The Relationship between Mall Attributes and Customer Loyalty: The Mediating Effect of Shopping Value

The aim of the current study is to discover the impact of mall attributes on customer loyalty through the mediating effect of shopping values (Hedonic & Utilitarian values). In this study mall attributes comprises seven factors which are products ,atmosphere, social interaction with other customers ,convenience, service ,price, social interaction with employees. Mall intercept interviews are conducted to collect data at three shopping malls in a great Cairo in Egypt. PLS-SEM is implemented for testing the hypotheses. The findings indicate that most mall attributes (atmosphere, social interaction with employees, and social interaction with other customers) have a significant and positive effect on hedonic shopping value. The results also indicated that only atmosphere and convenience have a significant and positive impact on utilitarian shopping value. Findings also showed that most mall attributes (social interaction with employees, interaction with other customers, convenience, service, and price) were found to affect positively and significantly the customers’ loyalty. The results also showed that only hedonic shopping value significantly and positively influences customers’ loyalty. Therefore, only hedonic shopping The Relationship between Mall Attributes Dr . Ahmed Samir Roushdy 25/5/2017 Scientific Journal for Economic& Commerce 952 value has a partial mediation effect between some mall attributes (atmosphere, social interaction with employees and social interaction with other customers) and loyalty. The results of this study provide the shopping malls in Egypt with a specific knowledge of the mall attributes that will affect the shopping value and consequently the customer loyalty, and suggest some useful marketing strategy implications for them in order to compete in this market. On the other hand the current research develops and empirical validate of a hypothetical model that predicts the relationship between mall attributes, shopping value, and customer loyalty. Introduction: Nowadays, shopping malls have an important role in social activities and lifestyles of consumers (Terblanche, 1999). With the growing number of shopping malls, customers have become more selective. Features that attract some customers may not attract others (El-Adly, 2007). Thus, shopping malls managers should understand satisfaction with mall attributes and customers’ satisfaction with the mall shopping experience about all of these attributes specially with this highly competitive environment (Machleit et al., 2005). Michon and Chebat (2004) stated that shopping value representing the benefits resulted in the shopping experience and deduces satisfaction with that experience and consequently achieving customers’ loyalty . Babin et al. (1994) advocate that shopping value including two dimensions that reveal the overall benefits of shopping activities which are utilitarian and hedonic shopping value. According to Bab in and Attaway (2000), utilitarian value reflects task-related worth, and hedonic value reflects worth found in the shopping experience itself, aside from task-related motives. The Relationship between Mall Attributes Dr . Ahmed Samir Roushdy 25/5/2017 Scientific Journal for Economic& Commerce 953 Therefore, the paper’s key objective is to consider the antecedents of loyalty to shopping malls in the retail area and identify what the relative importance of these attributes are from a customers' point of view, and if the shopping value affects the relationship between mall attributes and loyalty. This research including six sections; the first section is the introduction followed by a literature review in section two. Section three will illustrate the research methodology. The fourth section will address the data analysis and hypotheses testing. Section five will report findings. Finally, section six will address limitations and future researches. Literature Review: Mall attributes Previous researches have identified mall attributes as a multi-dimensional construct, which are varied across literature review. A study conducted by Du et al., (2008b) classified mall attributes into eight dimensions; that are, atmosphere, convenience, facilities, institutional, merchandise, promotion, sales personnel and service. While Chebat et al., (2010) identified that attracting more people to a mall can be affected by access, atmosphere, price/promotion and assortment. Lately, Mafini & Dhurup (2015) identified five factors; namely, store assistance, atmospherics, appeal, promotion and accessibility receive empirical attention. Bearden (1977) stated that shopping mall atmosphere, friendliness of mall staff, location, and parking facilities are the main factors that influence consumer mall patronage. Amine and Cadenat (2003) pinpointed mall appearance, employees and promotional materials as components of a mall’s image. While The Relationship between Mall Attributes Dr . Ahmed Samir