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27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Vakaratunda, Mahakaya ,Surya Koti Samprabha
Nirvighnamkuru me dev,Sarva Karyeshu Sarvada
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Learning Objectives
Where does the customer fits in a service operation?
What perceived risks does a customer face in purchasing
and using services?
How do customers form expectations and differentiate
between desired and adequate service levels?
Why do people often have difficulty in evaluating the
service they use?
How does reducing or increasing the level of customer’s
contact with a service supplier affect the nature of their
service experiences?
YESTERDAY…TODAY…TOMORROW
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Customers
were:
Customers are: Implications:
Less well informed
about
products
More financially informed Customers aware of competitors
More loyal to
providers
Less loyal to providers Customers more prepared to
switch providers
Faced with less
choice
Faced with greater product
choice
Highly competitive market harder
to retain customers
Limited by
traditional channels
Empowered by the Internet
and new technologies
(WAP phones, call center
Technology)
Increased customer focus
through development of
distribution channels
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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PAST PRESENT MOVING FORWARD
Lack of Industrial Status In line for industrial status“Want it now generation” is young, productive and demanding (quality)
Finance being arrangedmainly from pre-sellingof the units
Multiple sources of funding –Debt, PE, VC,
Fully organizedindustry
Limited purview of thegovernment
Enjoys strong attention of the central as well as state government
Well placed industrystandards
Quality of constructionaverage
Remarkable improvement in the quality and designs of construction
Industry regulator inplace to control thesector
Lack of transparency Improvement in the transparency level
FDI allowed in acrossreal estate avenues
Emergence of well-defined product categories
REITS/REMFsincreasing the depth
THE REAL ESTTE SECTOR’S
PLAYERS PRE2000
2001 - 2010 2011 ONWARDS
CHANGING SCENERIO
AGENTS ,EASTATEAGENTS ,BROKERS ,CONSULTANTS
LOW ETHICS
BETTERETHICS
PROFESSIONAL
From one man show to broking firm with staff; affiliations; as part of networks.From pocket book to software based and internet savvy.From cash to service taxed.From ‘chitti’ to ‘bills raised.’From ‘ chappal’ and ‘paan’ to tie and blazer!From night bar gossips to dinners and discussions.From showing customer ‘ just – idhar – just adha ek km to Google basedFrom suburb based to corporate broking house/ MNC/ From dingy shops to website operated….
CUSTOMERS
UNPROFESSIONAL
PROFESSIONAL
HIGHLY PROFESSIONAL
Willing to use professionals [brokers/ agents/ consultants / ]Willing to pay , but highly demanding service levelsGood homework.Ability to zero in ‘ as per specs’ property.Well informed.Well educatedHas access to Google / Yahoo / property portals / Access to research reports
DEVELOPERS LOW ETHICS
PROFESSIONAL
GOOD ETHICS
From sly to professional to systematic & organised.From regular to ERP / CRM / SAP based.From one man show to 2nd generation managed (MBA/ engineer sons)From small outfits to corporate(ISO certified); to PE funded; public listed; MNCFrom secrecy shrouded to transparent (heavy closed cabins to open office)
IMPACT OF GLOBALISATION
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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PLAYERS IN REAL ESTATE – IMPACT OF GLOBALISATION ON BROKING COMMUNITY
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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PLAYERS PRE2000
2001 -2010
2011 ONWARDS
EARLIER SCENERIO(FROM)
CHANGED SCENERIO(TO )
AGENTS ,EASTATE AGENTS ,BROKERS ,CONSULTANTS
LOW ETHICS
BETTERETHICS
PROFESSIONAL
One man show.
Pocket book.From cash.From ‘chitti’From ‘ chappal’ and ‘paan’ From night bar gossipsShowing customer ‘ just – idhar – just adha ek kmFrom suburb basedFrom dingy shops ….
broking firm with staff; affiliations; as part of networks.software based and internet savvy.service taxed.‘bills raised.’tie and blazer!
dinners and discussions.
Google basedcorporate broking house/ MNC/ website operated….
