RESEARCH PROJECT REPORT

ON

CONSUMER BUYING BEHAVIOUR ANALYSIS OF REAL ESTATE MARKET

EMPHASIS IN RESIDENTIAL MOBILITY, CHOICE AND SATISFACTION

SUBMITTED TO PUNJAB TECHNICAL UNIVERSITY

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE

BACHELOR OF BUSINESS ADMINISTRATION

CHANDIGARH BUSINESS SCHOOL

(2011-2014)

BY
Shivam Dhadwal

1105453

BBA 5th SEM

UNDER THE SUPERVISION OF

Mrs. Jasminal Kaur
 Certificate of Supervisor

This is to certify that Mr. Shivam Dhadwal Roll No. 1105453 has completed the research
project titled “CONSUMER BUYING BEHAVIOUR ANALYSIS OF REAL ESTATE
MARKET EMPHASIS IN RESIDENTIAL MOBILITY, CHOICE AND SATISFACTION ”
under my supervision in partial fulfillment of the BACHELOR OF BUSINESS ADMINISTRATION
degree of PUNJAB TECHNICAL UNIVERSITY.

Supervisor’s signature:

Supervisor’s name:

Supervisor’s Designation:

Date:

Place:
 Declaration

I, hereby declare that the research project report titled “CONSUMER BUYING
BEHAVIOUR ANALYSIS OF REAL ESTATE MARKET EMPHASIS IN RESIDENTIAL
MOBILITY, CHOICE AND SATISFACTION“ is my own original research work and this
report has not been submitted to any University/Institute for the award of any
professional degree or diploma.

Shivam Dhadwal
BBA 5th semester

Chandigarh Business School

Date:

Place:
 PREFACE

For management career, it is important to develop managerial skills. In order to achieve

positive and concrete results, along with theoretical concepts, the exposure of real life
situation existing in corporate world is very much needed. To fulfill this need, this practical
training is required.
I took training in fast growing company MOHALI LAND DEVELOPERS located in
MOHALI. It was my fortune to get training in a very healthy atmosphere. I got ample
opportunity to view the overall working of the company.

This report is the result of my seven weeks of summer training in MOHALI LAND
DEVELOPERS LTD, as a part of B.B.A. The subject of my report is-the study on marketing
practices

In the forthcoming pages, an attempt has been made to present a comprehensive report
covering different aspects of my training.

SHIVAM DHADWAL
AKNOWLEDGEMENT

Learning is a never ending proves. We learn during different stages of life. All my learning
during MOHALI LAND DEVELOPERS LTD would guide me ahead in my career.

Wish profound respect and gratitude, I take this opportunity convey my thanks to the
management of Mohali land developers limited specially MR. VIKAS(MARKETING MANAGER &
PROJECT INCHARGE) for giving me the opportunity to complete the training here.

I am extremely grateful to all the management staff MOHALI LAND DEVELOPERS LTD for their
co-operation & guidance, which have helped me a lot during the course of training. I have
learned a lot of working with them and I will be indented to them for this value addition in
me.

SPECIAL THANKS TO:

Mrs. Jasminal Kaur (PROJECT GUIDE)

Mr. Vikas (MARKETING MANAGER)

They have been a constant source of inspection to me throughout the period of this industrial
training.

And all the faculty member of MANAGEMENT DEPARTMENT for their effort and
constant co-operation has been a significant factor in the accomplishment of my industrial
training.
Shivam Dhadwal
 INDEX

Sr. No Content Page No.

1 Certificate issued by Company |

2 Certificate issued by Project Guide /Supervisor ||

3 Declaration |||

4 Acknowledgements |V

5 Preface V

6 Organization Profile/Introduction

7 Topic – An Overview

8 Research objectives

9 Methodology

9a.  Research Design

9b  Source(s) of Data

9c  Tools used for Data collection

9d  Techniques used for Data analysis

10 Analysis & Interpretation

11 Findings

12 Conclusion and Recommendations

13 Bibliography / References
 COMPANY
&
GROUP PROFILE
COMPANY PROFILE
Mohali Land Developers is a Leading Real Estate Company and provides Plot, Flat,
Apartments commercial as well as residential etc.Mohali land developers Launched in the
year of 2010.Since the year of launching its existence, Mohali Land developers has achieved
the status of a reputed company in Real Estate.
Well planned with the most disciplined concept MLD intends to provide you an excellent
approach to luxury and comfort living.

MLD Group is built on values of trust and experience. We take pride in putting our customer
before us. This has not only helped us in making a strong footing in the real estate market but
has also helped us maintaining an ever increasing customer base.
An ISO 9001 : 2000 & 14001:2004 Company DET NORSKE VERITAS QUALITY
SYSTEM CERTIFICATE (DNV) has awarded an ISO 9001: 2000 Certificate for Quality
Management System Standards maintained by the company for design, development,
construction & marketing of Residential and Commercial complexes.

Mohali Land Developers has become synonymous with quality construction in tri-
city. The company is known for maintaining international quality construction standards and
also for its ethics, transparency, reliability, professionalism and reflexivity.

The Mohali Land Developers boasts of a concrete record of more than 100 completed
projects, over 100 Thousand Sq.Ft. completed construction and 10,000 satisfied customers.
The 15 ongoing residential and commercial projects and successful diversification into
corporate ventures bear testimony to the success story of Mohali Land Developers.

Quality Policy:

Mohali Land Developers are committed to design, develop, construct and market
Residential, Commercial complexes and all such types of shelters, which shall meet customer
need consistently. We shall further strive to enhance the interest of our partners, employees,
suppliers & society.

Quality Objectives:

1. Demonstrate commitment and compliance to the Quality Management System.

 2. Improve the competence of employees by continuous training in the areas in which
they work.
3. To be a market leader by enhancing the customer satisfaction.
4. To create a customer focused organization.

Aims:

"Quality is primary" to Mohali Land Developers. All systems and

procedures are formulated to achieve the "Quality Objective". Total quality principles are
adopted in selection of the material, implementation of the project, and even after the project
is handed over. The Group is in the process of implementing 'Total Quality Management' in
all the aspects of its business.

Values:

 Honor and respect those who are experts in their fields, those who are wise,
knowledgeable and insightful. Project the eminent & nurture the learned.
 Be humble and grateful for any gesture, however small
 With plentiful resources, guard against mismanagement and waste.
 Do not use the force but work through. Conciliation, appreciation and inspiration.
 Maintain your position through growth and expansion, which requires effort.
 Practice five strategies of action: Alliance, Patience, Optimum Utilization of
Resources, Nurturing of human assets and Aggressiveness.
 Plan for the acquisition of wealth with the eyes of crane, employ a variety of postures
like peacock, strike with the ferocity of a boar and display the velour of a lion.
 Offer your gratitude to God.
Human Resources:

Mohali Land Developers is professionally managed and a significant force in an

intensely competitive market. This is because we treat our employees with respect and
dignity. We believe the growth of the Group is dependent on the growth of our people. They
find an independence to chart their own course, openness to new ideas, efficiency in
implementation and an enormous professional satisfaction. We have men of mission who can
face challenging opportunities with finesse and purpose. The open door policy and informal
and vibrant atmosphere is an achievement in itself.

