CHAPTER-I

Introduction

1.1 OVERVIEW OF INDUSTRY AS A WHOLE

Real Estate Industry in India:

The size of the real estate industry in India is estimated by FICCI, to be around US$
12 billion. This figure is growing at a pace of 30% for the last few years. Almost 80 %
of real estate developed in India, is residential space and the rest comprise office,
shopping malls, hotels and hospitals. This double-digit growth is mainly attributed to
the off shoring business, including high-end technology consulting, call centres and
software programming houses which in 2003-04, is estimated to have accounted for
more than 10 million square feet of real estate development. This is the ideal time to
invest in the country as policy makers have begun to emphasize on developing
adequate infrastructure for the country. Real estate companies would also do well to
maximize their own performance and operational efficiency.
Real estate business was one of the key drivers of growth before we witnessed the
present economic slowdown. Now, with companies trying to consolidate their
positions and finding effective means of sustaining growth, the management of real
estate has emerged as one of the key challenges for the corporate sector. This Sector is
already overburdened with taxes; any further imposition of taxes in any form would
adversely affect the growth of this sector of the economy. The importance of the Real
Estate sector, as an engine of the nations growth, can be gauged from the fact that it
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is the second largest employer next only to agriculture and its size is close to US $ 12
billion and grows at about 30% per annum. Five per cent of the countrys GDP is
contributed by the housing sector. In the next three or four or five years this
contribution to the GDP is expected to rise to 6%. The Real Estate Industry has
significant linkages with several other sectors of the economy and over 250 associated
industries. One Rupee invested in this sector results in 78 paisa being added to the
GDP of the State. A unit increase in expenditure in this sector has a multiplier effect
and the capacity to generate income as high as five times. If the economy grows at the
rate of 10% the housing sector has the capacity to grow at 14% and generate 3.2
million new jobs over a decade.
Next to Agriculture, Real Estate is the second largest employer in the economy. It
comprises of four sub-sectors housing, retail, hospitality, and commercial. While
housing contributes to five-six percent of the countrys GDP, the remaining three subsectors are also growing at a rapid pace, meeting the increase in infrastructural needs.
Responsible for 7-8 percent of global cement production, India is the second largest
cement market in the world, and also an exporter to 30 countries. According to the
Cement Manufacturers Association (CMA), there are 39 large cement plants and 365
mini and white cement plants in the country.
The real estate sector in India assumed greater prominence with the liberalisation of
the economy, as the consequent increase in business opportunities and labour
migration led to rising demand for commercial and housing space. At present, the real
estate and construction sectors are playing a crucial role in the overall development of
Indias core infrastructure. The real estate industrys growth is linked to developments
in the retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries,
economic services (hospitals, schools) and information technology (IT)-enabled
services (like call centres) etc and vice versa.
The Indian real estate sector has traditionally been dominated by a number of small
regional players with relatively low levels of expertise and/or financial resources.
Historically, the sector has not benefited from institutional capital; instead, it has
traditionally tapped high net-worth individuals and other informal sources of
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financing, which has led to low levels of transparency. This scenario underwent a
change with in line with the sectors growth, and as of today, the real estate industrys
dynamics reflect consumers expectations of higher quality with Indias increasing
integration with the global economy.
The real estate sector in India has come a long way by becoming one of the fastest
growing markets in the world. It is not only successfully attracting domestic real
estate developers, but foreign investors as well. The growth of the industry is
attributed mainly to a large population base, rising income level, and rapid
urbanization. The cities and towns in India are expanding and the space requirement
for education, healthcare and tourism provides opportunities in the real estate sector.
The industry in India contributes about five percent to the country's Gross Domestic
Product and, in the next few years, this contribution is expected to rise to six per cent.
The total revenue generated in fiscal 2011-12 stood at around 314 million USD. After
undergoing corporatisation and professionalization, today real estate is recognized as
one of the key sector contributing to the country's economic development. The Union
Budget 2013 on the other hand is looking forward to improving the sector sentiment
further and at the same time re-stimulates its growth. Real estate plays an important
role in the Indian economy, as it is the second largest employer after agriculture. The
size of the Indian real estate market is expected to touch 180 billion USD by 2020.

Riding high on the back of rapid urbanization, positive demographics and rising
income levels, the Indian real estate sector has attracted significant investment over
the past few years.
The sector that once grew at 7.8% in 2009-10 witnessed a deceleration during 201213 to 6.5% (till June 2012) owing largely to the sluggish growth of the Indian
economy, rising input costs and an overall slowdown in the global economy.
As per latest estimates, the housing sector contributes about 5% to the overall GDP
growth of the country. The Economic Survey 2011-12 shows that the housing sector
ranks fourth in terms of the multiplier effect on the economy.

As per the industry reports, the total economic value of the real estate activity in the
country ranges between US$40-45 billion, which contributes 5-6% to the GDP
growth. Of its total size, residential segment, with 90-95% size, forms the major
chunk of the market, followed by the commercial segment (4-5%) and organized retail
segment (1%).
The demographic advantage of the country and the rising thrust on infrastructure is
triggering a plethora of events, significant among which is the rising FDI in the sector.
It is estimated that the FDI in the sector will grow from the current US$4 billion to
US$25 billion within a span of 10 years. A report released by the United Nations (UN)
states that India ranks third after China and the US in terms of the most favoured
investment destination for global companies. As per the report, the FDI inflow in the
sector is expected to increase by 20% during 2012-13.

Category of real estate sector:Commercial Real Estate

Office Space

Backed by strong infrastructure

Promoted by increasing demand from IT industry
Sharply higher land prices in the city centers.

Retail Space

Growth of 25- 30% expected in the organized retail sector (malls and

multiplexes) leading to an increased demand in real estate

Affected by government policies for foreign retailers
Pronounced in the Tier I, Tier II and Tier III cities.

Hospitality Space

Increasing demand of lodging in commercial cities such as Bangalore,

Mumbai, Delhi etc. from business travellers.

Established brands in this sector include Asian Hotels, Indian Hotels, ITC, Le
Meridien etc are in expansion mode with many new players such as Accor
Group, Marriot, Choice, IHG Group

Residential Real Estate

Development triggered by:

o Low per capita housing stock
o Rising disposable income
o Easy availability of finance
Currently growing at 30-35% per annum
Driven by retail investors who view real estate as an attractive investment

option as compared to mutual funds and stocks

Geographically widespread with townships being built in both the metros and
the tier II and III cities

Factors driving growth in this sector

Robust economic growth is driving the demand for commercial property.

