The Application of Compensatory Decision Rule - Assignment Example

page Executive summary Strategic marketing implies knowing how people make their buying decisions. For this purpose it is important to understand what particular demographic and personal characteristics of the target audience influence the buying behaviour. Therefore, this paper contains a report on how three representatives of different populations (in terms of demographic and personal characteristics) rate evaluative criteria and choose among the provided accommodation options. Responses of the respondents are analysed considering the differences in their demographic and personal features in order to provide the marketers with some advice on how useful an application of compensatory decision rule can be in the processes of targeting, market segmentation and product positioning. Table of Contents 1. Introduction 5 2. Creating decision matrix 5 2.1. Accommodation options 5 2.2. Evaluative criteria 6 2.3. Decision matrix 6 3. Application of compensatory decision rule 7 3.1.2. Rating each option against each of the criteria 8 3.1.3. Compensatory decision rule to calculate which option this respondent is most likely to choose 9 3.1.4 Calculation results and real choices. 9 3.2. Respondent 2 10 3.2.1. Ranking evaluative criteria (based on the allocation of 100 points importance score) 10 3.2.2. Rating each option against each of the criteria 10 3.2.3. Compensatory decision rule to calculate which option this respondent is most likely to choose 11 3.2.4 Calculation results and real choices. 11 3.3. Respondent 3 12 3.3.1. Ranking evaluative criteria (based on the allocation of 100 points importance score) 12 3.3.2. Rating each option against each of the criteria 12 3.3.3. Compensatory decision rule to calculate which option this respondent is most likely to choose 13 3.3.4 Calculation results and real choices. 14 4.1. Why are respondents' rankings of evaluative criteria different? 14 4.1.1. Demographic reasons 14 4.1.2. Personality reasons 15 4.2. Why are respondents' choices different? 16 4.2.1. Demographic reasons 16 4.2.2. Personality reasons 17 4.3. Recommendations for marketers of these accommodation options 17 5. Conclusion 18 References 19 Appendix I 21 1. Introduction There are as many opinions and preferences as there are people in the world. The goal of marketing, nevertheless, is to develop strategies and techniques that will make a particular product appealing to people. In order to achieve this goal it is necessary to, in the first place, know what people want or know how they choose what they buy. Therefore, the purpose of this paper is to analyse how people use different evaluative criteria in the process of making buying decisions, how demographic and personality reasons influence the importance of certain evaluative criteria, and why the results of empirical buying behaviour research might differ from real life consumer behaviour. For the purpose of accomplishing the set above goals a sample population of 3 people will be offered to evaluate six accommodation options selected for this study, as well as six evaluative criteria relative to the provided options. The compensatory decision rule will be used for evaluating the choices people make. Answers of the respondents will be analysed with the purpose of determining what particular factors had the greatest impact on their decision-making, so that it will be possible to provide the marketers with certain recommendations regarding practical applications of the gathered information. 2. Creating decision matrix 2.1. Accommodation options The listed below 6 accommodation options were chosen for the purpose of completing this task. Detailed descriptions and pictures are provided in Appendix I. 1. Buying a house in Barwon Heads for $695,000. 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne . 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 (Unit 704/710-722 George Street, Sydney, NSW, 2000). 5. Sharing an apartment in Sydney with 7 people for $125. 6. Renting a 1-bedroom studio for $320 per week in Sydney (9/147 Brougham Street, Woolloomooloo). 2.2. Evaluative criteria The evaluative criteria that people might consider when choosing their accommodation were chosen as follows: Price – price of buying or renting a house, an apartment or a room – the price a person would be willing to pay for the chosen option; Infrastructure - accessibility or need for public transportation, availability of schools/kindergartens, stores, cafes, etc.; Available entertainment/activities – options for spending leisure time; Rural or urban area – environment, natural resources (forests, parks, rivers, etc.); Furniture Design Each of the six criteria has been assigned a value from 1 to 6, where 6 is very important and 1 – the least important. 