Management Investigation and Dissertation

Management Investigation and Dissertation

(MN6P00)

Influence of Social Environmental values in consumer’s

decision making in context of Nepal

Submission Date:

Submitted to: Mr. Navraj Bhusal Submitted by:

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 Management Investigation and Dissertation

Contents

Declaration .................................................................................................................................................. 5
Acknowledgements .................................................................................................................................... 7
Abstract ........................................................................................................................................................ 8
Chapter 1 ..................................................................................................................................................... 9
Introduction.................................................................................................................................................. 9
Chapter 2 ................................................................................................................................................... 12
Literature review ....................................................................................................................................... 12
1. Socio-environmental aspects of marketing .................................................................................. 12
2. Socially Responsible consumer..................................................................................................... 13
3. Socially Responsible Consumption............................................................................................... 14
4. Relation between Corporate Societal Marketing and Social Responsible Consumption. ... 15
Chapter 3 ................................................................................................................................................... 17
Methodology.............................................................................................................................................. 17
Research design................................................................................................................................... 17
Study population ................................................................................................................................... 17
Sampling ................................................................................................................................................ 17
Sample Size .......................................................................................................................................... 17
Nature and source of data .................................................................................................................. 18
Participants............................................................................................................................................ 18
Measurement tools................................................................................................................................... 18
Questionnaire Administration ............................................................................................................. 18
Data Analysis Techniques .................................................................................................................. 19
Validity, Reliability, Accessibility and Ethics ..................................................................................... 19
Chapter 4..................................................................................................................................................... 20
Data Analysis, Results and Discussions: ............................................................................................. 20
Demographic factors............................................................................................................................ 21
Social Conscious factors ..................................................................................................................... 22
Product consumption factors .............................................................................................................. 23
Socio-environmental factors affecting consumption decision ....................................................... 26

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Correlation Analysis ............................................................................................................................. 26

Regression Analysis: ........................................................................................................................... 27
Chapter 5 ................................................................................................................................................... 29
Summary, Conclusion and Recommendations: .................................................................................. 29
Introduction: .......................................................................................................................................... 29
Summary of the major study findings: ............................................................................................... 29
Demographic characteristics of the respondents with background .............................................. 29
Socio-environmental factor and Consumption decision ................................................................. 29
Conclusion ............................................................................................................................................. 30
Recommendations ............................................................................................................................... 30
Bibliography .............................................................................................................................................. 31
Appendixes................................................................................................................................................ 34

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List of Tables and Figures

Figure 1 Three pillars of Societal Marketing concept ................................................................................. 13
Figure 2 Flow of information between CSR and consumer social responsibility Manning 2013 ............. 15

Table 1 Gender Distribution of Respondents 21

Table 2 Age Distribution of Respondents ................................................................................................... 21

Table 3 Education distribution of respondents .......................................................................................... 21
Table 5 Social activities Participation distribution of respondents .................................................... 22
Table 4 Occupation distribution of respondents ........................................................................................ 22
Table 7 Product quality distribution of respondents ............................................................................ 23
Table 6 Socially responsible consumption distribution of respondents ..................................................... 23
Table 8 Product cost distribution of respondents ................................................................................ 24
Table 9 Comapny's social activities of respondents ........................................................................... 24
Table 10 Brand awareness distribution of respondents ..................................................................... 25
Table 11 Product convenience distribution of respondents ............................................................... 25
Table 12 Descriptive statistics analysis ....................................................................................................... 26
Table 13 Correlation analysis ...................................................................................................................... 26
Table 14 Model summary of Regression analysis ....................................................................................... 27
Table 15 Anova of Regression model.......................................................................................................... 27
Table 16 Coefficient of Regression model .................................................................................................. 28

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Abstract

In today’s world of rapidly evolving innovation and technology consumer have a wide range of
products and services to choose. As result companies have to come up with a new or
improvised scheme. Also, the social and environmental concerns are at the hype, people are
more socially conscious than ever. In the research literature, there has been growing interest in
socially responsible consumption issue and how ethical principle can influence consumption
decision making. Societal Marketing is a very important tool to attract and involve the customer
in social cause and making a profit out of it. (Kolter & Wong, 2007) describes the societal
marketing concept is to utilize marketing in the time of global problems, environmental
problems, social problems, lack of resources. It must be emphasized that only particular
consumer response to social-environmental aspect of marketing scheme. According to
(Schlegelmilch; Bohlen; Diamantopoulos., 1996), the socially conscious consumer can be
defined as a consumer who takes into account public consequences before their consumption
or who attempts to purchase goods that have a positive benefit for the society. Socially
responsible consumption and social values influence the consumer’s decision making have not
been analyzed in terms of developing country like Nepal.

