Effects of Environmental Factors on the Purchasing Behavior of Customers in the High End Shopping Malls of Karachi (Exploratory Study).

Prepared by: Hafiz Muhammad Hussain Kaukab Taha Shoaib Younus

o Introductiono Literature Reviewo Research Methodologyo Samplingo Data Analysiso Findingso Conclusionso Referenceso Future Avenues of Research

Flow of Presentation

Impact of service environment on customers (Kotler, 1973). Effects of music on consumer behavior in shopping malls of

Karachi (Morier, 2005). Effects of fragrance on the purchasing behavior of customers

of Karachi (Wajida et al, 2004). Uncover the consumer perception regarding the shopping

environment in the shopping malls of Karachi

Background

To find out the effect of environmental factors on purchasing behavior of customers in he high end malls shopping malls of Karachi. Shopping malls are:

Dolmen Mall (Tariq Road) Forum (Clifton) Park Tower (Clifton) Millennium Mall (Gulistan e Johar)

Problem Statement

The objective of the research find out that which factors effects the behavior of customers in the high end shopping malls of Karachi. The factors included:

Fragrance Music Services Facilities

Research Objectives

The research has been defined on the basis of Asim Ali and Saf Hasnu 2008.

Short term Qualitative research.

Research Methodology

Venue Average foot hold on Saturday

Average foot hold b/w 2-4 pm

% of Responses Taken as Sample

Source Designation

Sample Size

Forum 12-13K 1000 5% Kashif S. Butt

Asst. Manager Marketing & Sales

50

Park Towers

12-13K 1000 5% M. Pervez Marketing Executive

50

Dolmen Mall

18-20K 1200 4% Jabir Hussain

Leasing Head

50

Millennium Mall

8-10K 800 6% Sentinals Security

Security Incharge

50

Population

Sampling Frame: The sample that represents the population of this study was taken

from Dolmen Mall (Tariq Road), Forum, Clifton, Park Tower and Millennium

50 people from each mall on Saturday during 2pm to 4pm Sampling Technique: Non Probability Convenience Based Sampling Sampling Size: 200 people were taken as sample size but only 167 people responded.

Response rate is 83.5%

Sampling

• Primary Data: Designed a questionnaire and conducted interviews from:o People after coming from shopping mallso Includes both male and female specially people aged between 17 years to

29 years

Data Collection Method

Secondary Data:oArticles, journals related to Shopping malls and consumer behaviors.oWebsites includes Scribd, Doaj, Jiad, SSRVI, Repec, J store.oDifferent Research Engines

Qualitative in Nature

Statistical tools percentile and graphical forms are used

Data Analysis Technique

Shopping Mall Attractiveness (Adly 2007). Preference of shopping in Shopping Malls rather than

e-shopping (Madichie, Blythe 2011). Retail market environment impact on consumers

(Ruoh, Eckman 2009). Malaysian students were motivated to visit malls

primarily by the interior design of the mall, opportunities for socializing and convenient one stop shopping (Ghingold, Dahari 2007).

Literature Review

Atmosphere of the service environment is an essential part of the point of purchase (Kotler 1973).

The decision making styles and behavior of consumer relates with the shopping mall environment. (Wesley 2005).

In retail locations consumers will be effected by addition of music in the environment (Turley & Milliman 2000).

Genders may have differentiating factors in enjoying individual shopping (Wake Field & Baker 1998)

Literature Review (cont.)

Theoretical Model

By Richard Michon, Hong Yu and Donna Smith (2007)

Utilitarian Value:

This means that the consumer buys the product deeply and by searching and it would be effective. It is related to data gathering in comparison to enjoy oriented behavior.

Hedonic Value:

Hedonic value is completely about entertainment and enjoyment. Hedonic value is related to shopping’s emotional enjoy and value. It deals with the emotional feelings of enjoyment and entertainment.

Explanation of Theoretical Model

Demographic Profile

53%47%

Gender

MaleFemale

22%

32%28%

11%7%

Age Groups

14-1920-2324-2829-3233 & Above

Amount of Purchase

83%

13%

4%

8000 or less8500 to 1500020000 TO 50000

Data Analysis

Yes No0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00% 84.43%

15.57%

Effect of Environmental Fators

Series 1

84.43% people responded that the environment of shopping mall has effected the purchasing behavior.

Disap-pointed

Poor Normal Satisfied Excellent0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

4.79%

20.96%

38.32%

22.75%

13.17%

Service Level of Sales Person

Series 1

38.32% people responded that service level of sales person is normal and only 4.79% people are disappointed by the services of

sales person of the mall.

32.93% people responded that service level of mall management is satisfied and only 4.19% people are disappointed.

