Identifying Analyzing the Factors Increase

Customer satisfaction in the real estate section

in Bangladesh.

Submitted By:
Md. Mahedi Hasan

Submitted To:
Department of Business Administration

Atish Dipankar University of Science & Technology (ADUST)

November, 2014

Identifying Analyzing the Factors Increase

Customer satisfaction in the real estate section
in Bangladesh.

Identifying Analyzing the Factors Increase

Customer satisfaction in the real estate section in
Bangladesh.

Submitted By:
Md. Mahedi Hasan
ID : 141-0217-131
Program: BBA

Submitted To :
Md. Shahidur Rahman Khan

Lecturer
Department of Business Administration

Atish Dipankar University of Science & Technology (ADUST)

November, 2014

Letter of Transmittal
November 2014
Md. Shahidur Rahman Khan
Lecturer
Department of Business Administration
Atish Dipankar University of science & Technology (ADUST)

Subject: Submission of internship report.

Dear Sir,
I would like to submit the report on Identifying Analyzing the Factors Increase
Customer satisfaction in the real estate section in Bangladesh : Evidence from Vertex
Developers LTD company that you assigned me as partial fulfillment of my BBA degree.
In preparing the report I collected and analyzed all the pertinent information.
While preparing this report, I tried to put my best efforts to make this report a comprehensive
one. I came to know many things related to the features, facilities related to the real estate
services and also gather a vast knowledge about the real field experience regarding real estate
performance. In spite of my best effort, several limitations caused my report to possess some
shortcomings.
I, therefore, would like to place this report to your judgment and suggestion.

Sincerely yours,
Md. Mahedi Hasan
ID # 141-0217-131
Department of Business Administration
Atish Dipankar University of science & Technology (ADUST)

Student Declaration
I am Md. Mahedi Hasan here declaring that this report entited to Identifying Analyzing
the Factors Increase Customer satisfaction in the real estate section in Bangladesh :
Evidence from Vertex Developers LTD company has been written by me during year of
2014 under the valuable guidance of Md. Shahidur Rahman Khan, Lecturer, Department of
Business Administration, Atish Dipankar University of science & Technology (ADUST)
in fulfillment of the requirements for the award of BBA. I am also declaring that I have not
submitted this report for any degree, diploma and title recognition before.

Md. Mahedi Hasan

Department of Business Administration
Atish Dipankar University of science & Technology (ADUST)

Supervisor Certification
This is to certify that Mahedi Hasan a student of BBA (Hons), successfully completed his
Internship entitled titled Identifying Analyzing the

Factors Increase Customer

satisfaction in the real estate section in Bangladesh : Evidence from Vertex Developers
LTD company under my supervision as the partial fulfillment for the award of BBA degree.
He has done his job according to my supervision and guidance. He has tried his best to do
this successfully. I think his program will help him in the future to build up his career. I wish
his success and prosperity.

Signature
Md. Shahidur Rahman Khan
Assistant Professor & Chairman
Department of Business Administration
Atish Dipankar University of science & Technology (ADUST)

Acknowledgement
I express my sincere gratitude and thanks to my program supervisor Md. Shahidur Rahman
Khan, Lecturer, Department of Business Administration, Atish Dipankar University of
science & Technology (ADUST) for his brilliant and excellence guidance and assistance to
complete this report.
On the other hand, I am really thankful from my deep heart to A S M Atiqur Rahman, Head
of Marketing, Head Office, Vertex Developers Ltd., Plot # 415, 1 st Floor, Road # 30, New
DOHS, Mohakhali, Dhaka- 1206. I also wish to express my gratitude to dear Mr. Azharul
Islam, Senior vice-President of, of the company. Vice-President and many special thanks to
Mr. Md. Masum, Senior Officer, Vertex Developers Ltd., Plot # 415, 1 st Floor, Road # 30,
New DOHS, Mohakhali, Dhaka- 1206, for solving my problems with a smiling face.

I am again expressing my special gratitude to all.

Executive Summary
The purpose of this study is to discuss and elaborate the main issues of factors determining
the Real Estate Companys performance in Bangladesh: evidence from Vertex Developers
Ltd.. It is a co relational study which measures the relationships among the studied variables
in order to achieve this purpose first analyses brand name policy, price of the apartment,
quality of the apartment and advertising policy of the company. Those variables are directly
related to improving the performance of the company and customer satisfaction. To complete
the task I found in real estate business brand name, marketing strategy and maintain the
quality is the main key issue to success the business. Brand equity can create advantages and
benefits for the firm, the trade or the consumer to purchase the product. The study
investigated factors such as incomes of Real Estate Company depend on location, quality, and
demand related price. To complete this research use different tools there are solving the
questioner, personal interview and analysis the secondary data. The analysis of standard
deviation from the questioner the result, have the positive relationship between the Factors
Determining the Real Estate Companys performance in Bangladesh: evidence from Vertex
Developers Ltd..

