importance of entertainment in the shopping center experience: Evidence from Singapore, The

Journal of Real Estate Portfolio Management, Sep-Dec 2002 by Ibrahim, Muhammad F, Wee, Ng C

This article is the winner of the Retail Real Estate manuscript prize (sponsored by the International Council of Shopping Centers) presented at the 2002 American Real Estate Society Annual Meeting in Naples, Florida.

Executive Summary. The existence of entertaining shopping experiences has been previously investigated, nevertheless few studies have thoroughly examined the factors that induce these experiences. Using a sequential mixed method design, involving a qualitative and quantitative sequence, this study provides insights into the factors that influence entertaining shopping experiences. In addition to retailer and customer factors, transport mode / travel factors also play an important role in enhancing a shopper's experience. Retailer factors include shopping center features, atmosphere and value-added features. Customer factors are hedonic oriented and utilitarian oriented while transport mode / travel factors incorporate effort, protection, comfort, enjoyment and tension.

Introduction

Over the years, the competition between shopping malls has increased significantly possibly due to the overbuilding of retail centers and changing consumer shopping activities. Advancement in the transportation system has further accelerated the level of competition. Another contributing factor is the similarity of the attributes of most shopping malls, with too many stores offering too much of the same merchandise (Ashley, 1997; and Templin, 1997).

Given the apparent similarity in shopping center attributes, shoppers will probably choose to visit the nearest shopping mall when faced with the existence of more than one shopping mall within `reasonable' traveling distance. However, not all shoppers seem to conform to such normative behavior. Past research has revealed that many consumers make a decision regarding where to shop based on their attitude toward a mix of stores, the shopping center environment and entertaining shopping experience (Finn and Louviere, 1990; Donovan, Rossiter, Marcoolyn and Nesdale, 1994; Burns and Warren, 1995; and Jones, 1999).

This study represents a replication and extension of the exploratory research carried out by Jones (1999). Adopting the critical incidence technique, two broad factors-retailer and customer-were found to be characteristic of entertaining shopping experiences. Retailer factors include selection, prices, store environment and salespeople, while customer factors include social, task, time, involvement and financial resources.

In Singapore (Exhibit 1), rapid development and modernization of the retail sector started in the late 1960s. The development of retail centers continued into the 1970s and 1980s with more centers built in the Orchard Road area. To avoid overcrowding of the central area, the 1991 Revised Concept Plan set out the development of regional centers and sub-regional centers. This brought about tremendous change in the retail sector in the 1990s. In addition to Singapore, urban sprawl and the sprouting of regional shopping centers and suburban office parks has been documented in many other major cities. In the case of Singapore, this development has been accelerated and guided by the Mass Rapid Transit (MRT) system and the development of the surface road infrastructure.

Over the years, suburban shopping malls have grown larger and their one-stop convenience has extended to include service outlets and entertainment providers. By using creative merchandising and aggressive marketing promotions that take advantage of consumer trends, suburban malls are positioning themselves to attract recreational shoppers beyond their immediate retail trade area. The challenge to both the downtown and suburban shopping malls is to retain their share of shoppers. The underlying determinants of retail patronage are key in helping retailers to understand the critical success factor unique to their trade area. Therefore, it is important for retailers to identify their market niche in order to transform the shopping experience in their realm into something extraordinary.

Literature Review

Retailing Literature

There are many studies that document that consumers may view either shopping in general or specific shopping experiences as entertainment or recreational (eg., Bellenger and Korgaonkar, 1980; and Babin, Darden and Griffin, 1994). Generally, studies involving shopping and entertainment can be categorized into two research streams: (1) as an enduring tendency or trait; or (2) as a motive for a particular shopping trip.

Enduring Tendency or Trait

One consideration in people's orientation toward shopping is their view of alternative uses and expenditure of time. Do they enjoy spending time shopping, or do other alternative uses of their time have higher priority? Previous research into shopper orientation has typically created a category reflecting an entertainment orientation supporting the notion that some shoppers have an enduring tendency to shop for entertainment purposes.