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Executive Summary

Executive Summary
This study is related to construction industry in India. Heightened realization on the part of all
stakeholders that infrastructure would play a key role towards pushing India’s GDP to the
desirable 8 percent mark has come as a boon for India’s construction industry. The industry is
riding a growth wave, which is evident from the financial results posted by some of the leading
contractors. However, the industry is faced with certain challenges.
The need to be price competitive, adherence to safety, quality consciousness, adapting to
technological changes, developing and using new construction materials and having an
adequately trained manpower are issues that industry must look into and address.
"The construction sector, therefore, has to gear up fully to take on the ever- increasing
challenge." This study was basically concern with consumer buying behaviour towards
residential properties in Pune city with reference to Kolte- Ptil Developers.
The basic objective behind carrying this study was to study the property purchasing behaviour
i.e. (Residential) of different types of customer in different area in Pune city, to study the various
factors affecting the customer-buying pattern especially in case of residential properties and to
search out new prospects for Kolte –Patil Developers.
After completing this study it was found that maximum respondents are having the resident on
rental, it was also found that price & location is major factor which are consider by the customer
at the time of purchasing the residential property.
The ‘quality’ & ‘facilities’ are most considerable parameters at the time of selecting residential
property. It was also found that demand of the 2 & 3 BHK flats were more to comparing other
types of residential properties.
After going through this study I would recommend Kolte-Patil Developers that they should try to
decrease Five star amenities with a view to cut down the property prices and there by attracting
the middle class, and also actively participate and organize property exhibition, trade shows,
hoardings, etc. to create awareness in the market.
They should reduce the maintenance charges and should concentrate on CRM activities, such as
loyalty to create strong good will and gain new customer.

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Chapter 1
Introduction

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Kolte-Patil developer Pvt Ltd is located at Dhole Patil Road, Pune.

We have consistently managed to be a competitive company taking a lead in quality and


technology.

Thus we have gained a reputation of being a preferred source of Building, Constructions and
Developers.As an organization we have evolved through continuous innovation.The Owner of
this company is Mr.Rajesh.Patil&Mr.Milind.Kolte.

The industry started in 1991.

Registered Address &Office: City point tower Dhole patil road,Pune.

● WEBSITE : www.Koltepatildeveloper.com

Quality Policy:
Kolte-Patil developers Pvt Ltd 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:
Demonstrate commitment and compliance to the Quality Management System.
Improve the competence of employees by continuous training in the areas in which they
work.
 To be a market leader by enhancing the customer satisfaction.
 To create a customer focused organization.

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After Sales:
Kolte-Patil developer Pvt Ltd 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 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:

HDFC Bank

Standard Charted Bank


ICICI Bank
BAJAJ FINSERV

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DEVELOPMENT IN CONSTRUCTION SECTOR

 A positive image of Construction Company is a career choice.

 Adequate training facilities to cope with increasing demands for modern apprenticeships.

 A workforce that is suitably skilled and qualified.

 The transfer of skills from other sectors agriculture, aquaculture and forestry, to the
construction industry.

 Local labors able to effectively complete for the large scale construction contracts.

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This study is related to construction industry in India. Heightened realization on the part of all
stakeholders that infrastructure would play a key role towards pushing India’s GDP to the
desirable 8 percent mark has come as a boon for India’s construction industry.
The industry is riding a growth wave, which is evident from the financial results posted
by some of the leading contractors. However, the industry is faced with certain challenges. The
need to be price competitive, adherence to safety, quality consciousness, adapting to
technological changes, developing and using new construction materials and having an
adequately trained manpower are issues that industry must look into and address.
"The construction sector, therefore, has to gear up fully to take on the ever-increasing
challenge."
This study was basically concern with consumer buying behaviour towards residential
properties in Pune city with reference to Kolte patil Builders Constructions. The basic objective
behind carrying this study was to study the property purchasing behaviour i.e. (Residential) of
different types of customer in different area in Pune city, to study the various factors affecting
the customer-buying pattern especially in case of residential properties and to search out new
prospects for Kolte patil Builders Construction.

After completing this study it was found that maximum respondents are having the
resident on rental, it was also found that price & location is major factor which are consider by
the customer at the time of purchasing the residential property. The ‘quality’ & ‘facilities’ are
most considerable parameters at the time of selecting residential property. It was also found that
demand of the 2 & 3 BHK flats were more to comparing other types of residential properties.

After going through this study I would recommend Kolte-Patil developer that they should
try to decrease Five star amenities with a view to cut down the property prices and there by
attracting the middle class, and also actively participate and organize property exhibition, trade
shows, hoardings, etc. to create awareness in the market. They should reduce the maintenance
charges and should concentrate on CRM activities, such as loyalty to create strong good will and
gain new customer.

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OBJECTIVES

 To study the property purchasing behavior i.e. (Residential) of different types of


customer in different area in Pune city.
 To study the various factors affecting the customer-buying pattern especially in case of
Residential properties.
 To find the expectations & needs of customers from .Kolte-Patil developer
 To find the opinion of the customers with regard to various schemes available or schemes
offered by Kolte-Patil developer
 To find out the near competitors for Kolte-Patil developer Constructions.
 To find out the period in which the customers are more willing to purchase Residential
properties.
 To search out new prospects for Kolte-Patil developer Construction.

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SCOPE

This study will be beneficial to Kolte-Patil developer to know about customers buying
behaviour 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 62 Respondents.

Hence, this market study will provide information to Company, and Customers.

