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A

Summer Training Project

On

CITY MALL

Pandya Group

“Mall Mania”

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted by: Submitted to:Gaurav Garg Mr. Jayesh JoshiMBA Part II

Year 2012 – 2013

Company Certificate

Faculty Certificate

Preface

Acknowledgement

I express my sincere thanks to my project guide, Mr. /Dr./Ms./Mrs.

________________________________. Designation

_________________, Deptt______________., for guiding me right

from the inception till the successful completion of the project. I

sincerely acknowledge him/her/them for extending their valuable

guidance, support for literature, critical reviews of project and the

report and above all the moral support he/she/they had provided to

me with all stages of this project.

I would also like to thank the supporting staff

___________________________ Department, for their help and

cooperation throughout our project.

(Signature of Student)

Name of the Students

Executive Summary

1. Industry Profile

1.1 What is retailing?Retailing is a distribution channel function, where one organization

buys products from supplying firms or manufactures products

themselves, and then sells these directly to consumers.

In majority of retail situations, the organization, from whom a

consumer buys, is a reseller of products obtained from others, and

not the product manufacturer. However, some manufacturers do

operate their own retail outlets in a corporate channel arrangement.

Retailers offer many benefits to suppliers and customers as

resellers. Consumers, for instance, are able to purchase small

quantities of an assortment of products at a reasonably affordable

price. Similarly, suppliers get an opportunity to reach their target

market, build product demand through retail promotions, and

provide consumer feedback to the product marketer.

1.2 IntroductionThe India Retail Industry is the largest among all the industries,

accounting for over 10 per cent of the country GDP and around 8

per cent of the employment. The Retail Industry in India has come

forth as one of the most dynamic and fast paced industries with

several players entering the market. But all of them have not yet

tasted success because of the heavy initial investments that are

required to break even with other companies and compete with

them. The India Retail Industry is gradually inching its way towards

becoming the next boom industry. 

The total concept and idea of shopping has undergone an attention

drawing change in terms of format and consumer buying behavior,

ushering in a revolution in shopping in India. Modern retailing has

entered into the Retail market in India as is observed in the form of

bustling shopping centers, multi-storied malls and the huge

complexes that offer shopping, entertainment and food all under

one roof. 

A large young working population with median age of 24 years,

nuclear families in urban areas, along with increasing

workingwomen population and emerging opportunities in the

services sector are going to be the key factors in the growth of the

organized Retail sector in India. The growth pattern in organized

retailing and in the consumption made by the Indian population will

follow a rising graph helping the newer businessmen to enter the

India Retail Industry. 

In India the vast middle class and its almost untapped retail industry

are the key attractive forces for global retail giants wanting to enter

into newer markets, which in turn will help the India Retail Industry

to grow faster. Indian retail is expected to grow 25 per cent

annually. The Food Retail Industry in India dominates the shopping

basket. The Mobile phone Retail Industry in India is already a US$

16.7 billion business, growing at over 20 per cent per year. The

future of the India Retail Industry looks promising with the growing

of the market, with the government policies becoming more

favorable and the emerging technologies facilitating operations.

1.3 The Indian retail sceneIndia is the country having the most unorganized retail market. The

Indian retail sector is estimated at around Rs 900,000 crore, of

which the organized sector accounts for a mere 2 per cent

indicating a huge potential market opportunity that is lying in the

waiting for the consumer-savvy organized retailer.

Purchasing power of Indian urban consumer is growing and

branded merchandise in categories like Apparels, Cosmetics,

Shoes, Watches, Beverages, Food and even Jewelers, are slowly

becoming lifestyle products that are widely accepted by the urban

Indian consumer. Indian retailers need to advantage of this growth

and aiming to grow, diversify and introduce new formats have to

pay more attention to the brand building process. The emphasis

here is on retail as a brand rather than retailers selling brands. The

focus should be on branding the retail business itself. In their

preparation to face fierce competitive pressure, Indian retailers

must come to recognize the value of building their own stores as

brands to reinforce their marketing positioning, to communicate

quality as well as value for money. Sustainable competitive

advantage will be dependent on translating core values combining

products, image and reputation into a coherent retail brand

strategy.

There is no doubt that the Indian retail scene is booming. A number

of large corporate houses have already made their foray into this

arena, with beauty and health stores, supermarkets, self-service

music stores, new age book stores, every-day-low-price stores,

computers and peripherals stores, office equipment stores and

home/building construction stores. Today the organized players

have attacked every retail category. The Indian retail scene has

witnessed too many players in too short a time, crowding several

categories without looking at their core competencies, or having a

well thought out branding strategy. 

1.4 Strategies Trends & OpportunitiesRetailing in India is gradually inching its way toward becoming the

next boom industry. The whole concept of shopping has altered in

terms of format and consumer buying behavior, ushering in a

revolution in shopping in India. Modern retail has entered India as

seen in sprawling shopping centers, multi-storied malls and huge

complexes offer shopping, entertainment and food all under one

roof. The Indian retailing sector is at an inflexion point where the

growth of organized retailing and growth in the consumption by the

Indian population is going to take a higher growth trajectory. The

Indian population is witnessing a significant change in its

demographics. A large young working population with median age

of 24 years, nuclear families in urban areas, along with increasing

workingwomen population and emerging opportunities in the

services sector are going to be the key growth drivers of the

organized retail sector in India.

1.5 Growth of Retail sector in IndiaRetail and real estate are the two booming sectors of India in the

present times. And if industry experts are to be believed, the

prospects of both the sectors are mutually dependent on each

other. Retail, one of India’s largest industries, has presently

emerged as one of the most dynamic and fast paced industries of

our times with several players entering the market. Accounting for

over 10 per cent of the country’s GDP and around eight per cent of

the employment retailing in India is gradually inching its way toward

becoming the next boom industry.

As the contemporary retail sector in India is reflected in sprawling

shopping centers, multiplex- malls and huge complexes offer

shopping, entertainment and food all under one roof, the concept of

shopping has altered in terms of format and consumer buying

behavior, ushering in a revolution in shopping in India. This has

also contributed to large-scale investments in the real estate sector

with major national and global players investing in developing the

infrastructure and construction of the retailing business. The trends

that are driving the growth of the retail sector in India are

Low share of organized retailing

Falling real estate prices

Increase in disposable income and customer aspiration

Increase in expenditure for luxury items 

Another credible factor in the prospects of the retail sector in India

is the increase in the young working population. In India, hefty pay

packets, nuclear families in urban areas, along with increasing

working-women population and emerging opportunities in the

services sector. These key factors have been the growth drivers of

the organized retail sector in India which now boast of retailing

almost all the preferences of life - Apparel & Accessories,

Appliances, Electronics, Cosmetics and Toiletries, Home & Office

Products, Travel and Leisure and many more. With this the retail

sector in India is witnessing rejuvenation as traditional markets

make way for new formats such as departmental stores,

hypermarkets, supermarkets and specialty stores. 

