Consumer Attitude Towards Purchase of Real Estate

IPASJ International Journal of Computer Science (IIJCS)
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Volume 5, Issue 9, September 2017 ISSN 2321-5992
CONSUMER ATTITUDE TOWARDS

PURCHASE OF REAL ESTATE
Anupama Sundar D
Assistant Professor JSS Centre for Management Studies JSS Science and Technology University
Sri Jayachamarajendra College of Engineering JSS Technical Institutions Campus Mysore-570006 Karnataka India
ABSTRACT
The aim of this study is to understand the consumer attitude towards purchase of real estate. Data was collected from 150
respondents from Mysuru. The variables chosen for this study are performance, reference group, service, ability and agents.
Both the genders were considered, which included different age group, religion, income level. The study targets new emerging
segment called young professionals in relations to real estate market and understanding their buying behavior. Questionnaire
method was used to conduct the study and analysis was done using SPSS.
Keywords: Attitude, Real estate, reference group, service, performance agents
1. INTRODUCTION
An individual with a positive attitude towards a product/service offering is more likely to make a purchase; this makes
the study of consumer attitudes highly important for a marketer. An attitude may be defined as a feeling of
favorableness or un-favorableness that an individual has towards an object. In terms of consumer behavior, consumer
attitudes may be defined as an inner feeling of favorableness or un-favorableness towards a product or service offering
and the 4Ps.
Attitudes are an expression of inner feelings that reflect whether a person is favorably or unfavorably
predisposed to some "object" and Attitude formation, in turn, is the process by which individuals form feelings
or opinions toward other people, products, ideas, activities, and other objects in their environment
1.1 The nature of attitudes can be elaborated as follows:

a. Attitudes are directed towards an object (product/service offering, price, store, dealer, promotion, advertisement etc.)
about which a consumer has feelings and beliefs.
b. Attitudes have a direction; they could be positive or negative. A consumer could possess feelings of like/dislike,
favorableness and un-favorableness towards a product or service as well as the mix. They vary in degrees and
intensity, and can fall anywhere along a continuum from very favorable to very unfavorable.
c. Attitudes are consistent in nature, particularly with respect to the third component, i.e. behavior. Consumers are
consistent with respect to their behavior. However, they are not entirely permanent and may change if the cognitive
or the component is changed. This implies that if the consumer witnesses new experience or is exposed to new
information about product/service offering and the mix (cognition), and) feelings are changed from dislike to like
(affect), attitudes towards the offering and the mix can undergo change. In other words, while attitudes are stable and
do not change frequently, they can be changed if something is done to change them.
d. Attitudes are a learned predisposition. Attitudes are learned; they are formed as a result of i) self experiences with
the product/service offering and the mix; ii) interaction with other people, be it family, friends, peers and colleagues;
iii) information obtained from the marketer through promotion particularly advertisements as well as dealers and
salespeople. Attitude formation as a process is impacted by needs and motivation, perception as well as learning.
e. Attitudes cannot be observed directly. While attitudes are comprised of three components, behavior is just one of
them. It is only this component that can be seen; the cognitive and affect components cannot be seen. Thus it is said
that attitudes cannot be seen; they can only be inferred from the manner in which an individual behaves. Thus, we
can infer that a person who buys Colgate Total toothpaste and disregards Pepsodent has a positive attitude towards
Colgate.
f. While attitudes can be inferred from our behavior, it is not synonymous to behavior. It has two other components, and
reflects a learned predisposition to act favorable or unfavorable towards a product and service offering and the mix.
g. Attitudes are situation specific; they occur within a situation. Sometimes depending upon the situation, a consumer
may exhibit a behavior that may be inconsistent with his/her attitude. He may prefer to buy Pepsodent over Colgate
because the former is on a sales promotion and gets him a free toothbrush.
Volume 5, Issue 9, September 2017 Page 6

1.2 FUNCTION OF ATTITUDES:
A) UTILITARIAN FUNCTION:
Consumers form positive attitudes towards product/service offerings because they provide a utility, in other words, they
provide a rewarding experience through the benefits that they provide. Consumers learn to relate a reward with the use
of the offering. On the other hand if they do not offer a rewarding experience, consumers form a negative attitude e
towards such an offering.
B) EGO DEFENSIVE FUNCTION:

