PROJECT REPORT

ON

CUSTOMER BEHAVIOUR AND RISK ANALYSIS

IN REAL ESTATE
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION 2017-20

UNDER THE GUIDANCE OF

MR. ROHIT KAUSHIK

SUBMITTED BY:

DIVYA SHARMA

ROLL NO:01116701717

SIRIFORT INSTITUTE OF MANAGEMENT STUDIES

Affiliated to Guru Gobind Singh Indraprastha University, Delhi

Institutional Area, Sector 25, Rohini New Delhi -110085

 DECLARATION

This is to certify that the project titled “CUSTOMER BEHAVIOUR AND RISK
ANALYSIS IN REAL ESTATE” is an academic work done by “DIVYA
SHARMA” submitted in the partial fulfillment of the requirement for the award
of the degree of Bachelor Of Business Administration from Sirifort Institute of
Management Studies, Delhi under my supervision. To the best of my knowledge
and belief the data & information in the project has not been submitted earlier.
Care has been given while preparing the project report .Data is gathered in an
appropriate manner and I am obliged if any errors are identified in the project
report. I request to bring the errors found in project report to my notice so that
attention can be given on rectification of those identified errors.

Name: DIVYA SHARMA

Enrollment No: 01116701717

 CERTIFICATE

This is to certify that report entitled “CUSTOMER BEHAVIOUR AND RISK

ANALYSIS IN REAL ESTATE” which is submitted by DIVYA SHARMA
submitted in the partial fulfillment of the requirement for the award of the degree
of Bachelor Of Business Administration from Sirifort Institute of Management
Studies, Delhi is the record of the candidate own work carried out by her under my
supervision .The matter embodied in this report is original and has not been
submitted for the award of the other degree.

MR. ROHIT KAUSHIK

[ Name of the Faculty Guide]

 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to SIRIFORT INSTITUTE OF

MANAGEMENT STUDIES ,GGSIP University ,New Delhi for imparting us very
valuable professional training in BBA.

I pay my gratitude and sincere regards to MR. ROHIT KAUSHIK ,my project
guide for giving me the cream of knowledge .I am thankful to him as He has been
a constant source of advice ,motivation ,and inspiration .I am also thankful to him
for giving suggestions and encouragements throughout the project work.

A special thanks to my family for constantly motivating me to complete the

project and providing me an environment which enhanced my knowledge.

DIVYA SHARMA
 TABLE OF CONTENTS

Sno TOPIC Pgno.

1. Title page

Declaration
2 .
3. Certificate

4. Acknowledgement

5. Table of contents
6. CHAPTER PLAN:

7. CHAPTER 1 2-6
1.1 Introduction
1.2 Objectives of the study 7

1.3 Review of literature 8-27

1.4 Research Methodology 28-35

1.5 Limitations of the study 36

8. CHAPTER 2 Analysis and Interpretation 38-57

9. CHAPTER 3 CONCLUSION AND RECOMMENDATIONS 58-60
10. BIBLOGRAPHY 61
11. ANNEXURES 62-64
 CHAPTER 1

INTRODUCTION OF THE TOPIC

Page 1
 CHAPTER 1

1.1 INTRODUCTION

Purpose of the study

Most real estate study is based on neoclassical economic theory that assumes that
people make rational decisions about renting and buying real estate as part of their
attempt to maximize utility. While recognizing that real estate markets are
imperfect, most real estate researchers do not examine the influence that the
diversity of real estate consumers has on the demand for real estate. Consumers are
complex human beings driven by internal and external forces, some of which are
beyond their control and many of which they are relatively unaware.
Rather than ignore the human element of decision making or put all aspects of
nonfinancial decision factors in a black box called “tastes and preferences,” real
estate students, professors, and practitioners can benefit from integrating the study
of consumer behavior with the financial economic approach to real estate study.
Greater knowledge of real estate consumers and their behavior will lead to better
understanding and prediction of decision makers’ actions in the real estate market.
The purpose of this paper is to present some of the most common consumer
behavior concepts and explain how integration of consumer behavior theories and
understanding would improve real estate study.

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Definition of Buying Behaviour
Buying Behavior is the decision processes and acts of people involved in buying
and using products.

The dynamic interaction of affect and cognition, behaviour, and the environment
by which human beings conduct the exchange aspects of their lives

Defination of Consumer Behaviour:

Consumer behaviour can be looked upon as a study of how individuals make
decisions on how to spend their available resources like time, money and effort on
various consumption-related items.

Human beings are greatly influenced in their buying actions by various factors like
opinions of others, marketing stimuli like product, advertising, packaging and
product appearance

Scope of Consumer Buying Behaviour

 Why do consumers buy a particular product/service brand?
 How do they buy them?
 Where do they buy these products?
 How often do they buy them?
 When do they buy them?
 What factors influence the decision making process of the consumers?
 The buying process involves the user, influencer, decider, and the buyer

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  The process is greatly affected by selective information received by a
consumer
 It is very important to understand what and how much information is
required by the consumer to help him evaluate the products and services
 As such understanding why a consumer finally buys a product is very
complex

Importance Of Consumer Behaviour

 Ever increasing intensity of competition
 More aggressive competitors emerging with greater frequency
 Changing bases of competition
 Geographic sources of competition are becoming wider
 Niche attacks are becoming frequent
 Pace of innovation is rapid
 Price competition becoming more aggressive
 Product differentiation is declining

Why Focus On Consumer Behaviour

 Profit making through customer satisfaction
 Dramatic increase in the quality of consumer and marketing research
 Development of consumer behaviour research
 Shifting from the mass marketing concept to individual marketing concept .

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Stages of Consumer Buying Process
Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead
to a purchase. All consumer decisions do not always include all 6 stages,
determined by the degree of complexity.