Table of Contents
Topics

Page No

Letter of Transmittal..
Student Declaration...........................................................................................
Supervisor Certification.
Acknowledgement.
Executive Summary
CHAPTER 1: INTRODUCTION
1.0: Introduction
1.1: Background of the study
1.2: Significance of the study...
1.3: Hypothesis.
1.4: Objective of the study
CHAPTER 2: METHODOLOGY OF THE STUDY
2.0: Methodology..
2.1: Research Design.
2.2: Data Collection..
2.3: Primary Data.............................................................................................
2.4: Secondary Data.
2.5: Limitation Of The Study
CHATRER 3: LITERATURE REVIE
3.0: Literature Review..
CHAPRER 4: COMPATATIVE ANALYSIS
4.0: SWOT Analysis
4.1: Strengths Analysis
4.2: Weakness Analysis
4.3: Opportunities Analysis
4.4: Threats Analysis
CHAPTER 5: FINDING & ANALYSIS
5.0: Finding..
CHAPTER 5: RECOMMENDATION & CONCLUSION
5.0: Recommendation..

10

5.1: Conclusion
CHAPRET 6: REFERENCES & BIBLIOGRAPHY

11

CHAPTER 01
INTRODUCTION

12

1.0.0 Introduction:
Real Estate Company is financial institution whose status, rules and procedures expressly
state its commitment to the principles of Limited Companies Act 1994 and to the banning of
the receipt and payment of interests on any of its operations. There are five basic needs in
human life. Housing is one of those and is very essential for every people. Real Estate
Industries are working to provide residences for those people who would like to buy
apartment to live in a luxurious and peaceful condition. Besides, this industry also has created
a large number of jobs in the job market. Thousands of backward linkage industries such as:
Brick, Sand, Ceramic, Sanitary wears industry etc. have set up on the base of real estate
industries. So, it is playing a great role in our national economy as it has a huge impact on the
countrys revenue collection. There are about five hundred real estate Companies in our
country. All the companies are not well recognized by the people. Many of the companies do
not fulfill their commitment. Unfortunately many people have lost their faith on few
developers, and to satisfy those people. Vertex Developers Ltd. has taken the challenge and
trying to do the best. Vertex Developers Ltd. is one of the fast growing Real estate Company.
It is very new in the Real Estate market but I found peoples behind it are very experienced
and professional. In this report I tried to go through a total look at the overall Real Estate
business in Bangladesh to make the report better informative and meaningful so that the
readers will be able to get a simple idea about the Real Estate sectors history, nature and
style of business, services etc. In this research I tried to focus on the four parameters which
basically signify independent variables of Vertex Developers Ltd. brand name, price of the
apartment, quality and advertising policy those are influence towards the dependent variable
(Real Estate Companys Performance). On the other hand the primary purpose of this
research is to get an idea about the real estate business in Bangladesh. To examine the present
factors that influence to Real Estate Company boom. To examine how they are satisfied their
customer in competitive market.

1.1.0 Background of the study

Before launching a new product or service, run a feasibility study on the size and
demographics of the market to determine its potential. Analyze existing competitors to see if
your company will be able to break into the market. Saturated markets are not always bad.
Having several established competitors indicates that there is money to be made in that

13

industry. However, your feasibility study may reveal that your company does not have the
resources to compete, so you narrow your focus to a smaller niche market instead. In this
case, the feasibility study stopped you from making a costly mistake and crippling your
product before it became established.
Estimate the costs of running your day-to-day operations. Add in the budget from any
planned expansions to find the total amount of funding you need to stay afloat. Cash flow
feasibility studies are often requested by lenders or investors to evaluate the risk level of the
business. If your company is just starting out, your feasibility study should predict the amount
of time until the company breaks even. Consider possible negative outcomes to determine the
effect on your timeline, such as a decline in the current customer base.

