mba project

89
Attitude and Perception towards Shopping Malls 1.1 BACKGROUND: The organized retail industry in India stands at a booming Rs.18,000 crores (2002-2003) which is just 2% of the entire retailing industry. It is currently growing at a rate of 10% per annum with the fashion and food industry escalating at 20% per annum. A study by Knight Frank shows that total retail space is expected to rise to about 25 million square feet (2.3 million square meters) in the next three years across 50 cities from 8-9 million square feet now. There are 200 malls in planning or under construction. Shopping, entertainment and food will accelerate and will be the next major buzzwords in the industry. Traditional retailing has existed in India since time immemorial, what is being talked of is the organized retail sector which consists of large format stores, shopping malls/arcades and huge chain stores. The entire industry is heavily customer centric. For the organized retail segment to grow and gain success, it is essential to break the inertia and ignorance amongst the potential customers about the new retail formats, the advantages of shopping in these new stores and the value for money that these new formats offer. All this, in light of the dynamically changing industry, market and consumer psyche. Alliance Business Academy, Bangalore 1 1. INTRODUCTION

Upload: komaldeep-singh-bhangoo

Post on 14-Dec-2014

49 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: mba project

Attitude and Perception towards Shopping Malls

1.1 BACKGROUND:

The organized retail industry in India stands at a booming Rs.18,000 crores

(2002-2003) which is just 2% of the entire retailing industry. It is currently growing at a

rate of 10% per annum with the fashion and food industry escalating at 20% per annum.

A study by Knight Frank shows that total retail space is expected to rise to about 25

million square feet (2.3 million square meters) in the next three years across 50 cities

from 8-9 million square feet now. There are 200 malls in planning or under construction.

Shopping, entertainment and food will accelerate and will be the next major buzzwords in

the industry.

Traditional retailing has existed in India since time immemorial, what is being

talked of is the organized retail sector which consists of large format stores, shopping

malls/arcades and huge chain stores. The entire industry is heavily customer centric. For

the organized retail segment to grow and gain success, it is essential to break the inertia

and ignorance amongst the potential customers about the new retail formats, the

advantages of shopping in these new stores and the value for money that these new

formats offer. All this, in light of the dynamically changing industry, market and

consumer psyche.

The retail industry is divided into a number of segments like garments, music,

books, pharmaceuticals, quick service restaurants, malls etc. In India, the retail sector is

the second largest employer after agriculture. The retailing sector in India is highly

fragmented and predominantly consists of small independent, owner-managed shops.

There are some 12 million retail outlets in India. Besides, the country is also dotted with

low-cost kiosks and pushcarts. There has been a boom in retail trade in India during the

past few years owing to a gradual increase in the disposable incomes of the middle class

households. More and more players are coming into the retail business in India to

introduce new formats like malls, supermarkets, discount stores, department stores and

even changing the traditional looks of bookstores, chemist shops, and furnishing stores.

Alliance Business Academy, Bangalore 1

1. INTRODUCTION

Page 2: mba project

Attitude and Perception towards Shopping Malls

1.2 SOME OF THE ASPECTS OF RETAILING WHERE CHANGE HAS

OCCURRED ARE:

Medium of transaction - from currency to plastic money to virtual transactions

Store format – from tents to concrete structures – from mom & pop stores to

departmental stores to malls and multiplexes

Store Layout – from small stores of about 250 square feet to malls covering an

area of nearly 1,50,000 square feet.

Strategy – from push to pull.

Focus –from being retailer centric to being customer centric

Technology – customized software packages are now being designed to run a

retail chain or a mall

In context to all this, malls were a new emerging format in India with a totally

different business model. It started in the year 2000 with a Spencer’s at Chennai,

Crossroads at Mumbai, Ansal’s at Delhi and a few non-metro malls, mostly in the South.

Investments – a world-class mall in India typically commands an investment of Rs. 3000

per square feet. Malls are not merely points of sales for different retailers but it is a place

where several brands build their equity in unison.

Malls typically work on a catchment area philosophy. They concentrate on

providing convenience, variety and experience. They are trying to converge the

classification of products on the utility and involvement basis. Malls are at an

introductory stage in their life cycles exception being Crossroads, which has been there

for three years. However, malls are burgeoning at every possible location. There are two

hundred malls under planning or construction. Their main focus is on:

Introducing the concept to the target audience

Encouraging the footfalls within the malls

Concentrate on the stores as they build up the mall.

Alliance Business Academy, Bangalore 2

Page 3: mba project

Attitude and Perception towards Shopping Malls

The year 2003 was important in the history of mall development in India, with the

number of operational malls reaching double digits. At the moment, most malls can boast

of large numbers -- the MGF mall in Gurgaon gets over 25,000 footfalls a day, while

Ansal Plaza gets up to 65,000 on weekends. The conversion rate is 10-12 per cent. But

with new malls coming up, these numbers are sure to thin. Also, the traffic from

neighboring towns is projected to dip sharply once malls come up there. This could see

erosion in the handsome profits retailers in malls are currently reporting.

Malls evolved not with a motive of evolving a new retail format but with the idea

of developing a community center for people where they could converge for shopping,

cultural activity and social interaction. However, slowly, they increased in such huge

number that they became the center of the universe. They replaced the street shopping

centers and became shopping communities themselves. This gave rise to a need of

studying the customers in order to decide the mall patronage and not simple real estate

and revenue alone. In an overmalled market, when consumers have choice of variety and

several shopping center options for multiple purpose trips, the need arises for a measure

of attraction, which grasps the essence of consumer’s liking and can also be practically

applied. Meoti, Feignberg and Westgate discuss the plausible factors responsible for the

attraction of consumers towards malls. According to them, there is a basis for assuming

that consumers may be attracted to a mall by feelings evoked by qualitative aspects of a

particular amalgamation of stores rather than a variety of stores with a limited depth and

width. This basis, they have taken to be Byrne’s behavioral learning theory and term it as

the reinforcement-affect model. Stores, which a consumer likes or prefers shopping in,

represent reinforcing stimuli that contribute to the attraction response towards the mall.

Shoppers undergo important changes in their lifestyle in terms of their lifestyles,

spending habits, shopping tendencies and strategies. Stoltman, Gentry and Anglin view

mall shopping as a relative choice phenomenon i.e. a consumer chooses to shop at malls

over other outlets and chooses some malls over other malls where this choice is given –

patronage is contingent upon the choice alternatives. Furthermore, mall patronage does

not occur in abstract, it is a context driven choice. A consumer may (prefer / expect to)

Alliance Business Academy, Bangalore 3

Page 4: mba project

Attitude and Perception towards Shopping Malls

shop at malls for clothes, but not for home electronics; they may shop at malls when

many purchasing needs exist but few solutions have been identified (e.g. gift shopping);

or, they may shop at malls when pressed for time. In addition, those who have certain

shopping orientations may prefer to shop at malls, as in case of the browser. Mall

shopping can also reflect more economical, or functional, shopping orientations because

they provide a convenient / efficient way to compare shops across a variety of goods

and/or a way to complete several purchases in one trip.

Alliance Business Academy, Bangalore 4

Page 5: mba project

Attitude and Perception towards Shopping Malls

New shopping-malls having become operational in many cities across India, it is

interesting to observe how the shopping-behaviour of consumers in the vicinity of these

malls has changed and thereby draw some lessons that could be of some use to the

developers of hundreds of new malls that are currently under planning or construction

across India.

It is still not too long ago that the operators of a particular new shopping-mall at

Mumbai had to contemplate restricting entries of visitors by imposing conditions that

such entry was limited to those having mobile phones or credit cards a.k.a., the income

tax department's one in six criterion for filing a tax return.

Delhi and Gurgaon saw some of the initial mall developers become parking lot

operators as well by charging exorbitant parking fees from all visitors. Rentals, rather

than going down with more malls coming up, started moving up even as the quality of

services within the malls started deteriorating. In this context, therefore, it is somewhat

surprising that questions are already being asked, albeit in whispers, whether shopping-

malls can survive and operate profitably in India. Many tenants lament about the low

percentage of conversions from those who walk through the portals of these malls, and

casual observers routinely find shopping-bags missing in the hands of the supposed

shoppers visiting these malls as an indicator that the initial euphoria about shopping in

the malls is already on the wane and that consumers are reverting to their traditional

shopping-destinations.

There are some myths and some realities about these observations. It is, indeed,

true that many Indian retailer tenants in the shopping-malls have now become familiar

with terms such as footfalls, conversions, average transaction value, and repeat

customers.

However, it is also true that for many of these tenants, it has been their first

expansion beyond their traditional high street locations and hence, they have expectations

born more out of hype than by any real experience.

