CONSUMER BEHAVIOR WITH RESPECT TO

PURACHSE CELL PHOHNE OF LG

Mamata Josjhi
Symbol No.:-701770122
T.U.Reg.No.:-7-2-177-106-2014
KanchanVidyaMandirSamudauyik College ,

Submitted to
Faculty of Management
Tribhuwan University
Kathmandu

In Partial Fulfillment of of the Requirements for Degree of

BACHELOR OF BUSINESS STUDIES (BBS)

Mahendranagar,Kanchanpur
Baishak, 2075
DECLARATION
I hereby declare that the project work entitled CONSUMER BEHAVIOR WITH
RESPECT TO PU RCHASE CELL PHONE OF LG submitted to the faculty of
management, Tribhuvan University, Kathmandu is an original piece of work under
the supervision of Mr . Bhan Bahadur Chand faculty member, kanchan
vidyamandir Samudayik College Mahendraqnagar, Kanchanpur , and is submitted
in partial fulfillment of the requirements for the degree of Bachelor of Business
Studies (BBS).This project work report has not been submitted to any other
university or institution for any degree or diploma .

Signature :…………………..
MamataJoishi
Date : 2075/01/02
 KanchaanVidyaMandir Phone :099-521129(Chief)

Samudayik College 099-522135(Acc.Sec)

Mahendranagar,Kanchanpur,Nepal 099-521392(Hostel)

Date :…………………….

SUPERVISIOR'S RECOMMENDATION

The project work report entitled CONSUMER BEHAVIOR WITH RESPECT TO

PURCHASE CELL PHONE OF LG submitted by mamatajoshi of Kanchan Vidya
Mandir Samudayik College , Mahendranagar,Kanchanpur ,is prepared under my
supervision as per the procedure and format requirements laid by the faculty of
Management ,Tribhuvan, University, as partial fulfillment of the requirements for the
degree of Bachelor of Business Studies (BBS).I,therefore, recommend the project
work report for evaluation.

Signature :………………………..
Mr.BhimBahadurChand
KanchanVidyaMandirSamudayik College
Date :2075/01/02
 KanchaanVidyaMandir Phone :099-521129(Chief)

Samudayik College 099-522135(Acc.Sec)

Mahendranagar,Kanchanpur,Nepal 099-521392(Hostel)

Date :…………………….

ENDORSEMENT

We hereby endorse the project work report entitled BEHAVIOR WITH RESPECT TO
PURCHASE CELL HONE OF LG submitted by BhanBahadurChand of
KanchanVidyaMandirSamudayikCollege,Kanchanpur in poartial fulfillment of the requirements for
awards of the Bachelor of Business Studies (BBS) for external evaluation.

……………………………. ……………………….

Mr.Suresh Bhatt Dr.Raj Kumar Saud

Chairman Research Committee Campus Chief

KanchanVidhyaMandirSamudayik KanchanVidyaMandir

College Samudayik College

Date:………………….. Date:…………………..
 ACKNOWLEDGEMENT

We would like to express our sincere gratitude to wards our teacher Mr.Rajesh
Singh Bist for giving us an opportunity to conduct this research study and for
constantly guiding us. This project has taught us a lot of things.It has undoubtedly
enhanced our level of knowledge about many different things which are not in
the BBS course .But most importantly through this project we have learned to
use topics we study in the classroom, in our real lives .

Furthermore,by working in a group we have realized and lerned that the way to
success is by co-operating with each other. Working in a team and putting up
individual ideas to pr epare a combined report has helped us Become more
expressive Visiting the service center and taking surveys, has helped us, observe
and critically after sales service of automobiles. Once again we would like to
thank our respected teachers for providind us with this opportunity to study about
the BEHAVIOR WITH RESPECT TO PURCHASE CELL HONE OF LG

Mamata Joshi

KanchanVidhyaMandirSamudayik College
 TABALE OF CONTENTS
Title page ……………………………………………………………………………………

Declaration……………………………………………………...……………………………

Supervisor’s Recommendation………………………………………………………………

Endorsement…………………………………………………………………………………

Acknowledgement…………………………………………………………………….…….

Table of Content……………………………………………….…………………………….

List of tables………………………………………………………………………………..

List of figure………………………………………………….……………………………

Abbreviations……………………………………………………..………………….….…..

CHAPTER I: INTRODUCTION……………………………………….…..1-14
1.1 Background Information……………………………………..…………………..…..1-2
1.2 Profile of Organization……………………………………..………………………..2-4
1.3 Objective of the study……………….………………………..……………………..4-6
1.4 Rationale of the Study……………………………………………………..…………6-7
1.5 Review of literature ……………………………………………….………………7-8
1.6 Methods of Research…………………………...……………………………….….8-13
1.7 Limitations of Study …………………………………………………..……..……..13-14

CHAPTER II: RESULTS AND ANALYSIS…..…………………..…….15-225

2.1 Data presentation and Analysis of results ………………………………………..........15-25

2.2 Major Findings …………………………………………………………………………26

CHAPTER III: SUMMARY AND CONCULSION …………………….27-30

3.1 Summary ………………………………………………………………………………..27-29

3.2 Conclusion …………………………………………………………..…………………..29-30

BIBLOIG…………………………………………..…………………………..31

APPEND…………………………………………….………………………….32
 LIST OF TABLES

Tables Title Page

1. Age group of respondents 19

2. Consumers attitude 20
3. Price of purchased phone 21
4. LG phone various decision ` 22
5. Reason of buying 24
6. Influencers of consumer 25
 LIST OF FIGURES

Tables Title Page

1. Age group of respondents 19

2. Consumers attitude 20
3. Price of purchased phone 22
4. LG phone various decision ` 23
5. Reason of buying 25
6. Influencers of consumer 26
 ABBREVIATION

BBS Bachelor of Business Studies

BOD Board of Director
LTD Limited
Mr. Mister
T.U.TribhuwanUniversity
TQM Total Quality Management
U.S.A. United State of America
 CHAPTER I
INTRODUCTION

1.1 Background Information

Mobile phone has become an integral part of human life. With the increasing use
of technology for mediating communication, it is used for both personal and
organizational use. In today’s modern life it plays a predominant role since mobile
phone at all levels across the world.