1.2.0 Significance of the study :

According to the Urban Land Institute, during the mid-1990s strong academic interest in real
estate "was never greater, whether for repositioning products, redeveloping inner cities, or
developing more affordable housing. Students seemed to be acting on the notion that it's a
temporary downturn and graduate school is a good place for the moment." As enrollment
grew, real estate programs responded by adding more course offerings to satisfy the demand.
In the early 2000s, prior to the Great Recession, the industry again acknowledged increasing
need for graduates with superior qualifications providing the research-based expertise
necessary to solve complex problems in contemporary real estate development.
The late 2000s saw significant expansion of real estate programs to second-tier universities
such as George Mason University, as well as additional coursework added by MBA programs
that commonly did not have an emphasis on real estate. To deal with the complexity of the
field and its far-reaching effects, today's industry professionals require advanced training to
prepare them to operate in increasingly technical and interrelated areas.

1.3.0 Scope of the study

As I was an intern; my scope was very much limited and restricted. I had maintained some
official formality for the collection of data of my report.

14

1.4.0 Objective Of The Study

1.4.1 Major Objective :

The broad objective of the study is to prepare report on identifying the factors
increasing Real Estate Sector development in Bangladesh.

1.4.2 Specific Objective :

To identify the problem of Bangladesh Real Estate Companies.

To recommend suggestions for the Management

To identify the factors that affect real estate companies in Bangladesh.

To identify the factors that influence the performance the real estate companies.

Prospect of real estate companies.

15

CHAPTER 02
RESEARCH METHODOLOGY OF THE
STUDY

16

2.0.0 Research Methodology: The study requires a systematic procedure from selection
of the topic to preparation of the final report. To perform the study, the data sources were to
be identified and collected, to be classified, analyzed, interpreted and presented in a
systematic manner and key points were to be found out. The overall process of methodology
has been given as below.

2.0.1 Research Design This is an Exploratory Research, which briefly reveals the
overall activities of Vertex Developers LTD company and also analyzes the housing
availability in Bangladesh. Both primary and secondary data have been collected to conduct
this report. I have gathered primary data by personal interview of the Executives of CBL.
Mainly I discussed with them verbally. I collected information from them and the annual
report, journals, brochures, manuals and several books on Housing to prepare this report.
Some of the informations are collected from bank, articles, workshop and others are
collected from the books as well as the information provided by the competitive banks. In
short, the sources of data outlined below

2.1.0 Data Collection Method:

To carry out the study both primary and secondary sources of data is being utilized.

2.1.1 Primary Data Sources:

For the study primary data has collected through questionnaire. The questionnaire is used to
collect qualitative data and quantitative data. In order to collect primary data I have taken
interview of the customers. I have also conduct a face to face interview of some of the
employees.

2.1.2 Secondary Sources:

The secondary data have been collected from different publications of Real Estate companies
in Bangladesh, publications of Real Estate Housing Association of Bangladesh (REHAB),
Annual Reports of the firm, Visit the VERTEX DEVELOPERS LTD COMPANY website
and Magazines of the real estate company.

17

2.2.0 Research Question:

1. Is there any relationship between Real Estate Companys brand name policies and Real
Estate Companys performance?
2. Is there any relationship between Real Estate Companys pricing policies and real estate
Companys performance?
3. Is there any relationship between Real Estate Companys quality policies and Real Estate
Companys performance?
4. Is there any relationship between Real Estate Companys advertising policies and Real
Estate Companys performance?

2.3.0 Limitation of the study :

To prepare this research, I have faced some limitations, which are disrupted the fulfillment of
this report. Sometimes it was very difficult to get sufficient help from the employees due to
their limited executive hours. There is no sufficient informative Web site of The Vertex
Developers LTD company.
They did not give me exact information for maintaining their secrecy. Unavailability of
previous research work in Bangladesh.

