Housing as a multi-attribute product

Housing is a heterogeneous product and is comprised of various attributes. These attributes are distinct, and each serves to achieve a function(s) individually or in combination with other attributes (Coulombel, 2011:8). Critical in the design and construction of housing are the need to incorporate attributes that provide occupants with a safe, comfortable, healthy and secure environment (Ibem et al., 2013: 178).

Therefore, housing developers bear the performance of attributes in mind when selecting the components of buildings.

It is expected that the design and construction of buildings are executed to conform to established building standards and codes with the expectations of meeting user's

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requirements (Jiboye, 2012:236; Ibem et al., 2013: 179). However, Ukoha and Beamish (1999:445), in an earlier study reasoned that simply designing and constructing buildings in accordance with standards and professional regulations is not a sufficient guarantee of the success of housing projects. What does guarantee success is the delivery of quality housing that the resident needs. This view is in agreement with Al-Noori (1987:1) who holds that satisfaction with housing attributes is the ultimate test of the success of a housing development project.

In other words, how residents evaluate and respond to housing attributes in satisfying their needs and expectations have important consequences on housing investment.

Despite the significance of housing environment attributes as drivers of resident satisfaction, the consideration and application of findings of residential satisfaction studies are often neglected in design and construction. Okolie (2009:1603) observes in a study of educational facilities that inputs from users are rarely sought in the development of properties. Therefore, residents are often forced to live with the shortcomings of their housing environment.

This experience may not be totally true especially in rented properties where satisfaction with, or lack of satisfaction with the housing environment, may lead to inevitable consequences. Wong (2002:220) observes that as changes occur in the needs and expectation of residents, adjustments are expected to be made to accommodate these changes. Residential users may either improve existing dwellings and stay, switch residences or stay as dissatisfied users. According to Al-Noori (1997:1), a variety of design and construction concerns are responsible for users’

dissatisfaction with their residential environment and these include:

• Lack of detailed knowledge of user needs;

• Failure to predict the reasons why users are dissatisfied with a housing environment; and

• emphasis on professional design priority over user needs and requirements.

The attributes of the residential environment that attract users to housing are categorised in literature as follows (Wong, 2002:219; Amole, 2009:77);

• physical/structural aspects;

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• location/neighbourhood aspects;

• environment aspects;

• management aspects; and

• social aspects.

In essence, the primary objective of building design and construction is to create a housing environment with the right combination of attributes that are relevant to user satisfaction.

A well designed and constructed building increases the satisfaction of occupants with residence. The satisfaction of users/customers/tenants is unquestionably an important organisational goal as it leads to a more profitable relationship between the client and the firm over time (Eisingerich et al., 2013:1). Deng, Kuo and Chen (2008:37) recognise that customer satisfaction is one of the principal drivers of profitability for a business. Therefore, when customers are satisfied with a product, there are consequences and these include:

• higher levels of loyalty and retention (Anderson & Sullivan, 1993; Strauss &

Neuhaus, 1997);

• the willingness to pay a premium price (Greene & Ortuzar, 2002:84; Homburg, Koschate & Hoyer, 2005:85);

• positive word of mouth (Eisingerich et al., 2013:1).

Therefore, for a business to grow, the focus must be to fulfil user's needs and expectations (Yang & Zhu, 2006: 667). Firms or organizations that do well in maintaining customer satisfaction with products are more likely to realize the business economic goals of real returns and profit (Strauss & Neuhaus, 1997: 236). It follows therefore, that investors who keep their customers satisfied with their products or services at all times would be more likely to succeed in business (Tontini, 2007: 600).

Keeping residents satisfied with housing products is not simple, as each building is composed of multiple attributes, with each yielding a different level of satisfaction to the residents. Consequently, the increasing understanding that a house is a bundle of attributes with each of these attributes responding to the particular needs of users is leading users and investors to rethink on the content of housing (Wong, 2002: 218;

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Greene & Ortuzar, 2010: 56). This is in agreement with Lancaster’s (1991:13) proposition that “good per se does not give satisfaction to the consumer, but the characteristics that it possesses that give rise to satisfaction”.

The contribution of the different attributes to the overall users’ satisfaction is, therefore, very relevant to the success of housing development. Thus, a building that is composed of attributes that are highly valued by residents is more likely to have a superior competitive advantage over those that are not. Accordingly, Green and Ortuzar (2010:56) maintain that patronage and positive returns on housing investment are linked to the individual and combined contribution of attributes of housing to satisfaction. The study further reveals that the knowledge of the impact of attributes on resident satisfaction is useful in defining the following:

• good value for money;

• the most appropriate combination of attributes for different classifications of tenants; and

• how to consolidate minimum housing requirements into housing packages without losing sight of budget constraints.

To the knowledge of the researcher, the optimal combination of housing attributes that are critical to resident satisfaction and the effects on behaviour are not adequately researched.