The Relation Between the Customer Behavior and Shopping Centre Promotion

Title The relation between the customer behavior and shopping centre promotion Author(s) RISHI The relation between the customer behaviour and shopping centre promotion Citation Issue Date 22/3/2012 URL Rights 2002 http://hdl. handle. net/10722/28778 The author retains all proprietary rights, (such as patent rights) and the right to use in future works. The Relation between the Customer Behaviour and Shopping Centre Promotion: A Case Study of Whampoa Garden TSE Chun Wai DISSERTATION Submitted in partial fulfillment of the requirements for the degree of Master of Housing Management The University of Hong Kong

December 2002 DECLARATION i declare that this dissertation, entitled The relationship between the customer behaviours and shopping centre promotion: A case study of Whampoa Garden, represents my own work, except where due acknowledgement is made, and that it has not been previously included in a thesis, dissertation or report submitted to this University or other institution for a degree, diploma or other qualification. un Wai Acknowledgement This paper intends to show the relationship between the customer behaviors and shopping centre promotion, to understand the problem of the shopping entre by studying the customer behaviors and examining the shopping promotion strategies. Firstly the author sincerely thanks Mr. Bonny Chiu who has worked ? n Whampoa Garden ? n the property management department, for his assistance ? n providing information about the details of Whampoa Garden and promotion strategies. Secondly, thanks must be expressed to Ms. Candy Lam and Ms. Jessica Wong; classmates of Master of Housing Management have given valuable information regarding the shopping centre under their management. Thirdly, the author must also thank Ms.

June Yau and Mona So for helping with word processing and production of the final typescript and proofreading. Finally, the author wants to thank Dr. Eddie Hui, the supervisor of this dissertation, for his valuable guidance and support in the research of this paper. THE UNIVERSITY OF HONG KONG i. I Il W ir . J Thesis Collection Deposited by the Author Contents Acknowledgement Abstract 1. Introduction ti Am and objectives p. 1 1. 2 Methodologies 1. 3 Researchmethod I . 4 Implication of the study 1. 5 Sourceofdata 2. p. 2 p. 3 p. 3 p. 4 P. 4 Customer behavior and shopping centre p. 5 2. 1 The definition fcustomerbehaviour Dynamic customer behaviour Interaction Exchanges 2. 2 Why people go shopping 2. 3 Factors affecting shopping behaviours and motivations 2. 4 Changingofshoppinghabit 2. 5 Goal and characteristic of customer 2. 6 Conceptual models and customer characteristics 2. 1. 1 2. 1. 2 2. 1. 3 2. 6. 1 2. 6. 2 2. 6. 3 2. 6. 4 Huff1s topological model (1960) Timmermans’ conceptual model (1982) Sheth’s integrative theory 2. 6. 3. 1 Choicecalculus 2. 6. 3. 2 ShoppIng motives 2. 6. 3. 3 Shopping option Lindquist(1974-1975) 3. What is a “shopping centre”? 3. 1 The principle of a shopping centre

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Where will they go and why will they shop? Customers’ shopping habits and preference has changed over years. Most importantly, it has gone along with the development and construction of shopping centre. Now instead of shopping in the sheet, shopping in huge department stores is a new trend. This paper aims at assessing the factors in attributing to the shoppers’ decision by starting with a brief description of customer’s behavioural models and the development of shopping centre in Hong Kong. Determining elements include convenience, pleasant and entertainment environment, tenant mix, leisure facilities and catchment, etc.

Whampoa Garden is selected as the case study Overall, the findings shows active, well planned, coordinated and periodical promotion should be operated throughout the year. Besides promotion, the infrastructure of shopping centres also plays a vital role in deciding the retail pattern and the tenant mix. Therefore, active promotion activities and continual development of shopping centres should be used as the strategy to meet the ever-changing demand and improve the image of the centre for their specified clientele. 1. Inlroduction Shopping centres are vital to our economy.

Different planning of shopping centres causes different sizes and arrangements. However, all these planning would bear two purposes in mind – to provide an optimum retailing environment for the tenants and to meet the needs of customers. In recent decades, shopping centres are becoming increasingly important for the services they provide to individual consumers and many ways in which they benefit the communities in which they are located. Developers should want to know how and why people shop in their shopping centres, but others just have a fare dodging and walking in the centre.

From a commercial standpoint, it may distinguish consumer behaviour from other activities. This is the point for the shopping centre because profits are generated when consumers select the shopping centre rather than another. Consumers are more interested in the facilities provided by the shopping centres, so that they could spend their time arid money in there. The improvement of living standard in Hong Kong has to lead the transformation of shopping behaviour of the residents. Formerly, markets were just places where people gather together for retail activities.