Urbanization and growing household income is boosting demand for residential real
estate.

Hospitality space is gaining from increased flow of foreign tourists to the country
(CAGR of 6.6 percent during 2005-10).

FDI in real estate and construction is on an uptrend, accounting for 22 percent of total
FDI. 110 deals were closed in the sector between 2001 mid 2011.

Housing segment growth is leading to higher demand for cement for homebuilding.

Governments 12th Five Year Plan focuses on increasing infrastructure (upgraded

airports, ports, railway expansion, etc.) to drive construction activity.

Rise in commercial and retail spaces, along with hotels in near future, will account for
increased demand for cement.
Government initiatives
Introduction of few policies by the Government is allowing the growth of the real
estate and construction sector:

Housing finances are becoming feasible with the housing loan limit being
raised to US $52080 for priority sector lending.
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US$ 625 million have been allocated for the Rural Housing Fund to provide
homes to economically weaker sections.

FDI up to 100 per cent is allowed with government permission for developing
townships and settlements. FDI up to 100 per cent is also allowed in hotel and tourism
sector through automatic route.
Demand for professionals
CMA predicts that cement production of one million tonnes will generate downstream
employment for 50,000 people. According to the 'Real Estate and Construction
Professionals in India by 2020' study by Royal Institute of Chartered Surveyors
(RICS) in November 2011, there is a demand-supply gap in the order of 82-86 percent
in the number of professionals and the skill sets for the core, namely civil engineering,
architecture and planning. The study indicates a supply-demand gap of 44 million
core professionals by 2020.

1.2 PROFILE OF THE ORGANIZATION

"RG

Group, one of the leading Real Estate Company in Delhi, is known for values

like trust, high quality standards & client satisfaction. Groups modest journey began
in the year 2000 and after over a decade, the Group has taken a shape of a highly
proficient and customer centric corporate entity.
RG Group, under its flagship company Rajesh Projects (India) Pvt. Ltd, has touched
new skies and defined new dimensions in the Real Estate Sector. Today, the group is
rapidly evolving into a conglomerate that is known for quality, reliability and valuefor-money real estate solutions.
Under the visionary leadership & guidance of Mr. Rajesh Goyal, the Group is
changing the real estate scenario for good. With its philosophy of providing customers
with "greater transparency & simplified buying procedures, the Group in popularity
is growing leaps and bounds.
Today RG Group is more than a decade old company and in retrospective, the group
has seen the most challenging yet exciting times in these years. RG group
has successfully executed and delivered 14 commercial & retail projects at prime
business locations in Delhi.
RG Group is a highly professional and process-driven company with its finger on the
pulse of its customers. All RG developments are in compliance with international best
practices and come with prime location, excellent construction, efficient maintenance

& time bound delivery as core essentials. RG Group has come a long way continuing
a tradition of trust & commitment. It is a financially robust company with excellent
understanding with bankers and financial institutions. It has collaborated with the
finest minds in the field of architecture and construction. After successfully executing
its business model in the commercial and retail sectors, RG Group is now extending
its commitment & dedication to the residential sector.

MANAGEMENT TEAM
Chairman, Mr. Jai Bhagwan Goyal
Their guiding force, Mr. Jai Bhagwan Goyal, with his enriched experience of more
than 40 years in construction, is also a qualified Civil Engineer.
Quality Construction and Timely Delivery have been the mantra for his success
which he in stills in the group.
Managing Director, Mr. Rajesh Goyal
Our driving force, Mr. Rajesh Goyal, with his invaluable experience in the industry
for over 20 years has nurtured and transformed RG Group into a trusted name.
With his great vision and motivation skills he continues to propel RG Group on the
path of unparalleled success.
Executive Director, Mr. Aman Gupta
Aman Gupta, a Management Graduate from University of Sheffield (UK), is
instrumental in aligning the company towards achieving its vision, mission and goals.
Owing to Group's commitment towards growth and customer-centric values, as a
visionary and a dynamic leader, he handles Group's Marketing and Branding
activities. He brings a lot of dynamism, young approach and commitment to the table
and has strong sense of direction and purpose.
VISION:

To shine as the brightest star in the skies of the Indian real estate world.

Sustain and enhance our growth across the country

MISSION:

To be established as a distinguished player in the real estate playground

Keep offering value for money to our customers

Simplifying real estate ownership for the community

Remain focused on the Three Cs: Customer Satisfaction, Construction Quality and
Customer transparency

Integrity, Commitment and Ethical service

RG Group Milestones
1988-1993
1988: Started Operations as an Industrial Enterprise. Mr.Rajesh Goyal leading from
the front.
1993: Diversified into the field of Real Estate
2000
Adopted BRAND NAME RG
After nearly seven years of cementing foundation and proving mettle in the field of
infrastructure development, adopted the brand name RG
INCORPORATED: Rajesh Projects (India) Pvt Ltd., flagship company of RG
Group
2001
Delivered RG COMPLEX at Sector 8 Rohini, Delhi
2002
Delivered RG COMPLEX at Mayur Vihar, Phase II, Delhi.
2003
Delivered RG COMPLEX at Sector 14, Rohini, Delhi.
2004
Delivered RG COMPLEX at Sector 5, Dwarka, Delhi.
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At DC Chowk, Sector 9, Rohini, Delhi.

Delivered RG COMPLEX II at Sector 14, Rohini, Delhi
2005
Delivered RG COMPLEX at Motia Khan, Paharganj, Delhi.
2006
Delivered RG BAZAR at Sector 11, Rohini, Delhi.
2007
Delivered RG MALL at Sector 9, Rohini, Delhi.
Delivered RG CITY CENTRE at Motia Khan, Paharganj, Delhi.
2009
Delivered RG CITY CENTRE at Lawrence Road, Keshav Puram, Delhi

Delivered RG SQUARE at IP Extension, Patparganj, Delhi.

Delivered RG TRADE TOWER at Netaji Subhash Place, Pitampura, Delhi.
INCORPORATED: RG Residency Pvt Ltd,

residential subsidiary of Rajesh

Projects (India) Pvt.Ltd.

