Chapter 1

THE PROBLEM AND ITS SETTINGS

Introduction

Shopping stores contribute to business more significantly than

traditional markets which were viewed as simple convergence of supply and

demand. Shopping stores attract buyers and sellers, and induce customers

providing enough time to make choices as well as a recreational means of

shopping. However, competition between shopping stores, congestion of

markets and traditional shopping centers has led mall developers and

management to consider alternative methods to build excitement with

customers. Henceforth, this paper studies the buying behavioral attributes of

the shoppers towards attractiveness of shopping stores.

Understanding the consumer buying attitudes and behavior is one of

the key factors for an organization to successfully tap the business

opportunities in the Philippines. This aspect is more crucial especially during

crisis periods when there are number of changes in consumer attitudes and

behaviors. The marketing managers and advertisers need to know and

consider these changes while developing their promotional plans and media-

mixes. In the short term, behavioral dimensions maybe even more important

than lifestyle or brand attitudes.

According to Assael (1987), shopping behavior is the most unique for

behavior which the consumers exhibit. Gifts, clothing, groceries, gifts and

household items are some of the most common type of shopping which

consumers indulge in a highly frequent manner. But according to Dholakia

(1999), occasion and motives are also some crucial points which influence

the consumers shopping behavior.

Furthermore, the main aim of this paper is to investigate the consumer

behavior towards these shopping stores, with special reference to the stores

located in Iligan City. This study will be conducted on the first semester of

the academic year 2014-2015.

Theoretical Framework

In the quest to answer these queries on regards to the research, the

researchers have come to know some theories and principles that have some

bearing on this research.

The study done by Underhill (1999) revealed that, shopping is very

distinctive in nature, its more to just purchasing what one wants but it also

includes the customer’s acceptance of the product, brand or stores as well,

using multiple senses like- seeing, smelling, tasting, hearing and even

tasting (at times).

Reid and Brown(1996), proposes that the customer’s orientation

towards shopping may shed light into the way he/she indulge in shopping

and it may also tell the reason why he/she chooses a particular retail store

(including shopping stores). This would be of great help to marketers to

design the malls in a way so as to increase the shopping experiences of the

customers and coping up with the expectations and needs of the shopping

stores customers; as Underhill (1999), observed that nowadays, upon

entering shopping stores the environment is so vibrant.

Studies of customer behavior in shopping stores usually deal with (i)

identification of customers and (2) their buying behavior patterns. The aim of

such studies is to ascertain who buys where, what, when and how. In

addition, such studies endeavor to learn about customer response to sales

promotion devices (Applebaum, 2007). The "why" of customer behavior is a

separate and very difficult subject; it is not treated here. The knowledge of

customer behavior must precede any consideration of the reasons for the

behavior.

Conceptual Framework

This research focuses on the consumer’s buying behavior towards

shopping stores which is divided into two variables: i) independent variables

which include the age, gender, civil status, monthly salary, religion, and

educational attainment, ii) dependent variables which includes the consumer

buying behavior, the determination of the factors that affect the consumer’s

buying behavior and the identification of the these types.

Figure 1.Research Paradigm of the Study

Independent Variable

Respondents Profile

a. Age

b. Gender

c. Civil Status

d. Religion

e. Educational attainment

f. Occupation

g. Monthly salary

Dependent Variable

Consumer Buying Behavior

1. Factors affecting the consumer buying behavior:

a. Culturalb. Socialc. Personald. Psychological

2. Types of Consumer buying behavior

a. Impulse b. Routinec. Limitedd. Extensive

Statement of the Problem

This study aims to determine and the identify the consumer’s buying

behavior towards the shopping store through answering the following

questions:

1. What is the profile of the respondents?

1.1 Age

1.2 Gender

1.3 Civil Status

1.4 Religion

1.5 Educational Attainment

1.6 Occupation

1.7 Monthly Salary

2. Is there a significant relationship between the dependent variable and

independent variable?

3. What are the factors affecting the consumer’s buying behavior?

a. Cultural

b. Social

c. Personal

d. Psychological

4. What are the types of consumer buying behavior?

a. Impulse

b. Routine

c. Limited

d. Extensive

5. What are the findings, conclusion and recommendation on the study?

Significance of the Study

The researchers of this study believe that the findings will benefit the

following:

Shopping store. The output of this study will help establishments in

improving the dimension of their store and demographic ideas on what they

will do.

