BIRLA INSTITUTE OF TECHNOLOGY NOIDA

Assignment perception and expectation of customer in real estate

Submitted By:IMBE/4501/12 Sheeba Sardana; IMBE/4507/12 Deboshree dey; IMBE/4513/12 Shubham Agarwal;

Acknowledgment
It is really a matter of pleasure for us to get an opportunity to thank all the persons who contributed directly or indirectly for the successful completion of the project, perception and expectation of customer in real estate. First of all we are extremely thankful to my college Birla institute of technology, Noida for providing us with this opportunity and for all its cooperation and contribution. We are highly thankful to Mrs. Vandana Sharma maam for giving us the encouragement and freedom to conduct our project. We are also grateful to all my faculty members for their valuable guidance and suggestions for my entire study. And we are also thankful to real estate broker for giving us full support to conduct our project.

Content
Abstract Keywords Introduction Overview of real estate in india Review literature Objective of the study Statement of the research problem Research goals The study area Research methodology Scope and limitations Finding and analysis conclusion

Abstract
india is an over populated country and day by day population is increasing rapidly which created the housing problem. Land prices skyrocketed. Due to high price, insufficiency of land, high cost of land registration, and high price of building materials, people are now not interested to buy a land for building their own house. This report shows the customer perception and expectation in different dimensions - budget, types of apartment, size of apartment, favorable location in Ghaziabad city, favorable facility in an apartment, factors related to purchase decision, factors in selecting developer company, how customers determine about quality, company brand selection, desired services from a particular company, preference between apartment and land, the risk factors perceived by the customers. Geographically, this study focuses on the Ghaziabad, and can be considered as a little contribution to the understanding of the real estate industry, particularly in Ghaziabad and particularly from the customer perspective. But the findings may be relevant for other cities also. Real estate companies and developers can take these factors into consideration while making their business strategy and marketing strategy. On the other hand, Policy makers can take the customer perception and expectation cited in this study, into consideration while making related regulatory policies and framework.

Keywords
Real Estate, Ghaziabad (up), Customer perception and expectation.

Introduction
India is an over populated country and day by day population is increasing rapidly which created the housing problem. Land prices skyrocketed. Due to high price, insufficiency of land, high cost of land registration, and high price of building materials, people are now not interested to buy a land for building their own house. Thats why they turn to real estate companies who are providing flats or apartments. In response, real estate business has enjoyed a boom over the years. In all over the India, there are now companies growing up like Ansal , wave etc. these companies also spreading throughout other divisional and district towns. There are some secondary literature based articles like real estate financing by Sarkereal. (2011). But there is little research, specifically primary data based one, - what customers are looking for, why they are choosing particular apartment, particular company and for what factors.

Overview of Real estate industries in India

Real estate in India continues to be a favored destination globally for investors, developers and non-resident Indians (NRIs), driven largely by investor-friendly government policies and increasing Globalization. The second largest employment generation sector after agriculture, real estate contributes about 6.3 per cent to India's gross domestic product (GDP). The foreign direct investment (FDI) in the sector is expected to touch US$ 25 billion in the next 10 years from its current US$ 4 billion. The sector's progress is driven by factors such as rapid Urbanization, a growing trend towards nuclear families, positive demographics, ruralurban migration, ever-developing infrastructure, higher income levels and housing demand. The real estate sector, with its growing investment opportunities, is expected to post annual revenues of US$ 180 billion by 2020. Market Dynamics