2010
Delivered RG METRO ARCADE at Sector 11, Rohini, Delhi
Residential Project launched
RG Residency launched in January 2010
RG Luxury August 2011

Their Projects:RG Group has successfully completed and delivered 14 projects in Delhi and NCR
region and it is still counting. All this was possible because of Group's commitment to
values like Quality Construction, On-Time delivery, Total Transparency & Customer
Satisfaction. Today RG Group proudly enjoys the trust and affection of its millions of
patrons.

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RG Luxury Homes

RG Luxury Homes is "Noida's Landscaped Podium Residential Complex ". Spread

across 18.4 acres, the complex offers 2 & 3 bedroom apartments & penthouses,
cocooned amongst lush green landscaped surroundings. Designed to meet the needs of
the young and outgoing middle class.

Features:

Sale Price on Built up Area basis

Residential Complex in 18 acres.

Only 11 towers i.e. one tower per 1.5 acre

Huge 7 acre central Landscape garden on podium level.

Each tower to have 4 spacious lifts.

Vehicular movement free raised landscape podium

1 Acre Forest.

Floating Garden.

Open air theatre, 3 tier security system with CCTV provision.

Dedicated childrens play area, Cycling Track & Jogging Trail.

Area earmarked for Tennis, Badminton & Basketball court.

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RG Residency

RG Residency is "Noida's first Landscaped Podium Residential Complex ". Spread

across 12.75 acres, the complex offers 1, 2 & 3 bedroom apartments, cocooned
amongst lush green landscaped surroundings. Designed to meet the needs of the
young and outgoing middle class.

Features:

Sale Price on Built up Area basis

Residential Complex in 12.75 acres.

Only 12 towers i.e. one tower per acre

Each tower to have 3 spacious lifts.

3 side open corner plot adjoining green belt.

Vehicular movement free raised landscape podium

3 tier security system with CCTV provision

Vaastu compliant layout plan

Eco-friendly construction with concept of green building

Water harvesting & Solar Energy utilization.

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1.3 PROBLEMS OF THE ORGANIZATION

One of the most important problems that arise is the delay in possession of Projects.
One of the major problems is high level of competition in the market place in the
same segment in which company is dealing which creates problem to survive in this
highly competitive world.
There are many companies that provide much better apartments in lower price which
is like a stone in the way of success of organisation.

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1.4 COMPETITION INFORMATION

RG Group has a very tough competition in Indian market with some Indian players in
his category. Those companies are as follows:-

Supertech Group:Supertech Group, founded in 1988, has set new trends and benchmarks of
architectural excellence in the contemporary global scenario. An ISO 9001:2000
certified company; Supertech has successfully completed 20 years in real estate
business and today it has revolutionized the real estate arena. Under the dynamic and
pragmatic leadership of Mr. R.K.Arora, Chairman & CMD and experienced Board
Members, Supertech Group is scaling new heights and touched the horizon of
excellence. Their vision and entrepreneurial acumen and have taken the group to the
greater heights.

Tulip Group:The Tulip Group is a company which has achieved excellence through its
foresightedness and expertise in its field. The focused vision, undivided dedication
and constant efforts of the company help it to develop strategies for its ceaseless
growth in the sphere of real estate and construction.
Tulip Group is promoted by Shri Praveen Jain, the Chairman and Managing Director
of the company, a first generation entrepreneur having more than 17 years of
experience in construction, real estate and development. His vision, dedication, hard
work, objective approach and leadership qualities changed the future of Tulip
Infratech Pvt. Ltd to make it as an ISO 9001-2000 company.

Amrapali Group:Focusing on Greater Noida, Indirapuram and other East Delhi locations, the Amrapali
Group has completed projects spread over more than 100 acres. What makes the
15

Amrapali group stand out is its steadfast dedication to quality and efficient service.
Established by Mr. Anil Sharma, a civil engineer from IIT Kharagpur and a former
government employee, Amrapali is run by a group of highly competent engineers and
over 50 professional and 150 supervisory-grade employees. Amrapali understands the
importance of quality and ensures the best of technology, planning, design and
construction for all of its projects.

Jaypee Group:With a single minded focus in mind, to achieve pioneering myriads of feat in civil
engineering Shri. Jaiprakash Gaur, Founder Chairman of Jaiprakash Associates
Limited after acquiring a Diploma in Civil Engineering in 1950 from the University
of Roorkee, had a stint with Govt. of U.P. and with steadfast determination to
contribute in nation building, branched off on his own, to start as a civil contractor in
1958, group is the 3rd largest cement producer in the country. The groups cement
facilities are located in the Satna Cluster (M.P.), which has one of the highest cement
production growth rates in India.

Ansal API :Established in 1967 as a family business, Ansal API today is among the leading
Realty and Infrastructure companies of India. A widely reputed and professionally
managed Organisation, Ansal API currently operates in a range of business verticals
such as Integrated Townships, Condominiums, Group Housing, Malls, Shopping
Complex, Hotels, SEZs, IT Parks and Infrastructure and Utility Services.
Besides expanding the business sectors, the Company has been fast expanding the
geographical presence also in the last over four decades. In line with its motto of
radically improving the lifestyle standards of people through creating state-of-the-art
realty and infrastructure facilities and projects, Ansal API is committed to take on
more and more challenging tasks in its areas of operations with increased focus and
dedication in the coming years.

Parsvnath Developers:-

16

Parsvnath is a company whose business philosophy lies in the commitment to creating

architectural marvels using state-of-the-art technology and global architectural,
construction and business practices. We are passionate about providing cost-effective
and holistic solutions for our customers while creating and adding value for our
partners and stakeholders. Our unwavering focus on these factors catapulted
Parsvnath Developers Limited into the top echelons of the Indian Real Estate and
Construction Industry in 2007.

Unitech Group:Established in 1972, Unitech is today a leading real estate developer in India. Known
for the quality of its products, it is the first developer to have been certified ISO
9001:2000 in North India and offers the most diversified product mix comprising
residential, commercial/IT parks, retail, hotels, amusement parks and SEZs.
The well-recognised brand was yet again conferred with the title of "Superbrand" by
Super brands India in 2009. The Company is also the recipient of the CW Architect
and Builders Award, 2008 for being one of India's Top Ten Builders.

