CONSUMER’S PREFERENCES TOWARD

DEPARTMENTAL STORES OF KATHMANDU

A
Project Work Report

Submitted By:
Rina Adhikari
TU Regd No:7-2-279-354-2018
Symbol No:702790104
Koteshwor Multiple Campus
Jadibuti, Kathmandu

Submitted To:
Faculty of Management
Tribhuvan University
Kathmandu

In partial fulfilment of the requirements for the degree of

Bachelor of Business Studies (BBS)
Kathmandu
May, 2023

i
 DECLARATION

I hereby declare that the project work entitled "Consumer's Preferences Towards
Departmental Stores of Kathmandu" submitted to the faculty of
Management,Tribhuvan University, Koteshwor Multiple Campus is an original piece
of work under the supervision of Mr. Devraj Upadhyay, faculty member, Koteshwor
Multiple Campus, and is submitted in partial fulfillment of the requirements for the
award of the degree of Bachelor of Business Studies (BBS). This project work report
has not been submitted to any other university or institution for the award of any
degree or diploma.

………………….
Rina Adhikari
Date: May 2023

i
 SUPERVISOR'S RECOMMENDATION

The Project work report entitled "Consumer's Preferences Towards Departmental

Stores of Kathmandu" submitted by Rina Adhikari of Koteshwor Multiple Campus,

is prepared under my supervision as per the procedure and format requirements laid

by the faculty of Management, Tribhuvan University, as partial fulfilment of the

requirements for the award of the degree of Bachelor of Business Studies (BBS). I,

therefore, recommend the project work report for evaluation.

…..………………..............

Supervisor:
Devraj Upadhyay
Date: May 2023

ii
 ENDORSEMENT

We hereby endorse the project work report entitled "Consumer's Preferences

Towards Departmental Stores of Kathmandu" Submitted by Rina Adhikari of
Koteshwor Multiple Campus in partial fulfilment of the requirements for award of the
Bachelor of Business Studies (BBS) for external evaluation.

Signature Signature
Sedunath Dhakal Govinda Bahadur Karki
Head of Research Management Cell Campus Chief
Date: Date:

iii
 VIVA-VOCE SHEET

We have conducted the viva-voce examination of the project work report.

Presented by
Rina Adhikari
Entitled

"Consumer's Preferences Towards Departmental Stores of Kathmandu" And we

found the project work report to be the original work of the student and written according
to the prescribed format. We recommend the project work report to be accepted as partial
fulfilment of the requirements for Bachelor's Degree in Business Studies (BBS).

VIVA VOCE COMMITTEE

Chairman Research Management Cell
Member (Supervisor)
Member (External Expert)
Date:

iv
 ACKNOWLEDGEMENT

I am quite happy and grateful to Tribhuwan University for including projects work
program in Bachelor's of Business Sutudies and providing a golden opportunity to get
a practical knowledge by implementing the theoretical knowledge. This project work
has been prepared in partial fulfilment of requirements for the degree of Bachelor's of
Business Sutudies

First of all I would like to extend my sincere gratitude Lecturer to Mr. Devraj
Upadhyay, and Govinda Bahadur Karki Campus Chief of Koteshwor Multiple
Campus Kathmandu for guiding and supervising me while preparing the summer
project report.

I am certainly indebted to all the respondents who filled up the Secondary data and
helped in data collection. Their valuable co-operation throughout the period of data
collection were outstanding. I would also like to express my gratification towards all
the departmental stores located in Kathmandu Area especially Binayak, Saleways, and
Munal Stores without which this report would be in vain.

I would like to thank the entire members of Koteshwor Multiple Campus for
supervising me and providing necessary guidelines to complete my report. The help
provided by my friends Manisha Shrestha, Sujan Gurung, Manju Poudel and Manjil
Suwal can‟t be forgotten while obtaining the necessary materials for my summer
project report.

And lastly, I would like to extend my heartfelt thanks to all who assisted me with their
valuable suggestions and ideas while preparing this report.

Rina Adhikari
Koteshwor Multiple Compus
Jadibuti, Kathmandu

v
 Table of Contents

DECLARATION ............................................................................................................ i
SUPERVISOR'S RECOMMENDATION .....................................................................ii
ACKNOWLEDGEMENT ............................................................................................. v
Table of Contents .......................................................................................................... vi
LIST OF TABLES ..................................................................................................... viii
LIST OF FIGURES ...................................................................................................... ix
ABBEVIATIONS .......................................................................................................... x
CHAPTER - I ................................................................................................................. 1
INTRODUCTION ......................................................................................................... 1
1.1 Background of the Study ......................................................................................... 1
1.2 Statement of the Problem ......................................................................................... 3
1.3 Objective of the Study ............................................................................................. 3
1.4 Significance of the Study ......................................................................................... 3
1.5 Review ..................................................................................................................... 4
1.5.1 Conceptual Review ........................................................................................... 4
1.5.2 National Review ................................................................................................ 6
1.6 Research Methods .................................................................................................... 8
1.6.1 Research Design ................................................................................................ 9
1.6.2 Types of Data .................................................................................................... 9
1.6.3 Population, Sample size and Sampling Process ................................................ 9
1.6.4 Data Collection Tools and Techniques ............................................................. 9
1.6.5 Data Collection and Analysis ............................................................................ 9
1.7 Limitation of the Study .......................................................................................... 10
CHAPTER – II ............................................................................................................. 11
PRESENTATION AND ANALYSIS OF DATA ....................................................... 11
2.1. Data of Presentation .............................................................................................. 11
2.1.1 Preferred Departmental Store .......................................................................... 11
2.1.2 Reason for Choosing the Definite Store .......................................................... 13
2.1.3 Quality of The Product .................................................................................... 14
2.1.4 Pricing of the Items ......................................................................................... 16
2.1.5 Arrangement of the Items in the Shelves ........................................................ 17
2.1.6 Employees Behaviour ..................................................................................... 18