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An individual with a positive attitude towards a product/service offering is more likely to make a
purchase; this makes the study of consumer attitudes highly important for a marketer. An attitude
may be defined as a feeling of favorableness or un-favorableness that an individual has towards
an object. In terms of consumer behavior, consumer attitudes may be defined as an inner feeling
of favorableness or un-favorableness towards a product or service offering and the 4Ps. Attitudes
are an expression of inner feelings that reflect whether a person is favorably or unfavorably
predisposed to some "object" and “Attitude formation, in turn, is the process by which
individuals form feelings or opinions toward other people, products, ideas, activities, and other
objects in their environment
1.1 The nature of attitudes can be elaborated as follows:
a. Attitudes are directed towards an object (product/service offering, price, store, dealer,
promotion, advertisement etc.) about which a consumer has feelings and beliefs.
b. Attitudes have a direction; they could be positive or negative. A consumer could
possess feelings of like/dislike, favorableness and un-favorableness towards a product or service
as well as the mix. They vary in degrees and intensity, and can fall anywhere along a continuum
from very favorable to very unfavorable.
c. Attitudes are consistent in nature, particularly with respect to the third component, i.e.
behavior. Consumers are consistent with respect to their behavior. However, they are not entirely
permanent and may change if the cognitive or the component is changed. This implies that if the
consumer witnesses new experience or is exposed to new information about product/service
offering and the mix (cognition), and) feelings are changed from dislike to like (affect), attitudes
towards the offering and the mix can undergo change. In other words, while attitudes are stable
and do not change frequently, they can be changed if something is done to change them.
d. Attitudes are a learned predisposition. Attitudes are learned; they are formed as a
result of
i) self experiences with the product/service offering and the mix;
ii) interaction with other people, be it family, friends, peers and colleagues;
iii) information obtained from the marketer through promotion particularly
advertisements as well as dealers and salespeople. Attitude formation as a process is impacted by

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needs and motivation, perception as well as learning.
e. Attitudes cannot be observed directly. While attitudes are comprised of three
components, behavior is just one of them. It is only this component that can be seen; the
cognitive and affect components cannot be seen. Thus it is said that attitudes cannot be seen;
they can only be inferred from the manner in which an individual behaves. Thus, we can infer
that a person who buys Colgate Total toothpaste and disregards Pepsodent has a positive attitude
towards Colgate.
f. While attitudes can be inferred from our behavior, it is not synonymous to behavior. It
has two other components, and reflects a learned predisposition to act favorable or unfavorable
towards a product and service offering and the mix.
g. Attitudes are situation specific; they occur within a situation. Sometimes depending
upon the situation, a consumer may exhibit a behavior that may be inconsistent with his/her
attitude. He may prefer to buy Pepsodent over Colgate because the former is on a sales
promotion and gets him a free toothbrush. Consumers form positive attitudes towards
product/service offerings because they provide a utility, in other words, they provide a rewarding
experience through the benefits that they provide. Consumers learn to relate a reward with the
use of the offering. On the other hand if they do not offer a rewarding experience, consumers
form a negative attitude e towards such an offering.

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FUNCTION OF ATTITUDES:

A) UTILITARIAN FUNCTION: Consumers form positive attitudes towards


product/service offerings because they provide a utility, in other words, they provide a rewarding
experience through the benefits that they provide. Consumers learn to relate a reward with the
use of the offering. On the other hand if they do not offer a rewarding experience, consumers
form a negative attitude e towards such an offering.
B) EGO DEFENSIVE FUNCTION: Consumers form attitudes as they help defend their
ego, self-image and self-concept. If a consumer is high on ethnocentrism, and patronizes Indian
products, he would have a positive attitude towards Indian brands. He would speak for and
promote such brands even if he knows that a foreign made product provides better value.
Attitudes are formed to protect the ego.
C) VALUE EXPRESSIVE FUNCTION: Positive attitudes are formed when a product or
service expresses a person’s values and lifestyle, personality and self image, and self concept.
This is because attitudes provide people with a basis for expressing their values. In cases where
there is a mismatch between the product image and a consumer’s self-image, a negative attitude
is developed. Attitudes are a reflection of value.
D) KNOWLEDGE FUNCTION: Attitudes are formed when consumers want to reaffirm
their knowledge base, to finally help them simplify purchase decision making. If a consumer
thinks positive about a brand, it helps reaffirm his opinion, and makes decision making simpler
and faster. Attitude helps in decision making.

