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Influence of price perception and shopping motives on Indian


consumers' attitude towards retailer promotions in malls

Article  in  Asia Pacific Journal of Marketing and Logistics · April 2014


DOI: 10.1108/APJML-09-2013-0097

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APJML
26,2 Influence of price perception
and shopping motives on Indian
consumers’ attitude towards
272
retailer promotions in malls
Received 3 September 2013
Revised 30 October 2013
Arpita Khare, Dhiren Achtani and Manish Khattar
Accepted 30 October 2013 Indian Institute of Management Rohtak, Rohtak, India

Abstract
Purpose – The current research aims to explore influence of shopping motives and price perceptions
on Indian consumers’ attitude towards mall retailer promotions. Effect of price discounts, gifts,
coupons, and rebates offered by mall retailers to attract store traffic were examined.
Design/methodology/approach – Data were collected through mall intercept technique in six cities
across India. Convenience sampling method was used to target metropolitan and non-metropolitan
cities for data collection.
Findings – Results suggest that consumers’ attitude towards mall retailers’ promotional strategies
is influenced by shopping values and price consciousness, deal proneness, and coupon proneness.
Age, education, and income influence consumers’ attitude towards promotions.
Research limitations/implications – Only three constructs of price perception scale were used for
the research. Future research can include all the items of price perception scale to understand its
applicability on Indian sample. Promotions offered by branded and non-branded retailers in malls
were not examined.
Practical implications – The findings can be useful to mall retailers for designing promotions to
increase footfalls and sales. Promotions can be used by retailers to convey value and attract price
conscious consumers. Retailers need to match their promotional offers according to price sensitivity
and shopping motives of consumers.
Originality/value – There is limited research to examine role of promotions used by mall retailers
in attracting footfalls in Indian malls. The influence of price perceptions and shopping motives on
promotions offered by retailers in Indian malls has not been examined.
Keywords Consumer behaviour, Pricing, Retail management
Paper type Research paper

Introduction
The Indian retail is poised to become a $1.3 trillion opportunity by 2020, led by an
estimated 25 percent average annual growth in organized retail (The Economic Times,
2012). Spurred by domestic demand, Indian market is estimated to grow approximately
by 7-8 percent with retail accounting for 60 percent of growth. Out of the 60 percent,
organized retail accounts for 5 percent of retail sector. These figures are comparatively
less than other emerging economies (Fibre2fashion.com, 2012). Retail growth in
Asia Pacific Journal of Marketing and India is driven by increase in nuclear families, double-income households, falling
Logistics
Vol. 26 No. 2, 2014
pp. 272-295 The authors want to extend their gratitude towards the Editor and the anonymous Reviewers for
q Emerald Group Publishing Limited
1355-5855
their indispensable and valuable suggestions and comments that improved the quality of the
DOI 10.1108/APJML-09-2013-0097 paper significantly.
real estate prices, increase in disposable incomes, changes in consumer lifestyle, and Influence of
increase in expenditure on luxury items (Shine.com, 2012). Kuruvilla and Joshi (2010) price perception
state that organized retailing in India has led to growth of malls in different regions.
The development of malls is visible not only in major metropolitan centers but also in
non-metropolitan cities. However, Gupta (2010), President Technopak Advisors states:
“with fewer than 20 percent malls delivering on the customer and financial counts, one
can clearly say that the mall revolution has not been a grand success in India”. This 273
may be attributed to many factors, like inability of malls to deliver products and
services according to Indian consumers’ preferences, lack of skilled personnel,
underdeveloped supply chain and taxation hurdles.
To attract shoppers to malls, retail stores operating in malls use promotions like
discounts, loyalty cards, price-offs, and freebies. Research suggests that factors like
price, offers, customer care, and shopping mall facilities are important for Indian
shoppers (SeminarProjects.com, 2012). Different price promotional strategies are used
by mall operators and retail stores in malls to target different segments. Sales
promotion act as versatile weapon for marketing products and services in retail stores
in malls. Promotional offers act as attractive tools to encourage footfalls in malls.
Research suggests that people shop in malls due to attractive offers, assortment mix,
and displays. Several malls report increase in sales during festivals. This is primarily
because retail stores in malls offer incentives like discounts, free gifts, and price-offs
(Damle, 2011). Promotional activities like product launches by celebrities, food
festivals, “mehndi” and tattoo workshops, exhibitions, and gifts are crowd pullers.
Gaming and cooking contests, sponsoring gift vouchers, and innovative promotional
strategies increase sales of stores in malls.
Price promotions and discounts have utilitarian and hedonic value for
consumers. They encourage consumers to purchase products that offer rebates, price
offs, or gifts. Consumers’ preference for stores is influenced by both functional and
hedonic benefits. Functional or utilitarian benefits are related to product and service
attributes, while hedonic value is associated with store ambience, layout, and product
displays (Holbrook and Hirschman, 1982; Babin et al., 1994; Turley and Milliman, 2000;
Andreu et al., 2006; Keng et al., 2007; Ballantine et al., 2010; Chebat et al., 2010). Hedonic
and utilitarian benefits offered by retailers in malls combine factors like product mix,
assortment, pricing, and promotional strategies (Wakefield and Baker, 1998; Swait and
Sweeney, 2000; Darian et al., 2001; De Nisco and Napolitano, 2006; Michon et al., 2008;
Arslan et al., 2010). The popularity of malls is attributed to retailers offering range of
facilities that targeted different consumer segments. Branded showrooms, apparel
stores, book stores, household products, movie theaters, food courts, and play areas
for kids are crowd pullers (Abratt et al., 1985; McGoldrick and Thomson, 1992;
Prendergast et al., 1998; Yavas, 2003). Price discounts, rebates, freebies, and price cuts
have been used by retailers to improve store patronage and loyalty (Cheong, 1993;
Roy, 1994; Folkes and Wheat, 1995; Trivedi and Morgan, 2003; Grewal et al., 2009). For
mall retailers, price promotion is important strategy for improving sales and consumer
satisfaction (Nusair et al., 2010; Fam et al., 2011).
An examination of extant literature revealed that there is limited research on
promotions offered by mall retailers to attract consumers. Consumers’ attitudes
towards price promotions have been extensively studied; however, there is inadequate
research to understand relationship between consumer price perceptions
APJML and price promotions offered by mall retailers in Indian malls. This study attempts to
26,2 bridge the gap by examining influence of price perceptions and shopping motives on
consumers’ attitudes towards price promotions offered by mall retail stores. The focus
of the research was to indentify pricing/promotional strategies used by only mall
retailers operating in Indian malls. The findings would add to extant literature on
retailing and Indian consumer attitudes towards mall retailer promotions. While
274 different mall attributes like assortment, ambiance, service, atmospherics and brands
have been studied; there are few researches specifically on price promotions offered by
mall retailers. Findings would provide insights about Indian consumers’ attitudes
towards mall retailers’ promotions and enable retailers’ in understanding relevance of
promotions. It would enable them in judiciously planning promotions to target specific
consumer groups. The findings would also help mall practitioners in planning
marketing promotions according to price sensitivity and shopping motives of Indian
consumers. The research questions were:
RQ1. What promotional strategies offered by retailers in malls appeal to Indian
consumers?
RQ2. Does consumers’ price perceptions influence their attitudes towards
retailer/mall promotions?
RQ3. Do shopping motives (hedonic and utilitarian) influence Indian consumers’
attitudes towards retailer/mall promotions?
The findings would help retailers in segmenting shoppers under different categories
according to their response towards mall promotions. It would help in targeting
consumer groups according to their price sensitivity, value consciousness, price
consciousness, and deal proneness behaviour. Mall owners and retailers can use the
findings to design promotional strategies for targeting consumers.