Nowadays, shopping centres have become multifunctional, and it is an enclosed area not only for shopping, but also for entertainment and amusement. A successful shopping centre must have the right location, (easy to access) good management; effective marketing strategy arid the right tenant mix for the demographic profile of the population it serves. However, the attraction of the shopping centre will slip downwards or fade away with the passage of time: demographic changes, competition arising from the other new shopping centres, etc. All these pose as great challenge for the status of an existing shopping centre.

Therefore, strategies are required for rejuvenation. The aim far promoting shopping centres is to improve their overall commercial potentials and auxiliary facilities. In addition, the shoppers’ behaviors and characteristics, (preference, the choices ofthe retails shops, etc. ) as well as location of the shopping centre also have to consider. Furthermore, the competition from new shopping centres compels existing shopping centres to seek for the best ways and strategies to revive the business of a shopping centre. 1. 1 Aim and Objectives The aims of this study are to investigate and evaluate strategies for the shopping entre promotion in upgrading the value of a shopping centre. Factors such as marketing stand point, competition from other competitors, demographic of the surrounding areas, social and economic situation will be considered. In addition, this paper will study the consumer behaviour and characteristics, such as place of residence, mode oftransportation, frequency ofvisit and consumer images. The objectives ofthis study are as follows: I. I . i To conduct a literature review on the characteristics and the development 2 of shopping centre through a case study on “Whampoa Garden Shopping Centre” located at Hung Horn; . i . 2 To study the behaviour of the customers; i . 1. 3 To identify the decision problems and preferences ofthe customers; i . i . 4 To analyze the store image from the view ofthe customers; 1. 1. 5 To study why shopping centres require promotion strategies? and; i . 1 . 6 To examine the shopping centre promotion strategies; 12 Methodologies in the theoretical framework, reference has been made to relevant books, magazines, newspaper, annual reports, journals as well as data from census and government statistics. In addition, marketing, promotion and management of shopping centres will also be included.

In order to obtain an understanding of the relationship between the customer behaviours and shopping centre promotion, this essay will examine two broad measures. The frequency of visit, purpose, accessibility, facilities, image and overall impression of the shopping centre would be identified. Moreover, the age group, sex, place of living, working condition, income and household size of the customers will be studied. In order to examine the taxonomies adopted by previous researchers of consumer (spatial) shopping behaviour such as Shepherd and Thomas, (1980); Spiggle and Sewell, (1987).

The models such as Huffs topological model; Timmerman’s conceptual model; Sheth’s integrative theory and Lindquist will be reviewed. Those theories are focused on the perception of the shoppers relating to the shopping centre’s image. Through the above methods, developers can select the right tenants and promotion strategies to generate income and promote the shopping centre image. On the other hand, a successful shopping centre can through the information such as age, income group and the customers’ behaviour, can decide the trade of business and formulate promotion strategies to attract customers to visit. 1. 4 Implication ofihe Study

The study will find out the behaviours of customers, and the relationships among the tenants, developers and the customers. In addition, the shopping centre promotion will also influence the investment atmosphere and affect the income of the developers. The above study can be a reference for other aging shopping centres in carrying out revival programme. LS Source of Data This study is hard to get secondary data for the shopping condition since relevant parties are reluctant to provide their business strategies. Surveys would be carried out with the tenants and customers of the shopping centre in order to obtain the 4 first hand-data.

On the other hand. , through interviews with the management staff and office staff, more information and data can also be obtained. Surveys and questionnaires will be conducted to obtain the primary data. The questionnaire is printed in Chinese since the majority of’ Hong Kong’s population is Chinese. It contains questions about customer behaviour, personal particu1ar and the image of a shopping centre. 5 2. Customer Behaviour and Shopping Centre Customers spend their time in purchasing goods and services, at the appropriate places where they will visit. In addition, they also like to spend their leisure time for their aily activities such as entertainment, gathering arid shopping. Shopping centres provide them a place to meet these needs. What kind of shopping centre would be suitable for them; what kind of function and facilities should the centres have; what kind of market strategies and what kind of promotion can induce more customers to visit the centre. I [J1J1IIff According to Arnould, Price and Zinkham (2002), customer behaviours define as individuals or groups acquiring, using, and disposing of products, services, ideas, or experiences. Consumer behaviour also includes the acquisition and use of information.

Therefore, communicating with consumers and receiving feedback from them is a crucial part of consumer behaviour of interest to marketers. Consumers may consist of individuals or groups including families, clubs and organizations, purchasing units within corporations, and government departments. Consumer behaviour is the study of human responses to products, services, arid the marketing of products and services. This topic is of considerable importance to marketing managers and marketing researchers because the focus on the consumers is the key contribution of marketing to business practice.

