Chapter 3
4.1 Introduction
The identification of the various tasks that were accomplished to achieve the stated objectives of this work was the necessary first step of this research. This chapter looks to reveal the thesis research methodology to help ensuring the rigorousness of the data collection, analysis and, hence, the quality of the conclusions. The thesis research question which was defined in chapter one was based on knowledge and literature from the marketing field.
This chapter is organized as follows: Section (3.2) will discuss the conceptual framework and the overview of the research hypothesis. Section (3.3) represents the researcher’s philosophical position that guides the research question and analysis; identifying the methodology carried out through this project to fulfill the objectives. The research design will be discussed in section (3.4) including definition of the research context, unit of analysis, methods of data collection and analysis used beside the criteria used to ensure the quality of research findings.
3.2 Conceptual Framework and Hypothesis
3.2.1 Introduction
This chapter introduces the theoretical framework underlying this thesis. It does so by combining the literature presented earlier into a model that indicate the relationships between the different constructs that affect the Saudi consumer choice of shopping destination. It starts with a brief review on the process of how the framework was developed, and the forces that build up its angles.
3.2.2 The proposal model
In this section, and before introducing the model, a brief discussion on how the model was developed and reasoning behind the choice of the selected variables that form the model is presented
3.2.2.1 The model development process
In the process of developing the model several steps were taken; first, an intensive review of the literature was carried to key out a framework that helps to understand the determinant of Saudi choice when planning to buy. This review permitted to identify the four major factors that affect the choice of purchase destination. These were identified to be; Privacy, entertainment, price, and facilities. Secondly, a review began to identify a method to incorporate such broad variables, and this attempt yield using the concept of “cross correlation”.
The proposed framework presented in the next section (Figure 3-1) integrates four variables; Privacy, entertainment, price, and facilities. Even though, the rationale behind variables choice and its identification model has been fully discussed in chapter 2, still, for its importance, this section will summarize the logic behind such choices.
While Ensign (2001) argues that in defining the variables, there are a large number of organizational components, Meyer et al. (1993) list some of these key forces such as “numerous dimensions of the environment, industries, technologies, strategies, structures, cultures, ideologies, groups, members, processes, practices, beliefs, and outcomes” (p.1175). In selecting the variables researcher have imposed some type of criteria, Pels (2011) summarize the three main ones these are; variables need to “suggested as fundamental” (Miller, 1987. P. 686), “expected to help explain top manager’s alignments and arrangement decisions” (Snow and Miles, 1983. P.249) and a “substantial amount of knowledge about this overlay [must] already exist” (p. 243). Based on these criteria and supported by the previous literature, the two variables that were found to play a vital role on marketing practice were Organization For and BS.
3.2.2.2 The proposed model
The important and positive connection between appealing element and the gratification of customer in shopping malls was testified by various empirical studies. Hence, the determination of the appealing elements of shopping malls from the point of view of customers and its effect on shopper inclination to one mall than the other is the goal of this research.
The literature review identified four major factors that are expected to affect and influence Saudi women selection of shopping destination which are Privacy, entertainment, price, and facilities. The proposed framework presented in Figure (3.1) integrates these four variables points out that these four variables have a direct relationship on consumer preference. For each force, it indicates the corresponding categories that represent each force.
Figure 3 1: Proposed framework
3.2.3 Hypothesis development
The proposed model focuses on certain features that mall may have and may affect consumer choice of shopping destination. This thesis believes that factor relates or affect consumer choice. The following section discusses how each variable may affect consumer choice.
H1: Aesthetics have a positive effect on consumer traffic and choice.
Aesthetics can include many aspect, however this thesis considers the following parts composing facility, which are; Parking, Security, lighting, music, and air conditioning (Turley and Milliman, 2000). These factors are composed in any shopping mall in Riyadh city, however may not be available in normal retail stores in Riyadh city. Therefore this thesis believe that the existence of these factors will increase the traffic and will enhance the females and families appearance in malls more than retail stores.
The way aesthetics affect consumer decisions and service assessments has been mainly examined in the context of retail markets (Turley and Milliman, 2000; Zeithaml et al., 2006). Factors like parking, lighting, air conditioning, security and music are all tested for their impact in various studies as it is possible to assess these factors for cause-and-effect relationships (Ezeh and Harris, 2007). According to Kwortnik and Ross (2007), facilities, also referred to as experiential products, are “integrating tangible (sensory) and intangible (symbolic) features that are generated together by consumers and marketers to form an enjoyable, meaningful and unforgettable experience”. A well-developed servicescape provides the context for the performance of service of experiential products (Bitner, 1992; Pullman and Gross, 2004).
Four variables that constitute facilities were examined in this thesis: security, parking, lighting, music and air conditioning (Bell, 1999; Frasquet et al, 2001). Atmospherics play the role of environmental indications that are used by consumers to suggest the quality of a shopping centre; hence, they are extremely vital (Smith and Burns, 1996). In addition, it has been found that atmospherics encourage consumer enthusiasm at a shopping mall (Wakefield and Baker, 1998). The ambient factor comprising of non-structural dimensions of the retail setting (such as aroma, music and lighting) (Turley and Milliman, 2000) is distinct for each ambient indication. For example, relevant dimensions of scent consist of correspondence with other cues (Carman, 1990; Cronin and Taylor, 1992; Bone and Ellen, 1999; Pegler, 1999; Lee et al, 2000; Fiore et al, 2000; Zeithaml, 2006).
