Project Report

Factors influencing consumers buying behavior of
Smartphone’s in Nepalgunj
Project Work
Submitted to:
BBA Program in Management
Office of the Dean, Faculty of Management Studies
Pokhara University
Submitted by:
Roll No:
Registration No:
In partial fulfillment of the requirements for the BBA

Bachelor in Management
Uniglobe College
Kathmandu, Nepal
September, 2017
Acknowledgements
The study entitled “Factors influencing consumers buying behavior of

smartphones in Kathmandu Nepal” has been conducted to satisfy the partial
requirement for the degree of Bachelors of Business Administration (BBA) of
Pokhara University.
First of all, I would like to thank my respected supervisor Mr. Bijay Pandey for his
valuable time, continuous guidance and inspiration throughout the entire period of the
study. Similarly, I would like to express my sincere gratitude to Academic Director of
Uniglobe College, Prof. Dr. Radhe Shyam Pradhan for his timely suggestions and
support.
I would like to thank all the faculty members and staffs of Uniglobe College for the
support they gave during the completion of my project work.
Similarly, I would like to acknowledge all the respondents for their support,
cooperation, encouragement during the time of preparing this project work.
Finally, I would like to thank my family for the affection and emotional support which
they gave during the preparation of this project work.
Puspa Bhatt
September, 2017
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Declaration
This Project Report entitled “Factors influencing consumers buying behavior of

Smartphone’s in Nepalgunj” is submitted by me in partial fulfillment of the
requirement for the award of BBA degree of Pokhara University, comprises only my
original work and due acknowledgement have been made to materials used in the
report.
……………………..
Keshab Raj Pandey
2
Bonafide Certificate
Certified that this project report
Factors influencing consumers buying behavior of smartphones in Kathmandu

Nepal
is the bonfire work of
Puspa Bhatt
who carried out the project work under my supervision. This report is forwarded for
examination.
…………………… ………………………….
Mr. Bijay Pandey Prof. Dr. Radhe Shyam Pradhan
Supervisor Academic Director
……………………. …………………………..
Dr. Nar Bahadur Bista
External Examiner Principal
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Table of Contents
Acknowledgements.........................................................................................................i
Declaration......................................................................................................................i
Bonafide Certificate........................................................................................................i
Table of Contents............................................................................................................i
List of Tables...................................................................................................................i
Lists of Figure.................................................................................................................i
Executive Summary........................................................................................................i
List of Abbreviations.......................................................................................................i
Chapter I.........................................................................................................................1
Introduction....................................................................................................................1
1.1 General background..................................................................................................1
1.2 Statement of the problem..........................................................................................1
1.3 Objectives of the study..............................................................................................1
1.4 Significance of the study...........................................................................................1
1.5 Literature review.......................................................................................................1
1.5.1 Review of major literature.............................................................................1
1.5.2 Review of recent literature.............................................................................1
1.5.3 Review of Nepalese literature........................................................................1
1.6 Conceptual framework..............................................................................................1
1.7 Research methodology..............................................................................................1
1.7.1 Research plan and design...............................................................................1
1.7.2 Population and sample...................................................................................1
1.7.3 Sampling procedure.......................................................................................1
1.7.4 Data gathering procedure...............................................................................1
1.7.5 Models and variables.....................................................................................1
1.8 Limitations of the study............................................................................................1
1.9 Organization of the study..........................................................................................1
Chapter II.......................................................................................................................1
Results and Discussion...................................................................................................1
2.1 Presentation and analysis of primary data................................................................1
2.1.1 Respondents’ profile......................................................................................1
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2.1.2 Descriptive analysis of customers’ buying behavior perceived value towards
smartphones on the level of price, brand image, product feature, social influence
and after sales service in Kathmandu, Nepal..........................................................1
2.2 Correlation analysis..................................................................................................1
2.3 Regression analysis...................................................................................................1
2.4 Major findings...........................................................................................................1
Chapter III......................................................................................................................1
Summary and Conclusion..............................................................................................1
3.1 Summary...................................................................................................................1
3.2 Conclusion................................................................................................................1
3.3 Recommendation......................................................................................................1
3.4 Scope for future research..........................................................................................1
References......................................................................................................................1
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List of Tables
Table 1.1: Review of major literature

Table 1.2: Recent literature review
Table 1.3: literature of Nepalese review
Table 2.1: Demographic characteristics of the respondents
Table 2.2: Respondents’ response regarding price of smartphones
Table 2.3: Respondents’ response regarding brand image of smartphone
Table 2.4: Respondents’ response regarding product feature of smartphone.
Table 2.5: Respondents’ response regarding social influence
Table 2.6: Respondents’ response regarding after sales service of smartphone.
Table 2.7: respondents’ response regarding the buying behavior towards smartphone
Table 2.8: Kendall’s correlation matrix for the dependent and independent variables
for smartphone
Table 2.9: Estimated regression results of P, BI, PF, SI and AS on consumers buying
behavior
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Lists of Figure
Figure 1.1: Schematic diagram on consumers buying behavior towards smartphones

in Nepalgunj
Figure 2.1: Classification of respondents by gender
Figure 2.2: Classification of respondents by age
Figure 2.3: Classification of respondents by qualification
Figure 2.4: Occupation of the respondents
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Executive Summary
In this modern era, a smartphone is just not only the want but also a need if you know
how to make proper use of it. Smartphone have changed the ways that we used to live,
communicate and connect with people all over the world. Consumer buying
behavior is the sum total of a consumer's attitudes, preferences, intentions, and
decisions regarding the consumer's behavior in the marketplace when purchasing a
product or service. The consumer behavior or buyer behavior is influenced by several
factors or forces like price, brand image, product features, social influence, after sales
services etc. Moreover,consumer buying behavior is the study of the ways of buying
and disposing of goods, services, ideas or experiences by the individuals, groups and
organizations in order to satisfy their needs and wants.
The major objective of the study is to identify factors influencing consumers buying
behavior of smart phones in Nepalgunj, city. The specific objectives are i) To identify
nature of consumers buying behavior of smart phones. ii) To examine the relationship
between smart phones buying decision and price, social factors, brand name, product
feature & after sales service. iii) To determine the impact of price, social influence,
brand name, product feature and after sales on buying behavior of smart phones in
Kathmandu. iv) To identify the most significant factor influencing the buying
behavior of smart phones in Nepalgunj, city.
This study is based on primary source of data. This study has employed descriptive
research design and causal comparative research design to deal with issues associated
with the factors influencing consumers buying behavior of smartphones in Nepalgunj,
city.. In order to achieve the objectives questionnaire was made and distributed the
questionnaire through Google doc. The questions were asked in the form of strongly
agree, agree, neutral, disagree and strongly disagree as well as Likert scale questions.
A total of 119 questionnaires were distributed and out of which 111 responses were
collected.
The major conclusion of the study is that social influence plays the major role in
determining the consumer buying behavior.The study also concludes that better the
brand image and product feature, higher would be the consumers buying behavior of
smartphones.
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List of Abbreviations
Adj. R2 Adjusted R2
BBA Bachelor of Business Administration
BB Buying Behavior
et al. and others
i.e. that is
P Price
BI Brand image
PF Product feature
SI Social influence
AS After sales service
SEE Standard Error of Estimate
SPSS Statistical Package for Social Science
Std. dev. Standard deviation
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Chapter I
Introduction
1.1 General background
Consumer buyer behavior is considered to be an inseparable part of marketing and

Kotler and Keller (2011) state that consumer buying behavior is the study of the ways
of buying and disposing of goods, services, ideas or experiences by the individuals,
groups and organizations in order to satisfy their needs and wants.
According to Enis (1980), buyer behavior has been defined as a process, which
through inputs and their use through process and actions leads to satisfaction of needs
and wants. Consumer buying behavior has numerous factors as a part of it which are
believed to have some level of effect on the purchasing decisions of the
customers.Alternatively, consumer buying behaviorrefers to the buying behavior of
final consumers, both individuals and households, who buy goods and services for
personal consumption (Kumar, 2010).
According to Kahle and Close (2011), consumers’ behavior blends elements from
psychology, sociology, social anthropology, marketing and economies, especially
behavioral economies. It examines how emotions, attitudes and preferences affect
buying behavior.Characteristics of individual consumers
suchas demographics, personality lifestyles and behavioral variables such as usage
rates, usage occasion, loyalty, brand advocacy, willingness to provide referrals, in an
attempt to understand people's wants and consumption are all investigated in formal
studies of consumer behavior.
Solomon et al.(2012) reveals that companies are more concerned on individual

consumer behavior. It helps them to yield information about how the consumers think,
feel and choose their products. Every individual is consumer. Consumer behavior is
the study of the processes involved when individual or groups select, purchase, use, or
dispose of the product, service, ideas or experiences to satisfy needs and desires.
Smartphone is a mobile device which is more than merely make and receives phone
calls, text messages, and voice mail. The basic feature of a Smartphone is able to
access to the internet. It can also access digital media such as picture, music and
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videos. Also, smartphone needs to have the ability to make use of small computer
programs called applications or apps (Chang et al., 2009).
According to Cassavoy (2012), smartphone can be defined to be a device that enables

the user to make telephone call and at the same time has some features that allow the
user to do some activities that in the past was not possible unless using a computer or
a personal digital assistant (PDA), such as sending and receiving e-mails, amending
an office document. Nowadays brand plays a very vital role in consumer buying
decision. While consumers usually go for a familiar brand, but the concept of brand
transcend beyond a trademark or name. The concept of brand encompasses much
more than trademark.
Kotler and Armstrong (2008) revealed that, in today’s global markets in the evaluation
stage, the consumer ranks brands and forms purchase intentions. And they preferred to
buy high quality products and they look on the attitudes of others and unexpected
situational factors which based on expected income, expected price, and expected
product benefits.
Young et al.(2010) mentioned that, in order to purchase a particular goods or services,

