Professional Documents
Culture Documents
Kathmandu
October, 2012
Acknowledgement
This Graduate Research Project entitled on A study on the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision an integral part of the
postgraduate studies at Pokhara University that has provided me an opportunity to develop
knowledge, skills and attitudes necessary for conducting individual research at a level which
will make a distinct contribution to knowledge.
This research project would not have been possible without the support of many people. First
and foremost, I offer my sincerest gratitude to my supervisor Mr. Sujan Raja Shrestha,
Faculty of Ace Institute of Management who has abundantly helped and has supported me
throughout my project with his patience, knowledge and guidance. I attribute the level of my
Masters degree to his encouragement, guidance and effort from the initial to the final level,
which has enabled me to develop an understating of the subject and without him this thesis,
too, would not have been completed.
Deepest gratitude is also due to Faculty of Ace Institute of Management, Mr. Parvat Uprety
without his guidance and assistance on the research design and data presentation and
analysis section of this research project would not have been completed.
Special thanks to all my graduating friends, especially Aayush Rai, Asim Aryal, Bijesh Aryal,
Dinika Gupta, Deepak Luitel, Dhirendra Shrestha, Krishna Hari Gautam, Manjil Bista, Prajwal
Khanal, Satyendra Mani Tripathi, and Suraj Shrestha for helping me in meeting the samples
for the study by filling up the questionnaires and by providing their invaluable assistance
throughout the project.
I would also like to express note of thanks to all the respondents who are the buyers of
LCD/LED Television of Nepalese market. I am also indebted to Mr. Ashish Tiwari, Director of
Ace Institute of Management. Ltd. for providing me the platform for conducting focused group
discussion and also for helping me to collect the opinions of the participants and providing
views regarding the Nepalese Television market.
Lastly, I wish to express my love and gratitude to my beloved families for their understanding
through the duration of my research project.
Regards,
Samrat Nath Yogi
ii
Certificate of Authorship
I hereby declare that this submission is my own work and that, to the best of my knowledge
and belief, it contains no material previously published or written by another person nor
material which to a substantial extent has been accepted for the award of any other degree of
a university or other institution of higher learning, expect where due acknowledgements.
MBA 6 Term
Ace Institute of Management
iii
Approval Sheet
Recommendation for Approval
This GRP report prepared and submitted by Samrat Nath Yogi in partial fulfillment of the
requirements for the degree of Master of Business Administration has been supervised by me
and recommend it for acceptance.
th
Viva Examination
The candidate has successfully defended the GRP. We recommend it for acceptance. The
grade sheet has been submitted to the Dean, Pokhara University through the college on a
separate evaluation sheet.
GRP Adviser
External Examiner
Other members
Date
iv
Table of Contents
Acknowledgement ....................................................................................................................... i
Certificate of Authorship ............................................................................................................. ii
Approval Sheet ...........................................................................................................................iii
List of Tables ............................................................................................................................ viii
List of Figures ............................................................................................................................ ix
LIST OF ACRONYMS ................................................................................................................ x
Executive Summary .................................................................................................................. xi
CHAPTER 1 ............................................................................................................................... 1
INTRODUCTION........................................................................................................................ 1
1.1 Background ...................................................................................................................... 1
1.2 Statement of the problem ................................................................................................. 5
1.3 Objectives of the study ..................................................................................................... 5
1.4 Significance of the study .................................................................................................. 6
1.5 Limitation of the study ...................................................................................................... 7
1.6 Research questions or Hypothesis .................................................................................. 7
1.7 Operational Definitions and Assumptions ........................................................................ 8
1.7.1 Operational Definitions .............................................................................................. 8
1.7.2 Assumptions: ............................................................................................................. 9
1.8 Organizational structure of the study ............................................................................... 9
CHAPTER 2 ............................................................................................................................. 11
LITERATURE SURVEY AND THEORETICAL FRAMEWORK ............................................... 11
2.1 Review of Literature ....................................................................................................... 11
2.2 Market/Marketing: Meaning & concept .......................................................................... 11
2.3 Marketing Mix: Concept ................................................................................................. 12
2.3.1 Product: Concept..................................................................................................... 12
2.3.2 Price and Pricing: Meaning & Concept ................................................................... 15
vi
vii
4.4.4 Test of Hypothesis of dependency between Family size of a consumer and brand:
......................................................................................................................................... 64
CHAPTER 5 ............................................................................................................................. 65
SUMMARY AND CONCLUSION ............................................................................................. 65
5.1 Summary of Findings ..................................................................................................... 65
5.2 Conclusion and Recommendation: ................................................................................ 68
5.2.1 Conclusion: ............................................................................................................. 68
5.2.1 Recommendation: ................................................................................................... 71
References: .............................................................................................................................. xv
Appendices ............................................................................................................................. xvii
viii
List of Tables
ix
List of Figures
LIST OF ACRONYMS
E.g.
Example
i.e.
That is
CRT
GDP
GRP
LCD
MBA
PPP
PU
Pokhara University
Rs
Rupees
Sq Km
Square Kilometer
TU
Tribhuwan University
TV
Television
xi
Executive Summary
The Graduate Research Report entitled to A study on the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision is submitted to Ace Institute of
Management that is prepared for the partial fulfillment of the requirement of the Masters of
Business Administration affiliated to Pokhara University.
Marketing is selling through advertising which means selling and advertising are the strongest
parts of marketing for the people. Marketing helps an organization to find out what the
customers want. It also helps to decide what products are to be made. The decision is carried
on after research in the market.
Production is the prime activity of every industry and successful marketing of the product is
the ultimate goal. Todays marketing is characterized by globalization, technological changes,
and strong competition. Successful marketers are those who deliver what customers are
willing to purchase as well as according to their ability to purchase. For this reason, marketers
today conduct many researches to study consumers buying decisions. Once it is understood,
marketers become able to predict and shape their marketing strategies accordingly. Without
doubt, marketers who understand markets and consumer behavior have great competitive
advantage over other competitors. Therefore, it is obvious that a production organization or
manufacturer must determine the needs, wants of their customer first, and then brings the
product in the market accordingly.
Brand loyalty is the consumers conscious or unconscious decision expressed through
intention or behavior to repurchase a brand regularly. It occurs because the consumer
perceives that the brand offers the right product features, image or level of quality at the right
price. Consumer behavior is habitual because habits are safe and familiar. In order to create
brand loyalty, marketers must break consumer habits, help them acquire new habits and
reinforce these habits by reminding consumers of the value of their purchase and encourage
them to continue purchasing those products in the future. Competition is the main
characteristic of modern marketing. Competition has been very tough in the Nepalese
consumer market together with increase in the number of units of industries producing
different types of consumer goods. On the one hand, Nepal's own industries are producing
different types of products and on the other hand, products of different types are being
imported from other countries. Today, so many brands of even a specific product category are
being sold in the Nepalese market. Every producer or marketer is trying their best to prove
their product to be the best. This can be observed from the promotional efforts like TV,
Advertising, Radio Advertising, Newspaper advertising, Posters, Hoarding boards, personal
selling and other promotional tools etc. calling up to buy their product. After all, every
producer or marketer wants to develop a market share highly loyal to his product or brand.
xii
These circumstances prevalent in Nepalese market signify the need of understanding brand
loyalty behavior of the consumer.
The Nepalese TV market has seen significant transitions in last one decade. The market is
still dominated by CRT TV is gradually shifting towards LCD TVs and is now evolving towards
LED TVs. Consumer's demand for multi-functional services, on-going TV network digitization
and increasing internet penetration is helping smart TV market to grow in Nepal.
Televisions are now available in every price range and with an immense variety to choose
from. Coming within an affordable budget range, it is becoming easy for consumers to be in
tune with their needs. Television sets ranges from anything from 14 to 50 and consumers
have a variety of choices, from color TVs to LCDs, LEDs and complete home theatre system.
The major objectives of this study is to understand the importance of durable goods in
Nepalese market, to analyze the most preferred and favorite brand of LCD/LED Television,
their reasons behind preferring those brands, to analyze the brand consciousness and
awareness of LCD/LED Television in Nepalese consumers, to find out the various factors
while purchasing LCD/LED Television, and to find out the dependency between Sex and
brand, Income and brand, Education level and Brand and Family size and brand.
The applied data in this study are mainly primary in nature. Therefore, the multiple research
designs were employed in this study for accomplishing different objectives. Hence, the
descriptive, well as inferential research designs have, therefore, been included in the present
study.
Questionnaire and the survey has become important tool for accomplishing the major
objective of this study. 200 questionnaires were distributed to the respondents who have got
Television and out of them 120 questionnaires were retrieved from the consumers who have
LCD/LED Television. As per the nature of this research, the entire focus is on primary data in
the form of list of questionnaire has been used to achieve the research objectives.
Under the study, descriptive statistics were used to simply describing what is and what the
data shows regarding factors affecting the purchasing decision of different brands of
LCD/LED Televisions. For further explanation, the data have been presented and analyzed
through the types of graph and tables. Under graphical presentation of the data, pie chart and
bar diagram has been used while the frequency table (univariate) and cross tabulations
(bivariate and multi variate) are used for the tabular presentation of data.
Inferential Statistics investigate questions, models and hypotheses were also used in this
study. For the study, this statistics has been used to make inferences from our data to more
general conditions and test whether there is dependency between Sex and brand, Income
and brand, Education level and Brand and Family size and brand. For this, Chi Square Test
Model was used.
xiii
After the systematic collection of data for the fulfillment of the objectives of the study and after
having their interpretation and analysis, this study has come up with various conclusions
regarding Nepalese LCD/LED Television Market, current scenario of most preferred brand in
LCD/LED Television, consumer's level of brand consciousness and awareness.
The conclusions made by this study are; Nepalese consumers give high importance to brand
in consumer durable goods. Another finding of the study is that the consumers mostly prefer
Samsung, Sony and LG LCD/LED brand. One of the findings of the study is that either
reasonable price or good function is the main reason behind being the most favorite brand. It
has also been found out that consumer preferring Samsung and Sony purchase by brand
rather than inspection. It has also been found out that the main factor influencing for
purchasing LCD and LED Television is advertising, however, a new brand and price of a
particular brand also affects in a great deal. Similarly, it has been found out that Consumer
preferring Samsung, Sony and LG are more brand loyal in comparison to Phillips and Haier
brand. Brand awareness of the Nepalese consumers regarding LCD/LED Television market is
found to be high. Most of the consumers have the knowledge of alternative brand in the LCD
and LED Television market. It has been also found out that the main reason for brand
switching is due to New innovation, and dissatisfaction. From the Chi-square testing, it has
been found out that there is no dependency between Age group of a customer and brand
however, there is dependency between Income level of a customer and brand, Education
level of a customer and brand and there is also dependency between Family size of a
customer and brand
Based on the theoretical and empirical works reviewed, research methodology adopted and
major findings of the study; and the suggestions provided by the consumers, the study
deserves to provide some recommendations to the various suppliers of different brands of
LCD/LED Televisions. Some of the recommendations are: consumers preferring LCD/LED
Television of Samsung, Sony and LG brands are found to be loyal in comparison to other
brands. So the company should focus on the improvements of attracting sales service. As the
research shows that the majority of the respondents preferring their brands belong to (30-40
Years) and it has been also found out that most of the consumers preferring their brand
belong to having monthly income level of (20-40 Thousand), also, most of them belong to
education of Masters Level, and most of the respondents preferring different brands belong to
the family size of (5-7 members). So marketers should fix up the suitable marketing mix
strategy which can captivate the attention and motivation of the young consumers Marketers
should focus on young educated in their marketing activities. The majority of the consumers
switch brands due to new innovation. So the marketer should focus more in the existing
product of the same brand. The respondents are aware of different brands available in the
market. So the marketers should focus more on their own products by giving some extra
scheme than the competitor's products. It is apparent that people are price sensitive. So the
marketers should focus on the competitive price.
CHAPTER 1
INTRODUCTION
1.1 Background
Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked sovereign located
in South Asia. With an area of 147,181 square kilometers (56,827 sq mi) and a population of
approximately 27 million (and 2 million absentee workers living abroad), Nepal is the world's
93rd largest country by land mass and the 41st most populous country. It is located in
the Himalayas and bordered to the north by the People's Republic of China, and to the south,
east, and west by the Republic of India. Kathmandu is the nation's capital and largest
metropolis. The total GDP (PPP) is estimated to be $39.899 billion and Per capita to be
$1388.383 in 2012.
In a nutshell, marketing is selling through advertising which means selling and advertising are
the strongest parts of marketing for the people. Marketing helps an organization to find out what
the customers want. It also helps to decide what products are to be made. The decision is
carried on after research in the market.
Production is the prime activity of every industry and successful marketing of the product is the
ultimate goal. Todays marketing is characterized by globalization, technological changes, and
strong competition. Successful marketers are those who deliver what customers are willing to
purchase as well as according to their ability to purchase. For this reason, marketers today
conduct many researches to study consumers buying decisions. Once it is understood,
marketers become able to predict and shape their marketing strategies accordingly. Without
doubt, marketers who understand markets and consumer behavior have great competitive
advantage over other competitors. Therefore, it is obvious that a production organization or
manufacturer must determine the needs, wants of their customer first, and then brings the
product in the market accordingly.
According to Prof. Kotler and Armstrong, Marketing is a social and managerial process
whereby individuals and groups obtain what they need and want through creating offering and
exchanging products and value with others.