Literature review
Shopping combines both hedonic and utilitarian aspects like product availability,
variety, price, quality and pleasurable experiences (Dube and Morin, 2001). In-store
cues like product displays, music, design and colour induce positive feelings towards
retail stores. There is limited research to examine promotional practices and strategies
of mall retailers. Current research examines influence of shopping motives and price
consciousness on consumers’ attitudes towards promotions offered by mall retailers.
Promotions offered by mall retailers’ can help in increasing consumer traffic
and footfalls. Consumers’ conscious of low prices and discounts are likely to
favorably respond to promotional offers as compared to consumers who are not price
conscious. The definition of value and price consciousness would vary across
consumer segments. Price, value consciousness and shopping motives are personality
related variables that were assumed to influence consumers’ attitudes towards retailer
promotions in malls. Literature review section examines variables considered for the
study.

Price promotions
Most promotions are related to price reductions, discounts and mark-downs (Merrilees
and Fam, 1997). Kumar et al. (2004) found that profitability of coupon and price
redemption schemes depend on value of coupon redemption rates. They posit that Influence of
presence of sales target increase promotion of coupons. Parsons (2003) states price perception
traditional promotional strategies are ineffective in improving sales and mall visits.
However, combinations of promotional strategies like entertainment and price offs are
more effective than traditional methods. Some researchers suggest that promotional
strategies of retail stores have a positive impact on sales and mall visits (Kumar and
Leone, 1988; Cheong, 1993; Roy, 1994; Folkes and Wheat, 1995; Nicholls et al., 2000); 275
however, the exact contribution in terms of revenues cannot be ascertained. The
connotation of value differs according to product class. Lowe (2010) posits that extra
free products and discounts reduce consumers’ risk perception about the firm. For
products having low performance risk, consumers placed high importance to product
promotions rather than discounts, while for products with high performance risk, price
discounts were preferred.
Richards et al. (2012) found that promotional strategies improve demand for products
while increasing sales. In another research, Ailawadi et al. (2006) examined impact of
promotions on sales of other product categories and influence of factors like brand,
promotion, product category, and store characteristics on sales. Store promotions
increased sales and positive halo effect on sales of other product categories was visible.
Deep, featured promotions on high consumer-pull-brands increased net value of sales at
stores but reduced promotional margins for retailers. In another research, Nusair et al.
(2010) studied influence of price discount levels and price discount frames on consumers’
evaluation of service quality and their purchase intention. Consumers’ perception about
price discounts was dependent on nature of service. They were willing to participate in
word-of-mouth publicity only when discounts offered were high. Deep discounts drew
consumers in the short term but led to negative perception on quality. In case of outlet
mall services, increase in discounts led consumers to believe that the service was
valuable. This increased their probability to spread favourable word-of-mouth publicity
for respective malls. High discounts levels increased consumers’ intention to purchase
from malls. However, receptivity towards promotions differed across consumer types.
Trivedi and Morgan (2003) posit that consumers’ evaluate price promotions according to
value they attach to brand. Differences in price perceptions were reported among high
and low variety seeking consumers. High variety seeking consumers were less sensitive
to brand preferences and reacted positively to price promotions.
Some studies on types of promotional tools suggest that different promotions elicit
varied perceived value. Choi et al. (2010) examined consumers’ perception towards
scratch and save promotions and tensile price claims. Consumers’ found scratch and
save promotions ambiguous; however, they perceived them more enticing as compared
to tensile price claims. Similarly, Leischnig et al. (2011a) posit that in-store event
promotions led to customer satisfaction and generated positive attitude towards retail
brands. Retailer promotions improved consumer experiences and loyalty (Grewal et al.,
2009). Sit and Merrilees (2005) observe that retail promotions generate excitement
because of novelty, surprise element, and entertainment value. Similar findings were
reported by, Leischnig et al. (2011b). They suggest that inventive and entertaining
promotional events improved shopping enjoyment and loyalty towards retail stores.
Retailers use in-store marketing strategies like promotions and mark-downs to create
store excitement (Fam et al., 2011). Some retailers with high profile marketing strategy
preferred using mass media and direct marketing strategies, whereas retailers with
APJML discount orientation preferred using in-store promotions and mark-downs. In-store
26,2 promotions were strongly associated with environmental uncertainty and competitive
reactions. However, low prices, discounts and price mark-downs created negative
perception about store quality and image. Heilman et al. (2011) posit that distributing
free samples induced trial for product. It could help in product switching from planned
to promoted product category.
276 Analyzing different types of price promotions and their effect on store traffic,
Lam et al. (2001) propose that price promotions used by retailers have little impact on
generating store traffic, but positively affect store entry and increase likelihood of
product purchase. Price promotion encourages consumer to spend more time in store,
but varies with type of promotion employed by retailers. Increased promotional scope
had effect on store traffic and was relevant for multi-category retailer than for a
focused category seller. Consumers appear to prefer purchasing from multi-category
retailer if price promotions are offered as it gives them access to more product variety.
Retailers’ offering clearance promotions generate weak responses to store entry when
compared to multiple-category promotions. Moore and Carpenter (2008) identified four
consumer segments according to their price perceptions. The first segment comprised
of consumers who indicate high levels of price/quality schema, high level of value
consciousness and low level of price consciousness. They were young and belonged to
high income groups. The second segment comprised of price insensitive consumers.
They belonged to older consumer group and fall in low, middle and upper income
categories. The third consumer segment was prestige sensitive and sale prone. The
fourth consumer group was most price sensitive, value conscious and sales prone.
They were likely to place high value to discounts in retail environment.
Temporary promotional price discounts accelerate sales especially during week-ends.
Promotional offers on high-priced/quality brands have a stronger impact on sales of
low-priced/quality brands than the reverse (Martı́nez-Ruiz et al., 2006). Promotions impact
sales across categories and cross-price effects are stronger on sales of brands with similar
prices. Montaner et al. (2011) examined consumers’ response towards gift promotions.
The impact of gift promotions was favourable when brand promoted has high brand
equity and there is a good fit between promoted product and gift. Further, consumers’
susceptibility to get affected by promotions is linked to personality characteristics.
Research suggests that consumers’ high on deal proneness are more likely to get drawn to
promotions (Lichtenstein et al., 1995; d’Astous and Landreville, 2003; Montaner et al.,
2011). Chen and Lu (2011) used theory of planned behaviour to understand consumers’
e-coupon proneness in online retail format. Online retailers should focus on improving
consumers’ attitude towards using e-coupons, internet searching, and subjective norms so
that their perception of value for e-coupons is enhanced.
Drawing from above literature, it was apparent that promotions are important in
