Influence of culture, price perception and mall promotions on Indian consumers’ commitment towards malls

Abstract

PurposeThe exponential growth of organised retail has led to competition among mall retailers with the use of promotions to increase traffic to the stores. The footfall in the malls is dependent on the sales generated by various retail stores located in the malls. The current research analyses the role of promotions used by the retailers located in Indian malls in improving consumers’ commitment towards the mall. The purpose of this paper is to examine the influence of culture, personality traits like value consciousness, price consciousness and coupon proneness, and promotions used by retailers in malls on consumers’ commitment towards the malls.Design/methodology/approachEight malls from six cities were selected by popularity and footfall. Mall-intercept technique along with systematic sampling was used to collect data from 453 mall shoppers using a self-administered questionnaire. Structural equation modelling was used to analyse the data.FindingsRetailer promotions were categorised under discounts, promotional offers and loyalty cards. The findings suggest that cultural values of long-term orientation and masculinity have an impact on consumers’ perceptions towards discounts, promotional offers and loyalty programmes. Different promotional strategies had varied responses from consumers.Practical implicationsMall retailers can use the findings to design promotions according to the cultural values of masculinity and long-term orientation. Loyalty programmes can symbolise status and long-term relationship with retailer. Commitment towards retailers and consequently malls could be enhanced through discounts and promotional offers. Different promotional strategies can be used to target price-conscious consumers and increase footfall in the stores. The linkages between cultural dimensions and promotional techniques would be helpful in targeting different consumer groups by designing promotions which are in line with cultural values.Originality/valueThe research extends the existing literature on mall retailing by analysing the importance of cultural dimensions on sales promotions strategies used by retailers in malls. The study establishes that perceptions towards retailer promotions differ across cultures. Different promotions offered by retailers generate varied response from consumers across different cultures which would influence their commitment towards malls.