Another scholar Prof. William J. Stanton defines marketing as a total system of business
activities designed to plan, price, promote and distribute wants satisfying products to target
markets to achieve organizational objectives.
Similarly the American Marketing Association defines marketing as the process of planning and
executing this conception, pricing, promotion and distribution of ideas, goods and services to
create exchange that satisfy individuals and organizational goals.
Hence, above definitions of marketing suggests that it consists of some activities consisting of
study of consumer needs, products, price, place and promotion to facilitate the exchange that
satisfies individual as well as organizational needs within the social and marketing environment
prevailing today. The consumer/customer gets the product he/she wants and the
manufacturer/marketer gets the profit. This highlights the importance of the product as the
whole process of marketing. Product is always an important element of marketing mix.
Nowadays, most of the consumers buy products with the help of brand rather than by inspecting
the products. It means, successful marketing of a product means successful marketing of the
brand of that product. Prof. Kotler defines a product is anything that can be offered to market to
satisfy a want or need. After producing a product, identification of the product should be given;
for this brand is used to identify the product. Branding constitutes an important part of a product.
So, building brand requires a great deal of time, money, promotion, packaging, etc. Prof. Kotler
further says, A brand is a name or mark intended to identify the product of one seller or group
of sellers and differentiate the product from competing products. So, a brand is not only a name
given to a product but also a technique by which the quality or the product of various producers
are differentiated. So, every manufacturer or marketer is trying its best to make the consumers
develop a positive attitude towards the brand of their product and buy that brand repeatedly.
Simply, brand loyalty means a consumers strong belief on a particular brand and, as a result,
an intention to repurchase the same brand and buys the same brand repeatedly.
A consumers buyer behavior is influenced by four major factors; cultural, social, personal and
psychological factors. These factors cause consumers to develop product and brand
preferences. Although many of these factors cannot be directly controlled by marketers,
understanding of their impact is essential, as market mix strategies can be developed to appeal
to the preferences of the target market, while purchasing any product, a consumer goes through
a decision process. This process consists up to five stages: problem recognition, information
search, evaluation of alternatives, purchase decision and post purchase behavior. The length of
this decision process will vary ranging from shorter routine response behavior to limited problem
solving and a more comprehensive extensive problem solving. A consumer may not act isolated
in the purchase but may be influenced by any of several people in various roles.
Brand Loyalty depends upon several factors such as a products utility value, brand association,
nostalgia and consumer behavior. People have preferences from one brand over the other with
similar product benefits. The Nepali populace too has started to become brand conscious and
the presence of various multinational brands to choose from has made brand loyalists consume
their favorite brands. Especially, the youngsters seem to be hooked to their favorite brands and
cannot do without them. An example could be the Apple iphone with every other person aspiring
to carry it. Gadgets such as laptops from Sony or mobile handsets from Samsung are similar
examples. Clothing brands such as Levis, Benetton, Giordano and many others are popular
among the brand conscious consumers in Nepal.
To understand brand loyalty, the consumer buying behavior should also be considered. There
are six stages in the buying process: trigger, consider, search, choose, buy and experience.
3
Trigger is the first and most important process as this takes place when a consumers mind
clicks for a need of a product.
Brand loyalty is the consumers conscious or unconscious decision expressed through intention
or behavior to repurchase a brand regularly. It occurs because the consumer perceives that the
brand offers the right product features, image or level of quality at the right price. Consumer
behavior is habitual because habits are safe and familiar. In order to create brand loyalty,
marketers must break consumer habits, help them acquire new habits and reinforce these
habits by reminding consumers of the value of their purchase and encourage them to continue
purchasing those products in the future. Competition is the main characteristic of modern
marketing. Competition has been very tough in the Nepalese consumer market together with
increase in the number of units of industries producing different types of consumer goods. On
the one hand, Nepal's own industries are producing different types of products and on the other
hand, products of different types are being imported from other countries. Today, so many
brands of even a specific product category are being sold in the Nepalese market. Every
producer or marketer is trying their best to prove their product to be the best. This can be
observed from the promotional efforts like TV, Advertising, Radio Advertising, Newspaper
advertising, Posters, Hoarding boards, personal selling and other promotional tools etc. calling
up to buy their product. After all, every producer or marketer wants to develop a market share
highly loyal to his product or brand. These circumstances prevalent in Nepalese market signify
the need of understanding brand loyalty behavior of the consumer.
The domestic television market is still dominated by CRT television sets, enjoying market share
of around 80 percent. But people are gradually upgrading to LCD or LED sets, and the demand
is growing accordingly said Binay Tripathi, deputy general manager of Him Electronics. Sales
of LCD or LED sets are growing with every passing year, while the sales of CRT are slowing
down.
The LCD/LED technology was considered expensive when the LED sets started entering the
market. But LCD/LED sets are becoming affordable as manufacturers are slashing prices. Till a
couple of years ago, a 32-inch LED TV used to cost Rs 100,000. Now the price has come down
in range of Rs 40,000-50,000, said Tripathi.
Televisions are now available in every price range and with an immense variety to choose from.
Coming within an affordable budget range, it is becoming easy for consumers to be in tune with
their needs. Television sets ranges from anything from 14 to 50 and consumers have a variety
of choices, from color TVs to LCDs, LEDs and complete home theatre system.
Brands like SAMSUNG and SONY are popular in the country and are well-known international
brands to begin with, catering mainly to the upper class segment of the country. LG is another
brand that is creating waves in Nepal, known for innovative styles and designs.
We can follow this article to get some knowledge about the competition of TV market in Nepal.
March 28--KATHMANDU (THE KATHMANDU POST/ANN) -- New models of LED or smart TVs
are launched every two months in Nepal. This has enabled Nepali customers to get their hands
on the latest products launched in the international market without waiting too long.
Samsung's latest smart TV, the ES800, will hit the Nepali market by May. The most advanced
smart TV from the South Korean electronics offers voice and gesture controls and supports 23
languages.
Samsung's local dealer Him Electronics also plans to launch Samsung's small-size (22-inch)
Smart TV soon. "This TV will be targeted at people searching for a small TV with internet facility
at an affordable price," said Binay Tripathi, sales manager at Him Electronics.
Same is the story at CG Electronics that markets LG products. CG Electronics says upgraded
versions of LG LCD, LEDs and smart TVs will be hitting shelves this year. CG will also launch
Smart and 3D TVs from Japanese manufacturer Toshiba by June. "These new Toshiba
products will be targeted at people looking for high-end products," said Ramesh Shrestha,
general manager at CG Electronics. "New Toshiba TVs are expected to strengthen our product
line-up and offer more choice to customers."
SG Global, authorised distributor of Sharp, is adopting an aggressive approach to outpace the
cutthroat competition in the market. "Since we are eyeing aggressive growth, the local market
will see a new range of Sharp TVs in every three month," said Akhil Gupta, director at Shankar
Group.
SG Global will introduce a 60-inch smart LED TV loaded with the 3D viewing technology within
the next 10 days. This new TV from Sharp is likely to be priced at around Rs 375,000. The
company is also planning to introduce 70- to 80-inch LCD and LED TVs soon. "There are many
people who want to enjoy movies and sports in big screen," Gupta said.
In budget category, there are line-ups from Yasuda, Daewoo, Mitashi and Hisense. Triveni
Byapar, authorised distributor of Yasuda and Daewoo, will launch a new range of Yasuda HD
TV and 3D TV. "There will be a full range of Yasuda HD and 3D TVs in the market this year,"
said Siddhartha Singhania, finance head at Triveni Byapar.
Triveni Byapara is also coming up with a new range of 3D TV and smart TVs from Daewoo. The
company, according to Singhania, will focus on slimmer variants of Daewoo LCD and LED TVs.
"When LCD and LED TVs were launched first, many said the products would not succeed due
to the price factor. But people eventually started purchasing these products and the price
difference is narrowing down. Therefore, our focus in 2012 will remain at introducing latest
devices at reasonable price," said Singhania.
Mitashi, the new entrant in the Nepali market, will come up with a 32-inch LED TV within next
two-three weeks. "We are looking for extending our product portfolio in the LED segment," said
Nitin Khetan, managing director of Tara Chand and Sons, authorised importer of Mitashi. By the
year-end, the company will introduce 19-inch, 22-inch and 42-inch LED TVs.
Only few researches have been conducted so far in Nepal to find out how consumers behave
with different brands of product available in the market.
In the case of loyalty, it may be said that loyalty refers to the specific preference over the
products available in the market. It is also behavioral response of the consumer expressed over
time by some decision-making unit with special reference to one or more alternative brands. So
brand loyalty leads to strong brand preference and repeat purchase behavior. Such brand
preference gives extra benefits to companies even to the extent of high price charging because
consumers do not mind to pay even more for their preferred brand. Hence, it is a fact that brand
loyalty is created in the mind if the consumer has some strong positive attitudes towards a
brand making him buy it repeatedly. When this action of buying same brand repeatedly
happens, brand loyalty occurs among the consumers. So, we can say brand encourages
repetitive purchase of products. This promotes brand loyalty among customers. Organizations
can achieve stable market share. They get protrusion from competition and greater control in
planning the marketing mix. They decrease importance of price.
This study is therefore conducted mainly to measure the attributes of brand loyalty of Nepalese
consumers in LCD/LED purchasing decision.
LCD TV: Liquid-crystal display televisions (LCD TV) are television sets that use LCD display
technology to produce images. LCD televisions are thinner and lighter than cathode ray
tube (CRTs) of similar display size, and are available in much larger sizes. When manufacturing
costs fell, this combination of features made LCDs practical for television receivers.
Age Group: Different age groups have different choices attached to LCD/LED Television.
Education Level: Education level is also important for a consumer. With education of higher
secondary will go for more features in LCD/LED Television.
Monthly Income: This is also important as consumer with high income will choose for more
features in LCD/LED Television.
Price: It is another important factor as without looking price of LCD/LED Television, no one will
purchase.
Design: It is another attribute that play major role in selection of LCD/LED Television, so it cant
be excluded.
Brand Name: Brand name is another most important attributes, buyer will on go for known brand
like, LG, Samsung, Sony, Phillips, Haier, etc.
1.7.2 Assumptions:
For the significance of the test, the significance level is assumed to be 10% for all the Chisquare tests.
10
11
CHAPTER 2
LITERATURE SURVEY AND THEORETICAL FRAMEWORK
Marketing is the management function, which organizes and directs all those business
activities involved in an assessing and converting customer purchasing power in to
effective demand for a specific customer. So product or service and in making the
product or service to the final, as to achieve the particular or other objective set by the
company.
Thus, through these definitions we can deduce that Marketing is a social process
preformed by individuals and groups marketing are also concerned with creating offering and
exchanging products and services.
Marketing has been developing together with development in human civilization. We trace
12
three four hundred years back to the history of human civilization; we find marketing of
that time by modern standard was relatively uncultured. They did not need mechanism or
tools or techniques of marketing as used today. But now all the situations have change the
needs and wants have changed. Human aspiration for excellent and better status have
given birth to thousands of discoveries, inventions and innovations and established thousands
of units of different types of industry to fulfill that aspiration. These changes in turn not only
indented
different
sophisticated
tools
and
techniques
and effective
strategies
for
successful marketing but also made the marketing a most competitive field. (Parajuli
Sanjay, A Study of Loyalty on Branding Unpublished MBA Thesis, SDC, 2001, p.10)
In recent years some have questioned whether the marketing concept is an appropriate
philosophy in a world faced with a major demographics and environmental challenges. The
societal marketing concept holds that the organizations task is to the determine the needs,
wants and interest of target markets and deliver the desired satisfaction more effectively
and efficiently than competition in a way that preserve or enhances the consumers and
the societys
considerations.
well beings.
Marketing mix is the set of marketing tools that organizations use to pursue their
marketing objective in the target market. (Agrawal G.R, Marketing in Nepal, 1999, p.28)
The elements which can influence business activities of the firm as marketing strategy is
known
as
marketing
mix.
They
are
product,
price, p l a c e
and
promotion.
The
13
idea. In essence, then consumers are buying much more than a set of physical attributes
when they a product. They are buying want satisfaction in the form of the benefits they
expect to receive from the product.
2.3.1.1 Products Quality: Concept
Quality is the improved from of product, to satisfy the needs of the consumers, improving
product quality has become a top priority for marketing. There is an intimate connection
among product quality, customer satisfaction and objective achievement. The dimensions of
quality can be performance of the product, durability of the product, serviceability of the
product & feature of the product etc.
Quality is the Totality of features and characteristics of a product that bear on its ability to
satisfy stated or implied needs (Agrawal G.R., Marketing in Nepal, 1999 p.161)
While considering the physical product apart from the additional attributes, real or
fancied, bestowed on it by an effective marketing program, the manufacturers attention is
usually centered on product quality. In this context product quality is often measured in terms of
the purity or grade of materials used the technical perfection of design, and exacting
standards of production. The level of q u a l i t y is usually set in terms of either meeting of
beating competition. Once a level of product quality, in this sense, has been determined,
most firms carry out rigorous programs of quality control and product testing to ensure that
technical standards of product quality are upheld.
2.3.1.2 Brand & Branding: Meaning & Concept
Brand is the name of the product. Branding differentiates the products from marketers,
sellers & consumers. They convey attributes, image, values & benefits.