drawing consumers to retail stores in malls. Research posits that promotions increased
sales if they were in line with store image and merchandise quality. Consumers’
receptivity towards promotions was affected by not only type of promotions but also
consumer types. People more conscious about value and price were likely to respond
positively towards promotions. Price perception comprises of consumers’ price-quality,
value perception, cost advantages, and susceptibility to discounts, coupons and
promotions. Consumers’ price perceptions towards mall promotions are influenced by
coupons, deals, and value consciousness. This leads to first hypothesis:
H1. Indian consumers’ perceptions towards promotions offered by mall retailers Influence of
are affected by coupon and deal proneness. price perception
Coupon and deal proneness are personality traits and several researchers have studied
their influence on buying behaviour. Shopping motives are classified under hedonic
and utilitarian factors and influence consumers’ purchase behaviour. The following
section discusses role of both these variables.
277
Price perception
Lichtenstein et al. (1993) identified seven related constructs for price perception.
Five constructs identified price in a “negative role” and two constructs in a “positive
role”. These were used to predict shopping attitudes towards price search, generic
product purchases, price recall, sales responsiveness, and coupon redemption. Price
consciousness, value consciousness, coupon proneness, and sales consciousness factors
have an impact on consumers’ purchase behaviour. Lichtenstein and Burton (1989) posit
that consumers’ perceive objective price quality relationships with some degree of
accuracy. Price quality perceptions are more accurate for non-durable products and
product category affects price-quality perceptions. To assess price-quality relationships,
consumers use product type schemas (higher price means higher quality). Factors such
as product quality variations and confidence on price as an indicator of quality have
impact on product choice. High priced products communicate high status image
(Lambert, 1972). In some researches, price and store image influenced product quality
evaluations (Stafford and Enis, 1969).
Consumers’ price perception depends on internal reference prices (Thaler, 1985). This
is based on past experiences which act as a reference price for present stimuli
(Kalyanaram and Winer, 1995; Janiszewski and Lichtenstein, 1999). Lichtenstein et al.
(1991) posit that for high discounts, semantic cues connoting high distinctiveness lead to
favourable consumer responses. When offering price is high, distinctiveness based
semantic cues evoke favourable high price related responses. Nagle and Holden (1995)
attribute consumers’ price sensitivity to perception towards availability of substitutes,
value of product, switching costs, inability to make comparisons, quality, related
expenditure, benefits, shared costs, fairness, and inventory effects. Danes and
Lindsey-Mullikin (2012) used Nagel and Holden’s framework to understand price
sensitivity and willingness to pay. Availability of substitutes, quality, fairness, and
unique value influenced price sensitivity. Raghubir and Corfman (1999) posit that
consistency with past promotions, distinctiveness, and consumer expertise moderate
promotion related price perceptions. The price promotions should appear consistent to
the consumer as it has effect on brand evaluations.
Price perceptions include consumers’ susceptibility to lucrative offers and deals.
Lichtenstein et al. (1990) define deal proneness as a psychological construct which affects
consumers’ coupon responsiveness and value conscious behaviour. A coupon offers a
product at lower price. Value conscious and deal prone behaviour can be differentiated
on acquisition and transaction utilities. Acquisition utility refers to value consumer
derives from purchase of product because of discounts or rebates. It refers to the price
paid as compared to perceived utility of product. Transaction utility is psychological
satisfaction consumer derives from product purchase. Value conscious consumers
perceive acquisition utility important factor for product purchase, while coupon prone
consumers place importance to transaction utility.
APJML Consumers redeem coupons because they perceive increase in value of the product
26,2 due to reduced price being offered in coupon form. Martı́nez and Montaner (2006)
support Lichtenstein et al.’s findings. Psychographics traits like innovativeness,
impulsiveness, and shopping enjoyment were important in predicting consumers’ deal
proneness behaviour. There was difference between low and high deal prone consumers
with respect to their attitudes towards monetary and non-monetary promotions (Yi and
278 Yoo, 2011). Deal prone consumers’ spread more positive word of mouth than firm’s
satisfied consumers (Leone and Srinivasan, 1996; Wirtz and Chew, 2002). Price
promotions function as rewards and are powerful tools for building relationship with
customers. Barone and Roy (2010) state that companies offer discounts on assumption
that consumers’ would respond favorably to them. However, consumers’ attitude
towards deals is affected by the extent to which they identify with other recipients.
Consumers’ varying in their need for uniqueness would differ in their deal evaluations.
Consumers high on need for uniqueness were less sensitive to price promotions. Yoon
and Tran (2011) categorized deal prone consumers under value-conscious loyal,
deal-prone loyal, variety-seeking non loyal, and deal-prone non loyal.
Colombo et al. (2003) posit that consumers’ coupon proneness is likely to differ
across product categories and coupon types. Some consumer segments exhibited
generalized coupon proneness tendencies while others were affected by specific type of
coupons and product categories. Raghubir (1998) posits that consumers’ associate
coupon value with price of product. High coupon value indicates high price perception.
Similarly, Palazon and Delgado-Ballester (2009) examined interaction of promotion
types and benefit levels. High benefit level promotions were found to be more effective
than premiums. Premiums were perceived attractive when promotional benefit was
low and buying intention was high for premiums as compared to discounts.
Some researchers have used Lichtenstein et al.’s model in different cultures. Value and
price perception were reported to differ across cultures. Meng and Nasco (2009) applied
Lichtenstein et al.’s (1993) price perception model to compare price perception constructs
among American, Japanese, and Chinese consumers. The value and price perception
theory was applicable on all three cultures. Chinese consumers exhibited higher price
and prestige sensitivity as compared to American and Japanese consumers. American
consumers were more sales prone than Chinese and Japanese consumers. These findings
can help retailers in developing effective pricing and promotional strategies.
In another study, Watchravesringkan et al. (2008) examined measurement invariance
of consumers’ price perception scale across four East Asian countries of China, Taiwan,
South Korea, and Thailand. Consumers’ price perception scale containing five constructs
of price-quality schema, prestige sensitivity, value consciousness, sale proneness, and
price mavenism was relevant in East Asian cultures. Even though Asian consumers
share similar cultural values, they differ in their perceptions regarding price cues
related to constructs like price-quality schema, prestige sensitivity, value consciousness,
sale proneness, and price mavenism. The constructs of value consciousness and sale
proneness were rated higher than other price perception constructs. Korean and
Taiwanese consumers exhibited strong preference for sales and bargains. In similar vein,
it was assumed that price perception model could help in explaining Indian consumers’
attitudes towards mall promotions. Research suggests that price perception and deal
proneness are psychological constructs and affect consumers’ evaluations about retail
stores. Drawing from earlier studies, current research adapts Lichtenstein et al.’s
price perception scale to study its influence on Indian consumers’ attitude towards mall Influence of
promotions. This leads to the second hypothesis: price perception
H2. Price perceptions would influence consumers’ attitude towards retailer/mall
promotions.

