A Study on the Influence of External Factors in Purchasing Decision of Property” Essay
A STUDY ON THE INFLUENCE OF EXTERNAL FACTORS IN PURCHASING DECISION OF PROPERTY” PROJECT REPORT SUBMITTED TO THE UNIVERSITY OF MADRAS IN PARTIAL FULLFILLMENT OF THE MASTERS DEGREE IN BUSINESS ADMINISTRATION SUBMITTED BY JAYASHREE. M (Register no. MA81042) UNDER THE GUIDANCE OF Mrs. Pallavi , MPM(PhD) [pic] MEENKASHI SUNDARARAJAN SCHOOL OF MANAGEMENT [Formerly known as Indian Institute of Engineering Technology] KODAMBAKKAM CHENNAI-24 JULY 2009 ACKNOWLEDGEMENT
My floral tributes to the almighty who has been the initiating and guiding light in all my endeavors.
It is my pleasure to thank my faculty guide Mrs. Pallavi, for her motivation, advice and encouragement. I am highly indebted to her efforts and guidance at each and every stage of the project.
I would like to thank our HOD, Mr. Saiju. M. John for giving us the opportunity and support for the successful completion of the project. I would also like to thank our Director, Mr. V. S.
Vikram, Meenakshi Sundararajan School of Management for giving us the opportunity and support for the successful completion of the project. I would like to convey my heartfelt thanks to Mr. Gopalakrishnan, Manager- Human Resources in Shriram properties , for having allowed me to do the project in their esteemed organization and for their constant support. I am beholden to my parents, friends and all the respondents for their valuable contribution that were the sources of inspiration and strength for completion of this project work.
CERTIFICATE It is hereby certified that this dissertation was designed and executed by Miss. Jayashree. M, in partial fulfillment of requirement for the award of the Degree of Masters in Business Administration, University Of Madras. This dissertation in the original work of the said candidate carried out exclusively for the above-mentioned purpose. Dr. V. S. Vikram Prof. Mrs. Pallavi Director Research Guide Place: Chennai Date: DECLARATION
I hereby that the project work entitled “A Study on the influence of external factors in purchasing decisions” submitted to the university of madras in partial fulfillment of the requirement for the award of the Degree of Masters in Business Administration is a record of original research work Sundararajan School of Management, and that it has not formed the basis of any Degree/ Diploma/ Associate ship/ or other title to any candidate of any university. JAYASHREE. M MA81042 CONTENTS CHAPTER |TITLE |PAGE NO | | |ACKNOWLEDGEMENTS |i | | |LIST OF TABLES |ii | | |LIST OF FIGURES |iii | |I |1. 1 |INTRODUCTION |1 | | |1. 2 |OBJECTIVES OF THE STUDY |10 | | |1. 3 |STATEMENT OF THE PROBLEM |10 | | |1. 4 |SCOPE OF THE STUDY |10 | | |1. |LIMITATIONS OF THE STUDY |10 | |II |REVIEW OF LITERATURE |11 | |III |COMPANY PROFILE |16 | |IV |RESEARCH METHODOLOGY |23 | |V |DATA ANALYSIS AND INTERPRETATION |29 | |VI |FINDINGS, SUGGESIONS AND CONCLUSION |40 | |ANNEXURE I |QUESTIONNAIRE |43 | |ANNEXURE II |BIBLIOGRAPHY |46 | | |WEBLIOGRAPHY |47 | LIST OF TABLES |TABLE NO |TITLE |PAGE NO | |5. 1 |DISTRIBUTION OF RESPONDENTS BY THEIR DURATION OF SEARCH OF PROPERTY |29 | |5. |DISTRIBUTION OF RESPONDENTS BY THEIR REASON FOR SEARCH |30 | |5. 3 |DISTRIBUTION OF RESPONDENTS BY THEIR INFLUENCE OF LOCATION |31 | |5. 4 |DISTRIBUTION OF RESPONDENTS BY THEIR REASON FOR SELECTION OF LOCATION |32 | |5. 5 |DISTRIBUTION OF RESPONDENTS BY THEIR SOURCE OF SEARCHING THE PROPERTY |33 | |5. 6 |DISTRIBUTION OF RESPONDENTS BY THEIR TYPE OF MEDIA INFLUENCE |34 | |5. |DISTRIBUTION OF RESPONDENTS BY THE TYPE OF NEWS PAPER THEY BUY |35 | |5. 8 |DISTRIBUTION OF RESPONDENTS BY INTERNET AS IMPORTANT INFLUENCEING FACTOR |36 | |5. 9 |DISTRIBUTION OF RESPONDENTS BY THEIR PREFERENCE TO SPECIFIC BRAND BUILDERS |37 | |5. 10 |DISTRIBUTION OF RESPONDENTS BY THEIR VIEW ON IMPORTANCE OF ADVERTISEMENT |38 | |5. 11 |DISTRIBUTION OF RESPONDENTS BY THEIR SATISFACTION ABOUT THE PURCHASED PROPERTY |39 | LIST OF FIGURES 1.
FIGURE SHOWING DURATION OF SEARCH OF PROPERTY 2. FIGURE SHOWING REASON FOR PROPERTY SEARCH 3. FIGURE SHOWING INFLUENCE OF LOCATION 4. FIGURE SHOWING REASON FOR SELECTING THE LOCATION 5. FIGURE SHOWING SOURCE OF SEARCHING PROPERTY 6. FIGURE SHOWING TYPE OF MEDIA 7. FIGURE SHOWING NAME OF THE NEWS PAPER 8. FIGURE SHOWING INTERNET AS IMPORTANT INFLUENCEING FACTOR 9. FIGURE SHOWING PREFERENCE TO SPECIFIC BRAND BUILDERS 10. FIGURE SHOWING IMPORTANCE OF ADVERTISEMENT 11. FIGURE SHOWING SATISFACTION ABOUT THE PURCHASED PROPERTY [pic] CHAPTER I 1. 1 INTRODUCTION An important part of the marketing process is to understand why a customer or buyer makes a purchase.