Technology:

In the context of technological advances, the Mohali Land Developers is in the

forefront in implementing State-Of-The-Art Technology with the latest systems / Networking
techniques. These assists management to access information and establish proper checks and
controls over the business transactions. Continuous technological up gradation helps the
Group keep up with time.

Social obligation:

The group believes in repaying its debt to society and does so in many different ways.
After realizing the grave need for shelter it has initiated the task of development of slums.
Various projects for beautification, Water Fountains, Schools, and Developments of Gardens,
large roadside plantations, drinking water and public toilets facilities have been taken up. On
a more macro level, the group has contributed its mite towards promoting sports
development, besides lending a helping hand to many charitable institutions.

 Slum development
 Drinking Water program
  Helping in building better public toilet facility
 Environment cleanliness and beautification
 Creating gardens
 Sports
 Schools and Hospitals
 Tree Plantations.

After Sales:

Mohali Land Developers strive hard and are committed to provide all such type of
services related to pre & post booking activities in order to enhance customer satisfaction.

We assist all the esteemed customers to avail loan, help them in all type of
correspondences required ensure them to handover timely possession.

It is our endeavor to sort out all the complaints / queries before and after sales to
achieve maximum customer satisfaction.

Financial Assistance:

 ICICI Bank
 HDFC Bank
 SBI

Our Mission
To provide customer satisfaction and create value for stakeholders through professionalism,
transparency, quality, cutting-edge technology and social responsibility.

Our Vision
To be a trusted leader in the real estate sector contributing towards a progressive India.
Products Range & Variety

Residential Projects

Commercial Projects

Multiplex / Retail Projects

IT / BTS Projects

Investment Opportunities

Future Projects
 Completed Projects

AN
OVERVIEW
OF
CONSUMER
BEHAVIOUR
 ABSTRACT

Most real estate study is based on neoclassical economics. Consumers are expected to make
real estate decisions that maximize their utility and wealth given price and income
constraints.
Tastes and preferences are taken as given. The outcomes of consumer actions are used to
infer these preferences. The study of real estate would benefit from an expansion to include
consumer behaviour concepts from sociology and psychology as synthesized through
marketing. Inclusion of these concepts in real estate education will help real estate analysts
better explain and predict the behaviour of decision-makers in real estate markets. This paper
will present a review of the consumer behaviour literature relevant to real estate and suggest
how these concepts could expand real estate study.

Most real estate study is based on neoclassical economic theory that assumes that people
make rational decisions about renting and buying real estate as part of their attempt to
maximize utility. While recognizing that real estate markets are imperfect, most real estate
researchers do not examine the influence that the diversity of real estate consumers has on the
demand for real estate. Consumers are complex human beings driven by internal and external
forces, some of which are beyond their control and many of which they are relatively
unaware.
Rather than ignore the human element of decision making or put all aspects of nonfinancial
decision factors in a black box called “tastes and preferences,” real estate students,
professors, and practitioners can benefit from integrating the study of consumer behaviour
with the financial economic approach to real estate study. Greater knowledge of real estate
consumers and their behaviour will lead to better understanding and prediction of decision
makers’ actions in the real estate market. The purpose of this paper is to present some of the
most common consumer behaviour concepts and explain how integration of consumer
behaviour theories and understanding would improve real estate study.
THE STUDY OF CONSUMER BEHAVIOR

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 behaviour examines not only what behaviours consumers exhibit but also the
reasons for those behaviours. 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. On a micro level, consumer behaviour focuses on human behaviour
and the reasons behind these behaviours. Thus, concepts drawn from psychology and
sociology are prominently reflected in the consumer behaviour literature. The following
sections describe these concepts as they are applicable to the development of an increased
understanding of real estate decisions in a consumer behaviour context.

 Consumer Choice and Decision Making

Much of the study of consumer behaviour focuses on consumer choice. Utility theory in
economics and attitude theory in social psychology have strong similarities and constitute a
basis for consumer decision and choice processes. Consumers purchase goods and services
for the benefits derived from their use. While the study of economics focuses on outcomes,
consumer behaviour emphasizes the process. Rather than assuming perfect conditions,
consumer behaviour researchers explicitly recognize the impact of situational elements on
behaviour and the variance among individuals.
Most real estate purchases and leases would be considered high involvement goods that
would require complex decision-making. The three major comprehensive models of this type
of consumer decision making (Engel, Kollat and Blackwell, 1968; Howard and Sheth,
1969; Nicosa 1966) trace the psychological state and behaviour asers from the point of
individual purchat which they perceive a need through the search for information, evaluation
of alternatives, purchase, and final evaluation of the consequences. The assumption is that a
purchase act is preceded by a sequence of mental information processing. This involves a
cognitive function in forming beliefs, an emotional component in developing positive or
negative attitudes, and a reaction through being motivated to select and buy.

Decision rules
When evaluating alternatives, such as choosing which property to purchase or rent,
consumers choose from a list of acceptable alternatives (evoked or consideration set) based
on the criteria they have selected as being important. For a product to be considered by a
consumer, he must know that it exists and perceive that it can satisfy his needs.
The criteria a consumer uses to choose between alternative products are the product attributes
the consumer considers important. Consumers may make the purchase decision using
compensatory or non compensatory decision rules. With a compensatory decision rule, the
consumer identifies the important attributes, rates the alternative products on each attribute,
and selects the product with the highest score. With a simple additive rule, the consumer
selects the product that is judged to have the largest number of positive attributes.
This is a relatively simple rule used most often when motivation or ability is limited (Alba
and Marmorstein, 1987). Thus, a consumer might choose the apartment that offers a pool,
exercise room, built-in washer and dryer, but inconvenient location over an apartment with a
pool and a convenient location.

The weighted additive is a more complex compensatory rule in which the relative importance
of each product attribute is also factored into the decision. Therefore, the consumer completes
the more complicated task of computing a summated weighted score for each product on the
salient attributes and selects the product with the highest overall score.
In contrast, non compensatory decision rules do not balance all attributes and determine
whether the positives outweigh the negatives. Rather, if the product does not meet a
minimum standard on an important attribute, then it will not be considered. Using a
conjunctive decision rule, the consumer sets minimum acceptable levels on all important
attributes and eliminates any alternative that does not meet all the minimums. This helps
consumers to narrow down the choices for further evaluation. If none of the products meets
all the cutoff requirements, either the consumer must change the minimums acceptable or
change his or her decision rule (Grether and Wilde, 1984). In the above example, if the tenant
requires a pool, exercise room, built-in appliances, and convenient location, then neither of
the apartments would be acceptable. The consumer will either continue to search for the
appropriate property or compromise on her standards.

With the lexicographic rule, the consumer first ranks the attributes in terms of perceived
importance. Then the alternatives are compared on this one most important attribute. If one
scores sufficiently high on this most important attribute, then it is selected. If two or more are
perceived as equally good, they are then compared on the second most important attribute.
This process continues until the tie is broken. Therefore, if a tenant says she selected an
apartment because the balcony has French doors instead of sliding doors, it is important to
remember that this difference may reflect the tie breaker after other, more important,
attributes were deemed to be equal across apartment options.

