Benefits of Internet to Property Search in the UK - Literature review Example

How Online Search Is Useful For People Who Are Looking To Rent Property in UK Introduction Rental market in the United Kingdom is currently growing steadily an indication that many tenants are demanding rental houses. The increasing demand for houses has led to augmented prices enabling landlords to make £177 billion profit for the past five years (Allen & Pickard, 2015). First time buyers find it difficult to achieve property ranking because of the high prices, which has increased value of the rented houses. Privately rented housing increased in value by 57% compared to social rented hosing beginning from 2009 to 2014. Inadequate supply of housing enables landlords to make significant profits while the tenants find it difficult to raise the ever higher rents. National Statistics governance indicates that the average house price in UK in August 2014 was £274,000 (Brinded, 2014). It is an indication that the demand for rental property is high in UK, which shows the need to provide strategies for locating housing. Online search provides a plausible means that can help individuals who want to rent a property in UK. There is need to investigate how potential customers can benefit from the online search when they are looking for a property to rent. Therefore, this literature review tries to answer the questions relating to the factors that motivate people to use internet when looking for rental property and how firms communicate to potential buyers. The benefits and incentives to use internet provide useful concepts, an indication that online search can help individuals who seek to rent a property in the UK as reviewed from extensive literature. Literature Review Benefits of Internet to Property Search in UK i. Functional benefits Parra-López et al. (2011) explain that people usually use social media to organize and take vacations because of the functional benefits they obtain. Their main interest is to access useful information that can enable them make informed decisions about their vacations. The need to obtain information encourages many tourists to use social media when they are planning their vacation trips. Social media creates an avenue allowing individuals to share their experiences and information they have concerning purchasing and consumption (Parra-López et al., 2011). The tourists can purchase certain products and services based on the information they receive from the friends and relatives who use social media. This concept is relevant to my thesis, which seeks to explain how online search is useful to people who seek to rent a property in the UK. It tries to answer the research question that investigates whether online search helps people locate a rental property. The concept shows that internet provides a platform that enables people to access substantial information concerning the property they wish to buy. Beracha and Babajide (2013) suport the idea that internet is an important tool to many consumers who seek information concerning different products and services. Their study indicated that consumers make a purchase decision based on the information they search from the internet. Nicholson et al. (2014) argue that information concerning property renting in the UK will enable them make good decisions about the right ones. Beracha and Babajide’s study answers the research question that investigate if price motivates people to use internet when looking for a rental property. According to Beracha and Babajide (2013), developers in the real estate industry can make a decision to invest in the sector based on the number of people who search for a property online. Their study indicates that the search queries are useful to predict future demand and prices in the real estate. This concept is relevant to my thesis, which explains that online search has significant benefits to the people who are looking for a rental property. Their study is an indication that people use internet to search useful information, thus showing that online search is beneficial to those seeking to invest in the real estate industry. Online environment makes exchange of information significantly efficient, thus encouraging people to use it for their functional benefits (Tsai et al. 2011). Community members can make a purchase decision based on the information they obtain from the internet. Social media provide a collaborative activity to organize vacations hence enabling the tourists to save expenses and obtain much benefit from the resources invested (Parra-López et al., 2011). This concept answers the research question, which investigate whether price motivates people to use internet when they are looking for a rental property. They can easily analyse the market prices to select the ones that meet their needs. This shows that price is an imperative factor that motivates many customers who are looking for a property to rent in UK to use internet. ii. Social benefits As a significant benefit of internet in aiding property search, social benefits explain the development of relationships, exchange of opinions and ideas (Parra-López et al., 2011). Majority of tourists mainly use social media to plan and organize their trips because of the social benefits they obtain. They can communicate with their friends and relatives who use social media to inquire about relevant information regarding their trips. For instance, they can ask about certain tourist sites or the accommodation services in a given area hence enabling them plan effectively. This idea fundamentally relates to my thesis because it shows that internet provides a tool that allows individuals who are looking for rental property to interact with the users with similar interests. They can easily share their experiences with one another, thus enabling the buyers to make informed decisions when renting a property (Xiang, Magnini, & Fesenmaier, 2015). The concept responds to the research question, which investigates whether convenience motivates people to use online search when they need a rental property. Internet provides a platform for interaction hence allowing people to share their opinions and ideas easily (Rose, Hair, & Clark, 2011). The process allows the people who seek to rent a property to access useful information concerning appropriate locations and best prices without travelling to the places physically. Social media enable tourists to maintain personal relationships with the ones who have the same motivations on the trip hence encouraging them to consider travelling (Parra-López et al., 2011). It shows that people can rent a certain property based on the information they obtain from their friends who use the social media. The study conducted by Parra-López et al. (2011) is appropriate to the thesis statement because it shows that online search enables the individuals who want to rent a property in UK to interact and develop personal relationships. The people with similar motivations in the real estate industry