Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

CHAPTER 2

REVIEW OF RELATED LITERATURE

This chapter concentrated on the review of local and foreign literature from selected from
selected articles that aimed to support the findings, analysis and conclusions derived from this
study. It also in order to develop a thorough understanding and deeper insight into the previous
works that are relevant to the subject, as well as to reach the specific goals of the study.

2.1 Local Literature

A supermall can be said to be a privately owned public space. It is designed and

constructed to profit financially the investors concerned while at the same time it serves as a
recreational and shopping destination for the public.

The mall is a collection of independent retail stores, services, and a parking area, which is
conceived, constructed and maintained by a separate management firm as a unit. They may also
contain restaurant, bank, theatres, professional offices, services stations,etc.

SM Supermall

SM Supermall was founded as a shoe store by Henry Sy, Sr., in October 1958 in
downtown Manila. Mr. Sy, who is known as the visionary of Philippine retail because of his
innovations in the industry, thought of establishing a chain of shoe stores with a store layout and
merchandising concepts never before tried in the Philippines. The success of the shoe store led to
its expansion as a full line store, and the first SM Department Store opened in downtown Manila
in 1972. With its exciting merchandise mix, world class interiors, one stop shopping
convenience, and service, SM has become part of the lives of many Filipinos. Today, it has 32
branches strategically located around Metro Manila and key cities around the country. Through
the opening of new stores, renovations of major stores, and the introduction of new
merchandising concepts, SM continues to make shopping at its department store chain an
exciting lifestyle experience. As SM celebrates its 50th Anniversary as a retailer, it approaches
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

this milestone with a new vitality and energy to serve a new generation of shoppers, as well as
the many customers that have made it part of their lives.

Grande Mall

The first Grande Mall in the Philippines is the Gaisano Grand Mall. Gaisano Inc. is a
chain of malls owned by one of the most prominent families in Cebu. It started as a small shop
with a restaurant in Colon St., Cebu City. It was founded by the family matriarch, Doña Modesta
Gaisano in the ’70s. Gaisano malls are managed by several groups namely Gaisano Grand
Group, Gaisano Capital Group, Gaisano Brothers Merchandising, Gaisano City Mall, JS Gaisano
(Gaisano Jr.), and Gaisano Market (formerly Metro Gaisano). The Gaisano Grand malls here in
Cebu are Gaisano Grand Fiestamall Tabunok, Gaisano Grand Mall of Minglanilla, Gaisano
Grand Mall of Toledo, Gaisano Priceclub Carcar, and Gaisano Mall of Mactan. Its main office is
located at Fiesta Mall Tabunok, their biggest store. Latest additions to their fast-growing
branches are the Gaisano Capital Tisa, the Gaisano Capital SRP, the Gaisano Town Center in
Balamban, and the new Gaisano Capital South in Colon.Gaisano Grand malls are known for their
inexpensive products especially in their department stores and restaurants. Their supermarkets
are usually packed because their grocery items are cheaper than other stores.supermarkets. They
offer general merchandise, which include apparel, shoes, jewelry and fashion accessories, health
and beauty aids, pharmaceuticals, toys, pet food and accessories, stationery and books, hardware,
electronics, appliances, houseware, and home furnishings. They also have photo processing
centers, cellular phone shops, optical shops, as well as fast food chains and

First Mall in Talavera

Walter Mart Mall is the first mall in Talavera, Nueva Ecija. It was opened on November
23, 2016. It is found directly in the Pan Philippine Highway, Brgy. La Torre, Nueva Ecija
(6960.15 mi). walter Mart Malls, then called Shopping Centers, is the first community shopping
center format in the southern Luzon. Our main customer proposition is "convenience".
Convenience is a broad but powerful proposition. It does not only talk about distance but in
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

bigger sense, it talks about comfort, completeness of offerings and reliability. In terms of
customer habit, Walter Mart has become the "third place", wherein, in the daily grind of a
customer's life, Walter Mart has essentially become the "reliable link" between their home and
their place of work. It is a place they are most likely to visit before they proceed to work, or
after, just before they go home. Thus, to put it in exact words, we are the "everyday mall" and
this is where our main differentiation lies: our customers come to us, as a community mall, on an
almost daily basis while perhaps they go to a regional mall on a maximum of 2 times a month.
As their daily mall, we make sure that we know their habits, preferences and choices and we
answer all these in terms of our merchant mix, tenant offerings and mall promotions. On top of
that, we also anticipate their ever changing lifestyle and its continuing sophistication by
constantly improving and upgrading our facilities, service levels and mall atmospherics. Talavera

