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INTRODUCTION:A ''shopping mall''' or '''shopping centre''' is a building or set of buildings which contain retail units, with interconnecting walkways enabling visitors to easily walk from unit to unit. The population is moving towards the middle class or upper middle class this is resulting in the higher disposable income. A shopping center enclosed within a large structure; often two or three stories high, often designed around a central atrium; may have numerous stores, as well as entertainment facilities such as movie theaters, fast-food outlets, restaurants, and public areas. A shopping mall, shopping centre, shopping arcade, shopping precinct or simply mall is one or more buildings forming a complex of shops representing merchandisers, with interconnecting walkways enabling visitors to easily walk from unit to unit, along with a parking area — a modern, indoor version of the traditional marketplace.
In India there are three categories of malls- value malls(e.g. BigBazar), value cum-lifestyle mall (e.g. pantaloon) and Lifestyle malls(e.g. Treasure island).There are five malls in indore city. These are treasure island, central mall, C21 mall, Malhar mega mall, Mangal
city etc. In the present competitive world if any business organization has to survive it needs to keep an eye on various forces operating in the market. More over competitors constantly try to win over others. In this scenario, every business organization needs to monitor the changes taking place in the market so that they are not caught. Market research is an efficiency tool in the hands of a marketer that helps him to take changes taking place in the market. Shopping malls are operating in an increasingly competitive environment characterized by over capacity and declining customers (where the promotional activities of the mall are increasingly being used to differentiate the mall through image communication, increase visits and stimulate merchandise purchases Research on the use of marketing tools and measuring their effectiveness as driving factors of shopping malls. The report has been drawn up with the objective of identifying. and analyzing the promotional offers offered by the malls to attract more customers and other key factors and attributes, which influence consumers while deciding to visit a particular mall. Five shopping malls in Indore are chosen for the purpose of the study. Promotions/offers Generally, promotion is communicating with the public in an attempt to influence them toward buying your products and/or services.The word promotion is also used specifically to refer to a particular activity that is intended to promote the business, product or service. A store might advertise that it's having a big promotion on certain items, for instance, or a business person may refer to an ad as a promotion. A promotion might be a short-term price reduction, contest or sweepstakes, package giveaway, or free sample offer. A promotion might also be a single mailing within a direct mail campaign or series of advertisements that make up part of an ongoing print advertising campaign. The company can use any number of the promotional mix elements. These may include: - Advertising - On TV, Radio, Magazines. - Sales promotion - Special deals over a period of time. Sales promotion is an important component of a small business's overall marketing strategy, along with advertising, public relations, and personal selling. The American Marketing Association (AMA) defines sales promotion as "media and non media marketing
Some common types of sales promotion include samples. and personal selling). Sales promotion acts as a competitive weapon by providing an extra incentive for the target audience to purchase or support one brand over another. First. and contributes highly to profitability. with the premise that the level of local market dominance will impact on the effectiveness. and rebates. and remind target customers about the business and its marketing mix. uses a more rational appeal. Growth of Sales Promotion Sales promotion has grown substantially in recent years. shopping mall groups are increasingly using group branding as the basis for promotional activities. Compared to the other components of the marketing mix (advertising. localized promotional activities are still utilized. It is particularly effective in spurring product trial and unplanned purchases. publicity. selling effectiveness. premiums. in-store displays. contests. or improve product quality. This research examines the effectiveness of group promotional activities versus localized activities. price-off deals. limited period of time in order to stimulate trial. and they use sales promotion to change this price-value relationship by increasing the value and/or lowering the price. However. sales promotion usually operates on a shorter time line. in both the retailers’ cases and that of the shopping malls. This is similar to the strategies of many chain stores. returns a tangible or real value. trade shows. coupons. One should add that effective sales promotion increases the basic value of a product for a limited time and directly stimulates consumer purchasing. particularly fast food chains." But this definition does not capture all the elements of modern sales promotion. or the effort of the sales force. consumers have accepted sales promotion as part 5 . sweepstakes. increase consumer demand. emphasizing the security for the customer of knowing that they will receive the same level of mix no matter which ‘branch’ is shopped at. fosters an immediate sale. persuade.pressure applied for a predetermined. It can be used to inform. There are several reasons for this dramatic growth in sales promotion. Most marketers believe that a given product or service has an established perceived price or value.
Product managers also tend to view sales promotion as a way to differentiate their brand from that of competitors in the short term. Third. Many sales promotions are designed to provide benefits to the retailers. the manufacturer held the power in the channel of distribution. Finally. it is not a cure for a bad product. for example. In addition. With consolidation and the growth of major retail chains. an increase in the size and power of retailers has also boosted the use of sales promotion. Mass marketers utilized national advertising to get directly to consumers. positive results. more attention getting. Second. It provides reluctant decision makers with an incentive to make choices by increasing the value offered by a particular brand. while resellers have become experts at negotiating deals and manipulating competitors against one another. which can provide an immediate boost in sales. consumers and resellers have learned how to milk the sales promotion game. New approaches are promptly cloned by competitors. however. Consumer Promotions Consumer sales promotions are steered toward the ultimate product users—typically 6 . the emergence of computer technology has enabled manufacturers to get rapid feedback on the results of promotions. poor advertising. the increasing tendency of businesses to focus on short-term results has helped spur growth in sales promotion. Redemption rates for coupons or figures on sales volume can be obtained within days. or more effective in attracting the attention of consumers and the trade. creating a demand for the heavily advertised brands that stores could not afford to ignore. sales promotion activities may bring several negative consequences. Finally. After a consumer uses a coupon for the initial purchase of a product. Historically. Consumers may wait to buy certain items knowing that prices will eventually be reduced. short-term. retailers have gained the power to demand incentives from manufacturers to carry their products. Limitations of Sales Promotion Although sales promotion is an important strategy for producing quick. including clutter" due to the number of competitive promotions. the product must then take over and convince them to become repeat buyers.of their buying decision criteria. or an inferior sales team. as each marketer tries to be more creative.
