An Analysis of Consumer Preference to Residential Houses in West Java Province

Abstract

The construction sector is one of the main sectors driving economic growth in Indonesia. Along with rapid population growth, the need for housing is also increasing. Housing development in the city of Bogor has grown rapidly since the 1990s when state-owned enterprises and a number of private developers enter the market. The purpose of this research is to find high-potential product profiles in accordance with consumer preferences. For this purpose, this research analyzed primary data on the evaluation scores of 100 consumer respondents. Data collection uses structured questionnaires, and data analysis employs a full-profile conjoint method with the SPSS package [insert version detail]. The analysis evaluates consumer preference for 6 housing attributes and 17 attribute levels (2 to 4 levels for each attribute). The studied attributes availability, location, physical building, security system, facility, and promotion media. The results show that physical building is the most important attribute and facility is the least important attribute.  Type C is the attribute level with the highest utility score (0.061), and join activity building is the attribute level with the lowest utility score (0,121). The most preferred product profile is a physical building with a total utility value of 26.170 Based on the attributes’ utility scores, 10 potential product profiles are identified. The results are expected to enrich the literature on consumer preference for attributes of housing products and to provide a practical reference for the developers in planning their housing products, particularly in Bogor.