Without such an understanding, business finds it hard to respond to the customer’s needs and wants. A consumer’s buyer behavior is influenced by four major factors; cultural, social, personal, and psychological factors. These factors cause consumers to develop product and brand preferences. Although many of these factors cannot be directly controlled by marketers, understanding of their impact is essential as marketing mix strategies can be developed to appeal to the preferences of the target market. The study of customer behavior in marketing is essentially the study of how people choose. What are the influences that affect choices and how do they differ from person to person or from product to product?
These are question that the marketer must answer if he is to build an effective marketing strategy; for it is indisputably true that if we know more about how a customer chooses, then we are in a much better position to present products or services that will lead to his or her choice being our offering. Buyer Behaviour is the process whereby individuals decide whether, what, where, how and from whom to purchase goods and services. DEFINITION OF PROPERTY Property is any physical or intangible entity that is owned by a person or jointly by a group of persons. Depending on the nature of the property, an owner of property has the right to consume, sell, rent, mortgage, transfer, exchange or destroy his or her property, and/or to exclude others from doing these things. 1] Important widely-recognized types of property include real property (land), personal property (physical possessions belonging to an person), private property (property owned by legal persons or business entities), public property (state owned or publicly owned and available possessions) and intellectual property (exclusive rights over artistic creations, inventions, etc. ), although the latter is not always as widely recognized or enforced.  A title, or a right of ownership, is associated with property that establishes the relation between the goods/services and other persons, assuring the owner the right to dispense with the property in a manner he or she sees fit. Some philosophers assert that property rights arise from social convention. Others find origins for them in morality or natural law. DEFINITION OF CONSUMER OR BUYER BEHAVIOUR Consumer behaviour invented by arpit aggarwal(in consumer business context) referred to as the study of when, why, how, where and what people do or do not buy products. 1] It blends elements from psychology, sociology, social , anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people’s wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general. Customer behaviour study is based on consumer buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. NEED AND IMPORTANCE OF BUYER BEHAVIOR Appropriate designing of marketing strategy:
Consumer behavior is helpful in understanding the purchase behavior and preferences of different consumers. Innovating in changing technological environment: Buyer behavior provides invaluable clues and guidance to marketers on new technological frontiers which they should explore. Understanding the factors influencing the behavior process: Consumer behavior is a process. Buying or purchase forms one part of it. These are various psychological and environmental factors which influence this process. All these factors and the type of influence which they exert on an individual’s consumption behavior can be understood and analyzed. Shorter product life cycles:
Research by marketers into present and evolving consumer behavior in terms of their lifestyles and unsatisfied or unfelt needs, provides the basis for a series of new product concepts and complementary promotional appeals. At the same time, research into consumer media habits provides the necessary insights into how best to reach the prospects (potential buyers) in order to influence their buying behavior. Ecological or environmental concerns: Research into consumer interests and practices enable marketers to develop and effectively promote environmentally sound product modifications for socially concerned consumers. Consumer orientation: The modern concept is consumer oriented. Naturally, marketers are to proceed by identifying and understanding the prospective customers and their buying behavior.
To understand the consumers means to know their goals so as to design the products to best serve these goals and also to communicate an advertisement message explaining how the product can better serve consumer goals. Increased interest in consumer protection: Marketers must know and interpret various marketing and promotional appeals so that they do not go against consumer’s rights which modify their behavior. Growth of services marketing: Service marketers have realized that knowledge of consumer behavior in the context their needs and interests are essential to the development of effective marketing strategies. Growth of international marketing:
Marketers have come to realize the importance of understanding consumer behavior in foreign markets so that they can tailor their products and promotional strategies to meet the needs of targeted foreign consumers. Computer and statistical techniques: The development of microcomputer and sophisticated analytical techniques has encouraged and facilitated research into consumer behavior. The computer enables researchers to process and store vast amounts of data concerning consumers, their characteristics, attitudes, interests, activities etc and the use of advanced statistical techniques enables them to analyze these data’s and to delineate homogeneous market segments. Buyer behavior is an interdisciplinary science: Hence the marketers need to know its principles, concepts and areas. FACTORS INFLUENCING BUYER BEHAVIOR
A consumer buying behavior is influenced by cultural, social, personal, and psychological factors. Cultural factors exert the broadest and deepest influence. Cultural factors Culture, sub-culture, and social class are particularly important in buying behavior. Culture is the fundamental determinant of a person’s wants and behavior. The growing child acquires a set of values, perceptions, preferences, and behaviours through his or her family and other key institutions. Each culture consists of small sub-cultures that provide more specific identification and socialization for their members. Sub-cultures include nationalities, religions, racial groups, and geographic regions.
When sub-culture grow large and affluent enough, companies often design specialized marketing programs to serve them. Such programs are known as diversity marketing, a practice which was pioneered during the 1980’s by large companies. Social classes are relatively homogenous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. Social classes show distinct product and brand preferences in many areas, including clothing, home furnishings, leisure activities, and automobiles. Social factors In addition to cultural factors, a consumer’s behavior is influenced by such social factors as reference groups, family, and social roles and statuses. Reference groups: A persons reference groups consist of all the groups that have a direct or indirect influence on the person’s attitudes or behavior. Groups having a direct influence on a person are called membership groups. Some membership groups are primary groups, such as family, friends, neighbors, and co-workers, with whom the person interacts fairly continuously and informally. People also belong to secondary groups, such as religious, professional, and trade union groups, which tend to be more formal and require less continuous interaction. An opinion leader is the person in an informal, product related communication who offers advice or nformation about a specific product or product category, such as which of several brand is best or how a particular product may be used. Manufacturers of products and brands where group influence is strong must determine how to reach and influence the opinion leaders in these reference groups. • Family: The family is the most important consumer buying organization in the society, and family members constitute the most influential primary reference group. The family has been researched extensively. We can distinguish between two families in the buyer’s life. The family of orientation consists of parents and siblings. From parents a person acquires orientation toward religion, politics, and economics and a sense of personal ambition, self-worth, and love.