Consumers may use a combination of decision rules in choosing a property. First, they may
use a rule to narrow down the choice set with some simple cutoff, and then they may apply a
more complex compensatory rule to make the final choice. Some criteria are more salient
than others and those attributes will have a greater impact or importance in determining
consumer selections. Whether a characteristic is salient depends on the alternatives and
consumer’s evaluation of them. If, for example, the consumer with small children believes all
neighbourhoods in the city offer equally good schools, then school quality is not a deciding
factor in which house to buy. Salient attributes that actually influence the evaluation of
alternatives are known as determinant attributes (Alpert, 1971). The particular criteria
consumers use in their decision making depend on situational influences, similarity among
choices, motivation, involvement, and knowledge.

Decisions involving widely disparate alternatives (a single family detached house, a mobile
home in a trailer park, and a houseboat moored at a dock) may require the consumer to use
more abstract evaluative criteria to evaluate the alternatives (Bettman and Sujan, 1987;
Corfman, 1991; Johnson, 1984; Johnson, 1989). The more similar the options, the more the
consumer can rely on concrete criteria and price to make comparisons. The consumer’s
motivation for purchasing a property will directly affect the criteria used to evaluate
alternatives. Experienced consumers are more likely to know which dimensions are useful for
comparing alternatives. First-time buyers are more susceptible to external influences
determining what criteria they use during decision-making (Bettman and Sujan, 1987).
The average consumer’s lack of information about all available real estate options may result
in the consumer not purchasing the property that would best serve his needs because he is
unaware that the property exists. Others may make less than optimal decisions because
comparing all the properties on all the salient attributes may be too complex. They may resort
to a non compensatory decision making process to make the procedure manageable. If
consumers are using non compensatory rules to make decisions, then the real estate appraiser
needs to identify which property characteristics are being used to screen properties and
remove the eliminated properties from the list of comparables. Otherwise, the analyst may
overestimate the contribution of certain attributes to value. Property developers and managers
need to recognize whether consumers are making decisions based on cutoffs. If a consumer
sets an acceptable minimum as two bathrooms, then any house with only one and one-half
bath would not be considered and a house with three bathrooms may not be valued any higher
than a similar house with only two baths. Similarly, if consumers are using lexicographic
rules, then the property must be perceived to possess a noticeably higher level of the most
important attribute(s) to ensure being selected.
Information search
Consumers seek and use information as part of a rational problem solving and decision
making process. Consumers first search internally for historically gathered information
(Bettman, 1979; Punj, 1987). Experience, length of time since last purchase, and satisfaction
with previous purchase will affect the consumer’s reliance on internal information. As most
consumers purchase real estate infrequently, they rarely rely solely on their past knowledge
when selecting a new property to purchase.

Consumers may also conduct an external search of personal and impersonal sources of
information. Situational determinants that can constrain information search include the
quantity and availability of information in the marketplace and time pressure (Beatty and
Smith, 1987).Other factors that influence search behavior are product determinants and
consumer determinants.

Product determinants include a variety and type of product features. For example, if
consumers perceive great differences between products, they are likely to make more
comparisons. Also, products characterized by innovations may require consumers to update
their knowledge since last purchase through an information search process. The relatively
high price of real estate will create concerns about the financial risks involved in the purchase
and lead to greater search (Kiel and Layton, 1981).

Some of the consumer determinants that affect individual search behavior include knowledge,
involvement, beliefs and attitudes, and demographic characteristics. Research has found that
product knowledge may be positively or negatively related to the amount of search (Beatty
and Smith, 1987; Kiel and Layton, 1981; Newman and Staelin, 1972; Punj and Staelin, 1983;
Urbany, Dickson, and Wilkie, 1989). Knowledge can allow the consumer to rely more
heavily on internal information, but it can also enhance search by enabling more effective use
of newly acquired information. When consumers feel more confident about their ability to
judge products, the will typically acquire more information (Duncan and Olshavsky, 1982).
This implies that there may be an inverted-U relationship between knowledge and external
search (Bettman and Park, 1980). Consumers with extremely limited knowledge (such as first
time homebuyers) may feel incompetent to undertake an extensive search and analysis on
their own. Instead, they may rely heavily on others such as friends, relatives, or salespersons.
Moderately informed consumers possess sufficient knowledge to explore and understand
more information, but their knowledge is not so great that they feel comfortable relying on
memory and experience, so they will undertake more extensive external search on their own.
Those consumers with the greatest knowledge of the product and market may already possess
all the information they need to make a decision without a formal extended search.

Consumers differ in their attitudes toward shopping. In general, consumers engage in more
search as their attitudes toward shopping become more favourable (Beatty and Smith, 1987;
Punj and Staelin, 1983). Individual beliefs about the cost versus benefits of search will also
guide search (Urbany, 1986). Research indicates that search may be related to several
demographic characteristics (Beatty and Smith, 1987). Age is often negatively related to
search (Cole and Balasubramanian, 1993). Older consumers have greater experience with
many products so they can rely on internal information. Higher income consumers often
search less than lower income consumers because of the value of their time (Urbany, 1986).
More educated consumers usually search more, perhaps because of their greater confidence
in their ability to undertake the search and use the information gathered effectively (Duncan
and Olshavsky, 1982). Because the modes of information search and, ultimately,
decisionmaking are a function of both internal and external influences on behavior, the
remaining sections focus on the consumer behaviour implications of each.
  Internal Determinants of Consumer Behaviour
 Motivation
The force that drives a person to buy and use a good or service is called motivation. It
explains why people buy what they do and what they are trying to accomplish. Needs arise
from the discrepancy between actual and desired states of being. Needs can be classified as
utilitarian or hedonic/experiential. Utilitarian needs lead to consideration of objective product
attributes or benefits, whereas hedonic needs elicit subjective responses, pleasures, and
aesthetic considerations (Havlena and Holbrook, 1986; Holbrook and Hirschman, 1982). It is
common for utilitarian and hedonic needs to function simultaneously in a purchase decision
(Srinivasan, 1987). As the discrepancy between the desired and actual state of being
increases, a condition of arousal called a drive is activated. When the drive becomes strong
enough, the consumer will take action in an attempt to satisfy the perceived need. Wants refer
to specific products that consumers believe will satisfy the need. Benefits are what consumers
derive from products and the reasons they want them (Foxall and Goldsmith, 1994).

Thus, a real estate buyer may be trying to satisfy both a utilitarian need for space and a
hedonic need for status simultaneously. An accurate valuation model must consider that the
benefits the buyer is expecting are not limited to financial rewards.
 Perception
Perception deals with recognizing, selecting, organizing, and interpreting stimuli to make
sense of the world around us. People receive stimuli from their environment through the five
senses, which they then must interpret. People are selective and interpret stimuli that
reinforce and enhance their existing beliefs. Consumers tend to interpret what they perceive
so that it does not conflict with their basic attitudes, personality, motives, or aspirations. They
pay attention to stimuli deemed relevant to existing needs, wants, beliefs, and attitudes and
disregard the rest.