2.3. Decision matrix The following decision matrix was created on the basis of the selected accommodation options and evaluative criteria. Option Price Infrastructure Entertainment Area Furniture Design Total 1. Buying A house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 5. Sharing an apartment in Sydney with 7 people for $125 per week 6. Renting a 1-bedroom studio for $320 per week in Sydney 3. Application of compensatory decision rule For the purpose of this study each of the three respondents was asked to rank the provided evaluative criteria (based on the allocation of 100 points importance score) and then rank each of the provided accommodation options against each of the criteria. The decision matrix, along with the presented above descriptions of the available options were given to three people of different ages, lifestyles and occupations. The people were asked to rate each accommodation option on the list against each of the criteria, giving the value from 6 to 1 to each of the options. 3.1. Respondent 1 A female, 28 years old, freelance writer, has a family – a husband and a 4-year-old daughter. 3.1.1. Ranking evaluative criteria (based on the allocation of 100 points importance score) Price 25 Infrastructure 25 Entertainment 10 Area 20 Furniture 5 Design 15 Total 100 3.1.2. Rating each option against each of the criteria Option Price Infrastructure Entertainment Area Furniture Design Total 1. Buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 4 6 1 5 1 5 22 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 6 1 6 6 3 2 24 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 3 3 2 4 6 3 21 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 5 5 5 2 2 6 25 5. Sharing an apartment in Sydney with 7 people for $125 per week 1 2 3 1 4 1 12 6. Renting a 1-bedroom studio for $320 per week in Sydney 2 4 4 3 5 2 20 3.1.3. Compensatory decision rule to calculate which option this respondent is most likely to choose 1. Buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 25(4)+25(6)+10(1)+20(5)+5(1)+15(5)=100+150+10+100+5+75=440 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 25(6)+25(1)+10(6)+20(6)+5(3)+15(2)=150+25+60+120+15+30=370 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 25(3)+25(3)+10(2)+20(4)+5(6)+15(3)=75+75+20+80+30+45=325 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 25(5)+25(5)+10(5)+20(2)+5(2)+15(6)=125+125+50+40+10+90=440 5. Sharing an apartment in Sydney with 7 people for $125 per week 25(1)+25(2)+10(3)+20(1)+5(4)+15(1)=25+50+30+20+20+15=1160 6. Renting a 1-bedroom studio for $320 per week in Sydney 25(2)+25(4)+10(4)+20(3)+5(5)+15(2)=50+100+40+60+25+30=215 3.1.4 Calculation results and real choices. Using the compensatory decision rule it can be said that Respondent 1 is most likely to choose option 4 - buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 or option 1 - a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads. In reality the woman said she would stop her choice on option 1 - buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads. She explains it by the fact that the nature of her job allows her to live in a small city, which she would prefer to a megapolis. Barwon Heads has a kindergarten and a school for her child, river and parks where she can take the child, fresh air and walking distances, newly built house – these all were the reasons for such a choice. It can be seen that this individual prefers buying a house instead of renting it. However, even though price is ranked high as an evaluative criteria in this case, the behaviour shows that Person 1 is not acting as an Enonomic Man, who would choose the cheapest place to buy (Option 2), but is rather driven by such rational influences as social relationships and values (Simon, 1997) – to busy urban area she prefers a quit rural place where she can bring up the child. 3.2. Respondent 2 A male, 36 years old, design engineer, divorced, has a 6-year-old son living with his mother. 