18

1. Applications for allotment of apartments should be made on the prescribed application

form duly signed by the applicant along with the booking Money.
2. On acceptance of an application, the Company will issue an allotment letter to the
applicant on which the applicant / allottee shall start making payment as per above
payment Schedule. Allotment of apartment is made on first come first serve basis.
3. Payments of earnest money, installments, car park, costs. Additional works and other
charges shall be made by A/C payee cheque / Bank draft or Pay order against which
respective receipts will be issued. Bangladesh is residing aboard may remit payments in
foreign exchange by TT or DD.
4. Payments of installments and all other charges are to be made on the due dates. The
Company may issue reminders to the allottee, but notwithstanding the issue of
reminders, the allottee must adhere to the Schedule to ensure timely completion of
construction.
5. That the time so fixed for the payment of the cost of construction being the essence of
this Agreement, the Purchaser shall positively make the installment payments within the
due dates stipulated herein above. If the Purchaser fails to make a payment within the
stipulated due date the Builder may charge 2.0 % per month interest on the installment
due from the date that the installment was payable, but in the event of the default
continuing for 60 (Sixty) Days or more, the Builder shall have the right to cancel the
allotment of the Apartment.
6. In case of any cancellation of booking of an apartment by client, the amount deposited
amount will be refunded after selling of that apartment to the new buyer and on
deduction of incidental charges of 10% only on total amount.
7. The car parking location will be distributed to the allottee those who paid for car
parking space will be given preference through lottery at the time of handover. However
car parking space will be provide through lottery among rest other alloties.
8. The company may make minor changes in the design and specification of the project
should those become necessary like: beautification of the project, architectural point of
view or for mutual interest without floor area variation.
9. The Company may cancel an allotment on non-payment of installments and disregard of
reminders and after final intimation to allottee by registered post at the address given in
the application form.
10. The possession of each apartment shall be duly handed over to the allottee on
completion and on full payment of installments and other charges and dues and till then
the possession will rest the company.
19

11. The allottee will pay stamp duties, registration fees, documentation charges and other
miscellaneous expenses to be incurred in connection with the deed of agreement or
allotment or transfer of the land. Only the actual sums shall be charged.
12. After taking over of apartment or the projects, the allottee(s) must consult the Company
prior to undertaking any structural or layout changes within the apartment complex.
Failure to do so will be at the sole risk of the allottee.
13. The Builder agrees to complete the construction of this project and deliver possession
thereof to the Purchaser within the declared date. Other than the causes Builder shall be
liable to pay the purchaser rental benefit for delay in hand over. If the purchaser
maintained the payment schedule.
14. The allottees, after full payment of dues and becoming shareholders, will be eligible to
elect from among themselves the members of the board of management for managing
the general affairs of the company in the common interest. Each allottee (for each
allotment of apartment) must initially deposit TK. 50,000.00 (Fifty Thousand) only in
the reserve fund of the company for management expenses of the complex.

20

2.5.0 Result from Data Analysis :

From data analysis, the overall questioner mean is above 3 so it is good for the company.
Vertex Developers LTD company is a new real estate company in the real estate business
market and is growing very fisted last few years. In my observation it will be perform very
well in future because of its management is very strict for their rules and regulations and this
company improve their good will year to year for their customer. On the other hand the
company higher lot of experienced employees and ensure better quality product for their
customers.

21

CHAPTER 03
LITERATURE REVIEW

22

3.0.0 Literature Review :

Customer Satisfaction :
"Customer satisfaction provides a leading indicator of consumer purchase intentions and
loyalty." "Customer satisfaction data are among the most frequently collected indicators of
market perceptions. Their principal use is twofold:"
1. "Within organizations, the collection, analysis and dissemination of these data send a
message about the importance of tending to customers and ensuring that they have a
positive experience with with the company's goods and services."
2. "Although sales or market share can indicate how well a firm is performing currently,
satisfaction is perhaps the best indicator of how likely it is that the firms customers
will make further purchases in the future. Much research has focused on the
relationship between customer satisfaction and retention. Studies indicate that the
ramifications of satisfaction are most strongly realized at the extremes."
On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to become
return customers and might even evangelize for the firm. (A second important metric related
to satisfaction is willingness to recommend. This metric is defined as "The percentage of
surveyed customers who indicate that they would recommend a brand to friends." When a
customer is satisfied with a product, he or she might recommend it to friends, relatives and
colleagues. This can be a powerful marketing advantage.) "Individuals who rate their
satisfaction level as '1,' by contrast, are unlikely to return. Further, they can hurt the firm by
making negative comments about it to prospective customers. Willingness to recommend is a
key metric relating to customer satisfaction."
"In literature antecedents of satisfaction are studied from different aspects. The considerations
extend from psychological to physical and from normative to positive aspects. However, in
most of the cases the consideration is focused on two basic constructs as customers
expectations prior to purchase or use of a product and his relative perception of the
performance of that product after using it.
Expectations of a customer on a product tell us his anticipated performance for that product.
As it is suggested in the literature, consumers may have various "types" of expectations when