This paper shows the link between Social marketing and its influence on consumer decision
making. There are also identified different key attributes like environmental, social, education,
health, philanthropic cause, that consumers are willing to pay extra if given choices. According
to the quantitative survey, there are identified key factors influencing consumption decision.
There is still a dilemma between attitude and actual purchase or consumption. Consumer’s
attitudes towards social responsible consumption have become positive but consumers tend to
buy goods for personal than social reasons.

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Influence of Social Environmental values

in consumer’s decision making in
context of Nepal
Chapter 1

Introduction
Over the short periods of time, our society has evolved drastically in terms of values, culture,
perceptions as well as modification related to business practices of companies in accordance
with consumer buying behavior. Globalization is rapidly evolving innovation and technologies,
consumers have a wide range of products and services to choose. As a result companies have
to come up with new or improvised scheme frequently. Also, the social and environmental
concerns are at the hype, people are more socially conscious than ever. Today’s active and
knowledgeable consumers can choose from a wide variety of familiar manufacturers and
products.

Corporations are practicing corporate societal marketing programs because marketers believe
that it is important to be viewed as a socially responsible business entity to build brand image
and increase market share for long term benefits. (Szykman, 2004)

It is found that 80% of Americans believe business entities should be socially responsible, and
81% said that, when quality and price is equal to its alternative brands, they would switch
brands to support a cause. (Barrientos, 2013)

According to (Barrientos, 2013), women living in developed countries have more spending
power and they have more “caring” approach to consumption decisions. Also, consumers in a
developed nation are more concerned about moral and ethical issues compared to developing
nations.

Socially responsible consumption is associated with ethical, moral and social factors that
influence consumer’s choice. Despite the increase in the demand for socially responsible
products, there is no clear evidence regarding attitudes and actual consumption decision or
purchase.

The research gap: Understanding the consumer consumption behavior towards socially
responsible approach has yet to be analyzed in a developing country like Nepal. (Vytautas &
Sneideriene2, 2013)

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Research questions:

This research paper is designed to identify which is the main factor that consumers consider in
corporate social responsibility. The spotlight of this research includes the following questions:

1. Do consumers think corporate have a responsibility towards the environment and society?

2. If corporations are socially responsible, what nature of that responsibility attracts consumers?

3. How do consumers perceive towards socially responsible business practice by a firm?

4. What factors most influence consumer’s to purchase products and services?

Research Hypothesis: This hypothesis should be after the review

HO: There is no relation between Socio- environmental factor and consumption decision.

H1. There is a relation between Socio- environmental factor and consumption decision.

Objectives:

The objectives of this research paper are;

To identify the consumer’s perspective towards socially responsible business practice by a firm.

To identify the major factor of corporate societal marketing that consumer is interested to invest
or purchase.

To investigate socio-environmental values influence the consumer’s decision making in Nepal.

Significance

The marketing model is mainly based on the perception of consumer autonomy; we can say that
the role of the marketing process is more of technical than ethical in nature- it’s a function is to
interpret market demand into production, not to assume what type of demand or production
might be good for an organization. (Dixon, 1992)

Most of the profit-oriented organization act according to the consumerism and external factors
that are influencing the society for responsible marketing action. In order to execute this scheme
management must understand the characteristics of those consumers who react to their
corporate social activities. For example, the business seeks to attract the consumer who
supports to eradicate social issues like environmental degradation, must first identify the
distinctiveness of that consumer segments. (FREDERICK & WEBSTER, 1975)

(Lynikaitė & Liesionis, 2010) identified the main factors that influence green products/socially
conscious products consumption are consumer understanding of environmental problems and
accessibility of green products. (Karlaitė & Tamošiūnaitė, 2013) find out that, to encourage
socially responsible decision on safe food consumption online social media is the best platform
to reach the consumer. (Arlauskienė & Vanagienė, 2011) Investigated there is a strong

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connection between the promotion of corporate social responsibility and an increase in brand
equity among customer.

Researchers agree for a successful corporate societal marketing program choosing the right
cause is very crucial. (Hoeffler & Keller, 2002) Suggest that causes that are appropriate for both
the consumers and the business entity should be relevant to build brand equity.

There is a lack of analysis of socially responsible consumption and socio-environmental value

influence on consumption decision making in Nepal.

Limitation:

For socially responsible consumption decision factors like price, convenience, quality, product
awareness and CSR activities are responsible. There is still a dilemma between attitude and
actual purchase or consumption. Consumer’s attitudes towards social responsible consumption
have become positive but consumers tend to buy goods for personal than social reasons.