Student.The final output of this study can provide students, especially

those taking up business course marketing management to add information

that will help them. The knowledge they will get is to apply in the future.

College of Business Administration.The result of this study will

benefit the college for this will serve additional reference material for the

different program. This can also be used as a sample classroom discussions

on topics related to consumer buying behavior.

Researchers.The conduct of this study will provide the researcher

additional knowledge on the different manners of evaluating consumer

buying behavior.

Consumer. This study can provide final users of products or

services. The consumer's use the final product to improve their looks in

terms in fashion.

Scope and Delimitation of the Study

This study will provide us data and information about the consumer

buying behavior of the students and faculty in St. Michael’s College. It

targets to randomly select 100 students and 25 faculty members of St.

Michael’s College.

The shopping stores are identified in reference to their popularity and

services as reflected in the questionnaire. There were seven (7) selected

shopping stores in Iligan City namely Gaisano mall, Gaisano main, Novo,

Trendline Shopping Center, Unitop, Unicity, Fiesta mall, JBC. The researcher’s

chose these seven (7) shopping stores.

Definition of Terms

Consumer.One that consumes, especially one that acquires goods or

services for direct use or ownership rather than for resale or use in

production and manufacturing.

Consumer Buying Behavior.The process by which individuals search

for, select, purchase, use, and dispose of goods and services, in satisfaction

of their needs and wants. See also consumer decision making.

Shopping.A number or collection of articles purchased.

Store.A place where merchandise is offered for sale; a shop.

Chapter 2

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter sought to discuss the related literature and studies

of the “Consumer Buying Behavior towards Shopping Stores”. This will

provide the readers relevant information relative to this study.

Review of Related Literature

The study of consumers helps firms and organizations enhance their

marketing strategies and gain competitive advantages by understanding

issues related to their buying behavior. This paper provides an overview of

the consumer buying behavior in a Filipino style as a new perspective of

marketing in cultural consumerism. The study of consumer behavior helps

businesses and organizations to improve their current marketing strategies

by applying new and unique selling proposition. Filipino style in terms of

buying decisions presents a mixture of different cultures that surrounds their

rich heritage. A unique culture which will showcase their buying attitudes

towards existing strategies in today’s knowledge-globalized economy.

The idea of adding a major entertainment center to a shopping mall

has been gaining popularity over the past few years. Several of these so

called 'mega-malls' have been constructed in various regions of the country,

with substantial square footage allocated to large-scale entertainment

centers. In terms of shopping center patronage, Ballenger et al. (1977) found

that some consumers placed the greatest value on convenience and

economic attributes including convenience to home, accessibility, and the

presence of services such as banks and restaurants. Others, however

emphasized recreational attributes including atmosphere, fissionability,

variety of stores and merchandise. However, as mentioned earlier, there has

been very little academic research on mega-malls and the effects of

entertainment centers in such malls on consumer behavior. Most of the

research conducted on this relatively recent phenomenon has been done by

either mall developers in specific malls (e.g., Stiller & Smith, 1992) or by

private research agencies which provide a fee-based information service

(e.g., U.L.I. Publications). These studies have primarily focused upon defining

the trading area of the mall, the consumer characteristics, and the extent of

patronage at various stores and entertainment centers.

Shopping stores contribute to business more significantly than

traditional markets which were viewed as simple convergence of supply and

demand. Shopping malls attract buyers and sellers, and induce customers

providing enough time to make choices as well as a recreational means of

shopping. However, competition between malls, congestion of markets and

traditional shopping centers has led mall developers and management to

consider alternative methods to build excitement with customers. This study

examines the impact of growing congestion of shopping mall in urban areas

on shopping conveniences and shopping behavior. Based on the survey of

urban shoppers, the study analyzes the cognitive attributes of the shoppers

towards attractiveness of shopping malls and intensity of shopping. The

results of the study reveal that ambiance of shopping malls, assortment of

stores, sales promotions and comparative economic gains in the mall attract

higher customer traffic to the malls (Caravella, 2010).

Retailers and marketers often seek to learn how and why people shop.

