International Journal of Civil Engineering and Technology (IJCIET)

Volume 8, Issue 11, November 2017, pp. 500–507, Article ID: IJCIET_08_11_053
Available online at http://http://iaeme.com/Home/issue/IJCIET?Volume=8&Issue=11
ISSN Print: 0976-6308 and ISSN Online: 0976-6316

© IAEME Publication Scopus Indexed

A STUDY ON BUYING BEHAVIOUR OF

OWNERS TOWARDS RESIDENTIAL FLATS IN
URBAN AREAS OF TAMIL NADU STATE
K. T. Manivannan
Ph.D. (Part-Time) Research Scholar, Department of Commerce, Bharathiar University,
Coimbatore, India

Dr. T. Joseph
Associate Professor & Head of the Department, Post Graduate and
Research Department of Commerce, Loyola College (Autonomous), Chennai, India

ABSTRACT
The buying behaviour of individuals towards residential flat is a composite
process which has some degree of risk as it is subjected higher degree of financial
commitments. Additionally, the buying behaviour for residential flats among
individuals is relying on different features, amenities and socio-economic conditions.
More than two fifth of owners have moderate level of buying behaviour for residential
flats and significant differences are existing in buying behaviour of residential flats
among profile of owners of residential flats except gender. In order to improve the
buying behaviour of residential flats among home buyers, developers should build
residential flats in health and sanitary environment and must sell their residential flats
at affordable price.
Keywords: Buying Behaviour, Residential Flat, Urban Areas
Cite this Article: K. T. Manivannan and Dr. T. Joseph, A Study on Buying Behaviour
of Owners Towards Residential Flats in Urban Areas of Tamil Nadu State,
International Journal of Civil Engineering and Technology, 8(11), 2017, pp. 500–507
http://iaeme.com/Home/issue/IJCIET?Volume=8&Issue=11

1. INTRODUCTION
The urban areas are important centers for commerce and trading activities and these areas
provide employment opportunities for large number of people. Hence, the demand for
housing is considerably rising for both business and residential purposes. Housing is a long
term investment avenue and it is the principal capital investment and life time achievement of
individuals. Housing is not only an essential property for human beings, but it is necessary for
comfortable living.

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 K. T. Manivannan and Dr. T. Joseph

The scarcity of land for housing, higher cost of land and housing materials, high rate of
rents, growth of urbanization and migration have changed the mind set individuals, hence,
they prefer residential flats as compared to individual houses and they are very much
interested in buying residential flats especially in urban areas because of security and privacy
reasons and availability of modern facilities in residential flats (Mohiuddin, 2014).
The buying behaviour of individuals towards residential flat is a composite process which
has some degree of risk as it is subjected higher degree of financial commitments.
Additionally, the buying behaviour for residential flats among individuals is relying on
different features, amenities and socio-economic conditions. The individual consider price,
location, type, size, structure, reputation of developer and design of residential flats while they
buy. Hence, it is necessary to study the buying behaviour of owners for residential flats in
urban areas of Tamil Nadu state.

2. METHODOLOGY
The urban places in Tamil Nadu state are chosen for the present study. The owners of
residential flats are selected by using convenience sampling method. The data are gathered
from 1210 flat owners via structured questionnaire. The percentage analysis is carried out to
know profile of owners of residential flats. The mean and standard deviation are worked out
for buying behaviour of owners towards residential flats. The ANOVA test is used to study
the difference between profile of owners and buying behaviour for residential flats.

3. RESULTS AND DISCUSSION

3.1. Profile of Owners
The results indicate that 55.54 per cent of owners of residential flats are males, while, the
remaining 44.46 per cent of them are females and 32.40 per cent of owners of residential flats
have age group of 36 – 40 years followed by 31 – 35 years (20.74 per cent), 41 – 45 years
(19.42 per cent), 25 – 30 years (14.05 per cent), 46 – 50 years (8.02 per cent) and above 50
years (5.37 per cent).
The results imply that 35.78 per cent of owners of residential flats have monthly income
of Rs.40,001 – Rs.50,000 followed by Rs.30,001 – Rs.40,000 (29.59 per cent), Rs.50,001 –
Rs.60,000 (14.05 per cent), above Rs.60,000 (12.89 per cent) and below Rs.30,000 (7.69 per
cent) and 70.33 per cent of owners of residential flats are married, while, the rest of 29.67 per
cent of them are unmarried.

