Apartment Purchase Decision Variables in Real Estate Companies: Sales Teams Perspective in Addis Ababa, Ethiopia

Abstract

This study intended to assess factors affecting apartment purchase decision of consumers with respect to real estate sales team perspective in Addis Ababa using four major factors that would affect the purchase decision of a consumer viz., price, location, quality of apartment and corporate image. Accordingly, the study used both descriptive and explanatory research design. Self-administered structured questionnaires were used to collect primary data from a total sample size of 50 sales experts or sales/marketing manager of real estate companies who are drawn using convenient sampling. The relationships proposed in the framework were tested using Pearson correlation, and the causal relations were analyzed using regression analysis. Accordingly, it is found out that there is a strong significant relationship between purchase decision factors and purchase decision with Pearson correlation coefficient of 0.699 (r=0. 699) . In addition, purchase decision factors have an influence on purchase decision in which 52.20% of the variation in purchase decision is explained by the variation in price, location, quality of apartment and corporate image. Furthermore, corporate image is the most influencing apartment purchase decision factor followed by quality of apartment. Thus, it is recommended that real estate companies may give top priority in building their corporate image and developing quality apartments as these two factors are highly influencing real estate customers purchase decision.

Keywords: Real estate, Apartment, Purchase decision, purchase decision factors

DOI: 10.7176/JMCR/79-02

Publication date:May 31^st 2021