Shopping|Makes Shopping Fun
Recommended: Gas4Free
Mar
06
Filed Under (Business) by shopping
Willard Michlin asked:
Have you ever asked yourself the question? “Is this a good time to sell my business?” That is a question every business owner asks himself, every time he has a bad day. I once received e-mail from the editor of the Auto Body News, asking me that key question. “What is happening in the market today? Is this a good time to sell? ” My quick answer was “These are very interesting times.”
Of course that answer doesn’t tell you anything that you can get your teeth into. So! Let me clarify my answer. Since I have been selling body shops for 10 years, I have seen many changes in the body shop industry. One thing that hasn’t changed is that there have always been an abundance of both sellers and buyers. The buyers have always been, and still are picky about what they were looking for.
The perfect shop in the eyes to the buyers is (A) one that has a customer base and a revenue stream that is reliable and isn’t dependent on the owner being there to retain each individual customer, and. (B) doing a volume of at least $100,000 per month, but really much more. Large volume sellers think that if they have a DRP (Direct Repair Program,) they have what body shop buyers’ want. A DRP is where the insurance companies set up a relationship with the body shop to do all insured’s body shop business, much like an HMO in the health insurance field.
This may be what buyers want, but the DRP contracts are not automatically transferable, and a buyer will be very unhappy if the DRP leaves, the buyer, after they have paid a lot money for this “reliable revenue stream.” Smaller volume sellers, on the other-hand, not having corporate accounts, dealerships or other contracts still have hope for getting lots of money for their shops. The average shop I run across is only doing about $300,000-$500,000 annual gross income. So what we have is a situation where a lot of buyers are looking to buy a shop, but there are not a lot of shops available, which fit what they are, interested in-$1,500,000 annual gross income or more.
This year, one change has occurred. There are fewer shops available than at any time in my career. Not fewer of the large volume shops for sale, that is fairly stable, but fewer of the small mom and pop repair shops that have not been in heavy demand. The reason, I believe this has happened is because of the booming economy. Low volume shops are doing better than they have in years. They are making money, and do not feel as much pressure to close down. They still would like to get out, but when they find out that their 5,000 sq. foot shop which is making them a $100,000 net profit, is only worth $100,000 on the open market they decide to keep on working.
As always, the shops doing $1 Million to $3 Million per year gross income is still in demand. The price alone still is the main factor, in determining if these shops will sell. A good example of this is what is happening in lower Orange County. There are currently a couple of shops in Lower Orange County that are for sale, by the owners. They appear to be very profitable but the asking price is too high and the buyers all know it. Even the fact that these are the only shops available for sale in this prime area has not changed the fact that buyers just refuse to over pay.
Last year I was marketing a high volume shop, in Ventura County. The buyers refused to pay the asking price, even though the volume was there. Why? The profit wasn’t. In this situation, the buyers would not pay for the volume and stability of income unless the net profits were there. They didn’t assume that they would make a profit where the current owner was not. It appears that the buyers of today are very careful. I believe they do not trust their own ability to get new business and therefore are too careful.
To clear up any confusion about what kind of buyers we are talking about, lets break the buyers up into categories. The first category is the consolidators. There are two large ones in Southern California but they are not the whole market. I have talked to out of state consolidators that have inquired about moving in to the So California market. Consolidators want shops that fit their model. That model sometimes changes but basically they will buy a shop if it fits their model.
If it doesn’t, they will not touch it. The price by itself doesn’t turn their interest on or off. We do not have enough space to discuss what this group will buy, in this article. It is enough to say, “ If your shop fits their criteria they would have contacted you and expressed interest. If they haven’t contacted you, they are not interested.” Period! They know their market place and who is in it.
By the way, if I owned a shop that a consolidator wanted, I would never sell to them. Being a professional negotiator for 20 years, I find the requested seller financing terms totally unacceptable. When I have discovered what the terms of the sale are, after the fact, amazed me. I had buyers for the same money, or more, without the seller being at risk, but no one asked me.
The second category is the multiple location shop owners. Usually with one or more DRP contracts shop that wants to expand into more areas. They are very interested in the sq. footage of the shop, and its ability to handle over $2 Million Gross Income per year. This buyer only looks in limited areas. The areas being where they have been offered a DRP contract. When they are looking, they need it now, while the window of opportunity is open to them. If they can’t find it quick, they will not need it at all. Recently I had a multiple shop buyer who had made an offer and was negotiating on a shop in West Los Angeles. By the time we finished the negotiations, the DRP contract was gone and consequentially, so was the buyer.
The third category is the buyers who have worked in the industry before, but do not currently own a shop. Also in this group are the buyers who have family in the industry; money is no problem. This buyer believes “ If it doesn’t have a DRP, forget it. If it has a DRP and isn’t making much money, also forget it”. If it has a DRP, and it is making money, they are interested but only at what they consider is a fair price (In their eyes). This group I have successfully changed their mind as to how they analyze what a good shop looks like and on occasion they have bought shops with “a steady reliable income”, instead of trying to find a shop with only a DRP insurance contract.
The fourth category is the person that just wants a shop. They will do what they have to, to afford a shop-that will work for them. This group is the working body man or auto repair shop mechanic. Because of their limited funds, this buyer will only pay what he or she feels the equipment is worth. They will pay nothing for goodwill because they believe that the seller’s customers are not stable and will leave when the ownership changes. Are they wrong?
In Conclusion: There are a lot of buyers out there. My database has over 250 current names of body shop buyers. There is currently a shortage of shops for sale but mostly in the properly priced category. Most days I feel like a marriage broker with a lot of plain brides and a few beauties. The dowry for the beauties is more than most good-looking boys will pay. The balance of the girls may not be pretty, but some of them can sure cook. Anyone want to get married? “Have I got a girl for you”
hollywood shopping
Have you ever asked yourself the question? “Is this a good time to sell my business?” That is a question every business owner asks himself, every time he has a bad day. I once received e-mail from the editor of the Auto Body News, asking me that key question. “What is happening in the market today? Is this a good time to sell? ” My quick answer was “These are very interesting times.”
