Effects of Environmental Factors on the Purchasing Behaviour of the

Customer in the High End Malls of Karachi

Hafiz M Hussain1

Kaukab Taha2

Shoaib Younus3

MS. Erum Zaidi4

Abstract

This paper main objective was to explore the effect of environmental factors on purchasing

behaviour of customers in high ends malls of Karachi. Target population was customers of

Dolmen mall (Tariq road), Millennium mall, Forum, Park tower. In this paper researcher was

exploring the concept that’s why they used qualitative methodology. Sample size was 167

and data collection tool was questioner. Data had been analyzed through percentile.

Researchers found that mostly people visit shopping malls very seldom and it showed their

visiting habits in malls. Environment was fundamental element of this research and majority

customer said that environment has major impact on their purchasing behaviour and least

respondent said that environment didn’t impact on their purchasing. Researchers conclude

that customers had burly impact of environment on their purchasing and fragrance ,music

and other variables influenced customer but they also conclude that prayer area, food court

and Childers play area got measure responses of customer’s and these were the most

demanding factors in mall’s environment.

Keywords: Environmental factor, music, fragrance, service, cleanliness, purchasing behaviour.

1 Student I.D: BM-1091, Student of BIZTEK, Email: hssndd_88@hotmail

2 Student I.D: BM-1121, Student of BIZTEK, Email: kt_taha@live.com

3 Student I.D: BM-1078, Student of BIZTEK, Email: shoaibyounus@yahoo.com

4 Lecturer at BIZTEK, Email: ersuha@yahoo.com

pg. 1

1: Introduction

1.1: Background of study

(Kotler 1973)Atmospheric remains one of the newest research interests in the field of marketing although Kotler recognized it as in the point of purchase customers not only grip themselves with the tangible product or service being offered, but also respond to its environment or more specifically to the atmosphere of the service setting, According to the author the atmosphere of the service environment is an essential part of the point of purchase. Bitner,(1990-1922) states about service that due to its intangible nature service requires that buyer’s entirely experience the firm’s physical environment, as it is consumed and produced simultaneously. Hence these factors can directly affect decision making at the point of purchase perhaps more than any other marketing variables such as advertising Mehrabian et al. (1974) were the first to introduce a theoretical model on the effects of environmental factors on consumer emotions and behaviours. They both proposed a theoretical model in which emotional states are induced by environmental stimuli and act as mediators which is (PAD) Pleasure, Arousal, and Dominance. Pleasure is the degree of joy, Dominance refers to free to act environment and Arousal is the degree in which customers feels excited and active. (Gulas, et al (1995).They developed a model specifically aimed at illustrating the effects of ambient scent on emotions and behaviours. The perception of ambient scents, as opposed to product related odour is posited to occur as a “function of the objective scent levels in the physical environment and the smell acuity of the consumer”, the later being dependent on various individual characteristics. Their perceived odours are than combined with scent preferences, which are determined not only by the same personal attributes but by past experiences as well.

1.2: Aim of the study

The aim of this paper was to find out the effect of environmental factors on purchasing behaviour of customers in the high end mall of Karachi which includes Dolmen mall (Tariq road), Millennium mall, Forum, Park tower. The major purpose of this paper was to uncover customer’s perception regarding the environment of high end mall of Karachi.

1.3: Research objective

This research main objective was to explore the customer perception about effects of environmental factors on the purchasing behaviour of customers about services, music, cleanliness; scent, surrounding environment and as well as amount of money spend by Customers due to these factors. This study was also focusing on consumer views related to the shop keeper’s behaviour.

1.4: Research methodology

This research was qualitative to keep in line with the topic of this research paper. Because in this paper researchers were explore the idea of customer purchasing behaviour due to environment. Researcher followed this methodology from (Asim Ali and Saf Hasnu, 2008).

pg. 2

1.4.1: Population

The target population were focusing on customers of Dolmen mall (Tariq road), Forum, Park Tower and Millennium Mall of Karachi and researcher got the figure of Saturday from these malls around the timings of 2 pm to 4 pm and average customers visited each of these shopping malls in those timings. The researchers have taken 5% of these customers which was around 50 customers from each shopping mall.