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REAL ESTATE MARKET:
Real estate market, mostly represented by residential housing market, has been traditionally
acknowledged as one of the most important segments of broader economy. In the past decades, it
undergone dramatic rises and falls, culminating with the great fall in a form of US subprime
mortgage crisis and triggered the financial crisis that resulted in global economic recession.
Consequences of the recession are evident even now, and many countries worldwide are still
deep in the economic downturn. During communism, most of citizens lived in rented places.
Rent was very cheap and easy to get. System was based on social housing that was encouraging
young people to take their first steps in family life. Today, 20 years later, is widely believed that
real estate ownership is an unobtainable goal for some groups and especially for young people.
Frequently treated as a financial asset, real estate property can be defined as all interests,
benefits, rights and encumbrances inherent in the ownership of physical real estate, where real
estate is land together with all improvements that are permanently affixed to it and all
appurtenances associated. Real estate market was always recognized as market of constant and
ever-rising value. Value represents estimation of the exchange price of a property if it were to be
sold in the open market. Furthermore, it presumes that both the willing buyer and willing seller
are reasonably informed about the nature and characteristics of the asset. New segment of the
property buyers is rising. Those are first-time buyers, employed young professionals, highly
educated, with regular income who are trying to own their homes before middle-age. There is a
large number of schemes designed to make home-ownership an attainable target to young
professionals. When buying real estates, potential and current owners are ultimately concerned
with the sustainability of the property and its value. Now, as the grounds of value have been
seriously shaken, the question that is emerging is: what are the influences on consumers’
decision making process when it comes to real estate purchases? People have various reasons for
buying property. Their individual needs determine what they expect from a property as well as
what they will be willing to pay for it. Understanding what the potential buyers are looking for,
and who is influencing on his/her decision making process, seller will be able to market the
property to the potential segment. This issue is especially important when it comes to the young
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population that is faced with a first-time decision regarding real estates. Young professionals
who are interested in buying their first home are inexperienced and careful (even scared) at the
prospect of making a mistake in taking on such a large loan. First time buyers typically desire the
kind of home that they grew up in (influenced by their family background), but most probably
would have to settle for something smaller or more simple.

REFERENCE GROUPS ;
The focus of this research is to determine which reference group has the most influence on
consumers’ decision-making process. They can be described as one or more people that are
having relevance for an individual, as a point of comparison for attitudes, beliefs, values or
behavior. Some of the basic characteristics, common to all definitions are: objectives, role
differentiation, shared values and norms, membership and communication. Several criteria are
applicable to the classification of reference groups, and the most common ones are: primary and
secondary, formal and informal, large and small. Level of reference groups’ influence on
individual purchasing behavior depends on the nature and characteristics of products, as well as
the specific social factors. Reference groups can generally have three types of influences:
informational, utilitarian and value-expressive Family is often the most influential reference
group. As family is vivid, constantly changing category, it goes through several phases of its life
cycle: single, then married, married with children, empty nest, retirement and widowhood. One
of the goals of this research is to show that the importance and influence of reference group is
dependent on the life cycle. Stages in the life cycle are shown to be parallel with the demand for
housing types: rental apartment, starter home, move-up single-family home, independent
retirement housing, and supportive apartment

DECISION-MAKING PROCESS:
The decision-making process follows from three to nine stages. Decisions concerning the
actions on real estate market are often treated as intrinsically rational, readily comprehendible
and ultimately self-regulating. Recently, there are significant efforts to prove that the process of
buying a property includes complex social processes. They can be mostly regarded from
cognitive perspective, as one of the dominant perspectives of buyer behavior. In the nature of
process, real estate market is always related to homeownership, and only in 2008 it represented
57.2% of global real estate industry value. For the consumer, it became a host of all other social
benefits. Because of the importance of the decision, most consumers undertake an external
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information search, although it is shown that they are often overconfident about their knowledge
or abilities than under-confident. It is significant to stress out that the importance of this decision
is greater when it is the first-time purchase of younger consumers. There are several explanations
of consumer needs for information. Buyers who are less familiar with an area have less accurate
expectations of the distribution of opportunities. A buyer who knows that they are unfamiliar
recognizes the added advantages of extra time. Learning effect should also increase the marginal
benefit of effort since seeing more houses increases the set of information available to a buyer.
Informed consumer can effectively evaluate alternative offerings and make a rational decision
based upon information provided. In search for information, buyer can consult real estate
companies, directly or indirectly via Internet, as an alternative information source. There are
class and gender differences between buyers behavior. Other resource of information and
influence is the family as crucial decision-making unit. recognized several studies in family
decision making have investigated the relative amount of influence exerted by family members
and their influences at each stage of the decision-making process. Research in the field of real
estate has focused on the behavioral concepts that affect the market’s search and price-setting
processes. In terms of the making decisions upon value, understanding human decision-making
processes is important, as ultimately, market participants and the interaction of supply and
demand determines the price of the property.

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DESCRIPTION OF VARIABLE
The dependent variable is consumer attitude towards Real Estate purchase Independent
variables include:
(a)Performance
(b) Reference group
(c) Service
(d) Ability
(e) Agents

