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A STUDY ON THE ATTRIBUTES OF BRAND LOYALTY OF

NEPALESE CONSUMER IN LCD/LEDTV PURCHASING


DECISION

Samrat Nath Yogi


Exam Roll No: 840272
PU Registration No: 2008-2-22-0148
MBA 6th Term

A Graduate Research Report Submitted to


Ace Institute of Management
Pokhara University

Submitted for the degree of


Master of Business Administration

Kathmandu
October, 2012

Acknowledgement

This Graduate Research Project entitled on A study on the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision an integral part of the
postgraduate studies at Pokhara University that has provided me an opportunity to develop
knowledge, skills and attitudes necessary for conducting individual research at a level which
will make a distinct contribution to knowledge.
This research project would not have been possible without the support of many people. First
and foremost, I offer my sincerest gratitude to my supervisor Mr. Sujan Raja Shrestha,
Faculty of Ace Institute of Management who has abundantly helped and has supported me
throughout my project with his patience, knowledge and guidance. I attribute the level of my
Masters degree to his encouragement, guidance and effort from the initial to the final level,
which has enabled me to develop an understating of the subject and without him this thesis,
too, would not have been completed.
Deepest gratitude is also due to Faculty of Ace Institute of Management, Mr. Parvat Uprety
without his guidance and assistance on the research design and data presentation and
analysis section of this research project would not have been completed.
Special thanks to all my graduating friends, especially Aayush Rai, Asim Aryal, Bijesh Aryal,
Dinika Gupta, Deepak Luitel, Dhirendra Shrestha, Krishna Hari Gautam, Manjil Bista, Prajwal
Khanal, Satyendra Mani Tripathi, and Suraj Shrestha for helping me in meeting the samples
for the study by filling up the questionnaires and by providing their invaluable assistance
throughout the project.
I would also like to express note of thanks to all the respondents who are the buyers of
LCD/LED Television of Nepalese market. I am also indebted to Mr. Ashish Tiwari, Director of
Ace Institute of Management. Ltd. for providing me the platform for conducting focused group
discussion and also for helping me to collect the opinions of the participants and providing
views regarding the Nepalese Television market.
Lastly, I wish to express my love and gratitude to my beloved families for their understanding
through the duration of my research project.

Regards,
Samrat Nath Yogi

ii

Certificate of Authorship

I hereby declare that this submission is my own work and that, to the best of my knowledge
and belief, it contains no material previously published or written by another person nor
material which to a substantial extent has been accepted for the award of any other degree of
a university or other institution of higher learning, expect where due acknowledgements.

Samrat Nath Yogi


th

MBA 6 Term
Ace Institute of Management

iii

Approval Sheet
Recommendation for Approval

This GRP report prepared and submitted by Samrat Nath Yogi in partial fulfillment of the
requirements for the degree of Master of Business Administration has been supervised by me
and recommend it for acceptance.

--------------------------------------------------------------Name and Signature of the Adviser:


Mr. Sujan Raja Shrestha
th

Date: 28 October 2012

Acceptance of the External Examiner


I approve the GRP submitted by Samrat Nath Yogi. The grade sheet has been submitted to
the Dean, School of Business, Pokhara University through the college on a separate
evaluation sheet.

----------------------------------------------------------Name and Signature of the External Examiner:

th

Date: 28 October 2012

Viva Examination
The candidate has successfully defended the GRP. We recommend it for acceptance. The
grade sheet has been submitted to the Dean, Pokhara University through the college on a
separate evaluation sheet.
GRP Adviser

External Examiner

Other members

Date

iv

Table of Contents
Acknowledgement ....................................................................................................................... i
Certificate of Authorship ............................................................................................................. ii
Approval Sheet ...........................................................................................................................iii
List of Tables ............................................................................................................................ viii
List of Figures ............................................................................................................................ ix
LIST OF ACRONYMS ................................................................................................................ x
Executive Summary .................................................................................................................. xi
CHAPTER 1 ............................................................................................................................... 1
INTRODUCTION........................................................................................................................ 1
1.1 Background ...................................................................................................................... 1
1.2 Statement of the problem ................................................................................................. 5
1.3 Objectives of the study ..................................................................................................... 5
1.4 Significance of the study .................................................................................................. 6
1.5 Limitation of the study ...................................................................................................... 7
1.6 Research questions or Hypothesis .................................................................................. 7
1.7 Operational Definitions and Assumptions ........................................................................ 8
1.7.1 Operational Definitions .............................................................................................. 8
1.7.2 Assumptions: ............................................................................................................. 9
1.8 Organizational structure of the study ............................................................................... 9
CHAPTER 2 ............................................................................................................................. 11
LITERATURE SURVEY AND THEORETICAL FRAMEWORK ............................................... 11
2.1 Review of Literature ....................................................................................................... 11
2.2 Market/Marketing: Meaning & concept .......................................................................... 11
2.3 Marketing Mix: Concept ................................................................................................. 12
2.3.1 Product: Concept..................................................................................................... 12
2.3.2 Price and Pricing: Meaning & Concept ................................................................... 15

2.3.3 Promotion: Meaning & concept ............................................................................... 16


2.3.4 Place: Meaning & concept ...................................................................................... 17
2.4 Advertising and Other Promotional Activities: Concept ................................................. 17
2.5 Consumer choice behavior: ........................................................................................... 18
2.6.1 Brand Loyalty: Perpetual Background .................................................................... 22
2.6.2 Variables are taken into consideration .................................................................... 22
2.7 Brand Choice ................................................................................................................. 23
2.7.1 Brand choice sequences ......................................................................................... 23
2.7.2 Proportion of purchase ............................................................................................ 23
2.7.3 Repeat purchase probabilities ................................................................................ 24
2.7.4 Brand preference over time .................................................................................... 24
2.8 Brand switching .............................................................................................................. 24
2.9 Brand loyalty Correlation ................................................................................................ 25
2.10 Brand loyalty models .................................................................................................... 26
2.10.1 Zero order models (Bernoulli Model) .................................................................... 26
2.10.2 Dynamic Bernoulli Model ...................................................................................... 27
2.10.3 Probability diffusion model .................................................................................... 27
2.10.4 New Trier Model .................................................................................................... 27
2.10.5 Markors First Order Model ................................................................................... 27
2.11 Researches on consumer behavior under Tribhuvan University Thesis ..................... 28
CHAPTER 3 METHODOLOGY ............................................................................................... 30
3.1 Research Plan and Design ............................................................................................ 30
3.1.1 Descriptive research Design ................................................................................... 31
3.1.2 Correlation research design: ................................................................................... 32
3.1.3 Causal-comparative research design: .................................................................... 32
3.1.4 Inferential Research Design .................................................................................... 32
3.2 Description of the Sample .............................................................................................. 32
3.2.1 Sampling Procedure................................................................................................ 32
3.3 Instrumentation: ............................................................................................................. 33
3.4 Data Collection Procedure and Time Frame ................................................................. 33
3.5 Validity and Reliability .................................................................................................... 34

vi

3.6 Analysis Plan .................................................................................................................. 35


CHAPTER 4 RESULT AND DISCUSSION.............................................................................. 36
4.1 Presentation of results ................................................................................................... 36
4.2 Descriptive Analysis ....................................................................................................... 36
4.2.1 Analysis of sex: ....................................................................................................... 36
4.2.2 Analysis of Age Group: ........................................................................................... 37
4.2.3 Analysis of Family Size: .......................................................................................... 38
4.2.4 Analysis of Education Level: ................................................................................... 39
4.2.5 Analysis of Income Level: ....................................................................................... 40
4.2.6 Analysis of importance of Brands of durable goods ............................................... 41
4.2.7 Consumers brand in LCD and LED Television: ..................................................... 42
4.2.8 Most Favorite Brand: ............................................................................................... 43
4.2.9 Reasons for being favorite Brand: .......................................................................... 44
4.2.10 Use of Brand in purchasing LCD and LED TV: ..................................................... 45
4.2.11 Factors affecting while purchasing LCD and LED TV: .......................................... 47
4.2.12 Brand loyalty of Nepalese consumers: ................................................................. 49
4.2.13 Ability to judge the brand: ..................................................................................... 51
4.2.14 Deciding particular Brand before buying: .............................................................. 52
4.2.15 Consumers having alternative brands: ................................................................. 53
4.2.16 Favorite brand of other family members: .............................................................. 54
4.2.17 Further Cross Tabulation: ..................................................................................... 55
4.2.18 Factors causing Brand switching: ......................................................................... 61
4.2.19 Suggestions: ......................................................................................................... 62
4.3 Type of Statistical Tests Performed ............................................................................... 63
4.4 Inferential Analysis and Discussion ............................................................................... 63
4.4.1 Test of Hypothesis of dependency between Age group of a consumer and brand:
......................................................................................................................................... 63
4.4.2 Test of Hypothesis of dependency between Income level of a consumer and brand:
......................................................................................................................................... 63
4.4.3 Test of Hypothesis of dependency between Education level of a consumer and
brand: ............................................................................................................................... 64

vii

4.4.4 Test of Hypothesis of dependency between Family size of a consumer and brand:
......................................................................................................................................... 64
CHAPTER 5 ............................................................................................................................. 65
SUMMARY AND CONCLUSION ............................................................................................. 65
5.1 Summary of Findings ..................................................................................................... 65
5.2 Conclusion and Recommendation: ................................................................................ 68
5.2.1 Conclusion: ............................................................................................................. 68
5.2.1 Recommendation: ................................................................................................... 71
References: .............................................................................................................................. xv
Appendices ............................................................................................................................. xvii

viii

List of Tables

Table No. 1: Sex of the consumers.......................................................................................... 36


Table No. 2: Age Group of consumers .................................................................................... 37
Table No. 3: Family size of the consumers .............................................................................. 38
Table No. 4: Education of the respondents ............................................................................. 39
Table No. 5: Income of the respondents .................................................................................. 40
Table No. 6: Importance of Brand ............................................................................................ 41
Table No. 7: Consumers' Brand in LCD and LED Television .................................................. 42
Table No. 8: Most Favorite Brand ............................................................................................ 43
Table No. 9: Reasons for favorite brand .................................................................................. 44
Table No. 10: Use of Brand in purchasing products ................................................................ 45
Table No. 11: Factors affecting while purchasing LCD and LED TV ....................................... 47
Table No. 12: Degree of Loyalty .............................................................................................. 49
Table No. 13: Ability to judge the brand ................................................................................... 51
Table No. 14: Do you decide any brand before buying? ......................................................... 53
Table No. 15: Consumers having alternative brands in the LCD and LED TV market ............ 54
Table No. 16: Favorite brand of other family members ........................................................... 55
Table No. 17: Sex and Brand ................................................................................................... 56
Table No. 18: Age and Brand .................................................................................................. 56
Table No. 19: Income and Brand ............................................................................................. 58
Table No. 20: Education Level and Brand ............................................................................... 59
Table No. 21: Family size and Brand ....................................................................................... 60
Table No. 22: Factors causing Brand Switching ...................................................................... 61

ix

List of Figures

Figure No. 1: Sex of the respondents ...................................................................................... 37


Figure No. 2: Age group of consumers .................................................................................... 38
Figure No. 3: Family size of the consumers............................................................................. 39
Figure No. 4: Education of the respondents ............................................................................ 40
Figure No. 5: Income of the respondents................................................................................. 41
Figure No. 6: Consumers' Brand in LCD and LED Television ................................................. 42
Figure No. 7: Most favorite brand ............................................................................................ 43
Figure No. 8: How do consumers buy LCD and LED Television? ........................................... 47
Figure No. 9: If the favorite brand is not available ................................................................... 50
Figure No. 10: Ability to judge the brand.................................................................................. 52
Figure No. 11: Consumers having alternative brands in the LCD and LED TV....................... 54
Figure No. 12: Factors causing Brand Switching ..................................................................... 62

LIST OF ACRONYMS

E.g.

Example

i.e.

That is

CRT

Cathode Ray Tube

GDP

Gross Domestic Product

GRP

Graduate Research Project

LCD

Liquid-crystal display televisions

MBA

Master of Business Administration

PPP

Purchasing Power Parity

PU

Pokhara University

Rs

Rupees

Sq Km

Square Kilometer

TU

Tribhuwan University

TV

Television

xi

Executive Summary

The Graduate Research Report entitled to A study on the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision is submitted to Ace Institute of
Management that is prepared for the partial fulfillment of the requirement of the Masters of
Business Administration affiliated to Pokhara University.
Marketing is selling through advertising which means selling and advertising are the strongest
parts of marketing for the people. Marketing helps an organization to find out what the
customers want. It also helps to decide what products are to be made. The decision is carried
on after research in the market.
Production is the prime activity of every industry and successful marketing of the product is
the ultimate goal. Todays marketing is characterized by globalization, technological changes,
and strong competition. Successful marketers are those who deliver what customers are
willing to purchase as well as according to their ability to purchase. For this reason, marketers
today conduct many researches to study consumers buying decisions. Once it is understood,
marketers become able to predict and shape their marketing strategies accordingly. Without
doubt, marketers who understand markets and consumer behavior have great competitive
advantage over other competitors. Therefore, it is obvious that a production organization or
manufacturer must determine the needs, wants of their customer first, and then brings the
product in the market accordingly.
Brand loyalty is the consumers conscious or unconscious decision expressed through
intention or behavior to repurchase a brand regularly. It occurs because the consumer
perceives that the brand offers the right product features, image or level of quality at the right
price. Consumer behavior is habitual because habits are safe and familiar. In order to create
brand loyalty, marketers must break consumer habits, help them acquire new habits and
reinforce these habits by reminding consumers of the value of their purchase and encourage
them to continue purchasing those products in the future. Competition is the main
characteristic of modern marketing. Competition has been very tough in the Nepalese
consumer market together with increase in the number of units of industries producing
different types of consumer goods. On the one hand, Nepal's own industries are producing
different types of products and on the other hand, products of different types are being
imported from other countries. Today, so many brands of even a specific product category are
being sold in the Nepalese market. Every producer or marketer is trying their best to prove
their product to be the best. This can be observed from the promotional efforts like TV,
Advertising, Radio Advertising, Newspaper advertising, Posters, Hoarding boards, personal
selling and other promotional tools etc. calling up to buy their product. After all, every
producer or marketer wants to develop a market share highly loyal to his product or brand.

xii

These circumstances prevalent in Nepalese market signify the need of understanding brand
loyalty behavior of the consumer.
The Nepalese TV market has seen significant transitions in last one decade. The market is
still dominated by CRT TV is gradually shifting towards LCD TVs and is now evolving towards
LED TVs. Consumer's demand for multi-functional services, on-going TV network digitization
and increasing internet penetration is helping smart TV market to grow in Nepal.
Televisions are now available in every price range and with an immense variety to choose
from. Coming within an affordable budget range, it is becoming easy for consumers to be in
tune with their needs. Television sets ranges from anything from 14 to 50 and consumers
have a variety of choices, from color TVs to LCDs, LEDs and complete home theatre system.
The major objectives of this study is to understand the importance of durable goods in
Nepalese market, to analyze the most preferred and favorite brand of LCD/LED Television,
their reasons behind preferring those brands, to analyze the brand consciousness and
awareness of LCD/LED Television in Nepalese consumers, to find out the various factors
while purchasing LCD/LED Television, and to find out the dependency between Sex and
brand, Income and brand, Education level and Brand and Family size and brand.
The applied data in this study are mainly primary in nature. Therefore, the multiple research
designs were employed in this study for accomplishing different objectives. Hence, the
descriptive, well as inferential research designs have, therefore, been included in the present
study.
Questionnaire and the survey has become important tool for accomplishing the major
objective of this study. 200 questionnaires were distributed to the respondents who have got
Television and out of them 120 questionnaires were retrieved from the consumers who have
LCD/LED Television. As per the nature of this research, the entire focus is on primary data in
the form of list of questionnaire has been used to achieve the research objectives.
Under the study, descriptive statistics were used to simply describing what is and what the
data shows regarding factors affecting the purchasing decision of different brands of
LCD/LED Televisions. For further explanation, the data have been presented and analyzed
through the types of graph and tables. Under graphical presentation of the data, pie chart and
bar diagram has been used while the frequency table (univariate) and cross tabulations
(bivariate and multi variate) are used for the tabular presentation of data.
Inferential Statistics investigate questions, models and hypotheses were also used in this
study. For the study, this statistics has been used to make inferences from our data to more
general conditions and test whether there is dependency between Sex and brand, Income
and brand, Education level and Brand and Family size and brand. For this, Chi Square Test
Model was used.

xiii

After the systematic collection of data for the fulfillment of the objectives of the study and after
having their interpretation and analysis, this study has come up with various conclusions
regarding Nepalese LCD/LED Television Market, current scenario of most preferred brand in
LCD/LED Television, consumer's level of brand consciousness and awareness.
The conclusions made by this study are; Nepalese consumers give high importance to brand
in consumer durable goods. Another finding of the study is that the consumers mostly prefer
Samsung, Sony and LG LCD/LED brand. One of the findings of the study is that either
reasonable price or good function is the main reason behind being the most favorite brand. It
has also been found out that consumer preferring Samsung and Sony purchase by brand
rather than inspection. It has also been found out that the main factor influencing for
purchasing LCD and LED Television is advertising, however, a new brand and price of a
particular brand also affects in a great deal. Similarly, it has been found out that Consumer
preferring Samsung, Sony and LG are more brand loyal in comparison to Phillips and Haier
brand. Brand awareness of the Nepalese consumers regarding LCD/LED Television market is
found to be high. Most of the consumers have the knowledge of alternative brand in the LCD
and LED Television market. It has been also found out that the main reason for brand
switching is due to New innovation, and dissatisfaction. From the Chi-square testing, it has
been found out that there is no dependency between Age group of a customer and brand
however, there is dependency between Income level of a customer and brand, Education
level of a customer and brand and there is also dependency between Family size of a
customer and brand
Based on the theoretical and empirical works reviewed, research methodology adopted and
major findings of the study; and the suggestions provided by the consumers, the study
deserves to provide some recommendations to the various suppliers of different brands of
LCD/LED Televisions. Some of the recommendations are: consumers preferring LCD/LED
Television of Samsung, Sony and LG brands are found to be loyal in comparison to other
brands. So the company should focus on the improvements of attracting sales service. As the
research shows that the majority of the respondents preferring their brands belong to (30-40
Years) and it has been also found out that most of the consumers preferring their brand
belong to having monthly income level of (20-40 Thousand), also, most of them belong to
education of Masters Level, and most of the respondents preferring different brands belong to
the family size of (5-7 members). So marketers should fix up the suitable marketing mix
strategy which can captivate the attention and motivation of the young consumers Marketers
should focus on young educated in their marketing activities. The majority of the consumers
switch brands due to new innovation. So the marketer should focus more in the existing
product of the same brand. The respondents are aware of different brands available in the
market. So the marketers should focus more on their own products by giving some extra
scheme than the competitor's products. It is apparent that people are price sensitive. So the
marketers should focus on the competitive price.