A Brand is a name terms, signs, symbol, or design or a combination of the intended to
identify the goods or service of one seller or group of seller and to differentiate from those
competitors. (Kotler Philip, Marketing Management, 1999, P. 404) is clear from above
definition that brand identifies the goods to market. It can be a name trade mark, logo or
other symbol. It differs from other assets such as patents and copy rights; which have
expire date. It trade mark is a legally protected brands which implies ownership of the users
and exclusive right to use.
Branding constitutes an important part of product mix. The word brand is comprehensive
encompassing others narrower terms. A brand name consists of words, letters or number that
can be vocalized. A brand mark is the part of the brand that appears in the form of a symbol,
design or distinctive color or letter. A brand mark is recognized by sign and differentiates its
product from competing products.
Building brands require a great deal of time money promotion and packaging.
Brands
suggest product difference to costumers. They convey attributes, image value and benefits
most of the products are branded. (Agrawal G.R, Marketing Management in Nepal, p. 287)
14
Now a days, market is being much more competitive is a subject of consideration. Every
company should carry out a research before launching a new brand. But all Nepalese
companies do not set budget aside for research and development. It is always important to
study the need, interest, taste, and purchasing power of the targeted costumers.
As the costumer is the king of the market in todays liberal economy companies cannot
afford to be pr o d uc t oriented only. There is no specific formula for success. Market is
different from place to place, consumers need taste and interest may vary from one place to
another. In many cases affordability g e o g r a p h i c a l , location culture and religion also
determine peoples need. Therefore, success of brand l a r g e l y depends on the different
factors such as innovation, quality, attractive, packing reasonable price, availability, good
publicity brand positioning, unique selling proposition, value addition relationship etc.
2.3.1.3 Brand Loyalty
This first to recognize when we talk about brands is that they are not just names, terms,
symbols, designs or combinations of these, although it is true to say that such things can and
to differentiate certain products and companies from others. The additional ingredient that
makes a successful brand is personality.
Today leading brands are personalities in their own right and are well known in all
societies and cultures as film heroes, cartoon characters, sports stars, or great leaders.
Many of the people relate to brand personalities in the same ways as they do to Human
personalities. There is of course, a psychological basis to this, and the psychology behind
brands really stems from Carl Jungs work where he described the four functions so mindthinking, sensation, feeling and institution. The secret to successful branding is the influence
the ways in which p e o p l e perceive the company or product, and brands can affect the
minds of customers by appealing to these four mind functions, or combinations of them.
Some brands appeal to the rational part of a person, to the elements of logic and good
sense (the thinking dimension) such as Toothpaste, which prevents decay. Others appeal to
the sense of smell, t e s t e d , sight, and sound such as fashion and cosmetic products.
Some brands attract the emotional part of people appealing to the feelings, dimension to
which consumer react with feelings of warmth, affection, and belonging. Products such as
Harley-Davidson motorcycles and companies like Benetton with its global village branding
exemplify these. Brands influence consumer decisions to buy in any of the above ways,
or through combination of them, sometimes with tremendous persuasive appeal.
The Marlboro brand personality is a good example of how companies understand and
combine the physical and emotional elements that appeal to certain customers who live or
would love to live a certain lifestyle. Products such as reputed credit cards, watches or
prestige items help people to express themselves to others by demonstrating that they are
different and have the sense of achievement. They act as extensions of the personality, so it
15
really is all in the mind. The key to brand management and d e v e l o p m e n t is a clear
understanding of what benefits the customer is looking for. Time and again, research shows
that the real driving force behind market leadership is perceived value-not price or inherent
product attributes
Brands are also successful because people prefer them to unbranded products. Todays
world is characterized by more complex technology, and this can be extremely confusing to
people who are not t e c h n o l o g y minded. Brands can play an important role here by
providing simplicity and reassurance to the uninitiated, offering a quick, clear guide to a
variety of competitive products and helping consumers reach better, quicker decisions. (Paul,
Temporal, The Boss June, 2005, P. 44)
Price is the marketing mix element that produces revenue, while the others produce costs.
Price is also one of the most flexible elements. It can be changed quickly, unlike product
features and channel commitments. At the same time, price competition is the number one
problem facing companies. Yet many companies do not handle pricing well. The most
common inflexibilities in handling them are:
1. Pricing is cost-oriented.
2. Price is not revised often enough to capitalize on market changes.
3. Price is set independent of the rest of the marketing mix rather than as an intrinsic element
16
It selects its pricing objective survival, maximum current profit, maximum market share,
Geographical pricing.
(II)
(III)
Promotional pricing.
(IV)
Discriminatory pricing.
Product-mix, pricing, which are included setting prices for product lines, optional
features, captive products, two part items, by-products, and product bundles. (Kotler Philip,
Marketing Management, 1999, pp.482/83)
17
The marketing mix activities of product planning, pricing, and distribution are performed mainly
within a business or between a business and the members of its distribution channels.
However, through its promotional activities, a firm communicates directly with potential
customers.
Philip Kotler defines marketing mix as the set of marketing tools that the firm uses to
pursue its marketing objectives in the target marketing. The popularized a four-factor
classification of these tools called the four Ps (product, price, promotion, and place).
element
in
modern
marketing
process
but
it
can
It
is
an
produce consistently
profitable result only when the entire structure is sound and coordinated.
Advertising is the most visible marketing tool, which seeks to transmit an effective
message from the marketer to a group of individuals. The marketer pays for sponsoring the
advertisement. Activity advertising unlike salesmanship, which interacts with the buyer face,
is non-personnel. It is directed towards a mass audience, and cot at an individual, as in
personnel selling. (Aryal Kishwor Raj, The study of Market Share of Colgate in Comparison
with other Brand SDC, 2002, p.52)
18
Today business organization, social organization, political organization and governmental and
non-governmental organizations are also using advertising as tools of promoting and services
as well as political candidates for votes.
Advertising can be understood as form of communication, which aims at bringing about some
change in the behaviors of the target audience, particularly the potential buyers of nonbuyers towards the product or service advertised. A generally theoretical model seeks to
identify a step-wise behavioral progression of non-buyers towards buying action.
Simply advertising stimulates the potential buyers to go to the store to buy actual
advertised products. In general, advertising is done in expectation of tangible gains such as
favorable attitudes, better image of the firms, and increased sales. The techniques of
advertising depending upon the situation however, it is the matter of decision of the
marketing manager to blend all promotional tools advertising, personal selling, and sales
promotion to arrive at a right mix.
characteristics and is complementary. (Shrestha R.K, The Role of Advertise in Brand Choice
and Product Positioning MBA Thesis, T. U., 1997, p.1-2)
It should be made clear here that advertising and promotion though seems same are not
exactly the same thing. Promotion is a broad from whereas advertising is just a part of
promotion. When we talk of promotion it generally includes publicity, personal selling, public
relation and advertising, but advertising comprises the most of the portions that comprises
promotion. Advertising is considered to be one arm of promotion. Advertising promotion
consists of other four element personal selling, sales promotion, public relation and
publicity.
From marketing perspective, consumer choice behaviour can be studied through the classical
five-step
(needinformation
searchevaluation
of
alternativespurchasepost-purchase
evaluation) problem solving paradigm or through the progression of consumer choice from a
product class to brand choice. The five-step model is usually suitable for decision making that
assumes rational problem solving behavior and, in most cases, complex decision making. The
acquisition of a new mobile phone follows this traditional view of buying process, but is in many
situations also affected by symbolic values related to brands. Consumer choice behavior has
some important prevailing conditions that must be taken into account while studying choice. In
the light of the classical problem solving buying behavior, consumers engage in information
19
search before making the actual choice. Consumer decision making process is usually guided
by already formed preferences for a particular alternative. This means that consumers are likely
to make the choice between alternatives based on limited information search activity and
without detailed evaluation of the other alternatives. In close relation to information search,
evaluation of alternatives has also gained a momentum in recent research. Their study on
consumers use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and
geometric compensatory) in the consideration set formation found that conjunctive heuristics is
the most often used decision model in the consideration set formation for two product classes in
the study (beer brands and fast food outlets). Conjunctive heuristics means that a consumer
selects a brand only if it meets acceptable standards, the so-called cut-off point on each key
attribute consumer regards as important. In this non-compensatory method of evaluation, a
consumer would eliminate a brand that does not fulfil the standards on one or two of the most
important attributes, even it is positive on all other attributes.
Study of consumer behavior has prevailed as an effective measure helping to develop the
successful marketing strategy. The consumer and the society have been the centre point
around which all the marketing activities revolve. The various advantages made in marketing
have established the consumers as the sovereign power in the marketing world. So, in order to
be successful, products must be produced according to the needs and demand of the
consumers and interest of the society. In the modern business world, understanding of
consumer choices, purchasing decision making process, brand preference, factors affecting
decision making process and understanding of consumer behavior is most necessary to
become a successful marketer.
Western culture has empowered the world. And the influence has turned into obsession,
deviating people towards a branded route more. World has turned out fashionable and the
trend has shifted to bagging products with EXPENSIVE tags and not relating the utility of the
product with its worth. Fashion is RULING and so does the people carrying them. The concept
of boasting has grown farther than one could imagine and with an idea of falling into an
analogous category, people have lost the sense of Value and Worth.
A growing economy and the resultant increase in purchasing power have made people around
the world more fashion conscious. People have now very well understood about the brands
present in the market. Brand awareness has made people to think and become conscious about
the brand. Brand awareness means the extent to which a brand associated with a particular
product is documented by potential and existing customers either positively or negatively.
With the increase in different brands in the market the consciousness for them has also been at
the top. The non- active consumers have been converted into an Active Consumers. They do
not compromise with the brand, after all brand matters at a large. There was a time when
people only focused more on the price factor while choosing a product or service. But now, the
20
scenario has changed. Today People have become Brand Conscious; they go for brands
starting from hair oil to footwear. The choice of selection depends on the societal and the
esteem value the brand gives to them.
Branding a product is mandatory, in this era, of course as anything and everything in the world
bears its identity through a name or symbol or sign. Brand conscious people believe that by
wearing a branded shoe or a suit, for instance, theyll be accepted as trendy and up to-date.
The shifts have witnessed a spike graph with a ratio of brand conscious people who even
segregate the sweets, chocolates and ice-creams on their brand name. Same goes with in the
world of jeans and shirts. It is heard that "Without a branded shirt on you, youre not reckoned
as a person of taste and choice. It is true that a companys authenticity and services, its
reliability and popularity are earmarked by its brand. It enhances the business of the company
and boosts its creditability as well. When you stick to a particular brand, you showcase your
superiority and style; and prove where you stand in the world of fashion."
Nevertheless, the ones who refrain from being influenced by this western brand consciousness
trend survive equally good. The practically wise decision of why to spend gratuitously on the
products that are not worthy the tag they hold. There are many brands that have lost the charm
in due course but for their name sake, theyre still among the favorites list. Their high tagged
prices still attract the eyes of customers and theyve managed to survive superbly well in the
market.
The fact is that brand consciousness has developed as a craze and way of depicting people's
status. The count of people badly inflicted by this disease is high. It is usually the college
students and kids who are more affected and it is for them to see what is best for them; even
though it may not be a branded one.
Typically, it the personality and intellect that people love seeing, and not just the brand name,
that you carry along. It is the individual choice how they spend your money, but the notion of
becoming superior with a branded denim or a watch them flaunt will take them nowhere.
Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand
due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of
convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when
customers have a high relative attitude toward the brand which is then exhibited through
repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing
to pay higher prices, they may cost less to serve, and can bring new customers to the firm.
Brand loyalty is a temporary aspect of consumer behavior (James F. Engel, 1982:598). Brand
loyalty analyses whether or not a consumer is loyal to a specific brand or set of brands in a
21
certain time period. Study on brand loyalty began when research on consumer behavior
became popular around the late 50s and 60s. Most of the products today are sold by brands
today in the developed countries like U.S.A., Germany, U.K., and Japan. Even vegetable
products are sold by brands. Today no one denies indispensability of understanding brand
loyalty behavior for successful marketing of the products. This growing need and importance of
behavioral study of consumer gave birth to brand loyalty as a separate subject of study.
The American Marketing Association defines brand loyalty as the situation in which a consumer
generally buys the same manufacturer-originated product or service repeatedly over time rather
than buying from multiple suppliers within the category or the degree to which a consumer
consistently purchases the same brand within a product class. Trying to define the term, Aaker
considers that brand loyalty reflects how likely a customer will be to switch to another brand,
especially when that brand makes a change in price, product features, communication, or
distribution programs.
Marketers are trying to do as much as they can to preserve brand loyalty. Marketers have
attempted to create an emotional attachment with their customers, believing that once
customers become attached, they will not switch to another brand, regardless of price
(Hamilton, 2009). Unfortunately, consumers are more likely than ever to become brand
switchers, especially to private labels, as they look for lower-price alternatives to what they
normally purchase. Customers are abandoning brand loyalty and experimenting with different
but cheaper brands. It seems that grocery store items are most affected by brand switching;
products ranging from food, paper goods, and personal-care items are victims of either brand
switching or being purchased less frequently, as shoppers stretch out the use of these products
for as long as possible (Byron, 2008). While the sales of luxury items has decreased
somewhat, it seems that luxury items have the most brand loyal consumers. Consumers are
willing to save up their money for these luxuries; they justify paying top prices for these items by
saving and reducing spending on other lower-priced items (Heher, 2009). It appears that the
best and most innovative brands have been or will continue to be able to hold their value,
despite the current recession (Hamilton, 2009).
