Factors that Influence Buyer Decision for Property

Factors that ferment Buyer Decision for PropertyCHAPTER 1 INTRODUCTION1.0 foundation garment of take aimNowadays, the demands for stomachs increase e real year. In Malaysia, trapping demands include entirely sorts of signboards which argon first- figure honours degree be houses, forte monetary value houses and likewise proud cost houses. All the demands for the houses come from either kind of income sorts establish on their income. The release of the houses sometimes over than demands that makes the houses abundant.More ch altogetherenges of competitive grocery store in these decades because the developers launching the admit trade increasing. At the selfsame(prenominal) time, the local and national sparing makes the developers to aw ar and pay attention to the bargain forrs for their fatalitys, merriment and p citations. When the developers meet the v closingees posits, satisfaction and preferences in delivering the product, this will avoid in abundant of the retention.The thesis is close the findings of the step for that casts the factors that tempt the vendees towards steal the residential situation. The procureers that involved in this thesis argon chosen from the great deal that attend newborn launched project and similarly the purchaseer that al heary bought a house. The findings overly come from the observation of the subject field flying field and as well the market.All the factors that invite purchasers in end- reservation will be outlined and the preferences and satisfaction of the emptors also taking into account. The outcome of this regard will serve to increase the quality of the dimension towards the increase of new residential attri scarcee in the market.1.1 play down of hearThe instruct covers the buyers and also the residential topographic point in Kuching, Sarawak. The demand for houses increased in Kuching caused by the increment of the universe of discourse in this town. The study t erminate also be the guide towards preparing the residential retention ground on the preferences and the satisfaction of the buyers. If the residential attribute animal(prenominal) body base on the preferences and satisfaction of the buyer, the market will be alive(p) and the hang on of the houses will meet the requirements of the buyers through this study.The factors that maybe included that tempt the buyers in finding making ar design, posture, developers reputation, facilities within neighborhood, natural rubber and security mea confident(predicate) and the determine. The factors that influence the buyer in decision making toward the residential place of individu altogethery respective buyer is several(predicate), so through this study, the factors chiffonier be sterilized.1.3 Problem StatementThis dissertation is to know what atomic number 18 the factors that influence buyer in decision-making for residential property. It is to assure that the preferences an d satisfaction of the buyers could be determined.1.4 ObjectivesThere argon two main objectives for this question. They be as followsTo define the factors that influence buyers in decision making for residential propertyTo measure the level of grandeur of factors that influence buyers in decision-making make.1.5 Scope of StudyThe scope of this study is generally in Kuching which is find in Sarawak. The study will focus on residential property in Kuching Sarawak. The residential properties which are the come toed property that involve in this study include the medium cost housing and gritty cost housing. The landed property that being focused are wholeness storey ter expedite house, double storey terrace house, iodine storey semi- innocent house, double storey semi-detached house, single storey detached house and double storey detached house.It also concentrated on the buyers in three groups of age between 25 years rare to 30 years old, 30 years old to 35 years old and 35 years and above. The three groups are chosen because of the age of 25 years to 30 years is the best age to own the house and the age of 35years and above is the age which they essential own the house for living. alike that, this study also focuses on the group of income in read to determine the level of affordability in acquire the property. In this study, the residential property that involves is medium cost housing and high cost housing. So, the income group should be determined.1.6 meaning of StudyThe significance of this study is to know the factors that influence the buyers in decision making of residential property in station to make sure that the supply of the property will fulfill the requirement of the buyers in purchase the property. It also strategic to know the preferences of the buyers so that no housing make blocks in the nation would be abundant caused by not fulfill their satisfaction.In addition, this study also can be the guidelines and also preparation f or the developers in order to build and supply the property to the market and at the same time, the government can take action to avoid the housing education from being abundant. The factors that influence buyers in decision making are also crucial because it can help to determine the design, the location, the price and also the facilities that unavoidable in the development.1.7 Methodology of StudyIn this study, two method actings used in order to find the information to lead through the completion of this thesis. The methods are split into two which is primary info and second-string data.For primary data, the method is by distributing the questionnaires. In distributing the questionnaires, the person to answer the survey are the new buyers, the recent residents and also the visitors at the new launched project and housing sight.For secondary data, the method are by manual which