REACTION PAPER

The study conducted by Jose Mari M. Lee and Eduardo G. Ong on factors affecting consumers' choice in
residential properties and the future of the real estate business in the Philippines provides valuable insights into the
various factors that influence consumer behavior in this industry. The research highlights the significance of cultural,
social, personal, and psychological factors in shaping consumer preferences and decision-making processes.
Understanding these factors is crucial for real estate developers and marketers to effectively engage with consumers and
tailor their strategies accordingly.

Cultural Factors: The study emphasizes that culture plays a vital role in shaping consumer behavior. Cultural
factors such as buyer's culture, subculture, and social class influence consumer preferences, reactions to pricing
strategies, advertising effectiveness, and brand perceptions. The research findings demonstrate that a substantial
number of respondents were influenced by their culture, the group they belong to, and their nationality. Marketers and
developers should acknowledge and incorporate cultural influences to develop marketing strategies that resonate with
their diverse target audiences.

Social Factors: The research recognizes the significance of social factors in influencing consumer buying
decisions. Family dynamics, reference groups, opinion leaders, social class, and subcultures all contribute to shaping
consumer behavior. The study reveals that respondents were particularly influenced by their family, roles and status, and
friends. Marketers must consider these social influences when developing strategies to effectively engage and influence
their target consumers.

Personal Factors: The study highlights the importance of personal factors in determining consumer choices
between rental and owner-occupied residential properties. Factors such as earnings, age, family size, and socio-economic
status significantly impact housing decisions. Work, salary, and views on wealth also play a significant role in consumer
behavior and spending, thereby influencing housing choices. The research findings indicate that personality, lifestyle,
occupation, and age have considerable influence on consumer decisions. Real estate developers should take these
personal factors into account to offer housing options that align with potential buyers' needs and preferences.

Psychological Factors: Psychological factors, including perceptions, motivation, learning, beliefs, and attitudes,
significantly influence consumer buying decisions in the residential property market. The study reveals that consumers'
perceptions of the property, motivations, learning experiences, beliefs, and attitudes about homeownership and
property-related aspects all impact their decision-making process. Real estate marketers and developers need to
understand these psychological factors to effectively communicate and cater to consumers' desires and motivations.

Implications for Real Estate Developers: The research findings provide valuable insights for real estate developers
operating in the Philippines. The study suggests that developers should focus on personal factors, such as age,
occupation, lifestyle, and personality, when designing and marketing residential properties. By considering these factors,
developers can create housing options that cater to the specific needs and preferences of potential buyers. Furthermore,
the research highlights the importance of affordability, available discounts, flexible payment terms and schemes, and low
interest rates in attracting buyers. By providing convenience and financial flexibility, developers can increase the appeal
and accessibility of their properties.

In conclusion, the study conducted by Jose Mari M. Lee and Eduardo G. Ong sheds light on the factors
influencing consumer choice in residential properties in the Philippines. The research highlights the significance of
cultural, social, personal, and psychological factors in shaping consumer behavior. Real estate developers and marketers
should take these factors into consideration when designing and marketing residential properties to effectively engage
with target consumers and meet their needs and preferences. By incorporating cultural influences, considering social
dynamics, acknowledging personal factors, and understanding psychological influences, developers can develop
strategies that resonate with potential buyers and enhance their overall success in the real estate market.