These facilities may be common worldwide but are very sensitive and important in Riyadh City specifically for more than one reason. The hot weather during the summer time is a big influence, compared to air conditioning criteria in the mall itself. The kingdom of Saudi Arabia is considered to be a very hot country during summer so air-conditioning is one of the most important factors in shopping. If we take in consideration the women that are supposed to put on the Abaya and cover on their hair and face on all times which makes air-conditioning an important factor for them even more. In the other hand, security is a major aspect as special arrangements has to be made for security involving call systems linked to a control room and security patrols with staff accommodation.
In addition, most of Saudi women cover their faces, the lighting should be bright in some dark places since their eyes are covered. This is unusual, but you must consider it. Good Management pay both direct and indirect fees for good music and sound system. Therefore, it can be concluded that mall management should be primarily concerned with achieving an exciting tenant mix to attract customers, investments in the mall environment (decor, layout,), as a substitution of sound system so as to keep customers in the mall in a good atmosphere and for a long time to shop comfortably. The problem that faced by investors and management in The Kingdom of Saudi Arabia is that music is prohibited by the Islamic religion. That means that Muslim woman shoppers in Saudi Arabia do not like to hear music.
Since females are not allowed to drive in The kingdom of Saudi Arabia, therefore the design of car parking for a shopping mall has to be very specialized. Parking should be sensitively designed, as part of the retail image of the mall, welcoming and easily identified at entry points for incoming traffic routes.
H2: Prices and availability of brands in the shopping mall have positive relation on customer satisfaction and thereby on customer preference of Shopping Mall.
One of the most significant cues of marketplace is price. This persistent effect of price pertains to the fact that price, to all customers, signifies the degree of economic outlay that needs to be given up to acquire a particular product or service (Tellis and Gaeth 1990; Zeithaml 1988). It was shown in earlier studies that price is employed by several customers as an indication of product quality. The extent to which price is considered in this “positive role” higher prices have a positive impact on chances of purchase taking place (Erickson and Johansson 1985). This means that consumers consider greater prices in a favourable light as they believe that the quality of product increases with the increase in price (cf. Lichtenstein, Bloch, and Black 1988). Consumers who think this way about price are inclined to pay more for the products and hence, this behaviour called “price seeking” (Tellis and Gaeth 1990). Similar to several other cultures, consumers living in Saudi Arabia are of the view that quality is closely related to price, which means that the higher the prices of products/services, the more appealing they are for consumers.
It has been asserted by Cadogan and Foster (2000) that price is possibly the most significant factor that matters for the typical consumer. Consumers who are extremely brand loyal will pay a premium price for their preferred brand; hence, price does not affect their intention to buy. Furthermore, consumers strongly believe in the price and worth of their preferred brands and so, they carry out a comparison of their brand with substitute brands (Keller, 2003). It is also possible to develop customer satisfaction by contrasting price with expected costs and values. When the product’s expected values exceed the cost, consumers are likely to make the purchase. Loyal customers will readily pay a premium, despite the price increase, as they believe that the risk of changing the product is high and they are willing to pay more to avoid that risk (Yoon and Kim, 2000).
Loyal customers become more price tolerant after long-term associations with their preferred brand as loyalty does not allow them to compare the price with other products. Price is turning out to be a key aspect in consumers’ perceptions of value and also their general evaluation of the retailer (De Ruyter et al., 1999). Through price, the market becomes aware of the company’s planned value placement of its product or brand. Price consciousness refers to identifying the best value, purchasing at sale price or the least price alternative (Sproles and Kendall, 1986).
Due to the reason that prices are normally assigned with brands, shoppers prefer places with brands. Many studies have testified this idea, for instance, the methods of brand image calculation can be utilized for malls and it can assist customer satisfaction and commercial success for shopping malls, as stated by Dennis et al (2001). Moreover, the term “branding” is recognized in consumer products, according to Bhaui (1970).
Consumer inclinations are influenced by the idea of variety within a selection and as a result it relies on much more than just the amount of specific products on the shelves, as claimed by Boatweight and Nunes (2001). According to physiology, the idea that Saudi shoppers prefer to Shopping destination that offers popular brands, in other words expensive products can be explained. It can be said that shopping at a popular mall and having enough money to buy this particularly expensive product satisfies the ego of a person including the self-satisfaction of that person.
The elements and qualities of a product or a service that depends on its capabilities to fulfil the needs specified or the ones that are disguised are included in Product Quality. According to Russell and Taylor (2006), it can be said that “appropriateness for utilization” or “conformance to needs” is called product quality. Owing to the tangible standards of the product sold, there is a possibility that shoppers would buy the same brand continuously or try many others. Owing to the fact that texture, how it feels when touched and other performance elements of the product influenced by material, it is proved that material is very significant. Moreover, colour is another important factor as shoppers are inclined towards certain colours and they would eliminate or choose merchandise on the basis of it. They would not buy the product whose colour is not according to their liking.
