Consumer Behavior in Rural Shopping Location in Relation to the Mall’s Dimension and Attractiveness: A Palawan Perspective

Consumer Behavior in Rural Shopping Location in Relation to the Mall’s Dimension and Attractiveness: A Palawan Perspective

Josephine A. Jaba-an DEVC 263: Communication of Scientific and Technical Information

Abstract:
In Palawan, due to the rise of the first and only mall, many aspects on the behavior of consumers have changed. Among cited are the following: corresponding image of shopping in the mall, the entertainment only the new mall can bring, the large parking area and the socialization happening of going to the shopping malls. This study is undertaken to identify how the rise of the first and only mall influence and affects the lifestyle, the thinking of the consumers, their shopping motivations and experiences brought about by the new establishment. Future mall operators and establishments can bank on the dimensions, amenities, convenience in shopping, security, and presence of various tenants offering different merchandise mix, brand value and pricing in their business expansions especially in the provinces since city shoppers are also rural dwellers. Palawan province is comprised of mixed foreign and local dwellers across the whole region. This paper tried to attain the objective by knowing how the new mall influences the consumers’ behavior pertaining to their motivations and expectations of going to the mall and to their socialization and perspective. Based on the study, the shopping mall image serves as the main attraction of coming and staying in the mall. Date gathered was based on customer’s formal feedback given to the management of Robinsons mall from May 2012 to August 2013.

Introduction:
Palawan is a late starter in comparison to other cities or provinces in relation to the development of shopping malls. The first so-called shopping mall in the province known as Robinsons was established on May 2012. Although there was already an existing commercial center in town, NCCC (New City Commercial Center) which opened in the year 1991 but has not been considered as “mall” but rather of a “hypermarket” type. In commerce, a hypermarket is a superstore combining a supermarket and a department store. The result is an expansive retail facility carrying a wide range of products under one roof, including full groceries lines and general merchandise. In theory, hypermarkets allow customers to satisfy all their routine shopping needs in one trip. NCCC’s tenants are comprised and focused solely on company owned (outrightly managed) businesses such as their department stores, supermarket, food cove, mini-hardware and drug store. No other tenants are present inside the commercial center such as boutiques, movie house, service centers, restaurants and many more. Lacking of variations in retail outlets In NCCC are filled up by the Robinsons mall which housed different services, restaurants, apparel shops, novelty stores, cinemas, gaming and many more aside from the anchor stores such as department store, supermarket, hardware and appliances. (Please refer to appendix 1- reference picture of establishments)

As tourists industry is booming in Palawan with the ever popular Underground River and so is the number of foreign and local tourists visiting the province. According to Palawan City Tourism, number of arrivals in 2012 was a big jump from the 12,000 tourists in 1992 and the 160,000 recorded in 2007. Opportunities and businesses strive to grow as well, hotels, resorts, pension houses, banks and also retail began to penetrate the city.

Not only is the influx of tourists, Palawan also ranked first in terms of population from among the 5 provinces of the region IV-B comprising 34.87 percent of the region’s population. While in Puerto Princesa alone, population grew at a density of 3.68 percent per year while only 2% for the whole province. This indicates that the residents of Palawan are converging in the city for better access to facilities and establishments. On the other hand, looking at the age-sex composition, productive age group (15-64 years old) comprised 55.55 percent of the total population which can be of basis for the purchasing power of the province. Only 2.93 percent were in the older age group (65 years and over).

In the past years, malls are rapidly growing in and outside the country. They continue to mushroom especially in highly urbanized areas. However, as time goes on and marketability became stiff, businesses such as malls are now investing in provinces. This is to bring in to the provinces the same experience they can get when they are in other cosmopolitan locations. Convenience and luxury in shopping are now more accessible, no need to ride airplanes, ride buses for hours and take on boats to access the same facilities and comfort they can benefit.
Because of this, the emergence of new mall became an important destination and attraction for shopping, recreation and socialization in Palawan. The following are the objectives set to answer at the end of the paper.

Objectives:
1. To determine the consumers motivations and experiences of going through shopping mall.
2. To describe the influences of the new shopping mall to the consumers’ socialization and perspective.
3. To determine consumer preferences in shopping in comparison to NCCC versus Robinsons

Review of Literature:
Shopping mall according to Nichols (as cited by Banerjee, 2012) is a place where a variety of retail outlets are situated under one roof, and is usually anchored by one or more stores like departmental stores. It has expanded over the years to include service outlets and entertainment providers. Shopping malls became attractive due to its large size, presence of various tenants with different merchandise mix, entertainment such as movie houses, gaming and many more. According to Wakefield and Baker (as cited by Banerjee, 2012), architectural designs of malls contributed the most to the mall’s excitement, while its interior design help influenced consumers to stay more in the establishment. It is also found that assortment of stores, mall environment and shopping involvement factors have differential influence on excitement and desire to stay in the malls, which in turn are found to influence patronage intentions and shopping desire in the malls (as cited Rajagopal, 2010).