Hedonic and utilitarian shopping motives 279


Consumers shopping behaviour includes not only product acquisition but also
shopping “experience”. Babin et al. (1994) classify consumption activities as utilitarian
and hedonic. Utilitarian and hedonic shopping values have been much researched
(Hirschman and Holbrook, 1982; Babin et al., 1994; Wang et al., 2000; Millan and
Howard, 2007; Michon et al., 2008). The pleasurable experience in shopping is related to
gratification of senses enhanced through entertainment, excitement, and playfulness
(Hirschman and Holbrook, 1982; Babin et al., 1994). The utilitarian motives are
extrinsic and based on rational and analytical information processing while hedonic
values have an emotional component of self gratification (Holbrook and Hirschman,
1982; Fischer and Arnold, 1990). The shopping environments provide intrinsic and
extrinsic gratification by stimulating consumers’ senses at both rational and emotional
level. Michon et al. (2005) state that shopping enables consumers to escape from their
daily work pressures. Arnold and Reynolds (2003) categorized hedonic shopping
values into six dimensions: adventure, gratification, role, value, social, and idea
shopping. They suggest that shopping values enabled consumers to interact with other
shoppers and enhanced shopping experience.
This research examines influence of hedonic and utilitarian shopping values and deal
proneness on consumers’ attitudes towards promotions offered by mall retailers.
Research suggests that promotions are important part of mall experience (Chandon et al.,
2000). Malls offer “a wide selection of products that can minimize the perceived costs
(e.g. travel time, effort) associated with each shopping trip and ease the shopping task”
(Pan and Zinkhan, 2006). The variety of outlets in malls can reduce effort expended
by consumers in looking for assortment in dispersed shopping environments (Kirkup
and Rafiq, 1994). The price promotions coupled with variety and entertainment facilities
create positive shopping environment. Consumers are able to examine different
promotional offers and discounts offered by all retailers housed in a mall. De Nisco and
Napolitano (2006) posit that stores in mall with their different assortments create a
theatrical environment which leads to greater satisfaction:
H3. Consumers’ hedonic and utilitarian shopping motives would affect their
attitude towards retailer/mall promotions.

Research methodology
Instrument design
The questionnaire contained measures for age, income levels, marital status, and
education. The objective was to understand influence of shopping values and price
perception on attitudes towards promotions offered by retailers in malls. There were two
independent factors: price perception (psychological construct) and shopping values
(motivational construct). Deal proneness and shopping values scales developed by
Lichtenstein et al. (1993) and Babin et al. (1994) were used, respectively. The reason for
using these scales was that they have been used and validated in several studies across
APJML different cultures and assumed to provide consistent results in Indian context. The
26,2 original price perception scale (Lichtenstein et al., 1993) has 40 items, (value consciousness,
price consciousness, coupon proneness, sale proneness, price mavenism, price quality
schema, and prestige sensitivity). However, only three sub-scales (value consciousness,
price consciousness and coupon proneness) from original scale were adapted because
consumers’ attitudes towards promotion were being examined. These sub-scales
280 contained items that explained consumers’ predisposition towards promotions. Other
sub-scales were related to quality and status connotations of price; therefore could not
explain consumers’ attitudes towards mall promotions. For consumers’ attitudes towards
retailer promotions, quality and status/prestige connotation of pricing was not examined
in current study. Five items were rephrased to understand attitudes towards mall retailer
promotions. Shopping motives scale consists of hedonic and utilitarian subscales
(Babin et al., 1994). It has 15 items, (11 hedonic and four utilitarian).
The dependent factor was retailer/mall promotions. Drawing from existing
research, items were adapted to measure consumers’ attitude towards discounts and
promotions offered by mall retailers (Lam et al., 2001; Sit and Merrilees, 2005;
Martı́nez-Ruiz et al., 2006; Grewal et al., 2009; Fam et al., 2011; Leischnig et al., 2011a, b;
Barone and Roy, 2010). The items combined strategies and promotions currently being
used specifically by retailers in Indian malls (Damle, 2011; SeminarProjects.com, 2012).
The items included retailer strategies like rebates, discounts, low prices, coupons, gifts,
and loyalty cards. Total items for the scale were 20. The responses were taken on a
five-point Likert scale with responses varying on the scale of 5 for strongly agree and
1 for strongly disagree.

Sample
A self administered questionnaire through a mall intercept technique was used to
collect data in six cities across India (New Delhi, Udaipur, Mysore, Chennai,
Chandigarh, and Kolkata). Cities were randomly selected according convenience in
order to gain insight consumer attitude across different regions. Both metropolitan and
non-metropolitan cities were randomly identified. Mall intercept method provides
in-depth response to research objective (Bush and Hair, 1985). It is considered random
and unbiased as respondents experience a sense of anonymity and are willing to
cooperate in research. Different periods of time and day were used in order to reduce
sampling bias. Data collection was done over a period of three months. All the
questions were close-ended and no in-depth interviews were conducted.
More than 800 people were contacted for the survey; however, only 550 people
cooperated with researchers. Most people refused to participate in the survey. Out of
550 filled questionnaires only total of 501 completed questionnaires could be used for final
analysis. Remaining questionnaires were incomplete or illegible and therefore removed.
Mall interviews are able to target only specific types of shoppers who frequent malls
(Gates and Solomon, 1982; Murry et al., 1989). Given the inherent weakness associated
with mall intercept method, sample comprised large group of male population (Table I).

