MARKETING STRATEGIES FOR TARGETED MARKET SEGMENTS BASED ON SHOPPING MALL IMAGES Michael Adiwijaya Lecturer Staff, Petra Christian University Surabaya Email: [email protected]ABSTRACT This research examined the market segmentation based on shopping mall image. The shopping mall image is derived from the customer perception toward the performances of shopping mall attributes such as merchandising, accessibility, service, atmosphere, entertainment, food, and services. There are four results from the market segmentation processes; they are market or customer segments, customer demographic profile, customer shopping behavior description, customer perception and customer opinion toward the shopping mall image. Three market segments are revealed in this research; namely “Demander”, “Rationale”, and “Satisfier” in which each of market segment had difference perception toward the shopping mall image but they had the same shopping behavior 1
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Marketing Strategies for Targeted Market Segments Based on Shopping Mall Images
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MARKETING STRATEGIES FOR TARGETED MARKET SEGMENTS
BASED ON SHOPPING MALL IMAGES
Michael Adiwijaya
Lecturer Staff, Petra Christian University Surabaya
As can be seen on table 1.1, the cluster which has maximum average F score and
minimum standard deviation is cluster 3. It means that the ideal numbers of clusters for
market segmentation in this research are three clusters or three market segments.
5.1.2 Market Segment Analysis
5.1.2.1 Demographic Profile for Each Market Segment
The description of demographic profile for segment 1 is as follow: This segment
is dominated by female teenager with average age on 13-19 years old. Their marital
statuses are single with education background at senior high school and some of them at
bachelor level. They are student with monthly income below Rp 1 million (± US$ 100)
and only small number of them has income between Rp 1 – 3 million (± US$ 100 – 300)
per month. Meanwhile the description of demographic profile for segment 2 is as follow:
This segment is dominated by young female with average age on 20-25 years old. Their
marital statuses are single with education background at senior high school and small
number of them at bachelor level. Most of them work as an employee with monthly
income below Rp 1 million (± US$ 100) but also many of them have income between Rp
1 – 3 million (± US$ 100 – 300) per month. Finally for segment 3, the description of its
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demographic profile is as follow: This segment is dominated by male with average age on
20-25 years old. Their marital statuses are single and some of them are married with more
than one child. Most of them have education background at senior high school but also
many of them have bachelor level. They work as an employee with monthly income
below Rp 1 million (± US$ 100) but also some of them have income between Rp 1 – 3
million (± US$ 100 – 300) per month.
5.1.2.2 Shopping Behavior Description for Each Market Segment
The description of shopping behavior for segment 1 is as follow: most of them
visited mall 1-2 times per month but many of them also visited mall 3-4 times a month.
Their spending per visit below Rp 250.000,- (± US$ 25) but some of them also spent
between Rp 250.001 – Rp 500.000,- (± US$ 25 – 50) per visit. The desire to stay is 3-4
hours per visit but many of them also spent time less than 3 hours per visit. The majority
purchased 2-4 items per visit and many of them also purchased 5-6 items per visit. Most
of them are sure to come back again and doing shopping, but some of them are doubt
whether to come again next month for shopping.
The description of shopping behavior for segment 2 is as follow: most of them
visited mall 1-2 times per month and some of them also visited mall 3-4 times a month.
Their spending per visit below Rp 250.000,- (± US$ 25) but many of them also spent
between Rp 250.001 – Rp 500.000,- (± US$ 25 – 50) per visit. The desire to stay is 3-4
hours per visit and only small number of them who stayed less than 3 hours per visit. The
majority purchased 2 – 4 items per visit and some of them purchased only 1 item per
visit. Most of them are doubt whether to come again next month for shopping but some
of them are sure to come back again and doing shopping.
