Factors Affecting Consumer Behavior in the UK Real Estate Industry

This literature review examines consumer behavior within the UK real estate industry, highlighting the various factors that influence purchasing decisions. The report begins with an introduction to consumer behavior and its significance in the real estate sector. It then explores the core concept of consumer behavior in real estate, emphasizing the importance of understanding customer attitudes and expectations. The main body delves into the factors that significantly influence consumer behavior, including location, pricing, personal disposable income, lifestyle, motivation, knowledge, learning, perception, and past experiences. The report concludes by summarizing the key findings and emphasizing the importance of considering consumer behavior in the real estate market. The report also contains references to the sources used.

ASSESSMENT 1
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Table of Contents
INTRODUCTION...........................................................................................................................3
AIM-................................................................................................................................................3
MAIN BODY ..................................................................................................................................3
Concept of consumers behaviour in real estate industry.............................................................3
Factors influencing the consumer behaviour in real-estate industry...........................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Customers are the heart of the company or industry, without customers it is not possible
that company can achieve success in the market. The behaviour of consumers changes very
frequently (Wu and Brynjolfsson, 2015). Thus, it is very complex task to study the behaviour of
consumers. There are many factors that influence the behaviour of consumers in all types of
products and services. This present Literature review will discuss the factors influencing
consumer behaviour in the real estate industry of UK. It is fact that the positive attitude of
customers towards the products is directly affects the profitability and sales of the company.
AIM-
"To study the factors influencing consumer behaviour in the real estate industry of UK."
MAIN BODY
Concept of consumers behaviour in real estate industry
According to the Lantos, (2015) consumer behaviour is the study of how people make
decisions about what they buy, want, need or act regarding products, services or company.
Consumers are very important stakeholders of the company or industry. The study of the
behaviour of consumers is not an easy task because of their changing attitude. In real estate
industry, it is not easy to gain the optimum satisfaction and understand the behaviour of
consumerism. Real estate influence the economy of United Kingdom by being an important
driver of economic growth and development. Real estate industry includes residential,
commercial as well as industrial buildings. There are tow types of determinants of consumer
behaviour which are internal and external. Both these determinates affect the behaviour of
consumers in real estate industry both in positive and negative manner.
Scott, (2017) said that, In real estate industry, the expectation of consumers are to make
real estate decisions which maximise their utility as well as wealth in the given price. In real-
estate industry, the agents used to attract customers by making the great combination of
emotional and practical marketing. In addition to this, location is the major element that attracts
customers towards their products and services. Every people wants to leave in a peaceful, silent
as well as beautiful place. Thus, real-estate agents also promote their products (land, building,
etc.) whose location is very attractive. In order to understand the behaviour of consumers,
marketing plays a vital role.
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Factors influencing the consumer behaviour in real-estate industry.
According to the Lake, (2017) there are many factors that influence the consumer
behaviour in real-estate industry. Location of the building or land is one of the major factor
which affects the buying behaviour of the people. All people wants land and building which will
be productive as well as convenient to them. Like before publishing the land the for investment,
consumers will evaluate the productivity of land by its location such as contact to roads, which
type of area around the land and some other things. Similarly, before the purchasing the building
of residential or commercial purpose, consumers will check the area of the building, transport
facility such as auto, bus, metro or trains, surroundings and many other facilities. In addition to
this, location is the premier factors when a person is going to purchase a land or building for
hotel, resort and restaurants because location matters in this type of businesses.
Radojevic, Stanisic and Stanic, (2015) stated that, pricing is also another factor which
influences the behaviour of consumers in real-estate industry as well as in all types of industries.
Consumers are the very price sensitive people. People before buying the land and building, they
will evaluate the price of the products that whether its is worth or not for the money they are
paying. Basically, the behaviour of consumers in real-estate company will also get influenced
from the future price of the land and building. Consumer will also evaluate the future price of
the land and building. In addition to this, personal disposable income is also one another factors
that influence the behaviour of consumers. Consumer will high income group will buy land and
building which are highly values in the city or area while low income group of people will buy
according to there income. Thus, real-estate agents have to offer the products according to the
income level of consumers.
