Perception of Shopping Malls: A Study

[Pick the date]

Lenovo

Karandeep Singh
Contents

Abstract ...................................................................................................................................................... 3

Introduction ............................................................................................................................................... 4

PROBLEM STATEMENT............................................................................................................................. 11

Problem definition ................................................................................................................................... 11

Purpose of Study ...................................................................................................................................... 11

Methodology............................................................................................................................................ 12

Secondary Research ................................................................................................................................. 13

QUALLITATIVE RESEARCH (EXPLORATORY STUDY) .................................................................................. 13

Sampling................................................................................................................................................... 13

HYPOTHESIS:- ........................................................................................................................................... 15

Descriptive Study: .................................................................................................................................... 17

Analysis Using SPSS .................................................................................................................................. 23

FACTOR ANALYSIS .................................................................................................................................... 24

Summary of Factor analysis ................................................................................................................. 27

Abstract

Shopping malls have now become the face of Indian retail. Over 35-40 million sq. ft. of new
retail space may be added to the market in the next 12-24 months (including
redevelopments) in over 50 cities across the country. Further, 500-600 malls occupying
approximately, 120 million sq. ft. are presently under various stages of planning. Experts’
opinion that right positioning will be the key to success of shopping malls in India, in the face
of increased competition. The paper aims to study the existing customer perception of the
shopping centres in India. The study is based on data collected through a sample survey,
which included the respondents' demographic attributes, shopping motivations, situational
factors and purchase behaviours. The sample frame consisted of large shopping centres, and
the customers filled surveys (Both online and in-person) by . It was observed that the
shopping centres, which could achieve distinctive positioning by developing appropriate
marketing strategies, enjoyed increased customer patronage/preference.
Introduction

A shopping mall or shopping centre 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. Malls have become the driving force in the
organized retail sector in India.

Retailing, in a layman’s language involves the procurement of varied products in large

quantities from various sources/producers and their sales in small lot for direct consumption
to the purchaser. Retailing can broadly be classified into: organised and unorganised retail.
Unorganised retailing refers to the traditional form of retailing with the retail outlets situated
near the residential areas while organised retailing refers to the modern form of retailing with
trading activities undertaken by licensed retailers generally located in commercial
establishments/high-street areas.

The Indian retail industry has witnessed a massive transition during the last few decades. The
Indian retail has grown at a CAGR of 11.2% during the past few years, with food and grocery
accounting for the major share. Despite the industry being dominated by the unorganised
retailers, the organised retailing revenues have soared at a CAGR of 19.5% during the past few
years. The apparel & footwear segment occupies the major share in the organised retail pie

Shopping malls have now become an important part of the urban and semi-urban life of India
especially in many of the cities. In Chennai itself, there are currently more than ten shopping
malls and this number is expected to increase due to the interest of consumers and investors
in shopping malls. This can lead to over saturation triggering high level of competition. Thus
deeper understanding of consumer expectations, experiences and perceptions regarding
malls has become much more essential.

In this study we have focused on the expectations, experiences and perceptions of People to
see what attracts them to the malls.
THE SIZE OF INDIAN RETAIL SECTOR
DRIVERS OF ORGANIZED RETAIL GROWTH IN INDIA

Growth in Indian retail has been driven by the country's economic fundamentals over the past
few years. Increasing number of nuclear families, easy financing options, increase in the
population of working women and emerging opportunities in the service sector during the
past few years have been the key growth drivers of the organised retail sector in India.

Consumers are now showing a growing preference for organised retail, resulting in increased
penetration. The following factors contribute for the growth of organised retailing.

Changes in demographics
India has the lowest median age of 24 as compared to developed countries. The composition
of the Indian population is shifting towards the age group of 20-49 i.e. the working population
with purchasing power. Thus, India has the largest ‘young’ population in terms of sheer size
and this young segment is the major driver of consumption as they have the ability and
willingness to spend.

Increased credit friendliness

There has been a radical change in the Indian consumers’ mindset regarding credit. With the
easy availability of credit and declining interest rates, personal credit has witnessed growth.
The boom in financing has resulted in an increase in spends on housing and consumer
durables such as two-wheelers and cars. The use of plastic money has increased significantly
total spending on shopping and eating out.

Rising Incomes
India is the second fastest growing economy in the world. A larger number of households are
getting added to the consuming class with growth in income levels. Increasing instances of
double incomes in most families coupled with the rise in spending power is further fuelling
the growth of retail sector. Though this growth is most evident in urban areas, it has also
taken place in rural markets.

