REVIEW
PAPER:
The
Impact of E-Marketing on Sales Price of Residential Property in Malaysia
Hendry
Sastra Bin Ismail
Doctor of Business Administration (UTM)
Department of Business Administration
International Business School
University Technology Malaysia, Kuala Lumpur
Abstract: There is important to real
estate industry nowadays to innovate their corporate businesses into ICT
technology in shaping out the greatest values of success in the global property
market. E-marketing might improve demand and supply of housing in Malaysia to
create future customer needs, In order to commercialize products and services, the
housing developers might engage with real estate agency in doing marketing
activities for the property. The aim of this
paper is to identify the impact of e-marketing on sales price of residential
property in Malaysia. Finally, the results of this study were discussed that
e-marketing might controlled the house price; and improve customer sales
services in real estate industry.
Keywords: ICT technology; E-marketing; Sales
price; Residential property
INTRODUCTION
Real estate is one of
the biggest competitive industries over the world. Based on the Board of
Valuers, Appraisers and Estate Agent Malaysia (Act, 1981) the term of real
estate is property consisting of land and the building on it, along with
natural resources and consists of mineral, corps, water or immovable
property. Sometimes, it might be called
as real property whereas directly refers to building or housing in general.
According to Kimmons (2010) real investment, agency practice and real estate
operation is a part of principle divisions in real estate industry. However,
previous practitioner also has defined real estate is the immovable property
such as land and the building attachment on it (Brueggeman, 1997). The key players in real estate markets consist
of land owners, developers, real estate valuers, bankers, property agents,
speculators, tenants and investors to name a few. Thus, other activities
involves on real estate sector encompass the housing and also in the
construction sectors.
Meanwhile, several studied had
found that the property can be divided into five (5) sub-categories including residential,
commercial, industrial, and agricultural as well as development land. The residential properties refer to a single
and multi-storey family building consists of terrace house, bungalow, detached,
cluster, semi-detached, apartment and condominium. Then, the commercial properties refer to
shop-office, shop house, shopping complexes, retails lot, leisure, office
building, etc. In the meantime,
industrial properties also refer to factory building, mining area, inventions
and trademarks, and ports consortium. On the other hand, agricultural
properties refer to garden, plantation, botanic area, farm and estate. Development properties also refers to
potential properties arise by its surrounding areas which is can be upgraded
into suitable use according to state government decision for a long-term use.
In order to
commercialised real estate products and services to the customer in the
property market, the proper marketing mix should adapted by the real estate
agents to attract the number of customers into the market (Borden, 1964). The
basic concept of marketing mix practice by the previous authors is putting the
right product into the right place and the right price as well as at the right
time. However, recent studies had found that traditional marketing is not much
more powerful and got limitations in its function compared to e-marketing via
internet (Grobler, 2014). This is because a new trend like e-marketing is
cost-effective and much easier compared to traditional concept (McLain, 2014). In
order to attract the number of customers, real estate agent or property agent
need to choose best marketing options to penetrated their products and services
by using a technological transformation via e-marketing (Kumar, 2014). The proper marketing strategy
is depending on their tacit knowledge (Gary et al., 2007).
Problem
Statement
According to Central
Bank of Malaysia, house prices continue to rise, but at a slower pace, and
transactions are slightly down and residential construction activity is
slowing. The construction cost to develop housing for residential in Malaysia
is cheapest, the sale price of housing is too high and young generation is
still cannot afford their own houses for living. This is because demand and
supply for housing in Malaysia is not equilibrium at all. If the demand is
high, housing price also high. Housing Index in Malaysia was decreased to 5.40
percent in the third quarter of 2015 from 5.90 percent in the second quarter of
2015. Housing Index in Malaysia was averaged 3.95 percent from 1997 until 2015,
reaching an all time high of 44.50 percent in the first quarter of 2000 and a
record low of -39.20 percent in the third quarter of 1998. Housing Price Index
in Malaysia had been reported by the Central Bank of Malaysia (BNM). However, in
order to control price increase in real estate, the researcher might use
e-marketing through ICT technology to commercialize products and services in
the marketplace.
The selected tools of
proper marketing in real estate are very important to reduce the cost expenses
for marketing activities. Several practitioners have found that e-marketing can
benefits customers to get lowest price of housing and it might reduces search
costs of products and services that would reflected supply and demand of
potential customers (Yannopoulos, 2011). The competition of e-marketing also
might increase from company to company (Quelch and Klein, 1996). In the
meantime, the recent author had pointed that e-marketing might affect property
price (Winter, 2015). He was also described that property price might be
increase depends on supply and demand of houses in real estate market. In this
study, the researcher was used a basic question in order to achieve the
research objectives. For example, to what extent e-marketing might impact sales
price of residential property in Malaysia? To answer this question, the researcher
will use Porter’s Five Forces model to fulfill the research gaps.