Venue

Average Total foot hold on Saturday

Average foot hold between 2pm to 4pm

% of responses taken as sample Source

Designation

Sample size

Forum 12000-13000 1000 5%

Kashif S. Butt

Assistant Manager

Marketing & Sales 50

Park Tower

12000-13000 1000 5%

M-Pervez

Marketing Executive 50

Dolmen Mall

10000-12000 1000 5%

Jabir Hussain

Leasing Head 50

Millinium Mall

8000-10000 1000 5%

Sentinels Security

Security Incharge 50

1.4.2: Sampling frame:

The sample that represents the population of this study was taken from the four shopping Malls of the Karachi which included Dolmen Mall (Tariq Road), Forum (Clifton), Park Tower (Clifton) and Millennium Mall (Gulshan).Sample size of this research was 200 but respondent rate which researchers got in that survey was 167.

1.4.3: Sampling Methodology:

Non probability sampling method was selected in which Convenience sampling had been done according to researcher’s convenience.

1.5: Data collection Method:

The research was qualitative in nature and based on primary and secondary data sources. The primary source of data collection was from customers of Dolmen mall

pg. 3

(Tariq road), Forum, Park tower and Millennium mall of Karachi. The secondary sources consist on articles related to consumer behaviour and journals. Data collection tool was questionnaire which consists of two parts one related to consumer’s awareness towards Retail environment and the other was effects of environmental factors on purchasing behaviour of customers. Data was collected from randomly 200 shoppers and out of 200 researchers got response rate of 167 shoppers for final study, which was 83.5%. Each shopper was approached when he/she came out of the shopping mall and has actually experienced shopping at that point in time

1.6: Data analysis technique:

The research work was qualitative and exploratory in nature. Descriptive statistical tools had been used to present the findings in percentile and graphically form to explain the data analysis.

1.7: Variables of the Study

Gulas(1995), Turley (2000), Kotler(1973),Morier (2005) had identified following as some of the factors of environment that influence the purchasing behaviour of customer.

Following was the factors to be evaluated in this study:

Consumer satisfaction Consumer perception Amount of money spend due to environmental factors Importance of retail environment Music Scent Cleanliness

1.8: Benefits Of Research:

This research was completely based on customer perception so it have been for all entrepreneurs who were dealing in shopping goods to understand the customer view point about all environmental factors which influencing them. It had also given them ideas for customer retention by eye-catching environment.

Researchers have also got benefit from it to understanding the people views about environment of malls. Researchers gave the opportunity to all high end malls for customer retention by applied and followed all the demanding environments in high end malls. Since being a business student’s specialization in marketing it was also helping researcher to understand consumer behaviour and to develop new strategies for organizations to cater and attract the customers.

2. An overview of Effects of Environmental Factors on purchasing behaviour of customers in high end malls of Karachi

The aim of this chapter was to provide the relevant literature in the field researcher were doing study.

pg. 4

2.1 Shopping Mall Attractiveness

(Adly 2007) This research helps us to understand the attractive factors of shopping malls from the shopper’s perspective. The research aims to determine the attractiveness factors in UAE shopping malls from the shoppers' perspective and then to segment shoppers according to these attractiveness factors. This study revealed six mall attractiveness factors from the shoppers' perspective: comfort, entertainment, diversity, mall essence, convenience, and luxury. It also arrived at three mall shopper segments, specifically, relaxed shoppers, demanding shoppers, and pragmatic shoppers. Each segment was profiled in terms of mall attractiveness attributes, demographics and shopping behaviour. Identifying mall attractiveness factors for a segmented market gives a better understanding about patronage motives than when it is applied to the market as a whole. This enables mall managers to develop the appropriate retailing strategies to satisfy each segment. (Bitner, 1990-1922) States about service that due to its intangible nature service requires that buyer’s entirely experience the firm’s physical environment, as it is consumed and produced simultaneously. Hence these factors can directly affect decision making at the point of purchase perhaps more than any other marketing variables such as advertising.(Kotler, 1973) Atmospheric remains one of the newest research interests in the field of marketing although Kotler recognized it as in the point of purchase customers not only grip themselves with the tangible product or service being offered, but also respond to its environment or more specifically to the atmosphere of the service setting, According to the author the atmosphere of the service environment is an essential part of the point of purchase.

2.2: Effects of Environmental Factors on Gender

(Wakefield and Baker 1998) This study suggests that gender may have differentiating factor in enjoying individual shopping. Through available information and studies we can conclude that men and women employ different strategies during information processing .Specifically men tend to be more discriminating and to restrict both the quantity and content of environmental cues considered; rather than comprehensively assessing all the existing elements. Whereas women are more inclined towards process information in a holistic manner, as they used to take in depth analysis of all available information.(Gulas et al.1995). They developed a

model specifically aimed at illustrating the effects of ambient scent on emotions and behaviours. The perception of ambient scents, as opposed to product related odours is posited to occur as a “function of the objective scent levels in the physical environment and the smell acuity of the consumer”, the later being dependent on various individual characteristics. Their perceived odours are than combined with scent preferences, which are determined not only by the same personal attributes but by past experiences as well.

