Drivers of agglomeration effects in retailing: The shopping mall tenant's perspective

Abstract

Retail and service enterprises seek benefits and synergies from locating their stores within retail agglomerations, such as shopping streets and malls. The aim of this paper is to identify the main drivers of such synergetic or ‘agglomeration effects’ for tenants. A literature review reveals four sets of drivers that are related to the location, the tenant mix, the marketing, and the management of an agglomeration. Based on a survey of 217 managers representing stores that are located in five regional and four supra-regional shopping malls, we demonstrate that location-related drivers including geographical location, accessibility, and parking conditions have a the highest impact on agglomeration effects in terms of the economic success of tenants. The results were consistent amongst different types of tenants differentiated by store size, customer footfall, industry affiliation, and perceived role within the respective mall (as footfall taker or generator within the network).     

The death and life of shopping malls: an empirical investigation on the dead malls in Greater Lisbon

At a moment when new retail formats are emerging and consumers are changing their preferences, it is vital to reflect on the existing shopping malls, which are being challenged in European cities. With their vitality endangered, many become dead malls, a phenomenon that has increased over recent years. With this in mind, the objective of this study is to explain the factors behind the proliferation of dead malls through an empirical analysis of the evolution of shopping malls in Greater Lisbon, Portugal. We combine three sets of retail change theories (cyclic, conflict and environmental) with current perspectives on the resilience of urban retail. We expect that our study will contribute toward current debates on the resilience of shopping malls. The methodology of our study comprises two stages. First, we updated the Greater Lisbon shopping mall database and analysed the growth and decline of each shopping mall type over the last 44 years. In a second phase, we conducted a fieldwork survey on 150 shopping malls, which allowed us to identify and profile the dead malls of Greater Lisbon. Our results show that dead malls match declining shopping mall types, and we discuss four factors affecting the resilience of shopping malls.     

Shopping streets versus shopping malls – determinants of agglomeration format attractiveness from the consumers' point of view

The decline of shopping streets and the rise of shopping malls have been major trends in European retailing for decades. So far, research has failed to investigate this shift of agglomeration format (AF) patronage from a marketing perspective, including the consumers' point of view. This paper presents a theoretical discussion of the generic similarities and conceptual differences between shopping streets and shopping malls. Subsequently, the AF-specific characteristics perceived by consumers are compared and discussed with respect to their impact on agglomeration attractiveness. This leads to the development of a conceptual framework which is empirically tested using a web-based survey of almost 1000 consumers representing a typical urban central European retail market. The relative importance of nine distinctive AF characteristics on attractiveness was analysed using structural equation modelling. The findings proved to be quite similar for both shopping streets and shopping malls; the retail tenant mix and atmosphere had the highest relative importance.     

The geography of lifestyle center growth: The emergence of a retail cluster format in the United States

Just as geographers have given much attention to the evolution of shopping malls and power center retail complexes, it is equally important for research in business geography to continue to provide developmental evidence as new and distinctive retail cluster formats emerge and grow. The lifestyle center is a unique type of retail complex that has experienced much expansion across the United States yet has not received much research attention from location researchers. This study provides answers to basic questions, including the geography of lifestyle center development, the relationship of lifestyle center development to traditional mall activity, and the characteristics of lifestyle center market areas in comparison with the trade areas of their mall counterparts. The results show that lifestyle centers are developing in distinctive locations and markets within American cities that are not well-served by traditional malls. The study results also establish that lifestyle centers have a significant bias toward location in large cities, representing a clear contrast with traditional malls and their locational orientation toward smaller centers. The study summarizes these findings and argues that the emergence of the lifestyle center format has important implications for retailers, commercial property developers, and local economic development officials.     

Heterogeneous consumers,search and retail formats

This paper proposes a model featuring the heterogeneity of consumer preferences and analyzes the multiple equilibrium of retail formats by building a map of the relationships between consumer heterogeneity and retail formats. The key questions analyzed in this paper are how the retailer adjusts its combination of marketing elements through repositioning and how innovation in retail formats is implemented to match consumers’ heterogeneous preferences in a market with consumer search costs. Unlike recent research, our model, by taking different consumer preference structures into account, introduces consumer psychological costs into the Ehrlich-Fisher model and deduces the existence of different retail formats and their multiple equilibriums. We find that consumer heterogeneity, retailers’ diversified transfer costs and economies of scale are endogenous drivers of prosperous retail formats. Accordingly, diversified retail formats with complementary functions and differentiated services can be described as the horizontal extensions and interface changes of the retailing industry.     