Alliance Business Academy, Bangalore 5

1.3 SHOPPING MALLS: MYTHS & REALITIES

Page 6: mba project

Attitude and Perception towards Shopping Malls

For instance, the daily or weekend footfalls in traditional shopping high streets of

India such as South Extension and Karol Bagh in Delhi, Linking Road in Mumbai,

Commercial Street or Brigade Road in Bangalore, or for that matter, T Nagar or Anna

Nagar in Chennai would easily exceed the more carefully estimated (or measured)

footfalls in any of the malls in the country. Similarly, if one were to carefully observe the

ratio of visitors having "shopping-bags" in their hands in these high streets versus those

in the new malls, it is not going to be very different.

As far as individual retailers' performance is concerned, even in the traditional

markets some established retailers do extraordinarily well while many other shops see a

change of "shop boards" very frequently. There is no reason to believe that it should be

any different in a shopping-mall, which, in any case, is fundamentally no different from a

traditional shopping-high street, except that a mall has a more modern and compact

structure, in most cases a single roof. Local retailer tenants who move into a new mall for

the first time should not expect any customer loyalty being built up overnight.

For example, in Delhi's case, it is possible for a retailer to be very successful in

Karol Bagh or Lajpat Nagar shopping-districts but he would have to start from scratch in

terms of building up brand recognition as well as generating customer conversions in a

new location such as Gurgaon or Noida.

In contrast, national retailers such as Shoppers Stop, or national exclusive brand

outlets such as those operated by Madura Garments, Arvind Brands, Raymond, and

Zodiac, have national brand recognition and hence the performance of their outlets in

shopping-malls is usually comparable (or even better) with their outlets in traditional

shopping-markets.

Secondly, with most mall developers having blindly opted for a questionable

winning formula of shopping, entertainment and food, it is no surprise to find many mall

visitors having no shopping-bags since they have been enticed to visit only for watching a

movie and/or having a burger or a pizza or even a cup of coffee.

Alliance Business Academy, Bangalore 6

Page 7: mba project

Attitude and Perception towards Shopping Malls

The situation pertaining to shopping, for instance, would be no different in

locations such as Saket or Vasant Vihar in Delhi, which are better known for their movie

theatres and eating options.

What is the lesson for mall developers and for the prospective tenants? For the

developers, the critical lesson is to invest some quality effort in understanding the

shopping-needs of customers in their targeted "catchment" areas and then build a

carefully planned portfolio of retail options that can meet the needs of these targeted

customers.

In many instances, customers would only need shopping and eating options rather

than a multiplex as well. The developers also have to understand that their retailer tenants

have to earn a profit and hence the rentals have to be aligned to what the retail business

can bear (usually 5-8 per cent of gross revenues).

Mall developers also have to create distinctive identities for their specific malls,

much like the identities that have developed over time for major shopping-high streets in

various cities in the country.

Their work is not done just when the mall has been commissioned! As for the

would-be retailer tenants, it is important to realise that merely moving into a mall does

not guarantee business for them.

They have to work as hard to draw consumers to their own stores once the latter

have entered the mall, and then have the right value proposition for them to get converted

into customers, and then become repeat customers.

The final, obvious, conclusion is that mall developers have to invest in getting a

better understanding about the retail business, while retailers have to get a better

understanding about the dynamics of operating at a new location.

Alliance Business Academy, Bangalore 7

Page 8: mba project

Attitude and Perception towards Shopping Malls

2.1 NEED OF THE STUDY:

Customer is the most important link in a service industry and the same applies to

retailing as well. Utmost care is now being taken to please the customers to retain and

expand the existing customer base. However in India, not many strategic changes in the

store formats seem to have taken place by identifying the customer needs upfront. It is

generally the retailer who comes up with a new format and the customers try it out

because of its newness. Most of the formats in India have been adapted from other

developed markets throughout the world. The success of one format springs up more of

its kind. One such format that has been successful and has lead to rapid growth of its kind

is a MALL. As mentioned above, there are nearly 200 malls under construction in 50

cities across India. However, the question is whether excess of anything would be

acceptable amongst customers? What would determine the success of these malls? What

would be their differentiating factor? If it is their product mix and layout, then a thought

has to be given to it. With malls housing stores of almost all product categories and with

little differentiation amongst these stores, it is important to determine what truly matters

to the customer so as to differentiate. Would branding of malls be successful? Malls work

on a catchment area philosophy i.e. 80% of a mall’s earnings comes from its catchment

area. Does this mean that it is difficult to cater to a heterogeneous locality in this era

where niche marketing is at its pinnacle?

A number of such questions have been asked and research carried out in markets

where malls are a developed phenomena. In India, where malls are still at a nascent stage

in a relatively newfound organised retail industry, very less research has been carried out

on shoppers consuming malls. This study is an attempt to understand the behaviour and

attitude of these shoppers towards malls based on primary research. It also looks in detail

at three malls in particular supposed to represent the city of Bangalore in a geographical

manner.

Alliance Business Academy, Bangalore 8

2. DESIGN OF THE STUDY

Page 9: mba project

Attitude and Perception towards Shopping Malls

2.2 RESEARCH OBJECTIVES:

To understand the behaviour of shoppers towards malls

To understand the attitudes of shoppers towards malls

To explore and determine the mall choice drivers amongst shoppers

Alliance Business Academy, Bangalore 9

Page 10: mba project

Attitude and Perception towards Shopping Malls

2.3 SCOPE:

The retail industry in India is facing the same situation as it was during the late

eighties and early nineties in the U.S.A. A lot of research work is beginning in the area of

malls just as it began there in the past. This study is one such initial step towards

understanding the behaviour and attitude of customers towards malls as they are

burgeoning and filling up the spaces in the cities. The retail industry in India has been

extremely dynamic in the past ten years. Not only have malls come up as the latest format

in vogue, but also attempts are being made to construct malls in new layouts. Such a

vigorous environment is definitely conducive to consumer research and their behaviour

and attitude towards the change. This study, being carried out at the nascent stage of

malls in India, has potential to be the foundation for future research work in this area.

2.4 BENEFICIARIES:

Beneficiaries of this research study would be:

Mall owners and mall managers : This study would give them a consumer’s

perspective in their business model and hence help them decide their strategies better.

Behaviour, attitude, perception and imageries have immense marketing implications

and these have gained importance in case of malls because of their sudden expanse

across the country.

Retail chain / store owners : Knowing the consumer’s perspective towards malls

would help them decide which malls or what kind of malls to place their stores in.

this study would also elicit information on the most popular stores amongst the mall

shoppers. This would help the retail chain/store owners in building their brand equity

or positioning themselves accordingly.

Researchers / Students : Malls is an upcoming sector in the retail industry at

present. This study would be useful in case of any further research or study being

carried out on any aspect in this sector. It would provide the researcher / students with

the consumer’s perspective on the sector.

Alliance Business Academy, Bangalore 10

Page 11: mba project

Attitude and Perception towards Shopping Malls

2.5 RESEARCH METHODOLOGY:

2.5.1 SAMPLE DESIGN:

Sampling Universe: People visiting malls

Sampling Frame:

Forum at Koramangala (South Bangalore)

5th Avenue at Brigade Road (East Bangalore) and

Sukh Sagar at Gandhinagar (Central Bangalore)

Sampling technique: Stratified sampling (according to age) followed by quota

sampling (on the basis of malls and gender)

Sample size: 120

Sampling Unit: Individual

Scope: Bangalore

2.6 SAMPLING GRID:

MALLS Forum 5th Avenue Sukh Sagar

Age –

Group

(years)

Male Female Male Female Male Female

15-20 4 4 4 4 4 4

21-25 4 4 4 4 4 4

26-35 4 4 4 4 4 4

36-50 4 4 4 4 4 4

50+ 4 4 4 4 4 4

Table No. 1

Alliance Business Academy, Bangalore 11

Page 12: mba project

Attitude and Perception towards Shopping Malls

2.7 RATIONALE FOR THE SAMPLE DESIGN:

The age groups signify

Teenagers (15-20 years)

Early earners (21-25 years)

Recently settled / Having small children (26-35 years)

With family (Having grown up children) (36-50 years)

Retired / Staying without children (50+ years)

Stratified sampling is used in order to cover all the age groups while within them,

quota sampling has been used in order to cover both the genders equally and because

of paucity of time.

The malls at which people would be interviewed are chosen according to their

geographical spread in order to cover the entire city of Bangalore.

Bangalore is one of fastest growing cities in the country. Popularly known as

“Pub Hub” and “Silicon valley”, it has become a central place for tech’s becoming

the sought out place for software professionals. It has experienced a population

growth of 3% p.a. over the past decade. Bangalore residents have a high propensity to

spend. Average annual household expenditure of 36% of the population lies in the

range of Rs. 50,000 – Rs. 1,00,000, according to the Central Statistics Organization.

