Study of the Positioning of High End

Luxury Flats in Ahmedabad

ABSTRACT
1 | P a g e
Postonng s the marketng art of knowng what avaabe space or poston the
company and ts offerng f n the market and then gettng that message to exacty
the peope who want what youre offerng. By frst fgurng out the poston your
offerng fs the company can easy fgure who shoud the company want to tak,
what they want to say, and what marketng vehces from advertsng to drect
ma to onne to persona cas you shoud use to reach the peope youre
targetng. For exampe, say that youre offerng a ower-prced home n a
neghborhood that prmary attracts frst-tme buyers. Your product poston s
ower end. Wth that knowedge, youd hardy want to craft a message geared to
the nterests and motvatons of hgh-ncome buyers. Nor woud you want to dever
your message usng meda channes that ower-ncome prospects dont read, tune
nto, or sgn onto. Understandng the product poston can make the dfference
between reachng to prospect or not, between motvatng nterest and acton or
not, and between makng a sae or not. In rea estate, prce s the cornerstone of
postonng. In past experence, 85% of the marketng strategy s set durng the
stng presentaton when the company and the seer agree on the rght prce and
therefore the rght market poston for ther home. Ths pro|ect focuses to
understand the postonng strategy of uxury fats n Ahmedabad.
2 | P a g e
Contents
ABSTRACT.................................................................................................................. 1
Contents.................................................................................................................... 3
Introducton............................................................................................................... 4
Lterature revew....................................................................................................... 7
Research Methodoogy............................................................................................ 26
Fndngs Anayss..................................................................................................... 27
Recommendatons................................................................................................... 37
Concuson............................................................................................................... 38
References............................................................................................................... 39
3 | P a g e
ntrodu!tion
ntrodu!tion"
Many property managers are facng ots of chaenges durng ths Great Recesson.
Occupancy and your NOI are both down. tenants are fdgety and unsatsfed.
property vaues are n the pts aong wth the owners confdence eve. To add
nsut to n|ury, property showngs are few and far between. A of these thngs add
up to stress and a oss of |ob stabty. or even oss of a |ob. So what can you, as a
property manager, do to stay out of the unempoyment ne and at the top of your
property management game? Focus on your propertys marketabty. Make sure
your property s n the best, most eye-catchng condton t coud possby be n.
Whats the best way to do ths? Curb appea. We a know the od adage, "you
never get a second chance to make a frst mpresson." We, ths hods true even n
the easng game. I know your mom aways tod you that ts whats on the nsde
that counts. but come on. ets face t. nobody s ever gong to take a ook at
the nsde f they dont ke what they see when they do ther drve-by. Lets be
honest. weve a done t. drven by a house or busness and |ust kept on gong
because t ooked "sketchy" or dated. or ugy. or maybe. |ust maybe you even
had a bnd date that you skpped out on because you facebook staked hm/her
ahead of tme and he/she wasnt qute the cats pa|amas. Lke ths, curb appea has
everythng to do wth the frst mpresson of your property to a drve-by tour or frst
property showng.
So. how can you gve a great frst mpresson and have your property n knock-
your-socks-off condton when you have a budget thats been cut to shreds? We,
ets take a hard ook at your bddng process. To our horror, we have found that
there are a surprsng amount of property managers that ony bd out every 2, 3 or
even 5 years! Or. n extremey aarmng cases. they ony bd out f theres a
probem wth ther current provder. In fact, many property managers w qucky
shut down any dea of even recevng a bd for andscape servces f asked. Ths s a
costy mstake. Thnk about t. f the ast tme you bd out somethng was n 2006
(fve years ago). ook at how much has changed snce then! Look at the economy!
4 | P a g e
The fnanca crss and ensung Great Recesson have brought about prce defaton
n abor-ntensve property servces. Margns for vendors have become razor thn.
so f youre st payng your 2006 prces. you coud be pourng ots of money down
the proverba dran. Now s the tme to get the maxmum performance for your
andscape mantenance budget. You may even fnd suffcent expense savngs to
aow for some upgrades or to address some deferred andscape ssues that were
nherted from a prevous regme.
So. bd out your andscape. often. but remember. not a andscape frms are
created equay. Some andscape companes may ow ba the bd to get the
busness and then underperform on the property, eavng you wth bgger probems
than you started wth. whch speaks truth to the od sayng, "you get what you
pay for." Be carefu when you do bd. dont aways go wth the ow guy. fnd out
about the companys recent servce hstory. how ther cents, or former cents,
fee about the quaty of servces they perform(ed). Your andscaper shoud make
your |ob easer. They shoud be proactve, takng care of probems before you even
know you have them, and dong what they say they w do when they say they w
do t. After a, you have to |ump through hoops for your cents. so why shoudnt
andscapers have to |ump through hoops for thers? Gettng your andscaper to do
ther |ob shoudnt be comparabe to tryng to get your teenage son to cean hs
room. Make sure you do your work on the bddng end so you dont have to do ther
work on the other sde. The ast thng you want to be stuck wth s a andscaper
that constanty drops the ba, makes you work harder and causes you to ose
potenta tenants.
The m#ortan!e of Setting the Right Pri!e
Once youve worked wth a seer to agree upon the rght stng prce, your
marketng strategy unfods naturay foowng these steps:
Create a descrpton of the homes key buyer.
Lst the homes benefts and the reasons why key buyers wont want to et
the home go to anyone ese.
5 | P a g e
Seect meda channes or communcatons approaches that a1re most apt to
get your marketng message n front of your target audence of key buyers.
$sing Positioning to %our Com#etiti&e Sales Ad&antage
Take tme to ook nsde some of the other homes that compete for the same
product poston as your stng n terms of prce and ocaton. See how ther
features and benefts compare. Especay when handng ad and sgn cas ths
comparatve nformaton w be vauabe n two ways:
By expressng wth certanty your stngs benefts compared to those of other
avaabe propertes you convnce caers that they must see and consder the
home. By offerng nformaton on other homes n addton to the one youve sted
you ncrease the odds of convertng caers nto buyer cents by estabshng
yoursef as a sked agent and vauabe home-buyng resource.
The 'anger of (&er#ri!ing
If you gve nto a seers desre to set an unreasonaby hgh stng prce, your
marketng task w be vasty more dffcut because wth an overprced home: You
be forced to market to the wrong audence. In order to reach buyers who can afford
the prce the seer s askng you be takng to peope seekng a hgher-eve home
than the property youre offerng. Your product w ose n compettve
comparsons. It wont take ong for buyers to reaze that the home youre offerng
s nferor to others they can buy wth the same amount of money. When you st an
overprced property you have ony two hopes for success. You can hope that the
marketpace w heat up dramatcay and ead to escaatng prces that brng your
stng prce nto ne, or you can hope that your seer w agree to a rapd prce
reducton.
6 | P a g e
Literature re&ie)
Positioning Strategy in Real Estate"
When takng wth prospects at a stng presentaton we are usuay takng about
our marketng and advertsng peces. We often try to draw the prospect to convert
to cent status through our coorfu brochures, Internet stes, and overa exposure.
We are, agan, seng through feengs rather than tangbe proof of resuts.
