Selp journal of Social Science

ISSN: 0975-9999
Vol-III: Issue,12
Special Issue – October 2012

A STUDY ON REAL ESTATE MARKETING WITH SPECIAL REFERENCE

TO APARTMENT PURCHASE
P. Balathandayutham,
Assistant Professor, Business Administration, DDE, Annamalai University
Dr. R. Sritharan,
Assistant Professor, Business Administration, DDE, Annamalai University

ABSTRACT
In modern years people have adopted themselves to an environment that is power-driven and
restless working. It becomes a tedious job for them to give out much time for constructing their
shelter for leading a comfortable life. In a busy life like this it becomes a boon for the real estate
promoters to build apartments and get benefit by selling it. Satisfaction of the purchasers plays a
vital role in purchasing/selling of an apartment. It is important to discover the satisfaction of the
users to develop the real estate sector because the real estate sector has huge growth over the past
decade on foot of the housing boom and the growth in multi-unit developments.

Keywords: Residential Satisfaction, Service Quality.

Introduction
The real estate sector in India has assumed growing importance with the liberalization of the
economy. The consequent increase in business opportunities and migration of the labor force has, in
turn, increased the demand for commercial and housing space. Developments in the real estate sector
are being influenced by the developments in the retail, hospitality and entertainment (e.g., hotels,
resorts, cinema theatres) industries, economic services (e.g., hospitals, schools) and information
technology (IT) –enabled services (like call centers) etc. and vice versa.
Real estate business
With the development of private property ownership, real estate has become a major area of
business. Purchasing real estate requires a significant investment and each parcel of land has unique
characteristics, so real estate industry has evolved into several distinct fields.
Home-buyer satisfaction with service quality is then the result of home builders providng service
that are perceived as meeting or exceeding buyer expectations.
Although much research has been done regarding home-buyer satisfaction with their house and

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builders‟ service, there is still a gap between builders‟ and home buyers‟ perception of quality (Torbica
and Stroh, 2001; Bashford et al., 2002). Torbica and Stroh (2001) showed that satisfaction with service
is the most important component shaping overall home-buyer satisfaction and that service is the area in
which builders demonstrated the poorest performance. Thus, builders need to identify and understand
buyer needs in order to constantly improve service.
Satisfaction
While customer satisfaction studies have not been undertaken in the construction industry, the
housing industry has conducted such studies. Most of these studies have been undertaken to
characterize the relationship between the customer (owner) and the construction companies. Compared
with the notable scarcity of investigations concerning customer satisfaction in the field of construction,
a rapidly growing number of studies in the service industries have been published over the past few
years. The results of the studies demonstrate strong correlation between customer satisfaction, or
service quality, and economic returns (Holm 2000).
Overall customer satisfaction
According to Parasuraman et al. (1988), service quality can be defined as an overall judgment
similar to attitude towards the service and generally accepted as an antecedent of overall customer
satisfaction (Zeithaml and Bitner, 1996). Parasuraman et al. (1988) have defined service quality as the
ability of the organization to meet or exceed customer expectations. It is the difference between
customer expectations of service and perceived service (Zeithaml et al., 1990).
Reliability
In recent contexts, reliability is defined as the “ability to perform the promised service dependably
and accurately” (Parasuraman et al, 2005). Similarly, reliability is concerned with the delivery of the
service in good condition, on time, and exactly as it was displayed. Consumers place significant
emphasis on service outcome and service quality, which will suffer if a service provider fails to deliver
as expected (Zeithaml, et al., 1996). . Such failures can result in significant costs to the firm, such as
lost customers and negative word of mouth (Bitner, et al., 2000). Consequently, service failure is a
driving factor explaining customer switching behavior [McCollough, et al., 2000). Thus, reliability
hold the important position in customer service.
Timeliness
One of the noteworthy benefits is timeliness service delivery (Holloway et al., 2003). In residential
purchasing, purchasers‟ benefit in the fact that they receive timely information directly from the
website and salesperson of the company (Zeithaml, et al,. 2000). Szymanski and Hise were one of the
first to empirically test a conceptual model finding that convenience and timeliness of the realtor
performance were primary determinants in consumer purchase experiences. It is noted that realtors
must consider “timeliness” to keep the customers in tact.

