Downloaded 23 times
![PLAYERS PRE
2000
2001 - 2010 2011
ONWARDS
CHANGING SCENERIO
AGENTS ,
EASTATE
AGENTS ,
BROKERS ,
CONSULTANTS
LOW
ETHICS
BETTER
ETHICS
PROFESSIO
NAL
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 based
From suburb based to corporate broking house/ MNC/
From dingy shops to website operated….
CUSTOMER
S
UNP
ROFE
SSIO
NAL
PROFESSI
ONAL
HIGHLY
PROFESSIO
NAL
Willing to use professionals [brokers/ agents/ consultants / ]
Willing to pay , but highly demanding service levels
Good homework.
Ability to zero in ‘ as per specs’ property.
Well informed.
Well educated
Has access to Google / Yahoo / property portals /
Access to research reports
DEVELOPERS LOW
ETHICS
PROFESSION
AL
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; MNC
From secrecy shrouded to transparent (heavy closed cabins to open office)
IMPACT OF GLOBALISATION
27 December, 2014
CUSTOMER CARE - IREF
PROF. SURESH MALKANI
8](https://image.slidesharecdn.com/customerfocusiref-141227040911-conversion-gate02/75/Customer-focus-iref-7-2048.jpg)
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- 1. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 1 Vakaratunda, Mahakaya , Surya Koti Samprabha Nirvighnam kuru me dev, Sarva Karyeshu Sarvada
- 2. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 2 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?
- 3. CUSTOMER CARE INREAL ESTATE 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 3
- 4. Real Estate valuechain 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 4
- 5. YESTERDAY…TODAY…TOMORROW 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 5 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
- 6. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 6 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 arranged mainly from pre-selling of the units Multiple sources of funding – Debt, PE, VC, Fully organized industry Limited purview of the government Enjoys strong attention of the central as well as state government Well placed industry standards Quality of construction average Remarkable improvement in the quality and designs of construction Industry regulator in place to control the sector Lack of transparency Improvement in the transparency level FDI allowed in across real estate avenues Emergence of well-defined REITS/REMFs THE REAL ESTTE SECTOR’S
- 7. PLAYERS PRE 2000 2001 -2010 2011 ONWARDS CHANGING SCENERIO AGENTS , EASTATE AGENTS , BROKERS , CONSULTANTS LOW ETHICS BETTER ETHICS PROFESSIO NAL 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 based From suburb based to corporate broking house/ MNC/ From dingy shops to website operated…. CUSTOMER S UNP ROFE SSIO NAL PROFESSI ONAL HIGHLY PROFESSIO NAL Willing to use professionals [brokers/ agents/ consultants / ] Willing to pay , but highly demanding service levels Good homework. Ability to zero in ‘ as per specs’ property. Well informed. Well educated Has access to Google / Yahoo / property portals / Access to research reports DEVELOPERS LOW ETHICS PROFESSION AL 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; MNC From secrecy shrouded to transparent (heavy closed cabins to open office) IMPACT OF GLOBALISATION 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 8
- 8. PLAYERS IN REALESTATE – IMPACT OF GLOBALISATION ON BROKING COMMUNITY 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 9 PLAYERS PRE 2000 2001 - 2010 2011 ONW ARDS EARLIER SCENERIO (FROM) CHANGED SCENERIO (TO ) AGENTS , EASTATE AGENTS , BROKERS , CONSULTANTS LOW ETHICS BETTER ETHICS PROFESS IONAL One man show. Pocket book. From cash. From ‘chitti’ From ‘ chappal’ and ‘paan’ From night bar gossips Showing customer ‘ just – idhar – just adha ek km From suburb based From 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 based corporate broking house/ MNC/ website operated….
- 9. PLAYERS IN REALESTATE – IMPACT OF GLOBALISATION ON DEVELOPERS 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 10 PLAYERS PRE 2000 2001 - 2010 2011 ON WAR DS EARLIER SCENERIO (FROM) CHANGED SCENERIO (TO ) DEVELOPERS LOW ETHICS PROFESSIO NAL GOOD ETHICS sly irregular one 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; MNC transparent (heavy closed cabins to open office)
- 10. Category 1970–1979 1980–19891990–1999 2000–2009 2010–2019 Geography Local Regional National Global Without Bo Competition Many Competitors Some Competitors Few Competitors Strategic Competitors New Compe Business Strategy Focus On Location Focus On Design Focus On Operations Focus On Customers Focus On Cu Customers Goals Market-Driven Capital-Driven Performance- Driven Relationship- Driven Knowledge- Market Dynamics Fighting Over Sites Fighting Over Money Fighting Over Marketshare Fighting Over Talent Fighting Ove Share Operational Focus Collecting Reputation Collecting Assets Collecting Competitors Collecting Clients Collecting R Leadership Personality- Based Functionally- Based Service-Based Solutions-Based Strategy-Ba Organization Few Teams Appearance Teams Necessity Teams Reoccurring Teams Virtual Team Brokerage A Representative A Broker A Specialist An Advisor A Confida Founder An Entrepreneur An Executive A Leader A Coach A Collabora 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 Fr Globalizati Generation New Urban Greening Tommorow never comes ! 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 11
- 11. Customer Criteria forSelecting a 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 13
- 12. Ten key determinantsof 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 14
- 13. Ten key determinantsof 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 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 15
- 14. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 16 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
- 15. Relative Importance ofService Dimensions When Respondents Allocate 100 Points Reliability 32% Tangibles 11% Assurance 19% Empathy 16% Responsiveness 22% Tangibles Reliability Responsiveness Assurance Empathy 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 17
- 16. CUSTOMER AND YOU 27December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 18 (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 ?
