DEMOGRAPHIC ANALYSIS OF PEOPLE WHO OWN CARS IN

BHARATPUR AREA

Submitted By:
Smriti Shrestha

A Project Work Report submitted to Pokhara University in partial

fulfillment of the requirements for the Degree of
Bachelor of Business Administration – Banking Insurance (BBA-BI)

At the
Boston International College
Bharatpur-10, Chitwan
Pokhara University

Arungkhola, Nawalparasi
November/2020
 DECLARATION

I hereby, declare that the work reported in this titled “Demographic Analysis of
people who own cars on Bharatpur Area” submitted is the record of my original
work under guidance of Dr. Surendra Ghimire, teacher of Boston International
College. This report has never been submitted anywhere else for award of any degree,
diploma.

------------------------------
Signature
Smriti Shrestha

ii
 CERTIFICATE

This is to certify that the project work titled “Demographic Analysis of people who
own cars on Bharatpur Area” submitted by Smriti Shrestha Roll no. 18450251
PU registration 2017-2-45-0100 for the partial fulfillment of the requirement of
BBA-BI embodies the bonafide work done by her under my supervision.

-----------------------------
Signature of the Supervisor
Name:
Date:

----------------------------
Signature
Name:
In – Charge of Research
Date:

iii
 ACKNOWLEDGEMENTS

This Project report has been developed in order to fulfill the partial requirement of
Pokhara University for the completion of BBA-BI. This is an individual task assigned
to me during my academic study in BBA-BI, I would remain thankful to many people
for the successful completion of my project report.

I would like to express my deepest appreciation to all those who provided me the
possibility to complete this report. I would like to give a special gratitude to our
subject teacher Dr. Surendra Ghimire whose contribution in stimulating suggestions
and encouragement helped me coordinate in writing this report.

Furthermore, I would also like to acknowledge with much appreciation the crucial
role of the People involved in my report; who allowed me the access to collect the
data required and gave me the permission to use all required equipments and the
necessary materials to complete the task.

Besides I would like to place a deep sense of gratitude to my family members and my
friends who have been constant source of inspiration during the preparation of this
project report. Without their support, guidance and cooperation I would never have
been able to complete this report on time. I am very grateful to numerous friends from
whom I have got valuable suggestion and information for preparing this report. Any
error in this study is my own responsibility; sincere suggestion from the reader for the
further improvement of this study is highly appreciated. It will be my pleasure and
shall consider it my success if this report could be of any help to anybody concerned
thereafter submission.

With Regards,
Smriti Shrestha
BBA-BI 6th Semester
Boston International College

iv
 TABLE OF CONTENTS

A PROJECT REPORT .............................................................................. i

DECLARATION .......................................................................................ii

CERTIFICATE........................................................................................ iii

ACKNOWLEDGEMENTS ..................................................................... iv

TABLE OF CONTENTS .......................................................................... v

LIST OF TABLES ...................................................................................vii

CHAPTER ONE ........................................................................................ 1

INTRODUCTION ..................................................................................... 1
1.1 Background of Study........................................................................................ 1

1.2 Statement of Problem ...................................................................................... 3

1.3 Objectives of Study .......................................................................................... 4

1.4 Need And Scope of Study ................................................................................ 4

CHAPTER TWO ....................................................................................... 7

REVIEW OF LITERATURE................................................................... 7
2.1 Literature Review...................................................................................................... 7

2.1,1 Demographics ........................................................................................................ 8

2.1.2 Theoretical Framework .......................................................................................... 9

CHAPTER THREE ................................................................................. 10

RESEARCH METHODOLOGY ........................................................... 10

3.1 Research Methodology ........................................................................................... 10

3.1.1 Research Design and Sampling ........................................................................... 10

3.1.2 Sample and Sampling Methd ............................................................................... 10

v
3.1.3 Source and Nature of Data ................................................................................... 10

3.1.4 Tools of Analysis ................................................................................................. 11

CHAPTER FOUR ................................................................................... 12

ANALYSIS AND INTERPRETATION OF DATA ............................. 12

4.1 Data Presentation .................................................................................................... 12

4.1.1 Respondent’s Profile ............................................................................................ 12

4.1.1.1 Distribution by Age..................................................................................... 12

4.1.1.2 Distribution by Gender ............................................................................... 13

4.1.1.3 Distribution by Education Level ................................................................. 14

4. 1.1.4 Distribution by Occupation ........................................................................ 14

4.2 Data Analysis .......................................................................................................... 15

4.2.1 Different Brands of Cars ................................................................................ 15

4.2.2 Factoes in Priority while purchasing cars ...................................................... 16

4.2.3 Brand Names impact on Purchase Decision .................................................. 16

4.2.4 Age of respondents and satisfaction factors................................................... 17

4.2.5 Education level of respondents and satisfaction factors ................................ 18

4.2.6 Occupation of respondents and satisfaction factors ....................................... 19

CHAPTER FIVE ..................................................................................... 20

SUMMARY AND CONCLUSION ........................................................ 20

5.1 Summary ................................................................................................................. 20

5.2 Conclusion .............................................................................................................. 21

BIBLIOGRAPHY .................................................................................... 22

vi
LIST OF TABLES

Table No. Title Page No.