customer must reach the purchasing decision to those goods or services but this
purchasing decision differ from one final consumer to another due to several factors
which affect purchasing decision such as price, attitude, advertisement, social
influences, fashion, education, family life cycle and income.
Convenience refers to a situation where works are simplified, easy and can be done
with less effort, without discomfort or difficulty. Convenience in smartphone may
refer to the ability to use the smartphone at anytime and anywhere, without having to
port the smartphone in a fixed workstation. It has significance and positive
relationship with consumers buying behavior (Ding et al., 2011).
Brand is the most valuable asset for a company, where it represents a product or
service means to consumers. Brands are more than just names and symbols. It is also
the element of relationship between company and customers (Kotler and Armstrong,
2010). The brand name has directly influenced customer’s perception toward the
quality of the offering. When customers are satisfied, they generate word of mouth
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and it will lead to others to be interested and choose the brand (Azad and Safaei,
2012).
Farrell & Saloner (1985) revealed that compatibility is an important issue which
influences consumer's perception and purchase intension especially when the product
of technical nature like Smart phone. Product compatibility is a unique outcome of
symmetric perfect and firm should decide whether to make their product compatible
before competing in prices.
In the context of Nepal, with technology playing a larger role in the lives of the
general people, smartphones are becoming increasingly popular in the Nepali market.
Their multi-function feature has made them more popular than traditional cell phones
which have limited use. Shrestha (2016) revealed that, an estimated 20 million people
use mobile sets in the country, and smartphones account for 60 percent of the
country’s cell phone market. The craze for the device has also been growing due to
the introduction of economical handsets in the market, said traders. From global
brands like Samsung, Apple and HTC to budget series like Micromax, Carbon,
Colors, Spice and Lava, all are doing brisk business in the market. For a country like
Nepal, it is much of a surprise that price is not an important factor when choosing
smartphone, especially by middle class family. Moreover, in the context of Nepal
there are many factors that influence the consumers buying behavior of smart phones
like price, brand name, product features, after sales service etc.
The above discussion shows that there are various factors influencing consumers
buying behavior of smart phone. Different types of studies are conducted in same
topic and researchers founded various factors affects consumers buying behavior of
smart phones. From above mentioned various national and international research
finding we can find out the factors like price, brand name, product feature, durability,
after sales service etc. factors influence consumers buying behavior.Hence, this study
focuses on relationship between various factors and consumers buying behavior
towards smart phones in Nepalgunj, city.
1.2 Statement of the problem
Due to the large entry of mobile phone companies, many smartphone brand has
introduced to the market in Nepal, namely Apple, Samsung, Sony, Lenovo, HTC,
Huawei, Asus, Nokia, Blackberry, Oppo, and Xiao MI etc.According to Blackwell et
3
al.(1982), consumer buying behavior is influenced by two major factors. These
factors are individual and environmental. The major categories of individual factors
affecting consumer behavior are demographics, consumer knowledge, perception,
learning, motivation, personality, beliefs, attitudes and life styles. The second category
of factors is environmental factors. Environmental factors represent those items
outside of the individual that affect individual consumer’s decision making process.
These factors include culture, social class, reference group, family and household. The
above mentioned factors are the major determinants behind the decision of consumers
to opt a given good or service. Kotler et al. (2008) revealed that cultural, social,
personal and psychological factors are the main characteristics that influence the
consumer behavior.
Consumers do marketing when they search for the goods they need at prices they can
afford. Price is the most important factor effecting demand, hence it has a significant
effect on consumer behavior (Achrol and Kotler, 1999). Price concern is one of the
determinants tested to find out the effects on demand of Smartphone (Chow, 2011).
Kotler (1994) revealed that consumer behavior is how people buy what they buy
when they buy and why they buy. It attempts to study the buyer decision
making process individually and in groups. It studies characteristics of individual
consumers such as demographics, psychographics and behavioral variables in order to
understand people’s needs. It also tries to assess the influence on the individual
orgroup, i.e, family, friends, reference group and society in general. In one family
different members have different choices and opinions for a single commodity. Hence
the consumer behavior within a family is different.
Lin and Wang (2006) found that brand image will positively influence on the purchase
intentions inpurchasing apparel products, brand image is crucial because it impacts
consumers’ preference and intentions to purchase. It also has direct impact on
consumers’ willingness to pay high price and recommend the particular brand to
others.
Social factors affect consumer behavior significantly. Every individual has someone
around influencing their buying decisions. The important social factors are: reference
groups, family, role and status (Perreau, 2014).
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Wright (2006) found that brand image and buying decision of consumers have
positive relationship. A product can have a strong brand image that corresponds with
consumers’ personality. When consumers are buying a product, they are also buying a
brand image. The image should be positive and unique. This brand image can be
combined with brand personality. The brand can have personality that corresponds to
a set of human traits (Aaker, 1997).
Pakola et al. (2003) stated that price is the most influencing factor in buying mobile
phone. Furthermore, it states that price was regarded as the most significant motives
affecting to purchase decision in current mobile phone model for consumers in
Finland. It was being noted in the analysis that price might have dominated the
decision making in the sample more than it does for the whole population, as the
average net income in the target groups was relatively low.
Karjaluoto et al. (2005) analyzed that price, brand, interface, and properties are the
important factors which is affecting the actual decision amongst mobile phone brands
while technical problems are the basic reason to change mobile phone.
Rahim et.al (2016) revealed that product features and brand name are considerably
and certainly related to purchase intention of smartphone. According to Mad Lazim
and Sasitharan (2015), multipurpose function of the smartphone such as multipurpose
applications, high speed processors are the influencing factors to consumer to buy a
smartphone
Though there are above mentioned empirical evidences in the context of other
countries and in Nepal, no such evidence using more recent date exists in the context
of Nepal. This study, therefore, deals with the following issues in the context of
factors affecting buying behavior of consumers towards smartphones in Nepalgunj,
city:
1. What is the pattern of consumers buying behavior of smartphones in

Nepalgunj?
2. Which age group mostly prefers to use smartphone?
3. What are the factors that influence consumers buying behavior?
4. Is there any relationship between price and consumers buying behavior
towards smartphone?
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5. To what extent brand image and product feature affects consumers buying
behavior?
6. Is there is any relationship between social influence and consumers
buying behavior?
7. Does social factor influence consumers buying behavior of smart phones?
1.3 Objectives of the study
behavior of smart phones in Nepalgunj. The specific objectives of this study are as
follows:
1. To identify nature of consumers buying behavior of smart phones.

2. To examine the relationship between smart phones buying decision and price,
social factors, durability, brand name, product feature & after sales service.
3. To determine the impact of price, social factors, social influence, brand name,
product feature and after sales on buying behavior of smart phones in
Nepalgunj.
4. To identify the most significant factor affecting the buying behavior of smart
phones in Nepalgunj?
1.4 Significance of the study
As the smartphone market is growing rapidly, an understanding of the consumer

behavior regarding the characteristics of consumers in influencing their buying
behavior is crucial. By understanding the consumer behavior of Smartphone
consumers, this study is very significant to a wide spectrum of many industries related
to the Smartphone to bring a real life changes in the marketing mix and marketing
strategy as per the characteristics of consumers to enhance their sales. Besides, this
research also helps to find out the factors influencing consumers’ behavior and most
significant factor which affect consumers buying pattern of smart phones in
Nepalgunj city .
1.5 Literature review
This chapter provide conceptual framework of the study and deals with review of
empirical studied. It is divided into three sections. First section consists of an in-depth
review of related studies in the context of both developed and emerging financial
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markets around the globe. Second section presets a conceptual framework. And,
finally the third section presents remarks or research gap on the conceptual and
empirical review.
This section presents the thorough review of literature on factor affecting employee
performance. The review of literature has been organized as under:
1.5.1 Review of major literature

1.5.2 Review of recent literature
1.5.3Review of Nepalese literature
1.5.1 Review of major literature
Table 1.1 shows the summary of major literature regarding the relationship between
different factors affecting consumers buying behavior of smart phones.
Table 1.1: Review of major literature

Study Major finding
Cronin and Taylor Service quality affects the purchase decision of consumers.
(1992)
Olive and Kleinberg Service quality influences consumers’ behavior.
(2003)
Pakola et al. (2003) Price is the most influencing factor in buying mobile phone.
Karjaluoto et al. Price, brand, interface, and properties tends to have the most
(2005) influential factors affecting the actual choice amongst
mobile phone brands.
Li & Li (2010) Special mobile phone function and style affects the
consumer’s individuality, style and life concept.
Gautam (2011) Product quality highly influences in the consumers buying
behavior of smart phones.
Karthikeyan (2011) Most of the respondents were selecting the Smartphones for
the reason of its ‘high quality’ and ‘Price.
Paulrajan et al. Mobile phone quality and availability has an important
(2011) impact on consumer perception for selecting mobile phone
manufacturer.
Worlu (2011) Factors that influences consumers of mobile phones are
market condition,features and brand components, pricing,
quality, and influential persons.
Cronin and Taylor (1992) investigated by taking 660 samples from 8 companies in
four industries, using structural equation method to analyze the relationship between
satisfaction, service quality and purchase intention. The study found service quality is
the major factor that influence purchase intention and consumer satisfaction.
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Olive and Kallenberg(2003)carried outastudy on shifting of organizations from
product to service sector. They conducted this research on eleven
German organizations. The collected data are taken by interview. They concluded
that when organization moves from product to service then they need a higher level of
management because the type of relationship is change. Firms must pursue a specific
way and order by which they accumulate their goals.
In the study on “An investigation of consumer behavior in mobile phone markets in

