THE IMPACT OF THE DEVELOPMENT OF CONVENIENCE SHOPPING CENTRES ON THE PATRONAGE OF REGIONAL SHOPPING CENTRES
by
STEPHANUS HENDRIK OLIVIER
SHORT DISSERTATION
Submitted in partial fulfilment of the requirements for the degree
MAGISTER COMMERCII
in
BUSINESS MANAGEMENT
in the
FACULTY OF MANAGEMENT
at the
UNIVERSITY OF JOHANNESBURG
Supervisor: Prof. F. J. HERBST
May 2007 ACKNOWLEDGEMENTS
The following contributed to the completion of this short dissertation and I thank each of them:
• Prof. F. J. Herbst, my supervisor, for his guidance and assistance.
• Robert Crawford at the Statistical Consultation Service for his assistance with the questionnaire design and statistical analysis.
• Family and friends for their interest.
• Last, but not least, my wife and children for their patience, support and encouragement.
TABLE OF CONTENTS Page CHAPTER 1 ORIENTATION
1.1 INTRODUCTION 1 1.2 PROBLEM STATEMENT 2 1.3 RESEARCH OBJECTIVES 4 1.3.1 Primary objective 4 1.3.2 Secondary objectives 4 1.4 LITERATURE REVIEW 4 1.4.1 Information on shopping centre development 4 1.4.2 Convenience shopping 4 1.4.3 Convenience and regional shopping centres 5 1.4.4 Shopping centre development 6 1.4.5 Past research on Convenience centres versus Regional 7 Shopping centres 1.4.6 Inadequate research 7 1.5 RESEARCH PROPOSITIONS 7 1.6 BENEFITS OF THE STUDY 8 1.7 CLARIFICATION OF KEY CONCEPTS 9 1.8 DEMARCATION AND SCOPE OF STUDY 10 1.9 RESEARCH DESIGN 10 1.9.1 Secondary data analysis 11 1.9.2 Surveys 12 1.10 SAMPLING 13 1.10.1 Mall intercept interviews 14 1.10.2 Household surveys 14 1.11 DATA COLLECTION 14 1.12 DATA ANALYSIS 15 1.13 CHAPTER OUTLINE 16
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Page CHAPTER 2 LITERATURE REVIEW
2.1 INTRODUCTION 18 2.2 THE CONCEPT OF PATRONAGE 18 2.2.1 The importance of patronage 18 2.2.2 Measurement of patronage 19 2.2.3 Profiling of potential shoppers 20 2.3 TRADE AREA OR CATCHMENT AREA 22 2.3.1 Primary zone or trade area 22 2.3.2 Secondary zone or trade area 23 2.3.3 Tertiary zone or trade area 23 2.4 TRADE AREA DEMARCATION 24 2.5 TYPES OF SHOPPING CENTRES 26 2.5.1 Garage stores 27 2.5.2 Convenience centres 28 2.5.3 Neighbourhood centres 28 2.5.4 Community centres 28 2.5.5 Power centres 29 2.5.6 Regional and Super-Regional Shopping centres 29 2.5.7 Theme centres 30 2.5.8 Lifestyle centres 30 2.6 CLASSIFICATION OF SHOPPING CENTRES 31 2.7 COMPETITION AMONG SHOPPING CENTRES 33 2.7.1 The trend of increased competition as a result of over- 33 development 2.7.2 Shopper motives related to competing shopping centres 34 2.7.3 Measures to remain competitive 35
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2.8 THE TREND OF CONVENIENCE SHOPPING CENTRES 37 2.8.1 Convenience lifestyle centres in the USA 37 2.9 DEVELOPMENT OF SHOPPING CENTRES IN SOUTH 38 AFRICA 2.9.1 Increase in the development of shopping centres 38 2.9.2 The sustainability of Convenience shopping centres 39 2.9.3 The development of regional shopping centres 41 2.10 CONCLUSION 42
CHAPTER 3 REASEARCH DESIGN
3.1 INTRODUCTION 43 3.2 DEFINITION OF RESEARCH DESIGN 43 3.3 OBJECTIVES OF THE STUDY 43 3.3.1 Primary research objective 44 3.3.2 Secondary research objectives 44 3.4 RESEARCH METHOD 45 3.4.1 Exploratory research 45 3.4.2 Descriptive research 45 3.4.3 Causal research 46 3.5 RESEARCH DATA 47 3.5.1 Definition of data 47 3.5.2 Sources of data 47 3.5.2.1 Primary data 47 3.5.2.2 Secondary data 48 3.6 SAMPLING 49 3.6.1 Types of probability sampling 49 3.6.2 Unit of analysis 50 3.6.3 Surveys 50 3.6.4 Survey population 52
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3.6.5 Sample frame 52 3.6.6 Sample size 52 3.7 MEASUREMENT 53 3.7.1 Measurement scales 53 3.7.2 Levels of measurement 53 3.7.3 Measurement criteria 54 3.8 QUESTIONNAIRE DESIGN 57 3.9 CONSTRUCTING THE QUESTIONNAIRE 58 3.10 DATA ANALYSIS 62 3.10.1 Editing 63 3.10.2 Coding 64 3.10.3 Data entry 65 3.10.4 Data analysis 65 3.11 CONCLUSION 66
CHAPTER 4 RESEARCH RESULTS
4.1 INTRODUCTION 67 4.2 THE VALIDITY AND RELIABILITY OF RESULTS 67 4.3 REPRESENTATIVENESS OF RESULTS 68 4.4 QUESTION BY QUESTION RESULTS 69 4.4.1 Qualification question 69 4.4.2 Section A 70 4.4.3 Section B 74 4.4.4 Section C 84 4.5 CONCLUSION 94
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Page CHAPTER 5 CONCLUSION AND RECOMMENDATIONS FOR FUTURE RESEARCH
5.1 INTRODUCTION 95 5.2 PRIMARY AND SECONDARY RESEARCH OBJECTIVES 95 5.3 CONCLUSIONS AND IMPLICATION 96 5.3.1 Findings linked to the primary objectives 96 5.3.1.1 Finding 1 100 5.3.2 Findings to the secondary objectives 101 5.3.2.1 Finding 2 101 5.3.2.2 Finding 3 102 5.3.2.3 Finding 4 105 5.3.2.4 Finding 5 106 5.3.3 Summary of findings 107 5.4 LIMITATIONS TO THE STUDY 109 5.5 RECOMMENDATIONS FOR FUTURE RESEARCH 109 5.6 CONCLUSION 110
REFERENCES 111
APPENDICES Appendix 1 - Pre-testing questionnaire 117 Appendix 2 - Final Questionnaire 125
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LIST OF TABLES Page
Table 2.1: Shopping centre classification for Pretoria – 1998 32 Table 4.1: Frequency of visits to Cresta Shopping Centre 71 Table 4.2: Awareness of small convenience shopping centres constructed 71 Table 4.3: Frequency of visits to small convenience shopping centres 73 Table 4.4: Frequency of visits to filling stations 74 Table 4.5: Reasons for visiting Cresta Regional Shopping Centre 76 Table 4.6: Reasons for visiting convenience shopping centre 78 Table 4.7: Preference for visiting Cresta Shopping Centre as opposed to 80 smaller convenience centres Table 4.8: Preference for visiting a smaller convenience shopping centre as 83 opposed to Cresta Shopping Centre Table 4.9: Age summary of respondents 85 Table 4.10: Home language of respondents 86 Table 4.11: Number of cars per household 87 Table 4.12: Number of earners per household 87 Table 4.13: Number of people per household 88 Table 4.14: Area of occupation of respondents 89 Table 4.15: Monthly Gross Income of respondents 90 Table 4.16: Number of years residing in catchment area and shopping at 91 Cresta Shopping Centre Table 4.17: Suburbs where respondents reside in alphabetical order 92 Table 5.1: Detailed cross-tabulation of visits to Cresta Shopping Centre 97 and other smaller Convenience shopping centres Table 5.2: Quadrant analysis of visits to Cresta Shopping Centre and 98 other smaller Convenience shopping centres. Table 5.3: Detailed cross – tabulation of visits to Cresta Shopping Centre 99 and typical filling station outlets
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LIST OF TABLES Page
Table 5.4: Quadrant analysis of visits to Cresta Shopping Centre 100 and typical filling station type outlet Table 5.5: Detailed cross – tabulation of reasons or purpose of visits to 103 Cresta Shopping Centre compared to other smaller Convenience Shopping centres Table 5.6: Summarised cross – tabulation of reasons or purpose of visits to 104 Cresta Shopping Centre compared to other smaller convenience shopping centres Table 5.7: Summary of findings 107
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CHAPTER 1
ORIENTATION
1.1 INTRODUCTION
The South African shopping centre market has over the past few years experienced excessive growth as a result of favourable economic conditions. Lower interest rates resulted in an increase in disposable income of consumers which in turn lead to retailers requiring additional retail space in order to meet demand. This high demand for space has resulted in an increase in the development of new shopping centres as well as other retail concepts to the extent that a stage of saturation has perhaps been reached (Prinsloo, 2001:622).
A number of neighbourhood and community centres has been and are still being developed within close proximity to regional shopping centres (Prinsloo, 2003:121). This trend is also confirmed if one considers the substantial growth in retail space as recorded in South Africa (South African Council of Shopping Centre’s annual shopping centre directory, 2004:3). According to Martin (1982:68), any major additions to the shopping centres within a region which are not matched by an increase in population will result in centres having to compete harder. Shopping centres compete in the sense that they have to work hard to attract consumers from other centres (Engel, Blackwell & Miniard, 1995:841).
According to Markham (1998:226), many shoppers sometimes regard shopping as a chore and shopping centres have been changing to offer more entertainment and convenience to make a visit more pleasurable. This according to Markham includes better shopping centre infrastructures which will enable the centres to offer more convenient service to customers. More importantly, Markham (1998:226) emphasizes that “neighbourhood and convenience centres are continuing to provide important shopping facilities and new initiatives are continuing for the expansion of retail growth at petrol stations and other places with big
1 passing trade for convenience goods.” Consumers has also become more focused on convenience and shopping behaviour and shopping patterns has changed as a result with consumers preferring to shop at convenient locations with long operating hours (Prinsloo, 2003:617 and Liebmann 2002:1).
This study will determine what effect the development of convenience or neighbourhood shopping centres within the primary and secondary catchment areas of regional shopping centres, have on the patronage of regional shopping centres. The study will establish whether the new and smaller retail developments within the catchment areas of the larger retail shopping centres have any effect on the patronage of these larger sized regional shopping centres. The study will be executed within one specific regional shopping centre and its demarcated primary and secondary catchment area.
1.2 PROBLEM STATEMENT
The prevailing low interest rates, as well as the recent boom in property values, coupled with exceptional returns on retail investments, have led to investors investing in regional developments to such an extent, that the market is heading to a state of oversupply. Clayton (2005:1) This has further lead to a situation where smaller retail developments are undertaken within the catchment areas of larger sized and well established regional shopping centres, which then leads to increased competition and decreases in market share (Prinsloo, 2003:624).
The recent increase in the development of smaller retail shopping centres within the catchments areas of large regional shopping centres, has lead to increased competition in terms of market share in areas where regional shopping centres used to dominate. This has lead to an increased concern among landlords and owners of regional shopping centres, as these smaller regional shopping centres are now addressing the needs of potential patrons in a more convenient manner. This could lead to a possible decrease in visits to regional shopping centres by potential patrons (Liebmann, 2002:1).
2
A regional shopping centres’ overall financial performance is dependant on continuous and increased support by shoppers. The more shoppers a shopping centre can draw through its malls, the better the performance of its tenants in general. Martin (1982:172-73) points out that when tenants perform well and achieve good turnover growth, it allows landlords to charge higher rentals per square metre occupied, which in turn increases the centre’s financial performance. Patronage is therefore imperative in order to ensure that a centre achieves sustainable growth in income and a drop in patronage would therefore have a detrimental effect on revenues. A drop in patronage could be as a result of increased competition within catchment areas (Martin, 1982:59-64).
Developers and investors know that building two large regional shopping centres in close proximity to one another, would not be feasible and therefore develop smaller retail centres within the catchment areas of the regional shopping centres, based on the viable and established market potential. This leads to increased competition for regional shopping centres.
Based on the importance of the relationship between achieving good returns on investment in regional shopping centres and the patronage of the centre, as well as the fact that there is an increase in the development of smaller retail shopping centres leading to possible increased competition, the following research problem can be formulated:
To determine whether the development of smaller convenience retail shopping centres within the catchment areas of large regional shopping centres, has any effect on the patronage of the large regional shopping centres and to measure the impact thereof.
3 1.3 RESEARCH OBJECTIVES
1.3.1 Primary objective The primary objective of this study is to determine the impact of the development of smaller convenience centres within the catchment areas of regional shopping centres on the patronage of the regional shopping centres.
1.3.2 Secondary objectives The secondary objectives of this study are: a) To determine what factors would influence, or for what reasons potential patrons would visit smaller convenience centres instead of large regional shopping centres. b) To establish shoppers buying behaviour and purchasing patterns in the context of convenience. c) To determine whether there is any real competition between regional shopping centres and convenience shopping centres d) To confirm that there has in fact been an increase in the development of convenience shopping centres during the past few years within the catchment areas of regional shopping centres.
1.4 LITERATURE REVIEW
1.4.1 Information on shopping centre development The most important information sources highlighting shopping centre development and related retailing trends within the South African Shopping Centre context is probably material published by the South African Council of Shopping Centres (SACSC). These include “Shopping South Africa”, the official journal of the SACSC and the Shopping Centre Management Handbook.
1.4.2 Convenience shopping Prinsloo (2004:13) makes the following statement with regard to convenience shopping: “Convenience shopping is the name of the game. Research shows that as a result of more
4 frequent shopping, grocery baskets are getting smaller. Monthly shopping still exists, however, the higher the socio-economic status the less bulk shopping is done. Convenience shopping is conducted twice or three times per week at a more convenient local retailer” Prinsloo furthermore discuss the mushrooming of convenience centres as well as filling stations catering for daily convenience purchases.
O’ Sullivan (2003:1) reports that “There is an ever-increasing trend to stop off at the local convenience centre to purchase daily requirements”. This change in shopping pattern has been facilitated by the entry of national retailers into the convenience centre market. Shoppers don’t have to compromise on quality or pay higher prices when shopping at their ‘local’ because they are now home to the same retail marques found at larger regional centres.”
Prinsloo (2004:13) and O’Sullivan (2003:1) confirm the increasing trend of convenience shopping and also provide support for the research problem as stated above. Underhill (2002:115) furthermore argues that convenience shopping plays a much bigger role in modern times as the changes in women’s lifestyles with more women in full time jobs, has lead to the disappearance of the weekly and monthly shopping spree to the mall and has resulted in more grocery trips to a conveniently located store where fewer items are purchased at a time.
Barrett (2004:1) also quotes Underhill as saying: “The first thing that drives the majority of Americans to shop at a particular mall is convenience. You may have a mall someone visits 10 times a year and then a second that they only visit three times a year because it’s a little further away.”
1.4.3 Convenience and regional shopping centres Simpson (2005:1) attempts to provide and answer as to what the role of the regional shopping centre is in the wake of what he calls “a convenience onslaught” Simpson’s conclusion, though unsubstantiated by research, is that the regional shopping centres in South Africa are as dominant as ever, but has to differentiate to remain competitive.
5 Simpson (2005:1) further indicates that he does not foresee all convenience centres surviving in future and that quality of tenants will be the prevailing factor.
It is clear from the above that convenience shopping is an increasing trend abroad but also in South Africa, which then merits an investigation into the impact of convenience shopping outlets responding to this trend and the demand for convenience by consumers.
An observation made by Gentry (2004:79-82) of the US market can also be observed today in South Africa. The observation of Gentry (2004:79-82) is that “fierce competition has almost obliterated the prototypical strip centre, replacing the historically bland designs with neighbourhood settings that rival the décor and amenities found in regional shopping centres.”
1.4.4 Shopping centre development Parker (2004:56-57) confirms that local authorities allowed developers to over develop the property market over the past 20 years. Parker (2004:56-57) is of the opinion that local authorities should play a stronger role in rezoning applications to not allow further new development in areas where sufficient retail space exits to satisfy the community’s needs. Over saturation of the retail market is therefore a problem as well as ongoing retail developments in saturated areas.
Another interesting observation by Parker (2004:57) is that the argument is sometimes raised that the various types of centres can be placed in a kind of hierarchy of shopping centres and that regional, community and local centres all play different roles in a specific retail node. His opinion is however that it is a distortion of the truth as all centres have a complement of convenience stores and therefore compete directly with all other centres in their catchment area. This supports the research objective of establishing whether there is real competition between convenience and regional centres.
6 1.4.5 Past research on Convenience Centres versus Regional Shopping Centres Though many studies have been done from a commercial point of view, for instance determining the feasibility or viability for the development of a specific shopping centre by establishing market potential or studies related to establishing the demographic and geographic support for a specific centre, the literature search did not reveal research specifically related to establishing consumer shopping patterns in the framework of convenience centres versus regional shopping centres.
Studies conducted in the USA have to a certain extent utilised similar concepts for instance a study done by Sullivan and Savitt (1997:351-364) which measured the extent of outshopping grocery patterns of rural shoppers. The objectives of the study were to determine the proportion of grocery shopping expenditure in stores away from the major retail centres and also to identify store patronage and psychographic factors associated with rural shopping centres. The results of the study indicated that different psychographic profiles and income levels of various groups had different store patronage practices and that grocery outlets should establish retail mixes which appeal to different shopping groups.
1.4.6 Inadequate research A possible gap in the research can therefore be identified within this area specifically when focusing on the South African market. The literature review confirmed that convenience shopping is a growing trend and that the proposed study project is relevant and will contribute to research done on the specific phenomena (Prinsloo, 2004:13; O’Sullivan, 2003:1 and Underhill, 2002:115).
1.5 RESEARCH PROPOSITIONS
A hypothesis can be defined as an unproven proposition or suggestion that tentatively explains certain phenomena and is empirically testable. It is an empirical statement concerned with the relationship among variables (Zikmund, 2003:737).
7 The following propositions is formulated and will be further explained in the research design in chapter three:
P1: The increased development of neighbourhood convenience shopping centres within the catchment areas of regional shopping centres leads to a decrease in patronage or frequency of visits to the regional shopping centres.
P2: Regional shopping centres and neighbourhood convenience shopping centres and other convenience retail outlets compete directly in terms of patronage as a result of the element of convenience.
1.6 BENEFITS OF THE STUDY The benefits of this study will be: • To assist owners of large regional shopping centres in tenant mix decision-making processes, which could potentially lead to increased patronage.
• To enable owners of large regional shopping centres to adjust their marketing strategies to counteract the established competition in the form of smaller convenience shopping centres and to develop a distinctive appeal to their customers.
• To enable owners of regional shopping centres to understand consumer behaviour and shopping patterns revolving around patronage of smaller convenience retail shopping centres.
• The results might support an argument for tenants of regional shopping centres to implement longer trading hours.
• The study will also provide some insight for landlords and investors as to whether their investment strategies should change in terms of investing in larger retail developments or smaller convenience outlets.
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• To assist owners of regional shopping centres when performing risk assessment reviews for a specific centre.
1.7 CLARIFICATION OF KEY CONCEPTS
Before the demarcation and scope of this study can be discussed it is necessary to clarify the following key concepts that will be used as an integral part of the literature and empirical parts of this study:
• Regional shopping centre: “A single architectural unit of planned retail outlets and associated services and facilities, designed and managed as a fully integrated retail system” (Cloete, 2003:80 and Martin, 1982:1). For purposes of this study, a regional shopping centre will be classified as a centre which has a gross lettable area ranging between 50 000 m² to 100 000 m².
• Convenience shopping centre: For purposes of this study, a convenience shopping centre will be a centre which houses convenience retail stores situated in neighbourhood areas, not measuring more than 10 000 m² in gross lettable area. These centres are usually anchored by a national grocery retailer and have long operating hours. The definition will also include convenience shops housed within filling stations.
• Development: Development relates to the construction of new buildings for the planned purpose to establish a shopping centre as well as the refurbishment or conversion of existing buildings into shopping centres.
• Patronage: The Oxford dictionary (1990:873) defines patronage as a customer’s support of a shop. In the context of the research project, patronage would therefore refer to the support of a regional shopping centre and the frequency of visits.
9 • Catchment area: A catchment area within the South African context is also referred to as a trade area. According to Prinsloo (2003:108) a trade area is the geographical sector from which the sustaining patronage for steady support of a shopping centre is obtained. The boundaries are determined by a number of factors, including the nature of the centre itself, accessibility, location of competing facilities and limitations of driving time and distance.
1.8 DEMARCATION AND SCOPE OF THE STUDY
This is an exploratory study aimed at determining whether the development of convenience shopping centres around regional shopping centres have any effect on the patronage of the regional shopping centre.
The study will cover the relevant theory on consumer behaviour in terms of competition as well as purchasing patterns specifically related to changes in lifestyles and convenience shopping.
The hypothesis will be empirically tested within the primary and secondary catchment or trade area of a specific regional shopping centre namely Cresta Regional Shopping Centre which has a general lettable area of 93 279 m². Development of convenience retail shopping centres within the specific demarcated catchment area will be quantified over a specific period of time, meaning from a specific historical date up to the present. These quantified convenience retail shopping centres will form the other integral part, other than Cresta Regional Shopping Centre for purposes of testing the hypothesis.
1.9 RESEARCH DESIGN
According to Zikmund (2003:741), the research design can be defined as the master plan specifying the methods and procedures for collecting and analysing the required information. Zikmund (2003:65) further describes it as “A framework or blueprint that plans the action for the research project.”
10 The research design will include secondary data as well as surveys in order to collect the necessary primary data.
1.9.1 Secondary data analysis Du Plessis, Rousseau and Blem (1994:311) refer to secondary data as information already compiled and readily accessible to the researcher. Cloete (2003:147) further points out that secondary data is compiled inside or outside the relevant organisation, in this particular context a shopping centre, for some purpose other than the current investigation.
The main purpose of the use of secondary data as a research method for this project will be to establish or quantify the extent to which convenience shopping centres have been developed within the previously demarcated catchment area of the relevant regional shopping centre. This will include detailed maps providing a clear picture on the quantity and geographic positions of these convenience retail outlets. Research relating to Cresta Regional Shopping Centre which has been conducted on an ad hoc basis over the past five years will also be utilized, specifically to establish the boundaries of the primary and secondary catchment areas of the centre, but also as a secondary source of information.
