a study of attributes attracting the residential property buyer for

*Corresponding author: Kadambini Kumari

Dr D. Y. Patil Vidhyapeeth, Pimpri, Pune

ISSN: 0976-3031

Research Article

A STUDY OF ATTRIBUTES ATTRACTING THE RESIDENTIAL PROPERTY

BUYER FOR PURCHASING DECISION

*Kadambini Kumari and Vidya Nakhate

Dr D. Y. Patil Vidhyapeeth, Pimpri, Pune

DOI: http://dx.doi.org/10.24327/ijrsr.2017.0803.0100

ARTICLE INFO ABSTRACT

According to the report published by Economic Times Reality dated Jan 2016, in year 2015 56%

unsold inventory in Pune, Average pricing measure across 3,312 projects with average increase of

Rs. 35 per square feet. So all the above statistics said that market is saturated, demand & supply

equation is preferable for buyers. Products are not able to sale themselves alone, service need to be

more customer centric to differentiate themselves & positioning has to be unique. All the builders

have similar location, same facilities in terms of offers on amenities with similar pricing. What to do

next with this standardization in the product offers, the service approach become critical to attract

buyers for purchasing decision.

This paper is focus on the categorizing the buyers into different segment based on demographics.

Study was done on analysing preference on attributes in terms of Product & service. Attractiveness

of attributes differently trigger the different segment so mapping of attributes with buyer

segmentation.

The study was conducted for 205 respondents of Pune from PCMC. It is also observed that most of

the consumer bought the property for residential use and it seem to be not effected by their income.

The product and the service are effective when it comes to the buying behaviour of the consumer

and in most cases completed projects were preferred and it took around 6 months to 1 years for the

consumer to buy. Social network has been voted as the most preferred source of information by age

group of 20-40yrs.So investing on social networking will be future of buyer preference for

information search Income plays very important role on attributes preference in product & service

attributes. According to the income preference change significantly on attributes preference also.

INTRODUCTION

As per the Gera Report, unsold housing units in the region

including, Pimpri-Chinchwad increased to 56 per cent in 2015

as compared to the previous year. The region witnessed the sale

of 88,815 units in 2015 as against 98,968 housing units sold in

2014, the report said. However, despite the dip in the sales with

increased unsold stocks, developers are still optimistic about

better sales in future and are not ready for any significant price

correction.

As per the report, the average property prices measured across

3,312 projects in the PuneMetropolitan Region increased by

only Rs 35 per square feet to Rs 5,096 per square feet.

According to the Pune’s real estate market over the past few

years has been witnessing a steady slowdown. The market,

which normally sees absorption of around 20,000-22,000 units

every six months, has been witnessing absorption of lesser than

15,000 units on a half-yearly basis. While realtors blame the

wait-and-watch policy of buyers and the global slowdown for

the trend, buyers on the other hand blame artificial inflation in

the market for deferring their investments. All this result in

slow down the sales & increase in inventory.

Analysis done by 99 acres after the government announcement

on demonetization of currency notes of Rs. 500 & Rs. 1000

will have impact on following five parameters.

 Short term cash crunch & transactional problem

 End of Corruption in real estate

 Enhance transparency

 Greater foreign investment

 Reduce price & realistic pricing

All this has its pros on cons in short team but definitely

beneficial for long term growth for economical point of view &

as well as buyers point of view. All this leads to be more heat-

up on buying behavioural approach for decision making.

Buyers become more calculative, having fair choices & buying

Available Online at http://www.recentscientific.com

International Journal of

Recent Scientific

Research

International Journal of Recent Scientific Research

Vol. 8, Issue, 3, pp. 16211-16215, March, 2017

Creative Commons Attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided

the original work is properly cited.

Article History:

Received 18

December, 2016

Received in revised form 10

January, 2017

Accepted 06

February, 2017

Published online 28

March, 2017

DOI: 10.24327/IJRSR

Key Words:

Demographic factors, Housing Product

Attributes, Housing Service Attributes.

Decision Making.

CODEN: IJRSFP (USA)

Kadambini Kumari and Vidya Nakhate., A Study of Attributes Attracting The Residential Property Buyer for Purchasing Decision

16212 | P a g e

for better reasons. No decision is made just for utilizing the

cash in hand.

