PREFERENCE OF ONLINE PLATFORM ON PURCHASING WINTER APPARELS

(An evidence of Daraz Online Store)

Undergraduate Applied Business Research Project Proposal

Submitted to:

Kathmandu University
Little Angel’s College of Management
In the partial fulfillment of the requirement for the degree of
Bachelors of Business Administration (BBA)

By:
Anup Joshi
KU Registration No: A020958-15
Under the Supervision of
MR. Shashi Raj Bajracharya
Faculty, LACM
Hattiban, Lalitpur

Dec, 2019
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BUSINESS RESEARCH PROPOSAL APPROVAL SHEET [1]

Name of Proponent: ANUP JOSHI

K.U. Registration Number:
Stream: BBA
Title/Topic:
Name of Supervisor: SASHI RAJ BAJRACHARYA
Signature of Supervisor:

Date of Approval by supervisor: (DD/MM/YYYY)

To be filled by Research Division:

Ethical Approval of Instrument by Research Committee: Yes/NO

Endorsed by:

Chair of Research Committee/Research Coordinator:

Date of Proposal Defense/Instrument Clearance

(DD/MM/YYYY)
Members in Defense Panel (Name with signature):

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Contents
Chapter 1.....................................................................................................................................................4
INTRODUCTION.......................................................................................................................................4
1.1 Background of the Study..........................................................................................................4
1.2 Statement of the Problem.......................................................................................................5
1.3 Objectives of the Study............................................................................................................5
1.4 Research Question.......................................................................................................................5
1.5 Significance of the Study..........................................................................................................6
1.6 Delimitation of the Study.........................................................................................................6
Chapter 2.....................................................................................................................................................7
REVIEW OF LITERATURE..........................................................................................................................7
2.1 Review of Related Literature...................................................................................................7
2.2 Research Gap...........................................................................................................................8
2.3 Conceptual Framework............................................................................................................9
CHAPTER 3.................................................................................................................................................10
RESEARCH METHODOLOGY...................................................................................................................10
3.1 Research Design.....................................................................................................................10
3.2 Types of the Research............................................................................................................10
3.3 Sampling Area........................................................................................................................10
3.4 Sampling Population and Sample Size...................................................................................10
3.5 Sampling Technique...............................................................................................................10
3.6 Source of Data.......................................................................................................................11
3.7 Data Analysis and Statistical Tools.........................................................................................11
3.8 Validity and Reliability...........................................................................................................11
3.9 Ethical Consideration.............................................................................................................11
CHAPTER 4.................................................................................................................................................13
EXPECTATION........................................................................................................................................13
4.1 Expected Outcome.................................................................................................................13
4.2 Objectivity..............................................................................................................................13
References.................................................................................................................................................14

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Chapter 1
INTRODUCTION

1.1 Background of the Study

The shopping process has undeniably evolved in the recent times, with online shopping being a
support, medium and channel. You likely know this from your own shopping habits, but you
may have also seen reports on the impact on retail more broadly. Reports and findings recently
reported that many physical shops and shopping malls are being shut-down across many
countries including America, India, China, Japan. That shift requires large scale thinking about
job creation and the wider economic effects, but for businesses in the retail sector, it also
underlines the need to adopt, and to adopt, digital platforms, including social media, which is
rising fast as a key shopping tool.
Facebook and Instagram have the most influence on decisions, yet Instagram, Pinterest and
You Tube have an overall stronger impact on Sales. According to the Nepal Telecom’s
Management Information System (2019) the number of internet users in Nepal has rapidly
increased during the last year these accounts 63% of the total population that uses internet in
Nepal. With these rapid growth and development of internet and social media, consumers are
able to share their own opinion, views, and experience of their purchase with others. (Ananda &
Wandebori, 2016). People who make and post videos in You-Tube are known as You Tubers has
achieved the status as one of the biggest influencers in social media with wide loyal audiences to
support them. Nowadays people first look for an opinion and reviews from other various
consumers who have used the product so they could avoid the risk of disinformation. Before
online shopping became common in traditional brick-and motor environment, retail sales person
were in the main supply of information about products. Today, Online shopping websites as well
as social media platforms host products reviews and opinions for other users to consider before
buying a product. (Sethna, Hazari&Bergiel, 2017). Consumers are more exposed to various
different products and more inclined to decide not on what brands are promoting, but rather
based on what others say about the brands. (Gesenhues, 2013). From the stone age to the current
era, we have been come forward in the field of fashion. I think any fashion from daura-surwal to
jeans is okay, but one should wear the right clothes for the right time and occasion. One should
wear clothes according to seasons – summer, winter and autumn or according to occasions like
party or work. People should judge themselves with the situation and select clothes accordingly.
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1.2 Statement of the Problem