A further source of secondary data would be literature based on research studies conducted on consumer behaviour, which could possibly support the study. This would include literature on consumer buying habits and shopping patterns, as well as literature supporting the role of convenience shopping in modern time lifestyles.
The following sources will be imperative to the research study: • The Southern African Shopping Centre Directory for 2004/2005 as published by the South African Council of Shopping Centres • Geographical maps indicating the actual location of various forms of retail within the demarcated areas. • Information on population profiles published by Statistics South Africa.
11 1.9.2 Surveys According to Du Plessis et al. (1994:312), surveys are quantitative research tools aimed at obtaining information from respondents in a direct undisguised manner. Du Plessis et al. (1994:312) argue that the principal advantage of a survey is that a great amount of data can be gathered about an individual respondent at one time.
Surveys will be utilized as a method of compiling and generating the necessary primary data for the research project. These surveys will comprise of two parts namely mall intercept interviews and household surveys:
Respondents will be requested to complete questionnaires while either entering or exiting Cresta Shopping Centre. These mall-intercept interviews will be conducted at six of the main entrances.
The mall intercept interviews will be structured as follows: • 500 exit surveys in total • 125 questionnaires per day of research: − One week day (month end) − One weekend day (month end) − One week day (mid-month) − One weekend day (mid-month) • Questionnaires will be evenly spread throughout the day from 10h00 to 18h00 and 18h00 to 20h00
The household surveys will be structured as follows: • 200 Household surveys • Conducted during the week (and weekend) at residents within the trade area of Cresta Shopping Centre for 10 consecutive days. • The questionnaires will be distributed on household level, according to determining factors which will come to light by analyzing the exit surveys. This will for instance include areas with a high shopper support.
12 The questionnaires will address the following information requirements: • Frequency of visits to the relevant regional shopping centre and other convenience outlets as well as time spent at the centres. • Details on areas or suburbs where respondents reside. • Reasons for visiting the relevant regional shopping centre and other convenience centres as well as the type of goods purchased. • Demographic profile of shoppers like gender, age, home language, marital status as well as household incomes. • Other factors relating to shopping patterns like trading hours, drive times, parking, crowding and convenience.
Care will be taken not to have too lengthy questionnaires as respondents become impatient with interviewers if questionnaires are too long. The questionnaires will also be pre-tested in order to ensure that problems with the format or questions asked can be addressed prior to the commencement of the actual fieldwork.
1.10 SAMPLING
Sampling can be described as the process of using a small number of items or parts of a larger population to make conclusions about the whole population. The term sampling can be further divided between probability sampling and non-probability sampling (Zikmund, 2003:741).
Probability sampling is a sampling technique in which every member of the population has a known, nonzero probability of selection. Non-probability sampling is a sampling technique in which units of the sample are selected on the basis of personal judgment or convenience (Zikmund, 2003:740). The sampling technique to be used for the purpose of this study will be probability sampling.
The unit of analysis will be individuals and households who visit the relevant shopping centre for shopping purposes on a regular basis. The sample will include individuals older
13 than 18 years who reside within the specific demarcated catchment areas. Employees or individuals working at the centre will be excluded from the study.
1.10.1 Mall intercept interviews The intercept interviews will be conducted on a simple random sampling basis. Interviewers will be instructed to randomly select shoppers without giving preference to any specific race or gender or any other relevant demographic factor, which could lead to random sampling errors. The objective would be to have a sample, which is in line with the centres’ actual demographic support. This will be compared against previously established customer profiles as outlined in secondary data previously compiled in order to ensure that the sample is accurate.
A sample of 500 respondents will be selected as confirmed in similar research of this nature. The sample of 500 questionnaires will also provide a more accurate result as the population around the relevant regional shopping centre is not very homogeneous and therefore requires a larger sample.
1.10.2 Household surveys As stated previously in paragraph 1.9.2, the household survey questionnaires will be distributed based on determining factors established after the exit surveys have been analysed. The sample frame will therefore be largely based on the geographic areas identified within the primary and secondary catchment areas of the centre. An approach similar to stratified random sampling will be utilized, as various households will be sampled within the relevant divided areas. Secondary data previously obtained through research conducted for purposes of demarcating the specific catchment areas, will also be considered when dividing the relevant households into specific areas or stratums.
1.11 DATA COLLECTION
Primary data will be collected by way of surveys. Primary data can be defined as data specifically gathered and assembled for this specific research project (Zikmund, 2003:740).
14 Respondents would either be requested to complete a questionnaire or to participate by interacting with an interviewer by way of mall intercept interviews. A number of students will be used to conduct the exit interviews after they have been properly briefed in order to minimize errors in the data collection process. Students will also be utilized to execute part of the household surveys. The questionnaires will request respondents to provide their telephone details, if they are willing, in order to resolve possible problems experienced with any specific aspect of the survey.
A focus group containing various retail property investment professionals will be used to provide inputs to the questionnaire. A focus group can be defined as a small group of people with whom an unobstructed free-flowing interview is being conducted. A focus group is a flexible research tool which encourages discussion among the members of the group with a view of obtaining different insights on a specific topic (Zikmund, 2003:117). The questionnaire will also be discussed with the statistical consultation service at the University of Johannesburg in order to eliminate problems which might occur when conducting data analysis, prior to execution of the actual field work.
Most of the questions on the questionnaire will be closed-ended but there will also be open- ended questions. As previously stated, the questionnaire will also include demographic questions.
1.12 DATA ANALYSIS
Data analysis is the process of analysing and processing data after it has been collected. It involves various analytical steps performed to summarise and rearrange collected data (Zikmund, 2003:453).
All aspects relating to data analysis will be discussed in chapter three as part of the research design and methodology.
15 The following aspects will be addressed: • Error checking and verification which includes editing, coding, data entry and data analysis.
• Field editing and in-house editing with field editing being on the same day as the interview in order to identify possible problems and omissions on the questionnaire as well as to clarify responses that are logically or conceptually inconsistent. Field editing will be conducted on a daily basis.
• In-house editing which will be done after the fieldwork is completed in order to further ensure accuracy of results.
• Coding will be done through the transferring of data to a computer through data entry or keyboarding which will then allow for computerized data processing and analysis.
• Three forms of data analysis will be used namely descriptive analysis, bi-variate data analysis and, multi-variate data analysis which will be elaborated upon in chapter three.
1.13 CHAPTER OUTLINE
The current chapter is an introduction to the study and explains the problem statement, research objectives, the hypothesis and other information pertaining to the study as well as the literature pertaining to the research problem and also related to the key concepts as identified. The rest of this study will be divided into the following chapters:
Chapter 2: Literature review
The literature review will deal with theory related to the study and supporting the research problem. Literature pertaining to the concept of catchment areas and competition among shopping centres and other retail outlets within these catchment areas will be covered as well as criticisms related to the study and gaps identified.
16 Chapter 3: Research design and methodology
This chapter will provide details on the research design plan and the methodology followed to complete the research. Sampling, data collection, secondary data, fieldwork, questionnaire design, editing, coding and data analysis will be explained.
Chapter 4: Summary of research results
The chapter will include research results as well as problems experienced during the research process and how they were addressed. It will also give a descriptive summary of issues identified during the research.
Chapter 5: Conclusion and recommendations for future research
This chapter will summarise the results of the study from chapter four and recommendations for future research will be formulated.
17 CHAPTER 2
LITERATURE REVIEW
2.1 INTRODUCTION
A number of key themes or concepts relevant to this study have been briefly identified in chapter one. The literature review in this chapter is intended to further elaborate on these key concepts within the framework of this study. It specifically also include a theoretical discussion on the concept of patronage and competition between the different types of retail formats within the framework of consumer behaviour.
2.2 THE CONCEPT OF PATRONAGE
According to Price (1996:64) a “patron” can be defined as a consumer who visits a store or a shopping centre. The Oxford Dictionary (1990:247) further defines a “consumer” as a purchaser of goods and services. The same definition applies almost similarly to the word “shopper” which the Oxford Dictionary (1990:1121) describes as a person who makes purchases in a shop. From the definition of the word “patron” by Price (1996:64) and the definitions of the word “consumer” and “shopper”, the conclusion can be drawn that “patronage” in the context of this study refers to consumers or shoppers who visit a shopping centre.
2.2.1 The importance of patronage The legendary Walt Disney once said: “You can dream, create and build the most wonderful places but you need people to make them work”.
People are the source of a shopping centre’s livelihood. A number of factors could influence the amount of people visiting a centre for instance the location of a shopping centre and travel time to the centre. The population around a centre is however the most important factor and any change in the population surrounding a centre could lead to either
18 the centre fighting for survival if there is a downturn in the amount of people visiting, or a total uplift if there has been an increase in the size of the population within the catchment area of a centre (Martin, 1982:59). Martin (1982:64) further notes that it is the task of any shopping centre manager to ensure that the public patronise their centre but that the retailers within the centre should ensure that visitors turn into shoppers.
2.2.2 Measurement of patronage Faller (2003:493), as part of a discussion on the various financial reports which centre management usually prepares for reporting purposes, also includes a “Pedestrian Counts” report which usually apply to shopping centres. According to Faller, the report represents the total monthly pedestrians who moved through the centre in a specific month and is usually in graphic form with a comparison on pedestrian counts of previous years.
Wilson (2006:14) indicates that traffic or foot counting systems are used in shopping centres to measure the number of pedestrians moving through a specific shopping centre and indicates that these systems are essential for a number of reasons which can be sumarised as follows: (a) It enables shopping centres to prove to potential tenants that a specific centre does attract a certain number of feet. (b) It enables the management of a shopping centre to determine how successful a promotional campaign was by tracking the increase in the number of shoppers who visited the centre over the duration of the campaign. (c) It enables the management of a shopping centre to determine which specific entrances of a centre is used more frequently by shoppers than others which could be of assistance when refining the tenant mix. (d) It can be used as a tool to enable centre management to determine which days are good and bad shopping days and at what time of the day foot traffic is at its highest. This could be helpful when determining the trading hours of a specific centre and also when security guards or cleaning staff should be more effectively employed.
19 (e) It enables shopping centre managers to calculate trading statistics, for instance determining the amount of money spend per visitor which is calculated by dividing the total sales of the centre into the number of visitors which moved through the centre over a specific period.
Wilson (2006:14) further indicates that foot count systems in operation in South Africa mainly use infra-red beams installed at the entrances or doorways of a centre. When a beam is broken by a pedestrian passing through, the counter logs the date and time at that specific moment. This information is then fed into a computer which then sumarises the data and produce customised reports in line with the needs of shopping centre management.
White and Grey (1996:322) argues that vehicle counts is also an effective measurement tool of patronage but warns that car or people counts are not always an accurate forecaster of actual sales as monthly car counts can for instance be up, while certified sales could be down.
Hallowes and Allison (2004:22) agrees that car counts can be very useful when measuring patronage and adds that car counts could also assist in identifying the following: • A changing demographic profile of the average visitor. • Any increases or decreases in the party size visiting a centre. • Whether the centre is frequented more by families rather than single patrons. • Determining the length of time that patrons stay at a specific shopping centre.
Hallowes and Allison (2004:22) further indicate that today’s foot count systems provides “accurate and reliable quantitative data on which to append and evaluate qualitative trends that lead to sound formulation and assessment of truly meaningful strategy and activity”.
2.2.3 Profiling of potential shoppers When analysing the demographic characteristics of a shopping centres’ customer base, it is of utmost importance to indicate the profile of the people living around the area (Prinsloo,
20 2003:113). White and Grey (1996:108) also note that the size, past growth and projected future growth of the population within the catchment area of a shopping centre is important when attempting to establish the demographic profile of shoppers.
White and Grey (1996:108) identify four “features of a population” that are of special relevance when profiling shoppers which can be described as follows: (a) Households and household formations – households are the base unit of consumption for retail goods. The number of households, the distribution of households by age and the average size and rate of growth of households should be considered when profiling shoppers. Prinsloo (2003:113) includes the number of cars and the number of earners in each household. (b) Household composition – households are broken down between single people, single parents with children, couples with children, empty nesters and nontraditional households which all have different income and purchasing profiles. (c) Age – the age profile of the population within the trade or catchment area can be structured in terms of the proportion of older and younger people and their various life cycle stages, which will provide an understanding of the purchasing patterns of potential shoppers. (d) Race and ethnic background – White and Grey (1996:108) indicate that this is something which is not always well understood by retailers and shopping centre managers and further note that different population groups could have distinct retail preferences and shopping patterns.
Prinsloo (2003:113) ads two further important aspects which should be considered when profiling potential shoppers. These aspects can be summarized as follows: (a) Level of education – Education according to White and Grey (1996:108) is the best predictor of potential disposable household income. Prinsloo further indicates that monthly household income is an important profiling aspect because of the close correlation between income and retail spending. Kotler (2003:166) interestingly points out that five educational groups can be identified in any society namely:
21 illiterates, high school drop outs, high school degrees, college degrees and professional degrees. (b) Occupation of residents – a blue collar area will have different shopping centre and product requirements than an area populated by white collar workers. Prinsloo defines white collar workers as professional and managerial employees.
Other socio-economic and demographic characteristics listed by Prinsloo (2003:119) which could influence the population within a shopping centres trade area include: Economic stability, unemployment levels, housing density, home ownership levels and cultural groupings.
2.3 TRADE AREA OR CATCHMENT AREA
Roca (1998:17) describes a trade area as “the geographical sector from which the sustaining patronage for steady support of a shopping centre is obtained”
White and Gray (1996:118) define the trade area for a specific retail property as “the surrounding geography from which the property draws 70% to 75% of its total sales”.
Levy and Weitz (1992:318) define a trade area as “a geographic sector that contains potential customers for a particular retailer or shopping centre”.
Levy and Weitz (1992:318) further indicate that a trade area is usually a smaller area within a region for instance an area of ten square miles within a city. Trade areas can be divided into two or three zones and is categorised as follows (Levy & Weitz, 1992:318; Berman & Evans, 2004:220):
2.3.1 Primary zone or trade area The primary zone or trade area is the geographic area from which a store or shopping centre derives 60 to 65 percent of its customers (Levy & Weitz, 1992:318). According to Levy and Weitz (1992:319), this area or zone usually represents a radius of five miles or
22 less than ten minutes drive from the site of the shopping centre. This is also confirmed by Prinsloo (2003:112) who points out that in the case of a regional shopping centre, the primary trade area falls within the ten minute isochrone, the isochrone being a line linking all similar time distances from a particular centre. (Prinsloo, 2003:112).
Berman and Evans (2004:220) refer to the primary trading area as the area which encompasses fifty to eighty percent of “a store’s customers”. Berman and Evans (2004:220) further comments that the primary trade area is the area closest to the store which possesses the highest density of customers to population and the highest per capita sales. Even though Berman and Evans (2004:224) specifically refer to “a store’s customers” when defining the primary trade area, they do indicate in a further discussion on delineating trading areas that the same characteristics for a specific store applies to a shopping district or shopping centre when attempting to delineate trading areas. The definition in this paragraph given by Berman and Evans (2004:224) for the primary trade area also therefore applies to shopping centres.
2.3.2 Secondary zone or trade area The secondary area is the geographic area of secondary importance as it generates about 20 percent of a shopping centre’s total sales. It usually extends to a radius of three to seven miles or not more than fifteen to twenty minutes drive time from the location of the shopping centre (Levy & Weitz, 1992:318).
According to Prinsloo (2003:112), the secondary trade area of a regional shopping centre is the area approximately five to eight kilometers from the site or fifteen to twenty minutes driving time. Prinsloo further indicates that fifteen to twenty percent of all sales should originate from this area (Prinsloo, 2003:112).
2.3.3 Tertiary zone or trade area The tertiary area is the outermost ring or area surrounding a shopping centre and represents customers who occasionally shops at the shopping centre. These are the type of shoppers who has a lack of adequate shopping or retail facilities in close proximity to
23 where they live. There are typically excellent highway systems which conveniently connect this type of customer to a specific shopping centre and therefore reduce drive time to the centre. The customer might even drive past a specific centre on the way to work which then results in visits to a specific centre even though the shopper does not live close to the centre. The tertiary zone typically extends fifteen miles in major metropolitan areas to as far as fifty miles in smaller or rural areas (Levy & Weitz, 1992:319).
Prinsloo (2003:112) refers to the tertiary trading area as the broadest area from which customers may be drawn with typical driving time limits of twenty five to thirty minutes.
2.4 TRADE AREA DEMARCATION
The actual boundaries of a trade area are determined by the accessibility and type of shopping centre. The boundaries are also influenced by the location of competing shopping centres (Levy & Weitz, 1992:319). Levy and Weitz (1992:320) further argue that there are a number of factors which could act as barriers when demarcating trade areas like highways, rivers, mountain ranges as well as high crime areas.
Berman and Evans (2004:222) are of the view that trading areas do not usually follow a circular pattern around a specific centre but rather adjust to the physical environment in which it is situated. According to Berman and Evans (2004:222), the size and shape of a trading area are influenced by the type of shopping centre, the size of the shopping centre, the location of competitors, travel time and traffic barriers such as toll gates, as well as housing patterns. Housing patterns in this example refers to single standing houses or alternatively clustered or multi-unit housing located in the vicinity of the shopping centre. Dawson (1983:39) points out additional factors which could influence changes in the trade area of a shopping centre namely the growth in population, new centres being built and also planned new roads. These factors are also used to project future patterns within a trade area.
24 Berman and Evans (2004:224) indicate that the size, shape and characteristics of a trading area can usually be delineated quite accurately. This can be done by using existing shopper records of retailers within the shopping centre as secondary data to determine where shoppers or patrons reside. Credit sales information can prove to be very useful for this purpose though one should also study cash customers as the analysis might be invalid if they are not included. Alternatively, Berman and Evans (2004:224) also points out that special studies in the form of surveys as primary data is a further method of accurately measuring trade areas with computer generated maps which can be accurately tailored for a specific shopping centre.
Prinsloo (2003:112) identifies three categories in which trade area demarcation methods can be grouped. These categories are the following: • “Rule of thumb”, where practical experience of an analyst as well as logic is used to demarcate a trade area. These are estimates and can be used for existing as well as proposed shopping centres.
• Theoretical models used to demarcate areas which then serve as substitutes for actual trade areas. Prinsloo (2003:112) confirms that these models are the least expensive to apply but also the least accurate.
• Empirical methods which can effectively identify the actual trade areas. These methods can only be used for existing retail facilities and are also the most expensive methods for area demarcation.
Martin (1982:69 - 73) suggests a four step approach to determine the extent, shape and content of a centre’s catchment area which can be summarized as follows:
Step 1: A theoretical assessment using population and distances between competing centres to calculate the extent of the catchment area of a specific centre.
25 Step 2: A survey to determine where shoppers come from, in order to compare the results with the findings of the theoretical assessment done during step 1.
Step 3: A survey to determine the type of shopper which supports the centre; the products, goods or services purchased and the mode of transport used to get to the centres.
Step 4: This step is optional depending on whether a centre is experiencing difficulty in terms of support and comprises a household interview survey to ascertain the proportion of people in the catchment area who know and frequents the centre.
In order to fully understand a trade area, all relevant information regarding the specific area should be obtained and considered which includes aspects like future growth and development in the area, future changes to roads and transport systems and also changes in the residential structure within the specific area (Prinsloo, 2003:114).
2.5 TYPES OF SHOPPING CENTRES
According to Foreman, Skinner and Cloete (2003:83), the basic types of shopping centres can be generally distinguished as follows: • Local Centre or Convenience Centre • Neighbourhood centre • Community Centre • Regional centre (includes hypermarkets)
Foreman et al. (2003:83) further contend that various types of shopping centres may be distinguished according to their functionality, their location and other physical criteria. The functional criteria include the product mix of the centre as well as the typical anchor tenants and tenant mix. Location criteria include factors like the accessibility of the centre, the extent of the trade area and the total population residing within the trade area. Physical criteria include features like the size or General Lettable Area of the centre, the number of
26 shops within the centre as well as the size of the site on which the shopping centre is located (Foreman et al. 2003;84).
A number of distinct shopping centre types can be identified when considering related literature on shopping centre classification which can be grouped into a hierarchy from smaller to larger retail formats. The various types of centres, as confirmed by Dawson (1983:17), do not necessarily fit into the traditional categories of neighbourhood centres, community centres and regional centres, similar to the categories identified by Foreman et al. (2003:840) as listed above.
The distinct shopping centre types as identified in the related literature can be defined as follows:
2.5.1 Garage stores Although these stores can not really be classified as shopping centres, they do offer a variety of convenience related products and is therefore of relevance to this specific study. These stores are housed within most petrol filling stations and range between 30 m² to 200 m² in size. The size of these stores depends on the size of the actual filling station but also on the availability of other retail facilities already offered in the neighbourhood. Garage stores are usually open on a twenty four hour basis, seven days a week (Prinsloo, 2003:114).
Prinsloo (2004:13) also further indicate that filling stations cater for daily convenience purchases mainly because they offer convenient and ample parking in a well lit and safe environment. Most of the new filling stations express convenience stores offer fast food products as well as take-away and bakery products. The opening of express Woolworths Food stores within these garage stores further leads to the growing attractiveness of these stores (Prinsloo, 2004:13).
27 2.5.2 Convenience centres These centres typically include a convenience market such as a 7-Eleven, a dry cleaner, or a liquor store with a small trade area. These centres are found in suburban locations and other densely populated areas (Levy & Weitz, 1992:327). Foreman et al. (2003:90) agrees with Levy and Weitz (1992:326) and describes these centres as the smallest type of centres in size, usually occupied by convenience stores. According to Prinsloo (2004:13), for these centres to be successful, the emphasis must be on a good location and a strong anchor tenant.
2.5.3 Neighbourhood centres According to Levy and Weitz (1992:326), these centres include a supermarket, drug store, home improvement center or variety store. Levy and Weitz (1992:326) further indicate that these shopping centres usually include smaller stores like apparel, shoe, camera and other shopping goods stores. Dawson (1983:17) argues that the function of neighbourhood centres is to provide a range of convenience goods and personal services and that the sizes of these centres range from 3 000 m² to 10 000 m² of general lettable area with the typical neighbourhood centres around 5 000 m².