2.3: Music and Scent as Environmental Cues

(Turley and Milliman 2000) Based on the literature, it is possible to presume that in retail location such as a mall consumers will be affected by the addition of various stimuli to the setting. This literature provides adequate descriptions of the environmental factors that will be used as independent variables in this study. Those variables are music tempo and ambient music.(Bruner 1990) In “Music, Mood and

pg. 5

Marketing”, authors stated that music not only as a generic sonic mass but rather a complex chemistry of controllable elements”. With in service environments, music if often used to generate desired consumer and employee responses.

2.4: Theoretical Models of Consumer Responses to Atmospherics (Bitner 1992)

Bitner was the first to introduce a theoretical model on the effects of environmental factors on consumer emotions and behaviour. He introduces a theoretical model based on the Stimulus- Organism- Response (SOR) according to this atmosphere is the stimulus that prompts a consumer evaluation or organism an some behavioural response.[Mehrabian et al.(1974)]. Mehrabian and Russell were among the first to introduce a theoretical model on the effects of environmental factors on consumer emotions and behaviours.They both proposed a theoretical model in which emotional states are induced by environmental stimuli and act as mediators which is (PAD) Pleasure, arousal, Dominance. Pleasure is the degree of joy, Dominance refers to free to act environment and Arousal is the degree in which customers feels excited and active.

2.5: Theoretical model of the study:

This model has been adopted by Richard Michon, Hong Yu and Donna Smith (2007)

Utilitarian Value: Consumer's benefiter behaviour is described via duty oriented and wisdom based behaviour. Shopping profit oriented cognitive value is defined as to what extent of the consuming need encouraged is satisfied by the shopping experience. This means that the consumer buys the product deeply and by searching and it would be effective. Therefore shopping profit oriented is more related to logical wisdom shopping related to retail. In addition it is related to data gathering in comparison to enjoy oriented behaviour.

Hedonic Value: Hedonic value is mental related to individual then comparing profit oriented value. Hedonic value is completely about entertainment and enjoyment. Hedonic value is related to shopping’s emotional enjoy and value. It deals with the emotional feelings of enjoyment and entertainment. Therefore hedonic value defines the shopping experience more than attracting towards main purpose of shopping.

pg. 6

3: Data integration and analysis

In this data analysis, Percentage analysis was used in examining variables such as customer satisfaction, awareness of environmental factors, music, fragrance, satisfaction etc to achieve the objective and in the following section these results can be found

3.1: Demographic profile

The population of this study was the customers of shopping malls of Karachi specially the youth of Karachi mainly belong to 17 years to 28 years. The researcher has come across with respondents belongs to almost every walk of life. It includes respondents which belong to different age groups. It includes professionals, students, and house wives. It includes respondents who belong to different ethnic groups as well as different cultures and religions

Fig: 4.1.1

53%47%

Gender

MaleFemale

In this figure gender of respondents is on x-axis and numbers of respondents on y-

axis the most of the respondent were male. The percentage of male respondents

was 53.29 percent and female was 46.71 percent.

22%

32%

28%

11%

7%

Age Groups

14-1920-2324-2829-3233 & Above

pg. 7

In this Figure age group is on x-axis and number of respondents on y-axis. The most

of the respondent were from age group of 20-23 year which was 32.34 percent then

24-28 year age group respondents were 27.54 percent. The less number of

respondents were from age group of 32-35 years which were only 6.59 percent and

the respondents in the age group of 19-23 were 22.16 percent.

83%

13%

4%

Amount of Purchase

8000 or less8500 to 1500020000 TO 50000

In this figure respondents who spend Rs. 8000 or less in shopping are in blue pie which is 83%, respondents who spend Rs. 8500 to 15000 are in red pie which is 13% and those who spend Rs. 20,000 to 50,000 on purchase are in green pie which is only 4%. So it shows that most of the respondents belong to middle class families.

