Nichools Et Al

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An executive summary for

managers and executive US-Chilean mirrors: shoppers in


readers can be found at the
end of this article two countries
J.A.F. Nicholls
Chair, Marketing & Business Environment, and Professor of
Marketing, Florida International University, Miami, Florida, USA
Fuan Li
Assistant Professor of Marketing, Mercyhurst College, Erie,
Pennsylvania, USA
Tomislav Mandokovic
Professor of Decision Sciences, Florida International University,
Miami, Florida, USA and Dean, College of Business Administration,
Universidad Diego Portales, Santiago, Chile
Sydney Roslow
Professor Emeritus of Marketing, Florida International University,
Miami, Florida, USA
Carl J. Kranendonk
Lecturer in Marketing, Florida International University, Miami,
Florida, USA

Keywords Consumer behaviour, Malls, Consumer marketing, Chile, USA, Shopping


Abstract Compares the shopping behavior of Chilean consumers with those in the USA.
Chilean mall visits were driven, first and foremost, by purchase; in contrast, consumers in
the USA visited their mall for more diverse reasons, largely revolving around
entertainment. In addition to shopping motives, our data revealed noticeable differences
between the two populations in their way of selecting the mall, their shopping
characteristics, and purchase patterns. In the final analysis, however, when the shoppers
in Chile and the USA left their respective malls, at least four-fifths of each group had
made some kind of purchase, whatever their initial shopping motivation.

Introduction
NAFTA Since 1992, the US government has been considering extending the North
American Free Trade Association (NAFTA) to South America. Official
negotiations with Chile began in 1994; its accession to the NAFTA would be
viewed as the first step toward a hemisphere-wide free trade zone by 2005
(Anderson and Smith, 1997). Although proceeding slowly (Maggs, 1997),
the US's efforts have encouraged marketers in both the USA and Chile to
move toward regional economic cooperation, thus facilitating trade relations
(Borrus, 1996). For example, Chilean exports to NAFTA nations grew 66.3
percent between 1990 and 1995, and imports in that period tripled (Hall,
1997). By 1998, US-Chilean trade exceeded $6.4 billion (US Department of
Commerce, 1999). The rapid growth in trade and the great potential for
investment in South American countries make it imperative for US
marketers to learn more about Latin American markets and their consumers.
As part of this effort of concentrating on the large and growing South
American market, we have conducted an empirical study focusing on an
appreciation of the differences and similarities between US and Chilean mall
shoppers. A more rigorous understanding of Latin American consumers will
provide practical guidance for American marketers.
The rest of the paper is structured around four sections. The first constitutes a
framework for discussing the mall shopping experience in Chile and the

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106 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000, pp. 106-119, # MCB UNIVERSITY PRESS, 0736-3761
USA; then, the methodology used in our study is described; the results are
reported in the third section. In the last section, we offer a discussion of the
findings and future research directions.