The blooming mobile telecommunication sector has been an exceptional factor for
economic growth in both developing markets. It has been one of the important
aspects for the development of information technology. Various businesses like
hotels, service, travel and tourism, airlines, and many more has been positively
influenced by the use of mobile phone which flourished their businesses. Thus,
mobile services have become an indispensable part for the direct impact on the
function of economy. (Deloitte, 2012)

Hence, it is both critical and substantial to comprehend consumers’ emerging

habits and preferences in today’s ecosystem of mobile. The

growing obsession of youngsters with mobile phones, specifically LG phones is

one of the potential for the mobile marketers to develop new phone with enhanced
technology.

The research investigates how much a consumer is influenced by their lifestyle and
analyzes the factors that influence young consumers in purchasing LG phone.
Furthermore, the research explores how social media affect consumption behavior
of mobile phones among young consumers. Hence, buying behavior of consumers
with the age bar of 18-35 year is analyzed by considering present situation of
mobile phone market of Nepal.
The Primary of this study is to explore future potential in consumption of future
LG phone in Nepal . I belive this study will provide some significant knowledge
and information to the LG phone manufacturers to uncover consumers preference
and anticipate consumer buying behavior to surmount the LG market in Nepal .

Therefore , a research is conducted on the present situation of Nepal to understand

the influencing factors among the youths while buying LG in Kathmandu, the
capital city of Nepal with respect to low per capita income . based on the findings
of the study, suggestions have been provided and conclusions have drawn.

1.2 Profile of LG Mobile

LG Electronics is part of the fourth-largest chaebol in South Korea (LG
Corporation) and its global sales reached US$55.91 billion (₩ 59.04 trillion) in
2014. It comprises four business units: Home Entertainment, Mobile
Communications, Home Appliances & Air Solutions and Vehicle Components,
with Starion India as its main production vendor for refrigeration and washing
machines in the Indian sub-continent. LG Electronics acquired Zenith in 1995 and
controls 37.9 percent of LG Display as of 2013. Since 2008, LG Electronics
remains the world's second-largest LCD television manufacturer. The company has
128 operations worldwide, employing 83,000 people.

In 1958, LG Electronics was founded as GoldStar (Hangul: 금성). It was

established in the aftermath of the Korean War to provide the rebuilding nation
with domestically-produced consumer electronics and home appliances. The start
of the country's national broadcasting that created a booming electronics market
and a close relationship it quickly forged with Hitachi helped GoldStar to produce
South Korea's first radios, TVs, refrigerators, washing machines and air
conditioners. GoldStar was one of the LG groups with a brethren company, Lak-
Hui (pronounced "Lucky") Chemical Industrial Corp. which is now LG
Chem and LG Households. GoldStar merged with Lucky Chemical and LS
Cable on 28 February 1995, changing the corporate name to Lucky-Goldstar and
then finally to LG Electronics.
LG Electronics earned US$100 million in revenue from exports for the first time in
its history. Rapid growth by globalization saw the company establish its first
overseas production, based in the United States, in 1982. In
1994, GoldStar officially adopted the LG Electronics brand and a new corporate
logo. In 1995, LG Electronics acquired the US-based TV manufacturer Zenith and
absorbed it four years later. Also in that year, LG Electronics made the world's
first CDMA digital mobile handsets and supplied Ameritech and GTE in the US,
the LGC-330W digital cellular phone. The company was also awarded UL
certification in the US. In 1998, LG developed the world's first 60-inch plasma
TV and established a joint venture in 1999 with Philips – LG.Philips LCD – which
now goes by the name LG Display. In 1999, LG Semiconductor merged
with Hynix.

In order to create a holding company, the former LG Electronics was split off in
2002, with the "new" LG Electronics being spun off and the "old" LG Electronics
changing its name to LG EI. It was then merged with and into LG CI in 2003 (the
legal successor of the former LG Chem), so the company that started
as GoldStar does not currently exist.
LG Electronics plays a large role in the global consumer electronics industry; it
was the second-largest LCD TV manufacturer worldwide as of 2013.[12] By 2005,
LG was a Top 100 global brand and recorded a brand growth of 14% in 2006. As
of 2009, its display manufacturing affiliate, LG Display, was the world's largest
LCD panel manufacturer. In 2010, LG Electronics entered
the smartphone industry. LG Electronics has since continued to develop various
electronic products, such as releasing the world's first 84-inch ultra-HD TV for
retail sale.
On 5 December 2012, the antitrust regulators of the European Union fined LG
Electronics and five other major companies (Samsung, Thomson since 2010
known as Technicolor, Matsushita which today is Panasonic Corp, Philips and
Toshiba) for fixing prices of TV cathode-ray tubes in two cartels lasting nearly a
decade.
On 11 June 2015, LG Electronics found itself in the midst of a human rights
controversy when The Guardian published an article by Rosa Moreno, a former
employee of an LG television assembly factory.
At the end of 2016, LG Electronics merged its German branch (situated
in Ratingen) and European headquarter (situated in London) together in Eschborn,
a suburb of Frankfurt am Main.
In March 2017, LG Electronics was sued for its handling of hardware failures with
recent smart phones such as the LG G4.
Koo Bon-joon, who was the CEO and the current vice chairman of LG Electronics,
[20]
 was replaced by his nephew in July 2018, implementing "first son-only
succession rule".[21] Also involved under the same rule is the present CEO of LG
Corporation (the parent company) Koo Kwang-mo, who succeeded his father Koo
Bon-moo after Bon-moo died of a brain tumor on 20 May 2018.
LG announced in November 2018 that Hwang Jeong-hwan, who took the job as
president of LG Mobile Communications in October 2017, will be replaced by
Brian Kwon, who is head of LG's hugely profitable home entertainment business,
from 1 December 2018. Also in 2018, LG decided to stop smartphone production
in South Korea to move production to Vietnam, in order to stay competitive. LG
said Vietnam provides an "abundant labor force" and that 750 workers at its South
Korean handset factory would be relocated to its home appliance plant.
In December 2020, LG Electronics said it has agreed to set up a $1 billion joint
venture with automotive supplier Magna International Inc.]