Vatika Group:Vatika believes in delivering value to all our stakeholders by creating products and
services that enhance the value of life.
While real estate is our business, we consider ourselves a service industry and our
service is to design for life your life. We aim to create spaces that enable you to
focus on the things you consider important whether it is building a business,
growing a family, connecting with friends, or simply finding the time and space to
pursue your dreams.
Our vision is to create homes, schools, hotels, restaurants, retail spaces, commercial
spaces and business centres that uphold unparalleled quality and reflect timelessness

3C Company:The 3C Company has rapidly established itself as the leader of Green Revolution in
Delhi NCR. The pride of being the only team in Asia Pacific to have Three Platinum
17

and Four Gold Rated LEED Certified Green buildings by IGBC (Indian Green
Building Council) under the umbrella of USGBC (US Green Building Council)
speaks volume about the architectural excellence and impeccable planning. And all
this is aimed towards creating sustainable habitats and work places which are energy
efficient and ecologically friendly

1.5 SWOT ANALYSIS OF THE ORGANIZATION

SWOT Analysis
1. Leading real estate company in Delhi\NCR
2. Its exposure across businesses, segments and geographies
Strength

reduces the impact of economic cycles

3. Experience of over many years in Indian retail sector with
an expertise in the field
4. Focus on affordable housing for all
5. Gain insight into the marketplace and a better understanding
of internal and external factors which could impact the industry
1. Affected due to lack of regulations and effective policies
2. Majorly present only in Delhi\NCR
3. Limited brand recall as compared to some other leading

Weakness

international or Indian players

4. Intense competition and strict policies means limited market
share growth

Opportunity

1. Reduction in interest rates

2. Shortage of houses in urban area
3. Huge amount of money to be invested in construction industry in
India
4. Expansion opportunities in major developing cities and metros
1. Immense competition as India's real estate market is largely

Threats

unorganized and dominated by a large number of small players

2. Economic downturn
3. Volatility in financial markets
4. Fluctuating interest rates

18

CHAPTER-II
Research
Methodology

2.1 OBJECTIVE
The following are the main objective of study1. To determine the customers perception.
2. To determine the customers expectations.
19

3. To determine the problems faced by the customers while buying a

house.

2.2 SCOPE OF THE STUDY

This project helps company to know the perception and expectation level of
the consumers so that they can satisfy their customer in a much better way. It
will also help them in knowing its market condition and level of competition.
Also it helps in creating awareness to consumers regarding property
documents and in promotion of their services. In order to accomplish the
objectives of the project a survey has been conducted amongst customers of
the real estate market. The survey is based on questionnaire filling method and
limited to some parts of Delhi and NCR region. The survey is restricted to the
information needed to show legal, technical and financial transparency
between project developer and customer.

2.3 MANAGERIAL USEFULLNESS OF STUDY

The study helps in finding the weaknesses, if any in the organization

and the steps taken to avoid them.

The suggestions from the employees will help management to make

changes in the desired field.

2.4 METHODOLOGY
The objective of the present study can be accomplished by conducting a
systematic market research. Market research is the systematic design,
collection, analysis and reporting of data and findings that are relevant to
different marketing situations facing the company. The marketing research
methodology that has been adopted in the study consists of the following
stages:

20

Research Instruments: The research instruments generally used to collect the

primary data are Questionnaire.

Questionnaires: Questionnaires are formal set of questions prepared to collect

the required information. This is one of the most effective and popular
techniques used in surveys. However, we had to be careful when drawing up
questionnaires. Before deciding on the questions, it was important to
understand the exact nature of information required and who should be
interviewed. The knowledge level of target respondents was kept in mind,
while drawing of questions. The major junk of the customer was basically
from urban background. The questionnaires were designed in English.

Sampling: The sample is a subset of a unit of a population, collected as a

representation of it. The proper sample design is essential in marketing
research. The sample has to be collected in such a way, that it represents the
population. The sample was taken from all the segments of the customers.

Sample Size: The size of the sample is an important element in the research
process as it has a direct affect on the result of the research. As a size of
sample increases, accuracy and reliability of the research results also
increases. However, the cost of the research also increases. Therefore, we need
to make a trade off between the accuracy and cost of research. Type of project
was another important aspect of deciding the sample size.
The data is collected from the 50 customers.

The marketing research process that has been adopted in the study consists of
following stages:

Defining the problem and the research objective:

21

The research objective states what information is needed to solve the problem.
The objective of the research is to derive the opinion of the users and opinion
of the potential customers.

Developing the research plan:

Once the problem is identified, the next step is to prepare a plan for getting the
information needed for the research. The present study has adopted the
exploratory approach wherein there is a need to gather large amount of
information before making a conclusion.

Collection and Sources of data:

Market research requires two kinds of data, i.e., Primary data and Secondary
data. Being a firm in service industry, data gathering involved usage of both
primary and secondary data though there has been an extensive usage of
primary data. Well- structured questionnaires were prepared for both the
existing and the potential customers. There were personal interview surveys
mostly in-home (door-to-door) surveys. The questionnaires contained both
open-ended and close-ended questions. Secondary data have been collected
from various journals, books and web sites.

Primary Data: - Primary data are collected through questionnaire method

which is design to keep in view the objective of the study.
Secondary Data: - Secondary data is collected through internet sources,
research papers and published reports by various institutions.

Analyze the collected information:

This involves converting raw data into useful information. It involves
tabulation of data, using statistical measures on them for developing and
calculating the averages.
22

Report research findings:

This phase marks the culmination of the marketing research effort. The report
with the research findings is a formal written document.

Area of study:The data has been collected from the customers of Delhi region. The research
was conducted from the customers from North Delhi.

Tools and Analysis:Percentage Analysis: - Percentage method refers to a specified kind which is
used in making comparison between two or more series of data. Percentages
are based on descriptive relationship. It compares the relative items.
Since the percentage reduces everything to a common base and
thereby allow meaning comparison.
Percentage = Number of respondents x 100
Total number of respondents

2.5LIMITATIONS
50 samples does not reflect the opinion of customers as whole
Time limit was another limitation and there may be possibility of committing a
general error
The project report is largely based on the secondary data
Finding and conclusion based on my knowledge and experience of the
respondent may sometime subject to bias.

