Determinants of Buying Decision On Personal Gadgets Among Nepalese Youth
Determinants of Buying Decision On Personal Gadgets Among Nepalese Youth
Determinants of Buying Decision On Personal Gadgets Among Nepalese Youth
A Fieldwork Project
Submitted to
Faculty of Management
Pokhara University
Submitted by:
December, 2016
Butwal, Nepal
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Recommendation
Submitted by:
Entitled
has been prepared as approved by this department in the prescribed format of Faculty of
Management. This project work assignment report is forwarded for examination.
Supervisor: Principal
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Declaration
The researcher, the undersigned, to the best of his knowledge, declares that this research
report entitled Determinants of Buying Decision on Personal Gadgets among Nepalese
Youth is submitted in partial fulfillment of the requirements for the course Bachelors of
Business Administration and is his original work and due acknowledgement have been
made to materials used in the report.
...
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Acknowledgements
It is my pleasure to express my sincere gratitude to my supervisors, Mr. Lal B. Pun, Mr.
Rajendra Lamsal and Mr. Bharat Bhusal, their support throughout the research process.
They had devoted their valuable time and efforts in patiently guiding me to complete this
project. Their wide knowledge and logical way of thinking have created a great value to
me. Besides, their understanding, encouraging and personal guidance have provide the
good basis for this present thesis. Therefore, I would like to convey my special thanks to
them for their assistance and encouragement.
Besides, I would like to thank Kshitiz International College for giving me the opportunity
to conduct this research project. It provided me a chance to learn and gain more
experience in conducting a research. Additionally, Ive learned a depth understanding
about the factors that affecting young adults purchase intention toward smartphone and
laptop.
Furthermore, I would like to special thanks to the ones who have helped me to distribute
the questionnaires, specially my friend Mr. Ajay Pokharel. During the process of the
research project, the respondents have given their valuable feedback on the protesting of
questionnaire. Also, I would like to thank all the respondents, who spent their valuable
time in filling out the questionnaire. With the help and support by Mr.Ajay Pokharel and
respondents, I had successfully completed the part of questionnaire.
Finally, I would like to say thank you all one more time, to those who have directly or
indirectly helped me to complete this research study.
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TABLE OF CONTENTS
Recommendation II
Declaration III
Acknowledgements IV
Table of Contents V
Executive Summary IX
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1.7.5 Data Analysis Tools
1.7.6 Reliability
1.8 Limitation
2.1 Results
3.1 Conclusion
3.2 Recommendation
References (29-32)
Appendixes (33-50)
Appendix B: Smartphone
Appendix C: Laptop
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LIST OF TABLES
9 Respondents characteristics 17
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LIST OF FIGURES
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Executive Summary
This research study was carried out to explore the factors affecting purchase intention of
personal gadgets: A study of young adults in Nepal. This study had examined seven
factors that affect the purchase intention of smartphone and laptop. Factors included
brand image, price, social influence, features, convenience, durability and after sales
services. This study was a descriptive research study. The data was gathered from the
users of smartphone and laptop via questionnaire. The target population is between the
age group of 15 to 25. This study used primary data collection method and secondary
data collection method. Journal, internet research and text book had been used as
secondary data collection. Questionnaire-based survey was used and 270 sets of
questionnaires were distributed to respondents, in which 150 to smartphone users and 120
to laptop users and finally analyzed by using SPSS.
Descriptive analysis, reliability test, ANOVA tests and T-test were chosen as data analysis
techniques. The questions and scales in questionnaires were considered to be reliable as
the entire Cronbachs Alpha was around 0.7 which was indicated as very good. With the
help of ANOVA test occupation, income, education level, marital status and family size
had been analyzed. And with the use of T-test; Age and Gender has been analyzed. As the
result user of brands and future brands had been identified, on the other hand; factors
which influence the purchase intention of young Nepalese consumers had been found out.
Finally some recommendations had been provided to the future researchers to guide them
for further studies.
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CHAPTER I
INTRODUCTION
1.1 Focus of the study
Purchase intention, it plays a significant role for all organizations because purchase
intention is a considerable index to predict consumers subjective tendency on a
particular product. With the development of technology, the behavior of smartphone and
laptop consumers turns out to be more and more unpredictable. Therefore, identification
of market segmentation and market targeting plays a more significant role in smartphone
and laptop industry market research.
Personal gadgets like laptops and smartphones are the need of todays generation.
No work can be done without the use of gadgets, internet and so on. Laptops help the
students and employees to perform their work more efficiently and effectively. Most of
the mobile phones nowadays are addressed as Smartphones, because they offer more
advanced computing power and connectivity than a contemporary mobile phone. Cell
phones are by far the most popular mobile technology among young adults with 81%
having their own cell- phone (Edison, 2010). It is also worth nothing that 43% of young
adults cell phones owners have a smartphone (Edison, 2010).