1.3 objective of the study

In past decade, significance of mobile phone have been realized globally.
There are almost 7 billion mobile subscription worldwide. (union, 2014)
according to international telecommunication union, “there are 5.4 billion
mobile cellular subscriptions in the developing world i. e. 78 percent of
global subscriotions in 2014.”(union, 2014)global mobile statistics stated that
there is high potential of mobile penetration in the developing nations
which is already in a peak point i. e. 90.2 percent in 2014. (mobi thinking,
2014) there is expanding worldwide interest from various sectors like
governments, banks, commercial sectors and many more. Recentiyasia’s
largest telecommunication groups, Malaysian company axiata has resolved to
buy 60.4 percent out of 80 percent of teliasonera’s ownership in the
Nepalese operator ncell for usd 1 billion. (post, 2015)this verifies that nepal
is more potential for penetration of mobile technology in future.

Therefore, primory objective of this study is to explore future potential in

consumption of future LG phones in Nepal. I believe this study will
provieve some significant knowledge and information to the LGphone
manufacturers to uncover consumers’ preferences and anticipate consumer
buying behaviorur to surmount the LG phone market in Nepal.

Following are the specific research question required to gain insights of group
that influence them to buy mobile phones:

1. What are the most significant factor that influence and eventually motivate
young Nepalese consumer behavior of LG phones?
2. How does the social media contribute/affect in the purchasing behavior of
young consumer?
3. What are the most desired LG brand and features used by the young
generaton?
4. How does lifestyle affect the consumer decision making process?

1.3 Rational of the study

Nepal is a small mountainous county situated in the southern part of asia;
landlocked by India to the south,east and west and China to the north.

Nepal has vast physical diversity commonly dividend into the mountain
regional,Hill region and the teria region . Difficult land topography has been one of
main reason for failure in the development of physical infarstructructures like
transportation , communication and electricity. With a GDP of 19.8 billion USD.
Nepal is one of the poorest and last developed countries in the world.
(Bank,2014) . Government of nepal has not been able to develop
telecommunication sector of the nation as per requirement.

Nepal has considerable potential for development in various aspects like

international industries and communication sector. However, political uncertainty
and difficult business climate ( landlocked,geagrophic location poor
infrastructure and poor economice policies)has been a key herdele to attract foreign
investment. In addition, persistent power cut, civil conflict, labor unrest ,
rudimentary State of transportation infrastructure,and earthquak- probe nation
have been a challenge to flourish business in nepal.
April 3 ,1973 was the day when the first handheld mobile phone was invented by
martin Cooper of motorola company, later,amos joel jr . Of AT&T/Bell Labs
gave true meaning of mobile phone by inventing the systems that lets caller talk
without any interruption during their movement by switching signal from one
cell tower to another. (CBS News 60 minutes 2010) in nepal, the history of
telecommunication service began with open wire trunk between kathmandu and
Racial ( indian bowar town ) . It was the first telephone line introduced in
kathmandu in 1914. After the establishment of Mohan Akashwani in 1948
,telecome service was officially provided, ( Telecome 2015 ) it was 1995,
December 25 the then government of nepal made a decision to involve private
sector for the development and expansion of telecommunication sector in a
competitive environment , In order to make the telecommunication service and
facilities reliable and easily available to the public in all rural and Urban areas
through.

Telecom in the country. However, licensing of united Telecom Ltd,(UTL) made

NTC to lose it monopoly on basic telecom service. NTC was transformed in to
Nepal Doorsanchar Limited on 13 April, 2004. (Telecom, 2015) in the same
year.Spic Nepal first private GSM Operator in Nepal.Eversince, there has been
remarkable strong subscribe growth in the mobile segment of the market.

Mobile communication industry in Nepal is still emerging or more likely in it

infancy. 15 year ago it was a symbol of status for Nepalese people to have a
Mobile phone. Mobile phone used to cost more than NPR 50,000, which today’s
mobile market costs NPR,3,000 even les. At the same time cost for making and
receiving phones cell comparatively high. In span of just five year, there has been
a repaid growth of mobile technology in Nepal. Mobile penetration in Nepal is
moving steadily. It stood at 89 percent in mid- December, 2014, registering a rise
of 14.03 percentage point compared to been expanding in an accelerated pace
including Mobile brand. NTC had lunched its full WiMAX service in 2013. Evans,
2015 According the report provide by NTA< in one year period internet
penetration increased form 28.63 percent to 38.09 percent in mid- December2014.