A) PERFOMANCE;
Professional company, purchase process, work, time and online highly influences the
performance of real estate industry. The study revealed that the effect of the interest rate
volatility on income and its interest rate elasticity performance. It can be settled that interest rate
is stochastic in determining the performance of any property market. That is the volatility in the
interest rate which is measured by its variance would lead to a change in elasticity of the
performance for real balances. Findings in this study leads to a conclusion that the performance
for risky assets depends upon the joint probability distribution of asset returns and in a mean-
variance framework, the performance for an asset is a function of both the expected rates of
return on all assets and the covariance among asset returns. This will produce a shift in asset
performance equations in general and in the real estate performance function in particular.
B) REFERENCE GROUP Reference group has the most influence on consumers’
decision-making process. They can be described as one or more people like friends, family
members that are having relevance for an individual, as a point of comparison for attitudes,
beliefs, values or behavior. Some of the basic characteristics, common to all definitions are:
objectives, role differentiation, shared values and norms, membership and communication.
Several criteria are applicable to the classification of reference groups. family and friends on one
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side and experienced experts on the other side are the main influencers on one’s decision
regarding the real estate purchase. Also, an important implication for the managers and
companies in this field is that attitudes and behaviors are changing depending on the education
level, age and stage consumer is in the family life cycle.
C) SERVICE Professionals should learn never to be complacent. This is especially so in
the age of globalization when markets become increasingly open and cross-boundary
competitions get increasingly fierce. Like all businesses in the marketplace, professional real
estate companies should provide the best quality services to clients and maintain its competitive
edge and ability to transform oneself into a “learning organization” within which the talent,
experience, knowledge and creativity of individual colleagues could be fully utilized to build on
the company’s technology and organizational infrastructure. After all, the only thing certain
about professional service market makes country developed and developing economies in this
age of globalization is its uncertainty
D) ABILITY Seasoned real estate professionals will tell you that certain talents,
qualities, and personal traits are crucial to building a successful career an ability to organize
personal affairs as well as conduct business activity in a logical, efficient manner (e.g., obtaining
listings, showing properties, handling offers, and conducting negotiations). An ability to address
difficulties and arrive at plausible, practical solutions given conflicting interests of parties
involved. This attribute is particularly useful in listing and selling activities. A basic
understanding of computer hardware and software. Computers and other electronic devices are
mainstays in today’s real estate brokerages. Salespeople must understand, draft, and explain real
estate agreements, listings, and other related forms. Real estate registrants must ensure that
documents are correctly prepared and properly reflect the position of the parties. A fundamental
part of any real estate transaction. Salespeople routinely negotiate on behalf of buyers and sellers
to arrive at mutually agreeable terms A basic understanding of questioning methods. Real estate
success often depends on asking the right question at the right time. Ability is particularly valued
when helping buyers determine their purchasing needs. The ability to work independently to get
the job done. Real estate sales demands self-motivation, discipline, and personal commitment
.An ability to gain the trust and respect of buyers and sellers. Rapport comes easily to those who
enjoy working with people, genuinely take interest in their well-being, and understand needs and
wants.
E) AGENTS Real estate agent means a person who is engaged in rendering any service in
relation to sale, purchase, leasing or renting, of real estate and includes a real estate consultant.

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An excellent real estate agent is like a conductor, guiding a group of resources towards a final
goal like the sale of the house. An agent that can use technology with ease is going to be more
up-to-date on the market in the area. They will also be more likely to be an organized person
who has their act together. This is the type of person sellers want helping to sell their homes. The
top agents come to a home with a prospective buyers list. They also are working with a well
known realty agency. They know other realtors in the area, too, and are willing to work with
others if that sells the home faster. A real estate agent that is organized and likes to work with
attention to detail is the one that is most likely to sell a home. This is especially true in a hard-to-
sell market. Great agents know the tiniest changes sellers can make to improve the sale-ability of
their home. They return client calls promptly and make every appointment on time.

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SCOPE OF STUDY

In this study we aim to understand the decision making process of the new emerging segment
called young professionals in relations to real estate market and understanding their buying
behavior. Combining quantitative and qualitative methods, this research is testing the influence
of the specific reference groups (family, friends and experts) of the young professionals (up to
35), during their real estate purchase.

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Chapter 2
Literature Review

25
This study is related to construction industry in India. The industry is riding a growth wave,
which is evident from the financial results posted by some of the leading contractors. However,
the industry is faced with certain challenges. The need to be price competitive, adherence to
safety, quality consciousness, adapting to technological changes, developing and using new
construction materials and having an adequately trained manpower are issues that industry must
look into and address.
"The construction sector, therefore, has to gear up fully to take on the ever-increasing
challenge."
This study was basically concern with consumer buying behavior towards residential
properties with reference to Kolte-Patil Developer. The basic objective behind carrying this
study was to study the property purchasing behavior i.e. (Residential) of different types of
customer in Kharadi, Pune city, to study the various factors affecting the customer-buying
pattern especially in case of residential properties and to search out new prospects for Kolte-Patil
developer.

After completing this study it was found that maximum respondents are having the
resident for ownership, it was also found that price & location is major factor which are consider
by the customer at the time of purchasing the residential property. The ‘quality’ & ‘facilities’ are
most considerable parameters at the time of selecting residential property. It was also found that
demand of the 3.5 & 4.5 BHK flats were more to comparing other types of residential properties.

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Research objectives and focus issues
The main objective of this study is to know the perception of customers about various factors
affecting their choice of residential apartments
This study will help real estate developers and agents to focus on the parameters as demanded by
the buyers so as to enhance the buying appeal for the properties. It will also help them in
deciding which factors to be highlighted while promoting residential apartments in pune
The study attempts to seek answers for the following questions:
• Which factors play a role in affecting the purchase decision of customers for residential
apartments?
It will also help in determining the impact of size, price and floor preferences of buyers and the
facilities offered by developers such as swimming pool, gym, landscaping, Wi-Fi, etc

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Chapter 3
Research Methodology

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❖ Questionnaire: -

Questionnaire is used to collect information from respondent. In this study questionnaire


contents both close ended & open-ended questionnaire.
Sample size is 62 respondents, which are further calculated in percentage and shown graphically
in various charts.
▪ For this project Primary as well as Secondary data is used.
❖ Primary Data:
Information collected for first time is called as Primary Data & is in the original
character. Primary data collected either through observation or through direct communication
with respondents in one form or another or through personal interviews.
Primary data is collected through the survey method with help of questionnaire.
❖ Secondary Data:

Secondary data means data which already been collected and analyzed by someone else.
Secondary data collected from books, Internet & magazines.