Consumer Behaviour
The growth of modern retail is linked to consumer needs, attitudes and behaviour. Rising
income levels, education and global exposure have contributed to the evolution of the Indian
middle class. As a result, purchasing and shopping habits have been inculcated and are
increasing day by day. Today, people are willing to try new things and look different, which
has increased spending on health and beauty products apart from apparels, food and grocery
items.

There has been a change in shopping behaviour in urban India over the past few years that is,
they want everything under one roof and a bigger choice of products. They also look for
speed and efficiency. Increased awareness has also meant that consumers now seek more
information, variety, product availability, better quality and hygiene as well as increased
customer service.

Traditionally, shopping for children was confined to festivals when dresses were bought for
them. But now, working parents prefer to spend as much time as possible with their children;
this includes their shopping hours also. As malls and supermarkets offer the option of
entertainment along with shopping, younger couples prefer to shop there.

Rural Market
The rural market is beginning to emerge as an important consumption area, for most key
consumer durables and non-durable products. In response, manufacturers of consumer goods
have begun developing new products and marketing strategies with the rural consumer in
mind.

Hubs
Chennai, Bangalore and Hyderabad have become major retail hubs. In Chennai, about 17% of
food sales flow through supermarkets and 25-30% of consumer durable sales come from
specialty chains such as Viveks and Vasanth.

Entry of Corporate
In contrast to the situation a decade ago, the level of interest in retailing as a growth
opportunity has increased visibly now. Large conglomerates like the Tatas, ITC have initiated
investment in retailing. Big business houses today are in a position to provide the Indian
masses with shopping satisfaction, entertainment, quality products, polite salespersons,
product information and discounts. Though margins are low at the moment because of high
property costs and poor infrastructure, this is the only business where one buys in credit and
sells for cash.

New Entrepreneurs
The growing attractiveness of the retail trade has begun to attract new entrepreneurs with
ideas, and venture capitalists with funds are also increasingly willing to invest in retail
businesses.

Foreign Retailers
The increasing attractiveness of the sector has drawn the interest of a number of global
retailers. With the opening up of the economy, more and more MNCs have entered the Indian
business arena through joint ventures, franchisees or even self-owned stores.

Technology
The computerization of the various operations in a retail store —including inventory
management, billing and payments as well as database management, widespread use of bar
coding, point-of-sale terminals. MIS has changed the face of retailing drastically. Apart from
providing the retailers with better and timely information about their operations, the
technology also performs such tasks as preventing theft, promoting the store's goods and
creating a better shopping atmosphere. This is done with the help of closed-circuit televisions,
video walls, in-store video networks, and other forms of interactive applications ranging from
CD-ROMs to virtual reality to let customers select and buy products.

Retailing formats in India

Malls
It is the largest form of organized retailing today. They are usually located in y in
metropolitan cities, in proximity to urban outskirts. Their size ranges from 60,000 sq ft to 7,
00,000 sq ft and above. They lend an ideal shopping experience with an amalgamation of
product, service and entertainment, all under a common roof. Examples include Shoppers
Stop, Pantaloons etc.

Specialty Stores:
Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer Crossword,
RPG's Music World and the Times Group's music chain Planet M, are focusing on specific
market segments and have established themselves strongly in their sectors.

Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the MRP
through selling in bulk reaching economies of scale or excess stock left over at the season. The
product category can range from a variety of perishable/ non perishable goods.

Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of consumer needs.
Department stores can be further classified into localized departments such as clothing, toys,
home, groceries, etc.

Hypermarkets/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These stores today
contribute to 30% of all food & grocery organized retail sales. Super Markets can further be
classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and large supermarkets
ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on food & grocery and
personal sales.

Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential areas. They
stock a limited range of high-turnover convenience products and are usually open for
extended periods during the day, seven days a week. Prices are slightly higher due to the
convenience premium.
MBO’s :
Multi Brand outlets, also known as Category Killers, offer several brands across a single
product category. These usually do well in busy market places and Metros.

CHALLENGES FACED BY ORGANIZED RETAIL SECTOR

Below mentioned are some of the most important challenges faced by the organised retail
sector in India:

 The organized retail industry in India is faced with stiff competition from the
unorganized sector.

 There is a shortage of quality real estate and infrastructure requirements in our

country.

 Opposition to Foreign Direct Investment from small traders affects retail industry.

 A very high stamp duty on transfer of property affects the industry.

 Shortage of retail space in central and downtown locations also hinders the growth of
retail industry.

 Presence of strong Pro-tenancy laws makes it difficult to evict tenants and this is
posing problems.