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Previous research studies used the variables; features, price, brand name and
social influence (Malviya, Saluja & Thakur, 2013), price, brand image, durability, after
sales services, and features (Khan, Abid, Muntaha, & Jamal, 2016)price, brand image,
durability, after sales services, features, and social factor (Sata, 2013), : Connectivity and
Mobility Feature, Value Added Features, Post Purchase Services, Peripheral
Specifications, Core Technical Features, Physical Appearance, and Price and Payment
Conditions (Nasr, Yoruker, Gunes & Bogazici, 2006).
The variables like convenience and durability are usually ignored, but this
study considers the seven variables (i.e. price, brand image, social influence, features,
convenience, durability and after sales services). It is possible that companies do not yet
have a complete understanding of what factors drive the adoption of personal gadget
shopping and how to increase the profit. The personal gadgets have achieved the highest
degree of standardization of components, features and attributes. These products specialty
have lost the ability of consumers to differentiate in its products offering given by the
manufactures. It is as accepted fact that generation of information plays as important role
in the field of policy formation, marketing planning, strategy making and it also bridges
the gap between the buyers and sellers.
This study aims at identifying the key factors which have the dominating effect on
the consumers minds while making a purchase of personal gadget (like Smartphone or
Laptop). Such researches have been carried out numerous times in foreign countries,
especially the developed countries, but taking Nepal into perspective, fewer studies have
been performed. Mostly, the demographic variables have been given importance. The
personal gadgets market in Nepal is still in growth stage, where people have started to
move to latest technology. At such times, this study can provide fruitful information to
the marketers regarding the consumer perception towards the personal gadgets.
To identify the current status of different brands of smartphone and laptop among
the Nepalese youth.
To identify the factors those determine the choice of personal gadgets.
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1.4 Research Questions
What demographical factors actually influence the buying behavior of
Personal gadgets, in the context of Nepalese youth?
Price
Brand image
Social influence
Features
Purchase intention
Convenience
Durability
After-sales services
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H1: Theres significant influence from price towards purchase intention of personal
gadget among Nepalese youth.
H2: Theres significant influence from brand image towards purchase intention of
personal gadget among Nepalese youth.
H3: Theres significant influence from social influence towards purchase intention of
personal gadget among Nepalese youth.
H4: Theres significant influence from features towards purchase intention of personal
gadget among Nepalese youth.
H6: Theres significant influence from durability towards purchase intention of personal
gadget among Nepalese youth.
H7: Theres significant influence from after- sales services towards purchase intention of
personal gadget among Nepalese youth.
H8: At least one variable have the most significant influence towards purchase intention
of personal gadget among Nepalese youth.
The research of Mesay Sata (2013), Consumer Buying Behavior of Mobile Phone:
the motivation behind the study is to examine the components influencing the choice of
purchasing mobile phone gadgets in Hawassa town. So as to perform the goals of the
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study, a specimen of 246 shoppers were taken by utilizing straight forward irregular
examining procedure. In addition, six independent variables i.e. price, social influence,
product features, brand name, durability and after- sales services were chosen and
evaluated. From the investigation, it was clear that customers worth cost took the most
essential variable among all and it additionally went about as a motivational power that
impacts them to go for a mobile phone buying4 choice. The study proposed that the cell
phone vendors ought to consider the mentioned variable to liken the open door. The
relationship among six elements i.e. price, social influence, durability, brand name,
features and after- sales services with the choice to purchase a mobile phone. In like
manner, all components have a positive and noteworthy association with the choice to
purchase a mobile phone. 4
Every year college tuitions increase and students are spending more and more
money to attend these institutions of higher learning. In addition to the tuition, room and
board, books, lab fees and various other required expenses, laptops are quickly becoming
a mandatory piece of equipment for the college student. Students have been using
computers to complete assignments and perform research for a long time, and according
to the College Explorer studys inception, the number of desktop computer owners has
yielded to the increase in laptop owners. As of 2009, 75% of students reported ownership
of a laptop computer (Totally Wired Campus, 2009.)On campus, students use their
laptops for things such as taking notes in class, working on assignments and course
material, communicating with professors and peers, find jobs and internships, take online
classes, reading the news, organize plans and finances, and multimedia (Chong
Leng,2005.)
According to Hong and Lerch (2002), people evaluate various objective features
when buying an IT product, and because of imperfect information and simplifications
according to the decision rules people often abstract these various features into few
perceptual dimensions such as usefulness and price. In another research conducted by
Kim et al. (2002), small-office/home-office professional (SOHO) procurement choices
are influenced by a number of salient dimensions (i.e. income, performance, price, inter-
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purchase time, network externalities). Furthermore, surveys have repeatedly identified
performance and price as two of the most important attributes in SOHOs' PC purchase
decisions. In a more recent study, Dillon and Reif (2004) examine factors influencing
consumers e-commerce commodity purchases, and find that a history of e-commerce
purchasing have a more positive attitude towards on-line buying.