3.2. Buying Behaviour of Owners Towards Residential Flats

The buying behaviour of owners towards residential flats was analyzed and the results are
presented in Table 1.

Table 1 Buying Behaviour of Owners towards Residential Flats

Standard
Sl. No. Buying Behaviour Mean
Deviation
I consider the structure of residential flat when
1. 3.91 0.92
I buy
I check protection measures in residential flat
2. 3.79 0.82
before I buy
I feel good about buying residential flat
3. 3.29 1.08
because it has clean environment

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 A Study on Buying Behaviour of Owners Towards Residential Flats in Urban Areas of Tamil Nadu
State

4. When I buy residential flat I look its features 3.93 0.92

5. I buy residential flat even if it is highly priced 3.30 1.20
I look comfortability of residential flat when I
6. 3.88 0.95
buy
I buy residential flat because it’s maintenance
7. 3.26 1.18
is good
I buy residential flat as it is the symbol of social
8. 3.81 0.85
status
When I buy residential flat I look facilities
9. 3.36 1.42
available
I discuss with peer groups before I buy
10. 3.80 1.17
residential flat
The owners of residential flats are agreed with they consider the structure of residential
flat when they buy, they check protection measures in residential flat before they buy, when
they buy residential flat they look its features, they look comfortability of residential flat when
they buy, they buy residential flat as it is the symbol of social status and they discuss with
peer groups before they buy residential flat, while, they are neutral with they feel good about
buying residential flat because it has clean environment, they buy residential flat even if it is
highly priced, they buy residential flat because it’s maintenance is good and when they buy
residential flat they look facilities available.

3.3. Profil of Owners and Their Buying Behaviour Towards Residential Flats
The distribution of owners on the basis of buying behaviour towards residential flats was
analyzed and the results are presented in Table 2. The responses of owners for buying
behaviour towards residential flats has been categorized into low level, moderate level and
high level based on “Mean ± SD” criterion. The mean is 34.32 and the SD is 3.76.

Table 2 Distribution of Owners on the Basis of Buying Behaviour towards Residential Flats
Number of Owners of
Sl. No. Level of Buying Behaviour Percentage
Residential Flats
1. Low 375 30.99
2. Moderate 492 40.66
3. High 343 28.35
Total 1210 100.00
From the above table, it is apparent that 40.66 per cent of owners viewed that the level of
buying behaviour towards residential flats at moderate level followed by low level (30.99 per
cent) and high level (28.35 per cent).

3.3.1. Gender and Buying Behaviour Towards Residential Flats

The relationship between gender of owners and buying behaviour towards residential flats
was analyzed and the results are presented in Table-3.

Table 3 Gender and Buying Behaviour towards Residential Flats

Level of Buying Behaviour
Sl. No. Gender Total F-Value Sig.
Low Moderate High
193 300 179 672
1. Male .993 .319
(28.72) (44.64) (26.64) (55.54)

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 K. T. Manivannan and Dr. T. Joseph

182 192 164 538

2. Female
(33.83) (35.69) (30.48) (44.46)
375 492 343 1210
Total - -
(30.99) (40.66) (28.35) (100.00)
Eta Squared .013
(The figures in the parentheses are per cent to total)
Out of 672 male owners of residential flats, 26.64 per cent of owners viewed that the level
of buying behaviour towards residential flats at high level, while, 28.72 per cent of owners
viewed that the level of buying behaviour towards residential flats at low level. Out of 538
female owners of residential flats, 30.48 per cent of owners viewed that the level of buying
behaviour towards residential flats at high level, while, 33.83 per cent of owners viewed that
the level of buying behaviour towards residential flats at low level.
The F-value of 0.993 is not significant statistically showing that there is no significant
difference between gender of owners and buying behaviour towards residential flats. The eta
squared value is 0.013 showing that the effect size is small. It implies that the actual
difference in mean values between groups is small.