Findings and discussion


To understand applicability and validity of three scales on Indian sample (namely mall
promotion, price perception, and hedonic and utilitarian shopping value scales),
Influence of
Variable Frequency Percentage
price perception
Gender
Male 377 75.2
Female 124 24.8
Age (years)
18-21 74 14.8 281
22-25 124 24.8
26-30 130 25.9
31-40 128 25.5
41-50 40 8.0
50 and above 5 1.0
Marital status
Married 250 49.9
Single 251 50.1
Education
Higher secondary 103 20.6
Senior secondary 291 58.1
Graduation 97 19.4
Post graduation 10 2.0
Household income (monthly)
Below INR 10,000 (below $218) 45 9.0
INR 10,000-20,000 ($218-445) 105 21.0
INR 21,000-30,000 ($446-667) 160 31.9
INR 31,000-40,000 ($668-889) 85 17.0
INR 41,000-50,000 ($890-1,112) 43 8.6 Table I.
Above INR 50,000 ($1,112) 63 12.6 Demographic description
Total 501 of respondents

exploratory factor analyses were run on all three scales. Factor analysis helps to
identify factors relevant for the study (Churchill et al., 2010).
The results of exploratory factor analysis (EFA) on mall promotion scale revealed
three factors, which covered 51.15 percent of variability and all eigenvalues exceeded
1.0. One item: “I get more information in malls about free gifts and products in malls than
at local stores”; had factor loading less than 0.5 and failed to fit Nunnally’s (1978)
recommended level of internal consistency for scale development. It was removed from
further analysis. The first factor was labeled as “promotional offers” as it contained
items related to products, quality, availability of variety, rebates and reasonable
prices; it contained eight items. The second factor was labeled as “discounts” and
contained items that described discounts offered by retailers in malls. The total items
under the factor were six. The third factor was labeled as “loyalty cards” and contained
items to related to loyalty cards and schemes offered by retailers. It contained five items.
Cronbach’s a value for the factors ranged between 0.744 and 0.828. KMO-Bartlett test for
scale reliability was 0.910 (Table II).
Second factor analysis was run on price perception scale (Lichtenstein et al., 1993).
For price consciousness factor, the scale gets modified, while for value consciousness
and coupon proneness the factors were similar to original scale. Analysis revealed three
factors which covered 52.68 percent of variability and all eigenvalues exceeded 1.0.
One item “I enjoy finding about deal coupons” was removed as it had factor loading less
than 0.5 and failed to fit Nunnally’s (1978) desired level for scale development.
APJML
Promotional offers Discounts Loyalty cards
26,2 Mall promotion scale items (a ¼ 0.828) (a ¼ 0.826) (a ¼ 0.744)

I am attracted to malls because the stores give good


discounts 0.364 0.570 0.429
I like those malls which provide price rebates on my
282 purchases 0.226 0.576 0.262
I prefer malls that provide a range of promotions at
different stores 0.174 0.722 0.300
The products purchased through discounts are of
good quality 0.150 0.813 0.059
I like the malls which provide good discounts on
products 0.196 0.672 0.134
Shopping at malls becomes economical because of
promotional schemes 0.147 0.553 0.122
There are good offers provided by retailers in malls 0.558 0.388 0.082
The quality of products in malls is good 0.561 0.369 0.059
There is range of products available at malls 0.797 2 0.014 0.098
The retailers offer reasonable prices on products 0.568 0.234 0.128
The sales coupons available at retail outlets are
easily redeemable 0.588 0.181 0.304
I prefer to shop at malls that offer variety with
reasonable prices 0.628 0.278 0.000
The mall retailers provide details about the new
schemes introduced by companies 0.545 0.206 0.329
The malls have displays about the rebates,
discounts, and price-offs 0.629 0.063 0.386
The discounts offered at different stores in malls are
attractive 0.348 0.148 0.565
Loyalty cards of retailers in malls are attractive 0.294 0.170 0.547
I am able to get discounts easily through loyalty
cards 0.223 2 0.007 0.724
The loyalty schemes help me in getting good offers 0.005 0.268 0.746
I regularly visit malls to find about discounts on
various products 2 0.014 0.289 0.632
Table II.
Factor loadings for mall Notes: KMO and Bartlett’s test ¼ 0.910; extraction method: principal component analysis;
promotions scale rotation method: varimax with Kaiser normalization

The first factor was labeled “coupon proneness” and contained six items related to
redeeming coupons, buying brands on deals, and using coupons. The second factor was
labeled as “value-consciousness” and contained five items related to comparing prices,
getting money’s worth, and price being related to more value. The third factor contained
two items related to price and quality. It was labeled as “price-consciousness”.
Cronbach’s a values ranged between 0.602 and 0.784. KMO-Bartlett test for scale
reliability was 0.836 (Table III).
Third factor analysis was run on hedonic and utilitarian shopping value scale
(Babin et al., 1994). Analysis revealed three factors, which covered 52.72 percent of
variability and eigenvalues exceeded 1.0. Original scale contained two sub-scales on
hedonic and utilitarian shopping values; however, current research findings revealed
three factors. The first factor was labeled as “utilitarian” as it included items related
Influence of
Coupon Value Price
proneness consciousness consciousness price perception
Price perception scale items (a ¼ 0.784) (a ¼ 0.737) (a ¼ 0.602)

I am concerned about low prices and quality 0.336 0.201 0.582


I am more concerned about lower price than the quality
of the product while deciding 0.194 0.129 0.781 283
When shopping, I compare the prices of different brands
(airlines, electronic gadgets) to be sure I get the best
value for money 0.066 0.701 0.081
When I buy product i like to be sure that I am getting my
money’s worth 0.077 0.732 0.193
I generally shop for low prices on products but they still
must meet some quality requirements before I buy them 0.122 0.561 0.326
I always check prices at stores to be sure to get best
value for money I spend 0.127 0.578 0.345
Finding deals make me feel good 0.213 0.716 20.193
When I use coupons I feel that I am getting a good deal 0.614 0.416 20.081
I enjoy using coupons and deals regardless of the
amount I save by doing so 0.639 0.134 0.263
I have favourite brands but most of the time I buy
brands for which I have coupon and a deal offer 0.684 0.072 0.269
I am more likely to buy brands for which I have a coupon
or deal 0.617 0.113 0.160
Coupons and deals have caused me to buy products that
I normally would not buy 0.615 2 0.107 0.511
Beyond the money I save, redeeming offers and coupons
gives me a sense of joy 0.653 0.140 0.155
Notes: KMO and Bartlett’s test ¼ 0.836; extraction method: principal component analysis; Table III.
rotation method: varimax with Kaiser normalization Factor loadings for
Source: Lichtenstein et al. (1993) price perception scale

