Mixed use shopping mall as an attractiveness on customer behaviors in Bangkok, Thailand

Abstract

The purpose of the study is to examine and identify the variables that are important to customers while visiting shopping malls. It provides updated information to shopping mall managers and property developers about customers' shopping preferences in Northern Bangkok. The primary data was collected in a two-part questionnaire. Part I included details about the demographic characteristics of respondents, and Part II contained a set of 29 questions to determine the level of agreement, in a five-point Likert scale, on reasons that motivate customers to choose a particular shopping mall. Of the 420 questionnaires distributed in the area, 395 were completed and used for data analysis. Six critical conclusions were generated from the factor analysis. Mean rankings began with convenience, promotion, privileges, one-stop shopping, professionalism, and the combination of free services, and facility safety. One-stop shopping, convenience and free services/safe facilities were the top three critical factors that significantly influenced consumers' visiting frequency and time spent per visit at shopping malls. Customers more often visited and spent more time at malls that provided multiple services (mixed-use malls). These tendencies increased for the malls that offered additional free services, such as a free shuttle bus. A mall manager or property developer's principal tasks are to fulfill customers' overall needs, particularly their physiological needs (including hedonic ones), and to differentiate their products and services from those of competitors, to induce customers to make actual purchases. Corresponding author: Piyarat Chantarayukol Email addresses for the corresponding author: piyarat@rsu.ac.th First submission received: 20th March 2019 Revised submission received: 8th July 2019 Accepted: 22nd July 2019 Introduction A modern shopping mall is a complex of different merchandisers. It normally contains interconnecting walkways that allow customers to move easily from one store to another. In the 19th century, a rapid, global growth of shopping malls occurred. In the late 20th century, shopping malls began to incorporate, featuring entertainment zones, movie theaters, and restaurants. More recently, consumer technology and e-commerce have allowed malls to provide experiences beyond shopping. Thus, malls are no longer primarily about shopping; they also serve such purposes as social interaction, excursions, and works and even official meetings. This trend has occurred globally but is especially noticeable in the USA, where a number of pioneering shopping mall concepts arose. Updated shopping malls now provide ancillary entertainment options such as ski slopes, go-karts, balloon rides, bowling, underwater aquariums, theme parks, and dinosaur museums, among others. The Thai Shopping Mall Association (TSCA) combined 13 Thai retail companies into Shopping Mall 4.0, an initiative that connects consumers digitally, with the goal of becoming the largest mall operator in Asia. One strategy is to create a positive consumer experience. New layout designs and spaces are considered to serve and support every generation of mall visitor. Various zonings are tailored to the needs of specific consumer segments. Through technology, customers now obtain customized retail offerings. New mall designs also address environmental issues by incorporating "green" building concepts, electric cars, and public transportation. In 2018, Thai retail industry growth was approximately 3.3% to 3.5%, as compared with 3.2% in 2017 and 2.97% in 2016. Thirty percent of retail businesses are in Journal of Business and Retail Management Research (JBRMR), Vol. 14 Issue 1 October 2019 www.jbrmr.com A Journal of the Centre for Business & Economic Research (CBER) 33 Bangkok, where they boosted growth. From 2019 onwards, various types of retail businesses are expected to develop and open in Bangkok, for example: BT5bn shopping center, near Suvarnabhumi International Airport, Central Village with 160,000 square metres; Gateway Bangsue, with an 11-story community mall; EmSphere; One Bangkok; and Bangkok Mall, the largest mall in Southeast Asia. Property developers and mall managers seek to improve the effectiveness of marketing programs to meet consumer demands in specific areas. Updated and specific consumer behavior information will support their strategies and decision-making. Literature Review Although many marketing studies have investigated consumer behavior in stores and shopping malls, findings have varied due to differences in cultures and social lifestyles. Wijnen, Kemperman, and Janssen (2012) noted that shopping mall attributes should be adapted to national consumer lifestyles and cultures. Decades ago, customers segregated product purchases by location. For instance, they did not normally purchase meat, fresh fruit, or vegetables where they bought dry groceries, even though all these goods may