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A Study of Consumer Behavior in Selected

Shopping Malls of Chandigarh


By

Jitender Singh
Under the guidance of
DrS.K.Chadha

Submitted
to
University Business
School Panjab
University Chandigarh
In partial fulfilment of the
requirements for the degree of
Masters of Business
Administration

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DECLARATION

I hereby certify that the work which is presented in the project entitled A Study of
Consumer Behaviour in Selected Shopping Malls of chandigarh, in fulfillment of the
requirement for the award of the Degree of Master of Business Administration to be
submitted at the
University Business School, Chandigarh is an authentic record of my own work carried out
during 2nd year under the supervision of Dr.Suresh.K.Chadha, Professor, University
Business School, Chandigarh. The matter presented in this report has not been submitted by
me for the award of any other degree of this or any other Institute/University.

Name:Jitender Singh
Place: Chandigarh
Date: April 04, 2012

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CERTIFICATE
This is to certify that Mr.Jitender Singh, a student of Master of Business Administration
(General) 4th semester at University Business School, Panjab University, Chandigarh, has
undertaken a project on A Study of Consumer Behaviour in Selected Shopping Malls
of
Chandigarh
in partial fulfilment of the requirement of Master of Business
Administration
Program(2009-2011).

The project has been successfully completed under my supervision and guidance. This
research project is the original work of the student.

Dr.S.K.Chadha,

Date: April 04, 2012

Professor
University Business School,
Panjab University, Chandigarh.

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ACKNOWLEDGEMENT

I avail this opportunity to express my profound sense of sincere and deep gratitude to many
people who are responsible for the knowledge and experience I have gained during the
project work.
I extend my overwhelming gratitude to Dr. Suresh. K. Chadha, faculty University Business
School, for his valuable guidance, intellectual contribution; encouragement and meticulous
supervision during the preparation of this Project Report in spite of his busy schedule. I
would also profoundly thank Dr Navdeep Kaur and Dr VaneetaAgarwa, faculty University
Business School for providing the valuable inputs during project review sessions.
My hearty and inevitable thanks to all the respondents who helped me to bring out the project
in a successful manner. I would also like to extend my gratitude towards my parents, faculties
and friends who extended their wholehearted support towards the successful completion of
this Project Work.

Jitender Sin
gh

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EXECUTIVE SUMMARY
Retail sector in India has seen an unprecedented growth with the compounded annual growth
rate of 46%. The India Retail Industry is the largest among all the industries, accounting for
over 10 per cent of the countrys GDP and around 8 per cent of the employment.
Purchasing
power of Indian urban consumer is growing and branded merchandise is slowly becoming
lifestyle products that are widely accepted by the urban Indian consumer. There is no doubt
that the Indian retail scene is booming.
This research aims at studying the shoppers experience in a shopping mall and factors which
lead to satisfaction of shopper.
Specific objectives of this study can stated as

To identify the prominent factors influencing the consumers shopping


behaviour.

To segment the consumers on the basis shopping style and mall attributes.

Descriptive research was used to understand the consumer behaviour. The proposed research
is developed from quantitative point of view. In this study, an effort has been shown to
exhibit the various mall attributes and shopping style affecting the preference of a shopping
mall by the residents of tri-city. Factor analysis is used to extract the factors which are
important for customers; further cluster analysis was carried out on these extracted factors in
order to segment the customers in various categories depending upon the relative importance
given to each factor. Cluster analysis was carried out on consumer shopping style variables
also and customers were segmented into four categories. A total of 136 meaningful responses
were recorded for this research study.
As the consumers purchasing power is increasing and companies are competing with
each other to tap the huge market potential it becomes imperative to understand the
consumers perception and its possible implications for success of shopping mall.
Consumers values and attitude also have impact on his satisfaction level so it become
imperative to study consumer
life style and shopping preferences to provide better service to him.
This study can help identify the prominent factors leading to customer satisfaction and will
help mall owners to segment the consumer in order to cater their needs in better manner.

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CONTENTS
DECLARATION ..........................................................................................................
...........................

CERTIFICATE

.................................................................................................................................
......

ii

ACKNOWLEDGEMENT

.....................................................................................................................
EXECUTIVE

iii

SUMMARY

................................................................................................................... iv LIST
OF

TABLES

................................................................................................................................
vii
1.
INTRODUCTION
.............................................................................................................................. 1
2.
LITERATURE
REVIEW
................................................................................................................... 9
3.
RESEARCH
METHODOLOGY......................................................................................................
14
4.
DATA
ANALYSIS
AND
.............................................................................. 21

INTERPRETATION

5
CONCLUSION
.................................................................................................................................
. 45

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5.1
Findings....................................................................................................................
................... 45
5.2 Recommendations and Managerial Implications
........................................................................ 46
5.3 Limitations of the
Study.............................................................................................................. 46
5.4 Suggestion for Further
Research................................................................................................. 46
REFERENCES ..............................................................................................................
....................... 48
ANNEXURE
1.................................................................................................................................
..... 50
ANNEXURE
2.................................................................................................................................
..... 52
ANNEXURE
3.................................................................................................................................
..... 53

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LIST OF TABLES

Topics

Page

Table 3.1 Reliability Statistics ..

15

Table 3.2 Shopping Mall Correspondent Data ..

16

Table 3.3 Frequency Table of Age Wise Distribution

17

Table 3.3 Frequency Table of Household Income Wise Distribution..

17

Table 4.1 KMO and Bartlett's Test.

21

Table 4.2 Principal Component Analysis..

22

Table 4.3 Rotated Component Matrix

23

Table 4.4 Agglomeration Schedule of Cluster Analysis.

30

Table 4.5 Number of Cases in each Cluster

31

Table 4.6 Initial Cluster Centres..

31

Table 4.7 Final Cluster Centres

32

Table 4.8 Agglomeration Schedule of cluster Analysis for extracted factors

38

Table 4.9 Number of Cases in each Cluster for extracted factors..