or to convince existing customers to increase their purchases. on signs near the product. Existing customers perceive discounts as rewards and often respond by buying in larger quantities. trade sales promotions target resellers—wholesalers and retailers— who carry the marketer's product. the retailer. price reductions may be posted on the package. Price discounts are especially common in the food industry. In contrast. however. or purchase multiple units. At the point of sale. cleaning supplies. Many types of advertisements can be used to notify consumers of upcoming discounts. they must have the support of all distributors in the channel. When a bonus pack is offered. and coupons. or the distributor. Following are some of the key techniques used in consumer-oriented sales promotions. such as computer systems. to recruit new buyers for a mature product. refunds or rebates. Buyers may learn about price discounts either at the point of sale or through advertising. Price Deal A consumer price deal saves the buyer money when a product is purchased. 7 . A banded pack offer is when two or more units of a product are sold at a reduction of the regular single-unit price. Price discounts may be initiated by the manufacturer. or in storefront windows. where local supermarkets run weekly specials. bonus pack deals. Price deals work most effectively when price is the consumer's foremost criterion or when brand loyalty is low. and health and beauty aids to introduce a new or larger size. Price discounts alone. food. For price reduction strategies to be effective. This technique is routinely used in the marketing of cleaning products. accelerate their use. a manufacturer may "pre-price" a product and then convince the retailer to participate in this short-term discount through extra incentives. including fliers and newspaper and television ads. an extra amount of the product is free when a standard size of the product is bought at the regular price. Price deals are usually intended to encourage trial use of a new product or line extension.individual shoppers in the local market—but the same techniques can be used to promote products sold by one business to another. usually do not induce first time buyers. A bonus pack rewards present users but may have little appeal to users of competitive brands. and machinery. Another type of price deal is the bonus pack or banded pack. For instance. The main types of price deals include discounts.
In this way. Retailers who offer double or triple the amount of the coupon shoulder the extra cost. specialty retailers or newly opened retailers will distribute coupons door to door or through direct mail. Sunday supplements. Coupons can be inserted into. such as in toothbrush and toothpaste offers. A refund or rebate promotion is an offer by a marketer to return a certain amount of money when the product is purchased alone or in combination with other products. and creates on-shelf excitement by encouraging special displays. or printed on a package. Refunds aim to increase the quantity or frequency of purchase. Retailers who offer their own coupons incur the total cost. or distributed through a central location such as a shopping mall. or they may be distributed by a retailer who uses them to generate store traffic or to tie in with a manufacturer's promotional tactic. Coupons are legal certificates offered by manufacturers and retailers. newspapers. Coupons may also be distributed through the media—magazines. They grant specified savings on selected products when presented for redemption at the point of purchase. dropped door to door.Sometimes the products are physically banded together. attached to. Refunds and rebates are generally viewed as a reward for purchase. and paying retailers a handling fee. Manufacturers disseminate coupons in many ways. redeeming their face values. stimulates the purchase of postponable goods such as major appliances. Contests/Sweepstakes The main difference between contests and sweepstakes is that contests require entrants to perform a task or demonstrate a skill that is judged in order to be deemed a winner. retail coupons are equivalent to a cents-off deal. Retailersponsored coupons are typically distributed through print advertising or at the point of sale. Sometimes. They may be delivered directly by mail. Manufacturers sustain the cost of advertising and distributing their coupons. to encourage customers to "load up" on the product. while sweepstakes involve a random drawing or chance contest that may or may not have an 8 . and they appear to build brand loyalty rather than diminish it. This strategy dampens competition by temporarily taking consumers out of the market. though. or free-standing inserts (FSI) in newspapers. including paying the face value.
Incentives that are given for free at the time of purchase are called direct premiums. Furthermore. such as booths. Many elements of event sponsorship are prepackaged and reusable. event sponsorship often builds support among employees—who may receive acknowledgment for their participation—and within the trade. Premiums A premium is tangible compensation that is given as incentive for performing a particular act—usually buying a product. since they require some sort of skill or ability. if a product fits well with the event and its audience. large companies like RJR Nabisco and AnheuserBusch have special divisions that handle nothing but special events. The premium may be given for free. Some examples of premiums include receiving a prize in a cereal box or a free garden tool for visiting the grand opening of a hardware store. Administering a contest once cost about $350 per thousand entries.entry requirement. mostly due to legal restrictions on gambling that many marketers feared might apply to sweepstakes. events tend to attract a homogeneous audience that is very appreciative of the sponsors. businesses spend over $2 billion annually to link their products with everything from jazz festivals to golf tournaments to stock car races. the impact of the sales promotion will be high. Finally. contests were more commonly used as sales promotions. Therefore. or may be offered to consumers for a significantly reduced price. Special Event According to the consulting firm International Events Group (IEG). Special events marketing is available to small businesses. 9 . as well. At one time.75 per thousand entries in a sweepstake. displays. But the use of sweepstakes as a promotional tactic has grown dramatically in recent decades. compared to producing a series of ads. First. compared to just $2. Special events marketing offers a number of advantages. through sponsorship of events on the community level. participation in contests is very low compared to sweepstakes. and ads. event management is relatively simple. In fact. partly because of legal changes and partly because of their lower cost. Second.75 to $3.
