Herding Behaviour in the Purchasing Decision for Serviced Apartments in Klang Valley
The number of serviced apartments has grown tremendously, especially in the city center, due to the high demand for "trendy" housing with a comfortable environment, connectivity to roads and transport hubs, along with niche facilities and amenities. There is, however, a possibility that herding behaviour could influence the purchaser's preferences criteria, eventually leading to their purchasing decisions. While most studies proved that herding behaviour gained the most attention in terms of the stock market compared to decisions in the real estate market, others presented inconclusive findings. Studies on the influence of herding behaviour and the purchasing trend of real estate, especially for serviced apartments are scarce. This study, therefore, aims to determine the importance of herding behaviour on homebuyer's purchasing decisions for serviced apartments. A questionnaire was designed based on three behaviour elements as independent variables, with four items for each independent variable. This quantitative study employed questionnaire distributed to 230 serviced apartment residents through a purposive sampling method in six districts within Klang Valley. One hundred and eighty-eight valid responses were collected. The data were then analysed using descriptive analysis. The finding shows that "Emotional Contagion, Facial Mimicry, and Mirror Neurons" is the highest herding behaviuor influencing customers' preference for purchasing a serviced apartment. This study helps potential owners make a wise decision when purchasing residential properties, and provides crucial information for developers to improve the sustainability of residential area by understanding the purchasers’ behaviour preferences.
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