Determinants of Buying Decision On Personal Gadgets Among Nepalese Youth

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DETERMINANTS OF BUYING DECISION ON PERSONAL

GADGETS AMONG NEPALESE YOUTH

A Fieldwork Project

Submitted to

Office of the Dean

Faculty of Management

Pokhara University

Submitted by:

Kanwaljeet Singh Sandhu

Kshitiz International College

Exam Roll No.: 14032205

P.U. Regd. No.: 2013-2-03-1228

In partial fulfillment of the requirements of the degree of Bachelor of Business


Administration (BBA)

December, 2016

Butwal, Nepal

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Recommendation

This is to certify that the project work assignment report

Submitted by:

Kanwaljeet Singh Sandhu

Exam Roll No.: 14032205

P.U. Regd. No.: 2013-2-03-1228

Entitled

Determinants of Buying Decision on Personal Gadgets among Nepalese Youth

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

Mr. Lal B. Pun Mr. Rajendra lamsal

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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.

...

Kanwaljeet Singh Sandhu

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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

List of Tables VII

List of Figures VIII

Executive Summary IX

Chapter I: Introduction (1-12)

1.1 Focus of the study

1.2 Statement of problem

1.3 Objective of the study

1.4 Research question

1.5 Theoretical framework and hypotheses

1.6 Literature Review

1.6.1 Independent Variables6

1.6.2 Dependent Variables

1.7 Research Methodology

1.7.1 Research Design

1.7.2 Variables and Measures

1.7.3 Data collection

1.7.4 Sampling technique

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1.7.5 Data Analysis Tools

1.7.6 Reliability

1.8 Limitation

1.9 Organization of the study

Chapter II: Data Analysis and Major Findings (13-26)

2.1 Results

2.2 Major Findings

Chapter III: Conclusion & Recommendation (27-28)

3.1 Conclusion

3.2 Recommendation

References (29-32)

Appendixes (33-50)

Appendix A: Personal gadgets

Appendix B: Smartphone

Appendix C: Laptop

Appendix D: Purchase intention

Appendix E: Ownership of gadgets

Appendix F: Reliability Test (for smartphone and laptop)

Appendix G: Questionnaire 1 (case: smartphone)

Appendix H: Questionnaire 2 (case: laptop)

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LIST OF TABLES

Table No. Name of Table Page No.


1 Reliability test 11

2 Use of brand of Smartphone 13

3 Future brand of Smartphone 14

4 Use of brand of Laptop 14

5 Future brand of Laptop 15

6 Mean and standard deviation for Smartphone 15

7 Mean and standard deviation for Laptop 16

8 Mean and standard deviation for both 17

9 Respondents characteristics 17

10 One Way ANOVA across Current Occupation 19

11 One Way ANOVA across Education Level 20

12 One Way ANOVA across Family Size 21

13 One Way ANOVA across Annual Income 22

14 Independent sample T-test for Gender 23

15 Independent sample T-test for Age 24

16 One Way ANOVA across Marital Status 25

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LIST OF FIGURES

Figure No Name of Figure Pages


1 Theoretical Framework of the study 3

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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).

The research conducted is to explore the factors affecting purchase intention of


Personal gadgets (Smartphone and Laptop): A study of young adults in Nepal. This study
will begin with the research background, statement of problem, followed by objective of
the research, research questions theoretical framework, hypotheses, literature review,
methodology, results and finally conclusion and recommendations.

1.2 Statement of Problem


The demand of gadgets (like smartphone and laptop) has been increasing nowadays.
Where many countries are busy understanding the behavior of gadget- consumers, fewer
researches has been conducted in the context of Nepal. Although, number of gadget users
are rapidly increasing. There are about 10 million users of Nepal Telecom Corporation
and 14 million mobile subscribers of Ncell (Pvt) Ltd, as of August 2016, (Wikipedia).

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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.

1.3 Objective of the study


The main objective of the study is to identify the determinants of purchase intention of
personal gadgets among Nepalese youth. However, the specific objectives are

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?

1.5 Theoretical Framework and Hypotheses


Theoretical framework is a diagram that shows the display of both dependent and
independent variables and connects or links those variables to form a test on this study. In
this study seven independent variables are detected i.e. price, brand image, social
influence, features, durability, convenience and after- sales services. On the other hand,
purchase intention is playing the role of dependent variable.

