Property market is a subsector of existent economic system. It ever reflects the province of the economic system with fluctuations in its monetary values. It is ever of a premier involvement for the economic experts, man of affairs and consumers. The UK belongings market is perceived to be one of the most mature and sophisticated in the universe offering a much better pick of rental constructions and compacts than its international challengers. Its impact on the UK economic system is disproportionally big compared to other states ( Baum 2000, p.xi ) . In 2006 a record of ?69 billion of abroad money was invested into UK belongings ( ?49 billion in 2005 ) ( Clift & A ; O’Connel 2007 ) . London staying the chief market, pulling ?6.9 billion a twelvemonth and is one of the most of import existent estate markets in the universe ( Clift & A ; O’Connel 2007 ) .
By definition “ Real Estate is the modern term for land and anything that is for good affixed to it. Fixtures include edifices, fencings, and things attached to edifices, such as plumbing, warming, and light fixtures. Property that is non affixed is regarded as Personal Property. For illustration, furniture and curtains are points of personal belongings ” ( GLA Economics 2003 ) . There are different types of existent estates, such as commercial, residential and industrial. In this work the research will be conducted in Residential Sector of Property Market in Central London. London ‘s belongings market is really complex and alone, it encounters for over three million homes ( GLA Economics 2003 ) . There are different types of belongingss such as flats, houses, bungalows etc. The ownership varies every bit good, there are assorted types of lodging term of office – proprietor tenancy ( when proprietors live in the belongings ) , occupancy ( chiefly a feature for London ‘s belongings proprietors merely, intending the limited clip of ownership ) , lodging co-op, public lodging etc. London ‘s belongings market has ever been claimed to be the most “ expensive residences in the World ” . However, recent economic alterations brought a batch of alterations to the Property market, what considered being solid and unchangeable has become really rickety and unsure. The economic downswing touched belongings market badly. In this economic status directors have to able to react rapidly and efficaciously to these unpredictable conditions in order to emerge from downswing. Selling schemes will hold to be adjusted and tailored consequently in order to prolong client bases that become valuable as ne’er before. Sellers have to understand consumers ‘ behaviour and what influences their determination. Therefore, consumer behaviour towards belongings market has become really topical late and requires further and more elaborate probe. It ‘s become much more hard to sell belongingss at their premium monetary values. For illustration, harmonizing to Knight Frank ‘s gross revenues agent in Central London, before the recession it took him to demo the belongings 4 times before it was sold ; now it takes at least 12 screenings before it will be sold ( Evening Standards, June 2010 ) . Property developers have to alter their schemes and seek to better understand their clients ‘ demands and wants. In the past few old ages during the economic downswing – a batch of belongings developers have gone insolvents ; others have become stronger with surging gross revenues and increasing figure of clients. Is it anything to make with their repute and name? Is there a connexion between developers trade name and purchasers determination? The inquiry of branding in belongings selling schemes has become really topical. This research will analyse residential belongings market from the point of position of one of the largest cardinal London belongings development house Manhattan Loft Corporation, Ltd. The chief research aim is to happen out how trade name name of the belongings developer affects Central London belongings consumers ‘ behaviour when they are doing determination on which belongings to purchase. From the other side the purpose of the research is to happen out the importance of branding for belongings developer in Central London. The importance of clients ‘ trueness for the developer will be investigated every bit good. It is of import to observe, that belongings is non a standard good and one of the most expensive purchases in peoples ‘ lives. It is seen as a necessary good, emotional every bit good as a fiscal investing. It will reflect societal behaviour, gustatory sensation, and income of the buyer. Housing markets are closely connected to the fiscal markets ( rates of involvement ) . Besides, unlike any other goods on the market, house monetary values are negotiable. Since house is both a good and an plus and provides the most of import services in people ‘s lives, the alteration in monetary value will greatly impact the overall degree of life. All this features of the lodging market in London have shown us how complex and of import selling determination will be for the developers.
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Recession of twelvemonth 2007-2009 is likely the worst recession the UK has been through for the last 60 old ages. This state has seen The Great Depression ( 1919-19210, Middle recession ( 1970 ‘ ) , Early 1980 ‘s recession, Early 1990 ‘s recession. And now, we ‘re easy emerging from the latest and the worst recession so far. Since lodging market is straight connected with the overall economic clime, it has ever been profoundly hurt by the recessions.