23

CHAPTER-III
Conceptual
Discussion

Consumer Perceptions

24

Definition
Consumer perception applies the concept of sensory perception to marketing and
advertising. Just as sensory perception relates to how humans perceive and process
sensory stimuli through their five senses, consumer perception pertains to how
individuals form opinions about companies and the merchandise they offer through
the purchases they make. Merchants apply consumer perception theory to determine
how their customers perceive them. They also use consumer perception theory to
develop marketing and advertising strategies intended to retain current customers -and attract new ones.

Perception (from the Latin perceptio, percipio) is the organization, identification, and
interpretation of sensory information in order to represent and understand the
environment. All perception involves signals in the nervous system, which in turn
result from physical stimulation of the sense organs. For example, vision involves
light striking the retinas of the eyes, smell is mediated by odor molecules and hearing
involves pressure waves. Perception is not the passive receipt of these signals, but can
be shaped by learning, memory, and expectation. Perception involves these "topdown" effects as well as the "bottom-up" process of processing sensory input. The
"bottom-up" processing is basically low-level information that's used to build up
higher-level information (i.e. - shapes for object recognition). The "top-down"
processing refers to a person's concept and expectations (knowledge) that influence
perception. Perception depends on complex functions of the nervous system, but
subjectively seems mostly effortless because this processing happens outside
conscious awareness.

Since the rise of experimental psychology in the late 19th Century, psychology's
understanding of perception has progressed by combining a variety of techniques.
Psychophysics measures the effect on perception of varying the physical qualities of
the input. Sensory neuroscience studies the brain mechanisms underlying perception.
Perceptual systems can also be studied computationally, in terms of the information
25

they process. Perceptual issues in philosophy include the extent to which sensory
qualities such as sounds, smells or colors exist in objective reality rather than the
mind of the perceiver.

Although the senses were traditionally viewed as passive receptors, the study of
illusions and ambiguous images has demonstrated that the brain's perceptual systems
actively and pre-consciously attempt to make sense of their input. There is still active
debate about the extent to which perception is an active process of hypothesis testing,
analogous to science, or whether realistic sensory information is rich enough to make
this process unnecessary.
The perceptual systems of the brain enable individuals to see the world around them
as stable, even though the sensory information may be incomplete and rapidly
varying. Human and animal brains are structured in a modular way, with different
areas processing different kinds of sensory information. Some of these modules take
the form of sensory maps, mapping some aspect of the world across part of the brain's
surface. These different modules are interconnected and influence each other. For
instance, the taste is strongly influenced by its odor.
Process and terminology
The process of perception begins with an object in the real world, termed the distal
stimulus or distal object. By means of light, sound or another physical process, the
object stimulates the body's sensory organs. These sensory organs transform the input
energy into neural activitya process called transduction. This raw pattern of neural
activity is called the proximal stimulus. These neural signals are transmitted to the
brain and processed. The resulting mental re-creation of the distal stimulus is
the percept. Perception is sometimes described as the process of constructing mental
representations of distal stimuli using the information available in proximal stimuli.
An example would be a person looking at a shoe. The shoe itself is the distal stimulus.
When light from the shoe enters a person's eye and stimulates their retina, that
stimulation is the proximal stimulus. The image of the shoe reconstructed by the brain
of the person is the percept. Another example would be a telephone ringing. The
26

ringing of the telephone is the distal stimulus. The sound stimulating a person's
auditory receptors is the proximal stimulus, and the brain's interpretation of this as the
ringing of a telephone is the percept. The different kinds of sensation such as warmth,
sound, and taste are called "sensory modalities"
Psychologist Jerome Bruner has developed a model of perception. According to him
people go through the following process to form opinions:
1. When a perceiver encounters an unfamiliar target we are opened different
informational cues and want to learn more about the target.
2. In the second step we try to collect more information about the target.
Gradually, we encounter some familiar cues which help us categorize the
target.
3. At this stage the cues become less open and selective. We try to search for
more cues that confirm the categorization of the target. At this stage we also
actively ignore and even distort cues that violate our initial perceptions. Our
perception becomes more selective and we finally paint a consistent picture of
the target.

According to Alan Saks and Gary Johns, there are three components to perception.
1. The Perceiver, the person who becomes aware about something and comes to
a final understanding. There are 3 factors that can influence his or her
perceptions: experience, motivational state and finally emotional state. In
different motivational or emotional states, the perceiver will react to or
perceive something in different ways. Also in different situations he or she
might employ a "perceptual defence" where they tend to "see what they want
to see".
2. The Target. This is the person who is being perceived or judged. "Ambiguity
or lack of information about a target leads to a greater need for interpretation
and addition."
27

3. The Situation also greatly influences perceptions because different situations

may call for additional information about the target.
Stimuli are not necessarily translated into a percept and rarely does a single stimulus
translate into a percept. An ambiguous stimulus may be translated into multiple
percepts, experienced randomly, one at a time, in what is called "multistable
perception". And the same stimuli, or absence of them, may result in different
percepts depending on subjects culture and previous experiences. Ambiguous figures
demonstrate that a single stimulus can result in more than one percept; for example
the Rubin vase which can be interpreted either as a vase or as two faces. The percept
can bind sensations from multiple senses into a whole. A picture of a talking person
on a television screen, for example, is bound to the sound of speech from speakers to
form

percept

of

talking

person.

"Percept"

is

also

term

used

by Leibniz,Bergson, Deleuze and Guattari to define perception independent from

perceivers.
Theories
Perception as hypothesis-testing
Cognitive theories of perception assume there is a poverty of stimulus. This (with
reference to perception) is the claim that sensations are, by themselves, unable to
provide a unique description of the world. Sensations require 'enriching', which is the
role of the mental model. A different type of theory is the perceptual
ecology approach of James J. Gibson. Gibson rejected the assumption of a poverty of
stimulus by rejecting the notion that perception is based upon sensations instead, he
investigated what information is actually presented to the perceptual systems. His
theory "assumes the existence of stable, unbounded, and permanent stimulusinformation in the ambient optic array. And it supposes that the visual system can
explore and detect this information. The theory is information-based, not sensationbased." He and the psychologists who work within this paradigm detailed how the
world could be specified to a mobile, exploring organism via the lawful projection of
information about the world into energy arrays. Specification is a 1:1 mapping of
some aspect of the world into a perceptual array; given such a mapping, no
enrichment is required and perception is direct perception.