2.2 FOREIGN LITERATURE

A new idea and concept of constructing a mall around the world at the same time
conserving energy and reducing any pollution that can effect to the surroundings and concern
prior to the environment. An eco-friendly park at the roof deck of a supermall is proposing all
over the market. It conserved less energy and attracts more customers because of the theme park
is develop. This new idea of theme park boost mall walked in consumer and investor. From Asia
to Europe to the United States, shopping centers are becoming more environmentally friendly.
Solar/LED lighting, energy efficient heating and cooling systems, waste reduction, and green
spaces are a few of the many initiatives taking place. And Singapore leads the world in many of
the most eco-friendly, shopping initiatives.

City Square Mall is the first mall in Singapore to have been built with eco-conscious
principles in mind, paving the way for other malls to follow suit. It saves on electricity by
allowing natural sunlight to pass through its glass roof, which optimizes day-lighting and uses
light-emitting diode (LED) lighting on its façade.
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

The crown jewel of the mall’s green plans is City Green, a 49,000-square-foot urban park
that’s integrated into the shopping complex. The park is outfitted with a green roof that harnesses
solar energy, collects rainwater and promotes cross-ventilation. A portion of the park bears
posters and signs that tell the mall’s green story: for example, how it recycles enough condensate
water from air-conditioning to fill two Olympic-sized swimming pools every year.

A few of the tenants have also taken up the eco-friendly gauntlet. A branch of NTUC Fair
Price in City Square Mall is the popular supermarket chain’s first green outlet on the island. It
uses biodegradable plastic bags, energy-efficient refrigerators and shoppers who bring reusable
bags can scoot past the queues to dedicated checkout counters.

2.3 REVIEW OF LITERATURE

Brunner and Mason (1968): investigated the importance of driving time upon the preferences of
consumers towards regional shopping centers. They expressed that although it is recognized that
population, purchasing power, population density, newspaper circulation, and other factors are
influential in determining the shopping habits of consumers, a factor which is generally
overlooked is the driving time required to reach the center. In this study, it was established that
the driving time required to reach a center is highly influential in determining consumer
shopping center preferences. The most consistent and significant driving time dimension in
delineating

Huff (1964 and 1966): concluded that the comparative size of the centers and the convenience of
access were the primary characteristics that consumers sought when choosing a shopping center
to visit.

Cox and Cooke (1970): determined customer preference for shopping centers and the importance
of driving time. The authors concluded that location and attractiveness are important
determinants of consumer shopping center preferences.

Jarboe and McDaniel (1987): established that different shopping activities of retail mall patrons
were linked with expressive and attitudinal differences. These were grouped into three data sets
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

viz. demographic variables- age, sex, income; behavioral variables number of stores shopped,
number of purchases made, frequency of visiting the mall; and psychographic and attitudinal
variables measure of characteristics- shopping assurance,friendliness, nervousness and cognitive
disagreement.

Doherty (1991): explored the significance of consumer survey called MART (Market,Audience,
Readership, and Traffic) of associated local market to decrease the expensive, customized
research. MART, focused on retail, could be used at various levels of shopping center
development such as developing center image and lease planning.

West (1992): conducted nonparametric tests of various propositions regarding shopping center
resemblance store brands related data in planned shopping centers in Edmonton and Calgary,
Alberta. The results gave proof of shopping center resemblance (in-store brands) across
geographic markets for certain store types, store brand propagation within shopping centers by
multi-chain firms operating stores catering to comparison shoppers, greater similarity between
malls in multi-chain firms dominated stores, and greater similarity (in store brands) of malls
owned by the same firm.

Bloch et al. (1994): explored the interrelationship of perception of consumers with malls. They
conducted an empirical study of consumer activity within multiple mall habitats and classified
shoppers as mall enthusiasts, traditionalists, grazers and minimalists in an attempt to identify
mall related shopping orientations.