Focus on the purchasing decision is more driven towards the

factors influencing the buying decision. Attributes appealing

most to each buyers will be heterogeneous but it will have

convergence at the point based on demographics.

This dynamics must be understand by the sellers to attract right

people & design the right property in terms of product &

service attributes.

Definition of terms

 Consumer Behaviour: Consumer Behaviour is defined

as activities people undertake when obtaining,

consuming and disposing of products & services. Field

of study that focuses on consumer activates. *Given by

Backwell, Miniard & Engel

 Factors: A circumstance, fact, or influence that

contributes to a result.

External Influencing Factors

 Seller Marketing Efforts: Include all P’s of Marketing.

 Sociocultural Environment

1. Family

2. Reference Group

3. Non-commercial sources

4. Social class

5. Culture & sub-culture

Internal Influencing Factors

Psychological Field & Personal Demographic

1. Motivation

2. Perception

3. Learning

4. Personality

5. Attitude

6. Experience

7. Age

8. Occupation

9. Income

10. Lifestyle

*Consumer decision making model given by Leon G.Schiffman,

Leslie Lazar Kanuk & S. Ramesh Kumar

 Attributes: A quality or feature regarded as a

characteristic or inherent part of someone or something.

 Residential Property: A type of leased property,

containing either a single family or multifamily

structure, that is available for occupation for non-

business purposes.

 Residential property buyers: A home buyer is defined as

a person who is in the process of buying a home.

 Residential property Suppliers: Housing suppliers in

this research are defined as the people who provide

housing products and relative services to consumers.

 Residential Property Investor Market: Housing

products in this study include residential houses and the

services provided by housing suppliers.

 Purchase decisions: A purchase decision is defined as

occurring “when the buyer has paid for a product or has

made some financial commitment to buy some specified

amount during some specified time period. It is caused

by intention to buy”

 Service quality: Service quality provided by housing

suppliers refers to the home buyer's assessment of

quality and focuses on all things that influence the home

buyer's perceptions of quality. It is a relative evaluation

in that it will vary from one customer to another.

REVIEW OF LITERATURE

Article written by (Roe, 2002) on Form and Function has study

the trends that are influencing the decision of developers in

purchasing products; analysis on the criteria of considering

savings versus value. Developers and building owners are

looking beyond economies of scale to control costs while

delivering quality. Quality in construction, facilities &

innovation is in trend to influence decision making.

Study conducted in Australia by (Zeng & Zhou, 2001) on A

geographical information system implication on decision

making. Researcher had spoken about the development of a

prototype real estate GIS (REGIS) by integrating fuzzy set (FZ)

theory, this system will guide seller & buyer both parallel.

(Bello, 2007) analysis residential property valuation & price as

a importance attributes to determine the Consumers'

preferences in Nigeria.

Stuart M. Dillon (1998) study conducted by the researcher to

know descriptive theory of decision making, explained the

situational concept which plays important role for decision

between alternatives available. There are some certain decision

behaviours that are always going to be present in unaided

decision making.

(Levy, Murphy, & Lee, 2008) Researcher talked about

influences and Emotions& Family collective decision making

process for buying a House. They spoke that this is different

from other investment as lots of family aspects come into the

picture.

Study was undertaken by (Daly, Gronow, Jenkins, & Plimmer,

2003) on a cross-national comparative basis in the UK, Ireland

and Australia as valuers overlook the economic sustainability

of the property asset, which has severe implications for housing

markets and national economies that interact with these

markets. The decision maker has behavioural pattern as per

economical sustainable parameter of the location as well.

(Kalia, 2013) has studied in Tirana ad explain the impact of

four factors demographic characteristics, Housing preferences,

marketing factors & psychological factors. According to the

finding, the price of a house or an apartment, and the interest

rate are very important factors in purchasing a house or an

apartment. Researchers are knowing the impact of uses of

social media for providing information, attracting potential

buyers and encouraging the buyers to visit their facilities on the

site. It is also recommended that construction companies’

creation of databases of customers either through direct

contacts or by phone or online contact is an essential element in

order to understand the buyers' preferences and creating sales.