SAMPLE DESIGN
(a) Sampling Technique:
The technique used in the study is random sampling method.
(b) Sample Units:
In this study, the sampling units were genuine clients who want to purchase residential property.
(c) Sample Size
Sample Size – 62 respondents

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Chapter 4
Theoretical Aspects

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THEORETICAL BACKGROUND OF BUYING BEHAVIORS

 Definition of Buying Behaviour:


Buying Behavior is the decision processes and acts of people involved in buying and
using products.
The dynamic interaction of affect and cognition, behaviour, and the environment by
which human beings conduct the exchange aspects of their lives
 Meaning of Consumer Behaviour:
Consumer behaviour can be looked upon as a study of how individuals make decisions on
how to spend their available resources like time, money and effort on various consumption-
related items.
Human beings are greatly influenced in their buying actions by various factors like
opinions of others, marketing stimuli like product, advertising, packaging and product
appearance
 Scope of Consumer Buying Behaviour
 Why do consumers buy a particular product/service brand?
 How do they buy them?
 Where do they buy these products?
 How often do they buy them?
 When do they buy them?
 What factors influence the decision making process of the consumers?
 The buying process involves the user, influencer, decider, and the buyer
 The process is greatly affected by selective information received by a consumer
 It is very important to understand what and how much information is required by the
consumer to help him evaluate the products and services
 As such understanding why a consumer finally buys a product is very complex
 Importance Of Consumer Behaviour
 Ever increasing intensity of competition
 More aggressive competitors emerging with greater frequency
 Changing bases of competition
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 Geographic sources of competition are becoming wider
 Niche attacks are becoming frequent
 Pace of innovation is rapid
 Price competition becoming more aggressive
 Product differentiation is declining
 Why Focus On Consumer Behaviour
 Profit making through customer satisfaction
 Dramatic increase in the quality of consumer and marketing research
 Development of consumer behaviour research
 Shifting from the mass marketing concept to individual marketing concept.
 Characteristics Of Consumer Behaviour
Consumer behaviour is dynamic:
 The feelings, thinking, perceptions, and actions of the consumers and the society at
large keep changing frequently.
 Strategies that work today may not work tomorrow.
 The product life cycles are becoming shorter.
 Benefits of Consumer Behaviour
 Stay loyal for a long time
 Buy new products and upgrade existing ones
 Talk favourably about the firm and its products
 Pay less attention to competing brands
 Offer product/service ideas to the firm
 Are cost effective
 Approaches To Consumer Behaviour
Managerial:
 Micro and cognitive in nature
 Emphasizes on attitudes, perceptions, lifestyle and demographic characteristics
 Environmental effects-reference groups, family and culture
 Risk of this approach is overemphasis on rationality of a consumer and overlooks
 the dynamics of environmental factors independent of the individual
 Tends to focus more on purchase than on consumption
Holistic:

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 More macro in approach
 Tends to focus more on consumption experience than on purchasing process
 Stresses the broader, culturally derived context of consumption
 Emphasizes on environmental context of the consumer’s actions
 This approach may not be actionable and all decisions are not rational.
 Need To Understand Consumer Buying Behaviour:
 Why consumers make the purchases that they make?
 What factors influence consumer purchases?
 The changing factors in our society.
 Consumer Buying Behavior refers to the buying behavior of the ultimate consumer. A
firm needs to analyze buying behavior for:
 Buyers reactions to a firms marketing strategy has a great impact on the firms
success.
 The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the
what, where, when and how consumers buy.
 Marketers can better predict how consumers will respond to marketing
strategies.
 Stages of Consumer Buying Process:
Six Stages to the Consumer Buying Decision Process (For complex decisions). Actual
purchasing is only one stage of the process. Not all decision processes lead to a purchase. All
consumer decisions do not always include all 6 stages, determined by the degree of complexity.
The 6 stages are:
1. Problem Recognition(awareness of need)--difference between the desired state and the
actual condition. Deficit in assortment of products. Hunger--Food. Hunger stimulates
your need to eat.
Can be stimulated by the marketer through product information--did not know you were
deficient? I.E., see a commercial for a new pair of shoes, stimulates your recognition that
you need a new pair of shoes.
2. Information search--
 Internal search, memory.

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 External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources
etc.
A successful information search leaves a buyer with possible alternatives, the evoked set.
Hungry, want to go out and eat, evoked set is
 Chinese food
 Indian food
 Burger king
 Klondike Kates etc
3. Evaluation of Alternatives--need to establish criteria for evaluation, features the buyer
wants or does not want. Rank/weight alternatives or resume search. May decide that you
want to eat something spicy, indian gets highest rank etc.
If not satisfied with your choice then return to the search phase. Can you think of another
restaurant? Look in the yellow pages etc. Information from different sources may be
treated differently. Marketers try to influence by "framing" alternatives.
4. Purchase decision--Choose buying alternative, includes product, package, store, method
of purchase etc.
5. Purchase--May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation--outcome: Satisfaction or Dissatisfaction. Cognitive
Dissonance, have you made the right decision. This can be reduced by warranties, after
sales communication etc.
After eating an indian meal, may think that really you wanted a chinese meal instead.
 Types Of Consumer Buying Behaviour:
Types of consumer buying behavior are determined by:
 Level of Involvement in purchase decision. Importance and intensity of interest in a
product in a particular situation.
 Buyers level of involvement determines why he/she is motivated to seek information
about a certain products and brands but virtually ignores others.
High involvement purchases--Honda Motorbike, high priced goods, products visible to others,
and the higher the risk the higher the involvement. Types of risk:
 Personal risk
 Social risk
 Economic risk