3.3.2. Age Group and Buying Behaviour Towards Residential Flats

The relationship between age group of owners and buying behaviour towards residential flats
was analyzed and the results are presented in Table 4.

Table 4 Age Group and Buying Behaviour towards Residential Flats

Level of Buying Behaviour
Sl. No. Age Group Total F-Value Sig.
Low Moderate High
48 78 44 170
1. 25 – 30 Years
(28.24) (45.88) (25.88) (14.05)
17 144 90 251
2. 31 – 35 Years
(6.77) (57.37) (35.86) (20.74)
165 134 93 392
3. 36 – 40 Years 7.626 .000
(42.09) (34.18) (23.73) (32.40)
64 95 76 235
4. 41 – 45 Years
(27.23) (40.43) (32.34) (19.42)
38 41 18 97
5. 46 – 50 Years
(39.17) (42.28) (18.55) (8.02)
43 0 22 65
6. Above 50 Years
(66.15) (0.00) (33.85) (5.37)
375 492 343 1210
Total - -
(30.99) (40.66) (28.35) (100.00)
Eta Squared .031
(The figures in the parentheses are per cent to total)
Out of 170 owners of residential flats who have age group of 25 – 30 years, 25.88 per cent
of owners viewed that the level of buying behaviour towards residential flats at high level,
while, 28.24 per cent of owners viewed that the level of buying behaviour towards residential
flats at low level. Out of 251 owners of residential flats who have age group of 31 – 35 years,
35.86 per cent of owners viewed that the level of buying behaviour towards residential flats at

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 A Study on Buying Behaviour of Owners Towards Residential Flats in Urban Areas of Tamil Nadu
State

high level, while, 6.77 per cent of owners viewed that the level of buying behaviour towards
residential flats at low level.

Out of 392 owners of residential flats who have age group of 36 – 40 years, 23.73 per cent
of owners viewed that the level of buying behaviour towards residential flats at high level,
while, 42.09 per cent of owners viewed that the level of buying behaviour towards residential
flats at low level. Out of 235 owners of residential flats who have age group of 41 – 45 years,
32.34 per cent of owners viewed that the level of buying behaviour towards residential flats
at high level, while, 27.23 per cent of owners viewed that the level of buying behaviour
towards residential flats at low level.
Out of 97 owners of residential flats who have age group of 46 – 50 years, 18.55 per cent
of owners viewed that the level of buying behaviour towards residential flats at high level,
while, 39.17 per cent of owners viewed that the level of buying behaviour towards residential
flats at low level. Out of 65 owners of residential flats who have age group of above 50 years,
33.85 per cent of owners viewed that the level of buying behaviour towards residential flats at
high level, while, 66.15 per cent of owners viewed that the level of buying behaviour towards
residential flats at low level.
The F-value of 7.626 is significant at one per cent level showing that there is significant
difference between age group of owners and buying behaviour towards residential flats. The
eta squared value is 0.031 showing that the effect size is small. It implies that the actual
difference in mean values between groups is small.

3.3.3. Monthly Income and Buying Behaviour Towards Residential Flats

The relationship between monthly income of owners and buying behaviour towards
residential flats was analyzed and the results are presented in Table 5.

Table 5 Monthly Income and Buying Behaviour towards Residential Flats

Level of Buying Behaviour
Sl. No. Monthly Income Total F-Value Sig.
Low Moderate High
14 49 30 93
1. Below Rs.30,000
(15.05) (52.69) (32.26) (7.69)
87 178 93 358
2. Rs.30,001 – Rs.40,000
(24.30) (49.72) (25.98) (29.59)
117 163 153 433
3. Rs.40,001 – Rs.50,000 11.189 .000
(27.02) (37.64) (35.34) (35.78)
65 71 34 170
4. Rs.50,001 – Rs.60,000
(38.24) (41.76) (20.00) (14.05)
92 31 33 156
5. Above Rs.60,000
(58.97) (19.87) (21.16) (12.89)
375 492 343 1210
Total - -
(30.99) (40.66) (28.35) (100.00)
Eta Squared .036
(The figures in the parentheses are per cent to total)
Out of 93 owners of residential flats who have monthly income of below Rs.30,000, 32.26
per cent of owners viewed that the level of buying behaviour towards residential flats at high
level, while, 15.05 per cent of owners viewed that the level of buying behaviour towards
residential flats at low level. Out of 358 owners of residential flats who have monthly income

