Dual process of dual motives in real estate market Indonesia

• Published in: International journal of housing markets and analysis 2019-02, Vol.12 (1), p.25-42
• Main Authors: Njo, Anastasia, I. Made, Narsa, Irwanto, Andry
• Format: Article
• Language: English
• Subjects: Behavior; Behavioral economics; Cognition & reasoning; Cognitive ability; Consumption; Decision making; Efficient markets; Expected utility; Heuristic; Houses; Housing; Housing prices; Hypotheses; Information processing; Investments; Investors; Life cycle analysis; Life cycle engineering; Life cycles; Literature reviews; Portfolio management; Problem solving; Profits; Purchasing; Rationality; Real estate; Variance analysis
• ISSN: 1753-8270; 1753-8289
• DOI: 10.1108/IJHMA-05-2017-0049

Purpose The dual process of thinking between conscious processes and unconscious processes generate a different decision. Thinking consciously produces rational decisions. However, a person’s cognitive limitation makes him or her simplify complex scenarios and think implicitly result in making decision in heuristics or rules of thumbs. This paper aims to evaluate patterns of decision-making relationships and dual motives for home purchasing by first home buyers and family life cycle in Indonesia. Design/methodology/approach Collecting data was done by distributing questionnaires to home buyers within three years (2013-2016). Further data were processed using ANOVA based on group of dual motives, time for buyer and family life cycle. Findings The results show that buyers have consumption motives in buying a residence and they behave rational, while investors prefer to buy an apartment and tend to behave heuristics. Dual motives of time for buyers are not significant to decision model. Family life cycle is significant to decision model based on dual motives. Originality/value This is an unpublished dissertation study to qualify for graduation.