Finland” undertaken by Pakola et al. (2003) intended to investigated consumer
purchase intentions in mobile phone markets in Finland. The researcher has collected
data from 397 respondents and factor analysis was used to make inferences of
collected data. Research study states that price is the most influencing factor in buying
mobile phone. Furthermore, it states that price was regarded as the most significant
motives affecting to purchase decision in current mobile phone model for consumers
in Finland. It was being noted in the analysis that price might have dominated the
decision making in the sample more than it does for the whole population, as the
average net income in the target groups was relatively low.
Karjaluoto et al. (2005) analyzed thestudy in Finland with regard to factors that
influence intention to acquire new mobile phones and factors that influence on mobile
phone change decision among consumers. The Researcher categorized the factors into
seven categories namely innovative services, multimedia, design, brand and basic
properties, outside influence, price and reliability. The primary data were collected by
using two different approaches that is study 1 focus group interviews with 79 graduate
students and study 2 with the survey of 196 respondents. The study indicated that
although the choice of a mobile phone is a particular choice situation, there are some
general factors that seem to guide the choice. Investigators studied that price, brand,
interface, and properties are the important factors which is affecting the actual
decision amongst mobile phone brands while technical problems are the basic reason
to change mobile phone.
Li et al. (2010) undertook a study in the West China having objective to investigate
the psychological factors influencing college students’ utilization of mobile phone and
the relationship between the college students’ individual characteristic and the aspect
which they take in to consideration when they select the mobile phone. In order to
8
carry out the research work a structured questionnaire was prepared and data were
collected from 172 respondents. Furthermore, the data were analyzed by applying
KMO test and Bartlett test of sphere city. The study discovered that purchasing
motivation positively influences the social attribute factor. Analysis also states that
special mobile phone function and style affects the consumer’s individuality, style and
life concept.
Gautam (2011) stated that none of the writers disagree that quality is one of the most
crucial critical success factors in order for organizations to achieve competitiveness
among competitors. They further interpret that "quality" had make the Japanese's
automobile industry overtook the USA's during 1980's and become the biggest in the
world though Japan's automobile industry started several decades behind the USA's.
In other words, quality is an important factor that consumer will put into consideration
before making any purchasing decision, therefore, this independent variable is to find
out whether or not it will have the same effect towards consumers in Malaysia when
purchasing a Smartphone
The study entitled “A study on brand preference of mobile phone customers with
reference to Erode City” investigated by Karthikeyan (2011) aims to find out mobile
phone brand preference among the customers in Erode city of Tamil Nadu India. The
survey was conducted through structured questionnaire by contacting 300
respondents. The research analysis found that brand have most favored attribute while
selecting a smartphone in respect of quality, price, technology and durability. The
company which fulfills the consumer desires in the competitive market has high
preference on brands among the consumers. Researcher concluded that most of the
respondents were selecting the Smartphones for the reason of its high quality and
price.
Paulrajan et al. (2011) analyzed the study to understand the Indian consumers’
perception choice in selecting cellular mobile telecommunication service providers. A
structured questionnaire was developed to collect primary data from the consumers
and was analyzed; reliability and factor analysis were carried out. The findings of
research revealed that price, functions/ performance of a mobile phone, mobile phone
quality plays an important role in the purchase decision of the smartphone. Price plays
an important role in the consumer purchase decision as India is one of the price
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sensitive counties. However, the study also indicates that mobile phone quality and
availability has an important impact on consumer perception for selecting mobile
phone manufacturer.
Worlu (2011) carried out a study work on “consumer-purchasing motives in Nigerian

cellular phone market: an empirical investigation”. The research intended to examine
consumer-purchasing motives in cellular-phone markets. The study surveyed 297
Nigerian consumers to identify their motives for purchasing. The analysis of this
research work shows that primary factors for the purchase of a mobile phone were
found to be manufacturer, market conditions and influential persons. For the choice of
operator, the factors were found to be features and brand components of pricing,
quality, and influential persons.
1.5.2 Review of recent literature
Table 1.2 shows the summary of recent literature regarding the relationship between
different factors affecting consumers buying behavior.
Table 1.2: Recent literature review

Study Major findings
Mokhlis and Mobile phone features and design does arrive on top of the
Yaakop (2012) list in consumers’ choice of mobile phones.
Khayyat and Determine the relationships between the demographic
Heshmati (2012 variables and the degree of customer satisfaction by taking
determinants such as perceived usefulness, perceived ease of
use, perceived enjoyment, price, demography and Brand.
Suki (2013) Brand name and social influence have an effect on the
increasing demand for Smartphones
Malviya et al. Social Influence acts for the Brands used by the people as a
( 2013) status symbol and features form the product specifications.
Naing and There is a positive and imperative relationship among
Chaipoopirutana perceived quality, product image, consumer aspiration, and
(2014) emotional value, attitude towards product and purchase
intention.
Uddin et al. (2014) The important factors which influence the customers during
purchase are physical attributes.
Mad Lazim and Multipurpose function of the smartphone such as
Sasitharan (2015) multipurpose applications, high speed processors are the
influencing factors to consumer to buy a smartphone.
Rahim et.al (2016) Product features and brand name are considerably and
certainly related to purchase intention of smartphone.
10
Ayodele et al. Social influence, compatibility and dependency are
(2016) significantly influencing purchase intension of the Smart
Phone consumers.
Mokhlis and Yadi (2012) undertook the study on “Consumer choice criteria in mobile
phone selection: an investigation of Malaysian University students” with the aim of
studying the importance of different preference criteria in mobile phone selection
among Malaysian consumers. The Data was collected through self-administered
questionnaire from 371 university students. The respondents were asked to rate the
relative importance of 29 potential influencing factors regarding their choice of
mobile phone. The principal components factor analysis resulted in seven independent
dimensions: innovative features, image, price, personal recommendation, durability
and portable aspects, media influence, and post-sales service out of which innovation
in mobile phone features and design does arrive on top of the list in consumers’
choice of mobile phones.
A study carried out in Korea by Khayyat and Heshmati (2012), intended to ascertain
and enumerate the impacts of the factors that influences customer satisfaction in the
mobile telecommunication business and to determine the relationships between the
demographic variables and the degree of customer satisfaction by taking determinants
such as perceived usefulness, perceived ease of use, perceived enjoyment, price,
demography and brand.
In the study“Students' demand for smartphones: structural relationships of product

features, brand name, product price and social influence’’ carried out by Suki (2013)
aims to find out structural relationships of product features, brand name, product price
and social influence with demand for smartphones among Malaysian students’. The
data was collected from 320 valid pre-screened university students with convenient
sampling technique and the outcome of the study revealed that brand name and social
influence have an effect on the increasing demand for smartphones among Malaysian
student.
Malviya et al.(2013) studied on factors influencing consumer’s purchase decision

towards smartphones in Indore. The research aims to identify the relationship between
the four factors specifically price, brand name, feature and social influences during
purchase of smartphone. The data were collected from 188 respondents and were
11
analyzed and interpreted using chi-square, reliability analysis, factor analysis,
confirmatory factor analysis with the help of statistical package for social sciences
(SPSS). The study concluded that social influence acts for the brands used by the
people as a status symbol and features form the product specifications.
Naing and Chaipoopirutana (2014) investigated the factors that affect consumer’s
purchase intention towards smart phone by taking into account perceived quality,
product image, consumer aspiration, emotional value, consumer uncertainty and
attitude towards product and purchase intention of a smart phone. The data were
collected from 400 respondents and analyzed with the help of Pearson Correlation.
The study reveals that there is a positive and imperative relationship among perceived
quality, product image, consumer aspiration, and emotional value, attitude towards
product and purchase intention.
Uddin et al.(2014) reported on the title “Factors affecting customers’ buying decisions
of mobile phone: a study on Khulna City, Bangladesh” which focuses on the motive
to uncover the underlying factors which affect customers in choosing mobile phone. A
structured questionnaire designed to collect the data. A total of 200 respondents were
interviewed from them 160 were found flawless thus used for data analysis. Factor
analysis was applied to extract the underlying factors affecting mobile phone
purchasing decision, findings of the research states that while purchasing the mobile
phone, customer are influenced by different factors which ultimately affects the
purchase decision, the important factors which influence the customers during
purchase are physical attributes which includes physical characteristics of mobile
phone like camera, Bluetooth, color, weight and others.
Mad Lazim and Sasitharan (2015) tried to explore the factors that encourage
consumer to buy a smartphone. The researcher has considered high speed processing/
operating system, design, application & software, price, brand and convenience as
influencing factors that affect Purchase decision of smartphone. The population
considered in the research was Malaysian smartphone users from all age group with
sample of 427 respondents for this study. The analysis of this collected data states that
multipurpose function of the smartphone such as multipurpose applications, high
speed processors was being influencing factors to Malaysians consumer to buy a
smartphone.
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Rahim et.al (2016) examined purchasing intention of smartphone among university
students. The study explored various factors which influences purchase intention of
smartphone among university students in Malaysia. It examined the relationship
between product features, brand name, social influence, product sacrifice and
purchase intention of smartphone. Data was gathered from 367 students from UiM
Kedah. Four hypotheses were used to test the relationship between the independent
variables such as product features, brand name, social influence, product sacrifice and
purchase intention of smartphone and Cronbach Alpha was applied to test the
reliability of the scales. Product features and brand name were considerably and
certainly related to purchase intention of Smartphone.
Ayodele et al. (2016) study aimed at determining the factors of smartphone purchase
behavior among young adults in Anambra State, Nigeria. Study finding states that
aesthetic value, smartphone features has a foremost effect on the purchase behavior
among young adults. Social influence tried to study the factors affecting consumer's
purchase intension of Smartphone. Research attempts to find out significant difference
between the responses of male and female with respect to the factors such as relative
advantage, dependency, compatibility, convenience, product features, price, brand
name and social influence. The questionnaire was circulated and collected from 159
respondents. Various statistical tools like multiple regression, Mann whiney U were
used to analyze data. The result shows that social influence, compatibility and
dependency were found to be significantly influencing purchase intension of the
Smart Phone consumers.
1.5.3 Review of Nepalese literature
Table 1.3.Shows the summary ofNepalese studies on the factors influencing