Other business function (e. g. , finance, accounting and production) either neglect the consumer or overlook the consumer entirely. Organizations that lose sight of their consumers cannot compete effectively against firms that stay close to their consumers. Managers who really understand their customers develop better products and services, promote their products and services more effectively, and adopt marketing plans and strategies that foster sustainable competitive advantages for their products and services. Furthermore, managers who know their consumers cari reach and satisfy them more efficiently.

Such managers are important assets to any organization and are rewarded accordingly (Kardes 2002). The American Marketing Association defines consumer behaviour as “the dynamic interaction of affect and cognition, behaviour, arid environmental events by which human beings conduct the exchange aspects of their lives. ” There are at least three important ideas that pointed out in this definition: (1) consumer behaviour is dynamic; (2) it involves interactions between effect and cognitions, behaviours, and environmental events; and (3) it involves exchanges. The following implications are put forward. 2. 1. 1 namicCnsumer Behaviour Consumer behaviour is dynamic and means individual consumers, consumers groups, and society at ‘arge are constantly changing and evolving across time. 2. 1. 2 Interaction It means that to understand consumers and develop superior marketing strategies, we must understand what they think (cognitions) and feel (effect), what they do (behaviour, and the things and places (environmental) that influence and are 7 influenced by what consumers think, feel, and do. 2. 1. 3 Exchanges These make the definition of consumer behaviour consistent with current definitions of marketing that also emphasize exchange.

In fact, the role of marketing is to create exchanges with consumers by formulating and implementing marketing strategies (Peter and Olson, i 993). 2. 2 Why People GoShopping Why do people do the things they do? More specifically, why do they buy and consume the products, services, experiences, and brands they do? People always mention that when they are feeling low or want to reward themselves by shopping, and shopping can be interpreted as a pleasure or a self-gift. The role of shopping and purchasing has taken on dramatic new meaning and trend to be a recreational shopping.

The modem, self-enclosed shopping centre in all its variant forms has become a site to which consumers make frequent visits to satisfy a wide variety of needs including those aesthetic enjoyment, problem solving, and personal display. These trends lead the emergence of the largest shopping centre such as Disney World, Universal Studios, and the like. Such shopping centres provide retail environments combine in shopping and entertainment. Going shopping is a major source of relaxation as well as a household chore. [:1 When people realize that a good store exposed the greatest portion of its goods to he greatest number of its shoppers for the longest period of time, which put its merchandise in the path and the field of vision in a way that invites people for consideration. We’re all aware of how shopping means different things to different people at different times. We use shopping as therapy, reward, bribery, pastime, as an excuse to get out of the house, as a way to troll for potentia’ loved ones, as entertainment, as a forni of education or even workshop, as a way to kill time. There are compulsive shoppers doing serious damage to their bank accounts and credit ratings, who use shopping as a cry for help (Underhil, i 999, p. 5-96). People going to shopping centres as all new modem shopping centres provide leisure spaces and varies facilities such as mini cinema, indoor family games stores and funfafr style shops. In addition, the enclosed environment, controlled climate, patrol of centre’s security guards and the promotion events give customers a feeling of warmth, safety, comfort and satisfaction. In addition, people going shopping can be broadly divided into three categories, they visit the supermarket to buy household chores; occasional visits the regional shopping centre to buy fashion goods, elecirical app1iances and recently shopping centre as place for people gathering together and enjoy of fun. As Beddington stated in i 99 1 that shopping is a primary human activity in which almost every individual in civilized society Building and services for takes part, inevitably almost daily. shopping are as closely related to housing as those for education, health, administration and entertainment. Bund1in of products, product components, and services is an important consideration for manufacturers, retailers, and service providers bringing their goods and services to market. Bundling typically takes one or two forms: pure or mixed (Adams and Yellen, i 976).

