Research Article: 2021 Vol: 25 Issue: 6
Chitralekha Kumar, Welingkar Institute of Management Development and Research
Citation: Kumar, C. (2021). Articulating shopping mall loyalty in the post pandemic scenario. Academy of Marketing Studies Journal, 25(6), 1-9.
Shopping Mall, Customers, COVID-19, Mall Loyalty, Pandemic.
Shopping in a mall is no longer restricted to the chore of shopping. It involves an overall shopping experience depending upon various factors. The shopping mall euphoria has gone down with time. In today’s world the mall management need to identify the factors that attracts the shoppers to visit their mall as a “Mall loyal customer”. The static infrastructure of the shopping malls is the major constraint in the shopping experience of the customers. It is imperative for the mall managers to innovate and design the existing facilities to manage change and attract customers. Failure in doing it has led to the closure of various shopping malls (Prashar et. al., 2017). Research suggested that a comfortable and convenient experience in the mall was found to have a positive impact on the mall loyalty of the customers (Srivastava & Kaul, 2014).
The shopping mall environment has been referred as a service ecosystem. The governance of shopping malls has been based on the logic of “service-dominance”. It has been defined as a “relatively self-contained, self-adjusting system of resource-integrating actors connected by shared institutional arrangements and mutual value creation through service exchange” (Vargo & Lusch 2017).
Mall service quality and specific dimensions like the physical aspects, reliable atmosphere and personal attention to the customers were found to be effective towards customers loyalty (Diallo et. al. 2018). Increased customer involvement, developing positive perception towards brands in the mall indicated greater emotional attachment towards the mall (Shafiee & Es-haghi, 2017). The unique set of experiences that the shopping malls offer to the customers were the most effective dimensions for mall loyalty. These dimensions had different impact on different cultures and nationalities (Gilboa et.al. 2020).
As the pandemic hit India, the consumers shifted their spending’s from fashion and luxuries to basic necessities. Shopping mall owners had to face various challenges. Post lockdown, the shopping mall owners were developing their capabilities through rapid experimenting. COVID-19 also changed the expectations of the customers. Online shopping was given a boost by this situation. Health and safety concerns made the customers less confident to visit the physical stores in their favourite mall. The Pandemic greatly affected the shopping pattern too. The shopping malls have reopened in the month of September 2020 in Mumbai, Maharashtra. Shoppers have been visiting their favourite mall after approximately six months. The present study attempts to understand the attributes that attracted the shoppers to visit the mall despite the risk associated with it.
Review of Literature
The concept of shopping malls emerged from the western economies. Their social and economic contexts are different from that of Asian markets. In India, the retail markets emerged in the integrated format in the early 2000s (Singh & Prashar, 2014). Many malls were opened in the metropolitan cities of India, leading to clustering of malls in one locality. These were mostly replica of the format followed by the western countries. However, the Indian malls had marvellous exteriors to attract the shoppers to their mall (Prashar et al. 2015). In the initial phases the mall managers did not have the clarity of the preferences of the shoppers. The blend of the global and Indian standards led to a lot of experimenting (Singh & Sahay, 2012).
Customer satisfaction in a shopping mall depends on various factors. Customers were more loyal to such malls that had proper lights, pleasing music and large atrium spaces. These factors were found to be positive towards customers emotional and behavioural intentions. (Yi & Kang, 2019). Green areas and touch of nature affected the mental health of the customer positively. Shopping malls with greenery merged with their infrastructure had more satisfied and loyal customers. Those customers exhibited positive behaviour towards the mall (Rosenbaum, et al. 2016). Despite of the availability of numerous techniques, understanding the attributes that lead to mall loyalty in the customers has remained subjective to culture, nationality and various other factors. Table 1 represents the attributes identified by various researchers prior to the pandemic COVID-19.