PLAYERS IN REAL ESTATE – IMPACT OF GLOBALISATION ON DEVELOPERS
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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PLAYERS PRE2000
2001 -2010
2011 ONWARDS
EARLIER SCENERIO(FROM)
CHANGED SCENERIO(TO )
DEVELOPERS LOW ETHICS
PROFESSIONAL
GOOD ETHICS
sly
irregularone man show
small outfits
secrecy shrouded
professional to systematic & organised.ERP / CRM / SAP based.2nd generation managed (MBA/ engineer sons)corporate(ISO certified); to PE funded; public listed; MNCtransparent (heavy closed cabins to open office)
Category 1970–1979 1980–1989 1990–1999 2000–2009 2010–2019
Geography Local Regional National Global Without Boundaries
Competition Many Competitors Some Competitors Few CompetitorsStrategic Competitors
New Competitors
Business Strategy Focus On Location Focus On DesignFocus On Operations
Focus On Customers
Focus On Customers Of Customers
Goals Market-Driven Capital-DrivenPerformance-Driven
Relationship-Driven
Knowledge- Driven
Market Dynamics Fighting Over Sites Fighting Over MoneyFighting Over Marketshare
Fighting Over Talent
Fighting Over CustomerShare
Operational Focus Collecting Reputation Collecting AssetsCollecting Competitors
Collecting Clients Collecting Relationships
Leadership Personality- Based Functionally- Based Service-Based Solutions-Based Strategy-Based
Organization Few Teams Appearance Teams Necessity Teams Reoccurring Teams Virtual Teams
Brokerage A Representative A Broker A Specialist An Advisor A Confidante
Founder An Entrepreneur An Executive A Leader A Coach A Collaborator
Growth Strategy Growth From Market Dynamics
Growth From Abundance Of Capital & Financial Engineering
Growth From Consolidation, Securitization & Digital Economy
Growth From Customer Connectivity, Talent & Capital Shifts
Growth From Globalizations, Generational Shifts, New Urbanism & Greening
Tommorow never comes !
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Customer Criteria for Selectinga realtor
• Availability (24 hour ATM)
• Convenience (Site location)
• Dependability (On-time performance)
• Personalization (Know customer’s name)
• Price (Quality surrogate)
• Quality (Perceptions important)
• Reputation (Word-of-mouth)
• Safety (Customer well-being)
• Speed (Avoid excessive waiting)
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Ten key determinants of a customer(1)
Concerned with the quality outcome of the service
Access – Approachability and ease of contact
Credibility – Trustworthiness,beleiveability,honesty of service provider
Knowledge – Understanding the customer, making effort to know customers & their needs
Reliability – Ability to perform the promised service dependably and accurately
Security – Freedom from danger,risk,or doubt
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Ten key determinants of a customer(2)
Related to the delivery process
Competence – Possession of the reqd skills & knowledge to perform the service
Communication – Keeping customer informed in a language they can understand &
listening to them
Courtesy – Politeness,respect,consideration and friendliness of contact personnel
Responsiveness – Willingness to help customers & provide prompt service
Tangibles – Appearance of physical facilities,equipment,personnel & communication material
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27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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SERVQUAL DIMENSIONS
ORIGINAL TEN DIMENSIONS FOR
EVALUATING SERVICE QUALITY TANGIBLES
RELIABILI
TY
RESPONSI
VENESS
ASSURAN
CE EMPATHY
TANGIBLES
RELIABILITY
RESPONSIVENESS
COMPETENCE
COURTESY
CREDIBILITY
SECURITY
ACCESS
COMMUNICATION
UNDERSTANDING THE
CUSTOMER
Relative Importance of Service DimensionsWhen Respondents Allocate 100 Points
Reliability
32%
Tangibles
11%
Assurance
19%
Empathy
16%
Responsiveness
22%
Tangibles Reliability Responsiveness Assurance Empathy
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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CUSTOMER AND YOU
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(1) you do not have to constantly search for new clients,(2) your revenues and customer loyalties increase,(3) your net income should increase, and(4) your marketing costs will decrease.
Within the real estate brokerage industry, success is determined by the number and quality of valued, recurring customer relationships.IF YOU GET THIS RIGHT THEN:
HOW WILL YOU GET THIS RIGHT ?
