Product Development Strategies of Brand-named Apartments: Through the Application of Latent Class Analysis and Importance-Performance Analysis

Purpose: Recently, apartment construction companies have been investing astronomical sums, ranging from hundreds of millions to billions of won, to distinguish their apartment products. This study explores the potential for market segmentation by examining the importance and satisfaction levels of branded apartment differentiation plan elements. Specifically, it investigates whether the investments made by apartment providers in these differentiation plans meet customer expectations and add value. Consequently, the study aims to propose an optimal product development strategy for each apartment market segment. Method: Data was collected from 253 residents living in redevelopment or reconstruction areas and analyzed using Latent Class Analysis (LCA) and Importance-Performance Analysis (IPA). These methods were employed to examine the differences in importance by market segment and the variations in importance and satisfaction for the differentiation plan elements of construction companies. Additionally, IPA was used to identify the characteristics of each segment. Result: LCA revealed the profiles of potential customers within each market segment based on apartment differentiation factors. IPA confirmed the Importance-Satisfaction ratings of these differentiating factors for each market segment.