3.2.1. Ranking evaluative criteria (based on the allocation of 100 points importance score) Price 15 Infrastructure 25 Entertainment 25 Area 25 Furniture 5 Design 5 Total 100 3.2.2. Rating each option against each of the criteria Option Price Infrastructure Entertainment Area Furniture Design Total 1. Buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 2 2 6 2 1 5 18 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 4 1 5 1 2 2 15 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 6 6 2 3 6 3 26 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 3 4 4 6 3 6 26 5. Sharing an apartment in Sydney with 7 people for $125 per week 1 3 1 4 4 1 14 6. Renting a 1-bedroom studio for $320 per week in Sydney 5 5 3 5 5 4 27 3.2.3. Compensatory decision rule to calculate which option this respondent is most likely to choose 1. Buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 15(2)+25(2)+25(6)+25(2)+5(1)+5(5)=30+50+150+50+5+25=310 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 15(4)+25(1)+25(5)+25(1)+5(2)+5(2)=60+25+125+25+10+10=255 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 15(6)+25(6)+25(2)+25(3)+5(6)+5(3)=90+150+50+75+30+15=410 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 15(3)+25(4)+25(4)+25(6)+5(3)+5(6)=45+100+100+150+15+30=440 5. Sharing an apartment in Sydney with 7 people for $125 per week 15(1)+25(3)+25(1)+25(4)+5(4)+5(1)=15+75+25+100+20+5=240 6. Renting a 1-bedroom studio for $320 per week in Sydney 15(5)+25(5)+25(3)+25(5)+5(5)+5(4)=75+125+75+125+25+20=445 3.2.4 Calculation results and real choices. According to the matrix, Respondent 2 is most likely to choose option 6 - renting a 1-bedroom studio for $320 per week in Sydney. The individual, however, said that he would prefer option 3 - renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne, because it is cheaper and is located in a quieter place. He is not planning to buy an accommodation, so chooses to rent, and prefers living in or around a large city, where he would have more opportunities to find a good job. This shows that even though attributes of Option 6 appeal to him in general, he bases the final choice on a more limited number of the criteria or objectives. As suggested by compensatory decision-making, the chosen option was selected via optimizing a single objective function, as suggested by multi-attribute utility models and reflecting a rational procedure of choice (Shiloh et. al., 2001). 3.3. Respondent 3 A female, 19 years old, student, not married, has no kids. 3.3.1. Ranking evaluative criteria (based on the allocation of 100 points importance score) Price 40 Infrastructure 20 Entertainment 10 Area 10 Furniture 15 Design 5 Total 100 3.3.2. Rating each option against each of the criteria Option Price Infrastructure Entertainment Area Furniture Design Total 1. Buying A house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 1 2 2 2 1 6 14 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 3 1 1 1 3 1 10 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 5 3 3 3 5 3 22 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 2 4 6 4 2 5 23 5. Sharing an apartment in Sydney with 7 people for $125c 6 6 5 6 4 2 29 6. Renting a 1-bedroom studio for $320 per week in Sydney 4 5 4 5 6 4 28 3.3.3. Compensatory decision rule to calculate which option this respondent is most likely to choose 1. Buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads 40(1)+20(2)+10(2)+10(2)+15(1)+5(6)=40+40+20+20+15+30=165 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 40(3)+20(1)+10(1)+10(1)+15(3)+5(1)=120+20+10+10+45+5=210 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne 40(5)+20(3)+10(3)+10(3)+15(5)+5(3)=200+60+30+30+45+15=380 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 40(2)+20(4)+10(6)+10(4)+15(2)+5(5)=80+80+60+40+30+25=315 5. Sharing an apartment in Sydney with 7 people for $125 per week 40(6)+20(6)+10(5)+10(6)+15(4)+5(2)=240+120+50+60+60+10=540 6. Renting a 1-bedroom studio for $320 per week in Sydney 40(4)+20(5)+10(4)+10(5)+15(6)+5(4)=160+100+40+50+90+20=460 3.3.4 Calculation results and real choices. The calculation results show that Person 3 is most likely to choose option 5- sharing an apartment in Sydney with 7 people for $125 per week. The real choice is the same. She explains it by the fact that while she is studying she cannot afford to pay for a more expensive accommodation. Though she would prefer to live alone, or at least with a smaller number of people, she can give up this desire in order to save money. 