Home Purchase Decisions Research Articles

Location and Brand Image Outshine Price in Homebuyer Decisions in Indonesia

General Background: The increasing population in Medan has led to a rising demand for housing, prompting competition among companies to provide secure and comfortable upper-middle-class residences. Specific Background: Citraland Helvetia serves as a case study to understand the dominant factors influencing consumer decisions in purchasing homes. This study specifically investigates whether price, location, promotion, brand image, and facilities significantly impact the purchase decisions at Citraland Helvetia. Knowledge Gap: Previous research has not conclusively identified which factors are most influential during the product launch phase for residential properties in this region. Aims: This study aims to identify the dominant factors affecting consumer purchasing decisions during the product launch of Citraland Helvetia, focusing on location, brand image, and price. Results: The study found that location and brand image are the two most influential factors in the decision-making process, while price has a significant impact but is not as dominant. Promotion and facilities also positively influence purchasing decisions. Novelty: The research provides empirical evidence highlighting the critical role of location and brand image over price during the initial launch phase, which contrasts with the common perception that price is the primary determinant. Implications: These findings suggest that developers should prioritize strategic location selection and strong brand image development to attract buyers. Enhancing these elements can lead to better consumer satisfaction and potentially higher investment returns. The study's insights can inform future urban development and marketing strategies in the housing sector, particularly in emerging urban areas like Medan. Highlights: Dominant Factors: Location and brand image drive home purchase decisions. Price Impact: Less significant during initial product launch phase. Strategic Focus: Prioritize location and brand image for buyer attraction. Keywords: Housing demand, Medan, Consumer decision, Location, Brand image

The Influence of Pricing Rate and Credit Procedures on Home Purchase Decisions with Purchase Intention as a Mediating Variable (Case Study of Pt. Bank Cimb Niaga Bogor Branch)

This study investigates the impact of pricing rates and credit procedures on home purchase decisions, focusing on PT Bank CIMB Niaga Bogor Branch, with purchase intention serving as a mediating variable. Through empirical analysis and discussion, several key findings emerge. Firstly, pricing rates significantly influence home purchase decisions, indicating that competitive pricing strategies attract potential buyers. Secondly, efficient credit procedures positively affect purchase decisions by facilitating smoother transaction processes for consumers. Additionally, both pricing rates and credit procedures independently contribute to enhancing purchase intention among buyers. Importantly, purchase intention plays a critical role as it mediates the relationship between pricing rates, credit procedures, and final purchase decisions. These findings underscore the interconnectedness of pricing strategies, credit facilitation, purchase intention, and actual purchase behavior in the housing finance sector, providing valuable insights for strategic decision-making in banking institutions.

Sharia Property Business Development Strategy (Case Study: Tasnim Property)

Abstract. The Sharia property industry in Indonesia has increased exponentially in recent years. Many Association of Sharia Property Developers (ADPS) members have recorded significant home sales. However, it is different with Tasnim Property, which has experienced a decline in home sales. This research aims to analyze consumer behaviour in making home purchase decisions, analyze internal factors, analyze micro and macro external factors, formulate alternative strategies and formulate strategic priorities that can be applied to Tasnim Property's business development strategy. This research was conducted from November 2022 to September 2023 with quantitative and qualitative approaches. In consumer behaviour analysis, the sampling technique used voluntary sampling through an online survey involving 75 respondents, and data analysis used SEM-PLS to determine the direct effect of product, price, place and promotion variables on home purchase decisions. In the strategic management analysis, the sampling technique used purposive sampling involving 6 respondents. Data analysis used the IFE matrix, Porter's Five Forces, PESTLE, EFE matrix, IE matrix, SWOT and QSPM matrix. The results showed that the product and promotion variables significantly affected home purchasing decisions. In contrast, the price and place variables did not significantly affect home purchasing decisions. There are 8 alternative strategies that have been formulated, namely: (1) increasing cooperation with a large number of Sharia Property Agency partners, (2) a home sales strategy with a unit booking system through Virtual Reality technology, (3) increasing marketing activities through B2G, B2B and B2C cooperation offers, (4) recruiting professional and experienced CEOs in the property sector, (5) introducing Tasnim products by enlarging marketing areas, (6) implementing simplified licensing procedures through the OSS (Online Single Submission) application, related agencies in local governments and online PBG, (7) a strategy to buy materials directly from factories/distributors, and (8) establishing a research & development division. The priority strategy that can be recommended for Tasnim Property is to increase cooperation with many Sharia Property Agency partners. This strategy is essential for the company to increase the market share of Sharia property with more massive and vigorous marketing efforts. Keywords: Business development strategy, sharia property, strategy formulation, consumer behaviour, purchase decision