Price

Brand image

Social influence

Features
Purchase intention

Convenience

Durability

After-sales services

Figure 1: Theoretical framework

Based on the variables, the following hypotheses are proposed:

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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.

H5: Theres significant influence from convenience 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.

1.6 Literature Review


The research aims at finding the factors that majorly influence the buying decision of a
consumer while choosing a personal gadget (smartphone and laptop). By reading the
relevant literature, various factors have been found, based on which the consumer
chooses personal gadgets.

According to Cassavoy (2012), Smartphone can be defined to be a device that


enables the user to make telephone calls and at the same time has some features that
allow the user to do some activities that in the past was not possible unless using a
computer or a personal digital assistant (PDA), such as sending and receiving e-mails,
amending an office document etc.

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

Das (2012) conducted an empirical research based on survey method on factors


influencing buying behavior of youth consumers towards mobile handsets in coastal
districts of Odisha located in India. According to the study, a handset of reputed brand,
smart appearance ,and with advanced value added features, pleasurability and usability; is
the choice of young consumers; females in gender-group, post-graduates in level of
education-group, students in occupational group, urban residents in geographical area
group plays most prominent role in buying decision of a mobile handset.

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.

1.6.1 Dependent Variables


1.6.1.1 Purchase intention 5
The willingness of a consumer to buy a certain product or a certain service is known as
purchase intention.
Purchase intention can be defined as an advance plan to purchase certain goods or
services in future, this plan may not always lead to implementation, because it is affected
by ability to perform (Warshaw& Davis, 1985). Purchase intention shows that consumers
will follow need recognition, information search through external environment,
evaluation of alternatives, make purchase decision and post-purchase experience
(Zeithaml 1988; Dodds, Monroe, & Grewal, 1991; Schiffman & Kanuk, 2000). The idea
of intention to purchase toward particular product or services is the final cognition step in
the decision making process of purchase intention, this statement agreed by most of the
past researchers (Agarwal & Teas, 2002; Erevelles, 1993; Fishbein M., 1967; Han, 1990;
Pecotich, Pressley, & Roth, 1996).
In addition, marketers are interested to purchase intention, because it can help
them in market segmentation and support their decision making like where the product
should be launch (Sewall, 1978, Silk & Urban, 1978). Other than that, purchase intention
can be used for future demand prediction too (Armstrong, Morwitz, & Kumar, 2000).
Lastly, there are positive relationships between relative advantage, price, social influence
and product compatibility with purchase intention (Joep W, Ruud T, &Tammo H, 2011;
Juha, 2008; Yue & Stuart J, 2011).

1.6.2 Independent Variables


1.6.2.1 Price
Price is a value that will purchase a finite quantity, weight, or other measure of a good or
service. In commerce, price is determined by what (1) a buyer is willing to pay, (2) a
seller is willing to accept, and (3) the competition is allowing to be charged.
Price is the amount of money charged for a product or service, or the sum of the
values that customers exchange for the benefits of having or using the product or service
(Kotler and Armstrong, 2010). Price is basically the amount of money a consumer willing

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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).

1.6.2.2 Brand image


The general impression of a product held by real or potential consumes. It is developed
over time through advertising campaigns with consistent theme, and is authenticated
through the consumers direct experience.
Brand is the most valuable asset for a company, where it represents a product or
service means to consumers. Brands are more than just names and symbols. It is also the
element of relationship between company and customers (Kotler and Armstrong, 2010).
The brand name has directly influenced customers perception toward the quality of the
offering. When customers are satisfied, they generate word of mouth and it will lead to
others to be interested and choose the brand (Azad and Safaei, 2012).
In recent changing global environment, competitive advantage, profitable ways
and efficiencies are the most important gears that companies are forced to seek for in
order to differentiate among them in the business world (Mei Deanand White, 1999).
Brand names are the valuable assets that help correspond quality and suggest precise
knowledge structures which are related to the brand (Srinivasan and Till, 2002).
Nowadays brand plays a very vital role in consumes usually go for a familiar
brand, but the concept of brand transcend has emerged beyond a trademark or name. The
concept of brand encompasses much more than a trademark (Cassavoy, 2012).
Early research centered on measuring a brands equity with the use of a variety of
financial techniques (Farquhar et al. 1991, Simon &Sullivon 1990, Swat et al. 1993,
Kapferer 1997). More recently, brand equity has increasingly been defined in customer-
brand contexts (Keller, 1993) and extended to include effects on brand preferences,

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purchase intent (Cobb-Walgren et al. 1995, Van Osselaer& Alba 2000), and brand
alliances (Rao et al. 1994).