Major attributes according to Rajagopal (2010) of shopping mall’s attractiveness include comfort, entertainment, diversity, mall essence, convenience and luxury from the perspective of shoppers. Variety of different stores found inside the mall is also a decisive aspect for consumer to shop (Baker and Haytko, 2000). Because this diversity, it can create excitement and choices or options in meeting satisfaction. Kaufman (1996) stressed that consumers are getting more and more inclined towards a “one-stop destination” for their shopping purpose. Due this, it allows them to make comparison on goods and services offered.

Consumers can even shop without the problems of any traffic congestion or parking problems, or security concerns (Roulac, 1994). Location and accessibility or proximity largely affects the decisions and choices they make. Even the music, whether happy or sad, can directly influence the purpose of their shopping.

Another important factor related to shopping experience is the opportunity of socialization. It is not only a place for socialization and recreation. Shopping malls are not only a center for shopping but also a community for social and recreational activities. Features like entertainment, relaxation and spending good time with friends draw consumers towards shopping malls (as cited by Banerjee, 2012). Social need and value such as the presence of entertainment facilities like cinemas, gaming houses, ice skating rings, event areas to hold events and even food courts or food strip can also attracts and enhance consumers to visit shopping malls.

According to Loudon and Bitta (1993), most of the consumers prefer to shop at location where sales personnel behavior towards them is cordial and courteous. Quality, variety, operating time, attitude of salesmen, location and stock replenishment are some of the major factors as well in choosing a particular store. While the main reason points to attractive service and pricing (Bodkin and Lord, 1997). Operating time of store especially in suburb is part of the consideration of consumers as well. Though there are some more literatures to be explored in relation to the study, somehow the review serves as the direction for the present work.

Research Methodology
The data that was used and analyzed for this study was based on the feedbacks, comments and suggestions of customers given to the management of Robinson’s mall. This was captured via email, through sending of notes, verbal acknowledgement, written letter, or even text messages. The data was encoded and filtered based on the severity of answers. The data was mainly born out of customers’ initiative to air their comments, suggestions and or feedbacks. No survey question was utilized intended for the study. The consumers either dropped their comments through the use of suggestion box, direct interview or personal observations and notable complains. The author was able to capture the facts because she was part of Robinson’s management with the consent of using the data solely for the purpose of the study. The data was limited to the consumers’ willingness to give their feedbacks only. Due to this limitation, profiling of subjects were constrained and restricted since consumers only wrote what they desire to pronounce. Mostly consumers do not write their whereabouts or their basic information. Also, this paper was not able to contain those people which may not be purchasing nor going in to the mall with important perceptions as well. The limitations can be of further study and of future interest.

Results and Discussions
Table 1 below shows the summary of the feedbacks gathered from May 2012 to August 2013. Out of the 223 feedback, 55% of which admitted going to shopping mall to purchase branded merchandise. Since most of the brands popular in television and other media are not present in Palawan, though there are few in NCCC, however, people are looking for something new, fresh, fashionable and trendy pieces. Consumers were very particular of having known merchandise due to unavailability for the past 22 years. They reiterated the variety, the well-known, high-quality brands and the prices in consideration to their shopping. NCCC Department Store has a tenant mix of 90% outright and 10% concessionaires. Their concessionaires are few since they comprised only 10% of the business line. Most merchandise on display is prominently outright “buys” which are considered “not branded”. In reverse to the tenant mix of NCCC, Robinsons Department Store has 90% concessionaires and 10% outright, which indicates total opposite of the former. This has the same manner in the mall itself where high-end brands are major attraction. Some consumers paused in awe seeing luxurious display with high ceiling prices they have never encountered before especially those not exposed to the trend nor have set their foot in the cities like Manila before.

Remarks
Frequency
Valid Percent
Shopping for Branded Merchandise
123
55%
Enjoying food
15
7%
Entertainment (movie)
52
23%
Convenience (clean, comfortable)
27
12%
Educated/Good Looking Sales Associate
6
3% 223
100%
Table 1. Consumer Feedbacks
Second in priority, is the presence of entertainment of which people are longing something to spend their time with. Access to latest movies together with friends and family especially on a weekend, as the only cinema they have in place, is very in demand. Top grossing movies can now be viewed in the province which they don’t need to fly airplane to experience the must-talked-about performance. Included in the entertainment is the game hub, gadget stores, event areas, and other activities only performed inside the mall. In this regard, NCCC on the other hand, is on their way of renovating the store in order to catch up to this increasing need of the consumers. They are as well prompted to go on to the trend of putting up on full packed amenities the store can offer to be able to sustain consumers.