4. Analysis of choices Most of the buying decisions, especially if they are as important as the choice of a place to live, are rather rational, because they balance search efforts with the utility of choosing from the consideration set (Hauser, Ding and Gaskin, 2009). Consequently, people rank different evaluative criteria differently depending on how important and relative certain criterion is for the particular individual. A person might rank features, focus a few of them or accept alternatives on the basis of demographic and personality reasons, among others. In any case, a potential customer does not consider all the options available in the market (Silk and Urban, 1978), but chooses among the most appealing ones. For the purpose of this study only demographic and personality reasons will be analysed in their relation to respondents’ rankings of evaluative criteria and accommodation choices. 4.1. Why are respondents' rankings of evaluative criteria different? Results of the survey show that Respondent 1 chose price and infrastructure as the most important criteria for selecting an accommodation. For Respondent 2 the most important were infrastructure, entertainment and area. For the third Respondent the most relevant and important was the price. These differences can be explained by differences in demographic and personal characteristics of the three people. 4.1.1. Demographic reasons Infrastructure showed to be important to two people. However, for Respondent 1 infrastructure was important because she has a child who has to attend a kindergarten and school. For Respondent 2 infrastructure was important due to its providing access to job opportunities and entertainment. So in this aspect profession, family status and, more broadly, lifestyle of the two people were influencing their choices of the most important evaluative criteria. Indeed, as Engel et al (1995) suggest, life-style defining activities, such as work, hobbies or entertainment, have a great impact on consumers’ decision-making. The life-style variables, being influential in the process of buyer’s decision-making, can be quantified. As a result, people used to certain lifestyles, can be divided into different market segments, since they base their evaluative criteria on different life-style needs (Assael, 1995). As for Respondent 3, for this person the most important evaluative criteria was price, because she is a student and simply cannot afford much more expensive accommodation. So in this situation it can be seen that social status (entailing income level, occupation, age, etc.) was the reason for such a ranking of the evaluative criteria. On contrast, for respondents 1 and 2 price was not as important as for Respondent 3, because the older people have a higher social status and income that allow them to base their ranking on other than price factors, such as convenience (Engel et al, 1995). 4.1.2. Personality reasons Personality reasons are another important aspect that influences the rankings of evaluative criteria. Respondents 1 is rather an introvert spending most of the time at home – working – or with the family. Respondents 2 and 3 are extroverts – spending much time outside, communicating with people. This fact explains why for all the three people infrastructure and entertainment criteria have different values and even meaning. While for Respondent 1 infrastructure is important due to the need for access to child’s education, for Respondents 2 and 3, who are more outgoing, infrastructure is important for the access to social life. It is also worth noting and Respondent 1 is a creative individual, so for her design of the accommodation is more important than for Respondents 2 and 3 who view their accommodation just as a place for living – so these people have different perception of the concept of accommodation. As a result, Respondent 1 is more keen on making a buying decision on the basis of own personality, as Hawkins et al (2001) explain. This means that Respondent 1, unlike the other two, is likely to choose an accommodation with which she can identify herself (ibid). 4.2. Why are respondents' choices different? Just like the rankings of evaluative criteria, the choices of the three people are also different. However, while evaluative criteria rankings have something in common, the accommodation choices are totally different. The difference in choices, just like the difference in evaluative criteria rankings, can be linked to demographic and personality differences of the three people. 