vi
 2.1.7 Location........................................................................................................... 19
2.1.8 Interior Design................................................................................................. 20
2.1.9 Up-to-date or Fashionable Items ..................................................................... 21
2.1.10 Availability of Items...................................................................................... 22
2.3 Major Finding ........................................................................................................ 24
SUMMARY, CONCLUSION AND RECOMMENDATIONS .................................. 26
3.1 Summary ................................................................................................................ 26
3.2 Conclusions ............................................................................................................ 26
3.3 Recommendations .................................................................................................. 27
Bibliography ................................................................................................................ 29
Appendices ................................................................................................................... 30

vii
 LIST OF TABLES
Table No. Title Page No.
2.1 Most Preferred Departmental Store 12
2.2 Reason for Choosing the Definite Store 14
2.3 Quality of the Product 15
2.4 Pricing of the Items 16
2.5 Arrangement of the Items in the Shelves 17
2.6 Employees Behaviour towards Consumers 18
2.7 Level of Satisfaction in case of Location 19
2.8 Interior Design of the Store 20
2.9 Up-to-date or Fashionable Items 21
2.10 Availability of Items 22

viii
 LIST OF FIGURES

Figure No. Title Page No.

2.1 Most Preferred Departmental Store 12

2.2 Reason for Choosing the Definite Store 14
2.3 Quality of the Product 15
2.4 Pricing of the Items 16
2.5 Arrangement of the Items in the Shelves 17
2.6 Employees Behaviour towards Consumers 18
2.7 Level of Satisfaction in case of Location 19
2.8 Interior Design of the Store 21
2.9 Up-to-date or Fashionable Items 22
2.10 Availability of Items 22

ix
 ABBEVIATIONS

LIST OF ABBERVIATIONS USED

BBS : Bachelor of business study

TU : Tribhuwan University
FY : Fiscal Year
KTM : Kathmandu
USA : United State of America
URL : Universal Resource Locate
CS : Customer Satisfaction
B.S. : Bikram Sambat
Ltd : Limited
i.e. : that is

x
 CHAPTER - I

INTRODUCTION

1.1 Background of the Study

Consumer behaviour is all about the decision of consumer to buy and use products and
services. Understanding the consumers, it is worthy to entering the market. Marketers
spend significant fund trying to explore this phenomenon. Several factors are involved
in costumers‟ buying decisions; any one of which can became deciding factors. Several
previous studies suggested that there are many factors that directly or indirectly affect
consumers‟ purchase decisions psychologically. Various marketing strategies are being
applied by the marketers to attract customers. Due to increasing demand of costumers,
marketers are trying different ways to differentiate their services. According to Hussain
(2015) research atmospheric variables such as cleanliness, scent, lighting and display
layout have a positive influence on consumers purchase intention; whereas music and
color have insignificant impact on consumers purchase intention. It is said that social
shopper tends to spend more money than the solitary shoppers than those who come
alone to store. Research indicates that there is significant relationship between the sizes
of shopping party, time spent shopping and number of item purchased. This research
emphasized towards understanding this phenomenon in Nepalese market.

Human, regarded as the most intelligent living being in this earth, have been through
various eras. The present era is the ultimate era of business where people eat, talk and
sleep with business. The world has realised business in every corner and our country
Nepal is not an exception.

In the context of Nepal, departmental stores have contributed a lot in the biz world.
Generally, departmental store refers to a large retail store for the sale of many kinds of
goods arranged in departments. Departmental stores are nowadays available everywhere
and it has been taken as a great market in this competitive world. Kathmandu, one of the
major city of Nepal, consist various departmental stores. Recently these stores have
mushroomed here providing people various items under the same roof at reasonable
prices. Their popularity has been increasing day by day. Some of the departmental stores
situated at the heart of Kathmandu city are as follows:

.1. Binayak

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 .2. Munal Stores

.3. Yes N Yes Stores

With the increment in the popularity of departmental stores, its number has also
increased giving each other tough competition. We all are well aware of the fact that the
success and failure of each and every aspect of business heavily relies on consumer
behaviours and it applies for departmental stores as well. Some of the consumers are not
satisfied with the services it provides while some of the departmental stores are not
capable of fulfilling the consumer's needs necessities . This give rise to complaints from
the side of consumer and more stress on the side of management team involved in
departmental stores. Customers are regarded as the king of every business so they should
be handled delicately. The ultimate goal of every departmental store is the ultimate
satisfaction of its customers. So they need to focus more on their customer's taste and
preferences if they are to have long term and healthy relationship with their customers.

The business environment is dynamic in nature. As the environment around us changes

the customer's perceptions as well as needs and wants also tends to change. As a result,
they shift from one departmental store to another. For example: The first departmental
store of Kathmandu was omit store but it no longer exists. Only those who are capable
of giving people a complete shopping package at right time and right place
understanding the needs and desires of its customers are able to exist in this business for
long term.

Departmental stores have flourished the beauty of Kathmandu Valley. Due to the
existence of competitive environment among them, it has become increasingly important
for these stores to treat their customer's with royalty so that they can gain their loyalty
towards their store. In this modern era of business, customer loyalty plays significant
role in gaining success for the organization. And one can create customer loyalty by
taking small needs of customers into consideration. Only acquiring new customers is not
enough in today's competitive world. Departmental stores also need to retain their old
customers as well. They should be able to capture the hearts of their each and every
customer creating their own brand image.

Hence, departmental stores should regularly review and, when necessary, find ways to
improve the performance as well as services provided by the stores, paying particular
attention to refining communication and coordination with its customers.

2
1.2 Statement of the Problem
The problem towards which this study is directed is to identify the most preferred
departmental store of Kathmandu Valley.