Because of your postonng strategy, can you prove that you produce more eads
or more meanngfu ad cas, sgn cas, or Internet nqures? Does ths ncrease of
eads generate more showng actvty or more buyer consutatons? Does how you
poston the property wth the rea estate agent communty resut n more showngs
to more buyers? The frst step s to prove to the cent that your postonng
strategy generates more showng actvty. A Champon Agent w generate more
showng actvty than other agents n the marketpace. Do you have an nventory
advantage that creates more showngs, as we? Because, on average, I carred
around thrty stngs at any one tme, t enabed me to cross-market my propertes
more effectvey wth a wder reach to generate more showngs than many other
agents n the marketpace. Increased quantty of eads creates more opportunty
for the seer. More eads generate more showngs. More showngs ncrease the
probabty of seng the home. The ncreased showngs can aso ead to a hgh
potenta saes prce n a hgh demand home. We a know the more peope through
7 | P a g e
a we prced home, the greater the chance of attractng a hgh quaty buyer and
hgh quaty transacton. We need to move the prospect step-by-step through each
stage to see cear benefts of why they shoud hre you. I aso beeve better
postonng nks wth a prmary rue of rea estate saes. Most peope mss ths
prmary rue; even agents mss t. When we break down the basc rues of rea
estate ths one eads the pack:
Real estate sales are go&erned by the la) of su##ly and demand"
The aw of suppy and demand drves rea estate saes and rea estate vaues n any
marketpace. It drves apprecaton, nvestment, and actvty. It can aso drve st
prce to saes prce ratos, days on the market, and stngs sod verses stngs
taken ratos for most agents. A Champon Agent w aways fter ther strategy and
postonng and tactcs through the aws of suppy and demand, and they w end
up wth far superor stats than other agents. They w counse ther prospects,
customers, and cents on the nfuence the aw of suppy and demand s payng n
the marketpace. Ths s especay true when the marketpace s shftng. When we
shft from a seer's market (where nventory s ow and demand s hgh) to a
neutra marketpace, a Champon Agent w show nventory eves, saes prce
ratos, and saes per month and w counse ther cents based on where the
market s now and where t s headng. Our |ob, as Champon Agents, s to nform
our cents of the current and emergng market condtons. The aw of suppy and
demand contros the frenzy n seer's markets and the sow cautousness n a
heavy buyer's marketpace.
By knowng and trackng the marketpace, you can better poston your cents to
acheve the best resuts n today's marketpace. Our |ob s to ceary communcate
how the aw of suppy and demand w affect each of our cents and how t s
mpossbe to acheve sgnfcant resuts contrary to the aw of suppy and demand.
If any agent s promsng them those resuts, they ether don't reay understand the
marketpace, are overy optmstc and deusona, or ack the sk to be abe to
reay represent ther nterest at the hghest eve. Ths w become very obvous to
prospects f your dscusson about the aw of suppy and demand s devered wth
convcton and power.
8 | P a g e
We need to te the seers and buyers that the reason marketpaces ead up to and
expode s because demand s greater than suppy ... t's that smpe! When suppy
ncreases and demand owers, the actvty eve goes the other drecton.
Interest rates certany can affect demand as we. Interest rates nfuence the
buyng power of each person ookng for a property. I beeve, however, the argest
nfuence s the aw of suppy and demand. We can respond to t far better than we
can respond to nterest rates.
Strategc postonng works we wth the aw of suppy and demand. Effectvey
executed, t w work to create a maxmum beneft for your cent based on the
odds of the marketpace.
*ar+et ,ro)th"
Estmate provded by ASSOCHAM, a eadng ndustry body, suggest that the sze of
the Indan rea estate sector s around US$ 16 bon, growng at the rate of 30 per
cent per annum. Accordng to a recent estmate by UBS the tota sze of the Indan
rea estate market n terms of tota economc vaue of deveopment actvty, s US$
40-45 bon representng 5 - 6 per cent of GDP.
Rush to raise !a#ital"
Last two years have been eventfu years for the Indan rea estate sector on the
capta markets, wth the IPO market wtnessng the shftng focus towards the
reaty sector. In a bd to rase ther capta base and fund ambtous pro|ect ppene,
rea estate companes approached both the domestc and nternatona stock
markets. Cose to 20 rea estate and constructon companes opted for stock
exchange stng snce August 2007 to August 2008. Cumuatvey, these companes
were abe to rase around US$ 4356.3 mon from the pubc for varous pro|ects.
Severa promnent rea estate payers such as DLF, Parsvanath, Purvankara, Sobha,
Kote Pat and Omaxe came up wth ther pubc ssues durng the ast 18 months.
9 | P a g e
Another trend that seems to fnd favour wth Indan reaty deveopers s stng on
the offshore exchanges ke AIM, Sngapore sted REIT, Sngapore Stock Exchange
and Duba Internatona Fnanca Exchange. Indas argest rea estate deveoper
DLFs group company DLF Assets has fed for REIT IPO n Sngapore stock
exchange.
Strategi! Allian!es"
Strategc aance for synergetc benefts and capacty augmentaton, a trend that
started n the year 2011-12 contnued throughout the year 2012-13. The year saw
severa regona, natona and nternatona payers partnerng for the ob|ectve of
fufng the fundng requrement, mtgatng rsk n pro|ects wth hgh gestaton
perods, obtanng technca expertse, brand equty etc. Severa te-ups to enhance
executon capabty were aso forged n the form of |ont Ventures wth the arge
natona and nternatona contractng companes. Some promnent such te-ups
ncuded Emmar-MGF 50:50 |ont venture wth a eadng Austraan contractor
Leghton Hodngs Ltd and DLFs |ont venture wth Lang 0 Rourke of UK.
,lobal Realtors in ndia"
Indan rea estate sector contnued to reman on the radar of severa goba
reators. Internatona deveopers orgnatng prmary from Mdde East, South East
Asa, and Europe have been huntng for busness opportuntes n Inda and severa
strategc te-ups were announced n the year 2007-08. Promnent Mdde East
based deveopers such as Nakee Group (Duba); Sgnature Group (Duba)
announced ther pans or pro|ects n Inda. Technoogy and Meda Free Zone
Authorty (TECOM) of Duba has aso entered nto a MoU wth the State Government
of Keraa to deveop the "Smart Cty" pro|ect near Koch cty n Southern Inda.
Commerca Rea Estate:
The phenomena growth wtnessed n Indan rea estate has wdened the
opportunty spectrum of the sector even beyond the estabshed asset casses vz.
commerca, reta, resdenta, ndustra and hosptaty. Ths secton maps the
opportunty n both the asset casses and the emergng asset casses. The boom n
the Commerca Rea Estate (CRE) segment s beng fueed by a robust demand
from MNCs and corporate Inda ake, partcuary from IT/ITeS, BFSI, Teecom and
10 | P a g e
Pharma companes. In the year 2007 suppy of commerca grade A offce space,
remaned concentrated n the top seven ctes. Accordng to E&Y estmates tota
suppy of commerca offce space (grade A, non captve) n the Natona Capta
Regon (NCR), Mumba, Hyderabad, Bangaore, Pune and Chenna together was
recorded n the range of 40-45 mon sq. ft. The absorpton was prmary drven by
the IT/ITES ndustry accountng for amost 70-75 per cent of the tota absorpton.
The suppy format was prmary n the form of IT Parks, ntegrated campuses and a
few SEZ deveopments.
Residential Real Estate"
Drven by ncreasng urbanzaton, rsng ncomes and decreasng househod szes,
the resdenta segment n Inda has been on an upswng over the past few years. In
terms of vaue, the resdenta property market consttutes amost 75 per cent of
the rea estate market n Inda. The Workng Commttee of the 11th Pan (2007-12)
has concuded that the tota shortage of dweng unts at the begnnng of Eeventh
Pan Perod .e. 2007 was 24.7 mon. E&Y estmates that more than 70 per cent of
the shortage of dweng unts s for mdde and ow ncome brackets. Severa pocy
nterventons and ntatves are expected to correct ths demand-suppy gap.
(utloo+"
Over next fve years, the commerca rea estate market s expected to grow at a
CAGR of 20-22 per cent and woud contnue to derve ts growth from the thrvng
Offshorng ndustry. Over the medum term, the further openng up of the economy
s expected to ead to a broader occuper base. The suppy of commerca offce
space w reman concentrated n the suburban areas and n the form of IT Parks
and ntegrated campuses. Large suppy of commerca space s aso expected from
SEZs over the next few years. Accordng to the Unted Natons Popuaton Fund
(UNFPA), Inda s gettng urbanzed at a faster rate than the rest of the word and by
2030 more than 40.7 per cent of the countrys popuaton woud be vng n urban
areas. Presenty, more than 28.7 per cent of Indas area s urban as aganst the
goba average of 48.7 per cent. However, the growth rate of urban areas.