Roushdy 25/5/2017 Scientific Journal for Economic& Commerce 954 Miranda, et al.,(2005),found other attributes, which are, store’s location, nature and quality of stocks, in-store promotions, sales personnel, physical attributes, convenience of store, atmospherics, and loyalty cards that influences consumer behavior. In the current study, the researcher identifies seven factors that are most popular in previous researches in shaping the mall attributes, which are ;products, atmosphere, social interaction with other customers, convenience, service ,price, and social interaction with employees. Shopping value Shopping value is operationalized as two dimensions that indicate an assessment of the overall worth of shopping activity in terms of utilitarian and hedonic shopping value (Babin et al. 1994). Davis and Hodges (2012) stated that Customers in shopping are motivated by a range of psychosocial needs that go beyond the acquisition of products and services. The fun and playfulness of shopping represent the hedonic value that shoppers gain during their shopping experience (Babin et al., 1994; Borges et al., 2013). Recreational shoppers probably expect high levels of hedonic value which stems from the retailer’s ability to provide customers with fun, excitement, fantasy, and inspiration (Babin et al., 1994; Diep and Sweeny, 2008; Nsairi, 2012). Fortunately, the mall through its interior design, décor, music, aromas, lighting, fun and entertainment programs, fashion shows, and events, as well as its physical environment, are able to create more hedonic value to shoppers than a stand-alone store can ( The Relationship between Mall Attributes Dr . Ahmed Samir Roushdy 25/5/2017 Scientific Journal for Economic& Commerce 955 El-Adly, and Eid, 2015). Hedonic value was captured by five factors adapted from El-Adly, and Eid, (2015). Utilitarian value reflects task-related worth; therefore, utilitarian customers see shopping trips from a work perspective as a mission to get what they need or want by purchasing a product; then the mission is completed (Babin et al., 1994; Cai and Shannon, 2012). In fact, malls provide their shoppers with this utilitarian value through their ability to meet customers’ needs and wants via the plurality and variety of stores, products, restaurants, and service providers, etc. in a mall. Utilitarian value was captured by two factors adapted from Babin et al. (1994); and Diep and Sweeney (2008). Mall loyalty Most of previous researches in the shopping malls context stated that mall attributes have a positive impact on mall loyalty (Dick and Basu, 1994, Wallace et al., 2004). While Bowen and Chen (2001) found that loyalty towards a specific shopping mall is affected by the customers’ experience of the characteristics of the mall. Accordingly it’s very critical for the customers to keep their mind on the mall attributes which affect their repurchase intention. Shoppers are depending on different shopping malls meet their shopping needs (Nguyen et al., 2007). Based on the inference theory by Nisbett and Ross, (1980), shoppers use whatever available information cues, such as atmospherics cues, to evaluate unavailable, missing, or difficult to evaluate information such as price, convenience, service, merchandise, other customers, and employees which affect shopping value and consequently affect their loyalty (Baker et al., 2002, Espinoza et al., 2004, Marie et al., 2011). Relationship between Mall Attributes, shopping value (hedonic and utilitarian) and Loyalty The Relationship between Mall Attributes Dr . Ahmed Samir Roushdy 25/5/2017 Scientific Journal for Economic& Commerce 956 Products: It is an important image attribute because it acts as the ‘core product’ of shopping malls (Berman & Evans, 2001). This is proved by Wakefield and Baker’s study (1998), which underlined product and tenant variety as motivation that brings excitement in a shopping mall setting and thus influence the consumer’s loyalty. Four merchandise-related items are frequently identified in the shopping center literature, namely assortment, quality, pricing, and styling or fashion (Frasquet & Molla, 2001, Wong, et al., 2001, Bell, 1999; Finn & Louviere, 1996; Ahn & Ghosh, 1989; Weisbrod, et al., 1984). A product is related to quality, selection, style and price of the products. In a retail outlet, such as shopping malls, that would relate to the tenant mix, which is described as the allocation of stores within a retail complex – in terms of space, price points, and mutual relationships in a way which leads to achieve benefits for the mall`s management (ensure maximum return on the initial investment) , the tenants (benefit equally with the mall management in obtaining optimal traffic, crossshopping, prolonged visits, as well as increased productivity) , and consumers (the variety and appeal, whilst also satisfying their demands) (Snyders and Cloete, 2010, Kim, et.al., 2012). Shopping malls that offer larger variety in product categories make it easier to minimize time and effor