The final category of direct premiums. Continuity programs demand that consumers keep buying the product in order to get the premium in the future. continuity programs also reduce the threat of new competitors entering a market. For example. Mail premiums. The garden tool is an example of a traffic-builder premium—an incentive to lure a prospective buyer to a store. require the customer to perform some act in order to obtain a premium through return mail. and bonus-paying credit cards are common continuity programs. a homeowner may receive a free clock radio for allowing an insurance agent to enter their home and listening to his sales pitch. Trading stamps. retailers' frequent-shopper programs. 10 . reward the purchaser for referring the seller to other possible customers. The premium is still valuable to the consumer because they cannot readily buy the item for the same amount. and referral premiums. are prime examples. continuity programs sometimes prove a deciding factor among those competitors. plus there is no confusion about returning coupons or box tops. door openers.These offers provide instant gratification. an electronics manufacturer might offer free software to an office manager who agrees to an on-site demonstration. Consumers usually received one stamp for every time spent at a participating store. airlines' frequent-flyer clubs. Continuity Programs Continuity programs retain brand users over a long time period by offering ongoing motivation or incentives. Other types of direct premiums include traffic builders. popularized in the 1950s and 1960s. A door-opener premium is directed to customers at home or to business people in their offices. hotels' frequent-traveler plans. By rewarding long-standing customers for their loyalty. Similarly. An example might be a limited edition toy car offered by a marketer in exchange for one or more proofs-of-purchase and a payment covering the cost of the item plus handling. A catalog listing the quantity of stamps required for each item was available at the participating stores. When competing brands have reached parity in terms of price and service. The stamp company provided redemption centers where the stamps were traded for merchandise. unlike direct premiums. referral premiums. or saving bar codes or proofs of purchase. Today.
coupons. Another method is distributing samples in conjunction with advertising. some retailers resent the inconvenience and require high payments for their cooperation. students. An ad may include a coupon that the consumer can mail in for the product. Though this last technique may build goodwill for the retailer. product samples. an effective strategy is giving a sample product to the consumer. premiums. prizes. This method permits selective sampling of neighborhoods. point of purchase displays. Such packages may be delivered at hospitals. limited time to increase consumer demand. but increases in postage costs and packaging requirements have made this method less attractive. For instance. Sales promotion is one of the four aspects of promotional mix.) Media and non-media marketing communication are employed for a pre-determined. There are several means of disseminating samples to consumers. But in order for sampling to change people's future purchase decisions. stimulate market demand or improve product availability. (The other three parts of the promotional mix are advertising.Sampling A sign of a successful marketer is getting the product into the hands of the consumer. either free or for a small fee. A final form of sample distribution deals with specialty types of sampling. and rebates Sales promotions can be directed at either 11 . or it may include an address or phone number for ordering. dwellings. or through retailers using special displays or a person hired to hand out samples to passing customers. some companies specialize in packing samples together for delivery to homogeneous consumer groups. new parents. or tourists. Direct sampling can be achieved through prime media using scratch-and-sniff cards and slim foil pouches. hotels. The most popular has been through the mail. particularly when a product is new or is not a market leader. or dormitories and include a number of different types of products. loss leaders. freebies. such as newlyweds. An alternative is door-to-door distribution. or even people. and publicity/public relations. personal selling. Sometimes. particularly when the items are bulky and when reputable distribution organizations exist. Examples include contests. the product must have benefits or features that will be obvious during the trial.
Loss leader: the price of a popular product is temporarily reduced in order to stimulate other profitable sales. miles. Free-standing insert (FSI): A coupon booklet is inserted into the local newspaper for delivery. These efforts can attempt to stimulate product interest. Some sale promotions. Reward Program: Consumers collect points. 12 . contests. Consumers print them out and take them to the store. Price-pack deal: The packaging offers a consumer a certain percentage more of the product for the same price (for example. Consumers show the offer on a mobile phone to a salesperson for redemption. Online interactive promotion game: Consumers play an interactive game associated with the promoted product. Various type of promotion Cents-off deal: Offers a brand at a lower price. or distribution channel members (such as retailers). or credits for purchases and redeem them for rewards. Sales promotion includes several communications activities that attempt to provide added value or incentives to consumers. premiums.the customer. trial. On-line couponing: Coupons are available online. Sales promotions targeted at the consumer are called consumer sales promotions. are considered gimmicks by many. wholesalers. retailers. On-shelf couponing: Coupons are present at the shelf where the product is available. Coupons: coupons have become a standard mechanism for sales promotions. sales staff. Price reduction may be a percentage marked on the package. particularly ones with unusual methods. Mobile couponing: Coupons are available on a mobile phone. and sweepstakes. 25 percent extra). Sales promotions targeted at retailers and wholesale are called trade sales promotions. samples. See an example of the Interactive Internet Ad for tomato ketchup. or purchase. point-of-purchase (POP) displays. Examples of devices used in sales promotion include coupons. rebates. or other organizational customers to stimulate immediate sales. Checkout dispensers: On checkout the customer is given a coupon based on products purchased.
Celebrity visit: A celebrity calls to visits in shopping malls to promote it. This growth has been fuelled by investments in organized retailing. B) History The growth of malls in cities in India has raised an important question as to their viability and whether increased investment in malls would attract adequate number of consumers. changes in the retail formats. In the past few years there has been a tremendous rise in interest in the establishment of malls. increased flow of FDI in retailing and increased income levels of consumers. 13 .
