Impact of consumer preference on the decision-making of prefabricated building developers
Abstract
Customers’ preferences for prefabricated building or conventional cast-in-situ building directly affect the decision-making process for strategic selection of building developers. This study utilizes a Hotelling model integrating game theory, including the market share function, product price function, and profit function of duopoly building developers to contribute a new approach to assist decision makers in their selection of developers for their projects. By analyzing different strategy combinations and the income matrix, we obtained the strategy combinations of duopoly building developers and the income matrix strategies, market share, optimal price and maximum profit. Managerial implications were discussed for government and building developers. Finally, we presented the research contribution as well as future research direction.
Keyword : prefabricated construction, building developer, consumer preference, decision-making
How to Cite
Han, Y., Xu, X., Zhao, Y., Wang, X., Chen, Z., & Liu, J. (2022). Impact of consumer preference on the decision-making of prefabricated building developers. Journal of Civil Engineering and Management, 28(3), 166–176. https://doi.org/10.3846/jcem.2022.15777
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Economides, N. (1999). Quality choice and vertical integration. International Journal of Industrial Organization, 17(6), 903–914. https://doi.org/10.1016/S0167-7187(97)00063-5
Fudenberg, D., & Levine, D. K. (2016). Whither game theory? Towards a theory of learning in games. The Journal of Economic Perspectives, 30(4), 151–170. https://doi.org/10.1257/jep.30.4.151
Gan, S.-S., Pujawan, I. N., & Widodo, B. (2017). Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel. International Journal of Production Economics, 190, 120–132. https://doi.org/10.1016/j.ijpe.2016.08.016
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Han, Y., Skibniewski M., & Wang L. (2017). A market equilibrium supply chain model for supporting self-Manufacturing or outsourcing decisions in prefabricated construction. Sustainability, 9(11), 2069. https://doi.org/10.3390/su9112069
Harter, J. F. R. (1996). When technology and preferences differ in Hotelling’s competition. Journal of Economics, 22(2), 97–100.
He, L. L., & Yuan, H. P. (2019). A study on the decision making of recycled manufacturing materials enterprises considering consumer perception of quality. Industrial Engineering and Management, 1, 19. https://doi.org/10.19495/j.cnki.1007-5429.2019.01.019
Hernandez, M. A. (2010). Nonlinear pricing and competition intensity in a Hotelling-type model with discrete product and consumer types. Economics Letters, 110(3), 174–177. https://doi.org/10.1016/j.econlet.2010.11.031
Hotelling, H. (1929). Stability in competition. Economic Journal, 39, 41–57. https://doi.org/10.2307/2224214
Hüttel, A., Ziesemer, F., Peyer, M., & Balderjahn, I. (2018). To purchase or not? Why consumers make economically (non-)sustainable consumption choices. Journal of Cleaner Production, 174, 827–836. https://doi.org/10.1016/j.jclepro.2017.11.019
Ismail, Z.-A. (2020). Maintenance management practices for green building projects: towards hybrid BIM system. Smart and Sustainable Built Environment. https://doi.org/10.1108/SASBE-03-2019-0029
Koklic, M. K., & Vida, I. (2011). Consumer strategic decision making and choice process: prefabricated house purchase. International Journal of Consumer Studies, 35(6), 634–643. https://doi.org/10.1111/j.1470-6431.2010.00953.x
Kong, L. L., Li, H., Luo, H. B., et al. (2018). Sustainable performance of just-in-time (JIT) management in time-dependent batch delivery scheduling of precast construction. Journal of Cleaner Production, 193, 684–701. https://doi.org/10.1016/j.jclepro.2018.05.037
Korolovych, O., Chabaniuk, O., Ostapiuk, N., Kotviakovskyi, Y., & Gut, N. (2019). Effective decisions for individualized assessment and minimization of the risk of unfriendly takeover of enterprises: The features of the game theory application. Problems and Perspectives in Management, 17(1), 370–379. https://doi.org/10.21511/ppm.17(1).2019.32
Kumar, V., Hundal, B. S., & Kaur, K. (2019). Factors affecting consumer buying behaviour of solar water pumping system. Smart and Sustainable Built Environment, 8(4), 351–364. https://doi.org/10.1108/SASBE-10-2018-0052
Kumar, V., Syan, A. S., & Kaur, K. (2020). A structural equation modeling analysis of factors driving customer purchase intention towards solar water heater. Smart and Sustainable Built Environment. https://doi.org/10.1108/SASBE-05-2020-0069
Li, Y. G., Qiu, K. N., Wei, Y. H., & Zeng, T. (2014a). Study of digital lean construction platform for precast components. In Proceedings of 2014 International Conference on Computing in Civil and Building Engineering (pp. 480–487), Orlando, Florida, United States. https://doi.org/10.1061/9780784413616.060
Li, Z., Shen, G. Q., & Xue, X. (2014b). Critical review of the research on the management of prefabricated construction. Habitat International, 43, 240–249. https://doi.org/10.1016/j.habitatint.2014.04.001
Li, C. Z., Xue, F., Li, X., Hong, J., & Shen, G. Q. (2018). An Internet of Things-enabled BIM platform for on-site assembly services in prefabricated construction. Automation in Construction, 89, 146–161. https://doi.org/10.1016/j.autcon.2018.01.001
Liu, M. X., & Wang, J. N. (2017). Research on the road map for the progressive promotion of prefabricated building zoning. China Engineering & Consulting, 9, 44–49. https://doi.org/10.3969/j.issn.1006-9607.2017.09.019
Love, P. E. D., Irani, Z., & Edwards, D. J. (2004). A seamless supply chain management model for construction. Supply Chain Management, 9(1), 43–56. https://doi.org/10.1108/13598540410517575
Mao, C., Shen, Q., Shen, L., & Tang, L. (2013). Comparative study of greenhouse gas emissions between off-site prefabrication and conventional construction methods: Two case studies of residential projects. Energy and Building, 66(1), 165–176. https://doi.org/10.1016/j.enbuild.2013.07.033
Maniatis, P. (2016). Investigating factors influencing consumer decision-making while choosing green products. Journal of Cleaner Production, 132, 215–228. https://doi.org/10.1016/j.jclepro.2015.02.067
Ng, S. T., Fang, Y., & Skitmore, R. M. (2008). Negotiation of on-site buffer stocks: A fuzzy non-structural fuzzy decision support system approach. Construction Innovation, 8(3), 202–217. https://doi.org/10.1108/14714170810888967
Nguyen, B. N., London, K., & Zhang, P. (2021). Stakeholder relationships in off-site construction: A systematic literature review. Smart and Sustainable Built Environment. https://doi.org/10.1108/SASBE-11-2020-0169
Nie, J. J., & Deng, D. F. (2014). Effects of remanufacturing product quality on recovery channel in closed-loop supply chain. Industrial Engineering and Management, 19, 1–7. https://doi.org/10.19495/j.cnki.1007-5429.2014.01.001
Osobajo, O. A., Oke, A., Omotayo, T., & Obi, L. I. (2021). A systematic review of circular economy research in the construction industry. Smart and Sustainable Built Environment. https://doi.org/10.1108/SASBE-04-2020-0034
Ozaki, R., & Sevastyanova, K. (2011). Going hybrid: An analysis of consumer purchase motivations. Energy Policy, 39(5), 2217–2227. https://doi.org/10.1016/j.enpol.2010.04.024
Pan, W., Gibb, A. G. F., & Dainty, A. R. J. (2007). Perspectives of UK housebuilders on the use of offsite modern methods of construction. Construction Management and Economics, 25(2), 183–194. https://doi.org/10.1080/01446190600827058
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