The real estate sector in India is witnessing rapid growth in the residential, commercial and industrial segments. Real estate development, once restricted to bigger cities, have shown marked progress in smaller cities and towns owing to availability of banks loans, higher earnings and improved standard of living. The real estate sector of India is projected to post annual revenues of US$ 180 billion by 2020 against US$ 66.8 billion in 2010-11, a compound annual growth rate (CAGR) of 11.6 per cent. The demand is expected to grow at a CAGR of 19 per cent in the period 2010-2014, with Tier I metropolitan cities expected to account for about 40 per cent of this growth. As of now, Mumbai, Delhi-National Capital Region (NCR) and Bengaluru cater for 46 per cent of total office space demand in India. This demand is expected to be rise sharply in Tier II cities such as Kolkata and Chennai in the period 2010-14. Today, Delhi-NCR accounts for about 30 per cent of the total mall supply in India. About 53 per cent of demand for total mall space is projected to come from the country's top seven cities, namely Delhi-NCR, Bengaluru, Mumbai, Kolkata, Pune, Hyderabad, and Chennai, in the period 2010-2014.

Investment Opportunities

The Indian retail realty sector is projected to grow at around 15 per cent year-on-year over the next 3-5 years as against a 12-13 per cent nominal growth of India's GDP estimated by the International Monetary Fund (IMF). If the sector does indeed manage the aforementioned growth, it will touch Rs 34 trillion (US$ 544.73 billion) by 2016. India's office space stock is estimated to rise by 40 per cent to 642.2 million sq ft by 2017, according to a report by real estate consultancy Knight Frank India. The current Indian market offers some of the most competitive rates in the Asia-Pacific region, according to a report by property services firm DTZ. The report also states that Indian cities will have some of the fastest rental growths in the region over the period 201317, but will remain among the most competitive. The share of luxury retail space in India will be 1.4 per cent by 2015, according to a report by real estate services firm Cushman & Wakefield. NCR and Mumbai, areas that have embraced the mall culture, are the two most favoured destinations for luxury retailers. The construction development sector, including townships, housing and built-up infrastructure garnered total FDI worth US$ 22,671.95 million in the period April 2000-August 2013. Construction (infrastructure) activities during the period received FDI worth US$ 2,280.95 million, according to the Department of Industrial Policy and Promotion (DIPP). The following are some of the major investments in the Indian real estate sector:
1. Godrej Properties Ltd plans to invest Rs 9,000 crore (US$ 1.44 billion) in 15 new real estate projects in India over the next 10 years.
2. Unitech Ltd has signed a Rs 800 crore (US$ 128.17 million) deal to lease an 800,000 sq ft space at one of its IT Special Economic Zones (SEZ) in Gurgaon, to multinational human resource firm, Aon Hewitt. 3. NRI billionaire Mr Ravi Pillai plans to purchase stake worth about US$ 100 in a special purpose vehicle floated by Pune-based realtor, Panchshil Realty. The investment will go into the construction of Trump Towers and World Trade Centre in Pune, Maharashtra. 4. Infrastructure Leasing & Financial Services (IL&FS) Ltd has claimed a project worth Rs 244.46 crore (US$ 39.17 million) from realty firm Emaar MGF for construction work at the latter's residential project at Gurgaon, Haryana. 5. French luxury hotel chain Sofitel, which is managed by Accor Group, is targeting 10 properties in India, mainly in major luxury destinations, in the next few years. 6. One of the world's top manufacturers of elevators, US-based Otis, is setting its sights on the Indian real estate market. The pace of construction in India makes the country an attractive proposition for such an investment. The company will be working with the Delhi and Hyderabad Metro projects. The former has placed an order for 222 escalators for its Phase III project, according to Otis.

Government Initiatives

According to the existing FDI policy, 100 per cent FDI in the construction development sector is permitted through the automatic route. DIPP is looking at relaxing FDI norms further to encourage investment. It has also proposed a reduction in the minimum capitalisation for whollyowned subsidiaries from US$ 10 million to US$ 5 million, and from US$ 5 million to US$ 2.5 million for joint ventures with Indian partners. One of the major initiatives of the Ministry of Housing and Urban Poverty Alleviation (MHUPA) is to provide affordable housing for poor people living in urban areas. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) is one its flagship schemes, a reform driven investment programme which started with the objective of creating economically productive, efficient, responsive and inclusive cities. The Real Estate (Regulation and Development) Bill, 2013, as approved by the Union Cabinet is a pioneering initiative aimed at delivering a uniform regulatory environment to protect the consumer, help in quick verdicts of disputes and ensure systematic growth of the sector.