This coupled with the fact that 36% of the age group falls under the age group of 20-

45 years, indicates a favorable situation for majority of the retailers. From the high

streets of M.G Road, Brigade Road, Commercial Street, Maratha Halli, Indiranagar

and Gandhinagar, the retail market in Bangalore has been steadily moving towards

malls and shopping centers. There are already more than 20 malls in Bangalore,

which gives a good base for the present study.

Alliance Business Academy, Bangalore 12

Page 13: mba project

Attitude and Perception towards Shopping Malls

2.8 RESEARCH INSTRUMENT:

The research instrument used for data collection was self–administered structured

questionnaire.

The questionnaire included:

Dichotomous selection

Multiple choice single response questions

Multiple choice multiple response questions

Open-ended questions

Likert scale

2.8.1 RESEARCH METHOD: Survey method

2.8.2 DATA COLLECTION: For the purpose of the study, both primary and secondary

data were collected. The primary data is collected through Self – administered structured

questionnaire, and secondary data was collected from internet, journal and magazines.

2.8.3 RESEARCH TYPE: A descriptive study is carried out to determine

Attitude towards malls

Imagery of some of the famous malls in the city

Concept of an ideal mall

2.9 PROFILE OF RESPONDENTS:

Demographic profile of the shoppers and mall visitors

Psychographic profile of the shoppers and mall visitors

2.10 DATA ANALYSIS PLAN:

Alliance Business Academy, Bangalore 13

Page 14: mba project

Attitude and Perception towards Shopping Malls

Q.1 and Q.2 would reveal the approximate time that people spend in the mall.

Whether to consider the responses as categorical data or as exact times would be

decided on the basis of the range of responses obtained. Frequency count of this

data would provide the above information.

Frequency count of the various shops mentioned in Q.3 would reveal the most

popular stores in a mall.

Response from Q.4 would be used to segregate the respondents on the basis of

whether they have bought anything from the mall or not. This would help study

the behaviour and attitude of shoppers and non-shoppers.

Frequency count of the various categories mentioned in Q.5 would reveal the

most popular categories shopped in a mall.

Frequency count of the various options in Q.6 would provide the approximate

catchment area of the mall with respect to people’s residential and work places.

Frequency count of responses from Q.7 would provide the following information:

Awareness about malls in Bangalore:

Top of mind recall

Spontaneous recall

Aided recall

The most frequently visited malls in Bangalore

Frequency count of responses from Q.8 would provide the following information:

The frequency of visit to different malls

Reasons for not visiting a particular mall. The reason first mentioned

would be considered as response for the analysis.

Frequency count of the various shops mentioned in Q.9 would reveal the

company with whom people most visit malls.

Q.10 would provide information on the means of transport used to travel to malls.

Analysis of behaviour and attitude statements in Q.11 would indicate the mall

choice drivers.

Frequency count of responses in Q.12 would help form the imagery of the three

malls.

Alliance Business Academy, Bangalore 14

Page 15: mba project

Attitude and Perception towards Shopping Malls

Analysis on the basis of statements in Q.11 would profile the customers going to

the three malls.

Analysis of statements in Q.13 would reveal:

The mall choice drivers for the three different malls

Factors most associated with the three malls

Alliance Business Academy, Bangalore 15

Page 16: mba project

Attitude and Perception towards Shopping Malls

2.11 LIMITATIONS OF THE STUDY:

The study is limited to three malls of the Bangalore city.

The study is limited to data collected from 120 shoppers.

The secondary data collected may not be up-to-date.

Alliance Business Academy, Bangalore 16

Page 17: mba project

Attitude and Perception towards Shopping Malls

2.12.1 PERCEPTION:

Perception can be defined as “how we see the world around us”. Two individuals

may be subject to the same stimuli under the same apparent conditions, but how each

person recognizes them, selects them, organizes them, and interprets them is a highly

individual process based on each person’s own needs, values, and expectations.

Perception can be defined as the process by which an individual selects, organizes,

and interprets stimuli into a meaningful and coherent picture of world. A stimulus is any

unit of input to any of the senses. Examples of stimuli include products, packages, brand

names, advertisements, and commercials. Sensory receptors are the human organs (i.e.,

the eyes, ears, nose, mouth, and skin) that receive sensory inputs. Their sensory functions

are to see, here, smell, taste, and feel. All of these functions are called into play either

singly or in combination in the evaluation in the evaluation and use of most consumer

products.

The study of perception is largely the study of what we subconsciously add to or

subtract from raw sensory inputs to produce our own private picture of the world.

2.12.2 DYNAMICS OF PERCEPTION:

Human beings are constantly bombarded with stimuli during every minute and

every hour of every day. The sensory world is made up of an almost infinite number of

discrete sensations that are constantly and subtly changing. According to the principles of

sensation, intensive stimulation “turns off” most individuals, who subconsciously block

the receipt of a heavy bombardment of stimuli. Otherwise, the billions of different stimuli

to which we are constantly exposed might serve to confuse us totally and keep us

perpetually disoriented in a constantly changing environment. However, neither of these

consequences tend to occur, because perception is not the function of sensory input alone.

Alliance Business Academy, Bangalore 17

2.12 OPERATIONAL DEFINATION & CONCEPT

Page 18: mba project

Attitude and Perception towards Shopping Malls

Rather, perception is the result of two different kinds of inputs that interact to form the

personal pictures – the perceptions – that each individual experiences.

One type of input is physical stimuli from the outside environment; the other type

of input is provided by individuals themselves in the form of certain predispositions (e.g.,

expectations, motives, and learning) based on previous experience. The combination of

these two very different kinds of inputs produces for each of us very private, very

personal pictures of the world. Because each person is a unique individual, with unique

experiences, wants, needs, wishes, and expectations, it follows that each individual’s

perceptions are also unique. This explains why no two individuals see the world in

precisely the same way.

Individuals are very selective as to which stimuli they “recognize”; they

subconsciously organize the stimuli they do recognize according to widely held

psychological principles, and they interpret such stimuli subjectively in accordance with

their needs, expectations, and experiences.

2.12.3 PERCEPTUAL SELECTION:

Consumers subconsciously exercise a great deal of selectivity as to which aspects

of the environment – which stimuli – they perceive. An individual may look at some

things, ignore others, and turn away from still others. In actuality, people perceive – or

perceive only a small fraction of the stimuli to which they are exposed.

Which stimuli get selected depends on two major factors in addition to the nature

of the stimulus itself: consumers’ previous experience as it affects their expectations and

their motives at the time.

Alliance Business Academy, Bangalore 18

Page 19: mba project

Attitude and Perception towards Shopping Malls

2.12.4 IMPORTANT SELECTIVE PERCEPTION CONCEPTS:

Consumer’s “selection” of stimuli from the environment is based on the

interaction of expectations and motives with the stimulus itself. These factors give rise to

a number of important concepts concerning perception.

SELECTIVE EXPOSURE: Consumers actively seek out messages that they find

pleasant or with which they are sympathetic, and they actively avoid painful or

threatening ones.

SELECTIVE ATTENTION: Consumers tend to have a heightened awareness of

stimuli that meets their needs or interests and minimal awareness of stimuli

irrelevant to their needs. Thus they are likely to note ads for products that would

satisfy their needs and for stores in which they shop, and disregard those in which

they have no interest.

PERCEPTUAL DEFENSE: Consumers subconsciously screen out stimuli that

they would find psychologically threatening, even though exposure has already

taken place. Thus threatening or otherwise damaging stimuli are less likely to be

consciously perceived than are neutral stimuli at the same level of exposure.

Further more individuals unconsciously may distort information that is not

consistent with their needs, values, and beliefs.

PERCEPTUAL BLOCKING: Consumers protect themselves from being

bombarded with stimuli by simply “turning out” – blocking such stimuli from

conscious awareness. Research shows that enormous amounts of advertising are

screened out by consumers; they mentally tune out because of the visual over

stimulating nature of the world in which we live.

2.12.5 PERCEPTUAL ORGANISATION:

People do not experience the numerous stimuli they select from the environment

as separate and discrete sensation; rather, they tend to organize them into groups and

perceive them as unified wholes. Thus, the perceived characteristics of even the simplest

Alliance Business Academy, Bangalore 19

Page 20: mba project

Attitude and Perception towards Shopping Malls

stimulus are viewed as a function of the whole to which the stimulus appears to belong.

This method of perceptual organization simplifies life considerably for the individual.

The specific principle underlined perceptual organization are often referred to by the

same name given the school of psychology that first developed it : Gestalt psychology.

Three of the most basic principle of perceptual organization are :

Figure ground

Grouping

Closure

2.12.6 PERCEPTUAL INTERPRETATION:

The interpretation of stimuli is also uniquely individual, because it is based on

what individual expect to see in light of their previous experience, on the number of

plausible explanation they can envision, and on their motives and interests at the time of

perception.