38

Table 4.10 Initial Cluster Centres for extracted factors.

38

Table 4.11 Final Cluster Centres for extracted factors

39

Table 4.13 Relationship between Shopping Style and Gender ...

40

Table 4.14 Relationship between Shopping Style and Age Group.

41

Table 4.15 Relationship between Shopping Style and Household Income.

42

Table 4.16 Relationship between Mall Attributes and Gender

43

Table 4.17 Relationship between Mall Attributes and Age Group.

44

Table 4.18 Relationship between Mall Attributes and Household Income.

44

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1. INTRODUCTION
1.1 Background
The Indian retail industry is divided into organised and unorganised sectors. Organised
retailing refers to trading activities undertaken by licensed retailers, that is, those who are
registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets
and retail chains, and also the privately owned large retail businesses. Unorganised retailing,
on the other hand, refers to the traditional formats of low-cost retailing, for example, the local
kirana shops, owner manned general stores, paan/beedi shops, convenience stores, hand cart
and pavement vendors, etc.(7)
The Indian retail industry is presently experiencing exponential growth and has been reported
as one of the top five fastest growing retail destinations globally with 46.6% of compounded
annual growth. For a long time the corner grocery store was the only choice available to the
consumer, especially in urban areas. This is slowly giving way to international formats of
retailing. But the organised retail sector accounts for only 5% of the total retail trade in India.
Retail is Indias largest industry sector, and generates more than 10% of Indias GDP
and
around 8 per cent of the employment. (1)
Technopak research shows that by 2020, almost 35% of Indianpopulation will be living in
urban centres which will contribute to ~ 65% to the GDP. Set to grow threefold in the next
five years, organised retail is even now experiencing the expansion phase. Currently Retail is
$450 bn market. Out of which organised retail accounts for $ 20 bn.(1)
International retailers see India as the last retailing frontier left as the Chinas retail
sector is
becoming saturated. However, the Indian Government restrictions on the FDI are creating
ripples among the international players like Walmart, Tesco and many other retail giants
struggling to enter Indian markets. As of now the Government has allowed only 51 per cent
FDI in the sector to one-brand

shops like Nike, Reebok etc. However,

other

international
players are taking alternative routes to enter the Indian retail market indirectly via strategic
licensing agreement, franchisee agreement and cash and carry wholesale trading (since 100
per cent FDI is allowed in wholesale trading). (7)

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The trends that are driving the growth of the retail sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items (CHART)

Source: ibef
Another credible factor in the prospects of the retail sector in India is the increase in the
young working population. In India, hefty pay packets, nuclear families in urban areas,
along with increasing working-women population and emerging opportunities in the
services sector. These key factors have been the growth drivers of the organized retail
sector in India which now boast of retailing almost all the preferences of life - Apparel &
Accessories, Appliances, Electronics, Cosmetics and Toiletries, Home & Office Products,
Travel and Leisure and many more. With this the retail sector in India is witnessing
rejuvenation as traditional markets make way for new formats such as departmental stores,
hypermarket,

supermarkets

and

specialty

stores.

The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially
the malls, the Tier II cities are no longer behind in the race. If development plans till 2007
is studied it shows the projection of 220 shopping malls, with 139 malls in metros and the
remaining 81 in the Tier II cities. The government of states like Delhi and National
Capital Region (NCR) are very upbeat about permitting the use of land for commercial
development thus increasing the availability of land for retail space; thus making NCR
render to 50% of the malls in India.
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Source: ibef
Malls
The largest form of organized retailing today. Located mainly in metro cities, in proximity to
urban outskirts. Ranges from 60,000 sqft to 7,00,000sqft and above. They lend an ideal
shopping experience with an amalgamation of product, service and entertainment, all under a
common roof. Examples include Shoppers Stop, Piramyd, and Pantaloon.
Malls are springing up in every city and are fast becoming sought-after entertainment
hotspots, with shopping as the by-product. From a situation where there were no malls about
a decade ago, the country will have over 300 malls translating to over 100 million sq.ft. in
available mall space by the end of 2007.
The Indian Governments initiatives to aid growth in the retail sector are showing very
visible
results. Investment in world-class infrastructure is expected to be close to USD 150 bn.

The hitherto restricted retail real estate sector was opened up for Foreign Direct
Investment in 2005. As a result, malls of international scale and quality are expected to
come up;

Mall growth is being seen as a clear indicator of the economic prosperity in India.
Significantly, the number of malls in the country has increased at a fast pace. And they
are doing brisk business. A trip to the local mall (there will be one in every locality
soon!) will bear this out;

From almost no malls existing in the country over a decade ago, there were 96
operational malls in August 2005;

Heres more good news. This phenomenon is not restricted to major cities of

the
country alone. It has percolated to the Tier II and Tier III cities as well.
The
contribution of Tier II cities in organized retail sales is expected to be about 20 25%.
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Mumbai, Bangalore, Hyderabad, Pune and New Delhi are expected to have nearly 75%
of the retail space in the country

Niche, speciality malls, discount malls, highway malls are the new trends (16)

