Consumer Decision Making Styles in

Shopping Malls of Bhubaneswar.

The retailing sector in India has undergone significant transformation in the past
10 years. The organized retail industry in India is expected to grow 25-30 per
cent annually and would triple in size from Rs. 35,000 crore in 2004-05 to
Rs.109,000 crore ($24 billion) by 2010. Retailing is gradually inching its way
towards becoming the next boom industry. The consumer decision making
Process is a complex phenomenon. The purchase of goods or services includes a
number of factors that could affect each decision. Decision making is more
complex and even more important for consumers today than in the past. The
objectives of this study were to investigate the decision making styles of Indian
shoppers in shopping malls of Bhubaneswar. Mall intercept survey was
conducted to study the decision making styles of Indian shoppers in shopping
malls. The sample included 60 active mall shoppers. The Consumers decision
making styles were identified by a structure questionnaire and captured in eight
Styles by conducting factor analysis. These decision making styles were
perfectionist/high quality conscious consumer, brand conscious, novelty and
fashion conscious, recreational and shopping conscious, price conscious,
impulsive /careless, confused by overchoice,habitual/brand loyal(described in
table -1). 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. Profiling consumers by their decision-making
styles provide more meaningful ways to identify and understand various
consumer segments and to target each segment with more focused marketing
strategies.

Table- 1. (Characteristics of Eight Consumer Decision-Making Styles)

1. Perfectionist/high quality-conscious consumer: Decision style of

consumers who systematically search for the best quality products possible.
Consumers have high standards and expectations for consumer goods, and are
concerned with the function and quality of products.
2. Brand consciousness: decision style of consumers concerned with getting
the most expensive, well-known brands. They feel that price is an indicator of
quality.
3. Novelty and fashion conscious: decision style of consumers who like new
and innovative products and who gain excitement from seeking out new things.
They are conscious of the new fashions and fads.
4. Recreational and shopping conscious: decision style of consumers who
take pleasure in shopping and who shop just for the fun of it.
5. Price conscious: decision style of consumers who are concerned with getting
lower prices. They are likely to be comparison shoppers.
6. Impulsiveness/careless: decision style of consumers who never plan their
shopping and tend to buy spontaneously. They are not concerned about how
much money they spend.
7. Confused by over choice: decision style of consumers who feel they have
too many brands and stores to choose from and who likely experience
information overload in the market. Consumers find the marketplace confusing,
view brands as alike, and seek help from friends.
8. Habitual/brand loyal: decision style of consumers who are apt to have
favourite brands and stores. They shop at the same stores and tend to buy the
same brands each time.

INTRODUCTION

Over the last few years, retail has become one of the fastest growing sectors in
the Indian economy. Though the country has highest retail outlet density in the
world, Indian retail sector is highly fragmented and organized retail in the
country is at very nascent stage. Organized retailing accounts for less than 5%
of the retailing industry in India. Therefore, there is no real retail revolution in
India since the industry is still in the stage of infancy. The organized retail
industry in India is expected to grow 25-30 % annually and is projected to attain
USD 23 billion by 2010(FCCI, 2005).Retailing is gradually inching its way
towards becoming the next boom industry. Consumers are the major
beneficiaries of the retail boom. The Indian consumer is changing rapidly. They
now have a choice of wide range of products, quality and prices. Organised
retailing is changing the whole concept of shopping in terms of consumer
buying behaviour. In such a scenario, consumer decision making is of great
interest for consumer educators and marketers interested in serving the
consumer (Canabal, 2002). Therefore, there is clearly a need for research on this
issue in India. In this study, we have tried to identify the consumer decision
making styles in different shopping malls (Pantaloons, Big bazaar) of
Bhubaneswar.