Hackett and Foxall (1994): factor analyzed consumers' location specific shopping values using
different dimensions (different in the type and number of factors present) between the two types
of shopping location. In the high street four significant factors were discovered: service quality,
access and facilities, social aspects, choice and variety. However, in mall three significant factors
were revealed: store variety, comfort and convenience, ancillary convenience. The study
demonstrated that even when using similar research instruments in different locations, situational
factors may significantly affect consumers' responses.
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

Barnes (1998): used a non-experimental survey design and mall intercept methodology and
investigated that manufacturers' outlet shoppers were convinced of getting bargains and enjoying
the challenge of finding markdowns and special offers even within the discount venue; which
may ultimately draw the most desirable, upscale customers from the traditional malls.

Guy (1998): re-examined existing systems used in categorizing retail outlets and retailing areas;
conversed retail outlet classification based on types of merchandise sold and shopping trip;
evaluated present large store development; and subdivided area for retail uses into retail areas
(unplanned) and shopping centres (planned). The study also reviewed traditional classifications
based upon central place theory for both types, and found useful for retail development and
consumer behavior. Further, classification of urban retail location was also examined.

Shim and Eastlick (1998): examined the role of personal values in regional shopping mall
patronage using value-attitude-behavior model and found that the values of self-actualizing and
social affiliation could be used to position regional malls and shopper satisfaction. They also
suggested future studies to apply this model in comparative analysis of regional malls versus
other types of centers (i.e. centers anchored by mass merchandisers, power centers, city centers
etc.) and to test the relationships among ethnicity, ethnic identification, values, attitudes and
behavior in the context of other ethnic groups, products and other retail formats.

Wakefield and Baker (1998): identified two shoppers’ categories, out-of-town and local shoppers
via. a two-stage approach to causal modelling. The study examined the relationship between
three factors viz. tenant diversity, mall atmosphere and shopping participation on shoppers'
enthusiasm and wish to stay at mall; and found that three factors have a differential influence,
which influence re-patronage and out-shopping.
Csaba and Askegaard (1999): discussed the principles and growth of the American mall,
highlighted the designs of architect of the first mall, Victor Gruen. The study suggested that
ethnography of orchestration efforts where important for understanding the present shopping
situation.
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

Dennis et al. (2002): observed the increasing significance of branding for shopping centres.
When examined qualitatively, customers illustrated centres in terms of personality as dull,
uninteresting and traditional in-town centre; and fashionable, high status, sturdy, exciting, large
and vibrant large regional centre. During quantitative evaluation, 287 shoppers were surveyed in
six shopping centres in UK. The study revealed that the ‘sturdy and vibrant’ centre accomplished
considerably superior than the‘dry and boring’ centre.

Goldner and Portugal (2002): The authors compiled the models and parameters used in studies
of shopping centres in Brazil and Spain with reference to the generation of trips made to them
and modal choices, and provided general information on the classification and number of
shopping centres found in these particular countries. In this way, a comparative overview was
presented which provided the context for more detailed national and cross-cultural studies.
Leo and Philippe (2002): It is assumed that consumers' decision for choosing shopping place
depends on distance to the mall for which consumer's satisfaction (indicator for evaluating
quality of service) plays an important role in metropolitan areas. Different aspects (perception of
shopping, expected pricing, global environment) besides access conditions of commercial zone
combine in the consumer's mind causing satisfaction or dissatisfaction were independently
assessed by consumers. The city centre pedestrian streets and outer commercial malls were
evaluated by the consumers with the same criteria but they differ on the aspect of specific
consumer expectations towards the two kinds of commercial zone.

LeHew et al. (2002): investigated into the feasibility of customer loyalty towards an enclosed
mall. They supported the presence of loyal mall customers, and several malls attributes viz. mall
environment attributes, well-known stores, availability of lunch/refreshments, popular brand
names, mall cleanliness, walkway space in mall, mall restrooms, mall security, comfort areas,
mall lighting, mall decor, mall temperature influenced such mall loyalty (dependent variable).

Martin and Turley (2002): focused on the attitudes that the older segment of Generation Y
consumers (19-25) have toward a mall, and on the consumption motivation of these consumers
and found that Generation Y consumers were significantly more likely to be objectively rather
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

than socially motivated to consume. They also suggested that objective motivations to consume
predict an individual consumer’s perception of a shopping mall's ambience, layout, and their
involvement in the shopping process. Social motivations to consume predict perceptions of a
mall’s ambience, design, variety, and excitement, besides consumer's desire to stay and intent to
return to mall.