Consumers form attitudes as they help defend their ego, self-image and self-concept. If a consumer is high on
ethnocentrism, and patronizes Indian products, he would have a positive attitude towards Indian brands. He would
speak for and promote such brands even if he knows that a foreign made product provides better value. Attitudes are
formed to protect the ego.
C) VALUE EXPRESSIVE FUNCTION:

Positive attitudes are formed when a product or service expresses a persons values and lifestyle, personality and self
image, and self concept. This is because attitudes provide people with a basis for expressing their values. In cases where
there is a mismatch between the product image and a consumers self-image, a negative attitude is developed. Attitudes
are a reflection of value.
D) KNOWLEDGE FUNCTION:
Attitudes are formed when consumers want to reaffirm their knowledge base, to finally help them simplify purchase
decision making. If a consumer thinks positive about a brand, it helps reaffirm his opinion, and makes decision making
simpler and faster. Attitude helps in decision making.
1.3 REAL ESTATE MARKET:

Real estate market, mostly represented by residential housing market, has been traditionally acknowledged as one of the
most important segments of broader economy. In the past decades, it undergone dramatic rises and falls, culminating
with the great fall in a form of US subprime mortgage crisis and triggered the financial crisis that resulted in global
economic recession. Consequences of the recession are evident even now, and many countries worldwide are still deep
in the economic downturn. During communism, most of citizens lived in rented places. Rent was very cheap and easy
to get. System was based on social housing that was encouraging young people to take their first steps in family life.
Today, 20 years later, is widely believed that real estate ownership is an unobtainable goal for some groups and
especially for young people. Frequently treated as a financial asset, real estate property can be defined as all interests,
benefits, rights and encumbrances inherent in the ownership of physical real estate, where real estate is land together
with all improvements that are permanently affixed to it and all appurtenances associated. Real estate market was
always recognized as market of constant and ever-rising value. Value represents estimation of the exchange price of a
property if it were to be sold in the open market. Furthermore, it presumes that both the willing buyer and willing seller
are reasonably informed about the nature and characteristics of the asset. New segment of the property buyers is rising.
Those are first-time buyers, employed young professionals, highly educated, with regular income who are trying to own
their homes before middle-age. There is a large number of schemes designed to make home-ownership an attainable
target to young professionals. When buying real estates, potential and current owners are ultimately concerned with the
sustainability of the property and its value. Now, as the grounds of value have been seriously shaken, the question that
is emerging is: what are the influences on consumers decision making process when it comes to real estate purchases?
People have various reasons for buying property. Their individual needs determine what they expect from a property as
well as what they will be willing to pay for it. Understanding what the potential buyers are looking for, and who is
influencing on his/her decision making process, seller will be able to market the property to the potential segment. This
issue is especially important when it comes to the young population that is faced with a first-time decision regarding
real estates. Young professionals who are interested in buying their first home are inexperienced and careful (even
scared) at the prospect of making a mistake in taking on such a large loan. First time buyers typically desire the kind of
home that they grew up in (influenced by their family background), but most probably would have to settle for
something smaller or more simple.

1.4 REFERENCE GROUPS

The focus of this research is to determine which reference group has the most influence on consumers decision-making
process. They can be described as one or more people that are having relevance for an individual, as a point of
comparison for attitudes, beliefs, values or behavior. Some of the basic characteristics, common to all definitions are:
objectives, role differentiation, shared values and norms, membership and communication. Several criteria are
applicable to the classification of reference groups, and the most common ones are: primary and secondary, formal and
informal, large and small. Level of reference groups influence on individual purchasing behavior depends on the
nature and characteristics of products, as well as the specific social factors. Reference groups can generally have three
types of influences: informational, utilitarian and value-expressive Family is often the most influential reference group.
As family is vivid, constantly changing category, it goes through several phases of its life cycle: single, then married,
married with children, empty nest, retirement and widowhood. One of the goals of this research is to show that the
importance and influence of reference group is dependent on the life cycle. Stages in the life cycle are shown to be
parallel with the demand for housing types: rental apartment, starter home, move-up single-family home, independent
retirement housing, and supportive apartment
1.5 DECISION-MAKING PROCESS

