Investigation of Market Factors That Affect Customers’ Buying Attitude towards Apartment Buying: An Opportunity Analysis from Bangladesh Perspective

Abstract

This study has investigated market factors that have been changing the attitude of Real Estate buyers in Bangladesh and ultimately creating the opportunities for Real Estate developers and marketers. The paper also has examined relationships among the market factors and buying attitude. This study has aimed at investigating the impact of customers’ buying attitude on buying intention. Total twenty-four (24) attributes have been taken into consideration in designing questionnaire for the study. A questionnaire survey method is used with 200 respondents and response rate of 76.5 percent. Initially an exploratory factor analysis has been directed using SPSS (version 21). We have explored four market factors where cultural changes, land problem, urbanization and population pressures and finally raising prices level of building materials that have acted as antecedents of customers’ buying attitude and created opportunities for the industry. After that, CFA has been carried out to confirm the factors. Structural Equation Modeling (SEM) has been used to test both the proposed model and hypothesized relationships among the constructs. It has found that land problem, urbanization and population pressures have created opportunities for Real Estate industry and that have significant impact on customers’ buying attitude except the cultural changes and raising price level. It has also found that buying intention is strongly influenced by buying attitude of the customers. The proposed model also has an acceptable fit to the data. Real Estate developers, marketers, policy makers can use the findings to better understand, segment and satisfy the customers. Therefore the findings of the study will definitely help in building successful marketing strategies as well as achieving sustainable development of the sector. The study may be limited by its focus on a geographic section of the Bangladeshi Real Estate market.