1 Annual Car Sales from 2011-2019 A.D. 5
2 Respondents Profile 12
3 Demographic Information by age 12
4 Demographic Information by gender 13
5 Demographic Information by level of education 14
6 Demographic Information by occupation 14
7 Frequency distribution by used brands of cars 15
8 Factors in priority while purchasing cars 16
9 Frequency distribution of “Yes” response 17
10 Age and satisfaction factors 18

LIST OF FIGURES

Figure No. Title Page No.

1 Graph showing Car units sold from 2011-2019 A. D 5
2 Demographic factors affecting purchase of cars 9
3 Research Methodology 11

vii
viii
 CHAPTER I
INTRODUCTION

1.1 Background of Study

The automobile industry today is the most lucrative industry. Due to increase in
disposable income in both rural and urban sector and easy finance being provided by
all the financial institutes, the passenger car sales have increased at a booming rate
over past few years in Nepal. Further competition is heating up in the sector with a
host of new brands coming in and other like Jeep, Peugeot, Mazda, MG, Land Rovers
and BMW all set to venture in the Nepalese markets. One factor that could help the
companies in the marketing of their product is by knowing the customer behavior
while buying cars through demographic analysis of the population in the market.
Demographic analysis is meaningful way to divide a population to gain
a better understanding of its characteristics. These are social and socioeconomic
factors that can reveal how people in different situations will react to a proposal of
some sort (mainly, the goods and services that are offered to them). They are meant to
show trends and general behaviors rather than individualistic specifics. A business
may initially believe that its products, goods and services will appeal to everyone, and
on some level, this can be true. However, there will always be people who are more
likely to be interested in one product over another, and learning how to focus on and
cater to these particular markets is one of the best ways to be successful in today’s
market landscape. Rather than trying to make products that are acceptable to
everyone, companies now work to make products that are exceptional to the key
portions of the market that will want them. This approach requires a lot of data and a
good understanding of demographics.
Demographic breakdowns usually begin with the following characteristics:
 Age: Populations are often broken up by age or by generation (baby boomers,
millennial, Adults, elderly and so on) since one’s life condition can drastically
change over the course of one’s life. It’s also generally accepted that
generations behave differently in the marketplace and have different sets of
values when it comes to their lifestyle.

1
 Gender: Since men and women are under different sets of societal pressures
and expectations, it makes sense that their behavior toward the marketplace
might differ.

 Education level: Level of education doesn’t always correlate with individual

income, but it can correlate with decision-making processes and different
mindsets. In markets where these factors are relevant, individuals with
doctorates may prove to behave differently than a businessman.

 Occupation: The income and living standard of people is directly related to

their occupation, which automatically emphasizes their choices and selection
of the product in the marketplace.

After liberalization, privatization and globalization the automobile sector is

booming in Nepal. The automobile industry is having a strong multiplier effect on the
growth of a country and hence is capable of being the driver of economic growth, so
marketers understand the factors for the consumer’s expectation and satisfaction.
Understanding consumer behavior is one of the more perplexing tasks confronting
every business organization. The difficulty arises from the heterogeneity of
consumers/buyers, from their being group of individuals who differs from one
another.
This demographic analysis report will help in knowing the perception of
different groups of people about the cars available in the Bharatpur market and will
help to sketch a pattern regarding the existing customer buying behavior in the
market. The present study will contribute a deeper understanding of the impact of
different factors on consumer/buyer buying behavior. The purpose of the study is to
know the demographic profile of car users in Nepal as well as effects of selected
demographic factors (age, education, income and occupation) on satisfaction factors
(technical, product quality, appearance and cost & service).

