“Consumer Behaviour Pre & Post Purchase of a

Residential Property”

Submitted By
Name Registration Number
Rajarshi Boggarapu 19BBA0109
J. M. Srawanth 19BBA0077
Rahul Jindal 19BBA0013
V Tarun Sai Reddy 19BBA0025

Submitted To
Dr. J. Raghuram
VIT Business School,
Vellore Institute of Technology,
Vellore.
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 Abstract
The purchase of a residential property is a high involvement purchase and the buyer goes through a
complex buying decision making process. This research is the outcome of the study conducted of
Post & purchase Behaviour of Customers. The objective of conducting this project work is to study
the factors influenced for residential property and customers’ satisfaction on residential property. For
this purpose, we went for Conceptual Research for the study in order to get the needed information.
The study is a descriptive type in order to learn in depth. We chose this. The data was collected
through thorough analysis of 20 research papers, previous findings and present scenario. In this
research we can find a clear picture of the behaviour of consumers and what really affects them.

Keywords: Consumer Intention, Consumer Behaviour, Pre Purchase Behaviour, Post Purchase
Behaviour, Residential Property, Locality, Society.

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 Acknowledgement

The researchers are sincerely thankful to Vellore Institute of Technology, Business School, Vellore
for proving the opportunity to write a research paper in the form of dissertation on the topic
“Consumer Behaviour Pre & Post Purchase of a Residential Property”

We are also thankful to Dr. J. Raghuram for guiding us in every stage of this research paper. Without
their support it would have been very difficult for us to prepare the paper so meaningful and
interesting.

We extend our gratitude to our family members for their immense support which helped us in
completing the research without any deviations.

Through this research paper we have learnt a lot about the Consumers Behaviour and the
considerations kept in mind. The research helped us in understanding how Consumer Behaviour is
effected through other consideration and what are its advantages and disadvantages. We hope that
this research might be helpful to organisation to assess the market in beforehand to grow in a better
way in future.

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 Table of Contents
Sr. No. Particulars / Topics Page No.
1 Introduction 5–7
2 Review of Literature 8 – 16
3 Research Methodology 17
4 Consumer Behaviour Analysis 18 – 22
5 Conclusion 22 – 23
6 References 23 – 24

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1. Introduction
Analysing consumer behaviour pre and post purchase of a residential property is the most crucial
analyzation for a real-estate firm, a real-estate firm deals in sales and marketing of residential
properties where its consumers are the general public, real-estate firms need to have a strong team for
analyzing and reporting about the consumer behaviour in different seasons and different
circumstances this helps the firms to market their properties at the right time and also what to highlight
at that particular instance. Post-purchase of a residential property though the duty of the real estate
firm is over, consumers seem to have some problems at initial stages of their living where the firm
comes into the picture and reminds the consumers about the promises the firm made pre-purchase of
the property, this research allows what al are the needs, wants, and demands of the consumer PRE &
POST PURCHASE of a RESIDENTIAL PROPERTY.

Own house is the vital need for each and every human. It’s a basic need and considered an element
of the standard of living. Homeownership provides stability to family life and it is also used as an
investment. Some of the economists characterized housing as a bundle of attributes .Some of these
attributes are internal and some are external . Externals are access to utilities , services, and facilities
and location. Due to this there is a significant gap between the developers perception and consumers
expectations , which resulted in consumer dissatisfaction.
Most of the recent studies found that it is important to understand the buying decision of the
residential property is determined by the demand.

1.1. Factors Influencing House Purchase Decision

• Motivation is the first factor which affects a consumer to buy. In this the need for space and
the need for status, these two things drive the consumer to buy.
• Because of the perceptual filtering that consumers use, their mental image of towns,
neighbourhoods, and types of architecture tend to endure. If a city is thought to be
dangerous, then the consumer will notice the news reports of crime in the area. However, if
a town is perceived as safe, the same consumer will tend to dismiss crime incidents as
flukes.
• Different consumers may place varying levels of importance on product attributes and,
therefore, evaluate the same product differently. Thus, one consumer may value more highly
a yard, garden, and swimming pool. Another consumer may prefer a fireplace, bookshelves,
and built-in stereo speakers. The level of social pressure present in the purchasing situation
also affects whether consumer behaviour will be consistent with personal attitudes. A