Even if the buyer no longer interacts very much with his or her parents, their influence on the buyer’s behavior can be significant. A more direct influence on everyday buying behavior is the family of protection namely, one’s spouse and children. • Roles and statuses: A person participates in many groups- family, clubs, and organizations. The person’s position in each group can be defined in terms of role and status. A role consists of activities a person is expected to perform. Each role carries a status. Personal factors A buyer’s decisions are also influenced by personal characteristics. These include the buyer’s age and stage in life cycle, occupation, economic circumstances, lifestyle, and personality and self-concept. Age and stage in the life cycle: People buy different goods and services over a life time. They eat baby food in the early years, most foods in the growing and mature years, and special diets in the later years. Taste in clothes, furniture, and recreation is also age related. • Occupation and economic circumstances: Occupation also influences consumption patterns. A blue collar worker will buy work clothes, work shoes and lunch boxes. A company president will buy expensive suits, air travel and country club membership. Product choice is also affected by economic circumstances. Spendable income, savings and assets, debts, borrowing power, and attitudes toward spending and saving. Lifestyle: People from the same sub-culture, social class, and occupation may lead quite different lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities, interests and opinions. Lifestyle portrays the “whole person” interacting with his or her environment. • Personality and self-concept: Each person has personality characteristics that influence his or her buying behavior. By personality, we mean a set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli. We define brand personality as the specific mix of human traits that may be attributed to a particular brand. Psychological factors
A person’s buying choices are influenced by four major psychological factors- motivation, perception, learning, and beliefs and attitudes. • Motivation: A person has many needs at any given time. Some needs are biogenic; they arise from physiological states of tension such as hunger, thirst, or discomfort. Other needs are psychogenic; they arise from psychological states of tension such as need for recognition, esteem, or belonging. A need become a motive when it is aroused to a sufficient level of intensity. A motive is a need that is sufficiently pressing to drive the person to act. • Perception: A motivated person is ready to act. How the motivated person actually acts is influenced by his or her perception of the situation.
Perception is the process by which an individual selects, organizes, and interprets information inputs to create a meaningful picture of the world. Perception depends not only on the physical stimuli, but also on the stimuli’s reaction to the surrounding field and on conditions within the individual. People can emerge with different perceptions of the same object because of three perceptual processes: selective attention, selective distortion, and selective retention. • Learning: When people act, they learn. Learning involves changes in an individual’s behavior arising from the experience. Most human behavior is learned. Learning theorists believe that learning is produced through the interplay of drives, stimuli, cues, responses, and reinforcement. Beliefs and attitudes: Through doing and learning people acquire beliefs and attitudes. These in turn influence buying behavior. A belief is a descriptive thought that a person holds about something. PURCHASE DECISION PROCESS Buyer purchase decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. How do customers buy? Research suggests that customers go through a five-stage decision-making process in any purchase. This is summarized in the diagram below: [pic] This model is important for anyone making marketing decisions.
It forces the marketer to consider the whole buying process rather than just the purchase decision (when it may be too late for a business to influence the choice! ) The model implies that customers pass through all stages in every purchase. However, in more routine purchases, customers often skip or reverse some of the stages. For example, a student buying a favourite hamburger would recognise the need (hunger) and go right to the purchase decision, skipping information search and evaluation. However, the model is very useful when it comes to understanding any purchase that requires some thought and deliberation. • Problem recognition: The buying process starts with need recognition.
At this stage, the buyer recognises a problem or need (e. g. I am hungry, we need a new sofa, I have a headache) or responds to a marketing stimulus (e. g. you pass Starbucks and are attracted by the aroma of coffee and chocolate muffins). • Information search: An “aroused” customer then needs to decide how much information (if any) is required. If the need is strong and there is a product or service that meets the need close to hand, then a purchase decision is likely to be made there and then. If not, then the process of information search begins. A customer can obtain information from several sources: • Personal sources: family, friends, neighbours etc Commercial sources: advertising; salespeople; retailers; dealers; packaging; point-of- sale displays • Public sources: newspapers, radio, television, consumer organisations; specialist magazines • Experiential sources: handling, examining, using the product • Evaluation of alternatives: The various product/services are evaluated by the consumer on the basis of some criteria. The criteria may include price, experts opinion about the products, opinion of family members, friends etc. the marketer must know which criteria the consumer will use the purchase decision. • Choice or purchase decision: From among the purchase alternatives, the consumer makes the selection. It may be to buy or not to buy. The marketer, upto this stage, has tried every means to influence the purchase behavior, but the choice is purely consumers. Outcome or post-purchase behavior: After making the purchase, the consumer will experience some degree of satisfaction or dissatisfaction. The buyer is satisfied with a product, will feel happy about its purchase and say nice things about it. But, if he is not satisfied, he may dissuade his friends from purchasing it or advise them not to commit the same mistake. 1. 2 OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE • To study the main factors that influence the buyers purchase decision in purchasing a property. SECONDARY OBJECTIVE • To study the important aspects in making purchase decision of property. • To study the main factors that influence purchase decision. To study the impact of price in making purchase decision. 1. 3 STATEMENT OF THE PROBLEM • To study the factors that influence the buyer’s purchasing decision in regard to property. 1. 4 SCOPE OF THE STUDY • The factors that influence the customer is an effective tool that is directly related to the perfection of organization. • The study reveals the effectiveness of the buyer’s purchase decision and also throws light on its present value in minds of the respondents which will be helpful for further improvement of the organization. 1. 5 LIMITATIONS OF THE STUDY • The samplings were limited to those who live in flats alone. • Time was another limit for the study. [pic] CHAPTER II REVIEW OF LITERATURE
Cliff Allen, in his article titled “Consumers’ Purchase-Decision Criteria” published in ClickZ, on Apr 24, 2001 shared his views as follows: He talked about how business customers frequently use a well-defined evaluation process to select products and vendors. The technique maps the importance of each criterion to how well a product performs, then calculates a total score for each product. Consumers use a similar approach that takes into account both how well a product appears to meet their needs and how important they feel those needs to be. In some ways, consumer decision-making behavior is much more complex than the corporate decision-making process. Marketers have researched consumer behavior for many years, and many articles have been published in marketing journals explaining how consumers make purchasing decisions.