LITERATURE REVIEW

Retailers and marketers often seek to learn how and why people shop. The
consumer decision making process is a complex phenomenon. The purchase of
goods or services includes a number of factors that could affect each decision.
Decision making is more complex and even more important for consumers
today than in the past. Consumers are besieged by advertising, news articles,
and direct mailings that provide an abundance of information, much of it with
mixed messages. In addition, increases in the number and variety of goods,
stores, and shopping malls, and the availability of multicomponent products and
electronic purchasing
Capabilities have broadened the sphere for consumer choice and have
complicated decision making (Hafstrom et al., 1992). Sproles and Kendall
(1986) define a consumer decision making (CDM) style as “a mental orientation
characterizing a consumer's approach to making choices.” Broadly speaking,
there are three types of approaches in studying consumer decision-making
styles: the psychographic/lifestyle approach, which identifies hundreds of
characteristics related to consumer behaviour; the consumer typology approach,
which classifies consumers into several types; and the consumer characteristics
approach, which focuses on different cognitive dimensions of consumer
decision making (cf. Fan et al., 1998). In the extant consumer behaviour
literature, most studies assume that all consumers approach shopping with
certain decision-making traits that combine to form a consumer's decision-
making styles. Academicians and researchers have long been interested in
identifying these underlying decision styles of shoppers. For example,
consumers are identified as economic shoppers, personalizing shoppers, ethical
shoppers, apathetic shoppers, store loyal shoppers, recreational shoppers,
convenience shoppers, price-oriented shoppers, brand loyal shoppers, name-
conscious shoppers, problem-solving shoppers, quality shoppers, fashion
shoppers, brand conscious shoppers and impulse shoppers. (Bellenger and
Korgaonkar 1980; Darden and Reynolds 1971; Stone 1954, Williams, Painter,
and Nicholas 1978, Moschis 1976;Stephenson and Willett 1969, Gehrt and
Carter 1992, Jacoby and Chestnut 1978, Lumpkin 1985). (cf. Hiu, A.Y. et al.,
2001).
Using the consumer characteristics approach, Sproles (1985) developed a 50-
item instrument to profile the decision making styles of consumers. Using data
collected from 111undergraduate women in two classes at the University of
Arizona and employing a factor analysis technique, Sproles (1985) found six
consumer decision-making style traits He named and described these traits: (1)
Perfectionism, (2) Value Conscious, (3) Brand Consciousness,
(4) Novelty-Fad-Fashion Consciousness, (5) Shopping Avoider-Time Saver-
Satisfier (6) Confused, Support-Seeking Decision-Maker.
In a later study, Sproles and Kendall (1986) developed a comprehensive
instrument called Consumer Style Inventory (CSI) to measure consumer
decision making styles. The instrument was administered to 482 students in 29
home economics classes in five high schools in the Tucson, Arizona area. (cf.
Fan, J.X.,1998). This instrument measures eight mental characteristics of
consumer's decision making: perfectionism, brand consciousness,
Novelty-fashion consciousness, recreational, price-value consciousness,
impulsiveness, confused by over choice, and brand-loyal/habitual. (cf. Mitchell,
Vincent-Wayne, 2001).

OBJECTIVES OF THE STUDY

The major objective of this study includes:

• To investigate the decision making styles of Bhubaneswar
shoppers in different shopping malls.
 • To investigate the role of different decision making styles in the
inter-relationship between the above mentioned eight decision
making styles.

RESEARCH METHODOLOGY

This study used mall simple random survey method. Data were collected from
shopping malls located in Bhubaneswar city of Orissa. The target population for
this study consisted of active mall shoppers. A structured questionnaire was
developed to measure the customer decision making styles in the shopping
malls. The questionnaire consisted of questions concerning customer decision
making styles and demographic information of respondents. For this study items
were adapted from Consumer Style Inventory (CSI) developed by Sproles and
Kendall (1986). CSI items were adopted from various available articles i.e.
Mitchell, Vincent-Wayne (2001); Wesley et al. (2006) and Canabal, M.E.
(2002). All of these were five point Likert-type scales in which respondents
were asked to indicate their level of agreement (1 = strongly disagree to 5 =
strongly agree). Lastly, the questionnaire also consisted questions to solicit
demographic information of the respondents such as gender, age, household
income and marital status.
Questionnaire was hand carried and personally explained to respondents by us.
We gave instructions for completing the questionnaire and waited while
respondent independently filled out questionnaire.

HYPOTHESIS

In our survey we have taken 8 hypotheses based on the behaviour of the

customers they are:

○ (Ho)The customers are perfectionist.