Malls had their precursors in 14 . The mall operators and retailers are faced with the growing challenge of creating shopping environment which would create a positive influence on the consumers’ shopping behavior. The idea of shopping has expanded to include an assortment of facilities under one roof wherein entertainment takes a predominant space. Early Shopping Centers At the heart of this culture was the shopping mall—a centrally owned and managed cluster of architecturally unified retailing spaces designed to accommodate automobile access on its periphery while restricting traffic to pedestrians in its core. furniture and home products and amusement centers for kids. The glamour of malls with sparkling environs and multiplicity of stores is considered a respite in the hectic metropolitan lifestyles. The ambience. This kind of experience is devoid of the negative facets of traffic congestion and security issues. restaurants. design and layout of the malls evoke varying degrees of emotional reaction from the customers and motivate them to spend time in the mall locale. as centers of community and social activity has a profound impact on selling and retailing. posit that environment has an impact on consumer's emotions and can be a driver to retail performance. beauty salons. The shopping centers are progressively spending resources to make their malls striking destinations and different from competitors through image and store brand communications which supposedly draws consumers to the malls improving foot traffic and stimulating sales . The rise of malls in India. The popularity and expansion of malls was in the form of urban entertainment centers with restaurants and cinemas open air lifestyle centers with upscale specialty and branded and hybrids. Retailers vie for acquiring space in malls in the hope that the ambience and facilities of the malls would give a competitive advantage to their stores and wares. The facilities at the shopping centre encompass all kinds of outlets ranging from bookstores. Malls as centers of family outings are fast catching the imagination of the Indian consumers.Malls originally served as growth catalysts in the suburbs and were responsible for changing the notion of shopping. medical and grocery stores. beauty and fashion accessories and products. Many studies have focused on malls as being a part of consumers’ leisure activities and being related to entertainment. stores for branded clothes and shoes.
had culminated in the exodus of many middle-class households from increasingly crowded inner cities to the more spacious suburban developments that began to surround metropolitan areas. Illinois. was only possible because of Americans' increasing reliance on the automobile for personal transportation and the publicly subsidized road and highway infrastructure that supported it. but more influential was Country Club Plaza in Kansas City. Nichols in 1922 as an integral part of a wider suburban community.000 sq ft). technological. C. and management. Dallas. construction. Missouri. in turn. post–World War II ascendancy of the shopping center—of which malls are the largest and most important type—represented the confluence of demographic. however. A long-term demographic shift toward the concentration of population in urban areas.the public marketplaces of the colonial and early national periods and the enclosed arcades of mid-nineteenth-century Europe. as well as a steady rise in per capita income. promoted them as the wave of the future. the success of mass marketing techniques and organizations—especially the advent of regional and national department and chain stores—steadily changed the nature of retail distribution and helped to achieve the economies of scale that facilitated the emergence of a full-blown consumer culture in the postwar United States. and a few visionary developers like Don M. but also the rise of an aggressive new breed of entrepreneur who flourished in the postwar suburban landscape: the real estate developer.600. reflected not only the symbiosis of peculiarly American circumstances. the Depression and World War II delayed their full emergence. Casto of Columbus. Suburbanization. a Chicago suburb. The rapid. Largest examples The largest mall ever is South China Mall in Dongguan. Finally. China with gross floor area of 892. The malls' design. 1937). 1931. River Oaks Center. designed by J. Ohio.000 m2 (9. The world's second-largest shopping mall is the Golden 15 . Houston. Although some shopping centers were built in the 1930s (Highland Park Village. and institutional trends affecting the retailing of goods and services that had been under way since the late nineteenth century. Perhaps the earliest planned shopping district in the United States was built in 1916 in Lake Forest.
only about 30 large malls were built in 1998.000 sq ft) of gross floor area. The so-called malling of America peaked in the late 1980s and early 1990s.000 sq ft). designed by Victor Gruen. about 2. Dubai Mall is the largest mall in Middle East.. It is now the fifth largest mall. and SM Mall of Asia in the Philippines. Alberta. opened in May 2006.150. Strip malls are typically developed as a unit and have large parking lots in front.000 m2 (7. which opened in November 1985. They face major traffic arterials and tend to be self-contained with few pedestrian connections to surrounding neighborhoods. the title of the largest enclosed shopping mall was with the West Edmonton Mall in Edmonton.000 m2 (5. the Country Club Plaza. Previously.000 sq m). when the first enclosed mall. it was the culmination of the 16 . Canada. Mo. over 100 were built annually in some years during that period. currently ranked seventh in the world. China with gross floor area of 680. with a sidewalk in front. opened in Edina. By 1956.000 m2 (4. The SM City North EDSA in the Philippines. The current largest shopping centre in Europe is the Dolce Vita Tejo in Lisbon. usually includes restaurants and a convenient parking area.000 sq m in size) were built annually. service. a concentration of retail. while the largest in Australia is Chadstone Shopping Centre in Melbourne. Shopping centers accounted for about 76% of all non automotive retail sales in the United States in 2003. is the world's fourth largest at 386.000 sq ft/37. Portugal. Canada from 1986–2004. Minn. A strip mall (also called a shopping plaza or mini-mall) is an open-area shopping center where the stores are arranged in a row. The first modern shopping center. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into one encompassing structure. and entertainment enterprises designed to serve the surrounding region.000 sq ft) of gross floor area. Mercantile establishment consisting of a carefully landscaped complex of shops representing leading merchandisers. opened in Kansas City. in 1922. a suburb of Minneapolis.000 shopping centers had been built. In comparison.000.3 million sq ft (493. a modern version of the traditional marketplace shopping center shopping center. The world's first mega mall was the West Edmonton Mall in Alberta.300.. Long also the world's largest mall at 5. when approximately 60 large malls (more than 400. is the world's third-largest at 460.Resources Mall in Beijing.