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to pay for in exchange with products and services that they think are valuable. The value
of money varies from different people. Some might think it is valuable for a high price
but others might think it does not worth for the value of money.
Nagle and Holden (2002) stated that price can play a role as a monetary value
whereby the consumers to trade it with the 6services or products that were being sold by
the sellers. Price will always be the key concern of consumers before making any
purchasing decision
The price has been analyzing as an analytical factor effecting on the choice
charging depends on the product quality. Nowadays, frequent changes of technology also
effected on frequent changes on price because price decreasing when new product
introduce in market and past one is a big opportunity to the consumer who can attract
with low price as compare to that with good quality and brand image as well as design
( Kabadayi, et al., 2007; Calyk and FigenErsoy, 2008).
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purchase intent (Cobb-Walgren et al. 1995, Van Osselaer& Alba 2000), and brand
alliances (Rao et al. 1994).
1.6.2.4 Features
Features are the typical quality or important part of something. Feature is an attribute of a
product to meet the satisfaction level of consumers needs and wants, through owning of
the product, usage, and utilization of a product.
A feature is an attribute of a product that to meet with the satisfaction level of
consumers needs and wants through the owning of the product, usage, and utilization of
a product (Kotler et.al. 2007).
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According to an article published by Gallup, the fashion of a laptop is just as
important as function, as with many electronically devices, to the buyer (McEwen, 2005).
This factor is influencing the customer to take buying decision because technology
changes and feature provides the consumers value (Saif, 2012).
Nowadays, people want things to be done at the fingertips. The use of applications
(apps) in Smartphone has flourished businesses by having ability such as documenting
expenses and processing credit cards anywhere (Ranson, 2009). Smartphone is a 4 inch
device which performs as powerful like a heavy and big size laptop. It able to do
everything like a laptop, keeping everything such as documents, photos, games and apps
in ones pocket, (Anthony, 2012).
1.6.2.5 Convenience
Convenience is the state of being able to proceed with something without difficulty.
Convenience refers to a situation where works are simplified, easy and can be done with
less effort, without discomfort or difficulty. Convenience in Smartphone may refer to the
ability to use the Smartphone at anytime and anywhere, without having to port the
Smartphone in a fixed workstation (Ding etal., 2011).
1.6.2.6 Durability
Durability is the ability to undergo permanent deformation without cracking or fracturing.
It is assurance or probability that an equipment, machine, or material will have a
relatively long continuous useful life, without requiring an inordinate degree of
maintenance.
The durability factor influence consumers towards the mobile phone brand
reliability and durability which depend on the usage of product. Most of the people buy
mobile phone just because of its create user friendliness comes from durability (Eric and
Bright, 2008).
In economics, a durable goods or a hard good is a good that doesnt quickly wear
out, or more specifically, one that yields utility over time rather than being completely
consumed in one use. Highly durable goods such as refrigerators, cars or mobile phones
usually continue to be useful for 3 or more years of use, so durable goods are typically
characterized by long periods between successive purchases (Wikipedia).
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The after sales service factor is playing a most important role in this new world,
after sales developing consumer retention and loyalty. After sales services create
differentiate and competitive advantage with other brands. This factor influences the
consumer buying mobile phone and creates positive relationship between consumers and
after sales services. People buying mobile phone of those brands which have an after
sales service because of the frequently changes of technologies so, consumers go for this
factor (Armisted and Clark, 1990)
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Section B: However, in Section B, includes 30 questions for surveying respondents on the
factors that trigger the purchase intention. Likert scale is used in this section which
consists of five scales is applied to this part. Respondents are required to circle out their
answer among the 5 scales which includes strongly disagree (1), disagree (2), neutral (3),
agree (4) and strongly agree (5).
Section C: This section of the questionnaire contains 7 questions about the demographic
profile of individual respondent who takes part in this research.
1.7.6 Reliability
The rule of thumb for the reliability test is that 0.7 or higher suggests good reliability and
may be acceptable if between 0.6 and 0.7. In the case of both smartphones and laptop,
270 sample sizes have been taken, where the Cronbachs Alpha value is (0.752).
Table 1
Reliability Test
Variables Cronbach's Alpha
Brand .656
Price .725
Social .677
Features .674
Convenience .688
Durability .699
After sales services .702
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Sum scale .581
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CHAPTER II
2.1 Results
2.1.1Ownership of gadgets
Smartphone:
According to the data, it is found that most of the people (with 58%) own cell-phone of
Samsung brand, followed by others (12%) which mainly includes Micromax, Intex and
Huawai. On the other hand, the lowest percentage is of LG (0.7%) followed by Xiaomi,
Nokia and Apple.
