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Mobile Promotions as an Omni
Channel Retail Strategy in
Shopping Centers
Roel Vos
Aloys Borgers
Astrid Kemperman
Urban Systems & Real Estate
Department of the Built Environment
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Introduction
• Online shopping: increasing trend
• Retailers’ revenues in physical shopping environments
are at stake.
Vacancy in shopping environments
• New ICT developments in shopping environments
Main research question:
• Are mobile promotions effective in having consumers
walk longer distances (and stay longer and spend more
money in a shopping center)?
6/25/2017
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Mobile promotions
• Offer consumers an attractive deal in the shopping
center by means of mobile devices
• Mobile device: simulated by an interviewer using a tablet
• Special offer: option to buy a particular product at
reduced price somewhere in the shopping center; today
only
/ Urban Planning Group 6/25/2017
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Approach
• Intercept individual consumers while shopping in
different district shopping centers
• Show consumers a special offer:
• different product categories, different quality segments
• different levels of promotion value (price reduction)
• different locations in shopping center
• Would you accept the offer and go to the shop?
/ Urban Planning Group 6/25/2017
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Approach
/ Urban Planning Group 6/25/2017
Mobile Promotion:
• Spend at least €25.- in fashion shop …
• and get a €5.- / €10.- price reduction
• Location shown on a map
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Approach
/ Urban Planning Group 6/25/2017
3 urban district shopping centers:
• Brusselse Poort Maastricht Medium-sized
• Woensel Eindhoven Large
• Zuidplein Rotterdam Large
5 product categories:
• Groceries
• Personal care
• Fashion
• Jewelry
• Catering
each in 3 quality segments (low, medium, and high quality shop)
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Approach
Different levels of promotion value (reduction):
Spend: High Low
• Groceries > €10.- €5.- €2.5
• Personal care > €10.- €5.- €2.5
• Fashion > €25.- €10.- €5,-
• Jewelry > €25.- €10.- €5,-
• Catering > €5.- €3.- €1.5
Promotions at different locations in shopping center
/ Urban Planning Group 6/25/2017
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Data collection
• Entrance
• Visited shops and expenditures and time spent so far
• Shops to be visited and expected expenditures, time
• Promotions from 3 product categories (shops)
• one category visited or planned to be visited
• one category not visited and not planned to be visited
• catering
• Per category:
• 3 shops at different positions in the shopping center
• Promotions at fixed promotion value (High or Low)
• Max. 9 special offers per consumers (Accept: yes / no)
/ Urban Planning Group 6/25/2017
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Shopping center Brusselse Poort Maastricht
6/25/2017
Supermarkets
Catering
Jewelry
Personal care
Fashion
Ground floor Basement
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Shopping center Woensel Eindhoven
/ Urban Planning Group 6/25/2017
Supermarkets
Catering
Jewelry
Personal care
Fashion
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Shopping center Zuidplein Rotterdam
/ Urban Planning Group 6/25/2017
Supermarkets
Catering
Jewelry
Personal care
Fashion
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Data collection
• December 2015 – February 2016
• All days, except Sundays
• Interviews at different locations in the shopping center
• 731 respondents
/ Urban Planning Group 6/25/2017
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Respondents
/ Urban Planning Group 6/25/2017
Brus. Poort Woensel Zuidplein
Male 46.3% 33.6 35.5
Female 53.7 66.4 64.5
18-35 26.6% 20.9 45.3
36-65 52.1 50.8 32.2
> 65 21.1 28.3 22.4
Male only 27.7% 16.0 19.6
Group 36.8 41.0 42.0
Female only 35.5 43.0 38.4
N= 242 244 245
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Reaction to mobile promotions
YES NO N
Brusselse Poort 31.6 68.4 1587
Woensel 26.7 73.3 2065
Zuidplein 33.6 66.4 1992
overall 30.5 69.5 5644
/ Urban Planning Group 6/25/2017
Acceptance by shopping center (in %)
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Reaction to mobile promotions
YES NO N
Groceries 36.2 63.8 748
Personal care 38.3 61.7 1067
Fashion 28.6 71.4 963
Jewelry 17.6 82.4 700
Catering 29.7 70.3 2166
overall 30.5 69.5 5644
/ Urban Planning Group 6/25/2017
Acceptance by product category (in %)
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Reaction to mobile promotions
YES NO N
Low 27.2 72.8 2687
High 33.5 66.5 2957
overall 30.5 69.5 5644
/ Urban Planning Group 6/25/2017
Acceptance by promotion value (in %)
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Interested in Shopping Center App?