2
1.2 Statement of the problem
This chapter of the research report highlights the problems in the research areas
which ultimately gives us the problems existing in the market areas. Automobile
business is one of the most growing market in context of Nepal.
1.2.1 Research Problem
The consumer is sovereign, deciding whether to accept or reject a product on the
basis of whether or not it meets perceived needs and desires. However, understanding
of consumer buying behavior is a complex and difficult task as it is influenced by
many factors such as cultural, social, personal and psychological. In addition,
consumer behavior is a changing phenomenon. Consumers’ needs and desires
undergo change from time to time. In order to adapt business with changing pace of
consumers’ needs and desires, it is essential for marketers to conduct research
continuously on consumers. Realizing this fact, business enterprises of advanced
countries have carried out a series of researches on consumer behavior. However,
such practices of studying consumer buying behavior are rare in our country and
mainly in Bharatpur area. Here, an attempt has been made to study the influence of
demographic factors (age, gender, education level and occupation) on the purchase
intention and satisfaction factors of car owners in Bharatpur area.
1.2.2 Research Questions
This study aims to expand upon the past studies and understand the factors that
determine the preference of Cars. Several researches have been done on the
preference of cars, consumer behaviors and satisfaction around the world in different
countries, but such research could not be found in context of Nepal. Moreover,
demographic reports are found very rare in context of Nepal. Hence this study is
expected to answer the following questions:
 What are the major factors affecting the car purchase decision?
 How aware are the people about different brands of cars available in
Nepal?
 How satisfied are the customers on the basis of technical accessories,
product quality, external appearance and cost?
 Does different age level, gender, education level and occupation status
effect the car purchasing decision of people?

3
1.3 Objectives of the Study
The focal point to carry out a demographic study is to analyze where the market
products are having the most impacts and whether resources can be better targeted on
the most profitable market segment. The study examine whether there is any
significant differences on consumers’ purchase intention of cars across gender, age
groups and education level. Primary data has been used in the study. The objectives of
this report are as follows:
 To know the demographic profile of car users in Nepal.
 To examine whether there are any significant differences on consumers’ purchase
intention of Cars across gender, age groups, education level and occupation.
 To evaluate the valuation of different car models over different time periods.
 To identify the impact of demographic factors on purchase intention and
satisfaction of car owners (on satisfaction factors like technical accessories,
product quality, appearance and cost) in Bharatpur area.

1.4 Need and Scope of the Study

The automobile industry today is the most lucrative industry. Due to the
availability of easy finance and loans being provided by almost all the financial
institutes and banks the car sales rate has increased every year in Nepal. So the car
selling companies in Nepal are doing their best to make maximum sales of their cars
in this market. Rather than trying to make products that are acceptable to everyone,
companies now work to make products that are exceptional to the key portions of the
market that will want them. This approach requires a lot of data and a good
understanding of demographics. The population is divided by factors like; age,
gender, level of education, income, occupation. Purchase intention of people vary
with varying demographic factors. People with different age group have different
purchase intention. Similar is the case with gender, level of education and occupation.
The main objective of this research report is to identify the impact of demographic
factors (mainly age, gender, level of education and occupation) on purchase intention
of cars in Bharatpur area. Thus, this report may provide insights regarding the
purchase intention of people living in Bharatpur area and help car companies to focus
on a certain group of people with their certain needs.

4
 The annual vehicle sales from 20011-2019 are shown in the table below:

Year Sales Growth

2011 3,204 -

2012 671 -79.06%

2013 7,134 963.19%

2014 14,298 100.42%

2015 10,292 -28.02%

2016 22,000 113.76%

2017 12,612 -42.67%

2018 21,059 66.98%

2019 21,805 3.54%

Source: www.carsalesbase.com
Table 1: Annual Car Sales from 2011-2019 A.D.

Car Units
25000

20000

15000

Car Units
10000

5000

0
2011 2012 2013 2014 2015 2016 2017 2018 2019

Source: www.carsalesbase.com
Fig 1: Graph showing Car units sold from 2011-2019 A.D.

5
From the data and graph above we can see the sales of cars in Nepal are growing at a
booming rate. Thus car selling companies need to study the buying behavior of
consumers and detailed demographic analysis is a major factor that should be taken
into consideration. Businesses may ask for a demographics report for a number of
reasons. Executives may want to look at their sales demographics to see whether
research and development can be done to better customize existing products for
existing target markets, and they may want to look at where there may be sales
opportunities for new products as well. Marketing demographics can show where the
company’s advertising strategies are having the most impact and whether resources
can be better targeted on the most profitable market segments. In cases of the
customer service or consumer social responsibility departments, demographics can
reveal key ways they can make their outreach more effective to existing customers
and to the business’s community.
The most common reason companies undertake the construction of a
demographics report is to plan new marketing strategies or new product lines.
Demographics are incredibly important within the field of marketing. It’s been shown
that generic marketing designed to accommodate everyone is less effective than
crafting a campaign targeted specifically to those who are most likely to buy. Since
marketing and especially advertisements can be so subjective, marketing experts can
easily develop strategic advertisements meant to appeal to a certain socioeconomic
group. Demographics reports are also used to develop future projections about the
market. These predictions are then used to develop new products, hoping to meet the
future needs of the consumer base.