基于多维度视角的零售业态变迁分析——以中国和日本为例

文章认为以前的零售业态的变化规律理论都不能很好地解释零售业态在中国的发展变化规律。提出多维度视角解释零售业态发展变化的规律,认为消费者满足是根本;社会发展环境是背景;技术革新是基础;精细化管理是关键。并以此解释日本和中国各阶段的零售业态发展变化规律及中日之间的差别。据此并借鉴日本的发展经验,对我国今后的零售业态发展趋势做出预测。     

Willingness to act and environmentally conscious consumer behaviour: can prosocial status perceptions help overcome the gap?

Green marketing has not shown expected results in recent years in terms of real changes in behaviours, products and market structures as had been anticipated. Consumer behaviour plays an important role in making these changes happen, and drivers of environmentally conscious consumer behaviour still need to be examined. Concepts of ‘concern’, ‘information about environmental impact’ and ‘willingness to act’ are seen as the key predictors of environmentally conscious consumer behaviours. Although green marketing has been able to address genuinely concerned consumers, additional insights are needed regarding how to appeal to more mainstream consumers. Thus, this paper proposes an extended model of environmentally conscious consumer behaviour in which the gap between willingness to act and actual environmentally friendly consumption is addressed by the moderating role of ‘prosocial status’ perceptions. In the model, ‘concern’ is positively related to ‘willingness’ and both ‘willingness’ and ‘information’ are positively related to ‘behaviour’, while ‘prosocial status’ perceptions moderate ‘behaviour’. The model was verified using a quota sample of 319 general population respondents from a Central European country. According to data, ‘prosocial status’ perceptions increase the positive association between ‘willingness’ and ‘behaviour’ and could be incorporated into green products and advertising to signal personality traits like kindness and intelligence. One possible implication for marketers is that women have a higher average representation in groups of people with high prosocial status perceptions.     

零售营销策略组合及零售业态多样化

现代零售业的一个种重要特征就是业态的多样化,各种新业态层出不穷.而不同业态的主要区别,在于其营销策略的组合方式.本文在总结前人关于零售业态演变理论的基础上,提出消费者偏好理论,指出消费者对零售服务需求的差异性,决定了零售经营形态的多样性,而消费者需求偏好的改变,导致了零售经营形式的改变,推动了零售业态的演化和发展.     

Satisfaction of mall shoppers: A study on perceived utilitarian and hedonic shopping values

Declining consumer footfall and diminishing sales in Indian metro cities have guided the expansion of malls in cities of central India. Shoppers of these cities are unfamiliar with the mall concept and have limited exposure of shopping values in the past. The present research focused on the influence of utilitarian and hedonic shopping values on satisfaction of mall shoppers of central India Bhopal by establishing a proposed research framework based on 288 responses from two shopping malls, using utilitarian and hedonic dimensions of shopping values. Confirmatory factor analysis and structural equation modeling (SEM) are used to analyze and validate the proposed research framework. The result supports the relationship between shopping values and customer satisfaction, where both the shopping values show positive significant influences on customer satisfaction. Therefore this research paper would help mall owners to focus on these shopping values effectively and efficiently while planning malls in central India for gaining competitive advantage, attracting new customer and hold their profitable customers by enhancing customer satisfaction with shopping values in the current retail scenario.     

Impact of movie-watching on cross-selling revenue in shopping malls: Implications for post-pandemic recovery

The COVID-19 pandemic has prompted consumers to postpone in-store purchases and shift to online shopping, decreasing overall retail spending. As the global lockdown eases and shoppers return to offline stores and malls, shopping malls seek to facilitate in-store consumer experiences at entertainment facilities. Given the importance of entertainment facilities to the cross-selling revenue of shopping malls, we investigate the relationship between consumers' movie-watching and subsequent (hedonistic) grocery purchases. Our analysis of a panel database that includes transaction details at the consumer level shows that movie-watching is negatively correlated with consumer spending. Furthermore, consumers’ psychological states induced by content and contextual factors moderate the negative effect of movie-watching; after watching a fantasy (as compared to thriller) genre or watching a movie in a less crowded theater, consumers are more likely to make hedonic purchases at the supermarket. These findings provide theoretical and managerial implications for retail operators exploring cross-selling opportunities post-pandemic.     