1.2 Historical background of belongings market in the UK and London and the economic system recession.
London is one of the oldest trading centres in the World and it has been one for over 2000 old ages. From the Romans times until now it has increased from one stat mi in length and half a stat mi in comprehensiveness to six hundred and seven square stat mis. Its population is about eight million and predicted to lift to eight million by 2018 ( Flushing Standard, 27.05.10 ) . Therefore, a inquiry of lodging is of premier importance in London. Historically, London ‘s lodging market was characterized by steady growing in monetary value, demand and supply side. Over the last 50 old ages, the monetary values in Central London have risen by every bit high as 273 % since 1959 ( hypertext transfer protocol: //www.nationwide.co.uk/hpi/historical.htm ) . Looking at the Figure1 one can see the overall increasing tendency in UK lodging market over the past 60 old ages. There was a steady addition in UK house monetary values between 1995 and 19970. From 1970 boulder clay 1990 the monetary values rose by 217 % . The first diminution since 1995 was seen in 1990 and continued for the following six old ages. Merely in 1996 the monetary values started easy rise back hitting the maximal figure of ?183,959 in 2007. Since that twelvemonth the monetary value has ne’er got back to this high. Through 2008 the monetary values were falling aggressively hitting it bottom grade of 149 thousand lbs in the beginning of 2009. Merely by the terminal of the twelvemonth the market started to retrieve but today it is still lower than its highest grade in 2007.
Figure1. UK House Nominal and Real Monetary values Based on Nationwide information 1995 – 2010. Beginning: hypertext transfer protocol: //www.nationwide.co.uk/hpi/historical.htm
The above figures provide yet another proves of the recession times the UK went through over the old ages. The house monetary values is one of the most influenced class in the state ‘s economic system when it comes to economical downswing or roar. Entirely with stock market house market is one of the chief assets in the investing portfolios. Since London has ever been an attractive location for the investors, its belongings market non merely depends on the legal residence consumers and the economic state of affairs within the state, but besides on abroad purchasers and planetary economic system. In times it can be instead good. Therefore, in today ‘s economic downswing and weak national currency, London is a really attractive location for foreign purchasers which allow lodging market to retrieve much quicker than in the remainder of the state. London ‘s house monetary values have ever been on the top of the overall UK ‘s monetary value index.
Figure2. UK Real House Price and London Average House Price, 1995-2010 ( beginning: Land Registry and Nationwide web sites, twelvemonth 1995-2010 )
Looking at the Figure2, a dramatic difference can be seen between the UK and London ‘s monetary value index. Even in the flourishing old ages between 2005 and 2007, when monetary values in the UK increased merely by 10 % , monetary values in London at the same clip rose by 30 % !
Analyzing all the above figures, it is non possible to detect that the lessening in the monetary values accrued at the times of the economic downswing the UK went through in past. All this information presumes that current recession has affected belongings market.
Research by LCP ( one of the UK ‘s largest private proprietors of industrial and retail belongings ) 2010, showed monetary values in cardinal London has doubled on mean every eight old ages since 1969. The last clip they doubled was from 2000 to March 2008 when mean monetary values in Westminster and Kensington and Chelsea rose from around ?500,000 to ?1 million, harmonizing to Land Registry figures ( the Evening Standard, London, 23 December 2009 ) .
Harmonizing to Knight Frank study 2010, gross revenues in 2009 has eventually revived, particularly in freshly built sector. Figure 3 shows that the concluding one-fourth of 2009 was 214 % higher than it was at the same clip in 2008 and 68 % in growing in the whole London Market.
Figure3. Greater London quarterly gross revenues volumes split by type ( Beginning: Knight Frank, Molior, Land Registry, 2008-2009 )
The Knight Frank study of 2010 besides revealed that “ we ‘ve merely endured the worst recession in 70 old ages and a lodging downswing every bit terrible as that of 1990s, nevertheless, demand and even monetary values are already lifting once more… traditional selling accomplishments are being rediscovered as demand for new-build merchandise displacements from investors towards owner-occupiers. ” ( hypertext transfer protocol: //www.knightfrank.co.uk/ )
1.3 Research Objectives and Questions
1.3.1 Scope of analysis
This undertaking will be applied merely in Central London.
This undertaking will supply the reader with an apprehension of the importance of trade name name in belongings market in Central London.