- 17. What Investors/customers ValueMost in Their Broker 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 19 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.
- 18. What Tenants ValueMost in Their Broker/Service Provider 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 20 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.
- 19. What Clients ValueMost When Selecting Their Broker 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 21 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.
- 20. What Frustrates BrokerageClients 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 22 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.
- 21. Define Your Customers 27December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 23 • 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 existing customer relationships
- 22. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 24 “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
- 23. Definition of ConsumerBehavior • …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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 25
- 24. DEMAND GROWTH –EFFECTOF 3 A’s 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 26 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
- 25. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 27 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
- 26. Consumer Decision-Making Process Post purchase Behavior Purchase Evaluation ofAlternatives Information Search Need Recognition Cultural, Social, Individual and Psychological Factors affect all steps 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 28
- 27. 7 P’s forpurchasing a flat • Pawan • Pani • Patta • Prakash • Paisa • Paros • Parking • Parikrama Some of these are NEEDS, Others WANTS 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 30
- 28. 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 31
- 29. Need Recognition (awarenessof 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 32
- 30. NEEDS AND WANTS 27December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 33 Needs are based on Logic Price, Quality, Company, Standards, Delivery, Service. Wants are based on Emotion Prestige, 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.
- 31. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 34 EXTERNAL ENVIRONMENT INDIVIDUAL DETERMINANTS SOCIALCLASSINFLUENCES FAMILY INFLUENCES OTHERIFLUENCES PERSONALITY &SELF -CONCEPT PROBLEMR DECESION PROCESS PROBLEM RECOGNITION INFO SEARCH & EVALUATION PURCHASING PROCESS POST PURCHASE BEHAVIOR
- 32. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 45 Difficult to evaluate service Product attributes affecting evaluation Intangibility of service performance Variability Quality control problems
- 33. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 46 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
- 34. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 52 DIMENSIONS OF SERVICE QUALITY Access Credibility Knowledge Reliability Security Competence Communication Courtesy Responsiveness Tangibles DETERMINANTS OF PERCEIVED QUALITY WoM PERSONAL NEEDS PAST EXPERIENCE PERCEIVED SERVICE QUALITY EXPECTED SERVICE PERCEIVED SERVICE SERVICE QUALITY GAPS
- 35. Major tasks ofany 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 61
- 36. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 62
- 37. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 63
- 38. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 64
- 39. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 65
- 40. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 66
- 41. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 67
- 42. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 68
- 43. 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 71
- 44. Complete model ofconsumer 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 72
- 45. Motivation & NeedRecognition 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 73
- 46. motivation Internal and externalfactors 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 74
- 47. What activates aneed ? • Time • Changed circumstances • Property acquisition • Property composition • Individual differences - customised • Marketing influences 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 75
- 48. Information search • Propertybuyers 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 77
- 49. The information searchstage 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 78
- 50. Determinants of ExternalSearch 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 79
- 51. Internal determinants ofbuyer • Motivation • Perception • Knowledge and learning • Attitudes • Self – concept • Personality • Lifestyle 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 80
- 52. Internal determinants ofbuyer - 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 81
- 53. Internal determinants ofbuyer - 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 82
- 54. Internal determinants ofbuyer – 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 attitudes Thus, real estate marketers may encounter difficulty in communicating with potential buyers and tenants until the buyer has recognized a need for a move. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 83
- 55. Internal determinants ofbuyer - 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 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 84
- 56. Internal determinants ofbuyer – 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 85
- 57. Internal determinants ofbuyer - 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 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 86
- 58. Internal determinants ofbuyer - 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 87
- 59. External determinants ofbuyer • Reference groups • Culture • Subculture • Social class • Family 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 88
- 60. External determinants ofbuyer- 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 89
- 61. External determinants ofbuyer- 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 90
- 62. External determinants ofbuyer - 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. 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 91
- 63. External determinants ofbuyer – 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 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 92
- 64. External determinants ofbuyer - 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, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 93
- 65. 27 December, 2014 CUSTOMERCARE - IREF PROF. SURESH MALKANI 94 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
- 66. Post purchase Behavior Canminimize through: Effective Communication Follow-up Guarantees Warranties Under promise & over deliver Cognitive Dissonance ?Did I make a good decision? Did I buy the right product? Did I get a good value? 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 96
- 68. •Real estate hasbeen 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 27 December, 2014 CUSTOMER CARE - IREF PROF. SURESH MALKANI 107