Chapter 1

Introduction

1.1 Background of Study

Consumer behavior is the study of people's reactions to goods and services, as well as
the marketing of such products and services. The act of using or consuming goods or
services is referred to as consumer conduct. The study of consumer behavior focuses
on how people determine how to spend their limited resources (time, money, effort)
on consumption-related products or aspects (what they buy?). When are they going to

buy? Where do they shop? How do they purchase?) [ CITATION Tri12 \l

1033 ] . Understanding consumer behavior and understanding consumers are never
easy. Consumer behavior studies how people, groups, and organizations choose,
purchase, use, and dispose of products, services, ideas, or experiences to fulfill their
needs and desires. The action of an individual during a transaction is referred to as
"Buyer Behavior" (Mohankumar et al. 2016).
In the present changing technological world using smartphones have become very
popular among consumers specially students and young professionals because of its
distinctive features. “A Smartphone that performs many of the functions of a
computer, usually providing a touch screen interface, Internet access, and an
operating system capable of running downloaded apps,” according to the Oxford
dictionary. The majority of people use apps for web surfing, messaging, navigation,
social media, music listening, news reading, sports, banking, health and fitness, and
taking notes. Calendar, weather forecast and lots of other things (Kumar et al. 2016).
These features and applications in Smartphones somehow have made people’s life
easier either in daily life, at work or for entertainment purposes. There are a variety of
smartphones with different names and brands available in the market such as Apple,
Nokia, Samsung, Huawei, etc. All these things created an arousal in the author’s mind
to study about the consumer behavior regarding Smartphones. Smartphones present
some common features with conventional mobile phone’s characteristics such as
phone style, physical design, color, size which can contribute positively in Buying
Behaviors [ CITATION Shr201 \l 1033 ].

1.2 Objective of Study

The major objectives of this study are:

 To identify and analyze the factors which influence the satisfaction level of
the customer on buying smartphones.
 To analyze and understand consumer attitudes toward different smartphones,
as well as the factors that inspire them to buy.

1.3 Significance of Study

The study will be conducted among Bachelor's students to determine the most
important factors that affect their smartphone purchase decisions. It assists in
understanding the buyer's decision-making process, both internally and together.
It also seeks to determine the impact of various independent variables on the
market, such as brand, convenience, dependability, price, product feature, and
reliability. The significance of the study are as follows:
 This study is able to provide a concept of better understanding on factors that
influence the buying behaviors of smartphones.
 It will be helpful for future researchers who are willing to conduct research on the
related topics.
 This study results in the major dominating factor that influences the buying
behaviors of smartphones.
 Chapter 2
Research Methodology
Descriptive research design was used in this research to study the Factors influencing
Smartphones Buying Behaviors upon the BBA and BBS Students. Convenience
sampling method has been used to collect the data up to 120 samples. Questionnaire
was used to collect the primary data and statistical tools has been used to collect,
analyze, classify and interpret various data that help to find major findings and results
of this research.

2.2 Population and Sample

The population for this study consisted of the Students of D.A.V College and Patan
Multiple Campus who are currently studying B.B.A and B.B.S. The total population
of the survey was 400. The sample size for the study was 197 determined by a sample
size calculator with 95% confidence level and 5% margin of error. However, only
121 data are analysed for this study by using convenience sampling

2.3 Data Collection Procedure

In this study, a quantitative research method was chosen to be used because the study
focuses on factors influencing smartphones buying behaviors. The primary data
collection has been conducted in order to gather data related to the study. The
respondentswere sent the questionnaire between March and early April. The Google
Form is a convenient instrument for data collection. Therefore, structured
questionnaires with closed-end questions are used for data collection for quantitative
research methods. Questionnaire was divided into three section. First part was based
on demographic information, the second part was based on the dependent and
independent variables and the next sections was Likert scale. For all the variables,
each consist of 4 - 5 Statements on Likert scale which was designed to measure the
variables which show major influence factor on buying behaviors. The variables were
measured using a five-point Likert Scale with 1, 2, 3, 4, and 5 representing
stronglyagree, agree, neutral, disagree, and strongly disagree, respectively.

2.4 Data Analysis Procedure

In this study, the collected data has been analyzed using the data analysis tools
like bar-diagram, pie-chart, etc. Moreover, the analyzed data has been interpreted
using various statistical tools such as mean, median, mode and correlation. MS-
Excel 2015 and SPSS 23 version has been used for systematic analysis of the
collected data.