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The four type of consumer buying behavior are:
 Routine Response/Programmed Behavior--buying low involvement frequently
purchased low cost items; need very little search and decision effort; purchased
almost automatically. Examples include soft drinks, snack foods, milk etc.
 Limited Decision Making--buying product occasionally. When you need to obtain
information about unfamiliar brand in a familiar product category, perhaps. Requires
a moderate amount of time for information gathering. Examples include Clothes--
know product class but not the brand.
 Extensive Decision Making/Complex high involvement, unfamiliar, expensive and/or
infrequently bought products. High degree of economic/performance/psychological
risk. Examples include cars, homes, computers, education. Spend a lot of time
seeking information and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go
through all six stages of the buying process.
 Impulse buying, no conscious planning.
The purchase of the same product does not always elicit the same Buying Behavior. Product can
shift from one category to the next.
For example:
Going out for dinner for one person may be extensive decision making (for someone that does
not go out often at all), but limited decision making for someone else. The reason for the dinner,
whether it is an anniversary celebration, or a meal with a couple of friends will also determine
the extent of the decision making.

 Categories That Effect The Consumer Buying Decision Process


A consumer, making a purchase decision will be affected by the following three factors:
1. Personal
2. Psychological
3. Social
The marketer must be aware of these factors in order to develop an appropriate MM for its target
market.
1. Personal
Unique to a particular person. Demographic Factors. Sex, Race, Age etc.
Who in the family is responsible for the decision making. Young people purchase things for

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different reasons than older people.
2. Psychological factors
Psychological factors include:
 Motives--
A motive is an internal energizing force that orients a person's activities toward
satisfying a need or achieving a goal.
Actions are effected by a set of motives, not just one. If marketers can identify motives
then they can better develop a marketing mix.

MASLOW hierarchy of needs!!


o Physiological
o Safety
o Love and Belonging
o Esteem
o Self Actualization
Need to determine what level of the hierarchy the consumers are at to determine what
motivates their purchases.
 Perception--
What do you see? Perception is the process of selecting, organizing and
interpreting information inputs to produce meaning. IE we chose what info we pay
attention to, organize it and interpret it.
Information inputs are the sensations received through sight, taste, hearing, smell and
touch.
Selective Exposure-select inputs to be exposed to our awareness. More likely if it is
linked to an event, satisfies current needs, intensity of input changes.
Selective Distortion-Changing/twisting current received information, inconsistent with
beliefs.
Advertisers that use comparative advertisements, have to be very careful that consumers
do not distort the facts and perceive that the advertisement was for the competitor.
Selective Retention-Remember inputs that support beliefs, forgets those that don't.
 Ability and Knowledge--
Need to understand individual’s capacity to learn. Learning, changes in a person's
behavior caused by information and experience. Therefore to change consumers' behavior

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about your product, need to give them new information re: product...free sample etc.
Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those who have
knowledge of a product.
Learning is the process through which a relatively permanent change in behavior results
from the consequences of past behavior.
 Attitudes--
Knowledge and positive and negative feelings about an object or activity-maybe
tangible or intangible, living or non- living.....Drive perceptions Individual learns
attitudes through experience and interaction with other people.
Consumer attitudes toward a firm and its products greatly influence the success or
failure of the firm's marketing strategy.
Attitudes and attitude change are influenced by consumers personality and
lifestyle.
Consumers screen information that conflicts with their attitudes. Distort
information to make it consistent and selectively retain information that reinforces our
attitudes. IE brand loyalty.
There is a difference between attitude and intention to buy (ability to buy).
 Personality--
All the internal traits and behaviors that make a person unique, uniqueness arrives
from a person's heredity and personal experience. Examples include:
 Work holism
 Compulsiveness
 Self confidence
 Friendliness
 Adaptability
 Ambitiousness
 Dogmatism
 Authoritarianism
 Introversion
 Extroversion
 Aggressiveness
 Competitiveness.

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Traits effect the way people behave. Marketers try to match the store image to the
perceived image of their customers.
There is a weak association between personality and Buying Behavior; this may be due to
unreliable measures.
 Lifestyles--
Recent US trends in lifestyles are a shift towards personal independence and
individualism and a preference for a healthy, natural lifestyle. Lifestyles are the
consistent patterns people follow in their lives.

3. Social Factors
Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.

 Opinion leaders--
Spokespeople etc. Marketers try to attract opinion leaders...they actually use (p y)
spokespeople to market their products. Michael Jordon (Nike, McDonalds, Gatorade etc.)
Can be risky...Michael Jackson...OJ Simpson...Chevy Chase
 Roles and Family Influences--
Role...things you should do based on the expectations of you from your position within a
group.
People have many roles. Husband, father, employer/ee. Individuals role are
continuing to change therefore marketers must continue to update information.
Family is the most basic group a person belongs to. Marketers must understand:
 that many family decisions are made by the family unit
 consumer behavior starts in the family unit
 family roles and preferences are the model for children's future family (can
reject/alter/etc)
 family buying decisions are a mixture of family interactions and individual
decision making
 Family acts an interpreter of social and cultural values for the individual.
The Family life cycle: families go through stages; each stage creates different consumer
demands:
 Bachelor stage.

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 newly married, young, no children...me
 full nest I, youngest child under 6
 full nest II, youngest child 6 or over
 full nest III, older married couples with dependant children
 empty nest I, older married couples with no children living with them, head in
labor force
 empty nest II, older married couples, no children living at home, head retired
 solitary survivor, in labor force
 solitary survivor, retired
 Modernized life cycle includes divorced and no children.