a chapel. Two larger malls. brand conscious. China. 11 department stores. Rationale of the study:This study will help the managers of shopping malls to understand the underlying decision making styles of the shoppers in the malls and help them to craft their marketing strategies.This study can play a major role for organizations while planning its 17 . 2000) where the promotional activities of the mall are increasingly being used to differentiate the mall through image communication. Minn. impulsive /careless. The mall contains more than 800 shops. opened in 1992 in Bloomington..2-millionsq-ft (391. and a replica of Columbus's Santa Maria. and more Chinese megamalls are under construction. which features at its center a seven-acre amusement park. 19 movie theaters. the world's largest indoor water park. recreational and shopping conscious. a hotel. . 13 nightclubs. Shopping malls are operating in an increasingly competitive environment characterized by over capacity and declining customers (LeHew and Fairhurst. habitual/brand loyal. an ice-skating rink. 110 restaurants. novelty and fashion conscious.000-sq-m) Mall of America. increase visits and stimulate merchandise purchases (LeHew and Fairhurst. The largest mall in the United States is the 4. began to open in 2004 and 2005 respectively. Profiling consumers by their buying decision-making styles provide more meaningful ways to identify and understand various consumer segments and to target each segment with more focused marketing strategies. confused by over choice. price conscious. in Beijing and Dongguan. 2000). These decision making styles were perfectionist/high quality conscious consumer.developer's dream of a consumers' and retailers' paradise when it opened (1981–85).
marketing activities. This study also helps the managers of shopping malls to review how their promotional strategies works for attracting the customers. 18 . & decide on the promotions for the same.
Woodard. Haesun (2002) studied Buyer–seller relationships for promotional support in the apparel sector which is critical for success. Results indicated that monetary support 19 . and to investigate the relationship between offering frequency and perceptions of importance.Chapter 2 Literature Review: Literature Review: Kincade.The purpose of the study was to define promotional support categories offered to apparel retailers by manufacturers. Ginger A... Doris H. to identify the retailer's perceptions of the offering frequency and importance of the promotional support. Park.
or two of Alexander and Muhlebach’s (1992) four mall promotional types – price-based and entertainment-based. Borja. These promotional activities tend to be either institutional advertising. opening hours). and perceptions of the impact of foreign retailers on local communities. convenience of location.was regarded as the most important promotional support. Smith and Sinha. product assortment. or discounts once a minimum purchase level is reached. Miguel Angel Gomez (2005). acceptance of US apparel brands. Descals. 1998) Hyllegard. Molly. extent and quality of customer service. Karen. 1995. The study emphasized that specialty retailers' success in international markets is contingent upon their knowledge of culturally-defined values. Folkes and Wheat. There is a dearth of research on the effectiveness of price-based promotions in malls. The levels of price reductions or rewards are consistent across the group. Eckman. 2000) and in increasing sales (e. location. The first (price-based) are commonly group-wide sales. contacts.g. usually attempting to appeal to either a broad market base (usually demographic or lifestyle-based. The study examined consumers' store patronage and apparel purchase behavior. Kendrick.. As such they take a mass-marketing approach. gift-withpurchase. A positive and significant correlation was found between items the buyers perceived as important and the frequency of offerings of these items. or a common (in each centre’s catchment) specific target market for a limited period (such as parents and children during school holidays). perceptions of retailers' products and services. fissionability. norms and behavior that influence consumer decision making and impact acceptance of products and services.g. payment options. studied Spanish consumers' perceptions of US apparel specialty retailers' products and services. It found out that the perceptions differed regarding quality. with tailoring normally restricted to institutional variations (e. national 20 . Alejandro Molla. Alexander and Muhlebach’s (1992) Mall groups have increasingly used group-wide promotional activities that offer a generic base that is replicated across the group. but the general retail literature implies that such activities are effective in encouraging visits (e.g.
characteristics of the shopping center. or other channel members) and/or 21 . This study is an attempt to explore shopping and purchase behavior patterns of consumers within organized retail outlets of Allahabad. Retail industry in India is acknowledged as a sunshine sector. a Tier II city in India. Tripathi vibhut: International Journal of Services. retailers. Others. consumer characteristics. size of a shopping area. Consumers' acceptance of US apparel brands was a function of age. Such gravitation models have traditionally included factors such as distance and travel time. Having cemented its presence in metros and Tier I cities. variety of stores and merchandise.brands and store layout. retailers are allured by opportunities in Tier II and III cities like low-cost real estate and shifting consumption patterns of consumers who are graduating to affluence and lifestyle purchases. (1977) found that some consumers placed the greatest value on convenience and economic attributes including convenience to home. Economics and Management. Variables identified for shopping orientation were treated with Factor Analysis. motivating factors for store selection and purchase patterns on each shopping trip have also been analyzed. changing lifestyles and favorable demographic patterns. and is driven by factors like strong income growth. Most previous academic research studies have treated such entertainment centers as just one additional characteristic of a shopping center which could be included in retail gravitational models to predict consumer patronage of shopping centers or the market potential of a particular location. household income. According to Shimp (2003). fashionability. sales promotion refers to any incentive used by a manufacturer to induce the trade (wholesalers. however emphasized recreational attributes including atmosphere. 1984. and the cost of shopping to consumers. Craig. Bellenger et al. accessibility. and the presence of services such as banks and restaurants. apparel product country of manufacture and price Ghosh piyali. Ghosh. & McLafferty.
a limitation of the ‘performance’ approach is that consumer emotions (affective experiences) are neglected in the satisfaction 22 . MacKenzie and Olshavsky.consumers to buy a brand and to encourage the sales force to aggressively sell it. Spreng. 1994. 1998. and so on. namely merchandise mix. Shim and Eastlick. and price-offs. further research on entertainment consumption at shopping centers is required . such as the variety of eateries will also have an impact on shopper satisfaction. However. which is a major component of the modern shopping centre mix Hence. the interaction of shoppers with those functional attributes is inevitable because entertainment consumption occurs within the shopping mall environment Hence. Functional attributes of shopping mall entertainment. Indeed. Totten & Block (1994) stated that the term sales promotion refers to many kinds of selling incentives and techniques intended to produce immediate or short-term sales effects. a ‘hybrid’ approach to evaluation which integrates both functional attributes and affective experiences is useful to the understanding of satisfaction formation of entertainment seekers. 2005. accessibility. ‘Expectation-disconfirmation’ approach by Patterson and Spreng. Retailers also use promotional incentives to encourage desired behaviors from consumers. By Groover. The proposed model reported in this conceptual paper adopts the ‘performance’ approach. Shopping Centre Image. services and atmospherics. Many studies on shopping centre image are dominated by the ‘big four’ dimensions. 1997. Typical sales promotion includes coupons. 1994. Sales promotion is more short-term oriented and capable of influencing behavior. samples. in-pack premiums. displays. Ridgway and Dawson. The dominance of the ‘big four’ means that researchers have neglected shopping centre entertainment. According to Bloch. 1996 or the ‘Performance’ approach by Cronin and Taylor. which purports that consumer satisfaction is derived from the evaluation of functional attributes per se rather than the disconfirmation between consumer perceptions and expectations of those attributes.