A instance survey of Manhattan Loft Corporation ( belongings developer in London ) will be used for this research.
To analyze the importance of trade name name for the belongings developer in Central London and its influence on the success of the company.
To analyze Manhattan Loft clients ‘ buying behavior in Central London before and during economic downswing
To analyze the consequence of corporate stigmatization on consumer buying determination when purchasing belongings in Central London
Investigate the grade of importance of the trade name name for the belongings developer in Central London?
How belongings developer ‘s trade name name influence the determination of a belongings purchaser in Central London?
How belongings developers raise clients ‘ trade name consciousness?
How belongings developers increase clients trade name trueness?
The methodological analysis used for this undertaking is a combination of secondary and primary informations. Secondary informations includes informations from different beginnings, such as diaries, magazines, selling books, web sites, newspapers, belongings market studies. Primary information is sourced from in depth interviews with members of senior direction squad employed by Manhattan Loft Corporation and their clients every bit good as estate agents in Central London. Cross-comparison analysis between these two group were conducted in order to reply the research inquiry.
Manhattan Loft Corporation ( MLC )
Manhattan Loft Corporation was founded in 1992 and operates as belongings developer in London. It is one of the most successful London developers at nowadays. MLC is really good established name in the belongings market in London. It is known for its advanced manner of change overing urban infinite into broad flat with no other one alike. 18 old ages ago MLC has changed the manner Londoners were purchasing houses – in footings of figure of sleeping rooms. They introduced new manner of believing about the life infinite – square metres.
“ The footing for our success has been the sturdy committedness to quality that all our associates and staff have in common. We strive to keep our criterions and to go on to maintain our metropolitan border ” Harry Handelsman, Chief Executive.
Chapter II – Literature Reappraisal
The purpose of this chapter is to place theoretical penetrations into consumer behavior and branding construct in belongings market.
In this Chapter we will look at the theoretical theoretical accounts that already be on the topic of consumer behavior and stigmatization in general. The purpose of the literature reappraisal is to happen out consumer behavior towards belongings and to place what influences their buying determinations of this extremely involved merchandise. In order to happen out how stigmatization is impacting belongings purchasers ‘ determination and its importance for the developer we will look at the definition of branding in general, why it is of import for the success of the company, what influence trade name equity and how to increase trade name trueness. Since there was non much academic research been conducted on the topic of branding in belongings market, merely two articles will be discussed in this chapter. One of the articles was written by… .and uncovers the constituents of the existent estate trade name ; the other research was conducted on the topic of importance of branding for belongings developers in Malaysia.
2.1 Consumer behavior theoretical accounts.
Understanding consumer behavior is a precedence to any concern because it changes all the clip and depends on economic clime, political state of affairss, income distribution etc. In the present highly competitory markets, with a large assortment of trade names presented to the consumer, it is of import to set up your ain consumer mark market, what type of merchandise you are covering with and how buyers doing their determinations about your peculiar merchandise class. Blackwell et.al ( 2007, p.4 ) , defines consumer behavior as “ activities people undertake when obtaining, devouring and disposing of merchandises and services ” . Blackwell and Engel defined five phases of the consumer decision-making procedure:
Figure 4.The consumer decision-making procedure. Beginning: Jobber 2007 p.119
In the first phase “ need acknowledgment ” consumer ‘s acknowledgment of the merchandise can be influenced by emotional or psychological demands ( will be discussed subsequently on ) , or by mundane routing or unannounced state of affairs. Anyhow, directors should be cognizant of the demands and wants of the client in order to utilize the bing chance and make competitory merchandise.
After a individual recognised the demand, he will get down looking for the information. At this degree, it is of import to guarantee that client is cognizant of the merchandise trade name name and it appears in his/her consciousness set ( Jobber 2007 ) . In belongings selling PR and advertisement runs should be used as beginnings of communicating agencies. Internet is the most powerful hunt engine of our coevals ; every developer/agent should hold a web site for each development.