consumers buying behavior of smart phones
Study Findings
Thagunna (2013) Value identification, customer service and lifestyle are most
influential for Nepalese women’s purchasing decisions.
Shrestha (2016) Better features when compared to similar model is the main
reason for purchasing the particular brand. Quality of
smartphone is considered to be extremely important factor.
13
Table 1.3: literature of Nepalese review
Thagunna (2013) carried out a study on: dimensions affecting the purchasing behavior
of Nepalese women. The purpose of this study is to identify the various dimensions of
buying behavior of Nepalese women while making purchasing decisions. A total of
100 women of different background were surveyed through a questionnaire consisting
of 22 questions related to the buying behavior. Various factors such as value
identification, Customer Service and Lifestyle are most influential for Nepalese
women’s purchasing decisions. So, by providing, at affordable price, high value
product that match the personality of the targeted women and by providing superior
customer care, Nepalese women can be attracted easily. Besides these, price, brand
awareness and accurate information also influence their buying behavior to a certain
extent.
Shrestha (2016) investigated the underlying factors that determine the smartphone
buying behavior of young consumers of Nepal and the impacts of their lifestyle in
decision making process. Young consumers were researched believing that they are
potential consumers of smartphone in Nepalese market. The aim was to examine the
purchasing behavior of consumers living in Kathmandu, Nepal. This approach was
selected due to the reality of Kathmandu city being centralized and its centric attitude
being prevailed in all sectors of Nepal. The result after analyzing the findings based
on the survey and interview shows that majority of the consumers were from age
group 21-25. A clear majority of the consumers own Samsung followed by IPhone.
Better features when compared to similar model is the main reason for purchasing this
particular brand (Samsung).
1.6 Conceptual framework
The conceptual framework is the basis or foundation upon which the study is
established. It is within the framework of this theory that entire study proceeds. The
preliminary survey of literature and information provides a solid foundation for
developing a theoretical framework. Since the general purpose of the research is to
develop theories about the problems and questions, it is important that the conceptual
framework be carefully developed and presented.
In other words, conceptual framework is a basic conceptual structure organized

around a theory. It defines the kind of variables that are ongoing to be used in the
14
analysis. Conceptual framework is a type of intermediate theory that attempt to
connect to all aspects of inquiry within problem definition, purpose, literature review,
methodology, data collection and analysis. Conceptual framework can act like map
that give coherence to empirical inquiry as the conceptual framework are potentially
so close to empirical inquiry, take different form depending upon the research
question or problem. This study has taken consumer purchasing decision measured in
terms of consumer purchasing decision as dependent variables whereas price, brand,
attitude, and perception as independent.
Figure 1.1: Schematic diagram on consumers buying behavior towards

smartphones in Nepalgunj
Figure 1.1 shows the conceptual framework of the study which represents the independent
and dependent variables. Consumer’s smart phones buying decision is dependent variables
for the study. Whereas, independent variables price, social influence, brand name, product
feature and after sales service.
Independent variable Dependent variable
Price
Smart phones buying decision

Social influence
Brand name
Product feature
After sales
Price
A value that will purchase a finite quantity, weight, or other measure of a good or
service is called price.According to Munnukka (2008), there is apositive relationship
15
between the consumer’s perception on price and theirrespective purchase. Faryabi et
al.(2012) states thatconsumers respond strongly to price changes in the marketplace.
Price is used as a main variable by marketers in order to influence purchase behavior
of potential consumers (Chang and Wildt,1994).Based on it, this study develops
following hypothesis:
H1: There is negative relationship between pricing and the consumers buying
behavior of smartphones.
Brand image
Brand image is the current view of the customers about a brand. It can be defined as a
unique bundle of associations within the minds of target customers. According to
Azad and Safaei (2012), the brand name has direct influence on consumers buying
perception towards quality of the product. When customers are satisfied, they generate
word of mouth and it will lead to others to be interested and choose the brand. Higher
brand image will lead to higher purchase intentions (Lin and Wang, 2006). Based on
it, this study develops following hypothesis:
H2: There is positive relationship between brand image and the consumers buying
behavior of smartphones.
Product feature
A product feature is one of the distinguishing characteristics of a product or service
that helps boost its appeal to potential buyers, and might be used to formulate
a product marketing strategy that highlights the usefulness of the product to targeted
potential consumers.Malasi (2012) examined that that varying the product attributes’
has an influence on the undergraduate students’ preferences on mobile phones.
Various aspects of product and brand attributes were considered such as color themes,
visible name labels, and mobile phone with variety of models, packaging for safety,
degree of awareness on safety issues, look and design of the phone. According to Lay-
Yeeet al.(2013), product feature hassignificant relationship with customer purchase
decision onsmartphone. Based on it, this study develops following hypothesis:
H3: There is positive relationship between product feature and the consumers buying
behavior of smartphone.
Social influence
16
The actions, reactions, and thoughts of an individual are influenced by other people or
groups. Social influence may be represented by peer pressure, persuasion, marketing,
sales, and conformity. According to (Perreau, 2014)Social factors affect consumer
behavior significantly. Every individual has someone around influencing their buying
decisions. The important social factors are: reference groups, family, role and status.A
consumer behavior is influenced by social factors, such as the consumer’s small
groups, family, and social roles and status (Kotler and Armstrong, 2010). Farzana
(2012) reported that consumers’ purchase behavior is shaped up by others, especially
by family members while buying high-involvement products. Based on it, this study
develops following hypothesis:
H4: The social factors have a positive influence on the consumers’ mobile phone
buying decision.
After sales service

A company's after-sales service is all the help and information that it provides to
customers after they have bought a particular product. Service quality has also been
defined as the result of a comparison between the received service and the expected
service (Gronroos, 1984). Keaveney(1995) noted that service quality has important
influence on consumers buying behavior. If the provider can provide high quality
service that will improve customer satisfaction.Based on it, this study develops
following hypothesis:
H5: There is positive relationship between after sales service and theconsumers
buying behavior of smartphones.
1.7 Research methodology
Research methodology describes the methods and process applied in the entire aspects
of study. Research methodology helps to resolve the systematic problems. It uses
various sequential steps to be adopted by researcher. Research methodology is used to
collect information and data. Research methodology sets out overall plan associated
with the study. The methodology may include publications research, interviews,
survey and other research techniques and could include both present and historical
information. It provides a basic framework on which the study is based.
17
Before presenting the analysis and interpretation of data, it is necessary that research
methodology be described first. Hence, under this topic presents all the necessary
steps to be followed throughout this research work in order to achieve and accomplish
the objective of the study. Research methodology discussed in this topic helps to
guide the research study providing different issues and aspects. It systematically
solves the various sequential steps to adopt by various studying problem with the
objective in view. This represents research design that describes the research methods,
sampling techniques and the instructions employed in the data gathering process. This
topic has been divided in to five sections. Section one provides research plan and
design used in the study, which deals with conceptual structure of the study. Similarly
section two deals with the discription of the population and sample. Similarly, section
deals with the smpling procedure of the study. Likewise, section four deals with data
gathring produceres. Finally, section five deals with the model and verialbes of this
study.
1.7.1 Research plan and design
This study employs descriptive research design and casual comparative research
design to deal with factors influencing consumers buying behavior of smart phones in
Nepalgunj, city. This study adopts descriptive research design for fact finding and
identifies adequate information about factors affecting consumers’ behavior. This
research design is a process of accumulating facts. It describes phenomenon as it
exists. Such design involves the systematic collection and presentation of data to give
clear picture of a particular situation.
This study is also based on casual comparative research design. This design has been
adopted to ascertain and understand the directions, magnitude and forms of observed
relationship between different factors and buying behavior. This research design helps
to investigate the possible causes affecting the performance by observing the existing
consequences and searching for the possible factors leading to change in buying
behavior of consumers in selected samples. Casual comparative design is used to find
the cause and effect of relationship between different factors and consumers buying
behavior of smart phones.
18
1.7.2 Population and sample
Population refers to the entire group of people, events or things of interest that a
researcher wishes to study. This study was designed to measure the impact of different
factors on consumers buying behavior of smart phones. Convenience sampling was
used to track the respondents for the study. The convenience sampling was
appropriate for this study because this technique is best way to reach the respondents;
similarly, due to resource constraints- time and money. The sampling technique
generally assumes a homogeneous population that means the member of population
poses similar characteristics. The target population for this study is the consumer
inside the Nepalgunj city.
1.7.3 Sampling procedure
Sampling technique based on the method of probability or non-probability sampling.

Probability sampling methods is choosing sampling on random or chance selection
from the target population. Non-probability method is the probability of each case
being selected from the population is not known; in our research, non-probability
method is preferred because it is convenience and sample could be chosen from many
ways. Under non-probability sampling technique, one of the sampling method been
used in the research is convenience sampling. Convenience sampling is used when the
researcher is familiar with the respondents.
In this study, for the selection of the sample respondent, convenience sampling
technique has been used. The total sample respondents are 111. This study is based on
primary source of data collected from the consumer. A sample of 111 respondents
(n=111) of Nepalgunj by the questionnaire concerning the factors influencing
consumers buying behavior of smart phones.
1.7.4 Data gathering procedure
For gathering data, questionnaires were prepared on the basis of literature review and
guidance of supervisor. Structured questions were distributed to the consumers in
Nepalgunj. Questionnaire includes both close-ended and open-ended questions. The
questionnaire was designed to collect the information of consumer buying decision
influencing factors such as price, brand name, product feature, social influence and
19
after sales service. For the data collection, web-based survey through e-mail and
social networks was conducted.
1.7.5 Models and variables
The study aims to analyze the factors that influence the consumer buying behavior of
smart phones in Nepalgunj. In this study, the model has been used to test the
theoretical relationship of factors influencing consumers’ behavior. The independent
variables which influence consumer purchasing decision are price, brand name,
product feature, social influence and after sales service whereas one dependent
variable is consumer buying behavior. Regression models are used in this study to
analyze influencing factors of consumer buying behavior among consumers of
Nepalgunj, city. The regression model used in this study is as follow:
Model I
Model I represents the factors influence consumers buying behavior of smart phones
in Nepalgunj.
BB = β 0 + β 1 P+ β 2 BI+ β 3 PF+ β 4 SI+ β 5 AS+e

Where,
BB = Buying behavior
β 0 = Intercept of the dependent variable
P = Price
BI = Brand image
PF = Product feature
SI = Social influence
AS = After sales service
e = Error term
β 1 , β 2 , β 3 , β 4 , β 5 are the beta coefficients of the explanatory
variables to be estimated.
1.8 Limitations of the study