What Investors/customers Value Most in Their Broker
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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1. Understanding of their goals/objectives.
2. Quality communication and follow through.
3. Direct solicitation of potential buyers or tenants.
4. Accuracy and quality of financial analysis.
5. Quality of research.
6. Negotiating skills.
7. Quality of marketing/investment sales package.
What Tenants Value Most in Their Broker/Service Provider
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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1. Understanding of their business.
2. A relationship built on trust.
3. Open communication and accessibility.
4. Collaboration and a team approach to their needs.
5. Financial/analytical skills and structuring advice.
6. Knowledge of value-add opportunities.
7. Understanding of the market and opportunities.
What Clients Value Most When Selecting Their Broker
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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1. Relationship with Broker.
2. Prior experience/performance.
3. Understanding of their business/objectives.
4. Reputation of firm/brand identity.
5. Fee structure.
6. Knowledge and advice.
7. Personalized approach/solutions.
What Frustrates Brokerage Clients
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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1. Lack and poor quality of communications.
2. Lack of accessibility to their representative.
3. Lack of interest in their business, needs, and goals.
4. Feeling that they are just a fee source.
5. Brokers not knowing when they are in over their heads.
6. Sloppy work, inaccuracies, and poor reporting.
7. Go-it-alone service providers.
Define Your Customers
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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• Who are your past clients?
• Who are your current clients?
• Who are your competitors’ clients?
• Which customer segments are growing in your marketplace?
• Which customer segments are shrinking in your marketplace?
• What customers would benefit most from your core
competencies?
• Which customer segment(s) would be the most difficult to
penetrate?
• Which customer segment(s) would be the least difficult to
penetrate?
• At the end of the day, do not forget the value of existingcustomer relationships
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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“A customer is the most
welcome visitor to our
premises. He is not dependant
on us, we are depending upon
him. He is not interruption to
our work, he is the purpose of
it. He is not an outsider on our
business, he is part of it. We
are not doing a favor by
serving him, he is doing us a
favor by giving us an
opportunity to do so”
CUSTOMER DEFINATION
Definition of Consumer Behavior
• …the decision process and physical activity individuals engage in when evaluating , acquiring , using ,or disposing off goods and services.
As applieed to real estate:
…the decision process and physical activity an individual engage in buying/selling a piece of real estate and evaluating , acquiring , using the services of a consultant /realtor for the purpose
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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DEMAND GROWTH –EFFECT OF 3 A’s
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Affordability Availability Aspiration
Rising per capita income Quality construction
“Want it now generation” is young, productive and demanding (quality)
Growing trend of double income families
Benign interest rates
Close affinity of Indians to “own” a house… and a house bigger than before
Robust business growth in services sector allows aggressive geographic expansion .
Easy access to home loans .
Corporate offices asking for world class space
27 December, 2014CUSTOMER CARE - IREF
PROF. SURESH MALKANI27
INFORMATIVE (THINKER)
Car-Laptops-Real estate
Model: Learn-Feel-Do
Media: Print media; brochures
AFFECTIVE (FEELER)
Sports cars and motorcycles Fashion apparel and jewellery,
Perfumes
Model: Feel-Learn-Do
Media: Audio visual media; image based
HABIT FORMATION (DOER)
Bread, Stationery, Soap
Model: Do-Learn-Feel
Media: Audio visual media; image based; POP stimuli
SELF-SATISFACTION (REACTOR)
Cigarette, Liquor, Movies
Model: Do-Feel- Learn
Media: POP stimuli
THINKING FEELING
LOW INVOLVEMENT
HIGH INVOLVEMENT
Consumer behavior while purchasing different categories
Consumer Decision-Making
Process
Post purchaseBehavior
Purchase
Evaluation of Alternatives
Information Search
Need Recognition
Cultural, Social, Individual and Psychological
Factors affect
all steps
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7 P’s for purchasing a flat
• Pawan
• Pani
• Patta
• Prakash
• Paisa
• Paros
• Parking
• Parikrama
Some of these are NEEDS,
Others WANTS
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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17 P’s
• Product / Service
• Place & Time
• Promotion & Education
• Price
• Physical Environment
• Process
• People
• Politics
• Public relations
• Probe
• Partition
• Priorities
• Position
• Profit
• Plan
• Performance
• Positive implementation
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Need Recognition (awareness of need)
• The buying process starts when the buyer recognizes a problem or need.