Large format malls to see highest growth in South India


According to Kumar Rajagopalan, chief executive officer, Retailers Association of India
(RAI), retail space is cheaper in South India. Retail rentals in the NCR and Mumbai have
gone up three times between financial year 2006-07 and 2008-09 compared to the figures in
South and East. High rentals naturally come as a disincentive for setting up new retail
properties.
In the South, retail rental rates vary between Rs 50 per sqft to Rs 150/200 per sqft depending
from one region to another. In comparison to Mumbai and NCR, retail rental rates in Chennai
and Bangalore are cheaper by 50-60%.
A report by leading international property consultants, Jones Lang LaSalle Meghraj and
Cushman & Wakefield India in association with Shopping Centres Association of India,
named Mall Realities India 2010, states that over 100 malls of over 30 million sq feet of new
shopping centre space are projected to open in India between 2009 and end-2010.
BappadityaBasu, vice president - retail, Jones Lang LaSalle Meghraj (JLLM) too agrees that
because of high real estate costs, North India is not a preferred destination for large format
and departmental stores, but there is a growing demand for luxury goods. The ones that are
looking to expand in this region are luxury brands like Zara and white goods brands like
Croma. Aditya Birla is also looking to open up a few stores in some parts of North
India,
provided that they get appropriate properties at the correct prices. East India is typically a
spendthrift economy and retail per se has not expanded beyond Kolkata. Future Group is the
only player currently bullish on East India because of its value format. In South India, Future
Group, Aditya Birla, Tata and Reliance are all keen on increasing their retail footprint,
Basu
adds.
Post the release of this report, JLLM has recently done a realty check on the region-specific
upcoming mall projects. In South, while Isckon Charities is setting up Gokulam Mall in
Bangalore, Marg Constructions is developing Riverside mall in Chennai. Indu Projects is
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setting up Indu Mall and IJM is constructing IJM Mall in Hyderabad. ETL is constructing
ETL Central Mall in Coimbatore.
DLF Brands -- the retail and lifestyle division of DLF Ltd-plans to set up fourth store apart
from introducing DKNY jeans to India soon after opening three Donna Karan New York
(DKNY) stores in Delhi. In West, K Raheja Constructions is developing Infinity 2 mall at
Malad in Mumbai, Satra Property is setting up Dreams in Mumbai. Meanwhile, a Market
City mall in Kurla, Mumbai is coming up from Marketcity Developers. Paranjpe Schemes is
setting up Xion mall at Hinjewadi in Pune. DLF is setting up DLF Mall in Lower Parel in
Mumbai.
Kshitij Investment Advisory Company (KIAC), the real estate arm of Future Group, is
planning to set up two malls in the East by mid-2010, said a company source on promise of
anonymity. While J P Infrastructure (P) ltd and Prozone Enterprises (P) Ltd are setting up
Prozone Mall in Aurangabad.
Adidas India Marketing Pvt Ltd is planning to set up 200 branded stores which will include
maximum Adidas shop-in-shop formats and a few flagship stores in top 80 cities in India
in this financial year. This is mainly because retail rentals have fallen sharply,
says
TusharGoculdas its director - marketing and sales. Meanwhile, Portico New York, a brand by
Creative Portico (India) too is planning to set up 160 Portico branded shop-in-shop retail
formats and thereby increase penetration in North and South India, according to Chandan S,
its senior general manager-retail and marketing. (18)
SpecialtyStores
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword,RPG's
Music World and the Times Group's music chain Planet M, are focusing on specific market
segments and have established themselves strongly in their sectors.
A large young working population with median age of 24 years, nuclear families in urban
areas, along with increasing workingwomen population and emerging opportunities in the
services sector are going to be the key factors in the growth of the organized Retail sector in
India. The growth pattern in organized retailing and in the consumption made by the Indian
population will follow a rising graph helping the newer businessmen to enter the India Retail
Industry. (6)
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Urbanization and increased incomes have been important in the rise of supermarkets, other
factors also played important roles. A crucial factor was the liberalization of retail foreign
direct investment (FDI), which sparked an avalanche of FDI (and competitive or at times
anticipatory domestic investments) through the 1990s and into the 2000s. Intense
competition, consolidation, and multinationalization in the supermarket sector have also
accelerated the spread of supermarket chains seeking to improve their competitive
positioning. In addition, domestic policies have often included tax incentives for
supermarkets and hygiene and location regulations for wetmarkets.(2)

The total concept and idea of shopping has undergone tremendous change in terms of format
and consumer buying behaviour, ushering in a revolution in shopping in India. Modern
retailing has entered into the Retail market in India as is observed in the form of bustling
shopping centres, multi-storied malls and the huge complexes that offer shopping,
entertainment and food all under one roof.
The retailing configuration in India is fast developing as shopping malls are increasingly
becoming familiar in large cities. When it comes to development of retail space specially the
malls, the Tier II cities are no longer behind in the race. If development plans till 2007 is
studied it shows the projection of 220 shopping malls, with 139 malls in metros and the
remaining 81 in the Tier II cities. (2)
The BMI India Retail Report for the fourth quarter of 2011 forecasts that total retail sales will
grow from US$ 411.28 billion in 2011 to US$ 804.06 billion by 2015. Robust economic
growth, population growth, the increasing wealth of individuals and the speedy construction
of organised retail infrastructure are key factors behind the forecast growth. As well as an
expanding middle and upper class consumer base, there will also be opportunities in India's
Tier-2 and Tier-3 cities. The greater availability of personal credit and a growing vehicle
population providing improved mobility also contribute to a trend of 11.9 per cent annual
retail sales growth. Tourism is also a major contributor to the Indian retail sector.
The country's franchise market is growing at a healthy pace of over 30 per cent per annum
with Tier-2 and Tier-3 cities gradually getting attracted to the network of retailers and
franchisers.

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"Franchising in India has witnessed impressive growth of around 30-35 per cent year-afteryear over the last 4-5 years with an estimated turnover of $4 billion. It is helping transform
good ideas into businesses. The FRO serves as a platform to identify, foster and
commercialise innovative business start-up ideas and to meet the demands of today's dynamic
entrepreneurial arena." according to GauravMarya, President, Franchise India.
According to study carried out by Assocham, a whooping Rs. 1,31,804crore has been
invested in organised retailing in last 6 months alone.
Here are some of the highlights of that study:

Organized retail growing at estimated 25%; set to penetrate tier II and tier III cities
like Pune, Chandigarh and Hyderabad; investment worth Rs27,550 crore announced

Real estate companies like Unitech and DLF draw up plans that cater to growing demand
of shopping malls; capex of Rs65,000 planned to be invested in real estate
development for retail space in next four to five years; food and grocery is next big
retail segment with investment plan of Rs22,100 crore

