A Study to Find the Buying Behaviour In Joint Family

Group Members

Paridhi Bumb, Khushi Jindel, Riya Gada, Mitansh Mandani, Khushi Mehta

This research paper is prepared under the guidance of our consumer behaviour
professor - Mrs. Swarupa Bhatia.

We would like to express our thorough gratitude to Mrs. Swarupa Bhatia for her
constant support throughout the preparation of the research paper.

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Abstract:
“You can’t have everything you want, but you can have the things that really matter to you.”
— Marissa Mayer. Searching for a home on a budget can be frustrating. You might not be
able to afford to get everything you want, at least not all at once. The objective was to
understand the factors, which influence the buying behaviour of joint families when they are
buying a new house and help the real estate agencies so they can modify their marketing
strategies and attract a larger consumer base. The hypothesis was that joint family’s decision
making to buy a flat is only affected by the location. 20 joint families that reside in Mumbai
suburbs were considered to test the hypothesis. The results failed to reject the null hypothesis.
And hence it was concluded that joint family’s decision making to buy a flat is not only
affected by the location but also other factors like income, amenities, budget, space etc. it was
seen that the families preferred taking financial assistance while buying a new house. They
size of the house mattered more to them than having any floor preference. Even today, they
find it difficult to get a house of their choice as they have so many requirements; they end up
compromising on a few of them. Buying a house is a lifetime investment for them.

Keywords:
Joint family, family decision making, houses, buying behaviour

Introduction:
Family is one of the universal and permanent institutions of mankind. In every society and at
every stage of development we found some sort of family. Joint family is a collection of more
than one primary family on the basis of close blood ties and common residences. All
members are bound by mutual obligations and have a common ancestor. It consist of an
individual, his wife and married sons their children and unmarried daughter, his brother and
his parent. This joint family system is a peculiar characteristic of the Indian social life. All
the members of joint family keep their earnings in a common fund out of which family
expenses are met. Joint families normally consist of members of three to four generations.

In a family decision-making model, it is important to understand how the family members

interact with each other in the context of their consumer decision-making. The sample size
for this research involved 20 joint families. It is important to study the buying behaviour and
perception of families with respect to houses as it helps the real estate agencies to understand
the needs of the consumers in order to best satisfy and attract the consumers. Real estate is a
delicate industry to operate in. The consumers put in a lot of thinking before buying a new
house.

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This study helps us to know the buying behaviour of joint families and their preferences &
priorities when they are looking to buy a new house.

Literature Review:
(1) According to Smt. Iravati Karve, “A joint family is a group of people who generally live
under one roof, who eat food cooked at one hearth, who hold property in common and who
participate in common worship and are related to each other as some particular type of
Kindred.”

(2) According to K.M. Kapadia, “Joint family is a group formed not only of a couple and
their children but also other relations either from father’s side or from mother’s side
depending on whether the joint family is patrilineal or matrilineal.”

(3) According to Cox (1975), the individual members who make up the family unit exercise
an influence over each other’s behaviour and, therefore, over the activities which form part of
consumer decision-making.

(4) According to QiuxueLuo, P. T., As buying homes is an important phase of life. It is

difficult to understand the perceptions and behaviour of homebuyers and while constructing
the homes the expectations and requirements of buyers should be realized. This research is
also helpful for property developers also; it will enable them to gain competitive advantage.
Property market is highly competitive and day-by-day living cost, standards are changing as
per consumer’s demands. Hence, it is essential to study the current trend of consumers’ needs
and wants. Perhaps this research is not one-time research it should be on going for such
reason.

Methodology of Study:

Purpose of research: This paper helps to study buying behaviour in joint family regarding
houses (flats)

Research design used: This study uses exploratory method to study the joint family buying
behaviour in case of houses (flats)

Population: Different types of joint families, residing in Mumbai suburbs

Sample size: A total of 20 joint families

Sampling method: Simple random sampling

Main study variable: Consumer behaviour of joint families while buying a flat.

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Data collection methods:
• Primary data collected using online questionnaire method. (google forms)

• Secondary data collected from various books such as Consumer behaviour by

Schiffmann and Kumar and Consumer behaviour from Pearsons.

Research limitations: The study was conducted with a sample size of 20 joint families who
reside in the Mumbai suburbs area only.

Practical implications: The findings will help the real estate agencies to understand the needs,
wants & desires of joint families while buying a flat and improve their marketing strategies to
attract broader consumer base.

Results:

 Basic information about the families

NUMBER OF FAMILIES=20

30%
collateral

supplemented
50%
collateral
lineal collateral
20%

 Average working members: 4

 Average annual family income: 60 lakhs- 1 crore

Q1. Since how many years are y'all living in this house?

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 5%

15%
30%
0-4 Years
5-9 Years
10-14 Years
50%

Q2. What was and is the overall budget for buying the house?