Table2
Use of brand of Smartphone
Brand Frequency Percent Valid Percent
Samsung 87 58.0 58.0
Lenovo 11 7.3 7.3
Gionne 11 7.3 7.3
LG 1 .7 .7
Apple 7 4.7 4.7
Nokia 5 3.3 3.3
Xiaomi 2 1.3 1.3
Lava 8 5.3 5.3
Other 18 12.0 12.0
Total 150 100.0 100.0
Table 3 shows the future smartphone brand, Apple is on the top with huge votes (57.3%),
followed by Samsung (19.3%). Even in this case, LG is still at bottom with the
percentage of 0.7, accompanying with Lava (0.7).
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Table3
Future brand of Smartphone
Laptop:
Table 4 shows that most of the people own Dell laptop (34.2), HP is on second place with
14.2%, followed by Apple (12.5%). Other laptop like Asus (0.8%) is at bottom, followed
by Sony (3.3%) and Acer (7.5%).
Table4
Use of brand of Laptop
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Table 5 shows that, most of the people want to purchase the Apple (60.8%) laptop. At the
second place we have Dell (6.7%) followed by HP and Sony both 5.8%.
Table5
Future brand of Laptop
2.1.2 Variables
Smartphone:
Table6 portrays the descriptive statistics results (i.e. mean and standard deviation) results
of the seven independent variables. As shown in the table, the prime factor with the
highest mean value is features (mean = 25.09) followed by brand image (mean = 21.73),
Social influence (mean = 17.35) andPrice (mean = 14.35) respectively. The three
independent variables with the least mean score areafter sales services (mean = 13),
Durability (mean = 11.93) and Convenience (mean = 9.87).
Here, all the variables (excluding- convenience) positively affect the choice of
smartphone selection.
Table6
Mean and standard deviation results of independent variables for Smartphone
Variables Mean SD
Features 25.09 3.28
Brand image 21.73 4.19
Social influence 17.35 3.19
Price 14.35 2.51
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After sales services 13.00 1.89
Durability 11.93 2.11
Convenience 9.87 2.50
Sum scale 113.32 11.09
Laptop:
Table7 portrays the descriptive statistics results (i.e. mean and standard deviation) results
of the seven
Variables Mean SD
independent variables.
2.93 As shown in the table,
Features 23.78
the prime factor with
Brand image 22.22 3.46 the highest mean value
Social influence 16.65 3.20 is features (mean =
Price 13.98 2.19
23.78) followed by
brand image (mean
After sales services 12.84 1.64
22.21), Social
Durability 11.60 1.76 influence (mean =
Convenience 9.15 2.51 16.65) andPrice (mean
Sum scale 110.20 9.31 = 13.98) respectively.
The three independent
variables with the least mean score areafter sales services(mean = 12.84), Durability
(mean = 11.60) and Convenience(mean = 9.15).
Just like above table (7), all the variables (excluding- convenience) positively affect the
choice of laptop selection.
Table7
Mean and standard deviation results of independent variables for Laptop
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Personal gadgets (both Smartphone and Laptop):
Table8 portrays the descriptive statistics results (i.e. mean and standard deviation) results
of the seven independent variables. As shown in the table, the prime factor with the
highest mean value is features (mean = 24.50) followed by brand image (mean 21.94),
Social influence (mean = 17.04) andPrice (mean = 14.18) respectively. The three
independent variables with the least mean score areafter sales services(mean = 12.93),
Durability (mean = 11.79) and Convenience(mean16 = 9.55).
From this combine result, we can say that convenience is not an important element for the
purchase intention of personal gadget. But other variables like features, brand image,
price, social influence, durability and after sales services has significant relationship with
the buying decision.
Table8
Mean and
Variables Mean SD
Features 24.50 3.19
Brand image 21.94 3.89
Social 17.04 3.21
Price 14.18 2.38
After sales 12.93 1.78
Durability 11.79 1.97
Convenience 9.55 2.52
Sum scale 111.93 10.43
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2.1.3 Respondents characteristics
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Demography
Current occupation
Interpretation: A significance of 0.01 to 0.05 is considered as relevant. Therefore, on the
basis of the result taken from ANOVA, none of the variables show a significant relation
with current occupation. Thus, we can say that occupation of the consumer doesnt
influence the buying behavior of personal gadget.
Table 10
One Way ANOVA across Current Occupation
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Education Level
Interpretation: A significance of 0.01 to 0.05 is considered as relevant. Therefore, on the
basis of the result taken from ANOVA, none of the variables show a significant relation
with education level. Thus, we can say that education level of the consumer doesnt
influence the buying behavior of personal gadget.
Table 11
One Way ANOVA across Education level
Variables Sum of Squares df Mean Square F Sig.