Research
Objectives
In this study, the researcher
was conducted three research objectives which are to compare traditional and
e-marketing strategy in real estate industry; to identify the factors that
influencing real estate price; and to discuss the impact of e-marketing for
residential property in real estate industry. Here, the researcher will used
Porter’s Five Forces model (threats of new entrants, threats of substitute
products or services, bargaining power of customers, bargaining power of
suppliers and threat of established rivals)
to reach the research objectives. Meanwhile, the aim
of the study is to discuss the impact of e-marketing on sales price of residential
property in Malaysia. However, further elaboration on definition of e-marketing
in the context of real estate will be discussed in the next chapter of the
study.
LITERATURE
REVIEW: MARKETING IN REAL ESTATE
This chapter presents several
literature on ICT technology via e-marketing in real estate industry with the
aim of the task assignment is applies for the knowledge gained in the class to the
organization in Malaysia. The researcher
was used the empirical literature as a yardstick to have the results of the topic
given from class discussion; and as a body of knowledge to achieve the research
objectives. Besides, it could be extracted from the reading materials including
journals papers, article reviews, newspapers, magazines, conferences papers or
text books.
Definition
of Marketing
According to Ayed and
Majed (2012) marketing is an art and science; and the process of the marketing
program is presented in a consistent, disciplined and simple way. Several
authors had pointed that marketing also considered as fundamental in
development and performance of firms (Narver and Slater, 1990; Kohli, Jaworski
and Kumar, 1993); but it has changed extensively in the First and Second World
Wars (Lindgreen, Palmer and Vanhamme, 2004). Some authors argued the 4Ps theory
of marketing mix might lead to indisputable paradigm in academic research, but
some of them believed the validity of which was taken for granted (Gronroos, 1983).
On the other hand, Shapiro (1985) has stated the development of marketing mix
might be the most powerful method for executives in respect. On the other hand,
the terminology of marketing definition can be illustrated as figure below.
Year
|
Scholar
|
Definition
|
1374
|
Goharian
|
Marketing structure and demand
for products and services is estimated to predict the spread.
|
1378
|
Ranjbariyan
|
Satisfy human needs and to
define the process was considered with the market. On the other hand, the
buyer and seller in a market where it is located.
|
1379
|
Hosseini
|
A set of human and economic
activities conducted in order to satisfy the needs and demands of the people
through the exchange process.
|
1383
|
Alvdary
|
Process in which groups of
people, goods and benefits from production and exchange with others to meet
their wants and needs.
|
1386
|
Events in Iran
|
Targeted marketing enabling the
company to plan and execute pricing, promotion and distribution of products,
services and ideas.
|
1992
|
Chisnall
|
Marketing means finding a
suitable position in the market
|
1998
|
Baker
|
A series of activities called
the flow of commercial goods and services from producer to final consumer.
|
1998
|
Cohen
|
The marketing activities such
as buying and selling of goods, transport and storage.
|
2011
|
Mei
|
Understanding what people want
and seek in a market and supply and provision of goods and services to meet
their needs and achieve goals.
|
Figure 1: 4Ps
Marketing Mix
(Source: Adopted from McCarthy, 1960)
Traditional
Marketing
There are many
definition in determining traditional marketing in real estate industry.
According to Shima and Varfan (2008) marketing refers to collection process of
customer needs by individuals or groups for goods and services offered by the
companies. The contents of traditional marketing were also developed by Neil
Borden in 1953 which was presented the elements of marketing mix; and the 4Ps
theory by McCarthy in 1960. Then, one of the authors Philip Kotler (2003) who
is expertise in the marketing area was reviewed and rewrote this theory in
their thesis to produce a new marketing mix which are consists of four
important elements of traditional marketing such as product, price, place and
promotion.
In traditional approach, the use of
traditional marketing channel including face to face communications, mouth to
mouth interactions, catalogues, flyers, pamphlets, telemarketing, television,
radio, newspapers and magazines is the most popular techniques a long time ago
in order to attract the number of customer in the market and provide them with
a better products and services based on their wants and needs (Kotler, 2003).
In this theory, planning and executing the conception; pricing; promotion and
distribution of new ideas generation as well as goods and services might become
as a major component of marketing process in creating an individual satisfaction
and organizational objectives.
E-Marketing
There is no single
definition in determining e-marketing. Previous authors was stated that
e-marketing also known as e-marketing in the form of online channels through
email, websites, databases, plus mobile, broadband, wireless and online
television; and it might reveals the relationship of marketing concept and the
technology drives by e-marketing is most effective with other conventional
communication channels (Chaffey, 2002). Meanwhile, according to Urban (2004)
e-marketing is the expansion of information technology from the traditional
purposes. Recent practitioner has found there are seven important elements of e-marketing mix including
e-product, e-price, e-promotion, e-place, e-people, e-process and e-physical
evidence (Adenya, 2012). Several practitioners have
defined that e-marketing as a modern technique and powerful sources adapted
from the traditional approach by using the technological changes via
internet (Caddell, 2013). In addition, the biggest companies will get more
benefit from using new technology to attract customers in the property market
(Corstjens and Umblijs, 2012).
