Introduction To Marketing : Sample Assignment

Factors affecting the price of a house in real estate business
Introduction
Marketing is the major point of focus for the success of any business in the current world. Some
business ventures are more lucrative than the others, but with no proper marketing of the
business irrespective of their lucrativeness, it would be on the verge of posting dismal
performance in the long run Malhotra (2015). Due to appreciation in the prices of some
commodities like pieces of land have made investors to diverge from other businesses to the real
estate business (Babin & Zikmund, 2015). It is seen as the long term permanent investment and
in the preference of investors. In the real estate business, its involved commodities have been
experiencing value increase with time. Transactions in this business venture involves buying and
selling of the piece of land, building houses of different types and sizes and either renting them
to the tenants, leasing them or permanently selling the houses to the customers in need
(Schneider & Kearney, 2013). Continuous increase in the value of pieces of land make the value
of the real estate be on the hike and this is preferred by the business people all around the world.
Various factors are supposed to be considered before venturing into any kind of business (Zahra,
Wright & Abdelgawad, 2014). Specifically, for the real estate business, the business operators
are supposed to ensure that they have high negotiation skills. Required negotiation skills are not
limited to this type of business alone but to other business opportunities too Conrad & Newberry,
(2012). These skills are important in running of this business to improve the bargaining power
beyond that of the buyers since if the buyer overpowers the seller in the price negotiation
process, the property is most likely to be sold at the lowest price possible in the favor of the
buyer (Siewiorek, Saarinen, Lainema, & Lehtinen, 2012); Schneider (2012). Another major
factor that would be important in the real estate business is the prior knowledge of the existing

price in the market. This would help to set the quoting price of either the piece of land and house
that you plan to rent out, lease, sell or even buy. Houses being one of the basic necessities in life
of human beings, their prices have been appreciating year in year out depending on some of the
factors such as the security of the place where the house is constructed, the area coverage of the
house, the age of the house and many other factors that can be brought on the negotiation table
Du & Zhang (2015); Hammond, Keeney, & Raiffa, (2015). This report is therefore aimed at
identifying some of the factors that could be playing part in the price determination of the houses
in Sydney city. Houses constructed in the remote areas and at distant places from the city centers
tend to have relatively lower prices compared to those at the nearby or at the heart of the cities.
Research objectives
The key goal for conducting this research was to determine the factors contributing to the price
changes of a house in real estate business. In order to the meet that general objective, specific
objectives were as stated below;
1. To determine the relationship between selling price of a house and the area coverage of a
house.
2. To determine the correlation between age of a house and the price for the house
3. To assess if there is a mean difference between selling price for houses in the city and
those in remote areas
4. To generate the multiple linear regression model that would be used in determining the
selling price of houses in Sydney city.

Research questions
1. Is there any relationship between selling price and the area coverage of a house?
2. Is there any correlation between the age of a house and the selling price of a house?
3. Is there significant mean difference between selling price for houses in the city and those
in the remote areas?
4. What is the multiple linear regression generated to predict the selling price of houses in
the city?
Methodology
In this section of the project, we shall cover subsections such as the research design, data
collection procedures, targeted and sampled population, reliability and validity of project
instruments and finally, the data analysis that will specify the used statistical techniques in the
manipulation of the collected data.
Research design
This is the procedure followed in correlating the research questions, data collection, data analysis
and interpretations (Myers, Well, & Lorch, 2013); Ritchie, Lewis, Nicholls, & Ormston, (Eds.).
(2013). In this project, researcher adopted the case study of the rising prices of the houses in the
cities siting an example of Sydney city. Taking this into consideration, the researcher was
capable of using the phenomenon and collect data for examination. The collected data were both
qualitative and quantitative. Qualitative data are the information obtained which are non-numeric
Lewis (2015); Taylor, Bogdan & DeVault, (2015). Such information are particularly obtained
through the interviews and can be in the form of audio recordings, texts etc. for instance, in this
project, data that were collected resulting to the variables of sex of the participants and their

levels of education were the categorical variables that held the qualitative data. On the other
hand, quantitative data are the numerical data obtained from the participants in the data
collection process and the resulted variables contain numerical cases (Bryman, & Cramer, 2012;
Criddle, & Stanley, 2012; Cox, & Mann, 2012). In this project, a number of questions resulted to
the numerical variables that were used in the data analysis i.e. area coverage of the house, age of
the house, the number of bedrooms a house has etc. descriptive survey design was employed in
this research aimed at evaluating the factors leading to house price changes in the real estate
business.
Sample population
Real estate business people, house owners in Sydney, house owners in different parts in Australia
and the residents in Sydney formed the targeted population. A population is a set of elements
under study (Anderson, Sweeney, Williams, Camm, & Cochran, 2016). A sample is a subset or a
fraction of the population under study and the sample size is the finite number of elements a
researcher had decided to engage in the study Button et al (2013); Charan, & Biswas, (2013). In
this case, the researcher engaged 20 people to respond to the questions structured in the
questionnaires. The sample used was believed to provide the values that represented the true
picture of what was happening in the real estate business in Sydney Australia.
Data collection procedures
This is the process of gathering data from the participants with respect to the subject of study
Englander (2012). In the data collection process, data collection methods that were used by the
researcher were interviews and questionnaires. The questionnaires were taken to a number of
people where some of them were house owners in Sydney, others were house owners in other