Growng number of frst-tme home buyers:
11 | P a g e
Inda has a much younger popuaton compared to most other economes. Currenty
the popuaton n the workng age group (16-65 years) s about 700 mon
representng about 64 per cent of the tota popuaton. Inda s expected to emerge
as the hghest contrbutor to the goba work force by 2010. Gven that a ma|orty of
the popuaton woud st be young the per capta ncome generaton capabty of
Inda woud contnue to reman robust. Wth the average age of home buyers
decnng fast the young workng popuaton woud further push demand for housng
unts hgher. Frst-tme home buyer numbers have mutped over the years and
the medan age of home buyers has reduced from 38 years to 28 years today.
n!reasing in!ome le&els"
The per capta dsposabe ncome has grown manfod n the past one decade. The
current annua per capta dsposabe ncome stands at around US$ 693 and s
further expected to grow by 8-13 per cent n the next fve years. Robust economc
growth, partcuary n the servces sector has ed to an ncrease n ncome eves n
the country. Severa studes have ndcated that saares n Inda have been
ncreasng by an average of 10-15 per cent on a year on- year bass. Ths has
ncreased the affordabty of homes n spte of hgher property prces and has
further created more dscernng buyers.
Penetration of mortgage finan!e"
Over the past fve years oan dsbursas by housng fnance companes have grown
by 30-40 per cent annuay. However, despte such growth, mortgage oans are
presenty ony 4-5 per cent of GDP, prmary due to the ow penetraton of
mortgage fnancng. Banks and housng fnance companes have panned to
ncrease penetraton aggressvey. Most of the growth s expected to take pace n
the md market and premum/uxury sub-segments. Wth the Government
promotng ow-cost housng, deveopers may aso start nvestng n the budget sub-
segment.
Overa as housng suppy catches up wth demand n the next few years the
resdenta prces are expected to stabze. Government of Inda habtat pocy
envsages that by the year 2012 the housng shortage shoud be removed and
12 | P a g e
everybody shoud have a house of hs own. Fructfcaton of such a pocy w
transate nto arge scae deveopment n ths segment. Due to avaabty of and
and proxmty to upcomng knowedge ndustres, perphera regons of ma|or
metropotan ctes (Bangaore-Whtefed, Deh Greater NOIDA and Gurgaon,
Kokata- Ra|arhaat, Chenna-aong OMR) are expected to attract maxmum
deveopment. Though natona deveopers are expandng ther geographca base,
regona deveopers are expected to domnate suppy n short term, especay n
md-segment category. Severa satete ctes on the nes of Nav Mumba for
Mumba, Ahmedabad, Bangore, NOIDA and Gurgaon for Deh are expected to
emerge to offer housng to burgeonng popuaton and demand for affordabe
housng. Besdes rsng ncomes other factors that have ncreased home
affordabty are: easer access to mortgage fnance, onger oan tenures, hgher
oan-to-vaue ratos and tax ncentves. Though home oan rates have ncreased by
amost 200 bass ponts n the past two years they are st 45 per cent cheaper
than what they were n March 2001. Tax savngs on nterest payments (US$ 3488)
and prncpa repayments (US$ 2325) per annum on mortgage oans have aso
made home purchases more attractve.
As per Pun| and Brookes (2002), an nterestng queston to be expored emprcay
s how consumer knowedge about avaabe aternatves n the market and about
product crtera s created. For a compcated product such as a house, the
nformaton stemmng soey from a buyers memory s generay nadequate.
Factors such as experence, marketng communcaton, dstrbuton and ndvdua
goas a nfuence the evoked set formaton. The choce of crtera for evauaton
evoves n a smar fashon. Factors such as a buyers specfc goas, hs/her
motvaton, nvovement, product knowedge and smartes among aternatves
may pay a roe. Context specfc crtera (for a prefabrcated custom-made house)
ncude ob|ectve physca propertes specfed by a manufacturer, e. g., quaty,
warranty, soaton, prce per square meter. Other features such as the house sze,
ts ground pan and ocaton are not decsve crtera for a custom-made
prefabrcated house as they are defned by the buyer. The stages of the buyng
process are as foows: attenton, comprehenson, evauaton, decson makng,
behavor and usage.
13 | P a g e
Mtra, Ress, and Capea (1999) descrbed that the goa to own a product eads
the consumer to a conscous nterpretaton of nformaton nked to ths goa. New
nformaton s nterpreted and nked to exstng knowedge. As a resut, new
atttudes towards the aternatves are formed. The buyer usuay does not get to
know a the aternatves smutaneousy; rather, new aternatves are graduay
added. Therefore, the customer experences the process of nterpretaton and
ntegraton over and over agan. The evauaton takes pace for both the new and
the known aternatves. As far as the specfc product n the study s concerned, we
deat wth prefabrcated house purchase, snce ths presents a good exampe of
strategc purchase or decson makng. There s a hgher eve of compexty n ths
process. Ths s usuay assocated wth hgh nvovement on the buyers sde, and
hgh perceved rsk, therefore the decson process s more deberatve and the
externa nformaton search s more extensve. A custom-made prefabrcated house
s a product not bound to any specfc ocaton. Hence, the ocaton tsef s not a
consequence of the purchase, athough t may notaby nfuence the choce of
crtera n the buyng process. The decson makng process w aso depend upon
the stuaton, avaabe aternatves n the market, a buyers motvaton, hs/her
nvovement and pror knowedge wth the product. In addton, product
specfcaton offered by the producer may be of ma|or mportance to the potenta
buyer. Aong wth the ob|ectve physca propertes of the product, the eve of
servce offered by the company as we as adaptabty of the basc house desgn
offered may pay a roe n consumer decson makng.
Ozanne, Brucks and Grewa (1992) presented ther vew that the anaytc stage of
our research, we foowed the procedure for anayzng quatatve data. These
gudenes enabe nvestgators to produce compeng anaytc concusons and
enhance the nterna vadty of the study. The anayses nvoved three types of
actvtes: data reducton, data dspay and concuson drawng. The data reducton
process began wth compng the terature revew, deveopng the conceptua
framework for the study and settng up the procedures for data coecton (e. g.,
respondent seecton, ntervew gudenes). Audo tapes wth ntervews were
transcrbed and revewed severa tmes by the researchers. Content anayss s the
14 | P a g e
most approprate technque for anayzng ntervews. The concuson drawng was
based on the cross-case (. e., househod) comparsons, reference to prevousy
revew emprca studes and to the theoretca framework deveoped n ths study.
Examnaton of patterns, themes and reguartes provded the bass for drawng
concusons.
In the vew of Peter and Oson (2002), whe the product has dfferent meanngs to
dfferent peope, a custom-made house carres a sub|ectve message of ts
resdents and presents a strong source of persona dentty. Ths s consstent wth
the terature n the fed. Wth the excepton of a snge sampe unt, a
respondents vew the house as a part of ther personaty or the extended sef. The
house ownershp enabes them to express ther personaty and festye. Reatve to
the house owners of the house, the sampe group of potenta buyers of the house
expressed a stronger desre for homeness and warmth. In genera, women and
men perceved a house dfferenty. Whe women fee the house and reate to t on
the emotona eve, men tend to evauate the house more on the ratona and
functona eve. However, both women and men beeve that the feeng of
wenesses n the house s an mportant choce crteron. Conceptuay, we posted
that festye exerts a certan nfuence upon buyers needs and desres as we as
upon ndrect externa and nterna determnants of the buyng process. The
househods ncuded n ths research proved to ead qute dfferent festyes, and
most of them wanted the custom-made house to refect ther festyes. Reasons
behnd the respondents decson to buy/search for a custom-made house are
smar across the sampe unts. Namey, the househod members are ntmatey
famar wth ther desres and festyes whch ead to ther house desgn
preferences. On the other hand, the manufacturers/producers have tte knowedge
of ths aspect of ther ndvdua customers ves.
