Decision-Making of People When They Consider Accommodations - Assignment Example

Major Decision Making: Individual Report Table of Contents Executive summary …………………………….. 3 Introduction ………………………………………. 4 Decisions matrix………………………………….. 4 Analysis …………………………………………… 9 Conclusion………………………………………… 13 References……………………………………….. 16 Executive summary This paper analyze the decision making of people when they consider accommodation s. make many decisions in our everyday lives; some are small and relatively unimportant (such as “should I buy that chocolate bar?”) while others are major, with a more profound impact on our lives (“should I buy that house?” “Should I get a master’s degree?”). The paper will consist of two decision making matrix which shows the ranking of preferences of the respondents. Then it will also analyze the preferences and characteristics of the respondents. Introduction Decision making is an important part of daily life. The length of time or effort that is allocated to the decision process will be affected by the type of decision involved, that is, whether it is a habitual, limited or extended decision making purchase problem. The decisions are also impacted by a variety of internal influences (e.g., perception, learning, and motivation) and external influences (e.g., family and culture). Marketers need to look at all of these influences on consumer decision making. Especially when people tend to shift into new house weather it is for rent or they want to purchase it requires in-depth decision making. Decision Matrix J Hooker - Kangaroo Point 39 Lytton Road East Brisbane, Qld 4169 Rent: $395 / Wk Two level townhouse with two beds and two bath Located off the main road but close enough to all public transport routes, shops and amenities. Small pets may be considered on application. Indoor Features Dishwasher Air Condition 13 Brighton Rd Highgate Hill, Qld 4101 Stunning 3 Level Terrace House Rent: $650/wk Property Type: Townhouse Bedrooms: 3 Bathrooms: 2 Allowances Pet Friendly Indoor Features Built-in Wardrobes Dishwasher Air Conditioning It is just a short walk to the popular West End restaurant precinct which features some of Brisbane’s favorite restaurants, and also close to the ever popular South Bank Precinct. Given its proximity to the CBD, this home really has it all, with easy access to retail, schools, universities, restaurants, entertainment and almost anything else you could need! 3. 5/58 York Parade, Spring Hill, Qld 4000 130 Vulture Street South Brisbane, Qld 4101 Rent: $500/wk General Features Property Type: Townhouse Bedrooms:2 Bathrooms:2 Easy leisurely walk to city Share Accommodation at 40 Robertson Pl, Fig Tree Pocket 3 Spacious rooms Access to convenient bus service & easy access to Ipswich or City, Indooroopilly,Toowong, Milton via Western Fwy which is only 3 min away, bike ways to St Lucia. 10km to CBD. Ample off street parking. Rent $155/week unfurnished…..but we can furnish if needed. Balcony Room $160/week. Available Now. Other rooms $155/week The deal 40 Robertson Pl Available: 15/01/2012 Rent $155 pw. Bond: $620 Min stay: 6 Months Max stay: 1 Year The room Size: Large Furnishing: Unfurnished Very spacious, built in with abundant shelving carpet, Can furnish room if required Prefer Non-smoker Quiet No kids Straight No pet Professional 26-34 Room For Rent In Toowong, big house close to everything Croydon st Available: 04/01/2012 Rent $105 pw. Bond: $420 Min stay: 6 Months Max stay: No Limit Contact: Lydie The room Size: Small Furnishing: Some, no bed one small bedroom built-in wardrobe ($105) Prefer Female Smoke outside only Social No kids No pet 26-34 Close to everything, train, bus and ferry to UQ/QUT/city, and toowong village 10min walk Address: Moggill Road Suburb: Indooroopilly, West Rent: $390 per Month(s), $90 per Week Preferred room and flatmate description Big, beautiful Queenslander perched on a hill in Indooroopilly, close to Indooroopilly shops and buses to UQ. WHAT: One small bedroom available for $90 a week. Quiet room at the back of the house, with beautiful, stain-glass windows and door that opens onto the verandah. WHO: Looking for easy-going student / young professional. Must be clean, considerate. Social, with a sense of humor preferred. Please no smokers. Please no couples, you simply won't fit. INCLUDED (optional): standing wardrobe (see pictures), desk and a single bed can be acquired. Call , phone/text only; no emails. Lost of accommodation preferences: Rent or price Location (distance from the university/workplace, accessibility to public transportation) Security Roommate’s age , gender ect. size of room or house Analysis It is important to analyze the reasons behind the selection of a certain accommodation and why that accommodation is preferable for a certain person. The entries lection is based on decision making process (Ross 1994). It may be noted that all three respondents followed what may have used an extended decision making purchases tend to take longer making decisions and it may be noted that their decision making was done quite carefully . it may also be noted that the prospect theory may be applied here as all respondents evaluate the option then make decisions to rent the accommodation . In the first phase, decision makers are predicted to edit a complicated decision into a simpler decision, usually specified in terms of gains versus losses (Kahneman & Tversky 1979). And in the second phase the respondents choose the best option from those which they selected (DeBruin Parker & Fischhoff 2007). Location Two from three of the respondents marked location as the second most important factor while selecting a home. It is due to the fact that when they go house hunting, they consider any potential home's proximity their office , the attraction of the area, how close they are hospitals , no difficulty in reaching close important locations , noise from neighbors, traffic, or pets, and where there a lot of , shopping, schools, and public transportation. This may be due to the fact that all three respondents were working and one even had a 10 year old daughter and a house wife so naturally he would consider such an option as it would be easier for his family as well. Here again preferences are weighed due to experience and preferences (Weber, Baron, Loomes 2001) Demographic Factors Of Room Mate Demographics of the room mate is another important factor . As one must be careful who he/she is lodging with . especially if he /she is a complete stranger. The age , gender, caste ect. are important factors to consider while considering renting a house. Two respondents were singles and both considered this to be the most important factor and one of the respondents even ranked it as the top priority. While the other considered as the third most important one. This