| Table 1 Mall Loyalty Attributes |
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| S.N | Key Attributes of Shopping mall loyalty | Authors |
|---|---|---|
| 1 | Range of products and services offered | Keller (2003) |
| 2 | Customers importance to retail tenant mix and atmosphere | Teller (2008) |
| 3 | Retail stores, entertainment options, dining place, play zones and cinemas | Chebat, Sirgy & Grzeskowiak, (2010) |
| 4 | Variety in the menu and dining experience in the mall | Kwun (2011) |
| 5 | Customers importance to tenant mix scheme | Yiu and Xu (2012) |
| 6 | Aesthetics of shopping malls | Ahmad (2012) |
| 7 | Mall design, entertainment and variety of services | Ali (2013) |
| 8 | Various styles, variety, quality products and services | Khong and Ong (2014) |
| 9 | Food quality, dining space and variety of food | Josiam et al. (2017) |
| 10 | Layout of the mall, colour, lighting, temperature and design | Das & Varshneya (2017) |
| 11 | Convenience and value for money | Prashar et al. (2017) |
| 12 | Product quality, range, quality and employees | Joudeh (2017) |
| 13 | Tangible and intangible factors of service quality | Diallo et al. (2018) |
| 14 | Proper pricing of products and value for money | Tsai (2018) |
| 15 | Promotional activities, fashion trends and technological innovations | Makgopa (2018) |
| 16 | Huge space and convenience | Idoko et al. (2019) |
| 17 | Mall atmosphere, location and entertainment | Thanasi-Boce et al. (2020) |
| 18 | Convenience, discounts and corporate culture | Zhang & Wei (2020) |
| 19 | Shopping mall environment and economic benefit | Showray et al. (2020) |
| 20 | Concerts, assisted shopping and virtual reality | Lucia-Palacios et al. (2020) |
Due to the pandemic act, various measures were taken in the interest of public health and security. It also included the closure of shopping malls in spite of the various economic and political challenges (Yezli & Khan, 2020). Post lockdown measures have created various new research dimensions to understand the customers and the markets (Celik & Dane 2020) studied the effect of COVID-19 pandemic outbreak on the food preferences of the customers. Their study included four hundred and eleven participants from different nationalities. The results highlighted that the pandemic had a powerful impact on the consumption patterns of the customers. There was also a significant impact on the buying behaviour of the customers due to the pandemic. Rakhmanov, et al. (2020) identified through their work that there was greater anxiety and depression among the customers due to the pandemic Saprikis, et al. (2021) studied the mobile augmented reality apps in the shopping malls. Their work was an extension of the “Unified theory on acceptance and use of technology (UTAUT)”. Their work identified a new emerging trend amongst the buyer’s behaviour and intent to use technology in this post pandemic situation. There is limited literature available on the attributes of shopping mall loyalty during pandemic scenario. Present research attempts to identify such attributes that attract the shoppers during difficult pandemic situations. The study identified the attributes that strengthen the mall attributes that are liked by the customers. It provides better understanding of practices adopted by mall management. It empirically examines the factors that lead to visiting of the customers post the lockdown in Maharashtra. It contributes to the academic content about factors that develop mall loyalty.
Purpose of the Research
This study was carried out for the understanding of the parameters that influence the mall loyalty of the customers during the COVID-19 spread in Mumbai. It tries to understand the three dimensions i.e., Safety and Security measures, Convenience and Social distancing facilities and Shopping offers. Data analysis represents the influence of each factor under theses dimensions on influencing the mall loyalty of the customers. The paper aims to discuss these parameters that will be beneficial for mall managers as well as the customers during and after the deadly COVID-19 outbreak.
Research Methods
Present research has exploratory and descriptive research design. Data has been collected from 148 customers from the Navi Mumbai region. Two malls were identified (most visited mall) by the customers. These malls were “Grand Central” mall in “Seawoods” and “Inorbit” Mall in “Vashi”. The study area is Navi Mumbai region in Maharashtra. Data has been collected in the months of October, November and December 2020, by random sampling technique. In the stage one of this study, qualitative methods were used to identify the three dimensions. Telephonic interviews were conducted to understand the attributes from the customers who visited the malls. This enabled in drafting the questionnaire. In the second stage the data collection was done. The responses were collected digitally in a tablet device in the food court area of the mall. Respondents were ensured of the social distancing norms and all the respondents were wearing masks to avoid any contact as per the directives of the Maharashtra state government. Inferential statistics, Pearson Correlation and Factor Analysis were the key statistical tools used for the analysis of the data.