Juan (2004): examined the factors which influence the consumers’ attraction to shopping malls
and to predict the consumers’ behavior in choosing a shopping mall for their retail needs with the
purpose to construct a model of consumer attraction to malls, through distance and retail image.

Chadha (2005): explained some of the key long-term planned imperatives of setting up a
flourishing world class mall were getting the design and aesthetics right; defining a clear mall
positioning statement; building a sustainable anchor strategy; having a balanced tenant mix and
parking.

Dennis (2005): investigated four UK shopping centres empirically for three years. This study
combined importance, rating and distinctiveness of attributes of shopping centres; weighted
according to degree of association with shoppers' spending and suggested a way to recognize the
most significant characteristics of shopping centres. A shopping centre promotional tactics was
formulated based on differences between shopper groups. He found that people were attracted to
different centres for different reasons and different expectations. The attributes, which were
significantly different between centres, did not appear to be significantly influenced by income
or socio-economic group. Specifically, shoppers spend more at centres which more closely
match their requirements.

Sit and Merrilees (2005): made an attempt to present a research model aimed at understanding
shopper satisfaction and entertainment consumption by conducting an investigative study
concerning two separate focus group discussions. Self-satisfaction and alliance were appropriate
to young and middle-aged, the inspiration motive was pertinent to young, and the neighborhood
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

was mainly valid to middle-aged out of the four motives applicable to Special Event
Entertainment (SEE) consumption.

Smith and Hay (2005): developed a model of competition between shopping centers, after
evaluating competitive result of retail organization in three alternative forms viz. streets, malls
and supermarkets. For a fixed number of centers, converting streets to malls strengthen
developer competition, which increased product range and consumer surplus, reduced profits,
and had ambiguous effects on welfare; and converting streets to supermarkets increased retailer
and developer competition, had ambiguous effects on product range, reduced profits, and
increased social welfare. With free entry, both conversions reduced the number of centers and,
with excess entry, conversion to supermarkets (but not malls) increased welfare.

Anselmsson (2006): conducted on field studies in Sweden, found various factors significant to
customer satisfaction and developed and authenticated a conceptualization of mall satisfaction
The study further investigated the impact of demographic variables, age and gender and tried to
determine the relative impact of the entertainment on customer satisfaction and in attracting
segments and existence of differences related to income level and education.

Staeheli and Mitchell (2006): argued in the article that the regulation of the spaces of the mall
was intended to create ‘community’ rather than a ‘public’ as malls stand for civility and
community. In the process of creating community, the political potential of public space and the
quality of publicity created were contorted so as to muffle political opposition and critique in the
name of civility. This argument was illustrated through an examination of the Carousel Center
Mall in Syracuse, New York.

Adiwijaya (2007): examined the market segmentation based on shopping mall. Out of three
market segments, demander, rationale and satisfier revealed in the research, two segments,
rationale and satisfier were identified as potential target market. The shopping mall image was
derived from the customer perception toward various shopping mall attributes. Finally, the
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

marketing strategies based on shopping mall image were developed for potential target market
segments.

Kar and Sahoo (2007): discussed malls as the latest format in the organized retailing ensuring
uniformity to communicate a feeling of ‘oneness’ and that each store retains its personality. They
also discussed major issues pertaining to manage the malls efficiently and effectively.

Chebat et al. (2008): empirically analyzed differences between adult and teenage consumers in
evaluating a shopping mall. The study indicated that mall atmosphere positively affects
merchandise perceived quality for adults and teenagers. However, the impact of atmosphere on
self-congruity was only significant for teenagers.

Ertekin et al. (2008): showed that, while the shopping mall space ratio is higher than population
ratio in the intermediate zone, the reverse is true in the periphery. The results revealed that
income is the only factor affecting the location of shopping malls. According to the results, the
size of the catchment area of the shopping mall from the inner zone was larger than the
peripheral ones due to higher accessibility with alternative transportation systems and supporting
functions in its surrounding areas. The results fell within the concept of central place theory.

