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1 – 10 of 77Zoltán Pápai, Péter Nagy and Aliz McLean
This study aims to estimate the quality-adjusted changes in residential mobile consumer prices by controlling for the changes in the relevant service characteristics and quality…
Abstract
Purpose
This study aims to estimate the quality-adjusted changes in residential mobile consumer prices by controlling for the changes in the relevant service characteristics and quality, in a case study on Hungary between 2015 and 2021; compare the results with changes measured by the traditionally calculated official telecommunications price index of the Statistical Office; and discuss separating the hedonic price changes from the effect of a specific government intervention that occurred in Hungary, namely, the significant reduction in the value added tax rate (VAT) levied on internet services.
Design/methodology/approach
Since the price of commercial mobile offers does not directly reflect the continuous improvements in service characteristics and functionalities over time, the price changes need to be adjusted for changes in quality. The authors use hedonic regression analysis to address this issue.
Findings
The results show significant hedonic price changes over the observed seven-year period of over 30%, which turns out to be primarily driven by the significant developments in the comprising service characteristics and not the VAT policy change.
Originality/value
This paper contributes to the literature on hedonic price analyses on complex telecommunications service plans and enhances this methodology by using weights and analysing the content-related features of the mobile packages.
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Olivier Gergaud and Florine Livat
This paper aims to model the price of cellar tours using a hedonic pricing approach. The authors analyze the complex relationship between the price of an add-on (here, cellar…
Abstract
Purpose
This paper aims to model the price of cellar tours using a hedonic pricing approach. The authors analyze the complex relationship between the price of an add-on (here, cellar tours) and the price of the reference product (here, wine).
Design/methodology/approach
Thanks to a large database containing information on about 1,000 winery experiences, the authors regress the price of cellar tours on wine prices and on a broad set of objective characteristics that are (1) tour specific and (2) common to all tours offered by the winery. These exogenous controls include the type and style of experience offered, amenities and winemaking characteristics.
Findings
The authors show that the price of cellar tours follows the price of the most expensive wine sold by the winery, which is a proxy for reputation. The authors find that one of the main determinants of cellar tour prices is visit length: wineries charge more for longer experiences. The number of wines tasted during the visit also increases the price. Prices are higher in places where there is a high level of wine tourism activity, which might be a sign of authenticity.
Practical implications
Wine producers in different countries need to gain insights on how to price cellar tours, which are composite goods. The results can help practitioners price their winery experience according to common practices in different wine regions. The results may also be of interest to professionals in the tourism sector who are in charge of the pricing of by-products (e.g. tee-shirts, books, etc.), or for luxury fashion labels extending their brand in the catering industry with cafes and restaurants.
Originality/value
To the best of the authors’ knowledge, this paper is the first empirical analysis that examines the complex relationship between the price of an add-on and the price of the reference product in the context of wine tourism.
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This paper aims to explore the relationship between market pricing and design quality within the development industry. Currently, there is a lack of research that examines real…
Abstract
Purpose
This paper aims to explore the relationship between market pricing and design quality within the development industry. Currently, there is a lack of research that examines real estate at the property level. Development quality is widely believed to have diminished over the past decades, while many investors seem uninterested in the design process. The study aims to address these issues through a pricing model that integrates design attributes. It is hoped that empirical findings will invite broader stakeholder interest in the design process.
Design/methodology/approach
The research establishes a framework for assessing spatial compliance across residential developments within London. Compliance is assessed across ten boroughs, with technical space guidelines used as a proxy for design quality. Transaction prices and spatial assessments are aligned within a hedonic pricing model. Empirical findings are used to establish whether undermining spatial standards presents a significant development risk.
Findings
Findings suggest a relationship between sale time and unit size, with “compliant” units typically transacting earlier than “non-compliant” units. Almost half of the 1,600 apartments surveyed appear to undermine technical guidelines.
Research limitations/implications
It is suggested that an array of design attributes be explored that extend beyond unit size. Additionally, future studies may consider the long-term implications of design quality via secondary transaction prices.
Practical implications
Practical implications include the development of a more scientific approach to design valuation. This may enhance the position of product design management within the development industry and architectural services.
Social implications
Social implications may include improvement in residential design.
Originality/value
An innovative approach combines a thorough understanding of both design and economic principles.
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Seyed Abbas Rajaei, Afshin Mottaghi, Hussein Elhaei Sahar and Behnaz Bahadori
This study aims to investigate the spatial distribution of housing prices and identify the affecting factors (independent variable) on the cost of residential units (dependent…
Abstract
Purpose
This study aims to investigate the spatial distribution of housing prices and identify the affecting factors (independent variable) on the cost of residential units (dependent variable).
