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Property Decision and Consumer Behaviour

Task:

Renting a house can be a major consumption decision, subject to many competing influences. This assignment requires you to look at the rental property choices of 3 people, and provide your analysis on those factors leading to their decisions.

Firstly, please download the 5 survey questionnaires completed by 5 different respondents (these questionnaires will be posted on Moodle from Week 5). After reading through these questionnaires, please pick 3 questionnaires/respondents (you can pick any 3 you like) as the target for your analysis. You will notice that these questionnaires are mainly about making decisions among 6 different rental property options.

Secondly, please use the compensatory decision rule to calculate which rental property option each of the 3 respondents is most likely to choose, based on the decision matrix presented in her/his questionnaire. Is this the rental property s/he would have actually chosen? If there is a difference, please provide an explanation.

Thirdly, please use the theoretical areas below to analyse the behaviour of your chosen respondents. Please explain the differences between their rankings of evaluative criteria and their choices of rental properties, using theories from:

  • Demographics      (age, gender, family situation, income, ethnicity etc)
  • Personality

Lastly, please provide recommendations to the marketer of ANY ONE of the rental property options featured in the survey questionnaires – what are the characteristics of her/his likeliest customers and how might she/he best attract them by applying the theories of learning and memory?

Answer

Executive summary:

Consumer behavior refers to the study of the systematic processes that deals with the thought process, ideas and opinions of an individual or group. Besides, the consumer behavior determines the purchase, ideas, opinion, economic structure or experiences dispose of the product, available services of the individual that constructs the purchase demands. The paper focuses on the understanding of the consumer behavior alongside the factors that influence the consumer’s behavior towards the purchase process. Furthermore, the paper accounts the details regarding as to how the consumers use the services. The paper explores the ideas of rental purchase of the customer through survey analysis of the three different respondents. 

Introduction:

Every human being needs shelter and therefore purchasing a property determines a lot of factors that involves monetary and social factors. Renting becomes equally difficult as the consumption decision has been competing with several factors. It is important to understand how far consumer choice is molded through different external and internal factors. In order to rent a property it is important for the family to assess and examine the rent structure, bedroom, renovation and furnishing availability, quality of bathroom and kitchen. Besides, the family income plays a major role in renting a property. 


The paper focuses on the study of the three respondent’s survey analysis. The consumer’s choice depends on the global change and technological advancement. Therefore, the customers are in want of better requirements and amenities in meeting global advances. It is important for the owner of the property in understanding of the costumer behavior and what are the requirements they need in the contemporary times. The paper emphasizes in the exploring the consumer behavior, consumer buying choice and customer experience in buying a property.

Application of compensatory decision rule:

Compensatory decision rule states the process that through which the customer attempts to examine the product and services they are trying to avail on the basis of the understanding of trade-offs, economic factors, service alternatives, and understanding of the good characteristics that would compensate for the bad ones (Hartmann & Siegrist, 2017). Compensate decision rule refers to eth systematic process takes into consideration the benefits of the property purchase and help in determining price whether the purchase is able to meet the customer requirements. It is important for the customers to understand the good characteristics and analyze as to how it outweighs the ill characteristics of an increased price are and determine if the purchase is worth the price. 


The compensatory decisions need to be rationally assessed. Compensatory decisions are interrelated with rational decisions that involve identification of certain set of attributes and analyze if the attributes will affect the success of choosing the property (Bojanic, 2015). However, the effects may be both positive and negative affecting the decision process; it is essential in assigning importance to every attribute and examine the value for each attribute; following the suitable option in gaining maximum profit (Ahmetoglu, Furnham & Fagan, 2014)

R1: calculation: 29+23+18+21+18+20= 129

R2: calculation: 28+18+18+24+19+23= 130

R3: calculation: 24+13+17+18+17+22= 111

It is observed from the calculation that the three respondents are interested in option 1 that becomes favorable and affordable within their range. 


Respondent 1: 

Evaluative Criteria
Importance Score
Rent
60
Bedroom
5
Bathroom and kitchen
10
Parking
5
Renovation and furnishing
5
Distance from city centre
15
Total
100
Evaluative Criteria
Option 1
Option 2
Option 3
Option 4
Option 5
Option 6
Rent
1
3
3
1
4
3
Bedroom
4
3
3
4
4
4
Bathroom   and kitchen
5
3
1
4
3
3
Parking
5
5
3
5
4
5
Renovation   and furnishing
5
4
4
2
2
3
Distance   from city centre
4
5
4
5
1
2


Respondent 2:

Evaluative Criteria
Importance Score
Rent
10
Bedroom
15
Bathroom   and kitchen
20
Parking
15
Renovation   and furnishing
15
Distance   from city centre
25
Total
100



