1

CHAPTER I
INTRODUCTION

1.1 Background of the study

Customer satisfaction is expectations, likes, dislike, motivations and inclinations that drive
customer purchasing decisions. These factors complement customer needs in explaining
customer behavior. Customer satisfaction is the subjective (individual tastes) and is measured
by the utility of the various bundles of goods consumed. Customer ranks these bundles of
goods according to the level of utility they obtained from each goods. One can prefer an
Apple I-phone over Samsung mobile phone but only have the financial means to afford
Samsung phone. The preferences are independent of income and prices. Ability to purchase
goods does not determine the customer’s likes and dislikes. They are no doubt dependent
upon culture, tastes, preferences, education and many other related factors. Preferences are
measured in terms of level of satisfaction the customer obtains from consuming various
combinations or various bundles of goods. Consumer makes decision by allocating their
scarce resources over all the possible goods in order to obtain the highest level of satisfaction.
Consumer maximizes their utility subject to their budget. Utility is defined as the satisfaction
that consumer obtains from the consumption of the goods. Utilities determinants are
determined by the host of non-economic factors. Consumer value is measured in terms of the
relative utilities between the goods. These reflect the consumer preference.

According to Emanuel (2013) this study is concerned with cell phones which aren't just a rich
person's fashion today. It is transforming the way thousands of people do business in a
country where even landline phones were a luxury a decade ago. As an essential element of
daily life, the purchase of a mobile phone is an important decision with a variety of mobile
phone brands available to choose from. Each Cell phone manufacturer consistently updates
their offerings with the latest technological updates and many customers have a preferred
brand that suits them or a brand they have become familiar with. Across the globe, even
people with low incomes are now adopting cellular phones as tools for enhancing their
business.

According to Oxford (2013) one of the earliest uses of word "mobile" was in association with
the Latin phrase "mobile vulgus", i.e. excitable crowd. Today's mobile phones live up to these
 2

origins. Cell phone technology introduces new senses of speed and connectivity to social life.
If the fixed line telephone has brought communication links into the workplace and homes,
the "mobile" puts them straight into the hands of numbers and varieties of individuals.

Varieties of cell phone are sold at present. So, consumers have to choose rationally among
the several alternatives available in the Market. Consumers are making choices of the cell
phone on the basis of perception and preferences. Perception means “a process by which
individuals organize and interpret their sensory impression in order to give meaning to their
environment. Some brands are considered acceptable and suitable over the other brands by
the perceived value of the customers. Preference leads to some level of commitment as
evidence by purchase or intention to purchase. Marketer must study their target customers’
want, preference, perception, characteristics and attitudes of their buyer. There are various
factors that forces customers towards the cell phone product. What make the consumer to
purchase the branded cell phone product; form the part of the study? The income level, age,
profession, price, expectation and gender are the most important factors in selection of the
types of cell phone from the market. Thus, it is not that easy to successfully operate the cell
phone shop under such a competitive business environment. As barrier to entry are relatively
low in the existing market; also there is the trend of increasing number of sellers in the
market.

Dhital (2016) this study is basically concerned with the customer preference of the Cell
phone brands that are available and are traded in Biratnagar. It is the center from where
various local areas of eastern Nepal like Ithari, Dharan, Urlabari, Rajbiraj, Dhankuta etc. are
linked. The shops usually starts at 8 A.M. and runs generally up to 6 P.M. Along with the sale
of cell phone items, the shops has also been selling mobile parts like charger, earphone,
touch, display, mobile cover, etc. Here, the study of cell phone market simply means the
process of selling and distribution of different brands of cell phone items. Of the several
items offered in the market, the present study has selected the cell phone market. Due to the
increase in market demand various brands of cell phone has been available in the market at
present.

The exposure of Biratnagar city towards different cities nationally as well as internationally;
people here are eager to adopt the more attractive types of cell phone. Due to the cross
 3

cultural influence, people do not seem to be as rigid as they were few decades back. This has
shown the green signal for the speedy market growth in the near future.