Factors Influencing the Decision to Purchase Subsidized Housing during the COVID-19 Pandemic in South Sulawesi: Sequential Exploratory Design

The decision to buy subsidized houses by low-income people during the COVID-19 pandemic in South Sulawesi Province, Indonesia. This study aims to analyze the factors influencing subsidized housing purchase decisions by low-income people during the COVID-19 pandemic in South Sulawesi Province, Indonesia. The population in this study is subsidized home buyers in Maros Regency, South Sulawesi, who made purchases during the COVID-19 pandemic. The study sample was selected using purposive sampling techniques, where the respondents taken were subsidized home buyers in Maros Regency who made purchases during the COVID-19 pandemic (2019-2021). Data collection was conducted through interviews with subsidized housing developers in Maros District. Interviews were conducted with operations managers, leaders of marketing teams, and marketing administrative staff at subsidized housing developers. Data collected through interviews were processed using confirmatory factor analysis (CFA) and conformity testing models. The main results of this study show that location and quality of service have a significant influence on subsidized home purchase decisions. This shows that location and quality of service are important factors that developers must pay attention to in marketing subsidized houses to low-income people. The results of this study recommend that subsidized housing developers maximize location selection and service quality in marketing subsidized houses.

Pengaruh Harga, Produk, Promosi dan Lokasi terhadap Keputusan Pembelian Rumah pada Perumahan Satria Nusantara Kabupaten Konawe (Studi Kasus Pada Perumahan Satria Nusantara Kabupaten Konawe)

This study aims 1) to determine the effect of price on home purchase decisions at Satria Nusantara Housing, Konawe Regency. 2) to determine the effect of the product on the decision to purchase a house at the Satria Nusantara Housing, Konawe Regency. 3) to determine the effect of promotion on home buying decisions at the Satria Nusantara Housing, Konawe Regency. 4) to determine the effect of location on the decision to buy a house at the Satria Nusantara Housing, Konawe Regency. The population used in this study are consumers who buy houses at the Satria Nusantara Housing, Konawe Regency with a total of 67 respondents. The method used in sampling is the Slovin technique formula and the analysis method using multiple linear regression using the SPSS application. The results of this study indicate that the price has a significant effect on the decision to purchase a house at the Satria Nusantara Housing, Konawe Regency. The product has a significant effect on the decision to buy a house at the Satria Nusantara Housing, Konawe Regency. Promotion has a significant effect on home buying decisions at the Satria Nusantara Housing, Konawe Regency. Location has a significant effect on home purchase decisions at the Satria Nusantara Housing, Konawe Regency.

Pengaruh Event Marketing, Konsep Perumahan Dan Lokasi Terhadap Keputusan Pembelian Rumah Pada PT. Bhumi Inti Propertindo Singaraja

The purpose of this study was to determine the impact of event marketing, housing concepts and location on home purchase decisions at Bhumi Inti Propertindo Singaraja. The examination procedure used in this research is validity and reliability test, classical assumption test, multiple linear regression analysis, t-test, analysis of determination and f-test test. The results of the review show that the promotion mix influences the decision to purchase a house at Bhumi Inti Propertindo Singaraja. From the test results with the T test, it shows that event marketing has a significant effect on home buying decisions. The housing concept influences the decision to buy a house at Bhumi Inti Propertindo Singaraja. From the test results with the T test shows that the concept of housing affects the decision to buy a house. Location has a direct effect on home purchase decisions at Bhumi Inti Propertindo Singaraja. From the test results with the T test shows that the location affects the decision to buy a house. Judging from the f-test, it is found that the F-count > F-table is 212,297 > 3.12, this shows that event marketing, housing concepts and location basically affect the decision to buy a house with a sig level. big. 0.000 < 0.050.
 Keywords : event marketing, housing concept, location, home buying decisions

상속ㆍ증여가 임차가구의 자가전환에 미치는 영향에 관한 연구

In this study, the probit model explains the effect of inheritance and gift amounts on renters’ choice in housing tenure. The data is from the Korea National Survey of Tax and Benefit (NaSTaB). After left-censoring the renters as of 2010, we estimate the panel probit model to explore the effect of the amount of inheritance and gifts on people's tenure choices. As a result of the estimation, inheritance and gift amount variables have a statistically significant positive effect on the home buying behavior of rental households. When comparing their marginal effects, we find that the amount of inheritance has a more substantial effect when the total sample is used. In contrast, the gift amount variable has a more considerable effect when using the sub-sample that consists of either inheritance or gift or both. In the case of the renters’ home purchase decision, the financial support of parents and third parties may serve as an equity down payment. We present the policy recommendations to encourage behaviors related to inheritance and gifts that affect the redistribution of assets between generations.

