The Study of Customer Behavior Satisfaction and Loyalty of Community Mall in Bangkok and Suburban Area YUDA LASORN A Thesis Submitted in Partial Fulfillment of the requirements For the Degree of Master of Business Administration International College University of the Thai Chamber of Commerce 2012 The Study of Customer Behavior Satisfaction and Loyalty of Community Mall in Bangkok and Suburban Area YUDA LASORN A Thesis Submitted in Partial Fulfillment of the requirements For the Degree of Master of Business Administration International College University of the Thai Chamber of Commerce 2012 Copyright by University of the Thai Chamber of Commerce Thesis Title The Study of Customer Behavior Satisfaction and Loyalty of Community Mall in Bangkok and Suburban Area Name Miss Yuda Lasorn Degree Master of Business Administration Major Field International Business Thesis Advisor Asst. Prof. Dr. Napawan Kananurak Graduate Year 2012 ABSTRACT This research study was to investigate the customer satisfaction and loyalty of community malls in Bangkok and suburban areas. This aim is supported by the following objectives: 1) to study the relation of image, experiential marketing and service quality on customer satisfaction on community malls. 2) to study the relation of customer satisfaction on customer loyalty in community mall. This study surveyed the community mall’s customer that use community mall services in Bangkok and suburban areas. The number of returned questionnaires was 400 and the data was analyzed by frequency, percentage, mean method, Simple regression and Multiple regression. The result of the preliminary study indicated that image, experiential marketing and service quality influenced customer satisfaction on community malls. Moreover, The community mall’s customer concern about service quality at the most which indicated by R-square value is 50.4% but they concern about experiential marketing at least which indicated by R-square 40.1%. i ACKNOWLEDGEMENTS I would like to express my most sincere to my academic advisor, Asst. Prof. Dr. Napawan Kananurak for support, suggestions, and encouragement during the process of completion my thesis. This work could not have been completed without his concern and understanding. I would also like to thank to the members of my advisory committee, Dr. Pitsamorn Kilenthong, Asst. Prof. Dr. Saran Ratanasithi, Dr. Theeranuch Pusaksrikit and Dr. Suthawan Chirapanda for their comments and suggestions to improve the quality of this thesis. Numerous individuals provided advice, encouragement, support and friendship that has helped me overcome difficulties and challenges throughout my graduate study. These include my colleagues and my friends and staffs in Global MBA at the University of Thai Chamber of Commerce. Finally, my deepest appreciation and thanks go to my family for their endless love, support, and encouragement and for providing me the life-long opportunities that have allowed me to reach this level of achievement. Miss Yuda Lasorn ii TABLE OF CONTENTS Abstract I Acknowledgements II Table of Contents III List of Tables V List of Figures VI Chapter 1 Introduction 1 Introduction and Problem Statement 1 Objectives 5 Research Questions 5 Scope of the Study 6 Expected Benefits 6 Operation Definition 6 Organization of the Study 7 Chapter 2 Literature Review 9 Theory and Related research 10 The review of the related theory 10 The conceptual of image, experiential marketing and service quality 12 The conceptual of customer satisfaction and customer loyalty 15 Conceptual Framework 23 Research Hypothesis 23 Chapter 3 Methodology 25 Research Design 25 Research Tools 27 Data Collection 29 Data Measurement and Analysis 30 iii TABLE OF CONTENTS (Continued) Chapter 4 Results 32 Summary demographic data by using descriptive statistic 33 The analysis level of agreement of the sample on image, experiential marketing, service quality, customer satisfaction and customer loyalty 40 The results of the relationship between image, experiential marketing, service quality, customer satisfaction and customer loyalty 44 Summary of hypothesis testing results 52 Chapter 5 Conclusion and Discussion 53 Conclusion 54 Discussion 57 Implication for Business 58 Limitations & Further Research 60 REFERENCES 61 APPENDICES 70 Appendix 1: Questionnaire 71 Appendix 2: List of Community mall 77 iv LIST OF TABLES Table 2.1 The Strategic experiential modules 14 3.1 The number of community mall separate by zone 26 4.1 Age of the respondents 33 4.2 Gender data analysis 33 4.3 Marital status data analysis 34 4.4 Education data analysis 34 4.5 Occupation data analysis 35 4.6 Monthly income data analysis 35 4.7 Address data analysis 36 4.8 The result of preference rankings on various shopping place 37 4.9 The result of the patronage product and service of community malls 38 4.10 The results of the percentage of the reason to use the service of community mall 39 4.11 The analysis level of agreement of Community mall customer satisfaction and customer loyalty on its related factors 40 4.12-14 The results