6
 CHAPTER II
REVIEW OF LITERATURE

2.1 Literature Review

Demographic Analysis has always been of great interest to marketers. The
knowledge of consumer demography helps the marketer to understand how
consumers think, feel and select from alternatives like product, brands and the like
and how the consumers are influenced by their environment, the reference groups,
family and salespersons and so on.
Understanding consumer behavior is one of the more perplexing tasks
confronting every business organization. The difficulty arises from the heterogeneity
of consumers/buyers, from their being group of individuals who differs from one
another. "Consumer/ buyer behavior refers to the buying behavior of final consumers-
individuals and households who buy goods and services for personal consumption.
Consumers around the world vary tremendously in age, income, education level and
tastes". (Gary Armstrong, 2009, p. 167). "Buyer's purchase decisions are highly
influenced by the buyer's unique set of cultural, social, personal, and sociological
factors (Kotler, 1991, p. 175). A study highlighted that various socio demographic
factors like high GDP growth, rising income levels, booming knowledge sector and
growing urbanization have contributed towards tremendous growth of passenger car
industry in India, where it also concluded that the Indian consumer is extremely price
sensitive. (Sumantran, 2007). An empirical study of consumer buying behavior
regarding home appliances with special reference to Jaipur city was concluded that
consumer behaviour depends on a no. of variables such as demographic variables.
Michelle A. delivered a demographic analysis on vehicle owners of United
States in December 5, 2019 to obtain insights on the demographics of U.S. consumers
who purchase vehicles, with a breakdown by type of vehicle purchased, gas, hybrid
electric (HEV), and plug-in hybrid electric (PHEV). The study showed that only 5%
of the new cars sold in the U.S. in 2018 were battery based vehicles. Baby Boomers
purchase 62% of new cars in the U.S. but is expected that soon millennial will be the
major purchasers of new vehicles. The average age of a new car purchaser in U.S. as
about 53. A survey from January 2019 showed the breakdown of new SUV
purchasers by age as: <1% are age 24 and under, 43% are 25-54, 26% are 55-64, and

7
31% are 65 and older. 90% or more of new car buyers own their own home. The age
breakdown for buyers of electric vehicles based on a January 2019 survey is as
follows: <1% are 24 and younger, 46% are 25-54, 22% are 55-64, and 32% are 65 and
older. The numbers were slightly different for purchasers of PHEVs: <1% are 24 and
younger, 54% are 25-54, 22% are 55-64, and 23% are 65 and older.

2.1.1 Demographics
Demographics alone do not give a complete picture of the consumer, thus
hampering the marketer in segmenting the market to its full potential (Cooper, 1984).
Bone (1991) indicates that the use of demographic characteristics such as age, income
and employment status can be misleading factors while segmenting markets. Though
income is highly related to buying behavior, it is generally used in segmenting the
market; but it does not take into consideration factors such as activities, interest,
health (Bone, 1991; Burnett & Wilkes, 1985-86; Moehrle, 1990). Social class adds a
greater depth to demographics but it has to be supplemented by other information to
give a meaningful insight of the individual characteristics.

Demography refers to the vital and measurable statistics of a population. The

demographic variables are the personal characteristics such as age, gender, marital
status, educational qualification, occupation, type of family, number of members and
annual income. They are the most popular bases for distinguishing customer groups.
Hence, it is necessary to study the influence of demographic variables on the brand
choice of cars.

Age is frequently used segmentation variable for market (Hawkins et al. 2007;
Kotler and Keller, 2006; Peter and Olson, 2008). Age is constantly used with other
demographic factors like gender, income, and race while conducting research on
consumer behavior (Kimand Kim 2004). Kurtz and Boone (2006) described that age
is influencing factor when it comes to purchasing an automobile and in making the
choice of a particular model, they found that the young consumers in different ages
have different behavior and they also found that the nineteen years old consumer may
behave differently with a twenty five years old consumer. Older people make a
buying decision on the basis of their experience and value of satisfaction which they

8
perceive by utilizing the product and service; however the young people do not rely
on the satisfaction which they perceive from the product or service they also get
information from the sale personnel and then make final buying decision. With the
passage of time the need and preferences of the consumers have been changed, young
people spend on fast food normally and old people spend on the products and services
related to their health. Occupation is a widely used example of these variables.
Gender is another demographic factor that has been explored to examine its impact on
consumer buying behavior, as it relates to product categories. Different studies
showed that men are more risk taking than women and they are more reliance on
themselves to make purchase decision than women (Syed, 2003). The demographics
information gathered in this study include age, education, occupation and gender.