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Chapter 2

Literature review
Sustainability helps to lessen the harm for the environment made by the company and maximize
the social needs of the consumer. This gain consumer trust and can be a competitive advantage
for an organization while acquiring a desirable profit. It is achieved by balancing the three pillars:
social (Social values), environmental (environment concern) and economy (organization profit).
(Pileliene, 2013)

Society is becoming more conscious of the rapid depletion of the world’s natural resources. Not
only that environmental disaster caused by manufacturing plants such as Union Carbide
incident at Bhopal(India) and Exxon Valdez oil spill off Alaska. These disasters joined with
increased living standards, changing the perception of consumers and an increase in media
attention made companies a lot to lose if they do not balance the Sustainability. (Andrea, 2010)

Sustainability is the major drawback for any marketing strategy. Environmental concerns have
begun to reshape the dimension in which global organization competes. Today’s
knowledgeable and proactive consumer can choose from a wide variety of products due to the
increase in competition globally. Some consumer may prefer consuming locally manufactured
products due to their familiarity. Socially responsible business practice can provide organization
competitive advantage in the highly dense market. (Pileliene, 2013)

1. Socio-environmental aspects of marketing

Definitions of marketing concepts have been numerous, among them (Houston, 1986)purpose:

“The marketing concept is a managerial process to promote the growth of business entities.
Well- defined but restrictive market conditions to achieve determined goals which may or may
not be product related: the marketing concept is a well-defined algorithm to show how a
business entity can achieve goals most efficiently.”

The concept of societal marketing emerged in 1972, promoting a more ethical model of
marketing, socially responsible moral and the way socially conscious consumer think. (G.K.
Deshmukh, 2012) .The Societal marketing concept is to utilize marketing in the time of global
problems, environmental problems, social problems, lack of resources. (Kolter & Wong, 2007),
According to the concept of Societal marketing, classical marketing concepts cannot define the
short term wants of customers and their long term prosperity. (Kotler, 1969)

(Abratt, 1989)said, the term Societal marketing has hardly found its way into common business
terms, not because of problem in academic concept but due to use of social and moral general
terms like social marketing, green marketing, cause- related marketing, socially responsible
marketing, ethical marketing which have spawned streams of literature are in common usage
among the business practices. Using social concerns in the business of one kind or another by
the different marketer. There is clear evidence of this concept practiced by firms to promote their

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consciousness towards health, nutrition, safety, education and/or environment. (for example:
Nestle, Johnson & Johnson, Marico's Nihar Shanti Amla hair oil, Kellog’s, etc) (Crane &
Desmond, 2002)

In order to execute a successful Societal marketing plan, a specialist has to balance three
pillars- Business Profit, Customer wants and Social interests. During the late 19’s large number
of companies, marketing was mostly for the short- term goal( profit), but over the periods they
realize the importance of long term benefits, (Lukáš et al., 2017). As shown in figure 1;

Figure 1 Three pillars of Societal Marketing concept

The societal marketing concept is based on the fact that a business organization should first
identify needs, wants and key interest of target markets and to provide the required satisfaction
more efficiently than the competitors to uplift the benefits for the customer and the society, while
gaining profit in return. (Jakubikova, 2012)

Cooperate social responsibility is also understood as socially responsible behavior in an ethical

sense. (Lukáš;Papík; Mário; Olšavský; František., 2017)

2. Socially Responsible consumer

According to (Schlegelmilch; Bohlen; Diamantopoulos., 1996), consumers began to seek
environmentally-friendly alternatives in preference to their usual product purchase. The socially
conscious consumer can be defined as a consumer who takes into account public
consequences before their consumption or who attempts to purchase goods that have a positive
benefit for the society. The choices of socially responsible consumers are becoming a factor in
the consumer’s lifestyle. It should be emphasized that the consumer considers not only
individual satisfaction but also social goals and ideologies. (Uusitalo, 2004)

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In short, a socially responsible consumer must be aware of the social problems and actively
participate in community work, while believing that they have the power to bring positive
change. Or, they can support the cause by purchasing goods for their optimistic qualities (e.g.
green environmentally friendly products, social welfare cause, and community development)
while boycotting products with negative qualities (e.g. environmental corrosive products, made
by children’s, self-centric). (Vytautas Juscius1, 2013)

According to (Maignan, 2001), A socially conscious consumer in consumption decision takes

into account social issues, which are supported by stakeholders of the company. In this respect,
stakeholders are taken as agents of social demand.

(Blaha & Dytrt, 2003)Explains corporate social responsibility is socially responsible act by
organization in ethical sense to improve social conditions.