Brand loyalty, though may seem simple at a glance, is not a simple concept. Schiffman and
Kanuk say, Just as there are different approaches to the definition and measurement of
information processing, so there are different views as the definition of brand loyalty (Leion G.
Schiffmnan, 1990:258). Different scholars, experts, behavioral scientists and researchers have
defined brand loyalty in different ways and have utilized different approaches and criteria to
measure brand loyalty. Some have defined brand loyalty in terms of consumer behavior some
have defined in terms of both consumer behavior and consumer attitude.
Now, many researches on brand loyalty have been carried out. But, as stated above, they are
not based on the same definition nor have they employed the same approaches or criteria to
measure brand loyalty. Different researches are based on different definitions and have used
different measures of brand loyalty. Therefore, it seems very much necessary to pay particular
22
attention on definition of the term and approaches to measurement while reviewing the
researches.
One of the earliest studies defined brand loyalty according to the sequence of purchasing a
specific brand (James F. Engel and Roger D. Blackwell. p.556). The key insight of this definition
is that the purchasing pattern of a specific brand determines loyalty to the brand. This definition
classifies brand loyalty in four categories:1. Undivided Loyalty
2. Divided Loyalty
3. Unstable Loyalty
4. No Loyalty
For example, if A, B, C, D, E, F, G are various brands in a particular product category, the
consumer of the product could be classified as having the following types of loyalty:
1. Undivided Loyalty if the purchase sequence is AAAAA
2. Divided Loyalty if the purchase sequence is AB, AB, AB
3. Unstable Loyalty if the purchase sequence is AAAABBB,
4. No Loyalty if the purchase sequence is ABCDEFG
Thus, it is obvious that according to this definition brand choice sequence is the criteria that
measures brand loyalty.
Dependent variables
Age
Sex
Income
Brand loyalty
23
1. Age
The Age of the consumer determines the type of product demanded and the choice of outlet.
Normally, young consumers are fashion conscious while choosing a product. Therefore, they
frequently switch from one brand to another. While, middle-aged consumers are status
conscious hence they are more brand loyal than younger consumers. Hence, this factor also
greatly affects in brand loyalty. So this factor is considered.
2. Sex
Male and female differ very much in their buying behavior. Females are more shopping and
bargaining-prone and like to visit several shops to compare price, quality and service, whereas
males show more brand and store loyalty.
3. Income
Income is that factor which directly effects consumers buying process. People with higher
income prefer branded and high-quality products, whereas people with lower income are more
prices conscious. Therefore, they prefer the products that are cheap and durable.
24
tablets. He found out that in each product category more than 50 percent of these families
concentrated at least 43 per cent of their purchase on the brand most often bought. His result
showed certain amount of brand concentration in the family purchase.
2.7.3 Repeat purchase probabilities
Many recent researches on brand loyalty have used the repeat purchase probabilities of brand
as measured of brand loyalty. The probability ranging from zero to one was used to determine
its degree of loyalty based on the repeat purchase probabilities.
2.7.4 Brand preference over time
Brand loyalty has also been defined as preference statements over time rather than actual
purchase or brands. Lester Tuest, in 1941 asked 513 students to indicate the brands. They
preferred in 16 product categories in 1953. He obtained brand preference for the same 16
product categories for 165 members of the original sample. The percentage or respondents
whose past and present preferences matched was above 30 percent. (Lester Tuest, 1999:260).
25
such a brand switch cannot be converted into brand loyalty. (Ibid, P.26). The consumers do
not keep on sticking to the brand which they are switched to. Together with the end of such
special deals as a price cut, free sample, coupon, etc, consumers return back to their previous
brands.
d. Market structures variables including the extensiveness of distribution and the market share
of the leading brand exert a positive influence on brand loyalty.
e. There is limited evidence that perceived risk is positively related to brand loyalty.
f.
g. There is some evidence that brand loyalty is inversely related to the number of stores
shopped.
h. The relationship between amount purchased and brand loyalty is uncertain because of
contradictory finding.
i.
The relationship between inter purchases time and brand loyalty is uncertain due to
contradictory finding.
j.
The effect of a number of alternative brands, special deals and price activity are uncertain
due to contradictory findings. (Engel and Blackwell, PP. 577-78)
Thus, what comes out from the conclusion made by Engel and Blackwell is that even though the
researchers have found out some factors such as socio economic, demography, store loyalty,
number of stores shopped, market share of leading brands as the co-relates of brand loyalty,
26
yet the researchers findings are contradictory concerning other factors such as amount
purchased, inter purchases to time, number of alternative brands etc. It seems that the
researchers have not yet reached any concrete result about what are correlates and non
correlates of brand loyalty.
It is necessary to develop the most scientific and widely accepted research instrument to find
out what are correlates and non correlates of brand loyalty. Brand loyalty is a wider concept.
What factors are correlated with it is a serious question. There may be hundreds of factors
correlated to it. The main cause of the contradiction among research findings is absence of
widely accepted research tradition (Ibid, P.578) say Engel and Blackwell. Researchers so far
have used different definition of brand loyalty. Some have used the traditional definitions which
measures brand loyalty on the basis of the consumer purchases whereas others have used
extended definitions of brand loyalty which measure brand loyalty on the basis of both the
consumer purchases and consumer preferences. Due to the use of different definitions and
approaches the researches, findings, concerning to brand loyalty correlates have resulted to
confusion and contradiction. Hence, it is not only difficult but also impossible to state exactly
what are the correlates and non-correlates of brand loyalty.
Brand Loyalty correlates are the important aspects of study on brand loyalty. Brand Loyalty
correlates tells why brand loyalty varies across products and consumers. Similarly, brand loyalty
correlates are of high importance for the markets. Therefore, there must not be any
contradiction or confusion about the correlates. Correlates must be defined and stated precisely
to the markets and could use them as the efficacious guidelines for making strategies. And, this
can be better done by improving the weaknesses of the past events and by developing the most
scientific and widely accepted research tradition.
27
The brand choice behavior is described as a dichotomous selection i.e. selection between
two brands A and B.
II.
28
Last Purchase
Total
0.7 (70%)
0.1 (10%)
0.2 (20%)
1 (100%)
0.3 (30%)
0.6 (60%)
0.0 (20%)
1 (100%)
0.4 (40%)
0.1 (10%)
0.5 (50%)
1 (100%)
Mr. Yogesh Pant had carried out a research titled, study on brand loyalty in 1992. The
major objective of this study was to examine the brand and identify correlates of brand
loyalty especially on low involvement products.
II.
Mr. Jagat Timilsina had conducted a research on A study on buyer behavior in 1999.
The study basically concentrated to find out brand patterns and purchase, freedom of
clothing apparels.
So after reviewing the above researches conducted by the Tribhuvan University is constantly
going to add an extra milestone in Nepalese research activities. The study is an attempt to
reveal the brand loyalty of the Nepalese consumer. In this study, I have taken new journals and
articles from different journalists who are related to brand loyalty that helps to know about brand
loyalty and its effect on manufactures, marketers and consumers, relationship among them and
shows a glance of actual position of brand loyalty in Nepal. Further, the study has involved 5
different TV Brands such as LG, Samsung, Sony, Philips, Haier and data are different from
those of previous in term of time and space. So, it has been believed that this study will be
29
Theoretical Framework:
Explanation of Theoretical Framework:
This theoretical framework shown below (the network diagram that describes the relationship
between dependent and independent variables) is the foundation on which the entire research
A study of attributes of Brand Loyalty in LCD and LED TV purchasing Decision" is largely
based.
The theoretical framework shown below elaborates the relationship among the variables
explains the theory underlying these relations and describes the nature and the direction of the
relationships. In the above shown network diagram, the variables are classified as:
Independent and Dependent variables:
The independent variables shown in the diagram below are age, sex, income, price and
advertising and promotion. These variables are taken as independent variables because they
are not influenced by any other variables. But they affect dependent variable which is Brand
Loyalty. It is affected by all those independent variables. Here, the Brand Loyalty is depended
upon these kinds of independent variables. Therefore, it is considered as dependent variable.
Independent variables
Dependent variables
1. Age
2. Sex
Brand loyalty
3. Income
4. Price
5. Advertising and Promotion
In this way, this second chapter was based upon reviewing the critical points of current
knowledge and methodological approaches on the study of the attributes of brand loyalty of
consumer in purchasing decision. In fact, this chapter was associated with academic oriented
literature such as thesis and literature review. It was well characterized by a logical flow of
ideas: current and relevant references with consistent, appropriate referencing style along with
proper use of terminology related with brand loyalty. Now in the next chapter i.e. Methodology,
the will discuss the procedure employed for the data collection and the way of its analysis.
30
CHAPTER 3
METHODOLOGY
Research methodology is a way to systematically solve the researchers problem. It facilitates
the researchers work and provides reliability and validity. In other words, it is a systematic
product of knowledge. C. K. Kothari defined research as a scientific systematic research for
pertinent information on a specific topic (Kothari 1998:1). Redman and Moray define research
as a systematized effort to gain new knowledge (Redman and Moray 1923:10). Research
Methodology refers to the various sequential steps to adopt by a researcher in studying a
problem with certain objectives in view. Research Methodology is a way to systematically solve
the research problem (Kothari, 1999:10). In the other words, Research methodology refers to
the various sequential steps (along with a rationale, of each such step) to be adopted by a
researcher in the studying a problem with certain object/objects in view It refers to the various
sequential steps to adopt by a researcher in studying the problem with certain objectives. It
describes the method and process applied in the entire aspect of the study. In this chapter, the
research design, data collection procedure and procedures concerning analysis of data are
described thoroughly. Analysis is conducted by using appropriate financial and statistical tools
and findings are presented in a systematic way. An introduction relating to this thesis work is
made in the first chapter and relevant literatures are reviewed in the second chapter. The
research methodology, which is used to analyze to the collected data, are mentioned in this
chapter.
This passage discusses the procedure employed in the study including data collection and
analysis. Further, it deals with variables used in the study: the necessary relevant data have
been successfully collected from the consumer's personality purchasing pattern of different
brands of the product like LCD/LED Television (TV). A research work should be much more
effective, accurate and useful and it should follow scientific methods. The research methodology
employed in the present study is described here as follows:
31
describing what is and what the data shows regarding the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision. For further explanation, the data are
presented and analyzed through the types of graph and tables. Under graphical presentation of
the data, it has used pie chart and bar diagram while the frequency table (univariate) and cross
tabulations (bivariate and multi variate) are used for the tabular presentation of data.
Inferential Statistics investigate questions, models and hypotheses. For the study, this statistics
is used to make inferences from our data to more general conditions and test whether there is
significant relationship exists between variables such as age, income level, education level and
family size with brand. For this, Chi Square Test Model is used.
This study is exploratory in nature. This study mainly aims to find out the Attributes of brand
loyalty of Nepalese consumer in LCD/LED Television (TV) purchasing decision with reference
to Kathmandu valley. This study is mainly focused with to analyze the effect of brand loyalty of
Nepalese consumer in LCD and LED Television purchasing decision and the applied data are
mainly primary in nature. Therefore, the multiple research designs were employed in this study
for accomplishing different objectives. Hence, the descriptive, well as inferential research
designs have, therefore, been included in the present study.
For this study, the survey research design has been adopted. The data and information
collected from the survey of the consumer are rearranged, tabulated, analyzed and interpreted
according to the needs of the study for attaining stated objectives. The Nepalese ultimate
consumers are extensively surveyed so as to procure data and information about the
consumers, personality, purchasing pattern of the different brands of the products selected for
the study and their attitudes, responses and reactions relating to the same brands.
3.1.1 Descriptive research Design
Descriptive research design was adopted to describe the situation and events and the opinions
of consumers of LCD and LED television. For this, Descriptive statistics were used to describe
the basic features of the data in a study. They provide simple summaries about the sample and
the measures. Descriptive statistics are the numerical, graphical, and tabular techniques for
organizing, analyzing, and presenting data. Together with simple graphics analysis, they form
the basis of virtually every quantitative analysis of data. Some of the descriptive statistics used
in this study are;
3.1.1.1 Graphs:
Generally, graphs provide the visual distribution for a variable or variables. In this study, various
kinds of graphs such as pie charts and histograms are used in order to provide visual
distribution of various opinions of the consumers regarding their purchasing decisions.
3.1.1.2 Tables:
Tables provide summary and a frequency distribution for a variable or variables. This study has
used such tables for the presentation of summary of primary data.
32
33
3.3 Instrumentation:
As the main objective of the study is to analyze consumers brand consciousness in Kathmandu
District, to identify the relationship of brand with demographic variables like age, income level,
education and family size, this study is mainly focused to the qualitative aspects. And for finding
the data of qualitative aspects of the study, the main instrument has become questionnaire.
A well-structured questionnaire is the main instrument used for collection of data required for
this study. Questionnaires were distributed to the consumers of Nepalese LCD/LED TV market
so that their views, opinions, ideas and experiences can be obtained and that information will be
valuable for analyzing and interpretation. The questionnaire was most carefully designed as well
as pre-tested so that it could best serve the purpose of this study. The questionnaire contained
multiple choice questions. 200 questionnaires were distributed. And altogether 120 of them
were collected with those respondents having LCD/LED Television. Maximum attention has
been given while filling up the questionnaires. The respondents were supported by oral
explanation or inability to understand any content in the questionnaire.