The consumer decision- making process is a complex phenomenon. The

purchase of goods or services includes a number of factors that could affect

each decision. Decision making is more complex and even more important

for consumers today than in the past. Consumers are besieged by

advertising, news articles, and direct mailings that provide an abundance of

information, much of it with mixed messages. In addition, increases in the

number and variety of goods, stores, and shopping malls, and the availability

of multi component products and electronic purchasing capabilities have

broadened the sphere for consumer choice and have complicated decision

making. In the extant consumer behavior literature, most studies assume

that all consumers approach shopping with certain decision-making traits

that combine to form a consumer's decision-making styles. Academicians

and researchers have long been interested in identifying these underlying

decision styles of shoppers. For example, consumers are identified as

economic shoppers, personalizing shoppers, ethical shoppers, apathetic

shoppers, store- loyal shoppers, recreational shoppers, convenience

shoppers, price-oriented shoppers, brand- loyal shoppers, name-conscious

shoppers, problem-solving shoppers, quality shoppers, fashion shoppers,

brand conscious shoppers and impulse shoppers.

In the last ten years, many malls have donned the trappings of

community centers. Mall owners have gone to great lengths to lure

consumers in and keep them in, installing free or low-cost amenities like

jogging routes, restaurants, movie theaters and merry-go-rounds. In the

recession, however, these attractions are now becoming more popular than

the retail stores. Sales in many mall stores in New York, New Jersey and

Connecticut have declined. That said, food courts, play areas and other

thoroughfares are still welcoming visitors. Parents need to entertain their

children, teenagers need a hang out, and adults meet in shopping malls to

socialize indoors. Mall owners in New York, New Jersey and Connecticut, like

their counterparts across the country, have installed wave-riding machines

and offer laser tag, paintball and ice skating. They have also organized

concerts and karaoke contests, temporary-tattoo parties and social clubs for

children, and they have begun turning vast and empty stores into

community theaters and health clinics.

Consider a retailer who operates both brick-and-mortar stores and

direct channels such as direct mail catalogs and an Internet Web site. What

effect does the opening of a new retail store have on direct channel sales in

the retail trading area surrounding the store? Does the existence of more

opportunities for consumer contact with the brand increase the retailer's

direct sales, or does intra-brand, inter-channel competition erode the

retailer's direct sales? Does consumer response to the retailer's brand evolve

over time, perhaps as consumers go through some process of trial-and-error

learning about the relative merits of stores and direct channels, or is the

impact of the new store relatively discrete? Does the answer depend on

whether consumers in the retail trading area have had the opportunity for

previous experience with the brand's stores (Steenburgh, 2009).

Decision making with regard to retail outlet selection is very similar to

consumer decision-making on brands where the consumer goes through a

process starting from identifying needs to post-purchase issues. There are a

few interesting and important dimensions associated with consumer

behaviour and retail outlet selection. Marketers need in-depth knowledge

about the various dimensions which link retailing and consumer behaviour.

There is research required to handle retail decisions in a competitive context.

McDonald's found that a major chunk of its consumers decide to eat a few

minutes before they make the purchase decisions and hence it is building

small outlets in large supermarkets such as Wal-Mart and Home Depot.

There are three fundamental patterns which a consumer can follow

and they could be:

(I) Brand first, retail outlet second

(ii) Retail outlet first, brand second

(iii) Brand and retail outlet simultaneously (Kumar, 2008).

Chapter 3

RESEARCH DESIGN AND METHODOLOGY

This chapter presents the research design and methodology of this

study which includes research instrument, locale of the study, respondents

of the study, data gathering procedure method of analysis.

Research Methodology

For finding out various details of our project we have to find the

various factors which are making the shopping stores so attractive to the

customer. Is it the huge variety attainability, effortless business, service

variety ambience, active marketing and cleanliness? We have to also find out

what is the impact of these stores on the small retail shops. We have to visit

various shopping stores and by observation method we have to find out the

various factors which is making these stores so attractive to the customer,

we also need to interview the customer and ask them about their choice and

preferences like what are the thing they like about the shopping malls that

includes (variety, price shopping environment, service, cleanliness,

attainability) etc. And for finding out the impact of these stores on the small

retailers we need to interview some small retailer and know their opinion and

position.

