IMPACT OF GENERATION X AND GENERATION Y �S CHANGING PREFERENCES ON PHYSICAL CHARACTERISTICS OF RETAIL MALLS

Abstract

In the past, retailing had been centred on “location, location, location”. In the near future, the retail industry will undergo a series of transformations. Retailing will be more experiential, where consumers can “live” the shopping experience (PWC and TNS, 2007). Generations X and Y are two predominant groups of consumers with high spending power and mall patronage frequency, contributing to a considerable amount of retail spending. This study aims to examine the characteristics and shopping needs of these two main generational cohorts. A comprehensive research had been conducted to identify the key mall attributes that attract Generations X and Y consumers. In addition, it seeks to spot any significant differences between the preferences of Generations X and Y consumers, with regards to the physical characteristics of shopping malls. A mixed method design of quantitative and qualitative research was adopted, by conducting personal interviews and administering surveys at four selected malls. Spiggle’s Seven Analytic Operations was used to analyse the interview data. Factor Analysis and One-Way Analysis of Variance (ANOVA) was applied to examine the survey data. The findings revealed that accessibility, tenant mix, design and advertising, entertainment and services, and atmospherics will attract Generations X and Y consumers. It also suggested that there are significant differences in the preferences of all the above mentioned mall attributes between Generations X and Y consumers, except entertainment and services. This allows mall owners and potential developers to alter their mall offerings to cater to the preferences of the two main generational cohorts.