Procedure of rating of options depends on what type of merchandise he/she is purchasing. Harmonizing to Blackwell and Engel, “ the cardinal determiner of the extent to which consumer evaluate the trade name is their degree of engagement. Engagement is the grade of perceived relevancy and personal importance attach toing the trade name pick. ” ( Blackwell and Engel 2005, p.123 ) . In our instance, belongings is a extremely involved merchandise and a client is more likely to transport out extended research. Fishbein and Ajzen theory of reasoned action suggests, that clients ‘ determination will depend on his/her beliefs about the trade name ‘s properties ( monetary value, lastingness, quality etc ) and other ‘s beliefs if they should take this trade name or non ; on attitudes – the grade to which client likes or dislikes the trade name ; subjective norms – O.K. or disapprove of others about the trade name, and the grade to which it influences the determination. When covering with extremely involved merchandise consumers evaluate all the inside informations of the purchase really carefully, taking into consideration their ain sentiment every bit good as others. They besides have to measure all the effects of purchase ( Jobber 2007 ) . Figure 7 shows the theoretical account of rating of extremely involved merchandise:
Figure 5 The Fishbein and Ajzen theoretical account of sound action. Beginning: Jobber, 2007, p.124
The above theoretical account has deductions for selling directors. They have to supply a good resource of information for the purchases. In belongings selling booklets with programs and specifications of the belongingss are widely used to give every bit much information as possible. Often exposures and programs of the flats are included as good. High degree of repeat of the advertizement is non needed, a short video/message with the chief thought ( whether it is comfort or value or location ) is a good advertizement tool. The other widely used tool by belongings sellers is PR coverage in newspapers/magazines/journals.
Customers when measuring the merchandise will utilize different properties of it to make up one’s mind which one to take. These properties ( and benefits ) are the constituents of pick standards and may alter over clip with the alterations in individual ‘s life-style, income, age. Figure 8 shows four types of pick standards, which clients take into history when measuring the options, proposed by David Jobber.
Figure 6 Choice standards used when measuring options Source: Jobber D. 2007. P. 127
From the figure 8 we can see how four different standards from different facets of individual ‘s life influence his/her pick. Thus, economic standards will depend enormously on people income and fiscal stableness since it is connected with monetary value, running costs, residuary values etc. A societal standard is responsible for the influence of a purchase on people societal position, their relationship with others, their belonging to a certain environment. Personal standards influence individual ‘s physiological side of unrecorded. It is frequently connected with one ‘s ethical positions, his attitudes towards certain countries/firms policies. Emotional standard is rather an of import in decision-making procedure, it reflects individual ‘s temper, experience they had in the yesteryear. Jobber wrote: ” when a merchandise scores good on a combination of pick standards the result can be planetary success ” ( Jobber D 2007, p. 129 ) . Good illustrations of such successful combinations are merchandises like iPod, BlackBerry, iPhone etc. These merchandises combine proficient public presentation ( internet entree, assorted applications, multi tasking etc ) , personal ( self image is increased with having one is ) , societal ( position is perceived to be higher when having one, economic ( although these merchandises by and large are non inexpensive they score on the residuary value and life-cycle costs ) ( Jobber D 2007 ) . Therefore, it is of import for marketing directors to understand the pick standards of their clients, cognizing what is more of import for them – it might be manner and design that outweighs the public presentation. A good illustration of such merchandise is ladies interior decorator places – rather frequently they are non comfy to walk in, but the design, manner and trade name name outweighs all the public presentation qualities. For all these grounds, it is of important importance for sellers to cognize their targeted audience in order to place their pick standards and market the merchandise in the right manner for their possible clients.
Not all purchasing state of affairss will be the same. As discussed before in extremely involved merchandise, a purchaser will be seeking for the information more intensively, and this purchasing state of affairs will be called drawn-out problem-solving ( Jobber 2007 ) . “ Extensive problem-solving is normally associated with three conditions: the options are differentiated and legion ; there is an equal sum of clip available for deliberation and the purchase has a high grade of engagement ” ( Neil, Quester and Hawkins 2004, p. 131 ) . The degree of engagement will be influenced by different factors. Lauren and Kapferer identified for chief factors that will act upon this degree:
self-image – when purchasing a house or auto, one time self-image will be influenced more than the trade name of cereal this individual buys ;
perceived hazard – hazard is additions with the monetary value the individual pays for the merchandise ; since house is likely the most expensive purchase of people ‘s lives, the effects of doing a error might be life altering ;
societal factors – the purchasers ‘ credence within a certain societal environment will depend enormously on the location of the house he lives in, its size, design and monetary value. For some people the fact where they live will be one of the most of import facets in societal standing ;
hedonic influence – the sum of pleasance the individual receive from the merchandise is extremely dependent on the degree of engagement. ( Kapferer, Laurent 1985 )
The high degree of importance of the merchandise will depend to a high grade on the motives and demands of the buyer. To understand why people prefer peculiar development over others, it is necessary to grok what motive is. Harmonizing to Solomon “ motive refers to the procedure that causes people to act as they do. From a psychological position, motive occurs when a demand is aroused that the consumer wants to fulfill.