Between Groups 58.193 3 19.398 1.288 .279
Brand image Within Groups 4004.858 266 15.056
Total 4063.052 269
Between Groups 40.924 3 13.641 2.453 .064
Price Within Groups 1479.183 266 5.561
Total 1520.107 269
Between Groups 23.923 3 7.974 .773 .510
Social
Within Groups 2742.629 266 10.311
influence
Total 2766.552 269
Between Groups 5.606 3 1.869 .181 .909
Features Within Groups 2739.890 266 10.300
Total 2745.496 269
Between Groups 16.409 3 5.470 .858 .464
Convenience Within Groups 1696.365 266 6.377
Total 1712.774 269
Between Groups 7.350 3 2.450 .631 .595
Durability Within Groups 1032.191 266 3.880
Total 1039.541 269
Between Groups 17.945 3 5.982 1.908 .129
After sales
Within Groups 833.718 266 3.134
services
Total 851.663 269
Between Groups 310.046 3 103.349 .949 .417
Sum scale Within Groups 28968.754 266 108.905
Total 29278.800 269
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Family size
Interpretation: A significance of 0.01 to 0.05 is considered as relevant. Therefore, on the
basis of the result taken from ANOVA, none of the variables show a significant relation
with family size. Thus, we can say that the size of the family of the consumer doesnt
influence the buying behavior of personal gadget.
Table 12
One Way ANOVA across Family Size
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Aggregate annual income
Interpretation: A significance of 0.01 to 0.05 is considered as relevant. Therefore, on the
basis of the result taken from ANOVA, none of the variables show a significant relation
with aggregate annual income. Thus, we can say that income of the consumer doesnt
influence the buying behavior of personal gadget.
Table 13
One Way ANOVA across Aggregate Annual Income
Variables Sum of Squares df Mean Square F Sig.
Between Groups 15.305 3 5.102 .335 .800
Brand image Within Groups 4047.747 266 15.217
Total 4063.052 269
Between Groups 18.525 3 6.175 1.094 .352
Price Within Groups 1501.582 266 5.645
Total 1520.107 269
Between Groups 53.617 3 17.872 1.752 .157
Social
Within Groups 2712.935 266 10.199
influence
Total 2766.552 269
Between Groups 29.186 3 9.729 .953 .416
Features Within Groups 2716.311 266 10.212
Total 2745.496 269
Between Groups 15.380 3 5.127 .803 .493
Convenience Within Groups 1697.394 266 6.381
Total 1712.774 269
Between Groups 17.432 3 5.811 1.512 .212
Durability Within Groups 1022.109 266 3.843
Total 1039.541 269
Between Groups 17.353 3 5.784 1.844 .139
After sales
Within Groups 834.310 266 3.137
services
Total 851.663 269
Between Groups 18.023 3 6.008 .055 .983
Sum scale Within Groups 29260.777 266 110.003
Total 29278.800 269
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Gender
Interpretation: In table 14, besides Brand image (sig. 000) all the variables show the
insignificant relationship with the gender of the consumer.
Table 14
Independent sample T-test for Gender
Variables Levene's Test for Equality of t-test for Equality of Means
Variances
F Sig. t df Sig. (2-
tailed)
2.280 .132 3.700 268 .000
Brand
3.873 194.036 .000
.203 .653 .165 268 .869
Price
.166 175.574 .868
.033 .857 1.314 268 .190
Social
1.244 150.265 .215
.067 .796 -.500 268 .617
Features
-.495 167.634 .621
1.124 .290 1.311 268 .191
Convenience
1.263 156.927 .208
4.729 .031 -1.730 268 .085
Durability
-1.599 141.952 .112
After sales .040 .842 -1.301 268 .194
services -1.270 161.726 .206
.025 .874 1.407 268 .161
Sum scale
1.356 156.716 .177
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Age
Interpretation: Table 15 shows that only after sales services (with p-value 0.043) has a
significant relationship with the age of the consumers.
Table 15
Independent sample T-test for Age
Variables Levene's Test for Equality of Variances t-test for Equality of Means
F Sig. t df Sig. (2-
tailed)
.112 .738 -1.242 268 .215
Brand
-1.246 265.995 .214
.156 .693 1.033 268 .302
Price
1.034 263.788 .302
.139 .710 .946 268 .345
Social
.950 266.997 .343
2.132 .145 -.018 268 .986
Features
-.018 250.018 .986
2.714 .101 .216 268 .830
Convenience
.217 267.838 .828
5.171 .024 -1.113 268 .267
Durability
-1.101 246.685 .272
4.124 .043 -2.431 268 .016
After sales services
-2.391 234.783 .018
2.651 .105 -.509 268 .611
Sum scale
-.504 248.748 .615
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Marital status
Interpretation: A significance of 0.01 to 0.05 is considered as relevant. Therefore, on the
basis of the result taken from ANOVA, variables like price and convenience (sig. 0.043
and 0.047 respectively) have the significant relationship with marital status of the
consumers who purchase personal gadgets.
Table 16
One Way ANOVA across Marital Status
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2.2 Major Findings
Ownership of Gadgets
Influencing Variables
Features of the gadget and brand image are the most important factors which motivate
or influence the consumer to purchase personal gadgets.
Other factors like price, social influence, durability and after sales services also
influence the purchase decision of personal gadgets.
Convenience doesnt have much important role in buying decision.
Demographic factors
Marital status plays an important role on the variables like price and convenience.