 Land-use conversion is time consuming and becoming complex.

 For settling property disputes, it consumes lot of time.

 Rigid building laws makes procurement of retail space difficult.

 Non residents are not allowed to own property except if they are of Indian origin.

 Prohibition of Foreign investment in real estate business.

BOTTLENECKS IN MALL DEVELOPMENT IN INDIA

High property prices and difficulties in accessing real estate:

Despite the slump in property prices in the last few years, Mumbai and Delhi still remain
among world’s most expensive places for property.

Investment intensive and high gestation period

A typical mall of one lakh sq feet requires an investment to the tune of 20-30 Crores
(excluding the land cost) with a payback of five-six years. Fur ther globally mall operators
lease out most of the space (67 per cent) rather than selling it. This allows them to benefit
from high rental streams after the malls are well established. But in India this is a risky
proposition since most of them are new to the business.

Constraints on Demand
A combination of low purchasing power and poor urban infrastructure makes the unwilling to
travel more distance reducing the catchments of a store.

Shortage of retailers needing mall space

All malls need few anchor clients such as departmental stores to take up space and attract
other retail business. These are currently very few in number. In addition to this the mall
needs a base level of smaller specialty stores and fast food outlets to ensure full capacity
utilization.
PROBLEM STATEMENT
“The perfect recipe for Chennai malls”

Problem definition
What are the perceptions and expectations of people from malls in Chennai?

Purpose of Study
This research would serve as a base for the betterment of current malls and also
would be helpful for anyone who would plan to start a successful mall in Chennai. From
secondary data, we find that a number of malls are going to come in and around Chennai in
the forthcoming years. Every new mall is bringing in some new features and improvement.
Hence our research findings would be helpful for these new malls to be successful among its
target population
Methodology
A formal research with all necessary steps and references were followed throughout
the course of the project. The steps are as follows:-

a) Brain Storming for identifying the problem statement and definition

b) Secondary Research from newspaper and web articles to identify issues regarding
the problem

c) Exploring the dimensions using qualitative research – Word association, Sentence

completion and Cartoon technique

d) Identifying the hypotheses with the findings of exploratory research

e) Framing the questionnaire, choosing scale and calculating the sample size

f) Taking survey or Data Collection

g) Analysis using SPSS

h) Arriving at solutions and suggestions for malls in Chennai

Secondary Research
The malls are stores preferred by consumers, even though there is no ‘single loyalty’. While in
organized outlets, consumers buy essentially convenience goods with low level of risk, in
traditional retail outlets, they essentially buy products of more involvement, which require a
more complex buying behavior. The results also reveal that consumers cite price and
convenience for not buying certain goods in traditional retail outlets, which reveals the
consumers’ intention to optimize time and money. Thus, it can be concluded that consumers
primarily focus on the convenience factor while shopping and select a store based on the
convenience it offers.

QUALLITATIVE RESEARCH (EXPLORATORY STUDY)

Word Association:
We collected the responses from people of the first few things that come to their mind
when they hear the word mall. People were asked to write the responses on a sheet and at
the end all the issues were consolidated and analaysed

Sentence Completion:
We used this technique to find the dissatisfaction of people in the current malls in
Chennai. The whole sample was given the same incomplete sentence to be completed in their
own way. A lot of issues were identified from this technique which were consolidated and
analysed at the end of the exploratory research.

Cartoon Technique:
We used a cartoon picture depicting a typical mall and a conversation response bubble
to get the people’s response on features that are expected to be added in the malls. A
cartoon picture with two cartoon characters were depicted as conversing about malls.
Respondents were asked to fill one of the cartoon character’s response bubble. The results
were finally consolidated and analysed.

Sampling
Convenience sampling was used. We stopped exploring when the results started
repeating. A sample size of 98 was used.
Results:
HYPOTHESIS:-
After conducting the exploratory research which comprised of word association,
sentence completion and cartoon technique, we arrived at a number of interesting findings.