The retailing configuration in India is fast developing as shopping

malls are increasingly becoming familiar in large cities. When it

comes to development of retail space specially the malls, the Tier II

cities are no longer behind in the race. If development plans till

2007 is studied it shows the projection of 220 shopping malls, with

139 malls in metros and the remaining 81 in the Tier II cities.

India is being seen as a potential goldmine for retail investors from

over the world and latest research has rated India as the top

destination for retailers for an attractive emerging retail market.

India’s vast middle class and its almost untapped retail industry are

key attractions for global retail giants wanting to enter newer

markets. Even though India has well over 5 million retail outlets, the

country sorely lacks anything that can resemble a retailing industry

in the modern sense of the term. This presents international

retailing specialists with a great opportunity. The organized retail

sector is expected to grow stronger than GDP growth in the next

five years driven by changing lifestyles, burgeoning income and

favorable demographic outline. 

1.6 Industry EvolutionTraditionally retailing in India can be traced to:

The emergence of the neighborhood Kirana stores catering to the

convenience of the consumers

Era of government support for rural retail: Indigenous franchise

model of store chains run by Khadi & Village Industries

Commission1980s experienced slow change as India began to

open up economy.

Textiles sector with companies like Bombay Dyeing, Raymond's, S

Kumar's and Grasim first saw the emergence of retail chains

Later Titan successfully created an organized retailing concept and

established a series of showrooms for its premium watches

The latter half of the 1990s saw a fresh wave of entrants with a shift

from Manufactures to Pure Retailers.

Post 1995 onwards saw an emergence of shopping centers mainly

in urban areas, with facilities like car parking targeted to provide a

complete destination experience for all segments of society

Emergence of hyper and super markets trying to provide customer

with - Value, Variety and Volume

Expanding target consumer segment: The Sachet revolution -

example of reaching to the bottom of the pyramid.

At year end of 2000 the size of the Indian organized retail industry

is estimated at Rs. 13,000 crore

1.7 Retailing format in IndiaMalls: The largest form of organized retailing today. Located mainly in

metro cities, in proximity to urban outskirts. 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.

Department Stores: Large stores ranging from 20000-50000 sq. ft, catering to a variety

of consumer needs. Further classified into localized departments

such as clothing, toys, home, groceries, etc.

Departmental Stores are expected to take over the apparel

business from exclusive brand showrooms.

Hyper marts/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

1.8 Recent Trends India is rated the fifth most attractive emerging retail market: a

potential goldmine.

Multiple drivers leading to a consumption boom:

o Favorable demographics

o Growth in income

o Increasing population of women

o Raising aspirations: Value added goods sales

Food and apparel retailing key drivers of growth

Organized retailing in India has been largely an urban

Phenomenon with affluent classes and growing number of double-

income households.

More successful in cities in the south and west of India. Reasons

range from differences in consumer buying behavior to cost of real

estate and taxation laws.

Rural markets emerging as a huge opportunity for retailers reflected

in the share of the rural market across most categories of

consumption

IT is a tool that has been used by retailers to radically change

buying behavior across the globe.

1.9 Challenges & OpportunitiesRetailing has seen such a transformation over the past decade that

its very definition has undergone a sea change. No longer can a

manufacturer rely on sales to take place by ensuring mere

availability of his product. Today, retailing is about so much more

than mere merchandising. It’s about casting customers in a story,

reflecting their desires and aspirations, and forging long-lasting

relationships. As the Indian consumer evolves they expect more

and more at each and every time when they steps into a store.

Retail today has changed from selling a product or a service to

selling a hope, an aspiration and above all an experience that a

consumer would like to repeat. 

For manufacturers and service providers the emerging

opportunities in urban markets seem to lie in capturing and

delivering better value to the customers through retail. However,

manufacturers and service providers will also increasingly face a

host of specialist retailers, who are characterized by use of modern

management techniques, backed with seemingly unlimited financial

resources. Organized retail appears inevitable. 

Retailing in India is currently estimated to be a US$ 200 billion

industry, of which organized retailing makes up a paltry 3 percent or

US$ 6.4 billion. By 2010, organized retail is projected to reach US$

23 billion. For retail industry in India, things have never looked

better and brighter. Challenges to the manufacturers and service

providers would abound when market power shifts to organized

retail.

1.10 ConclusionThe retail sector has played a phenomenal role throughout the

world in increasing productivity of consumer goods and services. It

is also the second largest industry in US in terms of numbers of

employees and establishments. The India Retail Industry is the

largest among all the industries, accounting for over 10 per cent of

the country’s GDP and around 8 per cent of the employment. The

Retail Industry in India has come forth as one of the most dynamic

and fast paced industries with several players entering the market.

But all of them have not yet tasted success because of the heavy

initial investments that are required to break even with other

companies and compete with them. The India Retail Industry is

gradually inching its way towards becoming the next boom industry.

1. Introduction

The retail sector in India, which is dominated by small and

unorganized entrepreneurs consisting of standalone stores,

boutiques and kirana stores are radically changing its face. There

has been a massive development of new retail formats such as

malls, hypermarkets, supermarkets and lifestyle stores. As the

spending power in the economy is growing fast, this Development

has gained importance not only in the metropolitan cities but also in

the Tier II and III towns. There is a need to understand the

changing behavior of consumers towards shopping in this

organized retail outlets. Also, due to the limited success of these

outlets, it is necessary for retailers to be aware of shoppers’

motivations and to understand ways of attracting the consumers. In

this project, I attempt to investigate the shopping behavior of the

consumers, particularly with the new retail formats emerging. This

study would concentrate on the behavior the consumer exhibits

while visiting or making purchases in the newly opened malls. It

would explore the purpose and motive behind the consumers’ visit

to these newly established shopping malls, the values they derive

from the shopping trip and their shopping behavior in terms of

impulse purchases, time and money spent at the shopping mall,

etc. A final objective is to establish a baseline for examining

changing behavior in future as developments continue.

1.1 Definition of ShoppingIt is considered as a household task as well as a form of recreation,

relaxation and entertainment. Shopping can be a leisure pursuit and

with the rapid development of shopping centers, both retailers and

developers are trying to make it more of a pleasure activity.

1.2 Consumer Buying BehaviorThe traditional shopping choice behavior of consumers was related

to need recognition, when the consumer comes to know that he

wants to purchase a product. Once the need has been recognized,

then he moves on to search for information about the product and

evaluates the alternatives available to him before finally makes a

decision to purchase the product. He might visit certain outlets

stocking that product, consult his friends, buying guides or store

employees about it. Even after making the purchase, he might

reevaluate it. Shopping behavior of different consumers is different

in. The reasons of this varying shopping behavior are the diverse

cultures and the changing economies. A study of the various kinds

of shopping behaviors therefore needs to be done, covering the

various shopping contexts.