The decision-making process follows from three to nine stages. Decisions concerning the actions on real estate market
are often treated as intrinsically rational, readily comprehendible and ultimately self-regulating. Recently, there are
significant efforts to prove that the process of buying a property includes complex social processes. They can be mostly
regarded from cognitive perspective, as one of the dominant perspectives of buyer behavior. In the nature of process,
real estate market is always related to homeownership, and only in 2008 it represented 57.2% of global real estate
industry value. For the consumer, it became a host of all other social benefits. Because of the importance of the
decision, most consumers undertake an external information search, although it is shown that they are often
overconfident about their knowledge or abilities than under-confident. It is significant to stress out that the importance
of this decision is greater when it is the first-time purchase of younger consumers. There are several explanations of
consumer needs for information. Buyers who are less familiar with an area have less accurate expectations of the
distribution of opportunities. A buyer who knows that they are unfamiliar recognizes the added advantages of extra
time. Learning effect should also increase the marginal benefit of effort since seeing more houses increases the set of
information available to a buyer. Informed consumer can effectively evaluate alternative offerings and make a rational
decision based upon information provided. In search for information, buyer can consult real estate companies, directly
or indirectly via Internet, as an alternative information source. There are class and gender differences between buyers
behavior. Other resource of information and influence is the family as crucial decision-making unit. recognized several
studies in family decision making have investigated the relative amount of influence exerted by family members and
their influences at each stage of the decision-making process. Research in the field of real estate has focused on the
behavioral concepts that affect the markets search and price-setting processes. In terms of the making decisions upon
value, understanding human decision-making processes is important, as ultimately, market participants and the
interaction of supply and demand determines the price of the property.
2. LITERATURE REVIEW
Real estate property is defined as a financial asset that brings interest, benefits and encumbrances inherent in the
ownership of the land and all improvements that are permanently related to it. Real estate market is recognized as a
market of the constant rising value, independent of the particular country development. Real estate market, mostly
represented by residential housing market, has been traditionally acknowledged as one of the most important segments
of broader economy (Reed & Mills, 2007). In the past decades, it undergone dramatic rises and falls, culminating with
the great fall in a form of US subprime mortgage crisis and triggered the financial crisis that resulted in global
economic recession.
The challenges facing today's real estate property market in Bosnia and Herzegovina arguably never been so tough.
During communism, most of citizens lived in rented places. Rent was very cheap and easy to get. System was based on
social housing that was encouraging young people to take their first steps in family life. Today, 20 years later, is widely
believed that real estate ownership is an unobtainable goal for some groups and especially for young people. New
segment of the property buyers is rising. Those are first-time buyers, employed young professionals, highly educated,
with regular income who are trying to own their homes before middle-age. There is a large number of schemes
designed to make home-ownership an attainable target to young professionals.

The real estate sector is one of the most globally recognized sectors. In India, real estate is the second largest employer
after agriculture and is slated to grow at 30 per cent over the next decade. The Indian real estate market has become
one of the most preferred destinations in the Asia Pacific# as overseas funds accounted for more than 50 per cent of all
investment activity in India in 2014, compared with just 26 per cent in 2013.
The real estate sector comprises four sub sectors - housing, retail, hospitality, and commercial. The growth of this
sector is well complemented by the growth of the corporate environment and the demand for office space as well as
urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of
direct, indirect and induced effects in all sectors of the economy.
3. CONCEPTUAL MODEL.
4. DESCRIPTION OF VARIABLE
The dependent variable is consumer attitude towards Real Estate purchase
Independent variables include:
(a)Performance (b) Reference group (c) Service (d) Ability (e) Agents
A) PERFOMANCE
Professional company, purchase process, work, time and online highly influences the performance of real estate
industry. The study revealed that the effect of the interest rate volatility on income and its interest rate elasticity
performance. It can be settled that interest rate is stochastic in determining the performance of any property market.
That is the volatility in the interest rate which is measured by its variance would lead to a change in elasticity of the
performance for real balances. Findings in this study leads to a conclusion that the performance for risky assets depends
upon the joint probability distribution of asset returns and in a mean-variance framework, the performance for an asset
is a function of both the expected rates of return on all assets and the covariance among asset returns. This will produce
a shift in asset performance equations in general and in the real estate performance function in particular.
B) REFERENCE GROUP
Reference group has the most influence on consumers decision-making process. They can be described as one or more
people like friends, family members that are having relevance for an individual, as a point of comparison for attitudes,
beliefs, values or behavior. Some of the basic characteristics, common to all definitions are: objectives, role
differentiation, shared values and norms, membership and communication. Several criteria are applicable to the
classification of reference groups. family and friends on one side and experienced experts on the other side are the main
influencers on ones decision regarding the real estate purchase. Also, an important implication for the managers and