2.5.4 Community centres Community centres usually contain a discount store or a soft-line department store as an anchor. These centres would typically also include a supermarket, a hardware store, a pharmacy as well as a number of other convenience stores (Levy & Weitz, 1992:328).
Foreman et al. (2003:91) describes a community centre as a “mid-sized centre which would offer a limited range of comparison goods in addition to the range of convenience goods”.
Dawson (1983:22) indicates that a community shopping centre offers patrons a greater depth and range in terms of merchandise than what a neighbourhood or convenience centre would offer. A typical example given by Dawson (1983:22) would be a centre with fashion tenants which offers an assortment of clothing sizes, styles, colours, as well as
28 prices. Dawson (1983:22) concludes that these centres would usually have a general lettable area of between 10 000 m² to 30 000 m².
2.5.5 Power centres Levy and Weitz (1992:329) identify these centres as open-air shopping centres with the majority of retail space leased to a number of well-known anchor tenants with high credit ratings. Levy and Weitz (1992:329) confirm that these centres typically “take the appearance of a large strip centre with three or more anchor stores”. Levy and Weitz (1992:329) further indicate that these centres usually contain stores that use price promotions as their primary marketing strategy.
2.5.6 Regional and Super-Regional Shopping centres Berman and Evans (2004:24) define a regional shopping centre as “a large, planned shopping facility appealing to a geographically dispersed market”. Berman and Evans (2004:24) is also of the opinion that a regional centre is the result of an attempt to re-create the shopping variety of “a central city in suburbia” and can act as a central social and cultural vocal point within an entire suburban area. Regional and super-regional shopping centres are generally anchored by two or more department stores with a general lettable area of 50 000 m² and above (Levy & Weitz, 1992:329; White & Grey, 1996:55; Foreman et al., 2003:88).
The normal design of a regional shopping centre uses the pedestrian mall, whether it is open or enclosed, as a connection between the major anchor stores located within the centre. The pedestrian malls within the shopping centre also establishes a basic pattern for directing customer flow past supplementary line stores located between the purposely separated major anchor tenants. Large regional shopping centres have several department stores which in turn lead to increased consumer attraction for the overall centre as a whole (Dawson, 1983:24).
Skinner (2006:47) argues that some shopping centres which started out as regional shopping centres evolved to a situation where they no longer can be classified as true
29 regional centres but rather core centres in a dominant suburban centre business district. According to Skinner, true regional centres are those centres “situated on or at the convergence of a national road and provincial highway, giving the centre regional accessibility and market domination.”
2.5.7 Theme centres Foreman et al. (2003:92) defines a Theme centre as any centre which has been designed according to a specific theme. Levy and Weitz (1992:335) further indicate that in some instances, Theme centers attempt to replicate historical places. Levy and Weitz (1992:329) The most important characteristic of a theme centre is that the theme must be such that it continues to attract new and existing shoppers, which includes a large number of local and foreign tourists (Prinsloo, 2003:114).
Prinsloo (2003:114) sites the Victoria & Alfred Waterfront in Cape Town as one of the most successful theme centres in South Africa. Prinsloo (2003:114) indicates that one of the major reasons for the success of the Victoria & Alfred Waterfront is the atmosphere created at this shopping centre development, which is a combination of between sea, harbour and mountain which according to Prinsloo (2003:114) can not be found anywhere else in the world.
2.5.8 Lifestyle centres Prinsloo (2004:15) identifies and describes lifestyle centres as centres responding to the need of consumers for a shopping experience. Prinsloo (2004:15) argues that shopping is not only about consumption, but also about an experience and that lifestyle centres are designed to meet and sustain such expectations in the longer term. Prinsloo (2004:15) indicates that lifestyle centres provides this shopping experience by offering “good quality public spaces, ease of movement, whilst providing meeting places for relaxation such as coffee shops and restaurants”. According to Prinsloo (2004:15), these popular lifestyle centres make use of both indoor and outdoor spaces.
30 Prinsloo (2004:15) concludes by confirming that lifestyle centres in the United States creates a very attractive environment and shopping experience where public spaces, similar to Nelson Mandela Square in Sandton Johannesburg, have become the main drawcard in providing a “feel good” place.
Medani (2006:65) indicates that Lifestyle centres in South Africa are a mix between garden, value and entertainment centres which are occupied mostly by tenants seeking to pay lower rentals and who depend on complementary retail to exist.
2.6 CLASSIFICATION OF SHOPPING CENTRES
From the discussion in paragraph 2.5 above, the various types of shopping centres, it is clear that centres can be classified in a number of different ways and that some shopping centre formats might fit into more than one category or shopping type. This is also confirmed by Foreman et al. (2003:83) who indicate that “the exact point of distinction between the various types of centers is not absolute and often the difference is one of degree”.
There have been numerous attempts to classify shopping centres both locally and internationally. Most of the classifications are based on the physical attributes of the centre, the location of the centre and the function that the centre fulfils within the community around it, as indicated in paragraph 2.5 above (Foreman et al., 2003;84).
The various classifications are usually in table format and includes a number of factors such as size, the number of people in the catchment area, anchor tenants, number of stores, driving time to the centre and layout. (Ghyoot 1992:51, Prinsloo 2003:87, Prinsloo 2003:89). The International Council of Shopping centres also adapted a set of definitions for the various shopping centre types which includes criteria such as the type of anchors, the type of stores within the centre, the amount of square feet attributable to its anchors in relation to the shopping centre as a whole and the size of the trade area (Foreman et al., 2003;86).
31 Table 2.1: Shopping centre classification for Pretoria - 1998
Type of Centre Size of Trade area Access No. of Popula – Radius Travel Main Centre (m²) require - house - tion (km) time tenants ments holds (min.) CORE CLASSIFICATION
Filling station < 250 Filling station Together - - - - Filling station only with filling operated store station only
Spaza < 50 Houses in Suburban - - - - Groceries/ café suburbs streets products
Small free 500 – Part of Suburban < 2 000 < 7 000 1 < 2 Café/Superette standing 1 000 suburbs streets few convenience centre stores
Local 1 000 – One suburb Minor 700 – 2 500 – 1,5 3 Supermarket convenience 5 000 or parts of collector 3 600 12 520 few convenience stores/centres suburb(s) road stores
Neighbourhood 5 000 – Suburb(s) Major 2 400 – 8 300 – 2,0 4 Supermarket Centre 12 000 collector 5 700 20 000 Convenience road or roads Some small Specialized stores
Community 12 000 – Group of Main road 8 500 – 30 000 – 3,0 6 Large Centre 25 000 suburbs 17 800 62 500 supermarket Convenience Small national clothing Restaurants & Take aways Services
Small regional 25 000 – Specific sub- Main road 17 800 - 62 500 – 5,0 10 Large 50 000 region in city 35 700 125 000 supermarket 1 or 2 large clothing nationals Boutiques Restaurants Entertainment Services
Regional 50 000 – Large region Main road 28 600 - 100 000 - 8,0 16 Large Centre 100 000 in city/whole and perhaps 57 150 200 000 supermarket/ city national road hyper 2 or more large clothing, boutiques Entertainment, restaurants, services & convenience
Super regional 100 000 & Large region Main and 57 150 - 200 000 - 10+ 20 As at regional Centre more in city and national 114 300 400 000 but more surround - routes emphasis on ding areas entertainment and variety Adapted from: Foreman et al. (2003:87)
32 The most comprehensive and recent shopping centre classification applicable to the South African environment is probably the one compiled by Prinsloo (2003:87) for the city of Pretoria, South Africa. This classification illustrated by Table 1, include a fairly wide criteria list for distinguishing between the various retail formats.
Viljoen (2006:19) argues that it is perhaps necessary for the International Council of Shopping Centres to set international standards for the classification of shopping centres as it is a worldwide association with more than twenty four national and regional shopping centre council links. Viljoen (2006:19) contend that this is necessary as a result of globalisation and that international standards will benefit everyone in the shopping centre industry.
Viljoen (2006:19) concludes that in order to resolve or overcome the difficulties which could be experienced as a result of different regions preferring to use their own classification methods, it is perhaps necessary to have an “over-arching set of international standards” which also allows for regional differences.
2.7 COMPETITION AMONG SHOPPING CENTRES
2.7.1 The trend of increased competition as a result of over-development Burns and Warren (1995:4-12) reports on an overbuilding of shopping centres trend as well as a change in consumer shopping activities in the USA, which leads to an increase in the level of competition between shopping malls located in the same metropolitan area. This competition between centres results in consumers having a number of alternative malls to choose from, a similar situation as to what South Africa is currently experiencing in some suburban areas.
The study conducted by Burns and Warren (1995:4-12) found that shoppers do not, as can rationally be expected, necessarily visit the shopping centre located closest to them. Burns and Warren (1995:4-12) explains that shoppers appear to have a need for uniqueness and that they as a result choose to frequent a shopping centre which inherently better fulfill this
33 need for uniqueness even though competing shopping centres may have a fairly similar tenant offering.
The principle confirmed by Burns and Warren (1995:4-12) however is that shopping centres will compete in terms of patronage when over development of centres take place within a specific suburban area. This according to Burns and Warren (1995:4-12) could lead to an increase in vacant stores within competing centres as well as a reduction in the total number of sales made by retailers located within these competing centres (Burns and Warren, 1995:1).
Prinsloo (2003:113) confirms that retail within South Africa has become very competitive and that it is therefore imperative that shopping centres should have a good understanding of current and future competition located within its trade area. Prinsloo (2003:113) also suggest that a competitive inventory should be compiled which should include information such as the number, sizes and physical design of competitive outlets; site characteristics; types of services provided; merchandise and pricing policy as well as the target market served by the competitor (Prinsloo, 2003:114).
2.7.2 Shopper motives related to competing shopping centres Dawson (1983:86) identifies a number of “personal and social shopper motives which are reflected, to different degrees, in inter-centre competitive activities” based on a number of behavioral surveys conducted. These personal and social motives influence which centres located within the same metropolitan areas are visited by shoppers and can briefly be sumarised as follows:
(a) Visits made to a particular centre aimed at obtaining personal knowledge of new trends and fashions. (b) Visits related to self-gratification aimed at making purchases to raise moral or to stimulate a person feeling bored or depressed. (c) Visits aimed at deliberately diverting from the routine of daily life with the motive of visiting a different centre “for a change”
34 (d) Visits made as an integral part of having a particular position or status in society, based on a mentality of “It is expected of me” or “I should be seen” within a specific shopping centre. (e) Visits made for the benefits obtained from “having a walk around the centre” as an activity. (f) The constant sensory bombardment which occurs as a result of visiting a specific centre may result in a person visiting a centre “just for the kicks” (g) Visits made to a centre for the purpose of providing an opportunity to have social contact with friends, acquaintances and new contacts and peer groups. (h) Visits made for the purpose of participating in a social event aimed at the need or wish to be involved in society and to participate in bargaining and trading activities.
Dawson (1983:87) argues that designers, owners and operators of shopping centres have to respond to the above motives in order to remain competitive and to increase the numbers of visitors.
2.7.3 Measures to remain competitive Hiemstra (2003:10) confirms that there is fierce competition between shopping centres to attract tenants in the South African market. Hiemstra (2003:10) suggests that shopping centres should constantly focus on upgrading the tenant mix to “beat off” competition. Hiemstra (2003:10) further indicates that frequent upgrades of a centre could also assist against the onslaught of competition in the catchment areas of the centre. Further suggestions by Hiemstra include good housekeeping of the centre, excellent customer care and innovative marketing plans which are “powerful weapons for supremacy amongst centres”.
Cloete (2003:585) suggest “re-merchandising” a centre in order to revitalize the centre and to fend off the competition. Re-merchandising according to Cloete (2003:585) is the process of changing the tenant mix in order to create a new image for the shopping centre which could also lead to increased income to the owners of the centre. Cloete (2003:585) argues that re-merchandising is especially necessary where a centre has an outdated
35 design and poor aesthetics that does not measure up to the standard set by competing centres or does not meet consumer expectations.
Cloete (2003:587) indicates that market research findings should be used for positioning the centre in terms of merchandising, design and marketing. Cloete (2003:587) confirms that a re-merchandising strategy should also include visual and physical changes to the centre which may include cosmetic changes, physical renovation as well as expansions. Cloete (2003:587) lists the following typical re-merchandising objectives:
• To update the tenant mix by recognizing merchandising voids and deficiencies. • To weed out non-performing tenants. • To upgrade existing tenant spaces through renovation. • To upgrade existing under-performing tenants by assisting with merchandising, display and retail operational matters.
Dawson (1983:86) agrees with Cloete (2003:587) by stating that a centre’s competitive position can be enhanced through a process of redevelopment. Dawson confirms that it is not necessarily only tenants located within shopping centres that compete but rather shopping centres themselves in terms of tenant mix, location and non-retail services and activities available to users of the centre.
Dawson (1983:86) indicates that competition amongst larger centres aims both at increasing the degree of penetration in an established trade area as well as at extending the trade area. Dawson further emphasize that amongst smaller shopping centres, retailer image is more important than centre image and that smaller centres as a result have intense price competition.
36 2.8 THE TREND OF CONVENIENCE SHOPPING CENTRES
Underhill (2003:233) makes the following statement with regard to convenience stores: “Convenience stores have quite a lot it can teach other retail outlets through its foolproof strategy of making themselves very available and very convenient.”
According to Underhill (2003:233), convenience shopping centres successfully take advantage of the changes to women’s lives and in particular the fact that women with full time jobs no longer make big weekly or monthly expeditions to the shopping mall. Underhill also believes that people staying single for longer further contributed to the trend of convenience shopping of making more shopping trips and buying fewer items each time.
2.8.1 Convenience lifestyle centres in the USA Similar to what Prinsloo (2004:15) identified as life style centres as described in paragraph 2.5.6 above, Fiala (2005:150) also recognise this new type of shopping centre, as opposed to the traditional regional malls, which is also label as “lifestyle centres”. According to Fiala (2005:150) these “lifestyle centres” are increasing throughout the USA. These “lifestyle centres” are described as “a next-generation retail experience” which is aimed at creating the feel of a community and outdoor retail centre unique to a specific neighbourhood. These conveniently located centres include the convenient amenities needed for the busy lifestyles of its patrons.
Fiala (2005:150) further points out that these neighbourhood styled centres focus on their surrounding environments by incorporating natural landscaping and local architecture with the emphasis on “convenience, social interaction, variety and value”. These centres do away with the traditional department store anchors and incorporate more nontraditional lifestyle and convenience focused stores, creating a true convenience retail experience.
O’Loughlin (2005:30) reports that the growth of these types of convenience lifestyle centres have increased in the wake of the decline in the opening of new malls over the past decade in the United States. O’Loughlin argues that today’s consumers gravitate to the
37 convenience and pleasing open-air environment of lifestyle centres instead of having to “wend their way through traditional enclosed malls and department stores”.
The trend of developing convenience shopping centres in the United States and Canada is also confirmed by Field (2005:125) when reporting on hybrid centres which hatched from the customer’s need for convenience. According to Field (2005:125), these hybrids attempt to provide retail facilities which are a mixture of power centres, regional malls and also in some instances, lifestyle venues. Field (2005:125) describes these centres as built for the convenience-driven customer by saying: “Put my favorite specialty shop next to my big-box electronics store next to my dry cleaner next to my Saturday night eatery. I want access to it all”.
According to the International Council of Shopping Centres, the increase in the development of convenience lifestyle centres is set to continue in the United States with more than twenty five centres which were planned to be built from the second half of 2005 onwards. The International Council of Shopping Centres also describe these centres as new generation outdoor malls or lifestyle centres planned to “mimic trendy downtown shopping districts but without the traffic” which also includes parking convenience (Gajilan, 2005:17).
2.9 DEVELOPMENT OF SHOPPING CENTRES IN SOUTH AFRICA
2.9.1 Increase in the development of shopping centres As discussed in paragraph 1.1, South Africa has experienced an increase in the development of new shopping centres as well as other retail type concepts as a result of the high demand for space from retailers (Prinsloo, 2001:622).
Viljoen (2006:3) agrees with Prinsloo (2001:622) by stating that since the beginning of 2005, there has virtually been an explosion in new retail space together with a significant amount of expansions of existing shopping centres. Viljoen (2006:3) bases his findings on information compiled as editor of the 2006/2007 South African Shopping Centre Directory.
38
Muller (2006:1) also confirm that building statistics for the fist half of 2006 indicate that thousands of square meters of new shopping space is being added by developers in the face of an already “well-shopped” South African retail market. Muller (2006:1) points out that property economists are of the view that the market could see renewed growth in shopping centre development when considering resent building plans approved by the relevant authorities.
Muller (2006:1) furthermore argues that the retail development frenzy will not subside for as long as national retailers continue their aggressive introduction of new stores as well as the expansion of their existing stores, and further explains that the major South African retailers like Edcon, Truworths, Woolworths, Shoprite and Massmart all plan to open between forty to a hundred and fifty new stores before 2008. Muller (2006:1) also state that one of the leading property analyst firms namely Catalyst Fund Managers has observed that the growing demand from retailers has led to retail occupancies dropping to record lows.
2.9.2 The sustainability of Convenience shopping centres An important observation made by Muller (2006:1) is that some of the listed property funds do question the sustainability of smaller convenience centres and quotes Gerald Nelson, the MD of listed property fund Sycom, as saying: “Smaller convenience centres are mushrooming on just about every second suburban street corner and are typically sized between 2 000 m² to 10 000 m². Investment in these convenience centres is becoming riskier as they work well in buoyant consumer markets but are the first to take a knock when the market turns”.
Muller (2006:1) concludes that it is not certain to what extent consumer spend will slow down over the remainder of 2006 and onwards and that developers, retailers and property investors who focus on the convenience sector of the market should perhaps be more cautious when investing in smaller convenience shopping centres.
39 Schirnig (2006:1) also warns that property developers should be disciplined and operate in a strategic manner when trying to capitalize on the current boom in the demand for retail space, as an “over-ambitious” expansion could lead to a number of vacant stores as a result of tenant failure when consumer spend subside.
Viljoen (2006:62) indicates that developers are usually driven by retail tenants for space and when developing a centre the anchor tenants are the first to be put in place in a new development, with sub-major tenants and banks following thereafter. According to Viljoen (2006:62), developers are of late finding it harder to let the remainder of the available space once the anchors, majors and banks have taken up space in a proposed development, which in turn takes longer than before to satisfy the required 60% to 70% pre-let situation that financiers and prudent developers require before proceeding with a development. This, coupled with some retailer already saying in their trading updates that there are signs that the market is softening, are according to Viljoen (2006:62), early signs that developers should perhaps “take a bit of a breather now” in terms of development.
Prinsloo (2006:75) contends that the most important aspects regarding shopping centre development at present is the correct timing and the right size of a particular development. Prinsloo (2006:75) further state that a specific area is only right for a retail development if a certain number of households are already living in a particular area and that a “follow the roofs” strategy should be adopted by developers.
Simpson (2006:67) has a very positive outlook as opposed to the views of Muller, Viljoen and Schirnig (2006:67) by contending that there is “plenty of scope for both convenience centre and regional shopping centre growth” and lists a number of factors supporting his view as follows: (a) South Africa is arguably the most dynamic growth retail market in the world and the marketplace is neither dormant nor static with first world infrastructure and dynamic consumer shopping habits and aspirations.
40 (b) The expectations and demands of customers have changed over the past ten years with there being more dual income parents, there being less time with more things do to and also there being an abundance of choice and products in the marketplace. (c) The advent of “lifestyles” whereby customers indulge themselves in their own particular choice of environment, activities, products, behaviours and habits and where these customers have become sufficient enough in numbers to warrant their own type of shopping centres, so-called lifestyle centres.
Simpson (2006:67) is of the view that the above reasons supports numerous opportunities for retail property development, as he indicates is currently evidenced by the huge amount of new retail space being created at present in the South African market, but warns that the needs and wants of the customers should be the motivating factors for each and every new development if any sort of sustainable investment is to be realized.
2.9.3 The development of regional shopping centres With regard to regional shopping centres, Simpson (2006:67) believes that good regionals and mega-regionals that continuously reinvent themselves for their customers will continue to be strong alongside smaller more focused “selected range” convenience shopping centres. Simpson also argues that the key to a healthy co-existence situation lies in the ability of each centre to differentiate their offering.
Wiese (2004:3) is of the view that South Africa is overtraded in terms of certain shopping formats and in particular singled out regional shopping centres. Wiese (2004:3) maintains that there is limited opportunity for the development of new regionals and that developers have slowed down in their haste to build more centres. Wiese (2004:3) also argues that most new developments appear to be driven by retailers and that developers should rather explore the rest of Africa where opportunities are boundless.
41 2.10 CONCLUSION
This chapter provided a discussion on the literature related to the various key concepts of relevance to this study with specific reference to patronage, trade or catchment areas as well as the different types of retail outlets. The concept of convenience shopping as well as the various trends related to the development of shopping centres within South Africa as well as abroad was also included in the discussion.
The following chapter namely chapter 3 will provide a description of the research design. The chapter will discuss the data collection process and will also include a discussion on the consumer survey to be conducted as part of the execution of the study.
42 CHAPTER 3
RESEARCH DESIGN
3.1 INTRODUCTION
The purpose of this chapter is to provide details on the research design and methodology to be followed in the context of the research problem and objectives as summarised in paragraph 1.2 and 1.3. The research design plan will be discussed including the data collection design, the plan of analysis, the data collection method and the analysis of the collected data.
3.2 DEFINITION OF RESEARCH DESIGN
The research design is the plan to be followed to answer the research objectives or hypothesis. The research design can further be defined as a structure or framework used by a researcher to solve a specific problem (McDaniel and Gates, 1998:30). Chisnall (1997:31) indicates that the research design should ensure that the information obtained is relevant to the research problem and that it was collected by objective and economic procedures. Zikmund (2003:740) states that the research design should be a master plan specifying the methods and procedures for collecting and analyzing the required information.
3.3 OBJECTIVES OF THE STUDY
Zikmund (2003:99) defines the research objectives as the purpose of the research expressed in measurable terms indicating what the research should accomplish. McDaniel and Gates (1998:30) agree with Zikmund (2003:99) by stating that the research objectives serve as a road map in developing the research problem and in solving the specific research problem. McDaniels and Gates (1998:28) also indicate that the research objectives culminate from the identified research problem.