2.5 Limitation of Study

The different Limitations in the research methodology are mentioned below:

 The result may not give an exact representation of the population since the
convince sampling method has been used.
 The sample taken may not represent the population in a better way.
 The view of the respondents is biased therefore, it may not reflect true picture of
data.
 The data were collected through self administered questionnaire only.
 Chapter 3
Data Presentation and Analysis
3.1 Primary Data Presentation and Analysis
The data observed or collected directly from the first- handed that has not been used before are
called primary data. The primary data and information are taken by questionnaire through online
survey i.e google forms among Students of D.A.V and Patan Multiple campus. 121 Respondents
data are taken for the analysis.

Table 3.1.1: Demographic Analysis

Characteristics Caterory Frequency Percentage (%)

Female 53 43.8
Gender
Male 68 56.2
Less than 20 6 5
20-21 61 50.4
Age Group 22-23 44 36.4
24-25 9 7.4
26-27 1 8
Bagmati 79 65.3
Gandaki 11 9.1
Province 1 8 6.6
Permanent Address Province 2 11 9
Province 5 6 5
Sudurpashchim 6 5
D.A.V 63 52.1
College Name
Patan 58 47.9
B.B.A 78 64.5
Field of Study
B.B.S 43 35.5
Total 121 100
2nd Semester 10 12.82
4th Semester 16 20.51
Semester
6th Semester 52 66.67
Total 78 100
1st 17 39.53
2nd 17 39.53
Year
3rd 9 20.94
Total 43 100
Table 3.1.1 shows the demographic Characteristics of the sample. Table 3.1.1 shows the
demographic Characteristics of the sample. The sample includes 43.8% of female
respondents and 56.2% of male respondents. The age of the respondents was divided into
5 groups which includes age group of less than 20, 20-21, 22-23, 24-25 and 26-27. The
respondents of age group 20-21 include the highest percentage of respondents (50.4%)
followed by age groups of 22-23 including 36.4%, age group of 24-25 includes 7.4% of
the respondents and the least percentage of respondents were from age group of 26-27
which includes 0.8%. Describing about the permanent address of the respondents, most
of the respondents in the sample were from Bagmati province which includes 65.3% of
the total. The percentage of respondents from Gandaki province and Province 2 was 9.1.
The respondents from province 1 includes 6.6% of the total and finally the percentage of
the respondents from Province 5 and Sudhurpaschim province was 5%. The sample was
distributed among the students of D.A.V College and Patan College. The respondents
from D.A.V College includes 52.1% and the remaining 47.9% of the respondents were
from Patan College. The respondents were chosen from the field of BBA and BBS. The
percentage of respondents from BBA was 64.5 and the remaining percentage of 35.5
were from BBS. The respondents from BBA field includes the students of 2nd, 4th and
6th Semester. The highest percentage of students were from 6th sem i.e., 66.67 followed
by the students of 4th and 2nd sem which includes 20.51% and 12.82% respectively. The
respondents from BBS field were the students of 1st, 2nd and 3rd year. The students from
both 1st and 2nd year were equal in percentage which includes 39.53% each followed by
the students of 3rd year which includes 20.94%.

Table 3.1.2 Technological Characteristics of the Sample

Percentage
Characteristics Category Frequency
(%)
Less Than a year 9 7.4
1-2 years 27 22.3
How often do You change your
3-4 years 57 47.1
Smartphones?
Above 5 years 28 23.1
Total 121 100
Less Than 10K 5 4.1
11K to 20k 18 14.9
How much would you be willing to pay for 21K to 30K 45 37.2
smartphone? 31K to 40K 27 22.3
More than 40K 26 21.5
Total 121 100
Table 3.1.2 Shows the technological character of the sample. To identify the
technological character of the sample, respondents were asked two questions. The
questions were how often did the respondents change their Smartphones and how much
were they willing to pay for smartphones. The respondents were asked in terms of years
for how often the change their smartphones and they were asked in terms of thousands
for the amount they were willing to pay for the smartphones. The respondents who
changed their smartphone between 3-4 years were higher including 47.1% of the total
followed by 23.1% of the respondents who changed their phones above 5 years.
Similarly, the repondents who changed their phones between 1-2 years were 22.3% and
the least percentage of the respondents including only 7.4 changed their phones in less
than a year. The respondents who were willing to pay Rs 21k-30k were higher in
percentage i.e., 37.2 and the least percentage of the respondents i.e., 4.1 were only the
one wiilling to pay less than 10k foe their smartphones.

Table 3.1.3: Awareness about Brand

 Figure 3.1.4: Different Brands of Smartphones.

Figure 3.1.4 Shows the different brands of the smartphones used by the respondents. The
respondents who used Samsung were higher including 38.34% followed by the users of
xiaomi including 20.66%. The respondents who used apple were 14.05% followed by
Huawie users including 11.57%, users of Oppo were only 5.79%. and use of other brands
of smartphone by 9.09%.