Framework
Shopping behaviors Consumers' shopping behaviors have been documented extensively.
Previous studies demonstrate that shoppers may differ significantly, among
other distinctive features, in their motivations for shopping, mall selection
criteria, buying patterns, purchase decision making. We learned that
shopping may have significantly different meanings among consumers. For
instance, some consumers view shopping as a purely utilitarian function,
while others expect hedonistic values from it (Babin et al., 1994; Batra and
Ahtola, 1991; Baumann et al., 1981). In other words, shopping may involve
both instrumental and experiential outcomes (Crowley et al., 1992). The
hedonic experience may raise the level of consumer involvement and arousal
in the shopping experience (Hirschman, 1983). Such hedonic value can occur
when consumers have enjoyment and fun during their shopping tour or in
making their purchases (Holbrook and Corfman, 1985). For example, the
very idea of getting a bargain is a stimulus to many consumers (Schindler,
1989). Thus, shoppers may derive pleasure from the act of purchase, rather
than from the product purchased (Rook, 1987).
In contrast with hedonistic shoppers, utilitarian shoppers are very focused.
They regard shopping as the equivalent of work, a means to serve their
functional needs. That is, instrumental and utilitarian values are considered
the only elements that concern a shopper (Sherry, 1990; Rao and Monroe,
1989).
Shopping experience There are, of course, other ways of looking at a shopping experience. Almost
30 years ago, when Tauber (1972) explored the reasons consumers had for
shopping, he suggested these fell into two broad categories: personal and
social. For example, he found that one motivation for shopping was
diversion: getting away from the routine of everyday life. Diversion, a form
of recreation, could be extended into self-gratification by spending money on
oneself. Thus, the buying process can have a certain internal utility, separate
from the actual purchase. For some, the physical activity associated with
shopping is desirable, ipso facto, so much so that many malls open their
doors early, before the retail outlets themselves, so that people can take their
constitutionals. On the social side, Tauber (1972) identified the fact that
shopping incorporates a social experience outside the home, enabling
shoppers to meet with peers and to communicate with others who have
similar interests. In short, malls are places where people gather who have a
``common bond of interest, activity, and participation'' (Roslow et al., 1993).
Other people have a decided role in consumers' purchase behavior and
consumers are susceptible to those influences (Bearden et al., 1989). This
observation is borne out by Nicholls et al. (1994), who found mall patrons
tended to buy more products and spend more money when accompanied by
other people. In recognizing that shopping is a social activity, malls appeal to
these customer motivations so that they can increase their clientele (Bloch
et al., 1994).
Purchases made during shopping trips can be either planned or unplanned
(Engel et al., 1995). Many consumers are used to preparing a mental or
written list before going shopping. Consequently, purchases made this way
are planned. In contrast, other consumers make intentional use of product
displays in retail stores as a shopping list (Kollat and Wilett, 1967). In

JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 107


addition, some shoppers are impulse buyers whose purchase decision is
primarily based on hedonic or experiential concerns (Holbrook and
Hirschman, 1982). Purchases made by these consumers are viewed as
unplanned.
Situational factors can play an important role in shaping and changing
shopping behavior. For example, the pressure of time, commonly
experienced by consumers in the USA, can significantly alter shopping
behaviors (Nicholls et al., 1997). It has been demonstrated that shortage of
time affects consumers' in-store shopping decisions, reducing both planned
and unplanned purchases (Iyer, 1989; Park et al., 1989). In general, however,
customers who had planned their purchases before shopping have been found
to buy more than those who had not (Dawson, et al., 1990).
Shopping environment Consumers' familiarity with the shopping environment is also important.
Frequent customers, who know a store's layout, make fewer unplanned
purchases compared with those who are unfamiliar with the layout (Iyer,
1989; Park et al., 1989). However, if a store's layout is altered, then repeat
customers' shopping behaviors change (Laaksonen, 1993). Furthermore,
Simonson and Winer (1992) have argued that purchase behavior can also be
modified by the way in which inventory is arranged. Kumar and Leone
(1988) maintain that point of purchase displays can be very useful in
stimulating sales. The color of the background when setting off a product can
also affect customers: blue calms; red causes tension (Bellizzi and Hite,
1992). In addition to visual influences on purchase behavior, auditory
stimuli, such as music, influence consumer behavior as well (Alpert and
Alpert, 1990). Previous research indicates auditory and visual sensations, e.g.
music and deÂcor, can affect patrons' moods, and these, in turn, impact
purchase behavior (Bruner, 1990). In general, contented consumers tend to
buy more than unhappy ones (Curren and Harich, 1994; Knowles et al.,
1993). Since music, color, and store layout are simply aspects of
atmospherics, designing the tangible and intangible elements in the shopping
environment to elicit specific effects should be a major concern of marketers
(Herrington, 1991).
Given the brief review of previous findings in research on shopping
behavior, this study of shoppers in Chile and the USA will center on issues
concerning shopping motivation, shopping behavior patterns, circumstances
surrounding purchase experience, and purchase behavior. Our emphasis is on
discovering similarities and differences between consumers' shopping
behavior in the two countries.