(Seiler, Seiler, Harrison, & Luchtenberg, 2009) studied the

Role of Profit, Law, and Ethics in Residential Estate

Investments. The prospective purchasers effectively hold a call

International Journal of Recent Scientific Research Vol. 8, Issue, 3, pp. 16211-16215, March, 2017

16213 | P a g e

option on the Property if they need to check fluctuation in

profit, law full execution & ethics.

Heidi Falkenbach (2010) explained external & internal factors

for motivation towards property purchasing. Internal factors

can be applicable to this situation also, as growth potential,

diversification of investment profile, industrial growth, local

infrastructure growth, property appreciation etc.

Niko Suhonen (2007) has given the argument based on

experimental research that normative and descriptive theories

are not mutually exclusive. According to the situation 100%

descriptive approach is not worked out & decision can be mix

normative and descriptive framework.

Sayali Sandbhor et.al (2013) explains the growth potential of

pune region due to infrastructural planning of development like

international airport & metro in long run. This will enhance the

quality of life & area near the Pune district also as great

opportunity to extend. This is exactly the situation on which

phase of growth of Pune & nearly districts are blessed.

Frank, Alejando Germán et.al (2013) says about the importance

of Investment alternatives selection involves a variety of

criteria that should be evaluated to provide a solid basis for

decision-making. This was focused on the rationally evaluating

the alternative to choose best.

According to the study by John W. Payne (1976) of two

characteristics of the search data, amount of information

searched per alternative and pattern of search, proved useful in

discriminating between four alternative models of decision

making. Social sites are the part of life & the fastest mode of

information exchange.

Ethel Lee (2013) had given the empirical evidence on the role

of Social media & which is increasing day by day. Social

media has wide acceptation because of transparency &

accessibility provided to the consumer.

M Duggan, J Brenner-2013 had given his empirical study on

that young adults are more likely than others to use

major social media. At the same time, other groups are

interested in different sites and services.

So there are enough evidence on different internet users differ

in the choice of search, intensity & dependency on information.

This hypothesis has helped to know the role of social site in

information search for decision making. The degree of

dependency is changing with the demography.

Research Questions

Two research questions addressed through the questionnaire on

which attributes are more important & what all they consider as

an important attribute before taking a purchase decision. This

research is helping to correlate the factors which influence the

different attributes preference by different group of people

based on demographics.

 Research question 1: What all attributes are considered

by Indian Buyers while taking decisions for purchasing

residential property in India?

 Research question 2: Is the Product Attribute or service

attribute which is more important for the buyers?

Research Objectives

1. To analyse impact of residential property attributes and

services provided by housing suppliers on residential

buyers` purchase decision in Pune Region.

2. To study the decision making process of residential

property buyers for residential property purchasing.

3. To identify the residential property attributes that have

the major influence on investors purchase decisions.

Hypothesis

H1: The Social Site preference for information search in

decision making process is varies significantly with

Qualification, age & Occupation:

H2: Product and service attributes are significantly varies

based on income & purpose of purchasing.

Research Design

The empirical study was carried out. Population was defined as

all individual are planning to buy the real state property from

January 2015–December 2017 year in Pune Region. The

research would be carried out in the physical location of Pune

City & Pimpri-Chinchwad Sample was defied as each

individual who had bought the real state property after January

2015 &December 2017 planning to buy by in Pune region.

The questionnaire was administered through the minimum

sample size of 205 of the total population. Research was be

carried out by using convenience data from the questionnaire

would be coded and tabulated for further treatment. Data was

analysed by using the techniques of Descriptive Statistics as

well as Inferential Statistics.

Data Analysis

The descriptive data analysis

 Average salary of most of the customers is between

1lakh to 6lakhs

 34% bought for residential purpose while most of

them bought as a form of investment and very few of

them about 2% bought as a gift

 57% of them preferred a completed and ready to move

projects and next to them under construction and not

started projects got 22% and 23% of preference

 Most of the consumers took about 6months to 1year to

buy the property

 More than half of the consumers are aged between 40

to 60 years

 Average family size of consumers is 3

 Most of the customers have a minimum education of

bachelors and only 19% of them are not graduates

 21% works with the state owned enterprises, 25%

works in private business enterprises, while the other

19 % and 20% are government employees and public

sector employees respectively. And finally 14.6%

have their own business

 30% has a salary between 3l to 6l, 25% earn in

between 1l to 3l

 25% voted newspaper as not a preferred source while

social network and property exhibition received 27%

and 24% of preference as a source of information

Kadambini Kumari and Vidya Nakhate., A Study of Attributes Attracting The Residential Property Buyer for Purchasing Decision

