Saturday, September 22, 2018

FACTS ABOUT THE ECONOMICS PRESENT IN SHOPPING MALLS


ECONOMIES OF AGGLOMERATION :-
Although the stores in the mall may not be related but locating close together gives them the opportunity to use the same infrastructure. By doing this interaction with the customer is easy and it also helps in cost reduction.

PRODUCT DIFFERENTIATION:-
It is the process of distinguishing a product or service from others, to make it more attractive and alluring to a particular target market.
So, Shopping malls too have a product differentiation like various categories of retail, functional design differentiate malls. For example Apple,Samsung,Vivo etc showrooms are present in the mall.
Customers check and compare the products which they have purchased from different malls.

PEOPLE RESPOND TO INCENTIVES:-
Shops which provide price discounts,gifts,coupons and rebates offered by mall retailers attract many customers and there is more traffic and rush on that shop. Hence, incentives comes to play here.

PRICE SENSITIVITY:-
Mall provides discount offers on the product thus customer provide signal that they are price sensitive by buying the products which offers discount. Because price plays an important role as it affects the sales of a product.

IMPORTANCE OF TASTE AND PREFERENCES:-
This concept measure the feeling or aroma about particular store. Customers are very particular about feeling or touch or smell for those products which they are purchasing from shopping malls to get customer satisfaction, its all because consumers are not identical each and every individual have different taste and preferences.



 

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