Disappointed Poor Normal Satisfied Excellent0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

4.19%

17.96%

29.94%32.93%

14.97%

Service Level of Mall Management

Series 1

34.73% of people are agreed that fragrance effects the behavior of

consumer and only 8.98% are disagreed with this.

Strongly Disagree

Disagree Not Sure Agreed Strongly Agreed

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

10.78%8.98%

22.16% 23.35%

34.73%

Fragrance Effect

Series 1

28.74% people are strongly agreed about the effect of music on consumer and 25.75% people of sample are not sure and

same 25.75% agreed about its effect.

Strongly Disagree

Disagree Not Sure Agreed Strongly Agreed

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

9.58% 10.18%

25.75% 25.75%28.74%

Music Inspiration

Series 1

Other Factors

Play Area Food Court Prayer Area Sanitary Place

1.00%

11.00%

21.00%

31.00%

41.00%

51.00%

61.00%

71.00%

81.00%

91.00% 87.43% 89.82% 92.81%97.01%

Play Area

Food Court

Prayer Area

Sanitary Place

This graph defines the percentages of other factors which motivates and helps the customers during shopping in any shopping mall.

Respondents were satisfied with the retail environment available in shopping malls (Melanie Morrier 2005)

Respondents demanded better food court, children play area and prayer area for both male and female

Respondents were agreed on that music had a deep effect on their behavior (Turly and Milliman 2000)

Respondents were agreed that fragrance has a deep effect on their purchasing behavior (Robert Klara 2012) and (Gulas et al 1995)

Respondents were agreed that support, guidance of sales person attracts them to revisit that particular shopping mall or retail outlet (Parsons 2003)

Findings

The major limitations of the Research were;

Size of the sample

Availability of Data.

Time constraint is a big problem in conducting a study

Lack of coordination from management of malls

Limitation of Research

Respondents were satisfied with the retail environment of the shopping malls of Karachi

Environmental factors effect respondents purchasing behavior Environmental factors motivates the respondents to revisit the

shopping malls Environmental factors does not motivate them to pay extra

money for the purchase of a product it tends them to stay long in the shopping mall and purchase many other things.

Most of the respondents prefer slow music in shopping malls rather than fast and western music

Pray area, food court and children play area was the demand of the respondents.

Conclusion

Effects of Lightening on the purchasing behaviour of the customers in the High End Malls of Karachi.

Effects of temperature on the purchasing behaviour of the customers in the High End Malls of Karachi.

Effects of product color on the purchasing behaviour of the customers in the High End Malls of Karachi.

Future Avenues of Research

Ali and Hasnu, 2008, “An Analysis of In- Store Shopping Environment on Consumers “Impulse Buying”, Pakistan, Comsats Institute of Information and Technology

Andrew G Parsons,2003, “Assessing the effectiveness of shopping mall promotions: customer analysis” V:31 (2), International Journal of Retail and Distribution Mnagement

Barry J. Babin, William R. Darden and Mitch Griffin,1994,” Work and/or Fun: Measuring Hedonic and Utilitarian Shopping Value”, V:20 (4), Journal of Consumer Research

Guijun Zhuang, Alex S.L. Tsang, Nan Zhou, 2006,” Impacts of situational factors on buying decisions in shopping malls: An empirical study with multinational data”V:40,European Jouranl of Marketing

Jumin Lee, Do-Hyung Park, Ingoo Han,2011,” The different effects of online consumer reviews on consumers' purchase intentions depending on trust in online shopping malls” V:21 (2), Internet Research

Kotler 1973, “Atmospheric as a Marketing Toll” 49 (4), 48-64 Journal of Retailing Melanie Morier, 2005,” The Sweet Smell and Sound of Success in a Shopping Mall” Canada, Concoradia

University Mohammed Ismail El-Adly,2007, “Shopping malls attractiveness: a segmentation approach” V:35 (11),

International Journal of Retail and Distribution Mnagement Nnamdi O. Madichie, Jim Blythe,2011,” The “bold and the beautiful” of the UAE retail environment” V:29

(6), Marketing intelligence and Planning Richard and Turley , 2003,” The interaction effects of Mall Environment on Shopping Behavior” Toronto,

Canada, Ryerson University Ruoh-Nan Yan, Molly Eckman,2009,” Are lifestyle centres unique? Consumers' perceptions across

locations” V:37 (11), International Journal of Retail and Distribution Mnagement Tooraj and Saladaine, 2011, “The Effect of Shopping Mall Environment on Shopping Behavior under a

Model” Iran, Middle East Journal of Scientific Research Zafar U. Ahmed, Morry Ghingold, Zainurin Dahari,2007,” Malaysian shopping mall behavior: an

exploratory study” V:19 (4),Asian Pacific Journal of Marketing and Logistics

References