Present Research had the following Objectives
Following Hypotheses were Framed for the Study
H0 A: There is no significant relationship between the factors of Safety and Security measures and mall loyalty of customers.
H0 B: There is no significant difference between the factors of Convenience and Social distancing facilities and mall loyalty of customers.
H0C: There is no significant difference between the factors of Shopping offers available and mall loyalty of customers.
The research methods followed in the study are represented in Table 2.
| Table 2 Research Methods |
|
| Title | Particulars |
|---|---|
| Research Design | Exploratory and Descriptive Research Design |
| Sample size | 148 |
| Study Area | Navi Mumbai- “Grand Central” mall in “Seawoods” and “Inorbit” Mall in “Vashi” |
| Sampling Technique | Random Sampling |
| Research Instrument | Structured Questionnaire 5-Point Likert Scale |
| Statistical methods | Cronbach’s Alpha, Chi Square, Correlation, Factor Analysis |
Data Analysis and Interpretation
Data analysis of the responses collected from 148 customers identified three major dimensions of mall loyalty in the Covid 19 outbreak. These three dimensions are: Safety and Security measures, Convenience and Social distancing facilities and Shopping offers. Table 3 represents the variables included in the study.
| Table 3 Variables of the Study |
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| Attributes | Independent Variable | Dependent Variable |
|---|---|---|
| Safety and Security measures | Nearby locality, safe parking options, freshly cooked hot food, frequent sanitation in the mall | Mall Loyalty |
| Convenience and Social distancing facilities | Sitting options with social distancing, Huge Atrium/ open space in the mall, Sanitation and hygienic measures for customers, digital payment | Mall Loyalty |
| Shopping offers | 50% or more discount offers, Multiple brands, Free products, coupons and vouchers | Mall Loyalty |
A structured questionnaire was designed on 5-point Likert Scale (1 representing highly disagree and 5 representing highly agree). Cronbach's Alpha value was (0.830) significantly reliable Table 4.
| Table 4 Cronbach’s Alpha |
|
| Reliability Statistics | |
|---|---|
| Cronbach's Alpha | N of Items |
| 0.830 | 12 |
Descriptive Statistics Table 5 reflected that mostly the customers belonging to age group 20-30 years (130 customers) visited the mall. 90 male customers and 58 female customers, mostly employed in the private sector (112) visited the mall. Majority of the respondents (80) had the monthly income above Rs. 41000. Most of the respondents were graduates (100).
| Table 5 Descriptive Statistics |
||
| Descriptive Statistics | ||
|---|---|---|
| Gender | Male-90, Female -58 | (N-148) |
| Age | 20- 30 years- 130, 31 to 40 years- 10, 41 years and above- 8 |
(N-148) |
| Income Level | Rs. 20000- Rs.30000 - 26 Rs. 31000- Rs. 40000- 42 41000 and above - 80 |
(N-148) |
| Education | Graduate- 100, Post Graduate- 32, Other- 16 | (N-148) |
| Occupation | Students – 20, Private Employee- 112 Government Employee – 6, Business - 10 |
(N-148) |
Hypotheses testing was done through Chi square test. The findings are mentioned in Table 6.
| Table 6 Chi Square Test |
||||
| Hypotheses | N of Valid Cases | Pearson Chi-Square value | df | Asymptotic Significance (2-sided) |
|---|---|---|---|---|
| H0 A | 148 | 74.787a | 8 | .000 |
| H0 B | 148 | 85.441a | 8 | .000 |
| H0C | 148 | 58.632a | 8 | .000 |
It was found that there was a significant relationship between the factors of Safety and Security measures and mall loyalty of customers. There was a significant difference between the factors of Convenience and Social distancing facilities and mall loyalty of customers. It was also found that there was a significant difference between the factors of Shopping offers available and mall loyalty of customers.