One perception important to the study of consumer behaviour is the level of perceived risk in
a potential purchase. Types of risk consumers face include functional/performance, financial,
physical, psychological, social, and time (Ross, 1975). The amount of perceived risk is a
function of the product (price, length of time consumer will own, cost of switching,
additional products and services needed to be consumed with it), characteristics of the
consumer (resources, willingness to gather and use information, experience), and external
forces (information available, options to reduce the consequences of the choice).
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.

Similarly, if a consumer perceives investment in houses as safe and investments in industrial

property as risky, then no amount of financial analysis may be able to sway them. In addition,
two investors in similar financial situations may place different risk premiums on a particular
investment because of their personal attitude toward risk.

 Knowledge and learning

Information processing describes the series of steps by which information is encountered
through some exposure to a person’s senses, attended to, interpreted, understood and
accepted, and stored in memory for future use in making decisions (McGuire,
1976). Elaboration via mental processing transforms this information into beliefs, attitudes
and intentions that determine product choice and related aspects of purchase. For a stimulus
to be effective, it must be of sufficient strength to reach the lower or absolute threshold to
activate the consumer’s sensory receptors, creating a sensation.

Because of the sheer number of stimuli to which consumers are exposed on a regular basis,
not all stimuli will receive additional processing. Consumers subconsciously screen stimuli
and select those that deserve their attention (Janiszewski, 1993). Consumers who have
recognized a need are more likely to pay attention to information about products that can
satisfy that need. People are also more receptive to information that maintains or enhances
consistency with their beliefs and attitudes while they avoid information that challenges their
beliefs and attitudes (McGuire, 1972). Thus, real estate marketers may encounter difficulty in
communicating with potential buyers and tenants until the consumer has recognized a need
for a move.

When a consumer pays attention to a stimulus, he or she attaches meaning to it. This meaning
will depend on how a stimulus is categorized and elaborated in terms of existing knowledge.
Consumers store information in memory in the form of associations (Anderson,
1983). According to the associative network concept, memory consists of a series of concepts
and links between those concepts. A network of these concepts and links about a product are
combined into a high-order knowledge structure called a schema (Alba and Hasher, 1983).
Thus, as a consumer processes a new piece of information, he will categorize that information
and integrate it with his current knowledge. The degree of integration between the stimulus
and existing knowledge that occurs while a stimulus is being processed will influence the
amount of learning that takes place (Craik and Watkins, 1973). Someone who has a
recognized need will more actively process information, resulting in greater elaboration and
learning. A developer or property manager may make use of the memory network by using a
family brand name for all properties or giving an office park a name that is easily associated
with a landmark.
  Attitudes
An attitude is an overall evaluation about something combining cognitive beliefs, emotional
affects, and behavioural intentions. Attitudes may vary along the dimensions of strength,
direction (positive or negative), and stability (Eagly and Chaiken, 1993). Also, not all
attitudes are held with the same degree of confidence (Berger, 1992). Attitudes based on
direct experience with a product are usually held with more confidence than those derived
from indirect experience. Confidently held attitudes will usually be relied on more heavily to
guide behaviour (Berger, 1992; Fazio and Zanna, 1978). If a consumer does not feel
confident in an attitude, he or she is more likely to search for additional information before
making a decision.
Attitudes held with less confidence are also more susceptible to change.

One of the most widely accepted frameworks of the relationship between attitudes and
consumer behaviour is the Extended Fishbein model, also known as the Theory of Reasoned
Action (Ajzen and Fishbein, 1980). This model states that behaviour is best predicted by
intention which is a function of a person’s attitude toward a behaviour subject to subjective
norms that influence her behaviour. The attitudes in this model are developed from beliefs
about the favourableness of a behaviour and the strength of those beliefs. The model stresses
subjective perceptions and evaluations of behavioural consequences rather than objective
measures. It also stresses the concept of salience, which implies the individualization of
judgments about the consequences of behaviour.

The multi attribute attitude model provides insights into the reasons behind consumers’
choices. 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.

On the other hand, consumers may use the same attributes to evaluate product choices, but
have different beliefs about the products and their ability to satisfy their needs.

Although both consumers may want a microwave, one may believe that a built-in model is
too small and will be difficult to replace while another believes that built-in models can be
just as large as a countertop model and will be relatively easy to replace.

Nelson and Rabianski (1988) recognized that the value of single family housing is a function
of demographic, economic, and psychographic variables. The housing market segments that
they defined in terms of differences in the relative importance of each criterion did not
necessarily correspond to simple demographic measures. Appraisers need to identify the
housing attributes that different market segments use in selection and pricing decisions.
Housing can be classified into major types through the clustering of alternatives seen by most
probable buyers as providing similar use, not necessarily the most physically similar
properties.

The physical and psychological factors that may affect the perception of product attributes by
the most probable buyers should be considered (DeLisle, 1985).

The multi attribute attitude model also provides guidance for changing consumer attitudes
(Lutz, 1975). The choices are to change the consumer’s beliefs about the product or change
the consumer’s ranking of the importance of an attribute. However, whether a positive
attitude leads to an intention to purchase a product and, subsequently, to its actual purchase
depends on several factors. Attitudes and intentions are more likely to be good predictors of
behaviour when they are measured at a time relatively close to when the behaviour is to
occur, before situational influences and unexpected events can have an impact (Cote,
McCullough, and Reilly, 1985). Thus, the question “Do you plan to move in the next three
months?” will be a more accurate predictor of behavior than “Do you expect to move in the
next three years?”

The level of social pressure present in the purchasing situation also affects whether consumer
behaviour will be consistent with personal attitudes. A consumer may make a socially
acceptable purchase of a single family detached house that may not reflect his true preference
for a loft apartment. Another limitation to acting in congruence with attitudes is whether a
consumer has volitional control, that is, whether she can perform the behavior at will (Ajzen,
1991). A consumer may want to purchase a property, but no lending institution may be
willing to grant her a loan.

 Self-concept
Self-concept is an organized set of perceptions of the self, comprised of such elements as the
perceptions of one’s characteristics and abilities; the perception of oneself in relation to
others; and objectives, goals and ideals which are perceived as either positive or negative
(Rogers, 1951). Self-concept is now generally viewed in several dimensions: ideal self (what
one aspires to be), real self (the way one thinks one actually is), self in context (how one sees
oneself in different social settings), and extended self (possessions and artifacts help define
who one is) (Walker, 1992). There is some evidence that consumers purchase products that
are consistent with the actual self or that are expected to help achieve the ideal (Sirgy, 1980;
1982). Purchases and ownership that may appear economically irrational may be explained
through the concept of extended self where objects may take on characteristics that go far
beyond their utilitarian features and people may develop deep and complex attachments to
them (Belk, 1988).

Real estate can be a 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,
individualized, personal roles in the lives of their occupants (Downs, 1989).
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.

 Personality
Personality accounts for consistent patterns of behaviour based on enduring psychological
characteristics (Kassarjian, 1971). It is the pattern of traits and behaviours that makes one
individual unique and different from all others. Personality may be described using the
psychoanalytic, socio-psychological, or trait-factor theories.

