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A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic

The real-estate business is considered one of the significant contributors to the economy of Bangladesh. However, the sudden occurrence of the COVID-19 pandemic exacerbates the housing business and the owners have been struggling to sell their apartment units. The instability of the income pattern o...

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Detalles Bibliográficos
Autores principales: Hasan, Kazi Wahadul, Hanif, Maliha Binte
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer International Publishing 2022
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9510762/
https://www.ncbi.nlm.nih.gov/pubmed/36185826
http://dx.doi.org/10.1007/s43546-022-00330-2
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author Hasan, Kazi Wahadul
Hanif, Maliha Binte
author_facet Hasan, Kazi Wahadul
Hanif, Maliha Binte
author_sort Hasan, Kazi Wahadul
collection PubMed
description The real-estate business is considered one of the significant contributors to the economy of Bangladesh. However, the sudden occurrence of the COVID-19 pandemic exacerbates the housing business and the owners have been struggling to sell their apartment units. The instability of the income pattern of the customers and dwindling competitions among the real-estate business marketers during and after the COVID-19 pandemic necessitate revising the sales plan of the rental units. This research aims to develop a three-stage optimal selling model considering two random factors that the sellers face exclusively during the COVID-19 pandemic. The number of units sold in each stage is influenced by two random variables: (i) the time span between the initial stage and the final stage and (ii) the income-level inconsistency. This study highlights the randomness of these two factors with the aid of gamma distribution and optimizes the pricing model for three different stages. The findings of this research are illustrated with both numerical and graphical representations considering two different scenarios named identical and independent strategies of pricing. A comparative analysis has been conducted for these two strategies which would help the management to switch decisions depending on the market volatility. The results indicate that sellers can maximize their revenues by selling most of the units at the initial stage; however, sales in the second and third stages are also significant, depending upon the readiness of buyers.
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spelling pubmed-95107622022-09-26 A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic Hasan, Kazi Wahadul Hanif, Maliha Binte SN Bus Econ Original Article The real-estate business is considered one of the significant contributors to the economy of Bangladesh. However, the sudden occurrence of the COVID-19 pandemic exacerbates the housing business and the owners have been struggling to sell their apartment units. The instability of the income pattern of the customers and dwindling competitions among the real-estate business marketers during and after the COVID-19 pandemic necessitate revising the sales plan of the rental units. This research aims to develop a three-stage optimal selling model considering two random factors that the sellers face exclusively during the COVID-19 pandemic. The number of units sold in each stage is influenced by two random variables: (i) the time span between the initial stage and the final stage and (ii) the income-level inconsistency. This study highlights the randomness of these two factors with the aid of gamma distribution and optimizes the pricing model for three different stages. The findings of this research are illustrated with both numerical and graphical representations considering two different scenarios named identical and independent strategies of pricing. A comparative analysis has been conducted for these two strategies which would help the management to switch decisions depending on the market volatility. The results indicate that sellers can maximize their revenues by selling most of the units at the initial stage; however, sales in the second and third stages are also significant, depending upon the readiness of buyers. Springer International Publishing 2022-09-26 2022 /pmc/articles/PMC9510762/ /pubmed/36185826 http://dx.doi.org/10.1007/s43546-022-00330-2 Text en © The Author(s), under exclusive licence to Springer Nature Switzerland AG 2022, Springer Nature or its licensor holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law. This article is made available via the PMC Open Access Subset for unrestricted research re-use and secondary analysis in any form or by any means with acknowledgement of the original source. These permissions are granted for the duration of the World Health Organization (WHO) declaration of COVID-19 as a global pandemic.
spellingShingle Original Article
Hasan, Kazi Wahadul
Hanif, Maliha Binte
A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic
title A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic
title_full A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic
title_fullStr A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic
title_full_unstemmed A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic
title_short A pricing model for real-estate business in Bangladesh incorporating the uncertainty in buyer’s readiness: considerations during COVID-19 pandemic
title_sort pricing model for real-estate business in bangladesh incorporating the uncertainty in buyer’s readiness: considerations during covid-19 pandemic
topic Original Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9510762/
https://www.ncbi.nlm.nih.gov/pubmed/36185826
http://dx.doi.org/10.1007/s43546-022-00330-2
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