Decision Making Process for Accommodation

Decision Making Process for Accommodation

Decision Making Process - Introduction

Decision Making Process Accommodation is one of the basic requirements of a human being. Food and shelter is also the primary level of needs in various psychological theories like hierarchical theory of needs etc.  An accommodation is one of the most important decisions of an individual because an accommodation directly reflects the life style of a human being which impacts his work life’ personal life and quality of living directly. The satisfaction level of a human being is also achieved partially by the choice of accommodation (Daniel K, Amos T. 2000).  An accommodation not only provides the basic shelter but it also gives the individual a sense of owner ship and pride. It defines his status in the social environment and provides a security blanket for himself and his family for years to come. In this report there will be a decision matrix analyzing 6 different alternatives of the accommodation choices within Australia. All accommodation choices are either rented of owned residential places. There are different patterns in an individual’s choice based on his personality traits and paying capacity which will be evaluated with alternatives of the homes. In second list five evaluation criteria are developed based on which opinion of 3 different individuals for different choices will be recorded and analyzed (Martinsons, Maris G., 2001). Further in the report an analysis of different personality traits and demographic facts will be done to find out the preferences or choices most probably made by an individual. By this report the researcher is attempting to gain insights on the decision making process of an individual which is based on different criteria of decision matrix formed. The analysis of a consumer’s most preferred choices and possible decision he will be making is a very important and strategic tool in the hand of a marketing professional. If a marketing personal and professional is well aware of his target audience’s choice and preferences and understand their decision making process he can provide the customized solutions which will be addressing their requirements optimally thus gaining himself a sustainable advantage over his competitors (Damasio, AR. 1994).

Decision matrix:-

A decision matrix is basically a grid of two different lists of criteria and alternatives which are systematically organized and each criteria has been given some weight based on the level of importance it occupies in an individual’s decision making process. The decision matrix process has been developed by Mr. Stuart Pugh and it is also known as Pugh Method of decision making. It is a decision making technique which is quantitative in nature and it does not rely on the subjectivity or biases of an individual but it provides the solid numerical weight to each alternative so that a decision is based as objectively as possible. Based on the pre decided criteria each alternative or choice is compared or graded and provided with a score. This score is then summed up to find out which alternative is attracting highest score thus giving us an idea about which alternative is most suitable in our criteria of selection making. The advantages associated with this type of decision making process is the enhanced sensitivity of the process which can change its alternatives even with a slight movement in criteria and also provide us the actual difference between the most preferred and second most preferred alternative. The other advantage is added objectivity in a decision making process which are conventionally based on a lot of subjective and pre formed notions (Triantaphyllou, E. 2000).

List of Accommodation Choices

The list of accommodation choices provided in this report for different locations in Australia is

  1. A 3 bedroom rented apartment in downtown Sydney ( rent approximately:- 5000 AUD per month)
  2. A single Owned accommodation studio apartment in suburban region of Melbourne (EMI:- 1500 AUD a month for 10 years)
  3. A shared 2 bedroom apartment within a multi story building which provides accommodation to university students in Victoria’ Queensland (rent:- 2000 AUD per month including boarding and lodging expenses).
  4. An 2 bedroom owned ground level home in a up and coming neighborhood in Perth ( EMI: 2000 AUD per month for 15 years)
  5. A pre owned and leased 1 bedroom house with wooden floorings in the suburban town of Biloxi. ( Lease rent:- 1500 AUD per month and lease agreement for 3 years)
  6. A 2 bedroom residential apartment in the downtown Melbourne with full ownership. ( EMI:- 4000 AUD per month for 20 years)

List of decision making criteria

For this report 5 different decision making criteria were selected and each criteria would be given weight in the decision making matrix based on their importance for the particular individual and his needs. The five criteria are

  1. Price of the residential place
  2. Own relationship status
  3. Distance of residence from the work place
  4. Safety level of the residential area
  5. Accessibility to public transportation

The three people who are chosen for the evaluation of decision making matrix have following characteristic

IndividualA:- A single 28 year old female who is working as a young executive in a bank and just moved to the urban area. She is a very extrovert in nature and prefers to have an active social life and travelling. She is not planning to get married for another 4 years and she wants to lead a independent life but in a secure area till then. She has a salary of 6000 AUD per month and she has to send 1000 AUD per month back and home also do some savings for her future.

Individual B: - a 58 year old retired government official who has been living in government provided quarters till now. The person is suffering from anxiety and looking for a quite place where he can relax and lead a calm life. He has the purchase potential for high end property and used to of living in metropolitan area and would not prefer to change his life style. He is married with a dependent wife and all their children are living outside Australia because of their jobs.

IndividualC:- a foreign single male 27 year old university student belonging to India who is joining the university of  Queensland for post graduation studies. He is by nature a shy personality and prefers to live in solitude. He is on a scholarship of 3500 AUD per month for his sustenance and he does not have other means of earning as if now. He will need an accommodation for 2 years of study period and once he gets a job he is planning to move to other accommodation available (Douglas B.C.’ 2009).