YES NO N
Brusselse Poort 41.7% 58.3 242
Woensel 34.0 66.0 244
Zuidplein 45.7 54.3 245
overall 40.5 59.5 731
/ Urban Planning Group 6/25/2017
More interested if visitor is:
• Younger
• Higher educated
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Logistic regression per product category
Explanatory variables
• Shopping center (Brus. Poort, Woensel, Zuidplein)
• Day (Mon-Thursday, Friday, Saturday)
• Daily period (9-11h, 11-13h, 13-15h, >15h)
• Gender (male, female)
• Age (18-35, 36-65, 66+)
• Group composition (1 male, group, 1 female)
• Distance home – shopping center (<5km, 5+km)
• Respondent is interested in shopping center app (Yes, No)
/ Urban Planning Group 6/25/2017
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Logistic regression per product category
Explanatory variables cont’d
• Promotion value (high, low)
• Promotion store segment (high, medium, low quality)
• Number of stores visited up to the mobile offer
• Number of visits per store type up tot the mobile offer
(Groceries, Fashion, Personal care, Catering, Other )
• Duration shopping up to the mobile offer (<15 min, 15-45
min, >45 min)
/ Urban Planning Group 6/25/2017
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Logistic regression per product category
Explanatory variables cont’d
• Distance walked up to the mobile offer (in 100 m)
• Distance to walk to visit remaining stores (in 100 m)
• Distance detour to visit the mobile offer store (in 100 m)
• Detour relative to Distance walked (ratio)
• Detour relative to Distance to walk (ratio)
/ Urban Planning Group 6/25/2017
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Distances: shopping center map
/ Urban Planning Group 6/25/2017
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Distances: start at entrance
/ Urban Planning Group 6/25/2017
IN/OUT
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Distances: 3 stores visited
/ Urban Planning Group 6/25/2017
IN/OUT
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Distances: meet the interviewer
/ Urban Planning Group 6/25/2017
IN/OUT
Interview
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Distances: store to be visited
/ Urban Planning Group 6/25/2017
IN/OUT
Interview
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Distances: distance walked
/ Urban Planning Group 6/25/2017
IN/OUT
Interview
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Distances: distance to walk
/ Urban Planning Group 6/25/2017
IN/OUT
Interview
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Distances: promotion
/ Urban Planning Group 6/25/2017
IN/OUT
Interview
Promotion
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Distances detour
/ Urban Planning Group 6/25/2017
IN/OUT
Interview
Promotion
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Logistic regression
• Dep. variable: Accept promotion?
• Per type of product
• Stepwise
• Backward: LR
/ Urban Planning Group 6/25/2017
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Logistic regression: Goodness of fit
Groceries Fashion Pers Care Jewelry Catering
% correct
Start 65.8 71.6 62.7 82.1 70.9
% correct
Final 70.7 73.2 73.2 82.9 73.6
Nagelkerke R2 0.19 0.12 0.32 0.26 0.15
/ Urban Planning Group 6/25/2017
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Constants and shopping center effect
Groceries Fashion Pers Care Jewelry Catering
Constant -2.9 -2.8 -1.5 -5.3 -1.2
Bru Poort 0.8 -0.5
Woensel 0.7 0.5 1.1 -0.3
(Zuidplein) - - - - -
/ Urban Planning Group 6/25/2017
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Day of the week and Daily period
Groceries Fashion Pers Care Jewelry Catering
Mon…Thu 0.8
Friday
(Saturday) - - - - -
9-11h 1.0
11-13h 1.2 -0.8 1.2
13-15h 1.2 1.5
(> 15h) - - - - -
/ Urban Planning Group 6/25/2017
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Gender and Age
Groceries Fashion Pers Care Jewelry Catering
Female 0.96
(male) - - - - -
18-35 -0.45
36-65 -0.23
(>65) - - - - -
/ Urban Planning Group 6/25/2017
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Education and Group composition
Groceries Fashion Pers Care Jewelry Catering
High Edu -0.5
(low) - - - - -
group -0.8 0.5 0.4
1 female 0.5
(1 male) - - - - -
/ Urban Planning Group 6/25/2017
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Distance from Home and Interested in app
Groceries Fashion Pers Care Jewelry Catering
≥ 5km 0.4 0.9 0.7
(< 5km) - - - - -
SC-app 1.2 0.5 1.4 1.3 1.3
(no) - - - - -
/ Urban Planning Group 6/25/2017
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Promotion value and Quality segment
Groceries Fashion Pers Care Jewelry Catering
High value 0.4 0.9 0.3
(low) - - - - -
Medium 0.8 1.0 1.0 2.4
High 0.6 0.8 -0.9 1.6
(low) - - - - -
/ Urban Planning Group 6/25/2017
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# Stores visited (all and per type)
Groceries Fashion Pers Care Jewelry Catering
#stores
visited -0.2
Grocery -0.9
Fashion 0.2 -0.2
Pers Care -0.3
Catering 0.5 -0.8
Other 0.2 0.2
/ Urban Planning Group 6/25/2017
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Duration and Distance in shopping center
Groceries Fashion Pers Care Jewelry Catering
< 15 min 0.7 -0.7 0.3
15-45 min 0.5 -0.6
(> 45 min) - - - - -
Dist walked 0.4
Dist to walk -0.5 -0.1
Detour -0.2
Detour/walked
Detour/to walk -.04 6/25/2017
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Conclusions
• product categories:
• Most effective: Personal Care, Catering
• Least effective: Jewelry
• Interested in shopping center app: positive effect
• Preferably offer promotions in the medium quality segments
• Effect of (extra) distance to walk: negative for Groceries,
Personal Care and Catering
to have visitors walking longer distances, offer females and
groups medium or high quality fashion promotions in the
early morning or early afternoon when they enter the center
/ Urban Planning Group 6/25/2017
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The End