Downs (2005) argued that n contrast to the owners, potenta buyers emphaszed
the exstence of a contnuous tradeoff between ther desres and needs n ther
decson makng for the house. Ths provdes an overvew of the man common
themes and quotes, refectng each theme n a more detaed manner. Based on the
emprca research of ths study, t s the man contenton that peope want to have
15 | P a g e
a house desgned accordng to ther dea sef- concept whe takng nto account
reastc mtatons. Ths resut s consstent wth poston that peope want a house
to refect ther actua or dea sef-concept. It s found that the ground pan and the
choce of materas n the house drecty ndcate the tenants festye, ether actua
or dea. Respondents mentoned varous crcumstances as reasons for ther home
purchase; however, they a reated ths purchase to a hgher quaty of vng.
Mes and Huberman (1994) confrmed that the buyng process n the case of a
custom- made prefabrcated house s nfuenced by both nterna and externa
factors. Aong wth prevousy dscussed genera determnants, factors frequenty
mentoned by our respondents were: marketng communcatons n the housng
market, other peopes opnons, tme pressure, and the seers (manufacturers)
behavor. By anayzng quatatve data gathered n ths study, t appeared that
most respondents form ther atttudes toward the manufacturer/company at the
moment when they contact the seer.
Ouas, Wam (2001) revea that recommendatons provded by frends or other
house owners wth experences and nformaton about the custom-made
prefabrcated house were very mportant. It seems that word-of-mouth
recommendatons mght be even more mportant n a house buyers nformaton
gatherng and evauaton stages than the seer/companys behavor. Moreover, t s
found that the owners of the sampe house payed a ma|or roe n makng potenta
buyers enthusastc. That s, they honesty shared ther experence about vng n a
wooden prefabrcated house, and the potenta buyers see for themseves what t s
ke to ve n such a house. Aong wth makng a favorabe frst mpresson, the
seer/company aso needs to foow ts customers after the purchase. Consstent
wth the terature suggestng that the externa factors exert an mportant n
Voume nfuence, partcuary for ess experenced customers, t s aso probed nto
the roe of soca factors n the respondents buyng process for the house. The
nfuence of cuture can be dentfed n the buyers desre to own a custom-made
house, . e., based on ther ndvduastc preferences. In ths study t s suggested
that the vaue paced on ndvduasm as a part of cuture s refected n the
demand for customzed homes. Ths work summarzes the man externa factors for
16 | P a g e
each sampe unt ntervewed. As suggested by our conceptua mode for the study
(above fgure), the group of nterna factors whch mosty nfuences the
decson/makng process, ncudes an ndvduas motvaton, nvovement,
personaty, sef-confdence, knowedge, affect, and pror experence. Fndngs of
ths emprca work seem to corroborate the noton that a custom-made house
requres hgh nvovement and strong motvaton.
In the study of Newman, |oseph and Rchard Staen (1972), t was refected n an
ntensve search for nformaton about varous producers/seers n the housng
market. Respondents actvey engaged n nformaton gatherng, mosty because
they found ther exstng knowedge nsuffcent. Ths stage was foowed by
comparng and evauatng dentfed aternatves of the product. In the buyng
process for a house, an ndvduas affect payed an mportant roe. Ths was
refected n the feengs aroused when magnng the house, meetng wth company
representatves, and when nspectng a sampe house. Ths concuson s consstent
wth suggeston that researchers shoud focus more attenton on subconscous
processes, needs, goas and affect. In comparson to exstng house-owners,
potenta buyers much more strongy expressed ther feengs wth respect to ther
future house. Aso, women emphaszed ther feengs more than men. Ths work
aso provdes the man nterna factors, whch coud be dentfed durng the
ntervews. However, consderng a house purchase s fnancay demandng for
most buyers, cognton aso pays an mportant roe, partcuary wth respect to
evauaton of ts prce and ts functonaty. Hgh nvovement s refected n an
ntensve nformaton search about dfferent house. Whe most of our respondents
had no prevous experence or knowedge reated to house purchase, they
graduay ganed suffcent sef-confdence n makng decsons on ther own.
Accordng to Ncosa, Francesco (2002), ths conceptua mode (above fgure)
suggests that the consumer decson- makng process s composed of severa
stages, strongy ntertwned wth each other. As ths sampe conssted of two
groups, . e., the potenta buyers and the owners, the two group experenced
dfferent stages. Whe the group of potenta buyers ony reached the stage of
17 | P a g e
evauaton of the aternatves, the group of house owners was n the stage of
havng bought and usng the house.
It s aso suggest that the purchase crtera used by ndvdua househods ncude
product characterstcs or specfc consequences of buyng a certan aternatve.
Fve respondents went through a cycc process of mprovng aready estabshed
crtera wth addtona new knowedge, ganed from producers, budng experts,
and prefabrcated house owners. The crtera used for choosng a house among the
respondents n ths study can be ranked as demonstrated and featurng the
essenta crtera for each ndvdua sampe unt and ranked based on ther
mportance. The most commony used crteron was that the house s custom-made
(Grewa, Mehta and Kardes. 2004).
The second most often used seectve crteron s companys behavor, namey, how
the representatves of the house producer communcated wth the potenta buyers.
Two sgnfcant choce crtera wth respect to a house as a product were aso
quaty of the product and ts prce. What respondents mentoned severa tmes was
feeng confdent about the company. Ths means that potenta buyers need to
have trust n the companys process of producton and devery of ther house.
Takng nto consderaton the fact that dfferent house producers offer dfferent
archtectura soutons, four respondents aso mentoned the mportance of ths
characterstc. Decson makng n the case of house buyng s a compex process,
composed of severa mnor processes. Whe respondents used dfferent crtera for
evauatng aternatves, no more than ten aternatves composed the consderaton
set of an ndvdua househod. Moreover, ess than fve aternatves were ncuded
n the fna stages of respondents decson makng (Bargh, 2002).
Ths research ndcate that consumers use two approaches or prncpes when
evauatng the aternatves, (a) gradua concentraton and evauaton of separate
aternatves, and (b) smutaneous evauaton of severa aternatves. The frst
prncpe s much smper to use as t ony focuses on one aternatve at a tme. Ths
resut s consstent wth research, ndcatng that peope have mted capabtes
18 | P a g e
and knowedge, whch n turn prompts them to smpfy ther nformaton
processng.
The choce crtera mentoned earer carry dfferent meanngs to dfferent decson
makers. If a producer/company and ts offerng meet the most mportant crteron,
t s consdered n further stages - ths s the evauaton prncpe caed
emnaton by aspects. As descrbed n ths mode of ntegraton as a non-
compensatory process whereby saent beefs about postve and negatve
consequences do not baance or compensate for each other. Ths prncpe has
been documented n other emprca studes as we, e.g., choce of ground coffee,
choce of road and ra freght, choce of fcttous cars, career decsons, and choce
of washng machne. After formng a postve atttude toward a certan company (ts
offerng) on the bass of prevousy formed crtera, the buyer forms a behavora
ntenton whch eads ether to a purchase or to a search for addtona
nformaton/deas (Isen and Means, 1983).
Fader and McAster (1990) suggested that a house buyers consderaton of a
specfc manufacturer/company depends on two ma|or factors, (a) nformaton kept
n memory, and (b) the word-of-mouth recommendatons. Once the potenta buyer
actuay buys the house, he/she experences ether satsfacton or dssatsfacton.