The major limitations of the study were as follows:
1. The study was predominantly based on primary source of data regarding

factors that influence consumer buying behavior of smart phone brands.
Therefore, the reliability of the results of the study depends on how much the
information provided by the respondents is accurate.
20
2. The survey was conducted within the Nepalgunj. Hence, the study did not
incorporate respondents from all over Nepal.
3. The study was based on the assumption of linear regression between the
dependent and independent variable. The study excluded the non-linear
regression assumptions.
4. The data has been granted by using a questionnaire. A series of interview

should be carried out to provide other information and it’s can be affected the
outcomes of this study indirectly.
5. It may also be noted that only primary data are considered for the study
purpose. However, data analysis through secondary data are not taken into
consideration. Hence, the result of the study is not broad and flexible. It is
limited to the perception of the consumers.
1.9 Organization of the study
This study has been divided into three chapters from introduction to summary and
conclusions. The first chapter, introduction, deals with the subject matter of the study
which includes general background, statement of the problem, research questions,
objectives of the study (major and specific), review of related literature (review of
major literature, recent literature and Nepalese literature), conceptual framework and
research methods (research design, population &sample, sampling procedure, data
gathering procedure, the model & variables, limitations of the study and organization
of the study). The second chapter, data analysis and major findings, include
presentation and analysis of the data collected through primary method and major
findings and discussion. The last chapter deals with summary, conclusion and
recommendation.
21
Chapter II
Results and Discussion
This chapter provides systematic presentation and analysis of primary data. This
chapter is divided into three sections. The first section deals with the presentation and
analysis of the primary data and presents the results of questionnaire survey. The
second section covers the analysis of regression model including correlation analysis.
The third section of this chapter deals with concluding remarks on the basis of
findings from primary data analysis.
2.1 Presentation and analysis of primary data
This study is based on primary data analysis, which mainly focuses on factors
influences consumers buying behavior of smart phones in Nepalgunj, city. This
section reports the result of questionnaire survey conducted among different people of
Nepalgunj. A set of questionnaire including yes/no types, multiple choices and Likert
scale questions are provided. The respondents profile along with their personal
characteristics and result of the survey are presented in the following sections. The
percentage, frequency, mean value, weighted average mean value has been calculated
to do the proper analysis of the data.
2.1.1 Respondents’ profile
Table 2.1 shows the personal profile of the respondents. Regarding the gender of the
respondents, majority of the respondents (51.4 percent) are females followed by 48.6
percent of the male respondents. The age of the respondents is divided into five
groups. Majority of the respondents are from age group of 20-29 years (67.6 percent),
14.4 percent are from 30-39 years age group, 10.8 are under 19 years age group, 5.4
are from 40-59 years age group, 1.8 percent are from 60n above age group. Regarding
22
the qualification of the respondents, majority of the respondents (48.6 percent) are
bachelor’s degree holders, 27.0 percent are master’s degree holders, 20.7 percent are
intermediate, 2.7 percent are M. Phil and 0.9 percent are PHD. Regarding the
occupation 65.8 percent are students, 13.5 percent are service providers, 11.7 percent
are business persons, 6.3 percent are self-employed and 2.7 percent are from other
occupation.
Table 2.1: Demographic characteristics of the respondents

(This table shows the number of respondents with the classification on gender, age group in
years, academic qualification, occupation, of different people of Nepalgunj used in
questionnaire survey of the study. ‘Number’ represents the number of respondents of each
category and ‘percentage’ refers to the respondent’s number in particular category out of
total.)
Respondents character Frequency Percent
Gender
Female 57 51.40
Male 54 48.60
Total 111 100.00
Age
under 19 12 10.80
20-29 75 67.60
30-39 16 14.40
40-59 6 5.4
60 above 2 1.80
Total 111 100.00
Occupation
Student 73 65.80
Business persons 13 11.70
Self-employed 7 6.30
Service 15 13.50
Others 3 2.70
Total 111 100.00
Academic qualification
Intermediate 23 20.70
Bachelor 54 48.60
Masters 30 27.00
M. Phil 3 2.70
PHD 1 0.90
Total 111 100.00
The classification of the respondents by gender category is presented in Figure 2.1.
23
Figure 2.1: Classification of respondents by gender
Gender
54
57
Ma l e Femal e
The figure 2.1 shows that majority of the respondents (51.40 percent) are female
followed by (48.60 percent) of the male respondents. The classification of the
respondents by age category is presented in Figure 2.2.
Figure 2.2: Classification of respondents by age
Age
80.0
70.0 67.6
60.0
50.0
Percentage
40.0
30.0
20.0 14.4
10.8
10.0 5.4
1.8
0.0
under 19 Years 20-29 Yea rs 30-39 Yea rs 40-49 Years 60 Above
Years
Figure 2.2 shows that majority of the are from age group of 20-29 years (67.6
percent), 14.4 percent are from 30-39 years age group, 10.8 are under 19 years age
group, 5.4 are from 40-59 years age group, 1.8 percent are from 60n above age group.
The classification of the respondents by qualification is presented in Figure 2.3.
24
Figure 2.3: Classification of respondents by qualification
Qualification
60.0
48.6
50.0
40.0
Percentage
30.0 27.0
20.7
20.0
10.0
2.7 0.9
0.0
Intermadi ate Bachel or Ma sters M.phi l PHD
Qualification
Figure 2.3 shows that majority of the respondents (48.6 percent) are bachelor’s degree
holders, 27.0 percent are master’s degree holders, 20.7 percent are intermediate, 2.7
percent are M. Phil and 0.9 percent are PHD. The classification of the respondents by
occupation of respondents is presented in Figure 2.4.
Figure 2.4: Occupation of the respondents
occupation
70.0 65.8
60.0
50.0
Percentage
40.0
30.0
20.0 13.5
11.7
10.0 6.3
2.7
0.0
Student Bus i nes s pers i on Sel f-empl oyed Servi ce Others
Occupation
Figure 2.4 shows that majority of the respondents are students (65.8 percent), 13.5
percent are service providers, 11.7 percent are business persons, 6.3 percent are self-
employed and 2.7 percent are from other occupation.
25
2.1.2 Descriptive analysis of customers’ buying behavior perceived value towards
smartphones on the level of price, brand image, product feature, social influence
and after sales service in Nepalgunj, city.
This section provides the information on the consumer’s perception on the level of
selected independent factors. The respondents were asked question regarding their
view on the price of smartphone, brand image, product feature, social influence and
after sales service.
Table 2.2 presents the opinions of respondents regarding price of the smartphones.
The majority of the respondents (50.4 percent) believed that price is an important
factor when purchasing smartphone whereas some respondents (36 percent) disagree
that price is an important factor when purchasing smartphone. The rest (13.5 percent)
of the respondents were indifferent on the statement. Likewise, majority of the
respondents (52.9 percent) disagreed that they willing to buy smartphone even though
price is higher and some of the respondents (25.2 percent) agree whereas rest (19.8
percent) of the respondents were indifferent on the statement.
The table indicates that majority of the respondents (45 percent) viewed that the
cheapness of some Smartphone‘s brand suggests that they may have some risks, such
as low quality. However, some of the respondents (37.8 percent) are disagree with the
statement whereas rest (17.1 percent) of the respondents were indifferent on the
statement.
Table 2.2: Respondents’ response regarding price of smartphones

(This table shows the percentage, frequency and mean of the consumer’s opinion regarding
the price of the smartphone. The statement is measured in five point Likert scales: 1 as
strongly disagree, 2 as disagree, 3 as neither agree nor disagree, 4 as agree and 5 as strongly
agree.)
Statement 1 2 3 4 5 N Mean
Price is an important factor F 29 11 15 36 20 111 3.06
when purchasing smartphone. 26.
% 1 9.9 13.5 32.4 18 100
A% 36 13.5 50.4
I'm willing to buy smartphone F 28 33 22 21 7 111 2.51
even though price is higher. 25.
% 2 27.7 19.8 18.9 6.3 100
52.
A% 9 19.8 25.2
The cheapness of some F 24 18 19 40 10 111 2.94
% 21. 16.2 17.1 36 9 100
26
6
37.
Smartphone's brand suggests to
A% 8 17.1 45
me that they may have some
I compare prices of other F 21 18 18 39 15 111 3.08
Smartphone's brands and store 18.
brands before I choose one. % 9 16.2 16.2 35.1 13.5 100
35.
A% 1 16.2 48.6
I am uncertain which F 27 20 24 31 9 111 2.77
Smartphone's brands provide 24.
real value for money in terms of % 3 18 21.6 27.9 8.1 100
42.
product quality.
A% 3 21.6 36
Weighted Average Mean 2.87
Source: Field Survey 2017
Regarding the responses on the statement “I compare prices of other Smartphone‘s

brands and store brands before I choose one.”, majority of respondents (48.6 percent)
agree with this statement whereas some respondents (35.1 percent) disagree with this
statement. However, rest (16.2 percent) of the respondents were indifferent on the
statement.
Similarly, majority of the respondents (42.3 percent) disagreed that they are uncertain
which Smartphone‘s brands provide real value for money in terms of product quality.
However, some respondents (36 percent) agree. The rest ( 21.6 percent) of the
respondents were indifferent towards the statement.
The mean of the level of price of smartphones ranges from minimum value of 2.51 to
the maximum value of 3.08.
Weighted average mean value for the level of price of smartphones is 2.87 which
indicate that respondents are not satisfied with the price of smartphones.
Table 2.3 presents the opinions of respondents regarding brand image of smartphone
to consumers of the Nepalgunj.
Table 2.3: Respondents’ response regarding brand image of smartphone