There are four factors that affecting customers’ intention to buy product and service. (1) whether the product and service are pure and mixed; (2) the price discounts of a pure goods and service in comparison to the sum of the component of mixed; (3) the functional relationship among the components and (4) number of components. As more and more shopping centres established with the development of property market, it is undeniable that the competition becomes more intense. Also as the economy recession of Hong Kong has not yet fully recovered, customers cautiously evaluate the goods and services when they use their savings, and he anchor product and service that they can obtain as they are become extra pricesensitive. On the other hand,, Shenzhen, a city in mainland China just about one hour from Hong Kong by train, offers attractive entertainment facilities and low- priced retail goods in various shopping complex. To a certain extent, it actually draws much Hong Kong customers away from Hong Kong’ s more expensive stores and restaurants. In general, most retail shops inside shopping centres use lo price as its competitive tool to combat competition. It is not difficult to find that shopping malls range from metropolitan to eighborhood emphasize the concept of “Discount”, ” Mega Sale” it is especially obvious in some festivals which usually highlight the provision of ‘crazy sa1e during festival. As a result, the provision of discount become a general practice to marketers and become a norm to shoppers. Without the benefit of discount, customers are more Likely to delay their consumption or shift to others stores with the provision of discount. Thus, it is not a long-term measure to combat competition. Ji}! iIU1iIk’) tii flhlTi In the past, daily products such as provisions, wet foods are gathered in market; atching movie, shopping, entertainment, games and shopping are located in different places, performed at different times for specific people. Recently, the new modem shopping centres are characterised by new spatial form including leisure and consumption activities at the same place for different people. Centres are all modem and well-managed, together with special layout to attract tenants and customers. Many centres adopt the policy of encouraging independent and specialist outlets to provide more choices and lower price for the customers.

The concept of tenant mix is widely used is shopping management, it provides a one-stop services for the customers, so that customers can obtain their needs in one trip. In addition, the centre is also provided security patrol system, cleaning 11 service, temperature controlled and the promotion events, customers can enjoy their life here in the enclosed environment, make them feel warmth, comfort, safety and satisfaction. Furthermore, people are looked busier; they would like to save their shopping time and use for entertainment and pursuit of personal interest and other leisure time activities.

Nowadays, people are more enjoy the largest one-shop shopping centres, which providing them convenient and efficient shopping. In order to attract more customers visiting the shopping centre, shopping centre not only providing convenient and efficient shopping for customers, it also develop as a place for leisure activities and create particular themes to upgrade their ability to competition. Recently, there has been a trend for developer to provide mini cinemas, indoor family games stores, funfair style shops and food courts inside the shopping centre. Therefore, customers regard as part of their life or entertainment and enjoyment of their leisure time, this lead to increasing the pedestrian flow. In order to attract more pedestrian flow, developer recognized that some of the customers are only spent their leisure time in the centre without any purchasing. However, the large of pedestrian flow will induce investors and tenants to invest in the shopping centres, in which with recreational, entertainment and extra facilities. Finally, shoppers like to visit shopping centre when shopping promotion is held. As lifestyle of Hong Kong people is so excited, more and more shoppers strive for he feeling of relaxation during their weekends or holidays with families and 12 friends. They usually prefer to spend a day at shopping centre, which can provide one-stop services. 2. 5 Goal and Characteristic of CuMomer Women shop not out of devotional love for family members, and their shopping behaviours is an investment in their families and relationships with family members. Purchasers are rationalized not in terms of what was spent, but in terms of savings and thrift. The savings and thrift generated through shopping then constitute funds that can be given to dependents and descendents (Price, Arnould, Zirikhan, 2002). 6 Conceptual Mxle1s and Customer Characteristics In the following, the major ideas from and models derived by Huff, Timmerman, Sheth, Lindquist and Wee be briefly discussed. 2. 6. 1 Huff’s Topological Model (1960) It attempts to derive simple deductive models of consumer spatial behaviour and cognition, Potter (1982) considers that one ofthe landmarks was the graph theoretical or topological model of consumers space preferences developed by Huff(1960) (McGoldrick, Peter J, and Thompson, Mark G. (1992, p. 46)).

According to Huff, consumer spatial behaviour was determined by the interaction of three systems; the value, behaviour-space perception and movement imagery. These refer to (i) the geographical location of the consumer of the consumer and his/her personal traits; (ii) the perceived characteristics of the retail outlet; and (iii) the perceive and objective features 13 of the transport network and the mode of travel. 2. 6. 2 Timmermans’ ConceptiialModel (1982) The model suggests that the decision problem such as the type of goods to be bought, together with the consumers value system, information levels, etc. , efines a set of decision criteria for the consumer which conditions the perception of the objective physical environment containing all potential outlets (McGoldrick, Peter J, and Thompson, Mark G. (1992, p. 47)). The decision making process makes this model involves an evaluation of each destination, base on the rating to evaluate attributes and Timmerman assumes that consumer will chose their the destination with the highest scale value. In addition, he further points out that familiarity with the various shopping opportunities and whether they are within reasonable travel time are two important factors in this respect. . 6. 3 Sheth’s integrative theory Sheth formulates a theory of shopping behaviour and a theory of shopping preference. A theory of shopping behaviour includes four types of unexpected events can intervene between preference and behaviour, such as events occur between the time and place when shopping preference and intentions are established and when actual shopping behaviour takes place (McGoldrick, Peter J and Thompson, Mark G. (1992, p. 47)). Sheth further postulated three basic constructions interact to determine a shopper’ s preference or shopping predisposition. 14 2. 6. 3. Choice calculus Sheth used three systems such as sequential, dominant and tradeoff as the first construct by which consumers may match their shopping motives with their shopping operation. In which sequential calculus eliminated shopping options that do not satisfy this motive until all shopping motives have been utilized. Tradeoff calculus involves the evaluation of each shopping option on aU shopping motives simulianeously to obtain an overall acceptability score. Finally, dominant calculus evaluates each shopping option only on the most impor. ant shopping motive. 2. 6. 3. 2 Slmppingmotives