Ths, n turn, creates grounds for recommendatons to other peope. The resuts of
ths exporatory research wth n-depth ntervews can be graphcay depcted by
exposng those factors n the conceptua mode that coud be expored more n
deta n future studes.
Consumer Choi!e and 'e!ision-*a+ing"
Much of the study of consumer behavor focuses on consumer choce. Utty theory
n economcs and atttude theory n soca psychoogy have strong smartes and
consttute a bass for examnng consumer decson and choce processes.
Consumers purchase products and servces for the benefts derved from ther use.
Whe the study of economcs focuses on outcomes, consumer behavor emphaszes
the process (Gronhaug, Keppe, and Haukeda, 1987). Rather than assumng
perfect condtons, researchers of consumer behavor expcty recognze the
mpact of stuatona eements on behavor and the varance among ndvduas
19 | P a g e
faced wth the same condtons. Most rea estate purchases and eases are
consdered hgh nvovement goods that requre compex decson-makng. Thus,
the three ma|or comprehensve modes of compex consumer decson-makng
woud be appcabe to most rea estate decsons. These modes trace the
psychoogca state and behavor of a consumer from the pont at whch he or she
perceves a need through the purchase and use of a product to satsfy that need.
The foowng sectons examne some of the key eements of these modes:
nformaton search, evauaton of aternatves and decson rues. Accordng to
Hauser and Urban (1986), consumers seek nformaton to hep them decde how
best to satsfy a need. Two we estabshed theoretca perspectves of externa
nformaton search are the economc and psychoogca/nformaton processng
approaches. The economc perspectve examnes search on a cost/beneft bass,
wth consumers searchng so ong as the margna beneft of obtanng an addtona
pece of nformaton exceeds the margna cost. The psychoogca approach
examnes the cogntve process consumers go through n decdng to search for
nformaton, gatherng nformaton and processng the data gathered. The mpact of
consumer, stuatona and product characterstcs are consdered. Consumers frst
check nternay for nformaton they aready possess. Depth of experence, ength
of tme snce ast purchase and satsfacton wth prevous purchases w affect the
consumers reance on nterna nformaton. As most consumers purchase rea
estate nfrequenty, they rarey rey soey on past knowedge when seectng a new
property to purchase; rather they aso undertake an externa nformaton search
(Megbougbe, Isaac, Aen P. Marks, 1991).
The effect of quantty of prevous experence wth rea estate on the amount and
type of search undertaken appears to vary. One the one hand, knowedge can
reduce search by aowng the consumer to rey more heavy on nterna
nformaton. Inversey, t can aso encourage search by enabng more effectve use
of newy acqured nformaton. When consumers fee more confdent about ther
abty to |udge products, they w typcay acqure more nformaton. Ths mpes
that there may be an nverted-U reatonshp between knowedge and quantty of
externa search (Pun|, Grsh, 1987). Consumers may obtan externa nformaton
drecty from persona nspecton or from other sources such as rea estate brokers,
20 | P a g e
newspapers, and frends and reatves. Consumers wth extremey mted
knowedge (such as frst-tme homebuyers or nterurban movers) rey heavy on
persona sources such as frends, reatves and rea estate agents for nformaton.
Meanwhe, moderatey nformed consumers possess suffcent knowedge to
expore and understand more nformaton, so they w undertake more extensve
externa search on ther own. Those consumers wth the greatest knowedge of the
product and market may aready possess a the nformaton they need to make a
decson wthout a forma extended search of any type. Experence may aso affect
what type of nformaton s gathered. Experenced consumers know whch
dmensons were usefu n the past for comparng aternatves. However,
nexperenced buyers are more susceptbe to externa nfuences such as rea
estate agents n determnng what crtera they shoud use to seect a property
(Pun|, Grsh and Rchard Staen, 1983).
A consumers beefs and atttudes may affect externa search. Some consumers
en|oy the shoppng process more than others do and ke searchng for nformaton.
They w want to vst open houses and nspect more propertes before makng a
decson |ust because they en|oy the process. Vstng more houses per week wth a
rea estate agent was assocated wth onger search tme. Rabansk, |oseph (1995)
expaned that consumer search s aso reated to demographc characterstcs. For
exampe, age s often negatvey reated to amount of nformaton search. Ths may
be refectve of the greater accumuated experence and knowedge as one age
creatng a reduced desre for addtona nformaton. Another characterstc that
appears reated to the amount of search s educaton. Consumers that are more
educated usuay search more, perhaps because of greater confdence n ther
abty to undertake the search and use the nformaton gathered effectvey.
Stuatona constrants on the consumers externa nformaton search ncude the
quantty and avaabty of nformaton n the marketpace and tme pressure on
the buyer. The quantty and quaty of nformaton avaabe to rea estate buyers
vares by market. Many buyers may fee they ack access to suffcent nformaton
to make an nformed decson, as s evdenced by consumers wshng they had
access to more nformaton even after havng come to a decson and purchasng a
house. Access to nformaton wthn a market s not unform (Ratcff, Rchard,
21 | P a g e
1972). Buyers wth uneven access to nformaton w search for dfferng tme
perods and wth dfferng ntensty. Rea estate buyers often rey heavy on rea
estate agents to provde them wth market nformaton, makng the agents
gatekeepers who may nfuence the ength of search. Tme constrants are refected
n rea estate decsons, for exampe, when a transferred worker must fnd a home
n a new cty before startng work. Tme constrants reduce the extent of rea estate
nformaton search. Product determnants that can nfuence the need for an
externa nformaton search ncude the varety and type of product features and
the prce. For exampe, f consumers perceve few dfferences between varous
avaabe propertes, they are key to make fewer comparsons and vew fewer
propertes. Innovatve products such as smart houses requre consumers to acqure
new nformaton to evauate these products and features. The reatvey hgh prce
of rea estate creates concern about the fnanca rsks nvoved n the purchase and
eads to greater search to reduce the rsk nvoved n evauatng and seectng an
aternatve. Informaton search provdes consumers wth an nformaton base for
makng decsons. The foowng dscusson descrbes mechansms by whch
consumers use nformaton n the evauaton of aternatves (|ohnson, Mchae,
1984).
Buyers Pers#e!ti&e"
./ 0uality of Constru!tion Obvousy when one buys a property he makes
sure that the quaty of constructon s good. Everyone whe buyng a new
product wants to buy quaty stuff. Same appes to the property. Every buyer
wants to buy a we but house.
1/ Pollution Free En&ironment The mmedate surroundngs of the property
s aways evauated by the buyer. These days deveopers gve due
mportance n makng the surroundngs beautfu wth nnovatve and
creatve andscapng. They nvove andscape archtects from dfferent
corners of the word to gve ther customers the best. The NCR s becomng
more and more popuar among home buyers because of ts greenery and
pouton-free envronment.
22 | P a g e
2/ 3ater A&ailability Water Avaabty, power backup and safety and
securty are some very mportant factors whch peope do consder whe
purchasng the property. A these factors are hugey responsbe for the
transton of peope from Deh to housng compexes n NCR as many
coones of Deh faces probem of shortage of water and power faure whe
avaabty of these essenta factes are ensured n housng compexes by
the respectve deveopers.
4/ (!!u#an!y - Due to ncreasng crme ths factor s becomng more and more
mportant for the buyers. They dont want to sette down n such a pace
where hardy anyone ese ves. Peope prefer to stay n a reasonaby we-
occuped housng compex. But ts aso true that peope dont prefer to stay
n hghy popuated areas as t was observed n the case of Shpra Sun Cty,
Ghazabad where 5000 fames vng n one snge housng compex fght for
space and car parkng pace.