We mapped all the findings into hypotheses to frame the questionnaire. The hypotheses are
listed below:

Perceptions about malls:

H1: More people perceive malls to be a place to forget everyday anxiety

H2: More people perceive malls to be a place to get refreshed

H3: More people perceive malls to be a place to meet and spend time together with friends

H4: More people perceive malls to be a place to escape from routine life

H5: More people perceive malls to be a place to have a good time

H6: More people perceive malls to be a place to be energized

H7: More people perceive malls to be a place to enjoy crowds

H8: More people perceive malls to be a place to watch other people

H9: More people perceive malls to be a place to visit that conveys the level of achievement I
see for myself

H10: More people perceive malls to be a place to find value for the money

H11: More people perceive malls to be a place to find product assortments that they need

H12: More people perceive malls to be a place to take a look at the products being considered
to purchase

H13: More people perceive malls to be a place too crowded with people

H14: More people perceive malls to be a place that takes too much time to get the good billed

H15: More people perceive malls to be a place where the price is rather high

Expectations from malls:

H16: More people expect malls to be a place with good parking facilities

H17: More people expect malls to be a place that offers comfortable temperature

H18: More people expect malls to be convenient to move from one floor to another or to a
parking lot

H19: More people expect malls to be a good place for shopping with children
Perceptions about services in malls:

H20: More people perceive services at malls to be convenient as it carries a variety of fashion
goods

H21: More people perceive services at malls make it pleasant to shop in

H22: More people perceive services at malls to be convenient since payment can be made
with a MALL credit card

H23: More people perceive services at malls to be convenient as it carries many famous
brands

H24: More people perceive services at malls to be convenient because it accept credit card for
payment

H25: More people perceive services at malls to be convenient as merchandise is spaciously

and well arranged

H26: More people perceive services at malls to be convenient because it offers convenient
time schedule for shuttle bus service

H27: More people perceive services at malls to be at a reasonable price for the value

Each hypothesis was mapped into one statement in the questionnaire with a five point scale
to assess people’s response. Along with the responses to these questions, the age, sex, annual
income of the respondents were collected through the questionnaire.
Descriptive Study:

Aim:
To determine the relative importance and relevance of various reasons identified in the
exploratory stage which have led to the perceptions and expectations of people about
Chennai malls.

Research design formulation:

A research design is a framework or blueprint for conducting the quantitative research and
analysis. It details the procedures necessary for obtaining the required information and its
purpose is to design a study that will test the hypothesis of interest, determine possible
answers to research question and provide the information needed for decision making .
Conclusive research assists the decision maker in determining evaluating and selecting the
best course of action to take in given situation. The insights gained from the exploratory
research are verified and quantified by conclusive research.

In our project we have implemented a type of conclusive research named as descriptive

research. The major objective of descriptive research is to describe something. In our case the
question is to describe the areas of improvement for malls in Chennai by studying people’s
perceptions and expectations. This study is characterized by prior formulation of specific
hypothesis (H1 to H27). The information at this stage is clearly defined.

Questionnaire design:
A questionnaire is a formalized set of questions for obtaining information from respondents.
It must translate the information needed into a set of specific questions that the respondents
can and will answer. It must uplift, motivate and encourage the respondent to become
involved in the interview, to cooperate and to complete the interview. It must minimize
response error.

Questionnaire design is done in series of steps:

 Specify information needed

 Specify type of interviewing method

 Determine the content of individual question

 Design the question to overcome the respondents inability and unwillingness to

answer

 Decide on question structure

  Determine the question wording

 Arrange questions in proper order

 Identify form and layout

 Reproduce the questionnaire

 Pretest the questionnaire

Likert scale
The respondents indicate the degree of agreement or disagreement with each of the series of
statements about stimulus objects. Each scale item has five Reponses categories from
strongly disagree to strongly agree.

Methodology:
A questionnaire based survey was conducted on a sample of people from Chennai who have
visited malls.

Sources of Data:
A paper-based questionnaire was administered to people in randomly selected shopping,
working and entertainment centres (Ispahani Centre, City Centre, Abhrami Mall, Spencer’s
Plaza, Marina Beach, colleges, and offices)

Taking survey or Data Collection

The data was collected from both the internet and personal interception. A sample of 218
responses was collected using the above mentioned techniques. The online survey was done
using the GOOGLE DOCS and for personal intercepts we used a print-out of the same survey.

Information collected by the respondents in-person were then recorded in an excel sheet. All
the responses (i.e. 218) were then collated in the excel sheet enabling us to carry out the
analysis using SPSS.

Survey attached the following page:

Survey About perception of malls
We are a group of students from Loyola institute of business Administration,Chennai doing a
marketing research on what are the factors that influence perception of Shopping Malls in the
mind of consumers.All information shared by you is only for academic purpose and will be
kept confidential.

