Customer-perceived Value in Residential Developments: the Case of Hornsberg Strand, Sweden

Berndt Lundgren ()
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Berndt Lundgren: Associate Professor in the Department of Building and Construction Management, Division of Building and Real Estate Economics, Royal Institute of Technology, Stockholm

International Real Estate Review, 2013, vol. 16, issue 1, 1-27

Abstract: This paper presents a new model by using a structural equation technique. This model integrates the productivity theory and customer-perceived value to identify key features that residential customers seek when making their decision to buy or rent a residential apartment. A theoretical structural equation model is confirmed by using a dataset based on 283 respondents, those who are potential tenants of an ongoing residential construction project in Sweden that consists of 402 rental apartments. The results show that expectations of being able to relax in the immediate neighborhood as well feeling safe in the neighborhood have a high impact on customer perceived value. Moreover, analysis of a two bedroom apartment, used as a show apartment, reveals that an apartment with plenty of natural daylight and a well proportional layout has the highest impact on customer perceived value. Professional developers and municipalities could use the proposed residential customer perceived value model (RCPV-model) to increase their understanding of customer-perceived values by verifying key drivers in successful residential projects and acting on them when planning new development projects.

Keywords: Customer perceived value; Productivity analysis; Structural equation modeling; Residential construction project (search for similar items in EconPapers)
JEL-codes: L85 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

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