Stimuli are often highly ambiguous. Some stimuli are weak because of such

factors as poor visibility, brief exposure, high noise level, or constant fluctuation. Even

stimuli that are strong tend to fluctuate dramatically because of such factors as different

angles of viewing, varying distance, and changing levels of illumination.

2.13 CONSUMER IMAGERY:

Consumers have a number of enduring perceptions, or images, that are particularly

relevant to the study. Products and brands have symbolic value for individuals, who

evaluate them on the basis of their consistency with their personal pictures of themselves.

Some products seem to match an individual’s self image; others do not. Consumers

attempt to preserve or enhance their self image by buying products that they believe are

congruent with their self images, and avoiding products that are not.

Alliance Business Academy, Bangalore 20

Page 21: mba project

Attitude and Perception towards Shopping Malls

2.14 ATTITUDE:

Attitudes are an expression of inner feelings that reflect whether a person is

favorably or unfavorably predisposed to some “object”. Because they are an outcome of

psychological process, attitudes are not directly observable but must be inferred from

what people say or what they do.

2.14.1 THE ATTITUDE OBJECT:

The word object in consumer oriented definition of attitude is interpreted broadly

to include specific consumption - or marketing related concepts, such as product, product

category, brand, service, possession, product us, causes or issues, people, advertisement,

price, medium, or retailer.

In conducting attitude research, we tent to be object specific. For example, if we

are interested in measuring shoppers’ attitude towards three major shopping malls, then

our object might include Forum, 5th Avenue, and sukh sagar.

2.14.2 ATTITUDES ARE A LEARNED PREDISPOSITION:

There is a general agreement that attitudes are learned. This means that attitudes

relevant to purchase behaviour are formed as a result of direct experience with the

product, information acquired from others, or exposure to mass media advertising and

various forms of direct marketing. It is important to remember that while attitudes may

result from behaviour, they are not synonymous with behaviour. Instead, they reflect

either a favorable or an unfavorable evaluation of attitude object. As learned

predisposition, attitudes have a motivational quality; that is they might propel a consumer

towards a particular behaviour or repel the consumer away from a particular behaviour.

Alliance Business Academy, Bangalore 21

Page 22: mba project

Attitude and Perception towards Shopping Malls

2.14.3 ATTITUDES HAVE CONSISTENCY:

Another characteristic of attitude is that they are relatively consistent with the

behaviour they reflect. However, despite their consistency, attitudes are not necessarily

permanent; they do change.

2.14.4 ATTITUDES OCCUR WITHIN THE SITUATION:

Attitude occur within the situation i.e., events or circumstances that, at a particular

point in time, influence the relationship between an attitude and behaviour. A specific

situation can cause consumer to behave in ways seemingly inconsistent with their

attitudes.

2.14.5 STRUCTURAL MODEL OF ATTITUDE:

Tricomponent Attitude Model:

Alliance Business Academy, Bangalore

Conation

Affect

Cognition

22

Page 23: mba project

Attitude and Perception towards Shopping Malls

According to Tricomponent model, attitudes consist of three major components:

1. Cognitive component: The first component of this model consists of a person’s

cognitions, that is the knowledge and perceptions that are acquired by a

combination of direct experience with the attitude object and related information

from various sources. This knowledge and resulting perceptions commonly take

the form of beliefs, that is, the consumer believes that the attitude object possesses

various attributes and that specific behaviour will lead to specific outcomes.

2. Affective component: A consumer’s emotions or feelings about a particular

product or brand constitute the affective component of the attitude. These

emotions and feelings are frequently treated by consumer researchers as primary

evaluative in nature. Affect – laden experiences also manifest themselves as

emotionally charged states. Research indicates that such emotional states may

enhance or amplify positive or negative experiences and that later recollection of

such experiences may impact what comes to mind and how the individual act.

3. Conative component: Conation, the final component of the model is concerned

with the likelihood or tendency that an individual will undertake a specific action

or behave in a particular way with regard to the attitude object. Conative

component may include the actual behaviour itself.

2.14.6 ATTITUDE FORMATION:

Attitude formation is divided in to three areas:

How attitudes are learned

Attitude formation is nothing but shift from having no attitude toward a given

object to having some attitude towards it. This shift from no attitude to an attitude is a

result of learning. Learning theories related to attitude formation are

Classical Conditioning

Instrumental Conditioning

Cognitive Learning theory

Alliance Business Academy, Bangalore 23

Page 24: mba project

Attitude and Perception towards Shopping Malls

The sources of influence on attitude formation

Sources of influence on attitude formation are

Direct Experience

Influence of Family and Friends

Direct Marketing

Exposure to Mass Media

Impact of personality

Personality also plays a critical role in attitude formation. For example,

individuals with a high need for cognition are likely to form positive attitudes in response

to ads or direct mails that are rich in product related information.

2.15 CONSUMER DECISION MAKING PROCESS:

This model of consumer decision making reflects the cognitive consumer and, to

some degree, the emotional consumer. The model is designed to tie together many of the

ideas on the consumer decision making and consumption behaviour. It does not presume

to provide an exhaustive picture of the complexities o consumer decision making. Rather,

it is designed to synthesize and coordinate concepts into a significant whole. The model

has three major components: input, process, and output.

Input:

The input model of consumer decision making model draws an external

influence that serve as source of information about the particular product and influence a

consumer’s product – related values, attitudes, and behaviour. Chief among these input

factors are the marketing mix activities and the nonmarketing sociocultural influences.

Process:

The process component of the model is concerned with how consumers make

decision. To understand process component we must consider the influence of the

Alliance Business Academy, Bangalore 24

Page 25: mba project

Attitude and Perception towards Shopping Malls

psychological concepts which represents the internal influences that affect consumers’

decision making process. The process component consists of three stages namely

Need recognition

Prepurchase search

Evaluation of alternatives

Output:

The output portion of the consumer decision making model concerns two

closely associated kinds of postdecision activity

Purchase behaviour

Post purchase evaluation

Alliance Business Academy, Bangalore 25

Page 26: mba project

Attitude and Perception towards Shopping Malls

Alliance Business Academy, Bangalore

Firm’s Marketing EffortsProductPromotionPriceChannels of distribution

Sociocultural EnvironmentFamilyInformal sources

Other noncommercial sources

Social classSubculture and culture

Need Recognition

Prepurchase Search

Evaluation of Alternatives

Psychological FieldMotivationPerceptionLearningPersonalityAttitude

Experience

External Influences

Consumer Decision Making

PurchaseTrial

Repeat Purchase

Postpurchase Evaluation

Postdecision Behavior

Input

Process

Output

Consumer Decision Making Process

26

Page 27: mba project

Attitude and Perception towards Shopping Malls

Even though India has well over 5 million retail outlets of all sizes and styles (or

non-styles), the country sorely lacks anything that can resemble a retailing industry

in the modern sense of the term. This presents international retailing specialists with

a great opportunity.

It was only in the year 2000 that the global management consultancy AT Kearney

put a figure to it: Rs. 400,000 crore (1 crore = 10 million) which will increase to Rs.

800,000 crore by the year 2005 – an annual increase of 20 per cent.

Retailing in India is thoroughly unorganised. There is no supply chain management

perspective. According to a survey b y AT Kearney,  an overwhelming proportion

of the Rs. 400,000 crore retail market is UNORGANISED. In fact, only a Rs.

20,000 crore segment of the market is organised.

As much as 96 per cent of the 5 million-plus outlets are smaller than 500 square feet

in area. This means that India per capita retailing space is about 2 square feet

(compared to 16 square feet in the United States). India's per capita retailing space is

thus the lowest in the world (source: KSA Technopak (I) Pvt Ltd, the India

operation of the US-based Kurt Salmon Associates).

Just over 8 per cent of India's population is engaged in retailing (compared to 20 per

cent in the United States). There is no data on this sector's contribution to the GDP.

From a size of only Rs.20,000 crore, the ORGANISED retail industry will grow to

Rs. 160,000 crore by 2005. The TOTAL retail market, however, as indicated above

will grow 20 per cent annually from Rs. 400,000 crore in 2000 to Rs. 800,000 crore

by 2005 (source: survey by AT Kearney)

Given the size, and the geographical, cultural and socio-economic diversity of India,

there is no role model for Indian suppliers and retailers to adapt or expand in the

Indian context.

Alliance Business Academy, Bangalore 27

3. RETAILING INDUSTRY INDIA

Page 28: mba project

Attitude and Perception towards Shopping Malls

The first challenge facing the organised retail industry in India is: competition from

the unorganised sector. Traditional retailing has established in India for some

centuries. It is a low cost structure, mostly owner-operated, has negligible real estate

and labour costs and little or no taxes to pay. Consumer familiarity that runs from

generation to generation is one big advantage for the traditional retailing sector.