(Mohr, 2001) Mentioned that corporate social responsibility should be included as one of the
major factors that influence consumer consumption patterns and argue that individual first
needs to acknowledge the level of CSR that this factor would affect consumption decision.

3. Socially Responsible Consumption

With new research findings showing that more and more people are purchasing “socially
responsible goods or green goods”

Consumer’s first need to become aware of a firm’s level of social responsibility before this factor
can impact their purchasing. A socially responsible consumer must be aware of social problems,
must believe they have the power to make a difference, and must be active in the community.
(Vytautas Juscius1, 2013)Consumption often goes beyond the value of the product and reflects
how consumers perceive the value created by the company. Socially responsible marketing is
an important tool to capture the dense market, but it is also very important to figure out what
social issues have more influence on purchasing decisions (environmental and social factors
(Barrientos, 2013) emphasize that women of developed countries have high purchasing power
and emphasize more ethical consumption. According to (Manning, 2013), there is an increase in
consumer income, so consumer seeks to purchase goods which functional and provide
emotional satisfaction at the same time. Consumers buying decision is mostly based on price,
quality, convenience and brand awareness. So, it can be said consumer rather buy goods for a
personal reason than a social cause. (Vytautas Juscius1, 2013) (Anderson, 1972)

In short, socially responsible consumption is not self-centered, as it is a diverse concept

containing a variety of consumers’ behavior and cooperate social responsibilities.

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4. Relation between Corporate Societal Marketing and Social Responsible

Consumption.

Over a period of several years, our society has undergone a significant development of changes
in culture, opinion, values as well as changes related to business activities in accordance with
consumer buying behavior. To withstand the consumer demand and to develop the society and
increase prosperity profit-oriented firms have been applying societal marketing concept and
corporate social responsibility in general. (Lukáš et al., 2017)

Societal marketing concept and corporate social responsibility have very similar agendas. A
large number of researches have been done on CSR from a different perspective compared to
Societal marketing concept.

Corporate societal marketing is part of the broader domain of corporate societal responsibility,
to elaborate this domain (Lukáš et al., 2017)

“A corporate social marketing is a firm’s initiative where significant amounts of time and
marketing personals work towards achieving a major goal to persuade people to engage in a
socially beneficial behavior”

(Marquina, 2012) argues that there is a link between corporate social responsibility and
consumer’s perception of the company or its products. (Mohr, 2005) argue that consumers are
willing to pay more for the socially responsible product if it is accompanied by an additional
value. The business organization to acknowledge and forecast the final impact on the balance
between corporate social responsibility influences environmental, social and financial factors
influence the corporate brand value. (Manning, 2013). As shown in figure 2;

Figure 2 Flow of information between CSR and consumer social responsibility Manning 2013

(Ruiz, 2007) and (De Pelsmacker, 2005) (Uusitalo, 2004) identifies that corporate social
responsibility helps to create a positive brand image but is not the prevailing criteria of
consumption decision. Price, quality, convenience and brand awareness is the most vital factors

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for a consumer purchasing decision. Consumers purchase goods for personal rather than social
reasons.

In short, the socially responsible consumer behavior is influenced by various factors, such as
price, quality, convenience, brand awareness, level of corporate social responsibility and
corporate societal marketing schemes. Still dilemma can be observed between consumption
decision and the attitudes towards socially responsible products. (Vytautas Juscius1, 2013)

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Chapter 3

Methodology
Research design

To test the research hypothesis, a descriptive quantitative approach was adopted. This design,
examine the correlation between the independent variable (Socially responsible consumption
decision) and the dependent variable (Socio-environmental values). It used in experimental
research that has been considered unethical, in addition, (Vytautas & Sneideriene2, 2013)
argued that “there is a discrepancy between consumer attitudes and actual behavior in
consumption decision” because theoretically, it is defined as irrational postponing.

Study population

In the context of Nepal, the urban population had reached 38.6 percent of the total population of
Nepal. Kathmandu contributed 23.4 percent of Gross Domestic Product (GDP) out of 33.1
percent of the total urban area, according to the (Ministry of finance, 2015). This study took the
population of people of age group 16 and above, living in Kathmandu.

Sampling

Since, the study unit of this analysis is people of age 16 and above living currently in
Kathmandu, in order to get an effective frame within the sample properties as per the objective
of the study. According to (Central Bureau of Statistics, 2019) Kathmandu being the capital of
Nepal has a population of 985,000, accounts for 1/12 population of Nepal’s total population.
Kathmandu valley is a cluster of cities like Bhaktapur, Lalitpur, Kritipur and smaller regions.
Therefore, this study focused on Kathmandu valley’s consumer’s and used clustered sampling
technique to draw a sample.