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 consumer may make a socially acceptable purchase of a single family detached house that
may not reflect his true preference for a loft apartment.
• Real estate can be viewed as part of the extended self, an object that helps to form identity.
By their very nature, single family homes almost always perform many highly emotional,
individualised, personal roles in the lives of their occupants. Consumers will choose to
purchase real estate that either fits with their current self-image or is associated with the
ideal image they want to achieve. This may be reflected in both choice of housing style and
neighbourhood.
• a consumer’s personality may affect his real estate investment choices. A risk taker is more
likely to consider purchasing a run-down property in a marginal neighbourhood, planning to
improve the property and take advantage of neighbourhood improvements. A risk taker
would also be more likely to choose an adjustable rate mortgage than a risk avoider, no
matter what the financial comparison shows
• Consumers will purchase real estate services that are compatible with their lifestyle. Thus,
an outgoing, athletic young single who values social interaction will likely place greater
value on an apartment that has access to a swimming pool, tennis court, and activity center.
Meanwhile, an inner-directed, sedentary young single who values privacy and solitude
might value an apartment with a private balcony more.
• Social class will affect what neighbourhoods and architectural design consumers will
consider for housing. In addition, housing layouts must accommodate the furniture and
living style of members of each social class. People trying to move up through the social
class structure might choose a house 19 and neighbourhood that they think members of the
higher class would choose.
• Each real estate consumer is influenced by her unique set of reference groups. A consumer
who is a member of an investment club might be influenced to make different real estate
investments than a consumer who relies on family members for guidance on investment
philosophy. A consumer who a member of a particular church may be influenced to move to
a community where other church members live. A couple wanting to belong to a social
group that regularly holds large parties may purchase a large home with entertaining in
mind.
• Cultural norms that affect real estate demand include beliefs about whether each child
should have a private bedroom, but a shared bath. Cultural rituals such as formal holiday
dining influence the preference for a formal dining room. In our society, families with
ageing parents may prefer an attached in-law apartment that allows relatively independent
living rather than incorporate the elderly relative into the primary household. The value

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 placed on individualism is reflected in the demand for customised homes. Builders would be
wise to watch changing cultural values, producing properties that are more environmentally
friendly and housing layouts that are more suitable for family activities and interaction.
• 10.The traditional family pattern has been single, then married, married with children,
empty nest, retirement, and widowhood. Changes in household and family structure have
resulted in many people no longer following the traditional process, delaying marriage,
having children out of marriage, and divorcing and remarrying. This creates demand for a
wider variety of housing options throughout the life cycle. It also makes it more difficult to
estimate demand for housing types based on demographic factors.

1.2. Statement of Problem

The Study tries to answer. What factors influence them to purchase a certain property? What are the
most influencing factors that makes the customer to us that property? Determining the pre and post
purchase intentions, behaviour, and preferences of the consumer so that the real estate firms have an
estimate on what and why do consumers need and want.

1.3. Significance of Study

• Real estate contributes 6.3% of India’s national GDP.
• Construction is the 2nd largest employer after agriculture.
• Real Estate merchants can be profited by understanding on how individuals make their mind
and what are the conspicuous things individuals keep into consideration. This understanding
will prompt better clarifications and expectations in land markets and, subsequently, more
prominent accomplishment in the commercial centre
Many studies have been done on Consumer Behaviour for many FMCG products and Consumer
durables. However, the research on Consumer Behaviour in Real Estate is very scarce in India.
Hence the researcher felt that a study on this topic is essential.

1.4. Research Objective

• To know the consumer reactions in every instance and circumstances when he/she gets a
deal to buy a residential property.
• To generate information which can help many firms to direct in a right path instead of
wasting their resources in unwanted time.
• To know how a customer behaves before the sale of the property and after the sale.

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2. Review of Literature
2.1. Understanding the Role of Real Estate Agents in Consumer Purchase Decisions
• This literature studies about the consumers perceptions, attitudes and intentions differ across
inter region and intra region, the same applies to the Real Estate Agents in understanding the
consumer thought process and influencing the consumer purchase decision. The policy and
disclosure by Real Estate Agents is the key to success in implementing the strategy on a big
level. There is a need to make consumers conscious about possession plans, payment
options, government policies and sustainability. Moreover, this digital age requires keeping
up with new trends like the social media.
• The Internet has become the first medium to allow for complex interaction between
networks of people and Real Estate Agents via social networks like Twitter, Facebook and
YouTube, amongst many more. Social marketing is a powerful tool for achieving a tangible
and measurable impact on behaviours and should be exploited more by Real Estate Agents
as Social marketing principles can be used to develop effective behavioural interventions to
promote transparency, abide legal practice & sustainable behaviour i.e. recycling, reduce
and re-use (environment).
• Last but not least the government policies, reforms and legislations regarding urban
development may be introduced to improve global inflow of funds and promote growth of
the sector. The government should initiate the affordable housing as a part of the integrated
growth of Real Estate Sector with Sustainable Environment. The lower income groups
neither have access to the information nor possess the knowledge regarding sustainability
and environmental friendly practices.
2.2. Factors Affecting Purchasing Behaviour in Real Estate in Saudi Arabia
• In the literature its studies about the ability of to explain the intention to purchase real
estate in Saudi Arabia. It was shown that the intention to purchase real estate was
influenced by attitude, subjective norm and finance while perceived behavioural control
was not, with the subjective norm component being more influential.
• This study provided what influence the behaviour. The study has shown that attitude
subjective norm and finance are accepted for explaining behaviour purchase of real estate in
Saudi Arabia. In conclusion, it is assumed that the outcomes of this study have contributed
some valuable information for researchers, customers, marketers and real estate owners. It
is expected that the result of the survey will provide information on the intention to
purchase real estate and which variables affect this intention.

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 • Therefore, as a result, this study can serve as a future reference on the study of real estate.
Which will help consumer to know what influence them to make this behaviour. Also, will
help governments to set procedures and regulations for current and future plans. in addition
this study will help real estate instructors to understand what influence consumers toward
real estate and consider it at their marketing planning.

2.3. A Study on Changing Buying Behaviour of Indian Customers

The LITERATURE is based on the perceptions, buying behaviour and satisfaction of the consumers
in Indian market. Sources of the primary and the secondary data are discussed. In the recent years,
the way Indian consumers are spending their money on various items has changed. The penetration
of internet and social media has increased, as a result the purchasing behaviour of Indian consumers
has changed dramatically. Urbanization is a constant phenomena in India and is influencing the life
style and buying behaviour of the consumers. The study is based on the perceptions, buying
behaviour and satisfaction of the consumers in Indian market. The Indian consumers are noted for
the high degree of value orientation. Even, luxury brands have to design a unique pricing strategy in
order to get a foothold in the Indian market. Indian consumers are also associated with values of
nurturing, care and affection. Product which communicate feelings and emotions gel with the Indian
consumers. Consumers undertake complex buying behaviour when they are highly involved in a
purchase and perceive significant differences among brands. Consumers are highly involved when
the product is expensive, risky, purchased infrequently, and highly self expressive. Thus buyer will
have to pass through a learning process, first developing beliefs about the product, then attitudes,
and then making a thoughtful purchase choice. Marketers of high-involvement products must
understand the information-gathering and evaluation behaviour of high-involvement consumers.
They need to help buyers learn about product-class attributes and their relative importance, and
about what the company's brand offers on the important attributes. After the purchase, consumers
might experience post purchase dissonance when they notice certain disadvantages of the purchased
carpet brand or hear favorable things about brands not purchased. Habitual buying behaviour also
occurs among the certain group of the population under conditions of low consumer involvement
and little significant brand difference.

2.4. Indian Residential Real Estate Consumer Sentiment Survey

The literature states that the Indian real estate is currently riding on a new wave of optimism,
following the triple benefits offered to it by the government in less than just two months of 2019.
Acting like the booster shots, these sops will not only spike up homebuyers sentiments but also
boost confidence of other stakeholders concerned “developers and long-term investors. From sops

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in the Union Budget to meagre fall in home loan rates post RBI’s cut in repo rates and to the most
recent GST rate cut for both affordable and premium homes, this was precisely the start that
residential sector needed to accelerate its momentum in 2019. Generally , housing sales and new
supply saw green shoots of revival in 2018 but issues like liquidity crunch, stalled/delayed projects,
high capital cost etc. continued to grapple the residential sector. The NBFC crisis in second half of
2018 added fuel to the fire and hijacked the residential sectors growth over the short to mid-term.
While in the review the author had anticipated about deep spill-over effect in 2019, the government
and the RBIs concerted efforts to pull the sector out of its woes are aiding in at least boosting the
confidence of homebuyers, rather than further aggravating it. These sops will go on to aid fence-
sitters to take the plunge and thereby increase sales for developers who are keen to clear their total
unsold stock of 6.73 lakh units across the top 7 cities.

2.5. A Study of Consumer Behaviour in Real Estate for Vadodara City Accelerated
urbanization
It shows the challenge of deficiency of infrastructure . Due to imperfection of public transport in
most urban cities, staying and commuting from peripheral location turns out to be a big challenge
for potential customers . Many a times, people do balance growing Job opportunities of the future
and sky rocketing charges of property while buying a property . Finding a right house is equivalent
to finding a needle in the haystack, thus it becomes very important to make the right decision.
Decisions made pursuing personal objectives would be considered rational if it is done consistently.
Each persons objective is to maximize the value of his own payoff which is measured in some
utility scale (. Buying a House can be categorized into 3 categories which are: essential, desirable
and bonus because it helps to manage the tradeoffs between various options of houses, such as city
v/s suburbs

2.6. A STUDY OF CONSUMER BEHAVIOUR IN REAL ESTATE SECTOR

Indian real estate has been a mixed bag of growth and decline in residential constructional zone.
The population growth and migration from rural to urban areas has considerably changed the
outlook of realty in urban and its adjoining areas. The objective of the study is to evaluate the
impact of branding in real estate on customer decision making process. In this study, a
nonprobability type of sampling technique has been used. Keeping in mind the aims, objectives and
the fact that all the respondents for the study were educated, structured questionnaire is used for
data collection. The questionnaire consisted various aspects like open ended, close ended, multiple
choice etc. The study concluded that consumer have become very much decision maker they took
into consideration so many aspects like the brand of the developer, price of the property, location of

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the property, future expectations of the property. Income level of the buyer plays an important role
in buying decision.

2.7. CONSUMER BEHAVIOUR APPLICATIONS TO REAL ESTATE

Most real estate study is based on neoclassical economics. Consumers are expected to make
decisions that maximize utility and wealth, given price and income constraints. Tastes and
preferences are typically inferred from observing outcomes of consumer actions. However, the
study of real estate can, and in some ways already does, benefit from inclusion of consumer
behaviour concepts. Incorporation of these concepts into real estate education would help explain
and predict the behaviour of real estate decision-makers. Most real estate purchases and leases are
considered high involvement goods that require complex decision-making. Thus, the three major
comprehensive models of complex consumer decision-making (Nicosa, 1966; Engel, Kollat and
Blackwell, 1968; and Howard and Sheth, 1969) would be applicable to most real estate decisions.
These models trace the psychological state and behaviour of a consumer from the point at which he
or she perceives a need through the purchase and use of a product to satisfy that need. The
following sections examine some of the key elements of these models: information search,
evaluation of alternatives and decision rules.

2.8. Behavioural Factors Affecting Real Estate Purchasing

The effect of Attitude, Location, Living Space, Public Service, Reference groups namely (Friends
Influence, and other Reference Group) on the intention to purchase real estate. Understanding
factors that affect the real estate market are found to be very important and crucial. Behavioural
research is one of the main method used to understand the driving forces of homebuyers Similarly,
there are apparent moves from rational factors to psychological and behavioural factors in
understand the driving forces of homebuyers. However, there is a considerable argument on the
incorporation of information about consumer attitudes, preferences, and perceptions into economic
models of housing and this demand is critical to any reduction of the large margin of unexplained
variance in housing consumption behaviour. consumer behaviour concepts from sociology,
psychology and marketing can therefore be beneficial to the study of real estate (Gibler & Nelson,
2003). Accordingly, many Behavioural Sciences theories that have been applied in marketing are
also relevant to real estate.

2.9. Consumer Behaviour for Real Estate Sector in Pune

Shelter is one of the most basic human needs. The real estate sector helps in fulfilment of this need
by offering built up houses, offices, spaces as per he needs of consumers. It is one of the fastest

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growing sectors in India, owing to the fast growing population, increasing income levels, growing
number of nuclear families, etc. The real estate sector is one of the most globally recognized
sectors. In India, real estate is the second largest employer after agriculture and is expected to grow
at 30 per cent over the next decade. The real estate sector comprises of four sub sectors - housing,
retail, hospitality, and commercial. The growth of this sector is also affected positively by the
growth of the corporate sector and the demand for office space as well as urban and semiurban
accommodations. The study of consumer behaviour is the study of individuals, groups, or
organizations in the selecting, purchasing, using, and disposing of goods and services to satisfy
needs and desires. After they realize the need for a flat, information is collected, internet being the
main source of information. The parameter which is considered most important is the size of the
flat. While shortlisting the location, proximity to work is the main reason considered followed by
connectivity & rates. Customers expect various amenities like Swimming pool & Club house in
amenities followed by Pathways, Some of the respondents wanted Amphitheater followed by guest
parking. Some customers don't expect amenities as they purchase flats for investment purpose.

2.10. Consumer behaviour in the valuation of residential property:

A comparative study in the UK, Ireland and Australia This paper reports the results of empirical
investigations that examine behavioural aspects of residential property valuations. Following the
house price collapse of the late 1980s in the UK, there was considerable criticism of the valuation
methods used by residential valuers. In particular for the current research, the valuation methods
employed by valuers had not taken account of buyer behaviour in the valuation process, which
contributed to inaccurate valuations. This research investigates both the attitudes of the consumers
of residential property and the actual valuation methods used by valuers to determine whether they
account for buyer behaviour accurately. The study was undertaken on a cross-national comparative
basis in the UK, Ireland and Australia and pursued on a qualitative basis. Overall, the research
concludes that although valuers believe that buyer behaviour is an important part of the valuation
process they simply do not consider buyer preferences. In effect, valuers have reduced the valuation
task to a confirmation of bid price and, because of lender pressure which occurs worldwide, valuers
overlook the economic sustainability of the property asset, which has severe implications for
housing markets and national economies that interact with these markets.

2.11. Consumer perception and buyer behaviour for purchase of residential apartments in
NCR
The motivation for this research is to identify the external and internal factors considered by buyers
of residential apartments in National Capital Region of Delhi (NCR). Internal factors refer to the

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specifications and facilities offered by the builders within a township, whereas external factors refer
to easy availability of loan, payment plans, discounts, brand name of builder, etc. This research also
helps in analyzing the differences in perceptions of buyers about the three important locations for
residential apartments in NCR, viz. Gurgaon, Noida and Greater Noida based on parameters such as
business opportunities, law and order situation, medical/educational facilities, etc. The research
would further analyze the differences in perceptions about three major real estate players operating
in the area, namely Unitech, Jaypee Infrastructure and Omaxe group. After conducting interviews
with the assistant sales managers of a leading real estate company along with few real estate
brokers, two questionnaires were designed to cover the two sets of objectives of the study. The
results have been arrived at by using SPSS and Excel. The basic tools used are factor analysis,
ANOVA single factor and Tukey-Kramer test.

2.12. A STUDY ON BUYING BEHAVIOUR OF OWNERS TOWARDS RESIDENTIAL

FLATS IN URBAN AREAS OF TAMIL NADU STATE
The buying behaviour of individuals towards residential flat is a composite process which has some
degree of risk as it is subjected higher degree of financial commitments. Additionally, the buying
behaviour for residential flats among individuals is relying on different features, amenities and
socioeconomic conditions. More than two fifth of owners have moderate level of buying behaviour
for residential flats and significant differences are existing in buying behaviour of residential flats
among profile of owners of residential flats except gender. In order to improve the buying
behaviour of residential flats among home buyers, developers should build residential flats in health
and sanitary environment and must sell their residential flats at affordable price. The findings of this
study reveal that more than two fifth (40.66 per cent) of owners have moderate level of buying
behaviour for residential flats, then by low level (30.99 per cent) and high level (28.35 per cent).
Significant differences are there in buying behaviour of residential flats among profile of owners of
residential flats except gender. In order to improve the buying behaviour of residential flats among
home buyers, developers should build residential flats in health and sanitary environment and must
sell their residential flats at affordable price. The residential flats should be maintained well by
private management and have good facilities. Besides, they must adopt effective promotional
measures to promote their residential flats. In addition, they should build residential flats in such a
way they are accessible to school, shopping and medical facilities.

2.13. Factors Affecting Buying Behaviour in the Purchase of Residential Property:

A Factor Analysis Approach The main objective of this study is to find the relative importance of
the various criteria that home buyers consider while evaluating the available alternatives. This study

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also attempts to categorize these variables into factors. This is a descriptive research in which non-
disguised and structured questionnaire having closed-ended questions. It was administered to
collect data from the respondents. It was found in the study that financial factors are given the
highest consideration while evaluating the alternatives by the residential property buyers. The
variables could be grouped into six factors.

2.14. A study on customers post purchase of buyer behaviour towards residential property
with special reference to Tirupur District This research is outcome of the study conducted of Post-
purchase Behaviour of Customers with reference to Tirupur District. This study was carried out for
a period of 6Months from in Tirupur district. The objective of conducting this project work is to
study the factors influenced for residential property and customers satisfaction on residential
property. For this purpose 35 customers were taken as sample for the study in order to get the
needed information. The study is a descriptive type and convenient sampling is used. The data are
collected from survey using questionnaire method. The collected data were consolidated and
interpreted by using statistical tools like percentage analysis, chi-square test. Tables and charts are
used for representation purpose.

2.15. Consumers' Choice Factors for Buying Residential Property in the Philippines:
An Empirical Investigation The researcher studied and investigated the level of importance of
consumers choice mainly price, location, safety and security, facilities and amenities, and
exclusivity in the Philippines. This research was limited to 400 potential residential property buyers
from any of the top 10 real estate developers in the Philippines. This study focused on 5 consumers
choice factors mainly price, location, safety and security, facilities and amenities, and exclusivity
towards purchase intention of residential property in the Philippines. Among the 5 consumers
choice factors for buying residential property, the number one consideration is the safety and
security (Mean = 5.530), followed by price (Mean = 5.488), location (Mean = 5.424), facilities and
amenities (Mean = 5.266), and exclusivity (Mean = 4.983). From this study, four out of five
consumers choice factors are rated very high important namely: price, location, safety and security,
and facilities and amenities. On the other hand, exclusivity is rated of high importance in terms of
buying a residential property

2.16. A study on impact of key factors affecting buying behaviour of residential apartments
This research attempts to discover the major key factors affecting the buying decisions of customers
to buy residential apartments in Noida and Greater Noida. The sample consisted of those
respondents who either bought an apartment in the previous year or were planning to buy in the

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upcoming years. Data were collected through a questionnaire. The collected data were analyzed
with the help of SPSS. The result shows that the most important affecting factor is structure and
design among other factors. Further, the study suggested that real estate marketers should give
importance to the extracted factor while offering apartments in the market.

2.17. Factors Influencing Consumers House Purchase Behaviour in Chennai

The research is carried out to find the factors influencing the consumers towards the purchase of
house in Chennai. The objective of conducting this study to find the factors influencing the
consumers purchase behaviour on house in Chennai and to examine the relationship among
significant factors influencing consumers purchase behaviour. For this purpose, 112 respondents
were taken as sample for the study in order to get the needed information. The study is an analytical
type and descriptive type and convenient sampling is used. The data are collected from survey using
questionnaire method. The collected data were consolidated and interpreted by using statistical tolls
like percentage analysis, Factor analysis and cluster analysis are used for representation purpose

2.18. Residential Real Estate Purchase Decisions in Australia:

Is it More Than Location? The factors that prospective buyers consider when purchasing residential
property in Queensland, Australia. A drop-off survey is used, with 376 property buyers and a
response rate of 62.7 percent. Affordability, maintenance and interior design, and a good
neighborhood are considered as most important. Of least importance are the affluence and quality of
the area, water, views and roads, and features, such as a pool or air-conditioning. Therefore,
location is important in the sense of neighborhood and community, rather than prestige.
Affordability should receive more attention in the literature and real estate marketing. Different
market segments consider a number of factors when purchasing residential property. Since the
factors vary according to the purpose (live in or investment) and the property type (house or unit),
these variables provide a basis for identifying market segments. Agents can use the findings to
better understand buyers. Researchers can further analyze buyer considerations and property
characteristics to condense a large number of factors into a small number of coherent dimensions.
The study may be limited by its focus on a geographical section of the Australian real estate market
and some difficulties in identifying and operationalizing property characteristics.

2.19. Residential properties with green living concept:

what drives consumers to buy? Purpose The purpose of this study is to investigate consumer-buying
intentions (BIs) towards sustainable properties with green living concept (GLC). It also aims to
examine the dynamic relationships between environmental advertisements (EAd), green brand
positioning (GBP), attitude towards environmental responsibility (ER) and consumers sustainable

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properties BI in the Malaysian context. Design/methodology/ approach Data were collected via
online questionnaire survey, which yielded 143 completed usable responses. Structural equation
modelling partial least squares (Smart PLS, version 3) was used to analyze the data. Findings The
findings of this study revealed that EAd and GBP significantly affect consumers attitude towards
ER, which in turn affects consumers BI of the sustainable properties with GLC. Practical
implications This study suggests that without inculcating a positive attitude towards the
environment among consumers, it becomes a daunting task to drive consumers to purchase
sustainable properties in Malaysia. Thus, the marketers should focus on green promotional activities
to attract more customers to buy sustainable properties with GLCs. Moreover, it is suggested to
target the right market segment to secure more sales. Social implications The findings of this study
will enable the government and the social marketers to understand the drivers of buying sustainable
properties with GLC, which in turn will contribute to the higher environmental welfare.
Originality/value This study is among the pioneers to examine consumers sustainable property
purchase intention. It provides significant insights for the social marketers and policymakers to
understand how to motivate consumers to purchase sustainable properties with GLCs. Moreover,
this study has investigated few comparatively new links such as the direct effect of EAd and GBP
on attitude towards environmental responsibility and the mediating effect of attitude towards
environmental responsibility between environmental stimuli and consumers sustainable properties
BI.

2.20. Buying A Dream Home

Considerations of Residential Property Consumers in Malaysia The objective of the study is to
investigate the key factors affecting consumer decision making on purchase of residential properties
in Malaysia. A conceptual framework which is developed based on review of previous literature
and then is tested on a sample of 150 respondents. A self-administrated survey was carried out
based on the convenience sampling to uncover the impacts of these selected factors using
correlation and regression analysis through SPSS
21. The study finds out a strong association between top three factors which are financial,
neighborhood, and location factor and consumers decision making of residential property. The other
two factors namely features and demographical factors have weaker association. It is also found that
there is a moderate impact on decision making of consumers according to different demographics
consisting of gender, age, marital status, monthly income and education level. This research is
useful for purchasers of residential property, private and common sectors such as investors,
developers and local government. It creates deeper understanding of consumer behaviour and
preferences towards purchase of residential properties particularly in Malaysian context.

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3. Research Methodology

3.1. Research Design

The researchers design used by the researchers in this study is The Conceptual Research Design as
it is appropriate choice when the research is aiming to know how a customer behaves before the
sale of the property and after the sale.

3.2. Sampling Design

The researchers have chosen to use conceptual framework for this study where the researchers have
to study various research papers by other authors to understand the market and to understand more
about the subject and come to conclusion regarding their study.

3.3. Sampling Size

Sampling size i.e. number of articles, research paper, and reviews used in this research. The
researchers have chosen 20 research papers as their review of literature so that they have clear
understanding on various circumstances and situation and generalize the paper.

3.4. Data Collection

The Data i.e. research papers written by other authors were collected from 2 sources the first one
being Google Scholarly and the other one being Research Gate.

3.5. Measuring Instrument

As the paper is conceptual in nature the researchers do not have any particular tool to measure the
data collected and turn it into valuable information

3.6. Data Analysis

Though it is a conceptual paper the researchers had to use their full on potential in not only reading
the papers but also to understand them and comparing them with present situations and
circumstances so that there is transparent and keen outlook perspective which helps firms in future.

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4. Consumer Behaviour Analysis

For the study the researchers will be using the data of Census 2011. Household is defined as a group
of persons who commonly live together and would take their meals from a common kitchen unless
the exigencies of work prevented any of them from doing so; as per Census India 1976.

4.1. Classification
The researchers classify the products of real-estate into 4 broad categories namely 1BHK, 2BHK,
3BHK and Independent House (gated community). Where 1B/2B/3B indicate number of bedrooms
in the house, H indicates Hall also known as living room and K indicating Kitchen.
The researchers classify the public i.e. 1.21 billion people in 2 categories saying
• Potential future buyers, and
• Existing Landlords
The Researchers also classifies the products on the basis of income level of the consumers

4.2. What is consumer behaviour

Consumer Behaviour can be defined as "Consumer behaviour is the study of the process involved
when individuals or groups select, purchase, use or dispose of products, services, ideas or
experiences to satisfy needs and desires (Solomon et al, 2006).” This definition would be aptly
suiting for this study as we will be discussing the decision making process for pre purchase
behaviour and after purchase thinking process of a consumer.

Black box model of Consumer Behaviour

The marketing mix has 4p’s in it namely Product, Price, Place and Promotion. Other stimuli
includes Economic, technological, political, and cultural factors as these affect the consumers
environment. All the responses generated by a consumer are entered into the black cox where in the
end it becomes a meaningful output or information which affects the consumer to purchase that is
Product choice (1BHK, 2BHK, 3BHK, or Independent Villa), Brand Choice (In real estate scenario
under brand the project of a particular firm comes into picture), Dealer Choice (as the name says
from which firm i.e. project developer to purchase from), Purchase timing, and Purchase amount

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(what is the reasonable amount for all of the above coming from product choice to purchase timings
come into picture in this output as the consumer is willing to pay keeping in consideration of all
aspects).
The motive of this research is to find out how the consumer response emerges from which house he
chooses to purchase amongst many available options, based on the relative impact of various
influencing factors to what made him purchase and after effects of the purchase.

4.3. Types of Consumer Buying Behaviour

There are 4 types of consumer buying behaviour, classified based on the intensity of buyer
involvement and the intensity of differences among the various brands.
• Complex (high intensity of buyer involvement and high intensity of differences among
various brands).
• Variety Seeking (low intensity of buyer involvement and high intensity of differences
among various brands).
• Dissonance Reducing (high intensity of buyer involvement and low intensity of differences
among various brands).
• Habitual (low intensity of buyer involvement and low intensity of differences among
various brands).

Types of Buying Decision Behaviour (Kotler P. et. al. 2008)

The researchers would like to keep the process of buying a residential property under the stage of
Complex Buying Behaviour where there is high involvement of the buyer and huge differences
from brand to brand i.e. project to project.
The Researchers chose buying residential property under the segment of Complex Buying
Behaviour because, when an individual intends purchase a product (property in this research) which
requires high involvement (as the property is expensive, rarity in purchase, high risk due to various

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factors and most importantly self-explanatory) and perceives noticeable difference among each
brand (project), hence the buyer displays complex buying behaviour. For most of the individuals or
families buying a residential property or a house is once in a life time thing so the individual thinks
in various aspects and counts on each penny he/she spends from locality, society, surroundings to
price, worth and trust. The home-buyer will go through a long decision process, and then make a
thoughtful purchase choice. A house-buyer spends a lot of time to reach a decision, because it is a
very expensive product and has a long term impact.

4.4. Consumer Decision Making Process

Broadly a consumer’s decision making process is classified in 5 important steps where each and
every aspect of consumer is affected in each step occurred in the process.
• Need Recognition: In this step the person realizes the need for purchasing a house, this may
be triggered through internal or external stimuli. For example, if a person gets a job in
another city which is far away from his/her native city then the person might think about
buying a house in the new city where he/she got the job, or if a person in newly married and
internal stimuli triggers him/her saying his/her privacy is breached in the existing house then
also the couple might think purchasing a house where they have privacy.
• Information Search: In this point the consumer realized his need and want to purchase a
property and wants to search for various alternatives of projects depending upon his/her
taste, in this point Brand (project) and Dealer (Builder) are inside the picture. The consumer
is affected by Opinion Leaders and Opinion Formers known as reference groups who show
their utmost impact in searching for information.
Effect of Opinion Leader and Opinion Former while Information Search

Reference Group Effect

Opinion Leader As these are the ones who have recently purchased a house and also they
fall under same age category the preferences and tastes might be similar
and both of them i.e. opinion leader and potential buyer may maximum opt
for modern homes which are simple but modern. So opinion leader as they
have recently purchased recommends their project (brand) and builder
(dealer) if they are satisfied and if not they do not recommend the builder
which affects all of the projects under that builder to be scrapped out from
the choice.
Opinion Former These are the ones who already have an own house and also they are older
than the potential buyer the tastes and preferences might not be same but
they affect more than the opinion leaders as they know what kind of house
would be apt for the buyer. But opinion former does not affect much in
information search as they already have an own house.