Table 3.1.5: Impact of Brand

Starndard
  N Mean Deviation
Impact of
Brand 121 2.19 1.178

Table 3.1.5 Shows the impact of brand of smartphones among respondents. There was
impact of brand among the respondents with a mean of 2.19 and Standard deviation of
1.178.
 Table 3.1.6: Descriptive Statistics of Brand

Std.
N Mean Deviation
B1 [Brand is important in smartphone
121 2.61 1.428
purchasing.]
B2 [I recommend brands to others.] 121 2.16 1.265
B3 [I prefer internationally recognized
smartphones with good reputation] 121 2.37 1.409

B4 [I consider myself to be loyal to my

smartphone brand.] 121 2.74 1.446
B5 [I think brand determined the quality
and price of smartphone.] 121 2.31 1.371

Table 3.1.6 Shows Shows the descriptive statistics of brand among the users. There is
difference in average among various statistics of brand. The average of responents who
considered themselves to be loyal to their smartphone brand was higher i.e., 2.74 and the
least average of the respondents includes the one who recommend their brand to others

Table 3.1.7: Descriptive Statistics of Convenience

  N Mean Std. Deviation

Convenience [I can accomplish my
task more Quickly by using a 121 2.19 1.374
Smartphone.]
Convenience [I think every
individual can easily use the 121 2.60 1.357
smartphone.]
Convenience [I prefer carrying a
121 2.69 1.379
smartphone than Laptop.]
Convenience [I can complete
assignments faster by using 121 2.41 1.249
smartphones]
Convenience [I think smartphones
121 2.31 1.483
are superior handheld devices.]

Table 3.1.7 Shows the descriptive statistics of convenience in using their smartphones
among the respondents. The respondents were asked different questions about the
convenience in using their smartphones. The average of the respondents who preferred
carrying smartphone rather than laptop was higher with the least average of the
respondents who could accomplish their task more quickly using their smartphone. The
SD was found to be higher i.e 1.483 where repondents gave their opinion that
smartphones are superior handheld devices.

Table 3.1.8: Descriptive Statistics of Dependency

Std.
  N Mean Deviation
Dependency [I am completely dependent
on my smartphone] 121 2.45 1.197
Dependency [I always use my
smartphones to deal with my studies.] 121 2.47 1.049
Dependency [In my day -to -day life
usage of smartphones is high.] 121 2.74 1.452
Dependency [It feels easy to be a social
media using smartphones than laptop or 121 2.38 1.427
computer.]
Dependency [I can't do anything in my
work and study with smartphones] 121 3.07 1.495

Table 3.1.8 shows Table 3.1.8 shows the descriptive statistics of the dependency of
respondents on their smartphones. The average of respondents who can't do anything in
their work and study with smartphones were high i.e., 3.07 with higher SD of 1.495
followed the least average of respondents who gave their opinion on the easiness to be on
social media using smartphones rather than a laptop and computer which is 2.38
 Table 3.1.9: Descriptive Statistics of Price

Std.
  N Mean Deviation
Price [I prefer purchasing a smartphone
121 2.48 1.177
for a high price]
Price [I think Smartphone are expensive.] 121 2.21 1.134
Price [I wait for the price to be
121 2.43 1.257
Deducted.]
Price [I think price determine the quality
121 2.07 1.153
of smartphones.]
Price [I mainly consider price when I
121 2.42 1.315
decide to buy a smartphone.]

Table 3.1.9 Shows Shows the descriptive statistics of price among the respondents using
various smartphones. The respondents were asked their opinions on various factors of
price. The average of the respondents who preferred purchasing a smartphone for a high
price was high i.e., 2.48. and the least average was among the respondents who though
that price determines the quality of the smartphones. The SD of 1.315 was high among
the opinion of the respondents on the point that they mainly consider price while buying a
smartphone.

Table 3.1.10: Descriptive Statistics of Product Attractiveness

Std.
  N Mean Deviation
Product Attractiveness [I prefer
Smartphones with front and rear camera
with high megapixels] 121 2.64 1.413
Product Attractiveness [I prefer
Smartphones with high battery capacity] 121 2.73 1.472
Product Attractiveness [I prefer
Smartphones with good sound] 121 2.32 1.421
Product Attractiveness [I prefer
Smartphones that is newest in the market.] 121 2.43 1.210
Product Attractiveness [I prefer
Smartphones with attractive shape and
size.] 121 2.12 1.292
Table 3.1.10 shows
 Table 3.1.11: Descriptive Statistics of Relative Advantage

Std.
  N Mean
Deviation
Relative Advantage [Smart
phone is more convenient, 121 2.02 .991
reliable and useful]
Relative Advantage [Smart
phone is more Fashionable, 121 2.14 1.337
stylish and trendy.]
Relative Advantage
[Smartphone has good
121 2.31 1.353
integration of wide range of
functions and services.]
Relative Advantage
[Smartphones with bigger screen
121 2.69 1.385
and full keyboard make different
function easier to use.]