of the relationship between image and customer satisfaction 45 4.15-17The results of the relationship between experiential marketing and customer satisfaction 47 4.18-20 The results of the relationship between service quality and customer satisfaction 48 4.21-23 The results of the relationship between customer satisfaction and customer loyalty 50 4.24 Summary of hypothesis testing results 52 v LIST OF FIGURE Figure 1.1 The line diagram of the growth in square meter that belong to each shopping place 3 1.2 The cumulative area of the supply of community mall in square meter in Bangkok for the year of 2012-2013 (forecast) 4 2.1 Theory of planned behavior framework 10 2.2 The model of expectancy disconfirmation (EDT) framework 11 2.3 The strategic experiential modules 13 2.4 The difference between experience and experiential marketing 18 2.5 Conceptual Framework 22 vi CHAPTER 1 INTRODUCTION 1.1 Introduction and Problem Statement 1.1.1 Introduction The retailing industry in Thailand has developed from a traditional and backward industry into a modern and vibrant industry as any retail industry in the world. Moreover, wholesale and retail trade is 13.4 percent of GDP in 2012 (www.bot.or.th). At the present, the economy grows rapidly and accompanying with the increase of the population in Bangkok and suburban area. Moreover, a booming residential projects especially in vertical way such as condominiums in city areas and developed housing projects in suburban areas to support the growth of the demand of residents which is the cause of the expansion of the number of retail business to serve those demand in every area, especially for community malls which are increasing rapidly as well. The number of community malls has become widespread around Bangkok and suburban area as following: eleven locations in Bangkok central zone, thirty locations in Bangkok southern zone, twelve locations in Bangkok northern zone, eleven locations in Bangkok eastern zone, five locations in Bangkok-Thonburi northern zone, nine locations in Bangkok southern zone, two locations in Nonthaburi, four locations in Pathumthani, two locations in Samutprakarn, one location in Samutsakorn and two locations in Nakornpathom. Thereore, the total is eighty-six locations in nowadays (March 2013). Moreover, there are almost 30 projects of community malls that are under construction and expected to be opened in 2013. Community malls are becoming a part of everyday life, especially on Sukhumvit road which can be found at almost every corner. Today, the community malls are the available in many neighborhoods like shopping center generating the new experience of shopping mall with difference images, unlike large-scale shopping mall such as Central Department store, The mall, Robinson, Seacon square, Future park that most urbanites are familiar with. 1 The “Community mall” or ''neighborhood shopping centers'' or ''retail parks'', these is shopping venues of the new era, which have become more and more popular with urbanites, basically where they offer a variety of services and goods that cater to modern lifestyles. You may find them among a collection of chic eateries and fast- food joints, a gourmet food markets, pet salon, kids' gyms, up-market spas and one- of-a-kind concept stores. So, these are the kind of business models that has its own characteristics or images in terms of the ways they develop and manage shopping mall by focus on the relaxing atmosphere with open-air concept and provide the spaces for rent which are available in both long and short term contracts. The design concepts is also important which could be the attractive image. Many malls are based on unique design concepts such as Asiatique, The Riverfront, The Promenade, Rama 2 park, Vue lifestyle community mall, Rain Hill, Suen Tued Jeeb (coming soon), Dragon mall (coming soon) and Taradbok Veang-pranakorn (coming soon) that make the customers feel like having a new experience, which community mall developers aim to attract their customers (base on information in March 2013). The physical patterns of community mall The physical patterns of community mall is open-air shopping center where there are open spaces in the front of the projects for car parking which generally are 1- 3 floor(s) of 1-3 building(s) allocated with an L shape or a U shape, and do not have connecting paths with air-conditioner between shops. 6 Patterns of community mall in Thailand (www.Siamfuture.com) 1. Neighborhood shopping center Neighborhood shopping center is small open-air shopping mall nearby residence areas designed with patterns for customers’ conveniency for buying consumer goods or something that are used in daily life. 2. Convenience center They have the tenants just 2-3 shops such as auto service center, convenience store, video rental shops of academic institutes, etc. 3. Stand-Alone retail store Stand-Alone retail store has about ½ rai or 800 SQM available area on the main road or main soi which has only one tenant such as an auto service center or a convenience store or a retailer shop.