companies in this field is that attitudes and behaviors are changing depending on the education level, age and stage
consumer is in the family life cycle.
C) SERVICE
Professionals should learn never to be complacent. This is especially so in the age of globalization when markets
become increasingly open and cross-boundary competitions get increasingly fierce. Like all businesses in the
marketplace, professional real estate companies should provide the best quality services to clients and maintain its
competitive edge and ability to transform oneself into a learning organization within which the talent, experience,
knowledge and creativity of individual colleagues could be fully utilized to build on the companys technology and
organizational infrastructure. After all, the only thing certain about professional service market makes country
developed and developing economies in this age of globalization is its uncertainty
D) ABILITY
Seasoned real estate professionals will tell you that certain talents, qualities, and personal traits are crucial to building a
successful career an ability to organize personal affairs as well as conduct business activity in a logical, efficient
manner (e.g., obtaining listings, showing properties, handling offers, and conducting negotiations). An ability to
address difficulties and arrive at plausible, practical solutions given conflicting interests of parties involved. This
attribute is particularly useful in listing and selling activities. A basic understanding of computer hardware and
software. Computers and other electronic devices are mainstays in todays real estate brokerages. Salespeople must
understand, draft, and explain real estate agreements, listings, and other related forms. Real estate registrants must
ensure that documents are correctly prepared and properly reflect the position of the parties. A fundamental part of any
real estate transaction. Salespeople routinely negotiate on behalf of buyers and sellers to arrive at mutually agreeable
terms A basic understanding of questioning methods. Real estate success often depends on asking the right question at
the right time. Ability is particularly valued when helping buyers determine their purchasing needs. The ability to
work independently to get the job done. Real estate sales demands self-motivation, discipline, and personal
commitment .An ability to gain the trust and respect of buyers and sellers. Rapport comes easily to those who enjoy
working with people, genuinely take interest in their well-being, and understand needs and wants.
E) AGENTS
Real estate agent means a person who is engaged in rendering any service in relation to sale, purchase, leasing or
renting, of real estate and includes a real estate consultant. An excellent real estate agent is like a conductor, guiding a
group of resources towards a final goal like the sale of the house. An agent that can use technology with ease is going to
be more up-to-date on the market in the area. They will also be more likely to be an organized person who has their act
together. This is the type of person sellers want helping to sell their homes. The top agents come to a home with a
prospective buyers list. They also are working with a well known realty agency. They know other realtors in the area,
too, and are willing to work with others if that sells the home faster. A real estate agent that is organized and likes to
work with attention to detail is the one that is most likely to sell a home. This is especially true in a hard-to-sell market.
Great agents know the tiniest changes sellers can make to improve the sale-ability of their home. They return client
calls promptly and make every appointment on time.
5. OBJECTIVE
Low purchase power, especially with young people, people tends to make decisions regarding real estate rather
young people still live with their parents.
Family and friends on one side and experienced experts and agents on the other side are the main influencers on
ones decision regarding the real estate purchase.
Attitudes and behaviors are changing depending on the education level, age and stage consumer is in the family
life cycle.
Create a complete picture and a clearer insight into the results it is necessary to conduct research on a larger
sample.
6. HYPOTHESES
H0: There is an effect of intelligent purchasing on real estate purchase.
H1: Intelligent purchase do not effect on real estate purchase.
H0: There is an effect of relationship in real estate purchase.

H1: Relationship do not effect on real estate purchase.

