GIBS and Primedia Unlimited Mall Division uncover shopping mall gold

Posted on August 01, 2014

The University of Pretoria’s Gordon Institute of Business Science (GIBS) and Primedia Unlimited’s Mall Division have joined forces to conduct a shopping mall survey to ascertain shopper behaviour and how it is impacted by advertising.

The research, which was undertaken by GIBS senior lecturer and lead researcher, Kerry Chipp, with financial backing from Primedia Unlimited, takes into account, investigates and uncovers issues such as the major mall draw cards, where the money goes, what drives people to shop and how advertising actually influences them. Individual malls were examined by catchment area, tenants and brands, what they are used for, social media usage and size and how these factors affect consumers.

Chipp elaborates: “The GIBS Primedia Unlimited Retail Shoppertunities study makes a valuable contribution to our knowledge of South African mall shoppers. Where so many studies focus only on surveying shopper intentions, this study sheds light on how intentions translate into behaviour.

“The results highlight the need for marketers to align their offerings according to shopper segments, to capitalise on in-mall marketing opportunities and to grow sales by reassuring customers that they are savvy shoppers. The researchers have identified a myriad of insights that will enable product brand owners, retailers and property owners to grow revenues and meet shopper needs.”

CEO of Primedia Unlimited’s Mall Division, Molefi Moloantoa adds: “The study surveyed 4 200 shoppers over a two- week period. They were selected and interviewed randomly across major shopping centres in Gauteng, Western Cape and KwaZulu-Natal. Intercept interviews were conducted across multiple days, Monday to Sunday, and across various times of the day. Sample data was weighted to reflect the catchment area.

“We’re excited about the project as it proves the immense value in the mall node,” he says. “It shows that there is immense potential for brands wanting to speak to consumers at a critical phase of the purchase funnel, in the last retail mile. We have seen how interest and commitment to the mall space in SA has grown over the years, and our sponsorship of this survey gives credence to this interest.”

According to the research results, malls are rarely visited for a single purpose and browsing is the second biggest activity associated with spending. Interestingly, malls not only draw customers for socialising and leisure activities but also draw business executives who may not otherwise find time to visit a mall for socialising and then often make unplanned visits to retailers.

Shoppers vary in their requirements with the research identifying five key groups of shoppers based on the purpose of the visit: “Purposeful/Goal Directed”, “The General Shopper”, “Taking a break”, “Leisure Shoppers” and “Business Users”. 

The research also showed that mall advertising gets consumers to particular shops or brands where unplanned purchases take place. Advertising could take the form of washroom posters, digital directories, underground parking billboards, escalator branding, lift banners, video walls or hanging banners. For example, 62% of people reacted to hanging banners.

Once in the mall, nearly half (45%) of consumers are deal prone or value conscious and respond to promotions spontaneously when they see them. What is most interesting though is that the cumulative effect of advertising – that is the more advertising seen and events participated in – is strongly associated with greater spending and unplanned visits. The impact of advertising is associated with 36% of spending.

“What this means is that advertising builds on itself … [Businesses should] rather ‘own’ environments within the mall than spread [their] advertising efforts too thinly,” says Chipp. “The research proves that advertising works, not only that it works but that the South African consumer is deal prone and responds favourably to advertising and marketing activities in the last mile,” says Molefi. 

- Author GIBS news

Copyright © University of Pretoria 2024. All rights reserved.

FAQ's Email Us Virtual Campus Share Cookie Preferences