Relationship Between Consumer Preferences and Value Propositions: A Study of Residential Product

Rahadi, Raden Aswin; Wiryono, Sudarso Kaderi; Koesrindartoto, Deddy P.; Syamwil, Indra Budiman

doi:10.1016/j.sbspro.2012.08.088

Cited by 19 publications

(13 citation statements)

References 16 publications

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“…However, while there is a large body of research on the housing preferences of consumers themselves (as shown in the literature above), there is very limited research that compares the perception/preferences of consumers (who demand housing) with those of real estate practitioners (who are involved in the supply side). Rahadi et al (2012) stress that studies on developer perceptions in residential products in general are considered rare. Thus, while housing practitioners may suggest they recognise the importance of understanding consumer preferences, empirical research would assist in testing whether the views of the two groups are actually aligned.…”

Section: Consumer Versus Practitioner Opinionmentioning

confidence: 99%

Preferences for housing attributes in Saudi Arabia: A comparison between consumers' and property practitioners' views

Mulliner

Algrnas

2018

Cities

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Due to rapid urbanisation, population growth and limited supply of housing, the housing sector in Saudi Arabia is facing significant challenges. There have been attempts to provide largescale housing projects to combat this issue. However, there are concerns that short-term policies to provide large quantities of housing can result in low-quality units which are underside by consumers. Therefore, understanding consumer preferences with regard to housing is crucially important if housing projects are to be successful in the long term. This paper explores consumer preferences for housing attributes in Saudi Arabia and compares these against the views of property professionals. Data was gathered via quantitative surveys from 752 housing consumers and 101 property practitioners from across Saudi Arabia. Descriptive analysis and the Mann-Whitney U test are used to determine the mean importance of the housing attributes and to compare the findings from each group. The results of the study provide an analysis on the importance of various housing attributes and highlights similarities and disparities in opinions. The analysis found significant differences between consumers' and property practitioners' views on what consumers believe are important housing attributes. Given this lack of alignment, the findings should offer housing providers with a better understanding of consumer preferences in the Saudi Arabia context.

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Section: Consumer Versus Practitioner Opinionmentioning

confidence: 99%

Preferences for housing attributes in Saudi Arabia: A comparison between consumers' and property practitioners' views

Mulliner

Algrnas

2018

Cities

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“…In 2012, the author created a synthesis from literature reviews, discussing the influencing factors affecting housing product price perceived from the real estate developer and residential consumer (Rahadi et al, 2012). The result suggested that, from the residential and real estate developer point of view, there are four major factors influencing the price for housing products: design, accessibility, facilities and developer brand or reputation.…”

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confidence: 99%

Factors influencing the price of housing in Indonesia

Rahadi

Wiryono

Koesrindartoto

et al. 2015

International Journal of Housing Markets and Analysis

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Purpose – This study aims to address the factors or attributes that would influence the price of residential products in Jakarta Metropolitan Region. Design/methodology/approach – In total, 202 respondents from all across Jakarta Metropolitan Region participated in the questionnaire for this study. Demographic questions are categorized into age, gender and preferences for real estate locations. The questionnaire was made based on the author’s previous studies. Of the total respondents, 127 were males and 75 were females with age ranging from 18 to 56 years old. For data analysis, the authors utilized factor analysis, Cronbach’ α test and analysis of correlation to reach the conclusion of this study. Findings – The findings suggested that from the initial three factors groups, there are five new groups that emerge as influencing factors for housing prices. Cronbach’ α score were verified (α = 0.906). Correlation study result suggested that the initial three factors groups produce a significant correlation between each of them, except for the factor of “overall location” and “located near family.” After factor analysis, the research results show that there are two new additional groups of factors that emerge as influences to housing prices. There are significant scores of differences between gender and real estate location preference toward the groups of factors. Research limitations/implications – This study shows how physical qualities, concept and location factors influence the housing price perception of their consumers. The result shows to be relatively reliable and valid. Originality/value – The study is the first to analyze the relationship between the factors for preferences on residential products and housing price in Indonesia. This paper is also intended to be the first to pioneer the study on factors of preferences on residential products in Indonesia. The findings will be useful to develop pricing models for housing product in Indonesia.

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“…The process concentrates on sets of rules that the decision makers should follow [12]. Conventional financial theory is based on the notion that investors act rationally, correctly considering all currently available information in the decision making process [13]. Such "decision makers" are characterised as logically weighing up the respective benefits and costs before deciding.…”

Section: Rational Behaviormentioning

confidence: 99%

“…Recently, there are many studies and findings reveal that the investors' decision is not influenced only by rational and technical fundamentals, but also by emotional or attitude which relate to the uniqueness of the project environment that provide limited and imperfect information relating to the macroeconomics and global situation. These factors can result in biased outcome on project success measurement [13]. By the end of the 1980s, many studies concluded that housing markets are inefficient.…”

Section: Behavioral Financementioning

confidence: 99%

Behavioral Finance as An Alternative Concept in Investor-Related Risk for Residential Projects : A Literature Review

Sutantio

Wiguna

2017

IJPS

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Stakeholder is a very important factor for project success. As part of external and the most influential project stakeholder, investor as a market agent, with embedded needs, preferences and behavior might become critical project risks and should be identified and managed properly as a key project objective. This paper investigates previous studies to examine and to understand the mechanisms of investor's economic behavior as the risk factor and its impact for the development of residential project. Traditional financial theory in the past decades generally emphasizes the rational model in investor's decision-making without involving emotional aspect of behavior. Recently there are many scientists proposed the theory of behavioral finance which combines insight from psychology and sociology into finance and investment with the market fundamental perspective. Based on the review, we conclude that behavioral finance can be considered as an alternative concept in assessing residential project risk especially in economic volatility.

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Relationship Between Consumer Preferences and Value Propositions: A Study of Residential Product

Cited by 19 publications

References 16 publications

Preferences for housing attributes in Saudi Arabia: A comparison between consumers' and property practitioners' views

Preferences for housing attributes in Saudi Arabia: A comparison between consumers' and property practitioners' views

Factors influencing the price of housing in Indonesia

Behavioral Finance as An Alternative Concept in Investor-Related Risk for Residential Projects : A Literature Review

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