Nature of status consumption in construction industry of Sri Lanka

Abstract

This study aims to provide a scientific insight into the consumers’ behavior in the construction Industry in Sri Lanka. Consumer behavior in the construction industry presents a veritable problem to be reckoned with, which has not yet been addressed scientifically. The broader objective of the Study is to investigate the peoples’ preferences in constructing or purchasing their houses as commodities, and how they use their house constructing or purchasing in commodity form to demonstrate their social status, lifestyle and other social and cultural values to the society. Further, it is expected, especially, to identity the determinants of the consumer behavior, to rate them in terms of importance, and to identify the relative importance of the determinants in different segments. This research presents results from a dual study based on interviews with six leading Architects and six Contractors who are engaged in housing projects in Western Province. A sample of 53 householders in the Western Province were also interviewed. Altogether, views of 65 respondents were recorded using liker-scales. . Data on housing consumption in the last ten years was collected also from Census and Statistics Department. The study has found that there is a strong trend towards the status-consumption. This study reveals that people are concerned about the type of the houses where they live in, because they believe their houses symbolized their status, life style, income and family background etc. Because of that, when they planned their houses, they have been concerned about the modern style features. Therefore, they tend to seek the assistance of architects to design their houses. Moreover, this study reveals the perception of house owners that people have more respect for those living in modern houses. When people cannot afford to built to modern house, most of them start modernizing their houses when their income increases.