CHAPTER-I

INTRODUCTION
1.1 Background of the Study
With the civilization of human being, there came every possible facility in their lives
by themselves for more and more convenient life. Today we can find every Corner of
this world as very cozy place due to the development & advancement of more and
more improved and latest technologies. Most of such inventions have undoubtedly
made lives faster and easier. Amongst these inventions for people's lives, motorcycle
was also invented in 30 august 1885 AD which was really significant event. Such
then, every possible effort is being employed for the better features and specification
of motorcycle. Now with this constantly being modified and better featured manmade
object, man is really attaining better lives (Reza;2001:3).

In the very contest of automobile, motorcycle has become a necessary part of today's
busy lives. With the rapid growth of life style, Nepalese people are also being very
eager to have private motorbike. Exploring and watching all these demand of the
Nepalese people, its neighboring countries and third countries are more eager to
produce and export motorcycles which are suitable to our country's road and personal
status. So, we can see the very fact is happening here in Nepal.

In our daily lives, we come across various products being made and brought to us
with the help of advertisement distribution channels by various manufacturers. Most
of them appeal to the best of our expectation; some do to some extent only and so do
not at all. On top of that, some products become a history in the long run; whilst some
do create a niche even for a long time period in our life periods i.e. since our
childhood till our aged periods. Because of the fact that the consumer may forget the
taste of the product or switch to another new product, the manufacturers carry out
research and development on a continuous basis and bring out them in a new form.
The interesting thing to be noted is about the products that are made available to us,
come up with a unique label New for instance New Mayos, New Horlics, etc.
at different time periods on a day-to-day frequency. However, amidst the flow of such
products, there is always an important decision to be made is which one to select as
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the right product and on what basis to select. Every companies claim its product to be
the best one with stiff advertisement and other attractive announcement as well.
However, only some of them prove to be the best one among all at the final period of
the consumption. Due to various factors such as time to be involved, money to be
invested, desire of having greater satisfaction and need of acquiring qualitative
services the products provide to us and the costs involved in case of quick
replacement of the product with the next alternate, and so on it has become imperative
for us to go for the selection of the right product with prudent decision. Here comes a
unique feature called Brand to play a great role in helping us to have all such as
mentioned above in todays competitive and complex scenario of marketing.

As we know, production is the prime activity of each and every industry and
successful selling of the product is the ultimate goal. And, marketing is the ultimate
source or means to achieve such goals. However this is not as easy as said as today's
marketing environment is surrounded by various factors and influenced by them with
greater degree of magnitude as well. Some of such factors may include technological
changes, stiff competition, change in the taste of customers, distribution channels,
political changes, globalization, financial crises in both the home and abroad
countries, etc. Amidst such scenario, very few of the companies get success with the
help of proper marketing plans, strategies, and right products and its brand names in
the long runs (Shrestha; 2006: 10-50).

1.1.1 A Brief Introduction of Selected Company

Yamaha Motor Company Limited
Yamaha Motor Co., Ltd. is a Japan-based manufacturing company. The Company
operates in five business segments. The Two-wheel Vehicle segment manufactures
and sells motorcycles and bicycles. The Marine segment manufactures and sells
outboard engines, water vehicles, sailing boats, fishing boats and Japanese-style boats.
The Special Machinery segment provides four-wheel buggies, side-by-side vehicles,
snowmobiles, golf bikes, power generators and general engines. The Industrial
Machinery and Robot segment mainly provides surface motors. The others segment
provides automobile engines. As of December 31, 2011, the Company had 117
subsidiaries and 26 associated companies. Morang Auto Works (MAW) is one of the
oldest motorcycle dealers of Nepal. MAW has also extended its wing in four wheelers
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and heavy earth moving vehicles. Most of the bikes are packed with power and style.
With powerful performance and high quality services, Yamaha motorbikes have
started to increase the perception of motorcycles in Nepal. MAW one of the oldest
companies importing motorcycles started its operations from 1975. It is the authorized
dealer of Yamaha Motorcycles and Spares for Nepal. Within the span of 36 years
Yamaha is the market leader in style and design commanding a share of 30-35%. This
has been achieved because of various marketing initiatives and focus on costumer
friendly approach of the business (www.yamaha moters.com).

Bajaj Auto Limited

"Bajaj Auto (BAL) is a major Indian automobile manufacturer. It is India's largest and
the world's 4th largest two- and three-wheeler maker. It is based in Pune,
Maharashtra, with plants in Akurdi and Chakan (near Pune),Waluj (near Aurangabad)
and Pantnagar in Uttaranchal. Bajaj Auto makes and exports motorscooters,
motorcycles and the auto rickshaw. The Forbes Global 2000 list for the year 2005
ranked Bajaj Auto at 1946. Over the last decade, the company has successfully
changed its image from a scooter manufacturer to a two wheeler manufacturer. Its
product range encompasses Scooterettes, Scooters and Motorcycles. Its real growth in
numbers has come in the last four years after successful introduction of a few models
in the motorcycle segment. The company is headed by Rahul Bajaj who is worth more
than US$1.5 billion" (www.bajajauto.com).

Inspiring confidence, the tagline, has built up confidence, through excitement

engineering, not only to domestic consumers but also internationally. "Established
just nine decades back in 1926 by Jamnalal Bajaj, the company has been vested with
India's largest exporter of two and three wheelers. Bajaj Auto Ltd. sales have
increased by approximately 21 per cent in the year 2009/10, which exceeds Rs 65.4
billion, a record in the history of the company. The gross operating profit stands at Rs.
9.3 billion, again a record. The profits after tax of the BAL are close to Rs. 7.7 billion,
and the pre-tax return on operating capital is at an impressive 80 per cent."
The strength of the company is its quality products, excellence in engineering and
design, and its ability to delight the customers. The Pulsar, introduced in November
2010, is continually dominating the premium segment of the motorcycle market,
helping to maintain the market superiority. Discover DTSi, one more successful bike
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on Indian roads, is in the 'value' segment of the motorcycle market. It incorporates a

high degree of power with fuel efficiency of a 100 cc motorcycle.

BAL is committed to prevention of pollution, continual improvement of environment

performance and compliance with all environmental legislation and regulations. They
always believe in providing the customer 'value for money' and keep a special eye
upon quality, safety, productivity, cost and delivery (www.bajajauto.com).

1.2 Focus of the Study

The study focuses on the consumer buying behavior towards motorcycle. Today's
drastically changing market is covered, handled and managed with the great help of
today's sophisticated marketing management and stunning sales promotion . And this
reality cannot be denied. Every product or service is created for the consumer or
customer to use and it is achieved through proud selling or offering of best product or
service with best advertising and promotional tools.
The practices of marketing and sales promotion are getting increasing importance and
scope in the marketing management. At the same time it is getting vast with the
competitive environment of the same subject, i.e. advertising and sales promotion. So,
fit is as important to built strong and wealthy marketing strategy and policy as
important to understand, win and retain the market for the product or service.
Implementation of such policy and strategy soul in optimum manner, Hence the study
tries to describe the consumer behavior towards motorbike especially Bajaj and
Yamaha.

1.3 Statement of the Problem

People have changed their lifestyle and demand. Today, world is being motor motive
world. Consumers are using different attractive and powerful means of transportation.
Similarly, large organization and trading houses are importing and selling different
brands and models of motorbikes to fulfill desires of customers specially youth.
Amongst them, one of the most and well known brands in two wheelers Bajaj
Motorbike is rapidly growing business in Nepalese market.
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Being distinctly ahead than other, Bajaj and Yamaha companies is providing products
with free services and warranty. On the other hand, many other companies are
presenting latest models of bikes with great feather to hold significant position in the
Nepalese market. Hero Honda, TVS, Suzuki, Yamaha, Honda, etc. are competitive
bikes having huge competition with Bajaj bikes for the existence in the market.
Hence, Nepalese customers are having plenty of options and confusions to make right
decision.
Different brands of bikes in Nepal have been able to gain and retain their targeted
market and hold sufficient share in market and that will be dealing with special
reference to Yamaha and Bajaj Motorbikes. In this context, some problems have been
faced by this coming ages termed as the problem area in this study:

What are the factors influencing buyers behavior in Nepal?

Which attributes are important of brand awareness?

1.4 Objective of the Study

The main objective of the study is to analyze consumer buying behavior towards
motorbikes in Nepal. The specific objectives of the study are; as follows:

To evaluate factors influencing buyers behavior in Nepal.

To see consumer attributes towards brand awareness.

To recommend both the organization on the basis of study findings.

1.5 Significance of the Study

Today, world is globalized and termed as global village where people live, struggle
and survive living. It is a different part of the world of easy access to any place or
town of any country by the help of communication and transportation which has
developed a lot in last few decades. For the easy traveling of people, excess
development had been made in few last years in the transportation means such as
cycle, two wheelers motor, three wheelers motor, steam engine, etc. Today motorbike
is most popular mean of transportation among youth for both short and long distance
traveling. The significance of the study is listed as bellow:

This study helps to find out on buyer behavior towards two wheelers
(motorbikes).
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This study explores various influencing factors of buying behavior.

This study reviews on different brands of motorbike preferred by the consumers.

1.6 Limitation of the Study

This study is done for the partial fulfillment of the requirement for the Master of
Business Study (MBS) Faculty of Management. It is natural that all types of study
have been conducted within certain limitation. A research is a vast study investigatory
the subject matter for solving perceived research problems. So, this study has certain
limitations and constraints and they are as follows.

This study has only focused on consumer buying behavior of selected bikes.
This study is mainly based on primary data.
There are many brands of bike, out of them; the study is done only on two
brands due to the lack of time and resources.

1.7 Organization of the Study

The entire study has been organized in such a way that would help every reader to get
a good picture of the main gist of this study. In order to make the study more
organized and readable, this study has been divided into five chapters as follows.

Chapter- I: Introduction
This chapter covers background of the study, focus of the study statement of problem,
objectives of the study, significance of the study, and limitation of the study.

Chapter -II: Review of Literature

The second chapter focuses on review of literature. It contains the conceptual
framework and review of past research study related with concerning topic of this
study.

Chapter -III: Research Methodology

The third chapter deals with the research methodology to be adopted for the study
consisting research design, sources of data, data gathering procedure, population and
sample, research variables and data processing procedure.
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Chapter -IV: Presentation and Analysis Data

The fourth chapter deals with, presentation, analysis, interpretation and major findings
of primary data collected from questionnaires.

Chapter -V: Summary, Conclusions and Recommendations

The last chapter summarizes the whole study; draw the conclusion and forward
recommendations at the end appendices and bibliography is presented

CHAPTER-II

REVIEW OF LITERATURE
A literature review is a body of text that aims to review the critical points of current
knowledge on a particular topic. Most often associated with science, marketingoriented literature, such as a thesis, the literature review usually precedes a research
proposal, methodology and results section. Its ultimate goal is to bring the reader up
to date with current literature on a topic and forms the basis for another goal, such as
the justification for future research in the area. Under this section, the conceptual
review and the review of previous studies related to the present study has been
presented. This chapter is further divided into:

Conceptual review

Review of related studies

Research Gap

2.1 Conceptual Review

In this section, basic buyer behavior are reviewed ,besides some core concepts like
consumer behavior and buying behavior, modules, process, types and influencing
factors of buying behavior all leading brief description of the concept in focus. In the
modern business world understanding of consumer behavior ,decision making process
brand preference ,factor affecting on buying behavior etc, is the most necessary to
become a successful marketer.

2.1.1 Concept of Consumer Buyer Behavior

Consumer behavior is seen to involve a complicated mental process as well as
physical activity (purchase decision). Consumer behavior is a decision process and
physical activity individuals engage in when evaluating, acquiring, using or disposing
of goods and services.
Consumer Behavior reflects the totality of consumers decisions with respect to the
acquisition, consumption and disposition off goods, services, time and ideas by
(human) decision making units. Buyer Behavior particularly is the study of decision
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making units as they can buy for themselves or others. Thus, buying behavior
particularly involves collective response of buyers for selecting, evaluating, and
deciding and post purchase behavior. Buyer behavior is the study of human response
to services and the marketing of products and services. Buyer behavior researches
continuously investigate a broad range of human responses including human
affective, cognitive and behavioral responses. The buying behavior and purchase
decisions are need to be studied thoroughly in order to understand, predict and
analyze critical market variations of a particular product or service. The field of
consumer behavior is the broad study of individuals, groups or organizations and the
process they use to select secure and dispose of products, services, experiences or
ideas to satisfy needs and the impacts that these processes have on the consumer and
society. Consumer behavior studies are based on the buying behavior of final
consumers-individuals and households who buy goods and services for themselves.
The collective behavior of consumers has a significant influence on quality and level
of standard of living. Buyer Behavior is broadly defined by various scholars and
researchers as: It's the behavior displayed by the consumers during the acquisition,
use and disposition of products services, time and ideas by decision making units. It
is the body of knowledge which studies various aspects of purchase and consumption
of products and services by individuals with various social and psychological
variables at play . The process and activities people engage in when searching for,
selecting, purchasing, using, evaluating and disposing of products and services so as
to satisfy their needs and desires. The activities directly involved in obtaining,
consuming and disposing of products and services, including the decision processes
that precede and follow these actions ( Krishna;2006:50-53).

2.1.2 Consumer Behavior as A Dynamic Process

Consumer behavior involves the understanding that acquisition, use and disposition
can occur over time in a dynamic sequence. In other words the study of consumer
behavior is the study of how individuals make decisions to spend their available
resources (money, time, efforts) on consumption-related items.