Methodology
Data collection A mall intercept approach was adopted in the data collection (Sudman, 1980)
with the two surveys conducted in selected metropolitan areas in each
country. The Chilean mall was located in suburban Santiago and attracted
middle to upper income shoppers; the mall in the USA was located in an
upper income enclave in Miami-Dade county, Florida, which also attracted a
middle to upper income clientele. Both of the malls were comprehensive
shopping centers: the one in Chile featured about 120 boutiques and four
anchor stores; the mall in the USA profiled four anchor stores and over 200
specialty shops.
Patrons were interviewed as they left the malls. A randomized selection
procedure was adopted whereby interviewers went consecutively from door
to door, intercepting the next shopper as he or she exited the mall (Sudman,
1980). Interviewers approached shoppers based on their exit pattern, not on

108 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000


any personal demographic characteristic. The interviewers in Chile were
Chilean nationals, those in the USA were bilingual American residents.
Altogether, 500 mall patrons in Chile and 446 mall visitors in the USA
participated in this study.
Chilean shoppers In general, Chilean shoppers tended to be younger than their counterparts in
the USA. As shown in Table I, a greater proportion of the mall patrons in
Chile (65.8 percent) were less than 35 years of age, compared with those in
the USA (48.4 percent, p < 0.001). A higher proportion of Chileans had a
college education relative to respondents in the USA (53.2 percent vs. 39.9
percent, p < 0.001). The gender distribution of the two shopping populations,
however, was very similar, with women comprising 57.4 percent of the
patrons in Chile and 57.8 percent in the USA. Although differences existed
in demographic characteristics, they were not found to affect the
respondents' shopping behavior.
In addition to these general questions concerning demographic attributes,
four specific scales were also included in the survey instrument. The first
scale concerned patrons' motivations for shopping, covering such
considerations as looking and browsing, making a specific purchase, eating
at the mall, and shopping at a specific store. A second scale elucidated
reasons for selecting the particular mall, including mall/store atmosphere,
easy parking, mall location, merchandise assortment, the department stores,
the specialty stores, and price/value considerations. The third scale covered
situational factors, such as the time of day of the visit and the length of stay
in the mall. The fourth scale focused on purchase behavior, encompassing
the purchase of particular products. Finally, after the data were collected,
respondents' purchases were classified as planned or unplanned, based on the
reported motives for their mall visits and the actual purchases they made
during that time.

Results
Motivation for mall visit
Mall visits The reported reasons for mall visits were significantly different for the
patrons in Chile and the USA (Table II). Large proportions of the shoppers in
the USA (45.3 percent) indicated that they came to look and browse, while
only 25.8 percent of the shoppers in Chile reported this reason (p < 0.001). In
this regard, almost half the mall patrons in the USA might be looked upon as
``window shoppers'', compared to one-in-four in Chile. In contrast, half of
the shoppers in Chile reported that they came to make a specific purchase,
compared to just a third in the USA (p < 0.001). If we consider a ``purchase-
driven'' category of shopper (combining ``to make a specific purchase'' and
``to eat'' as the main reason for the mall visit), then 64.6 percent of the

Chile (n = 500) USA (n = 446)


Demographics # % # % w2 Sig.
Age < 35 years 329 65.8 216 48.4 29.123 0.000
 35 years 171 34.2 230 51.6
Education  High school 234 46.8 268 60.1 16.716 0.000
 College 266 53.2 178 39.9
Gender Male 213 42.6 188 42.2 0.019 0.895
Female 287 57.4 258 57.8

Table I. Demographics of mall respondents in Chile and the USA

JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 109


Chile (n = 500) USA (n = 446)
Motives # % # % w2 P-value
Look and browse 129 25.8 202 45.3 39.372 0.000
Make a specific purchase 259 51.8 149 33.4 55.652 0.000
Eat 64 12.8 30 6.7 9.717 0.003
Miscellaneousa 48 9.6 65 14.6 5.545 0.019
a
Note: Includes appointment, working in the mall, or tour destination

Table II. Motivation for mall visit in Chile and the USA

Chilean shoppers fell into this category, contrasted with 40.1 percent in the
USA (p < 0.001). Interestingly enough, almost the same proportions of
shoppers in Chile and the USA came for the combined reasons of looking
and browsing or making a specific purchase, 77.6 percent and 78.7 percent,
respectively. Thus, the malls in both countries are catering for the main
purchasing needs of their consumers, whether window shopping or actual
purchase.