This is because traditional concept
has no power to meet the customer needs in the future; and e-marketing might
become the greatest technique compared to the traditional approach (Corstjens
and Umblijs, 2012). Consequently, previous authors has defined that e-marketing
refers to a new set of instruments to build the customers trust on the products
and services that they had offered in the market (Hsu, 2008). Numerous authors
have found that e-marketing refers to the application of marketing techniques
via internet (Ball and Duval; 2001); and the products or services might offer
at lower prices compared to traditional marketing (Couclelis, 2004). This
techniques might lead to a new business model to enhance company profitability
(Strauss et al., 2008). According to Kotler and Pfoertsch (2007) e-marketing
refers to company efforts in distributing information about their products and
services through electronic devices; and the real estate websites, email
marketing and search engine optimization as the powerful method in building and
maintaining customer relationships (Herbig and Hale, 2007).
Comparison
between Traditional and E-Marketing
In this paper, the
researcher needs to compared two techniques available in the context of real
estate industry between traditional and digital marketing in order to reach the
research objectives. The empirical research from the previous literature has
been used to measure these two methods and it might be shown as follows.
No.
|
Traditional Marketing
|
E-Marketing
|
1
|
Target local audience
|
Target global audience
|
2
|
Need to introduce new brands
|
No need to introduce new
brands
|
3
|
Need to have a tested
product
|
Can access websites for
online video
|
4
|
Good customers interaction
|
Need to have customer
feedback
|
5
|
Cost is higher
|
Cost is cheaper
|
6
|
Difficulties to manage end
result
|
Easily to manage end results
|
7
|
Time consuming
|
Time saving
|
8
|
Small scale
|
Large scale
|
9
|
Lowest return on investment
(ROI)
|
Highest return on investment
(ROI)
|
10
|
Obsolete version
|
Up-to-date version
|
11
|
One-way relationships
|
Two-way relationships
|
12
|
Promote tangible products
|
Promote intangible products
|
13
|
Data cannot be measured
|
Data can be measured
|
14
|
Limited promotion
|
Unlimited promotion
|
15
|
Using print media and
telemarketing
|
Online via internet devices
|
Figure 6: Comparing
Between Traditional and Digital Marketing
(Source: Adapted from Bradley, 2001)
Business
to Customers (B2C) Theory
According
to Saha et al., (2014) business to customer (B2C) is refers to the type of
e-commerce transaction through online marketing or e-tailing in which retailers
or manufacturers selling their products and services to customers via internet.
Recent studies had pointed that B2C consist of various elements such as
catalogue; order planning and generation; cost estimation and pricing; order
fulfillment and delivery; product maintenance; category management; and order
and credit card processing (Kumar and Raheja, 2012). Another studies have been
reported that B2C characteristics include the technology is simple and cheap; a
team focus on branding and marketing; minimizes transaction costs; makes it
simple; makes energy efficiency fun; and social pressure (Chris Williams,
2010). On the other hand, the benefits of B2C through e-marketing include can increase
volume of sales; low risks; purchases are usually made by individually with
negotiations; the companies use more mass media when promoting their brand; and
the demand and supply of products and services might increasing rapidly (Saha
et al., 2014).
Figure 1: Business to Customer (B2C) Theory
Source: Kumar and Raheja, 2012
Factors
Affecting Property Values
According
to Harith (1993) property value can be affected by many factors such as time
duration and ownership, legal factors, physical attributes, and economic
condition. Then, they also had pointed that there are three main factors might influencing
property values in real estate market. The first one is external factors such
as location, neighborhood and accessibility; the second one is integral factors
such as physical conditions of land and building; and the third one is economic
conditions such as national and local economic outlook. In the meantime, Azhari
et al. (1992) had found there are at least twenty-one list of main factors that
can be affected property values such as date of transaction, land area, nature
of transaction, property interest, accessibility and neighborhood condition,
porch area, floor type, fencing type, air well type, lot type, number of bedrooms,
separate bathroom and toilet for master bedroom, kitchen extension, number of
bathroom, number of toilet, kitchen cabinet, gross floor area and building
extension, closed and opened extension, physical improvements and state of
repairs.
However,
there are ten factors that can be reflected residential property values such as
date of transaction, location, fang-sui, lot positioning, floor finishes,
deterioration, landscaping, extension and renovation of the building (Hafiz,
1994). It is important to determine market
value of the property in the future. This is because it can attract the
investors to invest in Malaysia in developing mega project like condominiums or
service apartments for example. Market value of the property can be determined
by using five methods of valuation including comparison method, investment
method, cost method, profit method, residual method and discounted cash-flow
method of valuation (Malaysia Valuation Standard, 2006). The characteristics of
the property need be under consideration are size of the property, the location
to the property, types of property, age of building and the date of valuation. Previous
studies found that the term between fair market value and market value of
International Valuation Standard (IVS) and Malaysian Valuation Standard (MVS)
is equivalent and accepted to be fair by others professions such as accountants
and auditors (Christensen and Nikolaev, 2009).
Market
Value of the Property
Market Value (MV) is the estimated
amount for which a property should exchange on the date of valuation between a
willing buyer and a willing seller in an arm’s-length transaction after proper
marketing wherein the parties had each acted knowledgeably, prudently and
without compulsion (Malaysian Valuation Standard, 2006). Market value is the
important things need to be identified accurately before the transaction of
sale occurs in the market. This is
because to avoid the future risks in the property market which is commonly
known as disequilibrium. Then, this
process also is important to create awareness to the mortgage lenders,
investors, insurers, buyers and sellers of the property to gain a benefit from
understanding of the different methods of real estate valuation. Based on the
MVS (2006) real estate managers are the key players to this action in
determining the accurate market value of the property.
