Variation in housing design: identifying customer preferences

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

House builders in different countries are exploring ways to deliver higher levels of customisation in housing design. To create such variety at acceptable cost, it is important to know how potential buyers of new houses prioritise the different elements such as bathroom, kitchen and roof type of a house design. For parts with a great variety, several alternative solutions could be created in advance while parts with a low variety can be produced as standard solutions for all homes, thereby taking advantage of economies of scale. This paper presents the findings of a vignette-based survey about the requirements for customisation among potential buyers of new houses in the Netherlands. Based on the survey, a list of priority housing attributes is derived. This priority listing is of great importance for building developers who offer (or are considering offering) customised housing. Although people generally prefer to have the opportunity to select from options, they will be less inclined to do so if this option also means a considerable increase in price. Therefore, this study also examines the trade-off relationship between the value customers place on variety and the maximum price that can be asked for a customised housing proposition. The paper concludes with implications of the study's findings for evaluating trade-off decisions between standardisation and customisation.
Original languageEnglish
Pages (from-to)931-945
JournalHousing studies
Volume21
Issue number6
DOIs
Publication statusPublished - 2006

Fingerprint

customer
housing
trade-off
builder
economy of scale
know how
standardization
roof
Netherlands
economy
costs
cost
Values
price

Keywords

  • METIS-237047
  • IR-57823

Cite this

@article{89c381cf7d68412199fb212c7d285491,
title = "Variation in housing design: identifying customer preferences",
abstract = "House builders in different countries are exploring ways to deliver higher levels of customisation in housing design. To create such variety at acceptable cost, it is important to know how potential buyers of new houses prioritise the different elements such as bathroom, kitchen and roof type of a house design. For parts with a great variety, several alternative solutions could be created in advance while parts with a low variety can be produced as standard solutions for all homes, thereby taking advantage of economies of scale. This paper presents the findings of a vignette-based survey about the requirements for customisation among potential buyers of new houses in the Netherlands. Based on the survey, a list of priority housing attributes is derived. This priority listing is of great importance for building developers who offer (or are considering offering) customised housing. Although people generally prefer to have the opportunity to select from options, they will be less inclined to do so if this option also means a considerable increase in price. Therefore, this study also examines the trade-off relationship between the value customers place on variety and the maximum price that can be asked for a customised housing proposition. The paper concludes with implications of the study's findings for evaluating trade-off decisions between standardisation and customisation.",
keywords = "METIS-237047, IR-57823",
author = "Erwin Hofman and Halman, {Johannes I.M.} and Ion, {Roxana A.}",
year = "2006",
doi = "10.1080/02673030600917842",
language = "English",
volume = "21",
pages = "931--945",
journal = "Housing studies",
issn = "0267-3037",
publisher = "Routledge",
number = "6",

}

Variation in housing design: identifying customer preferences. / Hofman, Erwin; Halman, Johannes I.M.; Ion, Roxana A.

In: Housing studies, Vol. 21, No. 6, 2006, p. 931-945.

Research output: Contribution to journalArticleAcademicpeer-review

TY - JOUR

T1 - Variation in housing design: identifying customer preferences

AU - Hofman, Erwin

AU - Halman, Johannes I.M.

AU - Ion, Roxana A.

PY - 2006

Y1 - 2006

N2 - House builders in different countries are exploring ways to deliver higher levels of customisation in housing design. To create such variety at acceptable cost, it is important to know how potential buyers of new houses prioritise the different elements such as bathroom, kitchen and roof type of a house design. For parts with a great variety, several alternative solutions could be created in advance while parts with a low variety can be produced as standard solutions for all homes, thereby taking advantage of economies of scale. This paper presents the findings of a vignette-based survey about the requirements for customisation among potential buyers of new houses in the Netherlands. Based on the survey, a list of priority housing attributes is derived. This priority listing is of great importance for building developers who offer (or are considering offering) customised housing. Although people generally prefer to have the opportunity to select from options, they will be less inclined to do so if this option also means a considerable increase in price. Therefore, this study also examines the trade-off relationship between the value customers place on variety and the maximum price that can be asked for a customised housing proposition. The paper concludes with implications of the study's findings for evaluating trade-off decisions between standardisation and customisation.

AB - House builders in different countries are exploring ways to deliver higher levels of customisation in housing design. To create such variety at acceptable cost, it is important to know how potential buyers of new houses prioritise the different elements such as bathroom, kitchen and roof type of a house design. For parts with a great variety, several alternative solutions could be created in advance while parts with a low variety can be produced as standard solutions for all homes, thereby taking advantage of economies of scale. This paper presents the findings of a vignette-based survey about the requirements for customisation among potential buyers of new houses in the Netherlands. Based on the survey, a list of priority housing attributes is derived. This priority listing is of great importance for building developers who offer (or are considering offering) customised housing. Although people generally prefer to have the opportunity to select from options, they will be less inclined to do so if this option also means a considerable increase in price. Therefore, this study also examines the trade-off relationship between the value customers place on variety and the maximum price that can be asked for a customised housing proposition. The paper concludes with implications of the study's findings for evaluating trade-off decisions between standardisation and customisation.

KW - METIS-237047

KW - IR-57823

U2 - 10.1080/02673030600917842

DO - 10.1080/02673030600917842

M3 - Article

VL - 21

SP - 931

EP - 945

JO - Housing studies

JF - Housing studies

SN - 0267-3037

IS - 6

ER -