SINGAPORE - A SHOPPING PARADISE: IMPACT OF TOURISM SHOPPING ON RETAIL MARKETING AND MANAGEMENT

Abstract

Tourism shopping plays a significant role in boosting the economy of a nation. Yet, research in this area has been greatly neglected. This study, using a sequential mixed method design, tries to unveil the determinants that shape tourists' shopping behaviour and how to influence tourist's shopping experience through retailer attributes. In an attempt to understand tourists' shopping orientation, the author tries to segment the tourist shoppers based on their shopping motivations. Through factor analysis, it was found that tourists have the traits of five shopper types, namely Shopping Expert, Functional Shopper, Entertainment Seeker, Socializing Enthusiast and Boredom Breaker. Although there are five distinct shopper types, the study found that tourists do not usually posses only the characteristics of one factor. The Weighted Factor Rating shows that almost all tourists have certain amount of ‘Shopping Expert, `Functional Shopper', ‘Entertainment Seeker’, `Socializing Enthusiast' and ‘Boredom Breaker' in them. Next, this study explores the impact of different types of retailer attributes on tourists’ shopping enjoyment. It was found that most tourists are generally more concerned with retailer attributes that are store-related, product-related and atmospheric-related than those attributes that are entertainment-related and/or physical-related. Nonetheless, in particular, tourists are looking for places that can provide them with a wide range of merchandise selection, good connectivity to the shopping centre, reasonable price, good quality of products and services. This study also attempts to put together what is known about tourist shopping into a framework that can assist researchers and retail managers to understand better the dynamics of this important retail phenomenon and how retail marketing and management can be used to better tap economic dividends.