is due to the fact that a bad room mate may lead to many adjustment issues as well as may lead to other things like other bad company coming and visiting the room mate or even may lead to criminal activities staking place in the lodging. So , it is quite true that one must be careful about the selection of roommate as well when considering renting a house. Security Security is something also quite important while considering renting or buying an accommodation. If the neighborhood is one while the crime rate is high then it is useless to rent or buy a house in that area as it may lead to a lot of dangerous incidents. Mostly people with families and females consider this an extremely important factor while selecting a home. Thus here it may be noted that extended decision making has taken place as all the options were considered first . (March 1994) Here it may be noted that respondent with family ranked security as the first factor which he considered important while selecting an accommodation for his family ad himself . as if he selected an unsafe neighborhood it may lead to endangering his daughter and wife. Only one respondent considered it as the second important one. This may be due to the fact that at times secure and safe neighborhoods have high rent and thus affordability is at times quite difficulty . however females and family men as noted in the responses by the respondents is quite an important factor. Consider a Home's Curb Appeal Some even want to reflect their lifestyle. At times like this they do not want a might not want a formal Victorian or Tudor style home. They require a simpler and more contemporary kind of place to stay. Something like a brick home a s it is easier to maintain, however family men consider the fact if it is a earthquake-prone area or not they even consider Is the roof in good condition? And if the landscaping attractive and are the sidewalks leading to the home safe? . Size and Floor Plan The size of the room of the house which is rented may be of least importance to a lot of people. However it is considered as an important factor when there are lot of people n sharing it . the floor plan gives an idea as to the construction of the house and the flaws it has. However all three respondents considered it as least important . this may be due the fact that the family man value security more then size and other two valued the location and security more. Size in many cases does not play an important role where people are security and price conscious . these two factors tend to hinder in decision making when it comes to this factor. Decision making is process where people usually rely on personal past experiences as well as past experiences of others (Snowden & Boone 2007)and so due to this they may consider security and location to be an more important factor as compared to size of the house. Decision making in which preference are at the lowest priority usually mean that the decision maker has done a lot of research before considering his preferences. (Payne, Bettman, & Johnson 1993) Price comparison and other requirements: price is another factor while considering buying a house or renting an accommodation. One always has to consider accommodation which fits the budget and needs both at the same time. An individual may find a secure house in a good location but it could be way above his/her budget . thus, one has to make a decision according to the price and ones own affordability. Here it may be noted the both prospective theory and limited decision making as the customer weighs the risk and then makes the decisions (Hastie & Dawes 1993) . it may even be due to past experiences. (Plous 1994). In this the family man ranked price as distance from the university/workplace, accessibility to public transportation while , one marked it as the second most important factor and the respondent marked it as the third most important factor as well. This maybe due to the fact the family man had a good job and consider the security of his family first while the other two were singles and one did not have a good job and was on a low wage salary so he considered it to be the second most important factor. While both people who marked it as the third most important factor was because they had no problem in affordability. Conclusion Thus, by the above analysis it may be noted that people tend to make decisions on what kind of accommodation select by their past experiences and well as the experiences of others especially if they are going to reside in a place which is completely new to them. Their decisions most revolve around their needs and affordability. As note three respondents considered their pockets and status before they selected a factor which was important to them. Decision making is any area requires a lot of analysis , especially it is about renting or purchasing an accommodation. The analysis also shows that the decision making process of a family a male and single is quite different while the decision making of a single female and male is also quite different. This may point towards the fact even selection of accommodation is quite a complex process when considered under the area of decision making. The fact that decision making its’ self is an complex process which goes through different stages (Senior, Russell & Gazzaniga 2000) , the selection of accommodation makes its even a more complicated process because while selecting a lodging people are quite careful as they may not be able to shift frequently. References Snowden, D.J. and Boone, M.E. (2007) ‘A leader’s framework for decision making’, Harvard Business Review, 85(11), pp. 68-76. Ross, R. B. (1994). Skillful discussions. Protocols for reaching a decision - mindfully. Senge, P. M., Kleiner, A., Roberts, C., Ross, R. B., and Smith, B. J. The fifth discipline fieldbook. Strategies and tools for building a learning organization. 385-398. New York, Doubleday. March, J. G. (1994) A Primer on Decision Making, The Free Press, New York Payne, J. W., Bettman, J. R., & Johnson, E. J. (1993) The adaptive decision maker, Cambridge University Press (Cambridge, UK) Plous, Scott (1993) The psychology of judgment and decision making, McGraw Hill, New York Weber, E. U., Baron, J., Loomes, G. (Eds.) (2001) Conflict and Tradeoffs in Decision Making, Cambridge University Press, Cambridge (UK) Hastie, R., & Dawes, R.M. (2001). Rational choice in an uncertain world. Thousand Oaks, CA: Sage Publications. Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47, 263–291. Senior, C., Russell, T., & Gazzaniga, M. (2000.). Methods in mind: The study of human cognition. MIT Press: Cambridge, MA. DeBruin, W.B., Parker, A.M., & Fischhoff, B. (2007). Individual differences in adult decision-making competence. Journal of Personality & Social Psychology, 92, 938–956 Read More