The American Marketing Association (AMA) defines consumer behavior as The

dynamic interaction of cognition, behavior and environmental events by which human
beings conduct the exchange aspect of their lives.
Consumer behavior is The study of individuals, groups, or organizations and the
processes they use to select, secure, use and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on the
consumer and society. Behavior occurs either for the individual, or in the context of
a group (e.g., friend's influence what kinds of clothes a person wears) or an
organization (people on the job make decisions as to which services the firm should
use).

Product use is often of great interest to the marketer, because this may influence how
a product is best positioned or how we can encourage the consumption of a product in
market. Consumer behavior involves services and ideas as well as tangible products.
The impact of consumer behavior on society is also relevant. For example, aggressive
marketing of high fat foods, or aggressive marketing of easy credit, may have serious
repercussions for the national health and economy. Services are also marketed in
much the manner as goods and commodities. Still there are wide differ hence between
goods and services based on their characteristics and attributes (Loudon &
Bista;2008:8-9).

2.1.3 Application of Consumer Behavior

The study of consumer behavior deals with basic questions related to buying such as:
what we buy, why we buy and how we buy. The study of consumer behavior makes
us aware of the subtle influences that persuade us to use the product or services of our
choices we do. For understanding consumer behavior, implementation of consumer
behavior theories and verification of applications of such theories is necessary.
Consumer behavior is simple a large subset of larger field of human behavior and an
extended field of marketing attracting researchers and marketers from past few
decades.

Four Main Applications of Consumer Behavior

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The most obvious application of consumer behavior is for deriving marketing

strategy. New products initially adopted by a few consumers and spread gradually to
the rest of the population later. The companies that introduce new products must be
well financed so that they can stay afloat until their products become a commercial
success. It is also important to please initial customers, since they will in turn
influence many subsequent customer's brand choices (Engle;1982: 15).

2.1.4 Consumer Behavior an Emerging Field of Study

In the highly specialized study of business management, business administration
or just management today, marketing management function plays a very critical
role in business activities. This is because this functional area of management earns
the revenue andworks in the close proximity with the public or persons outside the
organisation. Controlling these two attributes to have the desired benefits are the most
difficult part of the management, because none of these two are within the direct
control of the marketers. This does not mean that the other functional areas are not
useful, but they are not directly involved in the activities mentioned above.
Marketing consists of an interaction between buyer and seller for the purpose of
exchanging something valuable to the mutual benefit of both the parties to the
transaction. One cannot appreciate this marketing process by observing only the
seller, knowledge about consumer is a sound basis for marketing strategies and
decisions. Markets are selected on the basis of consumer wants, location,
characteristics and expenditure patterns. To ignore the customer can lead to disaster in
a modern economy.

Consumer behavior has become an integral part of strategic market planning. It is also
the basis of the approach to the concept of Holistic Marketing. The belief that ethics
and corporate social responsibility should also be integral components of every
marketing decision is embodied in a revised marketing concept the societal
marketing concept which calls on marketers to fulfill the needs of their target markets
in ways that improve society as a whole.
Consumer or the Customer play a very critical role as these are the people who
finally buy the goods and services of the organization and the firm is always on the

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move to make them buy so as to earn revenue. It's crucial from both the points of view
as given below:

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From the Customers Point of View

Today, in the highly developed and technologically advanced society, the customers
have a great deal of choices and options (often very close and competing) to decide on
or compare; They have the products of an extreme range of products attributes (the 1st
P - Product), they have a wide range of cost and payment choices (the 2nd P - Price),
they can order them to be supplied to their door step or anywhere else (the 3rd P Place) and finally they are bombarded with more communications from more
channels of information than ever before with the invent of information technology
(the 4th P - Promotion).
From the Marketers Point of View
The purpose of marketing is to sell more stuff to more people more often for more
money in order to make more profit. This is the basic principle of requirement for the
marketers in earlier days where aggressive selling was the primary aim. It cannot be
achieved by force, aggression or plain alluring. Customer today are more informed,
more knowledgeable, more demanding, more discerning and above all there is no
dearth of marketers to buy from. The marketers have to earn them or win them over.
The global marketplace is a study of diversity among consumers, producers,
marketers, retailers, advertising media, cultures, customs and of course the individual
or psychological behavior. However, despite prevailing diversities, there also are
many similarities. Consumer market is highly sensitive and driven by widely
diversified culture in many countries.

The study of consumer behavior is also very important to the marketers because it
enables them to understand and predict buying behavior of consumers in the
marketplace. It is concerned not only with what consumers buy, but also with why
they buy it, when, where, how they buy it, how often they buy it and also how they
enjoy the services. Consumer research is the methodology used to study consumer
behavior; it takes place at every phase of the buying process: before the purchase,
during the purchase and after the purchase. Researches shows that two different
buyers buying the same product may have done it for different reasons, paid different
prices, used in different ways, have different emotional attachments towards the
things and so on. The market strategies are reframed to achieve organizational
objectives depending upon knowing, serving and influencing consumers. This
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suggests that the knowledge and information about consumers is critical for
developing successful marketing strategies. The relationship between consumers and
marketers, consumer behavior and marketing strategy is instable to attain
organizational objectives.

Consumer behavior is interdisciplinary approach based on concepts and theories about

people that have been developed by behavioral scientists, philosophers and
researchers in diverse disciplines such as psychology, sociology, social psychology,
cultural anthropology and economics. The study of consumer behavior also helps
management to understand consumer's needs so as to recognize the potential for the
trend of development of change in consumer requirements and new technology and
also to articulate the new thing in terms of the consumer's needs so that it will be
universally accepted in the market well. The following are few examples of the
benefits of the study of consumer behavior derived by the different categories of
people a marketing manager should know about consumer behavior as it will help him
to design better marketing plans to get those plans accepted within the company, in
insurance company the marketing department would like to know the policyholders
need and researchers want to analyse the consumers decision process and ingredients
of customer satisfaction ( Gupta; 2005: 87-120).

2.1.5 Different Views on Customer

Marketing scientists had noted that consumer does not always act or react as
suggested by economic theory. Therefore customer is further analyzed from different
angle. Sometime consumers buy because of emotions involved in a purchase decision
or several other reasons.

Economic and Passive Customer: Economic view explains the consumer as an

economic man who buys rationally to maximize the utility (benefits) derived from
a product or service. The passive view explains the consumer basically submissive
to the self-serving interest and promotional efforts of marketers.

Cognitive versus Emotional Customer: According to cognitive view consumer

is defined as a thinker and problem solver. Emotional man is a reality of each of
us because of deeply rooted feeling and emotions.

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Potential and Realized Customer: There are three possibilities to identify the
state of consumer; non consumers, potential consumers and realized consumers. A
non consumer is an individual who has no need for a given product/service and is
not likely to have need in the foreseeable future. An individual not currently
purchasing may influenced to buy at some future point of time is referred to as a
potential consumer. Realized consumers generally conform to our earlier
definition of purchaser or shopper, since they are engaged in buying.

Personal Consumer Versus Organizational Consumer: The term consumer is

often used to describe two different kinds of consuming entities; the personal
consumer and the organizational consumer. The personal consumer buys goods
and services for his own, for the use of the household, for just one member or as a
gift for a friend. In these context the goods are bought or finally use by individuals
who are referred to as end users or ultimate consumers. Whereas
organizational consumers buy for altering, modifying or reselling the
products/services.

Final Consumer: Any person engaged in the consumption process is a consumer

but these buyers can be identified by the type of market to which they belong.
Two major types of market to which they belong are final consumer and industrial
buyer. The final consumer market consists of individuals who buy for personal
consumption or to meet the collective needs of family or household unit.

Rural Consumer: The rural market is one such segment that caught the fancy of
certain Indian marketers in a big war. Marketer considers catering to the rural
market as an opportunity, an antidote to the slow growth they faced in urban India.
Rural consumers as a segment have several distinctive characteristics and the
values aspirations and needs of this vast heterogeneous culture of rural consumers
are quite different from the urban consumers.

Women as a Consumer and Decision Maker: Gender is considered as an

important characteristic for consumer behavior studies by marketers from past
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several years. They treat women as an exception rather than as normal average is a
retrograde gap. Large number of experts felt that it is a fact of life that women
consumer exhibit special traits and behavior(Hanson and Lott; 1995: 5-7).

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2.1.6 Buying Roles

For making strategic decisions the marketers have to identify the buyers who make the
final buying decisions. It is truly a big task before the marketers to identify the target
buyers of the particular service.

Influencer: Several people may be involved in a particular purchase decision, but all
of them are not consumers. A person who has influence, whose views or advice is
given wheightage while taking the final decision.

Gatekeepers: Family members who control the flow of information about a product
or service into the family.

Initiator: The person who is the first to suggest or think of the idea of purchasing a
product or service.

Decider: The person who finally takes the decisions of whether to buy, what to buy,
how to buy and from where to buy.

Buyer: The person who actually buy the product/service after making payments.

User: The person who actually uses or consumes the product or service (Gautam
$Jain, 2008,17).

2.1.7 Concepts and Dimensions of Consumer Behavior

Consumer behavior is an interdisciplinary science and relatively emerged as a new field
of study in the mid to late 1060s. This new discipline is borrowed heavily from concepts
developed in other scientific disciplines such as applied psychology, social psychology,
cultural anthropology, economics and econometrics. Therefore, it is crucial to discuss
various dimensions of consumer behavior in the context of Indian consumer.

(a) Consumer Needs and Motivation: Consumer needs is the basis of all modern
marketing. The key to a company's survival, profitability and growth in a highly
competitive environment is its ability to identify and satisfy unfulfilled consumer needs
Marketers do not create needs though in some instances they may make consumer more
keenly aware of unfelt need. Motivation can be described as the driving force within
individuals that impels them to action.

The driving force is produced by a state of tension exists as the result of an unfilled need.
Motivation is a need-induced tension which exerts a push on the individual to engage in
behavior that he expects will gratify needs and thus reduce tension. Individuals strive both
consciously and subconsciously to reduce this tension through behavior that they

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anticipate will fulfill their needs. Consumer motivation is dynamic in nature because their
wants are frequently changing.

(b) Consumer Psychographics: Marketing practitioner and consumer researchers refer

Psychographics as lifestyle analysis or AIO (activity, interest and opinions) research.
Consumer specific psychographics researches are related to consumer personality, buying
motives, interests, attitudes, beliefs and values. Services specific psychographics
researches are related to product attributes such as consumer responses about products,
brands or a specific consumption situation.

Consumer Perception: Perception is defined as the process by which an individual

selects, organizes and interprets stimuli into a meaningful and coherent manner. Stimuli
are sensory inputs include services, packages, brand names, advertisements and
commercials. Sensory receptors are the human organs that receive sensory inputs.
Sensation is the immediate and direct response of the sensory organs to simple stimuli.

Learning and Consumer Involvement: Consumer learning is the process of acquiring

the knowledge related to purchase and consumption information.

Consumer Attitudes: Attitudes are expression of inner feelings that reflects whether a
person is favorably or unfavorably predisposed to some object, person or event. As an
outcome of psychological process attitudes are not directly observable but must be
inferred from what people say or do.

(c) Demographic Factors: Demographics describe a population in terms of its size,

distribution and structure. Demographics influence buying behavior both directly and
indirectly by affecting other attributes of individuals such as their personal values and
decision styles. There are contradictory conclusions about the effect of age, income and
gender for a particular service.

Age, age-groups, education level, income, occupation etc. serves as various dimensions of
demographics. In India additional factors such as religion, social denominations, caste,
age, family background, regional disparities in states, linguistic difference, regional
perception of class factor and the degree of impact of these factors in affecting the social
status, all play crucial role in determining the social status of an individual.

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(d) Economic Factors: Wealth, home ownership, number of earning members in a

family, household income, expenditure, and rate of interest, inflation, economic
conditions and investment pattern are some of the economic factors have strong influence
on consumer purchase decision.

(e) Communication and Consumer Behavior: Communication is the transmission of

messages from a sender to a receiver by means of signals of some sort sent through a
channel. There are four basic components of all communications: a source, a destination,
a medium and a message. There are two types of communication to which a consumer is
exposed interpersonal communication and impersonal (or mass) communication.

(f) Socio-Cultural Factors: Consumer in a Group and Consumer Reference Groups:

A group may be defined as two or more people who interact to accomplish similar goals.
Consumer relevant groups are family, friends, formal social groups, shopping groups,
consumer action groups, work groups, references groups etc. Four basic functions
provided by the family are relevant to consumer behavior these include; economic wellbeing, emotional-support, suitable family lifestyles and family-member socialization.
Sociologists and researchers have strongly favoured the concept of Family Life Cycle
(FLC) - a way to classify family units into significant groups. FLC is a strategic tool for
marketers to segment families in terms of a series of stages spanning the life course of a
family unit. Traditional family life cycle stages are bachelorhood, honeymooners,
parenthood, post parenthood and dissolution.

Consumer and Their Social Classes: Social class is defined as the division of members
of a society into a hierarchy of distinct status classes so that members of each class have
relatively the same status and members of all other classes have either more or less status.
Social class is measured in terms of social status of its members and comparison of
members of each social class with other social classes. Some of the variables of the social
class are occupation, income, educational level and property ownership etc.