come from reading the reference books, journals, papers and also the magazines , by statistics da ta which can be touch sensation at the department of Statistics of Jabatan Perangkaan Malaysia and Economic Planning Unit and also the data collection from online through websites related to the topic and also the research papers. finished reading, much information can be gathered unitedly for a correct and successful outcome in this study. All the materials to be read will be find at main library of Universiti Malaya, library Faculty of Built Environment, National Library, Pustaka Negeri Sarawak and also Perpustakaan Sultanah Zanariah Universiti Teknologi Malaysia.1.8 Organization of StudyCHAPTER 1 IntroductionIn chapter 1, the gateway includes the background of the study that will be discussed in this thesis. It also fancys the problem statement that also can be the hypothesis of this study. The objectives of this study also include in this chapter. Besides that, the introduction also discussed the scope of the study, the significance of study and also the methodology of t he study.CHAPTER 2 Literature ReviewLiterature review consists of the dodging of the thesis in order to gain and gather the data of information that are essential in this study. All the data from the articles in the property magazines and books, the journals related to the housing demands and property buyers, the research papers around the related topics, books that include all the information closely buying a property and also residential property, magazines that channelises the factors influence the buyers in decision making of residential property.CHAPTER 3 Overview the Study line of businessFor this chapter, the overview of the study area will consists of the socio-economy in Kuching which is the location of this study. The socio-economy awaits on the population of slew in Kuching, the household income, the group of age, the changes in physical environment and new(prenominal)s sociostinting issues.CHAPTER 4 Research Analysis and FindingsThe research depth psychology is the analysis of this study from all the information and data that gathered together in order to get the outcome. All the analysis and the findings from this study determines into graphs, charts, tables and also pictures to make this study clear.CHAPTER 5 Research Outcomes and closing curtainIn this chapter, all the finding and research analysis will be summarized and the conclusion of this study will be presented. Either than that, the implication of this study are also discussed and the availability of the problem statement whether it can be used or not.CHAPTER 2 LITERATURE REVIEWCHAPTER 2LITERATURE REVIEW2.1 IntroductionIn decision making for residential property, there are several(prenominal) factors that influence the buyers. The factors are divided into categories. The categories are buyers taste and preferences, demographic factors, sparing factors and merchandising strategy.This thesis will focus on residential property which is the landed property. The landed property con sists of property for high income group and bosom income group which are terrace house, semi-detached house and detached house. The property categorised according to the supply and demand in the market and also the prices.The location for this housing study will focus in Kuching, Sarawak that use up a large population due to Sarawak, the biggest state in Malaysia which start out the racial including Malay, Chinese, Indian and new(prenominal)s. The reason to have this location as the case study is because of the big location with multiracial and can explore the demand and the preferences of the consumers in buying the residential property.2.2 Definition2.2.1 Decision- MakingDecision-making is an outcome of mental processes. each decision making process produces a finalchoice wherebythe output can be an action or an opinion of choice which is a continuous process integrated in the interaction with the environment concerned with the logic of decision making and rationality with the invariant choice.Decision making made by the buyer, depends on individuals charter, preferences, satisfaction and also their requirement in order to recognise the perfect and chastise choice in buying the property. The decision making influence by various factors.In this study, the objective is to determine the factors that influence buyers in decision making of residential properties. The decision making of every people related to the factors and the way of the people think in order to fulfill the quest and satisfaction through the requirement of the property.2.2.2 Consumer (Buyer)The product which is goods and service that consumes by a person and has the ability to choose between the disparate suppliers and products. In the other hand, consumer or buyer is a party that requires or agrees to own, acquire and have the benefit in usage for the work that in exchange for bills or other rentation to a lower plant a contract or agreement of sale.The consumer or buyer in th is study just focuses on high group income and middle group income. It is because to look towards the choices or need of this income group in their decision making for buying residential property. For lower income group, it just only lead to the affordability in their decision making, so they are not chosen as the respondent in context of buyer for this study.2.2.3 Consumer BehaviorConsumer behavior examines not only consumers action, but also the reasons for those behaviors. On a macro level, marketers are interested in demographic shifts as well as societys values, beliefs and practices that affect how consumers interact with the marketplace. Thus, concepts are drawn from sociology and psychology figure prominently in the study of consumer behavior. (Karen M Gibler and Susan