2.1.2 Theoretical Framework

After reviewing different researches concerning purchase intention of
consumers, the own creation of the theoretical framework has been formed. It was
believed that the framework consists of main factors that have impact on purchase
intention. This study designed the framework in consideration to four main factors
that have impact on consumer purchase intention towards purchasing a car.

Age

Level of Education
Intension to purchase car
Occupation

Gender

Fig. 2: Demographic factors affecting purchase of cars

9
 CHAPTER III
RESEARCH METHODOLOGY

3.1 Research Methodology

Research methodology covers the type of research design used for undertaking
population and sample, sampling process, source of data, data collection procedures
and analytical tools used to analyze the data and develop the relationship between
factors influencing purchase intention.

3.1.1 Research Design and Sampling

Descriptive and casual comparative research design has been used in this
research. Descriptive design has been used to determine the percentage and
frequencies of respondents. Due to a constraint on the cost and time aspects of the
research, a convenience sampling approach was employed. Casual comparative
design has been used through cross tabulation. Comparison of means towards car
owners has been done in terms of age group, level of education, gender, occupation.

3.1.2 Sample and Sampling Method

All the people who own cars in Bharatpur area are considered population of
this study. Convenient sampling has been done through selecting samples that fulfill
the study objective design and are easy to reach and contact and questionnaires are
forwarded to them. A sample size of 100 respondents was constituted through the
collection of questionnaires. The sample consists of respondents with variation in age,
gender, occupation and level of education.

3.1.3 Source and Nature of Data

The study follows primary data collected from questionnaires. In this study,
for the primary data collection, the questionnaire method is adopted to collect the data
from different profession and different age group having cars. Judgmental and
convenient sampling technique was followed to gather the opinions of the
respondents. Structured questionnaire method supplemented and unstructured
interviews were extensively used in gathering necessary inputs for the study. Each of
the questionnaires distributed consists of demographics (Age, Gender, Education
10
Level and Occupation). The questionnaires were administered through delivery and
collection method online as well as personal handouts. Among 100 samples collected,
75 were physical handouts and remaining 25 were collected through online forms.
The questionnaires were handed over to car owners met in the houses, streets, service
centers, parking areas of shopping malls, hospitals, colleges, schools.etc located
within Bharatpur area. Collected data has been analyzed by using percentage. All the
responses were usable and put for analysis in the study.
The secondary data is collected from several reports, past research, published
articles and journals. The data collected from questionnaire is then analyzed and the
results are presented in tables and charts.

Research
Approach

Qualitative Quantitative

Secondary Data
Primary Data - Literature Primary Data
- Discussions Review - Customer survey
-Articles
Fig 3: Research Methodology
3.1.4 Tools of Analysis
The software used for analysis of the research data is the MS-Excel software.
First, the data collected from questionnaire is logically and systematically entered into
Excel data sheet and analysis has been done as per the requirement of this study.
Frequency table, percentage analysis, have been derived for descriptive analysis.
Similarly, ANOVA is carried out for inferential analysis. The conclusion and
recommendations are devised based on the findings.

11
 CHAPTER IV
ANALYSIS AND INTERPRETATION OF DATA

4.1 Data Presentation

This section of the research paper describes the demographic grouping of the
respondents. This typically involves age bands, gender, education level and
occupation. The data collected through discussions and questionnaires are analyzed in
a systematic way. The questionnaires and their responses are entered in MS-Excel
from where the general information. The results thus generated are discussed to make
it simpler.

4.1.1 Respondents’ Profile

A sample size of 100 respondents was constituted through the collection of
questionnaires. The questionnaire required the respondents to fill their name, age,
level of education, occupation, gender, model of car they own and valuation of their
car in present market. The obtained data were filled in the table as below:

Name Age Gender Education Car CC Valuation Occupation

level model
Ram Chandra
42 M SLC Suzuki 1200 25,00,000 Businessman
Shrestha

Table 2: Respondents Profile

4.1.1.1 Distribution by Age

Table 3 Demographic information by age
Age Group Frequency Percentage
18-25 6 6%
25-35 14 14%
35-50 53 53%
50-60 18 18%
Above 60 9 9%
Total 100

12
Minimum 23 -
Maximum 72 -
Mean 41 -

The above table shows the age group of the respondents. It is clear from the table that
there are no respondents whose age is under 18 years. Above table shows that the
average age of the respondents was 41years where minimum age was 23 years and
maximum age was 72 years. Most of the respondents are between 35 and 50 years of
age which comprises 53% of the total respondents. It is followed by age group of 50
to 60 years which is 18%. 14% of the respondents are in the age group of 25 to 35
years while 69% of the respondents are 60 years and above and 6% of respondents are
of age group 18-25. To sum up the above figure most of the people in Nepal are likely
purchase cars in their mid-30s to late 40s.

