Affect of consumer behavior smartphone purchase in

Nepal

By :
Janak Rokaya
Basu secondary school / College
A project report submitted to
NEB, Sanothimi Bhaktapur Nepal

In partial fulfillment of the requirement for the degree of grade XI in

marketing

Kathmandu Nepal
February 12
2024

TABLE OF CONTENTS

CHAPTER 1
INTRODUCTION
1.1 Background of the study ...........................................................
1.2 Statement of the problem and research question .....................
1.3 Objectives of the study ............................................................
1.4 Methods of the study...............................................................

CHAPTER 2
PRESENTATION AND ANALYSIS OF THE DATA
2.1 Data presentation ....................................................................
2.2 Data analysis............................................................................
2.3 Finding .....................................................................................

CHAPTER 3
3.1 Conclusion.................................................................................

INTRODUCTION
1.1 Background of the study
Consumer buying behavior describes how people choose, purchase,
and use goods and services to fulfill their needs. Since everything in our
lives revolves around buying things, consumer behavior can be thought
of as the sum of all human behavior as it focuses on the complete
consumption process, including factors that affect a consumer before,
after, and during a purchase, the field of consumer behavior covers a
broad range of topics. Purchasing as a consumer is a complex
procedure. Consumer purchasing behavior is essential for assessing and
evaluating a specific product (Rai et al., 2023). Purchase intentions can
be altered due to price or perceived quality and value. Kotler and
Armstrong (2010) suggested six pre-purchase stages: awareness,
information, interest, preference, persuasion, and purchase.
Consumers, according to them, expect acts to satisfy their desires. The
behavioral outcome that causes the consumer to differentiate between
varieties of options is the purchasing choice, which follows from their
preferences (Dhar et al., 1999). They went on to say that the processes
involved in customer decision-making and brand selection are more
intricate . Today, mobile phones are quickly evolving, serving not only as
a means of long-distance communication but also as a source of
entertainment, comfort, and convenience for users. Access to the
internet, email, social networking, music, video, games, and other
functions are all possible with it. Consumers of mobile phones today are
frequently exposed to a broad range of goods. Each race develops novel
goods using various types, models, and technologies and then
customizes them to suit the requirements, way of life, and interests of
the intended professions or hobbyists (Dahal, 2021). According to Uddin
et al. (2014), various users use mobile phones in multiple ways
depending on their needs. Since mobile phone usage has increased,
people now consider multiple factors while buying a phone.
1.2 statement of the problem
The statement of problem on factor affecting consumer behavior in
smartphone purchase in Nepal. Here are some possible examples of
statement of problem for a research on factor affecting consumer
behavior in smartphone purchase in Nepal. The questions related to
this research study are:
1)What is the theoretical perspective of factor affecting consumer
behavior in smartphone purchase in Nepal?
2) How to data analysis of factor affects consumer behavior
smartphone purchase in Nepal?

1.3 Objectives of the study:

The objective study of factor affecting consumer behavior in
smartphone purchase in Nepal will depend specific research question or
statement of problem . However, some common objectives include.

1)To review theoretical perspective of factor affecting consumer

behavior in smartphone purchase in Nepal.
2) To analysis of data consumer behavior smartphone purchase in Nepal
.

1.4 Methods:
Data and information used in this power point is collected through
secondary method of data collection . Sources such as journal used. The
qualitative data are used and further data analysis , content analysis
and narrative