L Nelson, 2003, p.63-64)Consumer behavior is the study of how people behave when obtaining, using, and disposing of products and services or when, why, how, where and what people do or do not to buyproducts.I t mixes ofpsychology, kind,personal andcultural. It is attempting to understand the buyer decision-making process for both, individually and in groups. The characteristic of individual consumers such asdemographicsand behavioral variables which is in an attempt to understand peoples wants. It also assesses influences on theconsumerfrom groups such as family, friends, reference groups, and society in general.Customer behavior study is ground on consumer buying behavior, with the client playing the three distinct office staffs of drug user, remunerator and buyer. The relationship marketing is being the influential of asset for customer behavior analysis as it become a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance to the customer or buyer. A greater importance is also placed on consumer retention, customer relationship management, personalization, customization and one-to-one marketing. Social functions can be cate gorized into social choice and welfare functions.Consumer behavior also can be define as the process and activities which the people engage in when searching for, selecting, purchasing, using, evaluating, and disposing of products and services to accomplish their involve and desires. For cultural, the people will act based on the cultural that commonly be the influence in certain places and sur move. For social, the people will think and act more than to socially action that also can be positive and negative. In physiological aspect, it is more to persuasion and the personal behavior leads to the decision making. People maybe influence by the way they thinking of.2.2.4 MarketingDefinition of marketing by lend of Marketing is the management function which organizes and directs all those business activities involved in assessing and converting customer purchasing power into effective demand for a ad hoc production or service to the final customer or user so as to achieve the p rofit target or other objective set by the company.Marketing is a combination of marketing concept of marketing concept, marketing function and the operational implementation of these functions in the context of the concept. The marketing concept can be most only when explained as a belief that the organization can function in the best interests of its customer and its self where a balance is achieved between the need of both of these parties. (Trustrum, LeslieBernard,1989, p.48).Marketing plan is the marketing strategy by the developer to make do their property to the people so that people will attract to buy the property from them. The advantages of marketing strategy will diverse marketing activities that can be better co-ordinate and can avoid or digest to a minimum crisis management such as unsold unit and etc. The basis of marketing strategy is 4Ps consist of Product, Price, Place and Promotion.2.2.5 DeveloperThe coordinators of the activities that converting ideas on the paper to the reality by building the realproperty that encompassing activities range from the renovationand re-leaseof existingbuildings to the purchase of rawlandand the sale of improved parcels to others.Developers usually take the greatestriskin the creation or renovation of real estate and receive the greatest rewards such as the money and also acknowledgement from the purchaser or respective buyer that satisfy with their product. Usually, developers purchase a tract of land then determine themarketing of the property. by and by that, they developing the building program and design, obtaining the necessary public approval and financing, building the structure, leasing, managing, and ultimately change the property.Developers work with many different counter split along each step of this process including the architects, planners, engineers, surveyors, inspectors, contractors, property agents and etc. The developers build the house to supply to the market and sell to the buyer b ased on the demand in the market. The demand depends on the needs of the consumer, the market trend and also the economic trends.2.2.6 ResidentialResidential property is the property in the residential area that includes the single family housing, multi-family residential or mobile house. The residential property is under the zoning of residential and may permit high density land use or low density land use.Residential development is real estate development for the purpose of residential. The developments are when the land divided into lots with the house constructed on each piece of subdivided land.2.2.6.1 Medium follow trappingMedium cost housing is the property that sell in the median price that can be purchase by medium income group and high income group. The medium cost housing in this research is the single storey terrace house, double storey terrace house, single storey semi-detached house and double storey semi-detached house.2.2.6.2 High Cost HousingHigh cost housing is t he property that the price is high and usually for the high income group of people. The high cost housing is selling with the high price that the price influences by the material, the design, the location and the size or area. The people that usually buy the high cost property is the people that need the high satisfaction and also all about luxury. The high cost housing could be the detached house and also high end property. In this research, the high cost housing is the single storey detached house and double storey detached house.2.3 FactorsFactors divided into four categories which are demographics factor, economics factor, buyers taste and preferences and marketing strategy. The factors distribute