encourage others to consider renting a property in a given location. iii. Hedonic and Psychological benefits Additional internet benefit in rental property search includes hedonic and psychological attainments. Hedonic and psychological benefits are some of the major factors that encourage travellers to use social media when they are planning for their vacation trips. However, it can also have significant impact on the participation of the visitors in the technologies. Their trust in the social media determines the psychological benefits they attain. The majority of them believe that they can attain useful information from these technologies. They obtain the benefits through continuous communication facilitated by the collaborative environment (Parra-López et al., 2011). The research conducted by Parra-López et al. (2011) shows that people are proud of sharing their experiences and expressing opinions in the collaborative environments. They trust the information they access from the social media, which they use to plan their trips. This concept has not been applicable in the past to UK property market in order to understand how individuals in the industry benefit from the experiences of others. This research will fill this gap by investigating the relationship between the decision to rent a property and the information obtained from the social media. Shih et al. (2013) also support that internet provides a platform that enables consumers to obtain useful information, which influence their purchase decision. Their study indicates that the majority of consumers adopt online search to seek information about products and services. They use specific search engines that enable them to satisfy their needs because they can access different goods and services. The increasing number of people who seek information from the social media indicates their level of trust in the technologies (Joo et al., 2013). They can employ search engines such as Google to look for people, goods, services, and many other things. Similarly, the concept is applicable to the people who want to rent a property hence supporting the thesis statement. The information in the internet has a high level of trust hence showing that they can identify a property of their interests based on the price and other features. Chakravarty, Kumar, and Grewal (2014) explain that businesses use internet to communicate their brands to the public. The technology enables them to connect with the potential and existing customers hence increasing their sales and competitive advantage (Boley, Magnini, & Tuten, 2013). This idea tries to answer the research question that investigates whether firms in the real estate industry use internet to reach likely customers. Consumers also benefit from the platform because they can inquire about the goods and services provided by the businesses (Chakravarty, Kumar, & Grewal, 2014). Incentives of using Internet i. Trust A common feeling solidarity or unity is necessary among members of a community in order for them to trust each other (Parra-López et al., 2011). Internet users interact together because they have similar interests and ideas. However, trust must exist to enable effective functioning of the collaborative system. All the contributors or the people who wish to participate in the process must ensure that the information they provide is trustworthy. The high level of trust in the social media encourages many people who want to rent a property to seek useful information when making decisions. They believe that the information presented by others does not mislead, and they can utilise it for their own benefits. The study conducted by Fotis, Buhalis, and Rossides (2012) concerning the use and impact of social media during the planning process of holiday travel provides similar findings. Their finding is relevant to the thesis because it shows that travellers plan for their holidays based on the experiences of others, obtained from the social media. Their finding is useful in the study because it shows that potential buyers can access the experiences of others who use social media hence enabling them to make informed decisions. Fotis, Buhalis, and Rossides (2012) explain that travellers may gain confidence when making decision about holiday trips because of the online reviews on different website. The travellers who participate in the reviews have adequate experience, and their positive remarks influence people to consider their opinions. They trust information from the reviews, which increase their confidence during decision-making hence facilitating the process. Fotis, Buhalis, and Rossides (2012) explain that rating websites also help the travellers to select accommodation and reduce the risk of pursuing the decisions that can affect them. It implies that online consumers trust their friends more than they trust the strangers, thus encouraging them to consider the information they share as useful. This concept can be applicable in the UK property market to determine whether consumers consider information on the rating websites of firms in the industry as useful. ii. Altruism Social media provide a platform that encourages active contribution by creating efficient means of information sharing and assisting unknown people (Parra-López). The network consists of individuals from different backgrounds who connect and the majority of them do not have previous socio-affective links with each other. The social media users contribute towards sharing of information and knowledge even though they do not know the ones accessing the contents. Parra-López et al. (2011) explain that the behaviour remains partly contributed by the fact that the individuals who make their contributions had also benefited from the knowledge of others at some time in the past, thus the sense to help too. The previous assistance and information they received in the networks motivates them to increasingly participate and contribute in the social media in order to return the favour. Parra-López et al. (2011) argue that the behaviour is increasing constantly and it is the foremost factor encouraging many travellers to participate in the online reviews. They share their experiences willingly to warn others and prevent them from negative experiences (Park et al., 2012). Similarly, the concept is applicable to the thesis of this paper because people with experiences in a property can also warn their friends. The results of the study conducted by Parra-López et al. (2011, p. 642) confirm that mainstream of people with urge of renting a property use social media because they value altruism that encourages them to share interesting information with others. This study is relevant to the thesis statement because it indicates that internet provides a good source of information that can benefit many users. People benefit from the knowledge and experiences of others because they are able to pursue informed decisions, which cannot affect them in future as confirmed by AlGhamdi and Moussa (2012). Park