It’s easy. It’s quick and its literally a click away. That’s online shopping for you. But is it that
simple? Not exactly. There are many issues with online shopping faced by the consumers. and
these challenges are not limited to fake products or hidden costs.
Customers like to shop at websites that offer them conveniences, are easy to browse through,
aesthetically appealing and provide relevant information. When the website or platform is not
optimized right, it leads to the case of abandoned carts, order cancellations or return.
Some of the major problems of the online platform on purchasing products are product quality,
Delivery time is not clearly mentioned, Payment prefernces are limited, trouble with hidden
costs, unclear website policies, problem of penalty.

1.3 Objectives of the Study

The general objectives of this research is to analyze the preference of the online platform on
purchase of winter Apparels.
The specific objectives of research are as follows:
a) To find out the external factors that affect consumer purchase intension.
b) To examine the age group more interested and involved in online purchase.
c) To find out the sales preferences of online platform

1.4 Research Question

a) Does reviews affect the consumer purchase intension?
b) What are the external factors influencing consumer purchase intention?
c) Which age group are more influenced towards online purchasing?
d) Does review affect the sales preference of Daraz online store?

1.5 Significance of the Study

This study will help the company to know about effect of reviews on consumers/customers
buying behavior. This study will help the mar

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keters to know how much priority and investment they can allocate in promoting their product
online in the social media and online Apps. The findings from the study will also help Daraz
company to know about the effect of reviews on the sales of the product. This study will provide
knowledge to various other online selling stores to utilize social medias as a brand marketing
tool to increase sale. The study will also help to know about the effect of various external factors
like credibility, interpersonal trust, and psychological factors other than reviews in consumer
buying behavior. Furthermore, the findings of this research becomes even more useful in the
context of Nepal, which has hardly any research data available on the mentioned subject matter.

1.6 Delimitation of the Study

No study can be free from constraints and so does this research. The limitation of the research is:
a) There will be random selection of respondent through convenience sampling.
b) The study confines to Kathmandu valley only.
c) The data collected in the study is Particularly based on the questionnaire.

Chapter 2
REVIEW OF LITERATURE

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2.1 Review of Related Literature

This chapter presents the literature review from journal articles and thesis related to the research
topic. The articles and thesis are reviewed from different international research paper.

Andrew, R. and Currim (2014) Highlighted in the differences in choice, behavior of consumer
for two products categories, statistically significant differences are found between consumers
attracted to shopping online versus customary clothing store with respect to parameters
portraying the decision procedure. In the investigation he found that related to customary
clothing store buyers, internet shoppings are less value touchy, incline toward bigger size to
littler sizes, have more grounded size reliability.

Ashish Bhatt (2014) on the Indian consumers’ perception on e-commerce website entitled
‘Consumer Attitude towards Online Shopping in Selected Regions of Gujarat’ which focused on
factors which online Indian buyers keep in mind while shopping online that research found that
information; perceived usefulness, perceived enjoyment and security/privacy are the five
dominant factors which influence consumer perceptions on Online purchasing

Vaishalli Nikalje (2014) tried to explore show socio-demographic (age, income and occupation),
pattern of online buying (types of goods, e-commerce experience and hours use on internet) and
purchase perception (product perception, customers’ service and consumers’ risk) affect
consumers’ attitude towards online shopping Pune city India and found that five factors among
the nine affect consumers’ attitude

Zan, Yan and Peng (2015) published a journal about “Effect of online reviews on consumer
purchase behavior”. The objective of the study were to examine effect of online review on
consumer behavior and to examine the influence of positive, negative and moderate review on
consumer buying behavioral Data were collected from more than 400 Tabao shops’ online
reviews. Tabao website offer 30 days of transaction record and reviews records. So this study
was conducted for 30 days sales on tabao. Descriptive statistics were used for all variables,
regression for measuring hypothesis and SPSS 19.0 software was used for data analysis and
assumption.

