile of consumer.

Ho (2) There is no significant difference between the exclusive brand outlets and multi brand outlets.

On the basis of Chapter V “Comparison between Exclusive and Multi Brand Outlets” the following points financial resources, brand, consumer, communication and promotion shows that there is significant difference between the exclusive brand outlets and multi-brand outlets, we reject our null hypothesis.

Ho (3) There is no significant difference between the different taste and preference of consumer behind visit to the shopping malls

Table 7.1

|  |Affordability |Branded item |Trend & Fashion |All under one room|Total |

|1st Prefer |24 |48 |48 |180 |300 |

|2nd |60 |120 |72 |48 |300 |

|Total |84 |168 |120 |228 |600 |

Level of significance = 0.05

Degree of freedom (4-1) (2-1) = 3

Arranging the observed and expected frequencies in the following table to calculate X2 test statistic.

|Observed (O) |Expected (E) |(O-E) |(O-E)2 |(O-E)2/E |

|24 |42 |-18 |324 |7.714 |

|48 |84 |-36 |1296 |15.429 |

|48 |60 |-12 |144 |2.400 |

|180 |114 |66 |4356 |38.211 |

|60 |42 |18 |324 |7.714 |

|120 |84 |36 |1296 |15.429 |

|72 |60 |12 |144 |2.400 |

|48 |114 |-66 |4356 |38.211 |

| | | | |127.507 |

So the calculated value of X2 = 127.507. The critical (table) value of X2 = 6.81 at α = 0.05 and d.f. = 3. Since the calculated value of X2 = 127.507 is much higher than the critical value of X2, we reject the Null Hypothesis this means, there is significant difference between the different taste and preference of consumer behind visit to the shopping malls.

7.4 SUGGESTIONS

“Customer Service is a critical factor for keeping your clients coming back and ensuring they’ll refer you to others”.

1. Growing your business will be a difficult task at best if you don’t perform, meet and exceed your client’s expectations, and provide service that creates customers for life.

2. Customer service is all about the customer’s perception. You have to do more than just get the job done. You must deliver on all the things (big and small) that affect the relationship with your client. Consider opportunities for improvement in the following areas.

3. Setting/Reviewing Expectations: - Do you work with your client to set clear, appropriate, realistic expectations that you can always meet or exceed? Are you clear about the responsibilities (both yours’ and the client’s), timelines, and expectations of results? Are you then willing to go back and review these expectations with the client?

4. Communication: - Do you have mechanisms in place to ensure you’re communicating with clients at every stage of the engagement, from the sales process through to completion of the project? Being clear about where you’re at, what’s been completed, what’s coming up next, who’s responsible, what results you can expect, etc.? Has the client ever had to ask you for these things?

5. Organization: - Are you organized? Punctual? Reliable? When you show up to work with your clients, have you done the work and are you prepared to make them feel comfortable and taken care of? Even though you’ve done it hundreds, maybe thousands of times before, do you take the time to organize and prepare to make it the best client experience possible?

6. Committing to the Little Things: - Don’t ever dismiss the power of all the little things. Together they can make all the difference and really separate you from the competition. Returning calls and emails in a timely manner. Providing useful information to folks on a regular basis.

7. Convert your customers into publicity agents. Develop an incentive for them to tell associates and friends about the value of your products or services. An endorsement from them is more effective than any amount of advertising-and it is much cheaper.

8. Surprise your customers with unexpected value. If you sell products, include an "unadvertised bonus" with every order. If you sell services, get into the habit of doing something extra for every customer or client without charging for it.

9. Reward them each time they refer someone who becomes a customer. Your reward can be as simple as a credit toward their next order from you.

10. The people visiting the store should be encouraged to visit the store again and again. So it is necessary to delight the shoppers with the shopping experience. It has been observed in international shopping malls that there are in-store promotions like lucky draws for entrants surprise winners and so on at random. The purpose of the research is to analyze the “customer attitude towards shopping malls” which is found to be positive.

In the present scenario, making the biggest malls with top class retailers is not the key to success. A cool and refreshing environment is required which makes the shoppers to forget all worries of the day. Malls are here for putting smiles on the face of shoppers. It is non-crucial whether a purchase is made or not, entry into the mall has given the right to courtesy. It should be the USP of the malls as the window shopper of today is the prospective customer of tomorrow. Further, malls should commune a feeling of oneness-with retaining the individuality of each store. Something fresh and novel always attracts shopper‘s attention but raises the bar for future innovation. Thus, malls should be designed in a manner that the new and innovative aspects can be added later on to keep up the consumer‘s delight. Successful malls are those that will adjust its mall culture with the consumer sensitiveness and preferences. Managing consumer attitude and innovation are the keys to stay afloat amid competition. Indubitably, malls have enlarged social fabric, cultural mixture and retail feasibility. And when the core focus is on higher conversion than footfalls, then mixed use and open malls is the way towards accomplishing the aforesaid goal. The opportunities offered by young India exhibits a bright road for malls. These architectural wonders have changed the overall meaning of shopping, leisure and entertainment. Ensuring a relaxing ambience and facilities like seating arrangements for elders to babies is not a child‘s play. But malls managers are performing the tasks with ease. Malls- with a bouquet of value propositions like value for time, value for quality, value for experience, value for money is boosting India in becoming a SHINING STAR of GLOBAL RETAIL.

