A Conjoint Analysis of Buyers¡¦ Preferences for Residential Property
This study evaluates the preferences of middle-high income earners for newly designed high-cost residential property attributes in their purchase decision, by using the conjoint method, whereby the buyers¡¦ ¡¥trade-offs¡¦ of different product attributes are measured. The fractional factorial design is used to create eighteen sets of product profiles based on a combination of the six most important attributes that determine the purchase decision of buyers. The preference rating of the respondents is then decomposed to yield part-worth utility for each attribute level. A regression analysis shows that the most pertinent attributes of high-cost residential properties trade-off by the respondents, are type of property, design and features, price, built-up area, location, and reputation of the developer. Together, these attribute explain about 74% of the buyers¡¦ expressed utility of the product purchased. By using a hold-out sample of respondents, a conjoint analysis has predicted the buyers¡¦ expressed utility with a reasonable level of accuracy.
Volume (Year): 15 (2012)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: Asia Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA|
Web page: http://www.asres.org/
|Order Information:|| Postal: Asian Real Estate Society, 51 Monroe Street, Plaza E-6, Rockville, MD 20850, USA|
Web: http://www.asres.org/ Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Marina Bravi & Sergio Giaccaria, 2005. "Forecasting Consumer Choices: The Conjoint Analysis (CA) in Real Estate Market Research," ERES eres2005_125, European Real Estate Society (ERES).
- Dietrich Earnhart, 2001. "Combining Revealed and Stated Preference Methods to Value Environmental Amenities at Residential Locations," Land Economics, University of Wisconsin Press, vol. 77(1), pages 12-29.
- Green, Paul E & Srinivasan, V, 1978. " Conjoint Analysis in Consumer Research: Issues and Outlook," Journal of Consumer Research, Oxford University Press, vol. 5(2), pages 103-123, Se.
- E Molin & H Oppewal & H Timmermans, 1999.
"Group-Based versus Individual-Based Conjoint Preference Models of Residential Preferences: A Comparative Test,"
Environment and Planning A,
, vol. 31(11), pages 1935-1947, November.
- E Molin & H Oppewal & H Timmermans, 1999. "Group-based versus individual-based conjoint preference models of residential preferences: a comparative test," Environment and Planning A, Pion Ltd, London, vol. 31(11), pages 1935-1947, November.
- Sayadi, Samir & Gonzalez Roa, M. Carmen & Calatrava Requena, Javier, 2005. "Ranking versus scale rating in conjoint analysis: Evaluating landscapes in mountainous regions in southeastern Spain," Ecological Economics, Elsevier, vol. 55(4), pages 539-550, December.
- Kelvin J. Lancaster, 1966. "A New Approach to Consumer Theory," Journal of Political Economy, University of Chicago Press, vol. 74, pages 132-132.
- A E Joseph & B Smit & G P McIlravey, 1989. "Consumer Preferences for Rural Residences: A Conjoint Analysis in Ontario, Canada," Environment and Planning A, , vol. 21(1), pages 47-63, January.
- Kenneth Y. Chay & Michael Greenstone, 2005. "Does Air Quality Matter? Evidence from the Housing Market," Journal of Political Economy, University of Chicago Press, vol. 113(2), pages 376-424, April.
- Kenneth Y. Chay & Michael Greenstone, 1998. "Does Air Quality Matter? Evidence from the Housing Market," NBER Working Papers 6826, National Bureau of Economic Research, Inc.
- H Timmermans & L van Noortwijk, 1995. "Context dependencies in housing choice behavior," Environment and Planning A, Pion Ltd, London, vol. 27(2), pages 181-192, February.
- Natter, Martin & Feurstein, Markus, 2002. "Real world performance of choice-based conjoint models," European Journal of Operational Research, Elsevier, vol. 137(2), pages 448-458, March.
- Quigley, John M., 1985. "Consumer choice of dwelling, neighborhood and public services," Regional Science and Urban Economics, Elsevier, vol. 15(1), pages 41-63, February.
- Olympia Bover & Mario Izquierdo, 2003. "Quality-adjusted prices: hedonic methods and implications for national accounts," Investigaciones Economicas, Fundación SEPI, vol. 27(2), pages 199-238, May.
- AfDB AfDB, . "African Development Report 2004," African Development Report, African Development Bank, number 21 edited by Adeleke Oluwole Salami.
- Bender, A. & Din, A. & Hoesli, M. & Brocher, S., 1999. "Environmental Preferences of Homeowners: Further Evidence using the AHP Method," Papers 99.10, Ecole des Hautes Etudes Commerciales, Universite de Geneve-. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:ire:issued:v:15:n:01:2012:p:73-105. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (IRER Secretary Office/Webmaster)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.