CHAPTER 1
INTRODUCTION

1.1 Background
Nepal, officially the Federal Democratic Republic of Nepal, is a landlocked sovereign located
in South Asia. With an area of 147,181 square kilometers (56,827 sq mi) and a population of
approximately 27 million (and 2 million absentee workers living abroad), Nepal is the world's
93rd largest country by land mass and the 41st most populous country. It is located in
the Himalayas and bordered to the north by the People's Republic of China, and to the south,
east, and west by the Republic of India. Kathmandu is the nation's capital and largest
metropolis. The total GDP (PPP) is estimated to be $39.899 billion and Per capita to be
$1388.383 in 2012.
In a nutshell, marketing is selling through advertising which means selling and advertising are
the strongest parts of marketing for the people. Marketing helps an organization to find out what
the customers want. It also helps to decide what products are to be made. The decision is
carried on after research in the market.
Production is the prime activity of every industry and successful marketing of the product is the
ultimate goal. Todays marketing is characterized by globalization, technological changes, and
strong competition. Successful marketers are those who deliver what customers are willing to
purchase as well as according to their ability to purchase. For this reason, marketers today
conduct many researches to study consumers buying decisions. Once it is understood,
marketers become able to predict and shape their marketing strategies accordingly. Without
doubt, marketers who understand markets and consumer behavior have great competitive
advantage over other competitors. Therefore, it is obvious that a production organization or
manufacturer must determine the needs, wants of their customer first, and then brings the
product in the market accordingly.
According to Prof. Kotler and Armstrong, Marketing is a social and managerial process
whereby individuals and groups obtain what they need and want through creating offering and
exchanging products and value with others.
Another scholar Prof. William J. Stanton defines marketing as a total system of business
activities designed to plan, price, promote and distribute wants satisfying products to target
markets to achieve organizational objectives.
Similarly the American Marketing Association defines marketing as the process of planning and
executing this conception, pricing, promotion and distribution of ideas, goods and services to
create exchange that satisfy individuals and organizational goals.
Hence, above definitions of marketing suggests that it consists of some activities consisting of
study of consumer needs, products, price, place and promotion to facilitate the exchange that

satisfies individual as well as organizational needs within the social and marketing environment
prevailing today. The consumer/customer gets the product he/she wants and the
manufacturer/marketer gets the profit. This highlights the importance of the product as the
whole process of marketing. Product is always an important element of marketing mix.
Nowadays, most of the consumers buy products with the help of brand rather than by inspecting
the products. It means, successful marketing of a product means successful marketing of the
brand of that product. Prof. Kotler defines a product is anything that can be offered to market to
satisfy a want or need. After producing a product, identification of the product should be given;
for this brand is used to identify the product. Branding constitutes an important part of a product.
So, building brand requires a great deal of time, money, promotion, packaging, etc. Prof. Kotler
further says, A brand is a name or mark intended to identify the product of one seller or group
of sellers and differentiate the product from competing products. So, a brand is not only a name
given to a product but also a technique by which the quality or the product of various producers
are differentiated. So, every manufacturer or marketer is trying its best to make the consumers
develop a positive attitude towards the brand of their product and buy that brand repeatedly.
Simply, brand loyalty means a consumers strong belief on a particular brand and, as a result,
an intention to repurchase the same brand and buys the same brand repeatedly.
A consumers buyer behavior is influenced by four major factors; cultural, social, personal and
psychological factors. These factors cause consumers to develop product and brand
preferences. Although many of these factors cannot be directly controlled by marketers,
understanding of their impact is essential, as market mix strategies can be developed to appeal
to the preferences of the target market, while purchasing any product, a consumer goes through
a decision process. This process consists up to five stages: problem recognition, information
search, evaluation of alternatives, purchase decision and post purchase behavior. The length of
this decision process will vary ranging from shorter routine response behavior to limited problem
solving and a more comprehensive extensive problem solving. A consumer may not act isolated
in the purchase but may be influenced by any of several people in various roles.
Brand Loyalty depends upon several factors such as a products utility value, brand association,
nostalgia and consumer behavior. People have preferences from one brand over the other with
similar product benefits. The Nepali populace too has started to become brand conscious and
the presence of various multinational brands to choose from has made brand loyalists consume
their favorite brands. Especially, the youngsters seem to be hooked to their favorite brands and
cannot do without them. An example could be the Apple iphone with every other person aspiring
to carry it. Gadgets such as laptops from Sony or mobile handsets from Samsung are similar
examples. Clothing brands such as Levis, Benetton, Giordano and many others are popular
among the brand conscious consumers in Nepal.
To understand brand loyalty, the consumer buying behavior should also be considered. There
are six stages in the buying process: trigger, consider, search, choose, buy and experience.

3
Trigger is the first and most important process as this takes place when a consumers mind
clicks for a need of a product.
Brand loyalty is the consumers conscious or unconscious decision expressed through intention
or behavior to repurchase a brand regularly. It occurs because the consumer perceives that the
brand offers the right product features, image or level of quality at the right price. Consumer
behavior is habitual because habits are safe and familiar. In order to create brand loyalty,
marketers must break consumer habits, help them acquire new habits and reinforce these
habits by reminding consumers of the value of their purchase and encourage them to continue
purchasing those products in the future. Competition is the main characteristic of modern
marketing. Competition has been very tough in the Nepalese consumer market together with
increase in the number of units of industries producing different types of consumer goods. On
the one hand, Nepal's own industries are producing different types of products and on the other
hand, products of different types are being imported from other countries. Today, so many
brands of even a specific product category are being sold in the Nepalese market. Every
producer or marketer is trying their best to prove their product to be the best. This can be
observed from the promotional efforts like TV, Advertising, Radio Advertising, Newspaper
advertising, Posters, Hoarding boards, personal selling and other promotional tools etc. calling
up to buy their product. After all, every producer or marketer wants to develop a market share
highly loyal to his product or brand. These circumstances prevalent in Nepalese market signify
the need of understanding brand loyalty behavior of the consumer.
The domestic television market is still dominated by CRT television sets, enjoying market share
of around 80 percent. But people are gradually upgrading to LCD or LED sets, and the demand
is growing accordingly said Binay Tripathi, deputy general manager of Him Electronics. Sales
of LCD or LED sets are growing with every passing year, while the sales of CRT are slowing
down.
The LCD/LED technology was considered expensive when the LED sets started entering the
market. But LCD/LED sets are becoming affordable as manufacturers are slashing prices. Till a
couple of years ago, a 32-inch LED TV used to cost Rs 100,000. Now the price has come down
in range of Rs 40,000-50,000, said Tripathi.
Televisions are now available in every price range and with an immense variety to choose from.
Coming within an affordable budget range, it is becoming easy for consumers to be in tune with
their needs. Television sets ranges from anything from 14 to 50 and consumers have a variety
of choices, from color TVs to LCDs, LEDs and complete home theatre system.
Brands like SAMSUNG and SONY are popular in the country and are well-known international
brands to begin with, catering mainly to the upper class segment of the country. LG is another
brand that is creating waves in Nepal, known for innovative styles and designs.
We can follow this article to get some knowledge about the competition of TV market in Nepal.

March 28--KATHMANDU (THE KATHMANDU POST/ANN) -- New models of LED or smart TVs
are launched every two months in Nepal. This has enabled Nepali customers to get their hands
on the latest products launched in the international market without waiting too long.
Samsung's latest smart TV, the ES800, will hit the Nepali market by May. The most advanced
smart TV from the South Korean electronics offers voice and gesture controls and supports 23
languages.
Samsung's local dealer Him Electronics also plans to launch Samsung's small-size (22-inch)
Smart TV soon. "This TV will be targeted at people searching for a small TV with internet facility
at an affordable price," said Binay Tripathi, sales manager at Him Electronics.
Same is the story at CG Electronics that markets LG products. CG Electronics says upgraded
versions of LG LCD, LEDs and smart TVs will be hitting shelves this year. CG will also launch
Smart and 3D TVs from Japanese manufacturer Toshiba by June. "These new Toshiba
products will be targeted at people looking for high-end products," said Ramesh Shrestha,
general manager at CG Electronics. "New Toshiba TVs are expected to strengthen our product
line-up and offer more choice to customers."
SG Global, authorised distributor of Sharp, is adopting an aggressive approach to outpace the
cutthroat competition in the market. "Since we are eyeing aggressive growth, the local market
will see a new range of Sharp TVs in every three month," said Akhil Gupta, director at Shankar
Group.
SG Global will introduce a 60-inch smart LED TV loaded with the 3D viewing technology within
the next 10 days. This new TV from Sharp is likely to be priced at around Rs 375,000. The
company is also planning to introduce 70- to 80-inch LCD and LED TVs soon. "There are many
people who want to enjoy movies and sports in big screen," Gupta said.
In budget category, there are line-ups from Yasuda, Daewoo, Mitashi and Hisense. Triveni
Byapar, authorised distributor of Yasuda and Daewoo, will launch a new range of Yasuda HD
TV and 3D TV. "There will be a full range of Yasuda HD and 3D TVs in the market this year,"
said Siddhartha Singhania, finance head at Triveni Byapar.
Triveni Byapara is also coming up with a new range of 3D TV and smart TVs from Daewoo. The
company, according to Singhania, will focus on slimmer variants of Daewoo LCD and LED TVs.
"When LCD and LED TVs were launched first, many said the products would not succeed due
to the price factor. But people eventually started purchasing these products and the price
difference is narrowing down. Therefore, our focus in 2012 will remain at introducing latest
devices at reasonable price," said Singhania.
Mitashi, the new entrant in the Nepali market, will come up with a 32-inch LED TV within next
two-three weeks. "We are looking for extending our product portfolio in the LED segment," said

Nitin Khetan, managing director of Tara Chand and Sons, authorised importer of Mitashi. By the
year-end, the company will introduce 19-inch, 22-inch and 42-inch LED TVs.
Only few researches have been conducted so far in Nepal to find out how consumers behave
with different brands of product available in the market.

1.2 Statement of the problem


In Nepal, population is ever increasing. This has resulted in the increase of demand of different
products. Due to this reason, many industries are being established in Nepal. In the present
condition, the world has become narrow by the development in transportation, communication,
political awareness, etc. Now people can order and buy any kind of goods from their room.
Advertisement and Internet shopping have revolutionized the marketing and sales within a short
span of time. Today, one can use any product that is produced in another corner of the world.
Now, consumers are not compelled to buy any particular product rather they are quite free to
choose anything they think best.
The Nepalese TV market has seen significant transitions in last one decade. The market is still
dominated by CRT TV is gradually shifting towards LCD TVs and is now evolving towards LED
TVs. Consumer's demand for multi-functional services, on-going TV network digitization and
increasing internet penetration is helping smart TV market to grow in Nepal.
Therefore, the basic problem of this study is to understand the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision.
Mainly the study will examine the following questions:
1. What are the various factors while purchasing LCD/LED Television?
2. Are the consumers brand consciousnesses about LCD/LED Television in Nepalese Market?
3. Which brands are the most preferred and favorite brands of LCD/LED Television, and their
reasons behind preferring those brands.
4. Is there any dependency between Sex and brand, Income and brand, Education level and
Brand and Family size and brand?

1.3 Objectives of the study


Since our main purpose is to study understand the attributes of Brand Loyalty of Nepalese
consumer in LCD/LEDTV purchasing Decision, this study includes the following specific
objectives:
1. To understand the importance of durable goods in Nepalese market.
2. To analyze the most preferred and favorite brand of LCD/LED Television, their reasons
behind preferring those brands.

3. To analyze the brand consciousness and awareness of LCD/LED Television in Nepalese


consumers.
4. To find out the various factors while purchasing LCD/LED Television, and
5. To find out the dependency between Sex and brand, Income and brand, Education level
and Brand and Family size and brand.

1.4 Significance of the study


In the era of cut-throat competition successful marketing of products rely on the demand and
understanding of consumers taste, preferences and loyalty. The significance and importance of
this study is conducted mainly to understand the attributes of Brand Loyalty of Nepalese
consumer in LCD/LEDTV purchasing Decision. It can be dealt in the following points:1. The manufacturers and marketers of Kathmandu will be highly benefitted by this study.
They can use the findings of the study as the guideline for making marketing strategies for
their products so that they can achieve success.
2. This study will help to know the consumer behavior on their products. Hence, manufacturers
and marketers can decide the advertisement policy, consumer' response to the price and
consumers perception about their products.
3. This study will help in segmenting the market for the suppliers in Kathmandu for the better
sales of LCD/LED Televisions
4. This study will support suppliers and marketers in an effective way to understand the level
of competition
5. This study can be helpful in planning marketing mix for the marketers
6. Similarly, this study will be valuable reference to the scholars and researchers who are
interested in conducting further researches about Brand Loyalty.
Nowadays a brand has become so strong that hardly anything goes unbranded. Even a
commodity worth Re.1 has a package with distinctive symbols of manufacturers. Successful
marketing requires proper branding, labeling and packaging. Therefore producing a product is
not sufficient for successful marketing. In fact, if we observe todays consumers behavior
closely, we can find that most of products are bought by brand rather than inspection. This is the
reason that every marketer and manufacturers are trying their best to develop brand loyalty
towards their particular brand of products.
It is quite reasonable that brand and loyalty be defined separately. So, as to understand and
relate these terms are the context of our study. Brand has certain image in the market. Brand
may be taken as an easy way for consumers to identify a product or service. They, in fact,
insure purchasers that they (the buyers) are getting comparable quality when they reorder for
the same next time. Therefore, it is obvious that consumers are made to believe by means of
branding that they should prefer a particular brand to others available in the market.

In the case of loyalty, it may be said that loyalty refers to the specific preference over the
products available in the market. It is also behavioral response of the consumer expressed over
time by some decision-making unit with special reference to one or more alternative brands. So
brand loyalty leads to strong brand preference and repeat purchase behavior. Such brand
preference gives extra benefits to companies even to the extent of high price charging because
consumers do not mind to pay even more for their preferred brand. Hence, it is a fact that brand
loyalty is created in the mind if the consumer has some strong positive attitudes towards a
brand making him buy it repeatedly. When this action of buying same brand repeatedly
happens, brand loyalty occurs among the consumers. So, we can say brand encourages
repetitive purchase of products. This promotes brand loyalty among customers. Organizations
can achieve stable market share. They get protrusion from competition and greater control in
planning the marketing mix. They decrease importance of price.
This study is therefore conducted mainly to measure the attributes of brand loyalty of Nepalese
consumers in LCD/LED purchasing decision.

1.5 Limitation of the study


This study is simply a partial fulfillment of MBA Degree and has to be finished within a short
span of time. Therefore, it is natural to have several limitations. This can weaken the objectives
of this study. Some of the limitations are as follows:
1. Only branded LCD and LED T.V. goods are included in this study. Conclusion derived may
not be necessarily applicable to other products.
2. Sample size of this study is all together 120 respondents selected.
3. This study is totally based on the views and responses received from consumers of
Kathmandu only. The findings of the study may not be applicable for other products and
other parts of the country.
4. In this research most data is primarily in nature.

1.6 Research questions or Hypothesis


Hypothesis or a research question is a statement of the relationship between two or more
variables. Hypothesis statement should be able to show the relationship between the variables.
The test of hypothesis shot out the fact whether the different between computed statistic and
hypothetical parameter is significant or not. It also prefer the clear implication for the testing the
started relations. The topic of this research strongly holds the criterion of the hypothesis.
There are certain research questions that are attempted to test through this study after
collecting the primary. Those research questions are;
1. Is there any dependency between Age group of a consumer and brand?
2. Is there any dependency between Income level of a consumer and brand?
3. Is there any dependency between Education level of a consumer and brand?

4. Is there any dependency between Education level of a consumer and brand?

Lists of Hypothesis for the study:


1. Null Hypothesis (HO): There is no dependency between Age group of a consumer and brand
Alternative Hypothesis (H 1): There is dependency between Age group of a consumer and
brand
2. Null Hypothesis (HO): There is no dependency between Income level of a consumer and
brand Alternative Hypothesis (H1): There is dependency between Income level of a consumer
and brand
3. Null Hypothesis (HO): There is no dependency between Education Level of a consumer and
brand
Alternative Hypothesis (H 1): There is dependency between Education level of a consumer and
brand
4. Null Hypothesis (HO): There is no dependency between Family size of a consumer and
brand
Alternative Hypothesis (H 1): There is dependency between Family size of a consumer and
brand

1.7 Operational Definitions and Assumptions


1.7.1 Operational Definitions
Television Set:
A television set is a device that combines a tuner, display, and speakers for the purpose of
viewing television. Television sets became a popular consumer product after the Second World
War, using vacuum tubes and cathode ray tube displays. The addition of color to broadcast
television after 1953 further increased the popularity of television sets, and an outdoor antenna
became a common feature of suburban homes. The ubiquitous television set became the
display device for the first generation of home computers.
Modern television sets incorporate liquid-crystal flat-screen displays, solid-state circuits,
microprocessor controls and can interface with a variety of video signal sources, allowing the
user to view broadcast and subscription cable TV signals or Satellite television, recorded
material on DVD disks or VHS tape, or less common devices such as home security systems,
and even over-the-air broadcasts received through an indoor or outdoor antenna.

LCD TV: Liquid-crystal display televisions (LCD TV) are television sets that use LCD display
technology to produce images. LCD televisions are thinner and lighter than cathode ray
tube (CRTs) of similar display size, and are available in much larger sizes. When manufacturing
costs fell, this combination of features made LCDs practical for television receivers.

Age Group: Different age groups have different choices attached to LCD/LED Television.

Education Level: Education level is also important for a consumer. With education of higher
secondary will go for more features in LCD/LED Television.

Monthly Income: This is also important as consumer with high income will choose for more
features in LCD/LED Television.

Price: It is another important factor as without looking price of LCD/LED Television, no one will
purchase.
Design: It is another attribute that play major role in selection of LCD/LED Television, so it cant
be excluded.
Brand Name: Brand name is another most important attributes, buyer will on go for known brand
like, LG, Samsung, Sony, Phillips, Haier, etc.

1.7.2 Assumptions:
For the significance of the test, the significance level is assumed to be 10% for all the Chisquare tests.

1.8 Organizational structure of the study:


The study will be organized into five chapters. The descriptions and the contents of those
chapters are outlined here under;
Chapter One: Introduction
This chapter includes General background, Statement of the problem, Objectives of the study,
and the Organization of the study.
Chapter Two: Conceptual Framework and Review of Literature
This chapter incorporates theoretical or the conceptual framework of the study. It basically
consists of different view points from important articles, reports and periodicals that have been
officially published to support the whole idea of this thesis. It will focus more towards reasons for
the situation that all victims are facing right now.

10

Chapter Three: Research Methodology


This chapter reflects the methodologies that are applied while conducting research for the study.
It highlights Research design, Nature and sources of data, Selection of enterprises, Method of
analysis and the Limitations of the study.
Chapter Four: Presentation and Analysis of Data:
This chapter consists of presentation and analysis of data by applying statistical and financial
tools to show the probable outcome of research. This will also provide concrete facts and
figures which will help in meeting the core objectives of this research.
Chapter Five: Summary and Conclusion and Recommendations:
This section includes the conclusion of the entire research which is backed up by probable
recommendations. It will be summarizing the research in such a manner that whole content of
the findings, literature review etc. in a short and special way.
Hence, this chapter was reflecting basic introduction of the study, meaning of brand loyalty,
ongoing scenarios in the world in LCD/LED TV market, statement of the problem, objectives,
limitations and the significance of the study, research questions for the study and operational
definitions with assumptions and organizational structure of the study. Now the study will try to
review some of the literatures along with the theoretical framework in the next second chapter.

11

CHAPTER 2
LITERATURE SURVEY AND THEORETICAL FRAMEWORK

2.1 Review of Literature


A literature review is a body of text that aims to review the critical points of current knowledge
and or methodological approaches on a particular topic. Literature reviews are secondary
sources, and as such, do not report any new or original experimental work.
Most often associated with academic-oriented literature, such as thesis, a literature review
usually precedes a research proposal 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 future
research that may be needed in the area.
A well-structured literature review is characterized by a logical flow of ideas: current and
relevant references with consistent, appropriate referencing style: proper use of terminology:
and an unbiased and comprehensive view of the previous research on the topic.
2.2 Market/Marketing: Meaning & concept
The market is the place where buyer and seller meet and function, goods & services
offered, for sale and transfer for ownership of little occur.
A market consists of all the potential customers sharing a particular need or want that can
be satisfied through the exchange and distribution. The market depends on the number of
persons who exhibit the need have resources that interest others and are willing to offer
these resources in exchange for what they want. (Kotler Phlip & Armstrong Gary, Principles
of Marketing, 1999, p. 215)
A market will be defined as people with needs to satisfy, the money to spend and the
willingness to spend it. Thus, in the market demand for any given product or service the
market three factors to consider-market = people with need or wants+ money to spend plus
willingness to spend it. (Stanton William, J., Fundamentals of Marketing, 1978, p. 72)

Marketing is the management function, which organizes and directs all those business
activities involved in an assessing and converting customer purchasing power in to
effective demand for a specific customer. So product or service and in making the
product or service to the final, as to achieve the particular or other objective set by the
company.