Culture and Consumer Behavior: Culture is a sum total of learned beliefs, values and
customs that serves to direct the consumer behavior of a particular society. Subculture can
be thought as a distinct cultural group that exists as an identifiable segment within a
larger and more complex society.

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(g) Consumer and Consumerism: The word consumerism has many expressions
depending on who is using the term government, business, consumer groups,
academicians and researchers. Consumerism is defined as a social movement of
citizens and government to enhance the rights and powers of buyers in relation to
seller(kottler and janj; 2005:19-23).

2.1.8 Buying Behavior Models

The influences of social science have prompted marketing experts to propound certain
buying behavior models for explaining buyer behavior. These models are divided in
two broad categories microeconomic and macroeconomic models. The classical
microeconomic approach focus on type of purchase and quantity of these purchases
made by the consumer. Macroeconomic approach considers the monetary value of
goods and resources and how they will change over the period the period of time.
Several models have been put forward for explaining buyer behavior. All the social
sciences like Economics, Psychology, Sociology and Anthropology have influenced
the buyer behavior studies. Some important consumer behavior models are discussed
below to nurture the ideas of social sciences

The Economic Model: According to economic model buyer is a rational man and
his buying decisions are fully governed by the concept of utility. If the buyer has
purchasing power of choosing a set of services to met his need. He will allocate
this amount over the set of services in a very rational manner with the intention of
maximizing the utility or benefits. People are limited by their skills, habits,
reflexes, knowledge etc. Buyers operate in an imperfect world in which they do
not maximize their decisions in terms of economic considerations such as pricequantity relationships, marginal utility or indifference curve. The buyer usually
unwilling to engage in extensive decision-making activities and satisfied with
utility or benefits of a product.

The Learning Model: This model takes its cue from the Pavlovian stimulus
model- response theory buyer behavior can be influenced by manipulating the
derives, stimuli and response of the buyer. The model rests on mans ability of
learning, forgetting and discriminating.

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Stimulus response theory on learning model has its beginning with Russian
psychologists Ivan Pavlov. it is based on experiments made by Pavlov on feeding of a
dog was preceded by the sound of a bell and found that dogs behavior is conditioned,
it is related to behavior producing stimulus and behavior response. The process of
learning based on four fundamental factors drives, cues, responses and reinforcement.

The Psycho-Analytical model: The psycho-analytical model drawn mainly from

Freudian psychology. Sigmund Freud added a new dimension to consumer
behavior theories by introducing psychological elements of the consumer into
their decision making. This model considers individual buyer as a complex set of
deep- seated motives that derive him towards certain buying decisions. The buyer
has his hidden fears, suppressed desires and totally subjective longings. His
buying actions can be influenced by appealing these desires and longings. The
model describes most superior and innovative implications to the marketer for
designing a service message that suits the psychological needs of the consumer.
The Psycho-Analytical theory helps the marketers to understand individuals real
motive for purchasing a particular service or brand. It has caused marketers to
realize that they must provide consumers socially acceptable rationalization for
their purchase.

The Sociological/anthropological Model: According to the sociological model

the individual buyer is influenced by society, intimate groups as well as social
classes. Buyers buying decisions are not totally governed by utility; consumer has
a desire to follow and fit it with his immediate environment.

Social-Psychological Model: This theory is proposed by Veblan in the context of

behavioral aspects related to the economic and personality variables. Consumer
behavior of any person can be understood by society and place of living. These
social influences exert pressure and mould individual behavior. Veblan saw man
primarily as a social animal confirming to the general forms and norms of the
culture surrounding him. The subculture, norms, reference groups, membership,
social class, family and surroundings also mould his behavior. The challenge to

21

marketers is to determine which of these social levels are most important in

influencing the demand for his service.

The Nicosia Model: Nicosia model and Howard and Sheth model belong to a
category called systems model where human being is analysed as a system with
stimuli as the input and behavior as the output of the system. Franscesco Nicosia
an expert in the buyer behavior and motivation proposed his model of buying
behavior in 1966. The model tries to establish a relationship between a firm and
its buyers. The message from the firm first influences the predisposition of the
buyer towards the product and services. Depending on the situation he develops a
certain attitude towards the product and services. It may lead to a search or
evaluation of the service. If these steps have a positive impact on a buyer it may
result in a decision to buy. This is the sum and substance of the activity
explanations in the Nicosia model. The Nicosia model is divided into four major
fields:

Howard and Sheth Model: This model is proposed by John Howard and Jagdish
Sheth in 1969 in their publication entitled The theory of Buyer Behavior. This
model is a major revision of an earlier systematic effort to develop a
comprehensive theory of consumer decision making. The model consider human
being as a system with stimuli as input and outputs beginning with attention to a
given stimuli and ending with purchase. In between the inputs and outputs there
are variables affecting perception and learning. These variables are considered
hypothetical since they cannot be directly measured at the time of occurrence. It
distinguishes three level of decision making:

Extensive problem solving

Limited problem solving

Routinised response behavior

Engle-Blackwell-Miniard Model: This model was originally developed in 1968

by Engle, Kollat and Blackwell followed by number of researches on this model.
Recently Miniard has contributed this model in conjunction with Engle and
Blackwell. It stands as one of the most popular representation of buyer behavior.
22

The model is summarized in four sections Decision-process stages, Information

output, Information processing and variables influencing the decision process.

Sheth Family Decision Making Model: Three comprehensive models presented

were far all focusing on individual decision making model. An alternative
perspective considered the family as an appropriate decision making unit. This
model shows separate psychological

systems

representing the

distinct

predispositions of the father, mother and other family members. The separate
predispositions lead into family buying decisions which may be either individually
or jointly determined. The model lists seven factors that influences purchase
decision are autonomous or joint: social class, lifestyle, role orientation, family
life cycle stage, perceived risk, service importance and time pressure. The model
suggests that joint decision making tends to prevail in middle class families,
newly married and close relation. It is suggested that joint decision making is
more prevalent in situations of high perceived risk and uncertainty. The joint
purchase decision is also considered important when there is ample time to make a
decision.

Bettmans Model: Bettman model of buyer choice portrays that buyer has limited
capacity for processing information. When the product of choice is available the
consumer rarely analyse other alternatives available in the market. The Bettmans
model suggest that the buyer employs simple decision making. Bettman model
consists of a series of interrelated flowcharts that depict various dimensions of the
buyer choice process. The Bettman model illustrates its seven basic components:
Processing capacity ,Motivation, .Attention and perceptual encoding, Information
acquisition and evaluation, Memory, Decision process and Consumption and
learning process.

Sheth Newman Gross Model of Consumption Values: This model explain the
reasons of selecting a product by the consumer. The model concentrates on
assessing consumption-relevant values that explain why consumers buy a product
or not. This model describes three central propositions. Consumer choices are a
function of small number of consumption values, Specific consumption value

23

make differential contribution in any given choice situation and Different

consumption values are independent. The model describes five consumption
values that are core of this model. Functional value of a consumer choice is the
perceived functional utilitarian or physical performance utility received from the
choices attributes. This is associated with economic utility theory. Social value of
a choice is the perceived utility acquired because of the association between one
or more specific social groups and a consumers choice. A consumer choice gains
social value by being linked with positively or negatively stereotyped
demographic, socioeconomic and cultural ethnic groups.

Andreasan Model

This model develops a general model of buyers choice

behavior based on several conceptions about attitude formation and change drawn
from social psychology. According to Alan R. Andreasan the attitude changes are
exposure of various kinds of information. These exposures may be voluntary or
involuntary. The entire process comprises of four stages namely input stimuli,
perception and filtration, disposition changes and various feasible outcomes.

There are two principle strategies adopted by marketers to attract favorable purchase
decisions. Market segmentation strategy attempts to fit in existing attitude and
behavior in terms of service design, distribution etc., while service differentiation
strategy attempts to change attitude and behavior to make the consumer accept a
particular service. Attitude formation and change are central concept of this model.

Consumer Decision Making Models in Services

This model considers five important gaps need to be identified while finalizing
marketing strategies and analyzing consumer behavior. The model considers buying
as a continuous circle and for achieving customer satisfaction it is mandatory to
analyze these gaps.

Customer Gap: difference between expectations and perceptions

Provider Gap: not knowing what policyholders expect
Provider Gap: not having the right service designs and standards
Provider Gap: not delivering to service standards

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Provider Gap: not matching performance to promises (Rojer and Mukherjee;2007:

39-42) .

2.1.9 Consumer Buying Process

The Customer Buying Process (also called a Buying Decision Process) describes the
process your customer goes through before they buy your product. Understanding
your customers buying process is not only very important for your Salespeople, it
will also enable you to align your sales strategy accordingly.
The process has been interpreted by many scholars over the years; however, the five
stages framework remains a good way to evaluate the customers buying process.
John Dewey first introduced the following five stages.

Figure 2.1
Consumer Buying Process

(Source www.buying process figure.com)

Problem/Need Recognition

This is often identified as the first and most important step in the Customers Decision
Process. A purchase cannot take place without the recognition of the need. The need

25

may have been triggered by internal stimuli (such as hunger or thirst) or external
stimuli (such as advertising or word of mouth).

Information Search

Having recognized a problem or need, the next step a customer may take is the
Information Search stage, in order to find out what they feel is the best solution. This
is the buyers effort to search internal and external business environments, in order to
identify and evaluate information sources related to the central buying decision. Your
customer may rely on print, visual, online media or word of mouth for obtaining
information. : For solving this problem collect information. This information can be
internal (experiences) and external (family, exhibits, etc.)

Evaluation of Alternatives

As you might expect, consumers will evaluate different products or brands at this
stage on the basis of alternative product attributes those which have the ability to
deliver the benefits the customer is seeking. A factor that heavily influences this stage
is the customers attitude. Involvement is another factor that influences the evaluation
process. For example, if the customers attitude is positive and involvement is high,
then they will evaluate a number of companies or brands; but if it is low, only one
company or brand will be evaluated.

Purchase Decision

The penultimate stage is where the purchase takes place. Philip Kotler (2009) states
that the final purchase decision may be disrupted by two factors: negative feedback
from other customers and the level of motivation to accept the feedback. For example,
having gone through the previous three stages, a customer chooses to buy a new
telescope. However, because his very good friend, a keen astronomer, gives him
negative feedback, he will then be bound to change his preference. Furthermore, the
decision may be disrupted due to unforeseen situations such as a sudden job loss or
relocation.

Post-Purchase Behavior

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In brief, customers will compare products with their previous expectations and will be
either satisfied or dissatisfied. Therefore, these stages are critical in retaining
customers. This can greatly affect the decision process for similar purchases from the
same company in the future, having a knock-on effect at the Information Search stage
and Evaluation of Alternatives stage. If your customer is satisfied, this will result in
brand loyalty, and the Information Search and Evaluation of Alternative stages will
often be fast-tracked or skipped altogether.

On the basis of being either satisfied or dissatisfied, it is common for customers to

distribute their positive or negative feedback about the product. This may be through
reviews on website, social media networks or word of mouth. Companies should be
very careful to create positive post-purchase communication, in order to engage
customers and make the process as efficient as possible (Drakopoulos,2008,303-315).

2.1.10 Types of Consumer Buying Behavior

Wants are unlimited and the resources to satisfy these wants are limited. So the
consumers think rationally before buying any product. Buying a toothpaste is totally
different from buying a luxury car. The more expensive the good is the more
information is required by the consumer. There are four types of consumer buying
behavior on the basis of buyer involvement while purchasing any product.
Table 2.1
Types of Consumer Behavior
High Involvement
Significant

Low Involvement

differences Complex buying behavior Variety

between brands

(motor cycle )

behavior

(washing detergent)

Few differences between Dissonance

brands

seeking

buying Habitual

behavior (floor tiles)

buying

behavior

(toothpaste)

(Source Kar M; 2010:46-48)

High Involvement
The term means when the consumer is highly involved while buying a product.
Generally this situation happens in case of expensive or luxuries goods. Like while
buying a diamond necklace a consumer is highly involved.

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Low Involvement
This term means when the consumer is not highly involved while buying a product. It
happens in case of low price goods. Like while buying toothpaste a consumer is not
highly involved.

Complex buying behavior:- when the consumer is highly involved in the buying
and there is significant differences between brands then it is called complex
buying behavior. So in this case the consumer must collect proper information
about the product features and the marketer must provide detailed information
regarding the product attributes. For e.g. Consumer while buying a motorcycle
is highly involved in the purchase and has the knowledge about significant
differences between brands.

Variety seeking behavior: in this case consumer involvement is low while

buying the product but there are significant differences between brands.
Consumers generally buy different products not due to dissatisfaction from the
earlier product but due to seek variety. Like every time they buy different
washing detergent just for variety. So it is the duty of the marketer to encourage
the consumer to buy the product by offering them discounts, free samples and
by advertising the product a lot.

Dissonance buying behavior: here consumer is highly involved in the purchase

but there are few differences between brands. Like consumer while buying a
floor tiles buy them quickly as there are few differences between brands.

Habitual buying behavior:-in this case there is low involvement of the consumer
and there are few differences between brands. The consumer buys the product
quickly. For e.g. Toothpaste (Kar ; 2010:46).

2.1.11 The Factors Influencing Consumer Behavior

Today, lets focus on the factors influencing consumer behavior: what are they? How
do they work? What is their level of importance to the consumer and how he reacts to
it? There are 4 main types of factors influencing consumer behavior: cultural factors,
social factors, personal factors and psychological factors.

