The paper "How External Factors Influence People Decision in the Property Market" is a great example of marketing coursework. Consumers live in a complex environment. Consumer decision making process behavior is influenced by internal and external factors. There is few if any investment decision that can have a massive impact on consumer’ s financial well-being as buying a house. For many people who are in a position to purchase a house, it is likely to be the largest single financial investment they ever make in their lifetime. There are a number of external factors that can influence a person purchasing decision on the house.
In this paper, different external factors such as social class, culture, family, situation, and personal influence will be discussed on how they influence people decision in the property market. Introduction At the time of purchasing a house, a consumer may be confronted with some external factors that involve our own culture, sub-culture, the family, social class, groups etc. These association of persons are known as external factors because their sources of influence usually occur from exterior to a person in spite of his internal factors- such as attitude, personal needs and motivations etc Personal Needs & Motives etc.
External factors are sometimes known as socio-cultural factors or influences, as these factors grow from personal formal and informal relationships with his family, friends, other individuals. Understanding of these external factors is essential to affect consumers purchasing decisions. Culture “ Bandwagon effect” or culture trend can be defined as a trend that is widely followed by individuals and which are amplified by conformity and mere popularity or compliance with social pressure (Zeithaml, 2000). The more people follow a certain trend, the more other persons would want to follow the same trend.
Culture as an external factor affects shopping habits and behavior of consumers and may be related to the release of a new product in the market or become a source of innovations for other brands (Doiron, 2012). By social pressure, desire to belong or conformity to a group, desire to “ follow the trend in the market” , consumers will be influenced, unconsciously or consciously by these trends (Doiron, 2012). For example, Twitter and Facebook have become a cultural trend, nowadays these social sites are becoming a must-have, especially among the youths.
It is the same as the growth of the tablets markets (Zeithaml, 2000). Tablets such as the Galaxy Tab or iPad have become a global cultural trend that is a must for youths to have one. A person’ s attitudes, values, opinions and beliefs are shaped with is culture (Kaufmann, 2003). This in turn also form a person’ s attitude toward buying a house. Culture of a person will also gratify his emotional needs and due to this, a person will try to protect his or her cultural beliefs and values (Kaufmann, 2003).
Cultural protection will be reflected in a person’ s behavior as a consumer. Culture represents the beliefs, behavior and, in many cases, the way people act learned by observing or interacting with other members of society. In this way, much of what other people in society do is shared behavior, passed along from one person in society to the next one (Lilley, 2004). For instance, borrowing funds to buy a house among non-indigenous Australians is regarded as the most important financial commitment many people would make in their lifetime (Hughes, 2007).
Most non-indigenous Australians who borrowed to purchase houses are seen to have a sense of economic wellbeing as long repayments are met. Research has shown that this feeling of economic wellbeing contributes to social wellbeing among non-indigenous people.
Aaronson, D 2000, A Note on the Benefits of Home–ownership, Journal of Urban Economics 47
Allen, B.L 2002, Race and Gender Inequality in Homeownership: Does Place Make a
Difference? Rural Sociology 67(4) pp. 603-621.
Doiron, D 2012, Income inequality: a review of recent trends and issues, Academy
Proceedings, Issue 2/2012, Academy of Social Sciences in Australia, Canberra.
Edwards, J 2006, Quiet Boom: How the Long Economic Upswing Is Changing Australia
and Its Place in the World, Lowy Institute for International Policy, Sydney.
Hughes, H., 2007, Lands of Shame, The Centre for Independent Studies Ltd, Sydney
Kaufmann, P., 2003, Diversity and Indigenous Policy Outcomes: comparisons between
four nations, Third International Conference on Diversity in Organisations, Communities
Lilley, S., 2004, Vulnerable migrant groups – a housing perspective, Housing New
Shew, W. & Stelzer, I., 2004, External Benefits of Home Ownership, Hudson Institute
Syed, A. (2003). Digital divide and purchase intention: Why demographic psychology matters.
Journal of Economic Psychology, 24(3), 321-327.
Mullins, P., Western, J. & Broadbent, B., 2001, The links between housing and nine key
socio-cultural factors, Australian Housing and Urban Research Institute, Queensland
Quercia, R.G., McCarthy, G.W., and Wachter, S. M 2003, The Impacts
of Affordable Lending Efforts on Homeownership Rates, Journal of Housing Economics
12(1) pp. 29-59.
Zeithaml, V.A. (2000). “The New Demographics and Market Segmentation,” Journal of