Reasons for shopping at the mall


Reasons for shopping The reasons consumers had for shopping dovetailed with the criteria patrons
used in selecting the particular mall. However, the reasons reported by
Chilean shoppers contrasted markedly with those of shoppers in the USA
(Table III). More American shoppers (47.1 percent) said atmosphere was a
major motivator, compared with only 13.2 percent in Chile, p < 0.001.
Likewise, larger proportions of patrons in the USA came because of the
department stores (47.1 percent versus Chile's 13.2 percent, p < 0.001), the
mall location (44.6 percent versus 13.0 percent, p < 0.001), and specialty
stores (26.9 percent versus 15.4 percent, p < 0.001). However, greater
proportions of Chile's shoppers (12.0 percent versus the USA's 5.2 percent,
p < 0.001) came for the easy parking and merchandise assortment (26.4
percent versus 20.2 percent, p < 0.05). Interestingly, no differences were
found between the two countries in terms of how they rated the price/value
of products as a selection criterion (8.8 percent for Chile and 8.5 percent for
the USA). This null finding indicates that neither of the two countries'
shoppers are more value conscious than the other. This may reflect some
commonality in the socio-economic status of the respondents in Chile and
the USA.

Chile (n = 500) USA (n = 446)


Reasons # % # % w2 Sig.
Atmosphere 66 13.2 210 47.1 130.988 0.000
Department stores 69 13.8 210 47.1 125.594 0.000
Easy parking 60 12.0 23 5.2 13.791 0.000
Location 65 13.0 199 44.6 117.138 0.000
Merchandise 132 26.4 90 20.2 5.079 0.026
Price/value 44 8.8 38 8.5 0.023 0.486
Specialty stores 77 15.4 120 26.9 18.927 0.000
Note: Multiple responses allowed, so percentages may not add up to 100.0 percent.

Table III. Reasons for shopping at the mall in Chile and the USA

110 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000


Shopping characteristics
Our examination of the shopping characteristics of consumers in Chile and
the USA included the time they took to travel to the mall, the time of day
shopped, the time spent in the mall, the number of stores visited during their
trip, and frequency of visit. Our data revealed differences in some important
aspects of these shopping characteristics.
Transportation Transportation mode to the mall. Shoppers in Chile and the USA were very
similar in the transportation mode they used to reach their respective malls
(Table IV). Overwhelmingly, both populations adopted cars or trucks as their
preferred method, 81.8 percent in Chile, 79.6 percent in the USA. The
remaining 20 percent of the mall patrons was distributed among buses, taxis,
motor cycles, and pedestrian traffic.
One major discrepancy: consumers reported rather different travel times to
reach their malls (Table V). In the case of Chile, 85.6 percent of the mall
patrons spent less than half an hour travel time; in the case of the US, only
59.0 percent spent less than 30 minutes to get to their mall (p < 0.001). The
reasons for this difference are not clear. Perhaps the traffic conditions played
a role; maybe the infrastructures in the selected cities were responsible for
the difference; or it may be a cultural factor that consumers in the USA are
simply more willing to spend time on the road, traveling a greater distance to
reach the destination of their choice.
Shopping times Time of day shopped. The times that consumers in Chile and the USA
shopped were reversed (Table VI). The majority of mall patrons in Chile
(68.0 percent) reported they usually visited the mall after 3:00pm, while
those from the USA (51.8 percent) favored the earlier part of the day, before
3:00pm (p < 0.001).

Chile (n = 500) USA (n = 446)


Modes # % # % w2 Sig.
Car/truck 409 81.8 355 79.6
Bus 54 10.8 59 13.2
Taxi 9 1.8 11 2.5 4.931 0.424
Motorcycle 11 2.2 8 1.8
Walked 17 3.4 11 2.5
Other/no response 0 0.0 2 0.4

Table IV. Transportation modes to the mall in Chile and the USA

Chile (n = 500) USA (n = 446)


Travel time # % # % w2 Sig.
Less than half an hour 428 85.6 263 59.0
Half an hour up to an hour 53 10.6 141 31.6 91.000 0.000
Hour or more 19 3.8 30 6.7
No response 0 0.0 12 2.7