Another interesting thing is the presence of event areas holding different activities of the city. This amenity became an avenue for them to meet up their friends, classmates and other peer groups. They can even showcase their talents especially on local events where many people can be their audience. Due this, socialization was intensified and heightened. Aside from this, is the presence of Tom’s World, a game hub, where they use tokens to play games. Everyday consumers especially teens are converging in the area that add to the fun and excitement in their shopping. In addition, is the existence of event area large enough to hold activities of the province, becoming more exposed and popular especially if there is a celebrity or guest artists.

Convenience came in third due to wider aisles, big comfort rooms with tissue papers, cozy ambience with the presence of aircon all over the vicinity. Bright lighting, music, fragrance, large parking area, security guards making them feel more secured and safe, billing acceptance and payments and consistent attractive display of merchandise are some of the come-ons for customers to stay in the mall. Because they were used to go to the same shopping destination, consumers became more curious of the new structure. Some people became even wary of going inside due to air condition making the whole place colder. Despite long time existence of NCCC, this kind of composition are lacking in the establishment. Due this, they were propelled to create more space, enhance the temperature and even the over all look of the store. Consumers became more aware of the differences and comparison became the talk of the town as well.

On the other hand, food and sales associates may not be that high impact due to the existence of cheap but delicious restaurants where locals and tourist eat and dine. Prominence of restaurants offering almost the same food taste, competitive prices and cozy ambience are still the choices of the locals as well as the tourists visiting the province.

Another thing is the focus on what we call customer service wherein educated and good looking associates entertain the needs of the customers. NCCC is known for having personalized customer service and very friendly assistance versus to the newly built mall because of their longtime existence in the province. Adapting to the culture and attitudes of the people became the benchmark of NCCC. Despite the attractive dimension of the new mall, NCCC still is the preference of some shoppers because of the “used to” behavior of the people. Most of them knew the sales associates very well so that they can easily relate to them in addressing their need. On the other side, the new mall comprised of new employees and management hardly adapting to the required business procedure. Most of them are not familiar how the mall works and its customer service orientation due to non-exposure to same kind of business format before.

Conclusions

Based on the study, it showed that consumers most of them like to go to Robinsons than NCCC because of the image the mall it brings to them. Shoppers tend to flaunt and dress more in trendy styles and designs unlike before.

It has variety of shops and branded tenant mix which they did not see in Palawan before but only in Manila, few in NCCC. They like to explore the new place, with many choices of apparel, shoes and other quality products. Stocks on display are new, trendy and fashionable unlike in many tiangges and commercial centers with old stocks and bargains. It has credible goods and branded merchandise only became present upon establishment of the mall. Purchased merchandise packed in nice shopping paper bags with branded logo caught attention due to the corresponding price it equates versus items in the existing commercial center. Consumers have now the comparison of shopping experience unlike before.

While major attractiveness of the new mall is the provision of movie houses or cinema. This entertainment facility for so many years has not been present in the city until 2012 only. Many people are longing and craving for watching movies whether regular or 3D. They look forward of going somewhere and spending their time watching movies. Because of volume of shoppers, the mall needed to change its operating hours from 10am-8pm to 10am-9pm and accommodate shopping needs versus commercial center which operated from 7am to 7pm only.

Another dimension is the larger aisles which make it more convenient in shopping and a space to breathe in versus the existing commercial center. The ambiance of the mall, the temperature, architecture, security and some perks associated in going and shopping. Though intensive campaign and aggressiveness offering perks and freebies are also visible in commercial centers; but the most interesting is the occurrence of escalators and elevators which many of the consumers are puzzled specially those coming from farther municipalities and barangays.

Apart from shopping and eating, the mall has been transformed into a place for socializing, relaxing, entertainment and status symbol. Politicians and other high profiled personalities in the city are seen shopping and eating only in the mall unlike in NCCC, making the people associate themselves and feel as important like them too. Presence of restaurants, coffee shops with wi-fi and service provider shops which can be found only in the mall became a favorite too. Birthdays and other special event of special people are prevalent as well.

Due to the increasing awareness of the consumers, the mall management to be able to sustain the attractiveness should put up more variety of tenants, ATM’s, service provider shops, more food options and work on excellent customer service.

Based on the study, as there built a new structure, change became inevitable. Consumers’ behaviors tend to be influenced based on the appearance and dimension of the mall. The structure became the propeller for the consumer to embrace the need and align to the current trend whether in fashion, venue of socialization, and even the impression for attractiveness. Lifestyles, motivations and preference in shopping are also persuaded based the image of the mall. Experiences as well are taken to the next level exposing them in new fashion and craze.