METHODOLOGY
In this study, the
researcher will use Porter Five (5) Forces model to analyse the impact of
e-marketing on sales price of residential property in Malaysia. This model has
the ability to determine weaknesses and strengths of the industry by focusing
on competition in the industry; potential of new entrants into the industry; bargaining
power of suppliers; bargaining power of customers; and threat of substitute
products. The forces are frequently used to measure competition intensity,
attractiveness and profitability of the industry or marketplace. There are
several factors that can be effect these forces; and it might be shown as
figure below.
Type of Force
|
Potential Factors
|
Threat of new entrants
|
The existence of barriers to
entry; government policy; capital requirements; absolute cost; cost
disadvantages independent of size; economies of scale; economies of product
differences; product differentiation; brand equity; switching costs or sunk
costs; expected retaliation; access to distribution; customer loyalty to
established brands; industry profitability; and network effect
|
Threat of substitutes
|
Buyer propensity to substitute;
relative price performance of substitute; buyer switching costs; perceived
level of product differentiation; number of substitute products available in
the market; ease of substitution; substandard product; quality depreciation;
and availability of close substitute
|
Bargaining power of buyers
|
Buyer concentration to firm
concentration ratio; degree of dependency upon existing channels of
distribution; bargaining leverage; buyer switching costs; buyer information
availability; force down prices; availability of existence substitute products;
buyer price sensitivity; differential advantage of industry products;
customer value analysis; and the total amount of trading
|
Bargaining power of suppliers
|
Supplier switching costs; degree
of inputs differentiation; impact of inputs on cost or differentiation;
presence of substitute inputs; strength of distribution channel; supplier
concentration; employee solidarity; and supplier competition
|
Industry rivalry
|
Sustainable competitive advantage
through innovation; competition between online and offline companies; Level
of advertising expense; powerful competitive strategy; firm concentration
ratio; degree of transparency
|
Figure 3: The
Five Competitive Forces that Shape Strategy
(Source:
Adopted from Porter, 2008)
THE
IMPACT OF E-MARKETING IN REAL ESTATE
This chapter presents the impact of
e-marketing on sales price of residential property in Malaysia by using Porter’s Five Forces model including such as threats of new
entrants, threats of substitute products or services, bargaining power of customers,
bargaining power of suppliers and threat of established rivals. This technique
is a popular technique recently in order to analyse the impact of business to
customer (B2C) strategy through ICT technology via internet. From investigation,
the researcher had found eight (8) biggest impact of e-marketing in real estate
that might affect sales price of houses in Malaysia; and it might be discussed
as follows.
Offer
Competitive Price
After analyse
e-marketing using Porter Five Forces model, we had found that supply and demand
might influence house price. When the price is high, the number of purchasers
will decreased; and when the competition is high, supply and demand will
increased rapidly. Based on CIPS Knowledge (2013) price is refers to the sum of
money to acquire products or services; and it might be influenced by supply and
demand. If demand is high, price will increase; and if demand is low, price
will decrease. But, differences for supply theory whereas if supply is high,
price will go down; and if supply is low; price will go up. This theory of
supply and demand need to be understands to acquire the knowledge in respect of
real estate market.
For example, previous
studies have shown that urban areas with a few barriers to construction practice
were increased in house price due to increase in housing demand (Saks, 2008). Meanwhile,
a few studies discover the impact of supply on house price volatility whereas
house price strongly increased in the United States especially in urban areas
with inelastic supply during a boom phase (Glaeser et al., 2008). On the other
hand, recent studies on the volatility of house price and the inflexibility of
regulation of new housing supply have significant relationship at the
city-level in the United States.
Therefore, it can be said that e-marketing might offer a better competitive
price as compared to traditional marketing.
Improve
Developer Cash-Flow
Another impact of
e-marketing in real estate is developer cash-flow can be improved due to
purchasing power made by purchasers before construction stage. At this stage,
the developers start to commercialize their products and services to the
purchasers via internet because they want to reduce construction costs as well
as to improve their cash-flow. The construction costs might be classified into
cost of borrowings, interest rates and malicious charges. As we know, the
current developers need to have at least 30 per cent total of purchasers in
order to borrow money from banks to do new construction project in Malaysia. If
they are unable to get 30% purchasers, the banks will reject their loans to
develop new project.
Based on United Nations
Conference on Trade and Development (2002) improving cash-flow will make
business organization more successful. This is because e-marketing can accelerate
the momentum on supply and demand of real estate in the marketplace. It also might
attract a huge number of purchasers to invest their money in real estate
development project. From here, the developers could minimize their operating
expenses by reducing the inventory; decreasing accounts receivable; negotiating
long-term payables to the suppliers; negotiating deferment of larger payments
in cash-flow event; and trying to borrow money from the bank for additional
funds. Therefore, it can be said
that e-marketing can improve developer cash-flow by minimize expenses that might
occur in real estate development project.