Hyper marts will soon dot the Indian retail space with investment announcements of
Rs29,154 crore expected to set them up

Companies like Reliance Retail have set aside Rs24,000 crore for setting up hyper marts
by 2010-11 in National Capital Region; Spencer retail announced capex of Rs3000 crore
for expanding its retail outlet and setting up hyper marts by 2010

Increased competition among food & grocery retailers will provide better services to
users; capex of Rs22,100 crore planned to set up chains of food and grocery stores in next
three years

Past six months witnessed major expansion in textile and apparel segment by large
retailers including Provogue, Trent and Arvind Mills drawing up an investment chart of
Rs7,900 crore for setting up new stores in Pune, Hyderabad, Navi Mumbai

Job creation centres of the future will be cities like Hyderabad, Pune, Surat and
Chandigarh among others (17)

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1.2 Need of the Study


Retail sector in India has seen an unprecedented growth with the compounded annual growth
rate of 46%. The India Retail Industry is the largest among all the industries, accounting for
over 10 per cent of the countrys GDP and around 8 per cent of the employment.
Purchasing
power of Indian urban consumer is growing and branded merchandise is slowly becoming
lifestyle products that are widely accepted by the urban Indian consumer. There is no doubt
that the Indian retail scene is booming. A number of large corporate

houses like

Tatas,
Rahejas, Piramalss, Goenkas have already made their foray into this
arena.
As the consumers purchasing power is increasing and companies are competing with
each other to tap the huge market potential it becomes imperative to understand the
consumers perception and its possible implications for success of shopping mall. Due to
intensified
competition it is becoming difficult for a consumer to choose the shopping destination. There
is increasing pressure on shopping mall to reflect a better image in mind of customers which
can provide them sustainable competitive advantage.
Consumers values and attitude also have impact on his satisfaction level so it
become
imperative to study consumer life style and shopping preferences to provide better service to
him.
This study can help identify the prominent factors leading to customer satisfaction and will
help mall owners to segment the consumer in order to cater their needs in better manner.

1.3 Research Objectives


This research aims at studying the shoppers experience in a shopping mall and factors which
lead to satisfaction of shopper.
Specific objectives of this study can stated as
1. To identify the prominent factors influencing theconsumers shopping behaviour.
2. To segment the consumers on the basis shopping style and mall attributes.

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2. LITERATURE REVIEW

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3. RESEARCH METHODOLOGY

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4. DATA ANALYSIS AND INTERPRETATION


4.1 Factor Analysis
Two stage factor analysiswas used to for finding and categorizing the factors in SPSS17.
Stage 1 can be called the factor extraction process and stage 2 is called rotation of principal
components. Using SPSS17, we get a combination of variables whose shared correlation
explains the greatest amount of the total variance. This is called factor 1. The factor analysis
will then extract a second factor. This is the combination of the variables that explains the
greatest amount of variance remains, i.e. variation after first factor is extracted. This is called
factor 2. The same procedure continues for third factor, fourth factor and so on until as many
factors have been extracted as there are variables.
The study included 19 variables to understand the importance of the various attributes of the
mall which could have an impact on a consumers choice of shopping malls. Using SPSS
17 we get an output showing an eigen value appearing to the right of the factor number.

KMO and Bartlett's Test


Kaiser-Meyer-Olkin Measure of Sampling Adequacy.
Bartlett's Test of Sphericity

Approx. Chi-Square

.595
332.630

df

171

Sig.

.000

Table 4.1

The KMO value came out to be 0.595 as shown in table 4.1 which is greater than 0.5, the
minimum value required for estimating the appropriateness of factor analysis. So factor
analysis can be applied for the given data.

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Table 4.2
Extraction Method: Principal Component Analysis.
The Eigen values are designed to show the proportion of variance accounted for by each
factor. The higher the Eigen value of a factor, the higher is the amount of variance explained
by that factor. The first Eigen value will be always the largest because the first factor will
explain the greatest amount of total variance.
As shown in table 4.2 the first five components explain the 70% of the total variance. The
first five principle components formed the extracted solution.
Once the factors have rotated the next is to rotate them. The goal is to rotate the axes to have
data points as close as possible to the rotated axes. Varimax rotation procedure was used in
present case. Varimax method is an orthogonal rotation method that minimizes the number of
variables that have high loadings on each factor. This method simplifies the interpretation of
the factors. The rotation maintains the cumulative percentage of variation explained by the
extracted components.

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Rotated Component Matrix

Component
1
Presence of large number of

.432

-.020

.205

-.388

-.217

.444

.250

-.071

.708

-.132

.145

.820

-.021

-.043

-.100

.196

-.171

.292

.512

-.036

.040

.073

.047

.007

.058

.059

.908

-.167

.065

.067

.941

.025

.529

.609

.086

-.808

-.376

-.137

.007

-.063

.714

-.133

.969

.053

.065

-.001

.092

.118

.028

.777

-.106

.071

-.036

-.041

.025

.089

.899

.045

.197

.911

-.065

.435

.124

.142

-.196

.354

.737

.103

.036

.198

.343

.021

.073

.047

.007

.908

brands
It is important to have a mall
closest to my place
It is important to have multiplex
and gaming zone at the Mall.
Presence of bench/Chair at
Shopping Mall.
Mall layout should aid in

.904

reaching all the stores easily.


Cleanliness of the mall is

-.078

important.
Restrooms should be neat and

.150

clean and properly maintained.


Good food court at shopping
Mall is very important.
Adequate parking space is very
important for me.
Ambience of the mall is
important for me.
Presence of security features at
shopping Mall
Proper signs and symbols should
be provided to guide the
shoppers.
It is important is for shopping

-.044

Mall to provide fire and other


safety features to shoppers.
Credit facility should be
provided
Availability of shopping cart for
shoppers.
Does architecture of Shopping
Mall matters to you?