 Reference Groups--
Individual identifies with the group to the extent that he takes on many of the
values, attitudes or behaviors of the group members.
Families, friends, sororities, civic and professional organizations. Any group that has a
positive or negative influence on a persons attitude and behavior.
Membership groups (belong to)
Affinity marketing is focused on the desires of consumers that belong to reference
groups. Marketers get the groups to approve the product and communicate that approval
to its members. Credit Cards etc.
Aspiration groups (want to belong to)
Disassociate groups (do not want to belong to)
 Social Class—
An open group of individuals who have similar social rank. US is not a classless
society. US criteria; occupation, education, income, wealth, race, ethnic groups and
possessions.
Social class influences many aspects of our lives. IE upper middle class Americans prefer
luxury cars Mercedes.
 Upper Americans-upper-upper class, .3%, inherited wealth, aristocratic names.
 Lower-upper class, 1.2%, newer social elite, from current professionals and
corporate elite
 Upper-middle class, 12.5%, college graduates, managers and professionals

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 Middle Americans-middle class, 32%, average pay white collar workers and blue
collar friends
 Working class, 38%, average pay blue collar workers
 Lower Americans-lower class, 9%, working, not on welfare
 Lower-lower class, 7%, on welfare
Social class determines to some extent, the types, quality, quantity of products that a person
buys or uses. Lower class people tend to stay close to home when shopping, do not engage in
much pre-purchase information gathering. Stores project definite class images. Family, reference
groups and social classes are all social influences on consumer behavior. All operate within a
larger culture.

 Culture and Sub-culture--


Culture refers to the set of values, ideas, and attitudes that are accepted by a
homogenous group of people and transmitted to the next generation.
Culture also determines what is acceptable with product advertising. Culture determines
what people wear, eat, reside and travel. Cultural values in the US are good health,
education, individualism and freedom. In American culture time scarcity is a growing
problem. IE change in meals. Big impact on international marketing.

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Chapter 5
Data Analysis and
Interpretation

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1) Table showing present type of Residential Ownership.

Type No. of Respondents % of Respondents

Ownership 46 74%

On Rental 10 16%

Investment 06 10%

Total 62 100%

Residential Ownership

0%
10% Ownership
16% Rental
Investment
74%

Interpretation- The above table shows that, maximum no. of respondents stays on ownership
basis i.e. 74%, 16% of the respondents are on rental basis and 10% of respondents are in
investment category.

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2) Table Showing Factors taken into consideration while purchasing Residential

properties.

Factors No. of Respondents % of

Respondents

Location 15 24%

Price 15 24%

Transportation Facility 10 16%

Accessibility to Market 10 16%

Others 12 20%

Total 62 100%

Perception
Price
20% 24% Location
Transportation
16%
24% Market
16%
Others

The above table shows that maximum no. of respondents i.e. 24% consider Price, whereas 24%
consider location while 16% consider transportation facility whereas 20% consider other factors
like Vastushastras, availability of temple, masjit etc. and 16% of respondents consider
accessibility to market as important factor for purchasing residential properties.

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3) Table showing sources of Information for respondents while Property Purchasing.

Sources No. of Respondents % of Respondents

Hoardings 10 16%

Newspapers 15 24%

Agents/Consultants 20 32%

Relatives/Friends 10 16%

Others 07 11%

Total 62 100%

Advertisement

Hoardings
11% 16%
Newspaper
16%
Agents
24%
Relatives
33%
Others

Above table shows that 16% of respondents get their information from Agents /Consultants,
where as 16% of respondents get information from Relatives/ Friends while 32% of respondents
get information from Newspapers whereas 16% of respondents get information from Hoardings
and 7% of respondents get their information through Other Sources like Local News
Channel,Radio,Internet etc. for Purchasing Residential Properties.

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4) Table showing type of Residential property respondents would like Purchase.

Type No. of Respondents % of Respondents

3 BHK Flat 30 60%

4 BHK Flat 20 30%

Garden Flat 12 10%

Total 62 100%

Choices

10%
3 BHK
30% 4 BHK
60%
Garden Flat

Above table shows that maximum no. of respondents 60% respondents prefer 3 BHK Flat, while
30% respondents prefer 4 BHK Flat whereas 10% prefer Garden flats.

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5) Table showing mode of purchases of residential property preferred by

respondents.

Mode No. of Respondents % of Respondents

Home Loans 40 57%

Self-funding 15 33%

Installments 07 10%

Total 62 100%

Funding

10% Home loans

33% Self-funding
57%
Installment

Above table shows that maximum no. of respondent’s i.e.57% would prefer Home Loans
whereas 33% of respondents would prefer Self-funding while 10% of respondents would prefer
Installments.

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6) Table showing duration of the year when normally respondents like to purchases

residential properties.

Month No. of Respondents % of Respondents

Jan to Apr 25 35%

May to Aug 8 13%

Sept to Dec 29 52%

Total 62 100%

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.

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7) Table showing areas preferred to purchase residential properties.