• The need can be triggered by internal ,external, marketing stimuli.
• Ex.- person’s normal needs-hunger/ thrust –rises to threshold level and becomes a drive.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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NEEDS AND WANTS
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Needs are based on LogicPrice, Quality, Company, Standards, Delivery, Service.
Wants are based on EmotionPrestige, Job security, Reputation, Fear, Brands , Locality, Architect, , Ego, Implications, Relationships.
Emotional reasons are always below the surface and are rarely or never openly declared ! They have to be recognised ! The realtor has to sense these early to close the deal.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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EXTERNAL ENVIRONMENT
INDIVIDUAL DETERMINANTS
SOC
IAL C
LASS IN
FLUEN
CES
FAMILY INFLUENCES
OTH
ER IFLU
ENC
ES
PERSONALITY &SELF -CONCEPT
PROBLEMR
DECESION PROCESS
PROBLEM RECOGNITION
INFO SEARCH & EVALUATION
PURCHASING PROCESS
POST PURCHASE BEHAVIOR
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Difficult to evaluate service
Product attributes affecting evaluation
Intangibility of service performance
Variability
Quality control problems
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Personal Needs
Beliefs about
what is possible
Alternatives
Situational
factors
DESIRED
SERVICE
ZONE OF
TOLERENCE
ADEQUATE
SERVICE
EXPLICT & IMPLICIT
SERVICE PROMISES
WORD OF MOUTH
PAST EXPERIENCE
PREDICTED SERVICES
Factors influencing customer expectations
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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DIMENSIONS OFSERVICEQUALITY
Access CredibilityKnowledgeReliabilitySecurityCompetenceCommunicationCourtesyResponsivenessTangibles
DETERMINANTS OF PERCEIVED QUALITY
WoM PERSONALNEEDS
PASTEXPERIENCE
PERCEIVED SERVICEQUALITY
EXPECTED
SERVICE
PERCEIVEDSERVICE
SERVICEQUALITYGAPS
Major tasks of any real estate set up
• Service companies are faced with three major marketing tasks; they need to: – increase competitive differentiation
– increase service quality
– increase productivity
THE BEST WAY TO START WOULD BE TO UNDERSTAND THE CUSTOMER’S NEEDS AND WANTS.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Property purchaser’s behavior
• As marketers we often think of how we will make a killing.
• Rarely do we research the customer ,at most we have a general mental and instant opinion of the customer and our strategy is decided at the first contact.
• Let's get a bit theoretical and examine the buying process from the customers perspective.
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Complete model of consumer behavior buying real estate
Stimuli
(marketer
dominated,
other)
External
search
Memory
Internal
search
Exposure
Attention
Comprehension
Acceptance
Retention
Search
Need
recognition
Alternative
evaluation
Purchase
Outcomes
Dissatisfaction Satisfaction
INTERNAL
DETERMINANTS:
MOTIVATION
PERCEPTION
KNOWLEDGE &
LEARNING
ATTITUDES
SELF-CONCEPT
PERSONALITY
LIFESTYLE
EXTERNAL
DETERMINANTS:
Reference groups
Culture
Subculture
Social class
Family
Start
BELIEFS
ATTITUDES
INTENSIONS
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Motivation & Need Recognition
Preferred State
Marketing helps
property buyers
recognize (or create) an
imbalance between
present status and
preferred state
• When a current property isn’t
performing properly.
• When family is expanding
• When business is expanding
• When new technology property is
preferred
• When the consumer is fed up of the
present location and usage.
• When another property seems
superior to the one currently used in
terms of efficiency.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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motivation
Internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role or subject, or to make an effort to attain a goal.
Motivation results from the interaction of both conscious and unconscious factors such as the:
• intensity of desire or need,
• incentive or reward value of the goal, and
• expectations of the individual and of his or her peers.
These factors are the reasons one has for behaving a certain way.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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What activates a need ?