Shopping motives refer to shopper’s needs and wants related to the choice that shoppers looking for. In 1983, Sheth provided a distinction between functional needs and non-functional needs; functional need is the shoppers need for the low prices or some products such as food, and non-functional need is the shoppers want to shop just for relieve boredom or some products such as clothes. In addition, Sheth mentioned that personal values, social values and epistemic values influence shopper’s shopping motives. He further mentioned that special products also can influence shopper’ s motives. 2. 6. 3. Shopping option According to Sheth, shopping options are determined by three market factors such as location, retail structure and positing/image. 15 2. 6. 4 Lindguist (1974-1975) Store image attributes groupings (McGoldrick, Peter J, and Thompson, Mark G. (1992, p. 59)). In this mode1 it describes nine store image attributes, which contributes to image formation or to favourable/unfavourable consumer attitudes towards outlets of various types. 2. 7 Shopping Centre Image Attributes AccordIng to Wee (1986) a basket of 27 attributes was worked out though an examination of coefficient alpha values.

It was thought to adequately represent the domain of shopping centre image. By grouping the 27 attributes into different categories, 8 major factors of the customers towards store image are come out for ease analysis. Detail ofthe factor analysis is as follows:- Factor 1: Recreational Experience According to Wee, this factor accounts for 3 1 . 2% of the variance and incorporates most of the “activity oriented”. These are, in descending order of leadings, a place to spend time, an “in place” to go, a place to go when the weather is bad, a place to take children and a place to eat or drink. Two feature related variables, ecor and spaciousness, also lead significantly and are consistent with this interpretation. Factor 2: JJr Friendliness This label was chosen to describe the group of variables loading with factor 2. Most of these attributes are features, which make the centre an easier and more 16 pleasant place to use. These attributes that are unique to this factor are the helpfulness of store staff, friendliness of the atmosphere, standard of security, toilet facilIties, seating area and air condoning. The two other attributes, place to eat or drink and a place to take children, load higher with factor i.

Factor3: Stores It comprises the four attributes relating to stores at the center, rather than the centre itself. These rated the choice of major stores, the variety of stores, the product selection available within the stores and the general quality ofthe stores. Factor 4: Quality of Environment It combines the four attributes relating to the appearance and design of the centre, namely, cleanliness, lighting, spaciousness and decor. Factor 5: Ease ofUse by Car It represents the level of accessibility to car users, who tend to be in the majority at this centre. t is possibly surprising that layout loaded within this factor, rather than factor 2 or 4. This could suggest that the layout of at very large centre is associated more strongly with accessibility than with the internal feature of the centre. Factor6: Others Factor 6 was labeled “crowding” incorporating the level of crowds and the number of undesirable characters. Factor 7, labeled “ease of use by bus” combines the opening hours and access by bus; this provides a reminder that opening hours are, 17 in effect one element of accessibility. Only on attribute loads significantly ithin factor 8, the general leveL of prices. In this essay, survey will be conducted by using some attributes, which are mentioned above, for the analysis of the consumer behaviour of Whampoa. 18 3. What is a “SltoppingCentre”? The use of the world “mall” to describe a pedestrianised shopping street almost certainly originated in North America in ari effort to convey a greater sense of space, quality and elegance than is normally associated with an arcade. Malls are usually covered and wide enough to provide a central area for planting, seating, fountains and other furniture.