Quick-dry, waterproof, lightweight, durability and breathable are some of the characteristics of cosmetic products. For example, durability is a significant factor wile buying and choosing cosmetics while many customers buy it for work, as a hobby or sports. Women who buy it for sports wear it because their routine is hectic. An awareness of and the craving for premium products, and the requirement to choose the perfect product against choosing the first product they see is called Perfectionist or quality consciousness, as stated by Sproles and Kendall (1986). This definition pinpoints that performance is associated with quality characteristics.
H3: The higher the privacy in the mall, the higher the customer satisfaction and thereby on customer preference of Shopping Mall.
Culture is considered the most comprehensive external social determinant of human behaviour. And part of Saudi culture is that women have to cover their faces, and not allowed to contact males in private space. This fact the thesis refers to it as “privacy”, Privacy is a very important factor in the Saudi Arabian malls that provides females with a better experience in which the females can shop and move freely without putting the Abaya on their head or face. Putting the cover and usually is black on the body and the head is a governmental law in The kingdom of Saudi Arabia for females, where the female is obligated to put it on in public.
The females respect the fact that privacy in any mall shall provide them with the option of taking the Abaya off while shopping as this can be only conducted in a place that is surrounded by only females. (Suq Alhareem) which means the part of a shopping mall that serves only females and contains females’ workers in all the stores that are in the Suq Alhareem as well as any other employee working for the mall itself. Unfortunately, previous studies have not pointed out to this issue before, because of its limitation to Saudi Arabia only maybe, therefore no previous literature can be consulted in this regard. However, the thesis hypothesizes that the more the Privacy that higher the attraction to Malls is based upon the researchers interaction and personal knowledge of this market.
H4: The higher the entertainment in the mall, the higher the customer satisfaction and thereby on customer preference of Shopping Mall.
The mall has to have an excellent variety of entertainment options as women shoppers usually need to relax and have fun, as well as convenient entertainment for the children (age of 2 years to 13 years) accompanied by the women while shopping. It became imperative for the industry to provide and create shopping malls with the appropriate atmosphere that might help in fulfilling women’s shopping. Once consumers begin to view the shopping experience as fun and not stressful, the more likely they are to spend money. Academic research has revealed that consumers are able to make a decision regarding where to shop, based on their attitudes toward a mix of stores and the mall or shopping mall environment. In The kingdom of Saudi Arabia, the mall should be entertaining for the fact that the majority of women shoppers have kids that are 1-13 years old, so the logic for the majority of those who have kids who want to be entertained in the mall while the mother finishes her shopping activities. For a woman to shop comfortably restaurants and coffee shops should always provide a good quality of food and services quickly.
This element was studied and examined in old literature in various cases on purpose. For instance, the influence of mall physical environment on psychological state of the customers was studied by Bloch et al (1994). He found out that according to customers, malls were not only for the purpose of shopping but also for activities like entertainment. Parallel to that, in the present age, shoppers are more inclined to use malls for entertainment unlike the ones in early 1990s, as stated by Nicholls et al (2002). Wanting to stay and re-patronage motives to the mall are affected by the mall environment, according to Wakefield and Baker (1998). There are many other studies like, the significance of the shopping centre image as an important determinant of shopper sponsorship decisions was identified by Finn and Louviere (1996) and Sit et al (2003). Moreover, events, exhibitions and appealing leisure offer are the two entertainment offers that were recognized by Frasquest et al (2001). They found that they were associated with environment/ relaxation characteristic.
The fact that entertainment is connected with various characteristics can only be justified by two potential explanations. Firstly, from being a segment of the augmented product or service to attaching itself to the core product like variety or assortment and then finally being regarded as an environmental indication like atmosphere. This was the possible temporal transition in the role of entertainment at the mall. Second explanation includes that customers are not homogenous and hence they might be considered as a parallel entertainment item that is varying in the context of their meaning and significance. Owing to the fact that an exhilarating and fun shopping experience is encouraged, entertainment is crucial to shopping centres and as a result it could persuade consumer investment, as stated by Sit et al (2003). It can be implied that various consumer groups who define entertainment in different ways were identified in many research.
H5: The higher the customer satisfaction, the higher the customer loyalty for shopping destination.
Putting all the variables together, which are the driving factors to customer satisfaction in reality and in the same time is the reason behind customer loyalty for shopping destination. The main objective of providing all the factors and variables for customer in H1 to H4 in the Saudi Market that will lead to the customer loyalty and
3.3 Philosophical Position & research methodology.
3.3.1 Researcher’s Philosophical Position
As stated by Malhotra, Agarwal and Peterson (1996), by utilizing the following anthropological, sociological or psychological point of view, the customer research can be studied in general. The group-level approaches include anthropological and sociological perspectives where the latter discusses the behaviour caused from social factors. On the other hand, anthropological perspective gauges cultural procedures and attitudes directly. According to (Ibidem: 11), the psychological perspective is defined as an individual-level approach and it deals with the manner a person personalizes social affects in their own cognitive organization. The psychological perspective was utilized in this study with the reason that it can imitate the conservative culture in a cognitive procedure in an efficient way and displays the individual disparities.
