- Buying Behavior
- 1 Introduction
- Different customers have different needs and these needs as well as decisions of buying differ according to the buying behavior of particular customers. The market is flooded with different products and these products have very little difference among each other. These products are manufactured as well as marketed according to the demand of the customers after complete assessment of buying behavior of different target audiences (Schiffman, 1993).
- In this report, the product which is focused are residential apartments and the buying behavior of different customers are assessed on the basis of different parameters like profession, demographics, psychographics etc which tend to modify the basic nature of the customer (Schwartz, 2004). Depending upon the buying behavior, marketers as well as product manufactures divide the customers into different segments and these segments are known as target audience.
- In real estate market, different customers have different sort of needs which design the aspirations of them while choosing for residential apartment (Blackwell and Engel, 2006). For example, a student would love to live near university in a small apartment on sharing basis whereas a retired wealthy person would opt for a sea facing home irrespective thinking of the cost. A tourist or a business visitor would opt for a home which can be rented or a serviced apartment for few years whereas a permanent citizen would be going for purchase of residential apartment in Australia. Thus buyer behavior changes the requirement of the residential apartments and a marketer should cater according to the need of the buyer. This report analyses the buying behavior of three respondents in Australia according to their buying behavior as well as their needs and requirements (Shell, 2009).
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- 2 Accommodation options
- There are several accommodation options in Australia in fact all these accommodation options cater to different target groups and customers having different behavior as well as requirements. Out of several accommodation options, 5 accommodation options which will be used in this report are as follows:
- 4 bedroom apartment in Toorak, one of the most posh areas in Melbourne. It should be near the beach as well as CBD and the environment should be very peaceful with no noise of traffic. (Price – AUD 4000 per sq ft. for purchase)
- 3 bedroom apartment for purchase in St Kilda which should be reasonably priced. The apartment should be near CBD as well as public transport should be accessible. (Price – AUD 3200-3500 for rent)
- Serviced 2 bedroom and kitchen apartment near CBD Should be closer to the Central business district of Victoria.Transit distance through bus or train should be very less. (Price – AUD 2200-2500 for rent)
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- 3 bedroom apartment near University of Victoria (VU) which can be shared with 2 other students from same university. Distance between apartment and university should be walking in case no presence of self vehicle. (AUD 1200/per student for rent to be shared between students)
- 2 Bedroom and 2 bathroom apartment for rent In sunshine north or braybrook area (AUD 3500 for rent)
- These are the 5 accommodation options which will be utilized in assessing the buyer behavior while purchasing or renting a residential apartment in Australia. These 5 different accommodations are completely different in their features as well as characteristics. There are no two same types of residential options thus helping in the unbiased and accurate study of the buying behavior. These different accommodation options are suitable for different target audiences and thus the response of all the respondents will be different depending on their behavior.
- 3 Respondents- Ranking and Explanations
- The response will be taken from 3 respondents on these 5 accommodation options. Apart from these rankings, background of respondent will also be considered.
- 3.1 Respondent 1
- 3.1.1 Introduction of respondent 1
- The first respondent is a male of age 62 years who is a businessman owning chain of restaurants in Melbourne and Sydney. The respondent is millionaire having many accommodations in the form of villas, holiday home and beach houses. But presently the respondent is looking for a peaceful and serene place where he can live peacefully for rest of his life with his family and the place should not be distant from the working area and central business district. The main motive of the first respondent is to purchase an apartment which is spacious, luxurious as well as distant from the traffic.
- 3.1.2 Respondent 1 Rankings
|1||4 bedroom apartment in Toorak for purchase||1|
|2||3 bedroom apartment on rent in St Kilda||2|
|3||2 bedroom service apartment near CBD’ Victoria||3|
|4||3 bedroom near University of Victoria (VU) for sharing||5|
|5||2 Bedroom and 2 bathroom apartment for rent in Braybrook or Sunshine north||4|
- These were the ranking given by the first respondent to the accommodation options. The first ranking is given to a 4 bedroom apartment in one of the most posh areas in Melbourne – Toorak.
- 3.1.3 Explanation of Rankings
- The explanation of the above rankings given by respondent was that he wanted to purchase an apartment for the whole family for life time (Deaton & Muellbauer, 2009). Respondent 1 wants to purchase a flat which is posh area of Melbourne and away from the street noise and traffic. The major purpose of this apartment is to have a place where he can live not far away from his working area as well as spend leisure time with his family. At an age of 62 years, he is not concerned about the prices of the property and will not compromise his requirements if the price is higher than expected.
- 3.2 Respondent 2
- 3.2.1 Introduction of respondent 2
- Respondent 2 is a student in university of Victoria and is not having a steady income. He is presently in his 2nd year of graduation in business communication. Age of this respondent is 22 years and is un-married. His family lives in NSW and he has been admitted in the University of Victoria to complete his graduation. Respondent 2 have the monthly rent paying capacity of 1500 to 1700 AUD and his prime requirement is close location from university campus and public transport system so that he can travel to different locations for a part time job. The major concern while choosing an accommodation by the respondent 2 is that he wants accommodation nearby university and also a place where he can have part time job.
- 3.2.2 Respondent 2 Rankings
|1||4 bedroom apartment in Toorak for purchase||5|
|2||3 bedroom apartment on rent in St Kilda||3|
|3||2 bedroom service apartment near CBD.||4|
|4||3 bedroom near University of Victoria for sharing||1|
|5||2 Bedroom and 2 bathroom apartment for rent in Braybrooks or Sunshine north||2|
- These are the rankings given by the respondent 2 and the first rank is given to the option of sharing a 3 bedroom flat which is near University of Victoria. The major criteria of living near university are getting fulfilled because of this option (Solomon, 2004). Thus the student has rightly marked the ranking as 1 for this bedroom flat which is close to university campus.
- 3.2.3 Explanation of Rankings
- Respondent 2 is a student who is in graduation years in university of Victoria. He is from a middle income group family hence he wants a flat which can be shared among the 2 other students from same university. This strategy will reduce the burden on all the students. The flat is located in the vicinity of business district where this respondent can have part time job thus helping him financially (Gaines, 2005). The apartment is also located near the university thus every other student can commute to the university without wasting much time. The respondent wants a cheap accommodation option thus in case he gets a cheaper option with less amenities then he will switch to the cheaper accommodation option.
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