28

Perception-in-action
An ecological understanding of perception derived from Gibson's early work is that of
"perception-in-action", the notion that perception is a requisite property of animate
action; that without perception action would be unguided, and without action
perception would serve no purpose. Animate actions require both perception and
motion, and perception and movement can be described as "two sides of the same
coin, the coin is action". Gibson works from the assumption that singular entities,
which he calls "invariants", already exist in the real world and that all that the
perception process does is to home in upon them. A view known as
constructivism (held by such philosophers as Ernst von Glasersfeld) regards the
continual adjustment of perception and action to the external input as precisely what
constitutes the "entity", which is therefore far from being invariant.
Glasersfeld considers an "invariant" as a target to be homed in upon, and a pragmatic
necessity to allow an initial measure of understanding to be established prior to the
updating that a statement aims to achieve. The invariant does not and need not
represent an actuality, and Glasersfeld describes it as extremely unlikely that what is
desired or feared by an organism will never suffer change as time goes on. This social
constructionist theory thus allows for a needful evolutionary adjustment.
A mathematical theory of perception-in-action has been devised and investigated in
many forms of controlled movement, and has been described in many different
species of organism using the General Tau Theory. According to this theory, tau
information, or time-to-goal information is the fundamental 'percept' in perception.

Evolutionary psychology and perception

Many philosophers, such as Jerry Fodor, write that the purpose of perception is
knowledge, but evolutionary psychologists hold that its primary purpose is to guide
action. For example, they say, depth perception seems to have evolved not to help us
know the distances to other objects but rather to help us move around in
29

space. Evolutionary psychologists say that animals from fiddler crabs to humans use
eyesight for collision avoidance, suggesting that vision is basically for directing
action, not providing knowledge.
Building and maintaining sense organs is metabolically expensive, so these organs
evolve only when they improve an organism's fitness. More than half the brain is
devoted to processing sensory information, and the brain itself consumes roughly onefourth of one's metabolic resources, so the senses must provide exceptional benefits to
fitness. Perception accurately mirrors the world; animals get useful, accurate
information through their senses.
Scientists who study perception and sensation have long understood the human senses
as adaptations. Depth perception consists of processing over half a dozen visual cues,
each of which is based on a regularity of the physical world. Vision evolved to
respond to the narrow range of electromagnetic energy that is plentiful and that does
not pass through objects. Sound waves provide useful information about the sources
of and distances to objects, with larger animals making and hearing lower-frequency
sounds and smaller animals making and hearing higher-frequency sounds. Taste and
smell respond to chemicals in the environment that were significant for fitness in the
EEA. The sense of touch is actually many senses, including pressure, heat, cold,
tickle, and pain. Pain, while unpleasant, is adaptive. An important adaptation for
senses is range shifting, by which the organism becomes temporarily more or less
sensitive to sensation. For example, one's eyes automatically adjust to dim or bright
ambient light. Sensory abilities of different organisms often coevolve, as is the case
with the hearing of echo locating bats and that of the moths that have evolved to
respond to the sounds that the bats make.
Evolutionary psychologists claim that perception demonstrates the principle of
modularity, with specialized mechanisms handling particular perception tasks. [42] For
example, people with damage to a particular part of the brain suffer from the specific
defect of not being able to recognize faces (prospagnosia). EP suggests that this
indicates a so-called face-reading module.

30

Customer Expectations
Customer is defined as anyone who receives that which is produced by the individual
or organization that has value. Customer expectations are continuously increasing.
Brand loyalty is a thing of the past. Customers seek out products and producers that
are best able to satisfy their requirements. A product does not need to be rated highest
by customers on all dimensions, only on those they think are important.
Customer-driven strategy for improvement any management activity should
eventually lead to increased customer satisfaction...
The Canon Production System (CPS) is about:
1.

Environmentally-conscious manufacturing and logistics

2.

Quality-oriented methods

3.

Lower costs

4.

Shorter deadlines

5.

All aim for maximum customer satisfaction

7 types of customer expectation are as follows:-

1. Explicit Expectations
Explicit expectations are mental targets for product performance, such as wellidentified performance standards.
For example, if expectations for a color printer were for 17 pages per minute and high
quality color printing, but the product actually delivered 3 pages per minute and good
quality color printing, then the cognitive evaluation comparing product performance

31

and expectations would be 17 PPM 3 PPM + High Good, with each item weighted
by the associated importance.
2. Implicit Expectations
Implicit expectations reflect established norms of performance. Implicit expectations
are established by business in general, other companies, industries, and even cultures.
An implicit reference might include wording such as Compared with other
companies or Compared to the leading brand

3. Static Performance Expectations

Static performance expectations address how performance and quality are defined for
a specific application. Performance measures related to quality outcome may include
the evaluation of accessibility, customization, dependability, timeliness and user
friendly interfaces. Static performance expectations are the visible part of the
iceberg; they are the performance we see andoften erroneouslyare assumed to be
the only dimensions of performance that exist.
4. Dynamic Performance Expectations
Dynamic performance expectations are about how the product or service is expected
to evolve over time. Dynamic expectations may be about the changes in support,
product, or service needed to meet future business or use environments.
Dynamic performance expectations may help to produce static performance
expectations as new uses, integrations, or system requirements develop and become
more stable.

5. Technological Expectations
Technological expectations focus on the evolving state of the product category. For
example, mobile phones are continually evolving, leading to higher expectations of
new features.
32

Mobile service providers, in an effort to limit a consumers ability to switch to new

technology phones, have marketed rate plans with high cancellation penalties for
switching providers, but with liberal upgrade plans for the phones they offer.
The availability of low profile phones with email, camera, MP3, blue tooth
technology, and increased storage will change technology expectations as well as the
static and dynamic performance expectations of the product.
These highly involving products are not just feature based, but raise expectations that
enhance perceptions of status, ego, self-image, and can even evoke emotions of
isolation and fear when the product is not available.

6. Interpersonal Expectations
Interpersonal expectations reflect the relationship between the customer and the
product or service provider.
Person to person relationships are increasingly important, especially where products
require support for proper use and functioning.
Support expectations include interpersonal sharing of technical knowledge, ability to
solve a problem, ability to communicate, reduced time to problem resolution,
courtesy, patience, enthusiasm, helpfulness, assurance that they understood my
problem and my situation, communication skills, and customer perceptions regarding
professionalism of conduct, often including image and appearance.
7. Situational Expectations
In building a customer satisfaction survey, it is also helpful to evaluate why prepurchase expectations or post-purchase satisfaction may or may not be fulfilled or
even measurable.

