Rationality in Decision Making of Residential Property buyers: A Myth or Fact
V. Mydhili1, Sundari Dadhabai2
1V. Mydhili, Research Scholar, KL Business School, KLEF Deemed to be University, Guntur (A.P), India.
2Dr. Sundari Dadhabai, Associate Professor, KL Business School, KLEF Deemed to be University, Guntur (A.P), India.
Manuscript received on 07 March 2019 | Revised Manuscript received on 20 March 2019 | Manuscript published on 30 March 2019 | PP: 488-496 | Volume-8 Issue-5, March 2019 | Retrieval Number: D2811028419/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Objectives: To identify the various rational factors and behavioral factors affecting decision making of residential property buyers, to know the dependency of buying decisions on rational factors & behavioral factors and to find out the most prominent factor in each category. Method: A total of hundred residential buyers who previously purchased minimum one asset namely Independent house, flat in apartment and vacant land in Guntur, Andhra Pradesh are participated in the survey. The total data analysis for the study was done through SPSS tool. Result: Chi-Square test results for both the hypotheses shows P-Value of 0.001, so the influence of rational factors and behavioral factors on the decisions of residential property buyers is significant. The Weighted Scores also taken for rational and behavioral factors. Out of four factors the most influencing categories of the rational factors are “location and environmental factors “with weighted Scores as 4.4 & 4.448 respectively and the most influencing variable is “Peaceful & protective Environment” with a weighted Score of 4.64). In behavioral factors category the least important factor is “My buying decisions depend upon the decisions of others” with a weighted Score of 2.97 and most significant factor is “I save a part of my income for buying property “with a weighted Score of 4.41. So it is indicating that buyers are saving their part of income for buying property and buyers are giving much significance for their own individual analysis rather than merely depending on others. Conclusion: From the present analysis it is observed that the impact of rational factors is comparatively high on decisions. So the rationality in decision making of property buyers in residential realty market is a fact and we could also understand that the buyers are giving much value for their own individual analysis rather than purely depending on others in decision making. This study enriches the understanding of the role that rational and behavioral factors play in residential property market, with specific reference to emerging markets.
Keyword: Rational Factors, Behavioral Factors, Residential Property Buyers, Residential Realty Market.
Scope of the Article: Decision Making