(This table shows the percentage, frequency and mean of the consumer’ perception regarding
brand image of smartphone. The statement is measured in five point Likert scales: 1 as
strongly disagree, 2 as disagree, 3 as neither agree nor disagree, 4 as agree and 5 as strongly
agree.)
27
Statement 1 2 3 4 5 N Mea
n
Brand image increase my F 19 31 19 31 11 111 2.86
status in the society. % 17.1 27.9 17.1 27.9 9.9 100
A 45 17.1 37.8
%
Brand image is an attraction F 23 19 22 30 17 111 2.99
for me to purchase a % 20.7 17.1 19.8 27.0 15. 100
smartphone. 3
A 37.8 19.8 42.3
%
I will consider the brand F 19 36 18 24 14 111 2.80
image when buying a % 17.1 32.4 16.2 21.6 12. 100
smartphone with higher 6
price. A 49.5 16.2 34.2
%
Smartphone’s brand name is F 25 25 20 29 12 111 2.80
my priority when making a % 22.5 22.5 18.0 26.1 10. 100
purchase decision. 8
A 45 18.0 36.9
%
I will consider the reputation F 23 20 24 33 11 111 2.9
of smartphone brand before % 20.7 18.0 21.6 29.7 9.9 100
purchasing it. A 38.7 21.6 39.6
%
The majority of the respondents (45 percent) do not believe that brand image
increasestheir status in the society whereas some respondents (37.8 percent) agree
with this statement. The rest of the respondents were indifferent on the statement.
Likewise, majority of the respondents (42.3 percent) opined that the brand image is an
attraction to purchase a smartphone However, others (37.8 percent) disagree and rest
(19.8 percent) of the respondents were indifferent on the statement
The table indicates that majority of the respondents (49.5 percent) does not willing to
consider the brand image when buying a smartphone with higher price. However,
some of the respondents (34.2 percent) willing to consider the brand image, rest (16.2
Regarding the responses on the statement “Smartphone’s brand name is my priority

when making a purchase decision”, majority of respondents (45 percent) disagree
with this statement whereas some respondents (36.9 percent) agree. However, rest (18
28
Similarly, majority of the respondents (39.6 percent) opined that they will consider the
reputation of smartphone brand before purchasing it. However, other respondents
(38.7 percent) disagree with this statement. The rest ( 21.6 percent) of the respondents
were indifferent towards the statement.
The mean of the level of brand image ranges from a minimum value of 2.80 to the
maximum value of 2.99.
Weighted average mean value for the level of brand image is 2.89 which indicate that
consumers are not satisfied with brand image of smartphone.
Table 2.4 presents the opinions of respondents regarding product feature of

smartphone.
The majority of the respondents (49.5 percent) believed that if two smartphone’s had
the same features they would choose the Smartphone that is the current craze from an
operating system point of view whereas some respondents (40.5 percent) disagree
with the same statement. The rest (9.9 percent) of the respondents were indifferent on
the statement. Likewise, majority of the respondents (65.7 percent) disagreed that the
quality, reliability of the product doesn’t matter, what matters are that the brand is the
current craze. However, others (20.7 percent) agree and rest (13.5 percent) of the
respondents are indifferent on the statement.
The table indicates that majority of the respondents (44.1 percent) viewed that they
would rather choose a Smartphone brand that has a mature app store over one that is
the current craze from a brand point of view. However, some of the respondents (36.9
percent) disagree with this statement. Whereas rest (18.9 percent) of the respondents
were indifferent on the statement.
Regarding the responses on the statement “I would rather choose a Smartphone brand
that is known to integrate easily with all PC operating System”, majority of
respondents (47.4 percent) agree with this statement whereas some respondents (35.1
percent) disagree. However, rest (17.1 percent) of the respondents were indifferent on
the statement.
Table 2.4: Respondents’ response regarding product feature of smartphone.

(This table shows the percentage, frequency, mean of the consumers’ perception regarding of
the product feature of smartphone. The statement based is measured in five Likert scales 1 as
strongly disagree ,2 as disagree, 3 as neither agree nor disagree, 4 as agree and 5 as strongly
agree.)
29
If two smartphone’s had F 29 16 11 44 11 111 3.07
the same features I % 26.1 14. 9.9 39.6 9.9 100
would choose the 4
Smartphone that is the A 40.5 9.9 49.5
current craze from an %
operating system point
of view.
The quality, reliability F 24 49 15 13 10 111 2.42
of the product doesn’t % 21.6 44. 13.5 11.7 9.0 100
matter to me, what 1
matters are that the A 65.7 13.5 20.7
Brand is the current %
craze.
I would rather choose a F 28 13 21 39 10 111 2.91
Smartphone brand that % 25.2 11.7 18.9 35.1 9.0 100
has a mature app store A 36.9 18.9 44.1
over one that is the %
current craze from a
brand point of view.
Smartphone brand that % 23.4 11.7 17.1 34.2 13.5 100
is known to integrate A 35.1 17.1 47.4
easily with all PC %
operating System.
smartphone brand that is % 26.1 9.0 12.6 27.0 25.2 100
easy to use, thereby A 35.1 12.6 52.2
allowing me to perform %
task faster.
Similarly, majority of the respondents (52.2 percent) opined that they would rather
choose a smartphone brand that is easy to use, thereby allowing me to perform task
faster. However, some respondents (35.1 percent) disagree and the rest (12.6 percent)
of the respondents were indifferent towards the statement.
The mean of the level of product feature ranges from a minimum value of 2.42 to the
Weighted average mean value for the level of product feature of smartphone is 2.92
which indicates that consumers are not satisfied with product feature of smartphone.
Table 2.5 presents the opinions of respondents regarding the social influence.
30
Table 2.5: Respondents’ response regarding social influence
(This table shows the percentage, frequency, mean of the employees’ perception regarding
financial rewards of the bank. The statement based is measured in five Likert scales 1 as
strongly disagree ,2 as disagree, 3 as neither agree nor disagree, 4 as agree and 5 as strongly
agree.)
I like to know which F 15 36 19 32 9 111 2.85
smartphone makes good % 13.5 32. 17.1 28.8 8. 100
impressions in my society. 4 1
A 45.9 17.1 36.9
%
It is important that my friends F 18 39 19 24 11 111 2.74
like the brand of smartphone % 16.2 35. 17.1 21.6 9. 100
I’m using. 1 9
A 51.3 17.1 31.5
%
I will ask the opinion from my F 14 30 16 41 10 111 3.03
friends when buying a % 12.6 27. 14.4 36.9 9. 100
smartphone. 0 0
A 39.6 14.4 45.9
%
I achieve a sense of belonging F 18 32 31 22 8 111 2.73
by purchasing the same % 16.2 28. 27.9 19.8 7. 100
smartphone that my friends 8 2
purchase. A 45.0 27.9 27.0
%
If I want to be like someone, I F 24 37 19 23 8 111 2.58
try to buy the same % 21.6 33. 17.1 20.7 7. 100
smartphone that they buy. 3 2
A 54.9 17.1 27.9
%
The majority of the respondents (45.9 percent) disagree that they like to know which
smartphone makes good impressions in their society whereas some respondents (36.9
percent) agree. The rest (17.1 percent) of the respondents were indifferent on the
statement. Likewise, majority of the respondents (51.3 percent) disagreed that it is
important that their friends like the brand of smartphone they are using. However,
others (31.5 percent) agree and rest (17.1 percent) of the respondents are indifferent
on the statement.
The table indicates that majority of the respondents (45.9 percent) opined that they
will ask the opinion from their friends when buying a smartphone. However, some of
31
the respondents (39.6 percent) disagree whereas rest (14.4 percent) of the respondents
were indifferent on the statement.
Regarding the responses on the statement “I achieve a sense of belonging by

purchasing the same smartphone that my friends purchase”, majority of respondents
(45.0 percent) disagree with this statement whereas some respondents (27.0 percent)
agree. However, rest (27.9 percent) of the respondents were indifferent on the
statement.
Similarly, majority of the respondents (54.9 percent) disagree that if they want to be
like someone, they try to buy the same smartphone that they buy. However, some
respondents (27.9 percent) agree. The rest (17.1 percent) of the respondents are
indifferent on the statement.
The mean of the level of social influence ranges from a minimum value 2.58 to the
Weighted average mean value for the level of motivation is 2.79, which indicates that
consumers are not influence by social factor.
Table 2.6 presents the opinions of respondents regarding after sales service of
smartphone.
The majority of the respondents (44.1 percent) believed that return facility has an
effect on my purchasing decision whereas some respondents (36 percent) disagree
with this statement. The rest (19.8 percent) of the respondents are indifferent on the
statement. Likewise, majority of the respondents (48.6 percent) opined that the repair
and maintenance service policy affects their purchase decision of smart phones.
However, others (36.9 percent) disagree and rest (14.4 percent) of the respondents are
indifferent on the statement.
The table indicates that majority of the respondents (49.5 percent) viewed that
different kinds of free sales services affects their buying decision of smart phone
brands However, some of the respondents (37.8 percent) with this statement. Whereas
rest (12.6 percent) of the respondents were indifferent on the statement.
Table 2.6: Respondents’ response regarding after sales service of smartphone.

(This table shows the percentage, frequency and mean of the consumers’ perception on after
sales service. The statement is measured in five point Likert scales: 1 as strongly disagree, 2
as disagree, 3 as neither agree nor disagree, 4 as agree and 5 as strongly agree.)
32
Statement 1 2 3 4 5 N Mea
n
Return facility has an F 28 12 22 36 13 111 2.95
effect on my % 25.2 10. 19.8 32.4 11.7 100
purchasing decision. 8
A 36 19.8 44.1
%
Repair and F 21 20 16 32 22 111 3.13
maintenance service % 18.9 18. 14.4 28.8 19.8 100
policy affects my 0
purchase decision of A 36.9 14.4 48.6
smart phones. %
Different kinds of free F 29 13 14 28 27 111 3.10
sales services affects % 26.1 11.7 12.6 25.2 24.3 100
my buying decision of A 37.8 12.6 49.5
smart phone brands. %
Warranty and guaranty F 20 17 9 32 33 111 3.37
features are important % 18.0 15. 8.1 28.8 29.7 100
for me before taking 3
buying decision. A 33.3 8.1 58.5
%
How company F 26 11 13 32 29 111 3.24
responds to complains % 23.4 9.9 11.7 28.8 26.1 100
matters for me. A 33.3 11.7 54.9
%
Regarding the responses on the statement “Warranty and guaranty feature are
important for me before taking buying decision”, majority of respondents (58.5
percent) agree with this statement whereas some respondents (33.3 percent) disagree.
However, rest (8.1 percent) of the respondents were indifferent on the statement.
Similarly, majority of the respondents (54.9 percent) agree that how company
responds to complains matters for them. However, some respondents (33.3 percent)
disagree. The rest (11.7 percent) of the respondents were indifferent towards the
statement.
The mean of the level of after sales service ranges from a minimum value of 2.95 to
Weighted average mean value for the level of after sales service is 3.16 which
indicates that consumers are satisfied with after sales service.
33
Table 2.7 presents the opinions of respondents regarding level of team work of
selected Nepalese commercial banks.
Table 2.7: respondents’ response regarding the buying behavior towards