(Ha)The customers are perfectionist
○ (Ho)The customers are brand conscious
(Ha)The customers are brand conscious
○ (Ho)The customer are fashion conscious/ novelty
(Ha)The customer is fashion conscious/ novelty
○ (Ho)The customers are recreational and shopping conscious
(Ha)The customers are recreational and shopping conscious
○ (Ho)The customers are price conscious
(Ha)The customers are price conscious
○ (Ho)The customers are confused by over choice
(Ha)The customers are confused by over choice
○ (Ho)The customers are habitual/ brand loyal.
 (Ha)The customers are habitual/ brand loyal.
○ (Ho)The customers are novelty and fashion conscious
(Ha) The customers are novelty and fashion conscious
We have conducted hypothesis test to find out whether the hypothesis that we
have selected should be accepted or should be rejected. For this we have fixed
our test mid value as 2.5 as because we have a chosen five point likert scale for
our research. The following are the results of our t- test.

Perfectionist/high quality-conscious consumer = 2.04<2.5 hence rejected

Brand consciousness = 2.87>2.5 hence accepted
Novelty and fashion conscious=2.38<2.5 hence rejected
Recreational and shopping conscious=2.14<2.5 hence rejected
Price conscious=2.1<2.5 hence rejected
Impulsiveness/careless=3>2.5 hence accepted
Confused by over choice=2.82>2.5 hence accepted
Habitual/brand loyal=2.89>2.5 hence accepted

Hence the hypotheses those are being accepted are as:

1. Brand consciousness
2. Impulsiveness/careless
3. Confused by over choice
4. Habitual/brand loyal
Std. Error
N Mean Std. Deviation Mean
PERFECT 153 2.0392 .98597 .07971

Std. Error
N Mean Std. Deviation Mean
RECREATI 153 2.1438 1.06015 .08571

Std. Error
N Mean Std. Deviation Mean
CONFUSED 153 2.8235 1.16482 .09417

Std. Error
N Mean Std. Deviation Mean
CONSCIOU 153 2.8693 1.05564 .08534

Std. Error
N Mean Std. Deviation Mean
IMPULSE 153 3.0065 1.16131 .09389

Std. Error
N Mean Std. Deviation Mean
FASHION 153 2.3791 1.14137 .09227

Std. Error
N Mean Std. Deviation Mean
CAREFUL 153 2.0915 1.00236 .08104

Std. Error
N Mean Std. Deviation Mean
LOYAL 153 2.8889 1.15597 .09345

FACTOR ANALYSIS

Factor analysis is a statistical method used to describe variability among

observed variables in terms of fewer unobserved variables called factors. The
observed variables are modelled as linear of the factors, plus "error" terms. The
information gained about the interdependencies can be used later to reduce the
set of variables in a dataset. Factor analysis originated in psychometrics, and is
used in marketing, product management, operations research, and other applied
sciences that deal with large quantities of data.
In this study, factor analysis was carried out in two stages. In stage one; known
as the factor extraction process, objective was to identify how many factors to
be extracted from the data. In the second stage, all the factors were interpreted
and labelled. Items having factor loading more than 0.5 were included in the
interpretation. More detailed descriptions of the factors are presented in the next
section.

In the factor analysis we have extracted three main variables. In the 1st variable
loyalty has the highest factor loading with .693 under component 1 with respect
to recreational, brand conscious, impulsive & fashionable with factor loading .
400, .449, -.376, .662 respectively.

Similarly under component 2 confused by over choice with the highest factor
loading of .715 with respect to perfectionist with factor loading -.771.

For the 3rd variable, brand conscious with factor loading .634 is clubbed with
price conscious and impulsive with a factor loading of -.553 & .596
respectively. It can be concluded that the new three variables have an effect of
variance of 46.9% on the total sample.