Road Ahead

India needs to invest US$ 1.2 trillion over next 20 years to modernise urban infrastructure and keep pace with the burgeoning urbanisation, as per a report (India's urban awakening) released by McKinsey Global Institute (MGI). Demand for space from sectors such as education and healthcare has opened up opportunities in the real estate sector. Also, growth in the number of tourists has led to demand for service apartments. This demand in the tourism sector is expected to generate 50,000 new hotel rooms over the next four to five years, across India's major cities. Exchange Rate Used: INR 1 = US$ 0.0160 as on November 18, 201

REVIEW OF LITERATURE
In the words of Parasuramanetal. (1985), services have become more and more important factor for organizations. Most service providers depends on performing the services correctly but also others find services as an important means of differentiation and creating better customer satisfaction. The problem facing many real estate agents is how to meet their clients taste, retain them and be able to gain competitive advantage over others. There is need to know what the consumers actually value so as to meet their needs and probably retain them. In a study by McDaniel and Louargand (1994), the study revealed that all services must respond to consumer expectation because consumers perception of quality is an important part of the consumption decision. Therefore, the customer must never feel ignored, unimportant or abandoned in service delivery. Stewart (2008) noted that the most valuable, and often the most neglected approach towards getting the edge over competitors is developing a better understanding of the perspective of the concerned consumer and devising strategies to increase their service quality. This will give the consumer satisfaction and also encourage repeat business. Parasuramanetal. (1985) in their pioneering work on service quality identified some criteria for assessing service quality from the consumers perspective. These criteria are: reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding/knowing the customer, and tangibles. After further research, the authors came out with five basic dimensions that the consumer of any service wants to have the provider meet his or her expectations. These are in the areas of: tangibles, reliability, responsiveness, assurance, and empathy. According to Parasuramanetal. (1990) are the determinants of the perception of service quality on the part of the consumer.

Omar and Schiffman (1995) Parasuramanetal. (1988) and Radwin (2000) all reported that consumer requirements need to be known in order to have a satisfied consumer, that is, the providers understanding of what the consumer want and the providers ability and willingness to deliver it brings consumer satisfaction. Crew (1999) researched into consumer perception of the service offered by real estate agents in Real Estate Institute of New Zealand. His findings confirmed that buyers continue to choose a real estate firm because the firm had the services, people or product (home) that they wanted. His findings also reflected mixed results in terms of consumer satisfaction levels. Sridhar (2001) observed that service quality is ultimately defined by customer irrespective of organization internal quality specification. However, there is problem of different levels of expectation, incorrect interpretations of expectations, delivery of inappropriate service and failure to match expectations with performed service. To ensure better service quality, the author advised that providers should promise what can be delivered, attend to complaints from dissatisfied customers and make services easily understood.

Thomas and WhitneyThomas (1996) identified communication breakdowns as the greatest barrier to a positive working relationship. The authors agreed that the more involved and assertive the consumer, the better the services. From the foregoing, it could be deduced that there are some factors that bring consumers satisfaction. The providers understanding of these factors and their ability to provide same will lead to improved service delivery, enhance consumers satisfaction and encourage repeat businesses.

Objectives of the study

The broad objective of this study is to develop an understanding of the overall picture of apartment/flat market of Ghaziabad City with particular emphasis to customers preference and expectation side. The specific objective is to identify and gain insights about the preference of the apartment buyers or customers while choosing the apartments or the real estate companies.

Statement of the research problem

the problem of the study was to determine the customer perception and expectation in different dimensions - budget, types of apartment, size of apartment, favorable location in Ghaziabad city, favorable facility in an apartment, factors related to purchase decision, factors in selecting developer company, how customers determine about quality, company brand selection, desired services from a particular company, preference between apartment and land, the risk factors perceived by the customers.