This research had tried to seek the answers of the following questions.

 What is the Customers Preferences towards departmental stores of Kathmandu?

 What is level of satisfaction towards the provided b departmental stores?

 Which is the most preferred departmental state in Kathmandu by the customers?

1.3 Objective of the Study

Consumers are said to be the ultimate user on whose taste and satisfaction depends upon
all the chain of middleman from manufacturer to retailer until the consumer finally
consumes it. Thus, becoming a widely preferred departmental store presenting its
customer the highest level of satisfaction that no other store can provide is obviously not
an easy task.

The general objective of this research is to gain an insight into the consumers taste and
preferences regarding the departmental stores situated in Kathmandu city while the
specific objectives are as follows:

 To examine Customers Preferences towards departmental stores of Kathmandu .

 To examine level of satisfaction towards the provided departmental stores.
 To identify the which is the most preferred departmental in Kathmandu by the
Customers.
1.4 Significance of the Study
In due course of time, departmental stores have been successful to draw customer‟s
attention. So, many departmental stores have come into existence but only few of them
are able to meet their goal. With the increase in their number, the competition among
them has reached a heightened state. This research is helpful in the following ways:

 It flashes out actual view of the consumer towards the services provided by the
departmental stores.

 It identifies the competitive position of the departmental stores.

 It helps the departmental stores to become more open, flexible and participative.

3
  This research helps to understand consumer‟s behaviour.

 It also highlights the importance of establishing good relationship with the

consumer.

 The research provides an insight into the consumer‟s taste and preferences
regarding the departmental stores.

 It identifies the key success factor of departmental stores.

Hence, proper management of consumer‟s complaints and effective marketing strategy

leads to high level of consumer‟s satisfaction. And we are aware of the fact that high
level of consumer‟s satisfaction occupies significant place in the survival of the
departmental stores.

1.5 Review
A number of researchers have tried to study and investigate on the various aspects of
consumer attitudes Consumer's Preferences towards Departmental Stores of Kathmandu
shopping. Some of such researches related to this study are reviewed in this section:

1.5.1 Conceptual Review

The general meaning of customer is the entity that receives or consumes products (goods
or services) and has the ability to choose between different products and suppliers.
Whereas the meaning of preference is selecting of someone or something over another
or others.

Customer preference refers to the way in which consumers in a free market choose to
divide their total expenditure in purchasing goods and services. Using a limited number
of assumptions, an individual‟s preferences can be built up into a utility.

Consumers have a number of enduring images of themselves. These self images, or

„perception of self‟ is very closely associated with personality in that individuals tend to
buy the products and services, and patronise retailers, with the images or personalities
that closely corresponds their own self images.

The self image of consumer gives rise to the way they behave and habit of choosing the
product from one particular departmental store. As shown by various studies on
consumer‟s preferences, different consumer tend to have varied range of taste and
preferences on the basis of which they tend to set a different image of different

4
organisation. As a result, the word differentiation gives greater meaning in
understanding the consumer‟s behaviour.

Differentiation: - Differentiation factors are competitive advantage the firm is able to

exercise in a market in relation to its competitors. This strategy creates the value for
which the consumers are willing to pay. Successful differentiation strategies have the
characters like-the strategy must add value for the customers, the added value must be
communicated to the customers and perceived by customers and also be difficult to
copy.

There are many ways to differentiate by adding value. For example some thing can be
done much better that it can be done by the competitors or an extra product feature or
services can be included, value can be added to any aspect of the business. Such as:

 Ingredients or components

 Product offering

 Combining products

 Added services

 Breadth of the product line

 Service backup

 Channel design

Similarly many other findings has also shown that when the issue of differentiation is
talked the term positioning come with its package. That is to say differentiation helps in
understanding the firms

Positioning.

Positioning: - Positioning refers to the strategic decisions and actions to create and
maintain the firms product or services concept in customer‟s mind. In positioning, the
firm selects some of the key differentiation factors on which it has competitive
advantage and establishes the image so that customers view the product or services as
different. In positioning, the projected image is crucial and what the firm does to mind of
the customers is more important than what firm does to the product.

5
1.5.2 National Review
Departmental store image has been shown to play an important role in store patronage
and it is widely accepted the psychological factors have a significant role in store image
formation past research has often involved the measurement of tangible attributes,
or links between store images and consumers‟ self -images. This study was undertaken
to move to the next stage by exploring the link between perceived store image and the
personal values which underlie behavioural choices. Fashion retailing was selected as an
appropriate research domain because of the well-established associations between
clothing choice, personality, self concept, and personal values. Means-end theory and
laddering methodology were employed in interviews with 30 female respondents. The
hedonic values of “enjoyment and happiness” and “quality of life” were found to be the
terminal values most sought by consumers in association with store image. These were
linked through the consequence “nice feeling” to the tangible attributes of “pr amice”,
“quality” and “reputation”. The study illustrates an application of means-end
methodology in a retail environment, and the results provide a platform for fashion store
image and positioning strategies. Suggestions for further research are made customer.

 Customer’s Preference towards Organized Departmental Stores:

Studying various literatures this review shows that the presence of organized retail
stores in the market shift the preferences of customers to various organized retail
formats. The demographic profile of the customers, family attributes and income profile
of the customer play a major role in the selection of various retail formats for product
purchase. It has been observed that due to the changing demographics, urbanization and
awareness through electronic media especially internet the customers have multiple
options to choose retail outlets. Majority of the customers are visiting organized retail
for product variety, easy availability, cleanliness with various additional facility like
entertainment for children and convenient parking facility and restaurant etc. Researcher
also analysed that the quality of the service is very much important for building
relationship with the customers. Some of the major factors identified for ascertaining
service quality are price, brand name, store name, promotional tools etc. Some
researchers categorized these factors as physical aspects, reliability, problem solving,
retail policies and personal contacts. Some others named them as tangibles, reliability,
responsiveness, assurance and empathy. It is also found that customer expectations,
perceptions should be closely related with quality of services offered by the retailers.