5/ Suitability of Home Ty#e Nowadays due to the wde range of optons
avaabe peope can afford to be choosy. Now they dont need to
compromse on anythng. They dont buy a property t the tme a of the
essenta thngs match ther requrements. Deveopers do pay attenton to
the dfferent requrements of dfferent customers. Some want a fat on the
second foor whe some want a fat wth two bedrooms. A these
requrements are tred to be met by the deveopers.
6/ S#ort Com#lex 7 Re!reational Fa!ilities "A work and no pay makes
|ack a du boy". Peope have started beevng n ths concept. Now each
parent wants that wthn the compex hs/her kds get a knd of sports to
pay. Even aduts want dfferent recreatona factes to be avaabe n the
housng compex, whch may hep them n emnatng work stress.
'e&elo#ers Pers#e!ti&e"
1. The ma|or externa factors whch peope consder whe purchasng the
property are Prce, Avaabty of oan and Proxmty to workpace.
23 | P a g e
2. The ma|or In-Locaty factors whch peope consder whe purchasng the
property are Ouaty of constructon, Avaabty of water and Pouton-free
envronment
Real Estate is a ,ro)ing Se!tor in ndia
Rea estate n Inda w contnue to rock. Profound economc suggest that the reaty
sector woud grow at 30% per annum to reach to $45 to 50 bon by 2010 from the
exstng $12 bon. To acheve ths growth rea estate n Inda woud requre huge
nvestments over the next fve years. By 2015 t s pro|ected that the market sze
woud grow to $ 90 bon.
Estmated suggest that the urban housng sector woud requre nvestments
to the tune of $25 bon (Rs 1.10 akh crore) over the next fve years. Prces have
remaned buoyant as new constructon ags. Accordng to surveys there s a
shortage of 19.4 mon unts (12.7 mon unts n rura areas and 6.7 mon unts
n urban areas) n the country about three years ago, whch w requre rea estate
n Inda. Rea estate n Inda w trgger economc growth nfrastructure
deveopment and enabng government poces woud hep trgger growth. Rea
estate n Inda w hep hgh economc growth has fueed the demand for rea
estate. Ctes contnue to attract nterest from IT and ITES companes that are
ether estabshng a base or are ookng to expand whch w gve rse to rea
estate deveoper n Inda. It s the suburban ocatons that are wtnessng
deveopment actvty due to easer avaabty of and constructon of arge foor
pate and offer of but to sut factes thus hepng housng constructon company
n Inda. Accordng to one estmate the IT and ITES sector are creatng 200,000 |obs
per annum whch tsef w create a demand n commerca space of 15 mon
square feet. Besdes t w generate a huge demand for resdenta fats. So more
need for uxury resdenta apartments n Inda.
24 | P a g e
Rea estate n Inda assumes that 25 % of the work force |onng the IT/ITES
sector requred ndependent housng there woud be demand for 50 mon sq ft of
resdenta accommodaton every year to meet the need of the workforce |onng
the IT/ITES sector aone. The demand has been aded by the ease n documentaton
and formaty of property regstraton n Inda. It eads to boost property deveoper
n Inda. The Indan reaty sector woud see unchanged nterest from N R Is aded by
the reaxaton n FDI norms n rea estate. The government has aso heped by
permttng banks to advance home oans to N R Is. The report acknowedges that
the government had aso payed a pvota roe n the deveopment of ths sector .It
had aded the sector by gvng ncome tax benefts to consumer and benefts to
deveopers. It ntated the ratonazaton of stamp duty and repeaed the Urban
Land Ceng Act n 9 states. A number of state governments are movng towards
computerzaton of and records.
Rea estate n Inda has a brght future .The report aso ponted out certan ssues,
whch need to be addressed by the government to ensure rapd growth. Some of
the ssues are absence of arge sted companes n these sectors, whch has
affected fund fow. Foregn st cannot buy or se undeveoped and, and
reassessment of the ega aspect to stamp duty and rent contro. At ast, changng
demographcs, ow nterest rate regme, rsng dsposabe ncome, and fsca
ncentves have provded huge demand for housng. Further nucearzaton of Indan
fames has acceerate the demand for mortgages and for fresh housng thus gve
rse to more rea estate deveoper n Inda.
Politi!al reforms in relation to real estate" The government s qute ratona
when t comes to nfrastructure and deveopment n the country as t s requred to
acheve and mantan a growth rate for the economy. The rea estate sector beng
drecty reated to t, s beng gven due mportance. The government has made
sutabe amendments n the FDI reguatons, taxaton structures and varous and
acts n order to attract more foregn nvestment nto the country.
E!onomi! fa!tors" The ower nterest rates and ease of credt avaabty s
fueng the demand for rea estate n the country. Ths scenaro couped wth the
25 | P a g e
huge potenta for consumer credt penetraton n Inda s favorng the rea estate
sector.
'emogra#hi! fa!tors" Demographc factors ke ncreasng teracy rates, hgher
dsposabe ncomes, and ncreasng urbanzaton n the country are mportant
factors propeng the demand for rea estate n the country. The above factors are
gong to generate huge demand for resdenta space, whch comprses 80% of the
tota rea estate demand n the country.
Resear!h *ethodology
Resear!h (b8e!ti&es
The basc ob|ectve of ths study s to understand the postonng strategy of uxury
fats n Ahmedabad
Resear!h methodology"
Resear!h design"
The descrptve form of research method s adopted for study.
The ma|or purpose of descrptve research s descrpton of state of affars of the
nsttuton as t exsts at present. The nature and characterstcs of the postonng
strategy of uxury fats have been descrbed n ths study.
9ature of data"
26 | P a g e
The data requred for the study has been coected from secondary and prmary
research. The reevant nformaton were taken usng the questonnare whch has
been executed among the genera consumers who bought uxury fats n past sx
months n Ahmedabad wth the sampe sze of 50.
*ethods of data !olle!tion"
Ths study s based on the mx of prmary and secondary research. A short
questonnare has been desgned and executed among the genera consumers who
bought uxury fats n past sx months n Ahmedabad va ema.
Tools a##lied"
To have a meanngfu anayss and nterpretaton of varous data coected, graphs
and charts usng exce has been prepared and presented the anayss.
Findings Analysis
0./ 3hat is your age grou#:
27 | P a g e
29% respondents were from 25yrs-30yrs age group however 18% respondents
were from 40yrs-45yrs age group
01/ 3hat is your gender:
84% respondents were mae and 16% respondents were femae
28 | P a g e
02/ *arital Status
69% respondents were marred and 31% respondents were unmarred
04/ From ho) many years you ha&e been staying in your !urrent
#ro#erty:
29 | P a g e
65% respondents have been stayng n current property from 2 to ess than 4 years
however 24% respondents have been stayng n current property from ess than 2
years
05/ 3hat fa!tor )ill be the first #ull to !hoose this ty#e of #ro#erty:
30 | P a g e
28% respondents reped that they consder brand name of deveoper however 39%
respondents reped that they consder ocaton
06/ 3hi!h of the follo)ing are the reasons for shifting residen!e:
31 | P a g e
32% respondents reped that they need more space however 22% respondents
reped that they want to ncrease n status of vng
0;/ Please tell me through )hi!h #ur!hase resour!e you got the
information about #ro#erty:
17% respondents reped that they got nformaton from mobe advertsement
however 20% respondnets reped that they got nformaton from the nternet
0</ Please tell me about the !hara!teristi!s of #ro#erty on )hi!h basis
you e&aluated the #ro#erty/
32 | P a g e
16% respondents reped that they evauate the property on the bass of ocaton
however 15% respondnets reped that they evauate the property on the bass of
communty envronment
Market postonng can be the key to maxmum market exposure and, utmatey, a
satsfactory sae.
The existing #ool of #ros#e!ti&e buyers
determines a #ro#erty=s &alue> based on"
Locaton, desgn, amentes and condton.
Avaabty of comparabe (competng)
propertes. Ths ncudes not |ust your
neghborhood but smar prced
neghborhoods n the regon.