1.6.2.3 Social influence


Social influence occurs when ones emotions, opinion, or behaviors are affected by
others. Social influence takes many forms and can be seen in conformity, socialization,
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peer pressure, obedience, and leadership, persuasion, sales and marketing.
A consumer behavior is influenced by social factors, such as the consumers
small groups, family, and social roles and status (Kotler and Armstrong, 2010).
Social influences means one person causes in another to make a change on his/her
feelings, attitudes, thoughts and Social behavior, intentionally or unintentionally
(Rashotte, 2007). It results from interacting with each other. Social influence includes the
influence of media, parents and peers. Social Influence is defined as the degree to which
an individual perceives that important others believe he or she should use the new system
(Venkatesh, 2002).
Social influence motivates direct information processing by focusing people on a
relevant set of information involving reality, relations with others, and the self. As we
explain in the remaining sections of this article, these influence motives can alter the
social meaning of consumption and purchasing decision (Asch, 1951). Social influence
research has demonstrated these changes in meaning, especially by applying the values
and ideologies shared with self-relevant social groups.
In social influence settings changes in meaning potentially emerge as people try to
understand and relate to others. Thus, anyone of the influence motives might yield
changes in meaning of an issue, product, or brand. However, most of the research on
meaning change to data had focused on one particular motive, the desire to align with
valued reference group and differentiate from devalued one. As we explain, people shift
the meaning of a variety of issues and consumer judgments when social identity concerns
are salient (Asch, 1951).

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).

1.6.2.7 After-sales services


After-sales services refer to various processes which make sure customers are satisfied
with the product and services of the organization.

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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)

1.7 Research Methodology


1.7.1 Research Design
This research is based on survey cum descriptive research design. Descriptive research is
used because in this study factors, like characteristics, attitude, demography, lifestyle etc
of the consumers who use the product, were needed to be analyzed. It deals with
determining the frequency with which something occurs or how two variables vary with
each other.

1.7.2 Variables and Measures


Unlike other researches, this study consider seven independent variables, which are
Price, Brand image, Social influence, Features, Convenience, Durability, and
After sales services. On the other hand, Purchase intention of consumers toward the
personal gadgets is taken as a dependent variable.
To measure the variables, in this study; 5-point Likert scale is used.
Interval scale not only rates the statement , they also measure the distance between two
points on the scale. Associated with interval scale, researchers normally measure and
compute the results based on Likert scale. In general, there are 5 categories of responses
consisted in the scale as strongly disagree (1), disagree (2), neutral (3), agree (4) and
strongly agree (5). These scales are used in design of questionnaire in Section B.

1.7.3 Data Collection


In this study, questionnaire is used to gather primary data from
respondents on the factors that trigger the purchase intention. Questionnaire is distributed
to respondent who are between the ages of 15 to 25. Only English language is used in the
questionnaire. All the respondents must be the user of Smartphone/ Laptop.
Questionnaire is divided into three sections:
Section A: Section A contains two questions about the ownership of the personal gadgets.

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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.

1.7.4 Sampling technique


Cluster based judgmental sampling technique is used in this study,
because this research is about the behavior of youth in Nepal, which is why respondents
who are between the ages of 15 to 25 are selected to collect the response. For this
research, sample size of 270 respondents to participate in this survey, in which 150 are
the users of Smartphone and 120 are the users of Laptops.

1.7.5 Data Analysis Tools


In this study, to analyze the data collected though the questionnaires, the
tools like mean, frequency, one way ANOVA and T-test have been used. Frequency test is
used to find out the users of personal gadgets and the brand they want to switch in near
future. Mean is used to analyze the constructs and on the other hand one way ANOVA
and T-testis used to analyze the personal profile of the respondents.