To terminate biases under clustered sampling, the sample size was increased to meet the
standard of 150 units

Sample Size

This study is focused is to identify the casual relation among the dependent variable (Socio-
environmental values) with independent variable (Socially responsible consumption decision),
where, correlation model was used. 150 samples will be taken with 0.05 margin of error and

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95% level of confidence, for the finite Kathmandu valley’s population of 985 thousand, however,
we took 160 consumers as a sample for the study.

Nature and source of data

This study is primary data, collected from the consumer’s age 16 and above using
questionnaire. The data is cross-sectional, i.e. data from various respondents at a single point of
time. Since, this research study examined consumer socio-environmental values on
consumption within the same period, therefore cross-sectional data is used.

Participants

Participants were chosen from Bhaktapur, Lalitpur, and Kritipur districts of Kathmandu valley of
different age, gender, profession, income level, education degree are considered for the study.
The participants were all above 16 of age and currently living within valley. All the participants
were equally informed to take part in this study.

Measurement tools
Data Collection Instruments, Score Range and Indicators

Constructs Instruments Descriptions Indicators

Consumption Socially Measures High score
decision conscious attitude towards equals to high
consumer and socially attitude towards
Socially responsible socially
responsible consumption in responsible
consumption academic tasks consumption
scale
Socio- Consumer’s Measures actual High score
environmental perception consumption equals to high
values towards Socially towards the actual
responsible socially consumption
corporation scale responsible towards socially
product in responsible
academic tasks products.

Questionnaire Administration

Since this study questionnaire was self-report questionnaire, so participants were initially
informed about the topic and producer to be followed in fulfilling the questions requirement. Any
quires asked in the process of fulfilling the questionnaire were immediately answered by the
researcher. The questionnaire was subjected to complete in 10 minutes time, so each
participant was given adequate time in the process of fulfillment. In the research study, the
Likert scale is most widely used technique that can measure from 1 to 5 with the attitudes of

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respondents towards a questionnaires to indicate whether they strongly agree, agree, neutral,
disagree and strongly disagree with each series of statements about the research. The first
questions had demographic factors, social conscious factors, product consumption factors,
socio-environmental factors and consumption factor. The information gathered formed the basis
of the conclusion as to likely be the reason for attitude and actual behavior of socially conscious
consumption within Kathmandu valley.

Data Analysis Techniques

The research data that are obtained from the close-ended responses used the description
option of SPSS (Statistical package social scientific) for analyzing data. This study involves the
transforming of the option to codes that were used 1,2,3,4 and 5 where 1 represented Strongly
agree, 2 represented agree, 3 represented neutral, 4 represented Disagree and 5 Strongly
Disagree respectively. Since this study analyzed the role of Socio-environmental values on
socially responsible consumption behavior, so, correlation analysis was used along with
descriptive measures. Under descriptive measures, this study used mean, medium and
standard deviation, where the data average, central point and spreading were checked. In
addition, the correlation of variables was examined to find out the degree and direction of their
relations. The Pearson’s correlation co-efficient method is used in for data analyzing for
determine whether there is any linear relationship between the dependent variable and
independent variable that was quantitative data. These methods were used to analyze the linear
relationship between socio-environmental factors (attitude) and actual consumption. The
information obtained formed the basis of the conclusion as to likely be reason for the socially
responsible consumption.

Validity, Reliability, Accessibility and Ethics

The research studies were accessed through selected shopping destination in Kathmandu
valley, through personally face to face survey so that it can construct valid outcome with respect
to questions. For the reliability of the questions pre-testing was conducted to 20 individuals to
improve and modify the questionnaire, so that the results can come same to conform that they
were reliable for the research study. During the time of research, respondents were
uncomfortable at first, but after their confidentiality was assured, they responsibly filled the
questionnaire which helps research for further study.

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Chapter 4

Data Analysis, Results and Discussions:

The purpose of this article to present the data that are collected from general public’s, analysis
and explanation of the findings of the study. The main objective of this research is to analyze
Socio-environmental factors influences consumption decision making in context of Nepal.
Whereby, Socio-environmental variable is the attitude towards the corporate societal marketing
by organization and consumption decision is the actual behavior displayed by the consumer’s.
The data was collected from 163 randomly selected individuals living in Kathmandu Valley
through a questionnaire that focuses to answer the following research questions:

- Do consumers think corporate have a responsibility towards the environment and society?

- If corporations are socially responsible, what nature of that responsibility attracts consumers?

- How do consumers perceive towards socially responsible business practice by a firm?