4.2.1. Demographic reasons Respondent 1 chose buying a house with 3 bedrooms and 2 bathrooms for $695,000 in Barwon Heads. Respondent 2 chose renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne. Respondent 1 chose sharing an apartment in Sydney with 7 people for $125 per week. Motivation of each individual for choosing the particular option was different, but the factors that influenced the decision were alike: social class, family, situation, values and lifestyle. These environmental and individual influences, as suggested by Blackwell et al. (2001), are external variables that shape consumers’ buying behavior. In particular: lifestyle, values, social class and family are the key reasons making Respondent 1 choose to buy, not to rent, a house in the country – she can afford it, she wants to live in a quite place and bring up the child in rural area. Respondent 2 made the mentioned choice due to social class, family situation and lifestyle – he can afford renting an apartment in a suburb, has no family and wants to have access to various types of entertainment. Responded 3 based her choice mostly on social class and values factors – she cannot afford expensive accommodation and believes studying is more important than living in an expensive place. 4.2.2. Personality reasons Respondent 1 is an introvert, as well as a creative individual. For this reason she chooses to live a small quite town surrounded by nature that can give this person the inspiration she needs in her work. Being more outgoing, the two other people prefer being in the midst of events, so choose to live either in the city or in a suburb – to have an opportunity to enjoy the megapolis life-style. 4.3. Recommendations for marketers of these accommodation options The provided above information can be very useful for marketers in the process of market segmentation. The overall market is represented by numerous customers with different demographic (age, gender, education and income levels, etc.) and non-demographic (i.e. values, preferences) characteristics which, in their turn, form different types of buying behaviors (Yankelovich and Meer, 2006). So market segmentation is to divide the heterogeneous market into several, homogeneous in some aspect, segments for determining a few, the most promising and prospective, market segments to focus on. Otherwise, if marketing activities of the company are not focused, the business is possible to “spread its resources too thinly to combat competition pressure” (White and Uva, 2000, p.10). In particular, research data on the basis of compensatory decision rule can be used for the following types of targeting and segmentation: price segmentation to offer different products for people with different income levels; psychographic and behavioral segmentation to satisfy the needs of individuals with different values and life-styles; demographic, psychographic and behavioral segmentation to offer specific products to people of different situations. 5. Conclusion How a person evaluates the choices depends on how involved the person is. Considering that choosing an accommodation is a quite important step in each person’s life, the individual will, in most cases, be attentive and selective, and base the choice on a number of relevant and important evaluative criteria. Both rankings of evaluative criteria and the final choice will, in their turn, depend on a number of demographic and personal reasons that shape the buying behaviours and the choice of a decision rule (conjunctive, disjunctive, elimination-by-aspects, lexicographic or compensatory). Therefore, it is necessary to consider demographic and personal reasons when targeting, segmenting the market and positioning the particular product. References Assael, H 1995, Consumer behavior and marketing action, South-Western College Publishing, Cincinnati. Blackwell, R., et al., 2001. Consumer Behavior. 9th ed. Orlando: Harcourt. Domain.com.au, 2013. 2/7 Stanhope Court SOUTH YARRA. [online] Available at: [Accessed 20 August 2013]. Engel, J.F., Blackwell, R.D. and P.W. Miniard, 1995. Consumer behavior. International ed. Florida. Dryden. Flatmates.com.au, 2013. Room for rent Ultimo, Sydney $125pw. [online] Available at: [Accessed 20 August 2013]. Firstnational Real Estate, 2013. BERRIDALE, 7/9 Berrivilla Close. [online] Available at: [Accessed 20 August 2013]. Hawkins, D.I., Best, R.J., Coney, K.A., 2001, Consumer behavior, 8th ed. Irwin McGraw Hill. Hauser, J., Ding, M. and S.Gaskin, 2009. Non-Compensatory (and Compnsatory) Models of Consideration-Set Decisions. Sawtooth Software Conference Proceedings 2009: pp.207-232. Qpzm Local Stats Australia, 2013. Barwon Heads Demographics (VIC) Local Stats. [online] Available at: [Accessed 20 August 2013]. REA Group Ltd., 2013. 