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Michael Adiwijaya
Lecturer Staff, Petra Christian University Surabaya
Email: michaels@peter.petra.ac.id
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
entertainment, food, and services. There are four results from the market segmentation
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 except for the amount of money spent per visit variable. Through the analysis of
each market segments profile, then two segments, namely “Rationale” and “Satisfier”,
are identified as potential target market. Finally the marketing strategies based on
shopping mall image are developed for potential target market segments.
Keywords:
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1.1 BACKGROUNDS
Nowadays one of the global market main challenges for shopping mall industry is
the intense competition between the shopping mall both in the same region and also in
the different region as well. (Soriano, 2003). This competition becomes more intense
because the shopping malls not only compete with the other shopping malls but also with
the other shopping centers format such as strip centers. Beside that, the shopping malls
also have to compete with the indirect competitors both for the stores formats such as
department stores, specialty stores, category specialist etc and for the non store formats
such as online retailers, television home shopping, direct selling, etc as well. (Levy &
Another global market main challenge of shopping mall industry is the changing
of consumer market. Spurred by several demographic and life style trend, consumers
smaller households due to the lower birth rate, higher divorce rate, greater double
several industry practitioners and academic experts have expressed the benefits of
those segments and differentiating the shopping mall’s attributes (Alexander &
Muchlebach, 1992, p.75). Shopping malls management realized the efficiency and
effectiveness of targeting a few segment of the market. Before target markets can be
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selected, the market must be segmented into meaningful group that can be realistically
The understanding for the need and characteristic of each customer segment gives
strategies in order to attract potential customer segments which result the increasing
visitor traffic and the increasing of tenants’ revenue within the shopping mall.
the developed and developing countries that leads to tight competition within shopping
centers, but although there are so many shopping malls even in the same area, however
each of shopping mall has its own image in the customer perception. Shopping mall
attributes created distinctive shopping mall image as the result of the combination of
several attributes performance within the mall (Levy and Weitz, 2007, p.192).
2.1.1.1 Merchandising
product of shopping center based on Berman and Evans study (as cited on Sit et al. 2003).
The roles of merchandising are also supported by Wakerfield and Baker (1998) that
highlighted the merchandising and tenant variety as stimuli that induce purchasing in a
shopping mall setting and thus influence the consumer image of the mall.
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2.1.1.2 Accessibility
center (Levy and Weitz, 2007, p.594). Accessibility can be further divided into macro
accessibility and micro accessibility. Macro accessibility concerns access road condition
to the center and the proximity of the center from the customer’s work place or residence.
Meanwhile according to Sit et al. (2003), the micro accessibility refers to parking
facilities within the center and the ease of navigation within the shopping center. The
definition of accessibility is close related with the site selection process and layout
2.1.1.3 Service
courtesy, knowledge, and friendliness. Thus these services can be classified as personal
service. By Lovelock et al (as cited in Sit et al, 2003). However, according to Berman &
Evans (as cited in Sit et al, 2003) besides personal service, shopping mall also provides
communal services in terms of ambulance such as escalators, lifts, and sign boards and
amenities such as restrooms. Sit et al. (2003) stated that both personal and communal
services are central to the shopping mall image because they represent the augmented
product that support the core product (merchandising) and also add value to the total
2.1.1.4 Atmospherics
lighting, colors, music, and scent to stimulate customer’s perceptual and emotional
response and ultimately to affect their purchase behavior (Levy & Weitz, 2007, p.510).
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According to Smith and Burns (as cited on Sit et al, 2003), the atmospherics are critical
because they act as environmental cues that consumers use to imply the quality of a
2.1.1.5 Entertainment
shopping experience, which in turn can entice consumer patronage. Entertainment in the
shopping center can be categorized into special event entertainment and specialty
entertainment. The key distinction between these two types of entertainment is the length
seasonal basis for a short period of time. Conversely, specialty entertainment is generally
incorporated into a shopping center’s property for longer duration (Haynes & Talpade,
1996).
2.1.1.6 Food
2.1.1.7 Security
Besides attracting consumers, shopping centers also appeal to the criminals. The
consumer behavior literature by Schiffman & Kanuk has revealed that many consumers
are risk averse and thus they may be reluctant to visit a shopping center that is perceived
to be dangerous (as cited in Sit et al. 2003). Despite its significance, Sit et al. (2003)
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elucidate that limited studies have examined the contribution of security to shopping
center image. There are three security variables; they are quality of the center, safe place
interprets stimuli into a meaningful and coherent picture of the world (Schiffman and
Kanuk, 2004, p.158). Meanwhile customer perception according to Cutlipp (1999, p.120)
is the interpreted of scene of actions, included people, places, actions, and entire range of
phenomena, which is give perceptions of that scene to the customer and respond based on
the perception.
Two individuals may be exposed to the same stimuli under the same apparent
conditions, but how each person recognizes, selects, organizes, and interprets this stimuli
is highly individual process based on each person’s own need, values, and expectation.
distinct subsets of consumers with common needs or characteristics and selecting one or
more segments to target with a distinct marketing mix (Schiffman and Kanuk, 2004,
p.50). Based on Kotler, there are two kind bases for market segmentation. They are
descriptive base and causal base (as cited in Lee Hew & Fairhurst, 2000). The descriptive
product usage and brand loyalty as the characteristic of customer in the market.