Table V. Travel time to the mall in Chile and the USA

Chile (n = 500) USA (n = 446)


Time of day # % # % w2 Sig.
Earlier shopper (up to 3:00pm) 160 32.0 231 51.8
Later shopper (3:00pm-9:00pm) 340 68.0 193 43.3 72.589 0.000
Not reported 0 0.0 22 4.9

Table VI. Time of day shopped in Chile and the USA

JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 111


Time spent in the mall. Time spent in the mall was significantly different
(p < 0.001) for the two populations. As shown in Table VII, more of the
patrons in Chile (26.4 percent) tended to be quick shoppers, spending less
than half an hour in the mall, than those in the USA (14.1 percent); more of
the shoppers in the USA (15.9 percent versus none in Chile) tended to be
leisurely, spending three hours or more on average in the shopping center
(p < 0.001).
Number of stores visited Number of stores visited and shopping companions. There were significant
differences between the countries in the number of stores mall patrons
visited (Table VIII). On average, shoppers in the USA tended to visit more
stores than those in Chile (x = 4.35 versus 3.78, respectively, p < 0.05).
However, no differences were found in the number of people the shoppers
came with during their mall expedition. Chileans came to their mall with an
average of 1.04 companions each; mall patrons in the USA with 1.11; this
result was not statistically significant.
Frequency Frequency of mall visit. The bulk of the patrons in the two malls (95.6
percent in Chile and 89.2 percent in the USA) were repeat visitors (Table
IX). The obverse side of this coin was that more than twice as many were
first time visitors to the mall in the USA (10.8 percent), compared with the
number in Chile (4.4 percent, p < 0.001). A difference was also found in the
frequency with which shoppers visited the mall (Table X). More of the
Chileans shoppers (38.8 percent) reported that they visited the mall at least
once a week, while just 32.2 percent of US shoppers said they visited the
mall that frequently (p < 0.05). Although this finding is statistically
significant, it should be viewed with caution, since the difference is only six
and a half percentage points.

Chile (n = 500) USA (n = 446)


Time of day # % # % w2 Sig.
< half an hour 132 26.4 63 14.1
Half an hour up to 1 hour 53 10.6 62 13.9
1 hour up to 11/2 hours 119 23.8 118 26.5
1 1/2 hours up to 2 hours 33 6.6 32 7.2 149.470 0.000
2 hours up to 21/2 hours 76 15.2 80 17.9
2 1/2 hours up to 3 hours 87 17.4 15 3.4
3 hours or more 0 0.0 71 15.9
Not reported 0 0.0 5 1.1

Table VII. Time spent in the mall in Chile and the USA

Mean
Circumstance Chile USA F P-value
Stores visited 3.78 4.35 5.791 0.016
Companions 1.04 1.11 0.224 0.636

Table VIII. Store visited and shopping companions in Chile and the USA

Chile (n = 500) USA (n = 446)


Status # % # % w2 Sig.
First time visitors 22 4.4 48 10.8 13.926 0.000
Repeat visitors 478 95.6 398 89.2

Table IX. First time visitors to the mall in Chile and the USA

112 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000


Purchasing behavior
Purchasing Purchase was considered from three major perspectives: purchase of food or
beverage, purchase of other products, and purchase in either of these
categories. In all three instances measured, there were significant differences
in the purchase patterns of shoppers in the two countries (Table XI). In
general, Chilean shoppers tend to make a purchase during the shopping trip
more than their US counterparts. A greater proportion, 66.6 percent, of
Chilean shoppers reported having purchased food or beverage, a higher
proportion than those in the USA (58.5 percent, p < 0.01). Further, more
Chilean shoppers purchased other (non-food) products (80.6 percent),
compared to only 58.1 percent in the USA (p < 0.001). Taken together, 92.8
percent of the Chilean shoppers made some purchase, compared with 82.1
percent in the USA (p < 0.001).
More importantly, shoppers in Chile and the USA were rather different in
Planned and unplanned
whether their purchases were planned or unplanned. As shown in Table XII,
purchases
fewer Chileans (33.2 percent) made unplanned purchases compared with the
shoppers in the USA (48.7 percent, p < 0.001). This indicates that the
Chilean shoppers tend to plan their purchases beforehand, differing from
their US counterparts, who rely on instore decision making. However, the
purchase pattern varies across product categories. Based on the data
reported, a greater proportion of the shoppers in the Chilean mall made
unplanned purchases of food or beverage than did those in the USA (58.6
percent vs. 52.2 percent, p < 0.05, as shown in Table XIII). Taken together,
the findings suggest that US shoppers tend to make their purchase decisions
in the mall for products other than food or beverage, while Chileans were
more inclined to plan their purchasing, except for in-mall consumption of
food or beverage.

