Customer Satisfaction in Home Building

Abstract

To successfully compete in the long term, a company must be sure current customers are satisfied. Providing superior quality and keeping customers satisfied are rapidly becoming the ways companies differentiate themselves from competitors. This study examines empirically home builders' performance as measured by the degree of home buyers' satisfaction. Sixteen Florida-based home builders agreed to participate in the study and to allow contact with their recent home buyers. Nearly 300 of these home buyers provided valuable input to the study. A model was proposed, describing home-buyer satisfaction as a three-dimensional composite of satisfaction with house design, house quality, and service. All three dimensions were found to be significant predictors of overall home-buyer satisfaction. Service emerged as the most important component in shaping the overall satisfaction. However, service was the area in which home builders demonstrated the poorest performance. The study results suggest that service deserves the most attention. It can have a far-reaching positive influence on home-buyer satisfaction.