Of course that answer doesn’t tell you anything that you can get your teeth into. So! Let me clarify my answer. Since I have been selling body shops for 10 years, I have seen many changes in the body shop industry. One thing that hasn’t changed is that there have always been an abundance of both sellers and buyers. The buyers have always been, and still are picky about what they were looking for.
The perfect shop in the eyes to the buyers is (A) one that has a customer base and a revenue stream that is reliable and isn’t dependent on the owner being there to retain each individual customer, and. (B) doing a volume of at least $100,000 per month, but really much more. Large volume sellers think that if they have a DRP (Direct Repair Program,) they have what body shop buyers’ want. A DRP is where the insurance companies set up a relationship with the body shop to do all insured’s body shop business, much like an HMO in the health insurance field.
This may be what buyers want, but the DRP contracts are not automatically transferable, and a buyer will be very unhappy if the DRP leaves, the buyer, after they have paid a lot money for this “reliable revenue stream.” Smaller volume sellers, on the other-hand, not having corporate accounts, dealerships or other contracts still have hope for getting lots of money for their shops. The average shop I run across is only doing about $300,000-$500,000 annual gross income. So what we have is a situation where a lot of buyers are looking to buy a shop, but there are not a lot of shops available, which fit what they are, interested in-$1,500,000 annual gross income or more.
This year, one change has occurred. There are fewer shops available than at any time in my career. Not fewer of the large volume shops for sale, that is fairly stable, but fewer of the small mom and pop repair shops that have not been in heavy demand. The reason, I believe this has happened is because of the booming economy. Low volume shops are doing better than they have in years. They are making money, and do not feel as much pressure to close down. They still would like to get out, but when they find out that their 5,000 sq. foot shop which is making them a $100,000 net profit, is only worth $100,000 on the open market they decide to keep on working.
As always, the shops doing $1 Million to $3 Million per year gross income is still in demand. The price alone still is the main factor, in determining if these shops will sell. A good example of this is what is happening in lower Orange County. There are currently a couple of shops in Lower Orange County that are for sale, by the owners. They appear to be very profitable but the asking price is too high and the buyers all know it. Even the fact that these are the only shops available for sale in this prime area has not changed the fact that buyers just refuse to over pay.
Last year I was marketing a high volume shop, in Ventura County. The buyers refused to pay the asking price, even though the volume was there. Why? The profit wasn’t. In this situation, the buyers would not pay for the volume and stability of income unless the net profits were there. They didn’t assume that they would make a profit where the current owner was not. It appears that the buyers of today are very careful. I believe they do not trust their own ability to get new business and therefore are too careful.
To clear up any confusion about what kind of buyers we are talking about, lets break the buyers up into categories. The first category is the consolidators. There are two large ones in Southern California but they are not the whole market. I have talked to out of state consolidators that have inquired about moving in to the So California market. Consolidators want shops that fit their model. That model sometimes changes but basically they will buy a shop if it fits their model.
If it doesn’t, they will not touch it. The price by itself doesn’t turn their interest on or off. We do not have enough space to discuss what this group will buy, in this article. It is enough to say, “ If your shop fits their criteria they would have contacted you and expressed interest. If they haven’t contacted you, they are not interested.” Period! They know their market place and who is in it.
By the way, if I owned a shop that a consolidator wanted, I would never sell to them. Being a professional negotiator for 20 years, I find the requested seller financing terms totally unacceptable. When I have discovered what the terms of the sale are, after the fact, amazed me. I had buyers for the same money, or more, without the seller being at risk, but no one asked me.
The second category is the multiple location shop owners. Usually with one or more DRP contracts shop that wants to expand into more areas. They are very interested in the sq. footage of the shop, and its ability to handle over $2 Million Gross Income per year. This buyer only looks in limited areas. The areas being where they have been offered a DRP contract. When they are looking, they need it now, while the window of opportunity is open to them. If they can’t find it quick, they will not need it at all. Recently I had a multiple shop buyer who had made an offer and was negotiating on a shop in West Los Angeles. By the time we finished the negotiations, the DRP contract was gone and consequentially, so was the buyer.
The third category is the buyers who have worked in the industry before, but do not currently own a shop. Also in this group are the buyers who have family in the industry; money is no problem. This buyer believes “ If it doesn’t have a DRP, forget it. If it has a DRP and isn’t making much money, also forget it”. If it has a DRP, and it is making money, they are interested but only at what they consider is a fair price (In their eyes). This group I have successfully changed their mind as to how they analyze what a good shop looks like and on occasion they have bought shops with “a steady reliable income”, instead of trying to find a shop with only a DRP insurance contract.
The fourth category is the person that just wants a shop. They will do what they have to, to afford a shop-that will work for them. This group is the working body man or auto repair shop mechanic. Because of their limited funds, this buyer will only pay what he or she feels the equipment is worth. They will pay nothing for goodwill because they believe that the seller’s customers are not stable and will leave when the ownership changes. Are they wrong?
In Conclusion: There are a lot of buyers out there. My database has over 250 current names of body shop buyers. There is currently a shortage of shops for sale but mostly in the properly priced category. Most days I feel like a marriage broker with a lot of plain brides and a few beauties. The dowry for the beauties is more than most good-looking boys will pay. The balance of the girls may not be pretty, but some of them can sure cook. Anyone want to get married? “Have I got a girl for you”
hollywood shopping
Comments Off
Feb
28
Filed Under (Christmas) by shopping
Mayzie asked:
Where do you find reasonable deals and shopping for the whole family? Thanks!
shopping service
Where do you find reasonable deals and shopping for the whole family? Thanks!
shopping service
Feb
27
Filed Under (Yahoo! Shopping) by shopping
varsity282 asked:
I’m planning on going to the philippines to have a shopping spree, is it better to go there (i’m in australia, plane fees, etc. aren’t a problem) or to shop online?