Thus, through these definitions we can deduce that Marketing is a social process
preformed by individuals and groups marketing are also concerned with creating offering and
exchanging products and services.
Marketing has been developing together with development in human civilization. We trace

12
three four hundred years back to the history of human civilization; we find marketing of
that time by modern standard was relatively uncultured. They did not need mechanism or
tools or techniques of marketing as used today. But now all the situations have change the
needs and wants have changed. Human aspiration for excellent and better status have
given birth to thousands of discoveries, inventions and innovations and established thousands
of units of different types of industry to fulfill that aspiration. These changes in turn not only
indented

different

sophisticated

tools

and

techniques

and effective

strategies

for

successful marketing but also made the marketing a most competitive field. (Parajuli
Sanjay, A Study of Loyalty on Branding Unpublished MBA Thesis, SDC, 2001, p.10)

In recent years some have questioned whether the marketing concept is an appropriate
philosophy in a world faced with a major demographics and environmental challenges. The
societal marketing concept holds that the organizations task is to the determine the needs,
wants and interest of target markets and deliver the desired satisfaction more effectively
and efficiently than competition in a way that preserve or enhances the consumers and
the societys
considerations.

well beings.

The concept calls upon marketers to balance three

Namely Company profits, C o n s u m e r s a t i s f a c t i o n a n d P u b l i c

interest. (Kotler Philip, Marketing Management, 1999 p.29)

2.3 Marketing Mix: Concept


Marketing mix is one of the key concepts in modern marketing. It refers to set of
variables that the business uses to satisfy consumer needs, namely product, price,
promotion and place. Each company should deeply study the marketing mix to run the
business.

A successful company will have effective knowledge over the marketing.

Marketing mix is the set of marketing tools that organizations use to pursue their
marketing objective in the target market. (Agrawal G.R, Marketing in Nepal, 1999, p.28)
The elements which can influence business activities of the firm as marketing strategy is
known

as

marketing

mix.

They

are

product,

price, p l a c e

and

promotion.

The

combinations of these elements are called 4ps.


Product, price, place and promotion (4 Ps) contribute the components of the marketing mix.
Each component has its own mix. Product mix, price mix, place mix, and promotion.
2.3.1 Product: Concept
A product is anyt hing that can be offered to the consumer satisfaction. Products can differ
in size, quality, feature, brand, packing etc. this is the most important variable of marketing
mix. A company should deeply think over the quality of the product before market
penetration. (William J/Michael J. and Bruce J, Fundamental of Marketing, 1994, p.211)
In marketing we need a broader definition of product to indicate that consumers are not really
buying a set of attributes, but rather benefits that satisfy their needs. A product is a set of
tangible and intangible a t t r i b u t e s , including packaging, color, price, quality, and brand,
plus the sellers services and reputation. A product may be a good, service, place, person, or

13

idea. In essence, then consumers are buying much more than a set of physical attributes
when they a product. They are buying want satisfaction in the form of the benefits they
expect to receive from the product.
2.3.1.1 Products Quality: Concept
Quality is the improved from of product, to satisfy the needs of the consumers, improving
product quality has become a top priority for marketing. There is an intimate connection
among product quality, customer satisfaction and objective achievement. The dimensions of
quality can be performance of the product, durability of the product, serviceability of the
product & feature of the product etc.
Quality is the Totality of features and characteristics of a product that bear on its ability to
satisfy stated or implied needs (Agrawal G.R., Marketing in Nepal, 1999 p.161)
While considering the physical product apart from the additional attributes, real or
fancied, bestowed on it by an effective marketing program, the manufacturers attention is
usually centered on product quality. In this context product quality is often measured in terms of
the purity or grade of materials used the technical perfection of design, and exacting
standards of production. The level of q u a l i t y is usually set in terms of either meeting of
beating competition. Once a level of product quality, in this sense, has been determined,
most firms carry out rigorous programs of quality control and product testing to ensure that
technical standards of product quality are upheld.
2.3.1.2 Brand & Branding: Meaning & Concept
Brand is the name of the product. Branding differentiates the products from marketers,
sellers & consumers. They convey attributes, image, values & benefits.
A Brand is a name terms, signs, symbol, or design or a combination of the intended to
identify the goods or service of one seller or group of seller and to differentiate from those
competitors. (Kotler Philip, Marketing Management, 1999, P. 404) is clear from above
definition that brand identifies the goods to market. It can be a name trade mark, logo or
other symbol. It differs from other assets such as patents and copy rights; which have
expire date. It trade mark is a legally protected brands which implies ownership of the users
and exclusive right to use.
Branding constitutes an important part of product mix. The word brand is comprehensive
encompassing others narrower terms. A brand name consists of words, letters or number that
can be vocalized. A brand mark is the part of the brand that appears in the form of a symbol,
design or distinctive color or letter. A brand mark is recognized by sign and differentiates its
product from competing products.
Building brands require a great deal of time money promotion and packaging.

Brands

suggest product difference to costumers. They convey attributes, image value and benefits
most of the products are branded. (Agrawal G.R, Marketing Management in Nepal, p. 287)

14

Now a days, market is being much more competitive is a subject of consideration. Every
company should carry out a research before launching a new brand. But all Nepalese
companies do not set budget aside for research and development. It is always important to
study the need, interest, taste, and purchasing power of the targeted costumers.
As the costumer is the king of the market in todays liberal economy companies cannot
afford to be pr o d uc t oriented only. There is no specific formula for success. Market is
different from place to place, consumers need taste and interest may vary from one place to
another. In many cases affordability g e o g r a p h i c a l , location culture and religion also
determine peoples need. Therefore, success of brand l a r g e l y depends on the different
factors such as innovation, quality, attractive, packing reasonable price, availability, good
publicity brand positioning, unique selling proposition, value addition relationship etc.
2.3.1.3 Brand Loyalty
This first to recognize when we talk about brands is that they are not just names, terms,
symbols, designs or combinations of these, although it is true to say that such things can and
to differentiate certain products and companies from others. The additional ingredient that
makes a successful brand is personality.

Today leading brands are personalities in their own right and are well known in all
societies and cultures as film heroes, cartoon characters, sports stars, or great leaders.
Many of the people relate to brand personalities in the same ways as they do to Human
personalities. There is of course, a psychological basis to this, and the psychology behind
brands really stems from Carl Jungs work where he described the four functions so mindthinking, sensation, feeling and institution. The secret to successful branding is the influence
the ways in which p e o p l e perceive the company or product, and brands can affect the
minds of customers by appealing to these four mind functions, or combinations of them.

Some brands appeal to the rational part of a person, to the elements of logic and good
sense (the thinking dimension) such as Toothpaste, which prevents decay. Others appeal to
the sense of smell, t e s t e d , sight, and sound such as fashion and cosmetic products.
Some brands attract the emotional part of people appealing to the feelings, dimension to
which consumer react with feelings of warmth, affection, and belonging. Products such as
Harley-Davidson motorcycles and companies like Benetton with its global village branding
exemplify these. Brands influence consumer decisions to buy in any of the above ways,
or through combination of them, sometimes with tremendous persuasive appeal.
The Marlboro brand personality is a good example of how companies understand and
combine the physical and emotional elements that appeal to certain customers who live or
would love to live a certain lifestyle. Products such as reputed credit cards, watches or
prestige items help people to express themselves to others by demonstrating that they are
different and have the sense of achievement. They act as extensions of the personality, so it

15

really is all in the mind. The key to brand management and d e v e l o p m e n t is a clear
understanding of what benefits the customer is looking for. Time and again, research shows
that the real driving force behind market leadership is perceived value-not price or inherent
product attributes
Brands are also successful because people prefer them to unbranded products. Todays
world is characterized by more complex technology, and this can be extremely confusing to
people who are not t e c h n o l o g y minded. Brands can play an important role here by
providing simplicity and reassurance to the uninitiated, offering a quick, clear guide to a
variety of competitive products and helping consumers reach better, quicker decisions. (Paul,
Temporal, The Boss June, 2005, P. 44)

2.3.2 Price and Pricing: Meaning & Concept


Price is an important component of marketing mix. Price is the value of goods and
services in terms of money. It depends upon the willingness and ability to pay of the
customers, which in turn depends upon the value in use and value in exchange. Pricing is the
process of determining the price of the product. The price determined by the company or the
marketers should be responded by the consumers in the target market. It is another variable of
marketing mix that creates revenue. Consumers pay price to buy products for their need
satisfaction. It may be fixed on the basis of cost demand and competition. It may involve
discount, allowances, credit facility etc. Price has become the important variable of marketing
mix because a marketing manager always looks forward for the price of the product so that he
can penetrate the market as their capacity to pay.
Traditionally, price had operated as the major determinant of buyer choice. This is still the
case in p o o r e r nations, among poorer groups, and with commodity- type products.
Although non price factors have become more important in buyer behavior in recent
decades, price still remains one of the most i m po r t a n t elements determining company
market share and profitability. Consumers and purchasing a g e n t s have more access to
price inf orm ation and pr ic e disc ounters . Consumer shops therefore, c arefull y f orc e
retailers to lower their prices. Retailer put pressure on manufacturers to lower their price. The
result is a market place characterized by heavy discounting and sales promotion.

Price is the marketing mix element that produces revenue, while the others produce costs.
Price is also one of the most flexible elements. It can be changed quickly, unlike product
features and channel commitments. At the same time, price competition is the number one
problem facing companies. Yet many companies do not handle pricing well. The most
common inflexibilities in handling them are:
1. Pricing is cost-oriented.
2. Price is not revised often enough to capitalize on market changes.
3. Price is set independent of the rest of the marketing mix rather than as an intrinsic element

16

of market positioning strategy, and


4. Price is not varied enough for different product items market segments, and
purchase occasion. (Kotler Philip, Marketing Management, 1999, p. 456)
In setting its pricing policy, a company usually follows the following six step procedure:a.

It selects its pricing objective survival, maximum current profit, maximum market share,

maximum market skimming, or product quality leadership.


b. Its estimates the demand curve, the probable quantities will select each possible price.
c. It estimates how its cost varies at different levels of output, at different levels of
accumulated production experience, and for differentiated marketing offers.
d. It examines competitors cost, price and offers.
e. It selects a pricing method.
f. Finally, it selects the final price, taking into account psychological pricing, and the influence
of other marketing mix elements on price, company pricing policies, and the impact price on
other parties.
Company do not usually set a single price, but rather a pricing structure that reflects
variations in geographical demand and cost, market segment requirements, purchase
timing, order levels, and other factors.

Several price adaptation strategies are available: (I)

Geographical pricing.

(II)

Price disco allowances

(III)

Promotional pricing.

(IV)

Discriminatory pricing.

Product-mix, pricing, which are included setting prices for product lines, optional
features, captive products, two part items, by-products, and product bundles. (Kotler Philip,
Marketing Management, 1999, pp.482/83)

2.3.3 Promotion: Meaning & concept


Promotion is the element of an organizations marketing mix that serves to inform,
persuade, and remind the market of a product and for the organization selling it, in hopes of
influencing the recipient feelings, beliefs, or behavior. (William J/Michael J. and Bruce J,
Fundamental of Marketing, 1994, p. 456)
Promotion is another variable of marketing mix which communicates to the ultimate
consumer bout goods and services. It involves those activities which inform, educate and
stimulate the demand for the product. It consists of advertising, publicity, personal selling and
sales promotion. Company should follow effective promotional Medias to inform the consumer
about the product. A good marketing manager always looks towards effective promotional
media to compete with other brands. This variable is very important to stimulate sales.
(Agrawal G.R, Marketing Management in Nepal, 2059, p. 47)

17

The marketing mix activities of product planning, pricing, and distribution are performed mainly
within a business or between a business and the members of its distribution channels.
However, through its promotional activities, a firm communicates directly with potential
customers.

2.3.4 Place: Meaning & concept


Place is another variable of marketing mix which takes product to consumer. It is
concerned with distribution, channels of distribution and physical distributions. It is also
concerned with selecting channels of distribution and place for the physical movement of the
product.
A good marketing manager always thinks of an effective channel and physical
distribution system for the smooth flow of the goods at the right time at the right place and
to the right person or market. (Agrawal G. R, Marketing Management in Nepal, 2059, p. 4)

Philip Kotler defines marketing mix as the set of marketing tools that the firm uses to
pursue its marketing objectives in the target marketing. The popularized a four-factor
classification of these tools called the four Ps (product, price, promotion, and place).

2.4 Advertising and Other Promotional Activities: Concept


The word advertising is derived from the Latin word Adverto. Ad means towards and verto
means turn. So the meaning of advertising is to turn people to wards specific thing. In
other words, advertising is to draw peoples attention to certain goods. Advertising is
one of the main tools in marketing used to influence the consumers awareness, interest
and response to the product in order to increase the firms sales and profit.
important

element

in

modern

marketing

process

but

it

can

It

is

an

produce consistently

profitable result only when the entire structure is sound and coordinated.
Advertising is the most visible marketing tool, which seeks to transmit an effective
message from the marketer to a group of individuals. The marketer pays for sponsoring the
advertisement. Activity advertising unlike salesmanship, which interacts with the buyer face,
is non-personnel. It is directed towards a mass audience, and cot at an individual, as in
personnel selling. (Aryal Kishwor Raj, The study of Market Share of Colgate in Comparison
with other Brand SDC, 2002, p.52)

Advertising is defined as a firm of mass communication where message is through


different sources and is acquired by the consumers. It is referred as non-personal,
presentation because non-personal media are used to convey the message. Basically,
media of mass communication are only two viz., publications and electronic media such as
radio and television.

18

The advertiser needs to have comprehension of psychology. The effective advertising


needs to be f a m i l i a r with certain effects that lead to certain response. Advertising is a
method of communication, which is one of the most important aspects of human
behavior.

Today business organization, social organization, political organization and governmental and
non-governmental organizations are also using advertising as tools of promoting and services
as well as political candidates for votes.

Advertising can be understood as form of communication, which aims at bringing about some
change in the behaviors of the target audience, particularly the potential buyers of nonbuyers towards the product or service advertised. A generally theoretical model seeks to
identify a step-wise behavioral progression of non-buyers towards buying action.
Simply advertising stimulates the potential buyers to go to the store to buy actual
advertised products. In general, advertising is done in expectation of tangible gains such as
favorable attitudes, better image of the firms, and increased sales. The techniques of
advertising depending upon the situation however, it is the matter of decision of the
marketing manager to blend all promotional tools advertising, personal selling, and sales
promotion to arrive at a right mix.

Each of the promotional tools has got unique

characteristics and is complementary. (Shrestha R.K, The Role of Advertise in Brand Choice
and Product Positioning MBA Thesis, T. U., 1997, p.1-2)

It should be made clear here that advertising and promotion though seems same are not
exactly the same thing. Promotion is a broad from whereas advertising is just a part of
promotion. When we talk of promotion it generally includes publicity, personal selling, public
relation and advertising, but advertising comprises the most of the portions that comprises
promotion. Advertising is considered to be one arm of promotion. Advertising promotion
consists of other four element personal selling, sales promotion, public relation and
publicity.

2.5 Consumer choice behavior:

From marketing perspective, consumer choice behaviour can be studied through the classical
five-step

(needinformation

searchevaluation

of

alternativespurchasepost-purchase

evaluation) problem solving paradigm or through the progression of consumer choice from a
product class to brand choice. The five-step model is usually suitable for decision making that
assumes rational problem solving behavior and, in most cases, complex decision making. The
acquisition of a new mobile phone follows this traditional view of buying process, but is in many
situations also affected by symbolic values related to brands. Consumer choice behavior has
some important prevailing conditions that must be taken into account while studying choice. In
the light of the classical problem solving buying behavior, consumers engage in information

19

search before making the actual choice. Consumer decision making process is usually guided
by already formed preferences for a particular alternative. This means that consumers are likely
to make the choice between alternatives based on limited information search activity and
without detailed evaluation of the other alternatives. In close relation to information search,
evaluation of alternatives has also gained a momentum in recent research. Their study on
consumers use of five heuristics (conjunctive, disjunctive, lexicographic, linear additive, and
geometric compensatory) in the consideration set formation found that conjunctive heuristics is
the most often used decision model in the consideration set formation for two product classes in
the study (beer brands and fast food outlets). Conjunctive heuristics means that a consumer
selects a brand only if it meets acceptable standards, the so-called cut-off point on each key
attribute consumer regards as important. In this non-compensatory method of evaluation, a
consumer would eliminate a brand that does not fulfil the standards on one or two of the most
important attributes, even it is positive on all other attributes.

Study of consumer behavior has prevailed as an effective measure helping to develop the
successful marketing strategy. The consumer and the society have been the centre point
around which all the marketing activities revolve. The various advantages made in marketing
have established the consumers as the sovereign power in the marketing world. So, in order to
be successful, products must be produced according to the needs and demand of the
consumers and interest of the society. In the modern business world, understanding of
consumer choices, purchasing decision making process, brand preference, factors affecting
decision making process and understanding of consumer behavior is most necessary to
become a successful marketer.
Western culture has empowered the world. And the influence has turned into obsession,
deviating people towards a branded route more. World has turned out fashionable and the
trend has shifted to bagging products with EXPENSIVE tags and not relating the utility of the
product with its worth. Fashion is RULING and so does the people carrying them. The concept
of boasting has grown farther than one could imagine and with an idea of falling into an
analogous category, people have lost the sense of Value and Worth.

A growing economy and the resultant increase in purchasing power have made people around
the world more fashion conscious. People have now very well understood about the brands
present in the market. Brand awareness has made people to think and become conscious about
the brand. Brand awareness means the extent to which a brand associated with a particular
product is documented by potential and existing customers either positively or negatively.

With the increase in different brands in the market the consciousness for them has also been at
the top. The non- active consumers have been converted into an Active Consumers. They do
not compromise with the brand, after all brand matters at a large. There was a time when
people only focused more on the price factor while choosing a product or service. But now, the

20

scenario has changed. Today People have become Brand Conscious; they go for brands
starting from hair oil to footwear. The choice of selection depends on the societal and the
esteem value the brand gives to them.

Branding a product is mandatory, in this era, of course as anything and everything in the world
bears its identity through a name or symbol or sign. Brand conscious people believe that by
wearing a branded shoe or a suit, for instance, theyll be accepted as trendy and up to-date.

The shifts have witnessed a spike graph with a ratio of brand conscious people who even
segregate the sweets, chocolates and ice-creams on their brand name. Same goes with in the
world of jeans and shirts. It is heard that "Without a branded shirt on you, youre not reckoned
as a person of taste and choice. It is true that a companys authenticity and services, its
reliability and popularity are earmarked by its brand. It enhances the business of the company
and boosts its creditability as well. When you stick to a particular brand, you showcase your
superiority and style; and prove where you stand in the world of fashion."

Nevertheless, the ones who refrain from being influenced by this western brand consciousness
trend survive equally good. The practically wise decision of why to spend gratuitously on the
products that are not worthy the tag they hold. There are many brands that have lost the charm
in due course but for their name sake, theyre still among the favorites list. Their high tagged
prices still attract the eyes of customers and theyve managed to survive superbly well in the
market.

The fact is that brand consciousness has developed as a craze and way of depicting people's
status. The count of people badly inflicted by this disease is high. It is usually the college
students and kids who are more affected and it is for them to see what is best for them; even
though it may not be a branded one.

Typically, it the personality and intellect that people love seeing, and not just the brand name,
that you carry along. It is the individual choice how they spend your money, but the notion of
becoming superior with a branded denim or a watch them flaunt will take them nowhere.