Design/methodology/approach
The method of the present study is descriptive-analytical and has an applied purpose. The used statistical population in this study is the residential units’ price in Tehran in 2021. For this purpose, the average per square meter of residential units in the city neighborhoods was entered in the geographical information system. Two techniques of ordinary least squares regression and geographically weighted regression have been used to analyze housing prices and modeling. Then, the results of the ordinary least squares regression and geographically weighted regression models were compared by using the housing price interpolation map predicted in each model and the accurate housing price interpolation map.
Findings
Based on the results, the ordinary least squares regression model has poorly modeled housing prices in the study area. The results of the geographically weighted regression model show that the variables (access rate to sports fields, distance from gas station and water station) have a direct and significant effect. Still, the variable (distance from fault) has a non-significant impact on increasing housing prices at a city level. In addition, to identify the affecting variables of housing prices, the results confirm the desirability of the geographically weighted regression technique in terms of accuracy compared to the ordinary least squares regression technique in explaining housing prices. The results of this study indicate that the housing prices in Tehran are affected by the access level to urban services and facilities.
Originality/value
Identifying factors affecting housing prices helps create sustainable housing in Tehran. Building sustainable housing represents spending less energy during the construction process together with the utilization phase, which ultimately provides housing at an acceptable price for all income deciles. In housing construction, the more you consider the sustainable housing principles, the more sustainable housing you provide and you take a step toward sustainable development. Therefore, sustainable housing is an important planning factor for local authorities and developers. As a result, it is necessary to institutionalize an integrated vision based on the concepts of sustainable development in the field of housing in the Tehran metropolis.
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B.V. Binoy, M.A. Naseer and P.P. Anil Kumar
Land value varies at a micro level depending on the location’s economic, geographical and political determinants. The purpose of this study is to present a comprehensive…
Abstract
Purpose
Land value varies at a micro level depending on the location’s economic, geographical and political determinants. The purpose of this study is to present a comprehensive assessment of the determinants affecting land value in the Indian city of Thiruvananthapuram in the state of Kerala.
Design/methodology/approach
The global influence of the identified 20 explanatory variables on land value is measured using the traditional hedonic price modeling approach. The localized spatial variations of the influencing parameters are examined using the non-parametric regression method, geographically weighted regression. This study used advertised land value prices collected from Web sources and screened through field surveys.
Findings
Global regression results indicate that access to transportation facilities, commercial establishments, crime sources, wetland classification and disaster history has the strongest influence on land value in the study area. Local regression results demonstrate that the factors influencing land value are not stationary in the study area. Most variables have a different influence in Kazhakootam and the residential areas than in the central business district region.
Originality/value
This study confirms findings from previous studies and provides additional evidence in the spatial dynamics of land value creation. It is to be noted that advanced modeling approaches used in the research have not received much attention in Indian property valuation studies. The outcomes of this study have important implications for the property value fixation of urban Kerala. The regional variation of land value within an urban agglomeration shows the need for a localized method for land value calculation.
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Xiaojie Xu and Yun Zhang
Understandings of house prices and their interrelationships have undoubtedly drawn a great amount of attention from various market participants. This study aims to investigate the…
Abstract
Purpose
Understandings of house prices and their interrelationships have undoubtedly drawn a great amount of attention from various market participants. This study aims to investigate the monthly newly-built residential house price indices of seventy Chinese cities during a 10-year period spanning January 2011–December 2020 for understandings of issues related to their interdependence and synchronizations.
Design/methodology/approach
Analysis here is facilitated through network analysis together with topological and hierarchical characterizations of price comovements.
Findings
This study determines eight sectoral groups of cities whose house price indices are directly connected and the price synchronization within each group is higher than that at the national level, although each shows rather idiosyncratic patterns. Degrees of house price comovements are generally lower starting from 2018 at the national level and for the eight sectoral groups. Similarly, this study finds that the synchronization intensity associated with the house price index of each city generally switches to a lower level starting from early 2019.
Originality/value
Results here should be of use to policy design and analysis aiming at housing market evaluations and monitoring.
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Chin Tiong Cheng and Gabriel Hoh Teck Ling
Increasing overhang of serviced apartments poses a serious concern to the national property market. This study aims to examine the impacts of macroeconomic determinants, namely…
Abstract
Purpose
Increasing overhang of serviced apartments poses a serious concern to the national property market. This study aims to examine the impacts of macroeconomic determinants, namely, gross domestic product (GDP), consumer confidence index (CF), existing stocks (ES), incoming supply (IS) and completed project (CP) on serviced apartment price changes.
