Nichools Et Al
Nichools Et Al
Nichools Et Al
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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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
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
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
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.
Table III. Reasons for shopping at the mall in Chile and the USA
Table IV. Transportation modes to the mall in Chile and the USA
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
Table IX. First time visitors to the mall in Chile and the USA
Table XII. Purchase pattern for food or other products in Chile and the USA
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
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