23

forming opinions about a product's anticipated performance. For example, four types of
expectations are identified by Miller (1977): ideal, expected, minimum tolerable, and
desirable. While, Day (1977) indicated among expectations, the ones that are about the costs,
the product nature, the efforts in obtaining benefits and lastly expectations of social values.
Perceived product performance is considered as an important construct due to its ability to
allow making comparisons with the expectations.
It is considered that customers judge products on a limited set of norms and attributes.
Olshavsky and Miller (1972) and Olson and Dover (1976) designed their researches as to
manipulate actual product performance, and their aim was to find out how perceived
performance ratings were influenced by expectations. These studies took out the discussions
about explaining the differences between expectations and perceived performance."
"The Disconfirmation Model is based on the comparison of customers [expectations] and
their [perceived performance] ratings. Specifically, an individuals expectations are
confirmed when a product performs as expected. It is negatively confirmed when a product
performs more poorly than expected. The disconfirmation is positive when a product
performs over the expectations(Churchill & Suprenant 1982). There are four constructs to
describe the traditional disconfirmation paradigm mentioned as expectations, performance,
disconfirmation and satisfaction." "Satisfaction is considered as an outcome of purchase and
use, resulting from the buyers comparison of expected rewards and incurred costs of the
purchase in relation to the anticipated consequences. In operation, satisfaction is somehow
similar to attitude as it can be evaluated as the sum of satisfactions with some features of
product." "In the literature, cognitive and affective models of satisfaction are also developed
and considered as alternatives(Pfaff, 1977). Churchill and Suprenant in 1982, evaluated
various studies in the literature and formed an overview of Disconfirmation process in the
following figure:"
Organizations need to retain existing customers while targeting non-customers.[4] Measuring
customer satisfaction provides an indication of how successful the organization is at
providing products and/or services to the marketplace.
"Customer satisfaction is measured at the individual level, but it is almost always reported at
an aggregate level. It can be, and often is, measured along various dimensions. A hotel, for
24

example, might ask customers to rate their experience with its front desk and check-in
service, with the room, with the amenities in the room, with the restaurants, and so on.
Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your
stay.'"
Customer Satisfaction Measurement Touch Screen Device In a Hotel
As research on consumption experiences grows, evidence suggests that consumers purchase
goods and services for a combination of two types of benefits: hedonic and utilitarian.
Hedonic benefits are associated with the sensory and experiential attributes of the product.
Utilitarian benefits of a product are associated with the more instrumental and functional
attributes of the product (Batra and Athola 1990).
Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of
the state of satisfaction will vary from person to person and product/service to
product/service. The state of satisfaction depends on a number of both psychological and
physical variables which correlate with satisfaction behaviors such as return and recommend
rate. The level of satisfaction can also vary depending on other options the customer may
have and other products against which the customer can compare the organization's products.
Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988
provides the basis for the measurement of customer satisfaction with a service by using the
gap between the customer's expectation of performance and their perceived experience of
performance. This provides the measurer with a satisfaction "gap" which is objective and
quantitative

in

nature.

Work

done

by

Cronin

and

Taylor

propose

the

"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,

Zeithaml and Berry as two different measures (perception and expectation of performance)
into a single measurement of performance according to expectation.
The usual measures of customer satisfaction involve a survey from software providers such
as Confirmit, Medallia and Satmetrix with a set of statements using a Likert Technique or
scale. The customer is asked to evaluate each statement and in term of their perception and
expectation of performance of the organization being measured. Their satisfaction is
generally measured on a five-point scale.

25

"Customer satisfaction data can also be collected on a 10-point scale."

"Regardless of the scale used, the objective is to measure customers perceived satisfaction
with their experience of a firms offerings." It is essential for firms to effectively manage
customer satisfaction. To be able do this, we need accurate measurement of satisfaction.
Good quality measures need to have high satisfaction loadings, good reliability, and low error
variances. In an empirical study comparing commonly used satisfaction measures it was
found that two multi-item semantic differential scales performed best across both hedonic and
utilitarian service consumption contexts. According to studies by Wirtz & Lee (2003), they
identified a six-item 7-point semantic differential scale (for example, Oliver and Swan 1983),
which is a six-item 7-point bipolar scale, that consistently performed best across both hedonic
and utilitarian services. It loaded most highly on satisfaction, had the highest item reliability,
and had by far the lowest error variance across both studies. In the study, the six items asked
respondents evaluation of their most recent experience with ATM services and ice cream
restaurant, along seven points within these six items: pleased me to displeased me,
contented with to disgusted with, very satisfied with to very dissatisfied with, did a
good job for me to did a poor job for me, wise choice to poor choice and happy with to
unhappy with.
A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990), which is a four-item
7-point bipolar scale, was the second best performing measure, which was again consistent
across both contexts. In the study, respondents were asked to evaluate their experience with
both products, along seven points within these four items: satisfied to dissatisfied,
favorable to unfavorable, pleasant to unpleasant and I like it very much to I didnt like it
at all.
The third best scale was single-item percentage measure, a one-item 7-point bipolar scale
(e.g., Westbrook 1980). Again, the respondents were asked to evaluate their experience on