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Do you think Malls should have

-.126

.715

.112

-.056

.195

.111

.002

.776

.351

.422

.086

.075

.068

their own websites to update


shoppers about new schemes
and available products?
Escalators should be provided in

-.052

malls
Mall should be air-conditioned

.004

Extraction Method: Principal Component Analysis.


Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.

Table 4.3

4.2 Interpretation of Factor Analysis


The rotated component matrix helps us to determine what the components represent. As
shown by the rotated component matrix, the factor analysis process extracted five factors
which explained all the variables. The extracted five factors explained all the variables which
are given above.

1) Convenience: the first component represents convenience and comfort through the
manifest variables viz.

Convience
Presence of bench/Chair at Shopping Mall.
It is important to have a mall closest to my place
Adequate parking space is very important for me.
Escalators should be provided in malls

P
Value
0.512
0.708
0 .714
0.776

The consumer is comfort seekingshopper who gives higher significance to pragmatic


accessibility and other practical aspects and lesser importance to merely amusement in a
shopping mall. This is a section of consumers who is looking for mall accessibility. The mall
should be near to their place and adequate parking space is required to avoid any
inconvenience. This factor accounts for 9% of total variance.

1
4

2) Entertainment: the second component representsentertainment through multiplex


food court etc. these are the key variables affecting the choice of shoppers. This factor
accounts for more than 17% of total variance.

ENTERTAINMENT
It is important to have multiplex and gaming zone at the Mall.
Good food court at shopping Mall is very important.
Do you think Malls should have their own websites to update shoppers about
new schemes and available products?
Mall should be air-conditioned

P value
0.82
0.609
0.715
0.351

3) Shopaholics
SHOPAHOLICS
Presence of large number of brands
Availability of shopping cart for shoppers.
Credit facility should be provided
Ambience of the mall is important for me.

P value
0.432
0.737
0.435
0.969

This category of respondents is serious customers for shopping malls. They prefer large
number of brands and also demand credit facility in order to cater their needs. Mall ambience
also affects their choice of shopping mall. This factor accounts for more than 25% of total
variance. This explains the largest variation.
4) Physical Evidence Seekers
PHYSICAL EVIDENCE SEEKERS
Cleanliness of the mall is important.
Restrooms should be neat and clean and properly maintained.
Presence of security features at shopping Mall is important for me.
It is important is for shopping Mall to provide fire and other safety features
to shoppers.

P value
0.908
0.941
0.777
0.911

This category of respondents gives importance to housekeeping and other physical evidence.
Clean restroom and safety features matters to them a lot. This factor accounts for 10% of total
variance.

5) Service
Service

P value
0.904
0.908
0.899

Mall layout should aid in reaching all the stores easily.


Does architecture of Shopping Mall matters to you?
Proper signs and symbols should be provided to guide the shoppers.

This component represents prompt service inside the mall stores. Easy accessibility,
architecture and proper sign and symbols for guiding the shoppers to the right stores matters
to them. This factor accounts for 6.6% of total variance.

4.3 Cluster Analysis


Cluster analysis was conducted on shopping style statements. Cluster analysis to will help to
segment the consumer group according to similarity in their shopping styles. This pattern will
guide the mall owners to understand the characteristics of respondents and thus design the
marketing mix for the segmented users.
First, Hierarchical clustering was carried out. This was done in order to find out the number
of clusters that exist in the data. The basic output of this exercise is the agglomeration
schedule, which eventually aggregates the 136 respondents into one cluster, going stage by
stage. The agglomeration schedule are shown in table 4.4.
The first column in Table 4.4represents the stages, total number of which is always one less
than the number of respondents or objects. The squared Euclidean distance between these two
respondents is given under the fourth column labeled Coefficients.

The next two

columns
titled Stage Cluster First Appears indicate the stage at which a cluster is formed. The
last
column Next Stage indicates the stage at which another respondent or cluster is
combined
with the present one.
Agglomeration Schedule
Cluster Combined
Stage