Name * [ ]

Sex *

 ( ) Male
 ( ) Female

Marital Status *

 ( ) Single
 ( ) Married
 ( ) Divorced

Monthly Income *

 ( ) Below 1,00,000
 ( ) Between 1,00,000 and 2,00,000
 ( ) Between 2,00,000 and 3,00,000
 ( ) Above 3,00,000

Education *

 ( ) School Level
 ( ) Graduate
 ( ) Post graduate
 ( ) Other: [ ]

Occupation *

 ( ) Business
 ( ) Student
 ( ) Employed
 ( ) Professional
 ( ) Other: [ ]

Malls are a place *

 Strongly Neither agree Strongly
Disagree Agree
Disagree nor disagree Agree

To forget about everyday

() () () () ()
anxiety.

To be refreshed () () () () ()

To meet and spend time

() () () () ()
together with friends

To escape from routine life () () () () ()

To have a good time () () () () ()

To be energized () () () () ()

To enjoy crowds () () () () ()

To watch other people () () () () ()

To visit a place that conveys the

level of achievement I see for () () () () ()
myself

To find value for the money () () () () ()

To find product assortments

() () () () ()
that I need

To take a look at the products

() () () () ()
being considered to purchase

Too crowded with people () () () () ()

That takes too much time to

() () () () ()
get the good billed

Where the price is rather high () () () () ()

Malls usually should *

Strongly Neither agree Strongly

Disagree Agree
Disagree nor disagree Agree

Have good parking facilities () () () () ()

Offer comfortable temperature () () () () ()

be convenient to move from

one floor to another or to a () () () () ()
parking lot

be a good place for shopping

() () () () ()
with children

Service at malls *

Strongly Neither agree Strongly

Disagree Agree
Disagree nor disagree Agree

is convenient as it carries a
() () () () ()
variety of fashion goods

makes it pleasant to shop in () () () () ()

is convenient since payment

can be made with a MALL () () () () ()
credit card

is convenient as it carries many

() () () () ()
famous brands

is convenient because it accept

() () () () ()
credit card for payment

is convenient as merchandise is
() () () () ()
spaciously and well arranged
 Strongly Neither agree Strongly
Disagree Agree
Disagree nor disagree Agree

becaue it offers convenient

time schedule for shuttle bus () () () () ()
service

is at a reasonable price for the

() () () () ()
value
Analysis Using SPSS

SPSS 16.0 was used for carrying out the analysis for the current data. The complete data
collected from the survey was then exported to SPSS. The variables were declared and then
the data was uploaded. The Data view shows the following information:
KMO and Bartlett test:

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .737

Bartlett's Test of Sphericity Approx. Chi-Square 1.802E3

df 325

Sig. .000

The null hypothesis that the population correlation matrix is an identity matrix, is rejected by
the Bartlett’s Test of sphericity. The approximate Chi-Square statistic is 1.802E3 with 325
degrees of freedom, which is significant at the 0.05 level. The variables pass the KMO and
Bartlett’s test for sampling adequacy. The KMO coefficient should be greater than 0.5 and it is
seen that it is 0.737 in this case. It indicates that there is quite a high correlation between the
variables. Therefore Factor Analysis may be considered an appropriate technique for
analyzing the correlation matrix. The next step is to check the Anti Image matrices to measure
the sampling adequacy for each variable. The anti image matrices shows the MSA values
which are greater than 0.5 for all values. Hence, all the factors are included in the test

FACTOR ANALYSIS
All the responses were taken to variables from X1- X27 corresponding to the questions on the
likert scale, on these variables then the factor analysis was carried out. The result of the factor
analysis highlighted 7 factors initially. But then when loading was studied, only one factor was
getting loaded on factor 7. So we restricted the no. of factors to 6.

As evident from the scree plot after component 6 the values starts dropping. So we took 6
factors to carry out our analysis.
Component Matrix

The component matrix initially had more than one variable loading on the factors. Hence,
Varimax rotation was carried out. After the rotation X26 was not getting loaded anywhere.
Hence, we eliminated the use of X26 variable. The final component Matrix is shown below