-------:0:-------

BIBLIOGRAPHY

A.T. Kearney’s Report on Indian Retail, 2008

Abramowitz, D n.d. R 174 m Renovations to Retail Centres Increase Value of ApexHi Portfolio. Accessed online on10 May 2006 at Article= 7210

Agarwal Pulkit, Tyagi Esha, Foreign Direct Investment In retail Sector- An Analysis, 2010

Alexander, A.A & Muhlebach, R.F.(1992). Shopping Center Management, Institute of Real Estate Management, Chicago – Illinois.

Alexander, A.A & Muhlebach, R.F.(1992). Shopping Center Management, Institute of Real Estate Management, Chicago – Illinois.

Amatual Baseer (2007), “Emerging Trends in India”, Indian Journal of Marketing, Vol. XXXVII,No.11.

Anon 2004. Shopping Centre Marketing is an Investment, not an Unnecessary Expense. Accessed online on 29April 2004 at http: //-com/Article/196/11/2232.html.

Anselmsson, J. (2006), Sources of customer satisfaction with shopping malls: A comparative study of different customer segments, The International Review of Retail,Distribution and Consumer Research, 16(1), 115-138

Armstrong J S and Overton T S (1977), Estimating non-response bias in mail surveys, Journal of Marketing Research, 14 (3), 396-402

Aroor, S. and Singh, S.2004, ‘Market Dynamics: Cigarette Retailer as The New King’, The Financial Express, Net Edition, May 4.

Barnes, A. 2002. Shopping Centres – More than Just a Tenant. Shopping South African December 1,7: 11. Bloch, PH, NM Ridgeway & SA Dawson 1994.

Bell, J. & Ternus, K. 2006. Silent selling. 3rd ed. New York: Fairchild Publications.

Bhushan, R.2002, ‘The show begins here’, Business Line, Thursday, December 26.

Binod Kumar Sinha, “Retailing in India: The Way Ahead” written by Faculty Member in ICFAI Business School Raipur.

Bulan Penuh Rahmat, Bulan Penuh Diskon. (2002, November 10). KOMPAS, from Kompas Online Database

Business Day Newspaper 2004. Accessed online on 23 July 2004 at http//businessday.co.za . Cloete, CI 003.

Cant, M. 2010. Introduction to retailing. 2nd ed. Cape Town: Juta.

Cant, M. C., Brink, A. & Brijball, S. 2006. Consumer behaviour. Cape Town: Juta.

Cant, M. C., van Heerden, C. H. & Ngambi, H. C. 2010. Marketing management: A South African Perspective. Cape Town: Juta.

Chandrasekhar, Priya 2001, ‘Retailing in India: Trends and opportunities’, Business Line: Catalyst, February 15.

Colborne, R. 1996. Visual merchandising: The business of merchandising presentation. United States of America: Thomson Learning Inc

Cooper, D.R & Schindler, P.S. (2006). Business Research Methods. 7th edition, Mc Graw Hill, Singapore.

Cutlipp, S.M. (1999). Effective Public Relations, Prentice Hall International, London

Devasahayam, Madona 1998, ‘Big Deal’, Praxis Quarterly Journal on Management, August, Vol.2, No.2.

Dhanabhakyam M, Shanthi A Indian Retail Industry – Its Growth, Challenges and Opportunities, 2010

Dixon, T. and Marston, A. (2005), Taking the shopping centre online: new models in ecommerce, Property Management, 23 (2), 97-109

Dunne, P & Lusch, R.F. (1999). Retailing, The Dryden Press, Fort Worth

Dutt, D.2004, ‘An outlook for Retailing in India, Vision2005’ (Form a presentation by KSA Technopak at MDI Gurgaon in January and February).

El-Adly, M. I. (2007), Shopping malls attractiveness: a segmentation approach,

Finn, A and Louviere, J. (1996). Shopping Center Patronage Models: Fashioning a Consideration Set Segmentation Solution. Journal of Business Research, 21(3), 259 – 275, from ABI/INFORM Global database

Gupta, R., ‘Pharma retailing gains momentum in India’,

Hariharan.G. (2008), “Profile and perception of retail consumers”, Indian Journal of Marketing, Vol.XXXVIII, No.2.