I’m planning on going to the philippines to have a shopping spree, is it better to go there (i’m in australia, plane fees, etc. aren’t a problem) or to shop online?
if you choose going to philippines, places to shop please. 
if you choose shopping online, websites please.
please and thanks you, cheers.
tanforan shopping
Feb
04
Filed Under (Tech) by shopping
ciscovid asked:
bit.ly Try on the latest innovations from Cisco, and see how the changing room is really changing.
adult shopping
Feb
01
Filed Under (Environment) by shopping
John Stilos asked:
1. Shopping local creates jobs.
Shops in our town create local employment and self-employment. These people in turn spend in the local economy. It is a healthy cyclical movement that depends on where we make our purchases to stay healthy.
2. Local independent shops invest more in our communities.
Local businesses are usually more generous in their support of local charities, schools, and community events. So supporting local shops means a financial impact on our community.
3. Local shops sell a wide range of great products at affordable prices.
Many people get out of the habit of shopping locally and are then surprised by the range of products and services available. Don’t get brainwashed by the big-box advertising, not everything is cheaper at the chain stores, especially when you think of the down-stream affects of the purchase.
4. Shopping local supports entrepreneurship
Entrepreneurship fuels our local economic innovation and prosperity, and serves as a key means for families to move out of low-wage jobs and into the middle class.
5. Shopping local retains our communities.
People don’t like losing shops and services in small towns but don’t equate this to how they spend their money. We have the power, every purchase is a vote for the company or companies that we want to have around tommorow.
6. Shopping Local retains our distinctiveness.
Independent shops create distinctive shopping experiences and stock different products. Local businesses respond more quickly to the needs of local customers, stocking products to meet the changing population needs.
7. Shopping local saves the environment.
Local shops often stock a high percentage of local sourced goods which do not require long truck journeys thus having a smaller carbon footprint. Many local shops have P2, recycling and product life-cycle programs in place. Ask about what your favorite local shop is doing to be green, and make sure and reinforce it with a thumbs up and a thank you!
8. Local shops are for everyone.
Most people can get to their local shops easily on foot, bike or bus and this is especially important for the elderly and young people and those without transportation.
9. Local shops value you more.
These businesses survive by their reputation and repeat business which means you get a higher standard of service. You can build a relationship at a local shop. Isn’t it nice to be greeted by name by the owner and be told, “oh, I just got something in that your spouse will just love, let me show it to you!”
10. Shopping local saves services.
Private and public services cluster around shops. As shops disappear so do hairdressers, cleaning services, and restaurants, etc. The very life-blood of our community is the network of local services that depend on our patronage to local shops for their survival.
Next shopping trip, remember a dollar spent locally has a return on investment to you and your children’s heritage many times what one Washington would do at a big-box store. Go local; Go sustainable!
shopping reviews
1. Shopping local creates jobs.
Shops in our town create local employment and self-employment. These people in turn spend in the local economy. It is a healthy cyclical movement that depends on where we make our purchases to stay healthy.
2. Local independent shops invest more in our communities.
Local businesses are usually more generous in their support of local charities, schools, and community events. So supporting local shops means a financial impact on our community.
3. Local shops sell a wide range of great products at affordable prices.
Many people get out of the habit of shopping locally and are then surprised by the range of products and services available. Don’t get brainwashed by the big-box advertising, not everything is cheaper at the chain stores, especially when you think of the down-stream affects of the purchase.
4. Shopping local supports entrepreneurship
Entrepreneurship fuels our local economic innovation and prosperity, and serves as a key means for families to move out of low-wage jobs and into the middle class.
5. Shopping local retains our communities.
People don’t like losing shops and services in small towns but don’t equate this to how they spend their money. We have the power, every purchase is a vote for the company or companies that we want to have around tommorow.
6. Shopping Local retains our distinctiveness.
Independent shops create distinctive shopping experiences and stock different products. Local businesses respond more quickly to the needs of local customers, stocking products to meet the changing population needs.
7. Shopping local saves the environment.
Local shops often stock a high percentage of local sourced goods which do not require long truck journeys thus having a smaller carbon footprint. Many local shops have P2, recycling and product life-cycle programs in place. Ask about what your favorite local shop is doing to be green, and make sure and reinforce it with a thumbs up and a thank you!
8. Local shops are for everyone.
Most people can get to their local shops easily on foot, bike or bus and this is especially important for the elderly and young people and those without transportation.
9. Local shops value you more.
These businesses survive by their reputation and repeat business which means you get a higher standard of service. You can build a relationship at a local shop. Isn’t it nice to be greeted by name by the owner and be told, “oh, I just got something in that your spouse will just love, let me show it to you!”
10. Shopping local saves services.
Private and public services cluster around shops. As shops disappear so do hairdressers, cleaning services, and restaurants, etc. The very life-blood of our community is the network of local services that depend on our patronage to local shops for their survival.