Although shops fronting an arcade are usually smaller than those in a shopping mall, the basic difference between a mall and an arcade lies not in the types of shops found in them but in the volume of space between the frontages (Northen and Flaskoll 1977). The shopping centre is distinct from other forms of commercial retail development. It is a specialized, commercial land use and building type, which today is found throughout the world but until the late 1 970s thrived primarily in America suburbia, occurring only rarely in downtowns or rural areas. Over the years, it has been ransformed from a suburban concept to one with much broader and varies applications (Shopping Centre Development Handbook). According to Urban Land Institutes (1990), shopping centre is defined as “A group of commercial establishments, planned, developed, owned, arid managed as a unit related in location, size and type of shops to the trade area it serves; it provides on-site parking in definite relationship to the types and sizes ofthe store (James (1993, p. 3)). Recently, Urban Land Institutes has redefmed this definition so that a shopping centre must have a minimum of three commercial establishments, and, in the case of urban 9 shopping centres, their on-site parking needs may be related not only to the types and sizes of the stores but also to the availability of of-site parkings and alternate means of access (Shopping Centre Development Handbook). However, it is not easy to derive a universally accepted definition of shopping centre because of several reasons. Shopping centres range in size from a very few shops to those with hundred number of shops, offering a full range of shopping provisions including large department stores, restaurants, supermarkets, entertainment facilities and parking spaces as well. 3. 1 The Principle ola ShopphigCentre

The successful of a shopping centre depends on many factors such as design and layout, its locatIon, its catehment areas, the way the business is run by the shop traders and whether there is any competition within the vicinity. ! Before constructing of the shopping centre, developer should understand the position of the centre in order to avoid competition with other centres The centre will depend on the size and the population to classify as community shopping centre or regional shopping centre. Also it will depend on the location that the transport can be reached together with visiting carparks.

Then, developers should identify the role and function, and choose the most 20 suitable theme and target groups of retailers and shoppers. For any type of shopping centre will play different role and provide different goods and services to the specified catchment population. A good shopping centre requires to strength its image by special features and good facilities. 3. 1. 2 Locationnfa Shopping Centre Location is one of the paramount important elements for a shopping centre, accessibility and visibility should be taken into account. The best location for a shopping centre should e located at strategic location in well-developed district such as area close to railway stations or any transport interchanges. Retailers will decide to run their business as high visibility and easy accessibility of a shopping centre will increase the pedestrian flow; also shoppers from other districts will be attracted to this centre. 3. 1. 3 Catchment Area To defme the catchment area is one of the major factors affecting the success of a shopping centre, developer should understand the needs of customers, and tailor-made the design and different type of shopping centre will have different criteria for catchment area. . 1. 4 Accessibility and Interlink The key to a successnul shopping centre plan is to attracted more pedestrians as they are potential shoppers. The greater the concentration, the better the shops will be run their business. The City Plaza at Taikoo Shing and New Town Plaza in Shatin, pedestrians have passed through the shopping centre; 2! the provision of covered footbridge linking to all shopping centres is an example of diverting the pedestrian flow. The more time the shoppers stayed in the shopping centre, the more chance they spend.

The trades of the retailers must make special arrangement, so that shoppers visit all parts of the shopping centre will not feel tired and lose their interest. 3. 1. 5 Ten ant Mix Selection of well-known brand names and anchor tenants is critical to strengthen the centre and appeal to others as pulling effect may be result by such tenant. It can also attract shoppers to visit all parts of the centre and maximize the attraction ofprospective customers. However, the routing of centre should be well designed and balanced for all retailers.

The success of a shopping centre may rely on proper designation of trades in its appropriate locations to create pedestrian flow to induce shoppers. In addition, a trade balance is also good for a shopping centre. Apart from catering the local needs, anchor tenants may attract more shoppers. Major tenants such as department stores, supermarkets, large Chinese and Western restaurants, chain stores and entertainment facilities such as iceskate field and cinemas. Beside the desigiated trades, some criterion for different trades should be considered. a) licensing requirements such as food premises require the provision of drainage, extra water supply and exhaust arrangement; (b) eleclricity supply for fast food shop and large consumption of electricity imdes; 22 (e) air conditioning for some trades require addition cold water and (d) floor loading will be considered for some trades that require installing heavy machines. 3. 1. 6 DecoratiGn hi order to attract tenants running their business in the shopping centre, the decorations should be glamour and attractive to induce potential and anchor raders. The layout of the shopping centre is a key factor in patronage and increasing the business promising. In addition, it is also ensured that customers could be convenient and easy to follow the route; the signages are easily to identify, so that to attract them from one end to the others, and from the first floor to the second, third and up to the fourth floor, etc. Furthermore, any dead-end to be avoided, and harmony standard in design and layout of the shopping centre should be included the design of the shopfront entrances and finishes. . 1. 7 Sliopfront Standard glass panels are installed in the front of each shop, which enable tenants to display their products or demonstrate the services to be provided in order to attract customers. To maintain a continuity and uniformity of the shopfront, all tenants are requested to make use of the metal facade above the glass panels to place their trade name and logo. 3. 1. 8 Entrances The entrances for a shopping centre must be as attractive as possible; locations 23 must be at a concentration of pedestrian flow.

