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Chapter II

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26 views

Chapter II

Uploaded by

Christine Valle
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Chapter II

Review of related literature

Consumers thereby addition to the society because it is one

of the most essential for business organizations by Zaragoza

(2003). Castillo (2002) in his research supported the fact that

consumer research should be strike between how to influence

consumers and how consumers could defend? themselves and control

such influences.

According to Esplanade et al (2001), one of the most essential

and influential areas within consumer buying behavior is the

consumer decision making process. So, it is evident that an

exploratory approach with the consumers buying behavior can

provide opportunities to understand the complexity to specific in

making decision to process by the consumers. Consumers buying

behavior concentrate more on production orientation rather than

consumer behavior orientation towards the approach for marketing

process. This study is more important in the case of purchase of

a high – involvement and emotionally charged products such as real

state and house etc. There are three objectives about this study.
First, to generate a conceptual consumer decision making process

model for purchasing of this, secondly, to study the various

factors and the consumer buying behavior process and lastly, to

determine and analyze several factors affecting consumer buying

behavior.

Granhaug, Kleppe, and Haukedal (1987), in their research explained

that the decision making process involving long term commitments

of resources and affecting the budget available for other goods

and services is defined as the strategic decision making process.

The understanding and the prediction of the consumer perceptions

is important in examining and studying the consumer buying behavior

and the decision making process. Thus the overall purpose of

this study is to understand the factors and influences on consumer

buying behavior in the real estate industry and also explains as

to how the integration of the theories relating to consumer buying

behavior improves the understanding of what consumers wants to.

According to Engel, Blackwell, and Minibar (1995), consumer


behavior is defined as the study if individuals or groups in

obtaining, using and disposing of products and services, including

the decision making process. The consumer behavior involves in

examining the reasons for the behavior of the customers more than

the examining of the consumer actions. The interests of the

marketers lie on the demographic changes, society’s values,

beliefs and practices that affect the way the customers interact

in the marketplace. The application of these concepts to developing

and increasing the understanding of the consumer buying behavior

in context to the real estate industry are explained.

The consumer choice is one of the key and important aspects of

consumer behavior. The relevance between consumer choice and the

decision making process is also depicted in the theory of utility

in economics. In general, customers are the buyer of the product

and user of the service to enjoy the benefits derived from their

usage.

The theory of utility as described before focuses mainly on

the results and outcomes whereas the consumer behavior aspect

emphasizes on the process of consumer purchase. The impact of the


situational factors on consumer behavior and the variance among

the individual faced with same conditions are explicitly explained

in the theories.

The internal determinants of consumer behavior are motivation,

perception, and attitudes. Each consumer possesses a unique

combination of mental and emotional characteristics. Let’s start

with “motivation”. Motivation is a need arousing a drive for a

consumer to take actions in attempt to reach a goal (Costramos,

Flores, Prado, 1995). Needs arise from the discrepancy between

actual and desired states of being. Wants refer to specific

products that consumers believe will satisfy the need (Cabrera and

Cledera,1994). Secondly, the attitude- it is an overall evaluation

about something that combines cognitive beliefs, emotional affects

and behavioral intentions (Costramos, Flores, Prado. 1995). It is

based on direct experience with a product that usually held with

more confidence than those derived from indirect experience. And

lastly, the perceptions, it deals in recognizing, selecting,

organizing and interpreting stimuli to make sense of the world

(Solomon, 1996).
Every customers assigns to a stimulus that depends on how a

stimulus is categorized and elaborated into beliefs and attitudes

in relation to the consumer’s existing knowledge. Nasar (1989)

found that people use housing architectural style to infer the

friendliness and status of its residents. However, these

interpretations varied with age, gender and social class. Thus,

valuation of individual properties will vary among individuals

because of their different personality.

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