• Time
• Changed circumstances
• Property acquisition
• Property composition
• Individual differences - customised
• Marketing influences
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Information search
• Property buyers seek and use information as part of a rational problem solving and decision making process.
• Buyers first search internally for historically gathered information ,experience, length of time since last purchase, and satisfaction with previous purchase will affect the their reliance on internal information.
• As most consumers purchase real estate infrequently, they rarely rely solely on their past knowledge when selecting a new property to purchase.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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The information search stage
An internal search involves the
scanning of one's memory to recall previous
experiences or knowledge concerning
solutions to the problem-- often insufficient
for real estate products.
An external search may be necessary
when past experience or knowledge is
insufficient, the risk of making a wrong
purchase decision is high, and/or the cost of
gathering information is low.
Personal sources
(friends and family)
Public sources (rating
services like Consumer
Reports)
Marketer-dominated
sources (advertising
or real estate agents
/developers)
The evoked set: a group of
brands from which the buyer can
choose27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Internal determinants of buyer
• Motivation
• Perception
• Knowledge and learning
• Attitudes
• Self – concept
• Personality
• Lifestyle
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Internal determinants of buyer -Motivation
• The force that drives a person to buy and use a good or service is called motivation. It explains why people buy what they do and what they are trying to accomplish to fulfil their aspirations.
• Needs arise from the discrepancy between actual and desired states of being. Needs can be classified as utilitarian or hedonic (devoted to pleasure)/experiential.
• As the discrepancy between the desired and actual state of being increases, a condition of arousal called a drive is activated. When the drive becomes strong enough, the consumer will take action in an attempt to satisfy the perceived need..
• Wants refer to specific products that consumers believe will satisfy the need. Benefits are what consumers derive from products and the reasons they want them
• Thus, a real estate buyer may be trying to satisfy both a utilitarian need for space and a hedonic need for status simultaneously. An accurate valuation model must consider that the benefits the buyer is expecting are not limited to financial rewards.
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Internal determinants of buyer -Perceptions
• Perception deals with recognizing, selecting, organizing, and interpreting stimuli to make sense of the world around us.
• Consumers tend to interpret what they perceive so that it does not conflict with their basic attitudes, personality, motives, or aspirations. They pay attention to stimuli deemed relevant to existing needs, wants, beliefs, and attitudes and disregard the rest.
• One perception important to the study of consumer behaviour is the level of perceived risk in a potential purchase. Types of risk consumers face include functional/ performance, financial, physical, psychological, social, and time The amount of perceived risk is a function of the product (price, length of time consumer will own, cost of switching, additional products and services needed to be consumed with it), characteristics of the consumer (resources, willingness to gather and use information, experience), and external forces (information available, options to reduce the consequences of the choice).
• Two investors in similar financial situations may place different risk premiums on a particular investment because of their personal attitude toward risk.
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Internal determinants of buyer –Knowledge & learning
• Information processing describes the series of steps by which information is encountered through some exposure to a person’s senses, attended to, interpreted, understood and accepted, and stored in memory for future use in making decisions
• Elaboration via mental processing transforms this information into beliefs, attitudes and intentions that determine product choice and related aspects of purchase.
• For a stimulus to be effective, it must be of sufficient strength to reach the lower or absolute threshold to activate the consumer’s sensory receptors, creating a sensation. Because of the sheer number of stimuli to which consumers are exposed on a regular basis, not all stimuli will receive additional processing. Consumers subconsciously screen stimuli and select those that deserve their attention.
• People are also more receptive to information that maintains or enhances consistency with their beliefs and attitudes while they avoid information that challenges their beliefs and attitudesThus, real estate marketers may encounter difficulty in communicating with potential
buyers and tenants until the buyer has recognized a need for a move.
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Internal determinants of buyer -Attitudes
• An attitude is an overall evaluation about something combining cognitive beliefs, emotional affects, and behavioural intentions.
• Attitudes may vary along the dimensions of strength, direction (positive or negative), and stability . Also, not all attitudes are held with the same degree of confidence.