43 The problem statement as identified in paragraph 1.2 can be adapted to formulate the primary objective of the research as follows:
3.3.1 Primary research objective The research has to determine whether the development of smaller convenience retail shopping centres within the catchment areas of large regional shopping centres has any effect on the patronage of the large regional shopping centres and should also attempt to measure the impact on patronage, if any.
3.3.2 Secondary research objectives Flowing from the primary objective, the secondary objectives of this study can be summarised as follows: a) To establish whether consumers/shoppers supporting large regional shopping centres are aware of the increase in the various new forms of retail offerings within the catchment areas of regional shopping centres over the past ten years. b) To establish the extent and frequency to which shoppers support smaller convenience retail offerings as defined under paragraph 1.7. c) To establish whether shoppers prefer to shop in smaller convenience retail outlets as opposed to shopping at a large regional shopping centre. d) To determine the reasons and for what type of purchase or services a shopper would typically visit convenience retail outlets and regional shopping centres and whether the reasons for visiting and the type of products or services purchased differ between the two retail formats. e) To determine whether the size of the retail outlet or shopping centre affects the decision to visit the shopping centre. f) To establish any other non-product or service related reasons why a shopper would visit a regional shopping centre or a smaller convenience shopping centre. g) To determine whether there are any analogies which can be drawn between the demographical profile of shoppers and their decision whether to shop at a regional or neighbourhood shopping centre.
44 h) The outcome of the research should ultimately confirm whether there are any real competition in terms of attracting and retaining patrons between regional shopping centres and smaller convenience retail shopping centres.
3.4 RESEARCH METHOD
Zikmund (2003:54) identifies three research methods, the choice of which is dependant on the nature of the problem. The three research methods are defined by Zikmund (2003:54) as exploratory research, descriptive research and causal research. Chisnall (1997:32) and Webb (1995:20) also group the types of research into the three categories as decribed by Zikmund.
3.4.1 Exploratory research According to Zikmund (2003:54), exploratory research is usually conducted to “clarify ambiguous problems”. Zikmund (2003:55) further indicates that exploratory research is used to provide information which is then used to analyze a situation rather than to provide information to be used for establishing a definite course of action. Zikmund (2003:55) further argues that exploratory research is usually conducted with the expectation that subsequent research will be conducted with a view of providing conclusive evidence to the exploratory research.
Webb (1995:21) explains that exploratory research is most useful in the preliminary stages of a research project when the level of uncertainty with regard to the subject in question is high. Webb (1995:21) contends that exploratory research is characterized by a large degree of flexibility with a lack in formal structure and any formal attempt to measure.
3.4.2 Descriptive research The aim of descriptive research according to Zikmund (2003:55) is to “describe characteristics of a population or a phenomenon”. Chisnall (1997:32) points out that descriptive research, in contrast to exploratory research, stem from “substantial prior
45 knowledge of market variables” and that questions around this research are usually designed to obtain specific kinds of information.
Webb (1995:21) contends that it is the main purpose of exploratory research to uncover the variables of a specific situation and that it follows that descriptive research will thereafter provide an accurate and valid description of the variables. McDaniel and Gates (1998:31) agrees with Webb (1995:21) by stating that implicit to descriptive research is the fact that previously conducted exploratory research has already established the “underlying relationships of the problem area” and that descriptive research then answers the more detailed questions related to the established problem.
3.4.3 Causal research Zikmund (2003:56) argues that the main purpose or goal of causal research is to identify cause and effect relationships among variables and that exploratory and descriptive research usually precede cause and effect relationship studies. Zikmund (2003:56) also explains that causal research attempts to establish “that when we do one thing, another thing will follow”.
McDaniel and Gates (1998:31) confirm that in casual studies, the researcher investigates whether one variable causes or determines the value of another variable. Webb (1995:22) further indicates that causal research should be employed when a mere description of the variables relevant and active to the research problem forthcoming from exploratory and descriptive research does not satisfy the specific research demands.
The purpose of this study is mainly to conduct exploratory research related to the propositions identified in paragraph 1.5, but will encompass elements of descriptive and causal research to satisfy the secondary research objective as described under 3.3.2 above under the heading “Secondary research objectives”.
46 3.5 RESEARCH DATA
3.5.1 Definition of data Zikmund (2003:736) simply defines data as “recorded measures of certain phenomena”. These recorded measures can perhaps be further described when considering the definition of data provided by the Oxford dictionary (1990:294) as “known facts or things used as a basis for inference or reckoning”.
3.5.2 Sources of data As indicated in paragraph 1.11, the study will make use of two sources of data which are described by Zikmund (2003:63) as primary and secondary data. Primary data is defined by Zikmund (2003:63) as data which is gathered and assembled specifically for the project at hand and further defines secondary data as data which has previously been collected for a different project, other than the specific problem at hand. Webb (1995:23) agrees with Zikmund (2003:63) by indicating that secondary data is data that has already been collected for some other purpose than the one under consideration while primary data is specifically collected to answer the questions posed by the current research objectives.
3.5.2.1 Primary data The primary data will be assembled by way of surveys which according to Zikmund (2003:66) is the most common method of data collection. Zikmund (2003:66) further defines a survey as a “research technique in which information is gathered from a sample of people using a questionnaire.”
The collection of the primary data will be more qualitative than quantitative as this study is leaning more towards being exploratory in nature as indicated under paragraph 3.4 in this chapter. Some of the questions in the survey do however have a qualitative nature. McDaniel and Gates (1998:98) define qualitative data as research data “not subject to quantification or quantitative analysis”. Quantitative data is in turn defined by McDaniel and Gates (1998:98) as data colleted for the purpose of mathematical analysis and revealing statistically significant differences.
47
3.5.2.2 Secondary data A number of research studies specifically related to the demographics of Cresta Regional Shopping Centre, the shopping centre which will form the subject for the testing of the proposition of this study, have been completed by a specialised research company over the past few years. These studies have been conducted with the primary objective of obtaining an understanding of consumers and expenditure patterns in the primary and surrounding catchment areas of the centre. The studies completed incorporated both intercept interviews and household surveys. The latest study compiled by Urban Studies (2006:1) included the following objectives:
(a) Trade area demarcation including geographical maps detailing the origins of shoppers. (b) Demographic and socio-economic profile of shoppers and households. (c) Tracking the frequency of visits to the shopping centre. (d) Establishing centre support for specific store types and determining the loyalty of shoppers towards the centre. (e) Tracking residential growth within the catchment area of the centre as well as the densification of existing suburbs. (f) Establishing improvements in infrastructure and detailing other developments impacting on Cresta Shopping Centre.
These previously conducted studies will provide valuable information in support of the exploratory nature of this specific study and will furthermore be used to compare the results of the survey to be done in terms of accuracy of information and to possibly correct any errors which may have occurred during the collection of data.
Further secondary data sources, as indicated under paragraph 1.9.1, will be articles published by the South African Council of Shopping Centres as well as information published by Statistics South Africa related to the growth of the population in the specific sample area. A further source of information will be the results of marketing surveys
48 conducted by the in-house marketing department of Cresta Shopping Centre which are usually designed to measure the effectiveness of various marketing initiatives.
3.6 SAMPLING
The definition of sampling as well as the distinction between probability sampling and non- probability sampling was discussed in paragraph 1.10. As indicated in paragraph 1.10, the sampling technique to be used for the purposes of this study is probability sampling. Probability samples which according to Sudman and Blair (1998:347) is also called random sampling use a random process to select population elements for the sample and give every population element a known, nonzero chance of selection (McDaniel and Gates, 1998:32; Zikmund, 2003:740; Hague and Jackson, 1996:99).
Sudman and Blair (1998:348) further explain that probability samples rely on chance and that the reasoning behind probability sampling is that if selections are made purely by chance, it follows that a large sample will naturally contain a representative cross section of the population. Sudman and Blair (1998:349) also indicate that non-probability samples are subject to possible biases and that probability samples are not prone to bias.
From the above discussion it is evident that probability sampling is the preferred sampling method in order to ensure an accurate representation of the population within the catchment area of the subject shopping centre and to eliminate any possible bias.
3.6.1 Types of probability sampling Sudman and Blair (1998:348) identify three broad types of probability samples namely simple random sampling, stratified sampling and cluster sampling. These three sampling types are briefly described by Sudman and Blair (1998:348) as follows:
(a) Simple random sampling – Population members are directly selected from a sampling frame. The sampling frame in this context is described as “a list or system that identifies every member of a population so that a sample can be drawn without
49 physically contacting every member of the population”. This type of sampling is designed to give an equal probability of selection to all population members in the frame. (b) Stratified sampling – This type of sampling entails the separation of the population into subgroups namely strata and simple random samples are then drawn within each group. (c) Cluster sampling – Probability sampling by grouping population members into clusters and drawing a sample of clusters.
As confirmed in paragraph 1.10.1, this study will be conducted on a simple random sampling basis. The sampling frame in the context of the study will be the population residing in the primary, secondary and tertiary catchment area of Cresta Regional Shopping Centre.
3.6.2 Unit of analysis Zikmund (2003:96) describes the unit of analysis as the stage where a researcher determines whether the specific research problem requires a specific focus on an entire organization, work groups, individuals or objects. The unit of analysis as indicated in paragraph 1.10 will be individuals and households forming part of the sample frame, as this study focuses on patronage of shoppers which necessitate the focusing on individuals rather than a specific group. The questionnaire will however also incorporate the household or family as a group as the behaviour of the family as one unit could influence the behaviour of an individual.
3.6.3 Surveys The primary data for this study will be collected through the use of surveys as explained in paragraph 3.2.5.1 above. The completion of these surveys will be done by way of intercept interviews as well as household surveys. The questionnaire is constructed in such a way that it will in essence be self-administered however the interviewer will be present when the survey is completed to assist should the respondent require an explanation or clarity with regard to specific questions.
50
Household surveys according to McDaniel and Gates (1998:182) have the benefit that a respondent is seen to be at ease in a familiar and secure environment namely in their homes. Face to face contact is also a positive factor as questionnaires can be completed faster as a result of the availability of the interviewer to explain complicated tasks. Prinsloo (2001:146) also confirms that personal interview surveys “foster greater trust among respondents and allows for observation of age, race and other demographic data” which contributes to the accuracy of data.
The household and mall intercept interviews are preferred above other data collection methods as it is faster to administer. The amount of information required on the questionnaire is fairly substantial which eliminates lengthy telephone interviews. Mail questionnaires will also take much longer to execute and does not suite the nature of this study namely to interview shoppers who actually does visit Cresta Shopping Centre. Previous studies performed at Cresta Shopping Centre, which results as part of secondary data will be compared to this study, was also done on a mall intercept and household survey basis and data collection methods will therefore be consistent when comparing results to ensure accuracy.
An intercept survey is defined by Sudman and Blair (1998:719) as a “survey administered by intercepting visitors to some public place such as a shopping mall or a city street”. The 500 exit surveys to be conducted will form the basis for understanding the behaviour of shoppers patronising the centre. The exit surveys will in particular confirm the origin of shoppers, the basic demographics of shoppers, the frequency of visits to Cresta Shopping Centre and other convenience retail outlets and also measure the loyalty of shoppers.
The main purpose of the household survey is to further ensure that the sample is reflective of the shoppers residing in the primary and secondary catchment area of the centre through a stratified random sampling process. McDaniel and Gates (1998:315) explain that stratified samples are in most instances used rather than random sampling because of their potential for greater statistical efficiency.
51
The household surveys will also be imperative to the study in the sense that respondents who do not visit Cresta Shopping Centre will also be included in the sample frame and their shopping behaviour in terms of other convenience retail formats will be recorded as part of the overall objectives of the study. The household surveys will therefore ensure a more representative sample frame.
3.6.4 Survey population McDaniel and Gates (1998:302) indicate that the objective with defining the population of interest is to “specify the characteristics of those individuals or things from which information is needed to meet the objectives of the research”.
For the purposes of this study, the survey population will be individuals who reside within the catchment area of the centre, above the age of 18 years. The survey population will exclude employees of Cresta Shopping Centre and individuals employed by the various stores operating within the centre. This will be ensured through a screening question at the beginning of the questionnaire, qualifying potential respondents.
3.6.5 Sample frame The term “sample frame” is closely related to the “survey population” as explained in 3.6.4 above. The sampling frame is defined by Sudman and Blair (1998:338) as “a list or system that identifies every member of a population so that a sample can be drawn without physically contacting every member of the population.” The sample frame for this study can best be described as individuals residing and shopping within the catchment area surrounding Cresta Shopping Centre.
3.6.6 Sample size Mariampolski (2001:58) indicates in terms of sample size that “a sufficient number of respondents should be interviewed so that meaningful comparisons can be made between individual respondents. McDaniel and Gates (1998:345) further confirm that other things being equal, the larger the size of the sample, the less the sampling error.
52 The sample size for this study was discussed in paragraph 1.9.2. The size of the sample selected for this study was arrived at from determining the sample size of other similar studies conducted by leading researchers at various Regional Shopping centres as well as Cresta Shopping Centre.
3.7 MEASUREMENT
According to McDaniel and Gates (1998:227), measurement relates to the “process of assigning numbers or labels to things in accordance with specific rules to represent quantities or qualities of attributes.”
McDaniel and Gates (1998:227) further explain that measurement is therefore a process where numbers are being assigned to “reflect the amount of an attribute possessed by an event, person or object”. It should be noted that it is not the event, person or object which is being measured but rather its attributes. A researcher for example does not measure a consumer but rather measures factors such as attitudes, income levels, brand loyalty and age.
3.7.1 Measurement scales McDaniel and Gates (1998:228) define a scale as “a set of symbols or numbers constructed to be assigned by a rule to the individuals and their behaviours or attitudes, to whom the scale is applied”. Zikmund (2003:741) provides an alternative explanation namely “any series of items that are progressively arranged according to value or magnitude; a series into which an item can be placed according to its quantification.
3.7.2 Levels of measurement The four commonly used measurement levels or scales are briefly summarized by Lehmann (1989:201) as follows:
(a) Nominal scales – This is the simplest type of scale or measurement which arbitrarily assigns an identification or classification to each response for example the coding of
53 males as 1 and females as 2. Nominal scales are useful for competing frequencies but are mostly for identification purposes. (b) Ordinal scales – These types of scales allow for alternatives to be arranged to their magnitude. In an ordinal scale, the higher the number, the more or less a specific measurement item exists. In addition to frequencies, ordinal scales allow for medians and percentiles. (c) Interval scales – An interval scale is a scale where differences between scale values have meaning while the absolute scale values are not meaningful. Zikmund (2003:298) adds that an interval scale “not only arranges objects or alternatives according to their magnitudes but also distinguishes the ordered arrangements in units of equal intervals”. (d) Ratio scales – The focus when using ratio scales is the ratio between the various scale values. According to Sudman and Blair (1998:449) ratio scales have the characteristics of order among scale points, equal distances among all adjacent scale points and an absolute zero.
Ordinal scales is mainly used in this study as a form of measurement in the section in the questionnaire dealing with shopping behaviour, which is the most important section on the questionnaire when considering the objectives of the study. Most of the questions in this section are typical ranking questions.
The remaining questions in the questionnaire dealing with patronage and the demographic profile of shoppers are of a nominal scale type nature as the main purpose of these questions is to determine frequencies and the identification and classification of shoppers.
3.7.3 Measurement criteria According to Zikmund (2003:300) there are three major criteria for evaluating measurements namely reliability, validity and sensitivity.
(a) Reliability – Zikmund (2003:300) indicates that reliability is the degree to which measures are free from errors and therefore yield or provide consistent results.
54 Chisnall (1997:34) confirm that reliability refers to the stability and consistency of the results derived from the research and thus the probability that the same results could be obtained if the measures used in the research were repeated or replicated. (b) Validity – Zikmund (2003:302) confirms that validity is the ability of a measure to measure what it is supposed or designated to measure. Chisnall (1997:34) further state that validity refers to how well a specific research method measures what it claims to measure. (c) Sensitivity – Sensitivity according to Zikmund (2003:304) refers to a measurement instrument’s ability to accurately measure variability in stimuli or responses. Zikmund (2003:304) explains that a question in a questionnaire which merely asks for an “agree” or “disagree” answer, does not allow for subtle differences in answers whereas a question which has a wider measure in sensitivity for example “strongly agree”, “mildly agree”, “neither agree nor disagree” “mildly disagree” and “strongly disagree” would increase a scales sensitivity.
The reliability of the measures used as part of the questionnaire will be assessed through the Test-retest reliability approach and Alternative-form reliability approach. These to approaches are defined by Tull and Hawkins (1987:223) as follows:
(a) Test-retest reliability approach – This reliability approach relates to estimates which are obtained by repeating the measurement through the use of the same instrument under as nearly equivalent conditions as possible. (b) Alternative-form reliability approach – Alternative-form reliability relates to estimates obtained by “applying two equivalent forms of the measuring instrument to the same subjects. Similar to the test-retest reliability concept, the results of the two corresponding instruments are compared on an item-by-item basis and the degree of similarity is obtained.
The measures forming part of the questionnaire will be retested by requiring some of the respondents to complete the questionnaire a second time and comparing the answers provided in order to obtain an indication as to the consistency of responses. Some of the
55 questions in the questionnaire are similar in nature and the responses to these questions will be considered in order to determine whether the responses are also similar and consistent.
Some of the measures forming part of the questionnaire will also be measured against a study conducted recently by a Market research company. Any discrepancy in the reliability of the results will therefore be clearly pointed out through comparison to the secondary research previously conducted.
The validity of responses to the questionnaire will be ensured by utilising one of the three approaches to evaluate validity namely, face or content validity, criterion validity and construct ability (Zikmund, 2003:302). These three approaches are briefly summarized by Zikmund (2003:302) as follows:
(a) Face or content validity – This form of validity refers to “the subjective agreement among professionals that a scale logically appears to reflect accurately what it purports to measure”. (b) Criterion validity – Criterion validity refers to the ability of measures to correlate with other measures used to measure a similar construct or concept. A construct in this context refers to a generalized idea about a class of objects, attributes, occurrences or processes which has been given a specific name. (c) Construct validity – Construct validity relates to the ability and degree to which a measure “confirms a network of related hypothesis generated from a theory based on the concepts”. Construct validity is established during the statistical analysis of the collected data and implies that the empirical evidence generated by a measure is consistent with the theoretical logic related to the construct or concept. If a measure “behaves the way it is supposed to in a pattern of intercorrelation with a variety of other variables, there is evidence for construct validity”.
56 The results of this study will mostly be validated using the content validity approach by ensuring that the results of the questionnaire accurately measured what the questionnaire intended to measure from the outset.
The questionnaire design will furthermore incorporate adequate variability in the different measurement scales to be formulated for each question which could be prone to a high degree of sensitivity, in order to ensure that the results of the study allow for and conform to a wide measure of sensitivity.
3.8 QUESTIONNAIRE DESIGN
McDaniel and Gates (1998:228) indicate that a questionnaire can be defined as a set of questions designed to generate the data necessary for accomplishing the objectives of the research project. Chisnall (1997:128) further argue that a questionnaire is a method of “obtaining specific information about a defined problem so that the data, after analysis and interpretation, results in a better appreciation of the problem”.
The primary and secondary research objectives of this study were discussed in paragraph 1.3 which was further expanded upon in paragraph 3 of this chapter. These objectives are in line and supports the research propositions as identified in paragraph 1.5. The aim of the questionnaire as a measurement instrument, will be to ensure that these identified objectives are achieved through the construction of effective and relevant questions.
The characteristics of measurement and scaling as discussed in paragraph 3.7 above will be incorporated in the design of the questionnaire.
57 3.9 CONSTRUCTING THE QUESTIONNAIRE
The questionnaire consist of three different sections as can be seen from the final questionnaire attached as Appendix 1, namely (a) Patronage behaviour, (b) Shopping behaviour and (c) Demographic information as well as an Introduction.
The Introduction is aimed at providing information to the respondents on the reason for the collection of data through the completion of the questionnaire and also the purpose of the study being conducted.
The questionnaire has been designed in such a way that it avoids complexity of questions as well leading questions. Leading questions is defined by Zikmund (2003:336) as questions which suggest or imply certain answers.
Section A – Patronage behaviour This purpose of this section is to determine the frequency of patronage of shoppers and the impact of their support to the specific subject regional shopping centres and the smaller convenience centres forming part of the study.
Question 1 – This question relates to establishing the frequency of visits by respondents to Cresta Regional Shopping Centre and is the typical frequency-determination question listing a number of fixed-alternative questions that asks for an answer about general frequency of occurrence (Zikmund, 2003:333).
Question 2 – Question 2 is a simple-dichotomy question as identified by Zikmund (2003:333), which requires that respondents choose between two alternatives, in this instance “yes” or “no”. The purpose of the question is to determine whether respondents are aware of new convenience centres built in the areas where they reside and to identify which ones they are aware of and are supporting.
58 Question 3 – This question is similar to Question 1 in this section as the aim of the question is to determine the respondents’ support for smaller convenience centres. In this question, a number of examples of convenience centres are provided in order to clarify in the respondents’ mind what typically can be classified as a convenience centre.
Question 4 – Question 4 is aimed at establishing the frequency of visits to the typical filling station convenience store and is also constructed as a frequency-determination question as discussed in Question 1 of this section.
Section B – Shopping behaviour Section B is more focused on the behaviour of shoppers in the sense that the questions in this section is aimed at determining the reasons for respondents behaving in a specific manner within the framework of visiting convenience shopping centres in the catchment area of Cresta Shopping Centre versus shopping at Cresta Shopping Centre.
Question 5 – The objective of question 5 is to determine the reasons or purpose for which respondents would typically visit Cresta Shopping Centre. The question is in an itemized rating scale format which is described by McDaniel and Gates (1998:239) as “a scale in which the respondents select an answer from a limited number of ordered categories”.
Question 6 - This is an open ended response question requiring the respondent to answer in his own words (Zikmund, 2003:333). The question is supplementary to Question 5 in the sense that any other reason not included in the categories listed in question 5 can be provided.
Question 7 – The question is similar to Question 5 as it is also in an itemized rating scale format with the aim of determining the reasons for visiting convenience centres located in close proximity to Cresta Shopping Centre.