Research goals
There were twelve main research questions used by us to conduct our study.

Q1. what is your price range for purchasing an apartment ? Q 2. what type of apartment are you interested in ? Q 3. how may square feet are you seeking ? Q4. what type of location are you interested in ? Q 5. how many facilities are you expecting in your apartment ? Q6. what kind of factors effects you during apartment purchase decision ? Q 7. what are the dilemma you face when you are selecting a developer companies ? Q8. Do u considered about quality ? if is it then by what source ? Q 9. which brand name apartment would you like to purchase ? Companies have mentioned below? Q10. what kind of facilities do you want from developer companies ? Q11. if you have given two chooses between land and apartment what would you like to prefer and for what purpose ?

Q12. what are the factors do you fear about purchasing an apartment from real estate companies ?
THE STUDY AREA The study area for this research is Uttar Pradesh-India. The city of Ghaziabad has been chosen to be a representative sample of the whole country. This city have seen the sudden spurt of commercial activities in terms of industrialization, education, IT hubs in last 10 years (post 2000) and of course this has contributed a lot in the sudden increase in the real estate/ property market. These two destinations are in comparison with the top metro cities of Mumbai, Delhi, Calcutta, Chennai etc. as the volume of economic activity in Ghaziabad exceeds that of all capitals or towns in the country.

RESEARCH METHODOLOGY The topic was selected because this is a very interesting one in current context of India. Real estate market is booming, demand is soaring, and shaping of industry is very fast. Real estate has become a focus of citizen interest. The study was conducted in Ghaziabad in MarchApril 2014. The focus group for this research work was mainly real estate services to satisfy customers .we have taken 10 real estate surveying firms were randomly selected representing total number of estate agency firms in the study area. A total number of 30 real estate customer were selected by us. The study adopted self-administered questionnaires as its data collection instrument. Each customer was asked to complete a questionnaire. The questions focused on individuals perspective of real estate agents. More specifically, consumers were asked to express their views based on expectation and perceptions as a consumer in real estate.

Exploratory research

The method one used for exploratory research was: 1. Primary data 2. Secondary data

Primary data
New data gathered to help the problem at hand as compared to secondary data which is previously gathered data . an example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research , consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observation and test results experimentation. Primary data is basically collected by getting questionnaire filled by the respondents.

Secondary data
Information that already exist somewhere, having been collected for another purpose. Source include census reports, trade publications and subscription services. Data that have already been collected and published for another research project (other than the one at hand). There are two types of secondary data : internal and external secondary data.

Descriptive research

Steps in the descriptive research: Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling plan. Design of procedure for information collection Collection of information Analysis of information Generalization and predictions

Determination the sample plan and sample size

Target population
It is description of the characteristics of that group of people from whom a course is intended . it attempts to describe them as they are rather than as the describes would like them to be. I have selected the sample trough simple random sampling.

Sample size
This involve figuring out how many samples one need. The number of samples you need are affected by the following factors: Project goals How you plan to analyze your data How variable your data are or are likely to be How many times a year you will sample each point How much money you have

Sample size
we have targeted 30 people for the purpose of the research. The sample size is influenced by the target population. The target population represents the Ghaziabad region. The people were different professional background.

Sample technique
Simple random sampling technique has been used to select the sample .a simple random sample is group of subjects (a sample) chosen from a larger group (a population).

Errors in the study

Interviewer error
Interviewer bias in the questionnaire method. Open ended questions can be biased by the interviewers views or probing , as interviewers are guiding the respondent while the questionnaire is being filled out. The attitudes the interviewer reveals to the respondent during the interview can greatly affect their level of interest and willingness to answer openly . as interviewers probing and clarifications maximize respondent understanding and yield complete answer , these advantages are offset by the problems of prestige seeking , social desirability and courtesy biases.

Questionnaire error
The questionnaire designing has to careful so that only required data is concisely reveled and there is no redundant data generated . the questions have to be worded carefully so that questions are not loaded and does not lead to a bias in the respondents mind.