- What factors most influence consumer’s to purchase products and services?

Respondents were provided with general information regarding the questionnaires about the
research with ease from researcher, then edited, coded and entered the data in SPSS for
further analysis.

This chapter contains two main parts- 1st part contains Demographic information that includes
gender, age, occupation, education degree and 2nd part contains the relation between Socio-
environmental factors (dependent variable) and consumption decision (independent variable).

Questionnaire Response rate:

Questionnaire is the main tool for data collection used by researchers. Random people from
different area of Kathmandu valley were asked to fill the questionnaires. Response rate was 98
percent out of these 163 respondents.

Background Information:

The respondents were requested to provide the information regarding their gender, age, and
occupation and education degree. Also was requested to sincerely fill almost every question
that is required to determine the attitude towards Socio-environmental activities by organization
which can influence actual consumption decision.

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Demographic factors

Table 1 Gender Distribution of Respondents

Among 163 respondents sampled in the study is shown in the Table1, which indicates 47.9
percent are male and 52.1 are female

Age Distribution of respondents:

Table 2 Age Distribution of Respondents

From the table 2,we can conclude the age distribution of the respondents below 20 years are
25.5 percent, 21-30 years are 47.2 percent, 31-40 years of age are 20 percent, 41-50 years are
6.1 percent and lastly 51 and above years of age are 1.2 percent.

Education Distribution of respondents:

Table 3 Education distribution of respondents

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Table 3 shows that respondents with education degree, high school or below degree are 26.4
percent, Diploma degree are 7.4 percent, Bachelors degree are 45.4 percent, Masters Degree
are 16 percent and PHD degree holder are 4.9 percent among 163 consumers.

Occupation distribution of respondents:

Table 4 Occupation distribution of respondents

With regards to occupation of the respondents, the findings in the table 4, revels that 43.6
percent are students, 20.2 percent are Part time workers and 36.2 percent are full time workers.

Social Conscious factors

Social conscious factors include respondent’s participation in social activities and socially
responsible consumption, to make respondents aware about the main aim of the research
before filling the valid questions.

Social activities participation of respondents

Table 5 Social activities Participation distribution of respondents

Table 5, reflects that 62.6 percent of respondents consider participating, 10.4 percent does not
consider participating and 27 percent are not sure about participation in social cause.

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Socially responsible consumption of respondents

Table 6 Socially responsible consumption distribution of respondents

Table 6, vast majority of respondents- 41.1 percent strongly agrees and 42.3 percent agrees
they have positive impact through consumption decision on society. While 16 percent have
neutral opinion and 0.6 percent don’t consider purchasing products that benefits to society or
environment.

Product consumption factors

Product consumption factors analyze quality, cost, company social activities, brand awareness
and convenience. These are important factors affecting personal consumption decisions among
respondents.

Product Quality on respondent consumption

Table 7 Product quality distribution of respondents

Table 7, represents the 58.3 percent and 38 percent of respondents consider product quality is
the major factor for consumption decision. 3.1 percent have neutral thoughts and 0.6 percent of
respondents strongly disagree to consume product based on Quality. So, total of 96.3 percent
of respondents consider buying goods based on the quality of product.

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Product Cost on respondent consumption

Table 8 Product cost distribution of respondents

Table 8, 28.2 percent strongly agrees and 57.7 percent agrees to purchase goods based on
cost. Total of 85.9 percent of population consider product cost for consumption. While 11.7
percent have neutral view, 1.8 percent disagrees and 0.6 percent strongly disagrees to
consume goods based on product cost. So, majority of respondents 85.9 percent purchase
decision is highly affected by product’s cost.

Company’s social activities on respondent consumption

Table 9 Comapny's social activities of respondents

Table 9, reflects 16 percent strongly agrees and 43.6 percent agrees consider purchasing
goods based on the corporate social responsibility/company’s social activities. 35 percent have
neutral value while considering CSR activities of organization affects purchase decision. 5.5
percent disagree to consume product based on CSR activity.

So, large numbers of respondents 59.5 percent consider company social activities for
consumption decision.

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Brand awareness on respondent consumption

Table 10 Brand awareness distribution of respondents

In the table 10, 32.5 percent strongly agrees and 47.2 percent agrees considering purchasing of
goods based on brand awareness. 17.8 percent have neutral thoughts, while 1.8 percent
disagrees and 0.6 percent strongly disagrees to consume product based on brand awareness.
Total of 79.8 percent of respondents purchase decision based on brand awareness of product.