Gender of the consumer has a significant relationship with the choice of Brand of the
gadget.
Age of the consumer also has a significant relationship with after sales services, while
making purchase decision.
Aggregate annual income, current occupation, education level and family size do not
play the important role in the purchase decision of personal gadget.
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CHAPTER III
3.1 Conclusion
The purpose of this study was to identify the key factors that influence the
buying decision of personal gadgets among Nepalese youth as well as to find out the
brand which is currently ruling the market and the brand which has good scope in near
future.
From this study, it is concluded that Apple brand is about to gain the
market very soon. Both cases (smartphone and laptop) show the results that Apple brand
is most desired brand among Nepalese youth. Youth are more concern about the social
image, which can be achieved through the consumption of expensive brands. This
research also shows that Samsung is the most selling smartphone right now, but in future
Samsung users are ready to switch the brand. On the other hand, if we talk about Laptops,
it is found out that Dell is the most selling Laptop right now, but just like the scenario of
smartphone; even here Apple is about to gain the market share very soon.
It is found out that Features of gadget and Brand image play a vital role in
the choice of gadget. Previous studies (Sata, 2013 and Khan, Abid, Muntaha& Jamal,
2016) showed price as an important factor, but the results of this study show the different
scenario. Consumers are more concerned of technology and brand image, they want to
get more advanced features as well as prestigious brand name. This may be the reason
why most of the consumers agreed to switch to Apple brand.
Finally, lets move on to the demographical section. Results show that
married consumers are more concerned toward the price and convenience while buying a
personal gadget. It shows that mature consumers are more price sensitive than the
teenagers.It may be because they have to think about the family before the need of
gadgets.Age of the consumers affect the consideration of after sales services and gender
showed the significant relationship with the brand image. Other demographical factors
like Aggregate annual income, current occupation, education level and family size do not
play the important role in the purchase decision of personal gadget.
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3.2 Recommendations
In the present scenario, the fierce competition in the market has made the gadgetmarkets
very insecure. People are attracted towards newer technology and will be able to shift
from one brand to another if it uses better technology (Khan, Abid, Muntaha, & Jamal,
2016). Gadget companies should carry out periodic survey to help in identifying these
new technology features and decide which ones to add to its product. The study shows
majority of the Smartphone and laptop users will consider product feature at first. Gadget
provider should study on what features the users demand for, for example higher image
resolution of the camera, better and faster operating system, smarter and lighter design,
and any other new innovative of product features for both software and hardware. By
better improve the Product Feature, and providing what is demanded, it might help
gadget provider to improve its sales and profit.
Another most important recommendation is to build a good brand image. This
study also shows that brand image is very essential for consumer to make a purchase
decision. Brand image can be built with the help of advertising and sales promotion.
Although advertising doesnt help to increase sales but it can be helpful to increase the
image of brand in the mind of consumers. And good brand image is an important criteria
for the consumers while making the purchase decision.
Moreover, by deciding which combination of features match with the current
trends and what fulfills the consumer needs and are cost effective to the gadget
companies. I suggest, product design and attributes are also very important in the success
of thebrand. Manufacturers of different gadget brands must keep improving the durability
and quality of the product; they must also make theprice affordable to everyone of their
target market.
This survey is conducted via questionnaire form with the sample size of 270. So
to get more accurate result, it is recommended that future researchers should take the
more number of samples. On the other hand, this study doesnt consider the factor
compatibility, which may be an affecting factor. So, future researchers may also take
this variable into their study to achieve different and more accurate outcomes.
28
38
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32
43
APPENDICES
A. Personal Gadgets
The origin of the word gadget trace back to the 19 th century. According to
the oxford dictionary, there is anecdotal (not necessarily true) evidence for the use of
gadget as a placeholder name for a technical item whose precise name one cant
remember since the 1850s; with Robert Browns 1886 book Spunyarn and Spindrift, A
sailor boys log of a voyage out and home in a China tea-clipper containing the earliest
known usage in print. The etymology of the word is disputed.
B. Smartphone
A smartphone is a mobile phone (also known as cell-phone) with an
advanced mobile operating system which combines features of a personal computer
operating system with other features useful for mobile or handhold use. Smartphone,
which are usually pocket-sized, typically combine the features of a mobile phone, such as
the abilities to place and receive voice calls and create and receive text messages, with
those of other popular digital mobile devices like personal digital assistants, media
player, video games, GPS navigation, digital camera and digital video camera.Today,
almost all the Smartphone's has a high-density screen resolution allowing the handset to
display almost all the websites in their standard formats as they appear on the computer
screens. Nowadays most of the websites are launching their mobile versions as well, and
several applications which can be run on the Smartphone OS directly. For better
connectivity, hi-speed data is also made available through WI-Fi, 3G and 4G data
connections.