In contrast, players in the organised sector have big expenses to meet, and yet have

to keep prices low enough to be able to compete with the traditional sector. High

costs for the organised sector arises from: higher labour costs, social security to

employees, high quality real estate, much bigger premises, comfort facilities such as

air-conditioning, back-up power supply, taxes etc. Organised retailing also has to

cope with the middle class psychology that the bigger and brighter a sales outlet is,

the more expensive it will be.

The above should not be seen as a gloomy foreboding from global retail operators.

International retail majors such as Benetton, Dairy Farm and Levis have already

entered the market. Lifestyles in India are changing and the concept of "value for

money" is picking up.

India's first true shopping mall – complete with food courts, recreation facilities and

large car parking space – was inaugurated as lately as in 1999 in Mumbai. (this mall

is called "Crossroads").

Local companies and local-foreign joint ventures are expected to more

advantageously positioned than the purely foreign ones in the fledgling organised

India's retailing industry.

These drawbacks present opportunity to international and/or professionally

managed Indian corporations to pioneer a modern retailing industry in India and

benefit from it.

Alliance Business Academy, Bangalore 28

Page 29: mba project

Attitude and Perception towards Shopping Malls

The prospects are very encouraging. The first steps towards sophisticated retailing

are being taken, and "Crossroads" is the best example of this awakening. More such

malls have been planned in the other big cities of India.

An FDI Confidence Index survey done by AT Kearney, retail industry is one of the

most attractive sectors for FDI (foreign direct investment) in India and foreign retail

chains would make an impact circa 2003.

Alliance Business Academy, Bangalore 29

Page 30: mba project

Attitude and Perception towards Shopping Malls

With its first few malls receiving a warm welcome, Bangalore seems to be

competing with Mumbai and Delhi to become a mall city. With the city’s youth spending

more and more time in malls, a new stereotype of ‘mall rats’ is fast emerging in

Bangalore.

‘Ground-Floor Opportunities for Retail in India,’ a report by Jullia Hanna,

Associate Editor, Harvard Business School, has some interesting sound bytes from

leading Indian retailers. Kishore Biyani, Chief Knowledge Officer, Pantaloon Retail

advises mall owners to refrain from copying western models as Indian consumers have a

preference pattern that is far different from consumers in the West. According to him,

Indian mall owners should adopt a flexible model that captures the value chain and

allows them to evolve with the customer. From a sector perspective, mall speciality stores

that sell goods such as toys or watches should do well. Neel Raheja, Executive Director,

Shoppers’ Stop, estimated that although about 200 malls will be built in India, only 10

per cent of these would be successful. According to him, the weather would play a crucial

role, with shopping indoors being viewed as an attractive prospect in the monsoons.

Alliance Business Academy, Bangalore 30

3.1 GARDEN CITY’S MALL CALL

Page 31: mba project

Attitude and Perception towards Shopping Malls

Bangalore Central: .

Bangalore Central from Pantaloon saw at least 20,000 footfalls a day, just a few

days after its launch. From a customer experience point of view, it is a large and

comfortable department store. Malls are just a part of the evolution of shopping, and

customers expect the comfort and convenience of malls whenever they shop. While

Bangalore Central is spacious and ideal for shopping with the family, the absence of large

walkways may serve to deter mall rats. The food court is good and is frequented by

shoppers but the same cannot be said for certain other sections like books and

kitchenware. However, unlike a mall that has different brands located at various ends of

the mall, a multi-brand seamless mall like Bangalore Central makes it possible for

shoppers to compare brands with ease while they shop. This also means that the store can

reallocate space more easily based on merchandise/brand performance and customer

feedback. Just selling mall space is not the Bangalore Central priority, rather it provides

to its customers, branded items are sold at MRP and value addition from their side is the

shopping comfort. For the brands, promotion/marketing and ensuring footfalls is

Bangalore Central’s responsibility.”

Purva Mall: .

Purva mall is still in the process of selling mall space and has just had a soft

launch, as the entrance from MG Road is still under some construction. Though small,

this mall boasts of a prime location. A good tenant mix and an entrance from MG Road

may work wonders for this strategically located mall.

Sigma Mall: .

Located on Cunningham Road, this mall will largely cater to North Bangalore

inhabitants residing within a 5-7 km radius. This mall appears to be paying a great deal of

attention to the trade mix and space allocation. As Pantaloon has no presence in North

Bangalore, it is taken up most of the first floor at Sigma. Indus league, Stori, Ruby

Tuesday and Royal Sporting are others who are reportedly considering this mall. In

Alliance Business Academy, Bangalore 31

3.2 SHOPPING CENTRES IN BANGALORE

Page 32: mba project

Attitude and Perception towards Shopping Malls

addition, Xenon plans to have a 4-screen multiplex at Sigma. With 1,53,000 sq ft of floor

space, Sigma looks spacious and well planned.

5th Avenue:

Located on Brigade Road, the shopping mall on four levels where guys spend

their time staring at the girls. Has music shops, men's and women's clothing, the

Supermarket, a beauty parlour, gaming centers, Time and Again disco, a food joint,

jewellery shops and shoes. Definitely worth a browse and even if you don't buy anything

enjoy the escalator rides!

.

Mota Royal Arcade:

Also located at Brigade Road. A very popular hang-out place for teenagers and

adults alike. Houses the ever popular Only Place restaurant, notorious for its steaks and

desserts. Also has Fashion Flash, G's lanes for bowling and pool and the One Stop Shop.

Arihant Plaza:

Located at Commercial Street. Has everything your heart desires. An assortment

of foods to choose from, especially chocolates, biscuits and cookies. Sporty, casual and

formal wear for girls and guys. Great accessories also available here. Women also shop

here for cosmetics. Electronics with great deals available.

.

Devatha Plaza:

Located at Residency Road. Well known for flowers, clothes, Casa Piccola and

Raaga, in addition to more food joints. If you have any ailment there are also a number of

doctors and dentists to choose from. .

.

Safina Plaza:

Located at Infantry Road. Sales and discounts are held here. Shop for clothes,

shoes, handicrafts and grab a bite to eat at many of the food joints at this place.

.

Alliance Business Academy, Bangalore 32

Page 33: mba project

Attitude and Perception towards Shopping Malls

Shopper's Stop:

At the Mcgrath Road. A one-stop shopping experience for the discerning shopper.

The best brands available in India and there's a lot of space to move around. The window

displays are also attractive and of international standard.

Alankar Pearl Plaza:

Located at the prime place Kempegowda Road. A very popular escalator for

families that like to travel. Famous for its wide range of garments. Nice and spacious

shop.

Hong Kong Market:

Gandhinagar, below Tribhuvan Theater. Sell imported goods like cutlery,

chocolates, electronics etc. Shop is at own risk though because can get conned.

Burma Bazaar:

Located at Gandhinagar, opposite Tribhuvan theater. Mostly famous for imported

goods, although it's not as good as the Chennai one. Famous for selling smuggled goods.

National Market:

Located at Gandhinagar, near Sukh Sagar restaurant. Sells higher quality and up-

market goods. Cheaper music systems and accessories available here.

Alliance Business Academy, Bangalore 33

Page 34: mba project

Attitude and Perception towards Shopping Malls

Brigade Road:

This is a popular hangout for young people, because there is a lot of entertainment

available, as well as a lot of shopping options. There is Rex (the best movie theatre in

town). There is Cyber Café (coffee and the Internet). There is bowling alley, a

discothèque, a video game parlor, eating places (including The Only Place, which serves

great steaks and desserts) and Nilgiri’s (which is a really good grocery store). There are

showrooms for brands like Lee, Van Heusen, and Louis Phillippe. Also can shop a lot of

unbranded clothes, shoes and jewelry.

There are malls like Fifth Avenue and Mota Royal Arcade, which are worth

exploring. We can get a range of items and the stores range from low budget to

exorbitant.

Commercial Street:

This is a strictly shopping area. There are no entertainment outlets as it would be

on Brigade Road. We can buy clothes, dress materials, jewelry, and food.

Woody’s serves good South Indian food. They also have continental and North

Indian items. This place is definitely value for money.

Coffee Day is popular with people of all ages. The ambience is excellent—

informal, discreet and generally appealing. They have different kinds of coffee, and they

also have items like sandwiches, pizzas and pies. Natural’s is heaven on earth for ice-

cream lovers.

The Cakeshop of the Taj, with its pastries, cakes and patties, is located right next

to Natural’s.

The side streets are definitely worth exploring. Clothes and jewelry here tend to

be inexpensive, especially if they are unbranded.

Alliance Business Academy, Bangalore 34

3.3 POPULAR SHOPPING AREAS

Page 35: mba project

Attitude and Perception towards Shopping Malls

M.G. Road:

M.G.Road is a very popular commercial area. There is a large number of sari

stores, like Deepam Silks and Prasiddhi. There are plenty of stores that sell saris as well

as other clothes. The Raymond’s and Cotton World showrooms are located here.