H0: There is an effect of individual strength on purchase of real estate
H1: Individual strength do not effect on purchase of real estate
H0: There is an effect of current trends on purchase of real estate
H1: Current trends do not effect on purchase of real estate
7. SCOPE OF STUDY
In this study we aim to understand the decision making process of the new emerging segment called young
professionals in relations to real estate market and understanding their buying behavior. Combining quantitative and
qualitative methods, this research is testing the influence of the specific reference groups (family, friends and experts)
of the young professionals (up to 35), during their real estate purchase.
8. LIMITATIONS
Despite the best efforts to conduct a completely flawless project, some circumstance and events are beyond the control
of researcher. I found this to be the case with this research, especially working with certain geographic areas in
Mysuru. Nevertheless, the data provided by the subjects allowed for a greater understanding the consumer attitude
towards real estate purchase and an operational definition of consumer attitude.
9. METHODOLOGY
Data was collected as in Cross- sectional survey method using structured questionnaire with face to face personal
interview
10. SAMPLING METHOD

In order to study Factors that influence the consumer attitude towards purchase of real estate leads to satisfied
customer, the method used in this study is non-experimental, cross sectional survey. The sampling method used here
was convenience method. The sample for this study consisted of 150 respondents from Mysuru was considered for
further study. The study was conducted to investigate the significance level of the behaviors. Usually, the investigator
seeks to ascertain the causal effect of one variable upon another.
10.1 SAMPLE SIZE
The sample for this study consisted of 150 respondents from different area was considered for further study
11. QUESTIONNAIRE DESIGN

The questionnaire was contained several instruments measuring variable, experience was measured at the 5 point scale.
In addition to measuring the variables, the questionnaire also contained demographic questions: age, gender, profession
and income status.
12. DATA SOURCE
12.1 Primary data: Data was collected through the survey conducted and the structured questionnaire given to 150
respondents. The data was put into the SPSS software for reliability check and it was within the limit. And it was used
for analyzing the overall data.
These questionnaires were handed out in the different areas and were collected back. There were no incentives given to
respondents except the knowledge that their opinions would be part of a study on behavior Data was collected by
questionnaires. During the survey the respondents were asked how important various factors were for them The
importance was measured on a 6-point scale, where 1 is strongly disagree and 5 is Strongly agree
13. DATA ANALYSIS

As in the questionnaire we have analyzing Personal behavior of the consumer and the Purchasing behavior of the
consumer. In Personal behavior, Consumer shows 100%, in buying the property.

Table 1: Place
place
Frequen Percen Valid Cumulative
cy t Percent Percent
1.0 112 74.7 74.7 74.7
0
2.0 36 24.0 24.0 98.7
Val 0
id 5.0 2 1.3 1.3 100.0
0
Tot 150 100.0 100.0
al
74.7% consumer purchase property in Karnataka.24% in kerala.1.3% in other places
Table 2: Value
value
1.0 31 20.7 20.7 20.7
0
2.0 43 28.7 28.7 49.3
0
3.0 41 27.3 27.3 76.7
Val 0
id 4.0 24 16.0 16.0 92.7
0
5.0 11 7.3 7.3 100.0
0
Tot 150 100.0 100.0
al
20.7% purchase property below 5 lkh,28.7% purchase property between 5 to 10lkh,27.3% purchase property 10 to
15lkh,16% purchase property between 15 to 20lkh,7.3 purchase property above 20lkh
Table 3: kind
kind
1.0 89 59.3 59.3 59.3
0
2.0 31 20.7 20.7 80.0
0
Val 3.0 11 7.3 7.3 87.3
id 0
4.0 8 5.3 5.3 92.7
0
5.0 11 7.3 7.3 100.0
0

Tot 150 100.0 100.0

al
59.3% purchase land,20.7%purchase villa,7.3% purchase apartment,5.3% purchase building,7.3% purchase other kind
of property
Table 4: Purpose
purpose
1.0 60 40.0 40.0 40.0
0
2.0 33 22.0 22.0 62.0
0
3.0 8 5.3 5.3 67.3
Val 0
id 4.0 37 24.7 24.7 92.0
0
5.0 12 8.0 8.0 100.0
0
Tot 150 100.0 100.0
al
40% purchase property for staying,22% purchase property for giving rent,5.3% purchase property for business purpose,
24.7% purchase property for investment,8% purchase for other purpose
2.DESCRIPTIVE ANALYSIS
Table 5: Descriptive Statistics
N Mea Varia Skewness Kurtosis