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Empathy
Empathy is defined as the ability of the organization to provide personal attention and care to
customers (Parasuraman et al., 1985; 1988; Yong, 2000). The empathy dimension of service quality is
defined as showing care and provides individualized attention to purchasers.
Assurance
On the other hand, responsiveness and assurance were positive implying that customer
expectations were actually exceeded by the service provided. Assurance is known as the level of the
service delivered to customers that is believable and can be trusted (Parasuraman et al., 1988). The
assurance dimension of service quality refers to the ability of realtors to provide trust and confidence to
realtors. It is seen as highly dependent as it gives an idea in connection with the interpersonal
communication to which achieving the level of knowledge sharing. In addition, it is also expected that
the ability to show credibility and courtesy play an important role in the process of knowledge sharing
among between them.
Research methodology
The developed questionnaire was circulated among apartment purchasers for their personal usage.
The questionnaire consists of 18 questions and is divided into two parts. The first part of the
questionnaire includes Satisfaction, reliability, timeliness, knowledge and empathy. The second part
consists of general information of the respondents, such as age, gender, occupations, number of family
members and household income. 200 samples were circulated and 105 were received with full
response remaining were disqualified due to biased information. Samples were collected in cuddalore
town, as it is head quarters of cuddalore district.
ANOVA for overall satisfaction with respect to age. In order to find the significant difference
among the respondents with respect to their age, ANOVA were performed and the result implies that
there is no significant difference exists among the respondents with respect to their age towards overall
satisfaction (F=1.472; p=0.227). Leading a comfortable life under a secured shelter is a wish for
everyone in the world, whether they belong to the younger generation or elder generation. So the
realtors should make it a point that they provide a house that is secured in all ways. If the realtors
succeed in the point, it is very easy for them to win the positive approach of the purchasers.
ANOVA result implies that there is significant difference exists among the respondents with
respect to their age towards service reliability (F=1.472; p=0.005). That is, the opinion of below 30 age
respondents (Mean=3.40, S.D=2.066) is significantly different from above 50 age (Mean=1.18,
S.D=0.603), Elder generation people are used to the traditional facilities that are available to satisfy
their basic needs. But the younger generation people can be satisfied only if the apartment is provided
with facilities of modern techniques. The modern technique facilities are provided now- a- days by the
realtors in all the apartments. So it is very easy for realtors to win the satisfaction of younger
generation when compared to the elder generation.

ANOVA for timeliness with respect to age. In order to find the significant difference among the
respondents with respect to their age, ANOVA result implies that there is significant difference exists

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among the respondents with respect to their age towards service Timeliness (F=2.812; p=0.043). That
is, the opinion of below 30 age respondents (Mean=4.00, S.D=0.000) is significantly different from 41
to 50 age respondents (Mean=3.30, S.D=1.212), Offering service at correct time in the first and
foremost need the success of any business. In this context, if the timely delivery of house is not done or
the realtors fail to make the delivery of apartment, it will create a negative impression about the
realtors in the minds of purchasers and this will create dissatisfaction. Overall this dissatisfaction level
is more among the elder generation when compared to younger generation.

ANOVA for Service knowledge with respect to age. In order to find the significant difference
among the respondents with respect to their age, ANOVAs result implies that there is no significant
difference exists among the respondents with respect to their age towards service knowledge (F=2.270;
p=0.085). It is a duty of every realtor to provide adequate knowledge about their service to the
purchasers, because the purchasers are not basically aware of the factors to be considered while
purchasing of an apartment. So, regardless of age, purchasers have no difference in opinion about the
variable of adequate service knowledge.

ANOVA for empathy with respect to age. In order to find the significant difference among the
respondents with respect to their age, ANOVA result implies that there is significant difference exists
among the respondents with respect to their age towards service empathy (F=3.410; p=0.020). That is,
the opinion of below 30 age respondents (Mean=3.80, S.D=1.932) is significantly different from 41 to
50 age respondents (Mean=2.50, S.D=1.321), Everybody in the world likes to be treated in a
respectable manner. Everyone likes that they should be contacted in a very polite manner. Realtors,
while approaching the purchasers, should be very careful and make it a point that they talk to them
very politely and in a friendly manner. Since the 41-50 age group respondents belong to the elder
generation, they like to demand higher respect from realtors. So their satisfaction level is low when
compared to the below 30 age group respondents.

Findings and Conclusion

The real estate corporate has to concentrate on discovering the various factors for customer‟s
satisfaction. The realtors must identify the satisfaction factors relating to residential purchase. Overall
satisfaction, reliability, timeliness, knowledge and empathy are related factors in residential purchase.
Taking the overall satisfaction and service knowledge, there is no difference in opinion among the
younger and elder generation. But regarding the reliability, timeliness and empathy, it seems a bit
difficult to satisfy the elder age groups when compared to younger generation. To conclude, real estate
sector especially in apartment purchase, the consumer‟s satisfaction is crucial and essential.

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SELP Journal of Social Science 435 Special Issue – October 2012