Investigation of House Buying Behaviour in Malaysia

INVESTIGATION OF HOUSE BUYING BEHAVIOUR IN MALAYSIA 1
Investigation of House Buying Behaviour In Malaysia
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Table of Contents
1.0.0 Introduction.............................................................................................................................4
1.1.0 Background information.....................................................................................................4
1.2.0 Problems statement.............................................................................................................5
1.3.0 Objectives............................................................................................................................6
1.4.0 The scope of the study........................................................................................................6
1.5.0 Limitations of the study......................................................................................................7
1.6.0 The significance of the research..........................................................................................7
2.0 Literature review........................................................................................................................7
2.1 Malaysia housing...................................................................................................................8
2.2 Housing purchasing models...................................................................................................8
2.2.1 The motivation theory.....................................................................................................8
2.2.2 Theory of Reasoned Action.............................................................................................9
2.2.3 Engel, Kollet, Blackwell Model......................................................................................9
2.2.4 Housing Adjustment Theory.........................................................................................10
2.3 Consumer behavior in housing marketing...........................................................................10
2.4.0 Factors affecting purchase behavior.................................................................................10
2.4.1 Price as an influence of consumer's purchase intentions...............................................11

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2.4.2 Self-concept as an influence of consumer's purchase intentions...................................11
2.4.3 Reference group as an influence of consumer's purchase intentions............................12
2.4.5 Location as an influence of consumer's purchase intentions.........................................13
2.5.0 Conceptualization..............................................................................................................14
3.0.0 Research methodology..........................................................................................................16
3.1.0 Research design.................................................................................................................16
3.1.1 Descriptive research design...........................................................................................16
3.2.0 Variables and measuring procedures................................................................................17
3.2.1 Purchase intentions........................................................................................................17
3.2.2 Self-concept...................................................................................................................17
3.2.3 Reference group............................................................................................................17
3.3.0 Data collection..................................................................................................................17
3.3.1Qualitative data collection..............................................................................................17
3.3.2 Quantitative data collection...........................................................................................18
3.4.0 Research instruments........................................................................................................18
3.4.1 Semi-structured questionnaire.......................................................................................18
3.5.0 Pilot study.........................................................................................................................19
3.6.0 Data collection procedures................................................................................................19
3.7.0 Reliability and validity of data..........................................................................................19

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3.8.0 Data Analysis and presentations.......................................................................................20
3.8.1 Sampling design and procedure....................................................................................20
3.8.2 Sampling technique.......................................................................................................21
3.9.0 Data analysis.....................................................................................................................21
3.9.1Descriptive data analysis................................................................................................22
4.0.0 Ethical considerations.......................................................................................................22
5.0.0 List of References.................................................................................................................23
6.0.0 Appendices...........................................................................................................................28
Appendices 1: Gnatt Chart.........................................................................................................28
Appendices 2 Questionnaire......................................................................................................29

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List of Tables
Table 1: House affordability..................................................................................18
List of Figures
Figure 1: Conceptual frame work (own diagram).........................................................18
Figure 2: Structure of the paper (own diagram)
..............................................................................................................19

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1.0.0 Introduction
This chapter provides the background of investigating the house purchasing behavior in
Malaysia. The section discusses the background information, definition of the research problems,
objectives, study scope and significance of the study.
1.1.0 Background information
Consumer purchasing behavior knowledge is significant to all business organizations.
Consumers purchasing behavior tends to vary considerably based on different factors such as
income disposal, preferences, quality of products, social influence, culture, legibility, education
among many others. Likewise, the housing industry faces the same trend of consumer behavior
in consumer products (Hyun & Fairhurst, 2017, p.118). Since housing entails real estate, it’s vital
to every economy. In Malaysia, housing has been of great importance in determining poverty and
economic level. However, there are just a few scientific reaches that have been conducted
regarding the Malaysian housing regarding consumer purchasing behavior. Thus provides a gap
for this study. Over the past decades, housing has been considered as the basic need of human
need and recognized as a significant development tool for restructuring society as well as
eliminating poverty level.
During the 1996 Istanbul Declaration on Human Settlements and Habitat Agenda,
Malaysian government committed billions of Ringgit Malaysia to provide adequate and
affordable quality houses. Consequently, in 1996” Zero Squatter by 2005” policy was

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implemented across the entire Malaysian country. Further, during the Malaysian govern
implemented Fourier pricing system on PPR schema in all major cities to enable all the low-
income earners to have adequate and affordable houses. This is an indication that house
affordability has been a significant concern in Malaysia, especially among the middle-income
earners. However, this has not yielded enough impact on the setting among the Malaysian’s
people.
A large number of Malaysians consumers tend to have low affinity to the type of house
constructed by the government (Mittal, 2015, p.143).The purchase behavior seems to lack
theoretical underpinnings to rationalize their decisions. Numerous controversial issues are
ranging from the house accessibility, affordability to quality in the Malaysia housing system.
House purchasing has been recognized as a world problem since it has the complexity of
information and perspective uncertainties. It is significant for both the government and private
developers to know the major factors that affect Malaysia people in buying the houses thus avoid
projects being abandoned without utilization. Therefore the study focuses on investigating
reasons that are behind Malaysian housing purchase behavior.
1.2.0 Problems statement
In Malaysia, the house is considered as a significant aspect of determining the level of
poverty and safety of people ((Hyun & Fairhurst, 2017, p.118). Various Malaysian acquire
homes through various means either building, buying or renting an apartment. Malaysian’s
government, as well as private developers, have worked so hard in building affordable houses
since so many people are not in a position to construct their own houses since the construction of

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homes is highly involving. However, Malaysia's house purchasing rate and behavior have been
dropping thus forms the basis of the topic to identify reasons affecting the purchasing rate(Mittal,
2015, p.142). By identifying the factors, government and a private developer will know what
type of house is preferred by customers, thus ensuring that houses are of good quality and needs.
1.3.0 Objectives
From the above insights of Malaysia housing, this study aims at filling the knowledge gap of
house purchasing behavior among the Malaysians. Thus To gather relevant information on the
research topic, the following research objectives will be considered:
 to collect and analyze theories related to house purchasing behavior in Malaysia
 To identify factors that influence the house purchasing decisions
 To identify the relationship between the identified factors and house purchasing decision
 Research questions
The following will form the research question of the study, to enhance authentic information
gathering about the topic:
1.4.0 The scope of the study
The study investigates house buying behavior in Malaysia since housing has been an
important aspect of determining the poverty and economic status of the Malaysian as well has
been one of the Malaysian’s government core genders in providing affordable houses over past
years. The paper thus looks at different theories associated by consumer purchasing behavior,