a
Rotated Component Matrix

Component

1 2 3 4 5 6

x1-Forget anxiety .643 .047 -.040 .100 -.032 .240

x2-Refreshed .713 .150 .040 .003 -.043 .195
x3- spend time together .624 .078 -.113 .038 .101 .073
x4- escape from routine .555 .007 .180 .023 .276 .032
x5- Good time .766 .058 .231 .121 .173 -.126
x6- Energized .708 -.021 .021 .070 -.076 .238
x7- Enjoy crowds .230 .028 .088 .037 .119 .758
x8- watch other ppl .180 .072 -.019 .055 .119 .843
x9- level of achievement .199 -.048 .276 .197 -.133 .574
x10- Value for money -.002 .010 .752 .038 -.170 .179
x11- Product assortments -.039 .098 .769 .110 .192 .022
x12- Considered products .065 .204 .682 .170 .277 .024
x13- too crowded .082 .040 -.006 -.109 .762 -.040
x14- too much time .099 -.059 .127 -.120 .625 .266
x15- high price .068 .056 -.155 .239 .731 -.019
x16- good parking -.015 .809 .004 .021 .082 .009
x17- Comfortable Temprature .116 .780 4.609E-5 .052 .056 .080
x18- convenient to move .000 .852 -.032 -.042 .002 .031
x19- Shopping with children .088 .607 .223 .205 -.133 -.019
x20- Variety of fashion goods .220 .442 .245 .347 .145 -.111
x21- pleasant to shop in .175 .396 .280 .432 -.160 -.085
x22- is convenient Mall credit card .065 .003 -.038 .752 -.138 .059
x23- carries many famous brands .086 .313 .196 .518 .092 .035
x24-Credit card -.047 -.093 .025 .722 -.028 .223
x25- Spacious and well arranged .172 .194 .222 .589 .179 -.029
x27- Reasonable price for value .147 -.016 .710 .058 -.284 .059
The items that got loaded into the individual factors are the following:
Factor 1 Factor 2 Factor 3 Factor 4 Factor 5 Factor 6
x1 x16 x10 x21 x13 x7
x2 x17 x11 x22 x14 x8
x3 x18 x12 x23 x15 x9
x4 x19 x27 x24
x5 x20 X25
x6
Shopping
Diversion Facilities Utilitarian Convenience Inconvenience Socialization
Summary of Factor analysis

The analysis of the 27 constructs was finally reduced to the following 7 factors:

a) Diversion
o To forget about day to day anxiety
o To be refreshed
o To meet and spend time together with friends
o To escape from routine life
o To have a good time To be energized
b) Facilities
o It has good parking facilities
o It offers comfortable temperature
o It is convenient to move from one floor to another or to a parking
lot
o It is a good place for shopping with children
o Variety of Fashion Goods
c) Utilitarian
o To find value for the money
o To find product assortments that I need
o To take a look at the products being considered to purchase
o Reasonable Price for Value
d) Shopping Convenience
o It is pleasant to shop in
o It is convenient since payment can be made with a MALL credit
card
o It carries many famous brands
o It is convenient because it accept credit card for payment
o Merchandise is spaciously and well arranged
e) Inconvenience
o It is too crowded with people
o Its takes too much time to be checked out
o The price is rather high
f) Socialization
o To enjoy crowds
o To watch other people
o To visit a place that conveys the level of achievement I see for
myself
Cluster Analysis
After doing the factor analysis, the data was then divided into clusters based on
their responses. The Cluster analysis was done. We use the wards method for
cluster analysis.Referring the dendogram we decided to range our solutions
from 3 to 5 clusters i.e 3 cluster solution, 4 cluster solution and 5 cluster
solution. The cluster was then saved as three variables on the sheet.

Dendogram is as below

* * * * * * * * * * * * * * * * * * * H I E R A R C H I C A L C L U S T E R A N A
L Y S I S * * * * * * * * * * * * * * * * * * *

Dendrogram using Ward Method

Rescaled Distance Cluster Combine

C A S E 0 5 10 15 20 25
Label Num +---------+---------+---------+---------+---------+

201 ─┐
202 ─┤
198 ─┤
206 ─┤
209 ─┤
196 ─┤
44 ─┼─┐
211 ─┤ │
41 ─┤ ├─┐
43 ─┘ │ │
39 ─┐ │ │
40 ─┼─┘ │
171 ─┘ │
197 ─┐ ├───┐
203 ─┤ │ │
200 ─┤ │ │
205 ─┼─┐ │ │
42 ─┤ │ │ │
204 ─┤ ├─┘ │
213 ─┘ │ │
112 ─┐ │ │
175 ─┼─┘ │
208 ─┤ ├───────────────────────────────────────┐
218 ─┘ │ │
216 ─┐ │ │
217 ─┤ │ │
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After this step we decided to compare means in the clusters. Since there are 27
factors and cluster analysis results for means cannot be accommodated.
Comparing the results we selected cluster 4.

The SPSS data file was then split according to 4 cluster variable.

After splitting the file the composition of the cluster was studied then by using
the frequencies method. The results are as follows.
Frequencies

Notes

Output Created 22-Mar-2010 12:51:48

Comments

Input Data C:\Users\Karan\Documents\final.sav

Active Dataset DataSet1

Filter <none>

Weight <none>

Split File Ward Method

N of Rows in Working Data File 218

Missing Value Handling Definition of Missing User-defined missing values are treated as
missing.