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

1.8 Limitations of the Study


This study is conducted, focusing on the youth of Nepal; with the sample size of only 270
responses. The results driven by this study may not be applicable in the case of bigger
scenario. On the other hand, variable like dependency (Lay, Kok and Yin, 2013) has been
ignored by this research.Another limitation for the research will be the only used of
questionnaire survey. Minority of the respondents might not understand the questions and
therefore they may randomly select an answer to complete the questionnaire. Moreover,
the participants could not spend much time and effort in contributing the
survey.Againconsumer behavior, preference, and technology being dynamic in nature,
there is every possibility that over timefindings of today may become invalid tomorrow.

1.9 Organization of the study


The first chapter Introduction contains the focus of the study, statement of problem,
objective of the study, research question, theoretical framework & hypotheses, literature
review, research methodology and limitations. The second chapter Data Analysis and
Major Findings is all about the results obtains from the survey and major findings.
Finally, on the last chapter which is Conclusion & Recommendation, presents the final
outcome or conclusion of this study with some recommendations.

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CHAPTER II

DATA ANALYSIS AND MAJOR FINDINGS


This chapter has been divided into two sections. First sectiondeals with the data collected via the
questionnaire andsecond section describes the major findings of this study.

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

Brand Frequency Percent Valid Percent


Samsung 29 19.3 19.3
Lenovo 5 3.3 3.3
Gionne 13 8.7 8.7
Sony 8 5.3 5.3
LG 1 .7 .7
Apple 86 57.3 57.3
Nokia 2 1.3 1.3
Xiaomi 2 1.3 1.3
Lava 1 .7 .7
Other 3 2.0 2.0

Total 150 100.0 100.0

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

Brand Frequency Percent Valid Percent


Dell 41 34.2 34.2
Apple 15 12.5 12.5
Samsung 11 9.2 9.2
Toshiba 11 9.2 9.2
Lenovo 11 9.2 9.2
HP 17 14.2 14.2
Sony 4 3.3 3.3
Acer 9 7.5 7.5
Other 1 .8 .8
Total 120 100.0 100.0

14
23
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

Brand Frequency Percent Valid Percent


Dell 8 6.7 6.7
Apple 73 60.8 60.8
Samsung 5 4.2 4.2
Toshiba 5 4.2 4.2
Lenovo 5 4.2 4.2
HP 7 5.8 5.8
Sony 7 5.8 5.8
Acer 7 5.8 5.8
IBM 2 1.7 1.7
Other 1 .8 .8
Total 120 100.0 100.0

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

15
24
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

25
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

standard deviation results of independent variables for both

26
2.1.3 Respondents characteristics

Table 9 Respondents characteristics

Gender Frequency Percent


Male 88 32.6
Female 182 67.4
Total 270 100.0

Age Frequency Percent


15 to 19 126 46.7
20 to 25 144 53.3
Total 270 100.0

Current Occupation Frequency Percent


Student/ Not working 211 78.1
17
Student/ Part-time working 39 14.4
Full-time working 11 4.1
Self-employed 2 .7
Professional 3 1.1
Unemployed 4 1.5
Total 270 100.0

Education Level Frequency Percent


SLC 59 21.9
+2 graduate 147 54.4
Bachelor Degree 51 18.9
Master Degree 13 4.8
Total Status
Marital 270
Frequency 100.0
Percent
Single 256 94.8
Married 14 5.2
Total 270 100.0

Family Size Frequency Percent


Aggregate Annual Income
Nuclear Family Frequency
222 Percent
82.2
less than
Joint 300000
Family 84
48 31.1
17.8
300000 to 600000
Total 74
270 27.4
100.0
600000 to 1200000 27 75 27.8
more than 1200000 37 13.7
Total 270 100.0
18

28
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

Variables Sum of Squares df Mean Square F Sig.