Chile (n = 500) USA (n = 446)


Frequency # % # % w2 Sig.
Frequent (once a week or more) 194 38.8 144 32.3 4.355 0.041
Infrequent (less than once a week) 306 61.2 302 67.7

Table X. Frequency of mall visit in Chile and the USA

Chile (n = 500) USA (n = 446)


Purchase behavior # % # % w2 Sig.
Yes, purchased food or beverage 333 66.6 261 58.5 6.587 0.011
Yes, purchased other products 403 80.6 259 58.1 56.947 0.000
Yes, purchased food/beverage or 464 92.8 366 82.1 25.261 0.000
other products

Table XI. Food or non-food purchases in Chile and the USA

Chile (n = 500) USA (n = 446)


Total purchase # % # % w2 Sig.
No purchase at all 36 7.2 80 17.9
Unplanned purchase 166 33.2 217 48.7 70.294 0.000
Planned purchase 298 59.6 149 33.4

Table XII. Purchase pattern for food or other products in Chile and the USA

JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 113


Chile (n = 500) USA (n = 446)
Food or beverage purchase # % # % w2 Sig.
Did not eat or drink 167 33.4 185 41.5
Unplanned purchase 293 58.6 233 52.2 6.822 0.033
Planned purchase 40 8.0 28 6.3

Table XIII. Purchase pattern for food or beverage in Chile and the USA

Discussion
Differences In summary, we found marked differences between Chilean and US mall
shoppers in our study. Perhaps the most pronounced were the differences in
the shopping motives and behavior patterns of the consumers in the two
countries. A majority of the shoppers in Chile came to the mall with a plan to
buy, while almost half of the patrons in the USA came to the mall to look and
browse.
Apparently, the shopping experience in Chile focused on purchase, with
nine-out-of-ten Chileans concluding their mall visits with a purchase,
evidencing a relatively small interest in concomitant mall attributes. In
contrast, shoppers in the USA appeared much less focused on purchase, per
se, and more interested in other factors associated with the mall. However,
despite this surface difference, eight-in-ten USA shoppers had concluded a
purchase by the time they left the mall. Thus, the essential difference
between shoppers in Chile and the USA seems to be that the Chilean patrons
are more utilitarian, considering shopping as work that provides only
functional values. In contrast, the mall visitors in the USA seem to be more
like pleasure seekers, to whom the shopping experience is at least as
important as, if not more so than, the outcomes of the shopping trip. It is not
uninteresting to note, however, that, although hedonic values are a major
motivator for shoppers in the USA, a significant amount of purchase still
takes place in the mall. Whether this purchase reflects self-gratification or
the intrusion of a utilitarian element is not clear.
Motivations Another interesting finding is that shoppers' motivations in Chile were rather
evenly divided among the different categories; in contrast, shoppers in the
USA tended to have multiple motivations, identifying a wide variety of such
needs. As a consequence, shoppers in Chile tended to be more singular in
their purposes and motivations; those in the USA more widely spread in
these dimensions.
Findings relating to the mall selection criteria and shopping characteristics
are consistent with shopping motives and purchase patterns. We have
observed that three times as many shoppers in the USA than in Chile
reported that atmosphere and department stores were major reasons why they
came to the particular mall. This is consistent with the motives respondents
reported. For instance, a larger proportion of respondents in the USA initially
came to look and browse compared to Chile. It would not be surprising if
these shoppers considered available department stores and pleasant
atmosphere in the mall to be important. However, the finding does not
explain the US shoppers' extensive pattern of purchase on conclusion of their
mall visit. Perhaps the sheer variety of products available in the US mall and
the shoppers' response to the atmosphere were conducive to unintended
purchase.
Moreover, differences in characteristics of mall visits also support previous
findings. For example, it is understandable that the USA shoppers were
found to spend more time in the mall than the Chileans, given that their