Next shopping trip, remember a dollar spent locally has a return on investment to you and your children’s heritage many times what one Washington would do at a big-box store. Go local; Go sustainable!
shopping reviews
Comments Off
Jan
31
Filed Under (Small Business) by shopping
deepseaofblankets asked:
Are you a mid level web designer? I need a suggestion for an affordable and simple shopping cart. Easiest to use, install, maintain, etc. I’m a graphics person and know some HTML and JAVA script coding but not PHP. Used PayPal before, so need something a little more robust. Thanks for reading!
eastgate shopping center
Are you a mid level web designer? I need a suggestion for an affordable and simple shopping cart. Easiest to use, install, maintain, etc. I’m a graphics person and know some HTML and JAVA script coding but not PHP. Used PayPal before, so need something a little more robust. Thanks for reading!
eastgate shopping center
Jan
29
Filed Under (Pregnancy) by shopping
Playboy Bunny asked:
I am 4 weeks and 6 days pregnant. I am so excited. When did you start shopping? When should I start shopping?
kids shopping
I am 4 weeks and 6 days pregnant. I am so excited. When did you start shopping? When should I start shopping?
kids shopping
Dec
21
Filed Under (Comedy) by shopping
mecfc asked:
Tom Stade on shopping habits on the high streets
forum shopping center
Dec
20
Filed Under (Online Business) by shopping
masterlistbuilder felipe asked:
At a quick span of time, ecommerce boomed in the world of the internet conquering every mindset of online marketers. Everybody had been informed on to what is e-commerce and what can it do for them. This new breakthrough in the world of ecommerce is due to the existence of Shopping Carts or Shopping Cart Software.
Shopping Cart Software acts as a new gateway for success to everyone who wants to venture in the world of internet marketing. Once an internet guru said that if you have a website and if you want to design then it is a commandment to have a shopping cart, and of you go to success. Your online business will surely be a blast.
Online Shopping Cart Solution automates one’s business in a full package with maintenance and credibility to handle orders. You just need to check it for a while. Many Successful Internet Marketers owe their success to their shopping carts. You can be one of them too or even better than them.
Basic functioning of shopping carts
Web Hosting Shopping carts gives you your own merchant account that will serve as your keystone in handling your shopping cart. Merchant Account Services offers great opportunities to automate your business in a way you never did before. Having your own merchant account instead of just having an affiliate earning will probably make your way to success.
Ecommerce Software shopping carts are equipped with a database which stores all transaction related information like customer details, order details along with the product details. There is also a storefront facility available here with the functionality of storing visitor details. Besides, you can manage your stores using the administration panel that allows you to add new products, set up an account, to process orders and manage payments and include shipping options. Indeed, having a shopping cart is the internet marketing strategy of the new era.
Thus, when a customer requests for a specific web page, all the real time information about the item or a product is displayed by the shopping cart software. This is done by retrieving the required data from the database which is generated by the web server based on the customer’s request, with the updated information that is currently available. This process if what you called e-commerce web site hosting.
What all benefits can you reap through it?
We, all believe that there’ a lot of online business opportunity than in real world. Mainly because, you can connect to potential customers all across the globe and start carving a niche for your business without having personal contact with them. This would be the beginning of your online venture. With a Shopping cart software, you can probably sell your products/services to a person from the part of your nation or be it continent or any other part of the world - something you could have ever thought of. With strategic internet marketing, thing will go your way and probably make money fast.
Another instance that can be identified here is - if you already have an online presence through a website that you own, you can possibly extend the benefits of the same using shopping cart software. Ecommerce hosting solution in the internet is one of the cheapest platforms to advertise your products. And probably that could be the sole reason you might have started for your online venture - to advertise your products/services. That’s the role of e-marketing and shopping carts help this to be accomplished. Using the shopping cart software, you can easily advertise and sell your products/services all along.
That’s the power of the shopping cart software and the power of it to make your business more visible. The possibilities of extending the list of benefits of using shopping cart software effectively to promote your online business are unending.
Some of them can be listed as:
- Shopping cart software makes the online shopping a lot easier for your customers.
- Shopping cart software imparts a professional touch to your website, boosting your online presence.
- You can easily integrate your shopping cart with multiple payment processors, making a lot easier for your customers to choose the payment mode.
- There’s your own autoresponders in the shopping cart and a new way of handling your affiliates.
There’s more in store for you when you have a shopping cart system. You’ll probably be rolling with money because of your online business in quick time. Experience online shopping like you never did before. Experience shopping cart, the gateway for success.
usa shopping
At a quick span of time, ecommerce boomed in the world of the internet conquering every mindset of online marketers. Everybody had been informed on to what is e-commerce and what can it do for them. This new breakthrough in the world of ecommerce is due to the existence of Shopping Carts or Shopping Cart Software.
Shopping Cart Software acts as a new gateway for success to everyone who wants to venture in the world of internet marketing. Once an internet guru said that if you have a website and if you want to design then it is a commandment to have a shopping cart, and of you go to success. Your online business will surely be a blast.
Online Shopping Cart Solution automates one’s business in a full package with maintenance and credibility to handle orders. You just need to check it for a while. Many Successful Internet Marketers owe their success to their shopping carts. You can be one of them too or even better than them.
Basic functioning of shopping carts
Web Hosting Shopping carts gives you your own merchant account that will serve as your keystone in handling your shopping cart. Merchant Account Services offers great opportunities to automate your business in a way you never did before. Having your own merchant account instead of just having an affiliate earning will probably make your way to success.
Ecommerce Software shopping carts are equipped with a database which stores all transaction related information like customer details, order details along with the product details. There is also a storefront facility available here with the functionality of storing visitor details. Besides, you can manage your stores using the administration panel that allows you to add new products, set up an account, to process orders and manage payments and include shipping options. Indeed, having a shopping cart is the internet marketing strategy of the new era.
Thus, when a customer requests for a specific web page, all the real time information about the item or a product is displayed by the shopping cart software. This is done by retrieving the required data from the database which is generated by the web server based on the customer’s request, with the updated information that is currently available. This process if what you called e-commerce web site hosting.
What all benefits can you reap through it?
We, all believe that there’ a lot of online business opportunity than in real world. Mainly because, you can connect to potential customers all across the globe and start carving a niche for your business without having personal contact with them. This would be the beginning of your online venture. With a Shopping cart software, you can probably sell your products/services to a person from the part of your nation or be it continent or any other part of the world - something you could have ever thought of. With strategic internet marketing, thing will go your way and probably make money fast.