It offers the 23 . With respect to the latter type. Bodapati (1996) suggests that a rather small proportion (20%) of consumers is influenced by feature advertising in their store choice. products are use (true) complements if they are typically consumed together and on the other hand. Several authors ( Chintagunta and Haldar 1998. Other authors investigate promotional effects for true consumption complements. Indeed. Other researchers found little (Walters 1991. Walters (1988) finds. For disposable diapers. Mulhern and Padgett (1995) show that 75 percent of the customers. This traffic building effect of retail promotions is particularly desirable since consumers may engage in one-stop shopping and purchase an assortment of additional items once they are in the store. for some cases. On one hand. Walters (1988. Retailers use promotion folders to induce store switching behavior. 1991) and Mulhern and Leone (1991) reported weak cross elasticities for spaghetti and spaghetti sauce and cake mix and cake frostings. Complementary purchases can be influenced through the effect that retail promotions have on store switching and store traffic. The list of studies about complementary effects of promotions is however less extensive. whose main reason for the store visit is a particular retail price promotion. a direct effect of price promotions on store traffic. Russell and Petersen 2000) distinguish two types of complementary products. also purchase other (regular priced)products.equation. Mulhern and Leone (1991) suggest that all items in a retail store can be complements since they can be purchased at the same time in the same place. The latter studies made use of sales response models. An alternative to this approach is market basket analysis. to generate store traffic and to make customers buy their additional purchases within the same store. Keng and Ehrenberg (1984) suggest that consumers switch stores as a result of retail promotions. yet affective experiences are important to satisfaction formation of entertainment seekers due to the hedonic nature of the activity . Bodapati 1996) or no evidence (Bucklin and Lattin 1992) of store substitution in the presence of price promotions in the fast moving consumer goods environment. products are purchase (spurious) complements if they are purchased together rather as a result of one-stop shopping or concurrent purchase cycles. Kumar and Leone (1988) attribute part of a sales bump of a promoted item to store substitution.
When considering complements. to the same conclusions. Only in recent research. Having developed a bivariate hazard model. how simultaneous promotions may reinforce one another. The indirect effect (complement) is expected to be smaller that the direct effect. for some categories. especially in the case of strong consumption complements. Hruschka et al (1999) conducted a large-scale study and came. In our study. The above studies give insights into how promotions may influence sales of complementary products. They also mention the importance of optimizing promotional strategies or discuss potential implications of their research with regard to joint promotions (e.3% for pasta sauce. Manchanda et al (1999) and Russell and Petersen (2000) show for a limited number of product categories that a price decrease resulted in a higher purchase probability of a product and its complements. only Chintagunta and Haldar (1998) explicitly investigate. Russell and Petersen (2000) and Hruschka et al (1999) point out that one of the limitations of their research. to our knowledge. Gupta (1988) shows that only 2 percent of a sales increase due to a promotion is accounted for by stockpiling. Chintagunta and Haldar (1998). shopping baskets composed the unit of analysis for identifying promotional influences on complementary products. but neglect how much of these items is purchased. 24 . In the promotion literature. they compared different scenarios and concluded that the increase in purchase probability. and previous research. we compare sales (and profits) generated in different promotional scenarios: only the main product is promoted.8% for pasta and 0.opportunity to measure complementary effects more precisely. is that they only consider how often products or product categories are purchased together. Yet. one may expect that the purchase quantity increase of the main product will be followed by an increase of the purchase quantity of the complement. Russell and Kamakura 1997). some effort has been made to split the direct impact of price promotions in its different components and to isolate the stockpiling effect. The authors note that the small sales gain must be traded off against loss in profit margins.g. as a result of simultaneous promotions. only the complement is promoted and both are promoted at the same time. was of a magnitude of 0. at the sales level.
Chapter 3 25 .
To ascertain the impact of promotional activity on purchase decision.Research Methodology Objective of the study:Primary objectives The main purpose of survey is to throw light towards the promotional activities on the sale of the product in malls. 26 . Secondary objectives To find out the effectiveness of promotional strategies of shopping malls.
Sample plan Sample area: Shopping malls of Indore city like. The focus is on gaining insight and familiarity for later investigation. Malhar mega mall etc. Research design Firstly exploratory research will be used. treasure island. 27 .Methodology:The various secondary sources are used in order to determine the consumer attitude various secondary sources for collecting information are website and magazines. Later on descriptive research will be used. central mall. C21 mall. Mangal city. Sample design: The random sampling technique was used for the selection of the respondents. Sample size: Sample Size: 100 Sample Extent: shopping malls of Indore city.
The number of respondent are 100 who will fill the questionnaire. Secondary data includes information regarding present market scenario will be collected by internet. Tools for Data Analysis Data collected from different sources will be tabulated. newspapers and books. Question1. Do the offers/promotions influence you to visit the retail mall more often? 28 . For the data analysis we select the 5 question that are directly related to objective of research and response of these represent in pie chart by using percentile method and result is in tabulated form. Data Analysis and Interpretation : The purpose of this study is to discover and analyze the impact of various consumer sales promotion techniques on shopper as driving factors of shopping malls and measures their effectiveness. Percentage and Average method will be used and also the factor analysis method will be applied to analyses the data. magazines.Data sources: Primary data will be collected from respondent of different shopping malls through the questionnaire method.