Evaluative Criteria
Option 1
Option 2
Option 3
Option 4
Option 5
Option 6







Rent
3
4
5
3
5
5
Bedroom
5
1
1
4
3
4
Bathroom   and kitchen
5
2
2
4
3
3
Parking
5
3
2
4
3
5
Renovation   and furnishing
5
3
3
4
3
3
Distance   from city centre
5
5
5
5
2
3


Respondent 3:

Evaluative Criteria
Importance Score
Rent
20
Bedroom
20
Bathroom   and kitchen
20
Parking
10
Renovation   and furnishing
25
Distance   from city centre
5
Total
100



Evaluative Criteria
Option 1
Option 2
Option 3
Option 4
Option 5
Option 6
Rent
2
3
4
2
5
4
Bedroom
5
2
2
4
3
4
Bathroom   and kitchen
5
2
2
4
3
3
Parking
4
2
3
4
2
4
Renovation   and furnishing
5
3
3
3
2
3
Distance   from city centre
3
1
3
1
2
4


Analysis of behavior:

According to respondent 1, she has been focusing on the rent following the distance, bathroom and kitchen, parking, bedroom and renovation and furnishing. She has been preferring option five that is located fifty one kilometers from the city centre with proper facilities and semi furnished criteria. The respondent belongs from a middle class family who can needs to afford rent only under the given circumstances. 


Respondent 2, states that for him distance and bathroom and kitchen stands of utmost priority over the rent, bedroom, parking, renovation and furnishing. He can afford the rent as he is a regular earner with high income. He is senior manager at the bank who is of the age 54 and needs a rent sufficient for his survival. He does not have a family as he has been a divorce. According to Respondent 3, who is aged 48, female and is a housewife looking after her family, needs a rent within her affordability. She needs a well renovated and furnished house following reasonable rent, bathroom and kitchen, bedroom requirement and distance. She prefers option 6 that provides a three-bedroom facility with one kitchen and one bathroom and further facilities like garage availability and semi-furnished.


There are marked differences between eth consumer’s choices that can be well-examined from the survey analysis of eth three respondents. Differences arise due to age, gender, thoughts, ideas and personality (Hofacker, Malthouse & Sultan, 2016). The two most important factors in shaping consumer choice and purchase is determined by personality and demographic. Freudian personality theory states that personality is governed by three characteristics that is the ego, super-ego and Id.  The Id involves the fundamental needs that the individual need such as food, thirst etc. 


While the super ego deals with the moral and ethical conduct and the ego plays the conscious role (Annunziata & Vecchio, 2013). All these three characteristics play a major role in shaping the purchase process according to their needs.  According to the Trait theory, it is understood that every individual has their own characteristics and desires that gets challenged and re-structured with time measured by innovation and materialistic needs (Vitell, 2015). The cognitive personality trait again examines the differences in the aspects of consumer behavior through need for cognition nada visualizers in comparison to verbalizers. While the demographic factor determines if eth areas is developing or developed, industrially successful, availability of market and transport (Zeithaml, 2013). All these demographic characteristics attracts the consumer towards the property locale and associates them with the economic and social benefits. 

Recommendations:

In relation to the respondent 1, who is a female aged 20 years, working part time at grocery store and pursuing her bachelor’s degree, the marketer needs to cater to the individual needs that will fit into her earning and affordability. She needs the basics of a bedroom with hygienic environment and proper transport facilities that indicates that the property needs to be located near the city center through which she can avail the transport and the market in sustaining her daily life. Through the understanding of cognitive learning and memory will help in influencing the customers in relation their age. 


Being an adult, it will be easier for the marketer in influencing her mind by explaining he the benefits of the internal and external environment and help her learn the requirements of the necessity. If the marketer is able to understand what the customer thinks and understand her wants, it will be easier for him to influence her accordingly. Therefore, cognitive theory and learning caters towards the role play of social and economic acquisition in shaping individual’s intelligence and learning procedure. 

Conclusion:

Consumers utilize the products and services only when their demand and requirements are met with the global; changes. Customer face huge complexity in purchasing a property as it is a greater investment. The customers need to avail to the information available so that they can have a clear idea regarding the different property conditions. It is important not only to examine has the monetary affordability rather visualized the environmental benefits like market facility, transport, hospital facilities. 


A customer in order to sustain its living need to have proper food and lodging facilities, a market where food and domestic items are available, transport system to reach out to various places etc. they need not get manipulated with the various options available in the surrounding that impulse their individual decisions. Their decision-making process need to rational and logical so that they are benefited of their current purchase. 

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