Brand loyalty is more than simple repurchasing, however. Customers may repurchase a brand
due to situational constraints (such as vendor lock-in), a lack of viable alternatives, or out of
convenience. Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when
customers have a high relative attitude toward the brand which is then exhibited through
repurchase behavior. This type of loyalty can be a great asset to the firm: customers are willing
to pay higher prices, they may cost less to serve, and can bring new customers to the firm.
Brand loyalty is a temporary aspect of consumer behavior (James F. Engel, 1982:598). Brand
loyalty analyses whether or not a consumer is loyal to a specific brand or set of brands in a

21

certain time period. Study on brand loyalty began when research on consumer behavior
became popular around the late 50s and 60s. Most of the products today are sold by brands
today in the developed countries like U.S.A., Germany, U.K., and Japan. Even vegetable
products are sold by brands. Today no one denies indispensability of understanding brand
loyalty behavior for successful marketing of the products. This growing need and importance of
behavioral study of consumer gave birth to brand loyalty as a separate subject of study.
The American Marketing Association defines brand loyalty as the situation in which a consumer
generally buys the same manufacturer-originated product or service repeatedly over time rather
than buying from multiple suppliers within the category or the degree to which a consumer
consistently purchases the same brand within a product class. Trying to define the term, Aaker
considers that brand loyalty reflects how likely a customer will be to switch to another brand,
especially when that brand makes a change in price, product features, communication, or
distribution programs.
Marketers are trying to do as much as they can to preserve brand loyalty. Marketers have
attempted to create an emotional attachment with their customers, believing that once
customers become attached, they will not switch to another brand, regardless of price
(Hamilton, 2009). Unfortunately, consumers are more likely than ever to become brand
switchers, especially to private labels, as they look for lower-price alternatives to what they
normally purchase. Customers are abandoning brand loyalty and experimenting with different
but cheaper brands. It seems that grocery store items are most affected by brand switching;
products ranging from food, paper goods, and personal-care items are victims of either brand
switching or being purchased less frequently, as shoppers stretch out the use of these products
for as long as possible (Byron, 2008). While the sales of luxury items has decreased
somewhat, it seems that luxury items have the most brand loyal consumers. Consumers are
willing to save up their money for these luxuries; they justify paying top prices for these items by
saving and reducing spending on other lower-priced items (Heher, 2009). It appears that the
best and most innovative brands have been or will continue to be able to hold their value,
despite the current recession (Hamilton, 2009).
Brand loyalty, though may seem simple at a glance, is not a simple concept. Schiffman and
Kanuk say, Just as there are different approaches to the definition and measurement of
information processing, so there are different views as the definition of brand loyalty (Leion G.
Schiffmnan, 1990:258). Different scholars, experts, behavioral scientists and researchers have
defined brand loyalty in different ways and have utilized different approaches and criteria to
measure brand loyalty. Some have defined brand loyalty in terms of consumer behavior some
have defined in terms of both consumer behavior and consumer attitude.
Now, many researches on brand loyalty have been carried out. But, as stated above, they are
not based on the same definition nor have they employed the same approaches or criteria to
measure brand loyalty. Different researches are based on different definitions and have used
different measures of brand loyalty. Therefore, it seems very much necessary to pay particular

22

attention on definition of the term and approaches to measurement while reviewing the
researches.
One of the earliest studies defined brand loyalty according to the sequence of purchasing a
specific brand (James F. Engel and Roger D. Blackwell. p.556). The key insight of this definition
is that the purchasing pattern of a specific brand determines loyalty to the brand. This definition
classifies brand loyalty in four categories:1. Undivided Loyalty
2. Divided Loyalty
3. Unstable Loyalty
4. No Loyalty
For example, if A, B, C, D, E, F, G are various brands in a particular product category, the
consumer of the product could be classified as having the following types of loyalty:
1. Undivided Loyalty if the purchase sequence is AAAAA
2. Divided Loyalty if the purchase sequence is AB, AB, AB
3. Unstable Loyalty if the purchase sequence is AAAABBB,
4. No Loyalty if the purchase sequence is ABCDEFG
Thus, it is obvious that according to this definition brand choice sequence is the criteria that
measures brand loyalty.

2.6 Conceptual Framework


2.6.1 Brand Loyalty: Perpetual Background
Loyalty on the branding has been studied from so many angles that the concept has been
defined based on the measurement methods used. There are four measurements of brand
loyalty:1. Undivided loyalty
2. Divided loyalty
3. Unstable loyalty
4. No loyalty
2.6.2 Variables are taken into consideration
The present study will include the following variables:
Independent variables

Dependent variables

Age
Sex
Income

Brand loyalty

23

1. Age
The Age of the consumer determines the type of product demanded and the choice of outlet.
Normally, young consumers are fashion conscious while choosing a product. Therefore, they
frequently switch from one brand to another. While, middle-aged consumers are status
conscious hence they are more brand loyal than younger consumers. Hence, this factor also
greatly affects in brand loyalty. So this factor is considered.
2. Sex
Male and female differ very much in their buying behavior. Females are more shopping and
bargaining-prone and like to visit several shops to compare price, quality and service, whereas
males show more brand and store loyalty.
3. Income
Income is that factor which directly effects consumers buying process. People with higher
income prefer branded and high-quality products, whereas people with lower income are more
prices conscious. Therefore, they prefer the products that are cheap and durable.

2.7 Brand Choice


In the brand choice, there are many product categories that are represented by numerous
brands. To cope with the multiplicity of relatively similar brands consumers do attempt to
simplify their decision making by categorizing the available brands in the evoked set. Evoked
set is defined as the set of products that the buyer actually considers when marketing a special
brand choice. All the brands in evoked set are evaluated positively and the consumer makes a
purchase choice as his evoked set. (Chem L. Narayan et.al. 1975:715)
2.7.1 Brand choice sequences
The first study of brand loyalty was published by George Brown in 1952. The study was
conducted on a panel of 120 households. Survey was conducted on the households purchases
of frequently purchased high involvement products like television (TV). Household making five
or more purchases was placed one of the four brands. Loyalty categories depending on the
sequences of brand purchased using the definition of brand choice sequences. Brown noted
that percentage of households demonstrating some degree or loyalty varied on the products
involved. He also added that the percentage of households were undivided percent across
products (George Brown, P.556)
2.7.2 Proportion of purchase
Expressing loyalty as some percentage of purchases in popular way of defining brand loyalty,
Ross Cunnigham (1956) defined brand loyalty according to the proportion of purchases in a
household that is devoted to the brand it purchased most frequently. Cunnigham conducted his
study on a sample of 66 families using histories of 6 common grocery products and headache

24

tablets. He found out that in each product category more than 50 percent of these families
concentrated at least 43 per cent of their purchase on the brand most often bought. His result
showed certain amount of brand concentration in the family purchase.
2.7.3 Repeat purchase probabilities
Many recent researches on brand loyalty have used the repeat purchase probabilities of brand
as measured of brand loyalty. The probability ranging from zero to one was used to determine
its degree of loyalty based on the repeat purchase probabilities.
2.7.4 Brand preference over time
Brand loyalty has also been defined as preference statements over time rather than actual
purchase or brands. Lester Tuest, in 1941 asked 513 students to indicate the brands. They
preferred in 16 product categories in 1953. He obtained brand preference for the same 16
product categories for 165 members of the original sample. The percentage or respondents
whose past and present preferences matched was above 30 percent. (Lester Tuest, 1999:260).

2.8 Brand switching


Brand switching of consumer is a major worry for all marketers. Consumers switch brands due
to many reasons. Dissatisfaction, boredom, new innovations and sales promotional offers
promote brand switching behavior of the consumers. It means consumers habits are
continuously shifting from one brand to another. In this sense, it is opposite to brand loyalty, a
brand loyal consumer sticks up to a specific brand or a set of brands. A buyer who is habitual to
brand switching is loyal to no brand. The understanding of why consumers are involved in brand
switching behavior is very important for complete market understanding of brand loyal behavior.
That is why consumers to a great extent are not brand loyal. There are many causes for brand
switching behavior.
It is not unusual to switch brands simply because of variety seeking. Consumers switch brands
because they are dissatisfied with a product, because they are more concerned with price than
with brand names. A consumer being loyal to a brand for a long time may switch to other brands
because of being dissatisfied or being bored with the brand that he has been using for a long
time. Similarly, if the consumer is more conscious than the brand then even a slight price cut in
the competitive brands may make him move over towards those brands.
But research studies on brand switching reveal that brand switching is not very much stronger
as it is generally thought in words. Brand switching is not very much threatening to
manufacturers. A recent study on consumer purchase habits reported that brands with larger
marker shares have proportionately larger groups of loyal buyers. (S.P. Raj, P.260)
It follows that intra-personal factors such as dissatisfaction, boredom, price consciousness and
aspiration for testing new brand causes brand switching.
Similarly, also some external factors like special price deals, coupons, free sample and
comparative advertisement may cause brand switching. But what the researches showed that,

25
such a brand switch cannot be converted into brand loyalty. (Ibid, P.26). The consumers do
not keep on sticking to the brand which they are switched to. Together with the end of such
special deals as a price cut, free sample, coupon, etc, consumers return back to their previous
brands.

2.9 Brand loyalty Correlation


Brand loyalty correlation means the various factors that are related or associated with
differential degree of brand loyalty. Brand loyalty correlation explains why brand loyalty varies
across products and consumers. Many researchers have been conducted to find out such corelations of brand loyalty. Engell and Blackwell after analyzing the findings of around 34
researches conducted by various scholars and experts have made the following conclusions:
a. There is limited evidence that the loyalty behavior of an informal group leader affects the
behavior of other group members.
b. When extended definitions of brand loyalty are used some socioeconomic, demographic
and psychological variables are related to brand loyalty. However, those relationships tend
to be product specific rather than ubiquitous across product categories.
c.

Socio-economic, demographic and psychological variables generally do not distinguish


brand loyal consumers from other consumers when traditional definitions of brand loyalty
are used.

d. Market structures variables including the extensiveness of distribution and the market share
of the leading brand exert a positive influence on brand loyalty.
e. There is limited evidence that perceived risk is positively related to brand loyalty.
f.

Store loyalty is commonly associated to brand loyalty.

g. There is some evidence that brand loyalty is inversely related to the number of stores
shopped.
h. The relationship between amount purchased and brand loyalty is uncertain because of
contradictory finding.
i.

The relationship between inter purchases time and brand loyalty is uncertain due to
contradictory finding.

j.

The effect of a number of alternative brands, special deals and price activity are uncertain
due to contradictory findings. (Engel and Blackwell, PP. 577-78)

Thus, what comes out from the conclusion made by Engel and Blackwell is that even though the
researchers have found out some factors such as socio economic, demography, store loyalty,
number of stores shopped, market share of leading brands as the co-relates of brand loyalty,

26

yet the researchers findings are contradictory concerning other factors such as amount
purchased, inter purchases to time, number of alternative brands etc. It seems that the
researchers have not yet reached any concrete result about what are correlates and non
correlates of brand loyalty.
It is necessary to develop the most scientific and widely accepted research instrument to find
out what are correlates and non correlates of brand loyalty. Brand loyalty is a wider concept.
What factors are correlated with it is a serious question. There may be hundreds of factors
correlated to it. The main cause of the contradiction among research findings is absence of
widely accepted research tradition (Ibid, P.578) say Engel and Blackwell. Researchers so far
have used different definition of brand loyalty. Some have used the traditional definitions which
measures brand loyalty on the basis of the consumer purchases whereas others have used
extended definitions of brand loyalty which measure brand loyalty on the basis of both the
consumer purchases and consumer preferences. Due to the use of different definitions and
approaches the researches, findings, concerning to brand loyalty correlates have resulted to
confusion and contradiction. Hence, it is not only difficult but also impossible to state exactly
what are the correlates and non-correlates of brand loyalty.
Brand Loyalty correlates are the important aspects of study on brand loyalty. Brand Loyalty
correlates tells why brand loyalty varies across products and consumers. Similarly, brand loyalty
correlates are of high importance for the markets. Therefore, there must not be any
contradiction or confusion about the correlates. Correlates must be defined and stated precisely
to the markets and could use them as the efficacious guidelines for making strategies. And, this
can be better done by improving the weaknesses of the past events and by developing the most
scientific and widely accepted research tradition.

2.10 Brand loyalty models


2.10.1 Zero order models (Bernoulli Model)
This is the earliest model of brand loyalty in this model, the consumer is assumed to have a
constraint probability of purchasing the brand under study. The probability is determined from
aggregate brand choice data and is assumed to be independent of all external influences, prior
purchases or consumer characteristics. (James F. Engel ET. Al. P.581)
This function is determined from aggregated brand choice between brands A and B, where B is
the composite of all other brands. This model suggests that there is no feedback from past
purchase events. The response function is free to change over time. It, however, suggests that
the number of brands available at a store, especially price deals and out of stock situation of the
brand influence the probability function. This shows that the brand becomes available in more
stores, the probability of buying brand A is expected to increase for many customers who
purchase brand A, all other factors remaining constant.

27

2.10.2 Dynamic Bernoulli Model


Ronald A. Howard has modified the original Bernoulli model where the probability 9P) is allowed
to vary between individuals and to change from one purchase situation to another for the same
buyer. However, this model also assumes a zero order process where the past purchase event
has no effect on the present and future purchase probabilities. This factor has made this model
of limited use.
2.10.3 Probability diffusion model
The probability diffusion model proposed by David B. Montgomery is also a zero order model,
which does not consider purchase events feedback in this model. An individuals response
probability is assumed to be non-stationery and different individuals may have different
response probabilities. This model is based on the following assumptions: (Harper W. Boyd ET.
Al. p.67-70)
I.

The brand choice behavior is described as a dichotomous selection i.e. selection between
two brands A and B.

II.

Each respondent is assumed to have a number of hypothetical elements: some are


associated with response A and the remainder with response B.

2.10.4 New Trier Model


The New Trier Model describes the brand choice behavior of a consumer purchasing a
particular brand for the first time. This is also zero order model developed by Aaker. This model
assumes that there is a trial period after the initial purchase during which the probability of
purchasing the brand for that family remains constant. After, a number of trial purchases, the
consumer is assumed to reach a decision which given a new probability of purchasing the
brand. The probabilities of purchasing the new brand after the trial period differ among
individuals. Thus, this model is similar to probability diffusion model in many respects and has
limited use.
These models offered little insights into the dynamics of brand loyalty and have been
abandoned in favor of more realistic model the market model. (James F. Engel P.583-5 84)
2.10.5 Markors First Order Model
Markors model considers the influence of past purchases on the probability of current
purchases. Markors first order model takes into account the effect of last purchase on the
current purchase (Harper W. Boyd P 59-63)
To illustrate, consider a product category with three brands A,B and C. Based on the past
purchase data of a sample consumers, the conditional probabilities of moving from one site to
another in any two consecutive time period can be estimated as shown in the following
hypothetical table.

28

Last Purchase

Total

0.7 (70%)

0.1 (10%)

0.2 (20%)

1 (100%)

0.3 (30%)

0.6 (60%)

0.0 (20%)

1 (100%)

0.4 (40%)

0.1 (10%)

0.5 (50%)

1 (100%)

The table can be interpreted as follows:


If a consumer purchases a brand A during a certain period, the during the next period there is a
70% chance that he/she will buy brand A, 10% chance for buying brand B and 20% chance of
buying brand C. Similar probability or chances can be calculated for original buyers of brands, B
and C.
A study measured brand loyalty in three different ways; brand market share. The number of
same brand purchases in a six month period and the average number of brands bought per
buyer. Findings suggest that consumers buy from a mix of brands within their acceptable range.
Thus, the eater the number of acceptable brands in a specific product category, the less likely
loyal to one specific brand conversely: products having few competitors, as well as those
purchased with great frequency are likely to have greater brand loyalty.
2.11 Researches on consumer behavior under Tribhuvan University Thesis
The T.U has completed some researches on consumer behavior. Similarly, researches and
studies conducted by other institutions and professionals cannot be ruled out as well. Four of
the researches conducted by the student of T.U. are reviewed below.
I.

Mr. Yogesh Pant had carried out a research titled, study on brand loyalty in 1992. The
major objective of this study was to examine the brand and identify correlates of brand
loyalty especially on low involvement products.

II.

Mr. Jagat Timilsina had conducted a research on A study on buyer behavior in 1999.
The study basically concentrated to find out brand patterns and purchase, freedom of
clothing apparels.

So after reviewing the above researches conducted by the Tribhuvan University is constantly
going to add an extra milestone in Nepalese research activities. The study is an attempt to
reveal the brand loyalty of the Nepalese consumer. In this study, I have taken new journals and
articles from different journalists who are related to brand loyalty that helps to know about brand
loyalty and its effect on manufactures, marketers and consumers, relationship among them and
shows a glance of actual position of brand loyalty in Nepal. Further, the study has involved 5
different TV Brands such as LG, Samsung, Sony, Philips, Haier and data are different from
those of previous in term of time and space. So, it has been believed that this study will be

29

different and comprehensive as compared to previous study.

Theoretical Framework:
Explanation of Theoretical Framework:
This theoretical framework shown below (the network diagram that describes the relationship
between dependent and independent variables) is the foundation on which the entire research
A study of attributes of Brand Loyalty in LCD and LED TV purchasing Decision" is largely
based.
The theoretical framework shown below elaborates the relationship among the variables
explains the theory underlying these relations and describes the nature and the direction of the
relationships. In the above shown network diagram, the variables are classified as:
Independent and Dependent variables:
The independent variables shown in the diagram below are age, sex, income, price and
advertising and promotion. These variables are taken as independent variables because they
are not influenced by any other variables. But they affect dependent variable which is Brand
Loyalty. It is affected by all those independent variables. Here, the Brand Loyalty is depended
upon these kinds of independent variables. Therefore, it is considered as dependent variable.
Independent variables

Dependent variables

1. Age
2. Sex

Brand loyalty

3. Income
4. Price
5. Advertising and Promotion
In this way, this second chapter was based upon reviewing the critical points of current
knowledge and methodological approaches on the study of the attributes of brand loyalty of
consumer in purchasing decision. In fact, this chapter was associated with academic oriented
literature such as thesis and literature review. It was well characterized by a logical flow of
ideas: current and relevant references with consistent, appropriate referencing style along with
proper use of terminology related with brand loyalty. Now in the next chapter i.e. Methodology,
the will discuss the procedure employed for the data collection and the way of its analysis.

30

CHAPTER 3
METHODOLOGY
Research methodology is a way to systematically solve the researchers problem. It facilitates
the researchers work and provides reliability and validity. In other words, it is a systematic
product of knowledge. C. K. Kothari defined research as a scientific systematic research for
pertinent information on a specific topic (Kothari 1998:1). Redman and Moray define research
as a systematized effort to gain new knowledge (Redman and Moray 1923:10). Research
Methodology refers to the various sequential steps to adopt by a researcher in studying a
problem with certain objectives in view. Research Methodology is a way to systematically solve
the research problem (Kothari, 1999:10). In the other words, Research methodology refers to
the various sequential steps (along with a rationale, of each such step) to be adopted by a
researcher in the studying a problem with certain object/objects in view It refers to the various
sequential steps to adopt by a researcher in studying the problem with certain objectives. It
describes the method and process applied in the entire aspect of the study. In this chapter, the
research design, data collection procedure and procedures concerning analysis of data are
described thoroughly. Analysis is conducted by using appropriate financial and statistical tools
and findings are presented in a systematic way. An introduction relating to this thesis work is
made in the first chapter and relevant literatures are reviewed in the second chapter. The
research methodology, which is used to analyze to the collected data, are mentioned in this
chapter.
This passage discusses the procedure employed in the study including data collection and
analysis. Further, it deals with variables used in the study: the necessary relevant data have
been successfully collected from the consumer's personality purchasing pattern of different
brands of the product like LCD/LED Television (TV). A research work should be much more
effective, accurate and useful and it should follow scientific methods. The research methodology
employed in the present study is described here as follows:

3.1 Research Plan and Design


Generally research design means definite procedure and technique which gives to study and
provide ways for research viability. It describes the general framework to collect and analyze the
data. Research design provides the glue that holds the research project together. A design is
used to structure the research, to show how all of the major parts of the research project -- the
samples or groups, measures, treatments or programs, and methods of assignment -- work
together to try to address the central research questions. The study is based on the qualitative
measure of data. As per the nature of this research, the entire focus is on primary data in the
form of list of questionnaire has been used to achieve the research objectives. To achieve the
objectives of study, following are the research design for the data analysis.
Under the study, for the purpose of description, descriptive statistics are used to simply

31

describing what is and what the data shows regarding the attributes of Brand Loyalty of
Nepalese consumer in LCD/LEDTV purchasing Decision. For further explanation, the data are
presented and analyzed through the types of graph and tables. Under graphical presentation of
the data, it has used pie chart and bar diagram while the frequency table (univariate) and cross
tabulations (bivariate and multi variate) are used for the tabular presentation of data.