Cluster 1

Stage Cluster First Appears

Cluster 2

Coefficients

Cluster 1

Next Stage

Cluster 2

18

133

.000

17

121

.000

105

120

.000

118

80

115

.000

35

75

110

.000

18

72

107

.000

69

25

88

.000

47

21

136

.500

85

85

134

1.000

75

10

17

132

1.500

108

11

11

126

2.000

106

12

10

125

2.500

59

13

83

118

3.000

70

14

82

117

3.500

20

15

74

109

4.000

100

16

48

81

4.500

58

17

18

79

5.167

19

18

67

75

5.833

68

19

18

23

6.667

17

95

20

46

82

7.500

14

89

21

124

131

8.500

71

22

100

123

9.500

61

23

113

114

10.500

86

24

77

112

11.500

63

25

76

111

12.500

48

26

106

13.500

60

27

94

97

14.500

76

28

49

84

15.500

62

29

36

70

16.500

47

30

64

68

17.500

68

31

57

66

18.500

32

32

54

57

19.500

31

77

33

47

50

20.500

72

34

19

27

21.500

49

35

80

98

22.833

111

36

56

135

24.333

66

37

86

129

25.833

51

38

87

116

27.333

79

39

65

108

28.833

52

40

95

96

30.333

50

41

71

73

31.833

99

42

55

63

33.333

75

43

52

62

34.833

67

44

39

44

36.333

80

45

40

41

37.833

108

46

28

38

39.333

69

47

25

36

40.833

29

81

48

30

76

42.500

25

93

49

19

44.167

34

115

50

61

95

46.000

40

64

51

51

86

47.833

37

78

52

14

65

49.667

39

77

53

15

130

51.667

112

54

13

128

53.667

101

55

12

127

55.667

92

56

35

60

57.667

83

57

32

45

59.667

84

58

48

53

61.833

16

67

59

10

24

64.000

12

94

60

105

66.333

26

97

61

100

104

68.667

22

88

62

49

93

71.000

28

98

63

59

77

73.333

24

81

64

26

61

75.750

50

88

65

43

78

78.250

86

66

20

56

80.750

36

87

67

48

52

83.383

58

43

98

68

64

67

86.117

30

18

90

69

28

72

88.867

46

104

70

29

83

91.700

13

85

71

124

94.700

21

110

72

47

122

97.700

33

79

73

58

103

100.700

101

74

92

99

103.700

106

75

55

85

106.700

42

96

76

94

101

110.367

27

102

77

14

54

114.033

52

32

97

78

51

117.700

51

112

79

47

87

121.400

72

38

109

80

33

39

125.233

44

104

81

25

59

129.114

47

63

93

82

69

119

133.114

107

83

31

35

137.114

56

100

84

32

141.114

57

103

85

21

29

145.281

70

111

86

43

113

149.531

65

23

105

87

20

91

153.781

66

117

88

26

100

158.126

64

61

102

89

42

46

162.543

20

113

90

16

64

166.976

68

116

91

34

89

171.476

118

92

12

176.143

55

103

93

25

30

180.862

81

48

99

94

10

102

185.695

59

117

95

18

22

190.595

19

114

96

55

90

195.595

75

120

97

14

201.040

60

77

113

98

48

49

207.156

67

62

120

99

25

71

213.390

93

41

119

100

31

74

219.690

83

15

114

101

13

58

226.190

54

73

122

102

26

94

232.694

88

76

110

103

239.361

84

92

121

104

28

33

246.349

69

80

124

105

43

253.433

86

115

106

11

92

260.683

11

74

123

107

69

268.016

82

124

108

17

40

275.516

10

45

116

109

37

47

283.316

79

121

110

26

291.793

71

102

122

111

21

80

300.709

85

35

128

112

15

309.709

78

53

126

113

42

318.797

97

89

127

114

18

31

328.797

95

100

119

115

338.853

105

49

131

116

16

17

349.019

90

108

125

117

10

20

359.894

94

87

129

118

34

371.144

91

130

119

18

25

385.202

114

99

126

120

48

55

399.260

98

96

129

121

37

413.426

103

109

132

122

13

428.143

110

101

123

123

11

444.766

122

106

130

124

28

462.161

107

104

125

125

16

480.261

124

116

127

126

18

502.527

112

119

128

127

526.618

113

125

134

128

21

555.511

126

111

131

129

10

48

584.578

117

120

132

130

618.802

118

123

133

131

659.124

128

115

135

132

10

718.684

121

129

133

133

797.570

132

130

134

134

880.367

127

133

135

135

1045.934

134

131

Table 4.4
Number of clusters
After applying K- means four clusters were formed from the marketing purpose. The
proportion of respondents falling in each category was appropriate to be considered as one
separate cluster.

Number of Cases in each Cluster


Cluster

30.000

33.000

29.000

44.000

Valid

136.000

Missing

.000

Table 4.5
The next table provides the initial and final cluster centres for all the nine variables of
shopping style.

Initial Cluster Centres


Cluster
1
Good quality products is very

imp for me
I prefer buying most popular
brands
Fashionable and attractive
styling is very important to me
I prefer to buy heavily when sale
is declared at discounted prices.
I carefully evaluate options to
find the best value for money
I prefer repeat purchase of my
favourite brands
I often but at the spur of the
moment and repent later on
I often confuse between so many
brands
Recommendation from
friend/peers/Family matters to
me

Table 4.6

Final Cluster Centres


Cluster
1
Good quality products is very

imp for me
I prefer buying most popular
brands
Fashionable and attractive
styling is very important to me
I prefer to buy heavily when sale
is declared at discounted prices.
I carefully evaluate options to
find the best value for money
I prefer repeat purchase of my
favourite brands
I often but at the spur of the
moment and repent later on
I often confuse between so many
brands
Recommendation from
friend/peers/Family matters to
me

Table 4.7
The cluster centre values in Table 4.7 represent the mean values of each of the 9 variables
based on the feedback from respondents belonging to the respective clusters. The rating scale
used during data collection ranges from 1 to 5. Higher rating on a particular variable depicts
lower preference and lower rating represents higher preference. Rating 3 by respondents
represents neutral towards that variable.

4.3 Interpretation of Cluster Analysis


On the basis of cluster analysis we can categorize the respondents in four clusters.
Cluster 1(Brand Loyal Customer)
Cluster 1 gives importance to good quality products, moderately brand conscious and style
conscious. They do not buy all the time. They buy favourite brand only and are not at all
impulsive but sometimes moderately confused.
Cluster 2 (Brand Conscious)
They go for moderate quality, buy best-selling brands. They are attracted towards fashionable
and styling brands. They buy during sales. They are impulsive and moderately confused
buyers.
Cluster 3 (Value Seekers)
Prefer good quality but moderately buy best-selling brands. Not attracted towards products
having fashionable and attractive styling. They buy during sale. Neutral view for favourite
brands. They go for value for money. They disagree to be impulsive and moderately disagree
of being confused while shopping.
Cluster 4(Hoppers)
Respondents give moderate importance to good quality products, highly brand conscious but
conscious towards fashion and styles. They do not buy during sale. They are neutral for value
for money. They are neutral towards their favourite brands.These are impulsive and are
confused while shopping. They seek advice while buying products.

4.5 Cluster Analysis of Extracted Factors


Five factors were extracted from factor analysis as stated in interpretation of factor analysis.
Now cluster analysis of these factors was carried out in order to segment the respondents on
the basis of importance given to these factors.

First, Hierarchical clustering was carried out. This was done in order to find out the number
of clusters that exist in the data. The basic output of this exercise is the agglomeration
schedule, which eventually aggregates the 136 respondents into one cluster, going stage by
stage. The agglomeration schedule is shown in Table 4.9.
The first column in Table 4.9 represents the stages, total number of which is always one less
than the number of respondents or objects. The squared Euclidean distance between these two
respondents is given under the fourth column labeled Coefficients.