Component
1 2 3
LOYAL .693
FASHION .662
RECREATI -.400
PERFECT -.771
CONFUSED .715
CONSCIOU .449 .634
IMPULSE -.376 .596
CAREFUL -.553

Rotation Sums of Squared Loadings

Component Total % of Variance Cumulative %
1 1.429 17.866 17.866
2 1.230 15.370 33.236
3 1.094 13.672 46.908

REGRESSION ANALYSIS

Regression analysis includes any techniques for modelling and analyzing

several variables, when the focus is on the relationship between a dependent
variable and one or more independent variables. More specifically, regression
analysis helps us understand how the typical value of the dependent variable
changes when any one of the independent variables is varied, while the other
independent variables are held fixed. Most commonly, regression analysis
estimates the conditional expectation of the dependent variable given the
independent variables — that is, the average value of the dependent variable
when the independent variables are held fixed.

After the factor analysis we have extracted the three most important variables.
In the 1st variable loyalty has the highest factor loading with .693 under
component 1 with respect to recreational, brand conscious, impulsive &
fashionable with factor loading .400, .449, -.376, .662 respectively. Since
loyalty is having the highest loading we have taken it as dependent and the
other four variables as independent.
Similarly under component 2 confused by over choice with the highest factor
loading of .715 with respect to perfectionist with factor loading -.771. Hence we
have taken confused by over choice as dependent because of its highest factor
loading and perfectionist as independent.
For the 3rd variable, brand conscious with factor loading .634 is clubbed with
price conscious and impulsive with a factor loading of -.553 & .596
respectively. Hence we have taken brand conscious as dependent variable
because of its highest factor loading and price conscious and impulsive as
independent variable.

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2.768 .437 6.333 .000
FASHION .161 .082 .159 1.979 .050
 RECREA
-.084 .087 -.077 -.976 .331
TI
CONSCIO
.127 .087 .116 1.456 .147
U
IMPULSE -.149 .079 -.149 -1.886 .061
a Dependent Variable: brand loyal

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant
2.938 .304 9.663 .000
)
IMPULSE .023 .074 .025 .307 .759
CAREFU
-.066 .086 -.062 -.763 .446
L
a Dependent Variable: price cousious

Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant
3.306 .213 15.503 .000
)
PERFEC
-.236 .094 -.200 -2.510 .013
T
a Dependent Variable: confused by over choice

A typical example of the regression equation(Y=A+BX, where Y is the

dependent variable, A is the constant is the coefficient and X is the independent
variable) for the 1st variable is:
Y=A+BX
Brand loyal(Y) =2.768+.161*X1-.084*X2+.127*X3-.149*X4, where
X1=fashionable, X2=recreation, X3=brand conscious.
Similarly all other two equations where also found out.

CONCLUSION

The objectives of this study were to investigate the consumer decision

making styles in shopping malls. In the factor analysis we have extracted three
main variables. In the 1st variable loyalty has the highest factor loading with .
693 under component 1 with respect to recreational, brand conscious, impulsive
& fashionable with factor loading .400, .449, -.376, .662 respectively. Similarly
under component 2 confused by over choice with the highest factor loading of .
715 with respect to perfectionist with factor loading -.771. For the 3rd variable,
brand conscious with factor loading .634 is clubbed with price conscious and
impulsive with a factor loading of -.553 & .596 respectively. It can be
concluded that the new three variables have an effect of variance of 46.9% on
the total sample. Information on consumers' decision-making style will be
useful for retailers targeting Indian markets. As Indian retail Industries is
in boom today and more and more national and international players are
interested in the emerging retail market in India, an understanding of Indian
mall shopper behaviour , with particular reference to their decision-making
styles, is crucial.

LIMITATION AND FURTHER RESEARCH

There are several limitations that warrant future research. The study has been
conducted in Bhubaneswar city of Orissa, India. The results of the same, if
conducted in other part of the county may vary. It is because a country like
India has geographically, economically, socially and culturally very different
areas. This difference is too significant to be ignored. The sample consisted of
60 active mall shoppers. The small sample size is also error-prone.
Further research may address the following important questions:

1. Do the various formats of the shopping malls affect the consumers’

decision making styles in particular malls?
2. How do cultural factors influence the consumers’ decision making styles in
shopping malls?
3. Do the people from different geographical areas of Indian differ in
their decision making styles in shopping malls?
4. Do the people from urban area and rural area differ in their decision making
styles in shopping malls?

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