Rank the following offers depending on your preference Rank from 1 to 5. by analyzing the response of this question it is identified that majority of the people consider that promotional offers influence their visiting in the malls . Question2. Very High(5) High(4) Neutral(3) Low (2) Very Low(1) a) Price Discount [ ] 29 .81% 19% Yes No Option % Yes 81% No 19% Interpretation This questions aimed to identifying the visiting of people in shopping malls is influence by the promotional offers.
16% 4% 6% 5 4 3 2 1 64% 10% Option % 5 64% 4 10% 3 6% 2 4% 1 16% b) Food Coupon [ ] Very High(5) High(4) Neutral(3) Low (2) Very Low(1) 30 .
10% 12% 8% 5 4 3 2 1 40% 30% Option % 5 8% 4 40% 3 30% 2 12% 1 10% c) Gift Voucher [ ] Very High(5) High(4) Neutral(3) Low (2) Very Low(1) 31 .
6% 10% 16% 32% 5 4 3 2 1 36% Option % 5 10% 4 16% 3 36% 2 32% 1 6% d) Lucky draw [ ] Very High(5) High(4) Neutral(3) Low (2) Very Low(1) 32 .
16% 6% 14% Option % 5 6% 4 14% 3 32% 5 4 1 2 32% 3 16% 2 1 32% 32% e) Movie Combo [ ] Very High(5) High(4) Neutral(3) Low (2) Very Low(1) 33 .
by analyzing the response of this question it is identified that majority of the people consider price discount is the best promotional offers in the malls . 34 .10% 30% 24% 5 4 3 2 1 18% 18% Option % 5 10% 4 24% 3 18% 2 18% 1 30% Option Very high 68% Price Discount 6% Food Coupon 10% Gift Voucher 5% Lucky draw 10% Movie Combo High 22% 5% 12% 8% 12% Neutral 4% 44% 40% 35% 38% Low 3% 20% 20% 40% 40% Very low 3% 25% 18% 12% 10% Interpretation:This questions aimed to identifying the preferences of the promotional offers in malls.
Yes [ ] No [ ] 14% 5 4 86% Sample Yes 86% No 14% Interpretation:This questions aimed to identifying the promotional offers in malls attract the customer or not. 35 . by analyzing the response of this question it is identified that shopping malls attract most of the people by providing various promotional offers.Do you think promotion is the best way to attract more customers to the mall.Question3.
by analyzing the response of this question it is identified that the promotions/offers helps the people to choose the shopping mall. 3. 4. 2.Question4 :How much do you think that the promotional activities help in making your decision to choose which retail mall to visit? To great Extent __ __ __ __ __ __ __ __ __ __ __Not much 1 2 3 4 5 1-Most dependent. 36 .Very little dependent.Does not affect 10% 4% 14% 30% 42% 1 2 3 4 5 Option % 1 14% 2 30% 3 42% 4 4% 5 10% Interpretation:This questions aimed to identifying that how much promotional activities help the people to make decision in selection of shopping malls. 5.Neutral.Dependent.
by analyzing the response of this question it is identified that most of the people depend on the offers to switch the shopping malls. Are promotions/ offers are one of the major factors which influence you to switch over from One mall to other? To great Extent __ __ __ __ __ __ __ __ __ __ __Not much 1 2 3 4 5 a) Strongly Agree [ ] b) Agree [ ] c) Neutral [ ] d) Disagree [ ] e) Strongly Disagree [ ] 4% 4% 18% 42% 32% 1 2 3 4 5 Option Sample 1 18% 2 32% 3 42% 4 4% 5 4% Interpretation:. 37 .This questions aimed to identifying that offers influence the people to switch the malls or not.Question5.
Chapter 4 Discussion of Results 38 .
central. It can be deducted that most of the consumers who visit retail malls regularly are the youth. Ambiance. The retail mall brands placed before them were Treasure Island. it is identified that the high number of respondents come to know about the shopping malls by Newspaper or by the word of mouth. Price. malhar mega. The highest number of responses has been attribute to Treasure Island. the number of female respondent were less compared to the male respondent. In the survey it is found that the highest number of respondents were male. and offers products that appeal to a wide array of consumers. and can calculate how much market share they hold. Here. By analyzing the response to this question it is identified customers preferences among the varied choice of stores. malhar. electronic media and Newspaper. mangal city etc. Consumers approached were asked which retail mall they shopped at frequently. magazines. The factors points placed before them were Quality. attracts people of many incomes groups. print media. C21. Consumers approached were asked to indicate from which source they come to know about the retail malls. Central. In the research it is found that highest number of the respondents falls in the age group 1830. T. we came across that promotional activity conducted by shopping malls influence the customer’s visiting and their subsequent shopping and buying decision. mangal city. By analyzing this question the responses to this question it is identified the biggest factor that influence the consumers in favoring one mall to another the highest ranking have been attributed to 39 . Consumers approached were asked that promotions/offers influence their visit in retail Mall. Fast service. the type of sources were word of mouth.I. By analyzing the responses it is found that most of the people influences to visit by the promotions/offers. Consumers approached were asked to rank their preference on a scale of 1 to 5 of which another factors influences their visit in malls other than promotions/offers.FINDINGS: In the survey and study conducted above. By analyzing to this question. we present the findings gathered and the suggestions we offer to the retail malls based on the data gathered and analyzed. The other malls can be ranked in descending order of preference or frequency of visits as: C21.