26

both ATM services and ice cream restaurants, along seven points within delighted to
terrible.
It seems that dependent on a trade-off between length of the questionnaire and quality of
satisfaction measure, these scales seem to be good options for measuring customer
satisfaction in academic and applied studies research alike. All other measures tested
consistently performed worse than the top three measures, and/or their performance varied
significantly across the two service contexts in their study. These results suggest that more
careful pretesting would be prudent should these measures be used.
Finally, all measures captured both affective and cognitive aspects of satisfaction,
independent of their scale anchors.[11] Affective measures capture a consumers attitude
(liking/disliking) towards a product, which can result from any product information or
experience. On the other hand, cognitive element is defined as an appraisal or conclusion on
how the products performance compared against expectations (or exceeded or fell short of
expectations), was useful (or not useful), fit the situation (or did not fit), exceeded the
requirements of the situation (or did not exceed).
American Customer Satisfaction Index (ACSI) is a scientific standard of customer
satisfaction. Academic research has shown that the national ACSI score is a strong predictor
of Gross Domestic Product (GDP) growth, and an even stronger predictor of Personal
Consumption Expenditure (PCE) growth. On the microeconomic level, academic studies
have shown that ACSI data is related to a firm's financial performance in terms of return on
investment (ROI), sales, long-term firm value (Tobin's q), cash flow, cash flow volatility,
human capital performance, portfolio returns, debt financing, risk, and consumer spending.
Increasing ACSI scores has been shown to predict loyalty, word-of-mouth recommendations,
and purchase behavior. The ACSI measures customer satisfaction annually for more than 200
companies in 43 industries and 10 economic sectors. In addition to quarterly reports, the
ACSI methodology can be applied to private sector companies and government agencies in
order to improve loyalty and purchase intent. ASCI scores have also been calculated by
independent researchers, for example, for the mobile phones sector, higher education, and
electronic mail.
The Kano model is a theory of product development and customer satisfaction developed in
the 1980s by Professor Noriaki Kano that classifies customer preferences into five categories:
27

Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model offers some
insight into the product attributes which are perceived to be important to customers.
SERVQUAL or RATER is a service-quality framework that has been incorporated into
customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction Barometer)
to indicate the gap between customer expectations and experience.
J.D. Power and Associates provides another measure of customer satisfaction, known for its
top-box approach and automotive industry rankings. J.D. Power and Associates' marketing
research consists primarily of consumer surveys and is publicly known for the value of its
product awards.
Other research and consulting firms have customer satisfaction solutions as well. These
include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the Stages of
Excellence framework and which helps define a companys status against eight critically
identified dimensions.
For B2B customer satisfaction surveys, where there is a small customer base, a high response
rate to the survey is desirable. The American Customer Satisfaction Index (2012) found that
response rates for paper-based surveys were around 10% and the response rates for e-surveys
(web, wap and e-mail) were averaging between 5% and 15% - which can only provide a
straw poll of the customers' opinions.
In the European Union member states, many methods for measuring impact and satisfaction
of e-government services are in use, which the eGovMoNet project sought to compare and
harmonize.
These customer satisfaction methodologies have not been independently audited by the
Marketing Accountability Standards Board (MASB) according to MMAP (Marketing Metric
Audit Protocol)

28

CHAPTER 04
COMPARATIVE ANALYSIS

29

4.0.0 SWOT ANALYSIS

SWOT Analysis of Vertex Developers LTD company.

4.0.1 Strengths
Experienced management and large number of projects around the Bangladesh
Quality products and services
Company reputation and goodwill
Large number of Branches all over the country
Expanding market, expanding sales & profitability
A healthy industry sector with quality business
Good purchasing power of target customers group
Government keen interest to solve housing problem with the rapid increase of urban
population
Open market economy, recent housing policy etc. may favor sustainable growth of
housing industry
Dependency of the major housing companies in the market

4.0.2 Weakness
Lack of adequate marketing (advertising and promotion) effort
Lack of full scale automation
Lack of training facilities for the employees
Strong competition among the existing players of the industry
Increased price of industrial materials will be difficult to pass on the customers because
the agreement in response of the price and construction standard is made 2 to 3 years before
the actual handing over of the apartments
The industry as a whole does not follow any standard business rules, therefore there
remains uncertainty practices by some of the developers.