Psychoanalytic theory asserts that the human personality system consists of the id, ego, and
superego (Wells and Beard, 1973). The id seeks immediate gratification for biological and
instinctual needs. The superego represents societal and personal norms and serves as an
ethical constraint on behaviour. The ego mediates the demands of the id and the prohibitions
of the superego. The dynamic interaction of these components results in unconscious
motivations that are manifested in human behaviour.

Socio-psychological theory states that the individual strives to meet the needs of society
while society helps the individual to attain his or her goals (Hall and Lindzey, 1970).
Social variables are considered to be the most important determinants in shaping personality.
Behavioural motivation is directed to meet those needs.

Trait-factor theory contends that an individual’s personality is composed of distinct

predisposition attributes called traits. Traits are relatively enduring ways in which one person
differs from another. These traits are common to many individuals, but vary in absolute
amounts among individuals. Traits are expected to exert fairly consistent effects on behaviour
regardless of the environmental situation (Buss and Poley, 1976).
In general, personality appears to be related to how consumers make decisions about
innovative products (Foxall and Bhate, 1993). For example, people who have a high need for
cognition enjoy the effort of information-processing activities and may actively seek and
consider more information about a product. Consumers’ response relative to risk is related to
personality. Risk takers tend to be thrill seekers with a need for stimulation and easily
become bored. They are likely to list success and competence as their goals in life in contrast
to risk avoiders, who list happiness as their first choice (Farley, 1986). Some consumers are
more self-monitoring, that is, they are less influenced by external forces than others (Snyder,
1979).

Thus, 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.
  Lifestyle
Lifestyle refers to the distinctive ways in which consumers live, how they spend their time
and money, and what they consider important -- activities, interests and opinions.
Lifestyles evolve over time, so consumption patterns may change over time (Kelly, 1955;
Reynolds and Darden, 1974). Psychographics is a common technique used to measure
lifestyles based on a consumer’s activities and demographic characteristics (Demby, 1989).
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
centre.
 External Determinants of Consumer Behaviour

 Reference groups
Reference groups are individuals or collections of people whom the individual uses as a
source or point of comparison for attitudes, beliefs, value or behaviour. Consumers belong to
some of the groups that influence their consumer behaviour and either aspire to join or work
to avoid association with others. Some of these groups are formal groups, such as the
American Real Estate Society and others are simply informal groups of friends. The level of
influence a particular reference group has on an individual depends on cultural pressures, fear
of deviance, commitment to the group, and group unanimity, size, and expertise.
Reference groups affect consumer choice in three principal ways: normative compliance,
value-expressive influence, and informational influence. Normative influence is when
reference groups affect behaviour through pressure for conformity and compliance. This
pressure is most likely to be felt when the consumer feels the rewards from compliance
exceed the cost (Homans, 1961), there is strong motivation for social acceptance (Bearden
and Rose, 1990), and the product is publicly conspicuous in its purchase and use (Miniard
and Cohen, 1983). Value-expressive influence is when a need for psychological association
with a group is evidenced by acceptance of its norms, values, or behaviour and a conforming
response is made. The desired outcomes are enhanced image in the eyes of others and
identification with people who are admired and respected. As an informational influence,
consumers often accept the opinions of others as providing credible and needed evidence
about products (Burnkrant and Cousineau, 1975). Research consistently demonstrates that
personal word of mouth influence has a more decisive role in influencing behaviour than
advertising and other marketer-dominated sources (Herr, Kardes, and Kim, 1991). Greater
perceived credibility is the deciding factor.

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.
  Culture
Culture consists of society’s beliefs, values, ethics, customs, shared meanings, rules, rituals,
norms, and traditions. Culture provides people with a sense of identity and an understanding
of acceptable behavior. Culture is deep-seated and enduring, but does change slowly over
time. Values represent beliefs about life and acceptable behavior. Values express the goals
that motivate people and appropriate ways to attain these goals. The values that dominate a
nation define its national character. National character is the enduring personality
characteristics found among the population of a nation (Clark, 1990).

Some enduring American core values include achievement and success, activity, efficiency
and practicality, progress, material comfort, freedom, and individualism. The origin of these
values is described by Arensberg and Niehoff (1980) as coming from life on the frontier of a
“new world” in combination with Calvinist doctrine, English law, and ideas of egalitarian
democracy and a secular spirit from the French and American revolutions. Some of the trends
marketers are watching in the U.S. include growing environmentalism, decreased
materialism, increased emphasis on self fulfilment, and increased emphasis on the home and
family (Roper, 1988).

Personal values reflect the choices an individual makes from the social value systems to
which that individual is exposed. Individuals are influenced by social values of groups to
which they belong (nation, religion, family), but they choose from these various social values
to develop their own personal values. Personal values have been linked to brand choice and
product usage (Valette-Florence and Jolibert, 1990; Vinson, Scott and Lamont, 1977).
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 aging 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 placed on
individualism is reflected in the demand for customized 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.

 Subculture
Subcultures are racial, ethnic, religious, or other groups whose members are distinguishable
from the general population and who are held together by common culture and/or genetic
ties. To the degree that people in an ethnic group share common customs, values, rituals, and
traditions that are different from those of other ethnic groups or the larger society, they
constitute a distinct ethnic group (Hirschman, 1982). Major subcultures in the
U.S. includes Asian-Americans, blacks, and Hispanics, as well as religious microcultures.
As an example of how a consumer’s subculture may affect real estate demand, some
Asian-Americans are sensitive to design and location of home as these affect a home’s chi, an
invisible energy current that is believed to bring good or bad luck. A home can bring good
feng shui by rounding curves to bring gentle chi which travels on a curved path while
stopping harmful chi that travels in straight line (Fost, 1993). A home without the proper
design elements would not be an acceptable real estate alternative.

 Social Class
Social stratification represents the hierarchical division of members of a society into relative
levels of prestige, status and power (Rossides, 1990). Social class refers to divisions based on
economic and demographic characteristics. Those in same stratum have roughly similar
consumption, lifestyle, and income, and socialize with each other. While upward and
downward mobility is possible in the U.S., most Americans tend to remain in the stratum into
which they were born (Tyree and Hodge, 1978).

Nine variables have emerged from the research as most important in determining social class:
the economic variables of occupation, income and wealth; the interaction variables of
personal prestige, association and socialization; and the political variables of power, class
consciousness and mobility (Gilbert and Kahl, 1982). Most people feel comfortable when
they are with people of similar values and behaviour and limit their social interactions to their
immediate social class.

Possessions are symbols of class membership, with wealth reflected in the items purchased.
The most important possession decision reflecting a family’s social class is the choice of
where to live, both the type of home and the neighbourhood. Thus, 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 and neighbourhood that they think members of the higher class would choose.

