Organized retail formats are growing twice as fast as their traditional counterparts. But, in spite of that, the mall management is concerned about the rising rate of vacancy leading to economic unsustainability. The reason for high mall vacancy rates can be ascribed to faulty tenant placement and irrational rental plan.
Existing studies on the tenant-mix-decisions focus more on inter store externality and not on the spatial logic. Moreover, normal industry practice follows rule-of-thumb instead of any scientific approach. A bid-rent model for profit maximization of individual stores is solved to identify the relationship between area allocation and rental decision with the customer density at that point.
The customer density in turn depends on the accessibility and explained through visibility graph analysis and agent based simulation. The findings support the superiority of configurational characteristic over metric distances. A model for profit maximization of the entire shopping mall is proposed to explain the tenanting, rental and anchor rent subsidization decisions based on logic of spatial configuration. Space planning, in this way, can be considered as a tool for strategic decision making instead of an accommodator of functions.
Table of Contents
- Chapter I: Introduction
- Preamble
- The Characteristics of Shopping Mall as a Study Area
- Background of the Research
- Research Objective
- Chapter II: Literature Review
- Need for Study of Interdisciplinary Works on Retail Management and Space Syntax
- Studies on the Location and Rent Decision of Stores in a Shopping Mall
- Significance of Tenant Mix in a Shopping Mall
- Tenant mix policy
- Strategic significance of Inter-store externality for describing and analysing positioning of stores in shopping malls
- Managerial solutions for internalizing externalities
- Configurational studies on Shopping Malls and application of the urban spatial theories
- Human Navigation Pattern and Spatial Configuration
- Space syntax measures and human navigation patterns
- Relationship between navigation and visibility
- Through Vision and its significance in Visibility Graph Analysis
- Chapter III: Research Methodology
- Research Approach for Achieving Objectives
- Bid-Rent Analysis
- Space Syntax Analysis
- Visibility Graph Analysis
- Agent Based Simulation
- Measuring Navigation Pattern and Behavioural Factors in a Shopping Mall
- Sample
- Survey Instrument
- Chapter IV: Analysis and Discussion
- Establishing Relationship Between Store Area, Rent Per Unit Area and Customer Density
- The relationships of decision variables for changing tenant store variables
- The logic of tenanting decision
- Analysing the Syntactic Logic Behind Configuration and Navigation
- Visibility Graph Analysis for describing configuration
- Visibility Graph Analysis and Agent based simulation
- Behavioural Factors Behind Navigational Patterns in a Shopping Mall
- Identification of behavioural factors behind response towards visibility
- Description of Research variables
- Shopping Orientation
- Shopping Habitat
- Attitude
- Conceptual model for navigation behaviour
- Demographic characteristics
- Factor Analysis of the Model constructs
- Measuring Navigation Patterns
- Navigational behaviour and shopper type
- Model fit and Hypothesis Testing
- Tukey HSD Test
- Post-hoc Tukey-HSD test results
- Scheffe multiple comparison
- Bonferroni and Holm multiple comparison
Objectives and Key Themes
This research investigates the economic rationale behind the visual configuration of space in shopping malls and its influence on tenanting decisions. It aims to understand how spatial arrangement affects rent and customer behavior. The study employs a mixed-methods approach combining bid-rent analysis and space syntax methods. * Economic factors influencing rent and store size in shopping malls. * The relationship between spatial configuration and customer navigation patterns. * The impact of visibility and accessibility on store choice and sales. * The application of space syntax principles to understand shopping mall design. * Integration of economic and spatial models to analyze tenanting decisions.Chapter Summaries
Chapter I: Introduction: This chapter sets the stage for the research, introducing the concept of shopping malls as a unique study area due to their complex interplay between architecture, economics, and consumer behavior. It highlights the gap in research linking architectural design with real estate decisions and establishes the research objective of understanding the economic rationale behind visual configuration and its effect on tenanting choices. The chapter uses illustrative examples and diagrams to show how poorly designed spaces fail to attract customers, creating a foundation for the study’s core question. Chapter II: Literature Review: This chapter provides a thorough review of existing literature on retail management and space syntax, highlighting the need for an interdisciplinary approach. It examines past studies on store location decisions, tenant mix strategies, and the significance of inter-store externalities. The review delves into the application of urban spatial theories to shopping malls, linking concepts like visibility and accessibility to human navigation patterns. Key studies on space syntax measures and their relationship to customer movement are