3.2: Descriptive analysis

3.2.1: Graph

Yes No0.00%

10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00%90.00% 84.43%

15.57%

Effect of Environmental Fators

Series 1

The figure 4.1.5 shows that 84.43% of respondents have said that environment of shopping malls affect their purchasing behavior. If the shopping mall has a good environment they prefer it for shopping. And 15.57% people said that environmental factors have no effect on their purchasing behavior.

pg. 8

3.2.2: Graph

Disappointed Poor

Normal

Satisfi

ed

Excel

lent

0.00%

10.00%

20.00%

30.00%

40.00%

4.79%

20.96%

38.32%

22.75%

13.17%

Service Level of Sales Person

Series 1

The figure 4.1.8 shows that 38.32% of respondents categorized the service level of

sales of person in shopping mall as normal. 22.75% of respondents were satisfied,

20.96% of respondents said that service is poor, 13.17% said service was excellent

and only 4.79% said that the service of sales person was very disappointed.

3.2.3: Graph

Strongly

Disagre

e

Disagre

e

Not Sure

Agreed

Strongly

Agreed

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%

10.78% 8.98%

22.16% 23.35%

34.73%

Fragrance Effect

Series 1

The figure 4.1.10 shows the responses of people about the fragrance effect on

consumer behavior. 34.73%of respondents were strongly agreed with the fragrance

effect, 23.35% respondents were rated as agreed, 22.16% responded as normal,

10.78% respondents were strongly disagree with its effect on their behavior and

8.98% respondents were rated for disagreed about the statement that fragrance has

deep effect on the behaviour of consumer in an environment of shopping place.

pg. 9

3.2.4: Graph

Strongly

Disagre

e

Disagre

e

Not Sure

Agreed

Strongly

Agreed

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%

9.58% 10.18%

25.75% 25.75%28.74%

Music Inspiration

Series 1

The figure 4.1.11 shows the responses of people about the effect of music on

consumer behaviour. 28.74% of respondents responded that they were strongly

agreed with music inspiration in shopping malls, 25.75% respondents rated as

agreed and not sure, 10.18% were disagreed with this point and only 9.58% are

strongly disagreed about the inspiration of music on consumer behaviour in shopping

place.

3.2.5: Graph

The figure 4.1.16 shows about the perception of shopping mall in consumer mind if

they get clean sanitary place. 97.01% people said yes and only 2.99% said no.

Finding:

pg. 10

Yes No0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%97.01%

2.99%

Clean Sanitary Place

Series 1

The following chapter provided an overview of the results.

These findings were based on 167 questionnaires filled by the respondents. The survey included a series of questions related to individual personality. The researchers have come across with people belongs to almost every walk of life. It includes people belongs to different age groups, professionals, different ethnic groups as well as different cultures and religion. In this way in that survey the researcher have gathered the intuitive influences of people related to almost every walk of life. The researcher has also conducted an interview with a group of foreign students. The researcher conducted an interview of bank mangers, housewives, medical and engineering students, business management students, media personalities, shopkeepers, employees, employers etc.

Music:

Firstly researcher has evaluated impact of music. The researcher has investigated if the music has any effect on consumer behaviour or not. Hence it was evaluated that background music rendered shopping at the mall was a pleasant experience and most of the people considered it as appropriate. It was also found out that 57% of people prefer slow music in shopping malls. (Turley and Milliman 2000).

Fragrance:

Results indicated that 58% of respondents were agreed that fragrance had a deep effect on their decision power and that fragrance had powerful stimuli to motivate respondents towards purchase of something and even 22% of respondents responded in moderate. So it is evaluated that a large number of proportions of respondents of Karachi agreed that fragrance has a deep effect on their purchase decisions (Robert Klara 2012) and (Gulas et al.1995).

Service:

It was also indicated by the study that now the pattern of purchase has being changed. Now customers are fully aware of their rights so with this study researchers have found out that service environment has also a deep effect on consumers mind and that service environment could motivate respondents towards purchase and increase in sales. The findings indicated that 74% of respondents were satisfied with the service level of the Malls of Karachi and respondents has said that the support, guidance and service of sales person influence them to revisit the mall (Parsons 2003)It was also found out in this study that people takes shopping malls more than a shopping place and that they appreciated the availability of clean sanitary environment of the mall as well as the availability of food court, play area and pray area more than 93% of respondents has said that above all mentioned facilities are than necessary part of the shopping malls and they enjoyed these facilities a lot.

So finally researcher’s findings have been correlate with the previous studies.