16214 | P a g e

 Customers gave 24% preference to the surroundings

to while taking purchase decision

One-way analysis of variance (ANOVA) were used to

determine whether any significant relationships exist among

respondents. In addition, the .05 level of statistical significance

was set at all statistical tests in the present study. Social Site

preference for the Information search is analysed according to

the Age, Qualification & Occupation are significant or not.

It can be seen that the significance level of age, qualification

and occupation are 0.005, 0.582 and 0.385 respectively. The

significance values of qualification and occupation are above

0.05, therefore, the social network preference is statistically

independent on qualification and occupation. Social network

preference is statistically significant different based on age.

Different age group have difference preference on dependency

on social networking site.

But the significance value of age is 0.005, which is below 0.05

i.e., the social network preference is statistically dependent on

age of the customers. So, post hoc test is done for further

inference. Form post hoc test, it is observed that social network

sites are most preferred by consumers aged between 20 to 40

years.

From table no. 3 is can be observed that the significance values

of purpose of purchase is 0.501, which are above 0.05.

Therefore, the product and service attributes are statistically

independent of consumer’s purpose of buying. But the

significance values of income is 0.000, which is less than 0.05,

which means that the product and service attribute is

statistically dependent on income of the consumer.

CONCLUSION

Income & purpose of purchasing goes hand & hand. In Indian

economy Most of the earning group comes under the salary

range of 1 to 6Lakhs. Earning people still think that purchasing

house is big return on investment so 37% people purchase

home for investment. May be due to large inventory in housing

in India, people start preferring completed project & near to

passion project than awaiting. From the analysis it is observed

that the average consumer’s age is around40. It is also observed

that most of the consumer bought the property for residential

use and it seem to be not effected by their income. The product

and the service are effective when it comes to the buying

behaviour of the consumer and in most cases completed

projects were preferred and it took around 6 months to 1 years

for the consumer to buy. Social network has been voted as the

most preferred source of information. By age group of 20-

40yrs. Income plays very important role on attributes

preference in product & service attributes.

Future scope

Based on the analysis, for good business development the

target consumers will be middle aged people. And the most

useful observation is that most of the social networking sites

effect the consumers buying behaviour.

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Table1 Analysis of varience (ANOVA)

Sum of

Squares

Mean

Square

F Sig.

Age

Between Groups 5.748 4 1.437 3.78 0.005

Within Groups 76.027 200 0.38

Total 81.776 204

qualification

Between Groups 6.217 4 1.554 0.716 0.582

Within Groups 434.008

200 2.17

Total 440.224

204

Occupation

Between Groups 7.361 4 1.84 1.046 0.385

Within Groups 351.878

200 1.759

Total 359.239

204

Table 2 Post hoc test

Ryan-Einot-Gabriel-Welsch F

Source_Social_network N

Subset for alpha = 0.05

1 2 3

Neutral 42 1.52

Preferred 55 1.6 1.6

not preferred 32 1.84 1.84 1.84

least preferred 43

1.86 1.86

Most preferred 33

1.97

Sig.

0.124 0.115 0.835

Means for groups in homogeneous subsets are displayed.

Table 3 Analysis of variance (ANOVA)

Sum of

Squares

Mean

Square

F Sig.

Income

Between Groups 31.865 1 31.865 21.077

Within Groups 306.896 203 1.512

Total 338.761 204

Purpose

Between Groups 0.341 1 0.341 0.454 0.501

Within Groups 152.264 203 0.75

Total 152.605 204

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*******

How to cite this article:

Kadambini Kumari and Vidya Nakhate.2017

, A Study of Attributes Attracting The Residential Property Buyer for Purchasing

Decision. Int J Recent Sci Res. 8(3), pp.

16211-16215.

DOI: http://dx.doi.org/10.24327/ijrsr.2017.0803.0100