6
  Factors behind Consumer Attractiveness
After studying various literatures some of the factor has been found that customers are
more attracted towards organized formats. First factor is Brand name because the
customers have the more attraction toward Brand name. Brand Name of product or
company is a status symbol which creates positive image of the product and loyalty in
customer mind as well as in the society. Second factor is the reputation of retailer„s as it
is specific when it applies to a variety of products carried within the store. The
reputation of product is measured by product quality, quantity, inbuilt features and
further purchase from the customer point of view. Another factor is the Price because
various retail store formats arrange, discount offers, lottery, free samples, gift voucher,
buy one get one free, etc. Maximum middle class customers are price conscious and
have limited budget for the purchase. Promotional tools also act as driving factor in
favour of these new formats. The author personally experienced in Bhopal city where
DB mall, C21 mall, Reliance fresh-Mart, Visual Mega mart etc. arrange attractive
promotional activities using print and electronic media to attract toward purchase from
organized retail stores. They also sometimes do celebrity endorsement and organize
events, live shows in these shopping complexes.
 Departmental Stores Management:
Departmental Stores Management is management of material, money, men, and
information within and across the Departmental Stores to maximize customer
satisfaction and to get an edge over competitors.
 Evolution Departmental Stores
In the 1950s and 1960s, most manufacturers emphasized mass production to minimize
unit production cost as the primary operations strategy, with little product or process
flexibility. In the 1970s, material requirements planning (MRP) was developed and
managers realized the impact of huge WIP inventories on manufacturing cost, quality,
product development, and delivery lead-time. The intense global competition of the
1980s forced world-class organizations to offer low-cost, high-quality, and reliable
products with greater design flexibility.
Manufacturers utilized Just-In-Time (JIT) and other management programs to
improve manufacturing efficiency and cycle time. The evolution of Departmental Stores
continued into the 1990s as organizations further extended best practices in managing
corporate resources to include strategic suppliers and the logistics function. Many

7
manufacturers and retailers are embracing the concept of Departmental Stores to
improve efficiency and effectiveness across the Departmental Stores chain.
 Departmental Stores Chain Management - Issues and Challenges
Successful implementation of Departmental Stores is seen as closely dependent upon
the need for breaking down barriers not only between internal departments and business
processes, but also across companies within the whole Departmental Stores chain
(Vollman et al., 1997). Its success is also associated with the challenging development of
a new culture based on empowerment and on-going and shared learning and continuous
improvement. Another challenging and difficult feature of Departmental Stores is linked
with the emergence of the network organization, which can lead to a complex web of
linkages to be coordinated and managed. This can imply difficulties which include lack
of common purpose, multiple and hidden goals, power imbalances, culture and
procedures, conflict over autonomy and accountability, over-dependence and a
continuing lack of openness and opportunistic behavior (Cox and Townsend, 1998).
 Logistics management:
Many years practitioners and professionals were confused between “logistics" and
“supply chain management", the usage of each term varied according to the industry.
Lummus et al. (2001) examined the historical definitions of both terms, and proposed a
hierarchy for the relationship between logistics and supply chain management.
Srivastava and Srivastava (2006); Meade and Sarkis (2002) presented a framework to
manage product returns in reverse logistics by focusing on product ownership data,
average life cycle of products, past sales, forecasted demand and likely impact of
environmental policy measures .It is observed that reverse logistics is one of the
toughest supply chain challenges. Once the product has been manufactured it is very
important that there should be an adequate structure to distribute it to the customers.
Neves et al. (2001); Ma and Davidrajuh (2005) proposed distribution channels planning
model. Authors explored the use of an iterative approach for designing distribution chain
in an agile virtual environment; and proved that quick adaptation to changing market
situation and automation of supply chain management processes are essential.

1.6 Research Methods

Research methodology includes the act of methods used in the research work. it is the
way to solve systematically the research problem for the achievement of basic objectives
and goals of the research.

8
1.6.1 Research Design
This study followed a descriptive research design Research design is a blueprint of a
scientific study. It includes research methodologies, tools, and techniques to conduct the
research. It helps to identify and address the problem that may rise during the process of
research and analysis.

1.6.2 Types of Data

Data collected can be classified into two main categories:

 Primary data

 Secondary data

The data i have used for may study are both primary and secondary. The primary source
of my data is questionnaire methods. I asked some questions to the consumers coming to
the departmental stores about advertisement and their influences on buying behaviour.
the Secondary source of my data is internet. Though the internet. I gather lots of
information which helped me to prepare this proposal.

1.6.3 Population, Sample size and Sampling Process

This study took all the consumers of Kathmandu Valley as the population and took the
sample of around 100 related customers representing the whole population. The sample
was selected using a simple random sampling method.

1.6.4 Data Collection Tools and Techniques

Researcher used the questionnaire to collect data and get information. Researcher
prepared the questionnaire and fill up the questionnaire. Researcher tries to shows tables
and figures to shows the data in attractive view.

1.6.5 Data Analysis

This data, which we used in this study, was the primary data. To collect the required
data, we used personal interview and self studied questionnaire.

Since the concerned study was descriptive one, the collected data were analysed using
the descriptive statistics like mean, median, standard deviation, etc.

The Collected data was checked, reviewed and organized for accuracy and
completeness. After that data was coded and entered in Microsoft Excel. Descriptive
statistics were used to calculate frequency and percentage. the findings of study were

9
presented in tables and figure.

1.7 Limitation of the Study

Every study has some limitation in every aspect. Some of the limitation presented in this
research was as follows:

 First of all, since the research was conducted after viewing the consumer‟s
behaviour in all departmental stores, the research findings had became unlimited
and vague.