Cases Used Statistics are based on all cases with valid

data.

Syntax FREQUENCIES VARIABLES=sex marstat

income Education occ

/STATISTICS=STDDEV MEAN

/PIECHART PERCENT

/ORDER=ANALYSIS.

Resources Processor Time 00:00:10.062

Elapsed Time 00:00:10.265

[DataSet1] C:\Users\Karan\Documents\final.sav
Ward Method =.

a
Statistics

Sex Marital Status Family Income Education Occupation

N Valid 13 13 13 13 13

Missing 0 0 0 0 0

Mean 1.38 1.15 3.54 3.00 2.08

Std. Deviation .506 .376 .877 .000 .277

a. Ward Method =.

Frequency Table

a
Sex

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 8 61.5 61.5 61.5

Female 5 38.5 38.5 100.0

Total 13 100.0 100.0

a. Ward Method =.
 a
Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 11 84.6 84.6 84.6

Married 2 15.4 15.4 100.0

Total 13 100.0 100.0

a. Ward Method =.

a
Family Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Between 1,00,000 and 2,00,000 3 23.1 23.1 23.1

Above 3,00,000 10 76.9 76.9 100.0

Total 13 100.0 100.0

a. Ward Method =.

a
Education

Cumulative
Frequency Percent Valid Percent Percent

Valid Post Graduate 13 100.0 100.0 100.0

a. Ward Method =.
 a
Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Student 12 92.3 92.3 92.3

Employed 1 7.7 7.7 100.0

Total 13 100.0 100.0

a. Ward Method =.

Pie Chart
Ward Method =1

a
Statistics

Sex Marital Status Family Income Education Occupation

N Valid 31 31 31 31 31

Missing 0 0 0 0 0

Mean 1.42 1.10 3.16 2.55 2.42

Std. Deviation .502 .301 .934 .506 .807

a. Ward Method =1

Frequency Table

a
Sex

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 18 58.1 58.1 58.1

Female 13 41.9 41.9 100.0

Total 31 100.0 100.0

a. Ward Method =1
 a
Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 28 90.3 90.3 90.3

Married 3 9.7 9.7 100.0

Total 31 100.0 100.0

a. Ward Method =1

a
Family Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Between 1,00,000 and 2,00,000 11 35.5 35.5 35.5

Between 2,00,000 and 3,00,000 4 12.9 12.9 48.4

Above 3,00,000 16 51.6 51.6 100.0

Total 31 100.0 100.0

a. Ward Method =1

a
Education

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduate 14 45.2 45.2 45.2

Post Graduate 17 54.8 54.8 100.0

 a
Education

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduate 14 45.2 45.2 45.2

Post Graduate 17 54.8 54.8 100.0

Total 31 100.0 100.0

a. Ward Method =1

a
Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Student 23 74.2 74.2 74.2

Employed 4 12.9 12.9 87.1

Professional 3 9.7 9.7 96.8

Other 1 3.2 3.2 100.0

Total 31 100.0 100.0

a. Ward Method =1
Pie Chart
Ward Method =2

a
Statistics

Sex Marital Status Family Income Education Occupation

N Valid 69 69 69 69 69

Missing 0 0 0 0 0

Mean 1.39 1.09 3.61 2.67 2.48

Std. Deviation .492 .332 .771 .475 .740

a. Ward Method =2

Frequency Table

a
Sex

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 42 60.9 60.9 60.9

Female 27 39.1 39.1 100.0

Total 69 100.0 100.0

a. Ward Method =2
 a
Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 64 92.8 92.8 92.8

Married 4 5.8 5.8 98.6

Divorced 1 1.4 1.4 100.0

Total 69 100.0 100.0

a. Ward Method =2

a
Family Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Between 1,00,000 and 2,00,000 12 17.4 17.4 17.4

Between 2,00,000 and 3,00,000 3 4.3 4.3 21.7

Above 3,00,000 54 78.3 78.3 100.0

Total 69 100.0 100.0

a. Ward Method =2
 a
Education

Cumulative
Frequency Percent Valid Percent Percent

Valid Graduate 23 33.3 33.3 33.3

Post Graduate 46 66.7 66.7 100.0

Total 69 100.0 100.0

a. Ward Method =2

a
Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Business 1 1.4 1.4 1.4

Student 43 62.3 62.3 63.8

Employed 16 23.2 23.2 87.0

Professional 9 13.0 13.0 100.0

Total 69 100.0 100.0

a. Ward Method =2

‘’
Pie Chart
Ward Method =3

a
Statistics

Sex Marital Status Family Income Education Occupation

N Valid 64 64 64 64 64

Missing 0 0 0 0 0

Mean 1.38 1.05 3.61 2.66 2.41

Std. Deviation .488 .278 .726 .541 .660

a. Ward Method =3

Frequency Table

a
Sex

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 40 62.5 62.5 62.5

Female 24 37.5 37.5 100.0

Total 64 100.0 100.0

a. Ward Method =3
 a
Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 62 96.9 96.9 96.9

