LITERATURE REVIEW2.1 IntroductionInthis chapter the researcher will critically review the existing theoreticalliterature information on customer preference, technology access, pricing ofhousing and competence influence on ACM uptake. A critical review of previousresearch studies on ACM will be assessed to aid formulation of the conceptualframe work of the study as well as find gaps in research that this study aimsto address.EP1 2.
2. Review of Theoretical Literature2.2.1. Customer PreferenceBydefinition, customer preference is the subjective customer’s perception of aproduct or a service that makes them choose it over other competing offers. Itenables a client rank products and services based on their levels ofsatisfaction (Ghose et al.
, 2013). In a growing market/industry there is alwaysthe presence of existing and new brands. For a new brand marketing is key to ensureits adoption by the consumer. If marketed well a new product will generaterevenue in the short run and in the long run attain economies of scale tofurther enhance the profit (Ghose et al.
, 2013). Generally, due to the presenceof competing alternatives in the market; a consumer has to make a judgment callabout the properties of the alternatives at hand before making a decision inwhat to pick and what not to (Ghose et al., 2013). According to Richard (2017)customer preference is the reasons for the decision people come to whenselecting among competing products and services.
Customershave an ever changing taste and preference for consumer goods, products,services and technology. This ever changing needs to be satisfied to ensure prominenceof the service provider that is meeting this ever changing need (Ammani, 2013).Due to the changing nature of the tastes and preference of customers, it is necessaryfor various industries to adopt and keep up with the changes in order to satisfythe target consumer changing needs (Ammani, 2013). Through an analysis of thefactors that influence customerpreferences it enables businesses concentrate their resources to targetspecific consumer sectors for their product and eservices (Richard, 2017). In addition,businesses need to be innovative so as to come up with new products and servicesthat have a competitive edge over the existing products and services thusoffering a competitive advantage in the market niche (Richard, 2017).Variousfactors affect customer preference.
An understanding of these factors enablesvarious industry players get an upper hand in as far as satisfying the customerneeds (Economic Discussion, 2017). Advertisement disseminates information tothe target client thus generating interest in the products and services beingoffered. This interest in essence generates demand for the various products(Richard, 2017). Target customers’ income also plays a role in influencingchoice of products and services by customers. As a general rule of thumb incomereflects customers’ appetite for consumption of goods and services (Economic Discussion,2017). Thus the overall cost of the products and service on offer compared withthe income of the customers will shape whether they would accept or decline theproduct and service.
In summation, the cost of a good or product goes hand inhand with the consumer income in determining preference for a certain goods or service.The cheaper; the more preference by consumers (Richard, 2017). Accessibility ofcompeting providers of goods and services also influence customer preference. Generally,consumers prefer access to products and services as and when they need it henceavailability of these goods and services in terms of access tends to influence theirtaste and preference (Ammani, 2013). When a product or service is not readily available;consumers will substitute it with another to satisfy their needs.
Societal institutionsalso influence customer preference in that the view of societal members towardsa certain product or service will influence whether one will accept or declinethe product or service (Richard, 2017). Societal pressure will play a part influencingcustomer preference since social approval is a key aspiration for a significantnumber of societal members (Richard, 2017).Overthe last decade there has numerous strides made in technology through newinnovations that are aimed at keeping up with the ever changing end customer behavior(Journal of Technology, 2012). The integration of technology in various industry– construction industry included- has seen marketing opportunities emerge inthe ever changing competitive consumer markets (Journal of Technology, 2012).The main aim of innovation is to improve the whole customer experience throughoffering cost friendly; more efficient and effective products and services thatwill satisfy the high standards set for customer satisfaction (Journal ofTechnology, 2012).
Inthe construction industry customer preference results when there is use oftechnology that is cost friendly, accepted widely by the society andtechnologically advocated for by other stakeholders (Nadim& Goulding, 2011)EP2 . By practice customer preference is based on atradeoff comparison between one construction method attributes vs another. Availabilityof various substitutes referred to as alternative competing products andservices to what the customer is already consuming plays a major role in thecustomer deciding whether to pick one technology over the other (Richard,2017).
If the consumer perceives a significant change they are most likely tochange to the better option among the competing substitutes; if not they are lesslikely to change their preference (Richard, 2017). The said attributes enable aclient make a holistic preference of one method over another either due to repeateduse and/or solutions that the method offers (Amir & Levav, 2008). The attributescan range from cost, stability of structure, perception by the society andstandards of work (Ghose et al.
, 2013). All these parameters tend to feed intothe final client decision of whether to take or not the ACM over theconventional brick and mortar that highly popular across the world through thevarious income levels (Amir & Levav, 2008).Lackof dissemination of information on ACM has been a major stumbling block in itsuptake. Most still cling to the conventional brick and mortar technology thatis dependent on materials such as cement, steel, glass and sand whose demandfor such material further outstrips the supply leading to cases of delay indelivery, wastage of resources as well as ultimately increasing the cost (Nadim& Goulding, 2011).
Thereis bias towards manufactured building materials, and apathy towards ACM as theyare only accepted as cheaper in principle but not in practice. ACM constructionis seen as a temporal, low value, cheap and backward approach to construction(Kvarnstrom, 2014). Previous research show that when a client is presented withseveral competing alternatives to choose from, a great number opt to use whatthey have been using due to their apprehension to change. (Lu, 2007)EP3 .
Ina competitive industry like the construction industry; satisfaction of a customer’sneeds is a milestone in determining the success of the project as well asgiving a company with competitive advantage. Due to the critical role thatclients play in the construction industry; their choice of preferredconstruction methods should be factored in so as to not exclude their views inthe construction process (Ayman, 2015). EP1Seriously????Why do you define chapters and all that?? This is not a manuscript, it’s aproposal….the less the wording the better… EP2Thisreference is too old…find a more recent one EP3Anotherold reference, please fins a more recent journal that has cited this work