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Figure 2.1.2
Influencing Factors of Buying behaviour

(Source www. influence factor picture.com)

I. Cultural Factors
Cultural factors are coming from the different components related to culture or
cultural environment from which the consumer belongs.

Culture and Societal Environment

Culture is crucial when it comes to understanding the needs and behaviors of an
individual. Throughout his existence, an individual will be influenced by his family,
his friends, his cultural environment or society that will teach him values,
preferences as well as common behaviors to their own culture. For a brand, it is
important to understand and take into account the cultural factors inherent to each
market or to each situation in order to adapt its product and its marketing strategy. As
these will play a role in the perception, habits, behavior or expectations of consumers.
For example, in the West, it is common to invite colleagues or friends at home for a
drink or dinner. In Japan, on the contrary, invite someone home does not usually fit
into the local customs. It is preferable to do that this kind of outing with friends or
colleagues in restaurant. A significant specificity to take into account for the brands in
markets such as savory snacking or sodas and alcoholic beverages. Usage and
29

consumption moments are not the same in all regions of the world. While if a
Japanese offer you a gift, the courtesy is to offer him an equivalent gift in return.
McDonalds is a brilliant example of adaptation to the specificities of each culture and
each market. Well aware of the importance to have an offer with specific products to
meet the needs and tastes of consumers from different cultures, the fast-food giant has
for example: a McBaguette in France (with french baguette and Dijon mustard), a
Chicken Maharaja Mac and a Masala Grill Chicken in India (with Indian spices) as
well as a Mega Teriyaki Burger (with teriyaki sauce) or Gurakoro (with macaroni
gratin and croquettes) in Japan.sWhile all the ingredients used by McDonalds in
Arabic and Muslim countries are certified halal. The fast food chain not offering, of
course, any product with bacon or pork.

Sub-cultures
A society is composed of several sub-cultures in which people can identify.
Subcultures are groups of people who share the same values based on a common
experience or a similar lifestyle in general. Subcultures are the nationalities, religions,
ethnic groups, age groups, gender of the individual, etc.
The subcultures are often considered by the brands for the segmentation of a market
in order to adapt a product or a communication strategy to the values or the specific
needs of this segment. For example in recent years, the segment of ethnic cosmetics
has greatly expanded. These are products more suited to non-Caucasian populations
and to types of skin pigmentation for African, Arab or Indian populations for
example.
Its a real brand positioning with a well-defined target in a sector that only offered
makeup products to a Caucasian target until now (with the exception of niche brands)
and was then receiving critics from consumers of different origin.
Brands often communicate in different ways; sometimes even create specific products
(sometimes without significant intrinsic difference) for the same type of product in
order to specifically target an age group, a gender or a specific sub-culture.
Consumers are usually more receptive to products and marketing strategies that
specifically target them.
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Social Classes
Social classes are defined as groups more or less homogenous and ranked against
each other according to a form of social hierarchy. Even if its very large groups, we
usually find similar values, lifestyles, interests and behaviors in individuals belonging
to the same social class.
We often assume three general categories among social classes: lower class, middle
class and upper class.
People from different social classes tend to have different desires and consumption
patterns. Disparities resulting from the difference in their purchasing power, but not
only. According to some researchers, behavior and buying habits would also be a way
of identification and belonging to its social class.
Beyond a common foundation to the whole population and taking into account that
many counterexample naturally exist, they usually do not always buy the same
products, do not choose the same kind of vacation, do not always watch the same TV
shows, do not always read the same magazines, do not have the same hobbies and do
not always go in the same types of retailers and stores. For example, consumers from
the middle class and upper class generally consume more balanced and healthy food
products than those from the lower class.
They dont go in the same stores either. If some retailers are, of course, patronized by
everyone, some are more specifically targeted to upper classes such as The Fresh
Market, Whole Foods Market, Barneys New York or Nordstrom. While others, such
as discount supermarkets, attract more consumers from the lower class. Some studies
have also suggested that the social perception of a brand or a retailer is playing a role
in the behavior and purchasing decisions of consumers.
In addition, the consumer buying behavior may also change according to social class.
A consumer from the lower class will be more focused on price. While a shopper
from the upper class will be more attracted to elements such as quality, innovation,
features, or even the social benefit that he can obtain from the product.

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Cultural Trends
Cultural trends or Bandwagon effect are defined as trends widely followed by
people and which are amplified by their mere popularity and by conformity or
compliance with social pressure. The more people follow a trend, the more others will
want to follow it. They affect behavior and shopping habits of consumers and may be
related to the release of new products or become a source of innovation for brands. By
social pressure, desire to conformity or belonging to a group, desire to follow fashion
trends or simply due to the high visibility provided by media, consumers will be
influenced, consciously or unconsciously, by these trends. For example, Face books
has become a cultural trend. The social network has widely grew to the point of
becoming a must have, especially among young people.
It is the same with the growth of the tablet market. Tablets such as IPod or Galaxy
Tab have become a global cultural trend leading many consumers to buy one. Even if
they had never specially felt the need before. For a brand, create a new cultural trend
from scratch is not easy. Apple did it with the tablets with its I Pad. But this is an
exception. However, brands must remain attentive to the new trends and bandwagon
effects. Whether to accompany it (create a page on Facebook) or to take part in the
newly created market (create its own tablet).

II. Social Factors

Social factors are among the factors influencing consumer behavior significantly.
They fall into three categories: reference groups, family and social roles and status.
Reference Groups and Membership Groups
The membership groups of an individual are social groups to which he belongs
and which will influence him. The membership groups are usually related to its social
origin, age, place of residence, work, hobbies, leisure, etc..The influence level may
vary depending on individuals and groups. But is generally observed common
consumption trends among the members of a same group. The understanding of the
specific features (mindset, values, lifestyle, etc..) of each group allows brands to
better target their advertising message.More generally, reference groups are defined as
those that provide to the individual some points of comparison more or less direct
about his behavior, lifestyle, desires or consumer habits. They influence the image
32

that the individual has of himself as well as his behavior. Whether it is a membership
group or a non-membership group. Because the individual can also be influenced by a
group to which he doesnt belong yet but wishes to be part of. This is called an
aspiration group. This group will have a direct influence on the consumer who,
wishing to belong to this group and look like its members, will try to buy the same
products.
For example, even if he doesnt need it yet, a surfing beginner may want to buy
advanced brands or products used by experienced surfers (aspiration group) in order
to get closer to this group. While a teen may want the shoe model or Smartphone used
by the group of popular guys from his high school (aspiration group) in order to be
accepted by this group. Some brands have understood this very well and
communicate, implicitly or not, on the social benefit provided by their products.
Within a reference group that influences the consumer buying behavior, several roles
have been identified:

The Initiator: the person who suggests buying a product or service

The Influencer: the person whose point of view or advice will influence the buying
decision. It may be a person outside the group (singer, athlete, actor, etc..) but on
which group members rely on.
The Decision-Maker: the person who will choose which product to buy. In general,
its the consumer but in some cases it may be another person. For example, the
leader of a soccer supporters group (membership group) that will define, for the
whole group, which supporters scarf buy and bear during the next game.
The Buyer: the person who will buy the product. Generally, this will be the final
consumer.
Many brands look to target opinion leaders (initiator or influencer) to spread the use
and purchase of their product in a social group. Either through an internal person of
the group when it comes to a small social group. Or through a sponsorship or a
partnership with a reference leader (celebrity, actor, musician, athlete, etc) for larger
groups.
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Family
The family is maybe the most influencing factor for an individual. It forms an
environment of socialization in which an individual will evolve, shape his personality,
and acquire values. But also develop attitudes and opinions on various subjects such
as politics, society, social relations or himself and his desires. But also on his
consumer habits, his perception of brands and the products he buys. We all kept, for
many of us and for some products and brands, the same buying habits and
consumption patterns that the ones we had known in our family.

Perceptions and family habits generally have a strong influence on the consumer
buying behavior. People will tend to keep the same as those acquired with their
families. For example, if you have never drunk Coke during your childhood and your
parents have described it as a product full of sugar and not good for health. There is
far less chance that you are going to buy it when you will grow up that someone who
drinks Coke since childhood.

For brands

especially for Fast-Moving Consumer Goods (FMCG) or Consumer

Packaged Goods (CPG) successfully integrate the family is both a real challenge
and an opportunity to develop a strong consumer loyalty among all the family
members. Thats why its important for brands to be seen as a family brand in order to
become a consumer habit for parents and children when they will become adults.

Social Roles and Status

The position of an individual within his family, his work, his country club, his group
of friends, etc. All this can be defined in terms of role and social status. A social role
is a set of attitudes and activities that an individual is supposed to have and do
according to his profession and his position at work, his position in the family, his
gender, etc and expectations of the people around him.
Social status meanwhile reflects the rank and the importance of this role in society or
in social groups. Some are more valued than others. The social role and status
profoundly influences the consumer behavior and his purchasing decisions. Especially
for all the visible products from other people. For example, a consumer may buy a
Ferrari or a Porsche for the quality of the car but also for the external signs of social
34

success that this kind of cars represents. Moreover, it is likely that a CEO driving a
small car like a Ford Fiesta or a Volkswagen Golf would be taken less seriously by its
customers and business partners than if he is driving a germane luxury car.
And this kind of behaviors and influences can be found at every level and for every
role and social status. Again, many brands have understood it by creating an image
associated with their products reflecting an important social role or status.

III. Personal Factors

Decisions and buying behavior are obviously also influenced by the characteristics of
each consumer.
Age and Way of Life
A consumer does not buy the same products or services at 20 or 70 years. His
lifestyle, values, environment, activities, hobbies and consumer habits evolve
throughout his life. For example, during his life, a consumer could change his diet
from unhealthy products (fast food, ready meals, etc) to a healthier diet, during midlife with family before needing to follow a little later a low cholesterol diet to avoid
health problems.

The factors influencing the buying decision process may also change. For example,
the social value of a brand generally plays a more important role in the decision for
a consumer at 25 than at 65 years. The family life cycle of the individual will also
have an influence on his values, lifestyles and buying behavior depending whether
hes single, in a relationship, in a relationship with kids, etc. As well as the region of
the country and the kind of city where he lives (large city, small town, countryside,
etc).

For a brand or a retailer, it may be interesting to identify, understand, measure and

analyze what are the criteria and personal factors that influence the shopping behavior
of their customers in order to adapt. For example, it is more than possible that
consumers living in New York do not have the same behavior and purchasing habits
than the ones in Nebraska. For a retailer, have a deep understanding and adapt to these
differences will be a real asset to increase sales.

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Purchasing Power and Revenue

The purchasing power of an individual will have, of course, a decisive influence on
his behavior and purchasing decisions based on his income and his capital. This
obviously affects what he can afford, his perspective on money and the level of
importance of price in his purchasing decisions. But it also plays a role in the kind of
retailers where he goes or the kind of brands he buys. As for social status, some
consumers may also look for the social value of products they buy in order to show
external indications of their incomes and their level of purchasing power.

Lifestyle
The lifestyle of an individual includes all of its activities, interests, values and
opinions. The lifestyle of a consumer will influence on his behavior and purchasing
decisions. For example, a consumer with a healthy and balanced lifestyle will prefer
to eat organic products and go to specific grocery stores, will do some jogging
regularly (and therefore will buy shoes, clothes and specific products), etc.

Personality and Self-Concept

Personality is the set of traits and specific characteristics of each individual. It is the
product of the interaction of psychological and physiological characteristics of the
individual and results in constant behaviors. It materializes into some traits such as
confidence, sociability, autonomy, charisma, ambition, openness to others, shyness,
curiosity, adaptability, etc.
While the self-concept is the image that the individual has or would like to have of
him and he conveys to his entourage. These two concepts greatly influence the
individual in his choices and his way of being in everyday life. And therefore also his
shopping behavior and purchasing habits as consumer. In order to attract more
customers, many brands are trying to develop an image and a personality that conveys
the traits and values - real or desired of consumers they are targeting.
For example, since its launch, Apple cultivates an image of innovation, creativity,
boldness and singularity which is able to attract consumers who identify to these
values and who feel valued in their self concept by buying a product from Apple.
Because consumers do not just buy products based on their needs or for their intrinsic
36

features but they are also looking for products that are consistent and reinforce the
image they have of themselves or they would like to have.
The more a product or brand can convey a positive and favorable self-image to the
consumer, the more it will be appreciated and regularly purchased.

IV. Psychological Factors

Among the factors influencing consumer behavior, psychological factors can be
divided into 4 categories: motivation, perception, learning as well as beliefs and
attitudes.
Motivation
Motivation is what will drive consumers to develop a purchasing behavior. It is the
expression of a need is which became pressing enough to lead the consumer to want
to satisfy it. It is usually working at a subconscious level and is often difficult to
measure. Motivation is directly related to the need and is expressed in the same type
of classification as defined in the stages of consumer buying decision process.
To increase sales and encourage consumers to purchase, brands should try to create,
make conscious or reinforce a need in the consumers mind so that he develops a
purchase motivation. He will be much more interested in considering and buy their
products. They must also, according to research, the type of product they sell and the
consumers they target, pick out the motivation and the need to which their product
respond in order to make them appear as the solution to the consumers need.

Perception
Perception is the process through which an individual selects, organizes and interprets
the information he receives in order to do something that makes sense. The perception
of a situation at a given time may decide if and how the person will act.
Depending to his experiences, beliefs and personal characteristics, an individual will
have a different perception from another.