Respondent error
The respondent error selected to be interviewed were not always available and willing to corporate also in most cases the respondents were found to not have the knowledge , opinion , attitude or facts required additionally uninformed response errors and response styles also led to survey error.

Scope and Limitations

This is a cross sectional study which might not capture the trend or changes in customer attitude and preferences about the apartments or real estate companies. This field based study was done only in Ghaziabad. There are so many real estate developer companies in Ghaziabad and all over the country, with huge and growing customer base, different target customers, and with different business strategies. So it might not be possible generalized about the overall country scenario. The main field investigation was done two years ago. So the year-of-investigation and year-of-publication time gap is there as this market is changing over time.

SURVEY
Perception and expectation of customer in real estate

Q1. What is your price range for purchasing an apartment ? 20 30 lakhs 30 40 lakhs 40 50 lakhs 50 above

Q2. What type of apartment are you interested in ? Studio apartment Economy apartment Duplex apartment Semi luxuries apartment Luxuries apartment

Q3. How much square feet are you seeking ? 900 950 Sft. 1050 1250 Sft. 1250 1350 Sft 1350 1550 Sft 1550 3000 Sft

Q4. What type of location are you interested in ? Indrapuram Vaishali Vasundhara Rajnagar extension Gandhi nagar Nehru nagar Avantika extension Earthala Govindpuram

Others

Q5. How many facilities are you expecting in your apartment ? Good communication Security Fittings Interior design Car parking Community hall room Generator Sufficient ventilation other

Q6. What kind of factors effect you during in apartment purchase decision? Please rate the factors of each of the following information?

Liker scale
Strongly Agree (5) Agree (4) Neither Agree nor Disagree(3) Disagree (2) Strongly Disagree (1)

Factors

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

Location Quality Price Interior design Size

Q7. What are the dilemmas you face when you are selecting a developer companies ? please rate the factors of each of the following information?

Liker scale
Strongly Agree (5) Agree (4) Neither Agree nor Disagree (2) Strongly Disagree (1)

Disagree(3)

Factors

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

Quality Goodwill Price Size Relative reference Q8. Do u considered about quality ? If is it then by what source ?please rate the sources of each of the following information ?

Liker scale
Strongly Agree (5) Agree (4) Neither Agree nor Disagree(3) Disagree (2) Strongly Disagree (1)

Yes No Sources Strongly Agree Agree Neither Agree nor Disagree Disagree Strongly Disagree

Self perception Expert opinion ISO certified Advertisement and promotion Relative reference

Q9. Which brand name apartment would you like to purchase ? Companies have mentioned below? Civitech housing india Pvt. Ltd. SVP group VVIP addresses Landcraft developers Pvt. Ltd. Panchsheel buildtech Pvt. Ltd. Supertech Livingston crossing republic Ansal elegance Wave city Nirala developers Pvt. Ltd. other

Q10. What kind of facilities do you want from developer companies ? please rate the facilities of each of the following information ?

Liker scale
Strongly Agree (5) Agree (4) Neither Agree nor Disagree(3) Disagree (2) Strongly Disagree (1)

Facilities

Strongly Agree

Agree

Neither Agree Disagree nor Disagree

Strongly Disagree

Timely handover Quality maintaining Installment pay Bank loan After sales service

Q11. If you have given two chooses between land and apartment what would you like to prefer and for what purpose ? Purchase an apartment

Purchase a land and construct own building

Q12. What are the factors do you fear about purchasing an apartment from real estate companies ? please rate the factors of each of the following information?