have been available in one store (Applebaum, 1951). Nowadays, however, customers look to purchase goods in one place, where a variety of venues can save time and energy. The malls cater to customers’ time constraints by offering one-stop shopping (El-Adly, 2007; Jacobs et al., 2010). Furthermore, having a supermarket in a mall is critical to satisfying customer needs. Sharma (2012) opined that Indian customers are concerned about the location of shopping malls. The distance between a shopping mall and workplace or home is an important factor. Sehgal and Khanna (2017) indicated that the existence of convenient operating hours represents another critical factor that influenced customer purchase decisions in retail stores in Ludhiana. Essential considerations for mall management include offering late hours at supermarkets, as well as the ability to compare different prices, models, or brands in one place (El-Adly and Eid, 2015). Wakefield and Baker (1998) wrote that the atmosphere and the variety of tenants motivated customers to stay longer in shopping malls. Khaola and Ramokepa (2015), who studied customer behavior at shopping malls in Maseru, Lesotho, found that an excellent variety of stores was directly related to customers’ positive attitudes. They also noted that malls should support the needs of all family members and friends by incorporating extra amenities, such as video games, movies, or window shopping. LeHew and Wesley (2007) found that customers at two new malls in Bloomington, USA, were more satisfied with the overall convenience of shopping malls offering a variety of retail stores, food options, and entertainment facilities. Parakhonyak and Titova (2018) give supportive evidence that customers might prefer visiting malls located in a peripheral area that offers a wide range of prices and a variety of products. Overall, customers enjoy the fashionable merchandise available in shopping malls, which offer unique and high-quality products, including brand-name items (Litirell et al., 1994; Costello and Fairhurst, 2002). The more free time customers have, the more time they will spend in a shopping mall and the more they will exhibit impulsive buying behaviors. Various payment methods are considered to serve them (Nova and Aditya, 2018). Facilities and special services at malls also attract customers. Most customers drive to shopping malls, because many malls cannot be accessed by public transportation. Shopping malls generally provide ample parking space (Sharma, 2012). Malls also generally offer comfortable seats in the rest areas for shoppers and family members (El-Adly, 2007). Vipul and Mahendra (2009) noted that facilities or customer services are important to consumers, while pricing and sales promotions are critical reasons why Indian shoppers do business at shopping malls. Danziger (2005) pointed out that even luxury customers, who care less about saving money, like to purchase items on sale, because it is a sensible decision that makes them feel good. The relationship between shopping mall factors and customer behavior is still debatable and is discussed in different areas. The shopping malls located in Bangkok and its periphery is rapidly growing. This study aims to determine the important variables by analyzing the patterns of shopping mall visits of customers in Northern Bangkok, Thailand. The research hypotheses are: H1: Critical factors are positively associated with the frequency of visits to shopping malls. H2: Critical factors are positively associated with the amount of time that customers spend visiting shopping malls. Journal of Business and Retail Management Research (JBRMR), Vol. 14 Issue 1 October 2019 www.jbrmr.com A Journal of the Centre for Business & Economic Research (CBER) 34 Research Methodology This study uses both primary and secondary data. The secondary data was collected from various sources, such as journals, articles, and websites. In addition, 20 customers and academic professors were interviewed, and their answers were used as scaled items in the questionnaires, which validated their content. The primary data was collected in a two-part questionnaire. Part I included details about the demographic characteristics of respondents, and Part II contained a set of 29 questions to determine the level of agreement, in a five-point Likert scale, on variables used when choosing a particular shopping mall. The reliability of measurement and the internal consistency of reliability were assessed with Cronbach's Alpha. In this research, the Cronbach's Alpha for research variables was an acceptable 0.974 (higher than 0.70). Because the total population was unknown, non-probability sampling and random quota sampling were utilized in the statistical analysis. The samples of this study were divided into two groups, weekday shoppers and weekend shoppers, which ensured the degree of representativeness of all the strata in the population. Four hundred twenty questionnaires were distributed in areas of Northern Bangkok. Half of the