 The study was based only on small size of population taken only from
Kathmandu city.

 Very simple sampling procedure was used for presenting the data and analysing.

 The study deals only with the customer‟s preferences of departmental stores. So,
the overall performances cannot be studied.

10
 CHAPTER – II

PRESENTATION AND ANALYSIS OF DATA

2.1. Data of Presentation

Data presentation and analysis are the most crucial factor that has to be done properly in
the course of report writing. The main purpose of this chapter is to present the data in a
systematic manner and analyse them to meet the objectives of the report. This chapter
presents the data regarding the views, taste and preferences of customer towards
departmental stores into tables and figures in order to show the data clear, comparative
and attractive. This survey was based on the random selection of respondents.

2.1.1 Preferred Departmental Store

A departmental store is large scale retail shop where a larger variety of goods are sold in
a single building the entire building is divided into a number of departments or counters.
In each departmental specific type of goods like stationery items books electronic goods
garments jewellery etc are available. All these departments are centrally controlled under
one management. Once you enter such a store you can do al shopping in one store ,
these stores also provide facilities like restaurant telephone toilets ATM etc.

Numerous departmental stores are found in Kathmandu Valley. Among them Binayak,
Sale Ways and Munal Stores are eminent for grocery items. As a matter of fact, they
were kept as the major options with others alternative representing the remaining
departmental store located in Kathmandu City beside the prior three. A survey was
carried out as a means to identify the most preferred departmental store of Kathmandu
City.

All the information collected from the sample respondents is analysed and the
results presented at the end of this chapter. The data analysis are related to the customer
need in a departmental store, various factors influencing their purchase and their opinion
regarding the products price, quality and etc, and after sales services rendered by the
departmental store .

11
Table 2.1:

Most Preferred Departmental Store

Preferred Departmental Store

Name of Store Respondents Percentage

Binayak 66 66.00%

Sale Ways 23 23.00%

Munal Stores 6 6.00%

Others 5 5.00%

Total 100 100.00%

Preferred Departmental Store

70

60

50
Consumers (%)

40
Consumers
30

20

10

0
Binayak Sale Ways Munal Stores Others
Departmental Stores

Sources: Table No.2.1

Figure 2.1:
Most Preferred Departmental Store
The above table and figure shows that most of the consumer prefers to visit Binayak
over Sale Ways, Munal Stores and other departmental Stores situated in Kathmandu
Valley. Among the 100 randomly selected consumers, 66% likes to visit Binayak, 23%
goes to Sale Ways, 6% selected Munal Stores and the remaining 5% are visitors of other
departmental stores like Yes N Yes, Deurali, Kazi N Kazi etc. The study put Saleways in
second position and Munal Stores in third in case of popularity.

12
2.1.2 Reason for Choosing the Definite Store
Different people have different perception towards certain things. And departmental
Store also falls under this so called „certain things' category. Consumer prefer particular
store for some particular reason. Each and every act has a distinct reason in this world.
However, in case of this report, four reasons are placed as options for the respondents.
They are Convenience, Sufficient Parking, Availability of Almost Items, and Reasonable
Price and Quality. The others option was also billeted as an option so that consumers can
express their views beside the given ones as well.

Table 2.2:
Reason for Choosing the Definite Store

Reason for Choosing The Definite Store

Reason Respondents Percentage

Convenience 20 20.00%

Sufficient Parking 0 0

Availability of Almost Items 40 40.00%

Reasonable Price and Quality 40 40.00%

Others 0 0

Total 100 100.00%

13
 Reason for Choosing the Definite Store

45
40
35
consumers (%)

30
25
Consumers
20
15 Consumers (%)

10
5
0
Convenience Sufficient Availability of Reasonable Others
Parking Almost Items Price and
Quality
Reason

Sources: Table No. 2.2

Figure 2.2:
Reason for Choosing the Definite Store
Above drawn table and diagram demonstrates that the availability of almost items, and
reasonable price and quality are the main two reason consumer think of while opting for
particular departmental store. 80% of the total sample taken gave these two reasons for
selecting the definite store, gaining equal percentage both, while remaining 20%
nominated convenience as their reason for visiting specific store. Consumer here does
not consider sufficient parking area as a basis for their behaviour. The consumers of
Kathmandu Valley revolve around these three reasons.

2.1.3 Quality of The Product

Departmental stores have mushroomed all over Kathmandu Valley. With the increasing
number, has the stores been able to maintain the quality label its customers are yearning
for, will always be an unresolved problem as quality being a vague term. To understand
the label of quality maintained by the departmental stores, a ranking method was used
for the sentence, “The store is able to maintain the quality label.

14
Table 2.3:

Customer attitude toward Quality

Quality Label Maintained

Rank Respondents Percentage

Strongly Agree 15 15.00%

Agree 50 50.00%

Neutral 28 28.00%

Disagree 7 7.00%

Strongly Disagree 0 0

Total 100 100.00%

Customer attitude toward Quality

60

50
Consumers (%)
40

30 Consumers

20

10

0
Strongly Agree Neutral Disagree Strongly
Agree Disagree
Rank

Figure 2.3:
Customer attitude toward Quality

Out of the total sample, only 15% respondents strongly agree that the store they choose
is able to maintain the quality label. 50% agree while 28% have neutral thoughts on the
topic. On the other hand, remaining 7% disagree believing that to some extent the store

15
they selected is not capable of providing them the quality they are longing for. Not a
single respondent pointed out the strongly disagree term.

2.1.4 Pricing of the Items

Departmental Stores are renowned for supplying qualitative products at reasonable price
to its customers. They are supposed to propagate standard price in them.