There are four types of purchase behaviors namely, planned,

unplanned, impulse and compulsive buying behavior. Planned

buying behavior involves information search about the product to be

bought, evaluation of alternatives and then rational decision

making. This is time consuming. Unplanned buying behavior does

not involve this kind of an initial planning. It arises when the

consumer is unfamiliar with the store layout, has a shortage of time

or just remembers to buy the product when he sees it on the store

shelf. Impulse buying behavior occurs when a consumer finds a

product on the store shelf and is unable to resist the urge of buying

it. It accounts for a large quantity of products sold that are bought

every year and also covers a wide range of product categories.

Repetitive and excessive shopping by consumers due to anxiety,

boredom and tension is referred to as compulsive buying behavior.

Many other factors may also affect purchase decisions. A person is

likely to be influenced in making his/ her purchase decisions if he/

she are accompanied by another individual while making a

shopping trip. That a person will tend to shop more and spend more

money when going out with someone. Other situational factors can

also have an impact on shopping behavior and purchase decisions.

They include task definition, antecedent states, social and physical

surroundings and temporal perspectives. For example, scarcity of

time, any pre-existing affects choice of the retail outlet. Shopping

frequency is also a significant concept while studying consumer

shopping behavior. It is defined as the number of incidences when

a product is purchased by someone in person. The shopping

frequency is subjective to the time and effort that is put by a person

and his/ her gender and shopping responsibility for the household.

It is also determined by the shopping context.

1.3 Shopping MallsA shopping mall is typically, a shopping complex connected by

walkways. It provides shopping as well as entertainment options to

the target consumers. It generally, contains one anchor store,

which consumes twenty five percent of its retail space. In addition a

mall contains specialty stores for clothes, accessories, home

needs, books, as well as food court, multiplexes and entertainment

zones. A shopping mall is a place where a wide mix of retail outlets

are situated under one roof, and is usually anchored by one or

more stores like departmental stores, which also helps to attract

consumer traffic to that place. Shopping malls have grown larger

over the years and have expanded to include service outlets and

entertainment providers. They are advertised as both shopping

and recreation centers. An added advantage of the shopping mall is

that all merchandise, entertainment such as a theatre or

amusement park, food, services and atmosphere in the mall are all

available under one roof and it is environmentally protected. This

advantage also acts as a crowd puller. Moreover, the consumer

can shop without the tensions of any traffic congestions or parking

problems, security issues or crime districts. The collection of shops

in the shopping mall is managed together and is taken as one

single unit.

Shopping malls are supposed to be a place where one goes to buy

goods, people can stroll on the shiny floors of these shopping

havens, peeping through the many glass windows and frequently

ending up buying the things they like or need. But right here in the

provinces mall hopping has become more than a favourite pastime

for many; the air-conditioned centres are perfect places to escape

the oppressive heat. People can not only spend time during the

long opening hours for their customary shopping, but also watch

movies, dine, play video games or just roam around with family and

friends. However, a great number of people are trying to escape

from their otherwise poor living conditions and are wandering

around the crowded aisles and stores just following their nose and

watch people and the world go by or only visit the place for the

pleasure of window shopping. Glancing at the goods they cannot

afford today but maybe one day when times are better. There are

many youngsters, also known as “mall rats”, which are rambling

about the malls after school, primarily to chum with schoolmates

and cronies, spending three or more hours every day because the

place is large, convenient, it is free, the food courts have various

inexpensive eating opportunities, it is the ultimate place to find

somebody to flirt with and the place is clean and safe. These

juveniles feel free from harm; several armed security guards politely

opening the entrance and exit doors, checking bags and patrolling

the malls are providing safety and protection for their customers.

Dozens of young boys are maintaining the malls, devotedly

washing the store windows, sweeping and scrubbing the floors and

stairs, whipping the tables in the food court and collecting the

garbage. The screaming children that are wildly playing unattended

up and down the escalators give the impression not to be a

hindrance to staff and visitors, these kids are caught up in their

game; it looks like the mall around them does not exist

anymore. Probably their roving parents are too pre-occupied and

fascinated as well with all the awe-inspiring impressions that are

present. The smell of new clothing, the fragrance of perfumes and

leather goods makes many shopping addict heart beat faster,

realizing that these oversized warehouses are indeed a shopper’s

paradise on earth. The aroma of all kinds of mouth-watering food

coming from the distinctive eating outlets is a strong reminder never

to shop on an empty stomach.

 

All together these malls resemble a giant beehive that is full of

activity and savour, with a cacophony of voices, music and

machines now and then interfered by some squeaky murmur

clanging out of the malls broadcasting system. On top of

everything, customers will be pleasantly entertained from the

beginning to the end with country-classical sweepstakes that are

organised a couple of times a year. When spending a certain

amount of money in the mall, raffle tickets are given to the buyers

who can win a large sum of prize money and other fantastic gifts. At

the end of the promotional period, the lottery draw is always

attracting a large audience of contestants, all of them eager to win

the main prize. Usually local artists will perform and show off their

musical chops during the draw, additionally a singing contest is

held for upcoming talent, making these kinds of competitions very

popular among the general public.

The many fascinating festivals that are organized in mall are a

dynamic, integral part of daily life; these festivities are rooted

deeply within the people and their culture. With high spirits,

enormous vitality and great enthusiasm, different kinds of creative

activities, big or little ceremonies are held all year round.

1.4 Determinants for Choice of Shopping MallStore choice behavior of a consumer is considered a cognitive

procedure. It is believed to be a process of information processing

as the brand choice or any purchase decision is considered. It is

very similar to the decision of making a brand choice except the

fact that store choice is influenced by the location factor, which

does not need to be considered when making a selection of brands.

The choice of store by the consumer was differentiated by the

nature of the task that had to be executed by him. The different

tasks that were described by the respondents included urgent

purchases, large quantity purchases, difficult job, regular purchases

and getting ideas. Store choice decision is also driven by other

tangible and intangible characteristics provided by the store. They

include the store size, format, and distance from home and

environment. Store choice can also be influenced by situational

factors such as time constraints and gift versus self shopping,

further which can be classified as the competitive setting, the

individual’s situational set and the shopping occasion. However, if

store choice is evaluated by the nature of situational factors, then

these factors need to be studied for each shopping visit of the

consumers to the various stores, also looking into the costs

incurred and the benefits made by them during the shopping task.

The major determinants of store choice behavior to be external

factors such as retail floor space distance, parking facilities, etc.

1.4.1 LocationLocation is an important aspect of marketing and a good location

can be a source of competitive advantage for the retail outlet .Some

researchers have even shown that, while good business practices

may not compensate for poor location, good location may

compensate for poor business practices. In relation to the location

of the shopping mall, accessibility and visibility are the two

determinants which need to be noted.