4: Conclusion

pg. 11

In the entire examine researcher conclude that their respondent had very strong impact of environment in malls and customer purchasing behaviour was highly dependent on mall’s environment. According to surveyed they extracted that mostly people considered malls as a entertainment and fun place that’s why they spend most of their time on malls for shopping but its also indicated that this attitude of customer was highly dependent on malls environment. Researchers also obtained that there were average ratio of satisfaction from current environment of malls and this ratio will increase if mall’s management improve their mall’s environment. Researchers conclude that mostly people were satisfied with service of sales persons and they found that sales persons guidance motivate customers. Because of admirable and pleasant environment people consider shopping place as an entertainment place. Research all variables have most important factors of mall’s environment and this have been proved in this research. They got that mostly people preferred slow music as compare to fast music and this answered shows that music was also among in those factors which customers want and preferred in malls. Researchers have found that fragrance ,music and other variables influenced customer but they also conclude that prayer area, food court and Childers play area got measure responses of customer’s and these are the most demanding factors in mall’s environment. Prayer area is important factor of mall because Pakistan is Islamic country and if malls provided proper prayer area then people can spend more time and feel comfortable

Researcher conclude that service level of management had numerous and distinct respond. That’s why researcher couldn’t said mostly people were satisfied and mostly people were not satisfied. Researcher took the interviews from females and males but male customer ratio was high then the female. This result indicated that men’s were more interested in shopping.

Researcher found that fragrance is strong stimulus in shopping and people preferred those environments which have pleasant and tempting fragrance because good fragrance also creates an affectionate and joyful environment. Researchers also conclude that service of sales person have guided and motivated customer and became a major reason for revisit in malls but beside this fact every customer didn’t fully satisfied with current services provided by sales person.

In the last researcher conclude that fragrance, service, music, cleanliness and satisfaction from malls all were most important factors for shopping and these factors played a vital role to enhance customer purchasing and it also became a major part for customer retention.

4.1: Research work limitations

Time constraint Lack of integration of people Lack of coordination from management of malls regarding refused to

cooperate.

4.2: Areas of further study

pg. 12

Effects of Lightening on the purchasing behaviour of the customers in the High End Malls of Karachi.

Effects of temperature on the purchasing behaviour of the customers in the High End Malls of Karachi.

Effects of product colour on the purchasing behaviour of the customers in the High End Malls of Karachi.

5: References

Ali and Hasnu, (2008), “An Analysis of In- Store Shopping Environment on Consumers “Impulse Buying”, Pakistan, Comsats Institute of Information and Technology

Alpert, 1990,”Music Influences on Mood and Purchase Intentions”, Volume 7 (2), 109-133 Psychology and Marketing

Babin and Griffin, 1994, “Work and Fun: Measuring Hedonic and Utilitarian Shopping Value” V: 20, the University of Chicago Press

Bitner, 1992, “The Impact of physical surroundings on customers and employees” Journal of Marketing, 56 (2), 57-71

Bruner 2, 1990, “Music, Mood and Marketing”, Volume 54 (4) Journal of Marketing

Donovan, 1994, “Store atmosphere and purchase behavior”, 70 (3), 283-294 Journal of retailing

Kollat and Willett, 1967, “Customer Impulse Shopping Behavior” Vol.4, PP 21-23 Journal of Marketing

Kotler 1973, “Atmospheric as a Marketing Toll” 49 (4), 48-64 Journal of Retailing

Mehrabian and Russell, 1974, “An approach to Environmental Psychology”, Cambridge, MA: MIT Press

Melanie Morier, 2005,” The Sweet Smell and Sound of Success in a Shopping Mall” Canada, Concoradia University

Milliaman, 1986, “The influence of the background Music on the behavior of Super Market Shoppers” journal of Consumer Research, 13 (2), 286-289

Michon and Turley, 2003, “The interaction effects of the Mall Environment on the Shopping Behavior” V: 58 (6), Journal of Business Research

Michon and Turley, 2005, “The interaction effects of the Mall Environment on shopping Behavior”, 58 (5), 576-583 Journal of Business Research

Tooraj, 2011, “The Effect of Shopping Mall Environment on Shopping Behavior under a Model” Iran, Middle East Journal of Scientific Research

Turley, 2000, “Atmospheric Effects on Shopping Behavior: A Review of the Experimental Evidence” V: 49 (2), Journal of Business Research

Wakefield, 1998, “Excitement at Mall: Determinants and Effects on Shopping Response” V: 74 (4), Journal of Retailing.

pg. 13

pg. 14