There are two movie theatres—Plaza and Symphony. Gangaram, a well-

established bookstore, is a very popular stop, as is Higgin Botham, which is also a

bookstore, but much smaller.

Alliance Business Academy, Bangalore 35

Page 36: mba project

Attitude and Perception towards Shopping Malls

Bangalore witnessed a fair share of India's retailing action last year with the

successful launch of Lifestyle Department Store, ITC Wills Sport, Planet M, numerous

Baristas and the famous Big Bazaar and Family mart hypermarket. Besides, the city's

first shopping mall, the 100,000 sq. ft. Leela Galleria, commenced leasing. A number of

retailers, including the likes of Pepe Jeans, Anokhi, DAKS, Hidesign and the Platinum

Guild, are currently busy with their interior fit-outs, with another 18 finalising plans, in

preparation for a mid-year launch. The city is already ready with one more shopping

mall, and a very complimentary one to the first one, the 3,50,000 sq. ft. Prestige Forum,

in the wealthy residential district of Koramangala. Developed by the Prestige Group, it

is claimed, is Bangalore's answer to the Deira City Centre of Dubai, UAE, with one of

India's largest Multiplex anchoring it. .

Forum is located in the heart of Koramangala, Prestige Forum occupied a large

plot of land with a wide frontage along Hosur Road. It is very close to the intersection of

the busy Hosur Road and Aguodi Road, with entrances from both the roads. Adjacent to

the high-end Acropolis residential apartments, the site is a stone's throw from the Big

Bazaar, towards Hosur. The location has a well researched catchment area. It has target

audience covering the high-end residential zones of Koramangla, Jaya Nagar, J.P.

Nagar, HSR Layout, BTM Layout and Hosur road. .

Covering as it does 3,50,000 sq. ft. across four levels in addition to the basements,

the development mix comprises of a quarter million sq.ft. of retail, a PVR (Priya Village

Roadshow) multiplex, the largest in the country so far, a family entertainment centre and

a 1000-odd capacity multi-storey car-park that runs alongside the Mall structure. In

terms of layout, the multiplex-anchor occupied practically the entire third floor, with

three floors of shops of international sizing, laid out around the Atrium, allowing high

visibility to each store. Store sizes vary from 700 sq. ft. to 1,500 sq. ft., with some large

stores, a Mini Anchor of 15,000 sq. ft., and an Anchor Store of 35,000 sq. ft.

Alliance Business Academy, Bangalore 36

3.4 ADDING NEW DIMENSIONS TO BANGALORE

Page 37: mba project

Attitude and Perception towards Shopping Malls

Prestige Forum has one of Bangalore's first McDonald's outlets, a significant

amount of F&B across categories (including a food-court), a large Super Market, one,

perhaps two, departmental stores, a large music store and retail, broad tenant-mix for

various levels, that caters to all segments, ages and preferences. As the building is

beautifully curtain-walled, using aluminium cladding and solar glazing, with

environmental graphics and an excellent lighting concept for post-dusk appeal.

Alliance Business Academy, Bangalore 37

Page 38: mba project

Attitude and Perception towards Shopping Malls

A shopping centre or a store that is favoured by locals, tourists and travellers alike

for shopping; emerging as a retail destination for consumers and for brands as the most

profitable avenue for retailing. .

Hall of fame: Phoenix Mills, Forum (Kolkata), Lifestyle, Big Bazaar

Winner: SHOPPERS' STOP

Performance details year 2003-04

Outlets operational: 15 across

Outlets opened in 2003-04: 1

Turnover in year 2004: Rs 404 crore Pioneers of department store concept,

Shoppers' Stop chain today is present in nine Indian cities. A member of the

Intercontinental Group of Departmental Stores, Shoppers' Stop got the 'Superbrand' status

in 2003. Its main offerings include clothing sportswear, cosmetics, watches, eyewear,

footwear, bags, leather accessories and home products. Its private labels are Stop, Life,

Kashish and Vettorio Fratini.

Alliance Business Academy, Bangalore 38

3.5 RETAIL DESTINATION OF THE YEAR

Page 39: mba project

Attitude and Perception towards Shopping Malls

4.1 AVERAGE TIME SPENT ?

The average of the approximate time spent by the shoppers surveyed:

The survey regarding it indicated that Sukh Sagar was viewed a just a shop and go

MALL since the average time spent by most of the shoppers is less than 1 hour (82.5%).

5th Avenue showed a better average spending time, less than an hour (47.5%) but still the

staying average of more than an hour was still far lower than Forum. The same wasn’t the case

with Forum instead most of the shoppers spent an average time of more than 1 hour and most

shoppers were here to stay longer.

A close look at the demographic variables showed that most of the shoppers to Forum

were teenagers between 17-26 years, monthly household income more than 20000. The PVR

theatres were also the reason which increased the average time spent. The shoppers also stated

that Forum was a complete MALL with shopping stuff like designer wear, books, crystals,

cosmetics, jewellery, gifts, durables, toys, groceries to Entertainment like the theatres, kids’

hangout to great food. This could be the reason for a more average spending time in Forum.

4.2 SHOPS VISITED IN THE MALL:

Alliance Business Academy, Bangalore 39

4. ANALYSIS

Graph No 1

Page 40: mba project

Attitude and Perception towards Shopping Malls

4.3 FOOT FALLS TO PURCHASE RATIO:

The conversion rate at each MALL:

Alliance Business Academy, Bangalore 40

Page 41: mba project

Attitude and Perception towards Shopping Malls

The result being as expected Sukh Sagar’s conversion rate was low. Only 37.5%

of shopper actually purchased at Sukh Sagar. The conversion rate of 5th Avenue fared

better. 52.5% of shopper who visited purchased there.

Forum showed the best conversion rate 92.5%. A further probe into the issue

reasoned that Sukh Sagar is located in a place where there are lot many alternatives and

an option of cheaper bargain. Shoppers visited it along with going to national market,

Alankar plaza, City center etc.

Forum was altogether a customer oriented MALL situated in the catchment area

with all options at a single MALL, shopper’s visited it a motive to buy, be it

entertainment or food or shopping.

4.4 THE PURCHASES MADE?

A graph showing the products brought from Forum:

Alliance Business Academy, Bangalore 41

Graph No 3

Page 42: mba project

Attitude and Perception towards Shopping Malls

A question asked regarding the purchases made at Forum showed these results:

27 Shoppers had bought food/beverages from the MALL. The best brands

McDonald’s (only this single outlet), KFC, Transcend, Pizza Hut are located at Forum.

19 shoppers visited for Entertainment. The PVR cinema’s is one of the best

cinema theatres in Bangalore today. Designer wear and Garments also attracted the

crowd. Landmark also attracted the crowd to purchase books.

The Durables and electronic items were the least purchased.

4.5 THE PURCHASES MADE?

A graph showing the products brought from 5th Avenue:

Alliance Business Academy, Bangalore 42

Graph No 4

Page 43: mba project

Attitude and Perception towards Shopping Malls

Garments and Designer clothes were purchased more here in comparison to

products like books, music, jewellery, shoes etc. Next in line was the food/beverage.

The shoppers who are accompanied with family would prefer buying cosmetics,

toys, jewellery, Durables and electronics etc. But those who come with friends and

colleagues and between the age of 15-35 years would prefer more of garments, designer

wear, accessories like bags, belts etc. As 5 th Avenue is in brigade road it would attract the

15-35 year crowd. Hence this result. A very similar case is with Forum too!

4.6 THE PURCHASES MADE?

A graph showing the products brought from Sukh Sagar:

Alliance Business Academy, Bangalore 43

Graph No 5

Page 44: mba project

Attitude and Perception towards Shopping Malls

This MALL is situated in Gandhi nagar popularly known as Majestic. It is

situated in the heart of the city. The other two shopping MALLS Alankar Plaza, City

Center are located close by. This area is known for cheaply priced clothing. Crowd come

to this area for garments and the graph shows the same about the purchase of the

shoppers. Thus graph showed a purchase of non branded garments (18) higher than

branded or designer wears (11).

Durables and Electronic include mobile, chargers, Cd’s etc which are priced less

here. People come to buy cassettes, cd’s, DVD’s etc. No place here for Entertainment

thus justifies the less average spending time of shoppers.