It was obvious for me to use questionnaire as the main instrument for the research basically due
to the fact that the process of observation is in itself very time consuming and questionnaire is
faster and simple method of collecting data and also through this, a large number of sample can
be covered that have managed to do in this research. This study has used structural
questionnaires method for conducting survey and specially, probing techniques are have been
used for getting enough information about the opinions, expressions, ideas and knowledge from
the respondents. Survey has been used as an instrument to undertake research on selected
stratified sampling with the help of questionnaire. Some informal interviews were taken with the
seller of the LCD and LED TV.
34
A well-structured questionnaire is the main instrument used for collection of data required for
this study. The questionnaire was most carefully designed as well as pre-tested so that it could
best serve the purpose of this study. The questionnaire contained multiple choice questions.
200 questionnaires were distributed and altogether 120 of them are collected from the
respondents having LCD/LED Television.
Secondary sources:
To analyze the study topic, required secondary data have been collected from different sources.
The information relating to the attributes of brand loyalty of Nepalese consumer in LCD and LED
TV purchasing decision are also obtained from the following secondary sources also:
Time Frame:
Regarding the time frame for the collection of total questionnaire, it has taken up to 4 weeks
where visiting to different showrooms was less time consuming to fill up the questionnaire than
the questionnaire left over to the companies; and also through email, it was collected within 4
weeks.
35
Regarding reliability of the research, the mainly the questionnaires are filled up through self
administered and to have more accurate results and relationship between the variables, the
questionnaire are cross checked and finalized.
36
CHAPTER 4
RESULT AND DISCUSSION
This chapter describes the main part of the whole study where the data collected from the
various sources are presented and analyzed in detail. This chapter is divided into two parts such
as analysis of primary data and analysis of secondary data are examined
4.1 Presentation of results
Under this study, the presentation of the result is only based on the primary data. These primary
data analysis is collected through the structured questionnaire in order to meet the main
objective of the study. For this, the respondents are selected. The presentation and analysis of
primary data are collected through the questionnaire mentioned in Appendix 1 are explained
below:
No.
Percentage (%)
63
57
52.5
47.5
120
100
37
Sex
Female
48%
Male
52%
Age Group
Age Group
No.
Percentage (%)
Below 20 Years
5.88
20-30 Years
20
16.67
30-40 Years
48
40
40-50 Years
35
29.17
Above 50 Years
10
8.28
Total
120
100
38
Age Group
Above 50 Years
40-50 Years
30-40 Years
Percentage (%)
20-30 Years
Below 20 Years
0
10
20
30
40
50
No.
Percentage (%)
Up to 3 members
15
12.5
3-5 members
32
26.7
5-7 members
53
44.2
7-10 members
16
13.3
3.3
120
100
Above 10 members
Total
39
Family Size
Above 10 members
7-10 members
5-7 members
Percentage (%)
3-5 members
Up to 3 members
0
10
20
30
40
50
No.
Percentage (%)
Up to SLC
17
14.2
Certificate level
28
23.3
Bachelors level
30
25
Masters Level
40
33.3
4.2
120
100
40
Education
Above Masters level
Masters Level
Bachelors level
Percentage (%)
Certificate level
Up to SLC
0
10
20
30
40
No.
Percentage (%)
6.67
10-20 Thousand
21
17.5
20-40 Thousand
52
43.33
40-60 Thousand
23
19.17
Above 60 Thousand
16
13.33
120
100
Total
41
Income
Above 60 Thousand
40-60 Thousand
20-40 Thousand
Percentage (%)
10-20 Thousand
Up to 10 Thousand
0
10
20
30
40
50
2.78
2.53
42
The above mentioned table reveals that the consumers have given on average 2.78 points for
the consumer durable goods and 2.53 for the non durable goods. According to the scale, the
given point to the consumers approaches the maximum important points. Thus, it seems that
brand has high importance for the Nepalese consumers and the importance of study on the
Effect of brand loyalty of Nepalese consumers in the LCD and LED television purchasing
decision.
No
Percentage (%)
Samsung
40
33.33
Sony
30
25
LG
22
18.33
Philips
18
15
Haier
10
8.33
Total
120
100
Philips
15%
Samsung
34%
LG
18%
Sony
25%
43
that they have Sony brand, 18.33% of them stated that they have LG brand, 15% of them told
that they have Phillips brand and the rest of them, i.e. 8.33% stated that they have Haier brand.
4.2.8 Most Favorite Brand:
The consumers buying the LCD and LED television were asked regarding their most favorite
brand. The summary of their responses are depicted in the following cross table along with sex:
Table No. 8: Most Favorite Brand
S.
Most Favorite
No.
brand
No. of Respondents
Male
Total
Female
Numbers
Samsung TV
22
34.92
18
31.57
40
33.33
Sony TV
16
25.39
14
24.56
30
25
LG TV
12
19.04
10
17.54
22
18.33
Plillips TV
10
15.87
14.03
18
15
Haier TV
4.76
12.28
10
8.33
Total
63
100
57
100
120
100
15.00
10.00
5.00
0.00
Samsung
Sony
LG
Philips
Haier
44
the purchase of LCD and LED television group which has the brand Haier.
Hence, 33.33% and 25% consumers falling in the purchase of television of Samsung and Sony
is the most favorite brand from the loyalty point of view.
Samsung
LG
Sony
Phillips
Haier
Causes
No
Percentage (%)
Price
30
25
Design
30
25
Function
60
50
Total
120
100
Price
60
50
Design
30
25
Function
30
25
Total
120
100
Price
55
45.83
Design
35
29.17
Function
30
25
Total
120
100
Price
30
25
Design
30
25
Function
60
50
Total
120
100
Price
30
25
Design
28
23.33
Function
62
51.67
Total
120
100
The above table reveals that of the total 120 respondents, 25% have both selected the
reasonable price and good designing while selecting the most favorite brand of Samsung LCD
and LED Television whereas 50% have selected the good function while purchasing the most
favorite brand of LG LCD and LED Television. Similarly while the respondents selected the LG
45
LCD and LED television, 5O% has selected the reasonable price, 25% good design and 25%
good function respectively.
In the case of Sony LCD and LED television, 45.83% have selected reasonable price, 29.17%
have selected good design and 25% have selected good function.
In the case of Phillips LCD and LED television 25% have selected reasonable price. 25% have
selected good design and 50% have selected good function. Similarly, 25% have selected
reasonable price, 23.33% have selected good design and 51.67% have selected good function
while purchasing Haier LCD and LED television.
Hence by the tabulation of the Primary data it is concluded that some respondents have
selected the good function in their favorite brand while others have selected good design or
reasonable price. Therefore the majority of the respondents have selected either seasonal price
or good function in their most favorite brand.
the
Product
Sony TV
LG TV
Samsung
TV
Phillips
TV
Haier TV
Means of the
Purchase
Number of Respondents
Male
Female
Total
Number
By Brand
40
57.14
25
50
65
54.17
By Inspection
30
42.85
25
50
55
45.83
Total
70
100
50
100
120
100
By Brand
30
37.5
25
62.5
55
45.83
By Inspection
50
62.5
15
37.5
65
54.17
Total
80
100
40
100
120
100
By Brand
35
46.77
35
77.78
70
58.33
By Inspection
40
53.33
10
22.22
50
41.67
Total
75
100
45
100
120
100
By Brand
25
33.33
20
44.45
45
37.5
By Inspection
50
66.97
25
55.55
75
62.5
Total
75
100
45
100
120
100
By Brand
15
23.08
25
45.45
40
33.33
By Inspection
50
76.92
30
54.54
80
66.67
Total
65
100
55
100
12
100
46
Table No. 2 shows how the Nepalese consumers buy a product LCD and LED Television. In
the case of Samsung TV, 58.33% buy it by the brand whereas 41.66% buy it by inspection. In
the case of Sony Television, 54.17% buys it by the brand name whereas 45.83% buys it on
inspection. In the same way, in case of LG Television, 45.83% buys it by the brand name
whereas 54.17% buys it on inspection. In case of Phillips TV, 37.5% buy it by brand whereas
62.5% buy it on inspection. Similarly in case of Haier TV, 33.33% buy by brand whereas 66.67%
buy by inspection.
Hence, it can be said that the majority of the Nepalese consumers buy LCD and LED Television
by inspection rather than by brand but in the case of LG and Sony Television, some consumers
are being brand loyal than compared to other Television brands, by research it appeared that
the consumers attitude are more brand loyal towards Samsung and Sony Television. Thus one
must not be confused in the term by brand and by inspection. Buying by brand means, buying
a product by examination or observation. For example, if a consumer who wants to buy
toothpaste goes to a shop or store and asks the shopkeeper to give him a Colgate or
Pepsodent, then it is called buying by brand. But if the same consumer goes to the store and
asks the shopkeeper to give him toothpaste and does not specify which toothpaste he wants to
buy then it is called buying by inspection.
Buying by brand is directly selecting with brand awareness. A consumer who always buys by
brand is supposed to have knowledge of different alternative brands available in the market and
the difference between the brands uses and other alternative brands in the market.
The difference in consumer durable goods and non durable goods, the high importance of brand
show the consumer's strong interest to knowing brand of the products they use.
To be more specific about the brand awareness of the Nepalese consumer, we had asked them
whether they buy the products selected for this study by brand or inspection. Their response to
this question is depicted in the following:
47
Percentage
54.17
45.83 45.83
66.67
62.5
54.17 58.33
41.67 37.5
33.33
Sony TV
LG TV
Samsung TV Phillips TV
By Inspection
By Brand
By Inspection
By Brand
By Inspection
By Brand
By Inspection
By Brand
By Inspection
Percentage
By Brand
80
70
60
50
40
30
20
10
0
Haier TV
Name of
Products
Sony
TV
LG TV
Samsung
TV
respondents
loyal respondents
Nos.
Nos.
Nos.
Price
30
22.77
50
36
30
Advertising
31
28.7
8.33
32
26.66
A new brand
25
23.14
16.66
27
22.5
None
22
33.14
25
25
20.83
Total
108
100
12
100
120
100
Price
20
19.04
33.33
25
20.83
Advertising
30
28.57
6.66
32
26.66
A new brand
30
28.57
40
36
30
None
25
23.8
6.66
27
22.5
Total
105
100
15
100
120
100
Price
31
28.18
40
35
29.16
Advertising
32
9.09
10
33
27.5
A new brand
41
37.27
30
44
36.66
None
5.45
20
6.66
Total
110
100
10
100
120
100
Factors
Total
48
Phillips
TV
Haier TV
Price
32
29.35
9.09
33
27.5
Advertising
30
27.52
45.45
35
29.16
A new brand
40
36.69
36.36
44
36.66
None
6.02
9.09
6.66
Total
109
100
11
100
120
100
Price
20
18.69
38.46
25
20.83
Advertising
40
37.38
15.38
42
35
A new brand
45
42.05
38.46
50
41.66
None
1.86
7.69
2.5
Total
107
100
13
100
120
100
The above factors are affecting consumers while purchasing LCD and LED television, 30% of
the total respondents are affected by price while purchasing Sony Television, 26.66% of the
total respondents are affected by advertising, 22.5% are affected by a new brand and 20.83%
are affected by none of these factors while purchasing Sony LCD and LED Television.
In the case of LG television, 20.83% of the total respondents are affected by price while
purchasing LG Television, 26.66% of the total respondents are affected by advertising. 30% are
affected by a new brand and 22.5% are affected by none of these factors.
In the case of Samsung television, a new brand having 36.66% affects highest while purchasing
it whereas 29.16% of price and 27.5% of advertising affect the least consumers in comparison
to a new brand. In the case of Phillips LCD and LED television, a new brand having 36.66%
affects highest while purchasing it whereas 27.5% of price and 29.16% of advertising affect the
least consumers in comparison to a new brand. Similarly, in the case of Haier television, a new
brand having 41.66% affects highest while purchasing it whereas 20.83% of price and 35% of
advertising affect the least consumers in comparison to a new brand.
Hence, in LCD and LED Television purchasing decision consumers are affected mostly by a
new brand than by other factors like advertising, price and others.
49
Degree of Loyalty:
In order to find out the degree of Loyalty of various LCD and LED Televisions, consumers were
asked what they would do if their favorite brand is not available. The summary of their
responses are shown in the following cross tabulation analysis:
Table No. 12: Degree of Loyalty
Name of
product
Samsung
TV
Sony TV
LG TV
Phillips TV
Haier TV
Male
%
Femal
e
Female
%
Total
Nos
.