One of the most popular accounts of demands was developed by Maslow in 1943 and it is still widely used by sellers in order to understand client ‘s behavior and why they buy what they buy. Maslow set up a hierarchy of demands from its lowest to highest degree. The figure below will assist us to see the chief motives, Maslow had defined:
Figure 7. Maslow ‘s Hierarchy of demands. Beginning: Maslow, Hierarchy of demands, 1943
Peoples will get down fulfilling their demands from the underside to the top. Harmonizing to Maslow, the individual has to fulfill his physiological demands first of all, they are basic to a human being ( thirst, hungriness, shelter ) . The 2nd up is the security needs – protection from life ‘s environment ( accidents, wellness ) . These two classs are classified as physical demands. Belongingness and love – people are taking to hold close relationship with 1s they love ( friendly relationship, love ) . This group is classified as societal demands and is of a premier importance for sellers, because based on the clients belongingness they can place groups of people instead than persons. Esteem and position demands determine individual ‘s thrust for success, self-acceptance, repute, position, prestigiousness, acknowledgment from others ; it considered to be a societal demand every bit good as belongingness. Self-actualization – people are driven to carry through everything they are capable of accomplishing and go everything they can go ; at this degree people do n’t care about other ‘s sentiments and are concerned with themselves instead than anyone else. ( Maslow 1943 )
If Maslow ‘s hierarchy applied to belongings, we tins see how each degree of demands can be satisfied when a individual is purchasing a belongings. It besides helps to see how the determination will be influenced in conformity to the degree of demands of a individual, which is helps sellers to make up one’s mind which client section they will aim. For illustration, at the really bottom degree a individual will be looking to purchase any belongings to a have a shelter. This clients group wo n’t be impacting Prime Central London developers. Peoples who are fulfilling their safety demands will be looking for a more unafraid house in a safer country. Those of a societal concern will be looking for the location as a premier feature of the belongings. Self-esteem and position demands will convey clients to the most upscale locations such as Chelsea, Kensington, Belgravia. They might fulfill their demands by taking a celebrated developer with high terminal coatings and design. Here trade name name will be of great importance when doing their pick.
Vitanen 2004 cited Laakso ( 1992 ) “ stigmatization is an extra value the consumer is prepared to pay compared with an ordinary anon. merchandise yet carry throughing the same intent. A non-branded merchandise is merely a trade good. If a trade name is non able offer the consumer better advantage than the rivals, it will turn into a trade good. The destiny of a trade good is determined by the market monetary value. ” ( Vitanen, 2004, p.3 )
Since early yearss companies were looking how to distinguish their merchandises from others, in order to get away from the “ trade good position ” . Thus, distinction was recognised as a beginning of competitory advantage for a long clip. Initially the distinction was chiefly focused on implementing different scope of the merchandise with competitory monetary value, design and qualities as opposed to rivals. The touchable side of the merchandise was a precedence. However, with turning competition and distinction of merchandises, every bit good as globalisation, companies started to look for something excess to convey to their merchandises and services. A displacement towards more emotional side of consumers was noticed. Branding has become a major selling tool in the manner directors differentiate the merchandise and consumers perceive it. The concerns started to take different base on balls manner since the branding emerged in 1990s. Today it is integrated into concern and has moved from its traditional beginning in consumer merchandises to a bigger graduated table of services every bit good as belongings market.
An interesting definition was given to trade name by Chernatony and Dall’Olmo Riley ( 1998 ) – they look at the trade name as a two-base hit sided phenomenon, characterised by the reaction of the clients towards the trade name on one side and the activities of the house towards act uponing clients on the other side. Brand is between these two dimensions. For sellers, for illustration, the accent may be on a trade name individuality or trade name image, nevertheless it is non plenty to “ build the trade name ” as the clients ; perceptual experience is of import ( Chernatony and Dall’Olmo Riley 1998 ) .