37

Each person faces every day tens of thousands of sensory stimuli (visual, auditory,
kinesthetic, olfactory and gustatory). It would be impossible for the brain to process
all consciously. That is why it focuses only on some of them.
The perception mechanism of an individual is organized around three processes:
Selective Attention: The individual focuses only on a few details or stimulus to which
he is subjected. The type of information or stimuli to which an individual is more
sensitive depends on the person.
For brands and advertisers successfully capture and retain the attention of consumers
is increasingly difficult. For example, many users no longer pay any attention,
unconsciously, to banner ads on the Internet. This kind of process is called Banner
Blindness. The attention level also varies depending on the activity of the individual
and the number of other stimuli in the environment. For example, an individual who is
bored during a subway trip will be much more attentive to a new ad displayed in the
tube. It is a new stimulus that breaks the trip routine for him.Consumers will also be
much more attentive to stimuli related to a need. For example, a consumer who
wishes to buy a new car will pay more attention to car manufacturers ads. While
neglecting those for computers. Lastly, people are more likely to be attentive to
stimuli that are new or out of the ordinary. For example, an innovative advertising or
a marketing message (Unique Value Proposition) widely different from its
competitors is more likely to be remembered by consumers.
Selective Distortion: In many situations, two people are not going to interpret
information or a stimulus in the same way. Each individual will have a different
perception based on his experience, state of mind, beliefs and attitudes. Selective
distortion leads people to interpret situations in order to make them consistent with
their beliefs and values.

For brands, it means that the message they communicate will never be perceived
exactly in the same way by consumers. And that everyone may have a different
perception of it. Thats why its important to regularly ask consumers in order to
know their actual brand perception. Selective distortion often benefits to strong and
popular brands. Studies have shown that the perception and brand image plays a key
role in the way consumers perceived and judged the product.
38

Several experiments have shown that even if we give them the same product,
consumers find that the product is or tastes better when theyve been told that
its from a brand they like than when theyve been told its a generic brand. While it is
exactly the same product! Similarly, consumers will tend to appreciate even less a
product if it comes from a brand for which they have a negative perception.
Selective Retention: People do not retain all the information and stimuli they have
been exposed to. Selective retention means what the individual will store and retain
from a given situation or a particular stimulus. As for selective distortion, individuals
tend to memorize information that will fit with their existing beliefs and perceptions.
For example, consumers will remember especially the benefits of a brand or product
they like and will forget the drawbacks or competing products advantages.
Selective retention is also what explains why brands and advertisers use so much
repetition in their advertising campaigns and why they are so broadcasted. So that the
selective retention can help the brand to become a top of mind brand in the
consumers mind.
Learning
Learning is through action. When we act, we learn. It implies a change in the behavior
resulting from the experience. The learning changes the behavior of an individual as
he acquires information and experience. For example, if you are sick after drinking
milk, you had a negative experience, you associate the milk with this state of
discomfort and you learn that you should not drink milk. Therefore, you dont buy
milk anymore.

Rather, if you had a good experience with the product, you will have much more
desire to buy it again next time. The learning theories can be used in marketing by
brands. As the theory of operant conditioning which states that you can build a good
image and high demand for a product by associating it with a positive reinforcement
(or rather a bad image with a negative reinforcement).
Beliefs and Attitudes
A belief is a conviction that an individual has on something. Through the experience
he acquires, his learning and his external influences (family, friends, etc) he will
39

develop beliefs that will influence his buying behavior. While an attitude can be
defined as a feeling, an assessment of an object or idea and the predisposition to act in
a certain way toward that object. Attitudes allow the individual to develop a coherent
behavior against a class of similar objects or ideas. Beliefs as well as attitudes are
generally well-anchored in the individuals mind and are difficult to change. For
many people, their beliefs and attitudes are part of their personality and of who they
are.
However, it is important to understand, identify and analyze the positive attitudes and
beliefs but also the negative ones that consumers can have on a brand or product. To
change the brands marketing message or adjust its positioning in order to get
consumers to change their brand perception (Ulvaous; 2010: 917-919).

2.2 Review of Related studies

2.2.1 Review of Articles
Teunter (2009), in his article, Analysis of Sales Promotion Effects on Household
Purchase Behavior, has stated that sales promotion can influence household
purchase behavior in many ways (the so-called sales promotion reaction
mechanisms). A household can decide to switch brands, purchase a larger quantity
than intended, purchase it at a different moment than intended, etc. But not only the
current behavior can be influenced. Suppose that a household purchases a larger
quantity due to the promotion. During the subsequent shopping trip, the household
can decide to buy less than what it normally purchases, or the household can decide to
postpone its subsequent shopping trip to compensate for these extra promotional
purchases. The sales promotion therefore can also influence the household behavior
during the next shopping trip (the so-called post-promotional effects). Some
households anticipate a sales promotion coming up and therefore wait for it, or buy
less right now (the so-called pre-promotional effects). The effects of sales promotions
on household purchase behavior have to be studied in an inter-temporal setting, not
taking only the current promotional shopping trip into account but also the pre- and
post-promotional shopping trips.

Manufacturers and retailers are spending more and more of their marketing money on
sales promotions. Conflicting empirical results exist with respect to the effects of
40

these sales promotions on household purchase behavior. Based on household scanner

data, new insights are developed into the drivers of household promotion response
and into the different reaction mechanisms that constitute household promotion
response.
Rotemberg (2011), in his article, A Behavioral Model of Demandable Deposits and
Its Implications for Financial Regulation has started Behavioral Model of
Demandable Deposits and Its Implications for Financial Regulation in a various
government regulations available to be imposed on financial institutions minimum
capital levels, asset requirements, deposit insurance, and compulsory claw backs to
understand how much they can help protect investors. A model is developed that
rationalizes contracts that give depositors the right to obtain funds on demand even
when depositors intend to use these funds for consumption in the future. This is
explained by depositor over optimism regarding their own ability to collect funds in a
run. Capitalized institutions serving depositors with such beliefs emerge in
equilibrium even if depositors and bank owners have the same preferences and the
same investment opportunities. Various government regulations of these institutions,
including minimum capital levels, requirements concerning the assets they may hold,
deposit insurance, and compulsory claw backs in bankruptcy, can raise the average ex
post welfare of depositors.
Hagiu and Haaburda (2012), in their article Expectations, Network Effects and
Platform Pricing had started expectations, Network Effects and Platform Pricing In
markets with network effects, the value that users gain from platforms depends on the
number of other users of the same type who join the same platform (direct network
effects) or the number of users of a different type that join (cross-group network
effects). Examples include social networks like Facebook or Google+, payment
systems like PayPal or Visa, videogame systems like PlayStation 3 and Xbox 360,
Smartphone platforms like Apple's iPhone or Google's Android, etc. Users typically
rely on the media, market reports, or word of mouth to form expectations about the
total number of other users that join a given platform. However, most of the time
these users are unable to calculate the effect of platforms' prices on adoption by other
users. In other words, they do not take price into account when forming expectations.
To analyze platform profits, Andrei Hagiu and Hanna Haaburda model different
41

degrees of user sophistication in forming price expectations in markets with network

effects. They show that firms have different preferences regarding the average
sophistication of their user base depending on market structure. In this paper, we
distinguish two ways in which rational expectations can be formed, which correspond
to two different types of users-sophisticated and unsophisticated. Only sophisticated
users adjust their expectations in response to platforms' price changes. We study the
effect of the fraction of sophisticated users on platform profits. A monopoly
platform's profits are always increasing in the fraction of sophisticated users. The
profits of competing platforms in a market of fixed size are decreasing in the fraction
of sophisticated users. When market expansion is introduced, the fraction of
sophisticated users that maximizes competing platforms' profits may be positive and
is strictly lower than 1. We also investigate the possibility of platforms investing in
"educating" unsophisticated users. In a competitive environment, such education is a
public good among platforms and therefore the equilibrium level is lower than the one
that would maximize joint industry profits.
Lemmens and Gupta (2013 ),in their article 'Managing Churn to Maximize Profits
had started Managing Churn to Maximize Profits on customer defection or churn is a
widespread phenomenon that threatens firms across a variety of industries with
dramatic financial consequences. To tackle this problem, companies are developing
sophisticated churn management strategies. These strategies typically involve two
steps-ranking customers based on their estimated propensity to churn, and then
offering retention incentives to a subset of customers at the top of the churn ranking.
The implicit assumption is that this process would maximize firm's profits by
targeting customers who are most likely to churn. However, current marketing
research and practice aims at maximizing the correct classification of churners and
non-churners. Profit from targeting a customer depends on not only a customer's
propensity to churn, but also on her spend or value, her probability of responding to
retention offers, as well as the cost of these offers. Overall profit of the firm also
depends on the number of customers the firm decides to target for its retention
campaign. We propose a predictive model that accounts for all these elements. Our
optimization algorithm uses stochastic gradient boosting, a state-of-the-art numerical
algorithm based on stage-wise gradient descent. It also determines the optimal number
of customers to target. The resulting optimal customer ranking and target size
42

selection leads to, on average, a 115% improvement in profit compared to current

methods. Remarkably, the improvement in profit comes along with more prediction
errors in terms of which customers will churn. However, the new loss function leads
to better predictions where it matters the most for the company's profits. For a
company like Verizon Wireless, this translates into a profit increase of at least $28
million from a single retention campaign, without any additional implementation cost.

Teixeira (2014). in his article "The Rising Cost of Consumer Attention has started
the rising cost of consumer attention is a necessary ingredient for effective
advertising. The market for consumer attention (or "eyeballs") has become so
competitive that attention can be regarded as a currency. The rising cost of this
ingredient in the marketplace is causing marketers to waste money on costly attention
sources or reduce their investment in promoting their brands. Instead, they should be
thinking about how to "buy" cheaper attention and how to use it more effectively.
Research in the emerging field of the Economics of Attention shows how this can be
achieved. Here, I argue that, irrespective of the means to attain it, attention always
comes at a price. I also show that the cost of attention has increased dramatically
(seven- to nine-fold) in the last two decades. To counteract this trend, I propose novel
approaches to lower its cost or use attention more efficiently by adopting multitaskedtailored ads, Lean Advertising, and Viral Ad Symbiosis. To guide the choice of which
approach to take, I propose the Attention-contingent Advertising Strategy, a
framework to match the most effective approach to the quality of attention
contingently available. As the value of attention rises, marketers need to become
better managers of attention. This paper is intended to help them in this regard.
Chauhan, ( 2014), in his article New Delhi Strong Rural Demand Helps TwoWheeler Firms Record Robust Sales in December has started New Delhi Strong rural
demand and rising popularity of scooters helped two-wheeler makers increase sales in
December even as commercial vehicle sales plummeted in a slowing economy. Twowheelers are the only bright segment in the Indian automobile industry that is going
through one of the longest steaks of slump, and industry experts don't expect a
turnaround before the general elections this year. "The Indian auto industry is facing
its most challenging times," Sugato Sen, deputy director general at the Society of
Indian Automobile Manufacturers (SIAM), said. "This is one of the longest spells of
43

negative sales and all segments with the exception of the two-wheelers have declined
in this fiscal." SIAM expects a market turnaround only after a new government comes
to power later this year.Hero MotoCorp, the world's largest two-wheeler company by
volumes, reported a 3 per cent year-on-year fall in December sales, but its former
partner Honda recorded a 36 per cent jump in sales. Honda Motorcycle & Scooter
India was powered by a 54 per cent rise in scooter sales at 1.71-lakh units.
The Japanese firm's motorcycle sales, too, grew 18 per cent to 1.25-lakh units last
month. Despite its slide in December, Hero posted its best-ever calendar year sales in
2013, selling 61.83-lakh bikes and scooters, up from 61.20-lakh two-wheelers in the
previous year. Hero's sales for the festive quarter of October to December rose 7 per
cent to 16.80-lakh units. A 38 percent rise in scooter sales to 41,817 units helped TVS
Motor Company stay positive in December, while Delhi-based Yamaha Motor India
posted a whopping 58 per cent jump in sales on the back of robust demand for its Ray
and Ray Z scooters. The company sold 6,51,487 two-wheelers in 2013, 34 per cent
more than the previous year. Roy Kurian, vice-president for sales and marketing at
Yamaha Motor India, attributed the rising sales to expanding dealership network and
a strong product portfolio. Riding on the success of its newly launched Centuro
motorcycle, Mahindra 2wheelers posted 267 per cent increase in its December sales.
While the two-wheeler makers are confident about the new year, makers of cars and
commercial vehicles are cautious after continuous poor performance. While car sales
have dropped for almost 14 months in a row, the commercial vehicle segment has
seen a fall in sales for 24 months at a stretch, signaling a drop in economic activity in
the country. The country's largest commercial vehicle maker Tata Motors sold just
25,738 commercial vehicles 18,079 light commercial vehicles and 7,659 medium and
heavy CVs in the domestic market last month, 46 per cent lower than December 2012.
Ashok Leyland reported 14 per cent fall in sales last month. Its bigger trucks and
buses sales fell 26 per cent to 3,890 units. Delhibased truck and bus maker Eicher
Motors' sales dropped 30 per cent in December.
Analysts tracking the automotive market said some recovery may happen in the
second half of the current year after the general elections. "The market may have
bottomed out and may see some positive change post the elections with the
installation of a new government and the expected changes in the economic situation,"
44

Abdul

Majeed,

leader

for

automotive

practice

at

global

consultancy

PricewaterhouseCoopers, said.