1.4.2 Shopping Experience

The prime advantage of an experience product is the experience

that the shopper goes through by purchasing that product or

service. Consumers derive value from purchasing these goods or

services because of their unique qualities and are ready to pay a

little extra for them. Mall developers have also tried to cope up in

the experience economy by providing the consumers with good

store ambience as well as entertaining and amusing experiences

apart from shopping. They have added movie theatres or keep

organizing live performances for the consumers in which they can

get engaged and enjoy their experience while shopping in the mall.

The age group of teenagers also preferred going to a shopping mall

whose atmosphere was friendly and made them feel welcomed.

They wanted a mall which provided cool stores, entertainment

options, attractive designing and a good place to spend time with

friends, on the whole a good shopping experience. Consumers

these days are becoming very variety seeking and searching for

novel and unique experiences. They see malls as a source and

venue for recreation. Thus the overall shopping experience which

includes shopping, leisure as well as entertainment is a key

determinant of mall attractiveness.

1.4.3 Shopping Mall ImageThe image of the shopping mall is also related to the frequency of

customer visits to that mall. Shopping mall image has been defined

as the total of consumers’ perceptions of a shopping mall based on

functional and emotional attributes. Shopping mall developers

should expend resources towards the communication of the right

image of the shopping mall and this communication should be

driven towards improving its image and thus frequency of visits.

The image is also subject to the presence of anchor stores and

other physical characteristics.

ConclusionAfter discussion of the factors influencing choice of shopping malls,

it is worth mentioning that the effect of some of these factors like

retail floor space, number of shops and distance weaken over time,

whereas the effects of other factors like anchor stores, tourism site

strengthen over time. A healthy assortment of all these factors

increases the attractiveness of the shopping mall. However,

studying individual choice decisions would not help us to

understand the behavior of the market as a whole.

2. Research Methodology

Many attempts have been made to provide a formal definition of the

research activity. “Research is a collection of methods people use

systematically to produce knowledge”. Research has also been

defined as an organized and deliberate effort to collect new

information or to utilize existing knowledge for a new purpose,

seeking to answer worthwhile and fundamental questions, by

employing valid and reliable techniques. In addition, research

involves the use of more appropriate tests to justify the methods

employed, and provides logical and objective data collection where

conclusions can be drawn.

Ultimately, it contributes to the gaining of new knowledge and a

better appreciation for the issues involved by the researcher. Every

piece of research has its own aims. Keeping in mind those aims,

the research objectives and the method to accomplish these

objectives should be derived. It is necessary for the researcher to

know the suitability and the limitations of choosing the appropriate

method so as to be able to take necessary precautions for

increased validity, reliability and generalizibility of the research

The use of appropriate methodology is very essential as it is an

important part of a research investigation. A well-defined

methodology is a crucial step in activities that require concrete

results as the process of achieving the result can both be studied

and verified.

2.1 Objectives of the study

The study has the following objectives:

• How are the consumers’ shopping habits changing with upcoming

retail formats, specifically malls?

• What are the determinants of consumers when choosing between a

shopping mall and the unorganized market?

To determine the relative importance of criteria which influence the

overall attractiveness of mall

To assess the reasons for visiting the mall and their expenditure

pattern

To propose a model depicting shopping mall Attractiveness

With the help of the data that I have collected, I would compare the

past trend with the present trends with respect the gradual

movement in the consumer shopping habits in the country and the

factors leading to it. With the continuing drift in their shopping

habits, the future prospects of organized retailing.

2.2 Qualitative vs. Quantitative Research

Qualitative and quantitative research methods are two major

approaches employed by researchers. These two methods

are distinct from each other. Qualitative research seeks to

describe and decode the meaning of naturally occurring

phenomena in the social world through interpretative

approaches, and thereby provides “well-substantiated

conceptual insights that reveal how broad concepts and

theories operate in particular cases”. On the other hand,

quantitative research “emphasizes measurement and

analysis of causal relations among variables” and tests

general propositions using the hypothetical deductive

model. Quantitative research “imposes scientific meanings

on members to explain a singular, presumed-to-be true

reality”.

“Qualitative research thus has an inherently literary and humanistic

focus, whereas quantitative research is grounded in mathematical

and statistical knowledge”. The former uses richly descriptive

words, talk, and texts as meaningful representations of concepts;

the latter, in contrast, seeks significant representations of concepts

through coding, counting, and quantifying phenomena. The choice

of research methods is not always an either-or question, rather a

careful evaluation of the suitability for research purpose and the

type of questions posed. In effect, both of research methods can be

used in a single piece of work to deal with different types of

research questions. However, qualitative research methods have

been used by me in order to conduct this research because

qualitative research can provide ‘in-depth’ understandings of

research subjects in comparison with quantitative research.

Quantitative research methods were also analyzed while choosing

a method of research for this study, however the behavior of

consumers cannot be quantified and thus it would be difficult to

analyze. Thus qualitative research methods have been used.

2.3 Data Collection

Both primary and secondary data were used in order to conduct

this research.

2.3.1 Secondary Data

Secondary data is very important in research because this can help

the researcher to avoid duplication on research that has already

been conducted. This saves the researcher’s time and cost in

conducting repetitive work. By conducting secondary research prior

to primary research, the researcher can assess the availability of

information and use it as a basis to design the methods to collect

the primary data. In addition this can only enable a researcher to

develop a hypothesis or assumptions about the topic. Secondary

research also has the benefit of being carried out in privacy without

anyone knowing about it (Wright and Crimp, 2000). This is a cheap

and impersonal form of research compared to primary research as

this can be done at the researcher’s own convenience, either at

home or at the university. The data sought from secondary forms of

research are historical as they are from the past, thus meaning that

comparisons can be made by comparing the past and current

situations. This research was carried out by using news paper

articles, internet reports, textbooks, industry reports, etc. Data from

academic journals and textbooks was particularly useful in

reviewing the existing literature on consumer buying behavior and

their choice determinants for shopping malls. However, one of the

major drawbacks of this method of research is that sometimes the

information gathered may not directly fit into your research area

and some data can also be out of date and not valid at the present

moment (Kemp, 2002). The information gathered from the sources

can have an impact on the level of bias and in addition may not be

very accurate. Some research reports about companies or retailers

can be confidential and thus not published and difficult to obtain.

2.3.2 Primary Data

Primary research as “Data collected specifically for the research

project undertaken”. The three main types of primary research that

can be used are observation, interviews and surveys. For the

purpose of this research I have used interviews as a form of

primary research.

2.3.2.1 Interviews Interviewing has been one of the most widely used research

approaches among a variety of qualitative methods. Interviews can

be used conducting various techniques such as telephone

interviews, face to face interviews and focus group interviews.