Percent
%
25
44.64
35
34.68
60
50
16
28.57
14
21.87
30
25
Do not buy
15
26.78
15
23.43
30
25
Total
Wait for the favorite
brand
56
100
64
100
120
100
30
46.15
30
54.54
60
50
20
30.76
15
27.27
35
29.17
Do not buy
15
23.07
10
18.18
25
20.83
Total
Wait for the favorite
brand
65
100
55
100
120
100
25
45.45
25
38.46
50
41.67
15
27.27
30
46.15
45
37.5
Do not buy
15
27.27
10
15.38
25
20.83
Total
Wait for the favorite
brand
56
100
64
100
120
100
15
23.07
20
36.36
35
29.17
30
46.15
15
27.27
45
37.5
Do not buy
20
30.76
20
36.36
40
33.33
Total
Wait for the favorite
brand
65
100
55
100
120
100
18
24.65
20
42.55
38
31.67
30
4.09
15
31.91
45
37.5
Do not buy
25
34.24
12
25.53
37
30.83
Total
73
100
47
100
120
100
50
Samsung TV
Sony TV
LG TV
Total
Do not buy
Total
Phillips TV
Percentage %
Do not buy
Total
Do not buy
Total
Do not buy
Total
Do not buy
20
Haier TV
51
Ability to judge
product
brand
Samsung TV
LG TV
Sony TV
Philips TV
Haier TV
No. of respondents
Male
Female
Total
%
No.
Very High
25
39.06
15
26.78
40
33.33
High
15
23.43
20
35.71
35
29.17
Moderate
14
21.87
11
19.64
25
20.83
Low
10
15.62
10
17.85
20
16.67
Total
64
100
56
100
120
100
Very High
13
19.11
12
23.07
25
20.83
High
10
14.7
10
19.23
20
16.67
Moderate
20
29.41
20
38.46
40
33.33
Low
25
36.76
10
19.23
35
29.17
Total
68
100
52
100
120
100
Very High
20
32.25
15
25.86
35
29.17
High
16
25.8
17
29.31
33
27.5
Moderate
22
35.48
22
37.93
44
36.67
Low
6.45
6.89
6.67
Total
62
100
58
100
120
100
Very High
18
28.57
15
26.31
33
27.5
High
17
26.98
18
31.57
35
29.17
Moderate
24
38.09
20
35.08
44
36.67
Low
6.34
7.01
6.67
Total
63
100
57
100
120
100
Very High
12
18.46
14.54
20
16.67
High
20
30.76
20
36.36
40
33.33
Moderate
25
38.46
20
36.36
45
37.5
Low
12.3
12.72
15
12.5
Total
65
100
55
100
120
100
52
Percentage %
Samsung
TV
LG TV
Sony TV
Philips TV
Haier TV
53
Sony TV
Samsung TV
LG TV
Philips TV
Haier TV
Decision
No
Male
Total
Female
No.
Yes
50
7.42
30
60
80
66.67
No
20
28.57
20
40
40
33.33
Total
70
100
50
100
120
100
Yes
45
66.17
40
76.92
85
70.83
No
23
19.16
12
23.07
35
29.16
Total
68
100
52
100
120
100
Yes
35
58.33
35
58.33
70
58.33
No
25
41.67
25
41.67
50
41.66
Total
60
100
60
100
120
100
Yes
25
40.67
25
41.67
50
41.66
No
35
58.33
35
58.33
70
58.33
Total
60
100
60
100
120
100
Yes
20
30.76
15
27.27
35
29.16
No
45
69.23
40
72.72
85
70.83
Total
65
100
55
100
120
100
The above table shows how the respondents are doing their activities before buying LCD and
LED Television. The table shows that 66.67% of the respondents falling to Yes and remaining
33.33% falling to No respondents before buying Sony LCD and LED Television brand.
Similarly, 70.83% shows positive or Yes and 29.16% shows No before buying Samsung LCD
and LED Television, 58.33% shows positive or Yes and 41.66% shows No before buying LG
LCD and LED Television, 41.6% shows positive or yes and 58.33% shows No before buying
Phillips LCD and LED Television. Lastly, 29.16% shows positive or yes and 70.83% shows No
before buying Haier LCD and LED Television.
Hence, in the case of Samsung, Sony and LG television the majority of the respondents appear
Yes before purchasing the LCD and LED television brand. But remaining Phillips and Haier,
the respondents are not interested to determine before purchasing the branded television.
54
Table No. 15: Consumers having alternative brands in the LCD and LED TV market
Availability of Brand
No
Percentage
Yes
110
91.67
No
10
8.33
Total
120
100
Yes
No
91.67
Figure No. 11: Consumers having alternative brands in the LCD and LED TV
The above table and figure shows that the majority of the respondents know very well about the
different alternatives or competing brands of LCD and LED Television. The table and figure
depicts that more than 90% of the respondents knew the availability or brand or television in the
market. Here 91.67% of the brand loyal respondents know the different brands of LCD and LED
television in the market whereas 8.33% of the respondents do not know the alternative brands
of LCD and LED television in the market.
55
Causes
Samsung
Sony
LG
Phillips
Haier
No
Percentage (%)
Yes
33
82.5
No
17.5
Total
40
100
Yes
22
73.33
No
26.67
Total
30
100
Yes
13
59.09
No
40.91
Total
22
100
Yes
44.44
No
10
55.56
Total
18
100
Yes
40
No
60
10
100
Total
(Source: Field Survey, 2012)
The above table shows whether or not the brand to which the respondent is loyal is the same to
that of the other member of his family. In the Sony LCD and LED Television, the relation
between the favorite brand of other members of the family and that of the respondents seems
not very close to that of the total brand respondents, the favorite brand of 73.33% is the same
as the favorite brands of other members of the family. On the other hand, in Samsung LCD and
LED Television the percent of the respondents whose favorite brand is more similar to the
percent of those whose favorite brand differs from the favorite brand of other members of the
family i.e. 82.5% of the respondents have stated that their favorite brand is similar to their other
family members. But in the LG Brand, 59.09% of the respondents have stated that their choice
are similar to their family members. In the Phillips, 44.44% of the respondents similar to their
other family members and in Haier LCD and LED Television, 40% of the respondents have the
similar favorite brand to other members of the family.
56
No. of Respondents
Most Favorite
brand
Male
Total
Female
Numbers
Samsung TV
22
34.92
18
31.57
40
33.33
Sony TV
16
25.39
14
24.56
30
25
LG TV
12
19.04
10
17.54
22
18.33
Phillips TV
10
15.87
14.03
18
15
Haier TV
Total
4.76
12.28
10
8.33
63
100
57
100
120
100
Age
Below
20 Years
20-30
Years
30-40
Years
40-50
Years
Above
50 Years
LG
Son
y
2.
5
18
17
43
13
11
28
10
1.54
4
96.5
Total
22
9
40
(Source: Field Survey, 2012)
10
10
0
3
4
5
9
1
13.6
4
18.1
8
22.7
3
40.9
1
Samsun
g
30
%
3.3
3
Philli
ps
1
Hai
er
Tot
al
Total
%
5.55
16.6
7
10
5.88
30
20
16.67
40
48
40
10
35
29.17
10
10
0
10
8.28
120
100
10
43.
3
33.
3
50
22.2
2
10
10
0
5.56
18
100
10
57
The table mentioned above reflects the overall picture of the number of respondents choosing
their favorite brand and their age group. It can be seen that Almost in all brands, most of the
respondents fall in the age group of (30-40 yrs). In case of LG, majority i.e. 40.91% of the
people preferring this brand fall under the age group of (40-50 yrs). 22.73% of the people
choosing LG TV as their favorite brand fall under the age group of (30-40 yrs). Similarly, 18.18%
of them fall under the age group of (20-30 yrs) and 1.54% of them fall under the age group of
(Above 50 yrs). And the rest i.e.13.64% of them fall under the age group of (Below 20 yrs).
In case of Samsung, majority i.e. 42.5% of the people preferring this brand fall under the age
group of (30-40 yrs). 27.5% of the people choosing Samsung LCD and LED TV as their favorite
brand fall under the age group of (40-50 yrs). Similarly, 17.5% of them fall under the age group
of (20-30 yrs), 10% of them fall under the age group of (Above 50 yrs) and the rest i.e. 2.5% of
them fall in the age group of (Below 20 yrs).
In case of Sony Brand, Majority of the respondents choosing Sony as their favorite LCD and
LED TV brand fall in the age group of (30-40 yrs). 43.33% of them fall in this age group. 33.33%
of them fall in the age group of (40-50 yrs). Similarly, 10.01% of them fall in the age group of
(Above 50 yrs). In the same way, 10% of them fall in the age group of (20-30 yrs), and the rest,
i.e. 3.33% of the respondents selecting Sony Brand fall in the age group of (Below 20 yrs).
In case of Phillips brand, Majority of the respondents choosing Phillips as their favorite LCD and
LED TV brand fall in the age group of (30-40 yrs). 50% of them fall in this age group. 22.22% of
them fall in the age group of (40-50 yrs). In the same way, 16.67% of them fall in the age group
of (20-30 yrs), similarly, 5.56% of them fall in the age group of (Above 50 yrs).and the rest, i.e.
5.55% of the respondents selecting Phillips Brand fall in the age group of (Below 20 yrs).
In case of Haier brand, majority i.e. 40% of the respondents choosing Haier as their favorite
brand fall in the age group of (30-40 yrs), 30% of them fall in the age group of (20-30 yrs),and
10% each of them fall in all the rest age group i.e.(Below 20 yrs), (40-50 yrs). (Above 50 yrs).
58
Samsu
ng
0
3
%
0
7.5
47.
20-40 k
19
5
32.
40-60 k
13
5
12.
above 60k
5
5
10
Total
40
0
(Source: Field Survey, 2012)
Son
y
13
13
43
20
23
10
0
30
L
G
22
%
13.
6
31.
8
40.
9
4.5
5
9.0
8
10
0
Phillip
s
Hai
er
%
16.6
7
27.7
8
38.8
9
11.1
1
5.55
18
100
10
3
5
7
Tot
al
Total
%
20
6.67
20
21
17.5
40
52
43.33
10
23
19.17
10
10
0
16
13.33
120
100
The above table reflects the overall summary of the number of respondents choosing their
favorite brand and their monthly incomes. In most of the Brands, it can be seen that
respondents who are earning (20 -40 thousands) are in the largest numbers.
In case of Samsung Brand, Majority i.e. 47.5% of the respondents fall in the category of monthly
income of (20-40 thousands). 32.5% of the respondents who have chosen Samsung as their
favorite brand fall in the category of monthly income of (40-60 thousands). Similarly, 12.5% of
them earn monthly (Above 60 thousands) and the rest 3% fall in the income group of (10-20
thousands).
In case of Sony Brand, Majority i.e. 43.33% of the respondents fall in the category of monthly
income of (20-40 thousands). 23.33% of the respondents who have chosen Sony as their
favorite brand fall in the category of monthly income of (Above 60 thousands). Similarly, 20% of
them earn monthly (40-60 thousands) and the rest 13.33% fall in the income group of (10-20
thousands).
Similarly, in case of LG Brand, Majority i.e. 40.91% of the respondents fall in the category of
monthly income of (20-40 thousands). 31.82% of the respondents who have chosen LG as their
favorite brand fall in the category of monthly income of (10-20 thousands). Similarly, 13.64% of
them earn monthly (Below 10 thousands), 9.08% of them fall under the monthly income group of
(Above 60 thousands) and the rest 4.55% fall in the income group of (40-60 thousands).
In the same way, in case of Phillips Brand, Majority i.e. 38.89% of the respondents fall in the
category of monthly income of (20-40 thousands). 27.78% of the respondents who have chosen
Phillips as their favorite brand fall in the category of monthly income of (10-20 thousands).
Similarly, 16.67% of them earn monthly (Below 10 thousands), 11.11% of them fall under the
monthly income group of (40-60 thousands) and the rest 5.55% fall in the income group of
(Above 60 thousands).
In case of Haier Brand, Majority i.e. 40% of the respondents fall in the category of monthly
income of (20-40 thousands). 20% of the respondents who have chosen Haier as their favorite
brand fall in the category of monthly income of (10-20 thousands) and (Below 10 thousands).
59
Similarly, 10% of them fall under the monthly income group of (40-60 thousands) and the rest
10% of them fall in the income group of (Above 60 thousands).
ng
So
ny
L
G
Philli
ps
36.
Up to SLC
7.5
Certificate
level
15
10
12
30
30
42.
Masters Level
17
17
40
30
Total
al
22
20
17
14.2
33
40
28
23.3
67
30
30
25
10
40
33.3
4.2
120
100
16.
3
3.
10
Total
57
Tot
16.
9.0
Above Masters
level
er
33.
13.
Bachelors level
Hai
22.
40.
6
67
11.
10
10
11
10
18
100
10
60
In the same way, in case of LG Brand, majority of the respondents choosing this brand as their
favorite one belong to Certificate level. 40.91% of them fall under the education of Certificate
level. In the same way, 36.36% of the respondents choosing LG as their favorite brand belong
to upto SLC level. 13.64% of them belong to Bachelor level, and the rest of them, i.e. 9.09%
belong to Above Masters level.
In the same way, in case of Phillips Brand, majority of the respondents choosing this brand as
their favorite one belong to Certificate level. 33.33% of them fall under the education of
Certificate level. In the same way, 22.22% of the respondents choosing Phillips as their favorite
brand belong to upto SLC level. 16.67% of them belong to Bachelor level and Masters level and
the rest of them, i.e. 11.11% belong to Above Masters level.
In case of Haier brand, majority of the respondents choosing this brand as their favorite one
belong to Certificate level. 40% of them fall under the education of Certificate level. In the same
way, 30% of the respondents choosing Haier as their favorite brand belong to Bachelor level.
20% of them belong to Upto SLC level and the rest of them, i.e. 10% belong to Masters level.
3-5 members
16
5-7 members
20
7-10 members
Above 10
members
Family size
Less than 3
members
Total
1
40
So
ny
L
G
23
40
20
50
7.