Inferential Statistics investigate questions, models and hypotheses. For the study, this statistics
is used to make inferences from our data to more general conditions and test whether there is
significant relationship exists between variables such as age, income level, education level and
family size with brand. For this, Chi Square Test Model is used.
This study is exploratory in nature. This study mainly aims to find out the Attributes of brand
loyalty of Nepalese consumer in LCD/LED Television (TV) purchasing decision with reference
to Kathmandu valley. This study is mainly focused with to analyze the effect of brand loyalty of
Nepalese consumer in LCD and LED Television purchasing decision and the applied data are
mainly primary in nature. Therefore, the multiple research designs were employed in this study
for accomplishing different objectives. Hence, the descriptive, well as inferential research
designs have, therefore, been included in the present study.
For this study, the survey research design has been adopted. The data and information
collected from the survey of the consumer are rearranged, tabulated, analyzed and interpreted
according to the needs of the study for attaining stated objectives. The Nepalese ultimate
consumers are extensively surveyed so as to procure data and information about the
consumers, personality, purchasing pattern of the different brands of the products selected for
the study and their attitudes, responses and reactions relating to the same brands.
3.1.1 Descriptive research Design
Descriptive research design was adopted to describe the situation and events and the opinions
of consumers of LCD and LED television. For this, Descriptive statistics were used to describe
the basic features of the data in a study. They provide simple summaries about the sample and
the measures. Descriptive statistics are the numerical, graphical, and tabular techniques for
organizing, analyzing, and presenting data. Together with simple graphics analysis, they form
the basis of virtually every quantitative analysis of data. Some of the descriptive statistics used
in this study are;
3.1.1.1 Graphs:
Generally, graphs provide the visual distribution for a variable or variables. In this study, various
kinds of graphs such as pie charts and histograms are used in order to provide visual
distribution of various opinions of the consumers regarding their purchasing decisions.
3.1.1.2 Tables:
Tables provide summary and a frequency distribution for a variable or variables. This study has
used such tables for the presentation of summary of primary data.

32

3.1.2 Correlation research design:


Correlation research design is a tool which is used to find out the relationship between the
variables taken under the study. This type of research design was adopted in this study in order
to identify the extent of dependency among age, income level, education level and family size
and brand
3.1.3 Causal-comparative research design:
Causal-comparative research design was employed for the primary data analysis in this study in
order to examine the data by going back through time seeking out causes, relationships, and
their meaning on the determinants of factors affecting while purchasing LCD and LED
television.
3.1.4 Inferential Research Design:
Most of the major inferential statistics come from a general family of statistical models known as
the General Linear Model. This includes the Chi-square testing. In this study, inferential
research design is also adopted for analyzing primary data.

3.2 Description of the Sample


3.2.1 Sampling Procedure
In order to accomplish the objectives of the study, sampling procedure has been taken under
consideration for getting the true picture of the consumer behavior and factor affecting
purchasing decision of LCD and LED television.
Population
All the Nepalese ultimate consumers of the products (LCD and LED TV), selected for this study
(i.e. LG, Samsung, Sony, Phillips and Haier) are considered as the population of this study.
Data on the exact number of such customers are not available.
Sampling
The above stated population for the stuffy is very large. It is almost impossible to include the
whole population in the study. So, out of this population only 120 consumers are surveyed in
other words, from the whole population a sample of only 120 consumers are taken for this
study. The sampling method used for the study is judgmental (i.e. non random) sampling.
Sampling in this study is a very small size of the sample in comparison to the population.
Even though the sample size is very small in comparison to the population, sufficient efforts
have been made to make the sample present to the whole population included in the sample
are therefore, from the different professionals, age groups, education groups and equally of sex,
male and female. In this survey, all respondents should be requested to give responsibility to fill
the questionnaire for the study.

33

3.3 Instrumentation:
As the main objective of the study is to analyze consumers brand consciousness in Kathmandu
District, to identify the relationship of brand with demographic variables like age, income level,
education and family size, this study is mainly focused to the qualitative aspects. And for finding
the data of qualitative aspects of the study, the main instrument has become questionnaire.
A well-structured questionnaire is the main instrument used for collection of data required for
this study. Questionnaires were distributed to the consumers of Nepalese LCD/LED TV market
so that their views, opinions, ideas and experiences can be obtained and that information will be
valuable for analyzing and interpretation. The questionnaire was most carefully designed as well
as pre-tested so that it could best serve the purpose of this study. The questionnaire contained
multiple choice questions. 200 questionnaires were distributed. And altogether 120 of them
were collected with those respondents having LCD/LED Television. Maximum attention has
been given while filling up the questionnaires. The respondents were supported by oral
explanation or inability to understand any content in the questionnaire.
It was obvious for me to use questionnaire as the main instrument for the research basically due
to the fact that the process of observation is in itself very time consuming and questionnaire is
faster and simple method of collecting data and also through this, a large number of sample can
be covered that have managed to do in this research. This study has used structural
questionnaires method for conducting survey and specially, probing techniques are have been
used for getting enough information about the opinions, expressions, ideas and knowledge from
the respondents. Survey has been used as an instrument to undertake research on selected
stratified sampling with the help of questionnaire. Some informal interviews were taken with the
seller of the LCD and LED TV.

3.4 Data Collection Procedure and Time Frame


The procedure for the data collection and time frame are shown as below:
Data collection procedure:
The study has more focused to the primary data analysis. However, secondary data have also
been analyzed. Hence, in order to collect the required data for their analysis, two sources have
been used. They are;
Primary sources:
The data used in this study are primary in nature. These primary data required for the study are
collected from the Nepalese consumers of the products like Television selected for this study
are the sources of data used in the present study.

34

A well-structured questionnaire is the main instrument used for collection of data required for
this study. The questionnaire was most carefully designed as well as pre-tested so that it could
best serve the purpose of this study. The questionnaire contained multiple choice questions.
200 questionnaires were distributed and altogether 120 of them are collected from the
respondents having LCD/LED Television.

Secondary sources:
To analyze the study topic, required secondary data have been collected from different sources.
The information relating to the attributes of brand loyalty of Nepalese consumer in LCD and LED
TV purchasing decision are also obtained from the following secondary sources also:

Books Journals and Articles

Periodicals magazines, journal and newspaper, websites

Master degree thesis related to this research

Books related to Marketing Management

Time Frame:
Regarding the time frame for the collection of total questionnaire, it has taken up to 4 weeks
where visiting to different showrooms was less time consuming to fill up the questionnaire than
the questionnaire left over to the companies; and also through email, it was collected within 4
weeks.

3.5 Validity and Reliability


Validity is the extent to which a test measures what it claims to measure. It is vital for a test to
be valid in order for the results to be accurately applied and interpreted. For validity of the study,
the structured questionnaires are set from the topic related one and for final distribution of
questionnaire; then it was completed and finalized by the suggestions of guide and experts of
the research. For more validity in the questionnaire, the pilot -testing of the questionnaire was
done for the few investors. Once it is tested, again the questionnaire was redesigned and
finalized by the experts and finally distributed among the investors.
Furthermore, to meet the objectives of the study, the focused group discussion was done
among the few buyers of LCD/LED Televisions or more their suggestions and opinions towards
attributes of Brand Loyalty of Nepalese consumer in LCD/LEDTV purchasing Decision and the
awareness of brand in LCD/LED Television market. This helped in developing the effective
questionnaire to the respondents.
Reliability refers to the consistency of a measure. It also refers to how well it produces results
(or, how well it doesn't fail). A test is considered reliable if we get the same result repeatedly.

35

Regarding reliability of the research, the mainly the questionnaires are filled up through self
administered and to have more accurate results and relationship between the variables, the
questionnaire are cross checked and finalized.

3.6 Analysis Plan


All the questionnaires were distributed and collected by the researcher himself so; there was not
any delay in collection of the questionnaires, which were distributed to the consumers. Every
questionnaire was thoroughly checked after the collection and was found correct in the style of
filling. The same response of the collected questionnaires were put into one place under the
respective headings and the total responses were presented in one master table with the help of
the data of the master table, necessary adjustments have been made for attaining the
objectives of the study.
All the analysis is made on the basis of the data as presented in the master table. Data is
analyzed both descriptively and statistically. For statistical analysis required tools such as
simple mean, weight mean, ration and percentage are adopted.
Hence, this chapter was trying to highlight the way to solve the problem of the study in a very
systematic way. It also highlighted research plan and designs which is employed in the study.
Similarly, it also reflected description of the sample, instrumentation, data collection procedure
and time frame, validity and reliability and the analysis plan for the successful accomplishment
of the objective of the study. In the next chapter, the study will present and analyze data that are
collected from the various sources.

36

CHAPTER 4
RESULT AND DISCUSSION

This chapter describes the main part of the whole study where the data collected from the
various sources are presented and analyzed in detail. This chapter is divided into two parts such
as analysis of primary data and analysis of secondary data are examined
4.1 Presentation of results
Under this study, the presentation of the result is only based on the primary data. These primary
data analysis is collected through the structured questionnaire in order to meet the main
objective of the study. For this, the respondents are selected. The presentation and analysis of
primary data are collected through the questionnaire mentioned in Appendix 1 are explained
below:

4.2 Descriptive Analysis


Descriptive analysis is used to describe the basic features of the data in a study and provide
simple summaries about the sample and the measures. Under this study, the whole data
depends on the primary data which can be explained graphically through the pie chart and bar
graph and cross tabulation analysis. For the sample collection, the questionnaire was distributed
to 120 respondents.
A. Profiles of the Respondents:
The first part of the questionnaire was designed in order to have idea about the profile of the
consumers who have bought LCD or LED Television. This part contains Sex, Age group,
Income, Education Level and Family size.
4.2.1 Analysis of sex:
The overall respondents' sex is reflected by the following table and Pie-chart:
Table No. 1: Sex of the consumers
Sex
Sex
Male
Female
Total

No.

Percentage (%)
63
57

52.5
47.5

120

100

(Source: Field Survey, 2012)

37

Sex

Female
48%

Male
52%

Figure No. 1: Sex of the respondents


The above table and the figure highlight the overall picture of sex of the respondents. Among
the total respondents, 52% of them are male whereas; rest i.e. 48% who have bought LCD and
LED Television are female.

4.2.2 Analysis of Age Group:


The overall summary of the age of respondents can be shown in the following table and bar
diagram:
Table No. 2: Age Group of consumers

Age Group
Age Group

No.

Percentage (%)

Below 20 Years

5.88

20-30 Years

20

16.67

30-40 Years

48

40

40-50 Years

35

29.17

Above 50 Years

10

8.28

Total

120

100

(Source: Field Survey, 2012)

38

Age Group
Above 50 Years
40-50 Years
30-40 Years

Percentage (%)

20-30 Years
Below 20 Years
0

10

20

30

40

50

Figure No. 2: Age group of consumers


The above mentioned table and bar diagram reflects the age of the respondents. Majority of the
respondents belong to (30-40 Years), i.e. 40% of the total respondents belong to this age group.
29.17% of them belong to (40-50 Years), 16.67% of them belong to (20-30 Years), 8.28% of the
total respondents belong to (Above 50 Years) and the rest of them, i.e. 5.88% of them belong to
(Below 20 Years) group.

4.2.3 Analysis of Family Size:


The summary of the data regarding family size of the respondents is stated in the following table
and bar chart:
Table No. 3: Family size of the consumers
Family Size
Family Size

No.

Percentage (%)

Up to 3 members

15

12.5

3-5 members

32

26.7

5-7 members

53

44.2

7-10 members

16

13.3

3.3

120

100

Above 10 members
Total

(Source: Field Survey, 2012)

39

Family Size
Above 10 members
7-10 members
5-7 members

Percentage (%)

3-5 members
Up to 3 members
0

10

20

30

40

50

Figure No. 3: Family size of the consumers


The above mentioned table and figure reflects the overall summary of the findings regarding the
size or the number of family members of the respondents. It can be seen that majority i.e.
44.2% of the total respondents belong to the size of (5-7 Members). 26.7% of them belong to
the family size of 3-5 Members). In the same way, 13.3% of the total respondents belong to the
family having (7-10) members and the rest i.e. 3.3% of them belong to the family size of (Above
10 Members).

4.2.4 Analysis of Education Level:


The respondents were asked to state their level of education which was divided into five groups.
The overall findings regarding the education level can be shown in the following table and
figure:
Table No. 4: Education of the respondents
Education
Level

No.

Percentage (%)

Up to SLC

17

14.2

Certificate level

28

23.3

Bachelors level

30

25

Masters Level

40

33.3

4.2

120

100

Above Masters level


Total

(Source: Field Survey, 2012)

40

Education
Above Masters level
Masters Level
Bachelors level

Percentage (%)

Certificate level
Up to SLC
0

10

20

30

40

Figure No. 4: Education of the respondents


The above mentioned table and bar diagram shows the education level of the respondents.
Majority of the respondents i.e. 33.3% belong to the Masters Level. In the same way, 25% of
them have education of Bachelors Level. 23.3% of them have education of Certificate Level,
14.2% of them have education of Up to SlC Level and the rest, 4.2% of them have education of
Above Masters Level.

4.2.5 Analysis of Income Level:


At first, the income level was divided into five groups and the respondents were asked to state
their income level. The overall findings of the income level are shown in the following table and
bar diagram:
Table No. 5: Income of the respondents
Income
Income
Up to 10 Thousand

No.

Percentage (%)

6.67

10-20 Thousand

21

17.5

20-40 Thousand

52

43.33

40-60 Thousand

23

19.17

Above 60 Thousand

16

13.33

120

100

Total

(Source: Field Survey, 2012)

41

Income
Above 60 Thousand
40-60 Thousand
20-40 Thousand

Percentage (%)

10-20 Thousand
Up to 10 Thousand
0

10

20

30

40

50

Figure No. 5: Income of the respondents


From the above mentioned table and bar diagram, it can be seen that majority of the
respondents belong to the income group of (20-40 Thousand). 43.33% of them belong to this
group. In the same way, 19.17% of the total respondents belong to the group of (40-60
Thousand), 17.5% of them belong to (10-20 Thousand) group, 13.33% of them have income
level of (Above 60 Thousand) and the rest 6.67% of them belong to the income level of (Up to
10 Thousand).

4.2.6 Analysis of importance of Brands of durable goods


This part of the questionnaire was formulated in order to get insights about how important is the
brand in Nepalese market in case of durable goods. The consumers surveyed for this study
were given two scales: one to measure the importance of brand in consumer durable goods and
the other to measure the same in consumer non durable goods. Each scale included 5 points
from 1 to 5. 1 was given for minimum and 5 for maximum. Consumers were asked to tick on the
point they think correct or appropriate. Different consumers ticked on different points from 1 to 5
and then weighted means of consumers responses concerning to the importance of brand in
both types of consumer goods durable and non durable were calculated which is shown in the
following table:
Table No. 6: Importance of Brand
Types of Goods

Weighted means of Important points

Consumer durable goods

2.78

Consumer non durable goods

2.53

(Source: Field Survey, 2012)

42

The above mentioned table reveals that the consumers have given on average 2.78 points for
the consumer durable goods and 2.53 for the non durable goods. According to the scale, the
given point to the consumers approaches the maximum important points. Thus, it seems that
brand has high importance for the Nepalese consumers and the importance of study on the
Effect of brand loyalty of Nepalese consumers in the LCD and LED television purchasing
decision.

4.2.7 Consumers brand in LCD and LED Television:


The consumers were asked about the brand of LCD and LED Television that they have. The
overall summary of the findings is shown in the following table and pie chart:
Table No. 7: Consumers' Brand in LCD and LED Television
Brand

No

Percentage (%)

Samsung

40

33.33

Sony

30

25

LG

22

18.33

Philips

18

15

Haier

10

8.33

Total

120

100

(Source: Field Survey, 2012)

Which brand do you have?


Haier
8%

Philips
15%

Samsung
34%

LG
18%
Sony
25%

Figure No. 6: Consumers' Brand in LCD and LED Television


The above mentioned table and figure reflects the different brands of LCD and LED Televisions
that the respondents have. It can be seen that majority i.e. 33.33% of the total respondents
have stated that they have Samsung LCD/LED Television. In the same way, 25% of them said

43

that they have Sony brand, 18.33% of them stated that they have LG brand, 15% of them told
that they have Phillips brand and the rest of them, i.e. 8.33% stated that they have Haier brand.
4.2.8 Most Favorite Brand:
The consumers buying the LCD and LED television were asked regarding their most favorite
brand. The summary of their responses are depicted in the following cross table along with sex:
Table No. 8: Most Favorite Brand
S.

Most Favorite

No.

brand

No. of Respondents
Male

Total

Female

Numbers

Samsung TV

22

34.92

18

31.57

40

33.33

Sony TV

16

25.39

14

24.56

30

25

LG TV

12

19.04

10

17.54

22

18.33

Plillips TV

10

15.87

14.03

18

15

Haier TV

4.76

12.28

10

8.33

Total

63

100

57

100

120

100

(Source: Field Survey, 2012)

Most Favorite Brand


35.00
30.00
25.00
20.00
Percentage (%)

15.00
10.00
5.00
0.00
Samsung

Sony

LG

Philips

Haier

Figure No. 7: Most favorite brand


The above Table and figure show that the majority of customers fall in the purchase of LCD and
LED Television with the most favorite brand being Samsung Television. The number of
consumers falling in this group is 40 (i.e. 33.33%), 25% consumers fall in the purchase of LCD
and LED television group which has the brand Sony. 18.33% consumers fall in the purchase of
LCD and LED television group which has the brand LG, 15% consumers fall in the purchase of
LCD and LED television group which has the brand Phillips, similarly 8.33% consumers fall in

44
the purchase of LCD and LED television group which has the brand Haier.
Hence, 33.33% and 25% consumers falling in the purchase of television of Samsung and Sony
is the most favorite brand from the loyalty point of view.

4.2.9 Reasons for being favorite Brand:


The consumers were asked to give the reasons behind choosing their brands as a favorite one.
They were provided options as well. The overall summary of their responses are summarized
here under:
Table No. 9: Reasons for favorite brand
Brand

Samsung

LG

Sony

Phillips

Haier

Causes

No

Percentage (%)

Price

30

25

Design

30

25

Function

60

50

Total

120

100

Price

60

50

Design

30

25

Function

30

25

Total

120

100

Price

55

45.83

Design

35

29.17

Function

30

25

Total

120

100

Price

30

25

Design

30

25

Function

60

50

Total

120

100

Price

30

25

Design

28

23.33

Function

62

51.67

Total

120

100

(Source: Field Survey, 2012)

The above table reveals that of the total 120 respondents, 25% have both selected the
reasonable price and good designing while selecting the most favorite brand of Samsung LCD
and LED Television whereas 50% have selected the good function while purchasing the most
favorite brand of LG LCD and LED Television. Similarly while the respondents selected the LG

45

LCD and LED television, 5O% has selected the reasonable price, 25% good design and 25%
good function respectively.
In the case of Sony LCD and LED television, 45.83% have selected reasonable price, 29.17%
have selected good design and 25% have selected good function.
In the case of Phillips LCD and LED television 25% have selected reasonable price. 25% have
selected good design and 50% have selected good function. Similarly, 25% have selected
reasonable price, 23.33% have selected good design and 51.67% have selected good function
while purchasing Haier LCD and LED television.
Hence by the tabulation of the Primary data it is concluded that some respondents have
selected the good function in their favorite brand while others have selected good design or
reasonable price. Therefore the majority of the respondents have selected either seasonal price
or good function in their most favorite brand.