Liker scale
Strongly Agree (5) Agree (4) Neither Agree nor Disagree(3) Disagree (2) Strongly Disagree (1)

Factors

Strongly Agree

Agree

Neither Agree nor Disagree

Disagree

Strongly Disagree

Timely handover of apartment Low quality of fittings and raw material Proper apartment allotment according to the diagram Breach of commitment by the developer company Utilities approval (water , gas , electricity , city corporation)

Findings and analysis

1. What is your price range for purchasing an apartment ?

Budget: A budgeted amount is the expected amount a customer keeps aside. In

this section, we are interested to know the budgeted amount kept by the customers for the purpose of buying an apartment constructed by a typical real estate developer company. In the survey it was found that maximum number of consumers (50%) budget for an apartment is 40 50 lac . Also, a substantial number of consumers (30%) has a budget of more than 50 lac, whereas (20%) of consumers budget is around 30 40 lac for purchase an apartment. This is directly related with their income level.
Table 1 budget for apartment purchase frequency 0 6 15 9 30

Budget in lac 20 30 lac 30 40 lac 40 50 lac 50 above Total

percentage % 0% 20% 50% 30% 100%

Example of histogram

2. What type of apartment are you interested in ?

Types of apartment: Types of apartment are also an important factor in

consumers preference in terms of an apartment. Because there are several types of apartments and consumers can purchase any type of apartment based on their need, income and budget. So it is important to find out that which type of apartment is more popular among the consumers. It was found that about (37%) consumers prefer economy apartment, (30% )customer prefer Semi Luxuries apartment. On the other hand duplex apartment (20%) and luxury apartment (13%) are more preferable to wealthy customers.

Table 2 preference of apartment type Apartment type Studio apartment Economy apartment Duplex apartment Semi luxuries apartment Luxuries apartment Total frequency 0 11 6 9 4 30 % 0% 37% 20% 30% 13% 100%

3. How much square feet are you seeking ?

Size of apartment: Size is another very important factor of
consumers preference when it comes to apartment. It is important to consider because consumers budget is related with the apartment size. The larger the apartment size the price of apartment is also high. In terms of Size, majority of the consumers prefer (37%) prefer 1250 1350 Square feet. Next majority of customers prefer 1350 1550 Sft (30%). Also, there is a strong demand for even smaller flat (20%) and less demand for larger flat (13%).

Apartment Size (Square feet) 900 950 Sft. 1050 1250 Sft. 1250 1350 Sft. 1350 1550 Sft. 1550 3000 Sft. Total

Table 3: Preferable Size of Apartment among Consumers Frequency Percentage 0 0% 6 20% 11 37% 9 30% 4 13% 30 30%

4. What type of location are you interested in ?

Preferable Location in ghaziabad city: Location of the apartment is

one of the most important factors of consumers preference in terms of an apartment. People try to move to those locations where communication facility is good and security is high. Naturally price is also related with the good location. So it is important to find out that which locations are more preferable to the consumer for their apartment. From the table it can be stated that indrapuram is a top preference (16%). This is because this area is one of the most prestigious areas in ghaziabad city. This is followed by vaishali and vasundhara R/A (14%), rajnagar extension and Gandhi nagar R/A (10%), Nehru nagar and avantika extension (6.7%). govindpuram (3.3%). No one interested in earthala (0%) Then (20%) of the consumers prefer other location from the abovementioned area such as Mohan nagar , ambedkar road etc.

Location Name

Table 4: Percentage of respondents selecting each Location Frequency Percentage

Indrapuram vaishali vasundhara Raj nagar extension Gandhi nagar Nehru nagar Avantika extension govindpuram earthala other Total

5 4 4 3 3 2 2 1 0 6 30

16% 14% 14% 10% 10% 6.7% 6.7% 3.3% 0% 20% 100%

5. How many facilities are you expecting in your apartment ? Preferable Facilities in an Apartment: Facilities of apartment are also
an important factor of consumers preference in terms of an apartment. Facilities are actually design and development related features which makes one apartment project different from others and one company from other. Thats why it is important to know that which types of facilities are most preferable to the apartment purchaser. From the table it can be stated that good communications (23%) is the most desired facility followed by fittings (17%) and Security (20%). Then come interior design (10%) and car parking (10%). Generator and ventilation also are important (6.7% and 3.3% respectively).

