The effect of long-term installments on customers’ purchase intentions in the real estate industry applied on Tatweer Misr

Abstract

Purpose The main aim of this research is to test whether customers would prefer buying apartments with long term installments or not. And if the incentives that all real estate developers offer are effective and tend to increase customer intentions to buy an apartment. Specifically, that the whole market is saturated with long term installment plans nowadays. Methodology The researchers will perform a variety of aspects, steps, and analysis as part of the research methodology in order to fully understand and try to solve the research problem which is the buying intentions towards the real estate sector, particularly with long-term installments, in depth interviews were conducted with two experts from Tatweer Misr to provide us with sufficient information and we also conducted online questionnaire as we gathered 204 responses to know their opinion on long term installments. Results: Researches found that there was no relationship between the grace period and customers’ purchase intentions however, there was a relationship between tailoring payment plans and customers’ purchase intention, and there was a relationship between rescheduling payment plan and customers’ purchase intention. Conclusion The purpose of this research is to determine the effect of long-term installments on customers purchase intentions. According to hypothesis one, there is a negative relationship between extending the grace period and the customers purchase intentions so hypothesis one was rejected. According to the second hypothesis two, there is a positive relationship between tailoring payment plans and customers purchase intentions. Therefore, Hypothesis 2 is accepted. According to the third and last Hypothesis, there is a relationship between re-scheduling the payment plans and the customers purchase intentions the results of the research were supported with each other, which indicates that there is a relationship between re-scheduling the payment plans with penalty and the customers purchase intentions.