1.4 Review of Literature

As quoted by patricia Seybold, “A lot of people think that the new economy is all
about the internet. I think that it’s being fueled by the internet - as weel as
by cell phones, digital assistant,

and the like- but that it’s really about costomers.’’ (maruca, 2000)we are
living in era of technology where the products are manufactured targeting
consumers and their satisfaction. Several researches has been conducted to
understand the buying behavior of consumer like (ROOK & FISHER, 1995);
(Hausman , 2000);(Kacen& Lee,2002 ). Variousa Scholars like (Evans , et ai.,
2006),(Solomon ,et ai .,2013), (Schiffman, et ai ., 2012)have implemented
structured and systematic theories to interpret how an individual make a choice
among various available alternatives .

Consumer buying behavior is a human behavior with a procedure associating.

Numerous events which involves analyzing, feeling and behavior, as an individual
addresses the existing needs.. as a field of study, sonsumer behaviour is the science
of studying a set of value-seeking activities in exchange of their existing resources
such as ; time money and effort of consumer which is motivated by addressing real
needs . Their are several definition of consumer buying behaviour, however most
of the definition are similar in scope. As Stated by solomon , consumer behaviour
is the study of process when individuals make selection , usage or disposal of
products and services during purchase in order to meet their needs and fulfil their
desires. (Solomon,et al ., 2010)

Consumer behaviour focuses on the behaviour of frequently changing humans

needs and wants that's an individual prade in searching for, purchasing, utilizing,

Evaluating the products and services that they expect will fulfil wants and desires
( Schiffman, 2012).

Consumer make different types of decisions in everyday life. The decision

consumer make while purchasing is the focal point that markers try to study . In
this competitive business world , it has become important for every organization
to put great effort on researching consumer buying behaviour to find out detailed
information on what consumer purchase, where, When and why they purchase,how
and how much they purchase. ( kotler & Armstrong, 2012 ). This research intends
to investigative study by using Black Box Model for buyer Behaviour as the main
theory in order to understand the influencing factors of young LG phone.

1.5.1 Conceptual Review

Various marketing efforts are used by companies to influence the decision of
consumers . But it is full of challenge to know exactly how buyers will respond
to them . Marketing stimuli comprises 4 ps, which would be product, place, price
and promotion . Mobile phone companies use these stimuli to persuade consumers
to buy new mobile phone. Environmental stimuli they the consumer may take into
account are political , economic, cultural and technological factor.

These stimuli presented to consumer by various marketers of LG phone is

dealt with by the buyer’ s black box is a metaphor used for consumer
mind. Marketers know nothing, but can only predict about what goes inside
black box. Buyers’ black box comprises of consumer’ s personal
characteristics and buyer decision process . All these marketing and
environmental stimuli enter the buyrs’ black box , which is where characteristic
of consumer will be taken into account in order to initiate the buyer decision. After
processing all the information , buyer come up with the obserble buyer response :
Product choice , brand choice , retail choice, dealer choice, purchase timing ,
purchase amount and purchase frequency . (Kotler & Armstrong ,2012)

1.5.2 Population and sample

A buyer passed through five different stages to reach his/ her buying decision .
they are need recognition, information search, evaluation of alternatives, purchase
and post- purchase. A consumer goes through all these stages while purchasing a
LG phone. These stages helps buyer to evaluate his /her needs, choose the
fearuters or for his/her daily work need .

Consumer will acquire information after the problem has been recognized . the
information can be obtained from various sources like family, friends,
acquaintance, website, trader, mass media, promotion and displays in shops,
advertsing , or usinge product .(Kolter & Armstrong,2012) A consumer may
recognize a need of LG phone and them sdearch the marketplace for phone is
collected via internal sources such as famiy and friends and external sources like
online review of the product and pacaaging and marketing communications.

1.6 Research Methodology/Methods of Study

The objective of this research is to explore potential consumption of future
smart phones in Nepal by identifying the buying of young consumers from
middle class family and the impact of their lifestyle and social concept in
their buying decision. In order to lay out the foundation of theoretic cal
framework on decision making of consumers during purchase of LG
phones, secondary data was collected from books, international journals,
articles, newspaper articles, reports and documents. Primary data was
collected through servey and interview to further verify the buying behavior of
targeted consumers .

For this research, deductive research, deductive reasoning was adopted . in this
type of research , conclusion are drawn from logical reasoning where assumptions
come first and impact the whole research process . (Ghauri & vbGronhaug,2010)
To some extent this research is also exploratory as there has not been much
research conducted in this area in the context of Nepal .

1.6.1 research design

According t0 the requirements of the research question ,combination of both

primary and secondary method research were used .This method is commonly
known as mixed method research approach which provides the best understanding
of a research problem .(creswell,2003)

Secondary data is a raw from of data which needs to be processed and interpreted
to change into information .This method is a scientific measurement as it involves
numerical data of large sample sizes in a systematic way, so as to gather
representation information .It analyzes a huge amount of data through the used of
diagrams and statistics. The aim of the secondary research is to exhibit
generalizable results by addressing the question of how and many .(saunders ,et
at.,2012) However secondary data is based on meaning expressed through wprds.
It provides nonstandardized data which requires classification . Moreover,
qualitative data analyses is administrated by using conceptualization .In this
method , researcher needs categorizes the gathered information from various
individuals and\or groups , summarizes and categorizes the gathered information to
make sense of those collocated data in the of case studies qualitative data are
complex in nature as words may have unclear or multiple meaning .Generally , this
method explores perceptions of chosen group or person by engaging in
participant’s activities through observation of their behaviors. (saunders,et
al.,2012)(creswell,2003)

The research is based on analyzing the behavior of young consumers

buying LG phones , therefore as secondary method ,a group of Nepalese
people living abroad were interviewed via skype and face t o face . The
main reason for applying this method is to have insight on how living
standard contributes in decision making process of a buyer.