Critical Factors Influencing the Purchasing Decisions among Home Buyers in Malaysia

Home purchasing trends are constantly changing due to several factors. Financing factors have always been a major factor that will influence home buying decisions in Malaysia. However, the factors are different for groups of people because their demands and preferences in choosing a home are different. As a result, most developers find it difficult to build and design homes to attract home buyers. Therefore, this study aims to identify the factors in influencing the purchase decision of home buyers in Malaysia especially in Kedah. Researchers have listed financing, location and neighborhood as factors that can influence in determining the factors of home purchase decisions among residents in and the quantitative research method through was adapted in this study in which 74 questionnaires were distributed to the respondents within two weeks. The findings of the study indicate that financing, location and neighborhood contributed a positive relationship with the purchase decisions of home buyers in Laguna Merbok Sungai Petani township. From the results, some suggestions are recommended by the researchers along with the limitations of the study and hopefully can help future researchers with the expansion of the scope of the study, variables and methods.

Home Purchase Decision Support System Using the Brown-Gibson Method

thesis. The application program was built by applying the Brown-Gibson method which is capable of measuring both qualitative and In making a decision to buy a house, a buyer will consider a variety of complex criteria, such as qualitative (non-numeric) and quantitative (numeric) criteria to get the best decision. To simplify the process, a home purchase decision-making application program was created in this quantitative criteria. The algorithms in the Brown-Gibson method used in this application program include: "Performance Measurement" to measure quantitative criteria, such as house selling price, land area, building area and number of bedrooms; “Pairwise Comparison” to measure qualitative criteria, such as architectural style, position of the building, proximity to the work environment, proximity to shopping centers, proximity to the educational environment, state of the home environment, building status, house certificate; and "Preference of Measurement" which combines the quantitative and qualitative criteria to produce a priority weight that can be accepted as a measurement result for each alternative house as a whole. The final result of this thesis is an application program that provides the highest value for an alternative home. The house that gets the highest score is an alternative house that has the most suitable specifications according to the criteria considered by the buyer. The house that gets the highest score is an alternative house that has the most suitable specifications according to the criteria considered by the buyer. the condition of the house environment, the status of the building, the certificate of the house; and "Preference of Measurement" which combines the quantitative and qualitative criteria to produce a priority weight that can be accepted as a measurement result for each alternative house as a whole. The final result of this thesis is an application program that provides the highest value for an alternative home. The house that gets the highest score is an alternative house that has the most suitable specifications according to the criteria considered by the buyer. and "Preference of Measurement" which combines the quantitative and qualitative criteria to produce a priority weight that can be accepted as a measurement result for each alternative house as a whole.

Job loss risk, expected mobility, and home ownership

Geographic mobility is a key factor affecting the home purchase decision, and a common reason for moving is to find work. Yet, little is known regarding how job loss risk affects home ownership via the mobility channel. Measuring this effect is difficult because job loss risk usually coincides with income and credit shocks. We isolate the mobility channel by studying economics professors on the tenure track. Our analysis uses public records to provide the first quantitative estimates of this effect, and we validate our results with a follow-up survey. A one percentage point increase in expected mobility, identified via variation in tenure risk, reduces the probability of home ownership by up to 1.8 percentage points.

Pengaruh Lokasi, Pendapatan Konsumen, Harga Rumah Dan Selera Terhadap Keputusan Pembelian Rumah Bersubsidi Di Kabupaten Manokwari

This study aims to determine the influence of location, consumer income, house prices, appetite for subsidized home purchase decisions in Manokwari Regency. The variables in this study are Location, Consumer Income, House Price and Taste. This study uses primary data and secondary data. Primary data obtained through questionnaires and secondary data obtained through agencies related to this study, the analysis method used is to use multiple linear regression models using the SPSS Statistic 16 program. The results of the partial study (t test) Location, Kosumen Income, House Prices and tastes had a positive and significant effect on the decision to purchase subsidized homes in Manokwari Regency. But together (simultaneously) variable locations, consumer income, house prices and tastes significantly influenced purchasing decisions at a confidence level of 95 percent.