Limitations of the Study
Like many other empirical studies, this research have also some limitations in reference to the data gathered which is limited to the customers feedbacks and preference given. The sample/data drawn from the study may not be enough to generalize the result of the study. However, the outcome may indicate similar pattern of shopping behavior of rural-urban consumers having mall in their provinces for the first time.

Future Research Prospects
The core of the study is to examine the factors influencing the shopping behavior of the residents of Palawan. This study reviews the dimensions and attractiveness of malls especially in the provincial set-up. Knowing the people’s shopping preference, need; market and even purchasing power will be useful in business in the field of shopping malls to penetrate the provinces as well. Researches exploring the same area may carry out comparative studies especially in the pre-establishment and post-establishment of shopping malls.

References: http://en.wikipedia.org/wiki/Hypermarket http://www.visitpuertoprincesa.com/index.php?option=com_content&task=view&id=420&Itemid=203
Backs, N. (1997). Reading the Shopping Mall City. Journal of Popular Culture, 31(3), 1-17.

Baker, J., & Haytko, D. (2000). The Mall as Entertainment: Exploring Teen Girls’ Total Shopping Experiences. Journal of Shopping Center Research, 7(1), 29-28

Banerjee, N. (2012). A Study on the Attractiveness Dimensions of Shopping Malls – An Indian Perspective. International Journal of Business and Social Science, 3 (2) 102-106.

Bansal, A.K. & Bansal.A. (2012). A Critical Study on Consumer Behavior Regarding Purchase of Products from Shopping Malls. International Journal of Marketing and Technology, 2(7), 299-312

Bodkin, C. D. & Lord, J. D. (1997). Attraction of Power Shopping Centres. International Review of Retail. Distribution & Consumer Research, 7(2), 93-108. http://dx.doi.org/10.1080/095939697343058 Kaufman, C.F. (1996). A new look at one-stop shopping: a TIMES model approach to matching store hours and shopper schedules. Journal of Consumer Marketing, 13 (1), 4-52.

Loudon, D.L. & Bitta, A.J. (1993). Consumer Behavior. McGraw-Hill (New York).

Melody, L.L & Wesley S.C. (2007). Tourist Shoppers’ Satisfaction with Regional Shopping Mall Experiences. International Journal of Culture, Tourism and Hospitality Researh, 1(1), 82-96.

Rajagopal (2012). Coexistence and Conflicts Between Shopping Malls and Street Markets in Growing Cities: Analysis of Shopper’s Behavior. Journal of Retail & Leisure Property, 9(4), 277-301.

Roulac, S.E. (1994). Retail real estate in the 21st century: information technology+ time consciousness + unintelligent stores = intelligent shopping? Journal of Real Estate Research, 9 (1), 125-150.

Salcedo, R. (2003). When the Global Meets the Local at the Mall. The American Behavioral Scientist, 46(8), 1084-1103.

Shim. S. & Eastlick. M.A. (1998). The Hierarchical Influence of Personal Values on Mall Shopping Attitude and Behavior. Journal of Retailing, 74 (1), 139
Appendix 1: Robinsons Mall and NCCC reference picture

Robinsons Mall

NCCC

References: Backs, N. (1997). Reading the Shopping Mall City. Journal of Popular Culture, 31(3), 1-17. Baker, J., & Haytko, D. (2000). The Mall as Entertainment: Exploring Teen Girls’ Total Shopping Experiences. Journal of Shopping Center Research, 7(1), 29-28 Banerjee, N Bansal, A.K. & Bansal.A. (2012). A Critical Study on Consumer Behavior Regarding Purchase of Products from Shopping Malls. International Journal of Marketing and Technology, 2(7), 299-312 Bodkin, C Loudon, D.L. & Bitta, A.J. (1993). Consumer Behavior. McGraw-Hill (New York). Melody, L.L & Wesley S.C Rajagopal (2012). Coexistence and Conflicts Between Shopping Malls and Street Markets in Growing Cities: Analysis of Shopper’s Behavior. Journal of Retail & Leisure Property, 9(4), 277-301. Roulac, S.E. (1994). Retail real estate in the 21st century: information technology+ time consciousness + unintelligent stores = intelligent shopping? Journal of Real Estate Research, 9 (1), 125-150. Salcedo, R. (2003). When the Global Meets the Local at the Mall. The American Behavioral Scientist, 46(8), 1084-1103. Shim. S. & Eastlick. M.A. (1998). The Hierarchical Influence of Personal Values on Mall Shopping Attitude and Behavior. Journal of Retailing, 74 (1), 139 Appendix 1: Robinsons Mall and NCCC reference picture