The 6 stages are:

1.Problem Recognition (awareness of need)

Difference between the desired state and the actual condition. Deficit in assortment
of products. Hunger-- Food. Hunger stimulates your need to eat. Can be stimulated
by the marketer through product information--did not know you were deficient?
I.E., see a commercial for a new pair of shoes, stimulates your recognition that you
need a new pair of shoes.

2. Information search

 Internal search, memory.

 External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources
etc. A successful information search leaves a buyer with possible
alternatives, the evoked set. Hungry, want to go out and eat, evoked set is
 Chinese food
 Indian food
 Burger king
 Klondike Kates etc

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3.Evaluation of Alternatives

Need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives or resume search. May decide that you want to eat
something spicy, indian gets highest rank etc. If not satisfied with your choice then
return to the search phase. Can you think of another restaurant? Look in the yellow
pages etc. Information from different sources may be treated differently. Marketers
try to influence by "framing" alternatives.

4. Purchase decision
Choose buying alternative, includes product, package, store, method of purchase
etc.
5. Purchase
May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation—outcome

Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right

decision. This can be reduced by warranties, after sales communication etc. After
eating an indian meal, may think that really you wanted a chinese meal instead

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1.2 OBJECTIVES OF THE STUDY
 To analyse the factors that strongly impact purchase decision in Apartments
purchase in Delhi NCR
 To assess the level of satisfaction of the public with respect to invest in real
estate.
 To evaluate the perception of the public on the importance of various type of
Apartments
 .To know the preferences of different types of Apartments
 To understand the service quality factors of Apartments projects

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1.3 REVIEW OF LITERATURE

Most real estate purchases and leases would be considered high involvement goods
that would require complex decision-making. The three major comprehensive
models of this type of consumer decision making (Engel, Kollat and Blackwell,
1968; Howard and Sheth, 1969; Nicosa 1966) trace the psychological state and
behavior of individual purchasers from the point at which they perceive a need
through the search for information, evaluation of alternatives, purchase, and final
evaluation of the consequences. The assumption is that a purchase act is preceded
by a sequence of mental information processing. This involves a cognitive function
in forming beliefs, an emotional component in developing positive or negative
attitudes, and a reaction through being motivated to select and buy.

When evaluating alternatives, such as choosing which property to purchase or rent,

consumers choose from a list of acceptable alternatives (evoked or consideration
set) based on the criteria they have selected as being important. For a product to be
considered by a consumer, he must know that it exists and perceive that it can
satisfy his needs.

The criteria a consumer uses to choose between alternative products are the
product attributes the consumer considers important. Consumers may make the
purchase decision using compensatory or noncompensatory decision rules. With a
compensatory decision rule, the consumer identifies the important attributes, rates
the alternative products on each attribute, and selects the product with the highest
score. With a simple additive rule, the consumer selects the product that is judged
to have the largest number of positive attributes. This is a relatively simple rule

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used most often when motivation or ability is limited (Alba and Marmorstein,
1987). Thus, a consumer might choose the apartment that offers a pool, exercise
room, built-in washer and dryer, but inconvenient location over an apartment with
a pool and a convenient location.

Consumers may use a combination of decision rules in choosing a property. First,

they may use a rule to narrow down the choice set with some simple cutoff, and
then they may apply a more complex compensatory rule to make the final choice.
Some criteria are more salient than others and those attributes will have a greater
impact or importance in determining consumer selections. Whether a characteristic
is salient depends on the alternatives and consumers’ evaluation of them. If, for
example, the consumer with small children believes all neighborhoods in the city
offer equally good schools, then school quality is not a deciding factor in which
house to buy. Salient attributes that actually influence the evaluation of alternatives
are known as determinant attributes (Alpert, 1971). The particular criteria
consumers use in their decision making depend on situational influences, similarity
among choices, motivation, involvement, and knowledge.

differ in their attitudes toward shopping. In general, consumers engage in more

search as their attitudes toward shopping become more favorable (Beatty and
Smith, 1987; Punj and Staelin, 1983). Individual beliefs about the cost versus
benefits of search will also guide search (Urbany, 1986). Research indicates that
search may be related to several demographic characteristics (Beatty and Smith,
1987). Age is often negatively related to search (Cole and Balasubramanian,
1993). Older consumers have greater experience with many products so they can
rely on internal information. Higher income consumers often search less than
lower income consumers because of the value of their time (Urbany, 1986). More
educated consumers usually search more, perhaps because of their greater

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confidence in their ability to undertake the search and use the information gathered
effectively (Duncan and Olshavsky, 1982). Because the modes of information
search and, ultimately, decisionmaking are a function of both internal and external
influences on behavior, the remaining sections focus on the consumer behavior
implications of each.

Meaning of Consumer Behaviour

Consumer behaviour can be looked upon as a study of how individuals make
decisions on how to spend their available resources like time, money and effort on
various consumption-related items.

Human beings are greatly influenced in their buying actions by various factors like
opinions of others, marketing stimuli like product, advertising, packaging and
product appearance

Characteristics Of Consumer Behaviour

• The feelings, thinking, perceptions, and actions of the consumers and the society
at large keep changing frequently.

• Strategies that work today may not work tomorrow.

• The product life cycles are becoming shorter

Benefits of Consumer Behaviour

• Stay loyal for a long time

• Buy new products and upgrade existing ones

• Talk favourably about the firm and its products

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• Pay less attention to competing brands

• Offer product/service ideas to the firm

• Are cost effective

Approaches To Consumer Behaviour

Managerial:
• Micro and cognitive in nature

• Emphasizes on attitudes, perceptions, lifestyle and demographic characteristics

• Environmental effects-reference groups, family and culture

• Risk of this approach is overemphasis on rationality of a consumer and overlooks

• the dynamics of environmental factors independent of the individual

• Tends to focus more on purchase than on consumption

Holistic:
• More macro in approach

• Tends to focus more on consumption experience than on purchasing process

• Stresses the broader, culturally derived context of consumption

• Emphasizes on environmental context of the consumer’s actions

• This approach may not be actionable and all decisions are not rational.