Reduce
Customer Service
According to Lamoureux
(1997) e-marketing via internet can reduce delivery cost; and to ensures
instant delivery of products or services. This is because e-marketing might
offer more choices and flexibility (Kiang and Chi, 2001). Previous authors had
pointed that the ability to serve products and services through distribution
channels by using internet marketing usually shortened the supply chain and
reduced commission and operating costs (Edward et al., 1998). On the other hand,
several authors had stated that communication channels from e-marketing are considered
as one-way communication as compared to two-way communication from traditional
marketing (Angehrn, 1997). But, this approach is still under consideration of
communication error because the study is yet to be done in a proper conduct
(Kiang and Chi, 2001).
From e-marketing
services, it might reduce customer service delivery because there is no need to
conduct face-to-face communications; and it might easier for the purchaser like
agents or developers to commercialise their product in the marketplace. For
example, according to Johnson (2002) online marketing through e-CRM might
reduce customer service costs, personalized marketing message, tightened
customer relationships and mass communication opportunities. The findings show
that customers were satisfied during and after sales progression as compared to
traditional approach using flyers and newspapers (Khalifa et al., 2002).
However, e-marketing in the context of Malaysian perspective is still under
consideration of trustworthiness; and the culture might become great barrier to
success in future real estate marketing.
Increase
Volume of Sales
In this study, the
author was found e-marketing via internet might increase volume of sales in
real estate industry. This is because the customers can use property website
such as Iproperty.com or Propertyguru.com in order to buy a unit of housing or the
area/location that published in relevant websites. They also no need to come
and see the vacant unit that they want; and easier for them to booking the unit
with the agent. Consequently, the agent will attach internal and external
picture of the property together with their contact number for marketing
purposes. Next, they just wait for a call from the respective buyers who is
interested to see the unit. The website that they used might have a huge number
of property listing; and it also familiar and easier for the customers to sort and
search the property that they want.
Based on Close Brothers
Invoice Finance (2016) online sales now account for 10 percent of all retail
spending in the United Kingdom by growing up to 18 percent per year. This is
due to new based-web technologies are changing on how customers learnt about
products or services in order to help them drive traffic to their online store.
However, several practitioners was described that e-marketing might impact
traffic on sales and other marketing activities; and the amount of time that they
spent in order to view a web pages are depending on the accessing site and how
they were using it (Epstein and Yuthas, 2007). On the other hand, Hayes (2013)
had stated that boosting of traffic on sales might increase volume of sales of
the company. This is because company revenue is depends on volume of sales
(Epstein and Yuthas, 2007).
Disintermediation
According to Mazzarol
(2009) there is a greatest impact on e-marketing of real estate by adopting new
technology through internet whereas it might remove or eliminate estate agent
as a middle man in sales transaction between buyer and seller. The concept of
disintermediation is refers to removal of estate agent by a new technology
through online. There is about 87 percent of people nowadays prefer to use the
internet to search the property in the short-run. People are not used
traditional approach because it might take longer time to complete. For
example, Cayley (2006) was found a traditional buyer would inspect an average
of 15.4 properties before they make a final purchase; but an online customer
will visit only 6.1 properties through internet. That mean e-marketing services
might allow the customer to do a purchase online; and for a seller, any
property had not marketed through internet is likely to be disadvantages.
Based on Board of Valuers,
Appraisers and Estate Agents (Act, 1981) real estate agents is refers to
someone who have an experiences in relation to sales transaction of property
and have the authority to practice in giving an information to buyer and
seller; and they will guide them to complete real estate transaction in a
proper conduct. In order to maintain real estate position in the marketplace,
they need to have a critical success factors including in-depth technical
knowledge of the sale activity between buyer and seller of the property; an
understanding of the changed buying process and buyer psyche within the online
environment; superior marketing skills that can optimize expenses on
advertising; and excellent interpersonal skills to built rapport conduct
negotiations and convert enquiries to sales (Cayley, 2006).
Familiar
with Property Transaction
From e-marketing
services, customers will be familiar with property transaction because they can
understand market trends in the selected area or location they want. Before
make a deal with property agents about the unit to purchase, they can sort it
to look the property detail and price offered to the purchasers. However, price
is refers to asking price and it still can be negotiate. Generally, asking
price is higher than market value and it depends on the property demand. After
dealing between seller and purchaser being made, it might result to agreed
price. Consequently, agreed price might refers to market value of property whereas
the existence of a willing seller and a willing buyer in property sales transaction
after proper marketing had been conducted on the date of valuation (Malaysian Valuation Standard, 2006).
According to Yannopoulos
(2011) e-marketing makes customers more convenience to purchase by comparing
products and prices without visiting stores. This is because people currently prefer
to purchase through online marketing via internet rather than offline. They can
quickly find product and price information from a variety of sellers as well as
can get lowest price for a particular products or services that they want. On
the other hand, e-marketing also benefit to everyone especially to investors
who are interested to invest their money in real estate development project as
well in order to make a profit in a future. Last but not least, e-marketing can
give much information to people about property in real estate market; and it
can avoid deception in real estate from unregistered estate agents or
brokerage.