4.1.1.2 Distribution by Gender

Table 4 Demographic information by gender
Gender Frequency Percentage
Male 92 92
Female 8 8
Total 100

According to the above table out of 100 respondents, 92 (92%) respondents were
male while 8 (8%) of the respondents were female. It is clear from the above table
that most of the car purchasers in Nepal are male. Male seem to be the determinant
gender in a family to decide purchasing a car. Thus, companies should focus on
providing the needs and demands of male. However, female gender cannot be ignored
completely because past studies has shown that female numbers are also increasing
every year at a high rate.

13
4.1.1.3 Distribution by Education Level
Table 5 Demographic information by education level
Education Level Frequency Percentage
Below SLC 2 2
SLC 7 7
+2 Level 14 14
Bachelor’s Degree 42 42
Master’s Degree 23 23
Doctorate or PhD 12 12
Total 100

The above table shows the education level of the respondents. Most of the
respondents have education level of Bachelor’s Degree with a percentage of 42%. The
least percentage of people are from the education level of below SLC with a
percentage of just 2%. People with education level of Master’s Degree are the second
most people who own cars with a percentage of 23%. Rest of the education level of
people who own cars in Bharatpur area are SLC with 7%, +2 Level with 14% of
people and Doctorate level with 12%.

4.1.1.4 Distribution by Occupation

Table 6 Demographic information by occupation
Occupation Frequency Percentage
Engineer 11 11%
Businessman 48 48%
Broker 23 23%
Doctor 9 9%
Banker 5 5%
Teacher 3 3%
Other 1 1%
Total 100

Above table shows that among 100 respondents, 48 people are businessman which
comprises 48% of the total respondents while it is followed by 23% of brokers who
own a car. Engineers are the third largest group who purchase cars. They account for

14
11% of the total respondents. This figure could possibly give a hint that the persons
who need to travel a lot are more into purchase car. So, the purchase of cars seems to
be necessity rather than interest or passion in the context of Nepal.

4.2 Data Analysis

Different factors of brand preference of Cars are analyzed and summarized
below using descriptive statistics such as frequencies, mean, standard deviation.

4.2.1 Different brands of Cars

Table 7 frequency distribution by used brands of cars
Brands N Percentage
Hyundai 16 16%
Mahindra 15 15%
Toyota 14 14%
Suzuki 14 14%
Ford 12 12%
Tata 11 11%
Honda 7 7%
Other 11 11%

Above table 7 shows the number of respondents who have ever used the different
brands of car. It was found that 16 (16%) respondents had used Hyundai, 15
(15%) respondents had used Mahindra, 14 (14%) respondents had used Toyota, 14
(14%) had used Suzuki and 12 (12%) respondents had used Ford. 11 (11%)
respondents used Tata; 7 (7%) respondents had used Honda whereas rest of the 11
(11%) respondents had used other brands of cars. It implies that most frequently used
Car brands are Hyundai, Mahindra, Toyota, Suzuki, Ford, Tata, and Honda.

15
4.2.2 Factors in Priority while purchasing cars
Table 8 factors in priority while purchasing cars

Highest rank Lowest rank Mean Std. Deviation

Price 1 6 2.04 1.603

Availability of car parts 1 6 2.5 1.299
Safety 1 6 3.22 1.248
Mileage 1 6 3.29 1.3
Brand Image 1 6 3.53 1.692
Comfort 1 6 4.23 1.82
External Design/Looks 1 6 4.87 1.98
Servicing convenience 1 6 3.86 1.77
Note: 1 represents highest rank and 6 represents lowest rank among the factors
Above table shows the factors in priority while purchasing cars. The table
shows that “Price” factor was given most priority while purchasing Cars with mean
rank of 2.04 (SD 1.603). Availability of the Car parts came second in the rank with
mean rank of 2.5 (SD 1.299). least priority was given to External design of the Cars
while making the purchase. It indicates that, if the parts of the cars are available in the
nearby market, people would buy it more frequently. Marketers should take note of
this factor while making the marketing strategy. Comfort didn’t have as much effect
on purchasing decision as the Safety had.