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 K. T. Manivannan and Dr. T. Joseph

of Rs.30,001 – Rs.40,000, 25.98 per cent of owners viewed that the level of buying behaviour
towards residential flats at high level, while, 24.30 per cent of owners viewed that the level of
buying behaviour towards residential flats at low level.
Out of 433 owners of residential flats who have monthly income of Rs.40,001 –
Rs.50,000, 35.34 per cent of owners viewed that the level of buying behaviour towards
residential flats at high level, while, 27.02 per cent of owners viewed that the level of buying
behaviour towards residential flats at low level. Out of 170 owners of residential flats who
have monthly income of Rs.50,001 – Rs.60,000, 20.00 per cent of owners viewed that the
level of buying behaviour towards residential flats at high level, while, 38.24 per cent of
owners viewed that the level of buying behaviour towards residential flats at low level. Out
of 156 owners of residential flats who have monthly income of above Rs.60,000, 21.16 per
cent of owners viewed that the level of buying behaviour towards residential flats at high
level, while, 58.97 per cent of owners viewed that the level of buying behaviour towards
residential flats at low level.
The F-value of 11.189 is significant at one per cent level showing that there is significant
difference between monthly income of owners and buying behaviour towards residential flats.
The eta squared value is 0.036 showing that the effect size is small. It implies that the actual
difference in mean values between groups is small.

3.3.4. Marital Status and Buying Behaviour Towards Residential Flats

The relationship between marital status of owners and buying behaviour towards residential
flats was analyzed and the results are presented in Table 6.

Table 6 Marital Status and Buying Behaviour towards Residential Flats

Marital Level of Buying Behaviour

Sl. No. Total F-Value Sig.
Status Low Moderate High
242 359 250 851
1. Married
(28.44) (42.18) (29.38) (70.33)
10.328 .000
133 133 93 359
2. Unmarried
(37.05) (37.05) (25.90) (29.67)
375 492 343 1210
Total - -
(30.99) (40.66) (28.35) (100.00)
Eta Squared .015
(The figures in the parentheses are per cent to total)
Out of 851 owners of residential flats who are married, 29.38 per cent of owners viewed
that the level of buying behaviour towards residential flats at high level, while, 28.44 per cent
of owners viewed that the level of buying behaviour towards residential flats at low level. Out
of 359 owners of residential flats who are unmarried, 25.90 per cent of owners viewed that the
level of buying behaviour towards residential flats at high level, while, 37.05 per cent of
owners viewed that the level of buying behaviour towards residential flats at low level.
The F-value of 10.328 is significant at one per cent level showing that there is significant
difference between marital status of owners and buying behaviour towards residential flats.
The eta squared value is 0.015 showing that the effect size is small. It implies that the actual
difference in mean values between groups is small.

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 A Study on Buying Behaviour of Owners Towards Residential Flats in Urban Areas of Tamil Nadu
State

4. CONCLUSION
The findings of this study reveal that more than two fifth (40.66 per cent) of owners have
moderate level of buying behaviour for residential flats, then by low level (30.99 per cent) and
high level (28.35 per cent). Significant differences are there in buying behaviour of residential
flats among profile of owners of residential flats except gender. In order to improve the
buying behaviour of residential flats among home buyers, developers should build residential
flats in health and sanitary environment and must sell their residential flats at affordable price.
The residential flats should be maintained well by private management and have good
facilities. Besides, they must adopt effective promotional measures to promote their
residential flats. In addition, they should build residential flats in such a way they are
accessible to school, shopping and medical facilities.

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