Exploring the relationship between consumer knowledge and purchase behaviour of value‐based labels

Despite an increasing market presence, little research has been conducted regarding consumer‐purchase behaviour of food products bearing ‘value‐based’ labels. Moreover, as the effectiveness of these labelling formats is dependent upon consumer's knowledge of their existence, this paper aims to explore the relationship between knowledge, openness to experience (i.e. validated personality trait related to intellectual capability) and purchase behaviour upon consumer behaviour in this context. Using structural equation modelling techniques, causal influences on purchases of fresh meat bearing ‘value‐based’ labels are identified and three multi‐attribute attitude models are proposed. The paper concludes that these labels are of value to consumers and that product knowledge plays a significant role in aiding purchase decisions. Consequently, marketing communication implications arising from the proposed multi‐attribute attitude models are discussed.     

Do men and women really shop differently? An exploration of gender differences in mall shopping in India

‘Men Buy and Women Shop’ proclaims a new Wharton Research on shopping habits of the American consumer (2007). There is found to be considerable difference in the way men and women shop in the West. Is this true across cultures? Indian retailing is generating considerable interest within the country and abroad. India has been rated as the fifth most attractive emerging retail market and was ranked first in a Global Retail Development Index of 30 developing countries drawn up by A T Kearney. Organized retail, best represented by the mushrooming malls, has come to play a defining role in building and supporting this veritable base of retail consumers. Therefore, it is of utmost interest to retailers and academia alike to understand the consumer dynamics behind the newly evolving consumption culture. This study explores mall‐shopping habits in India and attempts to identify and contrast possible differences between genders using a sample of 2721 mall consumers across seven cities. While the findings suggest that in India there are significant differences in shopping behaviour that can be ascribed to gender, there are fundamental questions about stereotyping of shopping as a feminine activity. To do this, discriminant analysis has been used to study whether shopping orientation and mall‐shopping attitudes can discriminate between male and female shoppers.     

Customer loyalty to food retailers in Northern Ireland: ‘devoted loyals’ or ‘promiscuous switchers’?

Store loyalty is a major challenge for food retailers, and the food retail market in Northern Ireland has been subject to considerable change in the past decade. Although shoppers will often patronize many stores, they typically have a primary affiliation to a ‘main’ food store that captures the majority of their food purchases. This study uses a unique approach to segmenting customers into groups based on loyalty in terms of both the type of data used to generate a loyalty score and the data collection techniques used. Innovative projective techniques have been used alongside traditional questioning techniques to reveal ‘behavioural’ and ‘emotional’ loyalty indicators, and in doing so create a holistic measure of customer loyalty to a main food store, allowing customers to be segmented into groups based on loyalty. A paper‐based questionnaire was administered to 152 food shoppers from throughout Northern Ireland. Responses to traditional questioning formats and projective techniques (cartoon friends and mini case studies) were analysed and used to generate a loyalty score for each respondent. The first group of customers nearly always visit the same store, are willing to recommend the store to others and are less likely to switch to a competitor, even when offered an incentive to do so. They also rate the ‘hard’ attributes of this store highly. As a result of these characteristics, customers in this segment were termed ‘devoted loyals’. The second group of customers may occasionally use a different supermarket for food shopping, some would consider switching to a competitor if offered an incentive, and they rate ‘hard’ store attributes at a slightly lower level than the ‘devoted loyals’. Based on their group profile, these customers were assigned the title of ‘susceptibles’. The third group of customers are less willing to actively encourage friends and family to shop at a specific store. Many in this group did not consider their current store as their number one choice in the next few years. An incentive to switch to a competitor store is more likely to trigger a transfer of loyalty by this group. These customers were termed ‘promiscuous switchers’.     

The modernization of fresh food retailing in China: The role of consumers

Since 2002, the Chinese government has initiated the “Wet Market Transforming into Food Supermarket (WMTFS)” program that aims to transform the traditional fresh food retailing system into a more efficient system that adopts a supermarket operation mode. However, after years of effort, the process of implementing the WMTFS program has been painfully slow. In addition to several supply side factors, this paper focuses on the consumer demand side using survey data in three large Chinese cities to identify the factors affecting consumers' decisions to buy fresh food from traditional vs modern retail formats. It further explores regional differences in consumers' shopping behavior. We find that freshness, accessibility, and whether buyers can bargain are influencing factors and the effects of socioeconomic factors such as income and storage facility are very limited. In addition, we find regional difference exists in consumers' retail format preferences. We suggested that managers of fresh food supermarket should enhance product freshness and safety in the future. Meanwhile, since traditional retail formats are still preferred by many consumers, the policy-makers should give a further thinking on the specific way of transformation.     