4.2.3 Brand Name’s impact on purchase Decision

Table 9 Frequency distribution of “Yes” response
Question of Interest N Percent of Cases

Does the brand name influence on your selection of cars 114 91.90%

Would you keep using your current brand 121 97.60%

Would you recommend your current brand 119 96.00%

Above table 9 shows that above 91.90 percent respondents answered in favor
of the questions. Most of them said that brand name influences their car selection.
There is a good impact of name of brands in customers. Likewise, most of them
(97.6%) said that they would keep using the current brand they were using. Which

16
means they are satisfied with the Cars performance. 96% respondent would
recommend their current brands to others.

4.2.4 Age of respondents and satisfaction factors

Generally, age factor refers to the maturity of consumer. Generally elderly
consumers are expected to possess greater knowledge and responsibility than younger
ones. Table 10 brings out the results of the ANOVA conducted to test for significant
difference if any, between the respondents of the different age and various satisfaction
factors.
Table 10 Age and satisfaction factors

ANOVA
Factors Sum of Squares df Mean Square F Sig.
Technical/accessories Between Groups 958.575 4 85.207 2.784 0.000
Within Groups 2693.468 95 30.608
Total 3652.04 99
Product quality Between Groups 116.822 4 10.384 1.518 0.022
Within Groups 605.28 95 6.839
Total 722.109 99
Appearance/external Between Groups 145.499 4 12.933 1.979 0.000
Within Groups 578.5 95 6.537
Total 723.99 99
Cost/service Between Groups 44.949 4 3.995 2.121 0.000

Within Groups 166.720 1.884

95
Total 211.669 99

The above table highlights the results of the ANOVA for different age of respondents
on the satisfaction factors. The calculated F values of 2.784, 1.518, 1.979 and 2.121
for the technical, product quality, appearances and cost & service factors at 95 percent
confidence interval with the p value .000, .022, .000 and .000 respectively which are
all less than 0.05. Thus, the data suggests that there is significant difference between
satisfaction factors and respondents of different age group at 5 percent level of

17
significance. This indicates that different people of different age group of people
prefer different factors for satisfaction.

4.2.5 Education Level of respondents and satisfaction factors

Education strengthens the knowledge of people and plays a vital role in the
consumer decision making process. Education adds confidence and skill to purchase
and use of goods & services. Table 3 brings out the results of the ANOVA conducted
to test for significant difference if any, between the respondents of the different
educational background and various satisfaction factors.
Table 11 Education level and satisfaction factors
ANOVA
Factors Sum of Squares Df Mean Square F Sig.
Technical/accessories Between Groups 164.027 5 93.730 2.620 0.12
Within Groups 3488.017 94 35.775
Total 3652.043 99
Product quality Between Groups 14.537 5 8.307 1.151 0.331
Within Groups 707.571 94 7.220
Total 722.109 99
Appearance/external Between Groups 22.625 5 12.930 1.807 0.085
Within Groups 701.372 94 7.157
Total 723.999 99
Cost/service Between Groups 15.746 5 8.998 4.501 0.000
Within Groups 195.922 94 1.999
Total 211.669 99

The above table highlights the results of the ANOVA for different educational
background of respondents on the satisfaction factors. The calculated F values of
2.620 and 4.501 for the technical and cost & service factors with p value .012 and
.000 respectively are differs significantly at 5 percent level of significance among the
respondents of different education level and The calculated F values of 1.515 and
1.807 for product quality and appearance with p value .331 and .085 respectively do
not differs significantly at 5 percent level of significance among respondents of
different education level. This implies that satisfaction of customers in technical
accessories field and cost depends upon the level of education of the customers.

18
4.2.6 Occupation status of respondents and satisfaction factors
Consumers’ source of income is determined by their occupation. Occupational
status of the respondents largely influenced the buying behavior and satisfaction level
of the consumer. Table 5 brings out the results of the ANOVA conducted to test for
significant difference if any, between the respondents of the different occupation and
various satisfaction factors
Table 12 Occupation and satisfaction factors

ANOVA
Factors Sum of Squares Df Mean Square F Sig.
Technical/accessories Between Groups 114.530 5 57.265 1.574 0.131
Within Groups 3537.513 94 36.375
Total 3652.043 99
Product quality Between Groups 26.858 5 13.429 1.888 0.060
Within Groups 695.25 94 7.113
Total 722.109 99
Appearance/external Between Groups 21.122 5 10.561 1.469 0.167
Within Groups 702.877 94 7.191
Total 723.999 99
Cost/service Between Groups 2.656 5 1.328 0.621 0.760
Within Groups 209.012 94 2.138
Total 211.669 99

Above table represents the ANOVA for significant difference between

different occupational groups of respondents with respect to satisfaction factors. It is
found that the F value of 1.574, 1.88, 1.469, 0.621 with respect to technical, product
quality, appearances /external and cost/ service factors with p value .131,.060,.167
and .760 differs insignificantly at 5 percent level of significance. This implies that
there is no significance difference on the satisfaction factor across different
occupation status.