4.2.10 Use of Brand in purchasing LCD and LED TV:


The findings about the use of brand in purchasing LCD and LED TV are shown in the following
table:
Table No. 10: Use of Brand in purchasing products
Name of
S. No.

the
Product

Sony TV

LG TV

Samsung
TV

Phillips
TV

Haier TV

Means of the
Purchase

Number of Respondents

Male

Female

Total

Number

By Brand

40

57.14

25

50

65

54.17

By Inspection

30

42.85

25

50

55

45.83

Total

70

100

50

100

120

100

By Brand

30

37.5

25

62.5

55

45.83

By Inspection

50

62.5

15

37.5

65

54.17

Total

80

100

40

100

120

100

By Brand

35

46.77

35

77.78

70

58.33

By Inspection

40

53.33

10

22.22

50

41.67

Total

75

100

45

100

120

100

By Brand

25

33.33

20

44.45

45

37.5

By Inspection

50

66.97

25

55.55

75

62.5

Total

75

100

45

100

120

100

By Brand

15

23.08

25

45.45

40

33.33

By Inspection

50

76.92

30

54.54

80

66.67

Total

65

100

55

100

12

100

(Source: Field Survey, 2012)

46
Table No. 2 shows how the Nepalese consumers buy a product LCD and LED Television. In
the case of Samsung TV, 58.33% buy it by the brand whereas 41.66% buy it by inspection. In
the case of Sony Television, 54.17% buys it by the brand name whereas 45.83% buys it on
inspection. In the same way, in case of LG Television, 45.83% buys it by the brand name
whereas 54.17% buys it on inspection. In case of Phillips TV, 37.5% buy it by brand whereas
62.5% buy it on inspection. Similarly in case of Haier TV, 33.33% buy by brand whereas 66.67%
buy by inspection.
Hence, it can be said that the majority of the Nepalese consumers buy LCD and LED Television
by inspection rather than by brand but in the case of LG and Sony Television, some consumers
are being brand loyal than compared to other Television brands, by research it appeared that
the consumers attitude are more brand loyal towards Samsung and Sony Television. Thus one
must not be confused in the term by brand and by inspection. Buying by brand means, buying
a product by examination or observation. For example, if a consumer who wants to buy
toothpaste goes to a shop or store and asks the shopkeeper to give him a Colgate or
Pepsodent, then it is called buying by brand. But if the same consumer goes to the store and
asks the shopkeeper to give him toothpaste and does not specify which toothpaste he wants to
buy then it is called buying by inspection.
Buying by brand is directly selecting with brand awareness. A consumer who always buys by
brand is supposed to have knowledge of different alternative brands available in the market and
the difference between the brands uses and other alternative brands in the market.
The difference in consumer durable goods and non durable goods, the high importance of brand
show the consumer's strong interest to knowing brand of the products they use.

To be more specific about the brand awareness of the Nepalese consumer, we had asked them
whether they buy the products selected for this study by brand or inspection. Their response to
this question is depicted in the following:

47

Percentage
54.17

45.83 45.83

66.67

62.5

54.17 58.33
41.67 37.5

33.33

Sony TV

LG TV

Samsung TV Phillips TV

By Inspection

By Brand

By Inspection

By Brand

By Inspection

By Brand

By Inspection

By Brand

By Inspection

Percentage
By Brand

80
70
60
50
40
30
20
10
0

Haier TV

Figure No. 8: How do consumers buy LCD and LED Television?

4.2.11 Factors affecting while purchasing LCD and LED TV:


The respondents were asked regarding various factors that affect while purchasing LCD and
LED Television. The overall responses of those factors are shown in the following cross
tabulation analysis:
Table No. 11: Factors affecting while purchasing LCD and LED TV

Name of
Products

Sony
TV

LG TV

Samsung
TV

No. of brand loyal

No. of brand non

respondents

loyal respondents

Nos.

Nos.

Nos.

Price

30

22.77

50

36

30

Advertising

31

28.7

8.33

32

26.66

A new brand

25

23.14

16.66

27

22.5

None

22

33.14

25

25

20.83

Total

108

100

12

100

120

100

Price

20

19.04

33.33

25

20.83

Advertising

30

28.57

6.66

32

26.66

A new brand

30

28.57

40

36

30

None

25

23.8

6.66

27

22.5

Total

105

100

15

100

120

100

Price

31

28.18

40

35

29.16

Advertising

32

9.09

10

33

27.5

A new brand

41

37.27

30

44

36.66

None

5.45

20

6.66

Total

110

100

10

100

120

100

Factors

Total

48

Phillips
TV

Haier TV

Price

32

29.35

9.09

33

27.5

Advertising

30

27.52

45.45

35

29.16

A new brand

40

36.69

36.36

44

36.66

None

6.02

9.09

6.66

Total

109

100

11

100

120

100

Price

20

18.69

38.46

25

20.83

Advertising

40

37.38

15.38

42

35

A new brand

45

42.05

38.46

50

41.66

None

1.86

7.69

2.5

Total

107

100

13

100

120

100

(Source: Field Survey, 2012)


The data presented in the table above is the consumers response to the question that which
one of the following factors made you purchase the television. The factors provided with the
questions are:
1. Price i.e. price rise or price cut in one brand in comparison to the other
2. Strong advertisement campaign or other brand
3. A new brand to purchase
4. None of these

The above factors are affecting consumers while purchasing LCD and LED television, 30% of
the total respondents are affected by price while purchasing Sony Television, 26.66% of the
total respondents are affected by advertising, 22.5% are affected by a new brand and 20.83%
are affected by none of these factors while purchasing Sony LCD and LED Television.

In the case of LG television, 20.83% of the total respondents are affected by price while
purchasing LG Television, 26.66% of the total respondents are affected by advertising. 30% are
affected by a new brand and 22.5% are affected by none of these factors.
In the case of Samsung television, a new brand having 36.66% affects highest while purchasing
it whereas 29.16% of price and 27.5% of advertising affect the least consumers in comparison
to a new brand. In the case of Phillips LCD and LED television, a new brand having 36.66%
affects highest while purchasing it whereas 27.5% of price and 29.16% of advertising affect the
least consumers in comparison to a new brand. Similarly, in the case of Haier television, a new
brand having 41.66% affects highest while purchasing it whereas 20.83% of price and 35% of
advertising affect the least consumers in comparison to a new brand.
Hence, in LCD and LED Television purchasing decision consumers are affected mostly by a
new brand than by other factors like advertising, price and others.

49

4.2.12 Brand loyalty of Nepalese consumers:


As a matter of fact, the present study is conducted mainly to answer the question. Therefore, a
good deal of effort has been made to get the answer of the following analysis.

Degree of Loyalty:
In order to find out the degree of Loyalty of various LCD and LED Televisions, consumers were
asked what they would do if their favorite brand is not available. The summary of their
responses are shown in the following cross tabulation analysis:
Table No. 12: Degree of Loyalty

Name of
product

Samsung
TV

Sony TV

LG TV

Phillips TV

Haier TV

What do you do if your


favorite brand is not
available

No. of brand loyal respondents


Mal
e

Male
%

Femal
e

Female
%

Total
Nos
.

Percent
%

Wait for the favorite


brand

25

44.64

35

34.68

60

50

Buy the alternative

16

28.57

14

21.87

30

25

Do not buy

15

26.78

15

23.43

30

25

Total
Wait for the favorite
brand

56

100

64

100

120

100

30

46.15

30

54.54

60

50

Buy the alternative

20

30.76

15

27.27

35

29.17

Do not buy

15

23.07

10

18.18

25

20.83

Total
Wait for the favorite
brand

65

100

55

100

120

100

25

45.45

25

38.46

50

41.67

Buy the alternative

15

27.27

30

46.15

45

37.5

Do not buy

15

27.27

10

15.38

25

20.83

Total
Wait for the favorite
brand

56

100

64

100

120

100

15

23.07

20

36.36

35

29.17

Buy the alternative

30

46.15

15

27.27

45

37.5

Do not buy

20

30.76

20

36.36

40

33.33

Total
Wait for the favorite
brand

65

100

55

100

120

100

18

24.65

20

42.55

38

31.67

Buy the alternative

30

4.09

15

31.91

45

37.5

Do not buy

25

34.24

12

25.53

37

30.83

Total

73

100

47

100

120

100

(Source: Field Survey, 2012)

50

If the favorite brand is not available


120
100
80
60
40

Samsung TV

Sony TV

LG TV

Total

Do not buy

Buy the alternative

Total

Phillips TV

Percentage %

Wait for the favorite

Do not buy

Buy the alternative

Wait for the favorite

Total

Do not buy

Buy the alternative

Total

Wait for the favorite

Do not buy

Buy the alternative

Wait for the favorite

Total

Do not buy

Buy the alternative

Wait for the favorite

20

Haier TV

Figure No. 9: If the favorite brand is not available


The above table and figure reveals what do the respondents who were found brand loyal
according to the preference, purchase approach do when their favorite brand or the brand which
they are loyal to is not available in the market, 50%, 50%, 41.67%, 29.17% and 31.67%
respondents respectively in the Samsung, Sony, LG, Philips and Haier LCD and LED Television
said they would wait for the favorite brand.
The term wait for favorite and buy the alternative product selected for the study is of such
nature that they are repeatedly purchased. So, waiting for favorite does not mean stopping the
use of product forever or waiting for a very long time. Wait for favorite is used here in the sense
of waiting for the time period in which the consumer can avoid the use of product without any
harm.
On the other hand, if a consumer cannot wait in such a way and picks up whatever alternative is
available, he is said to have bought alternatives. 25%, 29.17%, 37.55, 37.55 and 37.5%
respondents in the Samsung, Sony, LG, Phillips and Haier LCD and LED television said they
would buy the alternatives.
Similarly, 25%, 20.83%, 20.83%, 33.33% and 30.83% respondents respectively in the
Samsung, Sony, LG, Phillips and Haier television said they would not buy the favorite brand.
Hence, it is said that on percentage basis, the respondents are showing their activities towards
their favorite brands if not available in the market. The majority of the respondents appear that
they wait for the favorite one rather than buy alternative or not buy.

51

4.2.13 Ability to judge the brand:


The following table and figure depicts the overall summary regarding the ability to judge the
brand of LCD and LED Televisions by the consumers.
Table No. 13: Ability to judge the brand
Name of

Ability to judge

product

brand

Samsung TV

LG TV

Sony TV

Philips TV

Haier TV

No. of respondents
Male

Female

Total
%

No.

Very High

25

39.06

15

26.78

40

33.33

High

15

23.43

20

35.71

35

29.17

Moderate

14

21.87

11

19.64

25

20.83

Low

10

15.62

10

17.85

20

16.67

Total

64

100

56

100

120

100

Very High

13

19.11

12

23.07

25

20.83

High

10

14.7

10

19.23

20

16.67

Moderate

20

29.41

20

38.46

40

33.33

Low

25

36.76

10

19.23

35

29.17

Total

68

100

52

100

120

100

Very High

20

32.25

15

25.86

35

29.17

High

16

25.8

17

29.31

33

27.5

Moderate

22

35.48

22

37.93

44

36.67

Low

6.45

6.89

6.67

Total

62

100

58

100

120

100

Very High

18

28.57

15

26.31

33

27.5

High

17

26.98

18

31.57

35

29.17

Moderate

24

38.09

20

35.08

44

36.67

Low

6.34

7.01

6.67

Total

63

100

57

100

120

100

Very High

12

18.46

14.54

20

16.67

High

20

30.76

20

36.36

40

33.33

Moderate

25

38.46

20

36.36

45

37.5

Low

12.3

12.72

15

12.5

Total

65

100

55

100

120

100

(Source: Field Survey, 2012)

52

Ability to judge brand


40
35
30
25
20
15
10
5
0
Very High
High
Moderate
Low
Very High
High
Moderate
Low
Very High
High
Moderate
Low
Very High
High
Moderate
Low
Very High
High
Moderate
Low

Percentage %

Samsung
TV

LG TV

Sony TV

Philips TV

Haier TV

Figure No. 10: Ability to judge the brand


The above mentioned table and figure show the respondents' determination or ability to judge
the brand before buying television. In case of Samsung LCD and LED Television, 33.33% of the
respondents are very high to their favorite brand whereas 29.17%, 20.83% and 16.67% are
high, moderate and low respectively. Similarly, in case of LG LCD and LED Television, 20.83%
of the respondents are very high to their favorite brand whereas 16.67%, 33.33% and 29.17%
are high, moderate and low respectively. In case of Sony Television, 29.17% of the respondents
are very high to their favorite brand whereas 25.7%, 36.67% and 6.67% are high, moderate and
low respectively. In case of Phillips LCD and LED Television, 29.17% of the respondents are
very high to their favorite brand whereas 27.7%, 36.67% and 6.67% are high, moderate and low
respectively. Similarly in case of Haier Television, 16.67% of the respondents are very high to
their favorite brand whereas 33.33%, 37.5% and 12.5% are high, moderate and low
respectively.
Hence the respondents show their confidence to judge the brands as very high, high, moderate
and low. Therefore, the majority of the respondents show moderate to judge their ability to
purchase their favorite brand of television.

4.2.14 Deciding particular Brand before buying:


The consumers were asked whether they decide to buy a particular LCD and LED Television
before buying TV or not. The summary of the findings is shown in the following table:

53

Table No. 14: Do you decide any brand before buying?


Name of
product

Sony TV

Samsung TV

LG TV

Philips TV

Haier TV

Decision

No
Male

Total

Female

No.

Yes

50

7.42

30

60

80

66.67

No

20

28.57

20

40

40

33.33

Total

70

100

50

100

120

100

Yes

45

66.17

40

76.92

85

70.83

No

23

19.16

12

23.07

35

29.16

Total

68

100

52

100

120

100

Yes

35

58.33

35

58.33

70

58.33

No

25

41.67

25

41.67

50

41.66

Total

60

100

60

100

120

100

Yes

25

40.67

25

41.67

50

41.66

No

35

58.33

35

58.33

70

58.33

Total

60

100

60

100

120

100

Yes

20

30.76

15

27.27

35

29.16

No

45

69.23

40

72.72

85

70.83

Total

65

100

55

100

120

100

(Source: Field Survey, 2012)

The above table shows how the respondents are doing their activities before buying LCD and
LED Television. The table shows that 66.67% of the respondents falling to Yes and remaining
33.33% falling to No respondents before buying Sony LCD and LED Television brand.
Similarly, 70.83% shows positive or Yes and 29.16% shows No before buying Samsung LCD
and LED Television, 58.33% shows positive or Yes and 41.66% shows No before buying LG
LCD and LED Television, 41.6% shows positive or yes and 58.33% shows No before buying
Phillips LCD and LED Television. Lastly, 29.16% shows positive or yes and 70.83% shows No
before buying Haier LCD and LED Television.
Hence, in the case of Samsung, Sony and LG television the majority of the respondents appear
Yes before purchasing the LCD and LED television brand. But remaining Phillips and Haier,
the respondents are not interested to determine before purchasing the branded television.

4.2.15 Consumers having alternative brands:


The consumers were asked regarding whether they know about the alternative brands of LCD
and LED Television available in the market or not. The summary of the overall findings from the
responses are shown in the following table and figure mentioned as under:

54

Table No. 15: Consumers having alternative brands in the LCD and LED TV market
Availability of Brand

No

Percentage

Yes

110

91.67

No

10

8.33

Total

120

100

(Source: Field Survey, 2012)

Consumers having alternative brands


8.33

Yes
No

91.67

Figure No. 11: Consumers having alternative brands in the LCD and LED TV
The above table and figure shows that the majority of the respondents know very well about the
different alternatives or competing brands of LCD and LED Television. The table and figure
depicts that more than 90% of the respondents knew the availability or brand or television in the
market. Here 91.67% of the brand loyal respondents know the different brands of LCD and LED
television in the market whereas 8.33% of the respondents do not know the alternative brands
of LCD and LED television in the market.

4.2.16 Favorite brand of other family members:


The respondents were asked if their choice of preferred brand matches with their family
members or not. The overall findings of the responses are shown in the following table:

55

Table No. 16: Favorite brand of other family members


Brand

Causes

Samsung

Sony

LG

Phillips

Haier

No

Percentage (%)

Yes

33

82.5

No

17.5

Total

40

100

Yes

22

73.33

No

26.67

Total

30

100

Yes

13

59.09

No

40.91

Total

22

100

Yes

44.44

No

10

55.56

Total

18

100

Yes

40

No

60

10

100

Total
(Source: Field Survey, 2012)

The above table shows whether or not the brand to which the respondent is loyal is the same to
that of the other member of his family. In the Sony LCD and LED Television, the relation
between the favorite brand of other members of the family and that of the respondents seems
not very close to that of the total brand respondents, the favorite brand of 73.33% is the same
as the favorite brands of other members of the family. On the other hand, in Samsung LCD and
LED Television the percent of the respondents whose favorite brand is more similar to the
percent of those whose favorite brand differs from the favorite brand of other members of the
family i.e. 82.5% of the respondents have stated that their favorite brand is similar to their other
family members. But in the LG Brand, 59.09% of the respondents have stated that their choice
are similar to their family members. In the Phillips, 44.44% of the respondents similar to their
other family members and in Haier LCD and LED Television, 40% of the respondents have the
similar favorite brand to other members of the family.

4.2.17 Further Cross Tabulation:


In order to get more insights about analysis between brand and other variable such as sex, age
group, income level, education level and family size, some cross tabulation analysis have been
performed which are shown here under:

56

Sex and Brand:


The overall summary regarding the findings of sex and brand can be reflected from the following
cross tabulation analysis:
Table No. 17: Sex and Brand
S.
No.

No. of Respondents

Most Favorite
brand

Male

Total

Female

Numbers

Samsung TV

22

34.92

18

31.57

40

33.33

Sony TV

16

25.39

14

24.56

30

25

LG TV

12

19.04

10

17.54

22

18.33

Phillips TV

10

15.87

14.03

18

15

Haier TV
Total

4.76

12.28

10

8.33

63

100

57

100

120

100

(Source: Field Survey, 2012)


The above table reveals the overall picture regarding the sex and brand loyalty for LCD and
LED Television. It can be seen that in all the brands, male consumers are higher than the
female consumers. In case of Samsung, out of 40 respondents, 22 of them preferring Samsung
are male and 18 of them are female. Similarly, In case of Sony, out of 30 respondents, 16 of
them are male and remaining 14 are female. In case of LG, 12 out of 22 are male and 10 of
them are female. In case of Phillips, out of 18, males are in number of 10 and 8 of them are
female. Lastly, in case of Haier, females are in more number than male. Out of 10 respondents,
3 of them preferring Haeir are male and 7 of them are female.