Another instance that can be identified here is - if you already have an online presence through a website that you own, you can possibly extend the benefits of the same using shopping cart software. Ecommerce hosting solution in the internet is one of the cheapest platforms to advertise your products. And probably that could be the sole reason you might have started for your online venture - to advertise your products/services. That’s the role of e-marketing and shopping carts help this to be accomplished. Using the shopping cart software, you can easily advertise and sell your products/services all along.
That’s the power of the shopping cart software and the power of it to make your business more visible. The possibilities of extending the list of benefits of using shopping cart software effectively to promote your online business are unending.
Some of them can be listed as:
- Shopping cart software makes the online shopping a lot easier for your customers.
- Shopping cart software imparts a professional touch to your website, boosting your online presence.
- You can easily integrate your shopping cart with multiple payment processors, making a lot easier for your customers to choose the payment mode.
- There’s your own autoresponders in the shopping cart and a new way of handling your affiliates.
There’s more in store for you when you have a shopping cart system. You’ll probably be rolling with money because of your online business in quick time. Experience online shopping like you never did before. Experience shopping cart, the gateway for success.
usa shopping
Comments Off
Dec
15
Filed Under (Customer Service) by shopping
Veysel asked:
INTRODUCTION
Structural Equation Modelling (SEM) is a comprehensive statistical method used in testing hypotheses about causal relationships among observed and unobserved (latent) variables and has proved useful in solving the problems in formulating theoretical constructions (Reisinger,1999). Its function have found to be better than other multivariate statistics techniques which including multiple regression, path analysis and factor analysis. Other statistics techniques could not take into consideration due to the interaction effects among depend and independent variables. Therefore, a method that can examine a series of dependence relationships simultaneously helps to address complicated managerial and behavioural issues. SEM also can expand the explanatory ability and statistical efficiency for model testing with a single comprehensive method (Pang, 1996).
Steenkamp and Baumgartner (2000) reflect on the role SEM in marketing modelling and managerial decision making. They discuss some benefits of it. They said that although SEM has potential for decision support modelling, it is probably most useful for theory testing, which is a key phase in developing marketing models [For SEM and LISREL see; Byrne (1998), Cheng (2001), Cudeck et al. (200), Hayduk (1987), Joreskog and Sorbom (2001)].
Applied to data on attitudes, perceptions, stated behavioural intentions, and actual behaviour, SEM can be used to specify and test alternative causal hypotheses. It has been found that, as might be expected, causality is often mutual. The assumption that behaviour is influenced by attitudes, perceptions, and behavioural intentions without feedbacks does not hold up when tested using SEM. These results challenge the assumption, held by some, that stated preference choices can be directly scaled into revealed-preference choice models. It was used path analysis to demonstrate empirical evidence that the causal link from choice behaviour to attitudes is stronger than the link from attitudes to choice behaviour. Subsequent studies using different forms of simultaneous equation modelling showed consistently that attitudes, especially perceptions, are conditioned by choices, while at the same time, attitudes affect choices (Golob, 2001b) . Gärling et al. (2001) explores decision making involving driving choices by using a SEM with latent variables to test links among attitude towards driving, frequency of choice of driving, and revealed presence of a certain type of decision process known as script-based. Golob (2001a) tested a series of joint models of attitude and behaviour to explain how both mode choice and attitudes. Applying Weighted Least Squares (WLS) estimation to a data set from San Diego California, the author demonstrates that choices appear to influence some opinions and perceptions, but other opinions and perceptions are independent of behaviour and dependent only upon exogenous personal and household variables. None of the models tested found any significant effects of attitudes on choice.
Most papers written have focused on the variables explaining the attraction of shopping center choice [ For exammple;Suarez et al.( 2004), Degeratu et al. (2000),Severin et al. (2001) ]. They have always used logit models and random effect model. Degeratu et al. (2000) focus specifically on assessing whether brand names and price have impact on choices online and traditional supermarkets. Severin et al. (2000) investigated use of relatively recent developments in random utility theory to assess the stability over time and space of the preferences underlying retail-shopping choice. They found that good quality, wide selection, good service, nice atmosphere and convenient location were significant choice of retail shopping center model. They noted that high and low prices and latest fashion were not consistently significant in the separate years models. They also showed that convenient location had the largest impact on the shopping center choices.
METHOD
The study has been designed to research factors which consumers consider while choosing shopping centers and to develop a suggestion model for shopping center choice. Beside demographic questions, effective factors determining peoples’ shopping center choice were asked and for 17 items, answers were taken with composed of five Likert-scale (5=very important and very unimportant ). These items are given in Table 1.
Reliability coefficient of questionnaire was calculated as Cronbach =0.79. When the items reduced alpha value were deleted reliability coefficient increased to 0.81. In this study, latent structure is composed of choosing shopping center (E) and explanatory structures are composed of features of materials sold (A), Attitude and behaviour of staff (B), Geographic location of shopping center (C), Easement of Price (D), Regularity at the shopping center (F). The structure, composed of relationship of assumed 5 independent latent variables (A,B,C,D and F) to one dependent latent variable (E) constitute the model to be tested. Hypothesis developed to test the relationship among the latent constructs are given below:
H1 ; There is a significant relationship between choosing shopping center and features of materials sold at the center.
H2 ; There is a significant relationship between choosing shopping center and attitude and behaviour of staff,
H3 ; There is a significant relationship between choosing shopping center and geographic location of the center.
H4 ; There is a significant relationship between choosing shopping center and easement of Price.
H5 ; There is a significant relationship between choosing shopping center and regularity at the shopping center.