discussed, setting the theoretical framework for the research methods employed. Chapter III: Research Methodology: This chapter details the research approach, combining bid-rent analysis with space syntax techniques. Bid-rent analysis is used to model the relationship between rent, store area, and customer density, providing an economic framework. Space syntax analysis, specifically visibility graph analysis (VGA) and agent-based simulation, is used to study the spatial configuration and customer navigation. The chapter also describes the methods for measuring navigation patterns and behavioural factors using surveys and observational studies in a selected shopping mall. The chapter clearly outlines how these diverse methods will work together to answer the research questions. Chapter IV: Analysis and Discussion: This chapter presents the analysis of data collected through the methodology described in Chapter III. It establishes relationships between store area, rent, and customer density, revealing optimal store sizes and rent prices for different store types based on customer density and economic factors. The analysis utilizes visibility graph analysis to examine the spatial configuration of different mall typologies and simulate customer movements, illustrating the impact of spatial design on navigation patterns. Behavioral factors influencing navigation, based on factors like shopping orientation and attitude, are explored, and the integration of these factors with the spatial analysis is critically analyzed.Frequently Asked Questions: A Comprehensive Language Preview
What is the overall topic of this research?
This research investigates the economic rationale behind the visual configuration of space in shopping malls and its influence on tenanting decisions. It aims to understand how spatial arrangement affects rent and customer behavior, using a mixed-methods approach combining bid-rent analysis and space syntax methods.
What are the key themes explored in the research?
Key themes include the economic factors influencing rent and store size; the relationship between spatial configuration and customer navigation patterns; the impact of visibility and accessibility on store choice and sales; the application of space syntax principles to understand shopping mall design; and the integration of economic and spatial models to analyze tenanting decisions.
What methods are used in this research?
The research employs a mixed-methods approach. Bid-rent analysis models the relationship between rent, store area, and customer density. Space syntax analysis, specifically visibility graph analysis (VGA) and agent-based simulation, studies spatial configuration and customer navigation. Surveys and observational studies in a selected shopping mall measure navigation patterns and behavioral factors.
What are the key chapters and their contents?
Chapter I: Introduction sets the research context and objective. Chapter II: Literature Review examines existing research on retail management and space syntax. Chapter III: Research Methodology details the research approach, including bid-rent and space syntax analyses. Chapter IV: Analysis and Discussion presents data analysis, integrating economic and spatial findings, and exploring behavioral factors influencing navigation.
What specific aspects of space syntax are used?
The research utilizes visibility graph analysis (VGA) to describe the spatial configuration of shopping malls and to understand how visibility affects customer movement. Agent-based simulation is also employed to model and simulate customer navigation patterns within the analyzed spaces.
What economic factors are considered?
The research analyzes the relationships between store area, rent per unit area, and customer density. It explores how economic factors influence tenanting decisions and the optimal sizing and pricing of stores based on customer density and other economic variables.
What behavioral factors are investigated?
Behavioral factors influencing navigation patterns are explored, including shopping orientation, shopping habitat, attitude, and demographic characteristics. The research uses factor analysis to understand the interplay of these factors and their impact on customer movement and store choice.
What statistical methods are used?
The research utilizes statistical methods such as Tukey HSD Test, Scheffe multiple comparison, Bonferroni and Holm multiple comparison to analyze the data and test hypotheses related to navigation behavior and shopper type.
What is the significance of the research?
The research contributes to understanding the interplay between economic factors, spatial design, and customer behavior in shopping malls. It offers insights into optimal tenant mix strategies, store placement, and the design of spaces to maximize customer flow and sales.
Where can I find more detail on specific aspects of the methodology or analysis?
The full research document provides detailed descriptions of the methodology, including specific statistical analyses and the rationale behind the choice of methods used. This FAQ provides a summary of the key aspects.
- Quote paper
- Sumanta Deb (Author), Prof. Keya Mitra (Author), 2016, Economic rationale for visual configuration of space for rent and tenanting decision in shopping malls, Munich, GRIN Verlag, https://www.grin.com/document/347134