Haynes, J & Talpade, S. (1996). Does Entertainment Draw Shoppers? The Effect of Entertainment Center on Shopping Behavior in Malls. Journal of Shopping Center Research, 3(2), 29-38, from ABI/INFORM Global database

International Journal of Retail & Distribution Management, 35 (11), 936-950

Jagannathan, V.2001, ‘Vivek’s – a store more reputed than the brands it sells’, Business Line, February 5.

Jang, S. S. & Namkung, Y. 2009. Perceived quality, emotions and behavioural intentions: Application of an extended mehrabian-russell model to restaurants. Journal of Business Research, 62: 451

Kannan, S. 2001, ‘Huge potential awaits retailing’, Business line, Thursday, September 13.

Kerfoot, S., Davies, B. & Ward, P. 2003. Visual merchandising and the creation of discernible retail brands. International Journal of Retail & Distribution Management, 31(3):143-152.

Kotler, P. (2004). Marketing Management. 11th edition, Prentice Hall, Englewood, New Jersey.

Krafft M and Mantrala, Murali K (eds), (2010), Retailing in the 21st Century: Current and Future Trends, US

Kuruvilla, S. J. and Ganguli, J. (2008), Mall development and operations: An Indian perspective, Journal of Retail and Leisure Property, 7 (3), 204-215

Levi, E. & Weitz, S. 2009. Retailing management. 7th ed. New York: McGraw Hill.

Levy, M & Weitz, B.A. (2007). Retailing Management. 6th edition, Irwin Mc Graw Hill, Chicago.

Maholtra, K. N. (1996). Applied Marketing Research. 2nd edition, Prentice Hall, New Jersey.

Maier, R. 2010. Visual merchandising with mannequins. [Online] Available from: 490182_ 64.html [Accessed: 2011-01-18].

Majumdar, S.2002, ‘FDI in retailing: India as a supermarket’, Business Line, Tuesday, Sep17.

Mariton, John. Smart Things to Know about Brands and Branding .Mumbai, Indian Books Distributors Limited, 2000.

Mathew, R. 2008. Apparel Merchandising. New Delhi: Book Enclave.

Mc Daniel, C. & Gates, R. 2001. 3rd ed. Marketing research essentials. United States of America: South Western

Pegler, M. 2010. Visual merchandising and display. 5th ed. China: Fairchild publications.

Plummer, J.T. (1974). The Concept and Application of Lifestyle Segmentation. Journal of Marketing, 38, 33-37. January 1974, from ABI/INFORM Global database

Pradhan, S. 2008. Retailing management. 11th ed. India: McGraw Hill.

Rajagopal (2009), Growing Shopping Malls and Behavior of Urban Consumers, Journal of Retail and Leisure Property, 8 (2), 99-118

Rajagopal, D 2006. Leisure Shopping Behavior and Recreational Retailing: A Symbiotic Analysis of Marketplace Strategy and Consumer Response. accessed online on 14 June 2010 at .

Retail Marketing Management. Hemel Hempstead: Prentice Hall. Guy, C 1994.

Sanjeev Kumar Retail Industry: Where does India Stand? at ? F=9

Schiffman, L.J & Kanuk, L.L. (2004). Consumer Behavior. 7th edition, Prentice Hall, Upple Sadle River, New Jersey

Sharma, A. & Stafford, T.F. 2000. The Effect of Retail Atmospherics on Consumers’ Perceptions of Salespeople and Consumer Persuasion: An Empirical Investigation. Journal of Business Research, 49: 183–191.

Shopping Centre Management in South Africa. South African Council of Shopping Centres. Dardagan, C 2006.

Sit, J., Merillees, B., & Birch, D. (2003). Entertainment Seeking Shopping Center Patrons: The Missing Segment. International Journal of Retail and Distribution Management, 31, 80-94, from ABI/INFORM Global database

Soriano, V.V. (2003). Cross Shopping Trends between Store Formats. The ISCS (International Council of Shopping Center). Research Quarterly. Vol.10, No.3, from:

The Economic Times Knowledge Series : Retail 2000-2001",New Delhi: Times Multimedia,2001

The Shopping Mall as Consumer Habitat. Journal of Retailing Spring, 70,1: 23-42. Brassington, F & S Pettitt 2003. Principles of Marketing. 3rd Edition. Essex: Prentice Hall, Pearson Education Limited.

Tullman, M., Clark, & R. Rose, K. 2004. Revitalizing visual merchandising. Chain store age, 80(7): 66-68.

