The assignment looks into the consumption decisions which go into renting houses by customers. The assignment takes into account the interviews conducted with three people from different income backgrounds and demographic groups who intend to buy the house. The report requires choosing the interviews of three out of five people to study their consumption decisions and purchase criteria while renting properties. The study is made taking the first three respondents into account. The first respondent is a student; the second is a bank manager while the third is an Australian housewife. The first section evaluates their ranking decisions of the various criteria like rent, bedrooms, toilet, parking and distance from the city. The second section judge the respondent on the basis of their demographics like income, nationality, age and marital status. The sections study the difference in the differences of their purchase preferences. The last section is a recommendations for the homeowner divided into two divisions. The first points out to the characteristics of the likeliest customers while the next section applies to the relevant learning and memory theories. The study has been conducted on the basis of the questionnaires and the answer provided by the first three respondents.
The rankings of the first, second and the third respondent of their evaluative criteria are different because of the difference in their personal traits and segmentation on the basis of income and other factors. The respondent 1 gave the highest priority to rent and travelling expenses owing to his possible low income (Khan, DivyaRana & Singh, 2014). The second respondent was richer and preferred nice bedrooms and bathrooms more important to rent. The third respondent gave low ranking based on priority to travelling expenditure which shows he has his own car (Zalejska-Jonsson, 2014).
The first respondent gave 60 score to rent, 5 to bedroom, 10 to bathroom, 5 to parking, 5 to renovation and 15 to distance from city. This shows that he is affected more by the judging functions of his personality traits. The respondent is judgmental about the rent to the greatest extent because he is concerned about expenditure towards rent. His next important area of consideration was distance from the city (Jayakumar & Velmurugan, 2016). It must be noted these two are expenditure and he was concerned reducing them.
The respondent in question gave highest priority to rent of the accommodation and was less concerned about other factors like bedroom, bathroom and parking. As far as segmentation is concerned, it can be commented that he belonged to low or medium group who wanted to reduce expenditure for rent and travelling cost (Anthonisz & Perry, 2015).
As far as personality trait of the second responsibility is concerned, he is ruled by the perceiving functions and trusts the quality of the accommodations. He pays more priority to bathroom, bedroom, parking and renovation. It can be commented that respondent 2 belongs to high income group which is ready to spend high amount of money and is not concerned about it. The respondent is more concerned about the accommodation of rooms and bathroom and is judgmental about them (Olmedo & Ward, 2016). It can also be stated that he neatness conscious and loves leading a high standard life.
The third respondent gave equal priorities to rent, bedroom, bathroom, parking and renovation. He gave the least priority to distance from city centre which shows that he has his own accommodation. He is concerned about the bedroom and the bathroom which shows he is concerned about hygiene (Bradley, 2017). He has given high priority to renovation and furnishing which shows that he was concerned about his security more than money.
The rankings of the evaluative criteria of the first three respondents are different due to their differences on the basis of demographic theories. The first respondent is a student and works part time at a grocery store. Hence, as far as income is concerned he belongs to a low income group. Automatically, he would look for an accommodation that is low in rent which would allow him to save some money. As far as his age is concerned, he is male, young, bachelor whose family hails from Singapore and earns less than average income (Zalejska-Jonsson, 2014).
The second respondent is a bank manager by profession so he belongs to the higher income group. He evidently has the power to afford costly accommodation but is concerned about the decorations of the rooms and the bathroom. As far as education is concerned he is a post graduate and is a divorcee. He is a middle aged person and his family is fairly rich. He is an Australian who is more concerned about comfort and is ready to pay for it (Ferrer, 2016).
The third respondent is a housewife whose family income is lower that the second respondent but higher than the first. She is an Australian person whose family income is steady. She is married and presumably owns a car evident for her preference for parking facilties (Toczydlowska & Unicef., 2016). Her preference for accommodation rent is as important as bedroom, bathroom and kitchen conditions. This shows that her husband earns enough money to afford a good accommodation and good well decorated rooms. This shows that they own a car and the distance from the city is not a matter of concern. The family is concerned about renovations and furnishing. This shows the family leads a high quality of life, though not as high as the bank manager. As far as age is concerned she is a middle aged married housewife. She is sympathetic and it can be assumed that she donates to charities and social events (Weijters & More, 2015).
