LITERATURE on customer preference, technology access, pricing of housing

LITERATURE REVIEW

2.1 Introduction

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In
this chapter the researcher will critically review the existing theoretical
literature information on customer preference, technology access, pricing of
housing and competence influence on ACM uptake. A critical review of previous
research studies on ACM will be assessed to aid formulation of the conceptual
frame work of the study as well as find gaps in research that this study aims
to address.EP1 

2.2. Review of Theoretical Literature

2.2.1. Customer Preference

By
definition, customer preference is the subjective customer’s perception of a
product or a service that makes them choose it over other competing offers. It
enables a client rank products and services based on their levels of
satisfaction (Ghose et al., 2013). In a growing market/industry there is always
the presence of existing and new brands. For a new brand marketing is key to ensure
its adoption by the consumer. If marketed well a new product will generate
revenue in the short run and in the long run attain economies of scale to
further enhance the profit (Ghose et al., 2013). Generally, due to the presence
of competing alternatives in the market; a consumer has to make a judgment call
about the properties of the alternatives at hand before making a decision in
what to pick and what not to (Ghose et al., 2013). According to Richard (2017)
customer preference is the reasons for the decision people come to when
selecting among competing products and services.

Customers
have an ever changing taste and preference for consumer goods, products,
services and technology. This ever changing needs to be satisfied to ensure prominence
of the service provider that is meeting this ever changing need (Ammani, 2013).
Due to the changing nature of the tastes and preference of customers, it is necessary
for various industries to adopt and keep up with the changes in order to satisfy
the target consumer changing needs (Ammani, 2013). Through an analysis of the
factors that influence

customer
preferences it enables businesses concentrate their resources to target
specific consumer sectors for their product and eservices (Richard, 2017). In addition,
businesses need to be innovative so as to come up with new products and services
that have a competitive edge over the existing products and services thus
offering a competitive advantage in the market niche (Richard, 2017).

Various
factors affect customer preference. An understanding of these factors enables
various industry players get an upper hand in as far as satisfying the customer
needs (Economic Discussion, 2017). Advertisement disseminates information to
the target client thus generating interest in the products and services being
offered. This interest in essence generates demand for the various products
(Richard, 2017). Target customers’ income also plays a role in influencing
choice of products and services by customers. As a general rule of thumb income
reflects customers’ appetite for consumption of goods and services (Economic Discussion,
2017). Thus the overall cost of the products and service on offer compared with
the income of the customers will shape whether they would accept or decline the
product and service. In summation, the cost of a good or product goes hand in
hand with the consumer income in determining preference for a certain goods or service.
The cheaper; the more preference by consumers (Richard, 2017). Accessibility of
competing providers of goods and services also influence customer preference. Generally,
consumers prefer access to products and services as and when they need it hence
availability of these goods and services in terms of access tends to influence their
taste and preference (Ammani, 2013). When a product or service is not readily available;
consumers will substitute it with another to satisfy their needs. Societal institutions
also influence customer preference in that the view of societal members towards
a certain product or service will influence whether one will accept or decline
the product or service (Richard, 2017). Societal pressure will play a part influencing
customer preference since social approval is a key aspiration for a significant
number of societal members (Richard, 2017).

Over
the last decade there has numerous strides made in technology through new
innovations that are aimed at keeping up with the ever changing end customer behavior
(Journal of Technology, 2012). The integration of technology in various industry
– construction industry included- has seen marketing opportunities emerge in
the ever changing competitive consumer markets (Journal of Technology, 2012).
The main aim of innovation is to improve the whole customer experience through
offering cost friendly; more efficient and effective products and services that
will satisfy the high standards set for customer satisfaction (Journal of
Technology, 2012).

In
the construction industry customer preference results when there is use of
technology that is cost friendly, accepted widely by the society and
technologically advocated for by other stakeholders (Nadim
& Goulding, 2011)EP2 .  By practice customer preference is based on a
tradeoff comparison between one construction method attributes vs another. Availability
of various substitutes referred to as alternative competing products and
services to what the customer is already consuming plays a major role in the
customer deciding whether to pick one technology over the other (Richard,
2017). If the consumer perceives a significant change they are most likely to
change to the better option among the competing substitutes; if not they are less
likely to change their preference (Richard, 2017). The said attributes enable a
client make a holistic preference of one method over another either due to repeated
use and/or solutions that the method offers (Amir & Levav, 2008). The attributes
can range from cost, stability of structure, perception by the society and
standards of work (Ghose et al., 2013). All these parameters tend to feed into
the final client decision of whether to take or not the ACM over the
conventional brick and mortar that highly popular across the world through the
various income levels (Amir & Levav, 2008).

Lack
of dissemination of information on ACM has been a major stumbling block in its
uptake. Most still cling to the conventional brick and mortar technology that
is dependent on materials such as cement, steel, glass and sand whose demand
for such material further outstrips the supply leading to cases of delay in
delivery, wastage of resources as well as ultimately increasing the cost (Nadim
& Goulding, 2011).

There
is bias towards manufactured building materials, and apathy towards ACM as they
are only accepted as cheaper in principle but not in practice. ACM construction
is seen as a temporal, low value, cheap and backward approach to construction
(Kvarnstrom, 2014). Previous research show that when a client is presented with
several competing alternatives to choose from, a great number opt to use what
they have been using due to their apprehension to change. (Lu, 2007)EP3 .

In
a competitive industry like the construction industry; satisfaction of a customer’s
needs is a milestone in determining the success of the project as well as
giving a company with competitive advantage. Due to the critical role that
clients play in the construction industry; their choice of preferred
construction methods should be factored in so as to not exclude their views in
the construction process (Ayman, 2015).

 EP1Seriously????
Why do you define chapters and all that?? This is not a manuscript, it’s a
proposal….the less the wording the better…

 EP2This
reference is too old…find a more recent one

 

 EP3Another
old reference, please fins a more recent journal that has cited this work