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Need To Understand Consumer Buying
Behaviour:
• Why consumers make the purchases that they make?

• What factors influence consumer purchases?

• The changing factors in our society.

• Consumer Buying Behavior refers to the buying behavior of the ultimate

consumer. A firm needs to analyze buying behavior for:

Buyers reactions to a firms marketing strategy has a great impact on the firms
success. The marketing concept stresses that a firm should create a Marketing Mix
(MM) that satisfies (gives utility to) customers, therefore need to analyze the what,
where, when and how consumers buy.

Marketers can better predict how consumers will respond to marketing strategies.

Stages of Consumer Buying Process:

Six Stages to the Consumer Buying Decision Process (For complex decisions).
Actual purchasing is only one stage of the process. Not all decision processes lead
to a purchase. All consumer decisions do not always include all 6 stages,
determined by the degree of complexity.

The 6 stages are:

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12
1.Problem Recognition (awareness of need)

Difference between the desired state and the actual condition. Deficit in assortment
of products. Hunger-- Food. Hunger stimulates your need to eat. Can be stimulated
by the marketer through product information--did not know you were deficient?
I.E., see a commercial for a new pair of shoes, stimulates your recognition that you
need a new pair of shoes.

2. Information search

 Internal search, memory.

 External search if you need more information. Friends and relatives (word of
mouth). Marketer dominated sources; comparison shopping; public sources
etc. A successful information search leaves a buyer with possible
alternatives, the evoked set. Hungry, want to go out and eat, evoked set is
 Chinese food
 Indian food
 Burger king
 Klondike Kates etc
3. Evaluation of Alternatives

Need to establish criteria for evaluation, features the buyer wants or does not want.
Rank/weight alternatives or resume search. May decide that you want to eat
something spicy, indian gets highest rank etc. If not satisfied with your choice then
return to the search phase. Can you think of another restaurant? Look in the yellow
pages etc. Information from different sources may be treated differently. Marketers
try to influence by "framing" alternatives.

Page
13
4. Purchase decision

Choose buying alternative, includes product, package, store, method of purchase

etc.
5.Purchase
May differ from decision, time lapse between 4 & 5, product availability.
6. Post-Purchase Evaluation—outcome
Satisfaction or Dissatisfaction. Cognitive Dissonance, have you made the right
decision. This can be reduced by warranties, after sales communication etc. After
eating an indian meal, may think that really you wanted a chinese meal instead.

Types of consumer buying behavior are

determined by
 Level of Involvement in purchase decision. Importance and intensity of
interest in a product in a particular situation.
 Buyers level of involvement determines why he/she is motivated to seek
information about a certain products and brands but virtually ignores others.
 High involvement purchases--Honda Motorbike, high priced goods,
products visible to others, and the higher the risk the higher the
involvement.

Types of risk:

• Personal risk
• Social risk
• Economic risk

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Types Of Consumer Buying Behaviour

The four type of consumer buying behavior are:

Routine Response/Programmed Behavior

Buying low involvement frequently purchased low cost items; need very little
search and decision effort; purchased almost automatically. Examples include soft
drinks, snack foods, milk etc.

Limited Decision Making

Buying product occasionally. When you need to obtain information about

unfamiliar brand in a familiar product category, perhaps. Requires a moderate
amount of time for information gathering. Examples include Clothes--know
product class but not the brand.

Extensive Decision Making/Complex high involvement, unfamiliar, expensive

and/or infrequently bought products. High degree of
economic/performance/psychological risk. Examples include cars, homes,
computers, education. Spend a lot of time seeking information and deciding.
Information from the companies MM; friends and relatives, store personnel etc. Go
through all six stages of the buying process.

Impulse buying, no conscious planning

The purchase of the same product does not always elicit the same Buying
Behavior. Product can shift from one category to the next.

For example: Going out for dinner for one person may be extensive decision
making (for someone that does not go out often at all), but limited decision making

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for someone else. The reason for the dinner, whether it is an anniversary
celebration, or a meal with a couple of friends will also determine the extent of the
decision making.

Categories That Effect The Consumer Buying

Decision Process
A consumer, making a purchase decision will be affected by the following three
factors:

1. Personal

2. Psychological

3. Social

The marketer must be aware of these factors in order to develop an appropriate

MM for its target market.

1. Personal

Unique to a particular person. Demographic Factors. Sex, Race, Age etc. Who in
the family is responsible for the decision making. Young people purchase things
for different reasons than older people.

2. Psychological factors

Psychological factors include:

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• Motives

A motive is an internal energizing force that orients a person's activities toward

satisfying a need or achieving a goal. Actions are effected by a set of motives, not
just one. If marketers can identify motives then they can better develop a
marketing mix.

MASLOW hierarchy of needs!!

o Physiological

o Safety

o Love and Belonging

o Esteem

o Self Actualization

Need to determine what level of the hierarchy the consumers are at to determine
what motivates their purchases.

• Perception

What do you see? Perception is the process of selecting, organizing and

interpreting information inputs to produce meaning. IE we chose what info we pay
attention to, organize it and interpret it. Information inputs are the sensations
received through sight, taste, hearing, smell and touch.

Selective Exposure- select inputs to be exposed to our awareness. More likely if it

is linked to an event, satisfies current needs, intensity of input changes.

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Selective Distortion- Changing/twisting current received information, inconsistent
with beliefs.

Advertisers that use comparative advertisements, have to be very careful that

consumers do not distort the facts and perceive that the advertisement was for the
competitor.

Selective Retention- Remember inputs that support beliefs, forgets those that don't.

• Ability and Knowledge

Need to understand individual’s capacity to learn. Learning, changes in a person's

behavior caused by information and experience. Therefore to change consumers'
behavior about your product, need to give them new information re: product...free
sample etc. Knowledge is the familiarity with the product and expertise.
Inexperience buyers often use prices as an indicator of quality more than those who
have knowledge of a product.