Local of the Study

The study is conducted at the portals of St. Michael’s College which is

situated to a much commercialized zone. St. Michael’s is surrounded by

major establishments and shopping stores. Considering it is located in the

heart of the city, specifically in the Poblacion of Iligan City. Further, popular

stores and malls are situated nearby the schools which normally students

and faculty members visit.

Respondents of the Study

The respondents of the study are the students and faculty of St.

Michael’s College. They consist of 100 students randomly selected and 25

faculty members that were also randomly chosen by the researchers.

Primary data

Primary data is the specific information collected by the person who is

doing the research. It can be obtained through clinical trials, case studies,

true experiments and randomized controlled studies. This information can be

analyzed by other experts who may decide to test the validity of the data by

repeating the same experiments. Primary data can also be retrospective,

interventional and observational in nature. Retrospective primary data

gathers information about past conditions or behaviors. Interventional

primary data may be gathered to see the effect of a new product or services.

Observational studies gather primary data by means of case studies such as

the work done by naturalists like Jane Good all on chimpanzees in the wild.

Survey Approach

We collected primary data through sample survey from the selected

elements in malls and super markets. So for this purpose we have used the

most popular tool of primary data collection through direct communication

with respondents. The tools we used are questionnaires. After fulfilling the

questionnaires we asked some verbal question also. According to their

response we are able to recollect some more information regarding this

study and survey. Convenience sampling is used for this study Convenience

sampling is used in exploratory research where the researcher is interested

in getting an inexpensive approximation of the truth. As the name implies,

the sample is selected because they are convenient. This non probability

method is often used during preliminary research efforts to get a gross

estimate of the results, without incurring the cost or time required to select a

random sample.

Exploratory method

Exploratory research is a type of research conducted for a problem

that has not been clearly defined. Exploratory research helps determine the

best research design, data collection method and selection of subjects. It

should draw definitive conclusions only with extreme caution. Given its

fundamental nature, exploratory research often concludes that a perceived

problem does not actually exist.

Questionnaire

Under the Questionnaire we have 16 Question and each Question

related to different-different factor (purchasing or buying at the shopping

malls, pattern of the selling, rang and product price, offer, parking facilities,

employee behavior) of shopping malls.

Sample collection

For collecting the sample we had visited many shopping malls and

super market. What we had done their we simply approach the people who

came out from shopping mall.

Random Sample Method

A random sample is one chosen by a method involving an

unpredictable component. Random sampling can also refer to taking a

number of independent observations from the same probability distribution,

without involving any real population. The sample usually is not a

representative of the population from which it was drawn— this random

variation in the results is known as sampling error.

• A simple random sample is selected so that all samples of the same

size have an equal chance of being selected from the population.

• A self-weighting sample, also known as an EPSEM (Equal Probability of

Selection Method) sample, is one in which every individual, or object, in the

population of interest has an equal opportunity of being selected for the

sample. Simple random samples are self-weighting.

• Stratified sampling involves selecting independent samples from a

number of subpopulations, group or strata within the population. Great gains

in efficiency are sometimes possible from judicious stratification.

• Cluster sampling involves selecting the sample units in groups. For

example, a sample of telephone calls may be collected by first taking a

collection of telephone lines and collecting all the calls on the sampled lines.

The analysis of cluster samples must take into account the intra-cluster

correlation which reflects the fact that units in the same cluster are likely to

be more similar than two units picked at random.

(Here I have chosen simple random sample method for collecting the data)

Sample Size

We have collected 100 samples from the population of the students

and 25 faculty members of St. Michael’s College.

Statistical Tools to be used

The statistical procedures employ to analyze the data in this study are

the following:

1. Frequency and Percentage. To describe the respondents’ profile in

terms of the factors gathered statistical such as percentage and

frequency distribution were used. The formula is

P= f/Nx100

Where: P= percentage

F= frequency

N= total number of respondents

100=constant

2. Weighted Mean. It was used to determine the motivational

strategies used by teachers in motivating the pupils. The formula is:

Where: fx= sum of all products of f and x

x= Number of cases

f= weight of each scores

3. Standard Derivation. This was used to compare two or more sets

of data having the same units of measurement and approximately

the same mean. The formula is: