A STUDY ON FACTORS AFFECTING CONSUMER

BEHAVIOUR IN BUYING A HOUSE

2017-2018
HYDERABAD
31st ACM BATCH

SUBMITTED BY -

AH17155 SHIVAM KUMAR GUPTA

2017-2018 NICMAR HYDERABAD



NATIONAL INSTITUTE OF CONSTRUCTION RESEARCH

MANAGEMENT AND RESEARCH (HYDERBAD)

CERTIFICATE

This is to certify that the following students have satisfactorily carried out the RESEARCH work
entitled :

“A STUDY ON FACTORS AFFECTING CONSUMER

BEHAVIOUR IN BUYING A HOUSE”

Roll No.

AH17155 SHIVAM KUMAR GUPTA

Dr. P Hanumantha Rao Dr. Ammani Pagadala

(Guide) (Guide)

2017-2018 NICMAR HYDERABAD



CONTENT

Sr. No TOPIC PAGE NO.

1. Chapter 1-INTRODUCTION 1-3

1.1 BACKGROUND

1.2 THEORITICAL BACKGROUND OF THE TOPIC

1.3 SCOPE OF THE STUDY

2. Chapter 2- LITERATURE REVIEW 4-5

2.1 GENERAL

2.2 EARLIER RESEARCHES

3. Chapter 3- RESEARCH DESIGN 6-8

3.1 GENERAL

3.2 TYPE OF RESEARCH DESIGN

3.3 DESCRIPTIVE RESEARCH DESIGN

3.4 QUALITATIVE RESEARCH

3.5 RESEARCH PROCESS

4. Chapter 4- DATA ANALYSIS 9-21

4.1 NULL HYPOTHESIS (Z-TEST)

2017-2018 NICMAR HYDERABAD



5. LIMITATION OF THE PROJECT 22

6. CONCLUSION OF THE SUDY 23

ANNEXURE I 24

ANNEXURE II 25

BIBLIOGRAPHY 22

2017-2018 NICMAR HYDERABAD


CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF THE TOPIC

It was more a live project than the usual research kind of project. It aimed at giving first and experience
of market situation and true picture of market to company Assessment of satisfaction level and getting
the feedback is of prime important for project to start. Keeping this aspect in the view this project was
undertaken.

The high lighting points were – which factors the consumers consider to buy a particular Property such
as –

• Price
• Brand Name
• Quality
• Comfort
• Maintenance
• Performance
• and Average.

What additional services and operational feature consumers would require.

Main key point of this research is to find out what are general factor that will affecting the purchasing
style of consumer.

1.2 THEORETICAL BACKGROUND OF THE TOPIC

1.2.1 CONSUMER BEHAVIOR

The aim of the marketing is to meet and satisfy consumers need and wants the field of consumer
behaviour studies how individual groups and organization select! buy! use and dispose of service ideas
or experience to satisfy their needs and wants.

Understand consumer behaviour and knowing consumer may say one thing but do another they may
not be in touch with their deeper motivations. They may respond to influence that change their minds
at last minutes studying consumer provides clues for new product features prices! channels! messages
and other marketing mix elements.

Consumer is the pivot which their entire system of marketing revolves. A consumer may refer to
anyone engage in evaluating acquiring using or disposing of goods and services which he expects will
satisfy his wants. If any producer makes out the marketing programming ignoring the consumer
preference he can possibly achieve his ultimate objective. A manufacturer must plan his production and
distribution on suit the consumer convenience rather than his own. Therefore, a marketer or a
manufacturer must know more and more about the consumer so that the product can be produce in such
a fashion so that can give satisfaction to them.

1

1.2.2 DEFINITION OF THE CONSUMER BUYING BEHAVIOR:

Consumer behaviour is of psychological! physical and social behaviour of the prospect as they
become aware of purchase! consume and tell other about the goods and services.
The process whereby individual decide whether, what, when, where, how and from whom to purchase
goods and services.

Consumer behaviour is the process by which individual decide whether! what! when! where! how and
from whom to purchase goods and services. It is the consumer who determines what a business is.

In consumer behaviour, it is act of consuming a product.

Competition is the essence today’s business world. The company’s existing market have to face
extensive competition, the degree of competition is going higher and higher. To become successful in
today’s market companies, have to analyse consumer behaviour depends on factors like: -

1.2.3 MARKETING CONCEPT OF CONSUMER BEHAVIOR

The marketing concept of the consumer behaviour reveals set actual and potential consumer. Basically,
there are two types of consumers existing and potential consumers. Depending buying behaviour of
consumer it is used for analysing both the opportunities and challenges which the companies face.

5 Steps of Consumer Buying Behaviour

1.Need recognition problem

awareness

2.Information search

3.Evaluation of alternatives

4.Post purchase evaluation

5.Purchases

A conceptual model of the buying Process

2

1.3 SCOPE OF THE STUDY

This study will be beneficial to Real Estate Constructions companies to know about customers
buying behaviour towards Residential properties. The company can come to know various factors
affecting the customers properties buying behaviour.

Company comes to know about customers’ expectations and need for future properties purchases.

The sample size taken for this project is 33 respondents.

1.4 OBJECTIVE OF THE STUDY

1. To study the property purchasing behaviour i.e. (Residential) of different types of customer in
different area.

2. To study the various factors affecting the customer buying pattern especially in case of
Residential properties.

3. To find the expectations and needs of customers

3

CHAPTER 2

LITERATURE REVIEW

2.1 GENERAL

The researches about real estate buying behavior in India were not yet to be found in public literatures.
This research uses a summary of existing variables identified in previous researches. Since the previous
researches were conducted in countries that have significantly different conditions and cultures
compared to INDIA

This chapter will introduce some other areas of research background of consumer behaviour
addressing the works of researchers and marketers. Moreover, consumer decision making process, in
particular, five stages of consumer decision making process will be discussed in detail.

2.2 EARLIER RESEARCHES

2.2.1 Mateja Kos Kokliˇc (SPRING 2009 - A STRATEGIC HOUSEHOLD PURCHASE: CONSUMER
HOUSE BUYING BEHAVIOUR) UNIVERSITY OF LJUBLJANA, SLOVENIA

The aim of this study is to examine consumer house-buying behavior from the consumers’ perspective.
In view of the existing literature exploring consumer decision making, the purpose of this research was
threefold: (a) to propose a conceptual model of consumer decision making within the frame of consumer
behavior; (b) to gain knowledge of factors impacting this process from the empirical standpoint with
the focus on prefabricated house purchases; and (c) to offer implications for beneficial purchases of
prefabricated houses.

2.2.2 Emilia Reis (2015- A RESEARCH ON THE BUYING BEHAVIOUR O F YOUNG CONSUMERS IN
FINLAND)

To study the factors of price elasticity of demand, personal attitude and social influence that affect to
purchase decision.

2.2.3 Thanyamon Sakpichaisakul (Kwan) (2012- CONSUMER BEHAVIOR IN PURCHASING HOME

FURNISHING PRODUCTS IN THAILAND)

This research aims at the analysis of purchasing behavior of furniture consumers in Thailand. This
research then will examine the factors that have influences on furniture purchasing decision process.
The results then will allow the author to be able to recommend to Thai furniture manufacturers and
retailers.

4


2.2.4 Karen M. Gibler BEHAVIOR APPLICATIONS TO
(Associate Professor)( CONSUMER
REAL ESTATE) Stetson School of Business and Economics Mercer University

Study about 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. Consumer
behavior examines not only what behaviors consumers exhibit but also the reasons for those behaviors.
On a macro level, marketers are interested in demographic shifts as well as society’s values, beliefs and
practices that affect how consumers interact with the marketplace.

2.2.5 Njo Anastasia , Aileen Liana Suwitro (April 2005- The Rational and Irrational Factors Underlying
Property Buying Behavior )

To determine the factors that distinguish buyers behavior toward purchasing a property. To determine
the factors that distinguish buyers behavior between buyers intending to live in compared to those
seeking to invest.

5

CHAPTER 3

RESEARCH DESIGN
3.1 GENERAL-

Research design is the plan, structure and strategy of investigation conceived so as to obtained answer
to research (questions and to control variance).

Research design is the specification of methods and procedure for acquiring the information needed it
is the overall operational pattern frame work of the project that indicates what information to be
collected, from which sources and by which procedure.

3.2 TYPE OF RESEARCH DESIGN

(DESCRIPTIVE RESEARCH DESIGN CHOOSEN AND NATURE IS QUALITATIVE)

3.3 DESCRIPTIVE RESEARCH DESIGN

Descriptive Research Design is well structured. This type research design is undertaken in various
circumstances. This research design is very useful to know the characteristics of certain groups such as
age, sex, educational level, occupation or income.

The basic objective of descriptive research design is to find the answers the question relating to, “who,
what, when, where, and how” of the subject under investigation descriptive research design is not
lawless factual and simple! they can be complex also! demanding a high degree of scientific skill on
the part of researcher. Descriptive research design study can be divided into two broad categories, viz;
(a)cross, sectional and

(b) longitudinal

3.4 Qualitative Research

Qualitative research is a non-quantitative type of analysis which is aimed at finding out the (quality of
a particular phenomenon. Research has to deal with subjective of the respondents here.

Type of Research Problem solving Applied Research

Type of research design Descriptive research Design

Nature of Study Qualitative

Type of Questionnaire Structured

Types of Questions Open ended and Close Ended

3.5 RESEARCH PROCESS

FF

FF

F F

F- FEED BACK
FF- FEED FORWARD

3.5.1 SAMPLE DESIGN

Sample size of 100 respondents was taken on the basis of convenience sampling. They were
divided into different range group. The sampling unit was area. This sample can be considering a fair
representative for these rural inhabitants.

SAMPLE PLAN

1. SAMPLE ELEMENT CONSUMER

2. SAMPLE EXTEND IN
3. SAMPLE SIZE 33 CONSUMERS
4. SAMPLE DURATION 15 DAYS
5. SAMPLING PROCEDURE CONVENIENT SAMPLING

3.5.2 METHOD OF DATA COLLECTION/SOURCES

After the research presented has been identified the important step is to collect and analyse data the
researcher has to decide whether he has to collect primary data or secondary data or both. The various
sources of information are divided broadly into two categories

1. Primary Data:

• Sources from where first-hand information is gathered directly are called primary data
source and information collected is called primary data. They are original in character.

• Primary data may pertain to demographic! Social economics! characteristics of consumer!

attitude = opinion of people! their awareness and knowledge and similar aspect.

• Primary data collected through survey and in method researcher has used structured
(questionnaires to get response from respondents. Researcher has personally contacted the
respondent to fill the (questionnaire by asking questions).

7

2. Secondary Data
• The data that are collected for another purpose already exists somewhere is called secondary
data.

• The process of secondary data collection and analysis is called Desk research.

3.4 DATA COLLECTION

In this research, we collect data through ONLINE SURVEY LINK CREATED

(https://freeonlinesurveys.com/s/ZIo5Zbgw#.WkT3B-uZJZo.gmail)

Questionnaire seemed to be the most suitable method of this thesis because we are trying to
find out the opinions of customers towards the contributions of certain factors to customer
retention. The questionnaire has the ability to clearly show these opinions in a numeric way.

Questionnaire: Questionnaire is a way of asking questions without personal interaction. It

can be used for various situations in a research project.

Questionnaires help us to gather enough information from often large groups of people, and
are useful for generating numerical data. Questionnaire provides a good picture for the data
collected and also makes it easy to compare the individual results. Setbacks for
questionnaires is that, it takes a considerable amount of time to develop, they have to be
piloted, and may need refining before they are finally used.

The questionnaire contained TEN questions. (Preview of questionnaire is attached at last of

this report)

The first three questions were the basic information of the respondent’s. Then each of the
remaining questions presents a factor that leads to customer retention.

For each question, a scale of five opinions were set from 1(strongly disagree) to 5 (strongly
agree). This makes it easier for the respondents to understand and have enough measurable
choices to express their opinions.

8

CHAPTER 4
DATA ANALYSIS

QUESTION 1 DO YOU HAVE ANY PLAN TO PURCHASE RESIDENTIAL PROPERTY?

Standard
YES NO Responses
Deviation

All 22 11
5.5 33
Data (67%) (33%)

PLAN TO PURCHASE RESIDENTIAL PROPERTY

33%
YES

NO

67%

9

QUESTION 2. WHAT IS YOUR PRESENT TYPE OF PROPERTY?

Standard
OWNERSHIP RENTAL OTHERS Responses
Deviation

26 6 1
All Data 10.8 33
(79%) (18%) (3%)

Sales

3%
18%

OWNERSHIP

RENTAL

OTHERS

79%

10


QUESTION 3 WHAT TYPE OF RESIDENTIAL PROPERTY YOU WOULD LIKE TO

PURCHASES ?

1 BHK 2 BHK 3 BHK Other (Please

DUPLEX Responses
FLAT FLAT FLAT Specify)

1 3 7 17 7
All Data 33
(3%) (9%) (21%) (52%) (21%)

TYPE OF RESIDENTIAL PROPERTY

18
16
14
12
10
17
8
6
4 7 7

2 3
1
0
1 2 3 4 5

11


QUESTION NO 4 W HICH PROPERTY YOU PREFER ?

Standard
LEASEHOLD FREEHOLD Responses
Deviation

4 29
All Data 12.5 33
(12%) (88%)

Property Type

12%

LEASEHOLD

FREEHOLD

88%

12


QUESTION NO 5. RANK ON THE BASIS OF YOUR CONSIDERATION WHILE PURCHASING

RESIDENTIAL PROPERTY?

LOCATION
Standard Weighted
0 1 2 3 4 5 Responses
Deviation Average

LIKELY - HIGHLY 1 1 0 5 14 12
5.56 33 4 / 5
RECOMMENDED (3%) (3%) (0%) (15%) (42%) (36%)

4 / 5

LOCATION

1, 3%

1, 3%
0
5, 15%
1
12, 36% 0, 0%
2

14, 43% 5

13


PRICE

Standard Weighted
0 1 2 3 4 5 Responses
Deviation Average

LIKELY - 1 0 2 15 10 5
5.38 33 3.45 / 5
CONSIDERABLE (3%) (0%) (6%) (45%) (30%) (15%)

Price
6%

3% 0
15%
1
0%
2

3
30% 46%
4

14


TRANSPORTATION FACILITY
Standard Weighted
0 1 2 3 4 5 Responses
Deviation Average

LIKELY - HIGHLY 1 1 2 6 6 17
5.56 33 4 / 5
CONSIDERABLE (3%) (3%) (6%) (18%) (18%) (52%)

Transportation Facility
3%
3%
0
6%
1
18% 2
52%
3

4
18%
5

15


ACCESSIBILITY TO MARKET
Standard Weighted
0 1 2 3 4 5 Responses
Deviation Average

LIKELY - HIGHLY 1 1 1 7 10 13
4.82 33 3.91 / 5
CONSIDERABLE (3%) (3%) (3%) (21%) (30%) (39%)

ACCESSIBILITY TO MARKET
3%
3%

3% 0

1
40% 21%
2

30% 5

16


QUESTION NO .6 BASED ON YOUR OPINION WHICH FACTORS YOU CONSIDER IS

Very Very Standard Weighted

Unimportant Neutral Important Responses
Unimportant Important Deviation Average

0 1 16 13 3
BRAND NAME 6.59 33 3.55 / 5
(0%) (3%) (48%) (39%) (9%)

0 0 0 6 27
QUALITY 10.46 33 4.82 / 5
(0%) (0%) (0%) (18%) (82%)

0 0 2 11 20
SPACE (sq. ft.) 7.84 33 4.55 / 5
(0%) (0%) (6%) (33%) (61%)

0 0 2 15 16
FACILITIES 7.31 33 4.42 / 5
(0%) (0%) (6%) (45%) (48%)

0 2 4 13 14
INTERIORS 5.78 33 4.18 / 5
(0%) (6%) (12%) (39%) (42%)

0 1 14 12 6
SCHEMES 5.64 33 3.7 / 5
(0%) (3%) (42%) (36%) (18%)

IMPORTANT?

Consumer Opinion

Very Important

Important

Neutral

Unimportant

Very Unimportant

0 5 10 15 20 25 30

SCHEMES INTERIORS FACILITIES SPACE (sq. ft.) QUALITY BRAND NAME

17


4. 1 NULL HYPOTHESIS TEST

(Z-TEST) SAMPLE SIZE = 33

ANNEXURE I

N NEUTRAL CL LOS Z TABLE FROM Z

TABLE
33 2 95% 5% 47.50% 1.96
NULL STANDARD Weighte SE=𝞂/√N ZCALCULATED H0 (A)
HYPOTHESI DEVIATIO d = ((WT. ACCEPTE
S N Average AVERAGE- D (R)
MEAN))/(STD REJECTED
ERROR)
BRAND H0 = 2 6.59 3.55 1.14717175 1.351149029 A
NAME H1 < 2 3

QUALITY H0 = 2 10.46 4.82 1.82085228 1.548725302 A

H1 > 2 1

SPACE H0 = 2 7.84 4.55 1.36476882 1.86844831 A

H1 < 2 3

FACILITES H0 = 2 7.31 4.42 1.27250766 1.901756717 A

H1 > 2 5

INTERIOR H0 = 2 5.78 4.18 1.00616885 2.166634355 A

H1 > 2 1

SCHEMES H0 = 2 5.64 3.7 0.98179798 1.73151711 A

H1 < 2

18


QUESTION NO 7. ARE YOU AWARE ABOUT SCHEMES OFFERED BY DLF GROUP?

Standard Weighted
YES NO Responses
Deviation Average

5 26
10.5 31 1.84 / 2
(16%) (84%)

16%

YES

NO

84%

19


QUESTION NO 8. ARE YOU AWARE ABOUT RERA?

YES NO Standard Deviation Responses Weighted Average

17 16
0.5 33 1.48 / 2
(52%) (48%)

RERA

YES
48% 52%
NO

20

Q UESTION 9. P LEASE INDICATE THE SOURCE OF INFORMATION THAT YOU CONSIDER
FOR PROPERTY PURCHASING ?

Other
HOARDING NEWSPAPER AGENT REALTIVES (Please Responses
Specify)

6 12 14 7 3
All Data 33
(18%) (36%) (42%) (21%) (9%)

Source

7% 14%

17% HOARDING

NEWSPAPER

AGENT
29% REALTIVES

Other (Please Specify)

33%

21


LIMITATION OF THE PROJECT

1. Respondent are not showing interest in responding for questionnaire.

2. The time duration of this survey was 15 days only.

3. The response from the respondents was fair enough but not up to the mark or good

enough.

4. The questions in the questionnaire could be designed more skilfully.

22

CONCLUSION OF THE STUDY

THE FOLLOWING ARE THE CONCLUSION OF THE STUDY

• Quality is considering lot while purchasing residential property.

• Awareness of RERA to consumer is negligible, It can be become a new a way of market strategy

to builders to brought a new segment.

• The Buyers consider Quality and price while purchasing the residential property.

• The customer may change the Brand if the Particular brand is not available and also because

of close substitute.

• Price hike is also one of the reasons for change in brand.

• Adverting and other sales promotion tools have a great effect on sales of the residential