Age and Brand:


The overall findings regarding Brand and Age can be reflected from the following table:
Table No. 18: Age and Brand

Age
Below
20 Years
20-30
Years
30-40
Years
40-50
Years
Above
50 Years

LG

Son
y

2.
5

18

17

43

13

11

28

10

1.54
4
96.5
Total
22
9
40
(Source: Field Survey, 2012)

10
10
0

3
4
5
9
1

13.6
4
18.1
8
22.7
3
40.9
1

Samsun
g

30

%
3.3
3

Philli
ps
1

Hai
er

Tot
al

Total
%

5.55
16.6
7

10

5.88

30

20

16.67

40

48

40

10

35

29.17

10
10
0

10

8.28

120

100

10
43.
3
33.
3

50
22.2
2

10
10
0

5.56

18

100

10

57

The table mentioned above reflects the overall picture of the number of respondents choosing
their favorite brand and their age group. It can be seen that Almost in all brands, most of the
respondents fall in the age group of (30-40 yrs). In case of LG, majority i.e. 40.91% of the
people preferring this brand fall under the age group of (40-50 yrs). 22.73% of the people
choosing LG TV as their favorite brand fall under the age group of (30-40 yrs). Similarly, 18.18%
of them fall under the age group of (20-30 yrs) and 1.54% of them fall under the age group of
(Above 50 yrs). And the rest i.e.13.64% of them fall under the age group of (Below 20 yrs).
In case of Samsung, majority i.e. 42.5% of the people preferring this brand fall under the age
group of (30-40 yrs). 27.5% of the people choosing Samsung LCD and LED TV as their favorite
brand fall under the age group of (40-50 yrs). Similarly, 17.5% of them fall under the age group
of (20-30 yrs), 10% of them fall under the age group of (Above 50 yrs) and the rest i.e. 2.5% of
them fall in the age group of (Below 20 yrs).

In case of Sony Brand, Majority of the respondents choosing Sony as their favorite LCD and
LED TV brand fall in the age group of (30-40 yrs). 43.33% of them fall in this age group. 33.33%
of them fall in the age group of (40-50 yrs). Similarly, 10.01% of them fall in the age group of
(Above 50 yrs). In the same way, 10% of them fall in the age group of (20-30 yrs), and the rest,
i.e. 3.33% of the respondents selecting Sony Brand fall in the age group of (Below 20 yrs).

In case of Phillips brand, Majority of the respondents choosing Phillips as their favorite LCD and
LED TV brand fall in the age group of (30-40 yrs). 50% of them fall in this age group. 22.22% of
them fall in the age group of (40-50 yrs). In the same way, 16.67% of them fall in the age group
of (20-30 yrs), similarly, 5.56% of them fall in the age group of (Above 50 yrs).and the rest, i.e.
5.55% of the respondents selecting Phillips Brand fall in the age group of (Below 20 yrs).
In case of Haier brand, majority i.e. 40% of the respondents choosing Haier as their favorite
brand fall in the age group of (30-40 yrs), 30% of them fall in the age group of (20-30 yrs),and
10% each of them fall in all the rest age group i.e.(Below 20 yrs), (40-50 yrs). (Above 50 yrs).

Income and Brand:


The total number of income were divided into five groups and the consumer who had chosen
different LCD and LED Television as their favorite were asked to reflect their monthly income in
Rupees. The overall findings regarding Income and Brand can be reflected from the following
table:

58

Table No. 19: Income and Brand


Income
('000)
less than
10
10-20 k

Samsu
ng
0
3

%
0

7.5
47.
20-40 k
19
5
32.
40-60 k
13
5
12.
above 60k
5
5
10
Total
40
0
(Source: Field Survey, 2012)

Son
y

13

13

43

20

23
10
0

30

L
G

22

%
13.
6
31.
8
40.
9
4.5
5
9.0
8
10
0

Phillip
s

Hai
er

%
16.6
7
27.7
8
38.8
9
11.1
1

5.55

18

100

10

3
5
7

Tot
al

Total
%

20

6.67

20

21

17.5

40

52

43.33

10

23

19.17

10
10
0

16

13.33

120

100

The above table reflects the overall summary of the number of respondents choosing their
favorite brand and their monthly incomes. In most of the Brands, it can be seen that
respondents who are earning (20 -40 thousands) are in the largest numbers.
In case of Samsung Brand, Majority i.e. 47.5% of the respondents fall in the category of monthly
income of (20-40 thousands). 32.5% of the respondents who have chosen Samsung as their
favorite brand fall in the category of monthly income of (40-60 thousands). Similarly, 12.5% of
them earn monthly (Above 60 thousands) and the rest 3% fall in the income group of (10-20
thousands).
In case of Sony Brand, Majority i.e. 43.33% of the respondents fall in the category of monthly
income of (20-40 thousands). 23.33% of the respondents who have chosen Sony as their
favorite brand fall in the category of monthly income of (Above 60 thousands). Similarly, 20% of
them earn monthly (40-60 thousands) and the rest 13.33% fall in the income group of (10-20
thousands).
Similarly, in case of LG Brand, Majority i.e. 40.91% of the respondents fall in the category of
monthly income of (20-40 thousands). 31.82% of the respondents who have chosen LG as their
favorite brand fall in the category of monthly income of (10-20 thousands). Similarly, 13.64% of
them earn monthly (Below 10 thousands), 9.08% of them fall under the monthly income group of
(Above 60 thousands) and the rest 4.55% fall in the income group of (40-60 thousands).

In the same way, in case of Phillips Brand, Majority i.e. 38.89% of the respondents fall in the
category of monthly income of (20-40 thousands). 27.78% of the respondents who have chosen
Phillips as their favorite brand fall in the category of monthly income of (10-20 thousands).
Similarly, 16.67% of them earn monthly (Below 10 thousands), 11.11% of them fall under the
monthly income group of (40-60 thousands) and the rest 5.55% fall in the income group of
(Above 60 thousands).
In case of Haier Brand, Majority i.e. 40% of the respondents fall in the category of monthly
income of (20-40 thousands). 20% of the respondents who have chosen Haier as their favorite
brand fall in the category of monthly income of (10-20 thousands) and (Below 10 thousands).

59

Similarly, 10% of them fall under the monthly income group of (40-60 thousands) and the rest
10% of them fall in the income group of (Above 60 thousands).

Education Level and Brand:


The education was divided into five groups and the consumer who had chosen different LCD
and LED Television as their favorite were asked to reflect their Education level. The overall
findings regarding Education level and Brand can be reflected from the following table:
Table No. 20: Education Level and Brand
Samsu
Education

ng

So

ny

L
G

Philli
ps

36.
Up to SLC

7.5

Certificate
level

15

10

12

30

30

42.
Masters Level

17

17

40

30

Total

al

22

20

17

14.2

33

40

28

23.3

67

30

30

25

10

40

33.3

4.2

120

100

16.
3

3.

10
Total

57

Tot

16.

9.0

Above Masters
level

er

33.

13.
Bachelors level

Hai

22.

40.
6

67
11.

10

10

11

10
18

100

10

(Source: Field Survey, 2012)


The above table shows the total number and percent of favorite brands of LCD and LED
Televisions and the education level of the respondents choosing their favorite brand.
In case of Samsung Brand, majority of the respondents choosing this brand as their favorite one
belong to Masters level. 42.5% of them fall under the education of Masters level. In the same
way, 30% of the respondents choosing Samsung as their favorite brand belong to Bachelors
level. 15% of them belong to Certificate level, 7.5% of them belong to upto SLC level and the
rest 5% belong to Above Masters level.
In case of Sony Brand, majority of the respondents choosing this brand as their favorite one
belong to Masters level. 56.67% of them fall under the education of Masters level. In the same
way, 30% of the respondents choosing Sony as their favorite brand belong to Bachelors level.
10% of them belong to Certificate level, and the rest 3.33% of them belong to Above Masters
level.

60

In the same way, in case of LG Brand, majority of the respondents choosing this brand as their
favorite one belong to Certificate level. 40.91% of them fall under the education of Certificate
level. In the same way, 36.36% of the respondents choosing LG as their favorite brand belong
to upto SLC level. 13.64% of them belong to Bachelor level, and the rest of them, i.e. 9.09%
belong to Above Masters level.
In the same way, in case of Phillips Brand, majority of the respondents choosing this brand as
their favorite one belong to Certificate level. 33.33% of them fall under the education of
Certificate level. In the same way, 22.22% of the respondents choosing Phillips as their favorite
brand belong to upto SLC level. 16.67% of them belong to Bachelor level and Masters level and
the rest of them, i.e. 11.11% belong to Above Masters level.
In case of Haier brand, majority of the respondents choosing this brand as their favorite one
belong to Certificate level. 40% of them fall under the education of Certificate level. In the same
way, 30% of the respondents choosing Haier as their favorite brand belong to Bachelor level.
20% of them belong to Upto SLC level and the rest of them, i.e. 10% belong to Masters level.

Family Size and Brand:


Throughout the study, the number of family member i.e. family size was divided into five groups
and the consumers were asked to state their family size and their most favorite brand. The
following table reveals the overall summary of the findings:
Table No. 21: Family size and Brand
Samsu
ng

3-5 members

16

5-7 members

20

7-10 members
Above 10
members

Family size
Less than 3
members

Total

1
40

So
ny

L
G

23

40

20

50
7.
5
2.
5
10
0

15

50
3.
3
3.
3
10
0

1
1
30

9
1
2
2

%
22.
7
9.1
22.
7
40.
1
5.3
4
10
0

Philli
ps

%
16.
67
33.
34
38.
89
5.5
5
5.5
5

18

100

3
6
7
1

Hai
er

Tot
al

Total
%

15

12.5

20

32

26.7

60

53

44.2

20

16

13.3

0
10
0

3.3

120

100

10

(Source: Field Survey, 2012)


From the above table, the consumers with their favorite brand corresponding to their family size
can be reflected. In case of Samsung Brand, most of the respondents preferring that brand fall
in the family size of (5-7 members). 50% of them fall in this group. 40% of the respondents who
prefer Samsung brand fall in the group of (3-5members). In the same way, 7.5% of them fall in

61

the group of (7-10 members) and the rest 2.5% of them belong to the family size of (Above 10
members.
In case of Sony Brand also, most of the respondents preferring that brand fall in the family size
of (5-7 members). 50% of them fall in this group. 23.33% of the respondents who prefer Sony
brand fall in the group of (Upto 3 members). In the same way, 20% of them fall in the group of
(3-5 members), 3.3% of them belong to the (7-10 members) and (Above 10 members) each.
In the same way, in case of LG, majority i.e. 40.1% of the total respondents preferring this brand
belong to the family size of (7-10 members). In the same way, 22.73% of them belong to the
family size of (Upto 3 members) and (5-7 members) each. 9.1% of them belong to the family
size of (3-5) members and the rest 5.34% of them belong to the family size of (Above 10
members)
Talking about Phillips brand, majority i.e. 38.89% of the respondents preferring this brand
belong to the family size of (5-7 members). In the same way, 33.33% of them belong to the
family size of (3-5 members), 16.67% of them belong to (Upto 3 members) and 5.5% of them
belong to the family size of (7-10 members) and (Above 10 members) each.
Similarly, in case of Haier brand, majority, i.e. 60% of the total respondents who have chosen it
as a favorite brand belong to the family size of (5-7 members). In the same way, 20% of them
belong to the family size of (3-5 members) and the rest 20% of them belong to the family size of
(7-10 members).

4.2.18 Factors causing Brand switching:


The consumers were asked regarding the various factors that causes brand switching. The
overall findings are shown in the following table and Pie chart:
Table No. 22: Factors causing Brand Switching
Percentage
Factors

No

(%)

Dissatisfaction

28

23.33

Boredom

12

10

New innovation

48

40

Sales promotion

21

17.5

Others

11

9.17

120

100

Total

(Source: Field Survey, 2012)

62

Factors causing brand switching


Others
9%

Dissatisfaction
23%

Sales promotion
19%

Boredom
10%
New innovation
40%

Figure No. 12: Factors causing Brand Switching


The data presentation shown in the above table and figure is the response to the question
regarding the various factors causing brand switching in LCD and LED Television. It can be
seen that majority of the respondents i.e. 40% of them have stated that brand switching is
caused due to New innovation, Similarly, 23.33% of them have stated that Dissatisfaction
causes brand switching. 17.5% of them have stated that brand switching is caused by Sales
promotion, 10% of the total respondents stated that Boredom causes brand switching and rest
i.e.9.17% of them stated that there are other factors that causes brand switching.

4.2.19 Suggestions:
The respondents were asked whether they have any suggestions to their preferred brands of
LCD and LED Television. The overall finding from this open end question is summarized here
under:

The respondents mentioned that Price of the LCD and LED Television is quiet high. They
focused that it would have been much better if the price of those consumer goods was little
lower so that they could afford for a better Television.

Majority of the respondents also focused that the supplier should provide after sales
services.

They also told that it would have been more easier if the suppliers provide more years of
warranty.

63

The respondents also highlighted that there should be more number of accessible
showrooms so that the consumers can easily buy those consumer goods.

Sales Promotions should be enhanced by those brands so that it can create differentiation
among the products and the consumers can get more aware about LCD and LED
Television.

Many of the respondents reflected that the company should provide financial aid to the
consumers at the time of purchasing LCD and LED Television.

4.3 Type of Statistical Tests Performed


The statistical tests are of various types in nature but under this study, two sided tests of
hypothesis for primary data analysis only which is done through Chi square test. This test is
used to determine whether a set of proportions have specified numerical values and analyze
bivariate cross-tabulated data. This test has been performed in this study:

4.4 Inferential Analysis and Discussion


To test the pre-determined hypotheses of different variables, at this phase, Chi-square test has
been performed which are shown below.
4.4.1 Test of Hypothesis of dependency between Age group of a consumer and brand:

From the Chi-square calculation, the computed value of Chi-square is found to be 15.51 and the
Chi-square tabulated value is 23.542 with 16 Degrees of Freedom in 10% of significance level in
10% of significance level. Here, the calculated value of Chi-square is less than the tabulated
value i.e. (15.51<23.542) which lies in the acceptance region. Hence, our Null Hypothesis is
accepted and it is conclude that there is no dependency between Age group of a customer and
brand. (Please Refer to Appendix No.2 for Chi-square test)

4.4.2 Test of Hypothesis of dependency between Income level of a consumer and brand:
From the Chi-square calculation, the computed value of Chi-square is is found to be 28.87 and
the Chi-square tabulated value is 23.542 with 16 Degrees of Freedom. Here, the calculated
value of Chi-square is greater than the tabulated value i.e. (28.87>23.542) which lies in the
rejection region. Hence, we reject our Null Hypothesis and it is conclude that there is
dependency between Income level of a customer and brand. (Please Refer to Appendix No. 2
for Chi-square test)

64

4.4.3 Test of Hypothesis of dependency between Education level of a consumer and


brand:
From the Chi-square calculation, the computed value of Chi-square is found to be 41.46 and the
Chi-square tabulated value is 23.542 with 16 Degrees of Freedom in 10% significance level.
Here, the calculated value of Chi-square is greater than the tabulated value i.e. (41.46>23.542)
which lies in the rejection region. Hence, we reject our Null Hypothesis and it is conclude that
there is dependency between Education level of a customer and brand. (Please Refer to
Appendix No. 2 for Chi-square test)

4.4.4 Test of Hypothesis of dependency between Family size of a consumer and brand:
From the Chi-square calculation, the computed value of Chi-square is found to be 38.60 and the
Chi-square tabulated value is 23.542 with 16 Degrees of Freedom in 10% significance level.
Here, the calculated value of Chi-square is greater than the tabulated value i.e. (38.60>23.542)
which lies in the rejection region. Hence, we reject our Null Hypothesis and it is conclude that
there is dependency between Family size of a customer and brand. (Please Refer to Appendix
No. 2 for Chi-square test)

In this way, this chapter was revolved round the presentation of the result that was based on the
primary data in order to meet the main objective of the study. Actually, this has provided main
findings regarding the study which has also helped for drawing the conclusions from the study
which will be highlighted in the next chapter.

65

CHAPTER 5
SUMMARY AND CONCLUSION
This chapter is the final body of the research. It includes the summary of the research,
conclusion drawn, and the recommendation to make further improvement for this study, A
study on the attributes of Brand Loyalty of Nepalese consumer in LCD/LED TV purchasing
Decision.

5.1 Summary of Findings


The Nepalese TV market has seen significant transitions in last one decade. The market is still
dominated by CRT TV is gradually shifting towards LCD TVs and is now evolving towards LED
TVs. Consumer's demand for multi-functional services, on-going TV network digitization and
increasing internet penetration is helping smart TV market to grow in Nepal.
Consumers are the sovereign power of the modern marketing world. The products manufacturer
wants to sell but the ones that consumers want to buy. Every successful product in the modern
marketing world is an embodiment of the consumers needs, wants, prestige, preference,
satisfaction, aspiration and mental horizon or understanding the consumer in total is the secret
of success today. Most of the manufacturers or marketers or sellers are spending a good deal of
money for the promotion of their brands. That is to say, promotional activities are also
increasing fast in the country. All these show that markets in Nepal are growing fast and
entering into an era of cutthroat competition.
Knowledge of brand loyalty market is easier to understand the consumer brand loyalty, exposes
the consumers preference, attitudes and purchasing pattern relating to different brands of the
product available in the market. These factors like preference, attitude and purchasing pattern
as to a great extent, directly and indirectly related with the consumers satisfaction, social status,
earning, aspiration and ambition.

Major finding of the study:


The study was based mainly on primary data collected by using questionnaire whose findings
are summarized and presented as follows:

Findings from primary data:


The major Findings of the primary study are:

Nepalese consumers give high importance to brand in the consumers durable goods. The
weighted mean of the various important points given by the different respondents is 2.78 in
the consumer durable goods and 2.53 in the consumer non durable goods.

From the analysis of data, it has been found that majority of the respondents belong to (3040 Years), i.e. 40% of the total respondents belong to this age group and 29.17% of them
belong to (40-50 Years).

66

It has been also found that majority of the total respondents belong to the family size of (5-7
Members). 44.22% of them belong to this size and 26.7% of them belong to the family size
of 3-5 Members).

In case of Education level, majority of the respondents i.e. 33.3% belong to the Masters
Level. In the same way, 25% of them have education of Bachelors Level and 23.3% of them
have education of Certificate Level.

After analyzing the Income level of the respondents, it can be seen that majority of the
respondents belong to the income group of (20-40 Thousand). 43.33% of them belong to
this group and 19.17% of the total respondents belong to the group of (40-60 Thousand).

It has been found out that majority of the respondents preferred Samsung LCD and LED
Television as their favorite brand. 33.33% of the total respondents have stated that they
have Samsung LCD/LED Television. In the same way, 25% of them said that they have
Sony brand. LG, Phillips and Haier were least preferred brand in comparison to Samsung
and Sony LCD and LED brand.

By the tabulation of the Primary data it is has been found that some respondents have
selected the good function in their favorite brand while others have selected good design or
reasonable price. Therefore the majority of the respondents have selected either
reasonable price or good function in their most favorite brand.

Talking about the way of purchasing LCD and LED Television, it has been found out that
consumers preferring Samsung and Sony purchase by brand rather than inspection and
majority of the consumers preferring LG, Phillips and Haier brand purchase by inspection.

It has been found out that the main factor influencing for purchasing LCD and LED
Television is advertising, however, a new brand and price of a particular brand also affects
in a great deal.

In case of alternative option if the brand is not available, it has been found out that in case
of Samsung, Sony and LG, majority of the respondents stated that they would wait for them
whereas in case of Phillips and Haier, majority of them told that they would buy another
one. From this, it can be said that consumer preferring Samsung, Sony and LG are more
brand loyal in comparison to Phillips and Haier brand

From the analysis, it has been found that most of the respondents seem to have ability to
judge the brand. In case of Samsung, majority i.e. 33.33% of the respondents stated that
they have very ability to judge their brand. In case of other brands, majority of the
respondents have stated that they have moderate level of ability to judge their brand. This
shows that Brand awareness of the Nepalese consumers are found to be high.

67

In case of deciding particular brand before buying, it has been found out that majority of the
respondents of the brands like Samsung, Sony and LG decide before buying. 66.67% of the
respondents preferring Sony brand, 70.83% of them preferring Samsung brand and 58.33%
of them preferring LG brand decide their brand before buying. It shows that the consumers
preferring Samsung and LG seem more loyal than consumers preferring Phillips and Haier
from this part of analysis.

In case of having knowledge of alternative brand, it has been found out that majority i.e.
91.67% of the respondents stated that they have knowledge of alternative brand in the LCD
and LED Television market.