smartphone
(This table shows the percentage, frequency and mean of the consumers’ behavior on
smartphone. The statement is measured in five point Likert scales: 1 as strongly disagree, 2
as disagree, 3 as neither agree nor disagree, 4 as agree and 5 as strongly agree.)
Price of smart F 28 43 17 11 12 111 2.42
phones does not % 25.2 38.7 15.3 9.9 10.8 10
affect my buying 0
behavior. A 63.9 15.3 20.7
%
I consider the brand F 24 26 16 32 13 111 2.85
of the smart phone % 21.6 23.4 14.4 28.8 11.7 10
before I purchase it. 0
A 45 14.4 40.5
%
I always talk about F 19 41 23 21 7 111 2.60
smart phone with my % 17.1 36.9 20.7 18.9 6.3 10
friends. 0
A 54 20.7 25.2
%
I search for F 20 27 21 27 16 111 2.93
information about % 18.0 24.3 18.9 24.3 14.4 10
smartphone from 0
time to time. A 42.3 18.9 38.7
%
Advertisement of the F 20 27 11 38 15 111 3.00
smartphones % 18.0 24.3 9.9 34.2 13.5 10
influences me to buy 0
it. A 42.3 9.9 47.7
%
The majority of the respondents (63.9 percent) disagreed that price of smart phones
does not affect their buying behavior. Whereas some respondents (20.7 percent) agree
with this statement. The rest (15.3 percent) of the respondents are indifferent on the
statement. Likewise, majority of the respondents (45 percent) disagree that they
consider the brand of the smart phone before they purchase it. However, others (40.5
34
percent) agree and rest (14.4 percent) of the respondents are indifferent on the
statement.
The table indicate that majority of the respondents (54 percent) viewed that they do
not always talk about smart phone with their friends. However, some of the
respondents (25.2 percent) agree with this statement whereas rest (20.7 percent) of the
respondents were indifferent on the statement.
Regarding the responses on the statement “I search for information about smartphone
from time to time”, majority of respondents (42.3 percent) do not search for
information about smartphone from time to time whereas some respondents (38.7
percent) search for information about smartphone from time to time. However, rests
(18.9 percent) of the respondents were indifferent on the statement.
Similarly, majority of the respondents (47.7 percent) opined that the advertisement of
the smartphones influences them to buy it. However, some respondents (42.3 percent)
disagree. The rest (9.9b percent) of the respondents were indifferent towards the
statement.
The mean of the level of consumers’ behavior ranges from a minimum value of 2.42
to the maximum value of 3.00. Weighted average mean value for the level of behavior
is 2.76 which indicate that consumers are not satisfied with smartphone.
2.2Correlation analysis
Having indicated the descriptive statistics, Kendall’s correlation coefficients are

computed and the results are presented in Table 2.8. More specifically, it shows the
correlation coefficients of dependent and independent variables for smartphones in
Nepalgunj city.
Table 2.8: Kendall’s correlation matrix for the dependent and independent
variables for smartphone
(This table reveals the Kendall’s correlation coefficients between dependent and independent
variables. Consumers buying behavior is the dependent variable and price (P), brand (B),
product feature (PF), social influence (SF) and after sales service (AS are the independent
variables.)
Mea
Variables Std. P BI PF SI AS BB
n
1.1
P 2.87 1.00
3
35
1.1
BI 2.97 0.58** 1.00
8
1.4 0.67* 0.60*
PF 2.98 1.00
8 * *
1.0
SI 2.79 0.58** 0.66** 0.59** 1.00
4
1.3
AS 3.16 0.57** 0.56** 0.62** 0.53** 1.00
8
1.0 0.53* 1.0
BB 2.76 0.60** 0.55** 0.60** 0.48**
8 * 0
Note: The asterisk signs (**) and (*) indicate that coefficients are significant at 1 percent and 5
percent levels respectively.
The table shows that average value of consumers buying behavior is 2.76 where as
consumers behavior has on overall mean is observed to be 2.94. Similarly, average
values of consumers’ opinion on level of price is 2.87. Average values of consumers’
opinion on level of brand image is 2.97. Likewise, average values of consumers’
opinion on level of product feature is 2.98. Social influencehas the average value of
2.79. And average value of after sales service is 3.16.
The result shows that price is positively related to consumers’ buying behavior which
indicates that increase in price leads to increase in consumers buying behavior.
Likewise, brand image is positively related to consumers buying behavior. It shows
that better brand image leads to increase in consumer buying behavior.
Similarly, product feature is positively related to consumers buying behavior. It means

that better product feature leads to an increase in the buying behavior of consumers.
The result shows that social influence is positively correlated to consumers buying
behavior which indicates that increase in social influence leads to an increase in
consumers buying behavior of smartphones.
Likewise, after sales service is positively related to consumers buying behavior. It

shows that better after sales service leads to increase in consumers buying behavior of
smartphones.
2.3Regression analysis
This section basically deals with regression results from various specifications of the
models to examine the estimated relationship of consumers buying behavior of
smartphones with its affecting factors, price, brand image, product feature, social
influence and after sales service within their working organization.
36
The estimated regression results of influencing factors on consumers buying behavior
are presented in Table 2.9.
Table 2.9 shows beta coefficient is positive for price. This indicates that lower the
price, lower would be the consumers buying behavior. This finding is consistent to the
findings of Munnukka (2008). Similarly, the beta coefficient of brand image is
positive. This indicates that better the brand image of smartphones, higher would be
the consumers buying behavior. This finding is similar to the findings of Lin and
Wang (2006).
Table 2.9: Estimated regression results of P, BI, PF, SI and AS on consumers

buying behavior
(The results are based on 111 observations by using linear regression model. The model is
BB= α+β1P+ β2BI+ β3PF+ β4SI+ β5AS+e, where, BB =buying behavior, P = price,
BI=brand image, PF=product feature, SI=social influence, AS= after sales service)
Mod Interce P BI PF SI AS Adj SE F-
el pt R2 E value
1 0.71 0.71 0.55 0.72 135.0
(3.77)* (11.62) 2 7 58
* **
2 0.73 0.709 0.60 0.68 164.4
(4.280) (12.825) 6 3 89
** **
3 0.78 0.690 0.60 0.68 161.3
(4.56)* (12.703) 2 4 62
* **
4 0.455 0.835 0.63 0.65 189.2
(2.532) (13.757) 5 7 58
** **
5 0.938 0.578 0.53 0.74 124.8
(5.282) (11.172) 6 3 08
** **
6 0.514 0.321 0.463 0.63 0.65 96.72
(2.948) (3.467) (5.240)* 9 1 5
** ** *
7 0.394 0.387 0.475 0.69 0.60 118.74
(2.334) (4.522)* (4.594)* 2 3 9
** * *
8 0.364 0.565 0.266 0.68 0.61 113.65
(2.130) (6.317)* (3.928)* 9 1
** * *
9 0.349 0.304 0.234 0.320 0.71 0.58 87.42
(2.136) (3.172)* (2.445)* (3.053)* 4 0 8
** * * *
Notes:
1. Figures in parenthesis are t-values
2. ** Denotes that the results are significant at 1 percent level of significance
3. * Denotes that the results are significant at 5 percent level of significance.
37
Likewise, the beta coefficient is positive for product feature. It reveals that better the
product feature of smartphones, higher would be the consumers’ buying behavior.
This finding is similar to the findings of Lim Lay-Yee (2013). The beta coefficient is
positive for social influence. It reveals that higher the social influence, higher would
be the buying behavior of consumers. This finding is consistent with the findings
(Farzana, 2012). Additionally, the beta coefficient is positive for after sales service.
This indicates that higher the after sales service, higher would be the consumers’
buying behavior of smartphones. This finding is consistent with the findings
ofKeaveney (1995.
2.4 Major findings
Based on the analysis of data, the major findings of the study are summarized as
follows:
1. Out of 111 respondents, majority of the respondents (51.4 percent) are females
followed by 48.6 percent of the male respondents.
2. The majority of the respondents are from age group of 20-29 years (67.6
percent), 14.4 percent are from 30-39 years age group, 10.8 are under 19
years age group, 5.4 are from 40-59 years age group, 1.8 percent are from 60
and above age group.
3. Regarding the qualification of the respondents, majority of the respondents

