PRICE DIFFERENTIATION MODEL BETWEEN UNITS FOR VERTICAL HOUSING: A STUDY OF A BUILDING CONSTRUCTION COMPANY
- 1. Federal University of Santa Catarina (UFSC), Joinville, Brazil
Description
Abstract: The use of the internet as a sales channel provides the consumer with information, facilitating the comparison of goods and increasing the already existing competitiveness between companies. The customer chooses by analyzing the products in terms of their attributes and according to the purchasing power. In this sense, an adequate pricing process is essential for any company. In the construction industry, this issue is even more relevant because of the heterogeneity of housing units. Furthermore, the high purchase price compared to other products, together with a variety of subjective attributes in the customer's perception, make the pricing process a complex undertaking. Thus, one question would be how to devise a distribution of prices in vertical housing, where the units in a building vary in size, number of rooms and external views. With the aim of defining a price differentiation model between units, this study was carried out based on the price formation process in a construction company in Santa Catarina state, Brazil. With the collected empirical data, a hedonic multivariate linear regression model was developed, with the aim of constructing an automated price differentiation system. The mathematical model showed good results for the numerical adjustment and in its ability to estimate price differentiation based on quantifiable attributes. Thus, it provides evidence of the applicability of the method in the correlation of the client's subjective attributes with the value of residential units in vertical condominiums.
Keywords: Pricing; residential property; numerical method; linear regression.
Title: PRICE DIFFERENTIATION MODEL BETWEEN UNITS FOR VERTICAL HOUSING: A STUDY OF A BUILDING CONSTRUCTION COMPANY
Author: Edilson De Souza Vidal, Sérgio Junichi Idehara
International Journal of Civil and Structural Engineering Research
ISSN 2348-7607 (Online)
Vol. 10, Issue 1, April 2022 - September 2022
Page No: 38-50
Publisher: Research Publish Journals
Website: www.researchpublish.com
Published date: 21-April-2022
DOI: https://doi.org/10.5281/zenodo.6475476
Paper Link (Source): https://www.researchpublish.com/papers/price-differentiation-model-between-units-for-vertical-housing-a-study-of-a-building-construction-company
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