Question 8 – Question 8 provides for garage type retail formats to also form part of the study but is an open ended response question instead of a rating scale in order to reduce
59 the time for completing the total questionnaire. This will ensure that respondents do not get agitated with repeat questions.
Question 9 – This question is in the form of an ordinal scale which according to Zikmund (2003:739) is a scale that “arranges objects or alternatives according to their magnitudes”. The aim of the question is for the respondent to rank the reasons in the order of 1 to 9, why they would rather visit Cresta Shopping Centre instead of a smaller convenience centre. The answer to this question will establish whether there is a preference in supporting a regional shopping centre rather than a convenience centre and the corresponding reasons. The second part of the question is an open ended response question aimed at obtaining any other reason not provided for in the possible alternatives as listed in the first part of the question.
Question 10 – Question 10 is constructed in a similar fashion as question 9 in terms of ranking a number of stated alternatives. The question has the same aim as question 9 however the focus is on whether respondents have a preference for visiting a convenience centre rather than a regional shopping centre and the reasons for the preference. Similar to question 9, the second part of this question also provides for the respondent to state any other reasons not listed in the ranking section of the first part of the question.
Question 11 – The purpose of question 11 is to determine the reasons, in an open ended response format, as to why a respondent would never visit Cresta Shopping Centre. The question is aimed at respondents who never visit Cresta Shopping Centre and would mostly be completed during the household interviews and not the intercept interviews.
Section C – Demographic information This section is aimed at establishing the demographic profile of the respondents and will be compared to secondary research in order to ensure that the sample conforms to the previously established demographic profile of shoppers as constructed by resent research conducted for Cresta Shopping Centre by a research company.
60 Question 12 – This question will determine the gender of the respondent.
Question 13 – This question will determine the age of the respondent.
Question 14 – Question 14 requires the respondent to indicate his/her home lanuage.
Question 15 – The aim of question 15 is to determine the size of households, the amount of cars per household, if any, and the number of people in a household earning an income. This question will identify whether the amount of people per household, cars per household and amount of earners per household have any influence on the frequency of visits and other behaviour related to shopping at Cresta Shopping Centre versus shopping at another convenience outlet.
Question 16 – Similar to question 15, the answer to this question requiring the respondent to list his/her occupation will assist in determining whether occupation has any influence on shopping behaviour. The question will also assist in determining the consumer behaviour of working women versus housewives as well as assist in tracking the behaviour of students.
Question 17 – Question 17 will provide an indication on how long a shopper has resided at his/her current address and thus the amount of years he/she has resided within the catchment area of Cresta Shopping Centre. The second part of the question also requires the respondent to indicate how long he/she has been a shopper at Cresta Shopping Centre. The overall aim of the question is to determine whether patrons or shoppers have some form of loyalty towards Cresta Shopping Centre.
Question 18 – Question 18 will determine whether the current life cycle of the respondent has any influence on his/her shopping behaviour in terms of supporting a regional shopping centre versus supporting convenience outlets.
Question 19 – This question requires the respondent to indicate his/her household’s Gross level of income. The aim is to establish whether the level of monthly income per household
61 has any influence on its frequency of visits to Cresta Shopping Centre versus supporting other convenient shopping outlets within the catchment area of Cresta Shopping Centre.
Question 20 – The final question of the questionnaire is imperative in that the respondent will indicate the suburb and street where he/she currently resides. The answer to this question will assist in determining whether the respondent actually resides within the primary, secondary and tertiary catchment areas of Cresta Shopping Centre. Should the respondent not reside within these catchment areas the questionnaire will not be considered for the purposes of this study. The question will also assist with plotting the support from the various suburbs within the catchment area of Cresta Shopping Centre.
Eventhough Section C will mostly be of importance to verify whether the sample conforms to the already established demographic profile of shoppers as explained in the introductory paragraph to this section, it will also be of importance to determine whether certain demographic characteristics influence the behaviour of shoppers, in line with the primary and secondary objectives as established at the beginning of this chapter.
The questionnaire will be forwarded to the statistical consultation services of the University of Johannesburg in order for them to review and identify any questions which could cause complications when analysing the data prior to the commencement of the fieldwork.
3.10 DATA ANALYSIS
Following the completion of the required number of surveys, the data analysis process will begin. Hague and Jackson (1996:161) confirm that data analysis is “the process of aggregating the individual responses or ‘raw’ data”.
62 Zikmund (2003:453) indicates that the data analysis process consists of a number of stages which can be summarized in sequence as follows:
1) Editing 2) Coding 3) Data entry 4) Data analysis
The above four steps are known as the error checking and verification stage. Following data analysis is the interpretation stage which according to Zikmund (2003:491) is the “process of making inferences and drawing conclusions concerning the meaning and implication of a research investigation.” The interpretation of the research results will be discussed in the next chapter.
3.10.1 Editing Zikmund (2003:454) defines this step as the process which ensures the completeness, consistency and reliability of data. It also involves the process of preparing data for coding and transfer to data storage. A more practical explanation is provided by Chisnall (1997:399) namely that editing ensures that the information on the questionnaire or survey forms is complete, accurate and consistent.
(a) Field editing As explained in paragraph 1.12 above, the editing will involve a field editing and In-house editing process. Zikmund (2003:454) indicates that field editing has the main purpose of ensuring that there are no technical omissions on the questionnaires, to ensure that handwriting is legible and to clarify responses which are logically or conceptually inconsistent.
Field editing will be conducted on the same day as the day on which the interviews are conducted as responses and interviewees will still be fresh in the mind of the fieldworkers, enabling them to recall and deal with bad or unclear responses.
63 (b) In-house editing In-house editing according to Zikmund (2003:454) is a further process of “rigorously investigating” the results of the data collection after field editing has been completed. In- house editing will be done in order to ensure that the results are accurate and any inconsistencies will be investigated and followed up with respondents.
(c) Dealing with bad data It is however likely that there may be some respondents who can perhaps be described as “bad respondents”, who for some or another reason did not complete the questionnaire properly for example respondents who were in a hurry when being interviewed, and which resulted in inaccurate or incomplete data. As proposed by Lehmann (1989:360), the data will either be fixed up by contacting the relevant individuals and clarifying their responses, or alternatively the data will be used as it is and tabulated or recorded as inconsistent responses. The inconsistent responses would possibly not severely distort the data as a result of the relatively big sample frame to be used for this study. A third option proposed by Lehmann (1989:361) is to throw out bad responses. This will only be done should there be adequate “positive” responses to fulfill the required sample size.
The above scenarios will be discussed with the statistical consultation service at the University of Johannesburg and the appropriate method selected.
3.10.2 Coding Coding according to Zikmund (2003:457) is the process of “identifying and classifying each answer with a numerical score or other character symbol”. These numerical symbols are then used to transfer data from the survey to the computer. The definition provided by McDaniel and Gates (1998:356) is similar to Zikmund namely that coding is the process of “grouping and assigning numeric codes to the various responses to a particular question.
In line with the view of Chisnall (1997:400), the questionnaire will be tested through a pilot stage, which will provide clarity on the amount of detailed classification of the data required. The coding frames forming part of the questionnaire will therefore only be included in the
64 questionnaire once they have been properly tested. All closed-ended questions will be pre- coded.
Chisnall (1997:400) further indicates that open questions can only be coded after a thorough examination of a representative selection of completed forms, whereafter proper categories can then be drawn and to which answers can then be allocated and coded.
3.10.3 Data entry Data entry also known as keyboarding is defined by Zikmund (2003:736) as the process of transferring data from a research project to computers. As indicated in paragraph 3.7.1, the data entry process will also be undertaken by the statistical consultation service at the University of Johannesburg and will be subject to a verification process.
3.10.4 Data analysis Three forms of data analysis will be used, the first being descriptive analysis. Descriptive analysis entails the transformation of raw data into a form that will make them easy to understand (Zikmund, 2003:736). In the context of this study, descriptive analysis will provide answers to questions like the frequency of visits to the relevant shopping centre by residents in a specific area or the frequency of visits to a specific tenant by a certain age group.
The second form of analysis would be bi-variate data analysis which is used when two variables are simultaneously investigated using tests of differences or measures of association between the two (Zikmund, 2003:734). The proposition to this study includes the testing of more than one variable and the relationship between these variables and the bi-variate data analysis technique would therefore be applied. In the contexts of this study this would for example be the shopper behaviour patterns of working women as opposed to non-working women within the framework of convenience shopping.
Multi-variate data analysis will also be applicable for the purpose of this study and can be described as a statistical method that allows the simultaneous investigation of more than
65 two variables (Zikmund, 2003:739). In the context of the study, this would for example be variables such as drive time to a shopping centre, distance from a shopping centre and the size of a shopping centre and the effect of these variables on the patronage of a specific centre.
The statistical consultation service at the University of Johannesburg have confirmed that the actual editing and data capturing or coding process is outsourced to an external organisation at no cost to students and that they also assist with the relevant analytical techniques to analyse the data.
3.11 CONCLUSION
This chapter restated and further elaborated on the primary and secondary objectives of the study and furthermore provided details on the research design with specific reference to the research method, the collection of data, the sample to be used and the measurement criteria. The construction of the questionnaire and the relevance of the various questions forming part of the questionnaire were also discussed in detail. The final section of the Chapter dealt with the process to be followed in terms of data analysis.
The next chapter will elaborate on the results of the research findings as per the predetermined and stated primary and secondary objectives summarized in paragraphs 3.3, 1.3 and in accordance with the different research propositions as formulated in paragraph 1.5.
66 CHAPTER 4
RESEARCH RESULTS
4.1 INTRODUCTION
This chapter will report on the results of the research conducted in accordance with the research methodology and design as discussed in the previous chapter. The chapter will mainly incorporate a discussion on the results of the questionnaires conducted as it formed the primary basis of data collection. The results of the questionnaire will be discussed by reporting on the answers provided by respondents on a question by question basis.
The sample and validity of the questionnaires will also be discussed as well as the secondary research obtained which proved to be complimentary to the outcome of the research results of this study. The secondary research collected will furthermore be compared with the results of the primary research findings and deductions will be made where applicable.
4.2 THE VALIDITY AND RELIABILITY OF RESULTS
For any research study to be successful, it is imperative that it be established that the results are valid and reliable as discussed in paragraph 3.7.3 dealing with “measurement criteria”.
Validity as described in paragraph 3.7.3 is defined by Zikmund (2003:302) as “the ability of a scale or measuring instrument to measure what it is intended to measure”. Reliability is furthermore defined by Zikmund (2003:300) as “the degree to which the results are free from errors and whether there is consistency in the results”.
The questionnaire for this study was designed in such a way that from a face validity point of view, it can be reasonably accepted that the results accurately reflect what the study
67 anticipated and intended to measure, within the framework of the study mostly being exploratory in nature. Zikmund (2003:302) defines face or content validity as the subjective agreement among professionals that the measurement instrument adequately measured what it set out to measure.
Face validity was evaluated by members of the statistical consultation service at the University of Johannesburg and it was established that the questionnaire did provide accurate coverage of the objectives of the study as outlined in paragraph 3.3.
The reliability of the results was confirmed through the consistency in the answers provided by the different respondents. The sample also allowed for different geographic areas as well as different demographic profiles of respondents who participated in the study and thus conform to the requirement as described by Zikmund (2003:300), that the same results should be achieved across different situations in order for results to be reliable.
4.3 REPRESENTATIVENESS OF RESULTS
The sample size of the study was reduced to 210 respondents as a result of difficulty experienced during the conducting of the fieldwork. This mostly related to the length of the questionnaire and the unwillingness of respondents to participate as a result of the time it took to complete the questionnaire, especially during the conducting of the intercept interviews at Cresta Regional Shopping Centre.
The household interviews however proved to be more successful, possibly because respondents were in a more relaxed state of mind within their own comfortable environment where the availability of time to fully comprehend and complete the questionnaires was not a barrier to participate in the study.
The key question under representativeness however is whether the sample is representative of the population residing within the catchment areas of Cresta Shopping Centre and also of the population who frequents the subject centre. The questionnaire did
68 provide for the recording of the suburbs within which respondents resided and the sample could therefore be compared to the previously demarcated catchment areas as established through secondary research conducted. The sample was found to be representative of the patrons frequenting Cresta Shopping Centre.
The reliability of the sample will be further discussed in this chapter in question 18 which deals with the area in which respondents reside, when reporting on the question by question results.
4.4 QUESTION BY QUESTION RESULTS
The results of the responses to the questionnaires will be discussed by way of repeating each individual question and then briefly repeating the relevance of the question as discussed in chapter 3 as well as the responses to each question.
4.4.1 Qualification question As discussed in paragraph 3.6.4 dealing with the survey population, it was imperative that a screening question be added in order to ensure that the results of the questionnaire are not distorted by factors which could affect the validity and reliability of the results.
The screening question as incorporated in the questionnaire made provision for the exclusion of individuals who work at Cresta Shopping Centre as well as individuals younger than 16 years and those who do not reside within the catchment area of Cresta Shopping Centre, which through secondary research was established to be within an approximate 15 kilometer radius.
The exclusion of individuals working at the centre made provision for the fact that it seems logical that these individuals would distort the sample as they would visit Cresta Shopping Centre on a daily basis and would most probably do most of their shopping at the centre as a result of it being the most convenient location. The reasoning behind the exclusion of individuals younger than 16 years, was mainly as a result of these individuals most
69 probably not earning a fixed income and therefore being dependant on a parent or guardian in terms of shopping destination and also when and how frequent shopping would be done.
The questionnaires in which respondents indicated that they do not fall within the criteria as outlined in the screening question for participation in the study, were not included in the batch of questionnaires which was forwarded for editing an coding. The screening question furthermore instructed the respondent to not proceed further with the survey if they did not meet the screening criteria and was therefore effective in ensuring that the sample is valid and reliable.
4.4.2 Section A The objective of Section A was to measure patronage behaviour within the framework of the study which focused on the patronage of regional shopping centres and the patronage of other more conveniently located shopping facilities within the catchment area of the specific subject regional.
The questions in this section were designed to measure the frequency of visits to regional shopping centres as well as convenience shopping centres and filling station outlets and to thus establish a platform for measuring support for these different retail formats.
(a) Question 1 How often do you visit Cresta Shopping Centre?
The results in terms of the frequency of visits to Cresta Shopping Centre are illustrated in Table 4.1.
The results of this question indicates that 64.4% of the respondents visit Cresta Shopping Centre at lease once a week and that almost all of the respondents (96.6%) visit Cresta Shopping Centre at least once a month. The frequency percentages were the highest for patrons visiting the centre 2 to 3 times per week at 29.8%, with once a week (28.4%) and 2
70 to 3 times per month (26.9%) following closely thereafter. The patrons visiting Cresta Shopping Centre on a daily basis was recorded at 6.3%.
Table 4.1: Frequency of visits to Cresta Shopping Centre Valid Cumulative Frequency Responses Percent Percent Percent Daily 13 6.2% 6.3% 6.3% 2 to 3 times per 62 29.7% 29.8% 36.1% week Once a week 59 28.2% 28.4% 64.4% 2 to 3 times per 56 26.8% 26.9% 91.3% month Once a month 11 5.3% 5.3% 96.6% Less than once a 7 3.3% 3.4% 100.0% month Total 208 99.5% 100% Missing 1 .5% Total 209 100%
(b) Question 2 Are you aware of any small convenience shopping centres that have been constructed within the last 10 years in the area where you reside?
The respondent awareness with regard to the construction of small convenience shopping centres within the past 10 years is illustrated in Table 4.2.
Table 4.2: Awareness of small convenience shopping centres constructed Cumulative Respondents Percent Valid Percent Percent Yes 152 72.7% 74.1% 74.1% No 53 25.4% 25.9% 100% Total 205 98.1% 100% Missing 4 1.9% Total 209 100.%
71 The results in Table 4.2 clearly indicates that 74.1% of the respondents are aware of small convenience shopping centres constructed within the area where they reside with 25.9% of respondents indicating that they are not aware.
Please indicate which small convenience centres if you are familiar with their names:
The response rate to this question was very low however some conclusions can be drawn from the respondents who did complete the question.
Most of the responses to this question referred to the various convenience centres as listed in question 3, which could indicate that some of the respondents returned to this question after completing question 3 on the questionnaire. Some bias may therefore have occurred in the form of a possible leading question with regard to the answer to this question albeit in the phrasing of question 3. Zikmund (2003:336) defines a leading question as a question which suggest or implies certain answers.
Some of the centres mentioned in the answer to the open ended response question were however not mentioned in question 3. These include the following centres: Honeydew Village, Eagles landing, Palm Court, Woolworths Centre on 14th Avenue, Worldwear, Florida Junction, Mountain View Shopping Centre, Bergbron Shopping Centre, Beacon Isle, Boskruin Shopping Centre, Ferndale Village, All Saints, Olivedale Centre, The Terrace (Victory Park), Robindale Spar Centre, Hillcrest Centre, Wilropark Corner, Linden Square, Canterburry Crossing and Mellville Shopping Centre.
The centres mentioned is an indication that most of the respondents understood what was meant with the term “convenience shopping centre” even though some of the centres mentioned were older than ten years.
(c) Question 3 How often do you visit smaller convenience shopping centres in the vicinity of Cresta? (e.g. Blackheath Pavilion, L’Corro Shopping Centre, Appleby’s Market, RockCottage, Town
72 Square Shopping Centre, Fontainbleau Village Shopping Centre, Northcliff Square or any other similar type convenience centre)
The results in terms of frequency of visits to small convenience shopping centres are illustrated in Table 4.3.
Table 4.3: Frequency of visits to small convenience shopping centres Cumulative Respondents Percent Valid Percent Percent Daily 20 9.6% 9.7% 9.7% 2 to 3 times per 63 30.1% 30.4% 40.1% week Once a week 43 20.6% 20.8% 60.9% 2 to 3 times per 28 13.4% 13.5% 74.4% month Once a month 19 9.1% 9.2% 83.6% Less than once a 23 11% 11.1% 94.7% month Never 11 5.3% 5.3% 100% Total 207 99% 100% Missing 2 1.0 Total 209 100.0
The results summarised in Table 4.3 indicate that 60.9% of the respondents visits convenience centres at least once a week, with 30.4% visiting convenience centres 2 to 3 times per week and 9.7% daily. The frequency percentage was the highest for 2 to 3 times per week (30.4%) and once a week (20.6%).
(d) Question 4 How often do you visit a typical filling station outlet? (e.g. Engen Quickshop, Shell Select, BP Express shop).
The results in terms of frequency of visits to filling station outlet stores is summarised in Table 4.4.
73 Table 4.4: Frequency of visits to filling stations Cumulative Respondents Percent Valid Percent Percent Daily 5 2.4% 2.4% 2.4% 2 to 3 times per 30 14.4% 14.4% 16.8% week Once a week 43 20.6% 20.7% 37.5% 2 to 3 times per 34 16.3% 16.3% 53.8% month Once a month 39 18.7% 18.8% 72.6% Less than once a 34 16.3% 16.3% 88.9% month Never 23 11% 11.1% 100% Total 208 99.5% 100% Missing 1 .5 Total 209 100.0
Table 4.4 illustrates that 37.5% of respondents visit filling station outlets/shops at least once a week with 14.4% indicating that they visit filling station shops 2 to 3 times per week. The percentage respondents visiting filling station outlets at least once and also 2 to 3 times per month collectively amounted to 35%. The respondents visiting filling stations less than once a month as well as never amounted to 27.4% which is an indication that filling station shopping is probably done on a necessity basis or only when respondents stop to re-fuel their vehicles.
The answer to this question could also have been influenced, as indicated in the previous paragraph, by the fact that the frequency of visits by shoppers could be distorted by the fact that respondents have to stop at filling stations to fill up their vehicles and are thus compelled to stop at a filling station at some point in time. Respondents could therefore never visit filling station outlets other than when they are there to fill up the tanks of their vehicles.
4.4.3 Section B The objective of Section B of the questionnaire was to explore consumer behaviour related to the patronage of the subject regional shopping centre namely Cresta Shopping Centre
74 and the smaller convenience and garage type retail formats within the catchment area of Cresta Shopping Centre.
The questions mainly related to the reasons or purposes for visiting a specific retail format as well as the preference to visit a large regional shopping centre as opposed to a smaller convenience outlet and vice versa.
(a) Question 5 For what reason/purpose would you typically visit Cresta Shopping Centre?
Question 5 was designed to obtain an indication as to the motives of patrons for visiting Cresta Shopping Centre. The responses to the question asked as part of question 5 namely “When visiting Cresta Shopping Centre how often do you...?” are sumarised in Table 4.5.
The numbers under the reference to the word “count” is the total number of respondents who marked the specific alternative as provided for in the Table 4.5. The percentages reflect the percentage of respondents who marked the specific option expressed as a percentage out of the total responses to the specific alternative provided.
The alternative numbers in the scale which could have been selected by respondents was explained as having the following meanings:
1 = never 2 = 20% to 40% of all visits 3 = 40% to 60% of all visits 4 = 60% to 80% of all visits 5 = Almost every visit
The various reasons/purposes for visiting Cresta Shopping Centre which scored the highest in terms of every visit to the centre was visits to grocery stores (16.3%), clothing and shoe stores (17.5%) and visits to restaurants and coffee shops (12.2%). These three categories also scored the highest when grouping the responses together to reflect the
75 categories 60% and above of all visits to the centre, at 29.1% for grocery shopping, 37.9% for visiting fashion related tenants and 34.6% recorded for visits to food related tenants.