Interviews are a very common and flexible form of gathering

qualitative data and are an effective form of conducting exploratory

research, which can allow opinion of those with expertise in areas

related to the subject matter under investigation to be examined. In

social research there are four main types of interviewing

techniques. Firstly, fully structured interviews are where the

situation is fully controlled by the questionnaire in terms of

questions and potential answers. Secondly, semi structured

interviews are where open ended questions are used and the

interview’s job is to probe for more depth answers. Thirdly,

unstructured interviews are where neither the interviewer nor the

interviewee has set questions. Instead, a topic guide forms the

basis of the interview, and the interviewee is encouraged to explore

his/ her thoughts on the topic of research. Finally, in the in depth

interviews, the respondent is encouraged to go deeper and deeper

into their levels of thinking to develop into the subject area.

For conducting the interviews, two different sample populations

were chosen. The first sample consisted of retailers who had

already opened their outlets in the shopping mall. For conducting

these interviews, purposeful sampling was used. Purposeful

sampling selects information rich cases for in depth study. This

could be a help as most of these retailers already had their outlets

in the unorganized markets before opening shop in the shopping

mall. Thus, they could give their views on the consumers’ shopping

habits in the mall and how was it different from the outlets in the

markets. Qualitative research typically uses a relatively small

sample yet focuses in depth on it. Therefore, a sample size of 15

respondents was chosen for taking the interviews of retailers.

For choosing the second sample, a simple random sampling

technique was used. A simple random sample is obtained by

choosing elementary units in search a way that each unit in the

population has an equal chance of being selected. A simple

random sample is free from sampling bias. This sample consisted

of consumers, who have seen a drastic change in the organization

of the retail scenario and are familiar with it. Random people were

chosen from family, friends and employees who are a part of the

consumer group and are a witness to this transition. To get a wider

view, the respondents that were chosen belonged to diverse age

groups and income levels. The sample size for this was 20.

2.4 Research ProcedureIn order to perform a successful research, it is very important to

have a well defined procedure of carrying it out. To start this

research I started reading a literature that was relevant to my area

of study, which took a very long time. Reading that, I formulated

the literature review which consisted mostly of consumer buying

behaviour and their choice determinants for choosing a shopping

mall. After a careful examination of the literature, questionnaires

were formulated for conducting the interviews from the retailers

who had opened their outlets in the malls and the Indian

consumers.

Conducting the interviews from the retailers was not a very easy

task to do. Even though I approached them in their non peak sale

time of the day, they seemed to be busy and disagreed to give the

interviews. Furthermore, most of the retailers who agreed to be

interviewed by me were reluctant of giving recorded ones.

However, I got hold of 15 retailers from mall and conducted their

interviews and writing down their responses side by side. For the

interviews of the consumers, approaching them was quite easy as

most of them were familiar with my area of study. Face to face

interviews with some and telephonic interviews with the others

helped me complete my field research. Gaining trust was a crucial

part of the whole process of conducting the interview because if the

researcher is not trusted the interviewee may not refuse to give the

interview but may desire and act such that the interview gets over

as quickly as possible with enough detail to satisfy the researcher

that she is getting something of value but without saying anything

that touches the core of what is actually being believed and cared

about in the research. Thus the purpose of the interview and the

study was explained clearly too each interviewee before taking the

interview the data that was collected was then analyzed and results

were evaluated. Some recommendations for the future were then

suggested for the developers and the retailers.

2.4.1 Sample size:

Samples are devices for learning about large masses by observing

a few individuals. A sample size of 15 respondents was chosen for

taking the interviews of retailers. Random people were chosen from

family, friends and employees who are a part of the consumer

group and are a witness to this transition. To get a wider view, the

respondents that were chosen belonged to diverse age groups and

income levels. The sample size for this was 20.

2.4.2 Methods of Sampling:

The method adopted here is random sampling method. A Random

sample is one where each item in the universe has as an equal

chance of known opportunity of being selected.

2.5 Scope of the study: It will help the mall to understand the level of customer happiness.

It will help the mall to retain the service.

It will help the mall to evaluate strength and weakness.

This study will also reveal the customers attitude towards mall.

2.6 Limitations of the study:

As no person is perfect in this world, in the same way no study can

be considered as fully reliable at one glance. There are a number of

uncontrollable factors acting as limitations in conducting the study.

Some of such limitations encountered by me in our study are -

Time factor was the main limitation for the study as the project was

restricted to small period.

The research was limited only to the Kota city so the result can’t be

generalized to the whole market.

The sample taken for research was concerned only for few

customers rather than millions of customers.

Since the project has to be completed within a short period of time

the information collected could be biased.

Some of the premium segments could not be met due to time lack

and by not obtaining prior appointment due to tight schedule of the

respondents.

Non - availability of secondary data compelled me to start from the

very minute information.

Some respondents gave biased responses. This may have

influenced the results.

Some people were afraid and showed complete reluctance to give

responses to some questions.

3. Analysis & Interpretation

The analysis and interpretation of the data that is collected has

been carried out. The interviews have been broken down into

themes aiming to carry out a comprehensive in-depth analysis. This

part has been broken down into two sections – the retailer’s point of

view and the customers’ perspectives.

3.1 Retailers’ Perspective

The interviews that had been taken from the retailers who had

already opened their retail outlets in the mall have been analyzed in

the following section. The responses by the retailers have been

listed below and then analyzed later.

Q1. How long has it been since you have opened the shop in this

mall?

Many retailers who were interviewed had opened their outlets in the

malls since a period of less than 2 years except few.

Q2. Why did you choose to open your outlet in the mall other than

the unorganized market?

Different retailers gave different responses to this question. The

most common reasoning that was given by them was the upcoming

trend of mall shopping and the changing customer preferences. As

all their needs get fulfilled under one roof and they get the required

quality, price and environment, they are attracted more towards the

mall. Another reason for the customers getting fascinated to the

mall is the hot and rainy weather conditions. Other responses

included bigger retail space which is not available in the congested

unorganized markets, and also for the separation of the commercial

establishments from the residential areas.

Q3. Do you have another retail outlet other than in this mall?

Some retailers had their outlets in unorganized markets of different

areas and some retailers only had outlet in mall.

Q4. Do you reach the targeted sales level in this outlet or as much

as the other outlets?

There was a mixed response of this question. Some of the

interviewed retailers were happy with the amount of sales level that

they were getting in their mall outlet as their target was being

achieved. Some retailer was achieving the best sales level in that

outlet out of all others. The reasoning that was given by them was

that the customers were attracted by their brand name. However,

the other retailers were not achieving as much sales as they did in

the unorganized market outlets. Different explanations were given

for it. They said that the outlets in the markets were very old and

well known to the customers. Other reasons were mall specific

such as not much foot fall in the mall.

Q5. What do you do to attract customers to your outlet?

A variety of promotional tools were being used by the retailers to

get the customers’ attention towards their outlets in the mall. End of

season sales was the most common form of the promotional

schemes being used. Customer databases were maintained by

most of the retailers and different schemes were provided to them

by different retailers. These included informing the clients regularly

about change of stock and in store promotions, coupon schemes,

etc. Some of the bigger country wide known brands were also

advertised in magazines, newspapers as well as television. Word of

mouth and brand loyalty were also used as other modes of

promotions.

