Consumers Attitude Toward Apartment in Bangladesh Essay

All the actions have a motivational component that led him towards an action or behavior. A person needs, wants, interests and motives are changing and consumers’ behaviors are directed accordingly. Most of the businesses are on the principle of profit maximization and on the other hand consumers goals are to maximize their utility and satisfaction. As far apartment is concerned developers want their profit maximization and utility and satisfaction from consumers’ point of view. Housing or shelter is a physiological need for every human being. Purpose of the report This report is one of the requirements of our consumer behavior course. Despite this, we tried to evaluate and examine those factors that motivated them to undertake a buying decision and their perception and attitude towards apartment. Objectives of the report Identify and analyze the motivational factors that lead to consumers to buy an apartment, their perception about the apartment and market condition and trend in Real Estate Business. Scope of the report The report is a product of existing practices in the market. We were encouraged to reveal the current participation in the real estate business. In our report we examined the consumer behavior and learning (knowledge & information) towards owning an apartment. For our report we have prepared a questionnaire and asked people living in an apartment and potential buyers as well as people who are willing to rent an apartment. The other side of the coin that is developers is not responsive as far as cost profit and promotions are concerned. They are responsive to reply the questions of segment, target market and potentiality of the industry. Limitation of the report Time was the prime factor that dictates us to lower our sample size. Initially we tried to conduct 25 people (both living in an apartment and potential buyers) and 5 developers but in reality we conducted 15 (both living in an apartment and potential buyers) and three developers. Company’s management was not so much cooperative and provided inadequate information, which had a material, affect. We didn’t find any institution that formally gather information about real estate business and the structure of the industry. We found only BIDC that undertook a research on real estate in 1991. But after searching different newspaper offices we found some secondary information. We didn’t find any journal in our library as far apartment as well as real estate industry is concerned. Consumers were not homogeneous in determining the factors that persuade them to own an apartment. The scatteredness of the consumer poses limitation in comparison between factors influencing and persuading the decision making process. Methodology  At first we tried to gather secondary information and secondary data. But the volume of the secondary information was not adequate as a result we conducted a survey. Regarding the collection of the primary data we have prepared a questionnaire and in some extend we interviewed personally (Depth interview). So we may title our report as a combination of quantitative as well as qualitative research. We attached some news bulletin of real estate that may help to visualize the current position. Our sample is composed of 15 consumers and 5 developers. We covered only Dhaka city and selected area namely Gulshan, Bananni, Dhanmondi and Moghbazar. The variables used in our report are income, price, age, occupation, social status, employment and preferences. We followed finding analysis technique to come to a conclusion, which may or may not support our objectives. Background (inception) of the Industry The concept of apartment is not very old. In Dhaka city, The real estate business, especially apartment projects, started in the late 1970s and early 1980s. In Dhaka City, the Ispahani Group was the pioneer in this sector. In the early 1980s with the inception of Eastern Housing LTD, the business started flourishing. The industry growth rate is about 15%. More than 57 real state developers are now operating in this business and it is a booming sector of the economy. From the traditional perspective, people used to live in own house or as rental basis. After the independence, population of Bangladesh had risen very sharply in an alarming population growth rate. Due to this reason the demand of living facilities of huge population became a crucial and challenging problem to optimize the land, which will allow to accommodate a large number of people in relatively small land, the apartment concept had been created to meet the objective. As far Dhaka city is concerned the apartment can provide shelter for the large number of people. This situation welcomed the apartment business to flourish. However, at first the culture and traditional life style became the constraints to adopt this way of living. As time passed people modify their beliefs, attitude and perception. People became interested about the issue while the demand to own an apartment began to rise. Since the late 1980s to now on construction of apartments are increasing. Recently the competition among developers take an intense form that give more bargaining power of buyer over developers. Our report reveals that people are becoming more sensitive about the developers. They are searching for more information about the price, design, features and facilities of the apartment as well as the educational background of the developer. Many factors influence the consumer behavior and family life cycle.