Learning is the process through which a relatively permanent change in behavior

results from the consequences of past behavior.

• Attitudes

Knowledge and positive and negative feelings about an object or activity-maybe

tangible or intangible, living or non- living.....Drive perceptions Individual learns
attitudes through experience and interaction with other people.

Consumer attitudes toward a firm and its products greatly influence the success or
failure of the firm's marketing strategy. Attitudes and attitude change are
influenced by consumers personality and lifestyle.

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Consumers screen information that conflicts with their attitudes. Distort
information to make it consistent and selectively retain information that reinforces
our attitudes. IE brand loyalty.

There is a difference between attitude and intention to buy (ability to buy)

• Personality-- All the internal traits and behaviors that make a person unique,
uniqueness arrives from a person's heredity and personal experience.

Examples include:

 Work holism
 Compulsiveness
 Self confidence
 Friendliness
 Adaptability
 Ambitiousness
 Dogmatism
 Authoritarianism
 Introversion
 Extroversion
 Aggressiveness
 Competitiveness.

Traits effect the way people behave. Marketers try to match the store image to the
perceived image of their customers.

There is a weak association between personality and Buying Behavior; this may be
due to unreliable measures.

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• Lifestyles—

Recent US trends in lifestyles are a shift towards personal independence and

individualism and a preference for a healthy, natural lifestyle. Lifestyles are the
consistent patterns people follow in their lives.

3. Social Factors

Consumer wants, learning, motives etc. are influenced by opinion leaders, person's
family, reference groups, social class and culture.

• Opinion leaders

Spokespeople etc. Marketers try to attract opinion leaders...they actually use (p y)

spokespeople to market their products. Michael Jordon (Nike, McDonalds,
Gatorade etc.) Can be risky...Michael Jackson...OJ Simpson...Chevy Chase

• Roles and Family Influences

Role...things you should do based on the expectations of you from your position
within a group. People have many roles. Husband, father, employer/ee. Individuals
role are continuing to change therefore marketers must continue to update
information.

Family is the most basic group a person belongs to. Marketers must understand:

 that many family decisions are made by the family unit

 consumer behavior starts in the family unit
 family roles and preferences are the model for children's future family (can
reject/alter/etc)

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Government Initiatives

The Government of India along with the governments of the respective states has
taken several initiatives to encourage the development in the sector. The Smart
City Project, where there is a plan to build 100 smart cities, is a prime opportunity
for the real estate companies. Below are some of the other major Government
Initiatives:

 The Cabinet Committee on Economic Affairs (CCEA) has approved various

measures to revive the construction sector, putting in place a mechanism to
release funds stuck in arbitration awards to revive stalled projects.
 The Make in India initiative has helped to accelerate leasing of commercial
property by the manufacturing sector, which has outpaced the Information
Technology (IT) sector by registering two-fold increase in office transacted
space in the first six months of 2016.%
 Brihanmumbai Municipal Corporation (BMC) has introduced a single-
window clearance for construction which will cut the time taken for getting
approvals for a building project and lead to correction in prices of residential
property, thereby giving a fillip to Mumbai realty.
 The Securities and Exchange Board of India (Sebi) has proposed easier
regulations for real estate investment trusts (REITs), such as raising the cap
of investment of REITs’ assets in under-construction projects from 10 per
cent to 20 per cent, in order to attract the interest of developers, and also
plans to relax the rules for foreign fund managers to relocate to India.
 The Government of India has brought into force the Real Estate (Regulation
and Development) Act, 2016 on May 01, 2016, which is aimed at making
necessary operational rules and creating an institutional infrastructure for

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 protecting the interests of consumers and promoting growth of the real estate
sector in India.
 The Securities and Exchange Board of India (SEBI) has allowed Foreign
Portfolio Investors (FPI) to invest in units of Real Estate Investment Trusts
(REITs), infrastructure investment trusts (InvITs), category III alternative
investment funds (AIFs), and also permitted them to acquire corporate bonds
under default.
 The Rajya Sabha or the upper house of the Parliament has passed the Real
Estate (Regulation and Development) Bill, 2013, which aims to protect
consumer interest, ensure efficiency in all property related transactions,
improve accountability of real estate developers, increase transparency and
attract more investments into the realty sector in India.
 The Securities and Exchange Board of India (SEBI) has issued the
consultation paper for public issue of Real Estate Investment Trusts (REITs),
which include provisions such as capping of allocation to qualified
institutional buyers (QIBs) at 75 per cent, among other topics.
 India’s Prime Minister Mr Narendra Modi approved the launch of Housing
for All by 2022. Under the Sardar Patel Urban Housing Mission, 30 million
houses will be built in India by 2022, mostly for the economically weaker
sections and low-income groups, through public-private-partnership (PPP)
and interest subsidy.
 The Securities and Exchange Board of India (SEBI) has notified final
regulations that will govern real estate investment trusts (REITs) and
infrastructure investment trusts (InvITs). This move will enable easier access
to funds for cash-strapped developers and create a new investment avenue
for institutions and high net worth individuals, and eventually ordinary
investors.

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  The State Government of Kerala has decided to make the process of
securing permits from local bodies for construction of houses smoother, as it
plans to make the process online with the launch of software called
'Sanketham'. This will ensure a more standardised procedure, more
transparency, and less corruption and bribery.

Risk Analysis Techniques

1. Brainstorming
Is used extensively in formative project planning and can also be used to advantage
to identify and postulate risk scenarios for a particular project. It is a simple but
effective attempt to help people think creatively in a group setting without feeling
inhibited or being criticized by others.
The rules are that each member must try to build on the ideas offered by preceding
comments. No criticism or disapproving verbal or nonverbal behaviors are
allowed. The intent is to encourage as many ideas as possible, which may in turn,
trigger the ideas of others.