Weightage for each criterion

As per the personal choice each criteria for selection is presented to the 3 individuals and it was asked them to rate each one of them on a scale of1 to5 where 1 being very important and 5 being least important. The three individuals weighted their choices as follows:-

Decision Making Process Accommodation

The next matrix will represent the ranks provided to each accommodation choice based on the criteria of selections by three individuals. The ranking scale here is again from1 to 5 where 5 is very suitable and 1 is least suitable for the individual.

Individual a:-

Decision Making Process Accommodation

Individual b:-

first Decision Making Process Accommodation

Individual c:-

two Decision Making Process Accommodation

Application of compensatory decision rule

A compensatory decision rule can be explained as a decision making formulae of a customer where they evaluate different attributes or features of any product or services and then assign a mental weightage to each criteria and evaluate the whole product based on it. The final decision of customer is based on the overall score which he calculate in his mind most of the times however similar formula is also applied by large organizations in a written form which we know as tendering process of purchase making. Here in the decision matrix developed above for three different individuals with different personalities and earning status for their choice of accommodation.  The difference in the actual choice of a person and the decision they finally make for purchase can be easily explained by the compensatory decision making formulae where one negative or less important attribute is compensated by other attribute of same product (Drake, R. A. 1993).

Most likely final choices of all individuals

Individual A:- She is a young working female with an extrovert nature and her original choice would be to live in a self owned down town home which more suits to her life style and choices but because of various decision making criteria and constraints on her part she most probably is likely to chose A pre owned and leased 1 bedroom house with wooden floorings in the suburban town of Biloxi. (Lease rent:- 1500 AUD per month and lease agreement for 3 years)

IndividualB:- a retired government official who has sufficient disposable income and looking for a calm and relaxing environment. He might be able to purchase a 3 bedroom home for himself in downtown Sydney but looking at his choice of a relaxing environment he is most likely to make a choice of A 2 bedroom residential apartment in the downtown Melbourne with full ownership. ( EMI:- 4000 AUD per month for 20 years).

IndividualC:- a 26 year old male university student who is shy in nature and living on a scholarship and occasion part time work. He might prefer to stay in a self owned single studio apartment where he can enjoy her solitude life style but looking at his financial market constraint and preference towards closeness to university he most probably would make the decision in favor of  A shared 2 bedroom apartment within a multi story building which provides accommodation to university students in Victoria’ Queensland (rent:- 2000 AUD per month including boarding and lodging expenses).

Analysis of choices based on personality traits

All though the choices are based on a lot of factors the final choice is based on the factor which is most important for an individual. It has been apparent from the above decision matrix and compensatory decision rule that various attributes carry different importance. Here in this section we will be analyzing a few personalities and demographic attributes of individuals in context of their choices. Each individual has made the choice which is optimally best for their needs and preferences.

Personality traits of individual A are that she would prefer to stay in an area where she can be easily in touch with her friends and acquaintances. She also has an active social life and her nature is extrovert.  From these brand personality traits we can assume that she would prefer to live independently and it might not be easy for her to adjust with other individual. Her active life style would also pose a problem for her roommates. Considering these factors it would be a better choice for her to go for an individual accommodation choice.

Her demographic attributes include female/ single/ 28/working. With these attributes a person would prefer to live in a place which is safe and closer to her work place. A person will also prefer a place where it would be easier for her to commute and access public transportation. Since she is a young working person she can afford only a reasonable amount for accommodation expenses and the choice she made in the accommodation appears to be reasonable fulfilling her needs (Hipp, J.W.’ 2008).

Personality of individual B is a contrasting feature from individual A. the person is retired from his work and looking for a calm place to live. He is suffering from anxiety and all these factor makes him a personality who is very strict and inflexible for his needs. He might pay more money just to find the right place and would prefer a place where no one disturbs him from his serenity. The demographic facts of this individual are 58 year /male/ married. These demographic facts also makes him a person who wants to live in a calm environment but not far from the city as he would not be able to travel for long distances and wants to stay in closer distances with amenities and facilities like hospitals and libraries.

Personality of Individual C is a mixture of both personalities A and B. all though he is a young individual but he likes to live in solitude and he is shy in nature. Person of this nature are highly independent and they would always prefer to stay in a apartment where they are not disturbed. The demographic features of this person are 26 year/ male/ student. His student designation also wants him to stay in a place which is neither far from university and also in neighborhood of other students as they would need each other’s assistance for studies (Monahan, G. 2000).


Accommodation is one of the basic requirements of life and each individual would prefer to stay in a place where he or she can enjoy the life the way they want to. The decision of choosing a accommodation is one of the major decisions of life and it takes a lot of thinking process before reaching a final conclusion. Many consumer behavior studies have focused on the fact that the decisions which are big in nature are never taken in a whim but they are taken after due diligence and weighing each attributes against the criteria set by the customer. this particular concept is very helpful in forecasting the responses of a target audience and organizations takes consideration of this concept very highly while developing a particular product or service for a specific group of people (Theankbj;j o S. T.’ 1995).

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