Dual process of dual motives in real estate market Indonesia

Anastasia, Njo; Narsa, I Made; Irwanto, Andry

doi:10.1108/ijhma-05-2017-0049

Cited by 12 publications

(9 citation statements)

References 73 publications

(68 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Such events lead the first-home buyers to be more rational than the regular property investors, whose investment stimulus is stronger than their actual need because they have the income to spare (Goss, 2010; Monico, 2013 and Hood, 1999). Anastasia et al (2018) supported such theories and discussed how younger individuals or families in Indonesia tend to be more rational in decision-making.…”

Section: Literature Reviewmentioning

confidence: 95%

First-home buyers and herding behavior in Surabaya, Indonesia

Susanto

Anastasia

2019

IJHMA

Self Cite

View full text Add to dashboard Cite

Purpose This study aims to determine the causality of herding which was traced down to social and normative influences from first-home buyers represented by undergraduate students. Design/methodology/approach The Perception Alignment Hypothesis was used in this experimental research, and was conducted on a sample of 125 undergraduates studying finance representing first-home buyers. The experiment provides the subjects property brochures in Surabaya to appraise a value that they see fit for purchase. The subjects were given both social- and normative-induced treatments separately using information cascade, and their valuation shifts were recorded. Their valuations were then divided into three sections under the treatment groups, consisting of initial, “social’ and “normative’ valuations. Findings In contrast to previous findings, the results showed that first-home buyers succumbed to both social and normative influences, causing them to herd. Further analysis of the credibility of information was conducted and it showed that the undergraduates were only prone to social influence, whereas other aspects regarding normative influences must be further researched. Practical implications The decline of homeownership on a global scale is concerning, especially when 60% of the market represents young adults under the age of 35. This implies that both the government and property developers may need to enact strict measures to regulate property purchases. Originality/value This is the first experimental study on herding of Surabaya, Indonesia, mainly focusing on human behavior and information cascade. Thus, this study could be a viable reflection to future policies in Indonesia being made to answer actual demands in the residential market.

show abstract

Section: Literature Reviewmentioning

confidence: 95%

First-home buyers and herding behavior in Surabaya, Indonesia

Susanto

Anastasia

2019

IJHMA

Self Cite

View full text Add to dashboard Cite

show abstract

“…Kitchen renovations are carried out as activities in the service room increase. Furthermore, the addition of utilization as a place of business aims to increase family income, by renting the front yard of the house or making a home-based businessat terraces Njo et al [13]. Third, families with children make changes to the more varied physical conditions of the house, namely kitchen renovations, addition of the number of bedrooms, increase in the number of bathrooms, and changes in siteplans.…”

Section: Characteristic Of Physical Housing Improvement Based On Famimentioning

confidence: 99%

Environmental Consideration For Physical Housing Improvement In Bukit Kencana Jaya Semarang

Esariti

Putri

2020

E3S Web Conf.

View full text Add to dashboard Cite

So far, economic factors dominate the reasons for doing physical renovation activities of the houses. This means that the more stable the condition of the household economy, the physical improvement activities will be more likely to be conducted. This study investigates how the physical changes of the house are carried out at each stage of the family life cycle in Bukit Kencana Jaya Semarang. The four stages in family life cycle are single families, families without children, families with children and elderly families. Furthermore, this study also analyse what are the environmental considerations that influence the physical changes made. The method used is survey research, with the distribution of questionnaires to 60 respondents in 5 different types of houses. This research confirms that house physical change activities are household sustainability strategies to improve quality of life and achieve well-being. Proximity to environment facilities and location attachment to neighbourhood became the main environmental considerations findings. This research output supports the objective of Sustainable Development Goals number 3 about health and well- being, and Sustainable Development Goals number 11 on sustainable communities.

show abstract

“…Especially in situations with a high degree of complexity, choices, risk and uncertainty, done in high-stress and high time-pressure (Gigerenzer & Gaissmaier, 2011;Tversky & Kahneman, 1973;Tversky & Kahneman, 1974). Njo, Made-Narsa, & Irwanto, (2017) states that buyers with consumption motive tend to be rational compared to those with investment motive, which tend to be heuristic. Bias is the result of the rule of thumb, heuristic, and mental 'shortcut' that shortens information processing.…”

Section: Dual Process In Property Purchasementioning

confidence: 99%

“…This study uses said instrument towards buyers and property investors to measure rational cognitive and intuitive styles (dual process) while completing transactions of house purchasing in Indonesia. This study is an extension of Njo, Made-Narsa, & Irwanto (2017) study involving dual motives and dual process. The aim of this study is to empirically test the differences dual process in buyers and investors regarding decisionmaking in housing purchase.…”

Section: Introductionmentioning

confidence: 99%

Dual Process Difference in Families Regarding Home Buying Decision

Anastasia

Narsa

2018

JEBS

View full text Add to dashboard Cite

The system of thought between rational systems and experience systems is inherent in each individual and produces different decisions. Thinking using logic tends to be used by almost every individual, but cognitive limitations make the individual simplify complex thinking to make practical decisions. This study aims to examine more in dual process on decision home buyers according to dual motives based on demographics and life cycle. Data collection was done by distributing questionnaires to selective home buyers of 235 buyers. Survey instruments include demographic and family life cycle variables. The dual process measurements using Rational-Experiential Inventory (REI-40) are designed to test individual preferences for two decision making, such as cognitive styles (rationality) and intuition (experience) using Likert scales. The results show that dual process cannot be distinguished based on dual motives. However, demographic variables such as gender, age, education, and family life cycle showed the difference in the dual process.

show abstract

Dual process of dual motives in real estate market Indonesia

Cited by 12 publications

References 73 publications

First-home buyers and herding behavior in Surabaya, Indonesia

First-home buyers and herding behavior in Surabaya, Indonesia

Environmental Consideration For Physical Housing Improvement In Bukit Kencana Jaya Semarang

Dual Process Difference in Families Regarding Home Buying Decision

Contact Info

Product

Resources

About