2.Sensitivity Analysis
Sensitivity analysis seeks to place a value on the effect of change of a single
variable within a project by analyzing that effect on the project plan. It is the
simplest form of risk analysis. Uncertainty and risk are reflected by defining a
likely range of variation for each component of the original base case estimate. In
practice such an analysis is only done for those variables which have a high impact
on cost, time or economic return, and to which the project is most sensitive.

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Some of the advantages of sensitivity analysis include impressing management that
there is a range of possible outcomes, decision making is more realistic, though
perhaps more complex. And the relative importance of each variable examined is
readily apparent. Some weaknesses are that variables are treated individually,
limiting the extent to which combinations of variables can be assessed, and a
sensitivity diagram gives no indication of anticipated probability of occurrence.

3. Probability Analysis
Probability analysis overcomes the limitations of sensitivity analysis by specifying
a probability distribution for each variable, and then considering situations where
any or all of these variables can be changed at the same time. Defining the
probability of occurrence of any specific variable may be quite difficult,
particularly as political or commercial environments can change quite rapidly.
As with sensitivity analysis, the range of variation is subjective, but ranges for
many time and cost elements of a project estimate should be skewed toward
overrun, due to the natural optimism or omission of the estimator.

4. Delphi Method
The basic concept is to derive a consensus using a panel of experts to arrive at a
convergent solution to a specific problem. This is particularly useful in arriving at
probability assessments relating to future events where the risk impacts are large
and critical. The first and vital step is to select a panel of individuals who have
experience in the area at issue. For best results, the panel members should not
know each other identity and the process should be conducted with each at separate
locations.

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The responses, together with opinions and justifications, are evaluated and
statistical feedback is furnished to each panel member in the next iteration. The
process is continued until group responses converge to s specific solution.

5. Monte Carlo
The Monte Carlo method, simulation by means of random numbers, provides a
powerful yet simple method of incorporating probabilistic data. Basic steps are:
a. Assess the range of the variables being considered and determine the probability
distribution most suited to each.
b. For each variable within its specific range, select a value randomly chosen,
taking account of the probability distribution for the occurrence of the variable.
c. Run a deterministic analysis using the combination of values selected for each
one of the variables.
d. Repeat steps 2 and 3 a number of times to obtain the probability distribution of
the result. Typically between 100 and 1000 iterations are required depending on
the number of variables and the degree of confidence required.

6. Decision Tree Analysis

A feature of project work is that a number of options are typically available in the
course of reaching the final results. An advantage of decision tree analysis is that it
forces consideration of the probability of each outcome. Thus, the likelihood of
failure is quantified and some value is place on each decision. This form of risk
analysis is usually applied to cost and time considerations, both in choosing
between different early investment decisions, and later in considering major
changes with uncertain outcomes during project implementation.

7. Utility Theory

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Utility theory endeavors to formalize management’s attitude towards risk, an
approach that is appropriate to decision tree analysis for the calculation of expected
values, and also for the assessment of results from sensitivity and probability
analyses. However, in practical project work Utility Theory tends to be viewed as
rather theoretical.

8. Decision Theory

Is a technique for assisting in reaching decisions under uncertainty and risk. All
decisions are based to some extent on uncertain forecasts. Given the criteria
selected by the decision-maker, Decision Theory points to the best possible course
whether or not the forecasts are accurate.

The Quality Risk

 This risk can best be expressed by the question: “What if the project fails to
perform as expected during its operational life?” This may well be the result
of less than satisfactory quality upon project completion, and is especially
true if quality is not given due attention during the project life cycle. Since
the in-service life of the resulting product is typically much longer than the
period required to plan and produce that product, any quality shortcomings
and their effects may surface over a prolonged period of time.
 Consequently, of all the project objectives, conformance to quality
requirement is the one most remembered long after cost and schedule
performance have faded into the past. It follows that quality management
can have the most impact on the long-term actual or perceived success of the
project.

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Risk Perceptions
1. People do not, in fact, demand zero risk. They take risk every day, both
consciously and subconsciously, and they are willing and able to take benefit/risk
decisions, as in driving and speeding.
2. Peoples’ judgment of degrees of risk is not, however, coincident with most
methodologies for measuring risk statistically. The public may greatly
underestimate familiar risks (e.g. driving) while greatly overestimating unfamiliar
risks (e.g. buying a home near a nuclear facility).
3. A variety of emotional, not logical, factors control risk perceptions:
a. Primary is the sense of personal control and the ability to mange the risk
b. Secondary are qualities of familiarity and conversely, dread. The greater the
unfamiliarity and potential for connection to gruesome, the more it is likely to be
judged as highly risky and therefore unacceptable.
4. Once established, risk perceptions are extremely hard to change. New
information may be absorbed by the intellect, but it is not readily absorbed at an
emotional level.
5. Risk perceptions reside fundamentally at an emotional level.

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1.4 Research Methodology

Research methodology is considered as the nerve of the project. Without a proper

well-organized research plan, it is impossible to complete the project and reach to
any conclusion. The project was based on the survey plan. The main objective of
survey was to collect appropriate data, which work as a base for drawing
conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic
behind the methods used in the context of a research study and it explains why a
particular method has been used in the preference of the other methods

Methodology is the systematic, theoretical analysis of the methods applied to a

field of study. It comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge. Typically, it encompasses
concepts such as paradigm, theoretical model, phases and quantitative or
qualitative techniques.

A methodology does not set out to provide solutions - it is, therefore, not the same
thing as a method. Instead, it offers the theoretical underpinning for understanding

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which method, set of methods or so called “best practices” can be applied to
specific case, for example, to calculate a specific result.