Q6. What do you think can be done to attract customers to a mall?

Attraction of customers is the most important for the success of

malls. According to the responses provided by various retailers,

location, having a good mix of brands within the mall, having an

ambassador for promoting the mall or the various branded outlets

present in it, timely promotions using banners and posters,

economical prices of merchandise, provision of regular weekend

and monthly schemes to keep the customers loyal, organization of

events and programs within the mall, positive behaviour of the staff,

cleanliness, promotion of the mall as a whole instead of the

different retail outlets present in the mall are the various methods of

pulling the customers towards the mall. One of the retailers also

held a fashion show within the mall to promote their outlet.

Q7. What do you think of consumers’ perception of mall shopping?

Majority of the retailers say that a major part of the customer base

still perceives that the merchandise in the mall is highly priced.

According to one of the retailers, “50 percent of the consumers

think that products in the malls are expensive and so they just hang

out in the mall and go. For shopping they go to the markets which

they perceive to be cheaper”. However, some of them also believe

that the mindset of the consumers is changing and they are getting

more convinced about the prices. Also, the prices of branded

products are found to be similar in the mall as well as the

unorganized markets. The customers also tend to receive many

benefits if they come to the mall for shopping which compensates

for the high price factor. These include better infrastructure, comfort

of one stop shopping, good experience and ambience, protection

from the harsh Indian weather conditions, etc.

Q8. What benefits do consumers obtain from coming to a mall

rather than the unorganized market? What effect do these benefits

have on sales?

Several facilities are made available to the consumers when they

visit a mall. Firstly, “they can shop for so many things at one place,

they can eat and hang out and entertainment places like PVR are

available, all this can be done along with shopping”. Other than this,

comfort, security, parking facilities, air conditioned environment,

neat and clean atmosphere and easier commuting are the other

benefits that a customer can get when he/ she comes to a mall.

Unlike the markets, this also saves time and the customers also get

rid of traffic jams. All these factors affect sales because “this is why

people come to mall”. “If people don’t have to shop then also they

can come to just hang around with friends. This sometimes an ects

sales as some people end up purchasing goods.” According to

another retailer, “When people come to a mall, they are mentally

prepared to spend money.”

Q9. If you have to open a new outlet, would you choose to open it

in the upcoming malls?

Few of the respondents have mentioned various criteria for this

decision, the major being location of the mall or the market, foot fall

of the mall, consumer preferences for the mall and government

policy. However, a good number of the retailers would prefer to

open their next outlet in the upcoming malls of the country as

“markets are doing better currently but in the future malls would be

the only thing” and “the coming time will see an end of the

markets”. “It will take time for the malls to develop and grow;

patience is required to get sales in the malls however the future

prospects are bright”.

3.2 Consumers’ PerspectiveTo get the Indian consumers’ viewpoint on the upcoming trend of

shopping in the malls, interviews that were taken from the

consumers have to be analyzed. The respondents’ views have

been generalized as the views of the consumer population in India.

These interviews have been analyzed in the following section

taking one question at a time and quoting consumer responses.

The current preferences of consumers between the shopping malls

and the unorganized markets were asked. On the one hand,

majority of the consumers’ preferences had now shifted from

unorganized markets to shopping malls as development is taking

place in diverse parts of the country including smaller lesser

developed cities and in different areas within a city. Many

respondents have also stated various criteria for choosing between

the malls and the locality markets which have been stated in the

following quotes listed below. “The choice between unorganized

and malls depends upon a number of other factors such as mood,

type of shops etc.” “Price is the factor associated with the choice.

For items priced equally in the malls I would prefer the malls or else

the markets.” “It depends on the weather if it is really hot I would

like to shop in a mall. It also depends on when I am looking to buy

and what is my budget. If I am looking for something special then

maybe I will prefer a mall but if I am looking for something which

is available every where I would buy for the place which is nearest.”

“Depends on the purpose, if I have time to spare and want to

spend an entire day shopping, eating, watching a flick then mall

would be the preferred choice because it would be convenient, if

only shopping for a particular item or grabbing a bite then local

markets will be more convenient”

On the other hand, few of the respondents also preferred the

unorganized markets over malls as they did not think that malls that

have currently been opened in India can offer everything that a

consumer needs and also a majority of the population stayed away

from the malls due to high prices of the products. This mixed

response indicates that the consumers in India are changing and

are overall beginning to prefer the malls instead of the markets.

Probably, it is dependent on the income group the consumers

belong to. A higher income group consumer would indicate a higher

preference for mall and vice versa.

A very mixed response was obtained when the consumers were

questioned about the frequency of their mall visits for the purpose

of shopping. Few of the respondents visited only the mall whenever

they would move out with the intention of shopping. Others visited a

mixture of both, which must be dependent on various factors. From

the responses it can be analyzed that the customers who initially

visited only the unorganized markets with the shopping motive in

mind has also started to consider the malls for specific product

categories or brands. This again indicates a gradual change in the

consumer preference for mall. The following are some responses of

the respondents.

“In a week I go around 3 to 4 times for shopping and all the time in

malls.”

“Once in a fortnight I go out for shopping. And alternatively I go to

mall and markets.”

“At least once a week in the unorganized market and once a month

in malls.”

“I go out for shopping five to six times a month - 80% to local

markets and rest of the time to malls”

“Around 4 times monthly, and twice to malls.”

There is also a difference in the kind of merchandise that a

consumer buys from the mall and that he/ she buys from the

unorganized markets. The Indian consumer has been very used to

picking up products from the local markets which are proximity of

their homes. Although, they are getting used to visiting the Mall for

their shopping needs, they still shop for their daily needs from the

market itself. The respondents have also stated various advantages

and disadvantages that they have associated with the visit to the

malls.

“Branded items are bought from malls and day to day items from

markets.”

“Mall: because they are comfortable, you get everything under one

roof, air-conditioned environment and non-tiring. Unorganized

Markets: they too tiring, messy at times but they are good for

getting little things which you normally don’t get in the mall.”

“In shopping malls everything is organized and a person does not

have to face the terrible heat.”

“Malls have a comfortable environment with a good parking facility

and all brands are available under one roof. And unorganized

markets are visited for fulfilling the daily requirements.”

“Unorganized local markets provide all essential goods in a

confined small area whereas mall only houses a few selected brand

stores.”

“Local Markets are more accessible, better priced & have a large

variety.”

Almost all of the consumers associated leisure activities with malls.