in the categories so that it is wanton to determine what, how, when and etc. In addition, the factors that influence buyers in decision of residential property can be determining by distributed the factors as above.For demographics factor, it includes the age, social class and race or ethnicity. Age of the buyer also cardinal that may influence them in decision making because it may show that what fictional character of residential property they want that can give them satisfaction or needs for the requirement of the property. For social class in this study, it consists of high income group and middle income group because it is easy to know what they want to consider in the first place buying the property not only based on their financial. The low income group is not included in this study because of the affordability of them to buy the type of property which is just the low cost housing. Race or ethnicity is one of the demographics factor because it also could influence the buyer whether to live in a same location with it own ethnic or race or just mixed with other races and ethnic.For economics factor, it consists of prices, availability of pay and affordability. Prices of the property depends on the type of property, location of the property, the supply and demand of property and also the market trends of current situation. The availability of finance may depend on either the government give or private institutions loan such as bank and etc. The finance also depends on the availability of the bank in releasing the amount of loan and based on the income of buyer. Affordability is the main thing to discuss whereby every people have their own level of affordability.Marketing strategy is also one of the factors in decision making. Marketing strategy has four basis which are price, promotion, place and product. The price can me the measurement to know what is the price that agreed and affordable for the buyer based on the type of property, location and also the market price. The promotions in this marketing strategy consist of the launching of the project and the exhibition also important which is good in order to promote the property to the prospective buyer. Such promotion can attract more buyers and give the buyer opportunities to ask about the property and also giving the good image of developer and the product itself. Place is the location where is the property located and it seems very important because in every location, it have its own density and population. few of the buyer wants the location either the high density or low density of population and some of the buyer wants to buy the property located in the city bosom or otherwise. For the product, it depends on whether it is high class property or medium class property for high income group and middle income group. Depending on the class of property, the marketing strategy should be based on the focus group that will buy the property. So, the developer has the main role in the development to plan a good marketing strategy in order to have the successful project by selling 100% of the units.Buyers taste and preferences is the buyer needs and satisfaction in order to fulfill their taste and comfortless. The buyer needs and satisfaction is different. a gree to Abraham Maslow (1954), fullty is one of the needs of human. The safety includes the security of family, health and property. So, the people needs the property for secure and health whereby every human being need shelter to lives. For satisfaction, it is more towards the luxury, taste and comfort that will be different depending on the person. Preferencesis a concept that have been used in thesocial sciences, oddly economics that assumes a real or imagined choice between alternatives and the scuttle of rank ordering of these alternatives, based onhappiness, satisfaction,gratification, enjoyment and theutilitythey provide. More generally, it can be seen as a source ofmotivation. In cognitive sciences, individual preferences alter choice of objectives or goals.2.4 Factors Might Be Influence the BuyerFrom the factors above, the factors faculty be influence the buyer in decision making for the residential property are the design, location, developers reputation, facilities w ithin neighborhood, safety and security and the price.The residential property has several of design nowadays such as contemporary design, new-made design or traditional design. All the design chooses by the buyers to buy the residential property. So, the design might be one of the factors that influence buyer in decision-making. The location also might be the factors that influence the buyer in decision making. The location might be choose by the buyer are in the city centre, near the city centre and out of the city. The location that the buyer wants to live is the factors might be influence them in decision making.The developers reputation might be the factor that influences buyers because it is all about quality and confidence to the buyer to buy the house. The reputation of the developer could show the quality of the house and build the confidence to the buyer in buying the property from them. The safety and security in residential area is important because nowadays the crimina l cases highly increased and made people more aware about the security for the safety living. The people trust that if in the area have a good security and safety, it would be safe for living and it might be one of the factor that influence buyer.The price is based on the design, location and also the market trends. The price that is valid based on the area or size, design location would be the factors that influence buyer in decision-making. So, the factors might be influence the buyer will be determined in the questionnaire and the level of interest would be defined.2.5 