Furthermore, using mixed method in a research helps to improve the

accuracy of data by combining and collaborating data from different
research and produce a more complete picture to come tp a conclusion.
(December, 2008) Therefore, in this research it has served to explain
social complexity in a factual manner. Information gathered from this
method will help in understanding the buying behavior of LG Phone
users.

1.6.2 Types of data used

1) Primary data

Primary Data used in research originally obtained through the direct

efforts of the researcher through surveys, interviews and direct
observation. Primary data is more costly to obtain than secondary data,
which is obtained through published sources, but it is also more current
and more relevant to the research project.

2) Secondary data

Secondary Data refers to data that was collected by someone other

than the user. Common sources of secondary data for social science
include censuses, information collected by government departments,
organizational records and data that was originally collected for other
research purposes. Primary data, by contrast, are collected by the
investigator conducting the research.

Secondary data analysis can save time that would otherwise be spent
collecting data and, particularly in the case of quantitative, can
provide larger and higher-quality databases that would be
unfeasible for any individual researcher to collect on their own. In
addition, analysts of social and economic change consider
secondary data essential, since it is impossible to conduct a new
survey that can adequately capture past change and/or developments.
However, secondary data analysis can be less useful in marketing
research, as data may be outdated or inaccurate.
1.6.3 Data collection procedures

The attempt has been to collect the required information from the
different reliable sources. The study is mainly based on primary and
secondary source.

a)Primary sources

The primary data was collected through personal interview and

personal observation in different department of organization for
collecting quantitative and qualitative data. The only primary source
of information by others.

b)Secondary sources
Necessary information and data concerning the study was collected
from the secondary source. The URL of LG was a key source to
know the profile of the company. Secondary data was collected from
collateral material As Company's profile. Catalogue and Broachers,
Website, magazine and Reference books. Therefore, all the data used
are reliable and creditable as they are compiled either by the bank or
other publisher. The data were carefully studied and analyzed to meet
the objective.

1.6.4 Methods of data analysis

The approach of the research process is from theoretical foundation
to collection and analysis of data. It based on descriptive as well as
analytical research design. The study is b a s e d o n a n a l y s i s o f t h e
g e n e r a l t a s k a n d i n t e r n a l e n v i r o n m e n t . The study is based
on primary as well as secondary data. Secondary source of
information includes the review of literature, books, journal and URL
and the primary source of data include the interview with the staff
of LG Phone dealers in Mahendranagar Nepal.
Collected information was processed and analyzed scientifically with
the help of software as well as manual different tables, figures are
preparing for the different variables. Statically calculation and
mathematical operation tools performed for the quantities
information's.
There was used different method of data are as focused....
Tabulation Method
a)Schedule
b)Tables
c)Graphical presentation
d)bar diagram
e) figure

1.7 Limitation of the Study

Some limitations were encountered. Firstly, Nepal being a country
with regular power cut up to 13 hours a day, many people were not
able to complete the online survey despite of their willingness. This,
to some extent has affected the participation of people and lowered
the chances of high participation.
Secondly, for the questionnaire, which was sent through emails and
Facebook pages, many people got confused with question 10, which
aims to analyze consumer's monthly spending on mobile phone usage
thus, provided answers completely different to question.
In addition, 123 people cannot be representative of the entire population
of the country. Also, the sample group is from one particular city of
Nepal, focused on age category of 18-35 years. Hence, the survey
results are not possible to generalize as the sample does not represent
all age category that uses LG Phone.
a) This study is based on the data available from the questionnaire
filled by the customers available at a certain period of time only.
b) Only a limited number of samples were selected for the study, as
all of them were not filled properly.
c) Some samples may not be a true representation.
d) Some of the customers didn't want to be disturbed. So they were not
willing to fill the questionnaire.

CHAPTER II
RESULT AND ANALSYSIS

2.1 Data Presentation and Analysis of Data

This chapter aims to interpret data collected through the survey

questionnaire and personal interview and analyses the results together
with the researched theories. It further summarizes the findings according
to the research objectives. MS Excel was used to process the data and
illustrate the findings using different charts and graphs.

Primary data collection for this research was personal interview and online survey.
Hence, questionnaires were conceptualized on different aspects of buying behaviour of
young consumers and influence of social media and lifestyle during their purchase
 behaviour. The survey was sent via email to close friends and relatives living in Nepal
and via various popular Facebook groups and pages to the targeted groups. As the survey
was intended for young consumers residing in Nepal, it was posted in various Nepali
Facebook pages with the age bar of 18-35 years which includes students, non-students,
working students and full time workers who currently lives in Nepal.

Total of 20 Nepalese people living abroad were interviewed via skype and face to face.
Age of interviewee ranged from 21 to 35 which includes working students and full time
workers. The main reason for interviewing this particular group is to acknowledge how
living standard contributes in decision making process of a consumer,

The questions on the survey were designed in a simple format where respondents could
answer easily. Almost all questions were marked with which was mandatory, except one.
The reason behind making 20 questions out of 21 mandatory is to increase the percentage
of valid sample records by preventing item non response (missing answers). In the
following section, survey structure is summarized and detailed information on findings of
survey and interview are analyzed, and finally results are presented.

