Apartment Purchase Decision Variables in Real Estate Companies: Sales Teams Perspective in Addis Ababa, Ethiopia

Neftalem Kebede Zinabu

doi:10.7176/jmcr/79-02

Abstract

This study intended to assess factors affecting apartment purchase decision of consumers with respect to real estate sales team perspective in Addis Ababa using four major factors that would affect the purchase decision of a consumer viz., price, location, quality of apartment and corporate image. Accordingly, the study used both descriptive and explanatory research design. Self-administered structured questionnaires were used to collect primary data from a total sample size of 50 sales experts or sales/marketing manager of real estate companies who are drawn using convenient sampling. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. Accordingly, it is found out that there is a strong significant relationship between purchase decision factors and purchase decision with Pearson correlation coefficient of 0.699 (r=0. 699) . In addition, purchase decision factors have an influence on purchase decision in which 52.20% of the variation in purchase decision is explained by the variation in price, location, quality of apartment and corporate image. Furthermore, corporate image is the most influencing apartment purchase decision factor followed by quality of apartment. Thus, it is recommended that real estate companies may give top priority in building their corporate image and developing quality apartments as these two factors are highly influencing real estate customers purchase decision. Keywords: Real estate, Apartment, Purchase decision, purchase decision factors DOI: 10.7176/JMCR/79-02 Publication date: May 31 st 2021

Highlights

It has become important for a managers in real estate companies to clearly understand and forecast how different types of customers act when purchasing different apartments to meet their needs in today's rapidly evolving and competitive economic landscape
There 156 active real estate companies found in Addis Ababa which are involved in building and selling of Apartments, Villas and commercial centers
The result obtained from this study revealed that price of the apartment with group mean value of 3.472 and influential on purchase decision which is similar to a study conducted in India that found price influential on purchase decision with mean value of 4.00(Manoj and Nasar, 2014)

Summary

Introduction

It has become important for a managers in real estate companies to clearly understand and forecast how different types of customers act when purchasing different apartments to meet their needs in today's rapidly evolving and competitive economic landscape. The study of consumer behavior to understand how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants is important. Companies should identify key factors that influence consumer purchase decision in order better satisfy them whether in service or goods selling (Kotler and Keller, 2012). Apartment purchase requires careful study of different factors like purchasing any goods and service. According to Nasar & Manoj (2014), residential apartment buyers expect different services and amenities in the residential apartments that they want to purchase. On the other side Rachmawati et al (2019) found quality, price, location, promotion and corporate image as the major influencing factors on consumer’s purchase decision

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Conclusion