In addition, a successful shopping centre should provide enough customers flow especially in peak hour and season, and each entrance should be conspicuous and brig1t enough to draw attention of the pedestrians arid passers-by. It also is as wide or grand a possible so as to produce an elegant or classic image in order to impress both tenants and shoppers. A narrow entrance gives an unpleasant outlook and is unattractive. 3. 1. 9 Finishes The finishes should make customers feel comfortable, in which colour should be consistent with the theme of the shopping centre.

The external wail facade of the shopping centre should be furnished with pink and yellow tiles together with tempered glass glazing, in which light coloured materials could brighten up the appearance of the shopping centre. For internal wall facade with the corridors, mirrors should be installed on the wall. It makes customers feel more comfortable as space in the corridor looks like ‘arger. In addition, in the prominent places, the wall should be covered by stainless steel, porcelain enamel or coated metal cladding. Furthermore, floors could be applied ceramic tiles and granite tiles in the open areas.

However, for those areas in the centre of the shopping centre could pave granite slab and polished homogenous tiles to upgrade the shopping centre. Finally, the false ceiling with light trough could be covered the ceiling. 3. 1. 10 Signage System In order to direct pedestrian flow and strengthen the identity of the shopping 24 centre, a sizable name of the shopping centre with logo should be placed in the external wall; in which is easy eye-catching for the customers. In addition, an external advertising paniel for anchor tenants should be installed on the Mall facade the main street.

Furthermore, name of the tenants is shown in each floor together with a guide map, directories showing each tenant at each floor on the wall near the escalators and staircases. Main directories showing tenants under different trade groups can be installed at the main access to facilities customers to identify and locate specified trade more easily. However, restriction must also be imposed on the size, colour and method of illuminating the signboards so as to obtain a better appearance as a whole. The amount of wording used and the size of lettering should be strictly controlled. . 1. 11 Marketing Marketing in which plays an Important role In the retailing business. the chief target is provided a pleasant environment for the customers to spend their money, while tenants to promote their sales. The duty ofthe marketing people must realize that the aggressive advertising and promotion campaigns required huge amounts to pay for such activities. In addition, the on-going market analysis to explore the ever changing of market conditions, customers’ behaviours, purchasing power, attitude, social taste and trend should be studied to adapt the change.

Market exposure is an important to gain the latest market intelligence, so that pro-active strategies could be formulated to strike for survival and expansion. 3. 1. 12 Management 25 A successful centre can also be attributed to an efficient and effective management; management a centre is a challenging role that requires all ski11s knowledge of a professional Management Company. From the shop tenants’ point of view, they desire reasonable profits, while from the customers’ point of view; they expect an attractive, comfortable and constant flow of traders.

Due to face with ever changing environment, high expectation from the tenants and customers, and the competitiveness in the vicinity, it is essential that effective and efficient management together with innovative marketing concepts should be adapted. 3. 1. 13 Promotion The centre should be designed to strengthen promotional and publicity activities with an aim to draw the public’s awareness to generate traffic and patronage, so as to create additional sales. More creative and innovative promotion activities, free coupons for shopping arid particular prize winning events will be introduced.

In additIon variety show features and popular artists will be invited during holIdays. Promotion campaign will include: to work out promotional programmes schedules to be linked with the theme of the centre; to arrange seasonal and festival decorations; to issue shopping guide, display panels and newsletter; to maintain a web site to publicize information and activities relating to the Mall; arid arrange gatherings and meetings with shop tenants, district Councils and community groups. oT;u) ifs] s] sjflfl 26 Much of the impetus for shopping centre development came from USA and by the id-1950s; three main types of shopping centre had been recognized by developers, architects, plamiers and geographers (Dawson 1983). Shopping centres were originally divided into three principal types – neighbourhood, community and regional; recently, the development of specialized markets opportunity, numerous types of shopping centres have evolved. The acceptance of this three-fold classification has become one of the established truths of modern urban geography and remained in common use despite the subsequent development ofmany centres which clearly do not fit any ofthe three ategories. The classification has become less meaningnzl because there are increases in the numbers of centres arid the irmovations in tenant policy design, location and development practices (Dawson 1983). The increase in hybrid shopping centre makes the types of shopping centres difficult to distinguish; therefore the major tenant classifications and to a lesser extent the centre size and trade area determinate the type of centre. 4_ ff1rf ;i;rn; i The neighbourhood shopping centres provide for the sale of convenience goods such as food, drugs, sundries and personal services.