Table 4.5: Reasons for visiting Cresta Regional Shopping Centre Never Every Reason/purpose visit 1 2 3 4 5 Total Visit grocery stores Count 47 63 34 26 33 203 % 23.2% 31.0% 16.7% 12.8% 16.3% 100.0% Visit clothing or Count 4 69 55 42 36 206 shoe stores % 1.9% 33.5% 26.7% 20.4% 17.5% 100.0% Visit restaurants/ Count 18 70 46 46 25 205 coffee shops % 8.8% 34.1% 22.4% 22.4% 12.2% 100.0% Visit homeware/ Count 40 85 47 20 12 204 décor shops % 19.6% 41.7% 23.0% 9.8% 5.9% 100.0% Visit hardware Count 129 50 14 3 1 197 stores % 65.5% 25.4% 7.1% 1.5% .5% 100.0% Visit furniture and Count 85 86 22 6 3 202 appliance stores % 42.1% 42.6% 10.9% 3.0% 1.5% 100.0% Visit the entertain- Count 40 84 40 33 8 205 ment facilities % 19.5% 41.0% 19.5% 16.1% 3.9% 100.0% Visit beauty & Count 21 69 64 38 14 206 health stores % 10.2% 33.5% 31.1% 18.4% 6.8% 100.0% Visit speciality Count 69 91 34 5 4 203 stores % 34.0% 44.8% 16.7% 2.5% 2.0% 100.0% Visit service stores Count 46 66 54 27 13 206 stores % 22.3% 32.0% 26.2% 13.1% 6.3% 100.0% Browse or Count 40 60 48 49 7 204 meet friends % 19.6% 29.4% 23.5% 24.0% 3.4% 100.0% Visit the centre to Count 97 52 27 25 5 206 pay accounts % 47% 25.2% 13.1% 12.1% 2.4% 100.0%
The reasons or purposes which received the lowest scores were Hardware stores, which 65.5% of respondents indicated they never visit when visiting Cresta Shopping Centre and Furniture and appliance stores which 42.1% of respondents indicated they never visit when visiting Cresta Shopping Centre.
76 (b) Question 6 Please list any other reason/purpose for visiting Cresta Shopping Centre:
The response rate to this question was also low, possibly as a result of the many alternatives listed in Question 5 and the respondent not therefore wanting to spend any more time having to think of any other possibilities as they are already covered in the answers to Question 5. The intention of Question 6 was however to ensure that the respondents have an opportunity to list any other reason/purpose not provided for in the rating scale forming part of Question 5.
Some of the responses to this question included: (i) Cresta Centre is being visited because of the medical facilities located at the centre. (ii) For leisure and relaxation. (iii) Cresta Shopping Centre offers good pension services and discounts. (iv) To collect post from the post box facility. (v) In order to attend promotional events especially during Christmas time.
(c) Question 7 For what reason/purpose would you usually visit a small convenience shopping centre close to Cresta Shopping Centre?
The purpose of Question 7 was to establish the motives or reasons why respondents would visit smaller convenience shopping centres located within the catchment area of Cresta Shopping Centre. The responses to the question asked as part of question 7 namely “When visiting a convenience shopping centre how often do you…….?” are sumarised in Table 4.6.
The reference to “count” and “%” forming part of Table 4.6 bear the same meaning as per the explanation provided under question 5 in this section.
77 The ranges in the numeric scale forming part of Question 7, was kept similar to the ranges which was attached to the numbers in Question 5 as follows:
1 = never 2 = 20% to 40% of all visits 3 = 40% to 60% of all visits 4 = 60% to 80% of all visits 5 = Almost every visit
Table 4.6: Reasons for visiting convenience shopping centre
Never Every Reason/purpose visit 1 2 3 4 5 Total Visit grocery stores Count 21 32 25 42 86 206 % 10.2% 15.5% 12.1% 20.4% 41.7% 100.0% Visit clothing or Count 108 51 30 7 4 200 shoe stores % 54.0% 25.5% 15.0% 3.5% 2.0% 100.0% Visit restaurants/ Count 54 60 52 28 11 205 coffee shops % 26.3% 29.3% 25.4% 13.7% 5.4% 100.0% Visit homeware/ Count 103 59 24 13 1 200 décor shops % 51.5% 29.5% 12.0% 6.5% .5% 100.0% Visit hardware Count 75 64 42 18 3 202 stores % 37.1% 31.7% 20.8% 8.9% 1.5% 100.0% Visit furniture and Count 103 62 24 6 2 197 appliance stores % 52.3% 31.5% 12.2% 3.0% 1.0% 100.0% Visit the entertain - Count 114 50 22 9 1 196 ment facilities % 58.2% 25.5% 11.2% 4.6% .5% 100.0% Visit beauty & Count 80 59 37 23 4 203 health stores % 39.4% 29.1% 18.2% 11.3% 2.0% 100.0% Visit speciality Count 132 47 15 3 3 200 stores % 66.0% 23.5% 7.5% 1.5% 1.5% 100.0% Visit service Count 62 56 51 25 7 201 stores % 30.8% 27.9% 25.4% 12.4% 3.5% 100.0% Browse or meet Count 80 52 48 18 6 204 friends % 39.2% 25.5% 23.5% 8.8% 2.9% 100.0% Visit the centre to Count 133 29 25 10 3 200 pay accounts % 66.5% 14.5% 12.5% 5.0% 1.5% 100.0%
The results as summarised in Table 4.6 indicate that 41.7% of the respondents to the survey visit convenience shopping centres for the purpose of doing grocery shopping every time they visit the centre.
78 The percentage for respondents visiting a convenience centre to do grocery shopping from 60% to 100% of the time was a remarkable 62.1%.
The closest category to grocery shopping in terms of reason/purpose for visiting a convenience shopping centre was restaurants and coffee shops at 5.4% for every visit and 19.1% collectively for 60% and more of the time, when visiting a convenience shopping centre.
The categories which scored the lowest in terms of reason/purpose for visiting a convenience shopping centre was speciality stores (66%) and entertainment fascilities (58.2%) with clothing and shoe stores (54%) and furniture and appliance stores (52.3%) also scoring low in terms of never being visited.
(d) Question 8 For what reason would you usually visit a garage type outlet
As indicated in paragraph 3.9, this question was made an open ended response question in order to reduce the time it would take to complete the questionnaire. This question was poorly responded to however most of the reasons provided for visiting filling station outlets related to the purchase of basic necessities like milk and bread as well as cigarettes and lotto tickets, newspapers and magazines, braai wood, charcoal, ice, sweets and ice cream, soft drinks and snacks, to withdraw money from ATM’s and to buy cell phone air time.
Some respondents also indicated that they visit garage type outlets on public holidays and to make late night purchases when other stores are not open for trading. Responses to this question also indicated that some respondents never visit garage type outlets as a result of exorbitant prices.
(e) Question 9 I would rather go to Cresta Shopping Centre than a smaller convenience shopping centre because …..
79 The aim of this question was to determine possible reasons why respondents would prefer to visit Cresta Shopping Centre instead of smaller convenience centres. The question was in an ordinal scale form where the respondent had to rank their order of preference to a number of alternatives provided, up to a maximum of 4. The responses to this question are depicted in Table 4.7.
Table 4.7: Preference for visiting Cresta Shopping Centre as opposed to smaller convenience centres Not Reasons for preferring to visit Cresta Marked Marked Total The centre offers a variety of stores Count 32 177 209 % 15.3% 84.7% 100.0% I can do all my shopping at one place (One stop Count 66 143 209 shopping) % 31.6% 68.4% 100.0% I like the atmosphere Count 155 54 209 % 74.2% 25.8% 100.0% Of the easy and sufficient parking Count 123 86 209 % 58.9% 41.1% 100.0% Of the safe environment Count 157 52 209 % 75.1% 24.9% 100.0% The centre offers something unique (Unique Count 181 28 209 experience) % 86.6% 13.4% 100.0% The centre is very accessible Count 84 125 209 % 40.2% 59.8% 100.0% The centre has long trading hours Count 79 130 209 % 37.8% 62.2% 100.0% The centre offers a variety of entertainment Count 141 68 209 % 67.5% 32.5% 100.0%
As indicated in question 5 and 7 in this section, the reference to “count” in Table 4.7 relates to the number of respondents who marked the specific corresponding option provided and the percentage refers to the percentage marked out of a total of 100% for each option.
The main reasons marked by respondents as to why they would prefer to visit Cresta Shopping Centre as opposed to a smaller convenience shopping centre are: (i) that Cresta Shopping Centre offers a variety of stores (84.7%); (ii) that respondents could do all their
80 shopping at one place (68.4%) (iii) that the centre has long trading hours (62.2%) and (iv) that the centre is very accessible (59.8%).
The reasons marked which scored the lowest were that Cresta Shopping Centre offers something unique at 13.4% and that Cresta Shopping Centre offers a safe environment at 24.9% and that respondents liked the atmosphere at 25.8%. These numbers indicate that Cresta Shopping Centre is possibly not perceived to be a safe environment and also that the offering at Cresta Shopping Centre is not considered to be unique compared to other retail facilities in the centres catchment area.
Question 9 included a further question for respondents to list any reasons not provided for in the table on the questionnaire as follows: Any other reason why you would rather go to Cresta Shopping Centre than a smaller convenience shopping centre?
This question was poorly answered however some of the reasons provided were as follows:
(i) Cresta Shopping Centre is centrally located between friends and is a good meeting place. (ii) For the purpose of visiting a specific store located within Cresta Shopping Centre. (iii) Cresta Shopping Centre offers a lot of exclusivity. (iv) Cresta Shopping Centre is preferred on rainy days because of the covered parking offered. (v) For the purpose of purchasing Cresta Shopping Centre gift vouchers.
The poor response rate could possibly be as a result of the alternatives provided for in the table forming part of question 9 in the questionnaire (Appendix 2), covering most of the reasons and respondents thus not deeming it necessary to provide any further rationale for preferring to go to Cresta Shopping Centre. The length of the questionnaire as well as the
81 amount of time required to complete the questionnaire could also have been a contributing factor.
(f) Question 10 I would visit smaller Convenience shopping centres in the vicinity of Cresta, instead of Cresta Shopping Centre because …..
The aim of this question was to determine possible reasons why respondents to the survey would be motivated to rather visit a smaller convenience shopping centre than visiting Cresta Shopping Centre. Similar to Question 9, the respondents were again requested to mark the four most important reasons in the table provided. The response to this question is sumarised in Table 4.8.
The responses which scored the highest in terms of the possible reasons were that respondents (i) save time by going to the smaller convenience centre (73.7%), (ii) that the convenience centres are closer to the respondents’ residences (69.8%), (iii) that respondents rather visit the smaller convenience centres to avoid overcrowded and congested malls (52.2%) and (iv) because it is seen to be more convenient (51.7%).
The alternative provided on the questionnaire namely that “it is more convenient” could be interpreted as a leading question as explained under question 2 in Section A (paragraph 4.4.2) of this chapter. The validity of the response is therefore questionable as the fact that the question referred to convenience shopping centres might imply a certain answer, the answer being that if it is called a convenience centre, it would suggest that it would be more convenient. This alternative scoring (51.7%) could therefore be seen as biased however it does not affect the overall validity of the other responses provided.
The other two reasons/alternatives which scored well was that respondents visit convenience centres because of easy parking which was marked at 44.9% and the fact that respondents possibly deal with a lot less traffic when traveling to a convenience shopping centre, which also scored high at 43.4%.
82 Table 4.8: Preference for visiting a smaller convenience shopping centre as opposed to Cresta Shopping Centre Reasons for preferring to visit a smaller Not convenience centre Marked Marked Total It is more convenient Count 99 106 205 % 48.3% 51.7% 100.0% The smaller centre offers everything I need Count 194 11 205 % 94.6% 5.4% 100.0% I save time Count 54 151 205 % 26.3% 73.7% 100.0% Of easy parking Count 113 92 205 % 55.1% 44.9% 100.0% And Count 192 13 205 % 93.7% 6.3% 100.0% More convenient trading hours Count 188 17 205 % 91.7% 8.3% 100.0% I prefer to buy less products and make more Count 163 42 205 frequent trips to the centre % 79.5% 20.5% 100.0% It is closer to my house Count 62 143 205 % 30.2% 69.8% 100.0% Shorter walking distances between stores Count 164 41 205 % 80.0% 20.0% 100.0% I do not have to deal with a lot of traffic Count 116 89 205 % 56.6% 43.4% 100.0% I want to avoid having to visit overcrowded and Count 98 107 205 congested malls % 47.8% 52.2% 100.0%
The second part of the question made provision for the respondents to state other reasons why they would rather visit a smaller convenience shopping centre rather than Cresta Shopping Centre. Some of the reasons listed where the following:
(i) Respondents indicated that they do not have to cross busy main roads with intersections located in close proximity to Cresta Shopping Centre. (ii) The fact that one does not pay for parking when visiting a smaller convenience shopping centre. (iii) Some respondents indicated that they do not feel safe at Cresta Shopping Centre.
83 (iv) Personalised service is provided at smaller convenience centres as stores are owner managed. (v) Cresta Shopping Centre is located close to a taxi pick up spot. (vi) Possibly because of better prices and value for money. (vii) To visit speciality stores not found at Cresta Shopping Centre.
(g) Question 11 “I do not go to Cresta Shopping Centre because…”
The purpose of this open ended response question was to provide those respondents who never visit Cresta Shopping Centre with an opportunity to state their reasons for not doing so.
There was no response to this question and it would probably have been better to have this question either forming part of the screening question at the beginning of the questionnaire or removing it completely from the questionnaire.
The non-response to this question can however be interpreted that all of the respondents who formed part of the survey do visit Cresta Shopping Centre at some point in time.
4.4.4 Section C The objective of Section C was to establish the demographic profile of the respondents participating in the study and to compare the profile to the previously established profile as determined through secondary research. The rational for the comparison would be to ensure that the sample used for this study is representative of the shopper profile of Cresta Shopping Centre.
(a) Question 12 Please indicate your gender:
84 Out of the total respondent who participated in the survey, 69.9% were female while 30.1% were male. This result is very much in line with secondary research conducted six months prior to this specific survey during September 2006 by a market research company which indicated the shopper profile of Cresta Shopping Centre to be 31% male and 69% female.
(b) Question 13 Please indicate your age:
The result of this question is summarized in Table 4.9.
Table 4.9: Age summary of respondents Minimum Maximum Average Responses Age Age Age Please indicate your 208 18 88 43.72 age
The minimum age of the respondents who participated in the study was 18 years as determined by the screening question at the beginning of the questionnaire. The eldest respondent was 88 years. The calculated average age of the total of respondents was 43.72 years. This number compares well to the average age as determined by the secondary research conducted six months prior to this study, which was 39 years.
(c) Question 14 What is your home language?
The results of this question are summarised in Table 4.10.
The majority of the respondents to the study were Afrikaans speaking at 49.8% of the total responses to the question with English speaking respondents at 42.6% of the total respondents. The rest of the languages combined amounted to 10.6% of the total respondents to the survey.
85 Table 4.10: Home language of respondents Language spoken Respondents Total English Count 89 209 % 42.6% 100.0% Afrikaans Count 104 209 % 49.8% 100.0% Asian Count 15 209 % 7.2% 100.0% African Count 3 209 % 1.4% 100.0% European Count 2 209 % 1.0% 100.0% Other Count 2 209 % 1.0% 100.0%
The results of the secondary research conducted indicated that 43% of the shoppers who participated in the research conducted previously were English speaking with 33% Afrikaans speaking. It was furthermore indicated that the household language for people residing within the catchment area of Cresta Shopping Centre indicated that 57% of the respondents were English speaking, 32% Afrikaans speaking with 11% speaking African and other languages.
The combined total of Afrikaans and English speaking respondents of this study (92.4%) is in line with the combined total of the Afrikaans and English speaking individuals (89%) as determined by the secondary research. The other languages also compared favourably at 10.6% compared to the secondary research at 11%. It should further be noted that 6 respondents who participated in this study marked more than one language as a home language.
(d) Question 15 Please indicate as per your household: (i) number of cars; (ii) number of earners, (iii) number of people.
The results to this question are depicted in Tables 4.11, 4.12 and 4.13.
86 Most of the respondents to the survey indicated that they have at least one car with only 2.9% of respondents indicating that they do not have a car. The respondents with two vehicles per household amounted to 43.9% and the cumulative percentage for households earning two vehicles or less was 67.3%. The percentages declined onwards from households who have three cars or more as indicated in Table 4.11.
Table 4.11: Number of cars per household Valid Cumulative Amount of cars Frequency Percent Percent Percent 0 6 2.9% 2.9% 2.9% 1 48 23.0% 23.4% 26.3% 2 90 43.1% 43.9% 70.2% 3 34 16.3% 16.6% 86.8% 4 21 10% 10.2% 97.1% 5 5 2.4% 2.4% 99.5% 6 1 0.5% 0.5% 100% Total 205 98.1% 100% Mising 4 1.9% Total 209 100%
The deduction can therefore be made that the majority of households within the catchment area of the Cresta Shopping Centre own at least one or two cars.
Table 4.12: Number of earners per household Cumulative Number of Earners Respondents Percent Valid Percent Percent 0 3 1.4% 1.5% 1.5% 1 57 27.3% 27.8% 29.3% 2 110 52.6% 53.7% 82.9% 3 26 12.4% 12.7% 95.6% 4 8 3.8% 3.9% 99.5% 5 1 0.5% 0.5% 100% Total 205 98.1% 100% Missing 4 1.9% Total 209 100%
Most of the respondents indicated that there are two people earning an income within each household at 53.7%. Table 4.12 further indicates that a cumulative total of 81.4% of the
87 respondents had at least one or two earners in the household and that 17.1% of the respondents indicated that there where three or more earners within their households. This is possibly children who are earning an income but are still living with their parents.
A total of 1.5% of the respondents indicated that there are no earners in the household which is probably more as a result of retired individuals or pensioners than as a result of unemployment.
Table 4.13: Number of people per household Cumulative Number of people Respondents Percent Valid Percent Percent 1 23 11.0% 11.1% 11.1% 2 56 26.8% 27.1% 38.2% 3 34 16.3% 16.4% 54.6% 4 73 34.9% 35.3% 89.9% 5 15 7.2% 7.2% 97.1% 6 3 1.4% 1.4% 98.6% 7 3 1.4% 1.4% 100% Total 207 99% 100% Missing 2 1% Total 209 100.0
The number of people per household which scored the highest was those with two people per household (27.1%) and those with four people per household (35.3%). Table 4.13 further indicates that 16.4% of the respondents had three people in their household with single individuals per household recorded at 11.1%.
The deduction which can be made is that the 27.1% indicated for two people per household either represent married couples with no children or either married couples with children who have already left the house, the so-called empty nest life stage.
A further deduction could be that most of the households are parents with two or three children or parents with one child, the so-called full nest life stage which cumulatively amounts to 58.9% of the respondents. This compares well to the percentage indicated in the secondary research conducted six months prior to this study, which indicates that 52%
88 of the households within the catchment area of Cresta Shopping Centre are in the full nest life cycle stage.
(e) Question 16 Please indicate your area of occupation
The results to this question is summarised in Table 4.14.
Table 4.14: Area of occupation of respondents Cumulative Area of occupation Respondents Percent Valid Percent Percent Management 30 14.2% 14.4% 14.4% Sales 10 4.7% 4.8% 19.1% Clerical 25 11.8% 12% 31.1% Production 8 3.8% 3.8% 34.9% Transport 5 2.4% 2.4% 37.3% Technical 7 3.3% 3.3% 40.7% Service 15 7.1% 7.2% 47.8% Pensioner 18 8.5% 8.6% 56.5% Unemployed 2 0.9% 1% 57.4% Student 8 3.8% 3.8% 61.2% Housewife 19 9.0% 9.1% 70.3% Labourer/Domestic 5 2.4% 2.4% 72.7% Other 57 26.9% 27.3% 100% Total 209 98.6% 100% Missing 3 1.4% Total 212 100%
The largest percentages in terms of occupation were respondents who indicated that they are largely employed as management at 14.4% and 12% indicated that they were in clerical positions. Two other areas of occupation which came out strong were respondents who indicated that they were housewives at 9.1% and pensioners which amounted to 8.6% of the respondents. A large amount of respondents (27.3%) marked the other category which included the following areas of occupation: Lawyers and attorneys, teachers and lecturers, bankers, personal assistants, librarians, marketing, ministers of religion, au pairs, architects and graphic designer, researchers, retailers and information technology specialists.
89 It is clear from the many responses received under the category named “other” that some of the respondents might have misinterpreted the question to mean actual occupation rather than area of occupation as some of the responses provided under other, could have been included in some of the categories provided. It would however have been best to have had another category called “Education” as almost 50% of the respondents who marked the “other” category were either teachers or lecturers.
(f) Question 17 What is the total monthly income of your household before any deductions? (Gross Income)
The responses to this question are detailed in Table 4.15.
Table 4.15: Monthly Gross Income of respondents Gross income before Valid Cumulative deductions Respondents Percent Percent Percent Up to R 5 000 per month 23 11% 12.6% 12.6% R 5 001 to R 10 000 per month 31 14.8% 16.9% 29.5% R 10 001 to R 15 000 per month 23 11% 12.6% 42.1% R 15 001 to R 20 000 per month 21 10% 11.5% 53.6% R 20 001 to R 25 000 per month 16 7.7% 8.7% 62.3% R 25 001 to R 30 000 per month 9 4.3% 4.9% 67.2% R 30 001 to R 35 000 per month 9 4.3% 4.9% 72.1% R 35 001 to R 40 000 per month 13 6.2% 7.1% 79.2% R 40 001 to R 50 000 per month 16 7.7% 8.7% 88% R 50 001 to R 60 000 per month 9 4.3% 4.9% 92.9% R 60 001 to R 75 000 per month 8 3.8% 4.4% 97.3% R 75 001 to R 100 000 per month 2 1% 1.1% 98.4% > R 100 000 per month 3 1.4% 1.6% 100% Total 183 87.6% 100% Missing 26 12.4% Total 209 100.0
The majority of respondents indicated a gross household income of between R 5,000 to R20,000 per month which cumulatively amounted to 41%. What is also significant to note is that the total cumulative percentage of households who earn above R 20,000 per month
90 amounted to 46.3%. It is clear from the above that Cresta Shopping Centre has a very affluent shopper base. This also compares well to the secondary research conducted six months previous to this study which also indicates that the catchment area and suburbs surrounding Cresta Shopping Centre is mostly populated by higher income groups. A total of 12.4% of the respondents to the questionnaire did not complete this question.
(g) Question 18 Please indicate the number of years you have resided at your current address and the number of years you have been a shopper at Cresta Shopping Centre:
The results of this question are briefly described in Table 4.16. The aim of this question was to attempt to determine the loyalty of shoppers to Cresta Shopping Centre.
Table 4.16: Number of years residing in catchment area and shopping at Cresta Shopping Centre Minimum Maximum Average Number of amount of amount of amount of Responses years years years You have resided at your 202 0 51 10.43 current address You have been a shopper at 178 1 34 12.57 Cresta
The minimum amount of years marked for residing at their current address was less than one year and the maximum was marked at 51 years. Of importance however, is the average amount of years out of the total respondents who answered this question, which was 10.43 years.