C. Laptop
A laptop computer, usually called a notebook computer by manufacturers,
is a battery- or AC-powered personal computer generally smaller than a briefcase that can
44
easily be transported and conveniently used in temporary spaces such as on airplanes, in
libraries, temporary offices, and at meetings i.e. it is a personal computer for mobile use.
A laptop has most of the same components as a desktop computer, including a display, a
keyboard, a pointing device such as a touchpad
33 (also known as a track pad) and/or a
pointing stick, and speakers into a single unit. Laptops are also sometimes called
notebook computers, notebooks, Ultra books or netbooks.Laptops are current day
demand that simplify work and life as well. It contributes towards the upliftment of
performance, work easiness by introducing the home office conceptand provide a creative
insight for the work.
D: Purchase intention
Consumer Buying Behavior refers to thebuying behavior of the ultimate
consumer.Many factors, specificities andcharacteristics influence the individual
inhis/her decisionmaking process, shopping habits, purchasing behavior, the brand s/he
buys or the retailerss/he goes. A purchase decision is the result ofeach and every one of
these factors. Anindividual and a consumer are led by culture, subculture,social class,
membership groups, family, personality, psychological factors, etc.
34
45
E: Ownership of gadgets
46
35
47
36
F: Reliability Test (for smartphone and laptop)
For Smartphones
Reliability Statistics
Cronbach's N of Items
Alpha
0.752 30
37
48
If two Smartphones had the same features I would choose the Smartphone that
.748
is current craze from operating system point of view
18. I would rather choose a Smartphone brand that has superior camera over Features
.749
one that is fast and responsive
19. Wi-Fi capabilities are important to me .742
20. Screen size matters to me .744
21. Sound quality matters to me .739
22. I like to purchase my gadget from my relatives' or friends' store .754 Convenienc
23. I give more priority to the location of store regardless of price .741 e
24. I prefer to buy personal gadget from nearest location .739
25. The life of the gadget is important to me .747 Durability
26. I purchase smartphone for longer period of time regardless of changing
.748
technology
27. A gadget must go at least two years without any defect .743
28. Warranty and guaranty play key role in purchase decision .742 After-sales
29. Guaranty makes me feel secure .745 services
30. I always consider "after sales services" as an important element before
.743
purchasing a gadget
For Laptops
Reliability Statistics
Cronbach's N of Items
Alpha
0.679 30
Alpha
38
49
5. Gadget's brand name is my priority when making a purchase decision .655
9. I am willing to buy the gadget even though the price is higher .715
11. Friends and family are very helpful to me in making decision of Social
.681
buying a gadget influence
12. I trust my friends and family about their opinions and advices of
.677
Smartphone/ Laptop
13. It is important that my friends like the brand of gadget, I am using .652
14. I like to know what gadget makes good impressions on my friends .655
16. Laptops are more convenient, reliable and useful .670 Features
17. If two Laptops had the same features I would choose the Laptop that
.673
is current craze from looks point of view
18. I would rather choose a Laptop brand that has superior sound quality
.675
over one that is fast and responsive
22. I like to purchase my gadget from my relatives' or friends' store .674 Convenience
23. I give more priority to the location of store regardless of price .663
26. I purchase Laptop for longer period of time regardless of changing .663
technology
39
50
27. A gadget must go at least two years without any defect .674
28. Warranty and guaranty play key role in purchase decision .665 After-sales
51
G: Questionnaire 1 (case: smartphone)
Questionnaire
Case: Smartphones
Dear Respondents,
The purpose of this research is to explore the factors that affect the purchase intention of
young adults towards Smartphone / Laptop. This research will help future researchers
and gadget firms to understand what factors trigger the purchase intention of young
adults in Nepal.
Please, respond to the questions below according to the instructions. I further would like
to assure you that the information that you provide will be kept confidential.
40 Kanwaljeet Singh
52
41
Section A: Ownership of Gadgets
53
Section B: Purchase Intention
No Statement 1 2 3 4 5
.
1 Brand image increases my status in the society.
2 Brand image is an attraction for me to purchase a gadget.
3 I will consider the brand image when buying a gadget.
4 I will make my purchase according to my favorite gadgets
brand, regardless of the price.
5 Gadgets brand name is my priority when making a purchase
decision.
6 I will consider the reputation of gadget brand before
42
purchasing it.
7 Price is an important factor when purchasing a gadget.
8 I compare prices of other gadgets brands and store brand
before I choose one.
9 I am willing to buy the gadget even though the price is higher.
10 The cheapness of some gadgets brand suggests to me that
they may have some risks such as low quality.
11 Friends and family are very helpful to me in making decision
of buying a gadget.
12 I trust my friends and family about their opinions and advices
of Smartphone/ Laptop.
13 It is important that my friends like the brand of gadget, I am
using.
14 I like to know what gadget makes good impressions on my
friends.
15 I achieve a sense of belonging by purchasing the same gadget
43
that my friends purchase.
16 Smartphones are more convenient, reliable and useful than
54
normal mobile phones.