 Family
The most influential reference group is the consumer’s family. The family teaches the
consumer cultural values that have a substantial impact upon shopping behaviour. It
continues to be a point of reference even when the consumer has formed his own household.
Many products are purchased by the family unit rather than individuals. Family members
may play instrumental roles, such as determining the financing and functional attributes of
purchases, or they may play expressive roles, supporting other family members in their
decision and expressing the family’s aesthetic or emotional needs. Family members may be
involved in real estate decision making as gatekeepers, influencers, deciders, buyers, users,
and maintainers. The gatekeeper may initiate the purchase process and gather the
information. Those with the most expertise may exert a less direct influence. The decider is
usually the person with the financial authority and power to choose how money will be spent.
The buyer handles the actual transaction and the users and maintainers are the ones who
receive the benefits of the purchase.

The role structure of the husband and wife in consumer decision making varies with the type
of product, stage in decision process, and nature of the situation. Changes in family structure
increasingly are causing husband and wife decisions, including those about housing, to be
made jointly (Qualls, 1982). Thus, the real estate broker must appeal to both spouses in
making a sales presentation.
Families change over time, passing through a series of stages called the family life cycle
(Wells and Gubar, 1966). 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.
 SCOPE

This study will be beneficial to Kumar Builder Constructions to know about

customers buying behavior towards Residential properties in Pune city. The company can
come to know various factors affecting the customers’ properties buying behaviour.

Company comes to know about customers expectations & need for future properties
purchases. The sample size taken for this project is 100 Respondents.

Hence, this market study will provide information to Company, and Customers.
RESEARCH OBJECTIVES:-

1) To find out consumer buying behavior in real estate.

2) To find out factor affecting consumer buying behavior.

3) To find out the difference in consumer’s perception and attitudes.

4) To search out new prospects for MLD.
5) To find out the period in which the customers are more willing to purchase
Residential properties.
6) To find out the near competitors for MLD.
7) To find the opinion of the customers with regard to various schemes available or
schemes offered by MLD.
 RESEARCH METHODOLOGY
Research is a diligent enquiry and careful search for new knowledge through
systematic, scientific and analytical approach in any branch of knowledge. Research helps to
discover new facts. The search for new knowledge also helps to accept, reject or modify
existing facts or knowledge. It is a systematic effort to gain knowledge truth or board
principle in a verifiable and objective way. According to Slessinger and Stevenson (1930),
social science research aims to extend, collect or verify knowledge weather that knowledge
aids in the construction of a theory or in practice of an art.

Young (1988) describe social research as the systematic methods of discovered new
facts or verifying old facts, their sequence in the relationship, casual explanation and the
natural law which governs them.

Mere compilation of facts will never constitute research. As Khuran (1973) aptly
points out that compilation is like a police constables statement of the scene of a crime, which
itself is not dedication. The main aim of research is to search deeply and penetrate into the
research of occurrence and relationship. Thus, research as young point out does not simply
demand a search for the fact but a thinking of the issues and problems involved in every step
of research uses studies and principles thereof to unravel the facts intangibly while craft a
man condemn such process.

There are certain steps which are to be followed for making an effective research it
depends upon organization to organization and person to person to adopt a certain strategy in
research which is known as research methodology. Research methodology followed by me in
the organization is:

 Visiting various real estate organization

 Conversation with people who are interested in buying house
 Data collection through various sources
 Guidance from project guide
 Preparation of project report
Research Methodology is the logical and scientific technique to solve a problem when we
talk of research methodology, we not only talk of research method adopted to get desired
results but we also consider the logic behind these methods.

For perfect thesis one has to know each and every aspect of the concept thoroughly.
So acquiring the data regarding this I gone through by several things like:

 Books
 Magazines
 Journals
 Web sites

In order to understand the “consumer buying behaviour” as per the objectives stated, the
various steps which are to be followed are given below:

 Planning the research design

 Selecting the research method
 Selecting the sample procedure
 Data collection
 Evaluating the data
 Preparing and presenting the research report
 RESEARCH DESIGN

A sound research design is fundamental to the success of any formal research project.
Its function is to ensure that the required data are collected and they are collected accurately
and economically. It is a blue print of research that is followed in completing as study.

In order to get appropriate results on a clearly defined research topic, the design
chosen by the research is exploratory in nature.

Exploratory research: this research is carried out to make the problem suited to more
precise investigation or to frame a working hypothesis from an operational prospective. It is
not used in case where definite result is desired as in our research case where only its impact
is to be studied.

DESCRIPTIVE:
Descriptive research includes surveys and face finding inquiries of different kinds.
The major purpose of descriptive research is description of the state of affairs as it exists at
present. In social science and business research we quite often use the term ex post facto
Research for descriptive research studies. The main characteristics of this method is that the
researcher has no control over the variables he can only report what is happening or what has
happened.

SOURCES OF INFORMATIONS:

 Primary data
 Secondary data
PRIMARY DATA:

For the purpose of my study, we have collected primary data with the help of interviews and
questionnaires. This data was collected to know about the awareness, attitude and opinion
and behavior of the respondent toward “consumer buying behavior in real estates”

SECONDARY DATA:

This data is already existing data. It can either be the internal record of the
organization or external records like trade association reports and publications etc. I have
collected secondary data from various websites and annual reports from the company.

SAMPLING:

Sampling is that part of statically practice concerned with the selection of an unbiased
or random subset of individual observations within a population of individuals indented to
yield some knowledge about the population of concern, especially for the purpose of making
some predictions based on statistical inference. Sampling is an important aspect of data
collection.

Researcher rarely surveys the entire population for two reasons (Adder, Mellenbergh
and Hand 2008): the cost is too high and the population is dynamic in that the individuals
making up the population may change over time. The three main advantages of sampling are
that the cost is lower, data collection is faster and since the data set is smaller it is possible to
insure homogeneity and to improve the accuracy and quality of data.

Each observation measures one or more properties (such as weight, location, and
color) of observable bodies distinguished as independent objects or individuals. In survey
sampling survey weights can be applied to the data to adjust for the sample design. The way
of selecting the sample depends on researcher. It can be either probability sample or non
probability sample. For the purpose of this study we have taken Non Probability Sampling.
Non Probability sampling is the one in which each item do not have equal chance of getting
selected in the sample.
SAMPLING FRAME:

In the most straight forward case, such as the sentencing of a batch of material from
production (acceptance sampling by lots), it is possible to identify and measure every single
item in the population and to include any one of them in our sample. However in the more
general case this is not possible. There is no way to identify all the rats in set of all rats.

Sampling frame can be defined as “source of list from, which the sample is drawn”.
The sampling frame for the purpose of my study is the people of Chandigarh Mohali and
Panchkula. It consist residents of tri city.

PROBABILITY SAMPLING

A probability sampling scheme is the one in which every unit in the population has
chance (greater than zero) of being selected in the sample, and this probability can be
accurately determined. The combinations of these traits make it possible to produce unbiased
estimates of population totals, by weighting sample units according to their probability of
selection.

Probability sampling includes:

 Simple random sampling

 systematic sampling
 Stratified sampling
 Cluster sampling
 Multistage sampling

These various ways of probability sampling have two things in common:

 Every element has a non zero probability of being sampled

 Involves random selection at same point

NON-PROBABILITY SAMPLING: Non-probability sampling is any sampling

method where some elements of the population have no chance of selection (these are
sometimes referred to as ‘out of coverage/under covered’), or where the probability of
selection cannot be accurately determined. It involves selection of elements based on
assumptions regarding the population of interest, which forms the criteria for selection.
Hence, because the selection of the element is non-random, non probability sampling does
not allow the estimation of sampling errors. These conditions give rise to exclusion bias,
placing limits on how much information a sample can provide about the population.