Understanding
Future Developments
In this study,
e-marketing can be used as instruments to indicate future development in real
estate. For example, people might know MRT project will be attached to that
area as well as shopping mall like giant, tesco or econsave in a near future.
This knowledge is most important for the customer before they start to select
the location for their homes or future investment. Furthermore, e-marketing might
give customers certain level of knowledge to predict potential area or location
that suitable for living and as a good investment. Commonly, the investors will
use e-marketing to purchase products or service because it can advise them to
invest in the property by looking at potential development of surrounding
areas. Trends of sales transaction also had been provided to investors for the
next 10 years onwards. Last but not least, e-marketing might give a better
understanding to customers on future developments in real estate.
According to study by Wu
and Brynjolfsson (2013) search engine as Google can be used to predict housing
market trends of future housing market sales and prices. They also described
that there is a positive relationship between housing-related online queries
and the future house price index. However, Choi and Varian (2009) was focused
on using search engine to predict future economic trends in order to forecasting
future house price and quantity for sold purposes. Then, Wu and Brynjolfsson
(2013) might extent their further studies on the urban areas as well as
products and services. Meanwhile, previous authors had pointed that technical
analysis and the underlying economic fundamentals could predict future housing
trends (Han, 2010; Glaeser and Gyourko, 2006). Therefore, it can be said that
e-marketing can predict future developments of real estate by using Google
search engine to determine housing market trends.
Boost
Customer Satisfaction
Last but not least,
e-marketing can boost customer satisfaction in real estate. According to Liu et
al. (2008) they found products and services of the company more effectively
improve customer satisfaction and retention as compared to traditional
approach. From the study of Kim and Stoel (2004) customer might be satisfied
with online shopping experience; and they have no paying attention to this area
of research (Soopramanien and Robertson, 2007). On the other hand, several
practitioners had pointed five antecedents of customer satisfaction for
e-marketing are technical characteristics, products characteristics, homepage
presentation, logistical support and information characteristics (Ho and Wu,
1999). Meanwhile, previous studies also had clarified that customers could be
satisfied with responsiveness and user-friendliness of a search engine; but
dissatisfied with reliability of the search outcome (Mostaghel, 2006).
According to Banfi,
Gbahoue and Schneider (2012) digital customer care or e-care had responds to
customer demand whereas lowering costs can boost customer satisfaction. They
had found that the higher customer satisfaction was provided by e-marketing;
and 15 percent of respondents satisfied with digital channel as compared to
traditional approach. This evidence is clearly stated that purely digital
approach drives customer satisfaction at higher level. In the context of digital
economy currently, e-marketing might boost the level of customer satisfaction
in real estate industry including estate agency practices, property management
office, auction purpose, valuation firms and rating valuation services. This is
because it might depend on the fast customer service feedback and complaint
that exist in real estate websites. Therefore, it can be said that e-marketing
as a key driver to boost customer satisfaction in the future.
CONCLUSION
It can be concluded that e-marketing
is a powerful technique that currently used to commercialized products and
services in the marketplace. From
theoretical contribution, it can be used as a body of knowledge for future
academic researches to extent their knowledge in the impact of e-marketing on
sales price of residential property in Malaysia. This knowledge also can be
used as a benchmark to the potential researcher to gain their knowledge on
e-marketing in real estate industry in Malaysia. From managerial contribution, housing
developer and real estate agents can improve the productivity of real estate by
using ICT technology via internet. This technique is most popular recently; and
it might benefit all of us.
They can
use it to commercialize their products and services; to reduce operational
costs; and to meet customer satisfaction in the future. In addition, this technique also considered as
a new research topic; and it still under consideration of real estate practice.
Furthermore, the impact of e-marketing on sales price of residential property
in Malaysia needs to be well addressed. Last but not least, it can be
recommended there is a need to conduct further study on the relationships among
the variables exists in the study. In addition, e-trust might become as an antecedent to lead the company succeed in e-marketing;
and the need to restructure or redefine the problem is a must in order to
achieve the level of customer satisfaction.
REFERENCES
Alvdary H (1383). "Marketing and market management," Tehran: Payam Noor University
Angehrn, Albert
A., “The Strategic Implication of the Internet,” Proceedings of the 5th
European Conference on
Information Systems, 1997
Azhari Husin and Mohd Ghazali
Hashim (1992), "The construction
ofLand Value Maps using
GIS and MRA.: A case study of residential properties in Johor Bahru"
Faculty
of
Geoinformation
Science & Engineering, UTM.
Baker MJ (1998). The Marketing
Manual. (1 st ed), The Chartered
Instituteb of Marketing
Plant a Tree.
Ball T &
Duval Y (2001). Direct Marketing of farm products via the Internet: A survey of
smallfarms.com members. In
Proceedings of the Third European Conference of EFITA,
Montpellier, France, pp. 415-420
Banfi, F., Gbhoue, B. & Schneider, J. (2013). Higher Satisfaction at a Lower Cost:
Digitalizing
Customer Care. [Electronic].
Recall no. 22 – Digital Marketing by McKinsey.