This centre is usually based on a supermarket and covers a wide range of convenience goods including personal services such as laundry, dry cleaning and shoe repairs. It serves a localized catchment population less than 50,000. (Planning Department, 2001). It provides convenience goods and services which 27 consumers needs immediately and frequently. Shoppers as a rule find it most convenient to buy such goods and services near home or near workplace. Majority ofthis shopping centre is located in public housing estates. Most are less than 30,000-100,000 square feet (Shopping Centre Development

Handbook, 1999). Typical Gross Leasable area is 50,000 square feet. Shopping centres locate in public and private housing estates are typical example such as Metiopolis Plaza locates at Sheung Shui near the Kowloon Canton Railway. The shopping arcade is on level I and 2 just underneath the three domestic blocks, with 60 shops of a total rentable area of 56,433 square feet. There are 129 private car and i i 9 bicycle parking spaces respectively. The centre is also accessible by public bus, public light bus and taxi, In addition, there are 22 lorry carpark spaces and 2 cargo lifts for loading and unloading.

Between level i and 2, there are 2 escalators for customers. The centre is satisfied for local residents’ need as it includes food & beverage shops, convenience shops, boutique shops, shoes and leather shops, electrical appliance shops and others. 3. 2. 2 The Crnmnunity Shopping Centre Community shopping centre is built around a small department store or variety stores as anchor tenant. In addition to a supermarket provides convenience goods and offers a wide range of comparison goods and personal services. It usually locates in new town centre with convenient transportation network and erves a catehment population of about 50,000 to 1,OOOOOO (Planning Department, 2001). The range of the area is 100,000-450,000 square feet (Shopping Centre Development Handbook, 1999). Typical Gross rental area is 28 150,000 square feet. This type of shopping cenfre also offers greater depth and range of merchandise and goods than neighbourhood shopping centre. It provides certain categories of goods, particularly commodities, which are less likely to be found in regional shopping centre. It attracts shoppers through the provision offull range ofshopping faciLities and goods. The maIn attraction ofthis kind f centre is usually the department store or some anchor tenants like ParkN Super Store, McDonald’s Restaurant and Maxim’s Chinese Restaurant. On the other hand, neighbourhood shopping centres have potential power to be a community shopping centre as their sizes and populations are strong enough to support them, just as some community shopping centre can expand into regional shopping centre. Therefore, the position of community shopping centre is the “in-between” centre, and it is hard to categorize. Tuen Mun Town Plaza and Shatin New Town Plaza, Telford Garden in Kowloon Bay are categorized as regional shopping centre.

Shopping centres in Hong Kong such as Hang Fa Chuen in Chai Wan and City plaza in Taikoo Shing with several residential blocks in the vicinity, are categorized as community centres. 3. 2. 3 The Regional Shopping Cenfre Regional shopping centre usually has one or two full-line department stores, and the size can be range from 300,000 to 900,000 square feet, which can be served more than 150,000 populations. This type of shopping centre is a comparison trading centre, customers are visited on a regularly period or 29 occasional shopping trip to purchase goods such as fashion, shoes, furniture nd electrical appliances; customers usually make the prices comparison before they buy. It usually serves Hong Kong people as a whole. It includes local residents, office people as well as tourists. For example, Landmark at Central, it provides consumer durable goods, personal services as well as entertainment. The catchrnent area of this centre involving into different district areas and serves for large group of population. Shopping centres such as Pacific Place, Landmark, Time Square at Causeway Bay arid Ocean Terminal at Tsim Sha Tsui and Festival Walk that serve for people in different districts. . 2. 4 Specialty Shopping Centre J_n Hong Kong, this kind of shopping centre represents relatively small categories of the market, typical example such as golden Shopping Centre in Shamshuipo for various types ofcomputer hardware and software. Golden Shopping Arcade is suited at Yen Chow Street and Kwei Lin Street in Shamsbuipo district. It is just a few steps away from the Shamshuipo Mass Transit Railway station, and public buses, public light buses and taxi can also be accessed. There are about 70 shops occupying two levels of the arcade. Beside he retailing shops, there are shops selling computer hardware and software of various brands and models. No matter new and experienced computer users, the arcade attracts them as the centre provides various software and hardware at lower prices. 30 3. 3 The Development f Shopping Centre According to Schiller, i 985, the term of shopping centre is ambiguous in Britain. It can mean either a comprehensive shopping development, as it does it most other countries, or a clustering of traditional shops in a town centre. Town centre can include planned and unplanned retail areas; however shopping centre is often oosely used to mean a group of shops, which has been designed, planned, developed, owned, marketed and managed as a unit. Shopping centre is a planned assemblage of shop units which may or may not exist as part of sopping district, in which a shopping district can consist oftwo or more shopping centres. In Britain, many town centres has been developed as a shopping centre. According to McGildrick & Thompson, 1991), the massive suburban expansion in the last thirty to forty years has produced the features of urban landscape usually associated with the term “Shopping Centre”, but the British residential sprawl

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