Table 3.1.11 Shows

Table 3.1.12: Descriptive Statistics of Buying Behaviors

  N Mean Std. Deviation

Buying Behaviors [I search for information about
121 2.74 1.377
smartphones on regular basis.]
Buying Behaviors [I always discuss smartphone with
121 3.61 1.325
my friends and family.]
Buying Behaviors [I will consider the brand of
121 2.17 1.331
smartphones before I purchase it.]
Buying Behaviors [I will consider the price of
121 2.59 1.370
smartphones before I purchase it.]
Buying Behaviors [I will consider the product feature
121 2.36 1.478
of smartphones before I purchase it.]
Buying Behaviors [Purchasing of smartphones is
121 2.26 1.307
beneficial for my daily life.]
Table 3.1.12 Shows

Average of Buying
 
behaviours
Pearson Correlation .342**
Average of
Sig. (2-tailed) .000
brand
N 121
Pearson Correlation .513**
Average of
Sig. (2-tailed) .000
convenience
N 121
Pearson Correlation .447**
Average of
dependency Sig. (2-tailed) .000
N 121
Pearson Correlation .374**
Average of
Price Sig. (2-tailed) .000
N 121
Average of Pearson Correlation .451**
Product Sig. (2-tailed) .000
Attractiveness
N 121
Average of Pearson Correlation .433**
Relative Sig. (2-tailed) .000
Adavntage N 121

Table 3.1.13: Correlation Anlysis

The above table shows the correlation between various factors and buying behavior of
consumers. The study was conducted among 121 students. Pearson's correlation between
various factors is interpreted below:

 Pearsons's correlation showed that brand and buying behavior of smartphone has
moderate positive correlation of 0.342 which means both the variables tends to
increase together.
 The correlation between convenience and buying behavior is 0.513 which is a
strong positive correlaton that indicates increase in convenience increases the
buying behavior of smartphone.
 There is moderate positive correlation of 0.447 between dependency and buying
behavior of smartphone which indicates that increase in dependency increases the
buying behavior of consumers.
 There is moderate positive correlation of 0.374 between price and buying
behavior of smartphone which indicates that increase in one variable increases the
other.
 Pearson's correlation revealed there is moderate positive correlation of 0.451
between product attractiveness and buying behavior of consumers.

 It shows moderate positive correlation of 0.433 between relative advantage and

buying behavior of a smartphone. It indicates that the better advantages in a
smartphone increases the buying behavior of a smartphone.

The significant value of all the variables i.e., of brand, convenience, dependency, price,
product attractiveness, relative advantage is 0.000 and the level of significance is 0.01.
Comparing the significant value i.e 0.000 with the level of significance of 0.01, the level
of significance is higher than the significant value so there is evidence that brand,
convenience, dependency, price, product attractiveness and relative advantage have a
statistically significant linear relationship with consumer's smartphone buying behavior.
Table 3.1.14: Regression Analysis

Model Summary
R
Model R Adjusted R Square Std. Error of the Estimate
Square

1 .646a .417 .386 .51461

a. Predictors: (Constant), Average of Relative Adavntage, Average of Price,

Average of brand, Average of dependency, Average of Product Attractiveness,
Average of convenience

Table 3.1.14 Shows

Table 3.1.15: Anova

ANOVAa
Sum of
Mean
Model Square df F Sig.
Square
s
Regression 21.600 6 3.600 13.594 .000b
Residual 30.190 114 .265    
Total 51.790 120      

a. Dependent Variable: AverageofBuyingbehaviours

b. Predictors: (Constant), Average of Relative Adavntage, Average of Price, Average of brand,
Average of dependency, Average of Product Attractiveness, Average of convenience

Table ... Shows

Table 3.1.16: Coeffifients

Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) .502 .260   1.928 .056
Average of brand .049 .071 .056 .690 .491
Average of
.242 .080 .267 3.042 .003
convenience
Average of
.171 .088 .164 1.940 .055
dependency
Average of Price .103 .101 .087 1.014 .313
Average of
Product .169 .072 .204 2.355 .020
Attractiveness
Average of
Relative .134 .079 .145 1.700 .092
Adavntage

Dependent Variable: Average of Buyingbehaviours