17 If two Smartphones had the same features I would choose the
Smartphone that is the current craze from an operating system
point of view.
18 I would rather choose a Smartphone brand that has a superior
camera over one that is fast and responsive.
19 Wi-Fi capabilities are important to me.
20 Screen size matters to me.
21 Sound quality matters to me.
22 I like to purchase my gadget from my relatives or friends
store.
23 I give more priority to the location of store regardless of price.
24 I prefer to buy personal gadget from the nearest location.
25 The life of a gadget is important to me.
26 I purchase Smartphone for longer period of time regardless of
changing technology.
27 A gadget must go at least two years without any defect.
28 Warranty and guaranty play key role in purchase decision.
29 Guaranty makes me feel secure.
30 I always consider after sales services as an important
element before purchasing a gadget.
44
55
Section C: Demography
1. Gender
A: Male B: Female
2. Age
A: 15 to 19 B: 20 to 25
3. Current occupation
A: Student/ Not working B: Student/ Part-time working
C: Full-time working D: Self-employed
E: Professional F: Unemployed
G: Other______________
4. Educational level
A: SLC B: +2 graduate
C: Bachelor Degree D: Master Degree
5. Marital Status
A: Single B: Married
C: Divorced
6. Family size
A: Nuclear Family B: Joint Family
C: Other_______________
7. Aggregate annual income of family (household)
A: less than 3, 00,000 B: 3, 00,000 to 6, 00,000
C: 6, 00,000 to 12, 00,000 D: more than 12, 00,000
45
56
H: Questionnaire 2 (case: laptop)
Questionnaire
Case: Laptop
Dear Respondents,
The purpose of this research is to explore the factors that affect the purchase intention of
young adults towards Smartphone / Laptop. This research will help future researchers
and gadget firms to understand what factors trigger the purchase intention of young
adults in Nepal.
Please, respond to the questions below according to the instructions. I further would like
to assure you that the information that you provide will be kept confidential.
Kanwaljeet Singh
57
46
Section A: Ownership of Gadgets
A: Dell B: Apple
C: Samsung D: Toshiba
E: Lenovo F: HP
G: Sony H: Acer
I: IBM J: Other (please specify) __________
A: Dell B: Apple
C: Samsung D: Toshiba
E: Lenovo F: HP
G: Sony H: Acer
I: IBM J: Other (please specify) __________
58
Section B: Purchase Intention
No Statement 1 2 3 4 5
.
1 Brand image increases my status in the society.
2 Brand image is an attraction for me to purchase a gadget.
3 I will consider the brand image when buying a gadget.
4 I will make my purchase according to my favorite gadgets
brand, regardless of the price.
5 Gadgets brand name is my priority when making a purchase
47
decision.
6 I will consider the reputation of gadget brand before purchasing
it.
7 Price is an important factor when purchasing a gadget.
8 I compare prices of other gadgets brands and store brand before
I choose one.
9 I am willing to buy the gadget even though the price is higher.
10 The cheapness of some gadgets brand suggests to me that they
may have some risks such as low quality.
11 Friends and family are very helpful to me in making decision of
buying a gadget.
12 I trust my friends and family about their opinions and advices of
Smartphone/ Laptop.
13 It is important that my friends like the brand of gadget, I am
using.
14 I like to know what gadget makes good impressions on my
friends.
15 I achieve a sense of belonging by purchasing the same gadget
that my friends purchase. 48
16 Laptops are more convenient, reliable and useful.
59
17 If two Laptops had the same features I would choose the Laptop
that is the current craze from alooks point of view.
18 I would rather choose a Laptop brand that has a superior sound
quality over one that is fast and responsive.
19 Wi-Fi capabilities are important to me.
20 Screen size matters to me.
21 Weight of the Laptop matters to me.
22 I like to purchase my gadget from my relatives or friends store.
23 I give more priority to the location of store regardless of price.
24 I prefer to buy personal gadget from the nearest location.
25 The life of a gadget is important to me.
26 I purchase Smartphone for longer period of time regardless of
changing technology.
27 A gadget must go at least two years without any defect.
28 Warranty and guaranty play key role in purchase decision.
29 Guaranty makes me feel secure.
30 I always consider after sales services as an important element
before purchasing a gadget.
49
60
Section C: Demography
1. Gender
A: Male B: Female
2. Age
A: 15 to 19 B: 20 to 25
3. Current occupation
A: Student/ Not working B: Student/ Part-time working
C: Full-time working D: Self-employed
E: Professional F: Unemployed
G: Other______________
4. Educational level
A: SLC B: +2 graduate
C: Bachelor Degree D: Master Degree
5. Marital Status
A: Single B: Married
C: Divorced
6. Family size
A: Nuclear Family B: Joint Family
C: Other_______________
7. Aggregate annual income of family (household)
A: less than 3, 00,000 B: 3, 00,000 to 6, 00,000
C: 6, 00,000 to 12, 00,000 D: more than 12, 00,000
50
61