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 • Evaluation of Alternatives: This is main and important step in the whole process, not only
while purchasing residential property but also in each and every industry, this is the point
where the buyer scraps out many choices from the information he searched and ends up
having a maximum up-to 3 choices in the end, the evaluation in real estate sector happens
through some factors like locality, society, surrounding, price, amenities, ranges, product
requirement, and mainly theme. Apart from self-assessment reference groups also effects
this step in the process.
Reference group effect on evaluation of alternatives

Reference Group Effect

Opinion Leader This group affects the purchase by their remark. If the house they
purchased is good then the group persuades the buyer in purchasing in the
same locality or project, and vice versa. They also affect the buyer through
social stimuli mainly in India people care about their prestige if someone in
the family purchases anything the upcoming buyer has a prestige issue
saying either he needs to purchase in the same range or more than the
other. By this way opinion leaders effect the buyer while purchasing a
house.
Opinion Former This particular group is most active while evaluating alternatives. They
care about affordability, locality, society, surroundings, pricings,
convenience, safety, and many other aspects as well. Their experience
values the most amongst all which affects the buyer in choosing. They also
consider the income level and then recommend to the buyer.
Apart from reference groups the evaluation is also done on the basis of what is the actual
product the buyer wants, the self-assessment happens here saying from Income level and
price. He also searches for themes of houses. And also the type of product they want
depending upon their usage whether they need a 1BHK, 2BHK, 3BHK or an Independent
Villa, the type of product is evaluated on the basis of family size, income, and privacy.
o If the Individual’s income level is low and family size is also less then the person
would choose 1BHK
o if the person’s income is moderate and family size is also moderate (typical Indian
nuclear family 3 or 4 members) then the Individual will choose 2BHK or 3BHK
o If the individuals income level is high and family size is moderate or large then
he/she would choose Independent Villa or 3BHK.
o If the Individuals income level is high and family size is moderate but privacy is the
main concern the person would choose Independent Villa.
o If the person’s income is moderate and family is large then 3BHK is selected.
• Purchase Decision: In this step the buyer purchases one amongst the many flats that he
searched, evaluated and considered. Depending upon want, income level, and price.

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 • Post Purchase Evaluation: In this stage if the customer’s expectations are fulfilled the
customer is satisfied and if the perceived performance does not meet the expectations, he is
dissatisfied. Unfortunately, it is very difficult for him to change the house because of the
transaction costs involved (such as stamp-duty which is about 6 % of the price of the house),
hence it is very important that he choose well. If he is dissatisfied, he may complain to the
Consumer Court, and let other potential buyers know about his dissatisfaction, verbally or
by using social media.
Many of the builders are not concerned about this step but this is one of the most important
step as the buyer has now become Opinion Leader to some other potential buyer, it is
mandatory that the builder satisfies the buyer with all of the promises made to the buyer.
Though buying a house is rare and considered once in a life time opportunity in India, if the
builder satisfies the buyer then in future as an opinion leader or further more opinion leader
he /she might influence the potential future buyer to trust the same builder as the builder
satisfied all of his needs and wants at the best price available and also kept upto all of the
promises.

Consumer Decision Making Process

EVALUATION POST
NEED INFORMATION PURCHASE
OF PURECHASE
RECOGNITION SEARCH DECISION
ALTERNATIVES EVALUATION

5. Conclusion
Concluding the research, we can say that are multiple factors which affects a consumer to purchase
a real estate. Motivation is the first factor which affects a consumer whether to buy or not buy and
because of the perceptual filtering that consumers use, their mental image of towns, neighborhoods,
and types of architecture tend to endure. Everyone wants to buy a house in a safe neighborhood, If
its safe then the consumer would tend to dismiss crime incidents as flukes. We understood that there
will be different consumers with different levels of important like one would want a garden place
when he’s buying and one would not. And we also understood that there might be social pressure
sometimes when one is buying, because buying is kind of an identity like it makes an impression on
our status. Consumers purchase real estate either to fit their current image or an ideal image they
want to achieve, because this might be reflected in both choice of housing style and neighborhood.
They would purchase real estate services that are compatible with their lifestyle. Thus, an outgoing,
athletic young single who values social interaction will likely place greater value on an apartment
that has access to a swimming pool, tennis court, and activity center. Meanwhile, an inner-directed,

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sedentary young single who values privacy and solitude might value an apartment with a private
balcony more. Just like these even cultural norms would affect a consumer because those include
beliefs and some wanted to be with people who share the same likes and dislikes like an
community. So by this we can conclude that in this research we found that there are so many factors
which affects a consumer and also what made the consumer to think of the factors when they are
purchasing a real estate.

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