Area No. of Respondents % of Respondents

Peth Area 8 11%

Kalyani Nagar 5 !9 %

Hadapsar 17 23%

Kondwa 21 26%

Katraj 04 07%

Baner 02 05%

Pashan 5 09%

Total 62 100%

Preffered area for Property Purchase

9% 11% Peth Area


5%
7% Kalyani Nagar
19%
Hadapsar
Kondwa
Katraj
26%
23% Baner
Pashan

The above table shows that maximum no. of respondents i..e.26% prefer Kondwa area, whereas
23% of respondents preferred Hadapsar area, while 19% of respondents prefer Kalyani Nagar
area, whereas 09% of respondents preferred Pashan area while 07% of respondents preferred
Katraj area and 05% of respondents preferred Baner area for purchasing residential properties.

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CHAPTER 6
FINDINGS

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FINDINGS

During my project in KOLTE –PATIL DEVELOPERS PVT LTD.

Various observation are mentioned under:

1.Maximum no. of respondent stays on ownership basis i.e. 74%

2. While purchasing residential properties price & location is the main factor taken into
consideration i.e 24%

3.While purchasing residential property main source of information is consultants & Agents i.e
32%

4.60% of people prefer to purchase 3BHK flat.

5.Most of respondents prefer Home Loans while purchasing residential properties i.e 57%

6.Normally respondents prefer to purchase properties during Sept-Dec.i.e 52%

7. 26% of respondents prefer kondwa area while purchasing residential properties.

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Chapter 7
Conclusion

51
CONCLUSION
It can be concluded that most of the customers purchase flats for residence purpose. Some also
purchase for investment reasons. They prefer taking loans from public sector banks. After they
realize the need for a flat, information is collected, internet being the main source of information.
The parameter which is considered most important is the size of the flat. While short listing the
location, proximity to work is the main reason considered followed by connectivity & rates.
Customers expect various amenities like Swimming pool & Club house in amenities followed by
Pathways, Some of the respondents wanted Amphitheater followed by guest parking. Some
customers don’t expect amenities as they purchase flats for investment purpose.
Builders and Real Estate companies should therefore make use of the Internet to reach the
customers and advertise their products. They should tie up with Public sector banks which are
preferred by customers. They should also focus on amenities desired by customers and offer
these to the customers.

 It can be seen that Kolte-Patil developer is most popular brand.

 Quality is considering lot while purchasing residential property.

 The Kolte-Patil developer stands first among three top companies in Pune city.

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

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

because of close substitute.

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

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

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Chapter 8
Suggestions

53
SUGGESTIONS

1. Kolte-patil developer should try to tap other market potentials, such as Nasik, Kholapur,
Surat Ahmedabad and 2nd tire cities.

2. Kolte-patil developers should try to decrease Five star amenities with a view to cut down the
property prices and there by attracting the middle class.

3. Kolte-patil developers should actively participate and organize property exhibition, trade
shows, hoardings, etc. to create awareness in the market.

4. Kolte-patil developers should organize annual customer meet to appreciate those customer
who have been with them and awarded them.

5. Kolte pail developers should take mass media such as television more precisely cable media
to target local customers.

6. Kolte-patil develpoers should also concentrate more on interior decoration to compete with
other competitors.

7. Kolte-patil developers should reduce the maintenance charges.

8. Kolte-patil developers should also concentrate on CRM activities, such as loyalty to create
strong good will and gain new customer.

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Chapter 9
Annexure

55
ANNEXURE

Questionnaire

“A STUDY ON CONSUMER BUYING BEHAVIOUR TOWARDS RESIDENTINAL


PROPERTIES IN PUNE CITY”
WITH SPECIAL REFERENCE TO KOLTE PATIL DEVELOPERS

Personal Details

NAME:-
OCCUPATION :-
GENDER:-
FAMILY SIZE :-
CONTACT :
E-MAIL:-
NO. OF EARNING MEMBERS:-
ANNUAL INCOME:
1. What is your present type of property?
 Ownership On rental  Investment

2. Which factor do you take in to consideration while purchasing residential properties? (Choose
any one)
 Location  Price
 Transportation facility  Accessibility to market
 Others ___________________________________________

3. Indicate the source of information that you consider for property purchasing? (choose any
one)
 Hoarding  Newspapers
 Agent  Relatives
 Others

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4. What type of residential property you would like to purchases?
 3BHK Flat  4 BHK Flat
 Garden Flats

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


 Home Loans  Self-Funding
 Installments

6. During which duration of the year normally would you like to purchase residential properties?
 Jan. to Apr.  May to Aug.  Sep. to Dec.

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


 Peth Area  Hadapsar  Pashan  Baner
 Kalyani nagar Katraj  Kondwa

__________
Signature

57
Chapter 10
Bibliography

58
BIBLIOGRAPHY

Books & magazine


1. Sundrani Deepak, ‘Consumer Behaviour in Real Estate, in India”, 21st Annual
European Real Estate Society Conference. Bucharest, Romania, (2014)

2.Perception, Randolph Blake, Grimly, J.M. Lomis, 1974.

3.Philip Kotler, Markeitng Management- A Sout Asian Perspective, 13th Edition, 1994.

Research methodology book–


1. Connie, S. and Fernando, B.A. (2001) ‘Motivation and perception factors influence
buying
home behaviour in Dilly, East Timor’, PRRES 7th Annual Conference
2. Howard, J. and Sheth, J.N. (1969) The Theory of Buyer Behaviour. New York, NY:
Wiley.
3. Hoyer, W.D. and MacInnis, D.J. (1997) Consumer Behaviour. Boston: Houghton
Mifflin,
ISBN 0395665922.

Websites
https://www.magicbricks.com/property-agent-details/broker-MultiBHK-in-Pune-
agentid-4d4237313832383639
http://www.koltepatil.com/

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