30

4.0.3 Opportunities
Regulatory environment favoring private sector development
Value addition in products and services
Increasing purchasing power of people
Increasing trend in international business
Increasing the population of Bangladesh
A high profitable investment opportunity for individuals as well as financial institutions
A very wide scope is prevailing for foreign investor also
Urban population is developing favorable attitudes towards apartment living, although the
present market of apartment business is limited within high income groups of the society,
there exists opportunity for middle and lower level income groups.

4.0.4 Threats
Frequent changes of inhabitation rule of Bangladesh Government or RAJUK
Market pressure for lowering of lending rate
National and global political unrest
Lack of land of Bangladesh
Political instability and unrest directly or indirectly threats all the business sectors
including housing industry
Bureaucratic complexity imposed by RAJUK, WASA, DESA, and many other
Government and semi Government agencies
Cooperation and rendered by rational board of revenue in relation to the taxation and
import facilities (Tax Concession).

31

CHAPTER 05
FINDINGS

32

5.0.0 Findings:
To prepare this report I find some problems that are obstacle for advanced development
technologies future growth. The problems are shortly described:
1. VERTEX DEVELOPERS LTD COMPANY Charged Higher Price: Real estate
companies selling price varying in same location of Dhaka city. Advanced development
technologies comparably charge higher price than leading real estate companies. Last few
years middle class buyer increase in Dhaka city. Middle class buyers are high price sensitive
though they buy their apartments from new companies who charge low price to capture the
market. Thus the VERTEX DEVELOPERS LTD COMPANY cant capture the large part of
the middle class group.
2. Advanced Development Technologies Handover the Project in Delayed: Last few years
VERTEX DEVELOPERS LTD COMPANY cant complete their projects in due time. One of
the main reasons for delay the projects are VERTEX DEVELOPERS LTD COMPANY has a
large project in Savar. Thus VERTEX DEVELOPERS LTD COMPANY cant cope with
projects time schedule. On the opposite side leading companies has not such type of large
ongoing projects thus they main the schedule properly.
3. VERTEX DEVELOPERS LTD COMPANYS Yearly Sales Volume: Last 3 years sales
quantity analyze we see that VERTEX DEVELOPERS LTD COMPANYS yearly sales
volume increasing but not like competitors. On the other side most of the leading real estate
companies yearly sales volume increase rapidly.
4. Construction Raw Material Costs: Price of the basic raw material for building
development steel, rod, and cement is increasing condition though demand is increasing.
With the rapid urbanization and increase in real estate business, price and demand for basic
building construction materials such as rod, cement and steel are increasing. According to
REHAB, there has been average increase 150%-400% in overall prices of building
construction materials in 2000 from 2010. The building development cost increased but the
profit cant maximize with same manner. Advanced development technologies maintain large

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employees, big office, advertisement cost and other corporate social responsibility thus
proportion of profit declining last year.

5. Jointly Project Development: Last 20 years land price increase 625% in Dhaka
metropolitan area. As result advanced development technologies jointly develop the projects
with land owners. In jointly projects, VERTEX DEVELOPERS LTD COMPANY provide a
huge amount of signing money to the land owner. It causes the high price of the apartments
and declines the profit margin.
6. VERTEX DEVELOPERS LTD COMPANY Develops the Project Only Prime
Location: VERTEX DEVELOPERS LTD COMPANY works mainly prime location like
Gulshan, Dhanmondi, Banani, Baridhara etc area in Dhaka city. But become the market
leader ADTL necessitate to work in all area in Dhaka city.
7. The Term Real Estate Or Apartment as Commodity Used Has Two Meanings:
i. It is a name given to the commodity realty which includes not only land but also all
human improvements placed on the land.
ii. It is the name given to the business engaged in by those persons who conducts commercial
transactions in real estate.
8. The Property Right: The basic component of reality as a commodity is land. It means not
only the surface of the earth but also the property rights and interests that attach to ownership
of reality, including subsurface minerals. Thus the real estate means acquirement of land and
building which is called inherent right. The men who are the owner, user, maker, financier or
marketer of the property have some rights to the property.