property

23

ANNEXURE I

Q
Sampl Q Q Q Q 5 Q5 Q5 Q5 Q6 Q6 Q6 Q6 Q6 Q6
e 1 2 3 4 (a) (b) (c) (d) (a) (b) (c) (d) (e) (f) Q7 Q8 Q9
1 1 1 4 2 5 4 5 5 3 4 4 4 4 2 2 1 1
2 1 1 3 2 5 5 3 4 2 4 4 3 1 2 2 1 1
3 1 2 3 2 3 3 3 3 2 4 3 4 4 4 2 2 4
4 1 1 4 1 5 4 4 5 2 4 4 4 4 4 1 2 4
5 1 1 5 2 5 3 4 4 2 3 4 3 3 1 2 1 5
6 2 1 2 2 1 3 1 1 2 4 4 3 3 2 2 2 3
7 2 2 5 2 5 4 5 3 3 4 4 4 4 2 2 2 2
8 1 2 4 2 3 3 3 2 2 4 4 2 1 3 2 2 2
9 2 1 4 2 4 4 5 5 3 4 4 4 4 4 2 1 3
10 2 1 4 2 4 3 3 5 1 4 4 3 2 2 2 1 4
11 1 1 4 2 5 2 5 3 3 4 3 3 3 3 2 1 2
12 1 1 4 2 4 3 5 4 3 3 4 3 4 2 2 2 2
13 1 1 3 2 4 3 4 4 2 3 4 3 3 4 2 2 4
14 1 1 3 2 4 3 4 4 2 3 4 3 3 4 2 2 4
15 1 1 4 2 4 4 5 5 2 4 4 3 4 3 0 1 3
16 2 2 5 2 3 3 4 4 3 4 3 4 4 3 2 2 4
17 2 1 3 2 4 3 3 3 3 3 3 3 3 2 2 2 3
18 1 1 4 2 3 4 2 3 3 4 3 3 2 2 1 1 2
19 1 2 3 2 4 3 5 5 3 4 4 4 4 4 0 1 2
20 1 1 4 2 5 3 5 5 3 4 2 4 4 3 2 1 3
21 1 1 4 2 4 4 5 5 3 4 4 4 3 3 2 1 3
22 1 1 4 1 5 5 5 5 4 4 4 4 3 2 2 2 3
23 1 1 4 2 5 5 5 5 4 4 4 4 4 3 2 1 4
24 1 1 3 2 4 4 4 3 2 4 3 4 4 4 1 1 2
25 1 3 4 2 5 5 5 5 2 4 3 3 4 3 2 2 2
26 1 1 4 2 4 2 4 4 3 4 3 2 2 2 2 2 3
27 2 1 5 2 0 5 5 5 2 5 5 5 3 3 2 2 5
28 1 1 2 2 5 0 0 0 2 4 4 4 3 3 2 2 3
29 2 1 3 2 4 3 5 4 2 4 3 4 3 2 2 1 2
30 2 2 4 1 4 4 5 5 4 3 3 3 3 3 2 1 3
31 1 1 1 1 3 3 3 3 3 3 2 3 2 2 1 1 4
32 2 1 3 2 4 3 5 4 2 4 3 3 3 3 2 2 3
33 1 1 4 2 4 4 3 4 2 4 4 3 3 2 1 2 3

24

ANNEXURE II

PERSONAL DETAILS:

NAME
MAIL ID
MOBILE NO.

Q1. Do you have any plan to purchase residential property?

YES NO

Q2. What is your present type of property?

OWNERSHIP RENTAL OTHERS

Q3. What type of residential property you would like to purchases?

1BHK FLAT 2BHK FLAT 3BHK FLAT DUPLEX

Q4. Which PROPERTY you prefer?

LEASEHOLD FREEHOLD

Q5. Rank on the basis of your consideration while purchasing residential property?

(a) LOCATION 1 2 3 4 5

(b) PRICE 1 2 3 4 5

(c) TRANSPORTATION FACILITY 1 2 3 4 5

(d) ACCESSIBILITY TO MARKET 1 2 3 4 5

Q6. Based on your opinion which factors you consider is important?

(a) BRAND NAME

(b) QUALITY
(c) SPACE
(d) FACILITIES
(e) INTERIORS
(f) SCHEMES
(0- VERY UNIMPORTANT, 1- IMPORTANT, 2-NEUTRAL, 3-IMPORTANT,
4- VERY IMPORTANT

25


Q7. Are you aware about schemes offered by DLF GROUP?

YES NO

Q8. ARE YOU AWARE ABOUT RERA?

YES NO

Q9. Please indicate the source of information that you consider for property purchasing?

(a) HOARDING
(b) NEWSPAPER
(c) AGENT
(d) RELATIVES

26

BIBLIOGRAPHY
Books referred

Title : - Marketing Management

Name of the Author : - Philip Kotler

Title : - Marketing Research

Name of the Author : - Thomas C Kinnear

Title : - Consumer Buying Behavior

Name of the Author : - J. Paul Peter

Title : - Research Methodology

Name of the Author : - Dr. S. Shajahan

Other sources:-

1) News Paper

2) Magazines

3) Internet websites

Webliography Referred :

a) www.google.com

b) www.marketingprofessors.com

c) www.indiatimes.com

Survey Link- https://freeonlinesurveys.com/s/ZIo5Zbgw#.WkT3B-uZJZo.gmail

27