Phase 5 Framework
2.3 Competitive Strategies of the Existing Shopping Malls
2.3.5 Environment
adopting new digital technologies compare to other industry sectors. Digital technologies allow new functions and promote data management compared to the analogue one (Yoo et al., 2010). By adopting digital technology, businesses can generate value in the form of performance, complementarity, innovation and efficiency.
For digital program strategy, it is more complex and large data of digital technology is needed. The Information Technology (IT) department has to cooperate with technology supplier to gather large amount of data from consumers in the shopping mall (Frishammar, 2018). The shopper data can be collected through loyalty program (Liew, 2017). The gathered data is analysed and to improve and simplify the logistic services, footfall, flow of measurement, heat maps and more. Shopping malls can use the data to maximize their store location and facilitate the flow of customers through the analysis of shopper traffic and retail location sales. Through this strategy, shopping malls can optimize the usage of mall and increase their sales because of the advance and efficient management and analytics.
This strategy focuses on two sides’ interaction which are the customers and retailers. The shopping malls get to track shoppers via their smartphones and customize relevant goods recommendation for them according to their shopping profile (Frishammar, 2018). According to Lesonsky (2017), about half of the women in the survey indicated that they will not even enter a store unless they see a markdown. Thus, shopping mall may use e-commerce platforms to create bundled digital offers with the combination of different retailers in mall.
An app for shopping mall can be developed so that retailers get to communicate with customers easily. Therefore, they get to connect the physical world with digital services. In summary, digital program is an important factor of competitive strategy for existing shopping malls.
may feel reluctant to visit the mall with a poor environment. Massicotte et al.
(2011) reveals that the mall environment influences the behavioural responses of consumers which are cognitive, emotional and physiological. Calvo-Porral and Lévy-Mangin (2019) separated the environment of shopping mall into two categories, which are the design factor and the ambient factor.
2.3.5.1 Design factor
Design factor which is associated with the spatial arrangement including layout, textures, display and signs (Calvo-Porral and Lévy-Mangin, 2019). Besides, the design of the tangible elements such as decorations and greenery outside or inside the shopping mall influence the perception of customers. The first impression of a visitors is likely to be produced in part by the physical environment including interior design which is exposed. Positive perceptions on the interior design of shopping mall will provide a positive effect on desire to stay of shoppers.
Interestingly, the architecture of the mall has a clear impact on desire to stay and excitement (Wakefield and Baker, 1998). Shopping malls with boring layouts like single level L shapes could be at a disadvantage as compared with more creative layouts like multi-level star-shapes. Das and Varshneya (2017) demonstrated that interior design represented by high ceiling and roof have a positive impact on consumers’ emotions and mental richness. The aesthetic of a shopping mall potentially causes psychological fulfilment and generates higher levels of excitement and experiences that exceed the products and services normally sold in shopping malls (Kamarulzaman and Lih, 2010). This offers the opportunity for visitors to transform or change their perceived third world identity. Furthermore, the design of signboards within the shopping malls are significant as they are used for communication with visitors.
In this digital age, a brand’s social media likes and followers are considered monetary values (Marane, 2018). With the selfie-obsessed, hashtag- driven and influencer-based culture today, it is important for shopping malls to design iconic places for shoppers to notice and take photos. For example, the sky avenue light reflective floor in Genting Highland and the crystal fountain at Pavilion. There are many shoppers such as influencers on social media would like to leave a memory and post on their social media. Indirectly, more people
will get to know about the shopping mall and customer flow increases. However, this strategy is less suitable for shoppers who feel shy to take photographs when there are people looking around.
When consumers are satisfied with the design factor, retailers are able to reap many benefits, such as consumer loyalty and sustained profitability (Liu and Jang, 2009). Based on the research on Dick and Basu’s conceptual framework (1994), a real loyalty customer is one who has fairly good attitudes towards the retailer and possesses a strong repeat buying behaviour. In summary, a unique interior and exterior design of a shopping mall is the competitive strategy of the existing shopping mall.
2.3.5.2 Ambient Factor
Ambient elements are defined as the intangible environment features such as lighting, scent, aroma, background music, temperature and cleanliness (Calvo- Porral and Lévy-Mangin, 2019). These elements are able to influence on the consumer emotion and behaviour. Mattila and Wirtz (2001) investigated the influence of fragrance and music by using an experimental method. They manipulated fragrance and music in a field setting in three by three factorial designs and the results suggested a significant effect.
Shopping motivations include the interior and exterior atmosphere of the shopping mall as it is also part of their shopping experience and process.
Furthermore, some pleasant ambience stimuli like music, product videos, hands- on experience services and fragrance help customers to make positive purchasing decisions. Importantly, the entrance of a shopping mall has to make a friendly and warm welcome into an atmosphere that suits the style of shopping mall. Moreover, unhygienic and unmaintained washrooms are found to have a negative impact on evaluations, likelihood of purchase, judgment and willingness to pay for goods. 66% of the customers will reduce the duration staying at mall due to the poor hygiene of the shopping mall (Singh and Prashar, 2013).
In summary, the pleasant ambience of the malls, ergonomics, architecture, excitement and variety motivate the customers to stay longer have significant influence on the competitive strategies for existing shopping mall. (Craig and Turley, 2004). Positive perceptions of the mall atmosphere can impact
enthusiasm of visitors in a positive way. Management of mall shall provide attention to the environment not just during the design phases but also regularly by surveying mall customers on their views and repeat patronage their intentions.
Dennis et al. (2010) reveals that comfortable atmosphere can help create retail traffic, boost sales and customer spending.