Product Convenience on respondent consumption

Table 11 Product convenience distribution of respondents

Table 11, reflects 35.6 percent of respondents strongly agrees and 45.4 percent agrees, they
consider buying the product based on its convenience. 17.2 percent have neutral thoughts,
while 1.2 percent disagrees and 0.6 percent strongly disagrees to consider convenience for
consumption decision. Large population of respondents 81 percent decision is based on product
convenience

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Socio-environmental factors affecting consumption decision

In these sections, it helps to identify the factor on socio-environmental marketing scheme by

socially responsible corporation influence consumption decision of consumers with total 23
questions. These questions focused on the consumer attitude towards the concept of socio-
environmental scheme by socially conscious organization for the welfare of the community and
actual behavior for the consumption of products of such organizations. The scale is set from 1 to
5 i.e. strongly agree to strongly disagree as per the objectives of this study.
Table 12 Descriptive statistics analysis

In the table 12, it shows the difference scores for each independent and dependent variables.
The socio-environmental attitude mean is 20.1902 which indicate that they neither strongly
agree nor strongly disagree with socio-environmental factors (attitude). Similarly, actual
consumption decision (Socially responsible consumption) mean is 14.4172 this shows
consumers strongly agree with actual consumption of products of socially responsible company.

Correlation Analysis

Correlation is method for investigating the relationship between two quantitative, continuous
variables

Table 13 Correlation analysis

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In the table 13, it shows the correlations between the dependent and independent variables. In
the table, the value of the correlation near to 1 to -1 shows the strong correlations where the
value near the 0 shows the real correlation among the variables.

The level of significance is 0.01 with the 2- tailed sample test which indicates the data extracted
is 99 percent correct and 1 percent has chance of being incorrect. By using Person correlation,
at the significant level of 0.01 signifies that coefficient relation between the socio-environmental
factor and actual consumption decision is 0.552. So, we can say that socio-environmental
attitude is major factor that affect actual consumption since the coefficient is very close to 1.

Regression Analysis:

Table 14 Model summary of Regression analysis

In the table 14, we conclude the simple regression model of 0.552 and the adjusted R square
value is 0.300, which indicates the research has examined 30 percent on the factor (socio-
environmental attitude) influences consumption decision by consumer. This signifies that as 1
value increases in the independent variable will directly increases the socio-environmental
attitude by 0.304.

Table 15 Anova of Regression model

In the table15, it shows that the value of F is 70.453 and the level of significance is 0.000 which
is less than 0.05 (P < 0.05). So, we can conclude that this is good model to be conducted for the
research study.

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Table 16 Coefficient of Regression model

Table 16 help to study the degree of dependent variable, socio-environmental attitude that affect
independent variable actual consumption behavior multiple linear regression analysis was used.

The unit change in consumption behavior will change the socio-environmental attitude by 0.738
units. The T-test said that consumption behavior predicts socio-environmental attitude

We can conclude there is significant positive relation between socio-environmental factor and
consumption decision.

H1: there is a relationship between Socio-environmental factors and consumption decision.

So the above hypothesis is true.

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Chapter 5

Summary, Conclusion and

Recommendations:
Introduction:

The main objectives of the research study are; to identify the consumer’s perspective towards
socially responsible business practice by a firm, to identify the major factor of corporate societal
marketing that consumer is interested to invest or purchase and to investigate socio-
environmental values influence the consumer’s decision making in Nepal. This section provides
a summary of finding in data analysis and also gives conclusion and recommendation based on
above objectives of the research study.

Summary of the major study findings:

The main objective of this study is to analyze socio-environmental scheme or corporate societal
marketing by socially conscious organization influence the actual consumption decision of
consumers of age group 16 and above living inside Kathmandu valley. The research study was
descriptive in nature because of descriptive survey design and simple random sampling method
was carried out in online platform. These respondents filled the questionnaire and data was
presented accordingly to there responses.

Demographic characteristics of the respondents with background

The respondents of age group 16 and above were requested to participate on the questionnaire
to provide information based on their gender, age, occupation, education degree, attitude
towards social-environmental factors and socially responsible consumption. All these variables
are described in data analysis.

Similarly, the age is major factor for socially responsible consumption and after analysis
consumer of age category between 21 and 30 years old consider buying goods based on socio-
environmental factors.

Socio-environmental factor and Consumption decision

The research study confirms that both male and female of age category 21 years to 30 years
old consider social and environmental factors before socially responsible consumption.
Education and occupation has no impact on socially responsible consumption. (Vytautas &
Sneideriene2, 2013) Mentioned that price, quality and product convenience are the major factor

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for consumption but when given choice to support community, corporate societal marketing by
the organization can be beneficial to increase the sale and maintain good brand image.