Xu and Lin, (2016) said that, lifestyle of people is also the factor which affects the
consumer behaviour in the real-estate industry. Lifestyle is the way a person lives in a society as
well as express things in the environment. It is determined by the interest, opinion of the
customers as well as the activities that shape their whole pattern of acting and interacting in the
world. The consumers with high standard of living will purchase the land and building in posh
areas whereas the customers who medium living standard will not buy the land and building in
posh areas. Thus, this is also one the factor which influence the behaviour of customers.
According to the Lee and Coughlin, (2015) the level of motivation is also one the factor
which affects the behaviour of consumer. The needs and demands of each and every customers is
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different such as biological needs, social needs, physiological needs etc. It is fact that the nature
of the needs is that some more urgent whereas others are less pressing. Thus, the requirement
becomes a motive when it is most urgent to lead the person in order to obtain satisfaction. Like,
people who wants to buy home or land for living as it is the necessary need which in result
become motive to purchase according to the income and perception. Thus, it is a good
opportunity for the real-estate agents to find the customers who are in need of land and building
and offer them discount or any other offers to change their decisions for buying.
Cervero, (2018) stated that, knowledge and learning is also one of the factor which
influence the behaviour of consumer in real-estate industry. If consumer have knowledge about
the land and building that it is most precious asset of the life, those customers will buy more land
and building as they have knowledge. Knowledge will directly affect the decision making of the
individual to purchase the product. In addition to this, perception is also affected the decisions
making of consumer in real-estate industry. There are five senses where the person senses.
Beside the basic senses(taste, touch, smell, learning and sight) there is a sense of balance, sense
of direction.
According to the Morosan and DeFranco, (2016) past experience is also a factor which
influence the behaviour of consumers in both positive and negative way in real-estate industry. It
is fact that a person who buy any product will experience something which is somewhat good
and bad both. Consumers who past experience is good, they will surely buy more land and
buildings such as they make more profit when they resale it or they are satisfied with but if any
person have bad experience than they will not buy the land and building such as they bear any
loss or fraud or any other issues. Past experience really matters in purchasing of land and
building. In addition to this, they also reference of the person also affect the decisions making of
the consumers. For example, if any family member or friend have referred that the particular
good and services are good than they will buy land and building and same as opposite.
CONCLUSION
The above literature review concluded that consumer behaviour is very important
concern of the real-estate industry. The factors which are influencing the behaviour of consumers
in real-estate industry was included in the detailed.
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REFERENCES
Books and Journals:
Cervero, R., 2018. America's suburban centers: the land use-transportation link. Routledge.
Lake, R.W., 2017. The new suburbanites: Race and housing in the suburbs. Routledge.
Lantos, G.P., 2015. Consumer behavior in action: Real-life applications for marketing
managers. Routledge.
Lee, C. and Coughlin, J.F., 2015. PERSPECTIVE: Older adults' adoption of technology: an
integrated approach to identifying determinants and barriers. Journal of Product Innovation
Management, 32(5), pp.747-759.
Morosan, C. and DeFranco, A., 2016. It's about time: Revisiting UTAUT2 to examine
consumers’ intentions to use NFC mobile payments in hotels. International Journal of
Hospitality Management, 53, pp.17-29.
Morosan, C. and DeFranco, A., 2016. It's about time: Revisiting UTAUT2 to examine
consumers’ intentions to use NFC mobile payments in hotels. International Journal of
Hospitality Management, 53, pp.17-29.
Radojevic, T., Stanisic, N. and Stanic, N., 2015. Ensuring positive feedback: Factors that
influence customer satisfaction in the contemporary hospitality industry. Tourism
Management, 51, pp.13-21.
Scott, P., 2017. Geography and retailing. Routledge.
Wu, L. and Brynjolfsson, E., 2015. The future of prediction: How Google searches foreshadow
housing prices and sales. In Economic analysis of the digital economy (pp. 89-118).
University of Chicago Press.
Xu, B. and Lin, B., 2016. Assessing CO2 emissions in China’s iron and steel industry: A
dynamic vector autoregression model. Applied Energy, 161, pp.375-386.
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