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Abstract
The identity of residential areas has a strong influence on consumers searching for new housing. Yet, most studies have not dealt adequately with the implications of neighborhood name and characteristics as a marketing tool. This paper investigates how subdivision names selected by residential developers in Baton Rouge, Louisiana, affected property values and time on the market. We used a 20-year data series on house transactions to estimate these effects in a simultaneous model of price and marketing duration. Results indicated that an appropriate naming strategy can provide cues for consumers, which can expedite their purchase decision making process. In addition, suitably named subdivisions can promise an experience to which a substantial number of consumers aspire, creating demand and increasing the market prices of houses in the subdivision.
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Notes on contributors
Velma Zahirovic-Herbert
Velma Zahirovic-Herbert (corresponding author) is Assistant Professor and Swarn Chatterjee is Assistant Professor, both in the Department of Housing and Consumer Economics, University of Georgia, Athens, Georgia.
Swarn Chatterjee
Velma Zahirovic-Herbert (corresponding author) is Assistant Professor and Swarn Chatterjee is Assistant Professor, both in the Department of Housing and Consumer Economics, University of Georgia, Athens, Georgia.