David Aaker was one of the first faculty members who did a batch of research on the topic of stigmatization. He emphasised the importance of doing trade name constructing a portion of the company ‘s strategic programs. He besides says that in order to construct a strong trade name, companies are required to be after their schemes carefully and be prepared to a long-run investing. A great merchandise or service is the nucleus of the successful trade name ; nevertheless it needs to be backed up by creatively designed and executed selling ( Aaker D 1997 ) .
Real Estate, like any other extremely competitory industries, is non merely a transactional concern. The relationship between houses and their existent estate clients is much more dynamic in nature. Of class, economic state of affairs and fluctuation tendencies in architectural design and merchandise types contribute to a existent estate company ‘s ability to bring forth demand for their undertakings. However, developers and builders – much like eating houses and stores – have the capacity to command their ain fates via positioning their trade names in the clients ‘ heads and maintain that cherished place. For this ground, existent estate firms/developers need to derive a good apprehension of two really of import trade name constructs – Brand Equity and Brand Loyalty. Branding in belongings market is reasonably new definition. There is more and more accent on the trade name equity, trade name consciousness and trade name trueness though, particularly from the belongings developers ‘ position. More and more belongings developers are integrating branding into their premier schemes.
2.2.1 Brand Equity
David Aaker 1997 identified trade name equity as “ the added value endowed to merchandises and services ” ( Aaker 1997 p. 131 ) . In other words, trade name equity is the excess monetary value that client is willing to pay for a branded merchandise over non-branded one. Aaker identified two types of trade name equity: consumer based ( the 1 we are traveling to discourse in inside informations ) and proprietary-based equity ( it is derived from house ‘s properties, which bring the value to the trade name, such as patents, channel relationship ) . Consumer-based equity can be characterised by the differential consequence that trade name cognition has on consumer response to selling of that trade name. The customer-based trade name equity will hold a positive value when consumers react positively to branded merchandise and the manner it is marketed as opposed to when the merchandise is non branded and marketed. In other words, harmonizing to this definition, differences in consumers ‘ reaction towards different trade names form the trade name equity ; these differences are the consequence of clients ‘ consciousness of the trade name ; trade name equity reflected in perceptual experiences, penchants and behavior related to all facets of the selling of the trade name ( Aaker 1997 ) .
Aaker positions trade name equity as a set of five classs of assets and liabilities linked to trade name that add or subtract from value provided by the merchandise or service to tauten and/or to the house clients. Figure 4 shows five assets identified by Aaker which have an influence on the customer-based Brand Equity.
Figure 8 Aaker ‘s theoretical account of trade name assets. Beginning: Aaker D. 1997
If trade name equity is positive, this means that it has affirmatory influence on client. They will be favorable towards peculiar trade name, which increases trade name consciousness, trade name trueness and good monetary value snap. Positive trade name equity is besides really influential in footings of trade name acknowledgment as opposed to non-branded merchandise. When we analysed consumer behavior in the first portion of this chapter ( see 2.1 ) , we identified that in extremely involved merchandises, such as a auto or a house, a consumer will be seeking information as opposed to low involved merchandise, where merely being cognizant of a trade name is adequate to do a determination. Awareness of the trade name refers to the strength of a trade name ‘s presence in the consumer ‘s head ; they prefer a trade name that they have antecedently seen to one that is unfamiliar to them. For illustration, in belongings market consumer will seek elaborate information on the developer he ‘s purchasing his belongings from. The client will be looking for qualities in the belongings that suits his peculiar demands. Therefore, the developer publicizing his places will set in the message precisely what he wants to be delivered to his preferred possible client ; whether this are choice places with luxury coating and modern-day design, loft-style flats that are extremely desirable by today ‘s sophisticated immature professional people for their fast-paced urban life style or family-oriented broad houses in a really quiet vicinity. Once seen on Television or in a magazine a message like this, a possible client will detect the needed qualities and the possibility, that “ the trade name will come in a consumer ‘s elicited set is increased since consciousness is a pre-condition of rating of a trade name ” ( Jobber, 2007 p. 332 ) . Perceived quality of the merchandise can be identified as the client ‘s perceptual experience of the overall quality or high quality of a merchandise or service with regard to its intended intent, comparative to options. It is of import to understand that sensed quality frequently is the chief driver of how the trade name is perceived. However, it can be judged by client utilizing different set of standards and a company may be concentrating on the qualities that consumer does n’t see of import. At this phase, it is of import for the developer to present the right information on the qualities of his belongingss since clients make their opinion s based on the information you provide them with. Perceived quality generate excess values for the trade name, in many instances it is the chief ground for the determination to purchase such trade name ; it can be the chief distinction for the trade name which enables to bear down premium monetary value ; it besides can be really utile for the channel members which facilitates the distribution procedure. Brand association is everything that stays in memory of the purchaser, including merchandise properties, famous person interpreter and symbol. A trade name image of a place, for illustration is influenced by its qualities such as comfort, size, location, publicity and monetary value. Erikson 1996 wrote: “ The consequence of the symbolic significance of a merchandise hinges on the association between the merchandise image and consumer ‘s self-image ” ( Ericksen 1996 ) . Therefore, every merchandise, consumed by a individual is related to the significance, which carries a symbolic image. The pick of this or another merchandise will depend on the consumers wish to be or non to be associated with this image. Depending on trade name individuality, a strong, alone association can be generated in client ‘s head, which can supply an of import footing for distinction, clients ‘ benefits, stimulation of positive feelings which lead to positive purchasing decition ( Jobber, 2007 ) .