5
2.
5
10
0
15
50
3.
3
3.
3
10
0
1
1
30
9
1
2
2
%
22.
7
9.1
22.
7
40.
1
5.3
4
10
0
Philli
ps
%
16.
67
33.
34
38.
89
5.5
5
5.5
5
18
100
3
6
7
1
Hai
er
Tot
al
Total
%
15
12.5
20
32
26.7
60
53
44.2
20
16
13.3
0
10
0
3.3
120
100
10
61
the group of (7-10 members) and the rest 2.5% of them belong to the family size of (Above 10
members.
In case of Sony Brand also, most of the respondents preferring that brand fall in the family size
of (5-7 members). 50% of them fall in this group. 23.33% of the respondents who prefer Sony
brand fall in the group of (Upto 3 members). In the same way, 20% of them fall in the group of
(3-5 members), 3.3% of them belong to the (7-10 members) and (Above 10 members) each.
In the same way, in case of LG, majority i.e. 40.1% of the total respondents preferring this brand
belong to the family size of (7-10 members). In the same way, 22.73% of them belong to the
family size of (Upto 3 members) and (5-7 members) each. 9.1% of them belong to the family
size of (3-5) members and the rest 5.34% of them belong to the family size of (Above 10
members)
Talking about Phillips brand, majority i.e. 38.89% of the respondents preferring this brand
belong to the family size of (5-7 members). In the same way, 33.33% of them belong to the
family size of (3-5 members), 16.67% of them belong to (Upto 3 members) and 5.5% of them
belong to the family size of (7-10 members) and (Above 10 members) each.
Similarly, in case of Haier brand, majority, i.e. 60% of the total respondents who have chosen it
as a favorite brand belong to the family size of (5-7 members). In the same way, 20% of them
belong to the family size of (3-5 members) and the rest 20% of them belong to the family size of
(7-10 members).
No
(%)
Dissatisfaction
28
23.33
Boredom
12
10
New innovation
48
40
Sales promotion
21
17.5
Others
11
9.17
120
100
Total
62
Dissatisfaction
23%
Sales promotion
19%
Boredom
10%
New innovation
40%
4.2.19 Suggestions:
The respondents were asked whether they have any suggestions to their preferred brands of
LCD and LED Television. The overall finding from this open end question is summarized here
under:
The respondents mentioned that Price of the LCD and LED Television is quiet high. They
focused that it would have been much better if the price of those consumer goods was little
lower so that they could afford for a better Television.
Majority of the respondents also focused that the supplier should provide after sales
services.
They also told that it would have been more easier if the suppliers provide more years of
warranty.
63
The respondents also highlighted that there should be more number of accessible
showrooms so that the consumers can easily buy those consumer goods.
Sales Promotions should be enhanced by those brands so that it can create differentiation
among the products and the consumers can get more aware about LCD and LED
Television.
Many of the respondents reflected that the company should provide financial aid to the
consumers at the time of purchasing LCD and LED Television.
From the Chi-square calculation, the computed value of Chi-square is found to be 15.51 and the
Chi-square tabulated value is 23.542 with 16 Degrees of Freedom in 10% of significance level in
10% of significance level. Here, the calculated value of Chi-square is less than the tabulated
value i.e. (15.51<23.542) which lies in the acceptance region. Hence, our Null Hypothesis is
accepted and it is conclude that there is no dependency between Age group of a customer and
brand. (Please Refer to Appendix No.2 for Chi-square test)
4.4.2 Test of Hypothesis of dependency between Income level of a consumer and brand:
From the Chi-square calculation, the computed value of Chi-square is is found to be 28.87 and
the Chi-square tabulated value is 23.542 with 16 Degrees of Freedom. Here, the calculated
value of Chi-square is greater than the tabulated value i.e. (28.87>23.542) which lies in the
rejection region. Hence, we reject our Null Hypothesis and it is conclude that there is
dependency between Income level of a customer and brand. (Please Refer to Appendix No. 2
for Chi-square test)
64
4.4.4 Test of Hypothesis of dependency between Family size of a consumer and brand:
From the Chi-square calculation, the computed value of Chi-square is found to be 38.60 and the
Chi-square tabulated value is 23.542 with 16 Degrees of Freedom in 10% significance level.
Here, the calculated value of Chi-square is greater than the tabulated value i.e. (38.60>23.542)
which lies in the rejection region. Hence, we reject our Null Hypothesis and it is conclude that
there is dependency between Family size of a customer and brand. (Please Refer to Appendix
No. 2 for Chi-square test)
In this way, this chapter was revolved round the presentation of the result that was based on the
primary data in order to meet the main objective of the study. Actually, this has provided main
findings regarding the study which has also helped for drawing the conclusions from the study
which will be highlighted in the next chapter.
65
CHAPTER 5
SUMMARY AND CONCLUSION
This chapter is the final body of the research. It includes the summary of the research,
conclusion drawn, and the recommendation to make further improvement for this study, A
study on the attributes of Brand Loyalty of Nepalese consumer in LCD/LED TV purchasing
Decision.
Nepalese consumers give high importance to brand in the consumers durable goods. The
weighted mean of the various important points given by the different respondents is 2.78 in
the consumer durable goods and 2.53 in the consumer non durable goods.
From the analysis of data, it has been found that majority of the respondents belong to (3040 Years), i.e. 40% of the total respondents belong to this age group and 29.17% of them
belong to (40-50 Years).
66
It has been also found that majority of the total respondents belong to the family size of (5-7
Members). 44.22% of them belong to this size and 26.7% of them belong to the family size
of 3-5 Members).
In case of Education level, majority of the respondents i.e. 33.3% belong to the Masters
Level. In the same way, 25% of them have education of Bachelors Level and 23.3% of them
have education of Certificate Level.
After analyzing the Income level of the respondents, it can be seen that majority of the
respondents belong to the income group of (20-40 Thousand). 43.33% of them belong to
this group and 19.17% of the total respondents belong to the group of (40-60 Thousand).
It has been found out that majority of the respondents preferred Samsung LCD and LED
Television as their favorite brand. 33.33% of the total respondents have stated that they
have Samsung LCD/LED Television. In the same way, 25% of them said that they have
Sony brand. LG, Phillips and Haier were least preferred brand in comparison to Samsung
and Sony LCD and LED brand.
By the tabulation of the Primary data it is has been found that some respondents have
selected the good function in their favorite brand while others have selected good design or
reasonable price. Therefore the majority of the respondents have selected either
reasonable price or good function in their most favorite brand.
Talking about the way of purchasing LCD and LED Television, it has been found out that
consumers preferring Samsung and Sony purchase by brand rather than inspection and
majority of the consumers preferring LG, Phillips and Haier brand purchase by inspection.
It has been found out that the main factor influencing for purchasing LCD and LED
Television is advertising, however, a new brand and price of a particular brand also affects
in a great deal.
In case of alternative option if the brand is not available, it has been found out that in case
of Samsung, Sony and LG, majority of the respondents stated that they would wait for them
whereas in case of Phillips and Haier, majority of them told that they would buy another
one. From this, it can be said that consumer preferring Samsung, Sony and LG are more
brand loyal in comparison to Phillips and Haier brand
From the analysis, it has been found that most of the respondents seem to have ability to
judge the brand. In case of Samsung, majority i.e. 33.33% of the respondents stated that
they have very ability to judge their brand. In case of other brands, majority of the
respondents have stated that they have moderate level of ability to judge their brand. This
shows that Brand awareness of the Nepalese consumers are found to be high.
67
In case of deciding particular brand before buying, it has been found out that majority of the
respondents of the brands like Samsung, Sony and LG decide before buying. 66.67% of the
respondents preferring Sony brand, 70.83% of them preferring Samsung brand and 58.33%
of them preferring LG brand decide their brand before buying. It shows that the consumers
preferring Samsung and LG seem more loyal than consumers preferring Phillips and Haier
from this part of analysis.
In case of having knowledge of alternative brand, it has been found out that majority i.e.
91.67% of the respondents stated that they have knowledge of alternative brand in the LCD
and LED Television market.
From the data analysis, it has been found out that Majority of the respondents preferring
Samsung, Sony and LG brand of LCD and LED Television brand stated that their choice
match with their family members. 82.5% of the respondents' choice preferring Samsung
brand match their choice with thier family members, 73.33% of the respondents' choice
preferring Sony brand match with their family members and 59.09% of the respondent's
choice preferring LG brand match with their family members.
From the cross tabulation analysis of sex and brand, It has been found that in all the
brands, male consumers are higher than the female consumers.
From the cross tabulation analysis of age and brand it has been found out that majority of
the respondents belong to the age group of (30-40 Years). In case of Samsung brand,
majority i.e. 43% of the total respondents belong to this group. In case of Sony brand,
43.3% of them belong to (30-40 Years) group. In the same say, 50% of the total
respondents preferring Phillips brand belong to the same age group, 40% of the total
respondents preferring Haier brand belong to (30-40 Years) but in case of LG brand, the
majority i.e. 40.91% of the total respondents belong to (40-50 Years).
Similarly, from the cross tabulation analysis of Income and brand it has been found out that
majority of the respondents preferring their favorite brand belong to the monthly income
group of (20-40 Thousands) i.e. In case of Samsung brand- 47.5%, Sony- 43%, LG- 40.9%,
Phillips- 38.89% and Haier- 40% belong to the monthly income level of (20-40 Thousand).
From the cross tabulation analysis of Education level and Brand, it has been found out that
most of the respondents preferring their brand belong to Certificate Level and Masters
Level. In case of Samsung and Sony brand, 42.5% and 57% of the total respondents
belong to Masters Level respectively. In the other hand, in LG, Phillips and Haier brand,
majority of the total respondents i.e. 40.9%, 33.33%, and 40% of the total respondents
belong to Certificate level respectively.
68
The cross tabulation analysis between family size and brand reveals that majority of the
respondents preferring their brands belong to the family size of (5-7 Members) in all brands
except LG brand. Majority i.e. 50% of the total respondents preferring Samsung brand
belong to family size of (5-7) Members. 50%, 38.89% and 60% of the total respondents
preferring Sony brand, Phillips brand and Haier brand respectively belong to family size of
(5-7) Members. However, 40% of the total respondents preferring LG brand belong to family
size of (7-10) Members.
In case of dependency between Age and brand, Income and brand, Education level and
brand and Family size and brand, the Chi-square testing was employed. From the Chisquare testing, it has been found out that there is no dependency between Age group of a
customer and brand however, there is dependency between Income level of a customer
and brand, Education level of a customer and brand and there is also dependency between
Family size of a customer and brand
Marketing is selling through advertising which means selling and advertising are the strongest
parts of marketing for the people. Marketing helps an organization to find out what the
customers want. It also helps to decide what products are to be made. The decision is carried
on after research in the market.
Production is the prime activity of every industry and successful marketing of the product is the
ultimate goal. Todays marketing is characterized by globalization, technological changes, and
strong competition. Successful marketers are those who deliver what customers are willing to
purchase as well as according to their ability to purchase. For this reason, marketers today
conduct many researches to study consumers buying decisions. Once it is understood,
marketers become able to predict and shape their marketing strategies accordingly. Without
doubt, marketers who understand markets and consumer behavior have great competitive
advantage over other competitors. Therefore, it is obvious that a production organization or
manufacturer must determine the needs, wants of their customer first, and then brings the
product in the market accordingly.
Nowadays, most of the consumers buy products with the help of brand rather than by inspecting
the products. It means, successful marketing of a product means successful marketing of the
brand of that product.
A consumers buyer behavior is influenced by four major factors; cultural, social, personal and
psychological factors. These factors cause consumers to develop product and brand
preferences. Although many of these factors cannot be directly controlled by marketers,
understanding of their impact is essential, as market mix strategies can be developed to appeal
69
to the preferences of the target market, while purchasing any product, a consumer goes through
a decision process. This process consists up to five stages: problem recognition, information
search, evaluation of alternatives, purchase decision and post purchase behavior. The length of
this decision process will vary ranging from shorter routine response behavior to limited problem
solving and a more comprehensive extensive problem solving. A consumer may not act isolated
in the purchase but may be influenced by any of several people in various roles.
To understand brand loyalty, the consumer buying behavior should also be considered. There
are six stages in the buying process: trigger, consider, search, choose, buy and experience.
Trigger is the first and most important process as this takes place when a consumers mind
clicks for a need of a product.
Brand loyalty is the consumers conscious or unconscious decision expressed through intention
or behavior to repurchase a brand regularly. It occurs because the consumer perceives that the
brand offers the right product features, image or level of quality at the right price. Consumer
behavior is habitual because habits are safe and familiar. In order to create brand loyalty,
marketers must break consumer habits, help them acquire new habits and reinforce these
habits by reminding consumers of the value of their purchase and encourage them to continue
purchasing those products in the future. Competition is the main characteristic of modern
marketing. Competition has been very tough in the Nepalese consumer market together with
increase in the number of units of industries producing different types of consumer goods. On
the one hand, Nepal's own industries are producing different types of products and on the other
hand, products of different types are being imported from other countries. Today, so many
brands of even a specific product category are being sold in the Nepalese market. Every
producer or marketer is trying their best to prove their product to be the best. This can be
observed from the promotional efforts like TV, Advertising, Radio Advertising, Newspaper
advertising, Posters, Hoarding boards, personal selling and other promotional tools etc. calling
up to buy their product. After all, every producer or marketer wants to develop a market share
highly loyal to his product or brand. These circumstances prevalent in Nepalese market signify
the need of understanding brand loyalty behavior of the consumer.