• Attitudes based on direct experience with a product are usually held with more confidence than those derived from indirect experience. Confidently held attitudes will usually be relied on more heavily to guide behaviour
• If a consumer does not feel confident in an attitude, he or she is more likely to search for additional information before making a decision. Attitudes held with less confidence are also more susceptible to change.
• The multiattribute attitude model also provides guidance for changing consumer attitudes . The choices are to change the consumer’s beliefs about the product or change the consumer’s ranking of the importance of an attribute. However, whether a positive attitude leads to an intention to purchase a product and, subsequently, to its actual purchase depends on several factors. Attitudes and intentions are more likely to be good predictors of behaviour when they are measured at a time relatively close to when the behaviour is to occur, before situational influences and unexpected events can have an impact
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Internal determinants of buyer – Self - concept
• Self-concept is an organized set of perceptions of the self, comprised of such elements as the perceptions of one’s characteristics and abilities; the perception of oneself in relation to others; and objectives, goals and ideals which are perceived as either positive or negative.
• Self-concept is now generally viewed in several dimensions:
– ideal self (what one aspires to be),
– real self (the way one thinks one actually is),
– self in context (how one sees oneself in different social settings), and
– extended self (possessions and artefacts help define who one is)
• Real estate can be a viewed as part of the extended self, an object that helps to form identity. By their very nature, single family homes almost always perform many highly emotional, individualized, personal roles in the lives of their occupants .Consumers will choose to purchase real estate that either fits with their current self-image or is associated with the ideal image they want to achieve. This may be reflected in both choice of housing style and neighbourhood.
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Internal determinants of buyer -Personality
• Personality accounts for consistent patterns of behaviour based on enduring psychological characteristics . It is the pattern of traits and behaviours that makes one individual unique and different from all others. Personality may be described using the psychoanalytic, socio-psychological, or trait-factor theories.
• Trait-factor theory contends that an individual’s personality is composed of distinct predisposition attributes called traits. Traits are relatively enduring ways in which one person differs from another. These traits are common to many individuals, but vary in absolute amounts among individuals. Traits are expected to exert fairly consistent effects on behaviour regardless of the environmental situation .
• In general, personality appears to be related to how consumers make decisions about innovative products . For example, people who have a high need for cognition enjoy the effort of information-processing activities and may actively seek and consider more information about a product.
• Consumers’ response relative to risk is related to personality. Risk takers tend to be thrill seekers with a need for stimulation and easily become bored. They are likely to list success and competence as their goals in life in contrast to risk avoiders, who list happiness as their first choice
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Internal determinants of buyer -Lifestyle
• Lifestyle refers to the distinctive ways in which consumers live, how they spend their time and money, and what they consider important -- activities, interests and opinions.
• Lifestyles evolve over time, so consumption patterns may change over time
• Consumers will purchase real estate services that are compatible with their lifestyle. Thus, an outgoing, athletic young single who values social interaction will likely place greater value on an apartment that has access to a swimming pool, tennis court, and activity center.Meanwhile, an inner-directed, sedentary young single who values privacy and solitude might value an apartment with a private balcony more.
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External determinants of buyer
• Reference groups
• Culture
• Subculture
• Social class
• Family
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External determinants of buyer-Reference groups
• Reference groups are individuals or collections of people whom the individual uses as source or point of comparison for attitudes, beliefs, value or behaviour. Consumers belong to some of the groups that influence their consumer behaviour and either aspire to join or work to avoid association with others.
• Reference groups affect consumer choice in three principal ways: normative compliance, value-expressive influence, and informational influence– Normative influence is when reference groups affect behaviour through pressure for conformity and compliance.
This pressure is most likely to be felt when the consumer feels the rewards from compliance exceed the cost , there is strong motivation for social acceptance , and the product is publicly conspicuous in its purchase and use .
– Value-expressive influence is when a need for psychological association with a group is evidenced by acceptance of its norms, values, or behaviour and a conforming response is made. The desired outcomes are enhanced image in the eyes of others and identification with people who are admired and respected.
– As an informational influence, consumers often accept the opinions of others as providing credible and needed evidence about products.
• word-of-mouth influence has a more decisive role in influencing behaviour than advertising and other marketer-dominated sources . Greater perceived credibility is the deciding factor.