Kuruvilla and Ganguli (2008): tried to understand the analytical and financial steps taken before
setting up a mall, sources of finance, revenue and expenditure. For this purpose, interviews with
practicing retailers, mall managers were conducted and secondary data was analyzed. They
suggested that the right blend of good location, research on consumers, tenant mix, and the
catchment might contribute to malls to be successful in India. Further, the relationship between
mall management and tenants, customer services and time taken by the mall management in
taking any action for security purpose are necessary for the success of a mall.

Nicoleta and Cristian (2008): discussed the adaptation of the life cycle concept used for products
and stores and to provide a framework for defining the stages of shopping center life using
certain relevant attributes.
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

Singh and Bose (2008): revealed that Indian malls differ from U.S. malls in terms of financing,
location, size, expansion, architecture, stage of evolution, and choice of anchor tenant,
entertainment-mix, and mall management practices.

Yiu et al. (2008): explored relationship among shop size (space allocation), tenant type (tenant
placement) and locations of shop in a shopping mall. They empirically tested the hypotheses via
regression, with reference to high-rise shopping malls. The results showed that bigger shops and
tenants of non-impulse trades were found at upper floors.

Meyer-Ohle (July 2009): explored the factors underlying the rapid development of malls in Asia,
which reached saturation in the US and in Europe. These factors included the redevelopment of
city spaces, the emergence of strong shopping centre developers and especially the emergence of
powerful tenant chain operators, many of which handle multiple brands and have begun
operating store networks across Asia

Miller et al. (2009): referred to a study by the International Council of Shopping Centers (ICSC)
that found stability in mall shopping routine and buying behavior these days. Most the shoppers
purchase from malls and attracted to malls for various reasons, viz. to attend a special event or
movie or to dine at a restaurant. Time-pressed shoppers became more efficient, made few visits
to malls, spent more money per trip; but the basic mall demographic profile remained
unchanged. A typical mall shopper was female, 37 years old, lived in three-person household
with average household income. Development of new malls focused on lifestyle/ power centers,
and mixed-use complexes. Rajagopal (2009) studied the impact of overcrowding on shopping
ease and performance in malls located in urban areas, and cognitive characteristics of buyers
towards charisma of shopping malls and strength of shopping. As a result, mall management
started looking for others ways such as excitement to attract customers.

Singh (2009): discussed the problems faced by Indian malls and also suggested major changes to
be incorporated in the Indian mall business for the growth of shopping malls to be sustainable.
 Republic of the Philippines

PHINMA – Araullo University

Bitas, Cabanatuan City

COLLEGE OF INFORMATION TECHNOLOGY AND ENGINEERING

Mirel (2010): observed that people were attracted to different centres for different reasons as
shoppers have different expectations.

Zanual Bashar butto,Rambalak Yadav and Vikram sing(2012): Reference to the objective of
study the perception of consumer on the retail outlet comparative study of big bazaar and more
mega markets. Some dimension factors like facilities, responsiveness, courtesy, flexibility and
customer empathy. But there are some differences in some practices adopted by the retail outlets

Mehrabian and Russell (1974): noted that the response that store atmosphere elicits from
consumers, varies along three dimensions of pleasantness, arousal and dominance.

ULI the Urban Land Institute, Michael D. Beyard,Mary BethCorrigan,Anita Kramer,Michael

Pawlukiewicz, and Alexa Bach: In addition to having possible code problems, many building
systems are not sized adequately for current demands; serviceable but aging systems have been
known. To literally fall apart when worked on extensively. Water, gas, electrical, fire sprinkler,
Sewer, and smoke-control systems may not withstand extensive rework without overall
reconstruction. It is crucial to assess building systems and utility demands, and to work with
utility companies early many older malls predate current standards for hazardous materials, such
as asbestos. These materials can be difficult to discover before construction starts. Hazardous-
materials abatement is expensive and time-consuming. Unfortunately, if abatement is needed, it
is likely to take.

Sonia Longjam1, S. Aravindan: As traffic congestion reaches crisis proportions in many

locations, the vaunted convenience of mall shopping is disappearing. Most malls can be reached
by only one means — the automobile — and, in more and more metropolitan areas, this puts
them at a disadvantage in relation to locations that are walkable or linked to public transit, and
that offer more multidimensional urban environments. While it’s probably true that most
customers will always drive to the mall, their busy lives are reducing the time they are willing to
spend shopping.