We now understand that consumers move through a well-defined process to make a decision. That process includes the following steps: • Recognizing a need • Searching for information • Evaluating alternatives • Deciding to purchase In mapping out the buying process that consumers use, researchers have identified several categories of motivation that determine how consumers attach weight to — or rate the importance of — product features: • Personal. This includes the demographic factors that are correlated with purchase behavior. • Psychological. Personality, attitudes, lifestyle, and motivations are a few of the factors included. • Social.
These influences include friends, family, opinion leaders, role models, and similar factors. Everyone involved in creating advertising and other marketing material knows that consumers are not as interested in a product’s features as they are in the benefits they can receive. And it’s no surprise to marketers that the way consumers feel about a product heavily influences the likelihood of their making a purchase. However, it may surprise Web marketers just how few e-commerce Web sites actually emphasize benefits in product descriptions. For instance, many of the tools at Sears. com just list features and specifications without mentioning any of the benefits of owning and using those tools.
This is very different from other marketing communications by Sears; the radio and TV spots frequently emphasize how good people feel when using their strong, reliable tools. At the other end of the spectrum is The Sharper Image. Its Web site provides a significant amount of descriptive copy for products. For instance, the Talking Digital Tire Gauge at first seems a bit extravagant. However, the descriptive copy emphasizes a serious benefit that will hit home for anyone who drives an SUV: “Recent experience has taught the driving public how critical properly inflated tires are to safe motoring. ” It’s clear that the copywriters and marketers at The Sharper Image understand consumer behavior and the motivations that influence consumer purchases.
Web marketers can apply such proven techniques to help customers make better purchase decisions. These are some of the ways to improve e-commerce performance: • Review the motivations and emotions that drive consumers to purchase your products. • Understand the process that consumers use to make purchase decisions. • Emphasize benefits in product descriptions, explaining how the features and functions help provide those benefits. If your Web site emphases features and specifications rather than benefits, it’s time to look at updating the product descriptions. Also, review the Web’s various interactive techniques that can keep you in touch with customers.
While some technologies are expensive and provide little value to consumers, others are affordable and effective. It’s always hard to persuade customers to purchase products, but applying an understanding of the consumer buying process makes it a lot easier. Laurent Stadelmann in his article “Factors to consider before buying a property to live in” dated on 2-Oct-07 shared his views as follows: There are various factors to consider before buying a property that your family will call home. The problem is that far too many people get caught up in the small or cosmetic details of the purchase and search that they forget the primary needs of the family in the process.
Keep the following points in mind when considering purchasing a property and you are much more likely to be happy with your decision. Location: This is one of the most factors in buying a property. The quality of the neighbourhood in which a home is situated is paramount when investing in a property as it influences its current and future value. Size: When it comes to property, size really does matter. The problem is that it matters differently for different people. Those that are aging and whose families have left home would do well in smaller properties that required lower maintenance. Those with growing families need room to grow not only inside the house but also outside the home.
If you have 5 children you do not want to be crowding them into 2 bedrooms nor do you need five bedrooms (unless you want them of course) if you are a confirmed bachelor. Size is an important consideration when deciding on a house that will meet the needs of you and/or your family. Mortgage: As well as the initial purchase price there are numerous other costs to consider when buying your home. Firstly, unless you are buying your home with cash, you will need a mortgage, which will have to be repaid with interest. There are so many mortgage packages available that you should think carefully about which would be the right one for you. For advice on mortgages you can visit any bank, building society or financial advisor. The internet is also a good source for your research, especially forums.
One off costs: There are also several one-off costs normally incurred during the purchase of a property which would be your responsibility: • A solicitor or licensed conveyancer to look after the legal side of the purchase • A property survey • Most banks and building societies charge for arranging a mortgage, and also for the valuation of the property that they are obliged to carry out • Stamp duty has to be paid on any property purchases costing more than ? 120,000. The current bands are: Up to ? 120,000 – nil ?120,001 to ? 250,000 – 1% of the purchase price ?250,001 to ? 500,000 – 3% of the purchase price More than ? 500,000 – 4% of the purchase price
Living costs: In addition to a mortgage, there are also many other regular costs which home owners normally have to pay: • Water, electricity, gas • Council tax • Buildings insurance • Contents insurance • Repair and maintenance costs School catchment area: Whether or not you have (or are planning) to have children, remember that the quality of local state schools exerts a major influence on property prices. A house or flat in a reputable school catchment area will always be easier to resell. Amenities: Decide what type of amenities matter to you. Do you want to be near shops, pubs and restaurants or would closeness to a park matter more to you. Buying the right property is not simply a matter of bricks and mortar.
Car insurance considerations: The cost of your car insurance will depend very much on whether your property is classified as being in a high crime or low crime area. If you have a lock-up garage or even just off-street parking, then your car insurance premiums will be reduced. Public transport: Being close (but perhaps not too close! ) to train and underground stations or a main bus route is beneficial, especially if you commute to your place of work by public transport. Access to roads: Here again, being close (but perhaps not too close! ) to roads and a motorway is beneficial, especially if you commute to your place of work by car or by motorbike Finally, two heads are better than one: When viewing a property, take a friend or relative with you.
You will have a lot of information to absorb in a relatively short period of time, during a viewing, and it is easy to miss what may turn out to be critical details in the heat of the moment. Your companion may have noticed things that you did not and vice versa. You may want to take a camera with you. If you feel that you have not taken in the whole picture regarding the property, arrange a second viewing. [pic] CHAPTER-3 PROFILE OF THE COMPANY HISTORY OF THE COMPANY SHRIRAM PROPERTY DEVELOPMENT Shriram Properties Limited is a part of the “Shriram Group”, and was established in 1997 with a mission of creating splendid homes and amenable living spaces.