to both enjoying shopping and achieving set goals during shopping trips. It contained
two items from original hedonic scale and two items from utilitarian scale. Second factor
was labeled as “hedonic” and contained five items from original hedonic shopping value
scale (Babin et al., 1994). The third factor was labeled as “value expressive” and
contained items describing not being able to find right products, shopping was a waste
of time, and being able to forget the problems. Cronbach’s a values of three factors
ranged between 0.707 and 0.735 (Table IV).
EFA results demonstrated internal consistency, with Cronbach’s a in the range of
0.602 to 0.828. Nunnally (1978) stated that 60 percent reliability is desired in early
stages of construct development.
Three sets of step wise regression analyses were administered to understand role
of shopping values, price sensitivity scales and demographic factors on three mall
promotion related factors namely, promotional offers, discounts, and loyalty cards.
It was considered important to understand influence of factors on each of the mall
promotion factors. The three factors could not be understood as one factor and had to
be studied separately. The predictor variables for each factor would enable retailers to
understand consumers’ attitude towards mall promotion factors.
APJML
Value
26,2 Shopping motives Utilitarian Hedonic expressive
(hedonic and utilitarian scale) (a ¼ 0.715) (a ¼ 0.707) (a ¼ 0.735)

Shopping trips truly feel like an escape 0.254 0.547 20.148


Compared to other things I could have done, the time spent
284 shopping was truly enjoyable 0.068 0.716 0.001
I enjoyed being engrossed in exciting new products 0.117 0.633 0.194
I enjoy shopping trip for its own sake, not just for the items I
may have purchased 0.266 0.672 0.074
I had a good time because I was able to act on “the spur-of-the
moment” 0.044 0.711 0.178
During the trip I felt the excitement of the hunt 0.596 0.186 0.248
While shopping I felt a sense of adventure 0.723 0.196 0.090
I accomplished just what I wanted to on this shopping trip 0.749 0.062 0.233
While shopping, I found just the items I was looking for 0.657 0.211 0.085
While shopping, I was able to forget my problems 0.227 0.077 0.713
This shopping trip was not a very nice time out 0.202 0.010 0.781
I could not buy what I really needed 0.467 0.044 0.562
I feel disappointed when I have to go to another store (s) to
complete my shopping trip 0.020 0.133 0.733
Table IV.
Factor loadings for Note: KMO and Bartlett’s test ¼ 0.832
shopping motives Source: Babin et al. (1994)

In the first regression test, promotional offers of mall promotion scale, was taken as
dependent factor. For the first model, hedonic shopping value emerged as predictor
variable for “promotional offers” (R 2 ¼ 0.278, p , 0.01). The first model suggests that
hedonic shopping value accounts for 27.8 percent of consumers’ attitude towards
promotional offers (Table V).
In the second model, hedonic shopping value and value consciousness of price
sensitivity scale emerge as predictors (R 2 ¼ 0.344, p , 0.01), and both these variables
account for 34.4 percent of consumers’ attitude towards promotional offers. In the
third model, hedonic shopping value, value consciousness, and utilitarian shopping
value were predictors to consumers’ attitude towards promotional offers (R 2 ¼ 0.370,
p , 0.01). In the fourth model, hedonic shopping value, value consciousness, utilitarian
shopping value and age account for 38.5 percent of consumers’ attitude towards
promotional offers. In the fifth model, hedonic shopping value, value consciousness,
utilitarian shopping value, age and value expressive were predictors to promotional
offers (R 2 ¼ 0.394, p , 0.01). Age was found to be an important predictor variable.
As age of consumers increase, they are likely to be affected by promotions. The results
support earlier research on price sensitivity and shopping values (Holbrook and
Hirschman, 1982; Fischer and Arnold, 1990; Kirkup and Rafiq, 1994; Raghubir, 1998;
Chandon et al., 2000; Yoon and Tran, 2011). Promotional offers with respect to product
quality, variety, price range, and discounts provide intrinsic and extrinsic motivation
to consumers. Mall retailers can use product promotions, variety, and displays to create
positive ambience which communicates superior shopping value. This is line with
other research findings that promotions create positive mood (Michon et al., 2008) and
are associated with good deals (Raghubir, 1998). The research findings suggest that
Influence of
Adjusted
Model Variable b R2 R2 Significance price perception
1 First regression (dependent variable:
promotional offers) 0.278 0.276
Hedonic 0.527 * 0.000 *
F ¼ 191.770 285
2 Second regression (dependent variable:
promotional offers) 0.344 0.342
Hedonic 0.371 * 0.000 *
Value consciousness 0.302 * 0.000 *
F ¼ 130.786
3 Third regression (dependent variable:
promotional offers) 0.370 0.366
Hedonic 0.308 * 0.000 *
Value consciousness 0.279 * 0.000 *
Utilitarian 0.178 * 0.000 *
F ¼ 97.277
4 Fourth regression (dependent variable:
promotional offers) 0.385 0.380
Hedonic 0.298 * 0.000 *
Value consciousness 0.275 * 0.000 *
Utilitarian 0.172 * 0.000 *
Age 0.124 * 0.001 *
F ¼ 77.664
5 Fifth regression (dependent variable:
promotional offers) 0.394 0.388
Hedonic 0.293 * 0.000 *
Value consciousness 0.278 * 0.000 *
Utilitarian 0.120 * 0.006 * Table V.
Age 0.123 * 0.001 * Step-wise regression for
Value expressive 0.109 * 0.007 * mall promotional offers,
F ¼ 64.393 deal proneness,
shopping motives and
Notes: Significant at: *0.01 level; n ¼ 501 demographics

pleasure, price benefits, getting a good deal and being able to compare prices are
important factors influencing consumers’ attitude towards promotional offers. In order
to attract store traffic, promotional offers should be planned to enhance consumers’
feeling of pleasure and getting a good deal.
In the second regression test, discounts of mall promotion scale, was taken as
dependent factor. Value expressive shopping value emerged as predictor to “discounts”
(R 2 ¼ 0.309, p , 0.01) (Table VI).
In the second model, value expressive and price consciousness of price sensitivity
scale account for 41.0 percent of consumers’ attitude towards discounts (R 2 ¼ 0.410,
p , 0.01). In the third model, value expressive, price consciousness and hedonic
shopping value were predictors and account for 45.0 percent of consumers attitude.
In the fourth model, age was introduced. Value expressive, price consciousness,
hedonic shopping value, and age are predictors. They account for 46.1 percent of
consumers’ attitude towards mall discounts. In the fifth model, income is introduced.
Value expressive, price consciousness, hedonic shopping value, age and income are
APJML
Adjusted
26,2 Model Variable b R2 R2 Significance