In addition, adhering to certain philosophy may assist researchers to form a better picture on how and why research is implemented (Carson et al. 2001). The researcher’s philosophical position has been defined as “the point of view from which the research question will be defined, investigated, analyzed, discussed and answered” (Duberley, 2000). Johnson and Duberley (2000: p. 124) pointed out that commitment to a certain philosophy is “a key feature of our pre-understandings which influence how we make things intelligible”. This thesis follows adopts the pragmatic pluralism view when building its model (Watson 1997), within the multi-paradigmatic approaches. (Watson 1997, p. 6) defined Pragmatic pluralism as: “an approach whereby the researcher, in producing an analysis of some aspect of social life, draws elements from various disciplines”. This choice matches the goal of the thesis which tries to build and benefit from the insights of various social science disciplines with somewhat differing philosophical perspectives. Pragmatic pluralism will allow concepts taken from these different paradigms or disciplines to be drawn together into a single coherent and meaningful perspective to shape the purpose of this study.
3.3.2 Research Methodology
Methodology has been defined as the structure or the set of guidelines or activities that assist researchers in undertaking their research or their intervention (Minger and Brocklesby, 1997). This part will discuss the quantitative method as the appropriate approach to conduct this study, and what are the types of activities that will be undertaken, within this research.
The nature of this research is exploratory in nature; it tries to get a better understanding of how Malls features affect the choice of Saudi Arabian women knowing the conservative factors in the country itself. In other words it does not try to either explain or predict but rather to understand. In this sense, it is not aimed at testing a theory but to theorise (Weick 1994). The range of variables is considered and the exploratory nature of the research question provides the rationale for choosing the Quantitative method.
Quantitative research explains a phenomena by collecting numerical data that are analysed using mathematically based methods in particular statistics (Johnson and Onwuegbuzie, 2004). The Quantitative approach proponents ( Maxwell & Delaney, 2004; Popper, 1949; Schrag, 1992) who are commonly follow positivist philosophy believe that social observations are external and objective, and that the observer should be separate from the entities that are subject to observation (Nagel, 1986). Therefore they believe that researcher role should focus on facts and seeks causality. Their preferred methods are using large samples and seeking reliability when operating their concepts. The researcher following this approach focuses on both; meaning of the social science and its facts. Quantitative method offers great promise for practicing researchers who would like to see methodologists describe and develop techniques that are closer to what researchers actually use in practice. Table 1 shows its main characteristics:
Table 1: Characteristics of the Quantitative method
Characteristics Quantitative methods
Scientific method Deductive or “top-down”.
View of Human behavior Regular and predictable
Research Objective Descriptive, explanation, and prediction
Focus A Narrow angle
Nature of Observation Study behavior under controlled conditions
Nature of reality Objective
Form of Data Collected Quantitative data
Nature of Data Variables
Data Analysis Identify statistical relationships
Results Generalizable findings
Form of Final Report Statistical Report
The main purpose of such investigation is to inspect and validate the proposed model, at the same time to test and validate the proposed hypothesis; finally and most importantly to generalize the thesis findings and help in doing future prediction that can help practitioners and researchers. This section is divided into the following sections; instrument is identified in section 3.3.1, sample and data collection are presented in section 3.3.2, and data analysis stages are explained in section 3.3.3.
3.3.3 Instrument
Obtaining information from the participants requires and the method of doing it requires that a questionnaire must be developed. According to Green, Tull and Albaum (1988), it also includes the content and phrasing of questions, the union and the sequence of questions, the answer format, the physical design and pre-testing. Hence, at this step of the procedure, a huge amount of important operational features are chosen. According to Craig and Douglas (2000), the enhancement of a device that is distinct and not complex to comprehend and manage is the main problem to be solved.
A self-administered structured questionnaire was developed to collect quantitative data pertaining to the various aspects of mall features that have an impact on Saudi women choice of retail Malls as the culture in The Kingdom of Saudi Arabia is considered to a conservative, plus some consumer demographics. The choice of survey as the data collection method provides several advantages mainly; the ability to identify the attributes and behavior of large population using a small group of individuals (Creswell, 2003). Being able to reach different targets quickly, economically, and efficiently will result in the ability to obtain reliable data faster. Because of the survey’s standardization; interpretation in such case will be easier. Finally a good portion of different information can be gained from large samples which can help the results to be more statistically significant (Babbie, 1990).
The final self-administrated questionnaire contained five sections that pertained to the five variables of malls, in addition to one section that measured consumers choice of malls (to pertain to the performance of malls), and a final section that collected general information about the respondents.