In 2003 Shriram Properties limited went through the process of certification and obtained ISO 9001:2000 certificate, signifying international standards of business practices . The headquarters of Shriram property development is in Bangalore. The property development business was started with a modest equity capital and a marketing philosophy that focused entirely on the customers’ needs in terms of design layouts, amenities, security, cost etc. , and today Shriram Properties is a pioneer in property development business in South India. Sustained focus on quality, excellence & diligence in execution of projects by Shriram Properties has gone on to create an indelible impression of trust and dependability in the minds of home seekers.
In the last ten years Shriram Properties has completed about 2 million sft of residential housing & apartments in Bangalore and presently developing an additional 2 million sft. VISION To establish Shriram Properties Private Limited as a premier property development organization and to expand the operations within the country and internationally. PROFILE • Inception in 1995 • Projects Delivered 5. 0 million sq. ft • Land Reserves 1050 Acres • Foot prints in Bangalore, Chennai, Coimbatore, Visakapatnam & Kolkata • Built Up Area of various projects under Implementation 73 Mn sq ft • Partnerships with Walton Street Capital, Starwood Capital Group & Sun Apollo • Pan India presence Our Development Interests : Integrated Townships, Self Contained Residential enclaves, Residential Enclaves, Special Economic Zones, Retail, Shopping malls, Hospitality • From a humble beginning in South India, Shriram Properties Pvt Ltd today is looking forward to extending its footprints across the country and to have pan India Presence. • Shriram Properties Pvt Ltd as an Organisation has constantly demonstrated fair and transparent Business practices. • Strict adherence to ethical, legal and Social Obligations have reinforced our Leadership Position in the Industry. • The company is professionally managed and has obtained ISO 9001: 2000 Certification from TUV CERT – RWTUV Systems GmbH. The Company is fully committed to ensure Customer satisfaction, Community and Environmental concerns. • We are in insatiable urge to constantly look for opportunities for rapid expansion. • Beholden by our following strengths, we move forward from success to success and reach towering heights in the market o Heritage of the Shriram Brand. o Equity of “Trust” & “Reliability”. o Understanding customer needs to meet their expectations through extensive market research & customization. o Perfect titles for Projects – no legal hassles. o All projects cleared by Financial Institutions. o Competitive Pricing. o Designing the product to deliver maximum value at optimum prices. o Post-sales services. o More Sale to end-users. QUALITY POLICY
Our organization shall be fully focused and committed to ensure customer satisfaction in all property development • In all our activities within the ambit of our projects, we stand committed to our community and environmental concerns • We are committed to the development of team spirit, work ethics and the capability to execute jobs with excellence, right at the first time in all our employees • We shall stand committed to work in partnership with all our joint venture partners, contractors and suppliers giving due consideration to their needs and expectations • We stand committed to our responsibilities to the share holders in meeting their expectations • We recognize that profitability is essential to our future success and improvement of our entire organization to serve our customers in increasingly satisfying ways • We are committed to continually improve our operations and quality system Our quality parameters are amongst the most stringent; earning us the ISO 9001: 2000 certification. But what endears us to our customers is our unrelenting focus on quality, excellence and personalized customer care. INVESTORS POLICY Shriram Properties pvt Ltd has partnered with Walton Street Capital and Starwood Capital for investment. Walton Street Capital, L. L. C. is a private equity real estate investment firm. Since its founding in 1994, Walton Street has received total equity commitments of $3. billion from public and corporate pension plans, foreign institutions, insurance companies and banks, endowments and foundations, trusts, and high net worth individuals. Walton Street has invested and/or committed to invest approximately $3 billion of equity in approximately 150 separate transactions. Starwood Capital is a private investment firm that was founded in 1991. Since its inception, Starwood Capital has completed more than 300 transactions representing assets in excess of $21 billion. Public companies created by Starwood Capital have gone on to acquire, often with Starwood’s assistance, an additional $20 billion in assets. FEATURED PROJECT
Shriram Properties Private Limited, in an equal joint venture with SUN-Apollo, is developing a 4. 8 million sf mixed use development project (of which 3. 6 million sf will be under SEZ), called ‘The Gateway’ on the GST road in Chennai. The Gateway is spread over an area of 57. 94 acres and will comprise an IT SEZ, retail mall, multiplex & serviced apartments. Shriram The Gateway (with Sun Apollo) Status: Ongoing Shriram Properties Private Limited, in an equal joint venture with SUN-Apollo, is developing a 4. 8 million sf mixed use development project (of which 3. 6 million sf will be under SEZ), called ‘The Gateway’ on the GST road in Chennai.
The Gateway is spread over an area of 57. 94 acres and will comprise an IT SEZ, retail mall, multiplex & serviced apartments. The Gateway is a brand new experience of innovation, growth and harmony. Spread over an area of 57. 94 acres with a office space of 3. 6 million square feet spread across 13 blocks and a massive frontage of 1. 5 kms, The Gateway will be the most impressive facility of its kind in the southern half of the subcontinent. Magnificent due to its sheer size, scale and grandeur, The Gateway will house state-of-the-art infrastructural facilities with advanced connectivity, meeting the varied needs of today’s global powerhouses in the IT and ITES terrain.
With easy access to a world-class IT talent pool, The Gateway is an environment that will inspire workforces to create a new paradigm of performance and productivity. Strategically located near Tambaram, on the Grand Southern Trunk Road, The Gateway is conveniently linked to major destinations across the country by road, rail and air and is only 12 kms from the airport. Nestled at the foot of a hill clad in dense greenery, with a beautiful, scenic backdrop, the premises are surrounded by lush green land which is officially designated as a ‘National Reserve Forest’ area. The Gateway also conforms to Green Building norms as defined by ‘LEED (Leadership in Energy & Environmental Design)’.