The next two

columns
titled Stage Cluster First Appears indicate the stage at which a cluster is formed. The
last
column Next Stage indicates the stage at which another respondent or cluster is
combined with the present one.

Agglomeration Schedule

20

45

.000

102

21

44

.000

10

82

22

43

.000

11

109

23

42

.000

12

120

24

41

.000

13

42

25

35

36

.000

26

26

28

35

.000

25

28

27

33

34

.000

28

28

28

33

.000

26

27

29

29

28

30

.000

28

56

30

24

27

.000

56

31

25

26

.000

75

32

102

135

.031

53

33

108

112

.063

83

34

63

89

.094

87

35

62

88

.125

73

36

10

83

.156

73

37

11

81

.188

57

38

70

74

.219

76

39

29

39

.250

51

40

37

38

.281

88

41

66

84

.323

105

42

109

.370

24

96

43

16

61

.424

86

44

107

116

.487

79

45

56

113

.549

67

46

93

97

.612

15

16

105

47

71

94

.674

80

48

75

82

.737

81

49

77

.799

84

50

53

57

.862

68

51

29

65

.945

39

65

52

105

1.039

19

103

53

91

102

1.132

32

94

54

17

87

1.226

79

55

12

79

1.320

77

56

24

28

1.414

30

29

92

57

11

21

1.507

37

84

58

90

120

1.622

17

98

59

92

117

1.738

106

60

60

73

1.855

90

61

13

64

1.972

107

62

54

58

2.089

76

63

19

51

2.208

103

64

20

32

2.328

82

65

29

103

2.452

51

78

66

40

2.577

14

121

67

56

72

2.712

45

100

68

53

55

2.858

50

99

69

18

99

3.006

93

70

15

111

3.162

99

71

67

78

3.319

83

72

22

76

3.475

94

73

10

62

3.631

36

35

113

74

31

59

3.787

95

75

23

25

3.954

31

97

76

54

70

4.122

62

38

85

77

12

98

4.314

55

108

78

29

69

4.513

65

86

79

17

107

4.716

54

44

91

80

71

119

4.934

47

97

81

75

85

5.153

48

100

82

20

5.375

21

64

116

83

67

108

5.609

71

33

124

84

11

5.846

49

57

98

85

54

110

6.117

76

108

86

16

29

6.389

43

78

107

87

63

101

6.680

34

110

88

37

96

6.971

40

106

89

48

50

7.284

131

90

60

106

7.600

60

93

91

17

52

7.938

79

114

Table 4.8
Number of clusters
After applying K- means four clusters were formed from the marketing purpose. The
proportion of respondents falling in each category was appropriate to be considered as one
separate cluster.

Number of Cases in each Cluster


Cluster

25.000

29.000

42.000

40.000

Valid

136.000

Missing

.000

Table 4.9
The next table provides the initial and final cluster centres for all the five variables of
shopping style.
Initial Cluster Centres
Cluster
1

Convience

4.25

3.50

3.00

4.50

Entertainment

4.75

3.75

3.25

3.00

Shopalic

4.00

2.75

3.75

4.50

physical Evidence

4.00

2.25

4.02

3.75

Service

4.67

2.33

4.33

3.00

Table 4.10

Final Cluster Centres


Cluster
1

Convience

3.94

3.34

3.39

4.28

Entertainment

4.22

4.26

3.45

3.68

Shopalic

4.34

3.28

3.71

4.02

physical Evidence

3.52

3.18

4.18

3.71

Service

3.27

3.06

3.94

4.03

Table 4.11
The cluster centre values in Table 4.11 represent the mean values of each of the 5 variables
based on the feedback from respondents belonging to the respective clusters. The rating scale
used during data collection ranges from 1 to 5. Higher rating on a particular variable depicts
lower preference and lower rating represents higher preference. Rating 3 by respondents
represents neutral towards that variable.

4.6 Interpretation of Cluster Analysis


On the basis of cluster analysis we can categorize the respondents in four clusters.
Cluster 1 Fun loving Shoppers
These respondents focus on entertainment and come for shopping. They do not give much
importance to service, safety and physical evidence and moderately prefer convenience.
Cluster 2 Entertainers
This category of respondents focuses on entertainment and is not at all worried about safety
features. Neutral towards physical evidence and moderately prefer convenience. They are
neutral towards shopping also.
Cluster 3Demanders
For respondents belonging to cluster 3, physical evidence and safety features are important.
They are moderately shopaholic and neutral towards convenience and entertainment.

Cluster 4 Pragmatic
Cluster 4 respondents focus on convenience, shopping and safety features. They are neutral
towards entertainment and physical evidence.

4.7 Relationshipbetween Shopping Style and Demographic Variables


We use cross tabulation to find a meaningful relation between demographic variables and
shopping style of respondents.
Cross

tabulation is

the

process

of

creating

a contingency

table from

the

multivariate frequency distribution of statistical variables. Heavily used in survey research,


cross tabulations (or crosstabs for short) can be produced by a range of statistical packages,
including some that are specialised for the task. Survey weights often need to be
incorporated. Unweighted tables can be easily produced by some spreadsheets and
other business intelligence tools, where they are commonly known as pivot tables.
4.7.1 Relationship between Shopping Style and Gender

Table 4.13

We can see that there is almost equal proportion of male and female in total. In category one
and two males are in higher number but in cluster 3 and 4 females outnumber males. So we
can say that females prefer good quality but moderately buy best-selling brands. They buy
products having fashionable and attractive styling.

4.7.2 Relationship between Shopping Style and Age Group


Majority of shoppers are between the age group of 20 to 30 years in all the clusters and in
cluster 3 majority of shoppers belong to age group 25 -30 years which means they prefer
good quality but moderately buy best-selling brands. Buy products having fashionable and
attractive styling.