For many consumers, malls have become a destination where they

can hang out and socialize with friends in coffee shops like Cafe

Coffee Day. An entertainment factor has also been associated with

shopping in the malls as many consumers have started to view

shopping as an enjoyable pastime. All their purposes of shopping,

entertainment, socializing with friends and eating out could be

fulfilled by a single visit to the malls. It can be inferred from the

respondents’ views that some of the visitors who come to a mall

can be categorized as serious shoppers who are attracted by the

convenience of buying a wide variety of products under one roof.

However, most of them are still overawed by the whole experience

that they go through when they visit a shopping mall which includes

gazing at luxurious branded products, cooling off in air conditioned

comfort and enjoying an ambience that was never experienced

while shopping in the markets but was “only seen in Hollywood

movies”. Also, it has been seen that shoppers these days are also

combining the shopping and leisure activities. They can do this by

visiting the mall where they can get an environment where they are

able to carry out their leisure activities along with shopping.

“I go to malls four to five times a week for a coffee, shopping is just

as per the needs.”

“Malls are visited once in a month, they are not as accessible as

local markets so going to a mall is more of an outing than fulfilling

the purpose of shopping.”

“Oh yes, because apart from shopping, there are road shows,

movies, trivia contests, lucky draw and all of the same can be

associated to leisure.”

“Yes malls are good for catching up with friends.”

“Malls because of convenience of parking, everything is organized,

combines leisure with shopping and better ambience.”

Considering the location factor, majority of the respondents did not

care about the proximity of the shopping malls from their homes.

The reason for this probably would be that there are only a few

shopping malls currently and all the consumers want to experience

this new way of shopping, therefore, they do not mind even if they

have to travel a long distance to visit the shopping mall

occasionally. However, few of the interviewees associated their

decision of their shopping destination with respect to its proximity

from their home.

“Yes because it is very near to my house, I can go there any time

when I feel like, even alone.”

“As long as I get what I want in terms of the brands and variety, I

don’t mind shopping anywhere. However malls would be more

convenient, if they are closer and have similar variety.”

“If I have decided on the shop and know what exactly to buy, then I

would consider proximity as a major factor that would affect my

decision. Apart from this variety can also affect my decision

making, for example due to availability of space, the shop in the

mall would be bigger and would store more variety of the product,

then in that case the mall shop would be a better option.”

In general consumers’ perception, there exists a pricing difference

between merchandise in the mall and that in the unorganized

markets. The products available in the malls are considered to be

more expensive than those available in the markets. However, from

the responses that were obtained, it was evident that the

consumers’ outlook is completely changing and they are becoming

more spend thrift. In addition, this difference in pricing does not

seem to be affecting their shopping decisions. This is also a change

that can be seen in the consumer population as a whole, as

compared to a few years earlier.

“Well I don’t think that there is any price difference and if it is then

that’s something a consumer won’t mind spending for the leisure a

consumer gets in the mall.”

“Generally, for some goods it is assumed that malls are expensive.

But I buy mostly branded goods from malls, and they have the

same process all over. So doesn’t really make a difference.”

“I think it’s a misconception that malls are more expensive that local

markets. If the same shop is present in both the market types then

pricing would be the same. It so happens that generally there are

better quality shops present in the malls which can shoot up a

price of a product, so its generally perceived that malls are more

expensive, but if you put the same shops in local markets then the

price would be just as expensive.”

After going through the literature, a question that was formulated for

the interviewees enquiring them if going to the shopping mall has

an effect on their image or status in the society. Almost all of the

respondents denied this fact. They did not find any relation between

image and visiting the shopping mall. Any image was not assumed

to be associated with the shopping malls and the image factor was

immaterial if they bought the products from the markets or the

shopping malls.

“Shopping in the mall does not influence the status because status

is related to the shop that you are shopping in, whether it be in the

mall or market.”

“As long as what you shop appeals to you and you have the

confidence to carry it out it does not matter where you have bought

it. However, shopping malls are characterized by branded stores.”

According to the findings of my research, the shopping experience

is a very important factor for the consumers. In their views,

shopping experience includes variety of stores within a mall and the

collection within the stores, the gentry that comes to the mall; time

that is saved by coming to the mall and getting everything under the

same roof is the biggest advantage. They are also considered to be

easier and more sophisticated.

“Shopping experience is very important for me because if I am not

satisfied from a place then I might not go there again.”

“It is a very important criterion because not always do we go with a

motive to shop. Sometimes it is for fun, or just time pass. In those

cases shopping malls are a better option.”

“As an experience malls would be rated higher because of the

sheer variety of shops, and convenience of a multiplex, kids’

corner, eateries, all under one roof.”

When asked about their future shopping preferences, all of the

respondents chose mall shopping over the unorganized market

shopping where one could find all the brands, entertainment as well

as food joints.

“If there is growth in the mall industry then it will eventually take

over all forms of unorganized market.”

“Malls are preferable. But there is no bargaining in malls and you at

times don’t get minute and little things, which you get from markets.

So, both hold their own importance.”

4. Facts & Findings

From the analysis above, it can be inferred that there is a slow and

steady change that is taking place and the preferences of the

Indian consumers are shifting from shopping in the unorganized

markets to shopping in the newly developed mall. The vast Indian

consumers’ population is varied among diverse income segments.

According to secondary data, there exists a significant difference in

the shopping patterns of consumers across these income segments

and there are no uniform trends in their buying behaviour. Items

such as milk, fruits, vegetables and a significant portion of ‘through-

the month’ purchases seem to be done at traditional outlets. The

middle income class prefers shopping for processed food and

personal care in supermarkets and fall back on traditional outlets

for bulk shopping. For them, organized retail outlets seem to be

associated with branded items/special purchases. Organized

retailing does not seem to have made an impact on the lower class,

except for ‘curiosity’ Mall shopping. This fact can also be supported

by the findings of my study as it was conducted on consumers who

belonged to varied income groups.

On the whole this study has found out that a large number of

consumers have started choosing the malls over the unorganized

markets for the purpose of shopping which is also associated with

leisure. The attributes of the malls, which attract the consumers

towards it and are responsible for this change of choice of the

consumers, have been represented in the form of a decision tree.

In this chapter, the analysis has been done by comparing the

findings with what has been said in the literature. A few extra points

that came up in the findings have also been analyzed and this fills

the gap in the studies that have been conducted. The significance

of the various mall attributes has also been discussed below.

4.1 Choice Variables for Shopping Malls4.1.1 LocationLiterature has stated that location is an important aspect of

marketing and a good location can be a source of competitive

advantage for the retail outlet. The factor of location of a shopping

mall does not seem to affecting the consumers’ visits to the mall.

They are still overawed by this new method of shopping, therefore

they even travel long distances to capture the advantage of getting

everything under one roof. However, their daily needs are still

fulfilled by the unorganized markets that are situated close to their

homes.