2.6.2 Review of Thesis

Parthiban (2008), has thesis submitted on consumer mediating effects on
purchasing towards two wheelers Motorbikes.
The Objectives of the study are as follows:

To study the mediating factors involved in the purchase of bikes particularly 100
cc segment.

To study the impact of consumer buying decision process in the purchase of

bikes with special reference to Kancheepuram district in Tamil Nadu.

To identify the critical factors involved in the purchase of 100 cc bikes and
thereby evolves a conceptual model that captures the key dimensions.

To suggest a suitable business model for providing significant information to

bikes manufacturers in designing and promoting bikes, for the market.

The Findings are as follows:

It show a clear relationship between demographic variables, consumer

preferences, priorities and the study variable for the purchase motives of bikes
in Kancheepuram District of Tamil Nadu.

The study c identify the divergence in consumer behavior of two-wheeler and

automobiles.

Saravanan , Panchanatham and Pragadeeswaran (2009), had submitted thesis on

consumer behavior towards Show room of two wheelers with reference to cuddalore
district.
The Objectives of this Study are as follows:

Find out the consumer behavior towards showroom service of two wheelers .

To identify the real status of the brand purchase

The Findings are as follows:

45

Result shows that the ages of the respondents are positively correlated with
Yamaha and others brand and negatively correlated with TVS, Hero Honda and
Bajaj.

Result exhibits that five variables (age, professional status, personality, size of
family and educational qualification) have

Significantly contributed for predicting the Availability of spare parts.

The researcher finding also identified that the respondents ranking for expected
design factor of the color are significantly different.

Further, the survey exhibits that the respondents ranking for expected
promotional factor of the Availability of spare parts are significantly different.

The respondents ranking for expected after sales services from the show room
services of the performance are significantly different.4

Reddy (2011), has thesis submittedConsumer Behavior Towards Two-Wheeler

Motor Bikes in the twin cities i.e. Hyderabad and Secunderabad.
The Objectives of the study are as follows:

To study the behavioral factors of consumers in motor bikes.

To analyze the impact of behavioral factors of consumers on choosing particular

brand of Motor bike.

To suggest various factors to improve sales.

To study the consumers opinion of their motor bikes regarding its features like
appearance, mileage, price etc.

The Findings are as follows:

There is a heavy demand for Hero Honda motorcycles in the market, so their
supply has to be drastically improved so as to meet the demand of the customer.

Some of the respondents are suggested to improve the mileage of Yamaha and
TVS Bikes.

A considerable number of respondents opined that there is a need to improve the

technology of TVS bikes.

A vast majority of the respondents felt the design of Hero Honda bikes should
be changed so

as to attract the customers.

46

The bikes recently introduced by Hero Honda are mostly concerned about
youth. So, they should also consider middle-aged people while manufacturing.

Some of the respondents felt that the price of Yamaha is high and it should be
decreased so as to attract more customers.

Sardar Gugloth & Margani Sekhara (2012)had thesis submitted To the decision
making process of purchasing has Analyzed Two wheelers in rural area of Andhr
Pardesh

The Objectives of the study are as follows:

To study the rural consumer decision making process of rural consumer with
Reference to Tamballapalli Taluka, in Chittoor district

To identify the factors influencing rural consumers, in brand selection while

purchasing the two- wheelers.

To identify the rural consumers choice of preference while purchasing the

two wheelers.

The researchers was collected the primary data from the respondents. A structured
interview was administered to extract responses. The study was conducted on a
sample of 96 consumers. Secondary data was also collected from various journals,
books, magazines, newspapers and reports prepared by researchers, etc.

47

The Findings are as follows:

There is a good demand for two-wheelers in rural areas, but availability of

factual and comparative information to prospective customers is limited.

Majority of respondents are influenced by Family members and friends at the

time of Brand selection.

Most of the rural consumers are giving their preference to mileage only.

Rural consumers are influenced by financial facilities; two-wheeler

Maharotra and Sharma (2012), had thesis submitted An Empirical study of

consumer behavior on Two Wheelers

The Objectives of the study are as follows:

To identify the market size of two-wheeler companies.

To identify the impact of demographic factors on purchasing of two-wheeler.

To study the various attributes that trigger consumers to buy specific twowheeler brand like splendor, Pulsar, Karizma, victor.

The Findings are as follows:

This study find that purchasing of two-wheeler customer has different choice
but the buying decision depends on various factors viz. mileage, engine power,
model, price, and weight of the two-wheeler.

The study finds that Hero motorcar Ltd is leading player in Jaipur city.

This study shows that Demographic factor also plays a vital role in the buying
decision or buying behavior of the consumer

It is found through the study that up to age group of 20 usually they are students
they give prime importance to the mileage and the engine power as well as. For
age group of 20 to 30 where serviceman, businessman and students lies, they
consider engine power is most important factor although it is much closer to
mileage also. While in the age group of 30 to 40 and 40to50,mileage is the most
important factor while purchasing a motorcycle

Mani and Tripathy ( 2013),had thesis submitted on Consumer Buying Behavior

has Analyzed two Wheelers Bike in Context to Indie Market
48

The Objectives of the study are as follows:

To study the behavioral factors of consumers.

To analyze the impact of behavioral factor of consumer on choosing particular

brand.

To study the consumers opinion regarding features like appearance, mileage ,

price etc.

To suggest various factors to improve sales.

The Findings are as follows:

There is a high demand for Honda motorcycles in the market

Some of the respondents has suggested improving the mileage of Yamaha and
Honda.

A considerable number of respondents opined that there is a need to improve

the technology of TVS Bi bikes.

A vast majority of the respondents felt the design of Hero bikes should be
changed so as to attract the customer.

The bikes recently introduced by Bajaj are most concerned about youth.

Some of the respondents felt that the price of Yamaha is high.

2.3 Research Gap

Definitely, the above studies have shed light on the buying behavior of two wheelers
in Indian markets. However, all of the above researchers are confined to influencing
factor of buying behavior and also focus on their design, brand, quality and mileage.
Therefore, this study is provided to the manufactures regarding bikes designing of its
promotion in the whole market.

The previous studies have probably not researched in two-wheeler aspects in Nepal.
So, this study has been focused on studies the buyer behavior and their influencing
factor of two wheelers in Bagmati Zone.

49

CHAPTER - III
RESEARCH METHODOLOGY
Industrial activities are gradually increasing in Nepal. Number of units of industries
producing different types of consumer durable products and consumer non-durable
products are increasing year by year. Similarly, the quantity of such products being
imported from abroad is also on increasing. Almost all of these products are marketed
with different brands. Most of the manufacturers or marketers/sellers are spending a
good deal of money for the promotion of their brands. In other words, promotional
activities are also increasing in the country. All these show that marketing in Nepal is
developing fast and entering into an era of cutthroat competition. This process of
growth is much accelerated by the present governments growing emphasis on
privatization and free market economy.
In the context of Nepalese consumer market, this study is carried out mainly to find
out trend of motorcycles possession, marketing trends and ideas of the Nepalese
companies. Beside this basic objective, this study has also aimed to identify the
factors associated with product identification and examining the brand awareness
of the Nepalese consumers. In the competitive modern business world, research on
consumer behavior is considered the most essential activity to be conducted on to
become a successful marketer.
It is understood that research works are to be much more effective, accurate, useful,
and need scientific methods. Hence, this study also employs scientific methods of
research. The research methodology employed in the present study is based on
primary data as descended below.
Research methodology is the main body of the study; it is the way to solve about
research problem systematically. Therefore, research methodology is the research
method on techniques to use through the entire study. In other words, research
methodology is the process of arriving at the solution of problem through planned and
systematic dealing with collection, analysis and interpretation of the fact and
figures.
3.1 Research Design
50

The research design adopted for this study is descriptive based on survey study. This
study mainly aims to find out trends of motorcycles sales and factors influencing
buyers behavior of the Nepalese market. Therefore, the survey research design i s
adopted for the st ud y. The data and information collected from the survey of
the consumer are rearranged, tabulated, analyzed, and interpreted according to the
need of the study for attaining the stated objectives.

This study is an exploratory study. This study mainly aims to find out trends of
motorcycles sales and factors influencing buyers behavior of the Nepalese market.
Therefore, the survey research design is adopted for the study. The Nepalese
ultimate consumers are extensively surveyed to procure data and information about
the consumer's personality, purchasing pattern of different brands of the products
selected for the study, and their attitude, responses and reaction relating to the
brands. The data and information collected from the survey of the consumer are
rearranged, tabulated, analyzed and interpreted according to the need to the study for
attaining the stated objectives

The sampled Nepalese consumers have been extensively surveyed to procure data as
per their personality relative to their purchasing pattern with respect to the products
selected for the study.

3.2 Nature and Sources of Data

The data used are b o t h primary and secondary in nature. These primary data
required for the study are collected from the consumers of Katmandu valley and
secondary data are collected from respective organizations, newspapers, articles and
other materials.

3.3 Population and Sample

This study mainly aims to find out trends of motorcycles sales and factors
influencing buyers behavior

of the Nepalese market and all the Nepalese

ultimate consumers of the products selected for the study are considered as the
population of the study. Out of this huge population, a sample of 80 consumers is
taken for the study. The consumers thus selected as sample for the study have been
randomly picked up on convenience sampling basis taking into consideration that
51

various age groups with proper differentiation on variables such as age, sex, literacy,
family system, income level etc. are included.

3.4 Data Collection Procedure

Information and data would be collected through various ways. Questionnaire,
Interview, observation would be done for primary data and office records, published
data, statements and balance sheet would be taken for secondary data. Customers of
attitude towards different brands of bikes would clearly be reflected in the
questionnaire. Purchase behavior shown by potential buyer of bike will also reflected
in the questionnaire.

3.5 Data Analysis

The data collected in this way have been appropriately organized and then tabulated.
The responses of the questions have been tabulated on different tables. Percentage and
other computations have been calculated and included in the respective tables and the
tabulated data have been described upon the analysis. To make it more effective
various pictorial tools such as graphs, bar diagrams and pie charts have been used.

CHAPTER - IV
PRESENTATION AND ANALYSIS DATA
This chapter incorporates the data and information collected from the sources that
are presented and analyzed for the attainment of the stated objectives of the study.
52

The collection includes the responses of the related organizations and the analysis
and the interpretation of what is found from the study has been explained at the end of
the chapter.

The data and information collected from the sources are presented, interpreted and
analyzed according to the research questions formulated for the study. Research
questions formulated for the study have been responded by the means of the very
analysis and interpretation.

4.1 Bajaj Motorcycles

HH Bajaj, ever since its inception has stood out among the rest because of the
compassion to fit to the needs of customers. The year 2069 started with the idea of
giving premium looks to our set up and brand identity. Keeping this in mind they have
established the new lifestyle based themes for bikes. Manufactured basically in India
for Nepalese market, Bajaj motorcycles have huge demand in Nepal. With powerful
performance and high quality services, Bajaj motorbikes have started to increase the
perception of motorcycles in Nepal. HH (Bajaj) one of the companies of Golchha
Organization started its operations from May 1998. It is the authorized dealer of
Bajaj Motorcycles and Spares for Nepal. Bajaj had market share of 4% in the first
year of operation. Within the span of 14 years Bajaj is the market leader commanding
a share of 51%. This has been achieved because of various marketing initiatives and
focus on costumer friendly approach of the business. It also has nationwide
distribution network with 43 sales and service outlet providing quality service the year
round.

4.1.1 Annual Sales of Bajaj Motorcycles

HH Bajaj has range of 12 models to offer. Over the last 14 years HH Bajaj has not
only become successful in gaining popularity among Nepali bike riders but also has
diversified itself with the largest distribution network of 81 outlets. Bajaj not only
provides quality products at every possible area of the country but also insure strong
offers sales, service and availability of genuine spares parts from all corners of Nepal.
HH Bajaj today has a staff base of 220 employees who are dedicated to fulfill the
commitment of reaching wherever the bike can reach.
Table 4.1
53

Sales of Bajaj Bikes

Fiscal Year

Sales (Unit)

2065-066

22440

2066-067

22800

2067-068

25200

2068-069

26900

Source: Office Record, 2013

The above table shows that in the year 2065-066 bikes worth 22440 units were sold
which leaped to 26900 units in 2068-069. This particularly shows that Bajaj
motorcycles are of high value.
Figure 4.1
Yearly Sales of Bajaj Motorcycles
30000
25000

Sales Unit

20000
15000
10000
5000
0
2065-2066

2066-2067
Fiscal Year

54

2067-2068

2068-2069

Sales of two wheelers have slumped in previous days which dealers and sales agents
attribute to a hike in excise duty and registration charge by the government.
According to traders, motorcycle sales have dropped by almost 25 percent. But sales
of specific bikes have increased like of Bajaj bikes. Due to high speed and power
young generations prefer Pulsar bikes. The sales from 2065-66 have continuously
increased up to 2068-2069. Majorly, Pulsar, Discover are the models that have been
continuously gaining height in terms of sales.

4.1.2 Marketing Mix of Bajaj Vehicles

Different marketing and other key strategies are studied here. Four different aspects of
Bajaj motorcycles are studied here.