and Cho (2012, p. 400) conducted a similar study to determine the impact of social network online communities on the behaviour of consumers to seek information and make a purchase. Their findings confirmed that people usually seek information from the internet when they want to buy goods and services. The committed users benefit significantly from the networks because they usually receive alerts about apparel items, which they may consider buying. They can seek for shopping and fashion information, and obtain advice on how to select the best option (Park & Cho, 2012). Apparel consumers value brand image and trends in the society, which make them to rely on the internet to seek their peers’ opinions. Their interest is to obtain styles, which are socially acceptable to enable them match with others. This idea tries to answer the research question, which investigates whether internet allows people to locate property easily. iii. Access to technologies Parra-López et al. (2011, p. 645) argue that access to technology influence travellers to use social media when they are planning their travelling trips. Their study shows that users with previous experience with technology will readily accept it in future. The ones who access the internet frequently are more likely to search information concerning vacation trips. Accessibility to social media technologies encourages consumers to seek the opinions and ideas of other people to enable them make good decisions based on the positive experiences. Park and Cho (2012, p. 407) confirm that the information that consumers obtain from the online communities can greatly influence their behaviours when determining brands and products. Andrews and Bianchi (2013) conducted a similar study, which shows that people utilize the platform to search information, obtain recognition, and evaluate the available alternatives. This study indicates that individuals benefit significantly from the internet because they can satisfy their personal and professional needs. Similarly, the individuals who are looking to rent a property in UK can use online search to obtain relevant information. According to Kim and Ko (2012), many governmental organizations and business firms use social networks to communicate to the consumers and the public. Their study is relevant to the thesis because it shows that people can obtain useful information about rental property from the websites of firms in rental market. It responds to the research question, which explores whether firms in the property market provide information on their websites to communicate to the potential buyers. iv. Socio-technical environment The use of social media greatly depends on the level of adoption among people. The findings of the study performed by Parra-López et al. (2011) show that one should have sufficient technological level in order to use internet and social networks effectively. Their study shows that businesses, universities, colleges, governments, and social and political leaders utilise the existing social tools to perform various activities. It implies that many parties use the internet for different objectives hence showing that the platform provides a rich source of information. Hamid and McGrath (2015, p. 35) present a similar case based on their study findings, which show that many businesses use their websites to communicate product and corporate information to the customers. This concept confirms the thesis statement because it shows that the people who seek to rent a property in the UK can access relevant information from the websites of different firms. v. Predisposition towards social media and personal skills Parra-López et al. (2011) explain that increasing acceptance and use of social media depends on people’s experiences in using goods and services in the virtual environments. They consider that electronic commerce provided acceptance and ease of use, which led to its adoption among many people. The experience that people acquires when trying and using technology minimizes perceptions of risks, thus encouraging its adoption in future (Parra-López et al., 2011). This shows that many people also consider social media when planning to rent a property because of the previous experiences with the technologies. They have extensive knowledge base due to the accumulated experience that enables them to choose relevant social media for professional or personal objectives. It is a clear indication that social media is useful in satisfying different needs because they help individuals to source important information that enables them make informed decisions concerning property renting (Gao, Larsson, & Luo, 2013). This concept is relevant to the thesis statement because it shows that one can easily benefit from online search when seeking to rent a property in UK due to the extensive useful information on many websites. The study conducted by Moshrefjavadi et al. (2012, p. 81) shows that consumers’ attitude influence their decisions of purchasing service or product online. They develop positive behaviours if their previous experience with the internet technologies was good. Their finding is significant to this research because it shows that people’s experiences enable to benefit from online search when looking for rental property. Conclusion Analysis of relevant literature confirms that online search can be useful to the people who seek to rent a property in the UK. The majority of tourists use social media because of the functional and social benefits they obtain. They can interact and share their opinions and ideas when planning for vacation trips. The travellers with previous experiences share their experiences willingly, which enable others to make informed decisions. Incentives such as trust, access to technologies, altruism, and socio-technical environment also encourage the use and adoption of internet among many people. The concepts from the review are relevant to the thesis statement because internet provides a source of information that is useful to potential consumers. The individuals who seek to rent a property in the UK can use online search to identify the ones that meet their needs. This literature review tries to answer the research questions, including the factors influencing consumers to use online search to locate a property and what motivates people to use internet when looking for rental property. Bibliography AlGhamdi, K. M., & Moussa, N. A. (2012). Internet use by the public to search for health-related information. International journal of medical informatics, 81(6), 363-373. Allen, K., & Pickard, J. (2015, January 12). UK landlords make £177bn from rising house prices over 5 years. Retrieved July 30, 2015, from http://www.ft.com/intl/cms/s/2/b94cd0d2-95a8-11e4-a390-00144feabdc0.html#axzz3hOUlGTsx Andrews, L., & Bianchi, C. (2013). Consumer internet purchasing behavior in Chile. Journal of Business Research, 66(10), 1791-1799. Beracha, E., & Babajide, W. M. (2013). 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