2 PRESENTATION AND ANALYSIS OF THE DATA

2.1 Data presentation
2.1.1 Theoretical review
 In investigating the factors influencing consumers’ intentions to buy
smartphones, Rai (2021) discovered that product attributes and price
significantly impact those purchase intentions, but brand personality
has no discernible impact on those intentions in Nepal. Lavuri et al.
(2019) stated that a mobile device’s features, cameras, design, and
aesthetics significantly impact consumers’ behavior. Rakib (2019) found
that price, features, brand name, and social factors influence university
students’ purchase intentions. Rajan (2018) found that most male
consumers are given importance to ram, brand, HDC, graphics card
memory, and processors. Consumers are more knowledgeable about
feature selection when buying a Smartphone. As a result, customers
buy a smartphone that is more comfortable and highly configured in
every way. Sujata et al. (2016) investigated five factors such as
technology, hardware, primary, brand, and financial aspects that
positively influence young students’ decisions when buying a
Smartphone. Rahim et al. (2016) investigated many factors affecting
Malaysian university students’ intentions to buy a smartphone and
found a substantial correlation between Smartphone purchase
intention and product attributes, company image, social influence, and
product sacrifice. According to Uddin et al. (2014), while purchasing a
mobile phone, buyers are influenced by several factors, all of which
affect their purchase choice. According to Lay-Yee et al. (2013), the
physical attributes of the phone, such as its camera, Bluetooth, color,
weight, and other features, influence the customers’ buying process. In
a study on customer brand preferences for mobile phones, Fathima
(2019) discovered that a phone’s features, pricing, and designs
significantly impact brand preference. A variety of factors influence
consumer behavior. In the marketing environment, consumer tastes and
preferences constantly change and consumers show diversified,
unexpected, and surprising purchasing behavior. Consumer behavior is
constantly changing and challenging to forecast; thus, it will be different
from before the pandemic (Tyagi & Pabalkar, 2021). Most research has
been conducted to identify consumer behavior factors and why
customers prefer one brand over other brands in a particular product
category. Several factors influence the choice of different product
categories. Product quality, quantity style, brand, price, product
features, social factors, color, and customer services might affect
consumers’ purchasing decisions (Lema & Wodaje, 2018). Various
studies have been conducted to explore the factors influencing
consumer behavior, but the findings have not shown similar results.
Lavuri and Sreeramula (2019) found that price is essential in consumer
behavior, whereas Elammari and Cavus (2019) found it has no
significant role in purchasing decisions. Rakib et al. (2022) established a
significant influence of brand image on consumer behavior, but Haris
and Mustaffa (2020) did not find it. Almrafee (2023) investigated the
considerable impact of social factors on consumers’ purchasing
decisions, but Rakib et al.In these situations, it is becoming essential for
firms to identify consumers’ diversified needs, wants, desires, and
preferences and produce products accordingly (Batra, 2015). So,
researchers must identify the factors affecting consumer behavior in
Smartphone buying among Nepalese students. The study’s objective
was to identify factors influencing consumer behavior in buying a
smartphone. Study hypotheses are as follows:
H1: Product attributes positively influence consumer behavior.
H2: Social factors positively influence consumer behavior.
H3: Product price positively influences consumer behavior.
H4: Brand image positively influences consumer behavior.

greeing somewhat, 4 for agreeing somewhat, 5 for agreeing, and 6 for

strongly agreeing. The structure of the questionnaire is as follows: The
study’s target population was Nepalese students who had just bought a
smartphone in the Nepalese market. Nepalese people who have bought
and are familiar with the smartphone were designated as the study’s
targeted population. Based on the convenience sampling technique, the
study gathered a response from 398 respondents, the study’s sample
size. Table 2 shows the personal characteristics of the respondents.
These variables were gender, age groups, faculty of students, and level
of education.

2.2 Data analysis

The study has examined the effect of product attributes, social factors,
price of the product, and brand image factors on consumer behavior. It
was based on positivist epistemology with a deductive approach and a
single reality ontological foundation. The study has adopted
quantitative research methods. Various factors influence consumer
behavior in smartphone buying. Based on the literature review, product
attributes, social factors, product price, and brand image factors are
independent variables in measuring consumer behavior in Smartphone
buying in the study. Therefore, the conceptual framework presented in
Figure 1 was developed to undertake the analysis systematically. Causal
research design has been used in the study to recognize the effect of a
product attribute, social factors, and product price and brand image
factors on consumer behavior. The primary data from Smartphone users
were gathered for this study using a six-point Likert-type scale
questionnaire. Closed-ended questionnaires have been used to
investigate the factors influencing consumer behavior among
Smartphone users in the Nepalese market. Structured surveys looked at
product quality, price, social factors, brand image factors, and customer
behavior by scoring 1 for strongly disagreeing, 2 for disagreeing, 3 for
disa Table 1.