Between Groups 36.319 5 7.264 .476 .794
Brand image Within Groups 4026.733 264 15.253
Total 4063.052 269
Between Groups 5.451 5 1.090 .190 .966
Price Within Groups 1514.656 264 5.737
Total 1520.107 269
Between Groups 22.746 5 4.549 .438 .822
Social
Within Groups 2743.805 264 10.393
influence
Total 2766.552 269
Between Groups 59.549 5 11.910 1.171 .324
Features Within Groups 2685.948 264 10.174
Total 2745.496 269
Between Groups 40.732 5 8.146 1.286 .270
Convenience Within Groups 1672.042 264 6.333
Total 1712.774 269
Between Groups 2.727 5 .545 .139 .983
Durability Within Groups 1036.814 264 3.927
Total 1039.541 269
Between Groups 12.664 5 2.533 .797 .553
After sales
Within Groups 838.999 264 3.178
services
Total 851.663 269
Between Groups 262.180 5 52.436 .477 .793
Sum scale Within Groups 29016.620 264 109.911
Total 29278.800 269

19
29
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

20
30
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

Variables Sum of Squares df Mean Square F Sig.


Between Groups .001 1 .001 .000 .995
Brand image Within Groups 4063.051 268 15.161
Total 4063.052 269
Between Groups 19.457 1 19.457 3.475 .063
Price Within Groups 1500.650 268 5.599
Total 1520.107 269
Between Groups 1.257 1 1.257 .122 .727
Social
Within Groups 2765.294 268 10.318
influence
Total 2766.552 269
Between Groups 1.694 1 1.694 .166 .684
Features Within Groups 2743.802 268 10.238
Total 2745.496 269
Between Groups 3.357 1 3.357 .526 .469
Convenience Within Groups 1709.417 268 6.378
Total 1712.774 269
Between Groups 2.197 1 2.197 .568 .452
Durability Within Groups 1037.344 268 3.871
Total 1039.541 269
Between Groups .004 1 .004 .001 .973
After sales
Within Groups 851.659 268 3.178
services
Total 851.663 269
Between Groups 1.542 1 1.542 .014 .906
Sum scale Within Groups 29277.258 268 109.244
Total 29278.800 269

21
31
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

22
32
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

23
33
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

34
24
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

Sum of Squares df Mean Square F Sig.


Between Groups 1.310 1 1.310 .086 .769
Brand image Within Groups 4061.742 268 15.156
Total 4063.052 269
Between Groups 23.179 1 23.179 4.150 .043
Price Within Groups 1496.929 268 5.586
Total 1520.107 269
Between Groups .014 1 .014 .001 .971
Social
Within Groups 2766.538 268 10.323
influence
Total 2766.552 269
Between Groups 4.884 1 4.884 .478 .490
Features Within Groups 2740.612 268 10.226
Total 2745.496 269
Between Groups 25.157 1 25.157 3.995 .047
Convenience Within Groups 1687.617 268 6.297
Total 1712.774 269
Between Groups 1.210 1 1.210 .312 .577
Durability Within Groups 1038.331 268 3.874
Total 1039.541 269
Between Groups .297 1 .297 .093 .760
After sales
Within Groups 851.366 268 3.177
services
Total 851.663 269
Between Groups 1.934 1 1.934 .018 .894
Sum scale Within Groups 29276.866 268 109.242
Total 29278.800 269

35
2.2 Major Findings
Ownership of Gadgets

58% of people own the smartphone of Samsung brand.


25
57.3% of people want to purchase the smartphone of Apple brand.
34.2% of people own the laptop of Dell brand.
60.8 of people want to purchase the laptop of Apple brand.

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.

26
36
CHAPTER III

CONCLUSION & RECOMMENDATION

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.

27
37
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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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.

Personal gadgets enhance our effectiveness. With the development of web-


cam and other video devices, staying away from friends and family is no more
unpleasant. Devices make things compact. Take the example of a Swiss Army knife, it
can be made use of as a spoon, knife, twizzer, bottle screw, fork etc. In this study, we talk
about only two gadgets, i.e. smartphone and laptop.

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.

By identifying and understanding the factors that influence their


customers, brands havethe opportunity to develop a strategy, amarketing message
(Unique Selling Proposition) and advertising campaignsmore efficient and more in line
with theneeds and ways of thinking of their target consumers, a real asset to better meet
theneeds of its customers and increase sales.