n nce
Stat Statis Statis Statis Std. Statis Std.
istic tic tic tic Error tic Error
150 3.560 1.751 -.977 .198 -.338 .394
Company
0
150 2.946 1.071 .145 .198 -.537 .394
Individually
7
150 3.746 .915 -.869 .198 .771 .394
Work
7
150 3.513 .976 -.334 .198 -.292 .394
Time
3
150 3.486 1.070 -.388 .198 -.287 .394
Online
7
150 3.540 1.230 -.775 .198 -.006 .394
Reference group
0
150 3.686 .458 -.443 .198 .267 .394
Family member
7
150 3.666 1.190 -.718 .198 -.106 .394
Friends
7
150 4.153 .641 -.285 .198 - .394
Family lifecycle
3 1.383
150 3.633 1.160 -.825 .198 .349 .394
Technology
3

150 3.566 .704 -.283 .198 -.477 .394

Organization
7
150 3.400 1.221 -.816 .198 .248 .394
Skill
0
150 3.726 .871 -.883 .198 .720 .394
Knowledge
7
150 3.233 .838 .051 .198 - .394
Easy
3 1.006
150 3.893 .619 -.562 .198 .189 .394
Afraid
3
150 3.953 .770 -.694 .198 -.034 .394
Document work
3
150 3.620 .922 -.371 .198 -.005 .394
Price
0
150 3.666 .640 -.759 .198 .121 .394
Money
7
Financial 150 3.733 .814 -.501 .198 -.429 .394
transaction 3
150 3.860 .900 -.528 .198 -.575 .394
Expensive
0
150 3.680 .850 -.360 .198 -.648 .394
Cheated
0
150 3.720 .794 -.918 .198 1.095 .394
Easy transaction
0
150 3.426 1.038 - .198 .568 .394
Prelaunch
7 1.129
150 3.640 .487 -.333 .198 1.449 .394
Negotiation
0
150 2.493 .386 .196 .198 -.267 .394
Age
3
150 1.373 .236 .529 .198 - .394
Gender
3 1.744
150 1.406 .243 .384 .198 - .394
Marital status
7 1.878
150 3.140 .994 .827 .198 -.301 .394
Education
0
150 4.000 .443 .000 .198 -.711 .394
Income
0
150 2.986 1.329 -.160 .198 -.814 .394
Occupation
7
150 7.400 1.423 - .198 1.577 .394
Newspaper
0 1.731
150 7.306 1.234 - .198 .899 .394
TV
7 1.466
150 7.346 1.570 - .198 .771 .394
Magazine
7 1.554
Valid N (list 150
wise)
Descriptive statistics was conducted to check for the kurtosis and skewness of data. The data collected was subjected to
preliminary descriptive analysis to adjourn the normality assumption. The descriptive statistics are shown in table, and
the statistics of each measurement item reveals that none of the skewness statistics exceeds 4 points and kurtosis 10
points. Therefore by generally accepted criteria the data meets the assumptions of normality

FACTOR ANALYSIS
Table 6: KMO and Bartletts test of items considered
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .567
878.4
Approx. Chi-Square
Bartlett's Test of 58
Sphericity Df 120
Sig. .000
Table 7: Total Variance of items considered

[
Total Variance Explained

Com Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
ponent Total % of Cumulati Total % of Cumulati Total % of Cumula
Variance ve % Variance ve % Variance tive %
3.45 21.56 21.561 3.45 21.56 21.561 2.322 14.51 14.51
1
0 1 0 1 4 4
2.41 15.11 36.672 2.41 15.11 36.672 2.317 14.48 28.99
2
8 1 8 1 4 8
1.94 12.18 48.852 1.94 12.18 48.852 2.242 14.01 43.01
3
9 1 9 1 2 0
1.41 8.843 57.696 1.41 8.843 57.696 1.715 10.71 53.72
4
5 5 8 7
1.11 6.996 64.692 1.11 6.996 64.692 1.439 8.993 62.72
5
9 9 0
1.04 6.509 71.201 1.04 6.509 71.201 1.357 8.481 71.20
6
1 1 1
7 .885 5.531 76.732
8 .834 5.211 81.943
9 .676 4.223 86.166
10 .546 3.410 89.576
11 .484 3.023 92.599
12 .341 2.128 94.728
13 .266 1.662 96.390
14 .240 1.499 97.888
15 .195 1.220 99.109
.143 .891 100.00
16
0
Extraction Method: Principal Component Analysis.
Table 8: Rotated component matrix