Table 2.4:
Pricing of the Items

Pricing of the Items

Price Respondents Percentage

Reasonable 37 37.00%

Comparatively Need Changing 18 18.00%

Satisfactory 38 38.00%

Not Reasonable 7 7.00%

Total 100 100.00%

Pricing of the Items

40

35

30
Consumers (%)

25

20 Consumers

15

10

0
Reasonable Comparatively Satisfactory Not Reasonable
Need Changing
Price

Sources: Table No.2.4

Figure 4.4:
Pricing of the Items

16
From the table and figures, it can be observed that 37% consumers believe that the store
they visit provides product at reasonable price. Out of the total sample, 18% are of the
view that the prices of the items need comparative change whereas 38% contemplated
the pricing of the items in the departmental stores as satisfactory. And the remaining
portion that is 7% consumers feels that the pricing is not reasonable.

2.1.5 Arrangement of the Items in the Shelves

Most people are inclined towards departmental stores over retail store due to the
availability of wide range of products under one roof. These products should be arranged
in a proper manner for the convenience of consumers.

Table 2.5:
Arrangement of the Items in the Shelves
Arrangement of the Items in the Shelves

Arrangement Respondents Percentage

In a Good Order 48 48.00%

Sometimes Take More Time to Find a Item 41 41.00%

Items are Mismatched 6 6.00%

In a Difficult Way 5 5.00%

Total 100 100.00%

Arrangement of the Items

60

50
Consumers (%)

40

30 Consumers

20

10

0
In a Good Order Sometimes Items are In a Difficult
Take More Time Mismatched Way
to Find a Item
Arrangement

Sources: Table No.2.5

17
Figure 2.5:
Arrangement of the Items in the Shelves
Among the 100 randomly selected consumers, 48% are of the opinion that the store they
visit has arranged the items in a good order. On the contrary, 41% feels that sometimes it
takes more time to find a specific item, 6% have a hunch of items being mismatched and
5% viewed that the items are not properly arranged in the shelves.

2.1.6 Employees Behaviour

Courteous manner of employees always leave positive impact on customers whereas
unprofessional deportments hampers the image of the departmental stores. Employee‟s
behavior plays significant role in gaining and retaining customers.

Table 2.6:
Employees Behaviour towards Consumers
Employees Behavior

Behavior Respondents Percentage

Always are Positive to the Buyers 48 48.00%

Sometimes are Rude 28 28.00%

Are not Attentive as Required 23 23.00%

Never 1 1.00%

Total 100 100.00%

Employees Behavior

60

50
Consumer (%)

40

30 Consumer

20

10

0
Always are Sometimes are Are not Attentive Never
Positive to the Rude as Required
Buyers
Behavior

Sources: Table No. 2.6

18
Figure 2.6:
Employees Behaviour towards Consumers
Aforementioned table and figure reveals that 48% of the total respondents always
experienced affirmative response from the side of employees working in departmental
store. Despite the optimistic viewpoint from nearly half of the respondents, about 28%
respondents found that sometimes the employees are rude towards the consumers.
Likewise, 23% felt that the employees are not attentive as required in the store they
prefer to shop and last but not the least, 1% of consumer encountered that the employees
employed in departmental stores they often visit are never cooperative and sincere to
their duty.

2.1.7 Location
Many of the prominent departmental stores are located in Thanachok and Danda Pool.
For example, Binayak and Munal Stores lie in Thanachok and Saleways in Danda Pool.
Both of these areas are mostly crowded and well known for shopping. When it comes to
departmental store, environment or let us say location does matter for consumers. So, a
question was asked to the respondents whether they were satisfied with the location of
the departmental store it is situated at present or not. Four options were available for the
consumers as their response. They were Its Ok, Satisfactory, Noisy Area, and Difficult in
Entry and Exit.

Table 2.7:
Level of Satisfaction in case of Location
Satisfied with Location

Location Respondents Percentage

It's Ok 54 54.00%

Satisfactory 29 29.00%

Noisy Area 13 13.00%

Difficult in Entry And Exit 4 4.00%

Total 100 100.00%

Sources: Binayak Departmental Stores Kathmandu

19
 Satisfaction level for Location

60

50
Consumer (%)

40

30 Consumer

20

10

0
Its Ok Satisfactory Noisy Area Difficult in Entry
And Exit
Level of Satisfaction

Sources: Table No. 2.7

Figure 2.7:

Level of Satisfaction in case of Location

Out of the 100 sample selected, more than half that is 54% consumers reported 'Its Ok'
regarding the current location of the departmental store. Correspondingly, 29% are
satisfied whereas 13% respondent feels that the prevalent location is noisy and
remaining 4% consumers seems to have difficulty in entry and exit.

2.1.8 Interior Design

Properly managed and technically driven layout can gain good consumer impression
which can be enhanced more through attractive interior design.

Table 2.8:
Interior Design of the Store
Interior Design Of the Store

Design Respondents Percentage

Very Attractive 26 26.00%

Satisfactory 53 53.00%

Not So Fine 8 8.00%

Need Some Improvement 13 13.00%

20
Total 100 100.00%

Interior Design of the Store

60

50
Consumer (%)

40

30 Consumer

20

10
S
0
Very Attractive Satisfactory Not So Fine Need Some
Improvement
Design

Sources: Table No 2.8

Figure 2.8:

Interior Design of the Store

Preceding table and figure shows that only 28% of the consumers have the impression
that the interior design of the store they visit is very attractive while 53% showed
satisfactory response. In spite of that, 8% respondent pinpointed 'Not So Fine' option and
13% feels that the store needs some improvement concerning the layout.

2.1.9 Up-to-date or Fashionable Items

The pace of modern life is characterized by fashionable items. People opt for
departmental store to quench their thirst of trendy items. Similarly, the needs and wants
of people differ with the season, festivals and occasions.

