Psychological factors that influence purchasing decision of a residential property.

Abstract

Research interest in residential property consumer purchase decision has widely conducted over the past years. The majority of the research was conducted based on the external influencing factors such as marketing mix and product attribute. It has overlooked the importance of the internal or psychological factors that play an important role in a customer mind before making a purchase decision. This paper aims to study the factors that influencing a residential property purchase decision in another perspective, which focuses on psychological factors including attitude, motivation, personal value and belief in Thailand context. The quantitative approach was used to conduct this research. The data were gathered from 178 respondents and translated into a useful knowledge though the statistical techniques such as descriptive statistic, independent t-test and chi-square. The result reveals that two main psychological factors that impact purchase decision are motivations and personal values. The consumers purchase a residential property with the intention to satisfy their self-esteem and self-actualization needs. Furthermore, seven out of nine personal values were involved in a decision to purchase a residential property. The personal values include Sense of belonging, Self-fulfillment, Security, Self-respect, Sense of accomplishment, and fun and enjoyment in life. The customer tends to emphasize on their self-interest over the others. The value of warm relationship with others and being well-respect were not important to their purchase intention. However, belief and attitude have not influenced the purchase decision. Findings of this study will benefit the developers and marketers who have an interest in the residential property business in Thailand as it provides guidance for better understanding customer insights in order to formulate an effective strategic decisions on product development and marketing strategies.