Exploratory Factor analysis was conducted using principal component methods and varimax rotation method for data
purification. KMO test plays an important role for accepting the sampling adequacy. While KMO ranges from 0 to 1,
solutions with a KMO statistic of 0.567 which indicates that the sample size was adequate, further the test of sphericity
was found significant at .000 and a chi-square statistic of 878.458 with 120 degree of freedom. The total variance
explained by the principal component analysis was 71.201.
RELIABILITY
Table 9: Reliability statistics

Reliability Statistics
Cronbach's Cronbach's N of
Alpha Alpha Based on Items
Standardized
Items
.711 .707 38
Table 10: Item-Total Statistics

Item-Total Statistics
Scale Mean Scale Corrected Cronbach's Alpha if
if Item Deleted Variance if Item Item-Total Item Deleted
Deleted Correlation
Brought 132.6000 114.376 -.005 .712
Place 132.3600 110.420 .283 .704
Rotated Component Matrixa
Intellige Relations Individua Current

nt purchasing hip l strength trends
Company .804
Work .705
Online .646
Negotiation .578
Prelaunch .803
Price .799
Friends .789
Financial .899
transaction
Money .754
Cheated .705
Knowledge .802
Family member .720
Organization .549
Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.a
a. Rotation converged in 8 iterations.

Value 131.0467 110.783 .088 .715

Kind 131.8467 108.399 .175 .709
Purpose 131.2667 106.130 .213 .707
Company 130.0933 101.159 .432 .688
Individually 130.7067 109.887 .159 .709
Work 129.9067 107.011 .327 .699
Time 130.1400 109.920 .169 .708
Online 130.1667 104.824 .402 .693
Reference group 130.1133 105.376 .342 .697
Family member 129.9667 108.757 .367 .700
Friends 129.9867 103.785 .424 .691
Family lifecycle 129.5000 113.755 .000 .716
Technology 130.0200 99.617 .634 .677
Organization 130.0867 105.731 .462 .693
Skill 130.2533 107.291 .257 .703
Knowledge 129.9267 103.035 .554 .686
Easy 130.4200 113.963 -.020 .718
Afraid 129.7600 110.439 .202 .706
Document work 129.7000 103.634 .560 .687
Price 130.0333 105.187 .421 .693
Money 129.9867 108.027 .345 .699
Financial 129.9200 109.161 .235 .704
transaction
Expensive 129.7933 106.917 .336 .698
Cheated 129.9733 113.489 .003 .717
Easy transaction 129.9333 107.620 .324 .700
Prelaunch 130.2267 109.049 .203 .706
Negotiation 130.0133 107.248 .461 .695
Age 131.1600 112.457 .118 .710
Gender 132.2800 114.055 .011 .713
Marital status 132.2467 115.784 -.153 .718
Education 130.5133 116.856 -.160 .727
Income 129.6533 115.611 -.115 .719
Occupation 130.6667 117.928 -.194 .733
Newspaper 126.2533 114.164 -.046 .724
TV 126.3467 109.181 .172 .708
Magazine 126.3067 112.630 .008 .721
A reliability test of which measures variable usability has been done. It shows an alpha value of 0.711 which indicates,
all items in the scale to measure the variable in question is reliable. The cronbach alpha value above 0.5 is considered
to be reliable and acceptable. Therefore, we can conclude variable in our study pass reliability test.
FINDINGS
The study was targeted the specifics of the very interesting question of real estate purchase. The specific focus was on
the attitudes and behaviors of younger consumers, up to 35 years old, while buying their real estate for the first time.
The questionnaire datas was collected from Mysuru in which people purchase been done in Kerala, Karnataka, Tamil
Nadu, Maharashtra, area using convenience method.
It was found that the four main factors extracted from screen plot namely Intelligent purchase, Relationship, Individual
strength, Current trends has an effect on forming an image for purchasing Real Estate. Also it shows that all the
variables that come under these four factors affect consumer attitude towards Real Estate purchase. Hereby in all the
four cases H0 is accepted.