Economc condtons that affect rea property transactons.
Fa!tors that ha&e little or no influen!e on the mar+et &alue of a house
in!lude"
The prce the seer orgnay pad for the property.
The seers expected net proceeds.
The amount spent on mprovements.
The im#a!t of a!!urate #ositioning"
Propertes postoned within market range generate more showngs
and offers, and se n a shorter perod of tme.
Propertes postoned too high have a dffcut tme seng.
Summary of ; Strategies
33 | P a g e
A Compettve Market Anayss s an x-ray of the current market and consders
smar propertes. What happens when you poston your home beyond market
range?
Fewer buyers are attracted, and fewer offers receved.
Marketng tme s proonged, and nta marketng momentum s ost.
The property attracts "ookers" and heps competng houses ook better by
comparson.
If a property does se above true market vaue, t may not apprase, and the
buyers may not be abe to secure a oan.
The property may eventuay se beow market vaue.
34 | P a g e
- 9 out of 10 homebuyers used the Internet as a too when searchng for a
home
- 37% of buyers found ther home onne
- 85% of buyers who used the nternet n ther home search, used an agent for
ther home purchase
- 61% of buyers found vrtua tours "very usefu"
- 36% of home buyers frst earned about the home they purchased usng the
nternet
'igital Promotional Strategies
Web Commercas
Vrtua Tours
Property Sde Shows
Houston Homes for Sae mobe app
eCards
eBrochures
eNewsetters
35 | P a g e
Cragsst Ads
9et)or+ing 7 Target *ar+eting
Persona sphere of nfuence
Professona agent network
Target marketng to showng agent
neghborhood agents
your rght buyer
A sgnfcant porton of the study of rea estate deas wth the consequences of
consumer decsons regardng rea estate assets and servces. Apprasa attempts
to estmate the vaue of property to consumers. Market anayss attempts to predct
consumer demand for rea estate servces. Investment anayss examnes the
requred and expected rate of return to an nvestor, and fnance anayzes
consumers mortgage choces and kehood of repayment. The study of consumer
behavor nvoves tryng to understand compex human bengs and the reasons
they act the way they do n the marketpace. It recognzes that consumer decsons
take pace nsde a person who s dstnctve n hs personaty and atttudes, yet
smar to other consumers who have been exposed to the same externa nfuences
of cuture and socety. Rather than gnorng these compextes, rea estate
researchers shoud embrace the study of consumer behavor to better understand
the reasons behnd market choces. Wthn apprasa, the saes comparson
approach estmates the vaue of a property based on what consumers are wng to
pay for ndvdua components of the property. The study of consumer behavor
examnes why peope vaue those components, whch peope vaue those
components, and why preferences change over tme. A revew of the consumer
behavor terature woud suggest that buyer/seer attrbutes be expcty
consdered n apprasa to determne market characterstcs and the propertes
consdered to have the same utty and amentes. Atttudes, festye, and tastes
affect consumer preferences for space. Market anaysts shoud not rey excusvey
on census-based economc and demographc data from whch they nfer
nformaton about consumers contend that the ncorporaton of nformaton about
36 | P a g e
consumer atttudes, preferences, and perceptons nto economc modes of housng
demand s crtca to any reducton of the arge margn of unexpaned varance n
housng consumpton behavor.
Re!ommendations
Contrary to the opnons of consumers and a good many agents, not a agents offer
the same or even smar servces. Its safe to say that a agents work to brng rea
estate transactons to successfu cosngs, but from there the dfferences n
approach, stye, and effectveness vary wdy.
As the owner of a rea estate busness you must hep prospects and cents reaze
the unque and benefca poston you hod n the marketpace. Peope need to
know ceary why they shoud hre you. Chapter 14 s fu of nformaton that w
hep you defne and cam your market poston. As you communcate your poston
through your marketng efforts, foowng are few recommendatons:
1. Te and remnd peope that you are n the rea estate busness. Once your
busness acheves a hgh eve of success, peope w contact you based on
your reputaton. As a newer agent, however, you must notfy everyone you
know that you are n rea estate saes, and then you must keep notfyng
them at reguar ntervas.
2. Say and prove that youre good at what you do. In a servce busness where
a choces cost bascay the same amount of money, as s the case n rea
estate saes, agents must dfferentate themseves based on the expertse
and servce quaty they provde. Cent success stores, presentaton of
statstca advantages, resuts of satsfacton surveys, and gowng
testmonas w break you free from the crowd.
37 | P a g e
3. Remnd consumers that ther choce of agent matters. Agents need to band
together to get ths message nto the mnds of rea estate buyers and seers.
As an ndustry, we havent convnced cents that the rght agent makes a
dfference n terms of down payment, saes prce, purchase prce, net equty
at cosng, ease of transacton, eve of satsfacton, after-sae servce, and
countess other benefts. Make t your |ob to convey to the pubc that not
ony does the rght agent make a dfference, but that youre the best agent
to make a dfference n ther dea.
Con!lusion
Inda crca 2013 s no dfferent. Dnner partes are fed wth casua conversatons
on whch apartment or pece of and to nvest n. Theres ths sweepng confdence
n rea estate gvng a 20-25 percent return every year. Accordng to San|ay Dutt,
chef executve at Cushman and Wakefed, f a deveoper ses 2,000 fats and 70
percent of those are to peope who pan to put them on the market n a coupe of
years, those shoudnt be counted as saes. Ths eads to a stuaton n arge metros
where houses n under-constructon pro|ects are avaabe anywhere between Rs
1,000-1,500 ess than what the buder s seng them for. Those who want to se
houses are wng to take a sma harcut. What happens when ths becomes too
acute s not too hard to see. The market woud correct. Lasty, accordng to the
Mnstry of Housng and Urban Poverty Aevaton, 11.09 mon homes n urban
areas are yng empty. Seers are hodng out n the hope that capta vaues
contnue to apprecate whe buyers fnd the prces too steep. When that stock
comes on stream ths coud aso portend a correcton. For mdde cass Indans,
nvestng n property has been the surest bang for the buck. On an average,
property vaues have quadruped n the ast decade. But now there are ncreasng
sgns that the dream run that rea estate has en|oyed over the ast decade coud be
comng to an end. Rea estate practtoners pont to sowng saes and rsng
nventores. As ths story n The Economc Tmes expaned, there s a gut of
ndependent homes n south Deh. Around the country, n separate mcro-markets,
38 | P a g e
the story s no dfferent. The purported benefts of housng, and of homeownershp
n partcuar, have been stressed n theoretca and emprca terature on housng.
The soca vaue creaton by housng, such as soca stabty, functona
neghbourhoods, deveopment of cv socety, abatement of crme, and genera
enhancement of wefare, have been we recognzed. Ths s partcuary true of
provson of affordabe housng for the poor, n addton to the wdey accamed
ob|ectves of equty and soca |ustce. "Homeowners accumuate weath as the
nvestment n ther homes grows, en|oy better vng condtons, are often more
nvoved n ther communtes, and have chdren who tend on average to do better
n schoo and are ess key to become nvoved wth crme. Communtes beneft
from rea estate taxes homeowners pay, and from stabe neghborhoods
homeowners create" (U.S. Department of Housng and Urban Deveopment 2000).
Homeownershp creates neghborhoods wth a coectve sense of dentty through
the deveopment of stake hodng that s nked n terms of ts vaue to the
dynamcs of the neghborhood at arge.
Referen!es
1. Bargh, |. A. 2002. Losng conscousness: Automatc nfuences on
consumer |udgment, behavor and motvaton. |ourna of Consumer
Research 29 (2): 2805.
2. Bauer, R. A. 2002. Consumer behavour as rsk takng. In Rsk takng and
nformaton handng n consumer behavour, ed. D. F. Cox, 2333.
Boston, ma: Harward Unversty Press.