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

Reliability test for Smartphone


Statements Cronbach Constructs
Alpha
Brand image increases my status in the society .753
Brand Image is an attraction for me to purchase a gadget .736
I will consider the brand image when buying a gadget .736
Brand
I will make my purchase according to my favorite gadget's brand regardless of
.745 image
the price
Gadget's brand name is my priority when making a purchase decision .729
I will consider the reputation of gadget brand before purchasing it .736
Price is an important factor when purchasing a gadget .751
I compare prices of other gadget's brand and store brand before I choose one .756
I am willing to buy the gadget even though the price is higher .776 Price
The cheapness of some gadget's brand suggests to me that they may have
.756
some risks such as low quality
Friends and family are very helpful to me in making decision of buying a gadget .750
I trust my friends and family about their opinions and advices of Smartphone/
.748
Laptop
Social
It is important that my friends like the brand of gadget, I am using .739
Influence
I like to know what gadget makes good impressions on my friends .747
I achieve a sense of belonging by purchasing the same gadget that my friend
.741
purchase
Smartphones are more convenient, reliable and useful than normal mobile .738
phones

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

Reliability test for Laptop


Statements Cronbach Constructs

Alpha

1. Brand image increases my status in the society .671 Brand image

2. Brand Image is an attraction for me to purchase a gadget .654

3. I will consider the brand image when buying a gadget .671

4. I will make my purchase according to my favorite gadget's brand .675

regardless of the price

38
49
5. Gadget's brand name is my priority when making a purchase decision .655

6. I will consider the reputation of gadget brand before purchasing it .661

7. Price is an important factor when purchasing a gadget .672 Price

8. I compare prices of other gadget's brand and store brand before I


.685
choose one

9. I am willing to buy the gadget even though the price is higher .715

10. The cheapness of some gadget's brand suggests to me that they


.692
may have some risks such as low quality

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

15. I achieve a sense of belonging by purchasing the same gadget that


.673
my friend purchase

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

19. Wi-Fi capabilities are important to me .665

20. Screen size matters to me .677

21. Weight of laptop matters to me .680

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

24. I prefer to buy personal gadget from nearest location .649

25. The life of the gadget is important to me .674 Durability

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

29. Guaranty makes me feel secure .668 services

30. I always consider "after sales services" as an important element


.672
before purchasing a gadget

51
G: Questionnaire 1 (case: smartphone)

Questionnaire

Determinants of Buying Decision on Personal Gadgets among Nepalese


Youths

Case: Smartphones

Dear Respondents,

I am one of the students of Kshitiz International College, conducting a research project


entitled Determinants of Buying Decision on Personal Gadgets among Nepalese
Youths.

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

This is a multiple choices section, please tick your answer.

1. Which brand of Smartphone do you own?


A: Samsung B: Lenovo
C: Gionne D: Sony
E: LG F: Apple
G: Nokia H: Xiaomi
I: Lava J: Other (please specify) __________
2. Which brand of Smartphone, you are willing to purchase in future?
A: Samsung B: Lenovo
C: Gionne D: Sony
E: LG F: Apple
G: Nokia H: Xiaomi
I: Lava J: Other (please specify) __________

53
Section B: Purchase Intention

Instruction: Please express your opinion in the questions that follow by


encircling the options.

1: Strongly Disagree, 2: Disagree, 3: Neutral, 4: Agree, 5: Strongly Agree

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

Tick your option below.

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

THANK YOU VERY MUCH

45

56
H: Questionnaire 2 (case: laptop)

Questionnaire

Determinants of Buying Decision on Personal Gadgets among Nepalese


Youths

Case: Laptop

Dear Respondents,

I am one of the students of Kshitiz International College, conducting a research project


entitled Determinants of Buying Decision on Personal Gadgets among Nepalese
Youths.

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

This is a multiple choices section, please tick your answer.

1. Which Brand of Laptop do you own?

A: Dell B: Apple
C: Samsung D: Toshiba
E: Lenovo F: HP
G: Sony H: Acer
I: IBM J: Other (please specify) __________

2. Which Brand of Laptop, you are willing to purchase in future?

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

Instruction: Please express your opinion in the questions that follow by


encircling the options.

1: Strongly Disagree, 2: Disagree, 3: Neutral, 4: Agree, 5: Strongly Agree

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

Tick your option below.

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

THANK YOU VERY MUCH

50

61

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