From the data analysis, it has been found out that Majority of the respondents preferring
Samsung, Sony and LG brand of LCD and LED Television brand stated that their choice
match with their family members. 82.5% of the respondents' choice preferring Samsung
brand match their choice with thier family members, 73.33% of the respondents' choice
preferring Sony brand match with their family members and 59.09% of the respondent's
choice preferring LG brand match with their family members.

From the cross tabulation analysis of sex and brand, It has been found that in all the
brands, male consumers are higher than the female consumers.

From the cross tabulation analysis of age and brand it has been found out that majority of
the respondents belong to the age group of (30-40 Years). In case of Samsung brand,
majority i.e. 43% of the total respondents belong to this group. In case of Sony brand,
43.3% of them belong to (30-40 Years) group. In the same say, 50% of the total
respondents preferring Phillips brand belong to the same age group, 40% of the total
respondents preferring Haier brand belong to (30-40 Years) but in case of LG brand, the
majority i.e. 40.91% of the total respondents belong to (40-50 Years).

Similarly, from the cross tabulation analysis of Income and brand it has been found out that
majority of the respondents preferring their favorite brand belong to the monthly income
group of (20-40 Thousands) i.e. In case of Samsung brand- 47.5%, Sony- 43%, LG- 40.9%,
Phillips- 38.89% and Haier- 40% belong to the monthly income level of (20-40 Thousand).

From the cross tabulation analysis of Education level and Brand, it has been found out that
most of the respondents preferring their brand belong to Certificate Level and Masters
Level. In case of Samsung and Sony brand, 42.5% and 57% of the total respondents
belong to Masters Level respectively. In the other hand, in LG, Phillips and Haier brand,
majority of the total respondents i.e. 40.9%, 33.33%, and 40% of the total respondents
belong to Certificate level respectively.

68

The cross tabulation analysis between family size and brand reveals that majority of the
respondents preferring their brands belong to the family size of (5-7 Members) in all brands
except LG brand. Majority i.e. 50% of the total respondents preferring Samsung brand
belong to family size of (5-7) Members. 50%, 38.89% and 60% of the total respondents
preferring Sony brand, Phillips brand and Haier brand respectively belong to family size of
(5-7) Members. However, 40% of the total respondents preferring LG brand belong to family
size of (7-10) Members.

In case of dependency between Age and brand, Income and brand, Education level and
brand and Family size and brand, the Chi-square testing was employed. From the Chisquare testing, it has been found out that there is no dependency between Age group of a
customer and brand however, there is dependency between Income level of a customer
and brand, Education level of a customer and brand and there is also dependency between
Family size of a customer and brand

5.2 Conclusion and Recommendation:


5.2.1 Conclusion:

Marketing is selling through advertising which means selling and advertising are the strongest
parts of marketing for the people. Marketing helps an organization to find out what the
customers want. It also helps to decide what products are to be made. The decision is carried
on after research in the market.
Production is the prime activity of every industry and successful marketing of the product is the
ultimate goal. Todays marketing is characterized by globalization, technological changes, and
strong competition. Successful marketers are those who deliver what customers are willing to
purchase as well as according to their ability to purchase. For this reason, marketers today
conduct many researches to study consumers buying decisions. Once it is understood,
marketers become able to predict and shape their marketing strategies accordingly. Without
doubt, marketers who understand markets and consumer behavior have great competitive
advantage over other competitors. Therefore, it is obvious that a production organization or
manufacturer must determine the needs, wants of their customer first, and then brings the
product in the market accordingly.
Nowadays, most of the consumers buy products with the help of brand rather than by inspecting
the products. It means, successful marketing of a product means successful marketing of the
brand of that product.
A consumers buyer behavior is influenced by four major factors; cultural, social, personal and
psychological factors. These factors cause consumers to develop product and brand
preferences. Although many of these factors cannot be directly controlled by marketers,
understanding of their impact is essential, as market mix strategies can be developed to appeal

69

to the preferences of the target market, while purchasing any product, a consumer goes through
a decision process. This process consists up to five stages: problem recognition, information
search, evaluation of alternatives, purchase decision and post purchase behavior. The length of
this decision process will vary ranging from shorter routine response behavior to limited problem
solving and a more comprehensive extensive problem solving. A consumer may not act isolated
in the purchase but may be influenced by any of several people in various roles.
To understand brand loyalty, the consumer buying behavior should also be considered. There
are six stages in the buying process: trigger, consider, search, choose, buy and experience.
Trigger is the first and most important process as this takes place when a consumers mind
clicks for a need of a product.
Brand loyalty is the consumers conscious or unconscious decision expressed through intention
or behavior to repurchase a brand regularly. It occurs because the consumer perceives that the
brand offers the right product features, image or level of quality at the right price. Consumer
behavior is habitual because habits are safe and familiar. In order to create brand loyalty,
marketers must break consumer habits, help them acquire new habits and reinforce these
habits by reminding consumers of the value of their purchase and encourage them to continue
purchasing those products in the future. Competition is the main characteristic of modern
marketing. Competition has been very tough in the Nepalese consumer market together with
increase in the number of units of industries producing different types of consumer goods. On
the one hand, Nepal's own industries are producing different types of products and on the other
hand, products of different types are being imported from other countries. Today, so many
brands of even a specific product category are being sold in the Nepalese market. Every
producer or marketer is trying their best to prove their product to be the best. This can be
observed from the promotional efforts like TV, Advertising, Radio Advertising, Newspaper
advertising, Posters, Hoarding boards, personal selling and other promotional tools etc. calling
up to buy their product. After all, every producer or marketer wants to develop a market share
highly loyal to his product or brand. These circumstances prevalent in Nepalese market signify
the need of understanding brand loyalty behavior of the consumer.
The Nepalese TV market has seen significant transitions in last one decade. The market is still
dominated by CRT TV is gradually shifting towards LCD TVs and is now evolving towards LED
TVs. Consumer's demand for multi-functional services, on-going TV network digitization and
increasing internet penetration is helping smart TV market to grow in Nepal.
Televisions are now available in every price range and with an immense variety to choose from.
Coming within an affordable budget range, it is becoming easy for consumers to be in tune with
their needs. Television sets ranges from anything from 14 to 50 and consumers have a variety
of choices, from color TVs to LCDs, LEDs and complete home theatre system.

70

Brands like SAMSUNG and SONY are popular in the country and are well-known international
brands to begin with, catering mainly to the upper class segment of the country. LG is another
brand that is creating waves in Nepal, known for innovative styles and designs.
The major objectives of this study was to understand the importance of durable goods in
Nepalese market, to analyze the most preferred and favorite brand of LCD/LED Television, their
reasons behind preferring those brands, to analyze the brand consciousness and awareness of
LCD/LED Television in Nepalese consumers, to find out the various factors while purchasing
LCD/LED Television, and to find out the dependency between Sex and brand, Income and
brand, Education level and Brand and Family size and brand.
The applied data in this study are mainly primary in nature. Therefore, the multiple research
designs were employed in this study for accomplishing different objectives. Hence, the
descriptive, well as inferential research designs have, therefore, been included in the present
study.
Questionnaire and the survey has become important tool for accomplishing the major objective
of this study. 200 questionnaires were distributed to the respondents who have got Television
and out of them 120 questionnaires were retrieved from the consumers who have LCD/LED
Television. The study is based on the qualitative measure of data. As per the nature of this
research, the entire focus is on primary data in the form of list of questionnaire has been used to
achieve the research objectives.
Under the study, descriptive statistics were used to simply describing what is and what the data
shows regarding factors affecting the purchasing decision of different brands of LCD/LED
Televisions. For further explanation, the data have been presented and analyzed through the
types of graph and tables. Under graphical presentation of the data, pie chart and bar diagram
has been used while the frequency table (univariate) and cross tabulations (bivariate and multi
variate) are used for the tabular presentation of data.
Inferential Statistics investigate questions, models and hypotheses were also used in this study.
For the study, this statistics has been used to make inferences from our data to more general
conditions and test whether there is dependency between Sex and brand, Income and brand,
Education level and Brand and Family size and brand. For this, Chi Square Test Model was
used.
After the systematic collection of data for the fulfillment of the objectives of the study and after
having their interpretation and analysis, this study has come up with various conclusions
regarding Nepalese LCD/LED Television Market, current scenario of most preferred brand in
LCD/LED Television, consumer's level of brand consciousness and awareness. The
conclusions made by this study are presented here under:
Nepalese consumers give high importance to brand in consumer durable goods.

71

Another finding of the study is that the consumers mostly prefer Samsung, Sony and LG
LCD/LED brand.

One of the findings of the study is that either reasonable price or good function is the main
reason behind being the most favorite brand.

It has been found out that consumer preferring Samsung and Sony purchase by brand
rather than inspection.

It has also been found out that the main factor influencing for purchasing LCD and LED
Television is advertising, however, a new brand and price of a particular brand also affects
in a great deal.

Consumer preferring Samsung, Sony and LG are more brand loyal in comparison to Phillips
and Haier brand.

Brand awareness of the Nepalese consumers regarding LCD/LED Television market is


found to be high.

Most of the consumers have the knowledge of alternative brand in the LCD and LED
Television market.

It has been also found out that the main reason for brand switching is due to New
innovation, and dissatisfaction.

From the Chi-square testing, it has been found out that there is no dependency between
Age group of a customer and brand however, there is dependency between Income level of
a customer and brand, Education level of a customer and brand and there is also
dependency between Family size of a customer and brand.

5.2.1 Recommendation:
Based on the theoretical and empirical works reviewed, research methodology adopted and
major findings of the study; and the suggestions provided by the consumers, the study deserves
to provide some recommendations to the various suppliers of different brands of LCD/LED
Televisions. Some of the recommendations are:

Consumers preferring LCD/LED Television of Samsung, Sony and LG brands are found to
be loyal in comparison to other brands. So the company should focus on the improvements
of attracting sales service.

As the research shows that the majority of the respondents preferring their brands belong to
(30-40 Years) and it has been also found out that most of the consumers preferring their
brand belong to having monthly income level of (20-40 Thousand), also, most of them
belong to education of Masters Level, and most of the respondents preferring different
brands belong to the family size of (5-7 members). So marketers should fix up the suitable
marketing mix strategy which can captivate the attention and motivation of the young
consumers Marketers should focus on young educated in their marketing activities.

72

Nepalese consumers are influenced by advertising. So the company should focus more on
the advertising media whether through visual or direct media

The majority of the consumers switch brands due to new innovation. So the marketer
should focus more in the existing product of the same brand

The respondents are aware of different brands available in the market. So the marketers
should focus more on their own products by giving some extra scheme than the
competitor's products.

It is apparent that people are price sensitive. So the marketers should focus on the
competitive price

Majority of the respondents also focused that the supplier should provide after sales
services, and more years of warranty.

The respondents also highlighted that there should be more number of accessible
showrooms so that the consumers can easily buy those consumer goods.

In this way, this chapter was the final body of the research which included summary of the
research, conclusion drawn and the recommendation. In fact, this chapter shows how the study
has accomplished its objectives too.

References:

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Edn
Fry, Joseph N, (1973) Consumer loyalty to Bank: A longitudinal Study the Graduate school
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(Unpublished Masters Degree thesis, T.U.)
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Kirtipur
Harper W. Boyd and William F. Massy, Marketing Management: An Analytical problem
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Jagat Timilsina (1999) A Study of Buyer behavior in T.U. Kirtipur
st

Kathiwada, Pradip Kumar (1979), Methodology of Research, Kathmandu, 1 Edn


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Kathmandu
Kothari, CR (1998) "Research Methodology, H.S. Poplai for Vishwa Prakashan, New Delhi
Kotler Philip (1988) Marketing Management Analysis, Planning, Implementation and Control
th

Prentice-Hall of India Ltd. New Delhi, 6 Edition


Laster Guest,(1964) Brand Loyalty revisited-A 20years report, A Journal of Applied
Psychology, Vol 48
Nepal, Damodar, (2002) A Study on Brand Loyalty of the Nepalese consumers T.U. Kirtipur
Panta, Yogesh, (1993) A Study on Brand loyalty in T.U. Kirtipur
Raj S.P. "Striking of Balance between Brand Popularity and Brand Loyalty, Journal of
Marketing quoted from Shiffman & Kanuk, OP-Cit Redman, L.V. and Moray, A.V.H.
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xv

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xvi

Appendices

xvii

Appendix 1: Survey Questionnaire


A study on the attributes of Brand Loyalty of Nepalese consumer in LCD/LEDTV
purchasing Decision

Dear Sir/Madam;
I am doing a research on the topic of A study on the attributes of Brand Loyalty of
Nepalese consumer in TV purchasing Decision in Partial Fulfillment of the Requirements
of the degree of Master of Business Administration (M.B.A.) The questionnaire given below
will be very helpful to collect primary data in respect of my research work. Your sincere and
unbiased response will be highly beneficial and as such will be appreciated. Therefore, I
would like to request for your grateful opinions and correct information's regarding these
questions. The information you provide hereby will be kept confidential and be solely used for
this research purpose.
I hope forward for your kind cooperation.

Questionnaire

Respondents details
1. Name

..

2. Sex

3. Age:

Below 20 Years

[ ]

20-30 Years

[ ]

30-40 Years

[ ]

40-50 Years

[ ]

4. Family Size

Up to 3 members

3-5Members

5-7 Members

7-10 Members

Above 10 Members

5. Education

Upto SLC

Certificate Level

Bachelors Level

Masters Level

6. Monthly family income level


Upto Rs. 10,000
Rs. 10,000 Rs. 20,000
Rs. 20,000 Rs. 40,000
Rs. 40,000 Rs. 60,000
Above 60,000

[
[
[
[
[

]
]
]
]
]

7. Please rate the following giving the points 1 to 5. 1 being minimum importance and 5 being
more important
Consumer Durable Goods

Consumer Non-Durable Goods

8. Which brand LCD/LED TVdo you have?


a)
b)
c)
d)
e)

LG
SONY
SAMSUNG
PHILLIPS
HAIER

[
[
[
[
[

]
]
]
]
]

[
[
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[
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]

[
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[
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[
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[
[
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[
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]
]
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]
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]

9. Which brand do you prefer?

LG
SONY
SAMSUNG
PHILLIPS
HAIER

10. Why is the brand your most favorite?

LG
i. Reasonable price
ii. Good Design
iii. Good Function
SONY
i. Reasonable price
ii. Good Design
iii. Good Function
SAMSUNG
i. Reasonable price
ii. Good Design
iii. Good Function
PHILLIPS
i. Reasonable price
ii. Good Design

iii. Good Function


HAIER
i. Reasonable price
ii. Good Design
iii. Good Function

[
[
[
[
[

]
]
]
]
]

[
[

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]

[
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]

11. How do you buy TV

By Brand
By Inspection

12. What factors affects you buying a TV set?

Price
Advertisement
A new brand
None

13. What would you do if your favorite brand is not available in the market?

Wait for the brand


Buy the alternative
Do not buy at all

[
[
[

]
]
]

14. How much confidence do you have to judge a brand?

Very High
High
Moderate
Low

[
[
[
[

]
]
]
]

[
[

]
]

15. Do you decide on any brand before buying?

Yes
No

16. Are there any alternative brand available in the market?

Yes
No

[
[

]
]

17. Which is the most preferred brand in your family?

LG
SONY
SAMSUNG
PHILLIPS
HAIER

[
[
[
[
[

]
]
]
]
]

18. Which factor do you think makes consumer switch brands?

Dissatisfaction
Boredom
Innovation
Sales Promotion
None

19. Do you have any suggestions in your preferred brand?

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Thank you for your valuable time and kind cooperation

Appendix 2: Chi-square calculations:


1. Age group and brand

OF-EF

(OF-EF)^2

(OF-EF)^2/EF

1.28

1.72

2.96

2.31

2.33

-1.33

1.77

0.76

1.75

-0.75

0.56

0.32

5.83

-4.83

23.33

4.00

0.583

0.417

0.17

0.30

3.67

0.33

0.11

0.03

6.67

0.33

0.11

0.02

-2

4.00

0.8

0.00

1.67

1.33

1.77

1.06

8.88

-3.88

15.05

1.70

17

16

1.00

0.06

13

12

1.00

0.08

7.2

1.8

3.24

0.45

6.42

2.58

6.66

1.04

11

11.67

-0.67

0.45

0.04

10

8.75

1.25

1.56

0.18

5.25

-1.25

1.56

0.30

2.92

-1.92

3.69

1.26

1.83

-0.83

0.69

0.38

3.33

0.67

0.45

0.13

2.5

0.5

0.25

0.1

1.5

-0.5

0.25

0.17

0.83

0.17

0.03

0.03

Observed
frequency (OF)

Expected
Frequency (EF)

Total (Chi-Square calculation)

15.51

2. Income and Brand:

OF-EF

(OF-EF)^2

(OF-EF)^2/EF

2.67

-2.67

7.13

2.67

-2

4.00

1.47

1.53

2.34

1.59

1.2

1.8

3.24

2.7

0.67

1.33

1.77

2.64

-4

16.00

2.29

5.25

-1.25

1.56

0.30

3.85

3.15

9.92

2.58

3.15

1.85

3.42

1.09

1.75

0.25

0.06

0.04

19

17.33

1.67

2.79

0.16

13

13

9.53

-0.53

0.28

0.029

7.8

-0.8

0.64

0.082

4.33

-0.33

0.11

0.025

13

7.67

5.33

28.41

3.704

5.75

0.25

0.06

0.011

4.22

-3.22

10.37

2.457

3.45

-1.45

2.10

0.609

1.92

-0.92

0.85

0.441

5.33

-0.33

0.11

0.020

2.25

2.93

-0.93

0.86

0.30

2.4

-1.4

1.96

0.82

1.33

-0.33

0.11

0.08

Observed
frequency (OF)

Expected
Frequency (EF)

Total (Chi-Square calculation)

28.87

3. Education Level and brand

OF-EF

(OF-EF)^2

(OF-EF)^2/EF

5.67

-2.67

7.11

1.25

4.25

-4.25

18.06

4.25

3.12

4.88

23.85

7.65

2.55

1.45

2.10

0.82

1.42

0.58

0.34

0.24

9.33

-3.33

11.11

1.19

-4

16.00

2.29

5.13

3.87

14.95

2.91

4.2

1.8

3.24

0.77

2.33

1.67

2.78

1.19

12

10

0.4

7.5

1.5

2.25

0.3

5.5

-2.5

6.25

1.14

4.5

-1.5

2.25

0.50

2.5

0.5

0.25

0.1

17

13.33

3.67

13.44

1.01

17

10

49

4.9

7.33

-5.33

28.44

3.88

-3

1.5

3.33

-2.33

5.44

1.63

1.67

0.33

0.11

0.07

1.25

-0.25

0.06

0.05

0.92

-0.92

0.84

0.92

0.75

1.25

1.56

2.08

0.42

-0.42

0.17

0.42

Observed
frequency (OF)

Expected
Frequency (EF)

Total (Chi-Square calculation)

41.46

4. Family size and brand

OF-EF

(OF-EF)^2

(OF-EF)^2/EF

-5

25

3.75

3.25

10.5625

2.82

2.75

2.25

5.0625

1.84

2.25

0.75

0.5625

0.25

1.25

-1.25

1.5625

1.25

16

10.67

5.33

28.44

2.67

-2

0.5

5.87

-3.87

14.95

2.55

4.8

1.2

1.44

0.3

2.67

-0.67

0.44

0.17

20

17.67

2.33

5.44

0.31

15

13.25

1.75

3.0625

0.23

9.72

-4.72

22.25

2.29

7.95

-0.95

0.9025

0.11

4.42

1.58

2.51

0.57

5.33

-2.33

5.44

1.02

-3

2.25

2.93

6.07

36.80

12.55

2.4

-1.4

1.96

0.82

1.33

0.67

0.44

0.33

1.33

-0.33

0.11

0.08

0.73

0.27

0.07

0.10

0.6

0.4

0.16

0.27

0.33

-0.33

0.11

0.33

Observed
frequency (OF)

Expected
Frequency (EF)

Total (Chi-Square calculation)

38.60