SCOPE FOR FUTURE

In this study we aim to understand the decision making process of the new emerging segment called young
professionals in relations to real estate market and understanding their buying behavior, for future study the data can be
collected from consumer above 35 years old and study can be extended to other regions. As we have collected 150
samples, sample size can be increase and more quantitative and qualitative analyze can be conducted.
REFERENCES
[1]. Agency for statistics of Bosnia and Herzegovina (2010). Residential Construction in Bosnia and Herzegovina, First
Release, Second Term, 2010, Year IV, Sarajevo, 28.08.2010.
[2]. Anglin, P.M. (1997). Determinants of Buyer Search in a Housing Market, Real Estate Economics, Vol. 25, No. 4,
pp. 567-589
[3]. Bearden, W.O. & Etzel, M.J., (1982). Reference Group Influence on Product and Brand Purchase Decisions,
Journal of Consumer Research, Vol. 9, pp. 183-194.
[4]. Black, R.T., Brown M.G., Diaz J., Gibler, K.M. & Grissom, T.V. (2003). Behavioral Research in Real Estate: A
Search for the Boundaries, Journal of Real Estate Practice and Education, Vol. 6 No. 1, pp. 85-112
[5]. ii M., Husi M. & Kuki S. (2009). Ponaanje potroaa. 1. izdanje. Ekonomski fakultet Sveuilita u
Mostaru.
[6]. Draganic A., Pavlica M. &Pucar S. (2009) Stanoogradnja za mlade: Podrskom do krova.Agencija za razvoj
preduzea Eda, Banja Luka. ISBN: 978-99955-53-01-2
[7]. Engel, J. F., R. D. Blackwell & P. W. Miniard (1995).Consumer Behavior, Eighth edition, FortWorth, T.X.:
Dryden Press
[8]. Fast Market Research (2010). Market Report: Bosnia-Herzegovina Real Estate Report Q4 2010
[9]. Gibler, K.M. & Nelson, S.L. (2003).Consumer behaviour applications to real estate education, Journal of Real
Estate Practice and Education, Vol. 6 No. 1
[10]. Hawkins, D.I., Motherbaugh, D.L. & Best R.J (2010).Consumer Behavior: Building Marketing Strategy, eleventh
edition, McGraw-Hill Higher Education
[11]. The World Bank (2004). Housing in South Eastern Europe solving a puzzle of challenges, Ministerial Housing
Conference for South Eastern Europe, Paris.

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IPASJ International Journal of Computer Science (IIJCS)

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CONSUMER ATTITUDE TOWARDS

Keywords: Attitude, Real estate, reference group, service, performance agents

1.1 The nature of attitudes can be elaborated as follows:

Volume 5, Issue 9, September 2017 Page 6

1.2 FUNCTION OF ATTITUDES:

B) EGO DEFENSIVE FUNCTION:

C) VALUE EXPRESSIVE FUNCTION:

1.3 REAL ESTATE MARKET:

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1.4 REFERENCE GROUPS

1.5 DECISION-MAKING PROCESS

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Volume 5, Issue 9, September 2017 Page 9

Volume 5, Issue 9, September 2017 Page 10

H1: Relationship do not effect on real estate purchase.

10. SAMPLING METHOD

10.1 SAMPLE SIZE

11. QUESTIONNAIRE DESIGN

12. DATA SOURCE

13. DATA ANALYSIS

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74.7% consumer purchase property in Karnataka.24% in kerala.1.3% in other places

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Tot 150 100.0 100.0

N Mea Varia Skewness Kurtosis

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150 3.566 .704 -.283 .198 -.477 .394

Volume 5, Issue 9, September 2017 Page 14

Table 6: KMO and Bartletts test of items considered

KMO and Bartlett's Test

Table 7: Total Variance of items considered

Total Variance Explained

Table 8: Rotated component matrix

Volume 5, Issue 9, September 2017 Page 15

Table 9: Reliability statistics

Table 10: Item-Total Statistics

Rotated Component Matrixa

Intellige Relations Individua Current

Extraction Method: Principal Component Analysis.

Volume 5, Issue 9, September 2017 Page 16

Value 131.0467 110.783 .088 .715

Volume 5, Issue 9, September 2017 Page 17

SCOPE FOR FUTURE

Volume 5, Issue 9, September 2017 Page 18

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