Board of Valuers, Appraisers and
Estate Agents (1987), "Standard ofvaluation practice".
Borden, N. (1964).
The Concept of Marketing Mix. Journal of Advertising Research , 2,
387-394.
Brueggeman, WB and Fisher,
JD. 1997 (10th Ed.) Real
Estate Finance and Investments.
Boston: Irwin McGraw-Hill.
Cayley, M. (2006) “How the Internet has
Impacted the Buying and Selling of Real Estate in
Australia”, In-House Realty, May [available online]www.inhouserealestate.com.au
Chaffey, D. (2002). "Achieving
marketing objectives through use of electronic communications
technology."
Chisnall PM (1992).
Marketing Research. (4th Ed)
McGraw Hill. Cohen W (1998). Marketing
Managemen. (2nd
edition), Macmillan Publishing Co
Choi, Hyunyoung, and Varian, Hal.
“Predicting Initial Claims for Unemployment Benefits.”
Google
(July 2009): 1-5.
Chris Williams (2010), 6
Characteristics of a Perfect B2C Energy Efficiency Company [online]
September, 3 2010
Christensen, H., &
Nikolaev, V. (2009). Who uses fair value accounting for non-financial assets
after IFRS adoption? University of Chicago Booth School of Business. Working paper,
No. 09-12.
CIPS Knowledge (2013).
Costing and pricing: what the buyer needs to know – Knowledge
Insight. http://www.cips.org/Documents/Knowledge/Procurement-Topics-and-Skills/10
Developing-and-Managing-Contracts/Cost-Reduction/Costing_and_Pricing.pdf
Corstjens, M., &
Umblijs, A. (2012). The power of evil: The damage of negative social media
strongly outweigh positive contributions. Journal
of Advertising Research, 52(4),
pp. 433-449.
Couclelis, H. 2004. “Pizza over the
Internet: E-commerce, the Fragmentation of Activity and the
Tyranny of the
Region.” Entrepreneurship & Regional Development 1(16):41-54.
Dr.
Ayed Al Muala and Dr. Majed Al Qurneh, Assessing the Relationship between Marketing
Mix and Loyalty through
Tourists Satisfaction in Jordan Curative Tourism, American
Academic & Scholarly
Research Journal, Vol. 4, No. 2, November
2012.
Dr. Vinod Kumar, Er.
Gagandeep Raheja (2012). Business to Business (B2B) and Business to
Consumer (B2C) Management, International Journal of Computers & Technology,
Volume 3, No. 3, Nov-Dec, 2012; pp. 447-451.
Dr. Yannopoulos. P. (October, 2011). Impact
of the Internet on Marketing Strategy Formulation.
International
Journal of Business and Social Science, vol.2, no.18.
Edwards, Nick;
Handcock, Sarah; Mullen John, “Electronic commerce: reality bytes,” Supply
Management, Vol.3, No.8:32-34, Apr 9, 1998.
Epstein, M. J. and Yuthas, J. (2007) Management Accounting
Guideline: Evaluating the
effectiveness of Internet Marketing [Online].
Events Iranian GH (1386). "The
most important factor in the marketing mix factors used to
replace carpet
with carpet in Tehran." Tehran: MS
Thesis, University of Science and
Research Branch.
Glaeser, Edward
and Joseph Gyourko, and Raven Saks, “Urban Growth and Housing Supply,"
Journal of Economic
Geography, 2006, 6 pp.
71-89
Glaeser, E.L., Gyourko, J. and
Saiz, A. (2008). ‘Housing supply and housing bubbles’,
Journal of Urban Economics, vol. 64(2),
pp. 198–217.
Goharian MI (1374).
"Management of non-oil exports", Tehran,
Institute of
Business Research
Grönroos, C. (1983).
Defining marketing: A market-oriented approach
Han, Lu, \The
Effects of Price Uncertainty on Housing Demand: Empirical Evidence from the
U.S. Markets," Review of
Financial Studies, 2010, 23 pp. 3889-3928
Herbig, P., & Hale, B.
(2007). Internet: The Marketing Challenge of the Twentieth Century.
Internet Research Electronic Networking Application
and Policy, 7(2),
95-100.
Ho, C. and Wu, W., (1999). Antecedents of
consumer satisfaction on the Internet: an empirical
study of online shopping. Proceedings of the 32nd Hawaii
International Conference on
System Sciences
Hosseini MH (1384).
"International Marketing", Tehran: Payam Noor University.
Hsu, C.C.,
Kannan, V.R., Tan, K.C. and Leong, K.G. (2008) Information sharing, buyer-supplier
relationship, and firm performance:a
multiregion analysis. International Journal of
Physical Distribution and
logistics Management. Vol. 38, Issue 4, pp. 296-310.
Jaworski B
& Kohli A (1993). Market orientation: Antecedents and consequences. Journal
of
Marketing, 57, 53-70.
Khalifa,
Mohamed, and Liu, Vanessa (2002). Satisfaction with Internet-Based Services:
the Role
of Expectations and Desires. International
Journal of Electronic Commerce, Vol. 7, No.
2, pp. 31-50.
Kim, S., &
Stoel, L. (2004). Apparel retailers: website quality dimensions and
satisfaction.