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Lepisto and Vahajykka (2017) has published a research study about “YouTubers impact on
viewers buying behavior”. The main objective of the study was to examine the influence of
Finnish female lifestyle YouTubers have on their viewers buying behavior, what is their
decision-making process and what are the external factors influencing their buying behavior. The
goal was to provide valuable information for viewers, Users themselves and content providers as
they work together with YouTubers to market their mind. Data were collected using qualitative
approach as eight semi structured interviews were conducted. The sample size was taken from 16
to 23 age group.
The major finding of the research were that 75% of the respondent had purchased online in the
recommendation of YouTubers. The weakness of the research is they have only included Finish
female lifestyle YouTubers viewers between age of 16 to23 as a sample for the research so the
research has not covered all the demographics and geodemographic aspects.

2.2 Research Gap

There are several researches conducted around the globe on the online platform basis and other
marketing policies of online platform but there is no any single research which is conducted in
the case of preferences of online platform on purchasing winter apparels. Many research
conducted study on cosmetic products and it was more focused on female rather than male as a
population sample. The age group was also limited to teenagers, youngsters like from 13 to 35.
All the research of online reviews, impacts of influencer, celebrity endorsement and social media
platforms related topic research are conducted in other countries but not in Nepal. The Topic
“Preference of online platform on purchasing winter Apparels” is not conducted in the context of
Nepal. This research can be base for further studies and research for other students.

2.3 Conceptual Framework

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Expertise of YouTubers

Trustworthiness of
YouTubers Consumers Purchase Intension

Video Attributes

YouTubers Popularity

Independent Variable Dependent Variable

CHAPTER 3
RESEARCH METHODOLOGY

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In this chapter the methodologies, approaches, tools, and techniques are included which will be
used in the study.

3.1 Research Design

This research will be using descriptive research design and be quantitative in nature. This
research will be focusing towards Preference of online platform on purchasing winter Apparels.
This research will be covering the population from Kathmandu valley, self-administered
questionnaire will be given to the respondent for the survey.

3.2 Types of the Research

This will be an applied research where I will try to solve current issues and determine effects of
reviews in purchase in online platform. Data used will be quantitative in different measurement
scales. The self-administered questionnaire will be prepared and distributed to random people.

3.3 Sampling Area

There are many online stores visitors and customers in Nepal. The present study is confined to
Kathmandu valley including Lalitpur and Bhaktapur district.

3.4 Sampling Population and Sample Size

The sample population for the study is all those people who use Online platform within
Kathmandu valley to review and purchase product. Since, Kathmandu valley has huge
population, researcher will be randomly selecting few samples for the survey. The sample size
for the study will be around 200 respondents.
Sample size(n)=N/(1+Ne^2)

3.5 Sampling Technique

In order to conduct the survey, we will use probability sampling under which simple random
sampling will be done. And the questionnaire will be distributed to most easily accessible people
directly or through internet.
3.6 Source of Data
To conduct the study, data will be collected from primary sources like survey and questionnaires.
Questionnaire for the study will consists of different type of measurement scale. They are

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nominal, ordinal and interval scale, Likert scale questionnaire, single response question will be
used.

3.7 Data Analysis and Statistical Tools

After data are collected, data will be categorized, processed and tabulated according to its
requirements. All the data collected will be converted into numerical value and processed using
SPSS software. Data will be analyzed through different descriptive statistics like mean, median,
mode, standard deviation, frequency and percentage. Appropriate statistical tools like correlation
analysis, regression, will also be analyzed. The final result will be interpreted through different
graphs, charts, pie table and bar diagram.