A seamless blend of labour, leisure and luxury, The Gateway creates an environment conducive to success. With individual towers aesthetically designed for IT/ITeS spaces, framed structures with RC columns, RCC flat slabs, large efficient floor plates and granite or vitrified flooring and cladding in corridors and lobbies, covering a floor area of 34,000 to 50,000 square feet, it is a marvel for the senses as well. The Gateway also offers custom-made options to support specific IT requirements. Its key value-additions include a food court and ATM, a spacious basement parking facility, service apartments, a shopping mall and a multiplex, making it an independent and self-contained township.
The Gateway is brought to you by Shriram Properties Private Limited in a joint venture with SUN-Apollo. SHRIRAM GROUP OF COMPANIES SHRIRAM VALUE SERVICES The Shriram value services is a sister concern. It is dealing with IT, HR outsourcing, Insurance solution, FD investments, Campus recruitment, Executive search or business development, Training and Development, Data centre service. Before two years Shriram value services was named as Shriram investments SHRIRAM TRANSPORT FINANCE The Shriram transport finance company was established in the year 1979. The company has a network of 470 branches. The headquarters of Shriram transport finance is in Mumbai. The Shriram transport finance will give loans for the trucks. SHRIRAM LIFE INSURANCE
The Shriram life insurance company limited is a joint venture of the Shriram group with SANLAM of South Africa. SANLAM is one of the largest life insurance. Shriram life launches fourteen products Shrilife, Shrilife plus, Shrinidhi, Shriraksha, Shrividhya, Shrividhya plus, Shriplus (SP), Shriplus, Shrivivah etc. The headquartes of Shriram life insurance is in Hyderabad. SHRIRAM CONSUMER AND ENTERPRISE FINANCE The Shriram group entered the Shriram consumer finance business in the year 2002 through Shriram city union finance limited a stock exchange listed company. The headquarters of Shriram city union finance is in Chennai. SHRIRAM FORTUNE SOLUTION LIMITED
The Shriram fortune solution limited has been recently set up as nationwide distribution network for investments. The Shriram fortune solution limited was established in the year 1996. The company distributes Mutual funds, Debenture, FD, Life and Non life insurance products. The headquarters of Shriram fortune service limited is in Indore. SHRIRAM RETAIL STOCK BROCKING The Shriram insight share broker limited was incorporated in the year 1995, promoted by professional entrepreneurs and incubated by the Shriram group. The headquarters of Shriram insight share broker is in Kolkatta. SHRIRAM CHIT FUNDS Shriram Chits is the largest chit funds entity in India.
The trusted household Savings & Investments service provider, a pioneer in Micro Finance in India The Annual Auction Turnover of our Chit Companies is touching Rs. 3,000 crores. (US$ 715 million). Shriram Chits started operations in 1974 with a single branch. Today, our Chit Companies operate in Andhra Pradesh, Karnataka, Maharashtra Puducherry (Pondicherry) and Tamil Nadu, through 465 Branch offices, employing 6,000 people and 65,000 Agents. [pic] CHAPTER IV RESEARCH METHODOLOGY TITLE OF THE STUDY A study on “The influence of external factors in purchase decision”. RESEARCH METHODOLOGY MEANING Research methodology is a way to systematically solve the research problem.
It may be understood as a science of studying how research is done scientifically. Thus when we talk of research methodology, we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others, so that research results are capable of being evaluated either by the researcher himself or by others. RESEARCH DESIGN DEFINITION A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.
TYPES OF RESEARCH DESIGN There are three types of research design: • Exploratory research design: The main purpose of such studies is that of formulating a problem for more precise investigation or of developing the working hypothesis from an operational point of view. The major emphasis on such studies is on the discovery of new ideas and insights. • Descriptive research design: it is concerned with describing the characteristics of a particular individual, or of a group. Studies concerned with specific predictions, with narration of facts and characteristics concerning individual, group or situation are all examples of descriptive research studies. Experimental research design: It involves testing of hypothesis of casual relationships between variables. It requires procedures that will not only reduce bias and increase reliability, but will permit drawing inferences about casualty. The research design selected for the study is descriptive research design. Descriptive research studies are those studies which involve describing the characteristics of a particular individual, or a group. SAMPLING DESIGN A sampling design is a definite plan for obtaining a sample from a given population. It refers to the technique or procedure the researcher would adopt in selecting items for the sample. TYPES OF SAMPLING DESIGN There are two types of sampling design. Probability sampling design. • Non-probability sampling design. PROBABILITY SAMPLING DESIGN A probability sampling scheme is one in which every unit in the population has a chance (greater than zero) of being selected in the sample, and this probability can be accurately determined. The combination of these traits makes it possible to produce unbiased estimates of population totals, by weighting sampled units according to their probability of selection. Probability sampling includes: • Simple Random Sampling, • Systematic Sampling, • Stratified Sampling, • Probability Proportional to Size Sampling, and • Cluster or Multistage Sampling. Simple random sampling
In a simple random sample (‘SRS’) of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Systematic sampling Systematic sampling relies on arranging the target population according to some ordering scheme and then selecting elements at regular intervals through that ordered list. Stratified sampling Where the population embraces a number of distinct categories, the frame can be organized by these categories into separate “strata. ” Each stratum is then sampled as an independent sub-population, out of which individual elements can be randomly selected.
There are several potential benefits to stratified sampling. Cluster sampling The population is divided into mutually exclusive groups and the researcher draws a sample, of the groups to interview. Multistage sampling Multistage sampling is a complex form of cluster sampling in which two or more levels of units are embedded one in the other. The first stage consists of constructing the clusters that will be used to sample from. In the second stage, a sample of primary units is randomly selected from each cluster (rather than using all units contained in all selected clusters). In following stages, in each of those selected clusters, additional samples of units are selected, and so on.