Design/methodology/approach
To achieve more accurate, quality price changes, a serviced apartment price index (SAPI) was constructed through a self-developed hedonic price index model. This study has collected 1,567 transaction data in Kuala Lumpur, covering 2009Q1–2018Q4 for price index construction and data were analysed using the vector autoregressive model, the vector error correction model and the fully modified ordinary least squares (OLS) (FMOLS).
Findings
Results of the regression model show that only GDP, ES and IS were significantly associated with SAPI, with an R2 of 0.7, where both ES and IS have inverse relationships with SAPI. More precisely, it is predicted that the price of serviced apartments will be reduced by 0.56% and 0.21% for every 1% increase in ES and IS, respectively.
Practical implications
Therefore, government monitoring of serviced apartments’ future supply is crucial by enforcing land use-planning regulations via stricter development approval of serviced apartments to safeguard and achieve more stable property prices.
Originality/value
By adopting an innovative approach to estimating the response of price change to supply and demand in a situation where there is no price indicator for serviced apartments, the study addresses the knowledge gap, especially in terms of understanding what are the key determinants of, and to what extent they influence, the SAPI.
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Siti Hafsah Zulkarnain and Abdol Samad Nawi
The purpose of this study is to analyse numerous aspects affecting residential property price in Malaysia against macroeconomics issues such as gross domestic product (GDP)…
Abstract
Purpose
The purpose of this study is to analyse numerous aspects affecting residential property price in Malaysia against macroeconomics issues such as gross domestic product (GDP), exchange rate, unemployment and wage.
Design/methodology/approach
The hedonic pricing model has been adopted as econometric model for this research to investigate the relationship between residential property price against macroeconomics indicator. The data for residential property price and macroeconomic variables were collected from 1991 to 2019. Multiple linear regression had been adopted to find the relationship between the dependent and independent variables.
Findings
The result shows that the GDP has a significant positive impact on residential property price, while exchange rate has no significant impact although it was positive. In addition, the unemployment rate has a significant impact on the residential property price and has a negative relationship. Similar to the wage that shows the negative relationship with residential property prices. Moreover, during the pandemic COVID-19 in Malaysia, this research shows a more transparent view of the relationship between residential property price and the macroeconomic issues of GDP, exchange rate, unemployment and wage.
Originality/value
The findings of this research found that macroeconomics issue cannot be eliminated due to Malaysia is a developing country, and there will always be an issue that will happen, but the issues can be reduced to maximise the advantages, e.g. during COVID-19, the solution to fight against COVID-19 were crucial and weaken the macroeconomics issues.
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Sanjay Gupta, Sahil Raj, Aashish Garg and Swati Gupta
The primary purpose of this study is to examine the factors leading to shopping cart abandonment and construct a model depicting interrelationship among them using interpretive…
Abstract
Purpose
The primary purpose of this study is to examine the factors leading to shopping cart abandonment and construct a model depicting interrelationship among them using interpretive structural modeling (ISM) and Matriced Impact Croises Multiplication Appliquee an un Classement (MICMAC).
Design/methodology/approach
Initially, 20 factors leading to shopping cart abandonment were extracted through a systematic literature review and expert opinions. Fifteen factors were finalized using the importance index and CIMTC method, for which consistency has been checked in SPSS software through a statistical reliability test. Finally, ISM and MICMAC approach is used to develop a model depicting the contextual relationship among finalized factors of shopping cart abandonment.
Findings
The ISM model depicts a technical glitch (SC8), cash on delivery not available (SC4), bad checkout interface (SC9), just browsing (SC11), and lack of physical examination (SC12) are drivers or independent factors. Additionally, four quadrants have been formulated in MICMAC analysis based on their dependency and driving power. This facilitates technical managers of e-commerce companies to focus more on factors leading to shopping cart abandonment according to their dependency and driving power.
Research limitations/implications
Taking an expert’s opinion as a base may affect the results of the study due to biases based on subjectivity.
Practical implications
This study’s outcomes would accommodate practitioners, researchers, and multinational or national companies to indulge in e-commerce to anticipate factors restricting the general public from online shopping.
Originality/value
For the successful running of an e-commerce business and to retain the confidence of e-shoppers, every e-commerce company must make a strategy for controlling factors leading to shopping cart abandonment at the initial stage. So, this paper attempts to highlight the main factors leading to shopping cart abandonment and interrelate them using ISM and MICMAC approaches. It provides a clear path to technical heads, researchers, and consultants for handling these shopping cart abandonment factors.
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