The six sections as they appeared in the questionnaire are:
1) General information about the consumers;
2) Malls environment and privacy;
3) Malls Variety;
4) Malls entertainments;
5) Prices and brands availability, and
6) Consumer preferred choice of Malls.
A copy of the survey is presented in Appendix (1).
For the mall environment, ambient, and design factor; we adopted the questions identified by Baker, Crewel and Parasurman (1994) used to measure mall environment. Items related to more visual design factors (i.e. telephone. bathrooms, interior design, decor, etc.) the paper used the questions identified by Wakefield and Blodgett’s (1996). As for the option Malls variety, this paper adopted Wakefield and Baker, (1998) measures.
Performance is a multidimensional construct (e.g., Chakravarthy, 1986), in this study the performance of malls was measured from customer perspective, where the sample of consumers was asked about what choices of malls they prefer since it is aimed to find what type of malls gets the most traffic rather than measuring their profitability. The reason for this choice is that traffic on malls has been recognized as one of the most important indicators of financial performance (e.g., Capon, Farley, and Hoenig, 1990; Kaplan and Norton, 1996; Varaiya, Kerin, and Weeks 1987).
The last section “background” contained eight questions that evolved around the employees filling the questionnaire and some demographics questions about their age, gender, position, and experience. These questions are necessary to see how different consumers react toward malls identified features.
Closed-questions were chosen for the questionnaires of the study. According to Malhotra (1999), same outcomes have been constantly produced by the semantic differential scale in diverse cultures that has been regarded as pan-cultural. Moreover, the suggested question format for calculating latent customer attitude constructs like beliefs, values and behaviours are called multi-item Likert scales that are universally used, as stated by Wong, Rindfleisch and Burroughs (2003). The items calculated with 4 point strongly agree to strongly disagree; the Likert scale is incorporated in the project’s questionnaire. Even though many original devices utilized 7-point scales, the 4-point scales were regarded as user friendly for the samples being observed. Followed by, multi-item scales that were utilized for calculating key variables to make the calculating of psychometric characteristics possible and to describe the structure of multidimensional constructs, according to Malhotra (1999).
3.3.3.1 Questionnaire validity and reliability
The six main parts making up the questionnaire are adopted from existing but separate instruments. Creswell (2003) suggested in such cases to report the established validity and reliability of the questionnaire. Validity which refers to the instrument ability in reflecting or drawing meaningful and useful inferences from scores on the instruments (Churchill & Iacobucci, 2009) has four traditional forms that been inspected by previous literature, content, construct, convergent, and discernment.
Content validity –“approach to validate if the items measure the content they were intended to measure” (Creswell, 2003. p. 147) – has been established through the evaluation and feedback of four marketing professionals. The pretest stage proposed that the questionnaire was understood, easy to interpret, and catches the main items of Malls features defined by the conceptual framework. Therefore it can be inferred that the questionnaire has the adequate content validity. As for the construct validity – what constructs, concepts the items measures- is maintained because all measures were obtained from theoretical frameworks that was created based on extensive literature review and field work. Finally, convergent validity – confirming that item are related- and discriminant validity- assuring items are not measuring same construct- were tested using the confirmatory factor analysis for each of the five sections separately. The results and data indicating for these two types plus the items after refinement using CFA will be shown in the findings chapter.
Reliability on the other hand refers to how each variable is consistent in what it is intended to measure (Hair, Anderson, Tatham, & William, 2006). It differs from validity in that it relates not to what should be measured but rather how it should be measured. The most widely method to establish reliability is using Cronbach’s alpha, which is agreed to be above (.7) to establish reliability. This has been established for all constructs, and the Cronbach’s alpha table is shown in the findings chapter.
3.3.3.2 Issues in measurement – Translation
Even though most Arabic individuals are familiar with English, a second copy of the questionnaire was translated to Arabic and consumers were given the choice of Arabic or English questionnaire.
Translation errors can happen and it can cause a severe damage when conducting research. These errors are caused by; carelessness, multiple-meaning words, and idioms (Miller, 2004). These problems can lead to many problems in understanding thereby answering the question which will pass to validity problems. In order to avoid such issue a back translation of the same questionnaire was conducted in order to assure that meanings and wording of the questionnaire was correctly made. Translation was performed by two professional certified companies that work in the field of translation for many years, plus the author familiarity with two languages help in ensuring and checking both translations. No major changes were made, only minor Arabic wording were replaced to reflect the common business terms instead of its Arabic direct translation.
3.4 Unit of analysis, methods of data collection, and Research context.
3.4.1 Data analysis
The primary connection between a theoretical infrastructure and making deductions is the data analysis. This includes more advanced computer programs of statistical package in cross-cultural conservative domestic research and it is connected with the research procedure on a broader level.
Hence, the study data is examined in the best way on the basis of the fact that country unit analysis or cultural unit analysis, because it is based on the notion that this study unit of analysis is regarding the individual Saudi shopper. The data is examined independently for every country or cultural unit, on the basis of both country’s unit analysis and cultural unit analyses. According to Craig and Douglas (2000), this approach is also named intra-country or it was called intra-cultural analysis, as stated by Malhotra (1999) that resemble analyses carried out in domestic research.
