Understanding Customer Perceived Mall Values: A Confirmatory Factor Analysis Approach

Understanding Customer Perceived Mall Values: A Confirmatory Factor Analysis Approach

Anil Kumar Kashyap (Department of Business Management, Dr. Harisingh Gour Vishwavidyalaya (A Central University), Sagar, India) and Ajay Kumar (Department of Business Management, Dr. Harisingh Gour Vishwavidyalaya (A Central University), Sagar, India)
DOI: 10.4018/IJCRMM.2019070102

Abstract

Value-based business strategies are acquiring attention throughout the world. Retailing in India has distinct challenges. The diversity in its population largely affects its retail characteristics. Understanding customer perceived values and developing appropriate strategies is the only way to succeed. The proposed study is designed to explore and validate the customer perceived mall values in an Indian context. To accomplish the objectives, samples were taken from malls located in central India. A total of 257 samples were utilised to conclude the results. As the factor analysis remains a dynamic field of research studies in marketing, EFA and CFA is used to examine the data. The study results show seven customer-perceived mall values: convenience value, epistemic value, exploration value, monetary saving value, self-gratification value, social interaction value, and enjoyment-seeking value. At the end of the study useful managerial implications are provided to mall managers and operators.
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Introduction

Customer derived multiple values while shopping. The acts of shopping becoming more value driven after the evolution of one stop shopping destination i.e. the mall. People prefer value-oriented shopping (Velitchka and Barton, 2006). The value of shopping is nothing but the outcome of the shopping activity which comes with buying a product or services or a feeling of relaxation while accompanying others. People shop for the benefit of value fulfilment (Shim and Eastlick, 1998). The importance of shopping value can be seen in several scholarly articles (Griffin et al., 2000; Babin and Babin, 2001; Stoel et al., 2004; Babin et al., 1994; Michon and Chebat, 2004; Karim et al., 2013; Carpenter, 2008; Seo and Lee, 2008; Jackson et al., 2011; Davis and Hodges, 2012). These studies are limited to a certain extent of shopping values like hedonic and utilitarian, while consumer seeks more than these values. People often shop just to get offers and discounts, to relax, to enjoy and socialize with others, or just as a reason to get out of the routine life. Some customers entered in the mall primarily to get the value of sensual and emotional satisfaction during a shopping trip (Batra and Ahtola, 1991; Roy, 1994; Wakefield and Baker, 1998) represents hedonic values as shopping value. However, these reasons could not be traced out easily but have a large influence on value seeking process. Therefore, a gap exists between the value which customer expect from a shopping destination and the actual values they received against the amount they spent.

In the context of the mall, it is very common in India that people accompanied their friends and relatives. These mall visitors visit mall without having the objective of shopping in their mind. It is equally important to understand what kind of values these people derived while escorting their friends and family members during their shopping. After all the choice of selecting a mall for shopping depend upon the common consent of the group. Later, the experience these fellow visitors received also multiplied the chances of their visit in the mall again. Success of mall largely depends upon the footfall it recorded each day. Therefore, mall managers need to design the shopping values (Babin et al., 1994, 2005; Babin and Darden, 1995) which cater the need of all its visitors.

Customer perceived value is an aggregation of whatever customer perceive during their shopping trip. However, some scholarly article defined the customer perceived value (e.g. Chang and Dibb, 2012) as the synthesis of marketing, economics, axiology, and psychology. It means shopping values (Utilitarian and hedonic values) are the sub domain of customer perceived value. Further, customer perceived values consist more dimension than the shopping values. Customer-perceived value is nothing but a concern for consumers wishing to make sound purchase choices (Chang and Dibb, 2012). Basically, the customer-perceived value is a trade-off between what the customer gets (i.e. benefits, quality) in exchange of what he/she gives (i.e. price or sacrifice) (Zeithaml, 1988). Perceived value plays an important role in shaping customers’ choice and acceptance to repurchase and consequently in achieving sustainable competitive advantage (Eid and El-Gohary, 2015).

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