It has been defined also as follows:

1. "the analysis of the principles of methods, rules, and postulates employed by

a discipline"
2. "the systematic study of methods that are, can be, or have been applied
within a discipline"
3. "the study or description of methods”

Objectives of the study

 To analyse the factors that strongly impact purchase decision in Apartments

purchase in Delhi NCR
 To assess the level of satisfaction of the public with respect to invest in real
estate.
 To evaluate the perception of the public on the importance of various type of
Apartments
 .To know the preferences of different types of Apartments
 To understand the service quality factors of Apartments projects

RESEARCH DESIGN
The research design is purely and simply the framework of plan for a study that
guides the collection and analysis of data. Types of Research Design:

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29
  Exploratory Research – The main purpose of such studies is that of
formulating a problem for more precise investigation or of developing the
working hypotheses from an operational point of view.
 Descriptive Research – Those studies which are concerned with describing
the characteristics of a particular individual, or of a group.
 Hypothesis Testing Research – They are those where the researchers tests
the hypotheses of casual relationships between variables.

Descriptive research design was used for this research.

The type of research adopted for study is descriptive. Descriptive studies are
undertaken in many circumstances when the researches is interested to know the
characteristic of certain group such as age, sex, education level, occupation or
income. A descriptive study may be necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who have in
particular manner, making projections of a certain thing, or determining the
relationship between two or more variables. The objective of such study is to
answer the “who, what, when, where and how” of the subject under investigation.
There is a general feeling that descriptive studies are factual and very simple. This
is not necessarily true. Descriptive study can be complex, demanding a high degree
of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in

its approach, but a descriptive study in contrast tends to be rigid and its approach
cannot be changed every now and then. It is therefore necessary, the researcher
give sufficient thought to framing research.

Questions and deciding the types of data to be collected and the procedure to be
used in this purpose.

Descriptive studies can be divided into two broad categories: Cross Sectional and
Longitudinal Sectional. A cross sectional study is concerned with a sample of
elements from a given population. Thus, it may deal with household, dealers, retail
stores, or other entities. Data on a number of characteristics from sample elements

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are collected and analyzed. Cross sectional studies are of two types: Field study
and Survey. Although the distinction between them is not clear- cut, there are some
practical differences, which need different techniques and skills. A major strength
of survey research is its wide scope. Detail information can be obtained from a
sample of large population .Besides; it is economical as more information can be
collected per unit of cost. In addition, it is obvious that a sample survey needs less
time than a census inquiry

A research design is a systematic plan to study a scientific problem. The design of

a study defines the study type (descriptive, correlation, semi-experimental,
experimental, review, meta-analytic) and sub-type (e.g., descriptive-longitudinal
case study), research question, hypotheses, independent and dependent variables,
experimental design, and, if applicable, data collection methods and a statistical
analysis plan.

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Design types and sub-types

There are many ways to classify research designs, but sometimes the distinction is
artificial and other times different designs are combined. Nonetheless, the list
below offers a number of useful distinctions between possible research designs.

 Descriptive (e.g., case-study, naturalistic observation, Survey)

 Co relational (e.g., case-control study, observational study)
 Semi-experimental (e.g., field experiment, quasi-experiment)
 Experimental (Experiment with random assignment)
 Review (Literature review, Systematic review)
 Meta-analytic (Meta-analysis)

Sometimes a distinction is made between "fixed" and "flexible" or, synonymously,

"quantitative" and "qualitative" research designs. However, fixed designs need not
be quantitative, and flexible design need not be qualitative. In fixed designs, the
design of the study is fixed before the main stage of data collection takes place.
Fixed designs are normally theory driven; otherwise it is impossible to know in
advance which variables need to be controlled and measured. Often, these
variables are measured quantitatively. Flexible designs allow for more freedom
during the data collection process. One reason for using a flexible research design
can be that the variable of interest is not quantitatively measurable, such as culture.
In other cases, theory might not be available before one starts the research.
However, these distinctions are not recognized by many researchers, such as
Stephen Gorard who presents a simpler and cleaner definition of research design.

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SAMPLE SIZE

Detail:

Size of Data : 100

Area : New Delhi

Sampling Technique

Sampling techniques can be broadly classified in to two types:

 Probability Sampling.
 Non Probability Sampling.

METHODS OF DATA COLLECTION--- TESTING OF

QUESTIONNAIRE

Primary Data
Primary data is basically the live data which I collected on field while doing cold
calls with the customers and I shown them list of question for which I had required
their responses.

Source: Main source for the primary data for the project was questionnaires which
I got filled by the customers or some times filled myself on the basis of discussion
with the customers.

Secondary Data
Secondary data for the base of the project I collected from internet, magazines,
newspapers etc.

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Statistical Analysis

In this segment I will show my findings in the form of graphs and charts. All the
data which I got form the market will not be disclosed over here but extract of that
in the form of information will definitely be here.

TOOLS AND TECHNIQUES OF ANALYSIS

Tools for analysis

 Bar chart (Bar charts will be used for comparing two or more values that
will be taken over time or on different conditions, usually on small data set )
 Pie-chart (Circular chart divided in to sectors, illustrating relative
magnitudes or frequencies)

Tools and Techniques

As no study could be successfully completed without proper tools and techniques,

sames with my project. For the better presentation and right explanation I used
tools of statistics and computer very frequently. And I am very thankful to all those
tools for helping me a lot. Basic tools which I used for project from statistics are-

- Bar Charts

- Pie charts

- Tables

Bar charts and pie charts are really useful tools for every research to show the
result in a well clear, ease and simple way. Because I used bar charts and pie cahrts

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34
in project for showing data in a systematic way, so it need not necessary for any
observer to read all the theoretical detail, simple on seeing the charts any body
could know that what is being said.

.Technological Tools

 Ms- Excel
 Ms-Word

Above application software of Microsoft helped me a lot in making project more

interactive and productive.

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35
1.5 LIMITATION

 The time duration of this survey is short.

 The response from the respondents was fair enough but not up to the mark

or good enough.