FINDINGS AND DISCUSSION
In this study, four models related to latent variables assumed affected to a choose shopping center have been tested by using LISREL computer program with SEM. At first, Model M1, in which all independent variables took place, has been analysed. Analysis results are given in Table 1. When the Table 1 analysis results for M1 are investigated, it is seen that A,B,D and F latent variables are not significant, goodness of fit index are close to acceptable limits and explanatory ability is 52%. Path diagram for M1 is given in Figure 1. Finally, when the M2 results, found by subtracting B, D an F from model, are observed it is seen that A and C parameter estimates are significant and fitness criteria are in the acceptable limits. R2 values of analysed models are calculated as 0.52 and 0.77 respectively. When the best proper model, M2, is observed, 77 % of the dependent latent variable that is choosing shopping center is explained with A and C independent latent constructs. H2, H4 and H5 assumptions for M2 have not been approved. Path diagram for M2 is given in Figure 2, parameter estimates of the model and t values are given in Table 2. Parameter estimates for A-E and C-E relationships in Table 2 and Fig.2 are 0.67 and 0.50, respectively. These coefficients are positive and statistically significant. Analysed models results show that closeness to the address, discount card application, market image and easement of access to the shopping center, respectively form the priority in preference of consumer choice of shopping center. Besides, advertisement of the shopping center and neighbor advice take important role in choice. Findings revealed that behaviour of sales staff at the shopping center and discount cards increase preferability; on the other hand, easement of access and closeness to their addresses take priority in choosing shopping center relative to easement of price.
CONCLUSION
In conclusion, dependent latent variable that is choice of shopping center can be explained with a rate of 77% through independent latent variables i.e. features of materials sold and geographic location of the shopping center. The meaning of unexplained part with 23% is that the consumers choose shopping center considering other factors which are not taken into account in this study. The M2, found the best model in the study, is a suggestion model which depends upon a few amount of data set. It is possible to reach models having high rates by increasing data amount with alternative models.
Table 1- Items related to shopping center choice (Model 1 )
Estimation of parameter t-value
A- Features of materials sold (A)0.341.42
Brand name of materials sold (A1)0.31**3.99
Quality of materials sold (A2)0.46***7.80
Low Prices (A3)0.071.29
Wide selection (A4)0.27**5.09
B- Attitude and behaviour of staff (B)0.010.03
Behaviour of sales staff (B1)0.51***11.3
Geniality of staff (B2)0.53***11.6
C-Geographic location ( C)0.41**3.08
Closeness to the address (C1)0.67***8.64
Easement of access (C2)0.70***9.45
D- Easement of Price (D)0.26*2.06
Payment shape (D1)0.35**5.83
Promotion on selling (D2)0.58**7.30
Discount card (D3)0.69***9.22
F-Regularity (F)-0.06-0.3
Well-organized (F1)0.42***8.45
Moving at the shopping center
without difficulty (F2)0.43***8.36
E-Choosing shopping center (E )
Neighbor advice (E1)0.60
Advertisement (E2)0.59**6.42
Image (E3)0.61**6.55
*p0.05, **p0.01, ***p0.001
Fig.1. Path diagram for M1 Model
Goodness of Fit:NFI: 0.85, NNFI: 0.87, CFI: 0.90, GFI: 0.91, AGFI: 0.87, 2 /df= 2.21
Table 2- Items related to shopping center choice (Model 2)
Estimation of parameter t-value
A- Features of materials sold (A)0.67**4.76
Brand name of materials sold (A1)0.61**5.83
Quality of materials sold (A2)0.25**4.34
Wide selection (A4)0.17*2.79
C-Geographic location ( C)0.50**4.11
Closeness to the address (C1)0.66***7.81
Easement of access (C2)0.71***8.59
E-Choosing shopping center (E)
Neighbor advice (E1)0.53
Advertisement (E2)0.62**6.17
Image (E3)0.64**6.29
*p0.05, **p0.01, ***p0.001
Fig.2. Path diagram for M2 Model
Goodness of Fit:NFI: 0.80, NNFI: 0.79, CFI: 0.87, GFI: 0.94, AGFI: 0.88, 2 /df= 3.42
REFERENCES
Byrne, B.M. (1998). Structural Equation Modeling with LISREL, PRELIS, and SIMPLIS: Basıc concepts, Applications, and Programming, New Jersey : Lawrence Erbaum Associates Publisher.
Cheng, E.W.L. (2001). SEM Being more Effective than Multiple Regression in Parsimonious Model Testing for Management Devolopment Research. Journal of Management Development. 20 (7) , 650-667.
Cudeck, R., Toit, D.S. & Sörbom, D. (2000). Structural Equation Modeling: Present and Future, Scientific Software International Inc.
Degeratu, A.M. , Rangaswamy, A. & Wu, J. (2000). Consumer choice behavior in the online and traditional supermarkets: The effects of brand name, price and other search attributes. Intern. J. of Research in Marketing, 17, 55-78.
Hayduk L.A. (1987). Structural Equation Modeling with LISREL Essential and Advances. The John Hopkins University Press.
Gärling, T., S. Fujii & Boe, O. (2001). Empirical tests of a model of determinants of script-based driving choice. Transportation Research F. 4, 89-102
Golob, T.F., 2001(a). Joint models of attitudes and behavior in evaluation of the San Diego I-15 Congestion Pricing Project. Transportation Research A 35, 495-514.
Golob T.F.,2001(b). Structural Equation Modeling for Travel Behavior Research. UCI-ITS-WP-AS-01-2, Center for Activity Systems Analysis Institute of Transportation Studies University of California, Irvine; Irvine, CA 92697-3600, U.S.A., November 2001, Institute of Transportation Studies University of California.
Joreskog, K. & Sorbom, D. (2001). LISREL 8: User’s Reference Guide, Scientific Software International Inc.
Pang, N.S.K. (1996). School Values and Teachers’ Feelings: a LISREL model. Journal of Educational Administration. 34 (2), 64-83.
Reisinger, Y. & Turner, L. (1999). Structural Equation Modeling with LISREL: Aplication in Tourism., Tourism Management. .20, 71-88.