3.8 Validity and Reliability

Face validity will be used for validity test. It refers to researchers’ subjective exams of the
presentation and relevance of the measuring tool as to wheather the items inside the instrument
appear like relevant, unambiguous, reasonable and clear. For the reliability test, cronobach’s
alpha will be used. Pilot study will be done to test the reiliability of the data.

3.9 Ethical Consideration

Ethical values will be strictly followed while doing this study. The study will be conducted after
getting permission from the Daraz online store in Nepal. Approval will be taken from the main
head-office of Daraz online store.
The survey will not be done in a biased manner. The survey questionnaire will be related with
the topic of the research rather than personal and unrelated questions. All the respondent will be
informed and briefed about the aims and objective of the research, their right and roles before
starting the survey. All the confidentiality of the respondent will be handled properly.
Respondents will be encouraged to the answer the questions without any external pressure from
the researcher or anyone else. It will be made sure that no participants are harmed during the
Study. The research will be conducted under the rules and regulation of the concerned
organization.The researcher will pay attention to mitigate any ethical dilemmas that comes
during the course of the Study.

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CHAPTER 4
EXPECTATION
4.1 Expected Outcome
The expected outcome of the study will be to determine the elements influencing in the
“PREFERENCE OF ONLINE PLATFORM IN PURCHASING WINTER APPARELS”. The
age group of the people who are more influenced by the YouTube reviews while purchasing
winter apparels online. The outcomes will also show the different external factors that influence
consumer behavior .The outcome of the research will also show that whether the Daraz online
store is affected by the reviews or not.The outcome will be helpful for Daraz online store to
know about what consumers think (feedback) about their products especially winter apparels and
any problem or delima being faced may be solved for customer satisfaction.The outcome will
give clear idea for the Daraz online store, whether they have to engage their marketing strategy
in such YoutTube platforms and youtubers or not.

4.2 Objectivity
For research to be the best the knowledge it must remain within the objective of the proposed
title. The result will be interpreted based on the data provided by the sample population. It will
be focused on actual and fair result rather instead of own perception and assumption.

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References
2019 Digital Nepal Framework. (2019). Retrieved from Government of Nepal Ministry of
Communication and Information Technology website:
http://mocit.gov.np/application/resources/admin/uplods/sources/EN%20Digital%20Nepal
%20Framework%20V7.2March2019.pdf

Ananda, A.F.,& Wandebori, H,(2016). The impact of drugstore makeup product reviews by
beauty vloggers on youtube towards purchasing intension by undergraduate students in
Indonesia. International Conference on Ethics of Business, Economics, and Social Science,
(pp.255-263). Bandung, Indonesia. Retrived from:
http://eprints.unv.ac.id/41794/1/22%20Azka%20Faransia%20Ananda.pdf

Andrews, R. and Currim, I. (2004). Behavioral differences between consumers attracted to

shopping online versus traditional supermarkets: implications for enterprise design and
marketing strategy. International Journal of Internet Marketing and Advertising, 1(1), p.38.

Bhatt, A. (2014). Consumer Attitude towards Online Shopping in Selected Regions of Gujarat.
Journal of Marketing Management, 02 (02), 29-56.

Vaishalli, Nikalje, V. (2014). To Study Factors That Influence the Attitude of Consumers
towards Online Shopping in City of Pune. International Center for Business Research,02, 1-5.

MO,Z., Li, Y.,& Fan, P,(2015). Effect of Online Reviews on Consumer Purchase Behavior.
Journal of Service Science and Management, 08(03), 419-424.
Doi:10.4236/jssm.2015.83043

Sethna,B.N.,Hazari,S ., &Bergie, B.(2017).Influence of user generated content in online

shopping: impact of gender on purchase behavior, trust, and intension to purchase.
International Journal of Electronic Marketing and Retailing, 8(4), 344.
Doi:10.1504/ijemr.2017.10008550

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Figure 1.2: Gantt chart presentation of the study schedule

Description November December January- March- May- July
February April June

Title
Presentation

Proposal
development and
submission

Conducting
data survey

Conduct in-depth
Analysis and
evaluation

Research
analysis and
design

Report writing

Report
submission and
presentation

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