Knowing how a house wants to be perceived is one thing, but understanding what the market really thinks of a company is something wholly different. Simply put, trade name image reflects the current market place repute of a concern or merchandise among its assorted stakeholders. Businesss that can consolidate their trade name individuality with their trade name image are the 1s that will see the most success over the long term.
2.2.2 Brand Loyalty
Imagining an image of a returning regular client to his favorite eating house is an illustration of a trade name trueness. Any concern that is making a trade name should be taking for retaining their brand-loyal clients. Many concern people agree with the thought that trade name trueness is the foundation for any concern. Today, no 1 is interested any more in one-off sale, sellers are looking to make a slayable relationship with their clients – “ displacements from a dealing to a relationship focal point ” ( Payne et.al. , 1995, p.4 ) . Webster besides wrote on the relationship between the clients and manufacturer: ” From the earliest times of stigmatization, there was tenseness between industries and retail merchants refering influence on the relationship with the consumer/end user ” ( Webster, 2000 ) . This can merely be achieved if clients are satisfied with the offered trade name, its quality and confidence. A trade name has value merely in its possible to make loyal clients.
Kollat and Blackwell ( 1968 ) identified trade name trueness as “ discriminatory attitudinal and behavioral response toward one or more trade names in a merchandise class expressed over a period of clip by a consumer ( or purchaser ) ” ( Kollat, Blackwell, 1968, p.551 ) . However, the purchase of the same trade name repetitively is non the lone status for clients to be loyal. They besides have to “ hold a favorable attitude toward the trade name ” ( Day G.S, 1969 ) . Therefore, trade name Loyalty should content of behavioral and attitudinal elements.
“ In the consumer durables market, trade name trueness can be used as a section variable to good intent ” ( Jobber, 2007 p.282 ) . For illustration, in belongings market clients are divided into first-time purchasers, returning purchasers and investors. Such cleavage helps to set up what tendencies are in current market, mensurate the public presentation and set up what type of belongings on the market is more desirable. Similarly, “ in services, trade name trueness has been used to section and mark clients ” ( Jobber, 2007 ) .
Sometimes, clients buy the same trade name without truly gaining it – they buy the same type of cereal in every supermarket they go to. Such behavior called “ unsighted wonts ” and these wonts make the client loyal to the peculiar merchandise.
2.2.3 Branding in Property Market
Branding in belongings market is reasonably new definition. There is more and more accent on the trade name individuality, trade name consciousness and trade name trueness in belongings market, particularly from the belongings developers ‘ position. More and more belongings developers are integrating branding into their premier schemes. However, there is non much academic research has been done on the topic.
Kauko Vitanen conducted a survey on the trade name construct in the field of existent estate. He identified that the ability of the concern theoretical account to “ bring forth or make mass-tailored, single merchandise and services is the most indispensable development characteristic of trade name construct in the existent estate concern ” ( Vitanen K. , 2004, p.2 ) .
