ANNEXURE II

STUDY ON THE BUYING BEHAVIOUR OF HIGHER MIDDLE INCOME HOUSING FLATS BUYERS IN CHENNAI

A project proposal

(Submitted by Jothi Kannan GS, Roll No: 200825305)

1 NEED FOR THE STUDY

 Growing Real estate

 Increased Builders
 Ever Increasing Buyers
 Raise In Standards of living
 Loans available @ affordable Interest

2 REVIEW OF LITERATURE

• Consumer Behavior Applications to Real Estate Education

-- Karen M. Gibler* and Susan L. Nelson

Most real estate study is based on neoclassical economic theory that assumes people make
rational economic decisions about renting and buying real estate as part of their attempt to
maximize utility. Most real estate researchers and educators do not examine the human
influences that real estate consumers have on real estate demand. Instead, most real estate
educators continue to approach the market from a production
orientation rather than a consumer marketing orientation.

Rather than ignore the human element of decision-making, or put all aspects of nonfinancial
decision factors in a black box called ‘‘tastes and preferences,’’ real estate students,
teachers, researchers and practitioners can benefit from integrating the study of consumer
behavior with the economic approach to real estate.

Internal Determinants of Consumer Behavior Each consumer possesses a unique combination of mental and emotional
characteristics. This section focuses on several established consumer behavior classifications of these internal
characteristics, including motivation, attitudes, perception, personality, self-concept and lifestyle.

Most real estate purchases and leases are considered high involvement goods1 that require
complex decision-making.2 Thus, the three major comprehensive models of complex
consumer decision-making (Nicosa, 1966; Engel, Kollat and Blackwell, 1968; and Howard
and Sheth, 1969) would be applicable to most real estate decisions. These models trace the
psychological state and behavior of a consumer from the point at which he or she perceives
a need through the purchase and use of a product tosatisfy that need. The following
sections examine some of the key elements of thesemodels: information search, evaluation
of alternatives and decision rules
3.1 PRIMARY OBJECTIVE

Factors influence the buyer behavior in purchasing flats in chennai.

3.2 SECONDARY OBJECTIVES

• Degree of preference over flats

• Role of brand name
• Buyers awareness on legal issues
• Preference on environment

4 METHODOLOGY

Research Design : Descriptive

Targeted Population : Middle & higher middle income group

Sampling technique : convenient sampling

Sample size : 100 respondent

Data collection technique : Questionnaire

Techniques for analysis : Chi square

5 LIMITATIONS

 Degree of responsiveness to the survey

 Questionnaires are restricted to maximum of 100 samples
 Target audience restricted to middle income group and hire middle income group.

6 EXPECTED DELIVERABLES

This project will mainly focus on the following,

 Why They Buy à Factors influencing

 How They Buy à Credit / Cash?
 Where They Buy à Environment preferred

We will be able to find out the needs & requirement of buyers while purchasing
housing flats which may give clarity to the builder in future constructions.
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