Table 4.14

4.7.3 Relationship between Shopping Style and Household Income

Table 4.15
The majority of respondents belong to income group 6.1 - > 8 lakhs groups. Cluster 3 and
cluster 4 have majority of respondents belonging to income group 6.1 8 lakhs.

4.8 Relationship between Mall Attributes and Demographic Variables


4.8.2 Relationship between Mall Attributes and Gender

Table 4.16
Not much significant results can be obtained as both represent the clusters in equal proportion
except cluster 2 in which Males is present in much higher number as compared to females. So
we can say that males are more inclined towards entertainment as compared to females.

4.8.2 Relationship between Mall Attributesand Age Group


Majority of respondents belong to age group between 20 30 years. Only significant
difference is in cluster 3 where respondents of age group 26 30 years are more than that of
age group 20 25. So we can say that age group of 26 30 stress more on physical evidence
and safety as compared to others or we can say that they are more demanding.

Table 4.17
4.8.3 Relationship between Mall Attributesand Household Income

Table 4.18

The majority of respondents belong to income group 6.1 - > 8 lakhs groups. Cluster 3 and
cluster 4 have majority of respondents belonging to income group 6.1 8 lakhs which means
these respondents are more demanding and pragmatic.

5 CONCLUSION
5.1 Findings
The study has focused on two major constructs, shopping mall attributes and consumer
shopping style. Findings of the study, with respect to both the construct can be concluded
with recommendation and managerial implications.
Shopping mall attributes
A two stage factor analysis was performed i.e. factor extraction and rotation of principle
components. The study included 19 variables which could have an impact of consumer
choice of shopping mall. the first five components explain the 70% of the total variance. The
first five principle components formed the extracted solution. The factors which got extracted
amongst the various variables for a preferable shopping mall are convenience, entertainment,
service, shopaholics and physical evidence seekers. These extracted factors consist of pool of
factors such as presence of multiplex, food court, architecture, safety, cleanliness and location
of shopping mall etc.
These factors were further subjected to cluster analysis in order to segment the customer on
the basis of importance given to various attributes. The respondents were classified into four
clusters viz. fun loving shoppers, entertainers, demanders and pragmatic.
Consumer shopping style
Cluster analysis was performed with K-means clustering for a four cluster solution on the
total sample space. Cluster 4 have the largest number of respondents which gives moderate
importance to good quality products, moderately brand conscious nut neutral towards fashion
and styles. They do not buy during sale. They are neutral for value for money. They buy their
favourite brands only. Not sure of being impulsive and are not confused while shopping.
Relationship of clusters with demographic variables.
A healthy proportion of both the genders were found in all the categories with male
dominating in cluster 1 and cluster 2 whereas females outnumbered males in cluster 3 and
cluster 4 as far as consumer shopping style is concerned. Majority of respondents were from

REFERENCES

1. Marketing white book 2011-12, Businessworld


2. IFPRI Policy Brief 2 June 2008
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retailing
5. Terence A. Shimp David E. Sprott, Increasing Store Brand Purchase Intentions
through Product Sampling, European Advances in Consumer Research,Volume 7,
2006
6. Thomas Reardon, Ashok Gulati, February 2008,The Rise of Supermarkets and Their
Development Implications IFPRI Discussion Paper 00752.
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Accessed

on

28/08/2011.
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future Journal of retailing.
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study of organized retail outlets in Kurukshetra, India Journal of marketing
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Meta-analysis of the Impact of Price., Journal of marketing.
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of marketing.
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18/10/2011

on

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19. Call of the Mall by Paco Underhill

ANNEXURE 1
Questionnaire
Dear Sir/Madam,
I, Jitender Singh, student of University Business School, am doing a research on
Consumer Behaviour in Shopping Malls. I request you to share your experience
which can help me in completion of my project. I promise you that this information will
only be used only for
academic purpose and will not be revealed to anyone. Thanks for your support.
1.) Kindly encircle one of the given responses.
S.No

Mall Image (Importance related attributes)

Strongly
disagree

Disagree

Neutral

Agree

Strongly
agree

Presence of large number of brands

It is important to have a mall closest to my place


It is important to have multiplex and gaming
zone at the Mall.

Presence of bench/Chair at Shopping Mall.

Mall layout should aid in reaching all the stores


easily.

Cleanliness of the mall is important.

7
8

Restrooms should be neat and clean and


properly maintained.
Good food court at shopping Mall is very
important.
Adequate parking space is very important for
me.

9
10
11

Ambience of the mall is important for me.


Presence of security features at shopping Mall is
important for me.

12

Proper signs and symbols should be provided to


guide the shoppers.

13

It is important is for shopping Mall to provide


fire and other safety features to shoppers.

14

Credit facility should be provided

15

17

Availability of shopping cart for shoppers.


Does architecture of Shopping Mall matters to
you?
Do you think Malls should have their own
websites to update shoppers about new schemes
and available products?

18

Escalators should be provided in malls

19

Mall should be air-conditioned

16

S.No

Shopping style

Strongly
disagree
1

Disagree
2

Neutral
3

Agree
4

Strongly
agree
5

Good quality products is very imp for me

I prefer buying most popular brands


Fashionable and attractive styling is very important to
me
I prefer to buy heavily when sale is declared at
discounted prices.
I carefully evaluate options to find the best value for
money

I prefer repeat purchase of my favourite brands


I often but at the spur of the moment and repent later
on

I often confuse between so many brands


Recommendation from friend/peers/Family matters to
me

3
4
5
6
7
8
9

Personal Details

1) Name
2) Gender
Male

_______

Female ______

3) Age
a)
b)
c)
d)
e)

15 - 19 years
20 25 years
26 30 years
30 45 years
> 45 years

4) Household Income level


a) 2 - 4 lakhs
b) 4.1- 6 lakhs
c) 6.1 - 8 lakhs
d) > 8 lakhs

Thank you

ANNEXURE 2
Variable View of SPSS17
Shopping mall attributes

Shopping style variables

ANNEXURE 3
Data View in SPSS