3. Downg, G. R., and R. Staen. 1994. A mode of perceved rsk and
ntended rsk-handng actvty. |ourna of Consumer Research 21 (1):
11934.
4. Downs, A. 1989. Irratona buyers are cruca sae eements. Natona Rea
Estate Investor 31 (11): 423.
39 | P a g e
5. Edwards, W., and B. Fasoo. 2001. Decson technoogy. Annua Revew of
Psychoogy 52: 581606.
6. Isen, A. M., and B. Means. 1983. The nfuence of postve affect on
decson-makng strategy. Soca Cognton 2 (1): 1831.
7. Kumar V., AakerD. A., and G. S. Day. 1999. Essentas of marketng
research. New York:Wey.
8. Laroche M., |. Bergeron, and C. Goutaand. 2003. How ntangbty affects
perceved rsk: the moderatng roe of knowedge and nvovement.
|ourna of Servces Marketng 17 (2): 12240.
9. Lee, |., and L. V. Gestfed. 1998. Enhancng consumer choce: Are we
makng approprate recommendatons? |ourna of Consumer Affars 32
(2): 22751.
10. Fader, P. S., and L. McAster. 1990. An emnaton by aspects mode of
consumer response to promoton cabrated on upc scanner data. |ourna
of Marketng Research 27 (3): 32232.
11. Gat, I. 1986. Makng career decsons: A sequenta emnaton approach.
|ourna of Counseng Psychoogy 33 (4): 40817
12. Gber, K. M., and S. L. Neson. 2003. Consumer behavor appcatons to
rea estate educaton. |ourna of Rea Estate Practce and Educaton 6 (1):
6389.
13. Grewa, R., R. Mehta and F. R. Kardes. 2004. The tmng of repeat
purchases of consumer durabe goods: The roe of functona bases of
consumer atttudes. |ourna of Marketng Research 41 (1): 10115.
14. Gronhaug, K., I. A. Keppe, and W. Haukeda. 1987. Observaton of a
strategc househod purchase decson. Psychoogy & Marketng 4 (3):
23953.
15. Hansen, T. 2005. Perspectves on consumer decson makng: An
ntegrated approach. |ourna of Consumer Behavor 4 (6): 42037.
40 | P a g e
16. Hauser, |. R., and G. L. Urban. 1986. The vaue prorty hypothess for
consumer budget pans. |ourna of Consumer Research 12 (4): 44662.
17. Hawkns, D. I., R. |. Best, and K. A. Coney. 2003. Consumer behavor:
Budng marketng strategy. Madson, w: Irwn McGraw-H.
18. Megbougbe, Isaac F., Aen P. Marks, and Mary B. Schwartz, The
Economc Theory of Housng Demand, |ourna of Rea Estate Research,
Fa 1991, 6: 3, 381-393.
19. Mnard, Pau W. and |oe E. Cohen, Modeng Persona and Normatve
Infuences on Behavor, |ourna of Consumer Research, September 1983,
10, 169-180.
20. Neson, Theron R. and |oseph Rabansk, Consumer Preferences n
Housng Market Anayss, AREUEA |ourna, 1988, 16: 2, 138-159.
21. Newman, |oseph W. and Rchard Staen, Prepurchase Informaton
Seekng for New Cars and Ma|or Househod Appances, |ourna of
Marketng Research, August 1972, 9, 247-297.
22. Ncosa, Francesco M., Consumer Decson Processes, Engewood Cffs, N|:
Prentce-Ha, 2002.
23. Pun|, Grsh, Presearch Decson Makng n Consumer Durabe Purchases,
|ourna of Consumer Marketng, Wnter 1987, 4, 71-82.
24. Pun|, Grsh N. and Rchard Staen, A Mode of Consumer Informaton
Search Behavor of New Automobes, |ourna of Consumer Research,
March 1983, 9, 366-380.
25. Ouas, Wam |., Changng Sex Roes: Its Impact upon Famy Decson
Makng, n Andrew Mtche, ed., Advances n Consumer Research 9, Ann
Arbor: Assocaton for Consumer Research, 2001, 267-270.
26. Rabansk, |oseph, Market anayses and Apprasas, Rea Estate Issues,
Wnter 1995, 45-49.
27. Ratcff, Rchard U., Modern Rea Estate Vauaton, Theory and Appcaton,
Madson, Ws:Democratc Press, 2008
41 | P a g e
28. Ratcff, Rchard U., Vauaton for Rea Estate Decsons, Santa Cruz:
Democrat Free Press, 1972.
29. Reynods, Fred and Wam Darden, Construng Lfe Stye and
Psychographcs, n Wam D.
30. Wes, ed., Lfe Stye and Psychographcs, Chcago: Amercan Marketng
Assocaton, 2001, 71-96.
31. Rogers, Car R., Cent-Centered Therapy, Boston: Houghton Mffn
Company, 2008.
32. Hobrook, Morrs B. and Ezabeth C. Hrschman, The Experenta Aspects
of Consumpton, |ourna of Consumer Research, September 1982, 9, 132-
140.
33. Homans, George, Soca Behavor, New York: Harcourt, 1961.
34. Howard, |ohn A. and |agdsh N. Sheth, The Theory of Buyer Behavor. New
York: Wey, 2010.
35. |anszewsk, Chrs, Preattentve Mere Exposure Effects, |ourna of
Consumer Research, December 1993, 20, 376-392.
36. |ohnson, Mchae D., Consumer Choce Strateges for Comparng
Noncomparabe Aternatves, |ourna of Consumer Research, December
1984, 11, 741-753.
37. |ohnson, Mchae D., The Dfferenta Processng of Product Category and
Noncomparabe Choce Aternatves, |ourna of Consumer Research,
December 1989, 16, 300-309.
38. Kassar|an, H., Personaty and Consumer Behavor, |ourna of Marketng
Research, November 1971, 8, 409-418.
39. Key, George A., The Psychoogy of Persona Constructs, New York: W. W.
Norton, 2000.
42 | P a g e
40. Ke, Geoffrey C. and Roger A. Layton, Dmensons of Consumer
Informaton Seekng Behavor, |ourna of Marketng Research, 18, May
1981, 23-239.
41. Crpps, |. D., and R. |. Meyer. 1994. Heurstcs and bases n tmng the
repacement of durabe products. |ourna of Consumer Research 2 (2):
30418.
42. Downg, G. R., and R. Staen. 1994. A mode of perceved rsk and
ntended rsk-handng actvty. |ourna of Consumer Research 21 (1):
11934.
43. Downs, A. 2005. Irratona buyers are cruca sae eements. Natona Rea
Estate Investor 31 (11): 423.
44. Edwards, W., and B. Fasoo. 2001. Decson technoogy. Annua Revew of
Psychoogy 52: 581606.
45. Mes, M. B., and M. Huberman. 1994. Ouatatve data anayss: An
expanded source book. London: Sage.
46. Mtche, V. W. 1999. Consumer perceved rsk: Conceptuasatons and
modes. European |ourna of Marketng 33 (12): 16395.
47. Mtra, K., M. C. Ress, and L. M. Capea. 1999. An examnaton of
perceved rsk, nformaton search and behavora ntentons n search,
experence and credence servces. |ourna of Servces Marketng 13 (3):
20828.
48. Ozanne, |. L., M. Brucks, and D. Grewa. 1992. A study of nformaton
search behavor durng the categorzaton of new products. |ourna of
Consumer Research 18 (4): 45263.
49. Peter, |. P., and |. C. Oson. 2002. Consumer behavor and marketng
strategy. New York: Irwn McGraw-H.
50. Pun|, G. N., and R. Brookes. 2002. The nfuence of pre-decsona
constrants on nformaton search and consderaton set formaton n new
43 | P a g e
automobe purchases. Internatona |ourna of Research n Marketng 19
(4): 383400.
44 | P a g e