Non-probability sampling includes:

 Quota sampling
 Snow ball sampling
 Convenience sampling
 Accidental sampling

SAMPLING SIZE:

It refers to the number of items to be selected from universe that constitutes a sample
and an optimum sample is one which fulfils the requirement of efficiency, reliability,
representative and flexibility of the sample. The sample size for the purpose of my study
constitutes 100 consumers.

OBSERVATIONS:

The observations carried out while the training period was to observe and study the
behavior of the consumer while purchasing an apartment.
 How to Create a Market Survey

Market survey is a collection of data and information from a sample of customers and
potential customers. The data and information are analyzed and inferences made about the
population at large. Developing a well-designed market survey questionnaire will ensure
that you get the information you need about your target market. These surveys can be
conducted in writing, in person, via e-mail or over the phone.

Step 1:

Develop a standard set of questions. Ask potential customers what they like/dislike
about your product or service. Ask them if they would buy the product or service. Ask
them about their buying habits.

Step2

Create a simple form. Use multiple-choice or yes/no questions. Have respondents

answer the questions in the same order.

Step3

Make your written survey easy to read. Double- or triple-space the text. Use broad,
white margins on the top, bottom and sides of the document. Keep it simple by sticking
with black ink on white paper.

Step4

Identify who should fill out your survey. Figure out the demographic you want to
target. You can buy mailing lists from market-research companies.

Step5

Give your respondents time to answer. Don't rush them or answer questions for
them.
 DATA
ANALYSIS
AND
INTERPRETATION
 DATA ANALYSIS AND INTERPRETATION
The data after collection has to be processed and analyzed in accordance with the
outline laid down for the purpose at the time of developing the research plan. This is essential
for the scientific study and for ensuring that we have all relevant data for making the
contemplated data analysis. Technically speaking, processing implies editing, coding,
classification and tabulation of collected data so that they are amenable to analysis. The term
analysis refers to the computation of certain measures along with searching for pattern of
relationship that exist among data group. Thus in process of analysis, relationships or
differences supporting or conflicting with original new hypothesis should be subjected to
statistical test of significance to determine with what validity data can be said to indicate
any conclusion. Further the interpretations are done for the purpose of drawing inferences
from the collected facts after an analytical or experimental study.

The number of respondents, sample size determination, methods of data collection

and appropriate techniques used has already been discussed in detail in research methodology
and analysis part. Now analysis of data collected has been carried out.
1) Table showing present type of Residential Ownership.

Type No. of % of
Respondents Respondents
Ownership 36 36%
On Rental 49 49%
Others 15 15%
Total 100 100%

Residential Ownership

15%
36% Ownership
On Rental
Others

49%

The above table shows that, maximum no. of respondents stay on rental basis i.e.49%, and
36% of the respondents have their own residence and 15% of respondents are in others
category, which include residence on lease or staying at relatives.
2) Table showing areas preferred to purchase residential properties.

Area No. of Respondents % of Respondents

Chandigarh 11 11%

Mohali 19 !9 %

Panchkula 23 23%

Kharar 26 26%

Patiala 07 07%

Ambala 05 05%

Others 09 09%

Total 100 100%

Preffered area for Property Purchase

9% 11% Chandigarh
5%
7% 19%
Mohali
panchkula
kharar
Patiala
26%
23% Ambala
Other area

The above table shows that maximum no. of respondents i..e.26% prefer kharar area,
whereas 23% of the respondents prefer Panchkula area, while 19% of respondents prefer
Mohali area, while 11% of respondents prefer Chandigarh, whereas 09% of respondents
prefer Other area while 07% of respondents prefer Patiala area and 05% of respondents
prefer Ambala area for purchasing residential properties.
3) Table Showing Factors taken into consideration while purchasing
Residential properties.

Factors No. of Respondents % of Respondents

Location 28 28%

Price 39 39%

Transportation Facility 16 16%

Accessibility to Market 07 07%

Others 10 10%

Total 100 100%

Factors while Purchasing Resendential

Properties
10%
7% 28%

16%

39%
Location Price
Transportation Facility Accessibility to Market
Others

The above table shows that maximum no. of respondents i.e. 39% consider
Price, whereas 28% consider location while 16% consider transportation facility
whereas 10% consider other factors like Vastushastra, Water availability etc.
and 07% of respondents consider accessibility to the market as important
factors for purchasing the residential properties.
4) Table showing Parameters considers while selecting residential
properties.

Parameters No. of Respondents

Brand Name 22

Quality 15

Space (Sq. ft.) 15

Facilities 20

Interior 13

Schemes 15

Parameters

15
22 brand name
13
Quality
Space
15 Facilities
20
Interior
15 schemes

The above table shows that maximum no. of respondents i.e. 73 consider Facilities as the
parameter while 62 respondents consider Quality, whereas 57 of respondents consider
Schemes whereas 53 respondents consider Brand name while 49 respondents consider
Space (Sq. ft.) and 30 respondents consider Interiors as the parameters while selecting
residential properties.
5) Table showing sources of Information for respondents while Property
Purchasing.

Sources No. of Respondents % of Respondents

Hoardings 13 13%

Newspapers 17 17%

Agents/Consultants 33 33%

Relatives/Friends 28 28%

Others 09 09%

Total 100 100%

Various Sources of Information for Property

Purchasing
9% 13%
28%
17%

Hoardings
Newspapers
Agents/Consultants
33% Relatives/Friends
Others

Above table shows that 33% of the respondents get their information from Agents
/Consultants, where as 28% of the respondents get information from Relatives/ Friends
while 17% of respondents get information from Newspapers whereas 13% of respondents
get information from Hoardings and 09% of respondents get their information through
Other Sources like Local News Channel,Radio,Internet etc. for Purchasing Residential
Properties.
6) Table showing awareness in respondents about various schemes offered
by MLD.

Awareness No. of Respondents % of Respondents

Yes 67 67%

No 33 33%

Total 100 100%

Awareness of Respondents to Various

Schemes

33%
Yes
No

67%

The above table shows that maximum no. of respondents i.e. 67% were aware about the
various schemes offered by KBC whereas 33% of respondents were not aware about various
schemes offered by MLD.

MLD is having good brand name in the city, most of people prefer it.
7) Table showing duration of the year when normally respondents like to
purchases residential properties.

Month No. of Respondents % of Respondents

Jan to Apr 35 35%

May to Aug 13 13%

Sept to Dec 52 52%

Total 100 100%

Duration of Purchasing Resendential

Properties
35%

Jan to Apr
May to Aug
52% 13%
Sept to Dec

Above table shows that maximum no. of respondents i.e. 52% would prefer Sept to Dec as
the duration where as 35% respondents would prefer Jan to Apr while 13% of respondents
prefer May to Aug as the duration of the year where they would like to purchase residential
properties.
8) Table showing type of Residential property respondents would like to
Purchase.