 The sample size is very small compared to the total population of the

region.

 The study was conducted with the basic assumption that the information

given by the respondent is factual and represents their true feelings and

behavior.

 The method lacks flexibility. In case of inadequate or incomplete

information the result may deviate.

 It is very difficult to check the accuracy of the information provided.

 Since all the products and services are not widely used by all the customers

it is difficult to draw realistic conclusions based on the survey.

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36
 CHAPTER 2

ANALYSIS AND INTREPRETATION

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37
1. Table showing present type of residential ownership

Table No.1:

Type No. of Respondent Percentage

Ownership 18 36%

On Rental 22 44%

Others 10 20%

Total 50 100%

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38
GRAPH NO 2

Series 1
50
44
45
40 36
35
30
25
20 Series 1
20
15
10
5
0
Ownership On Rental Others

Interpretation: The above table shows that, maximum no. of respondents stays on
rental basis i.e.44%, 36% of the respondents have their ownership on residence and
20% of respondents are in others category, which include residence on lease or
staying at relative.

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39
2. Table showing areas preferred to purchase residential
apartments.

Table No.2:

Area No. of Respondent Percentage

Noida 15 30%

Greater Noida 25 50%

Ghaziabad 10 20%

Total 50 100%

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40
GraphNo.2:

Series 1
60

50
50

40

30
30
Series 1
20
20

10

0
Noida Greater Noida Ghaziabad

Interpretation: The above table shows that maximum no. of respondents i..e.50%
prefer Greater Noida area, whereas 20% of respondents prefer ghaziabad area,
while 30% of respondents preferred Noida .

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41
3. Table showing Factors taken into consideration while purchasing
Residential Apartments.

Table No.3:

Factors No. of Respondent Percentage

Location 28 28%

Price 39 39%

Transportation Facility 16 16%

Accessibility to Market 07 07%

Others 10 10%

Total 100 100%

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42
Graph No.3:

39%
40%
35%
28%
30%
25%
20% 16%
15% 10%
Series1
10% 7%

5%
0%

Interpretation:

The above table shows that maximum no. of respondents i.e. 39% consider Price,
whereas 28% consider location while 16% consider transportation facility whereas
10% consider other factors like Vastushastra, Water availability etc. and 07% of
respondents consider accessibility to market as important factor for purchasing
residential apartments.

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43
4. Table showing sources of Information for respondents
while Property purchasing.

Table No.4:

Sources No. of Respondent Percentage

Hoardings 6 13%

Newspapers 9 17%

Agents/ Consultants 16 33%

Relatives/Friends 14 28%

Others 5 09%

Total 50 100%

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44
Graph No.4:

33%
35%
28%
30%
25%
20% 17%
13%
15%
9%
10% Series1

5%
0%

Interpretation:

Above table shows that 33% of respondents get their information from Agents
/Consultants, where as 28% of respondents get information from Relatives/ Friends
while 17% of respondents get information from Newspapers whereas 13% of
respondents get information from Hoardings and 09% of respondents get their
information through Other Sources like Local News Channel, Radio, Internet etc.
for Purchasing Residential apartments.

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45
5. Table showing duration of the year when normally
respondents like to purchases residential properties.

Table No.5:

Month No. of Respondent Percentage

Jan to Apr 17 35%

May to Aug 7 13%

Sep to Dec 26 52%

Total 50 100%

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46
Graph No.5:

35%

52% Jan to Apr

May to Aug

13% Sep to Dec

Interpretation:

Above table shows that maximum no. of respondents i.e. 52% would prefer Sept to
Dec as the duration where as 35% respondents would prefer Jan to Apr while 13%
of respondents prefer May to Aug as the duration of the year where they would like
to purchase residential apartments.

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47
6. Table showing type of Residential property respondents
would like Purchase.

Table No.6:

Type No. of Respondent Percentage

1 BHK Flat 9 18%

2 BHK Flat 24 48%

3 BHK Flat 12 24%

Bunglow/Row House 2 04%

Others 3 06%

Total 50 100%

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48
Graph No.6:

48%
50%

45%

40%

35%

30%
24%
25% Series1
18%
20%

15%

10% 6%
4%
5%

0%
1 BHK Flat 2 BHK Flat 3 BHK Flat Bunglow/Row Others
House

Interpretation:

Above table shows that maximum no. of respondents that is 48% would like to
purchase 2 BHK Flat, whereas 24% respondents prefer 3 BHK Flat, while 18%
respondents prefer 1BHK Flat whereas 4% of respondents prefer Bungalow/Row
house and 06% respondents prefer others which include Duplex, Terrace Flat,
Attached Flat etc. for purchases of residential property.

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49
7. Table showing mode of purchases of residential
apartments preferred by respondents.

Table No.7:

Mode No. of Respondent Percentage

Home Loans 29 57%

Lum-sum 3 06%

Installments 16 33%

Others 2 04%

Total 50 100%

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50
Graph No.7:

57%
60%

50%

40% 33%

30% Series1

20%

10% 6%
4%

0%
Home Loans Lum-sum Installments Others

Interpretation: Above table shows that maximum no. of respondents i.e.57%

would prefer Home Loans whereas 33% of respondents would prefer Installments
while 06% of respondents would prefer Lum-sum and 04% of respondents prefer
Others.

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8. How was your experience using real estate industry?

Table 8
Option No. of Respondents Percentage
Poor 5 10%
Satisfactory 10 20%
Good 15 30%
Excellent 20 40%
Totals 50 100%

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52
GRAPH :8

Report
0

10

Poor
40 20 Satisfactory
Good
Excellent

30

Interpretation: From the above graph shows that Most of customer says excellent
for using real estate industry.

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53
9. Are you interested in purchasing prorpery?

Table No9
Option No. of Respondents Percentage
Yes 40 80%
No 10 20%
Totals 50 100%

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54
GRAPH NO 9 :

Report

20

Yes
No

80

Interpretation: From the above graph shows that Most of customer are interested
to purchase Property.