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CHAPTER 06
RECOMMENDATIONS
AND
CONCLUSIONS

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6.0.0 Recommendation:
Considering all issues, following broad general recommendations both in the public and
private sector should be taken into consideration:
a) Appropriate planning and programming for the construction project would be framed based
on the nature of works.
b) A major concern in the construction industry is the apparent backwardness in the adoption
of new construction technologies for the adoption of new construction technologies and
practices, which can reduce cost and increase quality.
c) The authority with help of professionals should formulate general guidelines of building
designs. Special attention would be given to prepare appropriate planning rules, building
codes etc. based on the character of the area. It will also cover building regulations and
related detailing of the building and also cover selection of materials.
d) It has been observed that the construction material and equipment differ from place to
place, considering this fact, specialized standards and code should be made.
e) Simple and innovative technologies should be introduced in the~ construction sector for
high productivity. The attention should be given on its acceptability to the sectors.
Affordability to the government as well public enterprises should be taken into consideration.
f) Research and innovation for development should be encouraged. Proper research support
and financial support should be provided both in public and private sectors. Even groups of
entrepreneurs and individuals should be encouraged by the policies.
g) Research outputs, available materials, energy consumption cost, environmental impacts
and other information should be made available to the public through institutions and mass
media.
h) Selection of building materials, the consultants are required in conjunction with
experienced contractors.

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6.1.0 Conclusion:
From the above analyses, it is evident that Vertex Developers LTD company has many
positive features and the customers are mostly satisfies with the services offered. They also
provide better service to their customer and improving their business year to year. But the
management of Vertex Developers LTD company should consider the findings and take all
necessary steps for further research and if they think that the customers of Vertex Developers
LTD companyare homogeneous in their choice and preferences, they may consider the
following recommendations to gain more customers there are:
The Management of Vertex Developers LTD company should conduct more product &
services awareness campaign. They should increase the level of providing personal attention
to individual customers. Residence is one of the basic needs of human beings. The right to
live in ones own is a fundamental right of people and it is internationally recognized. The
demand of housing in urban areas in developing countries like Bangladesh is dramatically
increasing due to natural increase and its fast growth rate. Rural people are migrating not only
to find jobs but many wealthy people are moving to urban areas like Dhaka city for the
fulfillment of their expectations of better of their future generation, and for enjoying the
modern facilities of the city life. This has resulted into a serious crisis all over the country
especially in the major cities of Bangladesh. In recent time, the private real estate firms have
taken initiatives by ensuring maximum uses of land in a planned way. In this system it is
possible to accommodate more people in a comparatively small place.

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CHAPTER 07
REFERENCES

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7.0.0 References :
Lim, K. and OCass, A. (2001): The Effect of Familiar Brand Names on Consumer
Behaviour:
A Jordanian Perspective, Alisra University, page NO: 34
Keller, K. (1998): The Effect of Familiar Brand Names on Consumer Behaviour: A Jordanian
Perspective. Alisra University,
Miller (1978), Ong and Koh (2000), Anglin and Wiebe (2004), Li (2004) and Merlo and
OrtaloMagne (2004): Marketing Time and Pricing Strategies, By Eddie C.M. Hui, Joe T.Y. Wong
and
K.T. Wong, page No: 3.
http://www.bre.polyu.edu.hk/BRE_workshop/pdf/Marketing%20Time%20and%20P
ricing%20Strategies%20Revision%20.pdf
Kimmons (2008): Factors Affecting the Provision of Quality Service in Real Estate Agency
in
Lagos Metropolis, Nigeria. International Journal of Business Administration, Obafemi
Awolowo
University, Vol. 2, No. 1; page no: 72.
Abu (2004): Factors Affecting the Provision of Quality Service in Real Estate Agency in
Lagos
Metropolis, Nigeria. International Journal of Business Administration, Obafemi Awolowo
University, Vol. 2, No. 1; page No: 72.
Longenecker et al (2005): Factors Affecting the Provision of Quality Service in Real Estate
Agency in Lagos Metropolis, Nigeria. International Journal of Business Administration,
Obafemi
Awolowo University, Vol. 2, No. 1; page No: 72.
Daharwal (2006): Factors Affecting the Provision of Quality Service in Real Estate Agency in
Lagos Metropolis, Nigeria. International Journal of Business Administration, Obafemi
Awolowo
University, Vol. 2, No. 1; page No: 72.

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Daharwal (2006) and Nowak (2008): Factors Affecting the Provision of Quality Service in
Real
Estate Agency in Lagos Metropolis, Nigeria. International Journal of Business
Administration,
Obafemi Awolowo University, Vol. 2, No. 1; page No: 72.
http://www.infra.kth.se/se/byfa/publikationer/engelskaUppsatserOchRapporter/51.pdf
http://www.sciedu.ca/journal/index.php/ijba/article/view/105/49
http://www.iiste.org/Journals/index.php/index/search/results
http://www.scribd.com/doc/67958865/4-Factors-Influencing-Real-Estate-Property-PricesIISTEResearch-Paper

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