Buyers Decision- Making ProcessBuyers decision vary an importance and complexity, thus, it is important to crystallise them to be understand the characteristics, the products, the marketing strategy implications on each type of purchase behavior.2.7 opening of NeedsMaslows theory of needsFigure 2.5 Maslows Theory of NeedsThe safety level includes the security of the body, employment, resources, morality, the fam ily, health and property. In this research, the important part of the safety is the shelter whereby its a need for the family to live with halcyon and healthy living in a property.So the buyers have the right in the need for a property that they want to buy and before make the decision, they need to know what is the factors that influence them in buying the property.2.8 ConclusionFor this literature review, the discussion more on the definition of decision making, consumer, developer, the marketing and also factors that lead to the factors that influence buyers in decision-making.All the category of factors based on the buyer itself and also the market trends that supply the property. The developer also have to take note that not only the demand of buyer need to be fulfill but also the economic and demographic factors must taking into account. In conclusion, the factors that influence buyers in decision making of residential property for this case of study and also the level of int erest of those factors can be determine by the research.CHAPTER 3 OVERVIEW OF THE STUDY AREACHAPTER 3OVERVIEW OF THE STUDY AREA3.0 IntroductionThis chapter attempts to give an overview of the study in Kuching. The issues to be discussed in this chapter are information related to socioeconomic in Kuching.3.1 Background of Study AreaSarawak is one of the state on the island of Borneo which also know as Land of the Hornbills. It is situated on the north-west of the island and it is the largest state among all in Malaysia. It is the capital of Sarawak as it is the largest city on the island of Borneo and also the stern largest city in Malaysia. Sarawak divided into eleven administrative divisions which are Kuching voice, Samarahan Division, Sri Aman Division, Betong Division, Sarikei Division, Sibu Division, Mukah Division, Kapit Division, Bintulu Division, Miri Division and Limbang Division.Each division divided into regularises which are 33 districts in Sarawak. In Kuching Division , there are soil Of Kuching, Lundu and Bau. The study area of this research is govern of Kuching in Kuching Division. The district covers an area of 1, 863 square kilometres with the population approximately 620 700. The district of Kuching is administered and divided into three local governments which are Kuching North city residence hall, Kuching southwestwardeastward City Council and Padawan Municipal Council.The part under Kuching North City pressure group covering an area of 369.48 square kilometers which is the area north of te Sarawak River, parts of Old Kuching and also the western Central Business District. Meanwhile, the area south of the Sarawak River, eastern Central Business District and towards the southeast China sea is within Kuching South City Council jurisdiction. The rural areas within Kuching District, Batu Kawa, Kota Sentosa and Third Miles are under the jurisdiction of Padawan Municipal Council.DistrictJurisdictionLand Area (square kilometers)KuchingKu ching North City Hall369.48Kuching South City Council61.53Padawan Municipal Council1431.83 enumerate1862.84Table 3.1 Total Area of Kuching DistrictFor further information about the location of Kuching, please refer to the Appendix I.3.2 creationSarawak has the population of about 579, 900 in years 2006.From this survey, it shows that Kuching District has a great housing market which the potential buyers are from the category of 25 years old and above.According to the population census 2006 published by Department of Statistic, Malaysia, the population of Kuching District is as the following-JurisdictionTotalKuching North City Hall133, 600Kuching South City Council143, viosterolPadawan Municipal Council302, 800Total579,900Table 3.2 Population count 2006 in Kuching District(Sources Population Distribution by local anaesthetic Authority Areas and Mukims, Census 2006, Department of Statistics Malaysia.)3.2.1 Projected Population by pagan stem(Sources Population Distribution by Loc al Authority Areas and Mukims, Census 2006, Department of Statistics Malaysia)The majority projected population by ethnic in Kuching District within Kuching Division is Chinese, which is 38% of the whole population and about 220, 400 people. The second ethnic is Malays, 36% and follow by other ethnic groups 16% and Iban 10 %.The projected population by ethnic group and jurisdiction in Kuching for year 2009 is shown in the Table 3.3. The sum up population from the table has shown that majority of residents in Kuching District live under Padawan Municipal Council jurisdiction. Population under Kuching North City Hall is lesser than other jurisdiction although the land area is bigeer in size than Kuching South City Council.JurisdictionTotalMalayChineseIbanOther heathenish groupKuching North City Hall133, 60080, 16026, 72010, 04016, 680Kuching South City Council143, 50040, 80568, 80021, 06012, 835Padawan Municipal Council302, 80087, 799124, 84226, 89063, 269Note 1. Population projecti on based on the 2006 Population Census2. The added total may differ due to rounding(Sources Population Distribution by Local Authority Areas and Mukims, Census 2006, Department of Statistics Malaysia)3.2.2 Projected Population by Age GroupAge GroupKuching North City HallTotal579, 9000-480,5005-960,80010-1452,20015-1954, 90020-2449, 30025-2949, 30030-3443, 50035-3937, 40040-4430, 70045-4929, 60050-5425, 30055-5920, 80060-6416, 90065-6914, 500