The fact that the average amount of years which respondents who completed the question have indicated that they have shopped at Cresta Shopping Centre (12.57 years), is even higher than the average amount of years (10.43 years) that they have resided at their current addresses, is an even better indication that Cresta Shopping Centre receives loyal support from its shoppers. It should however be kept in mind that some respondents might
91 have relocated to addresses still within the catchment area of the centre during the time indictaed on the questionnaire.
(h) Question 19 Please indicate the suburb where you currently reside:
The main purpose of this question was to ensure that the sample was representative of respondents who reside within the previously identified catchment area of Cresta Shopping Centre as demarcated through secondary research previously conducted as explained under paragraph 3.5.2.2. The results of this question are sumarised in Table 4.17.
Table 4.17: Suburbs where respondents reside in alphabetical order Cumulative Various suburbs Respondents Percent Valid Percent Percent Albertsville 1 0.5% 0.5% 0.5% Aldara park 5 2.4% 2.5% 3.0% Allens nek 1 0.5% 0.5% 3.4% Auckland park 2 1.0% 1.0% 4.4% Berario 12 5.7% 5.9% 10.3% Bergbron 1 0.5% 0.5% 10.8% Blackheath 9 4.3% 4.4% 15.3% Blairgowrie 2 1.0% 1.0% 16.3% Bosmont 1 0.5% 0.5% 16.7% Constantia kloof 2 1.0% 1.0% 17.7% Cresta 14 6.7% 6.9% 24.6% Crosby 5 2.4% 2.5% 27.1% Darrenwood 6 2.9% 3.0% 30.0% Fairland 21 10.0% 10.3% 40.4% Florida hills 3 1.4% 1.5% 41.9% Florida park 2 1.0% 1.0% 42.9% Fonteinbleau 2 1.0% 1.0% 43.8% Fourways 1 0.5% 0.5% 44.3% Fulland park 1 0.5% 0.5% 44.8% Greymont 3 1.4% 1.5% 46.3% Hillbrow 5 2.4% 2.5% 48.8% Honey hills 1 0.5% 0.5% 49.3% Honeydew 3 1.4% 1.5% 50.7% Johannesburg 1 0.5% 0.5% 51.2% Kelland x1 1 0.5% 0.5% 51.7%
92 Kesington B 1 0.5% 0.5% 52.2% Linden 24 11.5% 11.8% 64.0% Melville 2 1.0% 1.0% 65.0% Montgomery park 1 0.5% 0.5% 65.5% Newlands 1 0.5% 0.5% 66.0% Northcliff 18 8.6% 8.9% 74.9% Randpark 5 2.4% 2.5% 77.3% Randburg 7 3.3% 3.4% 80.8% Risidale 4 1.9% 2.0% 82.8% Robin hills 1 0.5% 0.5% 83.3% Robindale 6 2.9% 3.0% 86.2% Roodepoort 2 1.0% 1.0% 87.2% Rooseveldt park 6 2.9% 3.0% 90.1% Sharonlea 1 0.5% 0.5% 90.6% Strubens valley 1 0.5% 0.5% 91.1% Sundowner 1 0.5% 0.5% 91.6% Triomf 1 0.5% 0.5% 92.1% Weltevreden park 7 3.3% 3.4% 95.6% Westdene 2 1.0% 1.0% 96.6% Windsor east 5 2.4% 2.5% 99.0% Windsor west 2 1.0% 1.0% 100% Total 203 97.1% 100% Missing 6 2.9% Total 209 100%
The sample as reflected in Table 4.17 is representative of the catchment area of Cresta Shopping Centre as the overwhelming majority of suburbs fall within the demarcated primary, secondary and tertiary catchment areas as previously determined by secondary research. Suburbs such as Berario, Cresta, Fairland, Linden and Northcliff, which are very close to Cresta Shopping Centre also show the highest number of respondents to the survey.
It should be noted that a small number of the respondents do not reside within the catchment area of Cresta Shopping Centre, however in the open-ended questions forming part of the questionnaire, it was indicated that some respondents prefer to shop at Cresta Shopping Centre because it is close to their workplace. It is therefore possible that the respondents who indicated their residence as being outside of Cresta Shopping Centre’s
93 catchment area, are currently working close to Cresta Shopping Centre and therefore visit the centre as a result thereof.
4.5 CONCLUSION This chapter reported on the results of the survey conducted as part of the execution of this study. The findings as per the results of the questionnaires completed were discussed on a question by question basis and the results were compared to secondary research previously conducted in order to confirm the validity of the sample.
The next chapter will present the conclusions and findings based on the results of the study as summarised in this chapter, in line with the primary and secondary objectives as discussed in paragraph 3.3. Chapter 5 will furthermore include recommendations for future research.
94 CHAPTER 5
CONCLUSION AND RECOMENDATIONS FOR FUTURE RESEARCH
5.1 INTRODUCTION The purpose of this chapter is to summarise the results of this study and to provide recommendations for future research as identified during the execution of this study. The chapter will also report on the findings of this study in relation to the primary and secondary objectives as identified in paragraph 3.3.
5.2 PRIMARY AND SECONDARY RESEARCH OBJECTIVES The primary research objective of this study was to determine the impact of the development of convenience shopping centres within the catchment area of a large regional shopping centre on the patronage of the regional shopping centre and to measure the effect thereof.
The primary and secondary objectives were derived from the propositions as stated in paragraph 1.5. The propositions were the following:
P1: The increased development of neighbourhood convenience shopping centres within the catchment areas of regional shopping centres leads to a decrease in patronage or frequency of visits to the regional shopping centres.
P2: Regional shopping centres and neighbourhood convenience shopping centres and other convenience retail outlets compete directly in terms of patronage as a result of the element of convenience.
The secondary research objectives were formulated with the aim of providing additional findings and support to the main finding related to the primary objective of the study. The intention with the secondary objectives was furthermore to provide information on shopper
95 patronage behaviour and possible patronage motives to the owners of and investors in regional shopping centres and smaller convenience shopping centres.
5.3 CONCLUSIONS AND IMPLICATION
5.3.1 Findings linked to the primary objectives The key findings linked to the primary objective of this study are those related to the frequency of visits to the subject regional shopping centre and the convenience shopping centres located within the catchment area of the regional shopping centre.
Table 5.1 is a cross-tabulation of the frequency of visits to Cresta Shopping Centre and the frequency of visits to smaller convenience shopping centres located within the catchment area of Cresta Shopping Centre. Zikmund (2003:476) defines “cross-tabulation” as “the organizing of data by groups, categories, or classes to facilitate comparisons; a joint frequency distribution of observations on two or more sets of variables”.
The results of the cross-tabulation as sumarised in Table 5.1 are provided on the same scale measurement basis as it was formulated in the relevant questions in the questionnaire (refer to Appendix 2). The results in Table 5.1 did not provide any noticeable or significant trend from which a specific conclusion could be derived at in terms of patronage to both convenience shopping centres and the subject regional shopping centre. This could possibly be as a result of the size of the sample being too small to formulate any definite finding.
96 Table 5.1: Detailed cross-tabulation of visits to Cresta Shopping Centre and other smaller Convenience shopping centres
How often do you visit smaller convenience shopping centres in the vicinity of Cresta? Less 2 to 3 2 to 3 than times times Once once per Once a per a a Daily week week month month month Never Total Count 1 6 1 0 2 1 2 13 % within How often do you visit Cresta? Daily 7.7% 46.2% 7.7% .0% 15.4% 7.7% 15.4% 100% % within How often do you visit smaller convenience shopping centres? 5.0% 9.4% 2.3% .0% 10.5% 4.3% 18.2% 6.2%
% of Total .5% 2.9% .5% .0% 1.0% .5% 1.0% 6.2%
7 11 14 14 7 8 2 63 Count 2 to 3 % within How often do you visit Cresta? 11.1% 17.5% 22.2% 22.2% 11.1% 12.7% 3.2% 100% times % within How often do you visit smaller per convenience shopping centres? 35.0% 17.2% 31.8% 48.3% 36.8% 34.8% 18.2% 30.0% week
% of Total 3.3% 5.2% 6.7% 6.7% 3.3% 3.8% 1.0% 30.0%
5 24 11 9 4 6 0 59 Count Once a % within How often do you visit Cresta? 8.5% 40.7% 18.6% 15.3% 6.8% 10.2% .0% 100% week % within How often do you visit smaller convenience shopping centres? 25.0% 37.5% 25.0% 31.0% 21.1% 26.1% .0% 28.1%
% of Total 2.4% 11.4% 5.2% 4.3% 1.9% 2.9% .0% 28.1%
6 16 14 5 5 6 5 57 Count 2 to 3 % within How often do you visit Cresta? 10.5% 28.1% 24.6% 8.8% 8.8% 10.5% 8.8% 100% times % within How often do you visit smaller per convenience shopping centres? 30.0% 25.0% 31.8% 17.2% 26.3% 26.1% 45.5% 27.1% month % of Total 2.9% 7.6% 6.7% 2.4% 2.4% 2.9% 2.4% 27.1%
1 2 3 0 1 2 2 11 Count
Visits to Cresta Regional Shopping Centre Once a % within How often do you visit Cresta? 9.1% 18.2% 27.3% .0% 9.1% 18.2% 18.2% 100% month % within How often do you visit smaller convenience shopping centres? 5.0% 3.1% 6.8% .0% 5.3% 8.7% 18.2% 5.2%
% of Total .5% 1.0% 1.4% .0% .5% 1.0% 1.0% 5.2%
0 5 1 1 0 0 0 7 Count Less % within How often do you visit Cresta? .0% 71.4% 14.3% 14.3% .0% .0% .0% 100% than % within How often do you visit smaller once a convenience shopping centres? .0% 7.8% 2.3% 3.4% .0% .0% .0% 3.3% month % of Total .0% 2.4% .5% .5% .0% .0% .0% 3.3% Count 20 64 44 29 19 23 11 210
% within How often do you visit Cresta? 9.5% 30.5% 21.0% 13.8% 9.0% 11.0% 5.2% 100% Total % within How often do you visit smaller 100.0 100.0 100.0 100.0 100% 100% 100% 100% convenience shopping centres? % % % % % of Total 9.5% 30.5% 21.0% 13.8% 9.0% 11.0% 5.2% 100%
97 Following the indefinite result as shown in Table 5.1, the Table was adjusted to reflect only the visits to both retail formats on a “at least once a week” basis and a “less than once a week” basis in order to establish whether this could possibly lead to a definite finding with regard to patronage. The results of this quadrant analysis cross-tabulation are summarized in Table 5.2. Zikmund (2003:479) defines quadrant analysis as “a variation of the cross- tabulation table in which responses to two rating scale questions are plotted in four quadrants on a two-dimensional table”.
Table 5.2: Quadrant analysis of visits to Cresta Shopping Centre and other smaller convenience shopping centres Other: At least Other: Less than Total once a week once a week Cresta: At least Count: 80 Count: 55 Count: 135 once a week %: 38.1% %: 26.2% %: 64.3% Cresta: Less than Count: 48 Count: 27 Count: 75 once a week %: 22.9% %: 12.8% %: 35.7% Total Count: 128 Count: 82 Count: 210 %: 61.0% %: 39.0% %: 100%
Table 5.2 indicates that there is no significant preference for visiting Cresta Shopping Centre as opposed to other smaller convenience shopping centres located within the catchment area of Cresta Shopping Centre.
A total of 38.1% of the respondents who participated in the study indicated that they visit Cresta Shopping Centre as well as a smaller convenience shopping centre at least once a week.
Table 5.2 further indicates that a total of 26.2% of the respondents indicated that they visit Cresta Shopping Centre once a week but other smaller convenience centres less than once a week. Of the total of respondents who participated in the study, 22.9% indicated that they visit Cresta Shopping Centre less than once a week, as opposed to visiting a
98 smaller convenience shopping centre at least once a week. Of the respondents, 12.8% indicated that they visit Cresta Shopping Centre and other smaller convenience shopping centres less than once a week.
Table 5.3: Detailed cross-tabulation of visits to Cresta Shopping Centre and typical filling station outlets
How often do you visit at a typical filling station outlet? 2 to 3 2 to 3 Less times Once times Once than per a per a once a Daily week week month month month Never Total Count 5 20 27 25 24 20 14 135 % within How often do 100.0 you visit Cresta 3.7% 14.8% 20.0% 18.5% 17.8% 14.8% 10.4% Shopping Centre? %
At least % within How often do 100. once you visit a typical 66.7% 60.0% 73.5% 61.5% 58.8% 60.9% 64.3% a week filling station outlet? 0% % of Total 2.4% 9.5% 12.9% 11.9% 11.4% 9.5% 6.7% 64.3%
Count 0 10 18 9 15 14 9 75 % within How often do 100.0 you visit Cresta .0% 13.3% 24.0% 12.0% 20.0% 18.7% 12.0% Shopping Centre? % More than once % within How often do a week you visit a typical .0% 33.3% 40.0% 26.5% 38.5% 41.2% 39.1% 35.7% filling station outlet? % of Total VisitCresta Shopping to Centre .0% 4.8% 8.6% 4.3% 7.1% 6.7% 4.3% 35.7% Count 5 30 45 34 39 34 23 210 % within How often do 100.0 you visit Cresta 2.4% 14.3% 21.4% 16.2% 18.6% 16.2% 11.0% Shopping Centre? %
Total % within How often do you visit a typical 100. 100.0 100.0 100.0 100.0 100.0% 100.0% 100.0% filling station outlet? 0% % % % %
% of Total 100.0 2.4% 14.3% 21.4% 16.2% 18.6% 16.2% 11.0% %
Table 5.3 is a cross – tabulation between the frequency of visits to Cresta Shopping Centre and visits to filling station type outlets. Table 5.4 is a quadrant analysis of the results as detailed in Table 5.3
99 Table 5.4: Quadrant analysis of visits to Cresta Shopping Centre and typical filling station type outlet Filling station: At Filling station: Less Total least once a week than once a week Cresta: At least Count: 52 Count: 83 Count: 135 once a week %: 24.7% %: 39.5% %: 64.3% Cresta: Less than Count: 28 Count: 47 Count: 75 once a week %: 13.3% %: 22.4% %: 35.7% Total Count: 80 Count: 130 Count: 210 %: 38.1 %: 61.9% %: 100%
As indicated by Table 5.4, a total of 24.7% of the respondents to the surveys indicated that they visit Cresta Shopping Centre and a filling station outlet at least once a week. A total of 39.5% of respondents indicated that they visit Cresta Shopping Centre at least once a week but that they visit filling station type outlets less than once a week. A total of 13.3% of respondents indicated that they visit Cresta Shopping Centre less than once a week and a filling station type outlet at least once a week.
5.3.1.1 Finding 1 The main finding is therefore that the respondents to the study equally supports Cresta Shopping Centre and other smaller convenience shopping centres as the total visits to each retail format differ with less than 5%. The support indicates 64.3% in favour of Cresta Shopping Centre and 61.0% in favour of smaller convenience shopping centres.
The respondents were asked to mention the smaller convenience centres as part of an open ended response questions but the questionnaire however did not make provision for quantifying the support for each smaller shopping centre mentioned by the respondents. The support for Cresta Shopping Centre was therefore measured against the support for a collective number of smaller convenience shopping centres varying in number of shops as well as general lettable area.
100 The development of smaller convenience shopping centres within the catchment area of a regional shopping centre therefore has a significant influence on the regional shopping centre as the market equally supports both. Cresta Shopping Centre therefore receives more or less one of two visits to a shopping facility whereas this could have been higher, were these smaller convenience centres not present/constructed.
A further significant finding is that a regional shopping centre receives a significant preference of support to a filling station type outlet as can be seen from the results as summarised in Table 5.4.
It is probable that this is mainly as a result of the limited offering of typical filling station type outlets in comparison to the variety of stores at Cresta Shopping Centre. The introduction of these filling station type outlets over the past few years has therefore had a limited effect on Cresta Shopping Centre and its patronage.
5.3.2 Findings to the secondary objectives The secondary objectives to this study was summarised in paragraph 3.3.2. The secondary objectives as well as the main findings with regard to these secondary objectives can be listed as follows:
Objective 2: Establish whether patrons who support large regional shopping centres are aware of the increase in the various new forms of retail constructed within the catchment area of the regional over the past ten years.
5.3.2.1 Finding 2 A large number of consumers indicated that they are aware of the increase in the new retail offerings within the areas in which they reside over the past ten years. The study results showed that 74% of the respondents were aware of smaller convenience shopping centres constructed within the areas in which they reside. The finding is therefore that there is a high and significant awareness level among consumers.
101
Objective 3: Determine the reasons and for what type of purchases or services a shopper would typically visit a convenience retail outlet located within the catchment area of a regional shopping centre as well as the reasons and type of purchases related to a regional shopping centre and whether the reasons and type of purchases differ for each.
Table 5.5 and 5.6 is a cross-tabulation of reasons or purposes for which a respondent would choose to visit Cresta Shopping Centre as opposed to smaller convenience shopping centres in the catchment area of Cresta. Table 5.5 and 5.6 clearly indicates the areas in terms of reasons for visits, where the two retail types compete and where there is a preference to frequent the one above the other.
5.3.2.2 Finding 3 (a) Convenience shopping centres are preferred for grocery shopping rather than visiting a regional shopping centre by a substantial margin. This is an area where regional shopping centres and convenience shopping centres compete fiercely.
(b) Regional shopping centres remain the preferred destination for fashion, visiting restaurants and coffee shops as well as visiting homeware and décor stores. Convenience shopping centres are not preferred for clothing and shoe purchases, however restaurants and coffee shops as well as homeware stores do receive some support.
(c) Regional shopping centres are not visited for the purpose of doing hardware shopping but smaller convenience shopping centres do receive a small percentage of preference in terms of visiting hardware stores.
(d) Furniture and appliance stores as well as speciality stores are equally visited among the regionals and convenience centres however both have a small percentage preference in terms of reasons for visiting and furniture and appliance shopping is therefore mostly done elsewhere.
102 Table 5.5: Detailed cross-tabulation of reasons or purpose of visits to Cresta Shopping Centre compared to other smaller convenience shopping centres
Percentage of visit Never 20% 40% 60% Every to to to visit 40% 60% 80% Visit grocery stores Cresta 23.2% 31% 16.7% 12.8% 16.3% Convenience outlets 10.2% 15.5% 12.1% 20.4% 41.7% Visit clothing or shoe Cresta 1.9% 33.5% 26.7% 20.4% 17.5% stores Convenience outlets 54% 25.5% 15% 3.5% 2% Visit restaurants/ Cresta 8.8% 34.1% 22.4% 22.4% 12.2% coffee shops Convenience outlets 26.3% 29.3% 25.4% 13.7% 5.4% Visit Homeware/ Cresta 19.6% 41.7% 23% 9.8% 5.9% décor shops Convenience outlets 51.5% 29.5% 12% 6.5% 0.5% Visit Hardware Cresta 65.5% 25.4% 7.1% 1.5% 0.5% stores Convenience outlets 37.1% 31.7% 20.8% 8.9% 1.5% Visit Furniture and Cresta 42.1% 42.6% 10.9% 3% 1.5% appliance stores Convenience outlets 52.3% 31.5% 12.2% 3% 1% Visit entertainment Cresta 19.5% 41% 19.5% 16.1% 3.9% facilities Convenience outlets 58.2% 25.5% 11.2% 4.6% 0.5%
Reason or purpose of visit visit or purpose of Reason Visit Beauty and Cresta 10.2% 33.5% 31.1% 18.4% 6.8% health stores Convenience outlets 39.4% 29.1% 18.2% 11.3% 2% Visit speciality Cresta 34% 44.8% 16.7% 2.5% 2% stores Convenience outlets 66% 23.5% 7.5% 1.5% 1.5% Visit service Cresta 22.3% 32% 26.2% 13.1% 6.3% stores Convenience outlets 30.8% 27.9% 25.4% 12.4% 3.5% Browse or meet Cresta 19.6% 29.4% 23.5% 24% 3.4% friends Convenience outlets 39.2% 25.5% 23.5% 8.8% 2.9% Visit centre to pay Cresta 47.1% 25.2% 13.1% 12.1% 2.4% accounts Convenience outlets 66.5% 14.5% 12.5% 5% 1.5%
103 Table 5.6: Summarised cross-tabulation of reasons or purpose of visits to Cresta Shopping Centre compared to other smaller convenience shopping centres
Percentage of visit Less than 60% More than of the time 60% of the time Visit grocery stores Cresta centre 70.9% 29.1% Convenience outlets 37.9% 62.1% Visit clothing or shoe Cresta centre 62.1% 37.9% stores Convenience outlets 94.5% 5.5% Visit restaurants/coffee Cresta centre 65.4% 34.6% shops Convenience outlets 80.9% 19.1% Visit Homeware/Décor Cresta centre 84.3% 15.7% shops Convenience outlets 93% 7% Visit Hardware stores Cresta centre 98% 2% Convenience outlets 89.6% 10.4% Visit Furniture and Cresta centre 95.5% 4.5% Appliance stores Convenience outlets 96% 4% Visit entertainment facilities Cresta centre 80% 20% Convenience outlets 94.9% 5.1% Visit Beauty and Health Cresta centre 74.8% 25.2%
Reason or purpose of visit stores Convenience outlets 86.7% 13.3% Visit speciality stores Cresta centre 95.5% 4.5% Convenience outlets 97% 3% Visit service stores Cresta centre 80.6% 19.4% Convenience outlets 84.1% 15.9% Browse or meet friends Cresta centre 72.6% 27.4% Convenience outlets 88.3% 11.7% Visit centre to pay accounts Cresta centre 85.5% 14.5% Convenience outlets 93.5% 6.5%
(e) Regional shopping centres receive substantially more preference above smaller convenience shopping centres in terms of visiting beauty and health stores as well as entertainment facilities. This could be as a result of smaller convenience shopping centres mostly not offering any entertainment facilities.
(f) Regional shopping centres and smaller convenience centres receive equal preference for visits to service stores.
104 (g) Regional shopping centres are preferred by a substantial margin above smaller convenience shopping centres for browsing and meeting friends as well as doing banking.