Vitanen, 2004 identified the theory of 4 factors on which clients base their determination in respects to the trade name of the belongings. These four factors are the construction of the trade name. In his work he states: ” The value of a reinforced existent estate to the consumer i.e. the resident, is formed by four factors: service, location, immaterial characters, i.e. images evoked by the existent estate, and the premises themselves, their physical and operational functionality, the public presentation. These four factors form an entity by which the resident evaluates the existent estate. Correspondingly, defects in one of the sectors have an impact on the resident ‘s position on the trade name of the full existent estate. It is hence in the best of involvement of the proprietor to do an entity of these four factors for functioning the clients in the best possible manner ” ( Vitanen K, 2004 p. 3 ) .
We can look at the construction of the trade name in the form of trigon, which include 4 trigons of equal weight:
Figure 9 The four factors of existent estate trade name. Beginning: Riihimaki & A ; Siekkinen 2002 P.
Property trade name is a alone entity. Each development has a different profile and features. In past trade name feature was formed by location merely. Now harmonizing to the Vitanen construct, public presentation, image and service are of the same importance. It is of important importance for the trade name specializers in the belongings market to place who their mark clients will be. Would they be interested more in location than any other features, or image of a premier importance ; for others services and public presentation is a premier? Therefore, the developers should believe about their possible patronage at the really early phases of planning and building of their development. Of class, the existent clients might non be known yet, but the targeted section can be identified in order to make the right image and run into the demands of the existent clients. Therefore, harmonizing to Vitanen, clients evaluate a belongings by four factors image, location, service and public presentation ( Vitanen 2002 ) .
For the belongings developers trade name is a strategic affair. In belongings market trade name co-operation is frequently a scheme for the trade name edifice. This means that all the spouses involved in the development of a new undertaking will act upon the trade name of the developers. For illustration, designers, who involved in the undertakings, every bit good as the gross revenues bureaus, will add their trade name names to the developers. Therefore, it is of important importance for the developer to take the right spouses, spouses who will hold similar criterions, manner way and similar mark market. Branding is a really dearly-won and complicated thing to make. It takes old ages to construct a successful trade name and no clip to free it. Since the life rhythm of a belongings is long, it brings accent on the stableness of value of the developers ‘ trade name. Brand has to be kept in head in all activities in which the company is involved – whether it is a gross revenues individual speaking to the possible buyer or a receptionist replying the call.
We ‘ve seen that location plays an of import function for the trade name individuality of the belongings developer. Kravaratzis in his paper Place Branding argues the complexness and importance of the topographic point stigmatization. He classified the tendencies of topographic point or belongings stigmatization into 5 major branding schemes that a developer can follow: beginning stigmatization, state stigmatization, civilization or amusement stigmatization, finish branding topographic point or metropolis stigmatization. He besides adds that the importance of corporate stigmatization influences general stigmatization of the belongings that is to be developed by each developer. The trade name is communicated efficaciously through many other schemes that a developer has adopted.
One of non many researches on importance of branding for belongings developers was conducted in Malaysia by Cheng Fan Fan in 2004. The research was conducted to analyze the trade name consciousness of belongings buyers in Malaysia. The research was conducted utilizing questionnaires method with the sample size of 214 people. The consequences showed that the belongings buyers in Malaysia are “ trade name witting in relation to the belongings developers and they ranked developers based on the trade name personality ” ( Cheng F, 2004, p.65 ) . The chief features that clients were sing when taking the developer, were trendiness, professionalism and investing as the top three. The findings confirmed the importance of trade name in belongings purchaser ‘s head. There were some of the branded developers who appeared to be on the top of the list of the clients ‘ penchant. Branded developers normally score the highest figure in all the factors related to belongings purchase penchant. Findingss of the research besides found the grounds to the fact that monetary value is non the most of import factor that influences client ‘s pick. Reliability, professionalism and assurance were on the top of the traits list among the clients ‘ replies when they were asked to take the most of import factors that influence their pick of the belongings developer trade name ( Cheng F 2004 ) .
The above research findings were non used in the current research, since it was conducted in Malaysia. However, it had an influence on the research worker and provided her with the assurance of the relevancy of the subject. As has been mentioned before, branding in belongings is a new phenomenon and does n’t hold a batch of academic support in the literature. However, the research conducted in Malaysia has proven that stigmatization has an influence on belongings buyers and is of a great importance for the belongings developers. Some of the inquiries from the above research were included in the interviews the research worker conducted with the London belongings purchasers.