Mean has been used to understand the intention of Smartphone users

regarding consumer behavior. The standard deviation has been used to
measure the dispersion of a set of data. The correlation between
independent and dependent variables in smartphone purchases has
been evaluated using Karl Pearson’s Coefficient Correlation. Regression
path analysis using structural equation modeling (SEM) has been used
to identify the effect of independent variables on consumer behavior. To
confirm that the observed variables and latent constructs were
appropriate to achieve the stated goals, the study performed reliability,
validity, and CMB (common method bias) tests. The factors’ internal
consistency (reliability) was evaluated using Cronbach’s alpha,
convergent validity was assessed using AVE (average variance extracted)
and CR (construct reliability), and the CMB was evaluated using Harman
single-factor variance. Table 3 shows the test’s results. The test results
reported in Table 3 indicate that the reliability, convergent validity,
discriminant validity, and CMB criteria for the independent latent
variables were satisfied with the respective suggested threshold values.
Such results allowed us to proceed with further analysis.
Result
Table 4 indicates the descriptive and correlation analyses of all the
study’s variables. According to the research framework, the dependent
variables include consumer behavior (CB), whereas the independent
variables are product price (PP), product attributes (PAs), social factors
(SFs), and brand image (BI).

A 6-point Likert scale was used to evaluate each characteristic. Table 4

shows that the average.

2.3 Discussion and fiending

Many factors influence CB. Customer tastes and preferences are ever-
changing, and consumers’ purchasing behavior is diverse, unexpected,
and surprising (Dahal et al., 2023). In such circumstances, the study
aimed to examine the effects of PAs, SFs, PP, and BI on the purchasing
behavior of smartphones by Nepalese students in the Nepalese market.
The latent variable PAs was evaluated from three observed variables:
Physical Characteristics (β = 0.786, p < 0.01); Multimedia Use (β = 0.808,
p < 0.01); and Battery Life (β = 0.763, p < 0.01). The study’s findings
revealed no discernible influence of PA on CB (β = 0.053, p > 0.01),
rejecting the first hypothesis (H1). The previous findings were drawn
from the different research done in different countries, products,
situations, socioeconomic conditions, etc. Therefore, the study’s
findings may not be consistent with the previous findings. The latent
variable SFs was assessed from three observed variables: Shopping with
Friends (β = 0.693, p < 0.01); With Family Members (β = 0.771, p <
0.01); and Suggestions of Others (β = 0.736, p < 0.01). Consistent with
earlier studies (Almrafee, 2023; Chughtai & Awan, 2020; Natarajan &
Kanagarathinam, 2020; etc.), the SFs (β = 0.372, p < 0.01) had a
significant influence on CB. Therefore, the study accepted the
hypothesis (H2). This finding was consistent with the previous findings
because it is a universal truth that the consumer makes purchase
decisions based on the suggestions and advice of others. The latent
variable PP was weighed from three observed variables: Price
Comparison(β = 0.768, p < 0.01); Least Expensive (β = 0.928, p < 0.01);
and Price Importance(β = 0.434, p < 0.01).

CHAPTER 3
3.1 Conclusion
The study aimed to identify the influence of product attributes on
consumer behavior in smartphone buying. It was found that the
attribute factors of smartphones do not influence consumer behavior. It
means that Nepalese smartphone users do not think about the
attribute factors of smartphones, and the attributes of smartphones
may not lead to increased consumer behavior in Nepal. Similarly, the
study’s second objective was to investigate the effect of social factors
on consumer behavior in the buying of smartphones. The result of the
study found that social factors influence consumer behavior in buying
smartphones, indicating that Nepalese consumers considered social
factors in the selection of a smartphone brand, and Nepalese
consumers purchase smartphones by taking the advice and suggestions
of friends, family members and others. The third objective of the study
was to examine the impact of the smartphone’s price on consumer
behavior. It is found that the price of the smartphone influence on the
buying behavior of consumers. It is concluded that the price of the
smartphone is considered an essential factor in shaping consumer
behavior when purchasing a smartphone. It shows that the price level
of the smartphone may lead to an increase in consumer behavior
regarding the choice of smartphones in Nepal. The universal truth is
that the price factor influences consumers’ purchase decisions. The final
objective of the study was to examine the influence of brand image on
consumer behavior in the buying of smartphones. Therefore, it is
concluded that Nepalese consumers considered the brand factors
rather than the attributes of smartphones. They choose smartphones
based on brand image. It shows that the brand image factor might
increase consumer behavior toward smartphone purchases, and people
purchase smartphones based on the brand’s equity. Nepalese
consumers consider a smartphone a prestigious product, and brand is
an important factor for prestigious products. The findings have many
practical implications for practitioners. Marketing managers and
companies must consider price, brand image, and societal aspects in
marketing planning. These insights may assist the organization and
marketers create a smartphone marketing strategy.