(h) The overall finding in terms of preference of visits is that smaller convenience shopping centres do not have the critical mass to draw shoppers similar to that of regional shopping centres in terms of centre offering. Convenience shopping centres however are mostly supported and preferred above regional shopping centres for purposes of doing grocery shopping and are also well supported in terms of services stores and restaurant and coffee shops.
Objective 4: Determine whether there are any other non-product or service related reasons why a shopper would visit a regional shopping centre or smaller convenience shopping centre.
5.3.2.3 Finding 4 Table 4.7 provides an indication of the preferences and specific reasons why shoppers prefer to visit regional shopping centres.
The reasons were: (a) The regional shopping centre offers a large variety of stores. (b) The regional shopping centre provides a facility where shoppers can do all their shopping at one particular place. (c) The regional shopping centre is very accessible. From this, the conclusion can be made that shoppers are satisfied and comfortable that they can park anywhere around the regional shopping centre and enter at the various different entrances. (d) The centre has long trading hours which supports a case for shopping centre owners to extend trading hours even further in order to receive a stronger support.
Table 4.8 provides a summary of the preferences and specific reasons why shoppers would prefer to visit convenience shopping centres.
105 The reasons were: (a) The visit to the smaller convenience shopping centre saves time. The conclusion which can be reached from this comment is mainly that the shopper can get there faster, which is supported by the following reason provided and furthermore that he/she can complete his/her shopping within a shorter period of time. (b) The convenience shopping centre is closer to the residence of the shopper and is therefore more convenient in terms of travel time. The results further indicated that shoppers prefer not having to deal with a lot of traffic and therefore choose to go to a smaller convenience shopping centre. This also applies to garage type outlets. (c) The convenience shopping centre offers fast and easy parking. (d) The volumes of people in regional shopping centres and the congestion effect created by overcrowded malls does influence shoppers to rather go to a smaller convenience shopping centre or garage type outlet.
Objective 5: Determine whether there are any analogies which can be drawn between the demographic profile of shoppers and their decision whether to shop at a regional shopping centre or smaller convenience outlet.
5.3.2.4 Finding 5 A number of contingency tables where compiled in order to determine whether there is any relationship between the shopping behaviour of consumers and their demographic profile and therefore whether any aspect of their demographic profile results in them behaving in a certain way when deciding whether to visit a regional shopping centre or a smaller convenience shopping centre. Zikmund (2003:476) defines a contingency table as “the result of a cross-tabulation of two variables, such as answers to two survey questions”.
The contingency tables which were constructed included the following cross-tabulations: (a) A cross-tabulation of the total monthly household income and the frequency of visits to Cresta Regional Shopping Centre and smaller convenience shopping centres. (b) The number of cars per household and the frequency of visits to Cresta Regional Shopping Centre and smaller convenience shopping centres.
106 (c) The number of people in the household and the frequency of visits to Cresta Regional Shopping Centre and smaller convenience shopping centres. (d) The gender of participants in the study and the frequency of visits to Cresta Regional Shopping Centre and smaller convenience shopping centres.
These cross tabulations were found to provide no meaningful result which could lead to a finding on a relationship between the two. There was therefore no specific pattern or tendency in behaviour which stood out when comparing the variables as listed. These cross-tabulations were as a result not included in this chapter.
5.3.3 Summary of findings Table 5.7 is a summary of the results of the study.
Table 5.7: Summary of findings
Paragraph on List of findings Paragraph in text questionnaire results (a) Patrons equally support a regional shopping centre and the convenience shopping centres located within the catchment area of the regional shopping centre in terms of visits. Frequency of visits to 5.3.1.1 5.3.1 the regional shopping centre (1 out of very 2 visits) has decreased as a result of the convenience shopping centres constructed. (b) Consumers indicated a high level of awareness of the increase of 5.3.2.1 4.4.2 new retail offerings within the areas in which they reside. (c) Consumers prefer to do grocery shopping at a convenience 5.3.2.2 (a) 5.3.2.2 shopping centre than at a regional shopping centre. (d) Regional shopping centres is preferred as a destination for fashion, homeware and décor shopping as well as visiting restaurants and coffee shops. Convenience shopping centres are not preferred 5.3.2.2 (b) 5.3.2.2 for fashion shopping but do receive support in terms of homeware/décor shopping as well as visiting restaurants and coffee shops. (e) Regional shopping centres are not preferred for visiting hardware stores and convenience shopping centres do receive a small 5.3.2.2 (c) 5.3.2.2 percentage of preference in visits to hardware stores.
107 (f) Regional shopping centres and convenience shopping centres receive equal but limited support for visiting furniture and appliance 5.3.2.2 (d) 5.3.2.2 stores as well as speciality stores. (g) Shopping for furniture and appliances are mostly done at other destinations rather than at regional and convenience shopping 5.3.2.2 (d) 5.3.2.2 centres.
(h) Regional shopping centres receive substantial preference over convenience shopping centres in terms of visiting beauty and health 5.3.2.2 (e) 5.3.2.2 stores as well as entertainment facilities. (i) Regional shopping centres and smaller convenience shopping 5.3.2.2 (f) 5.3.2.2 centres receives equal preference for visits to service stores. (j) Regional shopping centres are preferred by a substantial margin 5.3.2.2 (g) 5.3.2.2 for browsing and meeting friends as well as banking. (k) Convenience shopping centres do not have the critical mass to 5.3.2.2 (h) 5.3.2.2 draw shoppers similar to regional shopping centres. (l) Regional shopping centres receive preference from shoppers because it offers variety, a one stop shopping facility, long trading 5.3.2.3 4.4.3 hours and because it is very accessible. (m) Smaller convenience shopping centres receive preference from shoppers because it saves them time, is closer to their residence and 5.3.2.3 4.4.3 results in less traffic, it offers fast and easy parking and in order to avoid overcrowded malls.
The propositions for this study were:
P1: The increased development of neighbourhood convenience shopping centres within the catchment areas of regional shopping centres leads to a decrease in patronage or frequency of visits to the regional shopping centres.
P2: Regional shopping centres and neighbourhood convenience shopping centres and other convenience retail outlets compete directly in terms of patronage as a result of the element of convenience.
Proposition 1 is supported by findings (a), (b), (c), (e), (f), and (i) as summarised in Table 5.7. It is evident from the findings in Table 5.7 especially finding (a) that proposition 1 is adequately supported by the research conducted and is recommended.
108 Proposition 2 is supported by finding (a), (b), (c), (f), (i), (l) and (m) as summarised in Table 5.7. The findings, especially finding (m) in Table 5.7 adequately support proposition 2 and the proposition is recommended.
5.4 LIMITATIONS TO THE STUDY
• It should be noted that this study was limited to one regional shopping centre namely Cresta Regional Shopping Centre and the various convenience shopping centre facilities located within the demarcated catchment area of Cresta Shopping Centre.
• The difficulty experienced with the completion of the questionnaires resulted in the sample size being smaller than initially anticipated. It is however doubtful if a larger sample would have yielded a different result.
5.5 RECOMMENDATIONS FOR FUTURE RESEARCH
• This study did not make provision for measuring the duration of time spent by respondents at the subject regional shopping centre as well as the smaller convenience shopping centres. The dwell time at one retail format as opposed to the dwell time at another could significantly influence the measurement of support for the different retail formats.
• To further ascertain the real effect of the competition between Cresta Shopping Centre and other smaller convenience shopping centres, a separate survey will have to be conducted to also indicate the amount of money spent by each individual, the so-called spent per head, at the different retail formats. The outflow in terms of patronage from a regional shopping centre to a convenience shopping centre might be mitigated by the amount of money spent at the regional shopping centre compared to the smaller retail formats.
109 • The effect of other regional shopping centres located within the catchment area of Cresta Shopping Centre was not taken into account with the execution of this study and could be further investigated.
• The internal and exterior design of a specific retail shopping centre, be it regional or convenience shopping centre and the effect thereof on preferential patronage should be further investigated as well as travel time to the centres.
• The growth in population within the specific demarcated catchment area of the regional shopping centre and its effect on patronage of both regional and convenience shopping centres did not form part of this study and could be further investigated.
5.6 CONCLUSION
This chapter discussed the results of the study in line with the primary and secondary objectives identified. The chapter furthermore summarised the key findings as derived at through the interpretation of the research results.
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116 APPENDIX 1
Questionnaire number
QUESTIONNAIRE INTRODUCTION
Dear Sir/Madam. This questionnaire forms part of a study currently being undertaken by Mr Stephan Olivier who is a Masters student at the University of Johannesburg. Mr Olivier is currently collecting data for his dissertation on “Consumer behaviour related to convenience shopping” with specific reference to Cresta Shopping Centre and the shopping facilities in the areas surrounding Cresta Shopping Centre.
Please be so kind as to take a few minutes to complete this questionnaire. The questionnaire should not take longer than 15 minutes to complete.
Kindly note that all information provided will be treated with the strictest confidence and will be used for research purposes only.
SECTION A – PATRONAGE BEHAVIOUR Please complete the questions by indicating an “X” in the applicable box.
Q 1: How often do you visit Cresta Shopping Centre?
Daily 2 to 3 Once a 2 to 3 Less than Never times week times once a per per month week month
117
Q 2: Are you aware of any small convenience shopping centres constructed in the area where you reside within the past ten years? Yes No
If your answer to the above question is “yes”, please indicate which small convenience centres if you are familiar with their names: ………………………………………………………………………………………………………… …………………………………………………………………………………………………………
Q 3: How often do you visit smaller convenience shopping centres in the vicinity of Cresta? (e.g. Blackheath Pavilion, L’Corro shopping centre, Appleby’s Market, RockCottage, Town Square shopping centre, Fontainbleau Village Shopping Centre, Northcliff Square etc.)
Daily 2 to 3 Once a 2 to 3 Less than Never times week times once a per per month week month
Q 4: How often do you shop at a typical filling station outlet? (eg. Engen Quickshop, Shell Select, BP Express shop)
Daily 2 to 3 Once a 2 to 3 Less than Never times week times once a per per month week month
118 SECTION B – SHOPPING BEHAVIOUR
Please complete the questions by indicating an “X” in the applicable box.
Q 5: For what reason/purpose would you typically visit Cresta Shopping Centre? Please indicate the reason/purpose by marking the appropriate number as follows:
1 = never 2 = 20% to 40% of all visits 3 = 40% to 60% of all visits 4 = 60% to 80% of all visits 5 = Almost every visit
Never Every visit Buy groceries 1 2 3 4 5 Buy clothing or shoes 1 2 3 4 5 Visit restaurants/coffee shops 1 2 3 4 5 Homeware/Decor 1 2 3 4 5 Hardware store 1 2 3 4 5 Furniture and appliances 1 2 3 4 5 Entertainment 1 2 3 4 5 Beauty & health stores (eg. Chemist/Clicks etc.) 1 2 3 4 5 Speciality stores (eg. toys/cell phones) 1 2 3 4 5 Service stores (eg. Bank/dry cleaner) 1 2 3 4 5 Browse/to meet friends 1 2 3 4 5 Business/pay accounts 1 2 3 4 5
Q 6: Please list any other reason/purpose for visiting Cresta Shopping Centre: ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………
119
Q 7: For what reason/purpose would you usually visit a small convenience shopping centre close to Cresta Shopping Centre as referred to in question 3? Please indicate the reason/purpose by marking the appropriate number with an “X” as follows:
1 = never 2 = 20% to 40% of all visits 3 = 40% to 60% of all visits 4 = 60% to 80% of all visits 5 = Almost every visit
Never Every visit Buy groceries 1 2 3 4 5 Buy clothing or shoes 1 2 3 4 5 Visit restaurants/coffee shops 1 2 3 4 5 Homeware/Decor 1 2 3 4 5 Hardware store 1 2 3 4 5 Furniture and appliances 1 2 3 4 5 Entertainment 1 2 3 4 5 Beauty & health stores (eg. Chemist/Clicks 1 2 3 4 5 etc.) Speciality stores (eg. toys/cell phones) 1 2 3 4 5 Service stores (eg. Bank/dry cleaner) 1 2 3 4 5 Browse/to meet friends 1 2 3 4 5 Business/pay accounts 1 2 3 4 5
Q 8: For what reason would you usually visit a garage type outlet similar to the ones referred to in question 4? ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………
120 Q 9: I would rather go to Cresta Shopping Centre than a smaller neighbourhood centre because …..(Please rank the below reasons out of 9 with 1 being the most important reason and 9 being the least important reason.)
The centre offers a variety of stores I can do all my shopping at one place (One stop shopping) I like the atmosphere Of the easy and sufficient parking Of the safe environment The centre offers something unique (Unique experience) The centre is very accessible The centre has long trading hours The centre offers a variety of entertainment
Any other reason: …………………………………………………………………………………………………………. .………………………………………………………………………………………………………... Q 10: I would visit smaller Convenience shopping centres in the vicinity of Cresta, instead of Cresta Shopping Centre because …..(Please rank the below reasons out of 11 with 1 being the most important reason and 11 being the least important reason.)
It is more convenient The smaller centre offers everything I need I save time Of easy parking Of the safe environment More convenient trading hours I prefer to buy less products and make more frequent trips to the centre It is closer to my house Shorter walking distances between stores I do not have to deal with a lot of traffic I want to avoid having to visit overcrowded and congested malls
121 Any other reason why I would visit a smaller Convenience shopping centre in the vicinity of Cresta, instead of Cresta Shopping Centre: …………………………………………………………………………………………………………. .……………………………………………………………………………………………………..…. …………………………………………………………………………………………………………
Q 11: “I do not go to Cresta Shopping Centre because”: (please complete if your answer to this statement is “yes”) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………
SECTION C – DEMOGRAPHIC INFORMATION:
Q 12: Please indicate your gender: Male Female
Q 13: Please indicate your age:
Q 14: What is your home language?
English Afrikaans Asian African European Other
Q 15: Please indicate as per your household:
Number of cars Number of earners Number of people in household
122
Q 16: Please indicate your area of occupation:
Management Sales Clerical Production Transport Technical Service Pensioner Unemployed Student Housewife Labourer/Domestic Other (Please specify)
Q 17: Please indicate the number of years:
You have resided at your current address You have been a shopper at Cresta
Q 18: Your current life cycle?
Young, single, married, (children in pre-school) Full nest (children at school or living in) Empty nest (older, children left home, without children, widowed/divorced)
123
Q 19: What is the total monthly income of your household before any deductions? (Gross Income) Up to R 5 000 per month R 5 001 to R 10 000 per month R 10 001 to R 15 000 per month R 15 001 to R 20 000 per month R 20 001 to R 25 000 per month R 25 001 to R 30 000 per month R 30 001 to R 35 000 per month R 35 001 to R 40 000 per month R 40 001 to R 50 000 per month R 50 001 to R 60 000 per month R 60 001 to R 75 000 per month R 75 001 to R 100 000 per month > R 100 000 per month
Q 20: Please indicate the following:
Suburb where I currently reside Street where I currently reside
THANK YOU FOR COMPLETING THE QUESTIONAIRRE
124 APPENDIX 2
Questionnaire number
QUESTIONNAIRE INTRODUCTION
Dear Sir/Madam. This questionnaire forms part of a study currently being undertaken by Mr Stephan Olivier who is a Masters student at the University of Johannesburg. Mr Olivier is currently collecting data for his dissertation on “Consumer behaviour related to convenience shopping” with specific reference to Cresta Shopping Centre and the shopping facilities in the areas surrounding Cresta Shopping Centre.
Please be so kind as to take a few minutes to complete this questionnaire. The questionnaire should not take longer than 15 minutes to complete. Please keep your general shopping habits in mind while completing the questionnaire.
Kindly note that all information provided will be treated with the strictest confidence and will be used for research purposes only.
QUALIFICATION QUESTION: Yes No
Do you work at Cresta Shopping Centre? Are you under the age of 16 years? Do you live further than 15 km from Cresta Shopping Centre?
If you have answered “Yes” to any of the above three questions, please do not proceed with the completion of the rest of the questionnaire. Thank you for your participation in the study.
If you answered “No” to the above questions please proceed to Section A on the following page.
125 SECTION A – PATRONAGE BEHAVIOUR Please complete the questions by indicating an “X” in the applicable box.
Q 1: How often do you visit Cresta Shopping Centre?
Daily 2 to 3 Once a 2 to 3 Once a Less than Never times week times month once a per per month week month
Q 2: Are you aware of any small convenience shopping centres that have been constructed within the last 10 years in the area where you reside? Yes No
If your answer to the above question is “yes”, please indicate which small convenience centres if you are familiar with their names: (1 or 2 would be sufficient)……………………………………………………………………………………………… …………………………………………………………………………………………………………
Q 3: How often do you visit smaller convenience shopping centres in the vicinity of Cresta? (e.g. Blackheath Pavilion, L’Corro shopping centre, Appleby’s Market, RockCottage, Town Square shopping centre, Fontainbleau Village Shopping Centre, Northcliff Square or any other similar type convenience centre)
Daily 2 to 3 Once a 2 to 3 Once a Less than Never times week times per month once a per month month week
126 Q 4: How often do you visit a typical filling station outlet? (eg. Engen Quickshop, Shell Select, BP Express shop)
Daily 2 to 3 Once a 2 to 3 Once a Less Never times week times per month than per month once a week month
SECTION B – SHOPPING BEHAVIOUR
Please complete the questions by marking an “X” in the applicable box.
Q 5: For what reason/purpose would you typically visit Cresta Shopping Centre? Please indicate the reason/purpose by marking the appropriate number as follows:
1 = never 2 = 20% to 40% of all visits 3 = 40% to 60% of all visits 4 = 60% to 80% of all visits 5 = Almost every visit
When visiting Cresta Shopping Centre how often do you……?
Never Every visit visit grocery stores 1 2 3 4 5 visit clothing or shoe stores 1 2 3 4 5 visit restaurants/coffee shops 1 2 3 4 5 visit Homeware/Décor shops 1 2 3 4 5 visit Hardware store 1 2 3 4 5 visit Furniture and appliances stores 1 2 3 4 5 visit the Entertainment facilities 1 2 3 4 5
127 Never Every visit visit Beauty & health stores (eg. Chemist/Clicks etc.) 1 2 3 4 5 visit speciality stores (eg. Toys/cell phones) 1 2 3 4 5 visit service stores (eg. Bank/dry cleaner, Post office) 1 2 3 4 5 browse or meet friends 1 2 3 4 5 visit the centre to pay accounts 1 2 3 4 5
Q 6: Please list any other reason/purpose for visiting Cresta Shopping Centre: ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………
Q 7: For what reason/purpose would you usually visit a small convenience shopping centre close to Cresta Shopping Centre as referred to in question 3? Please indicate the reason/purpose by marking the appropriate number with an “X” as follows:
1 = never 2 = 20% to 40% of all visits 3 = 40% to 60% of all visits 4 = 60% to 80% of all visits 5 = Almost every visit
When visiting a convenience shopping centre how often do you…….?
Never Every visit visit grocery stores 1 2 3 4 5 visit clothing or shoes stores 1 2 3 4 5 visit restaurants/coffee shops 1 2 3 4 5
128 (Q7: Continued)
Never Every visit visit Homeware/Décor stores 1 2 3 4 5 visit Hardware stores 1 2 3 4 5 visit Furniture and appliance stores 1 2 3 4 5 visit the Entertainment facilities 1 2 3 4 5 visit Beauty & health stores (eg. Chemist/Clicks 1 2 3 4 5 etc.) visit Speciality stores (eg. toys/cell phones) 1 2 3 4 5 visit Service stores (eg. Bank/dry cleaner) 1 2 3 4 5 browse or meet friends 1 2 3 4 5 visit the centre to pay accounts 1 2 3 4 5
Q 8: For what reason would you usually visit a garage type outlet similar to the ones referred to in question 4? ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… Q 9: I would rather go to Cresta Shopping Centre than a smaller convenience shopping centre because …..(Please mark the 4 most important reasons with an “X”.)
the centre offers a variety of stores I can do all my shopping at one place (One stop shopping) I like the atmosphere of the easy and sufficient parking of the safe environment the centre offers something unique (Unique experience) the centre is very accessible the centre has long trading hours the centre offers a variety of entertainment
129 Any other reason why you would rather go to Cresta Shopping Centre than a smaller convenience shopping centre?: …………………………………………………………………………………………………………. .………………………………………………………………………………………………..……….
Q 10: I would visit smaller Convenience shopping centres in the vicinity of Cresta, instead of Cresta Shopping Centre because …..(Please mark the 4 most important reasons with an “X”.)
it is more convenient the smaller centre offers everything I need I save time of easy parking of the safe environment of more convenient trading hours I prefer to buy less products and make more frequent trips to the centre it is closer to my house shorter walking distances between stores I do not have to deal with a lot of traffic I want to avoid having to visit overcrowded and congested malls
Any other reason why I would visit a smaller Convenience shopping centre in the vicinity of Cresta, instead of Cresta?: …………………………………………………………………………………………………………. .…………………………………………………………………………………………..……………. …………………………………………………………………………………………………….…… Q 11: “I do not go to Cresta Shopping Centre because”: (please complete if your answer to this statement is “yes”) ………………………………………………………………………………………………………… ………………………………………………………………………………………………………… …………………………………………………………………………………………………………
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SECTION C – DEMOGRAPHIC INFORMATION:
Q 12: Please indicate your gender: Male Female
Q 13: Please indicate your age:
Q 14: What is your home language?
African language Asian European English Afrikaans Other (Zulu, language language Xhosa etc.)
Q 15: Please indicate as per your household:
Number of cars Number of earners Number of people in household
131 Q 16: Please indicate your area of occupation:
Management Sales Clerical Production Transport Technical Service Pensioner Unemployed Student Housewife Labourer/Domestic Other (Please specify)
Q 17: What is the total monthly income of your household before any deductions? (Gross Income) Up to R 5 000 per month R 5 001 to R 10 000 per month R 10 001 to R 15 000 per month R 15 001 to R 20 000 per month R 20 001 to R 25 000 per month R 25 001 to R 30 000 per month R 30 001 to R 35 000 per month R 35 001 to R 40 000 per month R 40 001 to R 50 000 per month R 50 001 to R 60 000 per month R 60 001 to R 75 000 per month R 75 001 to R 100 000 per month > R 100 000 per month
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Q 18: Please indicate the number of years:
You have resided at your current address You have been a shopper at Cresta
Q 19: Please indicate the following:
Suburb where I currently reside
THANK YOU FOR COMPLETING THE QUESTIONNAIRE
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