Table 2.9:

Up-to-date or Fashionable Items

Up-to-date or Fashionable Items

Rank Respondents Percentage

Yes 29 29.00%

Its OK 47 47.00%

Sometimes Not 22 22.00%

21
Never 2 2.00%

Total 100 100.00%

Up to date/Fashionable Items

50
45
40
35
Consumer (%)

30
25 Consumer
20
15
10
5
0
Yes Its OK Sometimes Not Never
Rank

Sources: Table No.2.9

Figure 4.9:
Up-to-date or Fashionable Items

The above stated table and figure express the views of respondents towards the query,
“Is the Items in the store fashionable or up-to-date as per the needs of the consumer?”
Four options were available in the hands of consumers. They were Yes, Its Ok
Sometimes Not and Never. Out of the 100 respondents, 29% said Yes, 47% responded
Its Ok and 22% thinks that sometimes the items are not up-to-date. Only 1% of the
consumer feels that the items available in the store are never trendy and up-to-date.

2.1.10 Availability of Items

One of the dominant features of successfully running departmental store is its capability
to dispense a wide range of products to its consumer. An ample supply of consumer
goods will definitely increase the goodwill of the departmental store. In connection with
availability of items in the store, a question was asked to the respondents. As responses
of consumer four options were available which included Always, Sometimes it Lacks
Important Items, Unnecessary Items are Available in Name of Variety and Never.

22
Table 2.10:
Availability of Items
Availability of Items

Availability Respondents Percentage

Always 22 22.00%

Sometimes it Lacks Important Items 71 71.00%

Unnecessary Items are Available in Name of 3 3.00%

Variety

Never 4 4.00%

Total 100 100.00%

Availability of Items

80
70
60
Consumer (%)

50
40 Consumer
30
20
10
0
Always Sometimes it Unnecessary Never
Lacks Important Items are
Items Available in
Name of Variety
Availability

Sources: Table No> 2.10

Figure 2.10:

Availability of Items

From the table and figures drawn above, it can be depicted that most of the departmental
stores situated in Kathmandu Valley sometimes lacks important items. 71% of the
selected respondents feel that way. However, 22% feels just the opposite. They are of the
opinion that the store is always equip with almost all items they need. Some even thinks
that the store keeps unnecessary items in the name of variety. 3% consumer's thinks so

23
while remaining 4% respondents are of the view that the store they visit frequently is
never equip with items they require.

2.3 Major Finding

The assignment work report has been prepared per the format prescribed by the subject
lecture and entitled “Consumer's Preferences Toward Departmental Stores of
Kathmandu” this report has been device into three chapters. Introduction, related literate
review, Research method, summary and conclusion. This main chapter contains various
subjects. The main part of report is presentation and Analysis of data,

 in Kathmandu Valley. Among the 100 randomly selected consumers, 66% likes
to visit Binayak, 23% goes to Sale Ways, 6% selected Munal Stores and the
remaining 5% are visitors of other departmental stores.
 80% of the total sample taken gave these two reasons for selecting the definite
store, gaining equal percentage both, while remaining 20% nominated
convenience as their reason for visiting specific store.
 15% respondents strongly agree that the store they choose is able to maintain the
quality label. 50% agree while 28% have neutral thoughts on the topic. On the
other hand, remaining 7% disagree.
 37% consumers believe product at reasonable price, 18% are of the view that the
prices of the items need comparative change whereas 38% contemplated the
pricing of the items in the departmental stores as satisfactory. And 7%
consumers feels that the pricing is not reasonable.
 48% are of the opinion has arranged the items in a good order, 41% feels that
sometimes it takes more time to find a specific item, 6% have a hunch of items
being mismatched and 5% viewed that the items are not properly arranged in the
shelves.
 54% consumers reported Its Ok' regarding the current location , 29% are satisfied
whereas 13% respondent feels that the prevalent location is noisy and remaining
4% consumers seems to have difficulty in entry and exit.
 only 28% of the consumers have the impression that the interior design, 53%
showed satisfactory response, 8% respondent pinpointed 'Not So Fine and 13%
feels that the store needs some improvement concerning the layout.

24
 29% said Yes, 47% responded Its Ok and 22% thinks that sometimes the items
are not up-to-date. Only 1% of the consumer feels that the items available in the
store are never trendy and up-to-date.
 71% of the selected respondents feel that way. However, 22% feels just the
opposite. They are of the opinion that the store is always equip with almost all
items they need. Some even thinks that the store keeps unnecessary items in the
name of variety. 3% consumer's thinks so while remaining 4% respondents are
of the view that the store they visit frequently is never equip with items they
require.

25
 CHAPTER-III

SUMMARY, CONCLUSION AND RECOMMENDATIONS

3.1 Summary
Based on the data analysis and presentation, the following are the major findings that
can be observed through this report.

.1. With 66% consumers opine that Binayak is the most preferred departmental store
in Kathmandu Area.

.2. People mainly prefer to visit the definite store because of availability of almost
items, and reasonable price and quality as well.

.3. Out of the 100 respondents, half of them agree that the departmental stores are
able to maintain the quality label.

.4. Despite of the popularity, consumers still have mixed feelings towards the
pricing of the items. Some finds it reasonable while some thinks it needs
comparative changes.

.5. Majority of the respondents are of the view that most of the departmental stores
have arranged the items in a proper manner.

.6. More than half of the consumers, around 51% have found that the employees of
departmental stores are sometimes rude and are not attentive as required.

.7. Regarding the location of the stores, 83% of the respondents are satisfied while
13% finds the area a bit noisy.

.8. Only 26% of the total sample feels that the interior layout of the store is very
attractive. And 53% of them feel satisfactory whereas remaining feels that it
need some improvement.

.9. About the up-to-datedness of the items in the stores, 76% were optimistic while
24% were pessimistic.

.10. Lastly, 71% of the 100 respondents are of the opinion that the stores sometimes
lack important items.

