The Effects of Social Media on the Real Estate market in Los Angeles, California

Emma Christina Holdt Høiris-Andersen

Student thesis: Master thesis

Abstract

This dissertation investigates consumer behavior related to the use of the social media platforms Facebook and Instagram in the real estate market by using a theory on Value Creation and the Heuristic-Systematic Model of Persuasion (Chaiken, 1978). This thesis employs the Technology Acceptance Model by Stephan Dahl (2015). In addition, previous literature on social media and real estate will be explored. Based on the increase in social media use in everyday life in Los Angeles in combination with the real estate market's behavior change, the above-mentioned models and theories imply, as the author focused on the underlying problem statement behind the implications that will affect the consumers within the real estate market. The author has conducted a case study based on a social media questionnaire (143 respondents) and a content analysis of the Facebook and Instagram platforms from Terra Firma Group (76 posts). The case study revealed the consumer's attitude towards the use of social media in regards to the real estate market. Based on a literature review and statistics on the real estate market, the best strategies to utilize by real estate agents were found, together with a shift in the market. The findings confirmed that using social media shifts the target audience from an older audience to a younger one. A hierarchal correlation between income and investment in social media could not be concluded, as there was a lack of evidence and data. It was found that real estate agents should utilize both the online and analog markets to their full extent. Based on the outcome of the analysis, the author suggests a social media real estate strategy for the actors to implement to enhance the intentions behind the consumer's use of social media.

EducationsMSocSc in Organisational Innovation and Entrepreneurship , (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2020
Number of pages90
SupervisorsDaniel Hjorth