The Nepalese TV market has seen significant transitions in last one decade. The market is still
dominated by CRT TV is gradually shifting towards LCD TVs and is now evolving towards LED
TVs. Consumer's demand for multi-functional services, on-going TV network digitization and
increasing internet penetration is helping smart TV market to grow in Nepal.
Televisions are now available in every price range and with an immense variety to choose from.
Coming within an affordable budget range, it is becoming easy for consumers to be in tune with
their needs. Television sets ranges from anything from 14 to 50 and consumers have a variety
of choices, from color TVs to LCDs, LEDs and complete home theatre system.
70
Brands like SAMSUNG and SONY are popular in the country and are well-known international
brands to begin with, catering mainly to the upper class segment of the country. LG is another
brand that is creating waves in Nepal, known for innovative styles and designs.
The major objectives of this study was to understand the importance of durable goods in
Nepalese market, to analyze the most preferred and favorite brand of LCD/LED Television, their
reasons behind preferring those brands, to analyze the brand consciousness and awareness of
LCD/LED Television in Nepalese consumers, to find out the various factors while purchasing
LCD/LED Television, and to find out the dependency between Sex and brand, Income and
brand, Education level and Brand and Family size and brand.
The applied data in this study are mainly primary in nature. Therefore, the multiple research
designs were employed in this study for accomplishing different objectives. Hence, the
descriptive, well as inferential research designs have, therefore, been included in the present
study.
Questionnaire and the survey has become important tool for accomplishing the major objective
of this study. 200 questionnaires were distributed to the respondents who have got Television
and out of them 120 questionnaires were retrieved from the consumers who have LCD/LED
Television. The study is based on the qualitative measure of data. As per the nature of this
research, the entire focus is on primary data in the form of list of questionnaire has been used to
achieve the research objectives.
Under the study, descriptive statistics were used to simply describing what is and what the data
shows regarding factors affecting the purchasing decision of different brands of LCD/LED
Televisions. For further explanation, the data have been presented and analyzed through the
types of graph and tables. Under graphical presentation of the data, pie chart and bar diagram
has been used while the frequency table (univariate) and cross tabulations (bivariate and multi
variate) are used for the tabular presentation of data.
Inferential Statistics investigate questions, models and hypotheses were also used in this study.
For the study, this statistics has been used to make inferences from our data to more general
conditions and test whether there is dependency between Sex and brand, Income and brand,
Education level and Brand and Family size and brand. For this, Chi Square Test Model was
used.
After the systematic collection of data for the fulfillment of the objectives of the study and after
having their interpretation and analysis, this study has come up with various conclusions
regarding Nepalese LCD/LED Television Market, current scenario of most preferred brand in
LCD/LED Television, consumer's level of brand consciousness and awareness. The
conclusions made by this study are presented here under:
Nepalese consumers give high importance to brand in consumer durable goods.
71
Another finding of the study is that the consumers mostly prefer Samsung, Sony and LG
LCD/LED brand.
One of the findings of the study is that either reasonable price or good function is the main
reason behind being the most favorite brand.
It has been found out that consumer preferring Samsung and Sony purchase by brand
rather than inspection.
It has also been found out that the main factor influencing for purchasing LCD and LED
Television is advertising, however, a new brand and price of a particular brand also affects
in a great deal.
Consumer preferring Samsung, Sony and LG are more brand loyal in comparison to Phillips
and Haier brand.
Most of the consumers have the knowledge of alternative brand in the LCD and LED
Television market.
It has been also found out that the main reason for brand switching is due to New
innovation, and dissatisfaction.
From the Chi-square testing, it has been found out that there is no dependency between
Age group of a customer and brand however, there is dependency between Income level of
a customer and brand, Education level of a customer and brand and there is also
dependency between Family size of a customer and brand.
5.2.1 Recommendation:
Based on the theoretical and empirical works reviewed, research methodology adopted and
major findings of the study; and the suggestions provided by the consumers, the study deserves
to provide some recommendations to the various suppliers of different brands of LCD/LED
Televisions. Some of the recommendations are:
Consumers preferring LCD/LED Television of Samsung, Sony and LG brands are found to
be loyal in comparison to other brands. So the company should focus on the improvements
of attracting sales service.
As the research shows that the majority of the respondents preferring their brands belong to
(30-40 Years) and it has been also found out that most of the consumers preferring their
brand belong to having monthly income level of (20-40 Thousand), also, most of them
belong to education of Masters Level, and most of the respondents preferring different
brands belong to the family size of (5-7 members). So marketers should fix up the suitable
marketing mix strategy which can captivate the attention and motivation of the young
consumers Marketers should focus on young educated in their marketing activities.
72
Nepalese consumers are influenced by advertising. So the company should focus more on
the advertising media whether through visual or direct media
The majority of the consumers switch brands due to new innovation. So the marketer
should focus more in the existing product of the same brand
The respondents are aware of different brands available in the market. So the marketers
should focus more on their own products by giving some extra scheme than the
competitor's products.
It is apparent that people are price sensitive. So the marketers should focus on the
competitive price
Majority of the respondents also focused that the supplier should provide after sales
services, and more years of warranty.
The respondents also highlighted that there should be more number of accessible
showrooms so that the consumers can easily buy those consumer goods.
In this way, this chapter was the final body of the research which included summary of the
research, conclusion drawn and the recommendation. In fact, this chapter shows how the study
has accomplished its objectives too.
References:
Engel, James F. Blackwell and et.al (1990) Consumer Behaviour, The Dryden press, Inc,6th
Edn
Fry, Joseph N, (1973) Consumer loyalty to Bank: A longitudinal Study the Graduate school
of Business of the University of Chicago, VOl.46, No.4
George Brown, Brand Loyalty Fact or Fiction? Quoted from James F. Engel and Roger D.
Blackwell, OP.cit
Ghimire Shree Basta, A study on Branding Policy of Consumer Durable Goods
(Unpublished Masters Degree thesis, T.U.)
Ghimire Shree Basta (1979) A study on Branding Policy of Durable Consumer goodsT.U.
Kirtipur
Harper W. Boyd and William F. Massy, Marketing Management: An Analytical problem
solving Approach to Marketing: Tokyo MC Graw Hill, Kogakusha Ltd. International Edition
Jacob Jacoby and Robert W. Chestnut (1982) Brand Loyalty Measurement and
Management, James F. Engle and International Edition
Jagat Timilsina (1999) A Study of Buyer behavior in T.U. Kirtipur
st
xvi
Appendices
xvii
Dear Sir/Madam;
I am doing a research on the topic of A study on the attributes of Brand Loyalty of
Nepalese consumer in TV purchasing Decision in Partial Fulfillment of the Requirements
of the degree of Master of Business Administration (M.B.A.) The questionnaire given below
will be very helpful to collect primary data in respect of my research work. Your sincere and
unbiased response will be highly beneficial and as such will be appreciated. Therefore, I
would like to request for your grateful opinions and correct information's regarding these
questions. The information you provide hereby will be kept confidential and be solely used for
this research purpose.
I hope forward for your kind cooperation.
Questionnaire
Respondents details
1. Name
..
2. Sex
3. Age:
Below 20 Years
[ ]
20-30 Years
[ ]
30-40 Years
[ ]
40-50 Years
[ ]
4. Family Size
Up to 3 members
3-5Members
5-7 Members
7-10 Members
Above 10 Members
5. Education
Upto SLC
Certificate Level
Bachelors Level
Masters Level
[
[
[
[
[
]
]
]
]
]
7. Please rate the following giving the points 1 to 5. 1 being minimum importance and 5 being
more important
Consumer Durable Goods
LG
SONY
SAMSUNG
PHILLIPS
HAIER
[
[
[
[
[
]
]
]
]
]
[
[
[
[
[
]
]
]
]
]
[
[
[
[
[
[
[
[
[
[
[
[
[
[
[
]
]
]
]
]
]
]
]
]
]
]
]
]
]
]
LG
SONY
SAMSUNG
PHILLIPS
HAIER
LG
i. Reasonable price
ii. Good Design
iii. Good Function
SONY
i. Reasonable price
ii. Good Design
iii. Good Function
SAMSUNG
i. Reasonable price
ii. Good Design
iii. Good Function
PHILLIPS
i. Reasonable price
ii. Good Design
[
[
[
[
[
]
]
]
]
]
[
[
]
]
[
[
[
[
]
]
]
]
By Brand
By Inspection
Price
Advertisement
A new brand
None
13. What would you do if your favorite brand is not available in the market?
[
[
[
]
]
]
Very High
High
Moderate
Low
[
[
[
[
]
]
]
]
[
[
]
]
Yes
No
Yes
No
[
[
]
]
LG
SONY
SAMSUNG
PHILLIPS
HAIER
[
[
[
[
[
]
]
]
]
]
Dissatisfaction
Boredom
Innovation
Sales Promotion
None
OF-EF
(OF-EF)^2
(OF-EF)^2/EF
1.28
1.72
2.96
2.31
2.33
-1.33
1.77
0.76
1.75
-0.75
0.56
0.32
5.83
-4.83
23.33
4.00
0.583
0.417
0.17
0.30
3.67
0.33
0.11
0.03
6.67
0.33
0.11
0.02
-2
4.00
0.8
0.00
1.67
1.33
1.77
1.06
8.88
-3.88
15.05
1.70
17
16
1.00
0.06
13
12
1.00
0.08
7.2
1.8
3.24
0.45
6.42
2.58
6.66
1.04
11
11.67
-0.67
0.45
0.04
10
8.75
1.25
1.56
0.18
5.25
-1.25
1.56
0.30
2.92
-1.92
3.69
1.26
1.83
-0.83
0.69
0.38
3.33
0.67
0.45
0.13
2.5
0.5
0.25
0.1
1.5
-0.5
0.25
0.17
0.83
0.17
0.03
0.03
Observed
frequency (OF)
Expected
Frequency (EF)
15.51
OF-EF
(OF-EF)^2
(OF-EF)^2/EF
2.67
-2.67
7.13
2.67
-2
4.00
1.47
1.53
2.34
1.59
1.2
1.8
3.24
2.7
0.67
1.33
1.77
2.64
-4
16.00
2.29
5.25
-1.25
1.56
0.30
3.85
3.15
9.92
2.58
3.15
1.85
3.42
1.09
1.75
0.25
0.06
0.04
19
17.33
1.67
2.79
0.16
13
13
9.53
-0.53
0.28
0.029
7.8
-0.8
0.64
0.082
4.33
-0.33
0.11
0.025
13
7.67
5.33
28.41
3.704
5.75
0.25
0.06
0.011
4.22
-3.22
10.37
2.457
3.45
-1.45
2.10
0.609
1.92
-0.92
0.85
0.441
5.33
-0.33
0.11
0.020
2.25
2.93
-0.93
0.86
0.30
2.4
-1.4
1.96
0.82
1.33
-0.33
0.11
0.08
Observed
frequency (OF)
Expected
Frequency (EF)
28.87
OF-EF
(OF-EF)^2
(OF-EF)^2/EF
5.67
-2.67
7.11
1.25
4.25
-4.25
18.06
4.25
3.12
4.88
23.85
7.65
2.55
1.45
2.10
0.82
1.42
0.58
0.34
0.24
9.33
-3.33
11.11
1.19
-4
16.00
2.29
5.13
3.87
14.95
2.91
4.2
1.8
3.24
0.77
2.33
1.67
2.78
1.19
12
10
0.4
7.5
1.5
2.25
0.3
5.5
-2.5
6.25
1.14
4.5
-1.5
2.25
0.50
2.5
0.5
0.25
0.1
17
13.33
3.67
13.44
1.01
17
10
49
4.9
7.33
-5.33
28.44
3.88
-3
1.5
3.33
-2.33
5.44
1.63
1.67
0.33
0.11
0.07
1.25
-0.25
0.06
0.05
0.92
-0.92
0.84
0.92
0.75
1.25
1.56
2.08
0.42
-0.42
0.17
0.42
Observed
frequency (OF)
Expected
Frequency (EF)
41.46
OF-EF
(OF-EF)^2
(OF-EF)^2/EF
-5
25
3.75
3.25
10.5625
2.82
2.75
2.25
5.0625
1.84
2.25
0.75
0.5625
0.25
1.25
-1.25
1.5625
1.25
16
10.67
5.33
28.44
2.67
-2
0.5
5.87
-3.87
14.95
2.55
4.8
1.2
1.44
0.3
2.67
-0.67
0.44
0.17
20
17.67
2.33
5.44
0.31
15
13.25
1.75
3.0625
0.23
9.72
-4.72
22.25
2.29
7.95
-0.95
0.9025
0.11
4.42
1.58
2.51
0.57
5.33
-2.33
5.44
1.02
-3
2.25
2.93
6.07
36.80
12.55
2.4
-1.4
1.96
0.82
1.33
0.67
0.44
0.33
1.33
-0.33
0.11
0.08
0.73
0.27
0.07
0.10
0.6
0.4
0.16
0.27
0.33
-0.33
0.11
0.33
Observed
frequency (OF)
Expected
Frequency (EF)
38.60