Suárez, A. , Rodríguez del Bosque, I. , Rodríguez-Poo, J.M. & Moral, I., (2004). Accounting for heterogeneity in shopping centre choice models. Intern. J. of Research in Marketing, 11, 119-129.
Severin V., Louviere, J.J & Finn, A.(2001). The stability of retail shopping choices over time and across countries. Journal of Retailing, 77, 185-202.
Steenkamp, B.E.M. & Baumgartner, H. (2000). On the use of structural equation models for marketing modeling. Intern. J. of Research in Marketing, 17, 195-202.
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INTRODUCTION
Structural Equation Modelling (SEM) is a comprehensive statistical method used in testing hypotheses about causal relationships among observed and unobserved (latent) variables and has proved useful in solving the problems in formulating theoretical constructions (Reisinger,1999). Its function have found to be better than other multivariate statistics techniques which including multiple regression, path analysis and factor analysis. Other statistics techniques could not take into consideration due to the interaction effects among depend and independent variables. Therefore, a method that can examine a series of dependence relationships simultaneously helps to address complicated managerial and behavioural issues. SEM also can expand the explanatory ability and statistical efficiency for model testing with a single comprehensive method (Pang, 1996).
Steenkamp and Baumgartner (2000) reflect on the role SEM in marketing modelling and managerial decision making. They discuss some benefits of it. They said that although SEM has potential for decision support modelling, it is probably most useful for theory testing, which is a key phase in developing marketing models [For SEM and LISREL see; Byrne (1998), Cheng (2001), Cudeck et al. (200), Hayduk (1987), Joreskog and Sorbom (2001)].
Applied to data on attitudes, perceptions, stated behavioural intentions, and actual behaviour, SEM can be used to specify and test alternative causal hypotheses. It has been found that, as might be expected, causality is often mutual. The assumption that behaviour is influenced by attitudes, perceptions, and behavioural intentions without feedbacks does not hold up when tested using SEM. These results challenge the assumption, held by some, that stated preference choices can be directly scaled into revealed-preference choice models. It was used path analysis to demonstrate empirical evidence that the causal link from choice behaviour to attitudes is stronger than the link from attitudes to choice behaviour. Subsequent studies using different forms of simultaneous equation modelling showed consistently that attitudes, especially perceptions, are conditioned by choices, while at the same time, attitudes affect choices (Golob, 2001b) . Gärling et al. (2001) explores decision making involving driving choices by using a SEM with latent variables to test links among attitude towards driving, frequency of choice of driving, and revealed presence of a certain type of decision process known as script-based. Golob (2001a) tested a series of joint models of attitude and behaviour to explain how both mode choice and attitudes. Applying Weighted Least Squares (WLS) estimation to a data set from San Diego California, the author demonstrates that choices appear to influence some opinions and perceptions, but other opinions and perceptions are independent of behaviour and dependent only upon exogenous personal and household variables. None of the models tested found any significant effects of attitudes on choice.
Most papers written have focused on the variables explaining the attraction of shopping center choice [ For exammple;Suarez et al.( 2004), Degeratu et al. (2000),Severin et al. (2001) ]. They have always used logit models and random effect model. Degeratu et al. (2000) focus specifically on assessing whether brand names and price have impact on choices online and traditional supermarkets. Severin et al. (2000) investigated use of relatively recent developments in random utility theory to assess the stability over time and space of the preferences underlying retail-shopping choice. They found that good quality, wide selection, good service, nice atmosphere and convenient location were significant choice of retail shopping center model. They noted that high and low prices and latest fashion were not consistently significant in the separate years models. They also showed that convenient location had the largest impact on the shopping center choices.
METHOD
The study has been designed to research factors which consumers consider while choosing shopping centers and to develop a suggestion model for shopping center choice. Beside demographic questions, effective factors determining peoples’ shopping center choice were asked and for 17 items, answers were taken with composed of five Likert-scale (5=very important and very unimportant ). These items are given in Table 1.
Reliability coefficient of questionnaire was calculated as Cronbach =0.79. When the items reduced alpha value were deleted reliability coefficient increased to 0.81. In this study, latent structure is composed of choosing shopping center (E) and explanatory structures are composed of features of materials sold (A), Attitude and behaviour of staff (B), Geographic location of shopping center (C), Easement of Price (D), Regularity at the shopping center (F). The structure, composed of relationship of assumed 5 independent latent variables (A,B,C,D and F) to one dependent latent variable (E) constitute the model to be tested. Hypothesis developed to test the relationship among the latent constructs are given below:
H1 ; There is a significant relationship between choosing shopping center and features of materials sold at the center.
H2 ; There is a significant relationship between choosing shopping center and attitude and behaviour of staff,
H3 ; There is a significant relationship between choosing shopping center and geographic location of the center.
H4 ; There is a significant relationship between choosing shopping center and easement of Price.
H5 ; There is a significant relationship between choosing shopping center and regularity at the shopping center.
FINDINGS AND DISCUSSION
In this study, four models related to latent variables assumed affected to a choose shopping center have been tested by using LISREL computer program with SEM. At first, Model M1, in which all independent variables took place, has been analysed. Analysis results are given in Table 1. When the Table 1 analysis results for M1 are investigated, it is seen that A,B,D and F latent variables are not significant, goodness of fit index are close to acceptable limits and explanatory ability is 52%. Path diagram for M1 is given in Figure 1. Finally, when the M2 results, found by subtracting B, D an F from model, are observed it is seen that A and C parameter estimates are significant and fitness criteria are in the acceptable limits. R2 values of analysed models are calculated as 0.52 and 0.77 respectively. When the best proper model, M2, is observed, 77 % of the dependent latent variable that is choosing shopping center is explained with A and C independent latent constructs. H2, H4 and H5 assumptions for M2 have not been approved. Path diagram for M2 is given in Figure 2, parameter estimates of the model and t values are given in Table 2. Parameter estimates for A-E and C-E relationships in Table 2 and Fig.2 are 0.67 and 0.50, respectively. These coefficients are positive and statistically significant. Analysed models results show that closeness to the address, discount card application, market image and easement of access to the shopping center, respectively form the priority in preference of consumer choice of shopping center. Besides, advertisement of the shopping center and neighbor advice take important role in choice. Findings revealed that behaviour of sales staff at the shopping center and discount cards increase preferability; on the other hand, easement of access and closeness to their addresses take priority in choosing shopping center relative to easement of price.