By analyzing the responses most of the people influences by offers and some were neutral about this question. Quality and the price of products play big role in the decision making process. its impact on their shopping decision was slightly lesser. strongly disagree. Consumers approached were asked if promotional offers influence them to switch over from one mall to another the above pie chart shows that most of the people were neutral about this question and 32% people were agree that they switch from one mall to another mall on the basis of promotions/offers. The next offers that influence the consumers in to visit in the are in descending order –Combo offers. By analyzing this question most of the consumers influences by the price discount offer. disagree. neutral. lucky draw and games. agree. Consumers approached were asked to rank if advertisement influences them to select the shopping malls. Consumers approached were asked if promotional offers helps in making decision to choose which retail mall to visit. The rating scale comprised of – Strongly agree. lucky Draw. fast services and Ambience.Price.quality of the products. From the tabulated data and pie chart depicted above and responses of the consumers it is evident that most of the people agree with the question and also instead of that a slightly higher number of respondents do not give much importance to advertisement. Celebrity visit. The next criteria that influence the consumers in favoring a particular mall to another are (in descending order) . 40 . celebrity visit. Consumers approached were asked which promotional offers influence them to visit in mall and the preferences points placed before them were Discounts. Games and Combo offers.
For attract more customer. As per my point of view. shopping malls should offer various promotional activity.Suggestions: After completion of study we found that promotional activity at shopping malls most affect to customer. I Suggest that. price discount is most prefer by shopper so shopping malls management require to more focus on price discount. Fast service is also affect to shopper so shopping malls management should manage this. 41 . In various promotional activity. They should use strong advertising media so that every shopper know about promotional activity.
and shopping mall facilities.Conclusions Across the shopping malls where the research study was conducted. price. In spite of challenges. 42 . Among various promotional tools evaluated . Promotions technique have a long way to go in Indian retail industry market. offers. all the promotional tools influence on different segment therefore . it was found that four major factors drive the Indian shoppers towards shopping mall. It can be understood that Indian shoppers give more importance to. and also the shopping mall attributes to capture in the mind of Indian shopper for selecting the shopping mall. Customer care. sales promotion act as versatile weapon for marketing the product and service. Consumer promotion has become a common practice for majority of the product and services.
Webliography/ Bibliography Bibliography 43 .
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com/dictionary/mall www.com/resources/aqaA2ul0web.marketingpower.com/_layouts/Dictionary.com/doc/51385041/consumers-buying-behavior-in-shopping-malls http://www.scribd.knowthis.lexipedia.pdf http://www.com/ce6/world/A0845012.collinseducation.merriam-webster.html http://www.aspx?dLetter www.com/doc/45195588/buying-decision-making-style-of-indian-shoppers http://www.com/ http://www.com/forums/marketing-management.http://www.consumerpsychologist.managementparadise.merriam-webster.com/principles-of-marketing-tutorials/types-of-salespromotion/ consumer-sales-promotions/ 45 .scribd.com/dictionary/mall www.html www.com/english/shopping+mall – http://www.infoplease.
46 .Annexure The study on Impact of Promotional Activites on Consumers Buying Behaviour at Shopping Malls in indore.
This survey is integral to my major research project in MBA course.____________________ Age:.Male [ ] Female [ ] Occupation:._______________________ 1) Where do you prefer to shop the most? a) Individual outlet [ ] b) Malls 2) Which retail mall you visit frequently? a) Treasure island [ ] c) C21 mall [ ] e) Malhar mega mall [ ] [ ] [ ] [ ] b) Central mall d) Mangal city 3) Through which promotional source you come to know about the retail mall? a) Word of Mouth [ ] b) Magazine [ ] c) Print Media [ ] d) Electronic Media [ ] e) Newspaper [ ] 4) Do the offers/promotions influence you to visit the retail mall more often? Yes [ ] No [ ] 5) Which retail mall gives you more promotion/offers? a) Treasure island [ ] b) Central mall d) Mangal city [ ] e) Malhar mega mall [ ] [ ] c) C21 mall [ ] 6) Rank the following factor which influences you to visit the retail mall other than Promotions/ offers? Very High (5) High (4) Neutral (3) Low (2) Very Low (1) a) Quality [ ] b) Ambiance [ ] c) Price [ ] d) Fast Service [ ] 7) Which type of promotional offers influences you the more? 47 . Thank you very much for your time and support. your survey response will be strictly confidential and data from this research will be reported on aggregate. DATE_________ Name:__________________________________________________________________ Gender:.
2.does not affect 11) How would you think advertisement help you to select a retail malls Rate the followings To Great extent__ __ __ __ __ __ __ __ __ __ Not much 1 2 3 4 5 Strongly agree (1) Agree (2) Neutral (3) Disagree (4) Strongly disagree (5) 12) Are promotions/ offers are one of the major factors which influence you to switch over from One mall to other? To great extent__ __ __ __ __ __ __ __ __ __ __ Not much 1 2 3 4 5 Strongly Agree (1) Agree (2) 48 .very little dependent. 3.Dependent. 5. 4.a) Celebrity visit [ ] c) Lucky draw [ ] e) Combo offers [ ] b) Discounts d) Games [ ] [ ] 8) Do you think promotion is the best way to attract more customers to the mall? Yes [ ] No [ ] 9) Rank the following offers depending on your preferences? Rank from 1 to 5 Offers:Very High (5) High (4) Neutral (3) Low (2) Very Low (1) a) Price Discount [ ] b) Food Coupon [ ] c) Gift Voucher [ ] d) Lucky draw [ ] e) Movie Combo [ ] 10) How much do you think that the promotional activities help in making your decision to choose which retail mall to visit? To great Extent __ __ __ __ __ __ __ __ __ __ __Not much 1 2 3 4 5 1-Most dependent.neutral.
Neutral Disagree Strongly Disagree (3) (4) (5) _________________________________________________ 49 .