High Involvement and Ethical Consumption: A Study of the Environmentally Certified Home Purchase Decision

Sustainable and energy efficient (SEE) attributes in the housing market have become a focus in Canada. Similarly, understanding the consumer’s decision-making process of this high-involvement ethical product has become a burgeoning area for researchers. This study describes the development of the subject, highlighting the nature of the ethical decision-making process and how it relates to this known intention–behaviour gap. An observation, followed by two studies consisting of in-depth interviews with real estate agents and sales representatives (n = 15) and home purchasers/consumers (n = 15), were conducted. Transcriptions were analysed qualitatively with NVivo Pro 12 software (NVivo Pro 12, QSR International Pty Ltd, Melbourne, Australia). Inductive thematic analysis revealed two main driving themes: information and trust in seller/realtor. Attribute investment return uncertainty was identified as a theme that affects the strength of the relationship between purchase intention and behaviour, whereas the trust in seller/realtor speaks to how and why this effect occurs. The findings present relationships among the driving factors that were identified by realtors and consumers in the SEE housing market, as well as barriers (investment return uncertainty) that prevent consumers from purchasing high-involvement ethical products.

DECISION SUPPORT SYSTEM DETERMINES THE PURCHASE OF HOUSE RIGHT USING ANALYTICAL HIERARCHY PROCESS (AHP) AND BORDA METHODS

Increasing population growth also contributes to the increasing need for homes or dwellings as basic human needs. Many ways people do to meet these needs, among others, by buying from someone else, building it yourself or by buying a house in a housing developer. Houses besides being a basic human need, it is also used as an indicator of one's success and as an asset for business development and an increase in the economic value of the owner. Prospective home buyers certainly have criteria that are considered in choosing a house. Many of the existing criteria are often followed by the availability of more than one choice of the house to be able to meet these criteria. Therefore, the writer tries to try to make a Decision Support System in a Home Purchase that will later help prospective home buyers in deciding which house to buy. The decision-making method used in this system is an analytical hierarchy process (AHP) as a form of decision-making model that is suitable for multi-criteria and multi-alternative problems with the main input being human perception. Combined with the Borda method which is one method of group decision making that can combine the results of perceptual analysis (the results of AHP analysis) from several decision makers. it is necessary to have a group decision-making technique (group decision support system). So that the resulting home purchase decision can be accepted by all decision makers (family). From the results of the calculation and voting process, House X was chosen with 9 votes.
 
 Keywords: Home Purchase, Analytical Hierarchy Process, Borda

Actitud del menor ante la publicidad que recibe a través de los dispositivos móviles

This research starts from the consideration of the children as an active user of mobile devices, as well as their profile of consumer and receptor of advertising messages, with the ability of acquisition and consumption of products. The marketing strategies are conscious of the children influence power in the home purchase decisions, hence it would be interesting knowing which type of advertising messages they receive through these screens in which brands include ads to guarantee reaching this audience profile. The importance of this research roots in the purpose of stablishing a strong starting point that makes possible future studies focused in the childcare, the supervision of content and the parental and social mediation. The results offer data on the attitude that children (ten to fourteen years) keep in front of the advertising messages they receive through their mobile devices, measured in terms of detection, level of attention, confidence and interactivity, statistics extracted from a survey supplied in 500 homes of the Metropolitan Region of Santiago of Chile. Among the main conclusions, it is important to highlight that minors trust more in the advertising launched by channels they most used in their mobile devices (Youtube, WhatsApp, on-line games), platforms in which entertainment and advertising appears increasingly mixed.

Factors influencing home-purchase decision of buyers of different types of apartments in India

PurposeThe purpose of this paper is to present partial results of a survey conducted in Pune, India. Its aim is to determine the importance of factors, other than the buyer-related factors, that influence the purchase of a flat/apartment, of buyers of different types of flats/apartments.Design/methodology/approachThe author follows three hypotheses for recent buyers of three different types of flats/apartments, namely, 1 BHK, 2 BHK and 3 BHK (where 1, 2 and 3 indicate the number of bedrooms, H stands for hall and K stands for kitchen. Thus 1 BHK designates a flat/apartment with one bedroom, a hall and a kitchen). A total of 284 respondents from buildings located on the outskirts of Pune city participated in the questionnaire survey for this study. Ten factors have been considered.FindingsFrom this study, it is concluded that price is significantly the most important factor for buyers of 1 BHK, followed by product, and then followed by location. For 2 BHK buyers, there is no single significantly most important factor. For 3 BHK buyers, there is no single significantly most important factor and the two most important factors are product and location.Research limitations/implicationsThe results of this study show that buyers of different types of flats/apartments give different types of importance to the influencing factors. This study of buyer behavior will be helpful for the marketers of real estate companies, as they can identify the most important factors for various categories of buyers and implement those accordingly.Originality/valueThis study is the first to analyze the importance of the influencing factors for buyers of different types of flats/apartments. Also, it is the first to analyze the home-buying behavior for flats/apartments constructed in the outskirts, where most of the new constructions are taking place. This study will be useful to all the stakeholders of the housing industry.