Type No. of Respondents % of Respondents

1 BHK Flat 18 18%

2 BHK Flat 48 48%

3 BHK Flat 24 24%

4 BHK Flat 06 06%

Bungalow/Row house 04 04%

Total 100 100 %

Type of Resedential Property

4% 6% 18% 1 BHK Flat

24%
2 BHK Flat

3 BHK Flat

Bungalow/Row
house
48% Others

Above table shows that maximum no. of respondents that is 48% would like to purchase 2
BHK Flat, whereas 24% respondents prefer 3 BHK Flat, while 18% respondents prefer 1BHK
Flat whereas 4% of respondents prefer Bungalow/Row house and 06% respondents prefer
others which include Duplex, Terrace Flat, Attached Flat etc. for purchases of residential
property.
9) Table showing mode of purchases of residential property preferred by
respondents.

Mode No. of Respondents % of Respondents

Home Loans 57 57%

Lum-sum 06 06%

Installments 33 33%

Others 04 04%

Total 100 100%

Mode of Purchase
4%
33%

Home Loans
Lum-sum
6% Installments
57%
Others

Above table shows that maximum no. of respondents i.e.57% would prefer Home Loans
whereas 33% of respondents would prefer Installments while 06% of respondents would
prefer Lum-sum and 04% of respondents prefer Others.
 Findings
Conclusion
And
Recommendations
 Findings

1) During the time of survey, was found that 49% respondents are having the resident on
rental, 36% respondents are having own property & 15% respondents are having other
sources such as lease, relatives & friends etc.

2) It was found that maximum no. of respondents were preferred to purchase residential
property in Kharar area i.e. 26 % and only 5% respondents were preferred in Ambala area.

3) It was found that the price & location is major factor which consider by the customer.
Here 39% respondents are considering the price, 28% respondents are consider location &
16% & 7% respondents are consider transportation & market facility.

4) It was found that the ‘quality’ & ‘facilities’ are most considerable parameters at the
time of selecting residential property

5) It was found that the source of information of consumers the real estate consultant
play very vital role.
6) It was found 67% respondents were aware of various schemes offered by MLD &
33% respondents were not aware. .

7) In the duration of September to December the most of the respondents were like to
purchase the residential property because of the most of the festival are in this duration.

8) It was found that demand of the 2 & 3 BHK flats was more in comparison to other
types of residential buildings

9) In the mode payments 57% respondents go through home loans of various banks &
private financial institutes, 33% respondents go through installments, 6% respondents
through lum sum amount & 4% respondents choose other mode of payments.

10) It was found that the close competition of MLD were JLPL, TDI City & Sky rock city
which were mostly known by the respondents.
 Conclusion

A significant portion of the study of real estate deals with the consequences of consumer
decisions regarding real estate assets and services. Appraisal attempts to estimate the value of
property to consumers. Market analysis attempts to predict consumer demand for real estate
services. Investment analysis examines the required and expected rate of return to an
investor, and finance analyzes consumers’ mortgage choices and likelihood of repayment.
The study of consumer behaviour involves trying to understand complex human beings and
the reasons they act the way they do in the marketplace. It recognizes that consumer decisions
take place inside a person who is distinctive in his personality and attitudes, yet similar to
other consumers who have been exposed to the same external influences of culture and
society.

Rather than ignoring these complexities, real estate researchers should embrace the study of
consumer behaviour to better understand the reasons behind market choices.

Within appraisal, the sales comparison approach estimates the value of a property based on
what consumers are willing to pay for individual components of the property. The study of
consumer behaviour examines why people value those components, which people value those
components, and why preferences change over time. A review of the consumer behaviour
literature would suggest that buyer/seller attributes be explicitly considered in appraisal to
determine market characteristics and the properties considered to have the same utility and
amenities.

The incorporation of consumer behavior concepts into traditional real estate study in these
and other areas will improve understanding of individual decision-making in a real estate
context. This understanding will lead to better explanations and predictions in real estate
markets and, as a result, greater success in the marketplace.

Conclusion drawn from survey of 100 people around tri-city

1) It can be seen that MLD is one most popular brand.

2) Quality is considering lot while purchasing residential property.

3) The Kumar Builders stands first among three top companies in Pune city.

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

5) The customer may change the Brand if the Particular brand is not available and also
because of close substitute.

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

7) Adverting and other sales promotion tools have a great effect on sales of the residential
property.
 Suggestions

1) MLD should try to tap other market potentials, such as Bhatinda, Jalandhar, Amritsar,
luhdhina, Moga and Ropar.

2) MLD should try to decrease Five star amenities with a view to cut down the property
prices and there by attracting the middle class.

3) MLD should organize annual customer meet to appreciate those customer who have
been with them and awarded them.

4) MLD should take mass media such as television more precisely cable media to target
local customers.

5) MLD should also concentrate more on interior decoration to compete with other
competitors.

6) MLD should reduce the maintenance charges.

7) MLD should also concentrate on CRM activities, such as loyalty to create strong good
will and gain new customer.
 Limitations

1) The survey was restricted to selected areas in Tri-city only.

2) The time duration of this survey was 30 days only.

3) Summer season was main hurdle for this survey.

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

5) This project was only restricted to the residential properties of MLD & not
commercials & others.

6) The survey area were too far as the city is big enough which caused many
transportation problem.
 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
d) www.kumarbuilders.com
 Questionnaire

“A STUDY OF CONSUMER BUYING BEHAVIOUR

ANALYSIS OF REAL ESTATE MARKET EMPHASIS
IN RESIDENTIAL MOBILITY, CHOICE AND
SATISFACTION”

Personal Details

NAME:-

OCCUPATION :-

GENDER:-

FAMILY SIZE :-

CONTACT :

E MAIL:-
NO. OF EARNING MEMBERS:-

1. Do you have any plan to purchase residential property in tri-city?

Yes No

2. What is your present type of property?

Ownership On rental

Others

3. In which area would you prefer to purchase residential properties?

Chandigarh Panchkula

Ambala Kharar

Patiala Mohali

Other Areas

4. Which factor do you take in to consideration while purchasing residential properties?

(Choose any one)

Location Price
 Transportation facility Accessibility to market

Others ___________________________________________

5. Which parameters do you take in to consideration while selecting a residential property?

Brand Name Quality

Space (sq. ft) Facilities

Interiors Schemes

6. Which other construction company / industry are you aware of other than MLD?

____________________________________________

____________________________________________

7. Indicate the source of information that you consider for property purchasing ? (choose
any one)

Hoarding Newspapers

Agent Relatives

Others

8. A) Are you aware of various schemes offered by MLD?

Yes No
 B) If yes, what is your opinion about the schemes?

Very Good Good Average

9. During which duration of the year normally would you like to purchase residential
properties?

Jan. to Apr. May to Aug. Sep. to Dec.

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

1BHK Flat 2BHK Flat

3BHK Flat Bungalows

Others

11. What will be your mode of purchase of residential property?

Home Loans Lum sum

Installments Others

__________

Signature