The Impact of Digital Marketing Decisions on Market Outcome in Residential Real Estate in Metro Atlanta

The Impact of Digital Marketing Decisions on Market Outcome in Residential Real Estate in Metro Atlanta

Background of the Problem

Digital marketing tools and opportunities are expanding rapidly (Ganugly, Das & Farr, 2017). These rapid and voluminous changes have affected the way consumers behave when selection purchase choices (Kannan & Li, 2017). The increasing ease of search and the decrease in digital marketing costs, place the onus of digital marketing optimization on the seller (Xie, 2018). Therefore, this research can help sellers determine if digital marketing tools can improve residential property sales.

Problem statement

It’s unknown if or to what extent digital marketing decisions of sellers have an impact on the sales, time on the market, or probability of being sold of single-family residential properties in Metro Atlanta. Metro Atlanta has experienced low sales, thus going out of business. Digital marketing has led to unemployment, hardship on the economy, and hardship on people and families.

Purpose of the Study

To determine the extent to which the third-party comments and virtual tours affect time on the market and the probability of being sold of single-family residential properties in Metro Atlanta.

Significance of the Study

Theoretical – (Digital, Social Media, and Mobile Marketing Framework- DSMM): This study may expand the understanding and application of DSMM in the real estate industry.

Practice – First, this study could help real estate professional determine if digital marketing tools found in the FMLS listings could be beneficial to a realtor’s business. Second, this study could provide insight on which digital marketing approach is most effective, given, and properties price point.

Scientific knowledge – First, there are very few studies that consider digital and social media marketing and real estate (Drake-Woods, 2014; Russell, 2016). Second, there have been no studies conducted on the impact of digital marketing tools on real estate sales.  This study could add to the scientific literature in that it is quantitative, and may provide a more objective look at the relationship between digital marketing and real estate sales performance. Additionally, by using the quantitative causal-comparative design, this study could provide insight on which property price points benefit most from digital marketing tools.

Research questions

The main research question is, “Do third-party comments and virtual tours predict sales price and time on market of single-family residential properties?”

The hypotheses in this study include;

Ha1A: Third-party comments are statistically significant predictors of the sales price

Ha2B: Virtual tours are statistically significant predictors of the time on market

Ha2A: Third-party comments are statistically significant predictors of time on market

Ha2B: Virtual tours are statistically significant predictors of time on the market.

Research Design

It is an Ex Post Factor Design using quantitative methodology.

RQ1: Third-party comment usage – categorical (IV),

Sale price single-family residential – continuous (DV)

One-way ANOVA

RQ2: Virtual tours usage – categorical (IV)

Sale price single-family residential – continuous (DV)

One-way ANOVA

RQ3: Third-party comments – categorical (IV)

Time on market – continuous (DV)

One-way ANOVA

RQ4: Virtual tour usage – categorical (IV)

Time on market – continuous (DV)

One-way ANOVA

RQ5: Third-party comment usage (IV),

Likelihood sold in 6 months (DV)

– Chi-square test of independence

RQ6: Virtual tour usage – categorical (IV)

Likelihood sold in 6 months – continuous (DV)

Chi-square test of independence

Data Collection

First Multiple Listing Service is used in the residential and initial records of the data given by the stuff. It is a quantitative study where we use the level of measure to refer to variables in this context.  The use of the sales price regression will show the variable (sales price) will reveal to have more substantial predictive influence than the others.

Sample and location

The study takes place in GA metropolitan area in Atlanta.

Literature review

Digital marketing strategies must be competent enough to meet the demand and needs of buyers, agents, and sellers in the fast-growing and competitive industry. Most prospective property buyers dig into the internet looking for houses to purchase. For successful sales by real estate professionals must prioritize choices on digital marketing in digital means in which the buyers are searching. Previous studies on using MLS data show have evaluated the impacts of diverse agent marketing efforts on the sale price result, time in the market, and the likelihood of sales.

Background of the problem

This research is to identify if third party comments and virtual tours predict sales price and time on the market of single-family residential units basing on the Technology acceptance model (TAM) theory. TAM is a data system theory that designs users’ acceptance and technology use. It is a technology user Accepted, used, and applied widely. The technology includes the study of user behaviors such that each can interact with the new technology hence its use. Attitude towards new technology is the critical factor that influences behavioral intention. The usefulness and ease-to-use of the latest technology presented are the main factors that determine how and when its use. It relates to the extent a person believes a particular system will contribute to improvement in their job and how it will reduce the effort required in a specific task. The attitude, in this case, is hugely determined by social influence. Having all this, people will have the intention and the approach to use the technology. Most researchers have laid their basis in this model mainly on the concept of perceived usefulness and use of technology at an individual level. Criticism is evident in the fact that there have been attempts to redefine what the leading proposers detailed despite its frequent use. According to later studies, the perceived ease of use is less likely to determine the attitude and intention of the users. Also, Lunceford argues that the theory doesn’t consider factors like determinants of organizational structures and cost, which are significant drivers for adopting the technology.

Gap

According to Gravatt (2018), there is little to no empirical evidence of the efficacy of third-party-comments and virtual tours on real estate sales metrics. The researcher has found no research in the literature exploring the relationship between the use of third party comments and virtual tools on real estate sales metrics.

Theoretical foundations

DSMM entails the use of domain-specific language to represent the different parts of the system. It is used in software engineering to design and develop systems such as computers’. It also includes the idea of automating a directly executable source code. Automatic generation in this model reduces the number of defects compared to manual systems hence improving quality. A few expert tool vendors develop modeling generators and language, and the rest of them use them, this reduces information overload.

Review of literature topics

The inverted pyramid technique use in the news having the essential stuff of the story included in the first paragraph as others follow according to their importance. It helps the readers to have all the necessary information to go. This way, the marketer can entail what to expect without communicating everything. The content created with this technique offers instant value to the reader, encouraging them to continue reading. Hence it conveys value first and not necessarily all answers

References

Gravatt, D. H. (2018). The Impact of Digital Marketing Decisions on Market Outcomes in Residential Real Estate.

Levitt, S. D., & Syverson, C. (2008). Market distortions when agents are better informed: The value of information in real estate transactions. The Review of Economics and Statistics, 90(4), 599-611.

Maina, C. N. (2017). Effect Of Digital Marketing Tools On Performance Of Businesses In Real Estate Sector In Nairobi County (Doctoral dissertation, KCA University).

Sabherwal, R., & Sabherwal, S. (2005). Knowledge management using information technology: Determinants of short‐term impact on firm value. Decision Sciences, 36(4), 531-567.