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External determinants of buyer-Culture
• Culture consists of society’s beliefs, values, ethics, customs, shared meanings, rules, rituals, norms, and traditions. Culture provides people with a sense of identity and an understanding of acceptable behaviour.
• Culture is deep-seated and enduring, but does change slowly over time.
• Values represent beliefs about life and acceptable behaviour. Values express the goals that motivate people and appropriate ways to attain these goals.
• Personal values reflect the choices an individual makes from the social value systems to which that individual is exposed. Individuals are influenced by social values of groups to which they belong (nation, religion, family), but they choose from these various social values to develop their own personal values. Personal values have been linked to brand choice and product usage
• Builders would be wise to watch changing cultural values, producing properties that are more environmentally friendly and housing layouts that are more suitable for family activities and interaction.
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External determinants of buyer -Subculture
• Subcultures are racial, ethnic, religious, or other groups whose members are distinguishable from the general population and who are held together by common culture and/or genetic ties.
• To the degree that people in an ethnic group share common customs, values, rituals, and traditions that are different from those of other ethnic groups or the larger society, they constitute a distinct ethnic group.
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External determinants of buyer –Social Class
• Social stratification represents the hierarchical division of members of a society into relative levels of prestige, status and power . Social class refers to divisions based on economic and demographic characteristics.
• Those in same stratum have roughly similar consumption, lifestyle, and income, and socialize with each other. While upward and downward mobility is possible, most tend to remain in the stratum into which they were born.
• Possessions are symbols of class membership, with wealth reflected in the item purchased. The most important possession decision reflecting a family’s social class is the choice of where to live, both the type of home and the neighbourhood. Thus, social class will affect what neighbourhoods and architectural design consumers will consider for housing. In addition, housing layouts must accommodate the furniture and living style of members of each social class. People trying to move up through the social class structure might choose a house and neighbourhood that they think members of the higher class would choose
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External determinants of buyer -Family
• The most influential reference group is the consumer’s family. The family teaches the consumer cultural values that have a substantial impact upon shopping behaviour. It continues to be a point of reference even when the consumer has formed his own household.
• Family members may play instrumental roles, such as determining the financing and functional attributes of purchases, or they may play expressive roles, supporting other family members in their decision and expressing the family’s aesthetic or emotional needs.
• Those with the most expertise may exert a less direct influence. The decider is usually the person with the financial authority and power to choose how money will be spent.
• Changes in family structure increasingly are causing husband and wife decisions, including those about housing, to be made jointly . Thus, the real estate broker must appeal to both spouses in making a sales presentation.
• Families change over time, passing through a series of stages called the family life cycle The traditional family pattern has been single, then married, married with children, empty nest, retirement, and widowhood. Changes in household and family structure have resulted in many people no longer following the traditional process, delaying marriage, having children out of marriage, and divorcing and remarrying. This creates demand for a wider variety of housing options throughout the life cycle. It also makes it more difficult to estimate demand for housing types based on demographic factors.
27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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27 December, 2014CUSTOMER CARE - IREF PROF. SURESH MALKANI
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Major tasks of service industries
• Service companies are faced with three major marketing tasks; they need to:
– increase competitive differentiation
– increase service quality
– increase productivity
Post purchase Behavior
Can minimize through:Effective Communication
Follow-upGuaranteesWarranties
Under promise & over deliver
Cognitive Dissonance
?Did I make a good decision?
Did I buy the right product?
Did I get a good value?
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•Real estate has been a savoir and a villain, a source of opportunity, •A political football, and, at times, a regulatory nightmare. •Personalities and cult-like figures have been created, featured, celebrated, and discredited by real estate. •Fortunes have been made and lost because of real estate. Families have benefited from and torn apart because of real estate.Entire industries and companies have disappeared because of real estate. •Real estate has been a passion for some, a job for millions, a hobby for others, and a source of income and wealth creation for many; •Real estate has been a convenient forum for blame as well as—more often—a source of personal and community pride. •No other industry today has so many working parts, conflicting priorities, risks, and rewards. No industry is as integral and essential to our lives. •Real estate is truly a part of everyone’s DNA.
Why, What, When, How, Now, Then
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