3.2 Conclusions
It has long been known that on average, a dissatisfied customer will tell 10-16 others,

26
but people who have had an unexpectedly good experience also recount their stories. So,
it is always important to ensure that the customer is fully satisfied. No company can
prosper without the support of its valued customer.

To some extent, all the departmental stores situated in Kathmandu City have been
successful in captivating people's attention. The following two features are their main
highlights:

 Availability of almost items

 Reasonable price and quality

Another reason why people pay frequent visit to the store is that many of them believes
the store is able to maintain the quality consumer generally opts for. People have
different concepts of what makes a departmental store a complete shopping package.
The bar gets set higher and higher as days passes. Convenient location, an attractive
interior design, items updated to fashion, sincere and cooperative employees are must
when it comes to setting a different image of the store in the eyes of consumers.

Today, consumers' expectations are higher than ever. It has become quite difficult for the
stores to fulfil all the wants and desires of its customer. As a result, 71% of the total
samples are of the opinion that sometimes it lacks important items. Regardless of the
pessimistic viewpoint from the side of consumers, the popularity of departmental stores
is still climbing peaks. This on other hand gave more emphasis to competition. Binayak,
Sale Ways, and Munal Stores are the prominent figures in Kathmandu Area. There lies a
tough competition among them. The study revealed the fact that with 66% votes,
Binayak is the consumer‟s most preferred departmental store. Second position is
captured by Sale Ways and third by Munal Stores.

To conclude, the survey shows that to a degree, the departmental stores of Kathmandu
Area have successfully grabbed people's attention, aroused their interest, triggered their
desire and motivated them to take action.

3.3 Recommendations
On the basis of analysis done on the departmental stores and consumer preferences
towards it, the following recommendations are made:

27
 Departmental stores are supposed to maintain a standard pricing system which is
not found among the stores located in Kathmandu Area. All the stores should
adopt the philosophy of standard price in order to create healthy competition.

 They should establish branches if possible, in potential places and expand their
services. This will help them attract new consumers.

 All the items in the store should be categorised in accordance to their features
and assign a specific department with a tag naming their types. This will make
the consumers easy to find items in the store.

 One of the major problems currently faced by all Kathmandu lies is congested
parking spaces. Availability of parking lots in departmental stores will definitely
gain attention of more consumers.

 If possible, one should also try to incorporate additional attributes like

restaurants, game parlours etc in order to upgrade its services.

 The departmental stores should conduct their own surveys and get feedback on
what consumer like and don't like, and take corrective action as required.

 They should ensure that employees understand the importance of their front-line
role and get good training and supervision.

28
 Bibliography

Wolf, H.K., & Pant, P.R. (1975). Social Science Research and Thesis Writing. Kathmandu:
Buddha Academic.
Pant, P.R. (1998). Field Work Assignment and Report Writing. Kathmandu: Veena
Academic.

Amin, M., (2008), “Retailing in India: Assessing the Investment Climate”, India Economy
Review, 6: pp.188- 197.
Bhardwaj, R.K. and Makkar, U. (2007), “Retail RevolutionEmerging Challenges and

Issues”, Journal of IMS Group, 4(2): pp.9-12.

Ghosh, P., (2010), “Customer Expectations of Store Attributes: A Study of Organized

Retail Outlets in India”, Journal of Retail & Leisure Property, 9(1): pp.75-87.

Gupta, M., (2004), “Brand Position of General Store From Consumer‟s Perspective- A

comparative Study on Departmental Store and Traditional Shop”, Proceedings of

Conference on IPR , Thapar University, Patiala, March 25- 26, 2004.

Jain, R. and Bagdare, S., (2009), “Determinants of Customer Experience in New Format

Retail Stores”, Journal of Marketing & Communication, 5(2): pp.34-44.

Kaur, P. and Singh, R., (2007), “Uncovering Retail Shopping Motives of Indian Youth”,

Young Consumers, 8(2): pp.128-138.

Mishra, S., (2008), “New Retail Models in India: Strategic Perspective Analysis”, Journal

of Marketing & Communication, 4(2): pp.39-47.

Srivastava, R.K., (2008), “Changing Retail Scene in India”, International Journal of Retail

and Distribution Management, 36(9): pp.714-721

Hussain (2015) (Vollman et al., 1997). (Cox and Townsend, 1998).

Lummus et al. (2001) Srivastava and Srivastava (2006); Sarkis (2002)

Neves et al. (2001); Ma and Davidrajuh (2005)

29
 Appendices

1) Which departmental stores do you prefer most for grocery items?

 Binayak
 Sale ways
 Munal stores
 Others (if specify)...............

2) Why do you prefer the definite store?

 convenience
 Sufficient parking
 Availability of almost items
 Reasonable price and quality
 Others (if specify)…………

3) The store is able to maintain the quality label.

Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree

4) How do you find the pricing of the items?

a) Reasonable
b) Comparatibly Need Change
c) Satisfactory
d) Not Reasonable

30
5) How is the arrangement of the items in the shelves?
 In a good order
 Sometimes take more time to find a item
 Items are mismatched
 In a difficult way

6) Are the employees cooperate and sincere to their duty?

a) Always are positive to the buyers
b) Sometimes are rude
c) Are not attentive as required
d) Never

7) Are you satisfied with the location it is situated at present?

 Its ok
 Satisfactory
 Noisy area
 Difficult in entry and exit

8) How do you feel the interior design of the store?

 Very attractive
 Satisfactory
 Not so fine
 Need some improvement

9) Is the items up-to-date or fashionable?

a) Yes
b) Its ok
c) Sometimes not
d) Never
31
10) Do you find all types of product available in the store?
a) Always
b) Sometimes it lacks important items
c) Unnecessary items are available in name of variety
d) Never

Thank You!

32