| Abstract: | An understanding of customer choice is essential in planning and programming the marketing
system. The objective of this study is to determine the factors that affect customer choice in the
case of Gift real estate, Addis Ababa. Quantitative approach is used in considering the research
objective and to gain a better understanding about the research problem. In addition to this, the
research conducts a cross sectional study thus; this study only investigate the phenomenon at a
particular time. The researcher has studied the effect of price, quality, location, Brand and sales
personnel on customer choice of a house. The theory explained various consumer behavior
models and their arguments. This study adopted descriptive and explanatory design because it
allows the collection of data at one point to the other. Using probability sampling technique like
simple random sampling, the study sample in terms of the respondents covered randomly
selected customers of Gift real estate real estate company and a sample of 384 was administered
with the questionnaire and 87.5% response rate was achieved. Descriptive frequency and
percentage have been conducted to explore the demographic characteristics of the target
respondents. Using Linear Regression model, this research is useful to examine the relationship
between the independent variables to the dependent variable (customer choice) after meeting all
the given assumptions successfully. Statistical Package for Social Science (SPSS) version 25 was
used to generate the actual results. The result has identified that price, quality, location, brand
and sales personnel as a basic influencing factors and examines each factor on the extent of their
effect on customer choice while selection real estate. The researcher has concluded that
customers mainly considered quality and location as a major factor on their house choice. Price
and Brand has insignificant negative influence on customer choice. Additionally, the researcher
has concluded that sales person’s credibility does not matter as of the quality and location for
the real estate customers when they choose a company to buy a house. Based on these findings,
the researcher recommended that the management team of the Gift real estate companies to give
special attention for those variables that have major impact on customer choice. |