CONCLUSION
In conclusion, dependent latent variable that is choice of shopping center can be explained with a rate of 77% through independent latent variables i.e. features of materials sold and geographic location of the shopping center. The meaning of unexplained part with 23% is that the consumers choose shopping center considering other factors which are not taken into account in this study. The M2, found the best model in the study, is a suggestion model which depends upon a few amount of data set. It is possible to reach models having high rates by increasing data amount with alternative models.
Table 1- Items related to shopping center choice (Model 1 )
Estimation of parameter t-value
A- Features of materials sold (A)0.341.42
Brand name of materials sold (A1)0.31**3.99
Quality of materials sold (A2)0.46***7.80
Low Prices (A3)0.071.29
Wide selection (A4)0.27**5.09
B- Attitude and behaviour of staff (B)0.010.03
Behaviour of sales staff (B1)0.51***11.3
Geniality of staff (B2)0.53***11.6
C-Geographic location ( C)0.41**3.08
Closeness to the address (C1)0.67***8.64
Easement of access (C2)0.70***9.45
D- Easement of Price (D)0.26*2.06
Payment shape (D1)0.35**5.83
Promotion on selling (D2)0.58**7.30
Discount card (D3)0.69***9.22
F-Regularity (F)-0.06-0.3
Well-organized (F1)0.42***8.45
Moving at the shopping center
without difficulty (F2)0.43***8.36
E-Choosing shopping center (E )
Neighbor advice (E1)0.60
Advertisement (E2)0.59**6.42
Image (E3)0.61**6.55
*p0.05, **p0.01, ***p0.001
Fig.1. Path diagram for M1 Model
Goodness of Fit:NFI: 0.85, NNFI: 0.87, CFI: 0.90, GFI: 0.91, AGFI: 0.87, 2 /df= 2.21
Table 2- Items related to shopping center choice (Model 2)
Estimation of parameter t-value
A- Features of materials sold (A)0.67**4.76
Brand name of materials sold (A1)0.61**5.83
Quality of materials sold (A2)0.25**4.34
Wide selection (A4)0.17*2.79
C-Geographic location ( C)0.50**4.11
Closeness to the address (C1)0.66***7.81
Easement of access (C2)0.71***8.59
E-Choosing shopping center (E)
Neighbor advice (E1)0.53
Advertisement (E2)0.62**6.17
Image (E3)0.64**6.29
*p0.05, **p0.01, ***p0.001
Fig.2. Path diagram for M2 Model
Goodness of Fit:NFI: 0.80, NNFI: 0.79, CFI: 0.87, GFI: 0.94, AGFI: 0.88, 2 /df= 3.42
REFERENCES
Byrne, B.M. (1998). Structural Equation Modeling with LISREL, PRELIS, and SIMPLIS: Basıc concepts, Applications, and Programming, New Jersey : Lawrence Erbaum Associates Publisher.
Cheng, E.W.L. (2001). SEM Being more Effective than Multiple Regression in Parsimonious Model Testing for Management Devolopment Research. Journal of Management Development. 20 (7) , 650-667.
Cudeck, R., Toit, D.S. & Sörbom, D. (2000). Structural Equation Modeling: Present and Future, Scientific Software International Inc.
Degeratu, A.M. , Rangaswamy, A. & Wu, J. (2000). Consumer choice behavior in the online and traditional supermarkets: The effects of brand name, price and other search attributes. Intern. J. of Research in Marketing, 17, 55-78.
Hayduk L.A. (1987). Structural Equation Modeling with LISREL Essential and Advances. The John Hopkins University Press.
Gärling, T., S. Fujii & Boe, O. (2001). Empirical tests of a model of determinants of script-based driving choice. Transportation Research F. 4, 89-102
Golob, T.F., 2001(a). Joint models of attitudes and behavior in evaluation of the San Diego I-15 Congestion Pricing Project. Transportation Research A 35, 495-514.
Golob T.F.,2001(b). Structural Equation Modeling for Travel Behavior Research. UCI-ITS-WP-AS-01-2, Center for Activity Systems Analysis Institute of Transportation Studies University of California, Irvine; Irvine, CA 92697-3600, U.S.A., November 2001, Institute of Transportation Studies University of California.
Joreskog, K. & Sorbom, D. (2001). LISREL 8: User’s Reference Guide, Scientific Software International Inc.
Pang, N.S.K. (1996). School Values and Teachers’ Feelings: a LISREL model. Journal of Educational Administration. 34 (2), 64-83.
Reisinger, Y. & Turner, L. (1999). Structural Equation Modeling with LISREL: Aplication in Tourism., Tourism Management. .20, 71-88.
Suárez, A. , Rodríguez del Bosque, I. , Rodríguez-Poo, J.M. & Moral, I., (2004). Accounting for heterogeneity in shopping centre choice models. Intern. J. of Research in Marketing, 11, 119-129.
Severin V., Louviere, J.J & Finn, A.(2001). The stability of retail shopping choices over time and across countries. Journal of Retailing, 77, 185-202.
Steenkamp, B.E.M. & Baumgartner, H. (2000). On the use of structural equation models for marketing modeling. Intern. J. of Research in Marketing, 17, 195-202.
kids shopping
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