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The description of shopping mall behavior for segment 3 is as follow: most of
them visited mall 1-2 times and small number of them visited 3-4 times a month. Their
spending per visit below Rp 250.000,- (± US$ 25) and small number of them spent
between Rp 250.000 – Rp 500.000,- (± US$ 25 – 50) per visit. The desire to stay is 3-4
hours per visit but many of them also spent time less than 3 hours per visit. The majority
purchased 2-4 items per visit and some of them also purchased 5-6 items per visit. Most
of them are sure to come again next month for shopping and the rest are doubt about it.
5.1.2.3 Perception Description for Each Market Segment
For Segment 1, most of the performances of shopping mall attributes are
perceived important.. Therefore this segment 1 can be identified or named as
“Demander” because as the customer, this segment demand the entire attributes to
perform well in satisfying them.
In the meantime for Segment 2, some of the performances of shopping mall
attributes are perceived important and some are not. Therefore this segment 2 can be
identified or named as “Rationale” because it is the nature of customer to demand well
performances from shopping mall attribute in satisfying them but they didn’t demand the
entire variables and only for selected variables which they perceived important.
The last is for segment 3, some of the performances of shopping mall attributes
are perceived important and some are not. Therefore this segment 3 can be identified or
named as “Satisfier” because as the customer, this segment only need short number of
variables to be satisfied (easy to be satisfied). Meanwhile for others variables, they
perceived them as neutral.
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5.1.2.4 Opinion Description for Each Market Segment
Segment 1 or “Demander” segment refers TP as the convenience place where
they can do the shopping activities on many stores that offer many type of products with
good services and also can enjoy the atmosphere within the mall. In retail perspective,
this segment perceived that the quality performances of TP can be seen on
merchandising, service, and atmosphere dimension or attribute.
Meanwhile, segment 2 or “Rationale” segment refers TP as the strategic mall
because of its location in the center of Surabaya which ease the customer to access the
mall from many directions all around the city; also because of its history as the first mall
in Surabaya and because of many occasional entertainments such as celebrities visit,
exhibition, etc. In retail perspective, this segment perceived that the quality performances
of TP can be seen on accessibility and entertainment dimension or attribute.
Finally, segment 3 or “Satisfier” segment have the combination of opinion from
segment 1 and segment 2. Therefore in retail perspective, this segment perceived that the
quality performances of TP can be seen on merchandising, service, atmosphere,
accessibility, and entertainment dimension or attribute.
6.1 HYPOTHESES TEST
6.1.1 Hypothesis 1
Table 1.2: Multivariate Test
Multivariate Tests(c)
Effect Value FHypothesis
df
Error
dfSig.
CLUSTER Pillai's Trace 0.851 27.432 14 518 0.000
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Wilks' Lambda 0.265 34.778(a) 14 516 0.000
Hotelling's Trace 2.339 42.929 14 514 0.000
Roy's Largest Root2.133 78.909(b) 7 259 0.000
From table 1.2 Multivariate Test, on the cluster part showed that most of the significance
level for several test is below 0.1 (alpha 10%). This means that null hypothesis is rejected
or in another word that there are differences on perception toward the performances of
shopping mall attributes for each segment.
Table 1.3: Test of Between Subject Effects
Tests of Between-Subjects Effects
Source Dependent
Variable
Type III Sum of
Squares
d
f
Mean
Square F Sig.
CLUSTER
Merchandise 11.683 2 5.841 5.67 0.004
Access 34.21 2 17.105 46.779 0.000
Services 39.335 2 19.668 40.318 0.000
Atmosphere 48.581 2 24.29 39.051 0.000
Entertainment 29.686 2 14.843 39.619 0.000
Food 21.206 2 10.603 38.608 0.000
Safety 29.068 2 14.534 75.292 0.000
In addition, based on table 1.3 Test of between Subject Effects confirmed that the
significance level of the entire attributes is below 0.1 (alpha 10%). This evidence also
supported to reject null hypothesis or in another word that there are differences on
perception toward the performances of shopping mall attributes for each segment even
the perception for the performance of each attributes.
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6.1.2 Hypothesis 2
Table 1.4: Chi Square Test
Shopping Behavior Variables Chi-Square df Sig.