Name of the Facilities

Table 5: Percentage of respondents selecting each Facility Frequency

Percentage

Good communication security Fittings Interior design Car parking Community hall Generator ventilation others Total

7 6 5 3 3 2 2 1 1 30

23% 20% 17% 10% 10% 6.7% 6.7% 3.3% 3.3% 100%

6. What kind of factors effects you during in apartment

purchase decision ?

Factors related to Purchase Decision: Several key factors came up at

the forefront in the test or pilot survey. In the final questionnaire some factors were given to the customers and were told to rate the factors in a Likert type preference scale, where score of 5 means most important. From the table we can see that Location and Quality of the work are most important (3.6 and 3.4), followed by price (3.1). Here, one interesting thing came out that price is not the number 1 factor though most of the customers prefer economy budget apartment.

Factors Location Quality Price Interior Design Size

Table 6: Preference of different Factors in purchasing apartment Mean score 3.6 3.4 3.1 2.9 2.7

Working note

Calculation of mean from likert scale method

For this example, we'll use a 5-point rating scale question. The weights assigned to each answer choices are shown in parentheses: Responsibilities are shared fairly among your team members. Strongly Disagree (1) Disagree (2) Neither Agree nor Disagree (3) Agree (4) Strongly Agree (5) After collecting responses to the survey, the results will look something like this.
Neither Disagree Agree nor Disagree Agree

Strongly Disagree

Strongly Agree

Total

Average Rating

Responsibilities are shared fairly among your team members.

20.45% 9

27.27% 12

20.45% 9

11.36% 5

20.45% 9

44

2.84

The average rating of 2.84 indicates that the average sentiment among respondents is that responsibilities are not shared fairly among their team members. The average rating was calculated as follows:

(9*1) + (12*2) + (9*3) + (5*4) + (9*5) 44 125/44 = 2.84

 Location :(10*5)+(7*4)+(6*3)+(4*2)+(3*1) = 107 = 3.6 mean score 30 Quality :(9*5)+(6*4)+(5*3)+(5*2)+(5*1) = 99 = 3.4 mean score 30 Price :(8*5)+(6*4)+(5*3)+(5*2)+(6*1) = 95 = 3.1 mean score 30 Interior design :(6*5)+(7*4)+(4*3)+(5*2)+(8*1) = 88 = 2.9 mean score 30 Size :(4*5)+(6*4)+(5*3)+(8*2)+(7*1) = 82 = 2.7 mean score 30 30 30 30 30 30

7. What are the dilemmas you face when you are selecting a

developer companies ?
Factors in Selecting Developer Company: Selection of a good developer company
is an important factor to a consumer for purchase an apartment. There are so many developer companies that a consumer may easily get confused about which company to select. Same as above, several key factors came up in the initial survey. Then these factors were given to the customers for preference rating. From the table we see that Quality of the project and companys existing goodwill are the most important factor followed by price and reference of the relatives.
Table 7: Factors preferred in selecting developer company (5 = most important, 1 = least important)

Factor Quality Goodwill Price Size Relatives reference

Mean score 3.8 3.7 3.5 3.1 2.7

8. Do u considered about quality ? If is it then by what source ?

How customers determine about quality: In the previous table, it is seen that most of the consumers are more concerned about quality rather than price. Now it is important to know how consumers determine or decide on quality or for what factors consumers think some apartment is of better quality than others. From the table it is seen that maximum consumer decide on their own perception of quality. Expert opinion also is almost equally important though. Advertisement and promotion is less important a factor than other factors to form the decision on quality.

Table 8: Factors related to Quality Determination (5 = most important, 1 = least important)

Factors Self perceptions Expert opinion ISO certified Advertisement and promotion Relative reference

Mean score 3.5 3.2 3.1 2.8 2.5

9. Which brand name apartment would you like to purchase ?

Companies have mentioned below?
Company Brand Selection: Selecting specific Developer Company is an important
factor in the overall apartment purchase. All other preferences come down to selection of a brand that is trusted to have all those preferred qualities. This was done through non guided brand recall technique. Customers were asked to name the brand .