4.7 LOCATION CONVENIENCE:

The place the shoppers currently came from:

Alliance Business Academy, Bangalore 44

Graph No 6

Page 45: mba project

Attitude and Perception towards Shopping Malls

0

2

4

6

8

10

12

14

16

18

20

No

of R

esp

on

ces

Forum 5th Avenue Sukh Sagar

Shopping Malls

Home

Office

Shopping areas

Other Malls

Other Locations

Forum:

Most of the shoppers i.e. 15 had come from home and 10 from office. So a total of

25 had directly, exclusively come to visit only Forum. Forum is located in the heart of

Koramangala. It has target audience covering the high-end residential zones of

Koramangla, Jaya Nagar, J.P. Nagar, HSR Layout, BTM Layout and Hosur road. Thus

Forum is in a catchment area. Most shoppers are from the areas mentioned above.

6 respondents had come from other shopping MALLS Globus and Big Bazaar

located close by. But this is a too low population which again suggests that shoppers

exclusively come to Forum. There are no shopping areas near by hence only 3 out of 40

had come from these areas. 6 shoppers were from other locations which is still low may

be because it is relatively new compared to the other MALLS.

5th Avenue:

8 shoppers and 9 shoppers had come from home and office respectively. A total

of 17 had come to 5th Avenue for shopping. 5th Avenue is located in the Brigade road. 10

shoppers came from the nearby shopping area like M.G.Road, Residency Road,

Commercial Street. 7 had visited after going to other MALLS like Safina Plaza, Mota

Alliance Business Academy, Bangalore 45

Graph No7

Page 46: mba project

Attitude and Perception towards Shopping Malls

Royale Arcade etc. Brigade Road is a heard location for other location i.e. outstation

shoppers hence 8 of the shoppers were from other location.

Sukh Sagar:

Located in Gandhi bazaar also called Majestic.8 and 5 shoppers respectively had

come to visit it from home and office. 10 had come from the shopping area, Majestic

which is itself a huge shopping area. 8 had come to Sukh sagar from other MALLS like

Alankar Plaza, City center etc. 9 shoppers were from other location i.e. outstation.

Majestic is a famous known location for outstations.

The location is a commercial place hence people visiting directly from home and

office are relatively low compared to the above 2 MALLS.

4.8 SHOPPER’S ACCOMPANIED BY:

Alliance Business Academy, Bangalore 46

Page 47: mba project

Attitude and Perception towards Shopping Malls

The shoppers’ usually bring along the following people as mentioned below in graph to

the MALLS:

Forum:

Most of the shoppers’ visit the MALL along with friends and colleagues (total

20). This is because most of the shoppers’ are between the age group of 15-25, which

means that most of the college goers come to Forum. Forum is located near colleges like

Christ college, Jyoti Nivas college and most of the software engineers too travel to this

MALL with colleagues too. It is also located near a fine residential area so there is a

equal proportion of family, spouse, children etc. Also family, children and spouse are

accompanied here because only here there is a place for entertainment.

5th Avenue:

Alliance Business Academy, Bangalore 47

Graph No 8

Page 48: mba project

Attitude and Perception towards Shopping Malls

Most of the shoppers’ visit the MALLS along with friends and family. Located at

Brigade road, it’s a hot destination for youngsters to come along with friends (13). The

accompanied being from outstation i.e. new couples (family = 8) is more as Brigade and

M.G. Road is projected to be honey mooner’s destination. The shopping area around is

full of entertainments hence the rate of family, spouse, children is good but lower than

Forum because Forum is a MALL dealing with all shoppers’, satisfying them. 5 th Avenue

is a MALL though lagging in a total entertaining package is located in a perfect location

too.

Sukh Sagar:

Sukh Sagar located in a commercial area attracts the accompanied being Family

and any other (out stationed people-Mostly relatives) accounting to 20 shoppers choosing

it. Accompanied by colleague is low because the area is not close to job holders. The

prime purpose of visiting this MALL being only to buy garments, durables etc, no place

for entertainment family and children accompanying them is low.

4.9 RECALL OF THE MALLS:

Alliance Business Academy, Bangalore 48

Page 49: mba project

Attitude and Perception towards Shopping Malls

Asking to recall the MALLS in Bangalore city the total of 120 samples gave the

above results. Looking at the demographic variables age and income the analysis said the

following:

Forum, 5th Avenue were recalled highest by the shoppers’ between the age 15-25

and the monthly household income >20,000. Mota Royale Arcade seemed to be recalled

by the middle income group and recalled and visited more by shoppers’ because of the

location it is in. Forums’ aided recall was comparatively was lower as this a new MALL

and either people know about it or not at all. It has yet to be known to outstation people.

Sukh Sagar, Alankar Plaza, City center were recalled by the middle age group and

a monthly household income <10000 to 20000. Alankar plaza had more number visitors

as compared to Sukh Sagar because it is a old MALL and most outstation shoppers’ are

well acquainted with it.

4.10 FREQUENCY?

The frequency of visit by the 120 interviewed shoppers’ :

Alliance Business Academy, Bangalore 49

Graph No 9

Page 50: mba project

Attitude and Perception towards Shopping Malls

The frequency of visit to Forum showed that most of them visited nearly every

week to twice a month i.e. 54 out of 120. Forum is the trendiest place to be today. A one-

stop shop for both shopping and recreation attract about 45% of the respondents. Only 4

respondents had never visited Forum. Closer look at these respondents revealed that these

respondents either are from a place where it is inconvenient to reach Forum or were out-

stationed who had not heard about Forum.

Alliance Business Academy, Bangalore 50

Graph No 10

Page 51: mba project

Attitude and Perception towards Shopping Malls

> 2

-3 t

imes

a

wee

k

Eve

ry w

eek

Tw

ice

a m

th

On

ce

a m

th

On

ce

in

2-

3 m

ths

.

On

ce

in

6

mth

s.

Fir

st t

ime

Nev

er

To

tal

Forum 16 24 14 13 11 32 6 4 120

Sukh Sagar 11 12 14 34 22 19 2 6 120

5th Avenue 17 31 21 15 11 8 6 11 120

Mota

Royale

8 11 17 29 25 16 8 6 120

City Centre - 3 18 35 29 16 - 19 120

Alankar Plaza

- - 14 32 37 20 - 17 120

720

Table-2

Sukh Sagar showed that 67% of the respondents visited once a month to once in

six months. The main purpose of the respondents visiting here is shopping as there are

no recreational facilities here. 6 respondents had never visited it as they were not aware

about its existence.

In 5th Avenue 58% of the respondents visited 2-3 times a week to twice a month.

5th Avenue again has recreational facilities and its location advantage being at Brigade

Road has been the reason for the frequent visits. 11 of the respondents had never been to

5th Avenue either they had never visited Brigade road or they don’t go to Brigade road to

visit MALL but for enjoyment.

Mota Royale Arcade which is also located near the same location showed

different results. 59% of the people visited it from twice a month to once in 2-3 months.

This could be attributed to the absence of recreational facilities in the MALL.

Alliance Business Academy, Bangalore 51

Page 52: mba project

Attitude and Perception towards Shopping Malls

68% of the respondents visit City Center visit twice a month to once in 2-3

months. 19 respondents had never visited this MALL reason figured out that most of the

upper segment (income) felt that such MALL were not for their class and had lesser

belief about product quality in this MALL.

Similar was the case with Alankar Plaza, 74% of the respondents visited it once a

month to once in six months. Attributing this frequency with the type of respondents i.e.

out stationed usually the frequency is lower. The respondents who had not visited the

MALL gave the same reason as given for City Center.

4.11 MODE OF TRANSPORT

Mode of Transport used by shoppers while going to Mall:

Alliance Business Academy, Bangalore 52

Page 53: mba project

Attitude and Perception towards Shopping Malls

Forum a place visited by youngsters had of course the largest mode of transport as

(13 out of 40) two wheeler, followed by the reach class mode of transport, the car (11 out

of 40). Transportation through bus, auto were comparatively lower then other MALLS.

Again two wheelers were voted to be the largest mode of transport where most of

office-goers own a bike. Bus followed next, traveled through by the out-stationed

respondents. Auto taken were less as traveling from Majestic to Brigade would cost

much to the out-stationed.

Sukh Sagar, most respondents being middle class responded bus as a means of

transport(20 out of 40). Two wheeler followed was chosen by the localities as a mode.

Auto were less as after reaching Majestic Bus Stand Sukh Sagar is at a walk able distance

and the one ways effect too.