How Do Personal Real Estate Transactions Affect Productivity and Risk Taking? Evidence From Professional Asset Managers

Housing decisions require intensive attention from households. However, the existing housing literature has not examined the potential connection between costly and time-consuming real estate purchases and the behavior and work productivity of individuals involved in the housing search and acquisition process. In addition, micro evidence on the link between home purchase decisions and the investment/risk choices of households is limited and inconclusive. Our study fills these gaps in the literature by examining the real estate acquisitions of professional asset managers. Overall, we find evidence that major purchases, such as real estate acquisitions, lead to distractions, as evidenced by reduced performance, less active trading, and increased susceptibility to behavioral biases such as the disposition effect. We also find evidence that managers tend to increase the riskiness of their professional portfolios after real estate purchases. This increase in risk is concentrated in cases of purchases of investment properties and purchases using extensive leverage, suggesting consistent risk-taking appetites across personal and professional portfolios. These findings suggest that housing transactions may shed light on the decision making, risk taking, and work productivity of a broad set of homeowners, such as asset managers, corporate executives, and even rank and file employees.

Making Existing Homes Greener

During the past two decades, a “green building movement” has emerged, at first concentrating on the “greening” of government and commercial building. More recently, the focus has turned to the greening of residential buildings. “Green homes” are increasingly popular in the United States and throughout the world. They consume less energy; reduce environmental impacts; and conserve land, water, and other natural resources. Now, thousands of homebuyers are willing to take into account green environmental considerations when making home purchase decisions. They are motivated economically (the prospect of lower utility bills) and altruistically (doing what is good for the environment).

Strategic interaction between inter vivos gifts and housing acquisition

This paper models the interdependence of parental inter vivos gifts and children’s home purchases when informal care affects decision making. We use data from Japanese households who purchased a detached house in an urban area to test this strategic interaction. Considering both censoring and endogeneity of inter vivos gifts, which are identified by information on formal care, our preferred results demonstrate that inter vivos gifts do not significantly increase the purchase price of housing. Theory suggests that this occurs when informal care tends to be a heavy burden for children. However, subsample analysis of young home buyers indicates that the empirical results are consistent with the literature: children who receive parental gifts tend to purchase a higher-priced dwelling. One potential explanation is that relatively young adult children are less likely to take charge of care obligations, and accordingly, parental gifts are only expected to relax their liquidity constraints. Subsample analysis appears to indicate that the underlying motivation of parental gifts is influenced by the timing of children’s home purchase decisions.

Homebuyers and Wildfire Risk: A Colorado Springs Case Study

In recent years, the threat that wildfire poses to homes has received much attention in both the mainstream press and academic literature. However, little is known about how homebuyers consider wildfire risk during the home-purchase process. In the context of a unique wildfire education program, we consider two approaches to examining the relationship between wildfire risk and home purchases. Results from a market-level analysis using home sales price data are compared to household survey results. The household survey validates the market-level analysis and provides further insight into homebuyers and wildfire risk. Specifically, we find that while homebuyers prefer locations near dangerous topography, they also prefer less flammable building materials. However, most homebuyers were unaware of wildfire risk when they made their home-purchase decisions.

Socio-economic differentials and stated housing preferences in Guangzhou, China

Households in Chinese cities today have to increasingly rely on the market to satisfy their housing needs. The growing freedom in choosing one's own residence implies increased variations in all aspects of housing consumption. Examination of individuals’ housing preferences is crucial in understanding these variations. This paper studies the housing preference of Guangzhou people through choice experiments framed in state-of-the-art experimental design methods. Joint logit models comprising both neighbourhood and dwelling attributes are estimated for all subjects and for various sub-samples classified by family income, age, education, nature of employment organization, district of current residence, etc. The models are then used to compute utilities for different attribute levels, the impacts of these attributes on choice probabilities, and the relative prices that the subjects are willing to pay for buying a home in different districts, with different accessibilities, of different types, etc. Neighbourhood and location-related attributes are found to be more important than dwelling-related attributes in home purchase decisions. Further, factors such as family income, age, education, nature of employment organization, etc. are found, to various degrees, have affected housing preference. Based on the preference structures revealed, we envision a new urban morphology to take shape in Chinese cities which is not too dissimilar from the ones in cities in the West, with the inner core dominated by the aged and the urban poor and the outskirts occupied by younger people and the rich and well-educated class.