2.1.1 Age-group of respondents Table 1

age group respondent
Age Less than 14 15-20 21-25 26-30 above 30

Group

Percentage 0.81% 10.57% 52.85% 26.02% 9.75%

Sources: LG mobile Annual Report update

-
 Less than 14
1%

Figure 1

The participant's age ranged between 14 to more than 30. As shown in the diagram, the total
targeted sample consisted of 123 people in which mode respondents are represented by age group
21-25 followed by 26-30. That comes to 53% and 26%.of total respondents proportionately. On the
contrary, the least number of participants was from age less than or equals to 14 which accounts
to 1% of total respondents. There were 13 participants from age 15-20 and 12 respondents from
age more than 30. Since the main objective of the thesis was to study the purchasing behavior of
people of ages 18-35 therefore, this can imply that the results were positive. The result shows
that all 123 participants were students, in which 81 were Bachelor students; which accounts to
65.85%. followed by Master degree students; which accounts to 25.2% of the total respondents.

2.1.2Consumer's attitudes toward owning

Table 2

Preference of mobile phone brand

Mobile Nokia Sony LG LG I-phone Black HTC Other

Brand Barry
Consumer 4.13% 6.61% 0.83% 42.15% 26.45% 0.83% 0.0% 19.83%

Source:-Social Media Update

40.00%

35.00%

30.00%

25.00%

20.00%

15.00% —

10.00%

5.00%

0.00% 11 men

Nokia --1- 11
Sony LG LG I-Phone Black HTC Other
■ Consumer % Barry

Figure 2 Preference of mobile phone brand

Above figure shown none of the respondent own Blackberry pho'ne. Majority of the
respondents possess LG phone; which accounts to 42.15% of total respondents. The
other brands that most participants possess are I-Phone (26.45%), Sony (6.61%), Nokia
(4.13%); LG (0.83%) and HTC (0.83%). Of the total respondents, 19.83% owned other
brands exempted from the choices. Of these group 15.5% owned Chinese brand such as
Huawei, Xiaomi, Oneplus and Ningo Bird. The other remaining 4.33% owned Indian
brands like Karbon, Micromax and Intex Cloud. Data gathered from interview revealed
that the most purchased LG Phone were LG followed by IPhone and One Plus.Based on
the survey results, LG is the most preferred brand, as highest respondents whose
previously owned mobile phone was also LG (31.4%) followed by Nokia (28.93%) I-phone
was merely owned by 10.74%.

2.1.3 Price of purchased phone

Table 3

Price paid for the mobile phone (LG)

Price Less then Nrs.10000 Nrs.10000-25000 Nrs. 25000- More than

40000 40000
Percentage 4.13% 34.31% 23.14% 38.02%
Sources:- Social media report of LG mobile Nepal

According to the news reported by BBC, (News, 2016) an Indian company Ringing Bells
had launched Freedom 251 which is a 3G phone with 8 GB storage costing less than 7 E, is
the world's cheapest smart phone till date. Since Nepal and India are a neighboring
country, most of the products are imported from India. Hence, if the Ringing Bells
Company maintains similar strategy in future, it signifies the growth and popularity of this
brand in Nepal in no time. This will further increase LG phone consumers in Nepal.
 22

Figure 3 Price paid for the mobile phone (LG)

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%

Less then 10000-25000 25000-40000 More than

Nrs.10000 40000

Percentage

According to the figure 3 from the sample of 123 participants, 38.02% respondents which is the
highest, have bought LG mobile phone costing more than NPR 40,000 followed by NPR
10,000-25,000 (34.71%) and NPR 25,000-40,000 mobile phone set (23.14%). This result might
give smart phone manufacturers to understand the range of LG phone that have high sales in
Nepal.

2.1.4 Consumer buying LG phone goes under various decision making

process.
Table 4

Source of information while purchasing LG mobile phone

Purchasi Others Family magazines Mobile Phone Social Mobile Phone

ng and and blogs website Media Retail Store

Address Fiends
Consum 5.69% 13.01% 34.96% 20.33% 20.33% 40.65%

er%
Sources: - Social media report of LG mobile Nepal
According to table 4 the (38.84%) answered that they switch or change their LG phone in 2-3
years and 37 (30.58%) changed their phones on a time frame of 3 years. There were a mere 3.31%
of the respondents who said that they change their LG phone in less than a year. This reflects the
life period of mobile phones with a single consumer in the context of Nepal. Nevertheless for
people residing abroad accepted that they tend to change their mobile phone with the introduction
of new technology. Majority of them change their phone in the span of 1-2 years. Out of 121
respondents, 47 people (38.84%) answered that they switch or change their LG phone in 2-3 years
and 37 people (30.58%) changed their phones on a time frame of 3 years. There were a mere
3.31% of the respondents who said that they change their LG phone in less than a year. This
reflects the life period of mobile phones with a single consumer in the context of Nepal.
Nevertheless, for people residing abroad accepted that they tend to change their LG mobile phone
with the introduction of new technology. Majority of them change their phone in the span of 1-2
years

40.00%

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
.
Figure 4 Source of information while purchasing LG mobile phone

With no surprise 40.65% of the sample group answered that they obtained the
information from family and friends. Result did not surprise me as Nepalese people are family
and friends oriented. 34.96% of the respondents which was the second highest said that they
obtained the information from mobile phone website. One exceptional response to the source
of information was from a tourist, which is quite plausible in a touristic destination. people
(20.33%) they obtained the information from social media and another people answered mobile
phone retail store. Only 13.01% said that magazine and blogs are the sources of information.