Turley, L. W. & Ronald, E. M. 2000. Atmospheric effects on shopping behavior: A review of the experimental evidence. Journal of business research, 49: 193-211.

Tustin, D. H., Ligthelm, A., Martins, J. H. & Van Wyk, H De J. 2005. Marketing research in practice. South Africa: ABC Press.

Wakefield, K & Baker, J. (1998). Excvariableent at the Mall: Determinants and Effects on Shopping Response. Journal of Retailing, 74(4), 515-539, from ABI/INFORM Global database

Weiers, R.M. (1988). Marketing Research. 2nd edition, Prentice Hall, Englewood Cliffs – New Jersey

Wiid, J. A. & Diggines, C. 2009. Marketing research. South Africa: Print communication.

Wilmshurst, J & Adrian Mackay 2002. The Fundamentals and Practice of Marketing. 4th edition. Oxford: Butterworth Heinemann.

Wilson, N 2006. Soweto’s Buying Power Boosts Mall Development.

Zikmund, G. & Babin, B. J. 2010. Exploring marketing research. 10th ed. China: South Western.

-------:0:-------

Appendix

Questionnaire

Good ……………….. , we are conducting a survey to find out the impact of communication strategy on consumer behavior for apparels in shopping malls. I would like to ask you for some information.

Male Female

Q1. Shopping malls are visited by age group of

i. 16 – 20

ii. 20 – 30

iii. 30 – 40

iv. 40 – 50

v. 50 & above

Q 2 What is your profession?

i. Student

ii. Businessman

iii. Professional

iv. Government employee

v. Housewife

vi. Others

Q3. What is your approx monthly income?

i. Up to Rs. 10,000

ii. 10,000 – 20,000

iii. 20,000 – 30,000

iv. 30,000 – 40,000

v. Above 40,000

Q4 Why do you come to the shopping mall?

i. Shopping

ii. Entertainment

iii. Window Shopping

Q5. How many times a month do you come to the shopping mall?

i. Daily

ii. Weekly

iii. Fortnightly

iv. Monthly

Q6 Taste and Preference of Consumer according to –

| |Affordability |Branded |Trend & Fashion |All under one room |

|1st pref | | | | |

|2nd | | | | |

|3rd | | | | |

|4th | | | | |

Q 7 Which place do you prefer most for shopping?

i. Kirana Store

ii. Shopping Malls

iii. Local Market

iv. Showrooms

Q 8 Location of shopping mall affects the perception of consumer about Mall?

i. Yes

ii. No

iii. Can’t say

Q 9 Satisfaction with the different facility of the Mall?

| |Excellent |Good |Average |Poor |

|Parking facility | | | | |

|Quality of Services | | | | |

|Quality of Product | | | | |

|Value for money | | | | |

Q 10 Layout of the shopping mall is satisfactory for all age - group?

i. Yes

ii. No

iii. Can’t say

Q 11 Which facilities do you like most?

i. Delivery Services

ii. Credit facility

iii. Transportation facility

Q 12 Shopping malls always provide better services?

i. Always

ii. Sometime

iii. Never

Q 13 Is ethical marketing practices followed by Malls?

i. Yes

ii. No

iii. Can’t say

Q 14 Are you satisfied with the price of the product as well as quality of the product?

| |Yes |No |

|Quality | | |

|Price | | |

Q15. Do you feel you are more aware of brands since the opening of the shopping malls?

i. Yes

ii. No

iii. Can’t say

Q16. Do you feel that big brands offer more value for money?

i. Yes

ii. No

iii. Can’t say

Q17. Have you bought any branded item from the shopping mall in the past one year?

i. Yes

ii. No

iii. Can’t say

Q18. What is the approximate cost of the item you purchased?

i. Less than 1000

ii. 1000 > 5000

iii. 5000 >10,000

iv. 10,000 > 50,000

v. More than 50,000

Q 19 Every time you visit the shopping mall, do you visit the food court?

i. Yes

ii. No

Q 20 What is the kind of food / beverage you like to consume?

i. Chinese

ii. Non Veg

iii. Cold Drinks

iv. Coffee

v. Ice – Cream

vi. Fast Food

vii. Continental

viii. South Indian

Q 21 Do you feel food at the malls is more expensive?

i. Yes

ii. No

iii. Can’t say

Q 22 Do you feel you are eating out more often now than a year back?

i. Yes

ii. No

iii. Can’t say

Q 23 Are you satisfied with the safe-guarding taken by Malls for publics?

i. Yes

ii. No

iii. Can’t say

Q 24 What is the major Drawback in shopping malls?

i. Expensive

ii. Parking facility

iii. Weekend rush

iv. Others

-------:0:-------

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download