114 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000


shopping was less utilitarian, and more unplanned purchases were made
during the trip. The findings may also suggest different information
acquisition patterns. Mall patrons in the USA seemed to rely more on in-
house information search, while Chileans seemed to rely on a search prior to
their mall visit. In other words, this finding suggests that US mall patrons
consider shopping as part of their information search, so that they absorb
information constantly, in contrast with the shoppers in Chile.
Implications Our findings have important implications for marketers in the USA,
especially for those who are marketing in Chile or who plan to enter the
Chilean market. Given that Chilean consumers are more utilitarian and less
hedonic than consumers in the USA, marketers should rely more on rational
appeals in their marketing communication in Chile. Further, because Chilean
consumers are more likely to have a purchase plan before their mall visit,
making information available ahead of their mall visit becomes crucial. In
contrast, the opposite is true of US shoppers; shoppers in the USA seemed to
rely more on spur-of-the-moment decisions, as exemplified by the fact that
almost half the patrons in the USA made unplanned purchases. In these
circumstances, it is hardly surprising that the mall patrons in the USA were
open to merchants' influence and persuasion in the mall. The in-mall sales
efforts and point-of-purchase displays must have accounted for the apparent
shift in US respondents' purchase behavior. As evidenced in our study, US
shoppers stayed longer and consequently it was more likely for them to be
exposed to merchants' persuasion. Since more Chileans were in and out of
the mall in less than half an hour, there is less time available for mall
retailers to influence their customers' purchase behavior. Thus, marketers
should not fully count on in-mall persuasion when they are dealing with
Chilean customers. For retailers, focus should be placed on attracting
shoppers to the mall rather than trying to affect their in-mall decision
making.
Limitation A major limitation of the current study lies in the selection of the malls
where the interviews were conducted. The choice of two malls, both catering
to middle classes in each country, enhanced the level of control in our study.
It was also justified, given that marketers in the USA tend to target upmarket
when first considering entering a foreign market. However, the
generalizability is limited, owing to the selection of the malls solely targeting
upmarket. Obviously, future research should address this issue by
considering down markets as well.
Another concern relates to the method of data collection. Although the mall
intercept technique has been widely employed in marketing research,
reported findings need to be viewed with caution. Like all other data
collected this way, our data are open to the bias in respondents' selection.
Specifically, because habitual mall shoppers have a greater chance of being
included in the sample in using such a technique, our findings may reflect
more about the relatively frequent shoppers. Thus, in future research other
data collection methods should be considered.
Despite the limitations, this study has identified significant differences, as
well as some interesting commonality, between shoppers in Chile and the
USA. Although our study is mainly descriptive, the findings reported here
will undoubtedly help marketers understand their American customers better
by contrasting them with their Chilean counterparts. More importantly, the
findings should enhance our knowledge of consumers in Chile and the
Chilean markets as well. In view of the expected regional economic
cooperation and integration in the Western hemisphere, this research is of

JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 115


considerable significance. The differences and commonalities reported here
suggest that American marketers should adjust their marketing practice
accordingly in the Chilean market. Finally, our findings in this study may
also provide a basis on which relational research can be conducted in the
future.

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118 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000
JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 119
This summary has been Executive summary and implications for managers and
provided to allow managers executives
and executives a rapid
appreciation of the content Shopping for fun ± a foreign experience in Chile
of this article. Those with a The difference between consumption behaviour in different nations and
particular interest in the regions is an important area of study for marketers. As Nicholls et al.
topic covered may then read observe, there is a general move towards more open trade and a desire for
the article in toto to take globalization. If political prejudices ± especially from the extremes of left
advantage of the more and right ± do not prevent it, we can envisage that free trade will during the
comprehensive description present century encompass the whole of the American continents.
of the research undertaken Businesses, however, cannot afford to wait on politicians and must consider
and its results to get the full how they can expand their businesses internationally. In some sectors this
benefit of the material progress towards globalization is well advanced while for other industries
present the process of international expansion remains limited. In simple terms, it
has been those sectors with fewer cultural barriers that have succeeding in
expanding out of their home economy whereas those where individual
national cultures have a great influence over marketing strategies are slower
in their expansion.
Retailing is ± in most cases ± one of these culturally tied sectors. But this
cultural tie is not about the operations of retailing but about the attitudes
and behaviour of shoppers. After all a shop is much the same in any culture ±
it is the expectations and behaviours of the shop's customers that provide the
cultural variation.