1 First regression (dependent variable: discounts) 0.309 0.308


Value expressive 0.556 * 0.000 *
F ¼ 223.085
286 2 Second regression (dependent variable:
discounts) 0.410 0.408
Value expressive 0.380 * 0.000 *
Price consciousness 0.363 * 0.000 *
F ¼ 173.150
3 Third regression (dependent variable:
discounts) 0.450 0.446
Value expressive 0.348 * 0.000 *
Price consciousness 0.327 * 0.000 *
Hedonic 0.207 * 0.000 *
F ¼ 135.278
4 Fourth regression (dependent variable:
discounts) 0.461 0.456
Value expressive 0.346 * 0.000 *
Price consciousness 0.323 * 0.000 *
Hedonic 0.197 * 0.000 *
Age 0.106 * 0.002 *
F ¼ 105.870
5 Fifth regression (dependent variable: discounts) 0.468 0.463
Value expressive 0.334 * 0.000 *
Price consciousness 0.311 * 0.000 *
Table VI. Hedonic 0.204 * 0.000 *
Step-wise regression Age 0.128 * 0.000 *
for mall discounts, Income 2 0.091 * 0.009 *
deal proneness, F ¼ 87.090
shopping motives
and demographics Notes: Significant at: *0.01 level; n ¼ 501

important predictors to consumers’ attitude towards discounts (R 2 ¼ 0.468, p , 0.01).


b value for income is negative, suggesting that as income increases, consumers would
be less interested in discounts. High income groups are unlikely to be affected by
discounts offered by mall retailers. However, low and middle income groups can prove
to be important target consumer groups, and may associate discounts as a good deal or
value for money. The results support earlier researches that price sensitive consumers
are influenced by promotions (d’Astous and Landreville, 2003; Montaner et al., 2011).
The current findings add to earlier research that income plays an important role in
predicting consumers’ preference for promotional offers. The discounts offered on
products in malls can generate pleasure and excitement (Fischer and Arnold, 1990;
Martı´nez-Ruiz et al., 2006; Millan and Howard, 2007). Price conscious consumers look
for low priced products and find malls good places to hunt for reasonably priced
products. Discounts attract consumers from lower-middle and middle-middle class,
who are interested in getting good quality product at low price.
In third regression test, loyalty cards of mall promotion scale, was taken as
dependent factor. For first model, hedonic shopping value emerged as predictor
variable for “loyalty cards” (R 2 ¼ 0.329, p , 0.01). The first model suggests that Influence of
hedonic shopping value accounts for 32.9 percent of consumers’ attitude towards price perception
discounts (Table VII).
In the second model, hedonic and price consciousness accounted for 41.0 percent
of consumers’ attitude towards loyalty cards. Hedonic shopping value, price
consciousness and value consciousness were predictor variables in third model. The
three variables account for 43.3 percent of consumers attitude towards loyalty cards 287
(R 2 ¼ 0.433, p , 0.01). In the fourth model, coupon proneness was introduced.
All variables account for 44.0 percent of consumers’ attitude towards loyalty cards. In
the fifth model, hedonic shopping value, price consciousness, value expressive, coupon
proneness and education were predictors to consumers’ attitude towards loyalty cards
(R 2 ¼ 0.447, p , 0.01). Highly educated consumers were likely to use loyalty cards
offered by retailers. Branded retailers often use loyalty cards to increase loyalty and
store traffic. The results are similar to earlier studies on Asian consumers which
suggest value consciousness and price consciousness as important in influencing

Adjusted
Model Variable b R2 R2 Significance

1 First regression (dependent variable:


loyalty cards) 0.329 0.327
Hedonic 0.573 * 0.000 *
F ¼ 244.277
2 Second regression (dependent variable:
loyalty cards) 0.410 0.408
Hedonic 0.500 * 0.000 *
Price consciousness 0.295 * 0.000 *
F ¼ 173.115
3 Third regression (dependent variable:
loyalty cards) 0.433 0.430
Hedonic 0.415 * 0.000 *
Price consciousness 0.255 * 0.000 *
Value consciousness 0.184 * 0.000 *
F ¼ 126.671
4 Fourth regression (dependent variable:
loyalty cards) 0.440 0.436
Hedonic 0.395 * 0.000 *
Price consciousness 0.211 * 0.000 *
Value consciousness 0.164 * 0.000 *
Coupon proneness 0.106 * 0.012 *
F ¼ 97.605
5 Fifth regression (dependent variable:
loyalty cards) 0.447 0.442
Hedonic 0.400 * 0.000 *
Price consciousness 0.219 * 0.000 *
Value consciousness 0.164 * 0.000 * Table VII.
Coupon proneness 0.105 * 0.013 * Step-wise regression
Education 0.083 * 0.014 * for mall loyalty cards,
F ¼ 80.108 deal proneness,
shopping motives
Notes: Significant at: *0.01 level; n ¼ 501 and demographics
APJML consumers’ price perceptions (Watchravesringkan et al., 2008; Meng and Nasco, 2009).
26,2 However, it was found that mall promotions also connote hedonic value for Indian
consumers.

Marketing implications
There are limited studies to understand Indian consumers’ attitude towards promotions
288 and price perceptions and current research can be useful to both retailers and retail firms
planning to enter Indian sub-continent. Two important issues were considered:
(1) Whether Indian consumers’ price perceptions affect their attitude towards mall
retailer promotions.
(2) Whether shopping values (hedonic and utilitarian) have any influence on mall
retailer promotions.