The rankings as far as demographics segmentation are concerned, the bank manager or the second respondent is the highest. He is followed by the housewife, the second respondent followed by the first respondent who is a student and a part time grocery employee.
The choices of the rental properties of the three respondents are different owing to the varying income and lifestyle. The first respondent is a student and a part time grocery employee. Demographically he belongs to the lower income group so the rent expenditure features highest in his rental priorities list. He gives less important to décor of rooms, kitchen and bathroom because of his limited income to afford them. The bank manager earns high salary so can afford to pay high rent monthly. His psychographic outlook is more concerned about the décor of the rooms because he can afford them. The housewife is equally particular about the rent and the rooms because she belongs to the high income group owing to the income of her husband.
The characteristics of the likeliest customer would be the one who is financially capable and has the taste for well decorated and furnished rooms. The bank manager is the likeliest customer among the three based on his demographics. He is a bank manager, hence belongs to the high income group. He is a divorcee who has a daughter who takes the financial decisions. He being close to old age prefers a peaceful and does not prefer travelling to the city much, evident by his low preference to parking facilities. Hence, considering his age, financial capabilities and tastes, the second respondent is the likeliest tenant.
The bank manager or the second respondent can be attracted by using behaviorist learning theory and constructivist theories. The behaviorist theory states that individuals learn from stimuli and responses. The bank manager by the stimuli of his age and professional achievement will prefer a better decorated accommodation which is well furnished. The homeowner should promote the well furnished rooms, kitchen and bathroom to attract the bank manager. The bank manager is aged fifty four and hence has a great experience due his age and experience. The homeowner should know that the old man is experienced and should present the original measurements of the rooms and toilet to attract him (Siemens, 2014).
The homeowner must take into account working memory model to attract the old man. The visuo-spatial sketchpad will help the bank manager to retain a memory of the rooms if he sees them. The homeowner should show the rooms to the bank manager to attract him to rent the house (Logie, 2014).
Conclusion:
The study reveals that people take various facts while renting properties. The income group, the age, psychological setup and the other factors impact these important decisions. The memory and learning of the customers play a very important role in deciding their purchase decisions. For example, the student and part time worker’s income is low, so he will prefer an accommodation with low rent. The bank manager is rich, so he can afford expensive accommodation with well furnished and decorated rooms.
References:
Anthonisz, S., & Perry, C. (2015). Effective marketing of high-rise luxury condominiums in a middle-income country like Sri Lanka. Journal of Work-Applied Management, 7(1), 61-83.
Bradley, S. (2017). Inattention to Deferred Increases in Tax Bases: How Michigan Home Buyers Are Paying for Assessment Limits. Review of Economics and Statistics, 99(1), 53-66.
Ferrer, E. R. (2016). Transformation through Accomodation: Reforming Juvenile Justice by Recognizing and Responding to Trauma. Am. Crim. L. Rev., 53, 549.
Jayakumar, N., & Velmurugan, R. (2016). The Acquirer’s Preference in the Purchase of Housing Property with Reference to Coimbatore. Global Journal For Research Analysis, 5(2).
Khan, S. M. F. A., DivyaRana, D., & Singh, H. (2014). An Empirical Study of Organised Retailing Strategies in developing customer loyalty, changing purchase decision and developing satisfaction in Consumer of Indian Sub-Continent. Int. J. of Multidisciplinary and Current research.
Logie, R. H. (2014). Visuo-spatial working memory. Psychology Press.
Olmedo, C., & Ward, P. M. (2016). Model subdivisions: The new face of developer lot sales for low-income colonia-type housing in Texas. Land Use Policy, 52, 181-194.
Siemens, G. (2014). Connectivism: A learning theory for the digital age.
Toczydlowska, E., & Unicef. (2016). Children in the Bottom of Income Distribution in Europe: Risks and composition (No. inwopa838).
Weijters, G., & More, A. (2015). Comparing Income and Housing of Former Prisoners After Imprisonment with their Situation Before Imprisonment. European Journal on Criminal Policy and Research, 21(1), 35-48.
Zalejska-Jonsson, A. (2014). Impact of energy and environmental factors in the decision to purchase or rent an apartment: The case of Sweden. Journal of Sustainable Real Estate, 5(1), 66-85.
Zalejska-Jonsson, A. (2014). Impact of energy and environmental factors in the decision to purchase or rent an apartment: The case of Sweden. Journal of Sustainable Real Estate, 5(1), 66-85.
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