Is shopping as a pastime a peculiarity of the USA?


Nicholls et al. show how Chilean shoppers are more utilitarian in their
behaviour than those in the USA. Fewer Chileans appear to choose an
afternoon at the mall as a fun activity. Instead these shoppers (or rather
more of them) focus on a specific purchase or purchases rather than on
window shopping.
In the USA, on the other hand, visitors to a mall are more likely to have no
specific purchase plans ± to see window shopping as a pleasurable activity.
Nicholls et al. do not ask the obvious question ± is this an element of
American culture or is this factor a function of being a wealthy nation.
Such a speculation is important since a significant group of Chilean
consumers display a similar penchant for window shopping. If people in a
wealthy society indulge more in window shopping then we can expect
consumers in Chile (and in other Latin American nations) to become more
like US consumers as the economy grows.
If, on the other hand, the desire to go window shopping isn't a function of
society's wealth then the ability for US retailers to export their business
depends on their capacity to change marketing strategies. Nicholls et al.
suggest that the promotional strategies in the current Chilean retail culture
need to concentrate on promoting the merchandise and purchase
opportunities at a shopping centre. This contrasts with the accepted
approach in the USA where malls are promoted as fun places to visit ± as an
entertainment venue rather than as a utilitarian shopping place.

International retail expansion ± a risky business


I've already observed that retailing has been relatively slow to
internationalise. Indeed, international retail expansion has proven, for some
businesses, an extremely risky enterprise. Much of the research in this area
concentrates on operational issues ± shop management, distribution,

118 JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000


pricing, etc. So it is welcome to see research that puts the risks in the context
of consumer attitudes and behaviour.
Retail expansion into a different culture ± such as that in Chile ± is not
simply a question of renting a shop, stocking that shop and opening the
doors. Nor is the advertising message easily transferred. An advertising
campaign that stresses image and lifestyle will work less well in a utilitarian
shopping culture ± the retailer needs to communicate that the products
required by the shopper are available in store.
Given this situation the international retailer has to adapt communications
and advertising strategies to reflect the cultural differences ± by changing
away from the American idea of shopping as a leisure activity. The risk
involved here lies in the fact that the indigenous retailers are more attuned to
the expectations of the local culture than the international retailer. The days
of standardized advertising designed in New York or Chicago and simply
translated for Spanish-speaking markets does not work.

Will retail culture in Latin America change?


I have speculated that the increase in wealth, education and income in Latin
America may lead to a change in attitudes to shopping and to the shopping
mall. There are already a group of consumers that see shopping as a leisure
activity and I would expect this group to increase in numbers becoming more
significant and possibly dominant.
What matters to the retailer considering entering a Latin American market
such as Chile is the speed of this change and whether the existing group of
speculative shoppers is big enough to provide the basis for an effective
business. There will always be a group of consumers (even in the USA) who
do not enjoy shopping and prefer to go and buy what they want rather than
to browse. But the group that drives successful retailers in the USA ± and
especially those in shopping malls ± is the impulse shopper.
So long as retailers acknowledge the limited numbers of ``shopping as fun''
consumers in Latin America, there is no reason why a success cannot be
made of exporting US-style retail management and marketing to these
nations. And in time such retail concepts will become more powerful as the
attraction of the shopping mall as an entertainment venue begins to take
hold.
(A preÂcis of the article ``US-Chilean mirrors: shoppers in two countries''.
Supplied by Marketing Consultants for MCB University Press.)

JOURNAL OF CONSUMER MARKETING, VOL. 17 NO. 2 2000 119

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