THE RELATIONSHIP BETWEEN THE FACTORS TO PURCHASING DECISION: EVIDENCE STUDY ON PROPERTY BUSINESS

Abstract

The property business plays a significant role in economic growth and encourages developing countries with a large population. This study examines various factors that influence purchasing decisions in property or real estate businesses in emerging countries. The theoretical basis of a purchasing decision can be mitigated and controlled by some factors like reliance, product quality, legality, and brand image. To analyze the relationship within those variables, we used the structural equation modeling technique with the LISREL program. The primary data was employed, which was analyzed qualitatively as the main reference and collected by distributing questionnaires, then examined by the quantitative method. The results are reliance, product quality, and legality, and they have a significant impact on purchasing decisions. However, brand image has no significant effect on purchasing decisions. The research is important for several sides, including customers, companies, and policymakers who are interested in addressing property business performance and preserving mitigation strategies. The study highlighted that purchasing decisions are not only related to specific factors, namely reliance, quality of product, legality, and brand image. That’s why this study has limitations.