19
 CHAPTER V
FINDINGS AND CONCLUSION

5.1 Findings of my Study

This chapter consists of the overall summary of the report including the
methods carried out while collecting the data and the major findings of the report.
This study was based on the descriptive and exploratory research design. Total 100
respondents were selected through simple random sampling technique. Questionnaire
were administered for collecting data. For the data analysis different statistical tools
such as percentage analysis, ANOVA were used. ANOVA was applied for the
satisfaction factor and selected demographic variables to calculate F value to know
the significant difference between selected demographic factors (age, education,
income and occupation) and satisfaction factors (technical, product quality,
appearance and cost & service).
Through percent analysis the population or respondents who own cars in
Bharatpur Area were demographically divided on the basis of age, gender, occupation
and level of education. Through the percentage analysis the mean age of people who
own car was found to be 41 years. The people of age group of 35-50 were found to
have own cars the most. Similarly, male seem to be dominant over female. It was
clear that most of the car purchasers in Bharatpur area are male. It was found that
level of education of people also has effects on the purchasing of cars. Most of the
people who own cars in Bharatpur area had Bachelor’s degree and Master’s degree.
Both level of education and occupation status has influence on the mentality and
capability of people on purchasing cars. Businessmen and Brokers were found to have
own the greatest number of cars.
ANOVA was applied for the satisfaction factor and selected demographic
variables to calculate F value to know the significant difference between selected
demographic factors (age, education, income and occupation) and satisfaction factors
(technical, product quality, appearance and cost & service). The significant difference
between the satisfaction factors and different groups were calculated and analyzed.

20
5.2 Conclusion
Marketers need to understand the consumer behavior to take important
marketing decisions related to consumer needs. There are different factors which
influence the consumer buying behavior, namely, socio-economic, cultural,
psychological and personal. The socio-economic factors greatly influence the car
consumers expectations and satisfaction level. Realizing the importance of socio-
economic factors on car market in Bharatpur area, the research analyzed and
concluded that the average age of car users in Nepal is 41 years where majority of the
respondents are male. There is variation in educational status/academic qualification
of the respondents of Car owners. It is understood that the majority of the respondents
have bachelors’ degree. The occupation of the majority respondents is Business. Also,
the study reported that technical, product quality, appearances and cost and service
factors are differing at 5 percent level of significance among respondents of different
age group. For different educational background of respondents on the satisfaction
factors, technical and cost & service factors are differing at 5 percent level of
significant among respondents and product quality and appearances do not differ. For
different occupational group of respondents with respect to satisfaction factors;
technical, product quality, appearances /external and cost/ service factors differ
insignificantly at 5 percent level of significance and there is a no significant
difference between different occupational groups and satisfaction factors. The
economic and social status of the people in Nepal is changing significantly. The
dealer should study the behavior of the people and should bring a car which is suitable
for the market. In order to maximize the customer base, it is recommended that
marketer should target other members also like spouse, friends and children etc. in
order to increase sales.

21
References

Bone P. F. (1991). Identifying Mature Segments. The Journal of Services Marketing,

5, 47-60.

Burnett and W. R. (1985/86.) An Appraisal of the Senior Citizen Segment. Journal of

Retail Banking, 7.

Cooper, P. D. (1984). Elderly Segmentation: A Factor Analytic Approach to

Psychographics Segmentation in Proceedings of the Annual Meeting of the
Southern Marketing Association (Eds) D. M. Klein & A. E. Smith.

Hawkins, D. L., Mothersbaught, D. L., and Best, R. J. (2007). Consumer Behavior:

Building Marketing Strategy (10th ed.). New York, NY: McGraw-Hill Irwin.

Kim, E. Y., and Kim, Y. K. (2004). Predicting online purchase intentions for clothing
products. European Journal of Marketing, 38(7), 883-897.

Kotler, P. and Keller, K.L. (2006).Marketing management. New Jersey. Person

education, Inc.

Kurtz, D. L. and Boone, L. E. (2006). Principles of Marketing, Thomson South-

Western, P-656.

Moehrie, T. (1990). Expenditure Patterns of the Elderly. Monthly Labour Review, 34-
41. Sahayogee, J. (2013). Banking in Nepal: A History of Banking System in
Nepal.

Peter, J. P. and Olson, J. C., (2008). Consumer Behavior and Marketing Strategy,
Singapore, McGraw- Hill/ Irwin

22
23