Question

how does customer preference and customer choice affect real estate sales?

Answer 1

ANSWER:

Majority real estate study is based on neoclasssical economic theory which makes an assumption that people make rational decisions while renting and buying real estate as part of their attempt for the maximisation of the utility. Consumers are complex human beings who are driven by internal and external forces, few of them are beyond their control and several of which they are relatively unaware. The individual customer has a set of values and preferences whose determination are outside the economics realm. It depends upon education, culture, and individual tastes, among a plethora of other factors. On a macro level the marketers are keen in demographic shifts; as well as society’s beliefs, values, and practice that impacts how the consumers interact with the marketplace. On a micro level, consumer behavior focuses on human behavior and the cause behind such behaviors.

When evaluating alternatives, such as choosing which property to rent or purchase, consumers selects from a list of acceptable alternatives (evoked or consideration set) based on the criteria which they have selected as being vital. Few of the determinants of consumer that affect their search behavior include involvement, knowledge, beliefs and attitudes, and demographic characteristics. The consumer chooses the product that is judged to have the highest number of positive attributes.