Large format stores and the introduction of new regulatory controls in South Korea

Since 1996, when Korea's retail industry was liberalized, new store formats such as large discount stores, have grown, it was widely believed, at the expense of incumbent rivals such as traditional markets and small operators. This paper seeks to empirically test this proposition: an important underpinning to new regulatory control policies. Research involved a spatial analysis of traditional markets (1456), large discount stores (408), and super-supermarkets (SSMs or hypermarkets (729)) spread throughout the country, in order to examine the scale and scope of the influence of the new retail store formats. The research is supportive of the ‘Traditional Commercial Activity Protection Zones’, which protect small and medium-sized enterprises (SMEs). From the perspective of traditional markets, it may be necessary for the South Korean government to promote additional, more proactive, support policies for SMEs.     

A psychological examination of attachment insecurity,loneliness, and fear of missing out as drivers of retail patronage among emerging adults

Recent consumer literature has shown that attachment insecurity (i.e., anxious, avoidant) enhances individual's motivations for retail shopping. We extend that literature using attachment theory to explain how attachment insecurity, loneliness (i.e., social, emotional), and fear of missing out (FoMO) affect retail patronage. We posit that these three negatively valenced psychosocial conditions generally incline emerging adult consumers toward retail patronage to resolve their relational deficits. Based on results from partial least squares-structural equation modeling (n = 509), we find support for most of our hypotheses. The study presents previously unavailable knowledge about antecedents of FoMO and multiple negative psychosocial drivers of retail patronage. We provide a foundation for future scholarship to examine more broadly how attachment, loneliness, and FoMO impact consumer behavior. Managerial and theoretical implications are also provided.     

国外零售集聚研究理论综述及启示

零售集聚作为城市商业发展最为重要的现象,逐渐引起了国外学者的研究兴趣。文章系统梳理了国外学者在这一领域的重要研究成果及最新进展。国外学者的研究主要围绕着零售集聚的学科视角、零售集聚与需求外部性、消费者行为和企业收益等方面展开。他们的研究多从微观视角进行,并特别注重多学科的交叉及定量研究。     

The impact of consumer local engagement on local store patronage and customer satisfaction

Abstract

This paper examines the drivers of local grocery retail patronage. Drawing on institutional and social network theory literature, we develop a framework to investigate how consumers’ personal values and engagement with local communities affect their satisfaction and local store patronage. We test our model with survey data on 1504 Finnish consumers. Our results show that the relationship between customer local engagement and local retail patronage is indirect rather than direct, and it is mediated by the vitality of local services, social interaction, and consumer satisfaction.     

零售业态均衡与创新的要素分析——基于零售业态价格梯度模型的研究

文章提出了一个业态价格梯度模型,该模型将价格梯度与业态竞争分布相联系,通过引入"消费者偏好"概念,较好地刻画了零售业态中服务、价格、成本三者之间关系,在此基础上验证并发展了"技术边界线"理论,提出业态取得竞争优势的关键因素是技术进步、满足消费者偏好以及管理创新带来的成本下降,我国家电零售业态历史发展变化情况也在一定程度上验证了模型的有效性。模型为今后同类研究提供量化分析工具的同时,也为进一步完善业态进化理论提供了新的研究视角。     

The impact of the deregulation of retail hours on shopping trip patterns in a mall hierarchy: an application of the RASTT model to the Sydney Project (1980–1998) and the global vacant shop problem

The impact of the deregulation of trading hours on trips to planned shopping centres is studied using the retail aggregate space-time trip (RASTT) model, where changes in consumer spatial behaviour are analysed at three malls in seven year periods (1980/82, 1988/89, 1996/98) in Sydney, Australia (The Sydney Project). After effective deregulation in 1992, the subsequent repeat samples in a hierarchy of shopping malls show significant structural change in only the afternoon samples at community and regional planned shopping centres. The results show a substantial increase in the attractiveness of planned shopping centres over traditional retail centres, where less consumers are shopping locally. There was a shift in spatial demand towards Sunday for ‘small centre’ behaviour and the appearance of high frequency regular trips to the regional planned centre. The RASTT model suggests that these changes in the structure of consumer behaviour are a result of moving the time boundary to seven days-a-week shopping at these centres. These structural changes may account for the on-going long term vacant shop problem that has manifested itself under shopping hour liberalisation in south east Australian, British and Canadian traditional retail hierarchies in the 1990s.