Journal of Retailing and Consumer Services,
11(2), 109–117.
Kotler, P. (2003).
Traditional Marketing Activities. Marketing Management, 9
Kotler, P. & Pfoertsch,
W. (2007). Being known or being one of many: The need for brand
management for business-to-business (B2B)
companies. Journal of Business &
Industrial
Marketing, 22(6), 357–362.
Lamoureux,
Thomas, “IS goes shopping on the web,” Computerworld,
Vol.31, No.46, page106,
Nov, 1997.
Lauren Keller Johnson, (2002), "New
Views on Digital CRM," Sloan Management Review fall,
10.
Lindgreen, A., Palmer,
R. and Vanhamme, J. (2004) Contemporary marketing practice:
Theoretical propositions and practical implications. Marketing Intelligence and Planning,
22 (6). pp. 673-692.
Liu, Y.; Li,
Y.; Tao, L.; and Wang, Y. (2008). Relationship stability, trust and relational
risk in
marketing channels: Evidence from China, Industrial Marketing
Management, Vol.37,
pp.432-446.
Mark Hayes (2013).
4 Magic Words That Increase Sales. Available at: https://www.shopify.com/
blog/7131764-4-magic-words-that-increase-sales. (Accessed: 9 January 2013).
Mei LS (2011). Marketing mix (7P)
and performance assessment ofwestern fast food industry in
Taiwan: An
application by associating DEMATEL and ANP, Afr. J. Bus. Manage.
5(26):10634-10644.
Melody Y. Kiang
& Robert T. Chi (2001). A Framework for Analyzing the Potential Benefits of
Internet Marketing, Journal of
Electronic Commerce Research, Vol. 2, No. 4, 2001;
pp 157-163.
Mohd Hafiz Ahmad (1994), "Penggu"aan kaedah-kaedah
penilaian di dalam praktis bagi menilai
harta tana" perumaha,,", undergraduate
dissertation, Department of Property
Management, Faculty of Geoinfonnation Science and Engineering, UTM.
Mohd Harith Abdul Hamid (1993); "Pengenalan kepada data perbandingan
dalam penilaian dan
sumber-sumber', short notes. Department
of Property Management, Faculty of
Geoinformation Science
and Engineering, UTM.
Narver J &
Slater S (1990). The effect of a market orientation on business profitability. Journal
of Marketing, 54, 20-35
Michael E. Porter (2008). “The Five
Competitive Forces that Shap Strategy”. Harvard
Business
Review, January 2008, pp. 86-104.
Quelch, John
and Loisa Klein (1996). The Internet and International Marketing, Sloan
Management Review Spring, 60-75.
Rana, M. 2006.
Customer Satisfaction Service Quality in Online Purchasing in Iran. Accessed 10
Mar 2012.
http://epubl.ltu.se/1653-0187/2006/58/LTU-PB-EX-0658-SE.pdf
Ranjbariyan B (1378).
"Marketing Management" market, the
publication of the Institute of
Business Research.
Saks, R.E. (2008). ‘Job creation
and housing construction: constraints on metropolitan area
employment
growth’, Journal of Urban Economics, vol. 64(1), pp. 178–95.
Shapiro, B. (1985).
"Rejuvenating the marketing mix". Havard Business Review , pp. 28-34.
Shervani, Tasaddug,
Gary L. Frazier, and Goutam Challagalla (2007), “The Moderating
Influence
of Firm Market Power on the Transaction Cost Economics Model: An
Empirical
Test in a Forward Channel Integration Context,” Strategic Management
Journal 28 (August), 635-652.
Shima, A., & Varfan, M. (2008).
Traditional Marketing vs. Internet
Marketing, A comparison.
Eskilstuna,
Sweden.
Soopramanien,
D. G., & Robertson, A. (2007). Adoption and usage of online shopping: An
empirical analysis of the characteristics of "buyers"
"browsers" and "non-internet
shoppers". Journal of Retailing and Consumer Services, 14, 73-82.
Strauss, J. Frost, R. & Stone,
M. (2008), E-Marketing, NJ, USA, Prentice Hall.
Swapan Kumar Saha, Ashraful
aman, Md. shawkat Hossain, Aminul Islam, Ripa Sarder Rodela
(2014), A Comparative Study On B2B Vs. B2C Based On
Asia Pacific Region,
International Journal of
Scientific & Technology Research, Volume 3, Issue 9,
September 2014.
The Board of Valuers,
Appraisers and Estate Agents, Malaysia (BOVEA) (2006). Malaysian
Valuation Standards. Kuala Lumpur: BOVEA.
Tim
Mazzarol (2012). The Impact of
the Internet on the Future of the Real Estate Industry,
United Nations
Conference on Trade and Development (UNCTAD) (2002), How to Prepare
Your Business Plan.
Urban G., 2004, Digital
Marketing Strategy, Texts and Cases,
Pearson / Prentice Hall, Upper
Saddle River, New Jersey
Wu, Lynn and Brynjolfsson, Erik, The Future
of Prediction: How Google Searches Foreshadow
Housing Prices and Sales (August 30,
2013).