Interpretations that are connected to the patterns of relations of the variables within that country are caused by data analysis that is carried out within a country. Assessments are made about the connections in every country to the point where the studies may be duplicated in various countries. Nonetheless, fact that there are many aspects that cannot be put side by side across countries is considered when any assessments are made across countries, as stated by Craig and Douglas (2000: 290)
As stated earlier in this chapter, this thesis aims to explore the effect of malls features on Saudi Arabian women choice in a conservative society. In order to test the proposed model and hypothesized relationships, an inspection of the direct relationships between each of variable on mall choice is performed. The following methods that are suitable for structure level studies are recommended by methodology literature like Correlation analysis; cluster analysis, multidimensional scaling analysis and structural equations modelling, as stated by van de Vijver and Leung (1997) and Craig and Douglas (2000).
The most basic approach to the examination of structural dilemmas is included in the correlation analysis and has been increasingly utilized, as stated by Dawar, Parker and Price (1996); Albers-Miller and Gelb (1996), Erdem and Javalgi, (1997); Furrer, Liu and Sudharshan, (2000); Yaveroglu and Donthu, (2002) and therefore has been adopted in this study. This approach is considered as a group of alternating least square algorithms that extend the component and Canonical correlation analysis (Henseler, Ringle, & Sinkovics, 2009). These algorithms can be described as a sequence of simple or multiple ordinary least square regression analysis in terms of weight vectors (Chin, 1998; Henseler & Fassott, 2010).
3.4.2 The sample, sampling method and data collection
This thesis is interested in exploring the conservative Saudi Arabian market in general and Saudi women in specific. Accordingly, the target population is any female shoppers that live in The Kingdom of Saudi Arabia. The sampling design and sample size are two other important aspects of the research design. These two factors are necessary in establishing representatives of the sample to be able to generalize its findings. A sample is a subset or a subgroup of the population selected so that it may allow drawing conclusions that generalized to the population interest. The sample chosen should be representative of the true properties of the population it expected to characterize. Accordingly, this thesis applied probability sampling (Berkowitz, 2010).
Probability sampling is a sampling technique wherein the samples are gathered in a process that gives all the individuals in the population equal chances of being selected. The probability sampling can be either unrestricted (i.e. simple random sampling) or restricted (i.e. complex probability sampling) in nature (Meyburg, Richardson, Ampt, 1995)
The researcher in this study used one of the restricted probability sampling designs called systematic sampling. Although, simple random sampling design or what we call unrestricted probability sampling, offers the least bias and the most generalized results, using it can make the sampling process a cumbersome and expensive than when using a probability systematic sampling.
The probability systematic sampling is not only quick and easy, but also effective when the population is large (as in our case). The systematic sampling involves, drawing every nth element in the population, starting with a randomly chosen element between 1 and n, so as to avoid bias from creeping into the sample (Berkowitz, 2010). On the other hand, the sample statistics should be good estimates, and reflect the population parameters as closely as possible within a narrow margin of error. However, no matter how sophisticated the probability sampling design is, no sample statistic is going to be the same as the population parameter. This is the main reason behind the use of probability design, as it will result in increasing the probability that the sample statistics will be as close as possible to the population parameters (McCallum, 2000). If the sample size is too large, the result could become a problem as it may lead of accepting the findings of the research, when in fact they have been rejected. In addition, if the sample size is too small, it will not be effective in representing the population as well as misleading in generalizing the findings. Thus, neither too large nor too small sample size helps the research projects.
This study sample size is 503 shoppers (calculation shown below) a 100 shoppers in each of 5 chosen malls in Riyadh city. The researcher sampled every 10th shopper (i.e. the random number selected was (1) then the 11th shopper, then the 21st, 31st 41st, 51st, 61st, 71st, 81st 91st) until the whole 503 shoppers are obtained for the sample. This number was necessary to ensure reliability as it did ensure the following factors:
1. The extent of precision desired (confidence interval ±1 %)
2. The amount of risk allowable in predicting that level of precision (confidence level 94%).
3. The amount of variability in the population itself.
4. The size of population itself.> 400,000 visitors.
5. Time, and cost constraints.
6. Probability = 40 % (probability for each element of the population to be selected in the sample).
Formula of calculating Sample size:
True
n = Z P (1 – P) / d
n = Required Sample size
Z = Confidence level at 94% (Standard Value of 1.96)
P = Estimated prevalence of malnutrition in the project Area
d = Margin of error at 4.37% (Standard value of 4.37)
n = 1.96 X1.96 X 0.4 (1 – 0.4) / 0.437 X 0.437
= 3.4186 X 0.24 / 0.00190969
= 0.9604 / 0.00190969
= 403
The data collection method chosen and used, was the self-administered questionnaires. According to Sekaran (2003) a questionnaire is a pre-formulated written set of questions; to which respondent record their answers. This method was the best data collection method, to use to gather the needed information for such research. The survey method was chosen because it provides the following advantages according to (Sekaran, 1992: 187-222):
1. Helps the researcher to collect all the completed responses within a short-time period.
2. Any doubts that the respondents might have regarding any question could clarified on spot.
3. Helps the researcher to have the opportunity to introduce the research topic, and motivate the respondent to give their honest answers.