Table 9: Consumer preference about Developer Company Brand

Company name Civiltech housing india pvt.ltd SVP GROUP VVIP addresses Landcraft developers pvt. ltd Panchsheel buildtech pvt. ltd Supertech Livingston crossing republic Ansal elegance

frequency 2 3 4 2 0 5 4

Percentage 6.7% 10% 14% 6.7% 0% 16% 14%

Wave city Nirala developers pvt. ltd other

3 1 6

10% 3.3% 20%

10.

What kind of facilities do you want from developer

companies ?
Desired Services or Facilities from a particular company (Brand): Facilities from
Developer Company are an important aspect of consumer purchase decision process. It is important to find out what kind of facilities consumers want from the Developer Company. In the questionnaire some criteria are given for rating along the scale ranging from 1 to 5. From the table, it can be said that timely hand over or completion of the apartment project is the most important service that customers want (3.8). It is followed by other factors like quality maintaining across the projects, installment facility, and link to bank loan to purchase the apartment.

Table 10: Factors important in selecting developer brand (5 = most important, 1 = least important)

factors Timely handover Quality maintaining Installment payment Bank loan After sales service

Mean score 3.8 3.7 3.5 2.8 2.7

11.

If you have given two chooses between land and

apartment what would you like to prefer and for what purpose ?
Preference between apartment and land: Many customers have a dilemma
between purchase of an apartment or a land. Some think that purchase of an apartment from a developer company is advantageous. Some consumers think that purchase of a land and then construct own building is better. But it came out so that majority of the customers, around seventy percent prefer purchase of an apartment to a land. The reasons mentioned were: purchasing apartment has no construction hassle and also saves ones time needed to oversee a construction oneself; Increasing, skyrocketing land price makes it difficult to purchase a land; increased and volatile price of construction related raw materials is also one reason, that is, once started with a predetermined budget it is difficult to manage with own investment. On the contrary 36% consumers prefer purchase a land and construct own building. The reasons stated were: Control over asset; proud owner of a land and building; it is a source of income etc.
Table 11: Consumers preference about Land or Apartment Purchase

Land vs apartment Purchase an apartment Purchase a land and constructs own building

frequency 19 11

Percentage 64% 36%

12. What are the factors do you fear about purchasing an apartment from real estate companies ?

The risk factors perceived by the customers in purchasing apartment: It means

what the factors are that consumers fear about purchasing apartment from a real estate company. The result was totally shocking. Almost all respondents were found to be equally concerned about the following factors:
Table 12: Perception of Risk factors

factors Timely handover of apartment Low quality of fittings and raw materials Proper apartment allotment according to the diagram Breach of commitment by the developer company Utilities approval (water , gas , electricity , city corporation)

Mean score 4.1 3.5 3.4 3.3 2.9

Policy Implications and Conclusion

This study can be considered as a little contribution to the understanding the real estate industry, According to a survey conducted by the City Mayors Foundation,
an global think tank on urban affairs, there are 37 Indian cities among the world's 300 fastest growing urban centres . The Indian city of Ghaziabad is the second fastest growing city in the world. The general parameter used to consider the growth of a city is the rate of its urbanization

Policy makers can take the factors into consideration while making related regulatory policies and framework. Government regulators should form appropriate policy to safeguard the interests of the customers. For

example, government should provide clear easy to understand guideline for the citizens about how to evaluate the quality of the projects, how to check the authenticity of the projects and the companies, some cost estimation to compare the market price etc.
On the other hand, real estate companies and developers can take these factors into consideration while making their business strategy and marketing strategy. This study will help them to understand consumers better by knowing their preferences in different dimension. In many cases consumers have several negative ideas about the developer company such as late handover, low quality, allotment problem etc. Thats why it is very important for the developer company to overcome these problems and make a positive image in the consumer mind.