9/147 Brougham Street Woolloomooloo NSW 2011. [online] Available at: [Accessed 20 August 2013]. REA Group Ltd., 2013. 37-39 Golf Links Road Barwon Heads Vic 3227. [online] Available at: [Accessed 20 August 2013]. Realestateview.com.au, 2013. Unit 704/710-722 George Street, SYDNEY, NSW, 2000. [online] Available at: [Accessed 20 August 2013]. Shiloh, S., Koren, S., & Zakay, D. (2001). Individual differences in compensatory decision-making style and need for closure as correlates of subjective decision complexity and difficulty. Personality and Individual Differences, 30: pp. 699–710. Silk, A.J. and G.L. Urban (1978), “Pre-test Market Evaluation of New Packaged Goods: A Model and Measurement Methodology,” Journal of Marketing Research, 15 (May): pp. 171-191. Simon, H., 1997. Administrative Behavior: A Study of Decision-Making Processes in Administrative Organizations. 4th ed. ed. New York: The Free Press. Yankelovich, D. and Meer, D., 2006. Rediscovering Market Segmentation. Harvard Business Review, February Issue: pp.1-10. White, G. B. and Uva, W. L. 2000. Developing a Strategic Marketing Plan for Horticultural Firms. E.B. 2000-01, Dept. of Agricultural, Resource, and Managerial Economics, Cornell University, Ithaca, New York. Appendix I Accommodation options. 1. Buying a house in Barwon Heads for $695,000. A house with 3 bedrooms and 2 bathrooms for $695,000. The building size is 214.00 m? (23 squares) and land Size is 402 m?. The house is not built yet, so if it is purchased prior to construction beginning, a considerable amount of stamp duty tax will be saved. The house is located at 37 Golf Links Road in Barwon Heads, Vic 3227 (REA Group Ltd., 2013). There are parks, a river and the Bass Strait not far from the house, Barwon Heads Golf Club. The town is located in about 97 from Melbourne and its population made 3,536 in 2011. Barwon Heads The median mortgage repayment in Barwon Heads is $1733 per month. (Qpzm LocalStats Australia, 2013). Since the town is small, all the facilities, such as kindergartens, schools, etc. are close to the house. Besides, 2. Buying a 2-bedroom and 1-bathroom apartment in Berridale Village for $129,000 A 2-bedroom and 1-bathroom apartment in Berridale Village. The apartment is fully furnished and can be bought for $129,000. There is a primary school in the village. Since it is small – only 844 people live there, so there is no need to use transportation - one can just walk to any needed location. The apartment includes 2 bedrooms upstairs, a lounge, dining, a kitchen and a garage downstairs, a garden and BBQ entertainment area. In addition, the village is located half way between Cooma & Jindabyne and 45 minutes to the ski slopes (Firstnational Real Estate, 2013). 3. Renting a fully furnished studio apartment for $230 per week in a suburb of Melbourne. A fully furnished studio apartment for $230 per week. It is located at a walking distance to Rockley Gardens, Toorak Road shops and trams (Domain.com.au, 2013). South Yarra is a suburb of Melbourne, so it won’t take much time to get to any of the places of the big city. There is a school and a kindergarten in the town, as well as a great number of retail outlets, cafes and clubs and the Yarra River in the north of the town. 4. Buying a 2-bedroom and 2-bathroom apartment in Sydney for $680,000 (Unit 704/710-722 George Street, Sydney, NSW, 2000). A 2-bedroom and 2-bathroom apartment in Sydney for $680,000. The apartment has outstanding city views and is located close to Chinatown, World Square, Central station and the CBD. The design is open-plan, so the owner has much space for improvising with furniture. The bedrooms are furnished with wardrobes. The other advantages include air conditioning, a video intercom and rooftop sky garden (Realestateview.com.au, 2013). 5. Sharing an apartment in Sydney with 7 people for $125. An apartment shared with 7 people and a room – with 3 for $125. A bus stop is located at the doorsteps of the building, and the apartment is at a walking distance to a swimming center, parks, and libraries. Also, there is a gym and a spa available to the renters (Flatmates.com.au, 2013). 6. Renting a 1-bedroom studio for $320 per week in Sydney (9/147 Brougham Street, Woolloomooloo). A 1-bedroom studio for $320 per week (REA Group Ltd., 2013). It is located 1.5 kilometres east of the Sydney central business district, so it is not difficult to get to any location of Sydney. This area is relatively quiet place on Sydney Harbour. Read More