Frequency of Visit 3.089 6 0.798
Money Spent 8.148 4 0.086
Desire to Stay 8.636 6 0.195
Amount of Purchase 3.531 4 0.473
Re-patronage Intention 1.742 2 0.419
Based on table 1.4 can be seen for frequency of visit, desire to stay, amount of purchase,
and re-patronage intention variables had the significant level above the alpha 10% which
means for those variables; null hypothesis is accepted which means that each customer
segment does not perform different shopping behavior. But for money spent variable, it
had the significant level below the alpha 10% which means for that variable; null
hypothesis is rejected which means that each customer segment performs different
shopping behavior.
7.1 CONCLUSION
Hypothesis 1 has significant level below alpha score 10% which does not support
the hypothesis or in another word, each market segment has its own perception toward
the performances of shopping mal image. This hypothesis test result shows the significant
evidence for management of shopping mall to do market segmentation based on shopping
mall image for its market (customer) because customer perception toward shopping mall
image can not be generalized into one same perception.
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Meanwhile, hypothesis 2 has significant level above alpha score 10% which
supports the hypothesis or in another word, each market segment performs the same
shopping behavior. This hypothesis test result shows the significant evidence for
management of shopping mall not to use the customer shopping behavior as the
consideration in identifying potential market segment.
8.1 MARKETING STRATEGIES RECOMENDATIONS
Based on the research analysis result; there are three market segment revealed,
namely “Demander”, “Rationale”, and “Satisfier”. Market segment “Demander” refers
to customers who demand the entire shopping mall attributes to perform well in reaching
their expectation and satisfaction. Meanwhile market segment “Rationale” refers to
customers who are rationale that can balance between which attributes performances are
perceived important and which are not. Finally, market segment “Satisfier” refers to
customers who have less demand on the performances of shopping mall attributes.
Moreover, based on the observation and analysis the profile of each market
segment especially on the perception of each market segment toward the performance of
shopping mall attributes, then two potential market segments are identified; they are
“Rationale” and “Satisfier”.
The recommendations for marketing strategies in serving the target markets are
explained as follow: For merchandising attribute; the brand options variable is perceived
important which means the mall management should manage the stores or tenants within
mall to offer many brand options. Meanwhile for accessibility attribute; the road access to
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the mall is perceived important which means the mall management should coordinate
with the local government in providing good road access condition into the mall.
For service attribute; the personal service and amenities service should be
managed and be maintained well. Courtesy, prompt service and knowledge of the staff at
information desk are the important variables to be noticed on personal service. Therefore
mall management should schedule the training program for staffs at information desk in
order to prepare them to be courtesy to customer, having appropriate mall knowledge,
and help the customer promptly. While the restrooms which are clean, easy to be found,
and strategically located are the important variables to be noticed on amenities service.
Therefore mall management should monitor the cleaning service department and the
traffic into the restrooms location.
At the mean time, for atmosphere attributes; comfort situation within mall is
perceived as the important variable Therefore mall management should manage the
customer traffic to flow smoothly within each part of location within mall. For
entertainment attribute; both permanent and occasional entertainment are perceived
important. Therefore mall management should manage the contract with stores that
supporting the permanent entertainment such as cinema, game zone, toys stores, etc. In
addition, mall management can arrange many occasional entertainments such as live
music, performances by celebrity, conducting exhibition, etc to provide occasional
entertainment at the mall.
Finally for food attribute and service attribute; the entire variables are perceived
important. Therefore food court center, types of food offered, food price, and the quality
of food should be managed well by monitoring the performances of food department at
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the mall. Meanwhile the safety of the mall facilities such as escalator and lift, safety in all
mall areas such as restroom, parking space, and inside mall, safety of vehicle, and the
security guard on duty should be developed or at least maintained at the good level by
mall management through the monitoring of security department at the mall in
partnership with local police department and also through the coordination with its
customer via security campaign within mall.
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