33

CHAPTER-IV
Data Analysis

34

Q) The professions of the people?

Frequency

Percentage (%)

Private Service
Business
Govt Service

41
3
6

82
6
12

Total

50

100

35

Profession

12%
6%

Private Service
Business
Govt Service
82%

INTERPRETATION
1. There are 82% of customers who works in private companies.
2. There are 12 % of customers who belongs to the business class.
3. There are 6%of customers who are engaged in government companies.

Q: The age group of customers?

Age Group

Frequency

Percentage (%)

25-30
30-35
35-40
More than 40

3
17
19
11

6
34
38
22

Total

50

100

36

Age Group
19

20
17

18
16
14

11

12

Age Group

10
8
6
4

2
0
25-30

30-35

35-40

>40

INTERPRETATION
1.
2.
3.
4.

There are 6% of customers who are in the age group of 25-30 years.
There are 34% of customers who are in the age group of 30-35 years.
There are 38% of customers who are in the age group of 35-40 years.
There are 22% of customers who are in the age group of >40 years.

Q: Consumers preference of information related to property

document from Real Estate web portal, past record of builders, and
marketing detailsFrequency

Percentage (%)

Property documents
Marketing details
Past record

45
3
2

90
6
4

Total

50

100

37

Priority Amongst Three

50
45
40
35
30
25
20
15
10
5
0

45

Series 1

INTERPRETATION
1. There are 90% of customers who prefers information related to property
documents.
2. There are 6% of customers who prefers information related to marketing
details.
3. There are 4% of customers who prefers information related to past records.

Q: Preferable location?
Area
New Delhi
Ghaziabad
Noida
Faridabad
Gurgaon
Others
Total

Frequency
21
6
12
3
4
4
50

38

Percentage (%)
42
12
24
6
8
8
100

Area of preference
25
21
20
15

Area of preference

12

10
6
5

0
New Delhi Ghaziabad

Noida

Faridabad Gurgaon

Others

INTERPRETATION
1.
2.
3.
4.
5.
6.

There are 42% of customers who prefers New Delhi as their put up location.
There are 12% of customers who prefers Ghaziabad as their put up location.
There are 24% of customers who prefers Noida as their put up location.
There are 6% of customers who prefers Faridabad as their put up location.
There are 8% of customers who prefers Gurgaon as their put up location.
There are 8% of customers who prefers other areas than this as their put up
location.

Q. Tabulation of the amount which a person is willing to pay.

Amount willing to pay

Frequency

Percentage (%)

(in lakhs)
Less than 15 Lakhs
16-25
26-35
36-45
46-55
Above 55
Total

8
4
8
16
10
4
50

16
8
16
32
20
8
100

39

Amount willing to pay (in lakhs)

18

16

16
14
12

Amount willing to pay (in

lakhs)

10

10

8
6

8
4

2
0
Less than 15 Lakhs

26-35

46-55

INTERPRETATION
1.
2.
3.
4.
5.
6.

There are 16% of customers those who are willing to invest less than 15 lakhs.
There are 8% of customers those who are willing to invest 16-25 lakhs.
There are 16% of customers those who are willing to invest 26-35 lakhs.
There are 32% of customers those who are willing to invest 36-45 lakhs.
There are 20% of customers those who are willing to invest 46-55 lakhs.
There are 8% of customers those who are willing to invest more than 55 lakhs

Q: Do the Real Estate developers give possession timely?

Yes
No
Cant say
Total

Frequency
18
26
6
50

40

Percentage (%)
36
52
12
100

Timely Possession
6
Yes

18

No
Can't say

26

INTERPRETATION
1. There are 36% of customers who are saying that real estate developers give
possession timely.
2. There are 52% of customers who are saying that real estate developers do not
give possession timely.
3. There are 12% of customers who said nothing on this question..

Q: How much are you satisfied from real estate marketing

information provided by real estate companies?

Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Total

Frequency
1
16
11
21
1
50

41

Percent (%)
2
32
22
42
2
100

Satisfaction level
11

Highly Satisfied
Satisfied

16

Neutral

21

Dissatisfied
Highly Dissatisfied

11

INTERPRETATION
1. There are 2% of customers who are highly satisfied from marketing
information provided by real estate companies.
2. There are 32% of customers who are satisfied from marketing information
provided by real estate companies.
3. There are 22% of customers who are neutral from marketing information
provided by real estate companies.
4. There are 42% of customers who are dissatisfied from marketing information
provided by real estate companies.
5. There are 2% of customers who are highly dissatisfied from marketing
information provided by real estate companies.

Q: Do you think govt. takes necessary steps to provide house to the

common man?

Yes
No
Cant say
Total

Frequency
16
25
9
50

42

Percent (%)
32
50
18
100

16
Yes
No

25

Can't say

INTERPRETATION
1. There are 32% of customers who are in favour getting support from
government to provide house to common people.
2. There are 50% of customers who are not in favour getting support from
government to provide house to common people.
3. There are remaining 18% of customers who said nothing on this question.

Q: What source of information do you prefer while buying/ searching

for a property?
Type of media

Frequency

Percent (%)

Print media
T.V. and Radio
Internet
Outdoor Add.
Personal Reference
Broker

15
4
3
11
14
3

30
8
6
22
28
6

Total

50

100

43

Type of media
3

Broker

14

Personal Reference

Type of media

11

Outdoor Add.
3

Internet

T.V. and Radio

15

Print media
0

8 10 12 14 16

INTERPRETATION
1. There are 30% of customers who prefers print media as a source of
information while buying/ searching for a property.
2. There are 8% of customers who prefers T.V. and Radio as a source of
information while buying/ searching for a property.
3. There are 6% of customers who prefers Internet as a source of information
while buying/ searching for a property.
4. There are 22% of customers who prefers outdoor advertisement as a source of
information while buying/ searching for a property.
5. There are 28% of customers who prefers personal reference as a source of
information while buying/ searching for a property.
6. There are 6% of customers who prefers broker as a source of information
while buying/ searching for a property.