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55
FINDINGS
1. The above table shows that, maximum no. of respondents stays on rental
basis i.e.44%, 36% of the respondents have their ownership on residence and
20% of respondents are in others category, which include residence on lease
or staying at relative.
2. The above table shows that maximum no. of respondents i..e.50% prefer
Greater Noida area, whereas 20% of respondents prefer ghaziabad area,
while 30% of respondents preferred Noida .
3. The above table shows that maximum no. of respondents i.e. 39% consider
Price, whereas 28% consider location while 16% consider transportation
facility whereas 10% consider other factors like Vastushastra
4. Above table shows that 33% of respondents get their information from
Agents /Consultants, where as 28% of respondents get information from
Relatives/ Friends while 17% of respondents get information from
Newspapers whereas 13% of respondents get information from Hoardings
and 09% of respondents get their information through Other Sources like
Local News Channel, Radio, Internet etc. for Purchasing Residential
apartments.
5. Above table shows that maximum no. of respondents i.e. 52% would prefer
Sept to Dec as the duration where as 35% respondents would prefer Jan to
Apr while 13% of respondents prefer May to Aug as the duration of the year
where they would like to purchase residential apartments.
6. Above table shows that maximum no. of respondents that is 48% would like
to purchase 2 BHK Flat, whereas 24% respondents prefer 3 BHK Flat, while
18% respondents prefer 1BHK Flat whereas 4% of respondents prefer
Bungalow/Row house and 06% respondents prefer others which include

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56
 Duplex, Terrace Flat, Attached Flat etc. for purchases of residential
property.
7. Above table shows that maximum no. of respondents i.e.57% would prefer
Home Loans whereas 33% of respondents would prefer Installments while
06% of respondents would prefer Lum-sum and 04% of respondents prefer
Others.
8. From the above graph shows that Most of customer says excellent for using
real estate industry.
9. From the above graph shows that Most of customer are interested to
purchase Propery.

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 CHAPTER 3

CONCLUSIONS AND RECOMMENDATIONS

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58
 CONCLUSION

 It can be seen that Several Builders is most popular brand.

 Quality is considering lot while purchasing residential property.
 The Buyers consider Quality and price while purchasing the residential
property.
 The customer may change the Brand if the Particular brand is not available
and also because of close substitute.
 Price hike is also one of the reasons for change in brand.
 Adverting and other sales promotion tools have a great effect on sales of the
residential property.

LIMITATION

The time duration of this survey is short.

The response from the respondents was fair enough but not up to the mark or
good enough.

The sample size is very small compared to the total population of the region.
 The study was conducted with the basic assumption that the information
given by the respondent is factual and represents their true feelings and
behavior.

The method lacks flexibility. In case of inadequate or incomplete

information the result may deviate.

It is very difficult to check the accuracy of the information provided.

Since all the products and services are not widely used by all the customers
it is difficult to draw realistic conclusions based on the survey.

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59
 SUGGESTIONS

 Builders should try to tap other market potentials, such as Sonipat, Panipat
& 2nd tire cities.
 Builders should try to decrease Five star amenities with a view to cut down
the property prices and there by attracting the middle class.
 Builders should actively participate and organize property exhibition, trade
shows, hoardings, etc. to create awareness in the market.
 Builders should organize annual customer meet to appreciate those customer
who have been with them and awarded them.
 Builders should take mass media such as television more precisely cable
media to target local customers.
 Builders should also concentrate more on interior decoration to compete
with other competitors.
 Builders should reduce the maintenance charges.
 Builders should also concentrate on CRM activities, such as loyalty to create
strong good will and gain new customer.

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60
 REFERENCES/BIBLIOGRAPHY
Books:

 Philip Kotler, Kevin Keller (2009), Marketing Management (Thirteenth

Edition)
 Marketing Management, The McGraw.Hill Company Rajan Saxena (Third
Edition)
 Brassington, F and Pettitt, S, (2000), Principles of Marketing, Second
Edition, Prentice Hall, Harlow
 Brooks, I and Weatherston, J. (1997) The Business Environment. Challenges
and Changes, Prentice Hall.

Webliography Referred :

 https://certifedpmp.wordpress.com/2008/09/17/risk-analysis-techniques/
 https://www.investopedia.com/exam-guide/cfa-level-1/corporate-
finance/risk-analysis-techniques.asp
 https://businessjargons.com/risk-analysis-techniques.html
 https://www.techopedia.com/definition/16522/risk-analysis
 https://en.wikipedia.org/wiki/Real_estate
 https://www.99acres.com/Delhi-Real-Estate.htm
 https://www.magicbricks.com/property-for-sale-rent-in-New-
Delhi/residential-real-estate-New-Delhi

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 QUESTIONNAIRE

Personal Details

NAME ……………………………………………………………………

OCCUPATION …………………………………………………………………….

GENDER ……………………………………………………………………..

FAMILY SIZE ……………………………………………………………………...

CONTACT ………………………………………………………………………

E-MAIL ………………………………………………………………………

NO. OF EARNING MEMBERS

……………………………………………………………………………………….

ANNUAL INCOME:
……………………………………………………………………………………….

1. What is your present type of property?

2. In which area would you prefer to purchase residential apartments?

Why?

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3. Which factor do you take in to consideration while purchasing residential
apartments? (Choose any one)

4. Plz. Indicate the source of information that you consider for property
purchasing?

5. Are you aware of various schemes offered by industry?

If yes what is your opinion,

6. During which duration of the year normally would you like to purchase
residential apartments?

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7. What type of residential property you would like to purchases?

8. What will be your mode of purchase of residential property?

9. How was your experience using real estate industry?

a) Poor
b) Satisfactory
c) Good
d) Excellent

10. Are you interested in purchasing any other property?

a) Yes
b) No

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