Products of Bajaj motorcycles

Price of Bajaj motorcycles

Promotion of Bajaj motorcycles

Distribution of Bajaj motorcycles

4.1.3 Products of Bajaj motorcycle

Originally Bajaj motorcycles were produced with technical collaboration with
Japanese Kawasaki Motorcycles. The starting lots were more of city ride or even
domestic purpose. With increase in market structure from household to luxury item or
a symbol of fashion, Bajaj has extended its wing to launch more powerful and
thrilling range that symbolizes young generations. Power, comfort are true symbol of
Bajaj bikes.

4.1.4Price of Bajaj Motorcycles

Price of Bajaj motorcycles vary from model to model. Each model has its own
specialty and peculiarity. The models differ from power to usage. There are 14
different models upon which the prices are based. Different prices are listed here
under.

55

Table 4.2
Price of Bajaj Motorcycles
S.N Model

Current Market Price

Pulsar F 220CC

239,900

Pulsar S 220CC

234,900

Avenger 220CC

234,900

Avenger 200 CC

209,900

Pulsar 180CC

214,900

Pulsar 150CC

199,900

Pulsar LS 135CC

169,900

Discover 150CC

159,900

Discover Disk 135 CC

158,900

10

XCD Disk 135CC

146,900

11

XCD Drum 135CC

139,900

12

Discover 100CC

139,900

13

Platina 125CC

134,900

14

Platina 100CC

114,900

15

Kristal

115,900

Source: HH & Co., 2013

The above price includes VAT, any other surcharges and road tax of the current fiscal
year. Others charges including insurance and any others are to be borne by the
customers.

4.1.5 Promotion of Bajaj Motorcycles

Hansraj Hulaschand and Co. is the sole distributer of Bajaj Motorcycles. They have
time to time designed different promotional programs to enhance sales and promote
Bajaj motorcycles. The hard efforts of HH & Co and the promotional campaign
undertaken by them have a good track record of the market. The companys activities
are inaccordance with the competition in the market.
Its bringing promotional programs as per the need of the market situation and trends.
Mostly, bigger campaigns are followed by normal advertisements to remind
56

customers about the features of the product. Also time to time it brings aggressive
promotional campaign to achieve the sales.

Few of the sales promotion campaigns and tools used by HH & Co in Nepal are;

Launching and re-launching.

Attending trade fair and auto show.

Discounts: Cash Discount, Commission to dealers and sub-dealers.

Exchange Facility

Free Insurance and Motorcycle accessories.

Running Service

Round the clock service facility.

Low monthly installment.

On the spot financing

Spare parts support

Sponsorship to different programs.

Sponsor to Nepal police and Traffic police.

Genuine spare parts.

4.1.6 Distribution Channels of Bajaj Motorcycles

HH & Co has developed strong network throughout Nepal for the sale of Bajaj
motorbikes. It has appointed more and more dealers, sub-dealers and agents for
effective distribution of motorcycles. Also for quality customer service well equipped
service centre is available throughout Nepal and genuine parts are one of the key area
that HH & Co. has been focusing since past few years.

4.2 Yamaha Motorcycles

Morang Auto Works (MAW) is one of the oldest motorcycle dealers of Nepal. MAW
has also extended its wing in four wheelers and heavy earth moving vehicles. Most of
the bikes are packed with power and style. With powerful performance and high
quality services, Yamaha motorbikes have started to increase the perception of
motorcycles in Nepal. MAW one of the oldest companies importing motorcycles
started its operations from 1975. It is the authorized dealer of Yamaha Motorcycles
and Spares for Nepal. Within the span of 36 years Yamaha is the market leader in
57

style and design commanding a share of 30-35%. This has been achieved because of
various marketing initiatives and focus on costumer friendly approach of the business.

4.3 Annual Sales of Yamaha Motorcycles

MAW has range of 10 models to offer. Over the last 35 years MAW has not only
become successful in gaining popularity among Nepali bike riders but also has
diversified itself with the ranges of racing bikes. Yamaha not only provides quality
products at every possible area of the country but also insure strong offers sales,
service and availability of genuine spares parts from all corners of Nepal. Yamaha
today has dedicated itself to fulfill the commitment of reaching wherever the bike can
reach.
Table 4.3
Sales of Yamaha Bikes
Fiscal Year

Sales (Unit)

2065-066

11,100

2066-067

16,560

2067-068

17,220

2068-069

18,912

Source: Office Record, 2012

The above table shows that in the year 2066-066 bikes worth 11,100 units were sold
which leaped to 18,912 units in 2068-069. This particularly shows that Yamaha
motorcycles are gaining high customer value.

58

Figure 4.2
Yearly Sales of Yamaha Motorcycles
20000
18000
16000
Sales Unit

14000
12000
10000
8000
6000
4000
2000
0
2065-2066

2066-2067

2067-2068

2068-2069

Fiscal Year

Sales of two- wheelers have slumped in previous days which dealers and sales agents
attribute to a hike in excise duty and registration charge by the government.
According to traders, motorcycle sales have dropped by almost 25 percent. Due to
new look and power young generations are pushing towards bikes like R15, FZ. The
sales from 2065-66 have continuously increased up to 2068-2069. Majorly, R15 and
FZ are the models that have been continuously gaining height in terms of sales.

4.2.1 Marketing Mix of Yamaha Vehicles

Different marketing and other key strategies are studied here. Four different aspects of
Yamaha motorcycles are studied here.

Products of Yamaha motorcycles

Price of Yamaha motorcycles

Promotion of Yamaha motorcycles

Distribution of Yamaha motorcycles

59

4.2.2 Products of Yamaha Motorcycle

Yamaha motorcycles are still produced with technical collaboration with Japanese
Yamaha Motorcycles. The starting lots were more of city ride or even domestic
purpose. With increase in market structure from household to luxury item or a symbol
of fashion, Yamaha has extended its segment to launch more powerful and thrilling
range that symbolizes young generations. Racing bikes are true symbol of Yamaha
bikes.

4.2.3 Price of Yamaha Motorcycles

Price of Yamaha motorcycles vary from model to model. Each model has its own
specialty and peculiarity. The models differ from power to usage. There are 10
different models upon which the prices are based. Different prices are listed here
under.
Table 4.4
Price of Yamaha Motorcycles
S.N
Model
Current Market Price
1 Yamaha New R15 Version 2.0
329,900
2 Yamaha Fazer
221,900
3 Yamaha New FZS
220,900
4 Yamaha YRB 110
148,900
5 Yamaha YRB 125
164,900
6 Yamaha SS125
177,900
7 Yamaha Enticer DLX
183,900
8 Yamaha SZR
191,900
9 Yamaha Ray
159,900
10 Yamaha Ray-Z
162,900
Source: MAW., 2013

The above price includes VAT, any other surcharges and road tax of the current fiscal
year. Others charges including insurance and any others are to be borne by the
customers.

4.2.4 Promotion of Yamaha Motorcycles

MAW. is the sole distributer of Yamaha Motorcycles. They have time to time
designed different promotional programs to enhance sales and promote Yamaha
motorcycles. The innovative campaign undertaken by them have a good track record
60

of the market. The companys activities are in accordance with the competition in the
market.
Its bringing promotional programs as per the need of the market situation and trends.
Mostly, strategic and powerful campaigns are conducted. Also time to time it brings
soft promotional campaign to achieve the sales.

Few of the sales promotion campaigns and tools used by MAW in Nepal are;

Launching and re-launching.

Attending trade fair and auto show.

Road Concert and Street Festivals

Discounts: Cash Discount, Commission to dealers and sub-dealers.

Exchange Facility

Free Insurance and Motorcycle accessories.

Low monthly installment.

On the spot financing

Spare parts support

Sponsorship to different programs.

Genuine spare parts.

4.2.5 Distribution Channels of Yamaha Motorcycles

MAW has developed strong network throughout Nepal for the sale of Yamaha
motorbikes. It has appointed more and more dealers, sub-dealers and agents for
effective distribution of motorcycles. Also for quality customer service well equipped
service centre is available throughout Nepal with genuine parts.

4.3 Registration of Motorcycles in Bagmati Zone

In Nepal, there are many motorcycles available. People choose their vehicle according
to their need and comfort. Though the population of Kathmandu and its surrounding
is ever expanding there is absence of abundant roads or proper road. The table shows
the annual motorcycle registration in Bagmati Zone over a period of time.
Table 4.5
Motorcycle Registration in Bagmati Zone
61

Fiscal Year Registration

2064-065
36,394
2065-066
42,054
2066-067
70,527
2067-086
55,065
2068-069
44,894
2069-2070
54,051
Source: DoTM, 2012

The annual registration has been fluctuating from 2064-065 o 2069-70. There has
been change in the perception of the consumers. Many of the out of valley riders do
register their vehicles outside Bagmati zone. So in between the registration may have
dropped.
Figure 4.3
Yearly Motorcycle Registration
80000
70000

No. of Ragistration

60000
50000
40000
30000
20000
10000
0
2064-2065

2065-2066

2066-2067

2067-2068

2068-2069

2069-2070

Fiscal Year

Registration of two- wheelers have increased to some extent. According to DoTM,

motorcycle registration has gained but the dynamics have changed where as
registration of specific bikes like sports bike, Royal Enfield have increased. Due to
high population and in migration rate, the registration is still expected to increase.

4.3.1 Revenue Collection

Due to heavy investment in marketing, the sales of motorcycles have gone up in
recent period. The study done by Himal Khabar fortnightly paper shows that there has

62

been high value import of vehicles in recent years. Even though there has been crisis
in liquidity in the market structure, due to heavy promotional market, there has been
increase in vehicle registration and import.

Interesting facts about the motorcycle import is that even though the balance of
payment is increasing and the gap of difference between import and export is soaring,
the import of motorcycle is increasing greatly.

The below table shows the import of vehicle and collection of revenue in recent
period.
Table 4.6
Import and Revenue Collection
Fiscal

Motorcycle Import Value

Revenue Collection

Year

( Rupees in Millions)

(Rupees in Millions)

2068-069

5,420

5,179

2069-070

7,740

7,929

Total

13,160

13,108

Source: Himal Khabar,bhadra 28 2070

Figure 4.4

Rs. in Million

Import and Revenue Collection

9000
8000
7000
6000
5000
4000
3000
2000
1000
0

Import
Revenue

2068-069

2069-070
Fiscal Year

The above table and figure shows the figure of total import and registration of vehicle
during two fiscal years. The import value of vehicles during 2068-069 was worth Rs
5,420 million and the revenue collected was Rs 5179 million. Whereas the import
value during 2069-070 was worth Rs 7,740 million and revenue collected during the
63

period was Rs 7929 million. There has been increase of 53 percent revenue during the
period. This is basically due to the innovative marketing of the product.
4.4 Consumers Behavior
The marketing concept is consumer oriented and the emphasis is more on the
consumer rather than on the product. The essence of modern marketing lies in
building of profit along with creating meaningful value satisfaction for the customers,
whose needs and desires have to be coordinated with the set of products and
production programs. Therefore, marketing success an enterprise depends as its ability
to create a community of satisfied consumers. All the business activities should be
carried out in ways which are directed towards the satisfaction of the consumer needs.
Consumer behavior is affected by a host of variables ranging from personal,
professional needs, attitudes and values, personality characteristics, social economic
and cultural background, age, gender, professional status to social influences of
various kinds exerted a family, friends, colleagues, and society as a whole. The
combination of these factors help the consumer in decision making further
Psychological factors that as individual consumer needs, motivations, perceptions
attitudes, the learning process personality characteristics are the similarities, which
operate across the different types of people and influence their behavior.

4.4.1 Buying Behavior

The next research question asked for the study was to identify about the behavior that
the people follow while purchasing various products. The question asked for this
under the selected sample products was How do you make purchase decision for a
product (motorcycle)? The data received from the survey have been presented in the
Table 4.4 as shown below.

As given in the Table 4.4, the highest percentage of people who would like to
purchase by looking at brands in under motorcycles i.e. 76 % and then it is 45%
under mobile sets and thereafter comes mineral water 24% and the least one is
cine artists with only 16% Similarly the highest figure in buying or consuming the
product through influence is under mineral water with 46%. It is 48% under cine
artist to consume the product i.e. watch the movie by influence.

64

Table 4.7
Reponses Regarding Buying Behavior
In terms of Numbers

In Terms of Percentage

Can
Can Total
By
By
By
By
By
By
Not
Not
Inspection Influence Brands
Inspection Influence Brands
Say
Say
Motorcycle
7
12
61
0
9%
15%
76%
0%
80
Source: Field Survey,2013
Products

Figure 4.5
Response Regarding Buying Behavior
80%
70%
60%
50%
40%
30%
20%
10%
0%
By Influence

By Brands

Can Not Say

As it can be clearly figured out in the graph above that majority of people who were
found to have purchased by looking at brands pertain to Motorbikes. Mobile sets
come second in this position whilst mineral water and then cine artist come in the
third and the fourth position respectively. However, the no. of people with the
behavior of watching movie by influence is the highest on the part of cine artist and
then come mobile sets and then mineral water and cold drink at the end. Similarly
buying products by inspection, the highest position is on the part of Mineral waters
and then on mobile sets, cine artist and the Motorbikes respectively.