All ultimate units (individuals, for instance) selected at the last step of this procedure are then surveyed. NON-PROBABILITY SAMPLING DESIGN Non-probability sampling is any sampling method where some elements of the population have no chance of selection (these are sometimes referred to as ‘out of coverage’/’undercovered’), or where the probability of selection can’t be accurately determined. It involves the selection of elements based on assumptions regarding the population of interest, which forms the criteria for selection. Non-probability Sampling includes: • convenience sampling • Judgement sampling • Quota sampling • Purposive sampling Convenience sampling
Convenience sampling (sometimes known as grab or opportunity sampling) is a type of non-probability sampling which involves the sample being drawn from that part of the population which is close to hand. That is, a sample population selected because it is readily available and convenient. The researcher using such a sample cannot scientifically make generalizations about the total population from this sample because it would not be representative enough. Quota sampling In quota sampling, the population is first segmented into mutually exclusive sub-groups, just as in stratified sampling. Then judgment is used to select the subjects or units from each segment based on a specified proportion.
For example, an interviewer may be told to sample 200 females and 300 males between the age of 45 and 60. Judgement sampling The researcher uses judgement to select population members who are good prospects for accurate information. Purposive sampling Sample units are chosen in order to meet same predetermined criteria that have been deemed important. The sampling design selected for the research is convenient sampling. SAMPLE SIZE The sample size was fixed to be 50. TOOLS FOR DATA COLLECTION The data collection tool selected is the Questionnaire. ANALYSIS AND INTERPRETATION The data collected are analyzed by percentage analysis method. [pic] CHAPTER V
DATA ANALYSIS AND INTERPRETATION DURATION OF SEARCH OF PROPERTY TABLE 5. 1 DISTRIBUTION OF RESPONDENTS BY THEIR DURATION OF SEARCH OF PROPERTY |S. NO |DURATION |NO OF RESPONDENTS |PERCENTAGE | |1. |0-6 months |12 |24. 00 | |2. |7-12 months |10 |20. 00 | |3. |1-2 years |8 |16. 00 | |4. 2-3 years |10 |20. 00 | |5. |Above 3 years |10 |20. 00 | | |Total |50 |100. 00 | FIGURE 1: DURATION OF SEARCH OF PROPERTY [pic] The above table shows that 24% of the respondents searched the property for about 0-6 months of duration, 20% of the respondents searched for duration of 7-12 months, 2-3 years and above 3 years respectively and 16% of the respondents searched for a period of 1-2 years.
REASON FOR PROPERTY SEARCH TABLE 5. 2 DISTRIBUTION OF RESPONDENTS BY THEIR REASON FOR SEARCH |S. NO |REASON |NO OF RESPONDENTS |PERCENTAGE | |1. |Need to own one |31 |62. 00 | |2. |Influenced to buy |19 |38. 00 | | |Total |50 |100. 00 | FIGURE 2: REASON FOR PROPERTY SEARCH [pic]
The above table shows that 62% of the respondents searched for the property because they wanted to own one and 38% of the respondents searched because they were influenced to buy the property. INFLUENCE OF LOCATION TABLE 5. 3 DISTRIBUTION OF RESPONDENTS BY THEIR INFLUENCE OF LOCATION |S. NO |INFLUENCE |NO OF RESPONDENTS |PERCENTAGE | |1. |Yes |35 |70. 00 | |2. |No |15 |30. 00 | | |Total |50 |100. 00 | FIGURE 3: INFLUENCE OF LOCATION [pic]
The above table shows that 70% of the respondents were influenced by the location and 30% were not influenced by the location. REASON FOR SELECTING THE LOCATION TABLE 5. 4 DISTRIBUTION OF RESPONDENTS BY THEIR REASON FOR SELECTION OF LOCATION |S. NO |REASON |NO OF RESPONDENTS |PERCENTAGE | |1. |Transport |5 |10. 00 | |2. |Social amenities |14 |28. 00 | |3. |Access to work place |13 |26. 0 | |4. |Friends and relatives reside |8 |16. 00 | |5. |Others |11 |22. 00 | | |Total |50 |100. 00 | FIGURE 4: REASON FOR SELECTING THE LOCATION [pic] The above table shows the reason for selecting the location. 28% of the respondents selected the location due to access to social amenities like educational institution, clubs, shops etc. 6% of the respondents selected the location due to access to work place, 22% selected for other reasons, 16% of the respondents selected the location because their friends and relatives reside there and 10% of the respondents selected the location due to transport facilities. SOURCE OF SEARCHING PROPERTY TABLE 5. 5 DISTRIBUTION OF RESPONDENTS BY THEIR SOURCE OF SEARCHING THE PROPERTY |S. NO |SOURCE OF SEARCH |NO OF RESPONDENTS |PERCENTAGE | |1. |Broker |14 |28. 00 | |2. |Friends and relatives |22 |44. 00 | |3. |Exhibition and sponsor events |4 |8. 00 | |4. Media |10 |20. 00 | | |Total |50 |100. 00 | FIGURE 5: SOURCE OF SEARCHING PROPERTY [pic] From the above table it can be seen that 44% of the respondent’s source for searching the property was friends and relatives, 28% of the respondent’s source was broker, 20% of the respondent’s source was media and 8% of the respondent’s source was through exhibition and sponsor events. TYPE OF MEDIA TABLE 5. 6 DISTRIBUTION OF RESPONDENTS BY THEIR TYPE OF MEDIA INFLUENCE |S.