These two issues were found to be interrelated. Indian consumers perceive promotions
offered by retailers in light of pleasure and value they get from those promotions. The
findings classified mall promotions under three distinct types: discounts, promotional
offers, and loyalty cards. The study adds to extant literature. There are few studies in
retailing literature to understand consumer segments according price and product
related promotional strategies. An understanding about relationship between deal/value
consciousness and mall promotions provides useful insight to mall owners and retail
practitioners. It would help them in understanding consumers’ attitudes towards mall
promotions with respect to price and value sensitivity. None of earlier researches on mall
retailers have discussed promotions in light of value consciousness and shopping
motives. Understanding consumers’ attitudes towards different promotions can help
mall retailers in designing promotional strategies for specific consumer segments. There
are very few researches on retail promotions in emerging markets; and current research
provides insight about consumer attitudes towards mall retailer promotions. Further,
there are no studies on value and deal consciousness behaviour of Indian consumers.
With expansion of organized retail formats, multi-brand retailing and retail liberalization
initiatives undertaken by Indian government (Deloitte, 2013), the findings can be useful
for planning marketing strategies for mall consumers.
Indian consumers were segmented according to three shopping values, namely
hedonic, utilitarian, and value expressive. Earlier researches posit that price sensitive
consumers’ are likely to be affected by price promotions. The current research adds to
literature by suggesting relevance of shopping motives in explaining Indian consumers’
attitudes towards mall retailer promotions. Shopping motives have utilitarian and hedonic
interpretations and explain consumers’ reasons for frequenting a particular mall. Pleasure
and novelty aspects of promotions can induce retailer loyalty and positive word-of-mouth.
Indian malls draw store traffic, but are unable to translate footfalls into sales (Gupta, 2011).
The findings clearly suggest that retailers can use promotions to combine functional and
hedonic benefits of shopping to encourage footfalls and sales. A combination of
promotional schemes should be used to target consumers visiting malls.
Babin et al.’s (1994) shopping value scale gets modified and a new factor, value
expressive, gets added to existing two factors. Displays, variety, product quality,
discounts, rebates, and loyalty cards were relevant factors in mall promotions. Price
perception factors affect consumers’ mall retailer promotion attitudes. Mall retailers
can use promotions in order to attract value conscious, price conscious and coupon
prone consumers. The discounts and rebates offered by malls enable consumers to Influence of
purchase branded products at discounts. Since pricing strategies are important issue for price perception
retailers, findings provide practical insights about promotional mix decisions.
Promotions can be used to convey value and attract price conscious consumers.
Retailers need to identify their target consumers in order to use promotional offers and
discounts. Price is used to convey high or low image of the product and therefore
promotions should be used cautiously to support price perception retailer wishes to create. 289
Recent liberalization initiatives by Indian government have enabled many
international retail firms to enter Indian market. They may use these findings to
understand consumers’ perceptions about promotions and prices. Multi-brand retailing
is making inroads and international brands are offering promotions to attract shoppers
to their stores. Products purchased on discounts can make shoppers feel that they have
got a good deal. Branded stores can use promotional pricing strategies to enhance
shoppers’ feeling of pleasure and adventure. It can motivate them to visit malls
frequently in order to check discounts being offered by different retailers. The strategic
issue would be to relate promotions with pleasure, happiness, and value. Consumers
would positively respond to promotions if they feel that they are getting good quality
products and brands at good prices. Promotional pricing can help retailers in positioning
their products and store by communicating a high or low end image. Targeting value
and price conscious consumer through promotions can help in improving footfalls.
Retailers in malls can use different promotion strategies for targeting different
consumer segments. Segmenting consumers according to shopping motives, price
perception, income and age can help in using different promotions for different groups.
Identifying promotional strategies for specific consumer group enhances value
perception. High-income group consumers are not impressed by discounts, instead
such consumers prefer loyalty cards, which can be used to create an upscale image and
increase the likelihood of repeat purchases. Low income groups can be targeted by
rebates, discounts, variety, and coupons. Indian consumers’ understanding about
coupons is low. Efforts should be made by retailers to educate and inform consumers
about benefits they are likely to get by using coupons. Consumers should be
encouraged to try coupons; promotions may be used to increase trial of coupons. This
would encourage consumers to purchase brands that offer coupons. The discounts and
coupons can lead to impulsive purchase behaviour. It also leads to cross selling of other
brands in the store.
Indian consumers’ motives were classified as: utilitarian, hedonic and value
expressive. Consumers look for high variety of products and are delighted by
promotions like free gifts, lucky draws, etc. This can improve mall traffic. Findings
suggest that promotional offers help in attracting value conscious consumers but are
not important for consumers looking for utilitarian benefits. As age increases,
consumers’ interest in promotions is likely to increase. This may be attributed to
bigger family size and consumers looking for good deals while purchasing larger
packs. Consumers with high incomes are not influenced with discounts. To attract
higher income groups, retailers should target them with loyalty cards. Loyalty cards
may be perceived as high class and would improve consumer satisfaction with
retailer. It may also help retailers’ in differentiating themselves from other discount
stores in the malls.
APJML Limitations and future research directions
26,2 Although the research tried to include different cities across India, future research
could target more number of consumers. Also, we can broaden the scope of research by
including Tier 2 cities, where the promotion mix required may be different. There are
larger numbers of males as compared to females in the sample. This is because of
inherent weakness of using mall intercept method to collect data. Future research can
290 try to have equal gender representation. Women may exhibit different shopping values
and price perception and cross gender comparison may be useful.
Only three constructs of price perception scale were used for the research. It would be
interesting to check the dimensionality of the seven constructs on the Indian consumers.
The results can help in understanding applicability of the scale in Indian context. There
were no questions in the survey to understand consumers’ perception about promotions
with respect to product categories or brands. It would be useful to study consumers’
price perception about different product categories like grocery, food, durables,
garments and fashion accessories. This would help in understanding consumers’
susceptibility towards promotions with respect to different product categories. In the
research, the effect of promotions in malls has been discussed; however, relation and
impact of promotions on number of trials induced may be explored. The impact of
promotions on supply chain of products can be taken up in further study. This can help
the new market players to understand consumption patterns to manage distribution
channels accordingly. Future research can be conducted to understand nature of mall
promotions for luxury brands. The insights can be valuable for luxury brands in
deciding their promotional and pricing mix.

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Further reading
Erkip, F. (2005), “The rise of the shopping mall in Turkey: the use and appeal of a mall in
Ankara”, Cities, Vol. 22 No. 2, pp. 89-108.
Parsons, A. (2009), “Use of scent in a naturally odourless store”, International Journal of Retail &
Distribution Management, Vol. 37 No. 5, pp. 440-452.
Reddy, P.R. and Babu, N.G. (2012), “Customer perception on promotional methods at shopping
malls in and around Tirupathi”, South Asian Journal of Marketing & Management
Research, Vol. 2 No. 12, pp. 68-74, available at: www.indianjournals.com/ijor.aspx?
target¼ijor:sajmmr&volume¼2&issue¼12&article¼007 (accessed 26 June 2013).
Soars, B. (2009), “Driving sales through shoppers’ sense of sound, sight, smell, and touch”,
International Journal of Retail & Distribution Management, Vol. 37 No. 3, pp. 286-298.
Summers, T.A. and Herbert, P.R. (2001), “Shedding some light on store atmospherics influence of
illumination on consumer behavior”, Journal of Business Research, Vol. 54, pp. 145-150.
Taylor, G.A. (2001), “Coupon response in services”, Journal of Retailing, Vol. 77, pp. 139-151.
Wong, J.-Y., Tsaur, S.-H. and Wang, C.-H. (2009), “Should a lower-price service offer a
full-satisfaction guarantee?”, The Service Industries Journal, Vol. 29 No. 9, pp. 1261-1272.
Zafar, A.U., Morry, G. and Dahari, Z. (2007), “Malaysian shopping behaviour: an exploratory
study”, Asia Pacific Journal of Marketing and Logistics, Vol. 19 No. 4, pp. 331-348.

Corresponding author
Arpita Khare can be contacted at: khare.arpita@gmail.com

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