4.1.2 Shopping experienceThe literature has been backed up by the findings that consumers

derive value from purchasing goods or services because of their

unique qualities. Mall developers have also tried to cope up in the

experience economy by providing the consumers with good store

ambience as well as entertaining and amusing experiences apart

from shopping. They have added movie theatres or keep organizing

live performances for the consumers in which they can get engaged

and enjoy their experience while shopping in the mall. Consumers

these days are becoming very variety seeking and searching for

novel and unique experiences. The shoppers in the market also

tend to look at visits to stores and malls as an enjoyable

experience, an outing for the family, receiving value for money

while shopping and also as an entertainment available there. Thus

the overall shopping experience which includes shopping, leisure

as well as entertainment is a key determinant of mall

attractiveness.

4.1.3 Image Shopping malls have an important role to play in the formation of

the social identity of the shoppers as they are connected to

particular societal groups. Self image is also exceptionally

important for Indians, however, they do not tend to attach self

image with shopping in a shopping mall. This factor has been

falsified in the findings because India has not yet reached that

stage of development that it tends to associate image with a

shopping mall. The unorganized market in India still has a very

significant proportion; therefore, all consumers have to visit the

unorganized markets for the fulfillment of some or the other needs.

It does not affect his/ her personality or status. Thus image has not

been considered a substantial factor in the Indian context, when the

consumer chooses between a shopping mall and the unorganized

market for making purchases.

4.1.4 Price SensitivityNot much has been said about price sensitivity of consumers in the

existing literature. A large part of the population belongs to the

middle income group who cannot afford these luxurious brands.

Therefore, this was one of the additional major aspects that came

up in the research. Although, from secondary data it has been

found that the income level and the purchasing power of the Indian

consumers is increasing, majority of the retailers are still in the

perception that the most of the consumer population is still price

sensitive. From the consumers’ perspective, it has also been seen

that a high price level in the malls does not stop them from

purchasing what they want. On the whole, there has been seen a

slight positive change in the consumer spending habits with respect

to the price. Thus, it can be concluded that the consumers

shopping habits are changing slowly but surely.

5. Conclusion

It can be concluded from the research that the consumer markets in

India have potential for the future development of the retail industry

as the market is growing, government policies are becoming liberal

and the technological developments in the country are favorable for

operations in India. Due to these promising factors, more and more

retail investors have been encouraged to invest into the Indian

market which has further impelled investments in the real estate

industry. However, the success of malls in the long run in the Indian

market would involve attraction of diverse consumer segments

towards the malls which includes diverse income groups, nuclear

families, working women, etc. The provision of wide choice and the

comfort of being able to shop everything under one roof would

attract all these groups of buyers. The infrastructure and supply

chain mechanisms of mall are getting organized and spreading

across the country. This brought about a revolution in shopping in

terms of the consumer buying behaviour. With consumer

demographics becoming more and more favorable to the organized

segment of the retail industry and the increase in the availability of

retail space and a skilled workforce, there has been a

complimenting growth in retail chains, multi brand outlets and

integrated shopping malls. A variety of newer retail formats are

being introduced.

6. Recommendation and Suggestions

The Indian and international brands are using these retail malls as

a medium to spread themselves throughout the Indian cities in

these high profile brand format. They get the required image for

their brand, the environment and the clientele that they want in a

shopping mall which is difficult to achieve if they open an outlet in

the unorganized market. The most important activity for mall owner

is to attract the maximum number of people and to convert them

into buyers. A mix of attributes such as variety of stores in the mall,

the location of the shopping mall, the shopping experience offered

to the consumers in the shopping mall and the correct pricing of the

available merchandise would make a shopping mall successful in

the environment. Location, product mix, right footfall, right pricing,

strong infrastructural support, circulation and differential pricing are

the factors which will be sought and appreciated by the customers

and would lead to the success of the mall. If these attributes are

present in the shopping mall, they would further push the

consumers, who are already in the transitional phase of shifting

their preferences from the unorganized markets, towards shopping

in these malls.

In this section, recommendations for the shopping Pandya Group

and the retailers have been suggested to further this development

that is taking place in the real estate and the retail industries of

India which will also drive the changes in the shopping habits of the

consumers.

6.1 Recommendations for the Pandya Group The Pandya Group have to realize that they have to create an

entire shopping destination for the shoppers which has a mix of

retail outlets, eating joints, entertainment places which offers them

the whole shopping experience. The promoters should take the

help of retail experts to create a balanced tenant mix so that the

shoppers are able to get everything they want under one roof,

which will solve their purpose of coming to the shopping mall. The

Pandya Group should try to create a specific image of the shopping

mall by the process of segmentation and creation of a particular

shopping environment. For example, the high end luxurious brands

and the brands for price sensitive consumers should not be put

under one roof. This will help them capture audience belonging to

different customer segments.

6.2 Recommendations for the RetailersThe organized retailers can be suggested to target the untapped

middle income group population. Another recommendation for the

retailers would be that they should build relationships with their

existing customer segments. The retailers should be well versed

with the consumer preferences and they should also offer them

additional services apart from the products. For developing loyal

customers, the employees of the retail organizations would play an

important role. Therefore, the must hire the right kind of employees

and train them.

7. Appendix

7.1 Questionnaire for interview of the retailers in the mall

1. How long has it been since you have opened the shop in this

mall?

2. Why did you choose to open your outlet in the mall other than the

unorganized market?

3. Do you have another retail outlet other than in this mall?

4. Do you reach the targeted sales level in this outlet or as much as

the other outlets?

5. What do you do to attract customers to your outlet?

6. What do you think can be done to attract customers to a mall?

7. What do you think of consumers’ perception of mall shopping?

8. What benefits do consumers obtain from coming to a mall rather

than the unorganized market? What effect do these benefits have

on sales?

9. If you have to open a new outlet, would you choose to open it in

the upcoming malls?

7.2 Interview Questionnaire for Consumers

1. Given the choice of city mall and unorganized local markets in

India, where do you go for shopping?

2. How frequently do you go for shopping and out of that how many

times do you go to city mall?

3. Why do you shop in city mall/ unorganized market?

4. Do you associate leisure activities with the city mall?

5. Do you go to city mall for shopping, entertainment, eating out or

socializing?

6. What all do you shop in city mall and what all from the market?

7. Given a choice to going to the same shop in the city mall and the

unorganized market, where would you go and what factors would

affect your decision?

8. Does proximity to the city mall affect your shopping decision?

9. Do you find a pricing difference in city mall and unorganized

market and does it affect your shopping habits?

10. How important is the whole shopping experience, and how do

you rate the shopping experience in city mall and in the

unorganized markets?

11. Do you associate image with shopping in the city mall? Does it

influence your personality/ status?

12. Eventually with the constant growth in the number of mall,

where would you prefer to shop?

8. Bibliography

Title Author1. Marketing Management Philip Kotler

2. Business Research Methods Cooper & Schindler

Magazine & Journal:1. Business Line

2. Economic Times

Websites:1. WWW.Retail India.com

2. WWW.Google.com