PAST

15% 0-50 Lakhs

20%

50L-1 Crores
1-5 Crores
5 Crores
25%
40%

PRESENT

5%
15%
0-50 Lakhs
25%
51L-1 Crore
1-5 Crores
5 Crores +
55%

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Q3. Did you take any financial assistance for buying the house? (Loans)

35%
No
Yes
65%

Q4. If yes, was the aid taken under one person’s name or jointly?

25%

one person
jointly

75%

Q5. What kind of flat did you prefer for your family?

5%

Single

50%
45%
Clubbed on
the same
floor

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Q6. Did you have any floor preference while buying your house?

22%

Lower
50% Higher
No Preference
28%

Q7. How many bedrooms did you prefer in your house?

10% 5%

2 to 4
5 to 7
33%
52%
8 to 10
11 +

Q8. Which part of your house was least important to be included?

5%
15%
10%
half room
balcony
dining room
living room

70%

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Q9. How important was it for your family to live in areas of:

cosmopolitan 20%

same culture 65%

railways & airports… 75%

shopping centres (leisure) 50%

hospitals (health) 75%

schools & colleges… 95%

0% 20% 40% 60% 80% 100%

Q10. Did you consider having amenities provided by your society while buying your house?

CCTV surveillance 65%

security guard (24/7) 90%

sports centre 25%

garden 60%

gym & pool 25%

parking space 95%

0% 50% 100%
Q11. Which member of your family dominated while making decisions regarding buying the
house?

70%
60%
50% MALE
40% 35%
FEMALE
30%
20% 35%

10% 25%

0% 5%
1st generation 2nd generation 3rd generation

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Q12. In which state of mind did your family buy the house?

5%

30%
Pressure
Rational
Consultation
65%

Q13. Are you looking to buy a new house in near future?

20%
30%
YES
NO
MAYBE
50%

Findings:
• 50% of the respondents are living from 10-14 years. Joint families prefer staying in same
house for long duration. They find shifting difficult.

• 40% of the respondents budget was between 1-5 Crores when they bought the house but
today 55% of the respondents budget is between 1-5 Crores.

• 65% of the respondents preferred taking financial assistance while buying their house.

• 75% of the respondents prefer taking loans on jointly basis and those who prefer
individuals loans, take them on head of family’s name.

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• 50% prefer duplex, 45% clubbed on the same floor& only 5% prefer buying a single flat as
it is difficult to find huge floor space and so many rooms in a single flat.

• 50% of the respondents have no floor preference as for some respondents other factors like
location & space mattered more than the floor

• 52% of respondents prefer 5-7 bedrooms in a flat & only 5% prefer 2-4 rooms because of
more number of members in the family.

• 70% of the respondents gave least importance for having a balcony while having a living
room was most important to them.

• 95% of the respondents’s first preference is to find a house that is near to an educational
institution and last preference to a house near shooping malls. 65% prefer living in an area
surrounded by families of same culture.

• 95% of the respondents considered having a parking space while buying the house.

• The respondents wanted security services to be provided like security guard (90%) &
CCTV surveillance (65%).

• 60% of the respondents belonged to the families where the decision-making was
dominated by the second generation (usually the earning members), 40% belonged to
decision making dominated first generation and none by the third generation.

• 65% of the joint families take rational decision when it comes to purchasing a new house .
30% consult their family members and others before making a decision & only 5% families
buy houses under pressure

• 50% of the respondents were not looking to a buy a new house in near future.

Conclusion and Suggestions:

 Real estate agencies should collaborate with financial institutions to provide

beneficial offers and loan facilities to the consumers.

 Joint families usually take decisions of buying houses rationally and after proper
consultation and not under pressure or in hurry. Buying a new house is a huge one
time investment for them.

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  Joint families usually consist of 3 generations out of which second generation is the
one marketers should target as they hold major stake in decision making when it
comes to buying a new house.

 Real estate agencies should consider the parts that are least important to joint families
like a huge area for balcony rather they would prefer a bigger dining room. This will
help them to attract the joint families as they are designing the houses according to the
consumer’s preference

 Safety has become a big necessity for joint families, so the real estate agencies should
focus on providing this service.

 Location has also become a priority and families who are now looking to buy a new
house will prefer areas with good connectivity in terms of public transport,
educational and health institutions.

Scope for study:

There is scope for further research to explore whether consumer behaviour of joint families is
affected by their personality, lifestyle & self image.

References:

 R. Sridevi ,Saranya.W, (2018) (https://acadpubl.eu/hub/2018-119-18/3/293.pdf)

 Nelson Oly Ndubisi Jenny Koo, (2006)

(https://www.researchgate.net/publication/235275697_Family_structure_and_joint_p
urchase_decisions_Two_products_analysis)

 Chaudhary, M., & Gupta, A. (2012). Children’s influence in family buying process in
India. Young Consumers, 161-175

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