I would also like to thank the professors and teachers at the Department of English: Professor Simon Zaby, Professor Vichita Ractham, who taught and helped me a lot in the last two years. This first chapter introduces the readers to the background of the research, explains the objectives of the study and the limitations of this research that lead to the conduct of this research and will be presented as follows. According to a survey by the Real Estate Agency (2016), total housing market sales in Thailand reached 576.396 billion baht (US$18 billion) in 2016.
Foreign buyers were active in the higher end of the condominium market before the 2008 global financial crisis, especially the increasing number of Chinese buyers investing their properties abroad (CBRE, 2012). Due to the fact that the house price level is higher than the Chinese economy and buyers' income, fears of a real estate bubble are emerging, especially in some major cities in China such as Beijing and Shanghai. Overseas real estate investments have been rated as cost-effective based on quality, price, environment, facilities and social welfare, compared to domestic real estate investments.
Although there is a lot of research that has been done on the Bangkok real estate market, only a few have attempted to address it. The increase in the number of transportation routes has changed the traffic problems in the city, such as the BTS sky train, MRT and BRT. More and more Chinese graduates decide to buy a house and settle in this city due to the fact that foreigners can own condominium units in their own names and it is perceived that there is still room to grow in terms of yield and future capital gains. .
According to Collier Radar Property Research (2017), many Thai developers have increased their efforts to penetrate the Mainland China market, coinciding with the large growth in Chinese tourism to Thailand.
LITERATURE REVIEW
- Consumer Behavior Theory
- Step1: Problem recognition
- Step3: Evaluation of alternatives
- Step4: Purchase decision
- Step5: Post-purchase
- External determinants of Consumer Behavior
- Motivation
- Family and cultural changing
- Internal Determinants of consumer behavior
- Previous Study
- Conceptual Framework
The process of consumer behavior begins with the recognition of a problem, which is related to the recognition of a consumer need. Once the problem identification process is complete, the consumer may try to gather all kinds of information related to the product or service. Motivation can be described as an “energetic force” (Hawkins & Mothers Baugh, 2010). In other words, it can be viewed as a direction that leads to a certain behavior.
It can also answer the question of “why” consumers make a real estate investment in Bangkok. According to the China Daily (2017), it is reported that the property will not be marketable within the first three years. During the year the average sales price of new apartments in Bangkok has continued.
Although real estate prices in Bangkok are constantly on the rise, there is still plenty of room for appreciation and investment value compared to the real estate market in Beijing or Shanghai. In addition, other factors that lead Chinese people to invest in real estate abroad are high population density and rapid industrial development, and the side effects are transmitted to the environment in China. The largest number of international students studying in Thailand were Chinese students with 8,993 students or 47.2% of the total.
China's one-child policy has drastically increased the spending power of the average household that can afford to pay for their children's education. Self-concept: Self-concept refers to how the individual believes they are perceived and how the organization encompasses the service factors related to the perception of the individual's attributes and abilities; The consumption process maintains self-image on the part of the consumer. Sirirat (2009) argued that the actors influencing consumers' decision to purchase condominiums among people of different genders, marital statuses, and incomes in Bangkok.
A total of 110 subjects were used to collect primary data from the target population of one of the largest information technology companies in Bangkok. The result has shown that the relationship between company brand, price, marketing communication has a positive effect on the intention to buy real estate in Bangkok. Thaninrath and Seongdok (2010) conducted a study on the product's factors influencing purchase intention in the Bangkok condominium market; a total of 400 questionnaires were distributed to respondents who are considering buying condominiums in Bangkok.
Through the quantitative study with 400 sample size, the result of the study showed that most of the respondents are female, single with bachelor degree and 26-30 years old to buy condominium by themselves. The result of the survey aims to help the consumer know what influences them to do this behavior.
RESEARCH METHODOLOGY
Interview Method
Potential consumer selection
Develop open-ended question
FINDINGS ANALYSIS
External factors affecting consumer behavior
- Location
- Financing issues
- Education
- Marketing Communication
- Family and Cultural Changing
According to three interviews, personal income and family support will be the first concern for decision-making. On the other hand, the results of our analyzes confirm the notion that a high return on investment became an important motivation for the buyers who want to invest a condominium in Bangkok. Due to the number of Chinese tourists to Thailand growing rapidly, and becoming more familiar with Thailand, more of them will want to buy property.
According to Chen, she believed that the price of condominiums in Bangkok can be a great advantage compared to top-tier cities in China, as the growing number of residents living in urban areas in China dominates the extremely high housing prices. Based on the findings from interviews, it was clear that education became a very important motivation when considering purchasing a condominium in Bangkok. According to the interviews with Yao and Chen, their parents are willing to pay the best for their children and encourage them to study abroad.
As for Mary, most Chinese property investors are drawn to Bangkok's multicultural atmosphere for education. In addition, most universities in Bangkok do not offer dormitories for current students, therefore, the real estate company tends to use the location close to the school and the high rental rates of the apartments as the emphasis of their marketing strategies, attracting parents of those students to invest properties near an existing good school, because they. Another important factor influencing the information gathering and evaluation stages of the home buyer is word of mouth recommendations.
According to Mary, most buyers get property information from servile channels, such as the company's showroom or online advertisements and magazines, but more importantly, both Chen and Yao contact ABC Real Estate through their friend's or family's recommendations. . The finding we can get from the interview with Mary is that promotion can be an outstanding factor influencing the buying behavior of the Chinese graduate consumer in the Bangkok condominium;. According to Chen, the Chinese language has changed dramatically, with increasing numbers of international graduates tending to leave their home country to work in Bangkok.
Career choice, employment and personal interactions will be the constraints they decided to stay in Bangkok. According to Mary, most graduates do not believe that they will be treated better when they return to their home country, and also believe that Bangkok will provide them with better job opportunities. The increasing number of graduates wanting to reside in Bangkok also creates demand for a greater variety of housing options in terms of property types and investment partners.
Internal factors affecting consumer behavior
- Self-concept
Their educational decision and their lifestyle can predict a student's career path and location, so they will consider the long-term plan for work, housing or further education.
CONCLUSIONS AND RECOMMENDATIONS
Conclusion
- Recommendations
Furthermore, the result of the study will help real estate developers understand what factors influence consumers towards real estate and apply them to the planning of marketing strategies, thereby helping real estate developers meet the needs of their consumers.
Limitation
A Study of Factors Affecting Chinese Students' Satisfaction Towards Thai Universities." Journal of Economics, Business and Management, 2(2). Factors Affecting Consumer Decision Making to Purchase Condominium Among People of Different Gender, Marital Status, and Income.
APPENDICES
Appendix A: Interview Questions