Married 1 1.6 1.6 98.4

Divorced 1 1.6 1.6 100.0

Total 64 100.0 100.0

a. Ward Method =3

a
Family Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Between 1,00,000 and 2,00,000 9 14.1 14.1 14.1

Between 2,00,000 and 3,00,000 7 10.9 10.9 25.0

Above 3,00,000 48 75.0 75.0 100.0

Total 64 100.0 100.0

a. Ward Method =3

a
Education
 Cumulative
Frequency Percent Valid Percent Percent

Valid Graduate 24 37.5 37.5 37.5

Post Graduate 38 59.4 59.4 96.9

Other 2 3.1 3.1 100.0

Total 64 100.0 100.0

a. Ward Method =3

a
Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Student 44 68.8 68.8 68.8

Employed 14 21.9 21.9 90.6

Professional 6 9.4 9.4 100.0

Total 64 100.0 100.0

a. Ward Method =3
Pie Chart
Ward Method =4

a
Statistics

Sex Marital Status Family Income Education Occupation

N Valid 41 41 41 41 41

Missing 0 0 0 0 0

Mean 1.39 1.02 3.22 2.59 2.68

Std. Deviation .494 .156 .962 .547 .722

a. Ward Method =4

Frequency Table

a
Sex

Cumulative
Frequency Percent Valid Percent Percent

Valid Male 25 61.0 61.0 61.0

Female 16 39.0 39.0 100.0

Total 41 100.0 100.0

a. Ward Method =4
 a
Marital Status

Cumulative
Frequency Percent Valid Percent Percent

Valid Single 40 97.6 97.6 97.6

Married 1 2.4 2.4 100.0

Total 41 100.0 100.0

a. Ward Method =4

a
Family Income

Cumulative
Frequency Percent Valid Percent Percent

Valid Between 1,00,000 and 2,00,000 15 36.6 36.6 36.6

Between 2,00,000 and 3,00,000 2 4.9 4.9 41.5

Above 3,00,000 24 58.5 58.5 100.0

Total 41 100.0 100.0

a. Ward Method =4

a
Education
 Cumulative
Frequency Percent Valid Percent Percent

Valid School Level 1 2.4 2.4 2.4

Graduate 15 36.6 36.6 39.0

Post Graduate 25 61.0 61.0 100.0

Total 41 100.0 100.0

a. Ward Method =4

a
Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Student 19 46.3 46.3 46.3

Employed 16 39.0 39.0 85.4

Professional 6 14.6 14.6 100.0

Total 41 100.0 100.0

a. Ward Method =4
Pie Chart
Summary and Analysis
The Final behaviour of the clusters can be summarised in the following table:

Shopping
Diversion Facilities Utitilatrian Convience Incovenience Socialisation
1 2.912442396 3.774193548 3.564516129 4.077419355 3.52688172 2.075268817
2 3.77294686 4.376811594 3.072463768 4.020289855 3.183574879 2.516908213
3 3.390625 4.409375 3.515625 3.803125 3.65625 3.3125
4 3.821138211 3.76097561 3.567073171 3.87804878 3.463414634 3.650406504

Using this data we can conclude that on the basis of demographics the
perception or expectations of the customers differ. This finding is very useful for
us as the malls are sprouting throughout the country, hence to gain an edge or
competitive advantage we should direct our campaigns more effectively. The
increasing competition makes it more difficult to differentiate one mall from
another.
Limitations of the study
In the given time constraints, we could not carry out a widespread study.
Following were the limitations

 The sample size could have been larger though it was considered accurate

 The analysis on cluster can be more detail but due to limited knowledge
we could not deduce significant meaning. But there was one conclusion
that demographics to affect buyer behaviour.

 We could have also gone for specific studied of dependent variables and
carried out a regression analysis, but due to lack of resources that could
not be done.
References

 Text book- Marketing Research – Malhotra

 Text book- Marketing Research, Nargudkar

 A study: A typology of Korean discount shoppers: Shopping Motives, Store

attributes and Outcomes by JIN and KIM