4.4.1 Major Factors Influencing Buying Behavior

Consumer behavior is affected by a host of variables ranging from personal,
professional needs, attitudes and values, personality characteristics, social economic
65

and cultural background, age, gender, professional status to social influences of

various kinds exerted a family, friends, colleagues, and society as a whole. The
combination of these factors help the consumer in decision making further
Psychological factors that as individual consumer needs, motivations, perceptions
attitudes, the learning process personality characteristics are the similarities, which
operate across the different types of people and influence their behavior.
Table 4.8
Factors Influencing Consumers Behaviour
S.N Frequency Percentage Factors Affecting Consumers Buying Behavior
1
4
5%
Cultural Factor
2
20
25%
Social Factor
3
24
30%
Personal Factor
4
32
40%
Psychological Factor
Source: Field Survey, 2013
Figure 4.6
Factors Affecting Consumers Behaviour
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Cultural Factor

Social Factor

Psychological Factor

Personal Factor

Four major factors which influences on the buying behavior of consumer were
analyzed during the survey.

Cultural factors

Social factors

Personal factors

Psychological factors

Consumer behavior cultural can be defined as the some total of learned belief, values
and customs that serve to guide and direct the consumer behavior of all members of
that society. Cultural is a learned through the following three ways:- 1. Formal
66

learning 2. Informal learning 3.Technical learning. Cultural is a most fundamental

determinant persons wants and behavior, the growing child acquires a set of values,
perceptions, preferences and behavior, through his family and key institutions. Very
less respondents said that their buying or perception on motorcycle purchase will be
affected by cultural factor. Only 2 respondents (4%) of them said so. Their idea
behind the saying was their behavior associated with that.

Consumer behavior is also influenced by such social factors as reference groups,

family and social roles and status. 24% (12) respondents said that their behavior is
affected by social factors. They stated that family pressure, friends circle are the most
inducing factor. Buyers decisions are also influenced by personal characteristics, the
buyers age, life cycle stages, occupation, economic circumstances, lifestyle and
personality and self-concept. Around 30% of the respondents said that their
influencing factor is majorly personal.

Around 42% of the respondents said that their decision was affected by need driven
idea. The need to reach work, the need to cater the transportation and others were
major factors. Abraham Mallows need can be ranked in order of importance from
the low biological needs to the higher levels of psychological needs. MASLOWS
hierarchy of human needs make us understand consumer motivation. It is useful for
the marketer who can identify what generic level need this brand is capable fulfilling
and accordingly position his brand up with relevant marketing inputs. Brands such as
food and clothes are bought to fulfill psychological needs.

The specific research question asked for the study was to identify the factors affecting
their buying behavior in more specific way with comparison to different products.
The data received from the survey under this question have been presented in the
Table 4.5 as shown below.
Table 4.9
Reponses Regarding Factors Affecting Buying Behavior
Products
Motorbikes

In terms of Numbers

In Terms of Percentage

Price Design Qty Offers Others Price Design Quality Offers Others
28

27

22

35%

67

4%

34%

28%

0%

Total
80

Source: Field Survey,2013

As given in the Table 4.9, the highest % of people who would like to purchase by
looking at price is under Motorbikes of 35%. Similarly, the quality and offers
have been found being the major factors affecting the purchasing decision on the part
of Motorbike with 34% and 28% respectively. Other factors are at minimum figures
of the Motorbike. The same has been shown in the Figure 4.7.

As depicted in the Figure 4.7, one can see above that majority of people tend to make
the decision of buying products based on the factor of price at first and then comes
quality. The impact of the factor offers have been shown with highest level with
regards to Motorbike.

68

Figure 4.7
Depiction of the Reponses Regarding Factors Affecting Buying Behavior
40%
35%
30%
25%
20%
15%
10%
5%
0%
Price

Design

Quality

Offers

Others

4.4.2 Brand Awareness of Nepalese Consumers

The first research question formulated for this study is to identify the brand awareness
of the Nepalese Consumers in relation to the non-durable consumer goods. For this,
the respondents were asked a question to know how much conscious they were with
regards to brand. The following data were derived upon conducting the survey as
presented in the
Table 4.10
Reponses Regarding Brand Consciousness
Brand Consciousness
Types of Responses

No. of Respondents

Percentage

Can Not Say

16

20%

Not At All

10%

Less

16

20%

Moderate

31

39%

Very Much

11%

Total

80

100%

Source: Field Survey,2013

69

As it can be seen from the Table 4.10 above, various responses were received from
various respondents out of the selected 80 people regarding the questions of how
much they were aware of brand. For instance, 31 people were found to be brand
conscious in a moderate level i.e. 39 in terms of percentage being the majority group
whilst only 9 (11%) were found to be highly conscious. Moreover, 16 (20%)
respondents were found to be less interested in brand factor while making purchasing
decision. Amazingly, 8 people i.e. 10% were found to not to bother about brand factor
whilst 16 (20%) were found to be uncertain whether they were really brand
consciousness or not. The same has been depicted in the graph below i.e. Figure 4.8.
Figure 4.8
Response Regarding Brand Consciousness
35
30
25
20
15
10
5
0
Can Not Say

Not At All

Less

Moderate

Very Much

As it can be clearly figured out in the graph above that majority of people were found
to be conscious in a moderate degree, whilst the no. of highly brand conscious people
were found to be less. Similarly average no. of people was found to be less interested
towards brand. However, few of them were found to be non-interested and not certain
towards brand consciousness.

70

4.5 Major Findings

The followings are the major findings derived upon the analysis of the data as
presented into the various tables and the graphs as well:

Bajaj and Yamaha motorbikes both have greater presence in market as

compared to others. They tend to influence their consumers in terms of
marketing in greater degree. The product and the innovative marketing have
brought them in this position today.

It was found that average no. of people were found to be consciousness

regarding the brand. That is, the degree of consciousness towards the brand
while in the purchasing lives of the people was found to be at moderate level
whilst very few people bother about it. Amazingly remarkable no. of the total
respondents were found to be being very less concerned with the aspects of
brand and Not Having an Explicit Idea about the degree of the brand
consciousness. Some of them were found not being explicitly concerned with
this aspect.

Though the products taken as samples for the sake of survey were from various
types, the results appeared in terms of brand consciousness was mix of
Moderate consciousness at high level, less consciousness at average level
and then Highly Consciousness at very low level, etc.

Similarly, with regards to the knowledge of brand availability, the number of

people with such knowledge was found to be satisfactory on the parts of some
product. Motorbikes

was not so much satisfactory on the part of other

products . This gave an insight that the people are more aware of the brand
regarding bikes e.g. Pulsar.

Furthermore, it was also found that most of the people were able to name brands
on the given product. This also shows that most of the people in Kathmandu
Valley are aware of the various kinds of brands available in the market.

However, moving ahead through the next survey response and analysis, it was
found that majority of people were of habitual of buying products by inspection
and by influence rather than by following the brands except on the parts of
motorbikes . This shows that no matters how much able the people are to
name the brands, they do not give the importance to the brand while making
purchase decision or they simply tend to forget or ignore this while making the
71

decision.

Looking into the other subsequent cases, most of the people were found to give
priority to quality aspects while making the purchase decision followed by the
next aspect i.e. price while doing such decision. Amazingly the remarkable
no. of the people who were found to give priority to and offers while making
the purchase decision was only on the motorbikes. However, offer may also
work out but at normal level only as shown by the findings with Motorbikes.

72

CHAPTER - V

SUMMARY, CONCLUSION AND

RECOMMENDATIONS
5.1. Summary
Industrial activities have greatly increased in Nepal over the past years. Though the
agriculture sectors have not grown out completely, the country has overwhelmingly
dependent on this particular sector. However, it there are good signs of growing
industrial involvement and development which has consequently opened a door to an
alternative support to sustain the economic life. Every year new fields of industrial
importance are being uncovered and consequently the numbers of different industrial
units are increasing. All these have offered betterment to the nation and have
introduced a very tough competition in the Nepalese market. Today, a product to be
sold successfully in the market requires proper presentation and promotion. In order
to win the heart of the consumers, one should not only have good quality but it should
be accompanied by brand names, labels, attractive packaging and lots more.

Considering the very realities of the market, this study was chosen to make an
endeavor of finding out the trends of motorcycle sales in Nepal and the brand
awareness of Nepalese consumers in terms of how much they were conscious, how
important they regarded the role of brand and objectives.

All the Nepalese consumers of urban areas were considered as the population of the
study. A sample of 80 consumers were randomly taken out of the population based on
convenience sampling basis taking into account that there is an involvement of a
number of respondents with variation in age, sec, occupation and education level, etc.
A well-structured questionnaire was the main instrument for collection of required
data. All the participants were provided with the questionnaire to give their sincere
opinion and they were collected at they filled out the forms.

The data thus collected by the means of questionnaire were presented and analyzed
via the tables and graphs to reach the findings of the study.
From the interpretation and analysis of the data, Nepalese consumers were found to
73

have carried significant level of awareness in the case of brand.

5.2. Conclusion
As discussed in the previous sections, the comparison between two products is
associated with the performance of the product in peoples mind and also brand is a
distinct identity of any particular products. It is a symbolic ambassador of the product
that induces various groups to purchase even that product was not purchased so far.
Having been said so, one can easily realize how important it is to have brand
awareness both on the part of the customers and the sellers and manufactures as well.
From the perspective of the manufacturers/ sellers, sales volume can be increased
with ease for a long time as a large no. of such groups can be found being ready to
purchase if brand awareness and loyalty can be increased. Similarly, looking from the
perspective of the customers, brand awareness and loyalty towards a brand will impart
a various advantages. As we know, it is really cumbersome to look after one product
to another to satisfy the need and wants. However, while doing so, it would demand to
invest not only money but a great chunk of time as well. And we know how valuable
time is in such a modern and competitive world these days. Let us assume a person is
in a situation to purchase a product which he had never bought in the entire life. Had
one known about a particular brand under the target product and the benefits
associated with the brand, he/she would have easily had that product under that brand
and satisfied the need/ wants by saving lots of time which further could have been
invested in other aspects. This is what can a great benefit and lots be of such as well if
one knows about a brand and also remain loyal towards it.

Upon conducting the survey, various findings appeared during the studies. They have
already been mentioned in the previous section. As mentioned in the concerning topic
of major findings, majority of people were found to be aware towards particular brand
whilst it was not so in the case of some other products. Similarly, quality and the
prices were found to have been the most influencing factors in making the purchase
decision. However, a remarkable numbers of the people were also found being not
loyal towards some products whilst they were found loyal towards some other
products.

74

5.3 Recommendation
Consumers are the sovereign power of the modern marketing world. The products
manufactured today are not the ones that the manufacturers want to sell but the ones
that the consumers want to buy. Every successful product in the modern marketing
world is and embodiment of the consumers needs, wants, prestige, preference,
satisfaction, aspiration and mental horizon. Hence, understanding the consumers
needs, wants, satisfaction, preference, aspiration, and mental horizon or understanding
the consumer in total is the secret of success today. Having the knowledge about how
much aware the consumers are with regards to consciousness of brands, importance of
brand, brand selection, and brand availability, etc. will help the manufacturers,
business firms, etc. to pay attention on such aspects and thereby placing more efforts
in pulling more no. of customers towards the target brand and making the current no.
of customers remain loyal towards the target brand.

The Nepalese consumer market is rapidly growing. Competition is being tough and
tougher together with this growth. Understanding brand loyalty is a very effective
measure to increase the competitive strength of manufacturers or sellers. Some of
major recommendations based on this study and its findings, have been explained as
follows:

Particular attention should be given in need of the motorbike. Its utmost

important to selective the proper message to the people.

Brand should be distinctive or unique in every types of product. Distinct brand

plays significant role in helping the consumer differentiate the desired product
from other products.

Comparative studies on different products should be made on continuous basis.

The sellers should have knowledge of this comparative study. It will give them
effective guideline for developing successful marketing strategy.

This is an addition to some very limited studies that have been carried out on
this subject as a part of academic curriculum. Brand comparison and brand
loyalty is an important and very interesting subject of study for university
scholars, manufacturers, and marketers.

Hence this researcher anticipates that this will encourage further researches on
75

this subject. In spite of the earnest endeavor of the researcher, this study does
have some weakness and shortcomings. These weaknesses and shortcomings are
being explained here with a consideration that they will be dealt beforehand by
anyone attempting for further research on the subject and can be overcome in
studies conducted in later days. Furthermore, the following suggestions are
suggested to all those wiling to carry out any sort of study on the related subject.

Various programs, schemes, etc. should be lunched from the institutional level
to create more and more awareness among the people to make them feel about
the brand of target products.

Special attention should be given on the customer from very age groups be it
young, teenager, child or adult. Even the master brand should e r-modified and
expanded into various sub-brands to reach all types of groups.

Repeated promotional activities via advertisements, exhibition, sponsorships,

hoarding boards, etc. should be carried out so as to make the target customer
groups to recall the brand and make them feel the brand as their own part of
their life.

Various survey programs should also be conducted in order to study how much
the customers are aware towards the target brands and also know of how much
they are loyal towards the target brands. Such programs can be conducted via
various ways depending upon the cost, time, suitability, easiness, and other
similar factors.

If it is found that there is really a considerable degree of lack of awareness

towards the target brand over the periods among the targeted groups, this should
be taken as a serious issue. Immediate steps should be taken to further re-design
new programs towards increasing the awareness among them.

Moreover, focus should be given on them for making them loyal towards the
brand if not found so. As the finings clearly showed that the factors such as
quality, and price, etc. Play vital roles in turning back the diverted customers
towards the brand, priority must be given on such factors while lunching the
programs.

Various offers can also be provided to draw the attention of the hidden groups
via various programs. One example can be to officially sponsor any particular
programs e.g. game, stage show, etc.
76

77