4. The administered questionnaire is less expensive and less time consuming, and requires fewer skills than other types of data collection methods.
The data of this research were prepared and collected over a six-month period from (14th of January,2012) to the (14th of July,2012) from shoppers in the actual shopping malls (i.e. before, during or after shopping) to answer all research questions. Having into consideration so as Ramadan and pilgrim are within this period. Also, the researcher has conducted another data collection round for four months from the (25th of February, 2014) to the (25th of June, 2014) also from shoppers from the actual shopping malls.
3.4.3 Research Context: The kingdom of Saudi Arabia
The Kingdom of Saudi Arabia contains a conservative society and culture, as it has a global importance politically, economically, socially and spiritually (Scott-Jackson, 2008). Even though the country is best known for producing Oil and gas, The Kingdom of Saudi Arabia’s command economy is petroleum-based; roughly 74% of budget revenues and 90% of export earnings come from the oil industry. However the oil, gas and other natural resources have led to rapid economic development and improved living standards in the country. The oil revenue has been used for huge infrastructure projects, knowing that the region importance is not sourced of crude oil only, but also contains a large market with considerable potential.
Recent years have witnessed significant economic growth in The kingdom of Saudi Arabia, due to an increase in oil and gas prices, and to the diversification of many different economic bases. The investment in the oil sector has enabled The Kingdom of Saudi Arabia to develop education, health and social protection systems and increase trade (Eken et al. 2003).
The Kingdom of Saudi Arabia in year 2014 had an average population of (29.37) million towards the end as concluded by the (MarketLine). When the life expectancy at birth for the same year was investigated, it was recognized that life expectancy for males was (72.80) years, females was (76.90) years, and hence (74.80) years for the total population. Different percentages of populations were seen to be categorized in different age groups, {0-14} age group were (28.19%) of the entire population, {15-64} age group were (68.72%), and lastly people aged {65 or above} were (3.09%), respectively. This explains that the Saudi society consisted of a younger population as the median age was known to be (26).
In the years (2002-2008), it was reported that the yearly average growth of the Saudi Arabian economy was (6.33%) after which it decreased in the next year in 2009. The total registered growth was (1.83%) compared to (8.43%) in 2008. The GDP would basically depend on the results and the process of oil. However in the next three years, growth in economy was recorded as follows; in {2010} it increased by (7.43%), in {2011} it increased by (8.57%), in {2012} it increased by (5.81%). The reason behind this gradual growth was an improvement in the performance in the oil sector, increased prices of oil, and the development of the private sector. Economic growth was seen to slightly decrease in {2013} to (3.95%) but then it increased the following year in {2014} to (3.96%).
It was reported that the public debt of the Kingdom of Saudi Arabia reduced in 2011, 2013 and 2014 from SAR135.50 billion ($36.12 billion) to SAR75.12 billion ($20.03 billion) or 2.7% of GDP to SAR44.26 billion ($11.78 billion), respectively. This was calculated as a 26.38% reduction from the year before. The advantage of reducing the public debt is to increase the investments and enhancements in alternative sectors in the country. When the GDP of 2013 and 2014 are compared, it is seen that the prices grew in 2014 with a rate of 0.3%, as reported by the Central Department of Statistics & Information (CDSI). The growth rate decreased because the oil sector was reduced by 9.4% in 2014 and 6.2% in 2013 comparatively.
The kingdom of Saudi Arabia is quite an important part of the global energy industry as it is the largest oil manufacturer and exporter in the world, and hence it is quite conclusive that the global oil market is going to be maintained by The Kingdom of Saudi Arabia. The methods of the manufacturing and exporting of oil, natural gas and petroleum affect the economy of the world and the energy market. The supply and cost of these materials are efficiently taken care of as the country owns this power and duty. As 2014 came to its end, The kingdom of Saudi Arabia would own reserves of crude oil and natural gas that were 266.58 billion barrels and 299,742 billion cubic feet respectively. This information was given by Saudi Arabian Monetary Agency (SAMA).
In {2011}, the kingdom of Saudi Arabia’s prestige in the global market had a significant advantage improvement in the global market on an official level on behalf of the G -20. To inhibit any disturbances and problems in the supply in the course of the geopolitical dilemma in 2012 and deterioration of manufacturing in Libya in 2011, The kingdom of Saudi Arabia increased it oil manufacturing to a 30-year high. The country is now known as one of the world’s greatest suppliers as it contains massive amounts of reserves and great proficiency.
The MarketLine states that in {2008-14} there was a growth in the economy of The kingdom of Saudi Arabia of (5.71%), this was basically the result of high costs of oil and it was revealed that the country highly depends on this segment. Every year, the government tries to develop guidelines that are not related to the oil sector and massive amounts of money is funded in this operation. Exporters that are not related to the oil sector are given help and support by the Saudi Export Program (SEP) or the Saudi Fund for Development (SFD). Important oil revenues have been used by the economy of The Kingdom of Saudi Arabia for advancement. The R&D infrastructure requires enormous amounts of financial support, which was handled upon strongly by the government of The Kingdom of Saudi Arabia as they have a strong financial strength.