(48.6 percent) are bachelor’s degree holders, 27.0 percent are master’s degree
holders, 20.7 percent are intermediate, 2.7 percent are M. Phil and 0.9 percent
are PHD.
4. Regarding the occupation 65.8 percent are students, 13.5 percent are service
providers, 11.7 percent are business persons, 6.3 percent are self-employed
and 2.7 percent are from other occupation.
5. The majority of the respondents (63.9 percent) disagreed that price of smart
phones does not affect their buying behavior. Whereas some respondents (20.7
percent) agree that price of the smarphones does not affect their buying
behavior. The rest of the respondents were indifferent on the statement.
Likewise, majority of the respondents (45 percent) disagree that they consider
the brand of the smart phone before they purchase it. However, others (40.5
38
percent) agree and rest (14.4 percent) of the respondents are indifferent on the
statement.
6. The mean of the level of price of smartphones ranges from minimum value of
2.51 to the maximum value of 3.08.
7. Weighted average mean value for the level of price of smartphones is 2.87
which indicate that respondents are not satisfied with the price of smartphones.
8. The mean of the level of brand image ranges from a minimum value of 2.80 to
9. Weighted average mean value for the level of brand image is 2.89 which
indicate that consumers are not satisfied with brand image of smartphone.
10. The mean of the level of product feature ranges from a minimum value of 2.42
to the maximum value of 3.16.
11. Weighted average mean value for the level of product feature of smartphone is
2.92 which indicates that consumers are not satisfied with product feature of
smartphone.
12. The mean of the level of social influence ranges from a minimum value 2.58
to the maximum value of 3.03.
13. Weighted average mean value for the level of motivation is 2.79, which
indicates that consumers are not influence by social factor.
14. The mean of the level of after sales service ranges from a minimum value of
2.95 to the maximum value of 3.37. Weighted average mean value for the
level of after sales service is 3.16 which indicates that consumers are satisfied
with after sales service.
15. The mean of the level of consumers’ behavior ranges from a minimum value
of 2.42 to the maximum value of 3.00. Weighted average mean value for the
level of behavior is 2.76 which indicate that consumers are not satisfied with
smartphone.
16. The highest correlation has been observed to be 0.67 between product feature
and price culture. This means betters the product feature higher the price of
39
smartphones. The lowest correlation of 0.482 has been observed between
consumers’ behavior and after sales service.
17. The findings from correlation analysis show that that price, brand image,
product feature, after sales service and social influence are positively
correlated with consumers buying behavior of smartphones.
18. The beta coefficient of price is positive which indicates that lower the price,
lower would be the consumers buying behavior.
19. The beta coefficient of brand image is positive.This indicates that better the
brand image of smartphones, higher would be the consumers buying behavior.
20. The beta coefficient is positive for product feature. It reveals that good product
feature of smartphones leads to an increase in consumers’ buying behavior.
21. The beta coefficient is positive for social influence. It reveals that higher the
social influence, higher would be the buying behavior of consumers.
22. The beta coefficient is positive for after sales service. This indicates that
higher the after sales service, higher would be the consumers’ buying behavior
of smartphones.
23. The major conclusion of the study is that social influence plays the major role
in determining the consumer buying behavior.
24. The study also concludes that better the brand image and product feature,
higher would be the consumers buying behavior of smartphones.
40
Chapter III
Summary and Conclusion
This chapter deals the brief summary of the entire study and highlights major findings
of the study. Moreover, the major conclusions are discussed in separate section of this
chapter that is followed by some implications and the recommendations regarding the
factors influencing consumers buying behavior of smartphones of Nepalgunj
city.Finally, the chapter ends with the scope of the future research in same field.
3.1 Summary
In this modern era, a smartphone is just not only the want but also a need if you know
how to make proper use of it. All the participants of the focus group also mentioned
smartphone as their need. Obviously, smartphone have changed the ways that we used
to live, communicate and connect with people all over the world.
Consumer buying behavior is the sum total of a consumer's attitudes, preferences,

intentions, and decisions regarding the consumer's behavior in the marketplace when
purchasing a product or service. The study of consumer behavior draws upon social
science disciplines of anthropology, psychology, sociology, and economics. The
consumer behavior or buyer behavior is influenced by several factors or forces like
price, brand image, product features, social influence, after sales services etc.
behavior of smart phones in Nepalgunj, city. The specific objectives of this study are:
to identify nature of consumers buying behavior of smart phones, to examine the
relationship between smart phones buying decision and price, social factors,
durability, brand name, product feature & after sales service, to determine the impact
of price, social factors, social influence, brand name, product feature and after sales
on buying behavior of smart phones in Nepalgunj to identify the most significant
factor affecting the buying behavior of smart phones in Nepalgunj, city.
There are number of studies taken which provides a review of major empirical studies
associated with the factors influencing consumers buying behavior of smartphones.
Study has referred to various foreign studies on this topic to enhance the theoretical
background and models used by the previous studies. The various major literatures
reviewed in this section are Kotler (1994), Lin andWang (2006), Pakola et al. (2007),
41
Li, & Li, (2010), Mokhlis and Yaakop (2012), Malviya et al.( 2013, Uddin et al.
(2014), etc.
This study is based on primary source of data. The data was collected through the
distribution of questionnaire using Google sheet. Altogether total of 111
questionnaires were collected. To achieve the purpose of the study structured
questionnaire was prepared.
In this study conceptual framework has been done where price, brand image, product
feature, social influence, and after sales service are the independent variable and
customers buying behavior is dependent variable. This study examines whether there
is positive or negative relationship of each independent variable with dependent
variable and this study found that there is negative relationship with price and
consumers buying behavior. And other variable has positive relationship with
dependent variable.
The respondents represent the consumer of smartphones in Nepalgunj, city and

descriptive statistics, correlation coefficient and regression method has been used to
estimate the relationship between dependent variable such as consumers buying
behavior with independent variables price, brand image, product feature, social
influence, and after sales service. The collected data has been processed with the use
of SPSS statistical package. The second chapter includes data analysis of respondents’
profile. The analysis of consumer’s perception with each five independent variables
has been conducted and weighted average mean has been found for the five cases and
then correlation and regression analysis had been done and after that major finding
has been done which includes presentation and analysis of data collected through
primary method and major finding and discussion. The last chapter deals with
summary, conclusions and recommendation.
This study also suggests that price of the smartphones influences the customer buying
behavior. Lower the price, lower will be the consumers buying behavior. Also brand
image has positive affect on consumers buying behavior of smartphones this means
that better the brand image of smartphones higher will be the consumers buying
behavior. Product feature also has positively affected the level of customer buying
behavior this indicate that better the product feature, higher will be the consumers
buying behavior. Similarly, social factors positively affect the customers buying
42
behavior. Which indicates that higher the social influence, higher will be the
consumers buying behavior. Lastly, after sales service has positive affect on
consumers buying behavior. Indicates that better the after sales service, higher will be
the consumers buying behavior of smartphones.
3.2 Conclusion
The major conclusion of the study is that social influence plays the major role in
determining the consumer buying behavior.
The study also concludes that better the brand image and product feature, higher
would be the consumers buying behavior of smartphones.
3.3 Recommendation
Based on the findings, the following recommendations have been made:
1. The study found the positive relationship between price and consumers buying
behavior. It suggests that lower the price lower will be the customer buying
behavior. So, it suggests that consumers are focus on smartphones brand image,
product quality rather than price.
2. The study found the positive relationship of brand image with customer
consumer buying behavior of smartphone. It suggests that higher the security
higher will be the customers buying behavior. So, smartphones companies
should focus on maintaining better brand image of smartphones in the market.
3. The study found the positive relationship between product feature and
consumers buying behavior. It suggests that better the product feature higher
will be the customer buying behavior. So, smartphones companies should focus
on product feature factors to increase purchase intention towards smartphones.
4. The study found the positive relationship between social factors and consumers
buying behavior of smartphones. It means that higher the social influence higher
will be the consumers buying behavior of smartphones. So, smartphones seller
should focus on social influence of consumers.
5. The study found the positive relationship between after sales service with
customer buying behavior of smartphones. It suggests that higher the after sales
service higher will be the customer consumers buying behavior. So,
43
smartphones sellers should focus on maintaining higher after sales service to the
customers to increase the consumers buying behavior.
3.4 Scope for future research
The study remains enough ground for the further studies, which are listed below
1. This study has taken only primary data as sample. For the better result
secondary data also the helpful for further study.
2. This study is based on the survey of smartphones user inside the Nepalgunj.
For the accurate result further researcher should have to consider the people
of overall Nepal who uses smartphones.
3. This study has taken limited independent variables. Thus, for the future study
it is suggested to take other more independent variables as well which affects
consumers buying behavior.
4. The future studies can select larger sample size to collect the accurate
information related to customers buying behavior towards smartphones.
5. This study has applied linear regression model. Further, the study can be done
by using some advanced statistical tools such as non-linear statistical tools
and bidirectional causality tools.
44
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Factors influencing consumers buying behavior of

In partial fulfillment of the requirements for the BBA

The study entitled “Factors influencing consumers buying behavior of

This Project Report entitled “Factors influencing consumers buying behavior of

Certified that this project report

Factors influencing consumers buying behavior of smartphones in Kathmandu

is the bonfire work of

Table 1.1: Review of major literature

Figure 1.1: Schematic diagram on consumers buying behavior towards smartphones

BBA Bachelor of Business Administration

et al. and others

AS After sales service

SEE Standard Error of Estimate

SPSS Statistical Package for Social Science

Std. dev. Standard deviation

1.1 General background

Consumer buyer behavior is considered to be an inseparable part of marketing and

Solomon et al.(2012) reveals that companies are more concerned on individual

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

Young et al.(2010) mentioned that, in order to purchase a particular goods or services,

1.2 Statement of the problem

1. What is the pattern of consumers buying behavior of smartphones in

1.3 Objectives of the study

1. To identify nature of consumers buying behavior of smart phones.

1.4 Significance of the study

As the smartphone market is growing rapidly, an understanding of the consumer

1.5 Literature review

1.5.1 Review of major literature

1.5.1 Review of major literature

Table 1.1: Review of major literature

In the study on “An investigation of consumer behavior in mobile phone markets in

Worlu (2011) carried out a study work on “consumer-purchasing motives in Nigerian

1.5.2 Review of recent literature

Table 1.2: Recent literature review

In the study“Students' demand for smartphones: structural relationships of product

Malviya et al.(2013) studied on factors influencing consumer’s purchase decision

1.5.3 Review of Nepalese literature

Table 1.3.Shows the summary ofNepalese studies on the factors influencing

1.6 Conceptual framework

In other words, conceptual framework is a basic conceptual structure organized

Figure 1.1: Schematic diagram on consumers buying behavior towards

Independent variable Dependent variable

Smart phones buying decision

After sales service

1.7 Research methodology

1.7.1 Research plan and design

1.7.3 Sampling procedure

Sampling technique based on the method of probability or non-probability sampling.

1.7.4 Data gathering procedure

1.7.5 Models and variables

BB = β 0 + β 1 P+ β 2 BI+ β 3 PF+ β 4 SI+ β 5 AS+e

1.8 Limitations of the study

1. The study was predominantly based on primary source of data regarding

4. The data has been granted by using a questionnaire. A series of interview

1.9 Organization of the study

2.1 Presentation and analysis of primary data

2.1.1 Respondents’ profile

Table 2.1: Demographic characteristics of the respondents

The classification of the respondents by gender category is presented in Figure 2.1.

Figure 2.2: Classification of respondents by age

Figure 2.4: Occupation of the respondents

Table 2.2: Respondents’ response regarding price of smartphones

Regarding the responses on the statement “I compare prices of other Smartphone‘s