NO |TYPE OF MEDIA |NO OF RESPONDENTS |PERCENTAGE | |1. |Newspaper |30 |60. 00 | |2. |Television |14 |28. 00 | |3. |Internet |6 |12. 00 | | |Total |50 |100. 0 | FIGURE 6: TYPE OF MEDIA [pic] 60% of the respondents were influenced by news paper, 28% were influenced by television and 12% of them were influenced by internet. NAME OF THE NEWS PAPER TABLE 5. 7 DISTRIBUTION OF RESPONDENTS BY THE TYPE OF NEWS PAPER THEY BUY |S. NO |TYPE OF NEWS PAPER |NO OF RESPONDENTS |PERCENTAGE | |1. |The Hindu |13 |43. 3 | |2. |The times of India |10 |33. 3 | |3. Deccan chronicle |2 |6. 7 | |4. |Others |5 |16. 7 | | |Total |30 |100. 00 | FIGURE 7: NAME OF THE NEWS PAPER [pic] Out of 30 respondents who were influenced by news paper, 43. 3% of the respondents buy The Hindu, 33. 3% buy The times of India, 16. 7% buy other news papers and 6. 7% buy Deccan chronicle. INTERNET AS IMPORTANT INFLUENCEING FACTOR TABLE 5. 8
DISTRIBUTION OF RESPONDENTS BY INTERNET AS IMPORTANT INFLUENCEING FACTOR |S. NO |IMPORTANT FACTOR |NO OF RESPONDENTS |PERCENTAGE | |1. |Yes |26 |52. 00 | |2. |No |24 |48. 00 | | |Total |50 |100. 00 | FIGURE 8: INTERNET AS IMPORTANT INFLUENCEING FACTOR [pic] 2% of the respondents feel that internet is one of the important influencing factors for purchasing a property and 48% of the respondents find it as not an important influencing factor. PREFERENCE TO SPECIFIC BRAND BUILDERS TABLE 5. 9 DISTRIBUTION OF RESPONDENTS BY THEIR PREFERENCE TO SPECIFIC BRAND BUILDERS |S. NO |PREFERENCE |NO OF RESPONDENTS |PERCENTAGE | |1. |Yes |16 |32. 00 | |2. |No |34 |68. 00 | | |Total |50 |100. 00 |
FIGURE 9: PREFERENCE TO SPECIFIC BRAND BUILDERS [pic] Majority (68%) of the respondents does not prefer to specific brand builders and 32% of the respondents preferred to specific brand builders. IMPORTANCE OF ADVERTISEMENT TABLE 5. 10 DISTRIBUTION OF RESPONDENTS BY THEIR VIEW ON IMPORTANCE OF ADVERTISEMENT |S. NO |IMPORTANCE |NO OF RESPONDENTS |PERCENTAGE | |1. |Very important |24 |48. 00 | |2. |Important |17 |34. 00 | |3. Less important |6 |12. 00 | |4. |Not important |3 |6. 00 | | |Total |50 |100. 00 | FIGURE 10: IMPORTANCE OF ADVERTISEMENT [pic] 48% of the respondents think that advertisement is very important factor in purchasing a property, 34% find it important, 12% find it less important and 6% of them find it as not important. SATISFACTION ABOUT THE PURCHASED PROPERTY TABLE 5. 11
DISTRIBUTION OF RESPONDENTS BY THEIR SATISFACTION ABOUT THE PURCHASED PROPERTY |S. NO |SATISFACTION |FREQUENCY |PERCENTAGE | |1. |Fully satisfied |11 |22. 00 | |2. |satisfied |25 |50. 00 | |3. |Satisfied to some extent |12 |24. 00 | |4. |Not satisfied |2 |4. 0 | | |Total |50 |100. 00 | FIGURE 11: SATISFACTION ABOUT THE PURCHASED PROPERTY [pic] 50% of the respondents were fully satisfied with the purchased property, 24% were satisfied, 22% were satisfied to some extent and 4% of them were not satisfied. [pic] CHAPTER VI FINDINGS, SUGGESTIONS AND CONCLUSIONS FINDINGS • 24% of the respondents searched the property for about 0-6 months of duration, 20% of the respondents searched for duration of 7-12 months, 2-3 years and above 3 years respectively and 16% of the respondents searched for a period of 1-2 years. 62% of the respondents searched for the property because they wanted to own one and 38% of the respondents searched because they were influenced to buy the property. This was due to the compulsion of friends and relatives. • 70% of the respondents were influenced by the location and 30% were not influenced by the location because most of them wanted to buy a property and so did not consider the location. • 28% of the respondents selected the location due to access to social amenities like educational institution, clubs, shops etc. 26% of the respondents selected the location due to access to work place, 22% selected for other reasons, 16% of the respondents selected the location because their friends and relatives reside there and 10% of the respondents selected the location due to transport facilities. 44% of the respondent’s source for searching the property was friends and relatives, 28% of the respondent’s source was broker, 20% of the respondent’s source was media and 8% of the respondent’s source was through exhibition and sponsor events. • 60% of the respondents were influenced by news paper, 28% were influenced by television and 12% of them were influenced by internet. • 43. 3% of the respondents buy The Hindu because they found it to be the best news paper, 33. 3% buy The times of India because the language was in simple terms, 16. 7% buy other news papers which include other languages and 6. 7% buy Deccan chronicle as it is the cheapest. 52% of the respondents feel that internet is one of the important influencing factors for purchasing a property because it was the only easiest and cheapest source for searching a property and 48% of the respondents find it as not an important influencing factor as they found it to be unreliable and one can get easily cheated. • Majority (68%) of the respondents do not prefer to specific brand builders and 32% of the respondents preferred to specific brand builders because they think that a brand builder would make them proud and add to their status. • 48% of the respondents think that advertisement is very important factor in purchasing a property, 34% find it important, 12% find it less important and 6% of them find it as not important. 50% of the respondents were fully satisfied with the purchased property as they were satisfied with the location, price, amenities and other facilities, 24% were satisfied as only some factors were available, 22% were satisfied to some extent and 4% of them were not satisfied as the price was not worth for the property owned. SUGGESTION • Nearly half of the respondents have opted for advertisement as an essential factor deciding purchase of property. More efforts can be taken in increasing the effectiveness of advertisement. • Majority of the respondents feel that internet is one of the important influencing factors. So more efforts can be done in improving advertisement in internet and make the customer feel that the information is reliable. • Majority of the respondents were influenced by the location. So efforts can be taken by the company to implement the property in good location with maximum amenities available to the customer. A majority of the respondents are influenced by news papers. So efforts ca
Cite this A Study on the Influence of External Factors in Purchasing Decision of Property” Essay
A Study on the Influence of External Factors in Purchasing Decision of Property” Essay. (2018, Jun 05). Retrieved from https://graduateway.com/a-study-on-the-influence-of-external-factors-in-purchasing-decision-of-property-essay/