4.12 MEANS OF THE ATTRIBUTES USED TO MEASURE ATTITUDE:

Alliance Business Academy, Bangalore 53

Graph No 11

Page 54: mba project

Attitude and Perception towards Shopping Malls

Forum 5th Avenue Sukh Sagar

Attribute Mean Score Mean Score Mean Score

Mall Overall 6.40 4.63 4.31

Space between Stores 6.7 4.5 4.3

Ambience (Bright/Dull Lights) 6.6 5.1 5.5

Layout (Organised/Unorganised) 6.7 5.3 5.2

Shopping Experience 6.7 5.9 3.3

Convenient Location6.4

6.4 6.3

Big Mall 6.5 5.1 4.6

Service 6.3 4.5 4.5

Reasonable Prices For Value6

6.1 6

Clean6.43

5.45 4.5

Fast Checkout6.53

4.15 3.2

Display6.18

4.8 3.9

Easy to find items6.23

4.38 2.5

Impression6.8

5.24 4.12

Physical Condition6.4

3.6 5.63

Parking6.23

2.54 2.1

Comfortable Elevation6.6

2.95 3.42

Pleasant Smell Within6.33

3.45 5.42

Pleasant Music Within5.05

4.5 4.21

Security5.88

4.11 3.51

Table-3

Alliance Business Academy, Bangalore 54

Page 55: mba project

Attitude and Perception towards Shopping Malls

S.No Mall Mall Mean Comments

Alliance Business Academy, Bangalore 55

Page 56: mba project

Attitude and Perception towards Shopping Malls

1 Forum 6.36 10 out of 19 attributes are rated higher than the mall

mean. Attributes do not dip too low on the negative

side mean. Most of the attributes are rated such that

their means are very close to the mall mean.

2 5th

Avenue

4.63 9 out of 19 attributes are rated higher than mall mean.

Most of the attributes dip low on the negative side of

mean for e.g., Parking, Elevation, Pleasant Smell

Within, checkout. Attributes rated higher than the

mean are mostly the ones related to the impression of

the mall rather than the functional features of the mall.

3 Sukh

Sagar

4.31 9 out of 19 attributes are rated higher than mall mean.

Here mall mean itself is too low and some of the

attributes like Parking, Security, Easy to find items

and many are rated too low i.e. they dip too low on the

negative side of mean. Attributes rated high are

Ambience, Convenient location, Value for money etc

which shows that it is rated higher on impression

related attributes rather than functioning of the mall.

4.13 HYPOTHESIS TEST:

ONE-SAMPLE STATISTICS

Alliance Business Academy, Bangalore 56

Page 57: mba project

Attitude and Perception towards Shopping Malls

STATEMENTS

A - I visit malls only during weekends

B - I visit every mall that comes up in the city

C - Location of the mall is an important consideration while deciding to visit it

D - I consider the name of the mall before deciding to visit it

E - Given a choice, I would prefer going to nearby shopping areas

F - I don’t mind paying more in malls for the ambience it provides

G - I would visit a mall because it’s a one stop shop

H - I visit a mall mainly for shopping

I - I visit a mall mainly for hanging out / window shopping

N Mean Std. Deviation Std. Error Mean

A 120 .2750 1.4498 .2292

B 120 -.3750 1.0786 .1705

C 120 1.0500 1.0849 .1715

D 120 .2500 .9268 .1465

E 120 1.4000 .8412 .1330

F 120 .9000 .9819 .1553

G 120 -.2000 .9923 .1569

H 120 -.1250 1.1808 .1867

I 120 -.3750 1.1916 .1884

Table-4

The table shows the mean value of the rating given by the respondents regarding

Shopping Mall

Alliance Business Academy, Bangalore 57

Page 58: mba project

Attitude and Perception towards Shopping Malls

Null hypothesis; H0 - There is no significance difference between the sample mean and

the assumed mean.

Alternate hypothesis: H1 There is significance difference between the sample mean and

the assumed mean.

Sample means as shown in the table

Assumed mean = 0

Significance level = 0.00

The significance level is less than 0.005, therefore reject null hypothesis.

There is significance difference between the sample mean and the assumed mean.

The important parameters which shoppers consider for choosing the Mall to shop

are those whose sample mean (as shown in table) are greater than assumed mean.

According to the shoppers the below mentioned parameters are the important

considerations to choose shopping.

Location of the mall is

Prefer going to nearby shopping areas

Paying more in malls for the ambience it provides

Alliance Business Academy, Bangalore 58

5. SUMMARY AND FINDINGS

Page 59: mba project

Attitude and Perception towards Shopping Malls

5.1 MAIN FINDINGS:

Behavioural Profile of the Shoppers:

Most of the malls visited by people, if at all more than one, are for sure in the

neighborhood or at locations they already frequent. Location, as a criterion, becomes

more important for older people above 36 years of age and for younger ones in the

21-25 years age group.

Awareness about the malls situated in city is very high; Forum enjoys highest

spontaneous recall of 76.66% and least aided recall of 11.66%, as Forum has added a

new dimension to the city it enjoys visiting of 81.66%. 5th Avenue enjoys

spontaneous recall of 52.5%, aided recall of 22.5% and 65.83% shoppers visited the

mall. Sukh Sagar enjoys spontaneous recall of 35%, aided recall of 17.5% and 55%

shoppers visited the mall. Most of the awareness is spread through newspapers where

either the mall advertise or the stores that advertise mention their locations by mall

names. Other means of awareness mentioned included word of mouth through family

and friends.

Frequency of visit to malls clearly depends on whether the mall is in the vicinity of

their residence or workplace. The exception being youngsters who frequent malls as a

hang out area where they indulge in window – shopping and entertain themselves

with games and food.

There were a variety of reasons quoted for visiting a mall which can be clubbed as

follows:

For shopping (amongst all categories)

For the variety of brand they house

For entertainment (movies and other events)

For recreational activities

For consumption of various food items

As an outing destination with families

As a sophisticated hangout area with friendds

Attitude of the shoppers towards mall:

The concept of shopping, food and entertainment being clubbed under one roof is

accepted very well across geographies. Currently, the main value provided by malls is the

Alliance Business Academy, Bangalore 59

Page 60: mba project

Attitude and Perception towards Shopping Malls

convenience of housing so many facilities and brands under one roof. It is one – stop

shop for them where they can enjoy themselves as well as fulfill their shopping needs.

Another advantage is that people are assured of the quality of products in a mall. There

were no particular disadvantages mentioned except that malls are usually not at

convenient locations for those not belonging to the neighbourhood. Location, parking

space and the store mix were three prominent factors that people saw as important in

relation to a mall.

Imagery of the Mall:

Forum: Forum was personified as unisex, a person in the age group of 20 – 25 years who

is rich. He/she is glamorous, trendy, fun loving, sporty and ultra modern. He/she is also

friendly and family oriented, snobbish, easily approachable. Professionally, he/she is a

model or an actor involved in niche roles. He/she is looked upon as belonging to

rich/upper class.

5th Avenue: 5th Avenue was personified as unisex, a person in the age group of 20 – 25

years who is rich. He/she is trendy, fun loving, blossoming and right mix of tradition and

modernity. He/she is also friendly and family oriented. He/she is looked upon as

belonging to rich or the upper middle class.

Sukh Sagar: Sukh Sagar was personified as unisex, a person in various age groups who

belongs to upper middle class or middle class that gives an impression of either a

confused imagery or it could also mean that the mall is meant for people of all age

groups.

5.2 RECOMMENDATION:

MALL should be in a catchment area. For e.g. Forum got a competitive advantage of

this. Forum is located in the heart of Koramangala. It has target audience covering the

Alliance Business Academy, Bangalore 60

Page 61: mba project

Attitude and Perception towards Shopping Malls

high-end residential zones of Koramangala, Jaya Nagar, J.P. Nagar, HSR Layout,

BTM Layout and Hosur road.

The surrounding place also plays a key role. The locality has to be a place which is

inviting shoppers.

The conversion rate is also high in MALLS were there is a mix between shopping

experience and a recreational facilities. Inclusion of such facilities like theatre, games

increases the conversion rate.

The shoppers expect good restaurants in MALLS, a pleasant shopping and a attractive

ambience.

The shops the shoppers expect a MALL to have:

Garments, Designer wear, Gift shops, Shoe shops, Restaurant, Accessories,

Jewelry, Cosmetic, and Entertainment. Now-a-days they also shop for groceries

too.

The shops shoppers don’t visit are Home Furnishing, Durables and Electronic so

better not waste MALL space.

The Imagery and the reputation of the MALL is one of the crucial elements which

determine the type (demographics) of shoppers visiting it.

5.3 CONCLUSION:

”MALLS” as a concept is still not very clear in the minds of shoppers.

Recalls are dominated by Mega-stores like Shoppers’ Stop, Lifestyle, Globus etc rather

Alliance Business Academy, Bangalore 61

Page 62: mba project

Attitude and Perception towards Shopping Malls

than actual malls like Forum, 5th Avenue, Sukh Sagar, Mota Royale Arcade, Safina plaza.

In order for people to appreciate the benefits of a MALL, it is important for the mall

owner to make shoppers realize the difference between MALLS and other existing

formats in the retail industry. With so many MALLS opening up all around, it is

imperative for MALL developers to choose their catchment area, anchor stores and

positioning platform judiciously and know their target segment’s attitudes and behaviour

towards them.

Alliance Business Academy, Bangalore 62