Pearson correlation reflected that there was a significant relationship (.692) between the age of the customers and the Mall Loyalty by Shopping offers/ discounts. It was also found that there was a significant correlation (0.723) between the monthly income of the customer and the mall loyalty by Safety and Security measures. Table 7 represents the two significant correlation values. Other values were moderate in terms of significant correlation.
| Table 7 Pearson’s Correlation |
||
| Variables | Pearson's correlation | Sig.(2-tailed) |
|---|---|---|
| Age of the customers and the Mall Loyalty by Shopping offers/ discounts | 0.692 | 0.000 |
| Monthly income of the customer and the mall loyalty by Safety and Security measures | 0.756 | 0.000 |
Factor Analysis identified the top attributes that were contributing to mall loyalty in the Covid 19 outbreak. KMO and Barlett’s Test value was 0.849 and statistically significant represented in Table 8. These attributes identified as Factor 1 were: Nearby locality, sitting options with social distancing, huge atrium/ open space in the mall, sanitation and hygienic measures, well distanced parking options, freshly cooked hot food and 50% or more discount offers. Customers were more loyal to Grand Central mall as per the findings of the present study.
| Table 8 KMO and Bartlett's Test |
||
| Kaiser-Meyer-Olkin Measure of Sampling Adequacy. | 0.849 | |
| Bartlett's Test of Sphericity | Approx. Chi-Square | 11780.436 |
| Df | 66 | |
| Sig. | 0.000 | |
If all the twelve attributes collectively contribute to 100% mall loyalty in the customers, then the seven attributes identified as factor 1 constitute 40.918% and it is highly significant factor. The total variance of the components is represented in Table 9.
| Table 9 Total Variance Explained |
||||||
| Component | Initial Eigenvalues | Extraction Sums of Squared Loadings | ||||
|---|---|---|---|---|---|---|
| Total | % of Variance | Cumulative % | Total | % of Variance | Cumulative % | |
| 1 | 4.910 | 40.918 | 40.918 | 4.910 | 40.918 | 40.918 |
| 2 | 3.632 | 30.271 | 71.189 | 3.632 | 30.271 | 71.189 |
| 3 | 1.367 | 11.390 | 82.578 | 1.367 | 11.390 | 82.578 |
Findings of the Study
The findings of the study reflect that the younger generation mostly visited the shopping malls post the lockdown in Mumbai. Most of them were male customers. The three dimensions - Safety and Security measures, Convenience and Social distancing facilities and Shopping offers were important for the mall customers. It was found that the older age group customers were majorly attracted to the shopping offers in the mall as compared to the younger ones. It was found that the higher the Monthly income of the customer, the greater was the likeness for safety and security measures in the mall. Nearby locality, sitting options with social distancing, huge atrium/ open space in the mall, sanitation and hygienic measures, well distanced parking options, freshly cooked hot food and 50% or more discount offers were most significant to the customers during the post pandemic visit to their favourite shopping mall.
Implications and Significance of the Results
The findings of the study have significant managerial implications on three important stakeholders in the shopping mall ecosystem. They are as follows:
Customers- They may analyze the safety measures and various options available at the mall before planning their visit.
Mall Managers- They may identify and strengthen the attributes that attract the customers to the malls during the situation of COVID 19
Government support- Government may relook at the measures followed at such malls and support the ones that are following the safety measures.
Shopping is an inseparable norm of the society. Shopping malls have always attracted the customers to experience the overall process in a very pleasant manner. Even the outspread of COVID-19 pandemic could not stop the customers from visiting their favourite malls. Grand Central Mall in Navi Mumbai region was found to be the most preferred mall by the customers. The loyalty towards the mall was due to the various Safety and Security measures taken by the mall management. The findings of the present study reflect the attributes that are beneficial for both customers as well as the mall managers. The customers may look at the safety and security measures provided by their favourite mall and the managers may identify the attributes that they must strengthen to attract their customers. This would enable the recreation of the Shopping mall culture in the times to come.