2.1.5 Consumer Behavior reason of selecting LG Mobile

Table 5

The Reason for Selecting Current Phone

Reason Other It was Cattchy online using Price Better Family

gift media long Compara feature Membe
and review tively r using
Attractive this satisfie
brand d
Consumer 4.13% 9.87% 3.31% 5.79% 10.12% 24.79 20.59 21.40%
%
Sources: - Social Media update LG Mobile Nepal.
 Series 1
30
25
20
15
10
5 Series 1
0
r ift e ng ly re d
the sg tiv iew lo nd ve tu fie
o a r ac r ev g a ti ea tis
w att ia in r ra f a
It
ed us his b pa er gs
nd t m e tt in
ya em eC
o B
ru
s
h lin
ttc on Pr
i c be
ca em
M
ily
m
Fa

Figure5 The Reason for Selecting Current Phone

Figure 5 Shown the why in Nepal people choose the LG mobile in current days

2.1.6 Influencers of consumer buying behavior Table 6

Factors influencing consumer buying behavior

Factors Extremely Very Somewhat Slightly Not

important Important Important Important important at
all
Quality 78.05 20.33 0.81 0.81 -
Price 42.28 33.33 21.14 1.63 . -
Brand 39.84 34.96 17.7 4.28 3.25
Social Status 21.14 26.02 37.40 4.88 10.57

Reparability 49.59 34.96 11.38 2.44 1.63

Technology 67.48 28.46 4.07 -
 Memory 63.41 30.89 4.88 0.81 . -
Sources: - Social media update LG mobile Nepal

One of the research objectives was to analyze the factors that influence and eventually motivates
young consumers in purchasing a LG phone. Therefore, this section covers related to external
and internal influence which affects consumer decision making process, 51.22% which is the
majority replied that they made their decision independently whereas 31.71% who are the
second highest respondents, said friends are their influencers for the purchase of LG mobile
phone. This clarifies that young consumers are mostly independent individual decision makers
and when compared to family (17.89%) they are more influenced by their friends as most of
the time these •generations' people hangout with their friends.

90

80

70

60

50

MI
40

30

20

10

Quality Price Brand Social Status Reparability Technology Memory

n Extremely important • Very Important A Somewhat Important

n Slightly Important • Not important at all Column I

Figure 6 Factors influencing consumer buying behavior

Figure 6 to analyze the factors that influence and eventually motivates young consumers in
purchasing a LG phone.

2.2 Major Findings

Total respondents. LG consumers have their own fundamental reasons behind choosing
authorized retailer and some of the reasons are trustworthiness, knowledgeable seller and
recognized quality. This establishes a fact that consumers tend to buy LG from trustworthy
sellers. To substantiate it, when asked same question to the interviewees, they replied that
most of the time they bought their phones from authorized retailer. Also, these days online
shopping has been a trend among many young consumers. Online stores in Nepal are
increasing slowly but steadily. This has also been proved through the survey where 10.57%
answered that they bought their current phone through online shopping.

1. According to the figure 3 from the sample of 123 participants, 38.02%

respondents which is the highest, have bought LG mobile phone costing more than
NPR 40,000 followed by NPR 10,000-25,000 (34.71%) and NPR 25,000-40,000
mobile phone set (23.14%). This result might give smart phone manufacturers to
understand the range of LG phone that have high sales in Nepal.

2. According to table 4 the (38.84%) answered that they switch or change their LG phone in 2-3
years and 37 (30.58%) changed their phones on a time frame of 3 years. There were a mere
3.31% of the respondents who said that they change their LG phone in less than a year.
This reflects the life period of mobile phones with a single consumer in the context of Nepal.
Nevertheless for people residing abroad accepted that they tend to change their mobile phone
with the introduction of new technology. Majority of them change their phone in the span of 1-
2 years. Out of 121 respondents, 47 people (38.84%) answered that they switch or change their
LG phone in 2-3 years and 37 people (30.58%) changed their phones on a time frame of 3
years. There were a mere 3.31% of the respondents who said that they change their LG phone
in less than a year. This reflects the life period of mobile phones with a single consumer in
the context of Nepal. Nevertheless,
 27

11.
CHAPTER III
RESULT AND ALALYSIS

3.1 Summary
Nepal is a small mountainous country situated in the southern part of Asia; landlocked by India to
the south, east and west and China to the north. Nepal has vast physical diversity commonly divided
into the Mountain region, Hill region and the Terai region. Difficult land topography has been
one of the main reason for failure in the development of physical infrastructures like
transportation, communication and electricity. With a GDP of 19.8 billion USD, Nepal is one of
the poorest and least developed countries in the world. (Bank, 2014) Government of
Nepal has not been able to develop telecommunication sector of the nation as per
requirement.

Nepal has considerable potential for development in various aspects like international industries
and communication sector. However, political uncertainty and difficult business climate
(landlocked, geographic location, poor infrastructure and poor economic policies) has been a key
hurdle to attract foreign investment. In addition, persistent power cut, civil conflict, labor unrest,
rudimentary state of transportation infrastructure, and earthquake-prone nation have been a
challenge to flourish business in Nepal.