Demographic and socioeconomic bases, which include age, gender, education, marital
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status, and life cycle stage, have been utilized most frequently. There has been empirical
support for the validity of using the descriptive segmentation bases (Plummer, 1974).
perceptions, benefits and usage situation. These bases typically are preferred over
descriptive ones, by academicians and practitioners, because of their link to the actual
behavior of the consumer. There has been empirical support for the validity of using the
This research is started with the main challenges that the shopping malls
management faced nowadays. Those main challenges replace the mass marketing
strategy into the segmented marketing strategy for shopping mall management. Moreover
this research did causal market segmentation based on shopping mall image. The next
phase is the market targeting process that was conducted by measuring each market
segment based on their perception toward the performances of shopping mall attributes
and based on their shopping behavior in order to identify and to select the potential
After finding the potential market segments together with their perception
information and their shopping behavior; then the development of marketing strategy can
be established. The summary of the theoretical framework can be seen as flow chart on
figure 1.1
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Figure 1.1 Conceptual Framework Chart
Target Market
Marketing
Strategies
customer shopping behavior, customer perception towards shopping mall image and
the customer’s opinion toward Tunjungan Plaza Surabaya as the places (object) of the
research.
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4. To develop marketing strategy based on shopping mall image for target markets.
“How to formulate the marketing strategies for shopping mall based on shopping mall
image in order to attract the targeted potential market segments to visit and to shop at the
mall?”
3.1.3 Hypotheses
Hypothesis 1:
H0: There are no differences of customer perception toward shopping mall image for each
market segment
H1: There are differences of customer perception toward shopping mall image for each
market segments.
Hypothesis 2:
H0: Each customer segment does not perform different shopping behavior
The place for this research will be done at Tunjungan Plaza (TP) which is located
place of research are as follow; firstly TP is the largest shopping center in Indonesia,
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4.1.2 Instrument Research Design
There were four sections of questions on the questionnaire design; they are the
perception questions and the customer opinion question. The first section of the
the customers such as gender, age, marital status, education background, occupation, and
monthly income. At the mean time, the second section of the questionnaire is containing
some questions related with the customer shopping behavior information. There are six
shopping behavior that will be investigated; they are shopping preference, frequency of
visit per month, amount of money spent per visit, desire to stay, amount of variable
The third section of the questionnaire is containing some questions related with
performances. Finally, the last part is the open questions which are consisting of two
questions connected to the customer opinion regarding the shopping preferences and the
The population for this research is the entire customers of TP who were doing
shopping activities within the mall, at the time that the field study was conducted.
Therefore the customers who were not doing the shopping activities at that moment were
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4.1.4 Sampling Type and Method
This research used the non-probability sampling as the type of sampling design
Since standard value of ordinal data is similar to nominal data then the maximum
value of the variance (quadratic standard deviation) is 0.25. It is gathered by multiply the
The number of observation n for unknown size of population will be count by:
n=
(z )
α /2 2
pq
2
D
In this research, the significant level or alpha score is determined 10% and the
standard for error is also determined 10%. Then by using the formulation, the total
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4.1.6.2 Factor Analysis
This analysis eased the researcher in making general interpretation toward the
4.1.6.3 ANOVA
This analysis is used to support the cluster analysis to determine the ideal number
of cluster by observing the trade off between the average F score and the standard
deviation. Ideal cluster has maximum average F score and minimum standard deviation.
4.1.6.4 MANOVA
This analysis is used to test the hypothesis 1. The determination whether to reject
or to receive null hypothesis can be used by observing the significance level on the
The result from this analysis is the identification of the relationship between
segments’ perception toward mall attributes performances with their shopping behavior.
This analysis is used to describe the profile regarding the demographic profile, the
shopping behavior description, the customer perception, and the customer opinion for
each market segment. Then next phase is to identify the potential customer segments.
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5.1 DATA ANALYSIS
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.
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
demographic profile is as follow: This segment is dominated by male with average age on
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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
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
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
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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.
“Demander” because as the customer, this segment demand the entire attributes to
attributes are perceived important and some are not. Therefore this segment 2 can be
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
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5.1.2.4 Opinion Description for Each Market Segment
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,
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
exhibition, etc. In retail perspective, this segment perceived that the quality performances
segment 1 and segment 2. Therefore in retail perspective, this segment perceived that the
6.1.1 Hypothesis 1
Multivariate Tests(c)
Hypothesis Error
Effect Value F Sig.
df df
CLUSTER
Pillai's Trace
0.851 27.432 14 518 0.000
Wilks' Lambda 0.265 34.778(a) 14 516 0.000
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Hotelling's Trace
2.339 42.929 14 514 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
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
6.1.2 Hypothesis 2
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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
mall image for its market (customer) because customer perception toward shopping mall
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
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8.1 MARKETING STRATEGIES RECOMENDATIONS
Based on the research analysis result; there are three market segment revealed,
to customers who demand the entire shopping mall attributes to perform well in reaching
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
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
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
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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
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
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
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
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
partnership with local police department and also through the coordination with its
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