Q: Is there any need for any regulating body in the real estate?
Reply

Frequency

Percent (%)

Yes
No
Cant say

45
3
2

90
6
4

Total

50

100

44

Reply
3

2
Yes
No
Can't say
45

INTERPRETATION
1. There are 90% of customers who are saying that there is a need of regulating
body in the real estate.
2. There are 6% of customers who are saying that there is no need of regulating
body in the real estate.
3. There are 4% of customers who said nothing on this.

Q: What all documents you should look before buying house?

Peoples are now very conscious about property document. They were saying that
while buying or searching property they check property document, but since most of
them do not know the all property document required to check thats why there is
need to create awareness about property document and builders should show the
entire property document to customers themselves.
While survey generally people gave name of fallowing property document
Link chain ownership document.
Registry
Map approval doc.
45

Sale deed
Paper shows approval from government authority
Paper of agreement between buyer and seller
No objection certificate (N.O.C.)
Acquisition letter
Payment receipts
Power of attorney of land.

Q: What are your expectations from the web portal?

The responses to this question were varied, like people said they

They didnt know.

They wanted Transparency.
They Wanted the Web portal to provide the complete information.
Some said they want the timely information.
Some wanted the Web portal to highlight the full information of the

Developer.
Some even wanted all the legalities to be cleared by the Web-portals and then
displayed on it.

Q: What Problems have you faced while Dealing with the REAL
ESTATE DEALERS..?
There were varied Responses to this question

Majority said that they wanted to get rid of the brokers.

Some said they wanted the Developers to display their complete information

on line and to the customers.

There were people who wanted Hidden costs to be absent.
Some wanted to get rid of the false promises.
Almost all of the people wanted that the Developers should show transparency
and provide them with each and every form of information which they wanted.

46

CHAPTER-V
Conclusion And
47

Suggestions

5.1 FINDINGS:

Most of the people are dissatisfied from the real estate marketing information
provided by the real estate companies, but very few people are strongly

satisfied.
89% people are checking legal status of construction while buying/ searching

a house.
Some of the people check delayed delivery penalty clause while buying a

property.
70.7% people want to check details of booking before buying or searching

house.
Most of the people have chosen PRINT MEDIA & BROKERS as a source of

information while buying or searching for a property.

People who have chosen internet, print media, brokers, and personal reference
as a source of information for searching house or property are more satisfied

compare to the other sources of information.

There is great demand of 2, 3 BHK house in near future in DELHI and NCR
region.
48

Most of the people chose information related to the property documents as

their first preference compared to the marketing details of the project, past

record of builder and new policies of govt. related to real estate sector.
Most of the people wanted the government to make policies in terms of legal,
technical and financial aspects which could create transparency in real estate

sector.
Most of the people know only the names of few property documents and they

check only these documents while searching a property.

A number of builders do not want to show the property documents to the
customers.

5.2 CONCLUSION:Now a days people who go for buying a house have become more aware about what
they should look for and the information they should seek, and are more concerned
about the selection of the right type of house for them. But majority of the people are
still unaware of the documents which they should look for before going to buying a
house. Here I have collected the perception and analyzed the expectations of the
general public as a whole. The conclusion thus is that people need to be more aware
of all the documents, the total legalities, and collect as much as information from the
builders, and then only they can do their investment with a free mind.
Thus because of the above reasons there is a need to create awareness among the
customers as well as project developers to give the customers the complete
information and the role of TRUSTED PROPERTY to educate people is appreciated
in this regard.

SUGGESTIONS:On the basis of my findings, I want to make certain recommendations as follows

SUGGESTION to RG GROUP
49

First and foremost, the database generated through the project should be put to
effective use through continuous follow-ups to the potential customers. A

follow-up should be made on the industry potential as a whole as well.

Company should provide information according to peoples need and

necessity. And for that they can open daily polling on their web portal.
Company should not always try to attract the new customers only, but should
also take feedbacks from existing once, and try to remove their problems and

learn from their experience.

Company should make more contact with contractors and Architects to tap
more builders.

ANNEXURE

50

Questionnaire

(NOTE-All the information taken from you is only used for research purpose)

TOPIC-Understanding the Consumers Perception & Expectations

while buying a House.
Name
............................................................................................................................
Profession:Govt. service

Pvt. Service

Designation
Name of organization/Company
Contact No.....+91-.

51

Business

Email.
Age (in yrs)
25 to 30

30 to 35

35 to 40

More than 40

1) Rank the following detail according to their importance at the time of purchasing a
property?
(Rank1 to the most important, 3 to least)
a) Property documents

b) Marketing details of builder

c) past record

2) Tick the options which match your preferable location and types accordingly?
Type

1 BHK

2 BHK

3 BHK

4 BHK

Penthouses

Villas

Area
New Delhi
Ghaziabad
Noida
Faridabad
Gurgaon
Others

3) For the above chosen option how much are you willing to pay?

..............................................................................................................
................................................................................................

52

4) Do you think real estate developers give possession timely?

a) Yes

b) No

c) Cant Say

5) How much are you satisfied from real estate marketing information provided by
real estate companies?
a) Highly Satisfied

b) Satisfied

d) Dissatisfied

e) Highly dissatisfied

c) Neutral

6) Do you think the govt. takes necessary steps to provide house to the common man?
a) Yes

b) No

c) Cant say

7) What source of information do you prefer while buying /searching for a property?
a) Print media

b) T.V. and Radio

d) Outdoor Add.

e) Personal Reference

c) Internet
f) Broker

8) Is there any need for any regulating body in the real estate?
a) Yes

b) No

c) Cant Say

9) What all documents you should look for before buying a house?

..........................................................................................................
.....................................................................................................

10) What is your Expectation from the web portal?

..................................................
........................................................................................................

53

11) What problems have you faced while dealing with the real Estate dealers?

..............................................
.......................................................................................................
Thank you for sparing your precious time

BIBLIOGRAPHY

54

BIBLIOGRAPHY
Referred Books:
Kothari C.R. - Research Methodology New Delhi Tata McGraw Hill In (95-102)
Kotler Phillip Marketing management analysis, planning implementation and
control.

Referred Websites:
www.rggroup.in
www.indianrealestateforum.com
www.buisnessstanderd.com
www.economicstimes.com

55