Conclusion

Coming to conclusion, there is significantly positive relation between the socio-environmental

factors and consumption decision according to the research data analysis of people living inside
Kathmandu valley. Consumers are more concerned on which of the socio-environmental
scheme they are willing to invest. After data analysis it is found that consumer consider buying
environmentally friendly products when compared to other factors.

Thus, the research study concludes that though price, quality and product convenience are the
major factor to influence the consumption but when given choice about social and
environmental conscious marketing approach. Consumers tend to buy these products to
indirectly contribute to society without any physical labor. Thus, increasing the sale and brand
image of corporation.

Recommendations

After analyzing the research paper, consumer actual consumption behavior depends on social
and environmental factors. Corporation can identify the right cause and use that cause for both
benefiting society and increase sales. But this research doesn’t include things like right time to
set this campaign and duration of such campaign in the market. Also it is found that socially
responsible corporation charge higher than other, so there is lack of trust among consumer.

In future research there can be included the real consumption by respondents among socially
responsible company and irresponsible ones.

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Appendixes
Questionnaires Format

Name: Birendra Khadka

College: Islington Int’l College

I am currently pursuing Bachelor in Islington College (Kamal Pokhari, Kathamndu)

The purpose of our study is to learn Societal marketing influences on the customer’s
consumption decision making in context of developing country (Nepal)”. You are part of a
random sample of 150 individuals. Your attitudes and opinions are critical to the success of our
study. We recognize the value of your time, and sincerely appreciate your efforts on our behalf.
Individual responses are anonymous and all company level data will be held in confidence.

Please take 5 minutes to complete this survey and submit it in online at your earliest
convenience.

Demographic

1. Your gender?

Male / Female

2. Which age group you fall under?

Below 20 years/ 21-30 years/ 31-40 years/ 41-50 years/ 51 year and above

3. State your highest qualification?

Secondary education/ Bachelor degree/ diploma/ master degree/ PHD

4. Are you

Student/ part-time student/ Working personal/ others ( ) be specific

Socially conscious consumer

5. Do you consider participating in social cause?

Yes/ No/ No opinion

6. Do you consider purchasing products that benefits to society or environment?

Strongly Agree Neither Disagree Strongly

Agree Disagree

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General Consumption

8. Rate factors importance in purchase decision of a product?

Factors Strongly Agree Neither Disagree Strongly

Agree Disagree
Product
Quality
Product
Cost
Company
’s Social
activities
Brand
awarenes
s
Product
Convenie
nce

Socially responsible Consumption

9. If you have to pay 10% extra for socially responsible product, which of this factors compels
you the most? Rate the criteria?

Factors Strongly Agree Neither Disagree Strongly

Agree Disagree
Attempt to buy
environmental friendly
products
Attempts to buy products of
companies that aims to
solve social problems
Attempts to buy products of
companies that
discriminate use of
environmental degradable
materials
Attempts to buy products of
companies which donates
for Philanthropic cause
(Old age home/
orphanage/ disaster
casualties, etc)
Avoids buying products of
companies that are using
children for work
Attempts to buy products of
companies that contribute

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to forestation
Attempts to choose stores
that supports education for
unprivileged children of
rural and local areas
Avoids buying goods and
services of company that
release high amount of
toxic waste
Attempts to buy products of
companies that support
treatment of stray
dogs/cats/ cattle’s.
Attempts to buy products of
companies that hire
unprivileged people
(women and men)

Consumer’s Perception of Socially Responsible Corporation

7. Rate social responsibility act by business organization to build better society?

Not important/ Important/ Very important

11. Do you believe, consumption of socially responsible products have positive impact on
society?

Strongly Agree Agree Neither Disagree Strongly Disagree

12. Do you belief that buying product of company that does social activities, gives you emotional
satisfaction?

Strongly Agree Agree Neither Disagree Strongly Disagree

13. Can a company be both socially responsible and make products of high quality at fair price?

Strongly Agree Agree Neither Disagree Strongly Disagree

14. Do you think socially responsible companies are likely to have higher prices than companies
that are not socially responsible?

Strongly Agree Neither Disagree Strongly

Agree Disagree

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15. Do you believe that socially responsible business activity is waste of financial resources?

Strongly Agree Neither Disagree Strongly

Agree Disagree

16. Do you believe that socially responsible business activity reduce the opportunity for
enterprises to provide highest quality products?

Strongly Agree Neither Disagree Strongly

Agree Disagree

“Where, (1= strongly agree, 2= Agree, 3=neither, 4= Disagree, 5= Strongly Disagree).”

(Thank you for your precious time and support).

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