In 2014, the segments that were not related to the oil sector developed with the rate of (5%) as the program financed exports of non-oil products amounting to (SAR632.8) million ($168.45 million) and credit lines of about (SAR243.8) million ($64.90 million) were given. A tread was created in 2013 holding the quickest development of sectors that were construction (8.1%), transport, communication (7.2%) and retail sector. This trend is expected to slowly continue on till 2015. Projects such as the high speed inter-city rail network and the Riyadh city metro that are associated with the government are one of the reasons behind the growth of non-oil sectors in 2014. The main reason behind the construction of (King Abdullah Economic City) that needs investments of $86 billion from the government, is to create a knowledge based economy instead of one that uses hydrocarbons. Non-oil exports are seen to be increased more in (2014) than (2013) as stated by the ministry of economy and planning. To reduce the use of hydrocarbon sector it is vital and a productive step to promote the increase of the non-oil segments.
The agricultural industry had a significant development in the Kingdom of Saudi Arabia, were irrigation is used in the south-western area of the country for the construction of farms for manufacturing wheat, eggs and milk; along with this the country still has the need to import food. Agriculture results have been recorded to be increased in the years (2009) to (2014) from SAR45.93 billion ($12.25 billion) to SAR 52.71 billion ($14.05 billion), respectively. The manufacturing industry of The kingdom of Saudi Arabia is known to be developed solely because of the oil and petroleum sector, but as Saudi Basic Industries Corporation (SABIC) came along, the manufacturing exercises were distributed to various sectors. It was reported that the industrial output increased from SAR885.34 billion ($236.05 billion) in 2009 to SAR1733.71 billion ($462.24 billion) in 2014 because SABIC spread its wings upon other products including fertilizer, steel, copper wire and cables, truck assembly, refrigeration, plastics, aluminium products, metal products, and cement, along with working on industries related to petroleum. With the 20th century, sectors such as the maintenance sector started to show signs of development in the country. One of the most important sectors of the country are civil administration, defence, retail, and tourism. A growth of (7.52%) in the services sector was recorded in {2014} of SAR1106.38 billion ($294.98 billion).
Because of the vigorous domestic usage, finances of the government, and corporate dominance; there is a continuous development in the non-oil sector. It is reviewed that in the future; the retail and construction sector of The Kingdom of Saudi Arabia is known to grow more productive, stated by several economic studies. The non-oil sector becomes a saviour when the economy is affected by recession in the oil sector, as it increases economic development.
In 2014 there was a massive increase in the leading of consumer and real estate, as stated by SAMA. In the years {2011-14} a gradual increase has been noticed in the private sector, as the bank credit growth increase was (15.4%). The raise in the amount of credit cards has caused sudden development in consumer leading. In a course of two years, an increase of (69%) is seen in both the corporate and retail sector of real estate leading. In 2014, all the bank credit in the real estate leading came to (12%). The noticeable development in leading is a reason behind the improvement of work in the banks of the country, although the prices of oil have deteriorated. From 2013 to 2014, the results have been increasingly profitable for the banks and have risen by (12.5%) and increased to (SAR40.2) billion ($10.72 billion).
The Kingdom of Saudi Arabia exerts influences upon foreign investors because of its development in economy and the massive amounts of profitable oil reserves. Profitable outcomes are foreseen as the strategies of the government possess privatization and liberalization. In June 2015, for the very first time, foreign investments will be accommodating various accounts such as retail, banking, energy, telecoms, IT and WTO commitments in the greatest market of Middle East, the Saudi Arabian market. Additionally, segments that relate to technology and the improvement of infrastructure are given more investments.
{2013} is marked as a year in which The kingdom of Saudi Arabia was given the position of 34th of 187 countries with a HDI value of (0.836), as reported in the UNDP’s Human Development Index 2014. In the high human development category, the position of Saudi Arabia was above the average of (0.735) for countries and (0.682) for Arab countries. (18.6%) of the budget was spent by the health and social affairs in the year 2015. The usage of the total given budget was increased by (48%) as in {2015}, the health and social affairs had shares of $42.7 billion (SR160 billion). The country has planned to build 27 new hospitals and health facilities with the 2015 budget.
The Middle East consider the kingdom of Saudi Arabia as an extremely significant country as it has a leading role in concluding the prices and quotas. The country has made it a point to have proper and strategic relations with countries that have a strong backbone in economy such as Japan and the US, also with the Islamic nations. Mutual relations were strengthened with various countries in terms of development of infrastructure and finance, for example, with Sudan in July 2010. In terms of household workers, with Philippines, and with Russia when deputy crown prince and defence minister, Mohammed Bin Salman Bin Abdul-Aziz Al-Saud went to Moscow and met with the Russian president Vladimir Putin and decided to sign a civil nuclear deal.
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