April 3, 1973 was the day when the first handheld mobile phone was invented by Martin Cooper of
Motorola Company. (Dhir, 2004) Later, Amos Joel Jr. of AT&T/Bell Labs gave true meaning of
mobile phone by inventing the system that lets caller talk without any interruption during their
movement by switching signals from one cell tower to another. (CBS News 60 Minutes, 2010)
In Nepal, the history of Telecommunication service began with open wire trunk between
Kathmandu and Raxual (Indian border town). It was the first telephone line introduced in
Kathmandu in 1914. After the establishment of Mohan Akashwani in 1948, telecom service was
officially provided. (Telecom, 2015) It was 1995, December 25, the then government of
Nepal made a

decision to involve private sector for the development and expansion of

telecommunication sector in a competitive environment. In order to make the
telecommunication services and facilities reliable and easily available to the public in all rural
and urban areas throughout Nepal; Telecommunication Act 1997 and
Telecommunication Regulation 1998 was implemented as a legal support. In 1998, Nepal
Telecommunications Authority (NTA) was established as an autonomous regulatory body to
initiate work. (Authority, 2012) The state-owned incumbent operator, Nepal Telecom Company
(NTC) held a monopoly in all aspects oftelecom in the country. However, licensing of United
Telecom Ltd. (UTL) made NTC to lose its monopoly on basic telecom services. NTC was
transformed into Nepal Doorsanchar Limited on 13 April, 2004. (Telecom, 2015) In the same
year, Spice Nepal Pvt. Ltd. started the operation of Mero Mobile which was later changed to
Ncell. It is the first private GSM Operator in Nepal. Eversince, there has been remarkably strong
subscriber growth in the mobile segment of the market.

Mobile communication industry in Nepal is still emerging or more likely in its infancy. 15
years ago it was a symbol of status for Nepalese people to have a mobile phone. Mobile phone
used to cost more than NPR 50,000, which in today's mobile market costs NPR 3,000 or even less.
At the same time, cost for making and receiving phone calls was comparatively high. In a span of just
five years, there has been a rapid growth of mobile technology in Nepal. Mobile penetration in
Nepal is moving steadily. It stood at 89 percent in mid-December, 2014, registering a rise of
14.03 percentage point compared to mid-December, 2013. (Republica, 2015) It was after 2011, the
mobile internet market has been expanding in an accelerated pace including mobile broadband.
NTC had launched its full WiMAX service in 2013. (Evans, 2015) According to the report
provided by NTA, in one year period internet penetration increased from 28.63 percent to
38.09 percent in mid- December 2014.

3.2 Conclusion
The main purpose of this study was to investigate the underlying factors that determine
the LG Phone buying behaviour of young consumers of Nepal and the impacts of

their lifestyle in decision making process. Young consumers were researched believing that they
are potential consumers of LG Phone in Nepalese market. The aim was to examine the purchasing
behavior of consumers living in Kathmandu, Nepal. This approach was selected due to the
reality of Kathmandu city being centralized and its centric attitude being prevailed in all sectors of
Nepal.

The result after analyzing the findings based on the survey and interview shows that majority of
the consumers were from age group 21-25. A clear majority of the consumers own LG followed by
I-Phone. Better features when compared to similar model is the main reason for purchasing this
particular brand (LG).

With regards to the first research question, which was to identify the factors that influence
consumers to buy LG Phone, the finding shows that young consumers are the independent
individual decision makers. The second majority of the consumers purchased their LG Phone by
the recommendation of friends. The result also shows that quality of LG Phone is considered to
be extremely important factor. Technology is another important factor that motivates them to
buy specific LG Phone. Inconspicuously, social media has also been playing an important role in
the purchase of LG Phone.

For a country like Nepal, it is much of a surprise that price is not an important factor when
choosing LG phone, especially by middle class family. Purchasing habit of Nepalese consumer has
changed progressively with the pace of time. Despite of Nepal being a developing country, there
has been a significant growth in the disposable income of Nepalese people in the last few years.
Increase in inflow of remittances is one of the reason for increased disposable income. In a span of
just one year, there were 4 percent increment (in 2015) in the remittance inflow i.e. US$455
million to US$474 million. (Fund, 2016) There is a direct noticeable impact on a country's
standards of living with such extensive inflows of remittances. (Endo & Afram, 2011) It can be a
positive hint for all the LG Phone companies to increase their market in Nepal as this has led to
increased consumption. Moreover, living standard of Nepalese people have raised significantly
in the past decade. When compared the living standard of Nepalese people

living in Nepal and those residing abroad, more or less they have similar pattern of spending
and purchasing habit.

Likewise, majority of the consumers purchased their LG Phone from authorized retailer. It is
because of trust factor as seller from authorized retailer are considered to be more knowledgeable.
Moreover, it is a human temperament to follow the safe side.

LG Phone companies are improving the technology dramatically. But the battery technology in
LG Phone is not improving at the same pace. However, the study reveals that battery life of a
LG Phone is one of the most sought features by the consumers. Therefore, LG Phone companies
who are willing to take market place in Nepal should consider this. The LG Phone market in
Nepal, specifically in Kathmandu city is expanding expeditiously. Nevertheless, there is 'a
high scope for further expansion in this sector as there is spectacular increment in
consumer affordability and purchasing habit. Moreover, demand for LG Phone persists
relatively constant due to the rapidly growing technology. Hence, it can be concluded that Nepal,
despite being a country with poor economy, there is much more potential in LG Phone market
with potential purchasing power of the largest population.
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33

QUESTIONNAIRES

I am doing a market research project on Consumer behavior with respect to purchase LG Mobile
would like to ask you few questions. so please spare few minutes from yours schedule to answer
them.

Q1 Do you LG Mobile or Other?

i. Yes ii. No

Q2 Which Radio or Mobile do you usually use?

Q3 Do you Buying LG Mobile?

i. Yes ii. No

Q4 Which website is applicable to you to Buying a LG mobile?

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