1.2 Statement of the problem

Today, mobile phones have become an important part of our lives. We cannot imagine our
life in absence of mobile phones. There are number of companies that manufacture mobile
phones. However, consumers always prefer qualitative product that fulfils the needs and
interest of the consumers. Thus, this study is conducted to address the following:

 What brand of mobile phones is preferred in Biratnagar?

 What factors affect the choice of brand?

1.2 Objectives/Purpose of the study

The main objectives of the study are as follows:

 To examine the brand preferences of mobile phones in Biratnagar.

 To identify the various factors affecting the choice of brand.

1.3 Rationale/Significance of the study

Successful marketing of products demand thorough understanding of customer's taste, choice,
preference etc. This study is focused on assessing the buyers in terms of "brand preference".
This study will be significant in the following prospects:

 Findings of the study will help researcher to understand brand preference practices in
cell phone market.
 It will be useful in creating most favorable brand by knowing the buyer perception
and response. Marketers can trace out important reasons for brand preference and can
focus according to choice, perception and preference of buyers.
 Deeper understanding of brand preference of customers can help managers to design
marketing strategy that will concentrate on customers.
 It will be a valuable reference for scholars and researchers to conduct further similar
research.
 4

1.4 Review of Literature

According to Dr. D (2015), as the world is turning into a global village, new products from
abroad are finding their way into the country. The trend of consumption by native people is
changing; becoming more prone to buying foreign and international brands than the local
ones since the advance in communications and information systems technology have shrunk
distance and homogenized the values, fashion preferences and attitudes of the world's
population. It has now been observed that consumers buy foreign brands more frequently
than the local ones and feel proud in purchasing imported goods.

For the research, various literatures were reviewed that were relevant in gathering
information. The basic purpose of the literature review is to investigate the relevant literature
and other available resources to understand it in a wider contest. The overview of literature at
the national and international level is to be researched with the help of research reports,
article, books, and other materials. Literature review helps researcher to avoid duplication of
efforts on the research topic. It also helps researcher in adopting methodologies used
successfully by other researchers. It suggests new approaches in Planning and organizing the
investigation of research topic.

According to Kotler (2013), consumer satisfaction is defined on, “personal feeling of pleasure
resulting from comparing a product’s pursued performance in relation to his or her
expectations”. Consumer attitude measurements are taken on either potential buries or
existing client’s buries in order to identify their characteristics. Consumer’s survey can
provide researcher with a wealth of information, valuable of the marketing function.
Customer satisfaction is one of the main objectives of any organization. Every organization
tries to know how satisfied their customers from their products. In general, satisfaction is a
person’s feelings of pleasure or disappointment resulting from comparing a products
perceived performance in relation to his or her expectations. If the performance is below
expectations, the customer is dissatisfied. If the performance matches the expectations, the
customer is satisfied. If the performance exceeds expectations, the customer is highly
satisfied.

Many companies aim for high satisfaction because customers who are just satisfied still find
it easy to switch when a better offer comes along. Those who are highly satisfied are much
 5

less ready to switch. High satisfaction or delight creates an emotional bond with the brand,
not just a rational preference. The result is high customer loyalty.

According to Dadzie (2011), the study of the researcher were most of the respondent
consumers were aware of mobile phone operator brands despite having come across few
operator service advertisements. Young males, mainly students in the tertiary institutions,
single and of Christian affiliations, dominated the market. Four factors were identified as key
determinants of mobile phone operator service choice, namely promotion, price and
availability of product, attractive packaging and product quality. There is need for mobile
phone operators to incorporate these findings in the formulation of responsive marketing
strategies.

According to Lenhart, Ling, Campbell and Purcell (2010), this study is based on the 2009
Parent-Teen Cell Phone usage Survey which obtained telephone interviews with a nationally
representative sample of 800 teens age 12-to-17 years-old and their parents living in the
continental United States and conducted in 4 U.S. cities in June and October 2009 with teens
between the ages of 12 and 18. The survey was conducted by Princeton Survey Research
Associates International. The interviews were done in English by Princeton Data Source,
LLC from June 26 to September 24, 2009. Statistical results are weighted to correct known
demographic discrepancies.

The research concludes that mobile phone usage and daily text messaging among American
teens has shot up in the past 18 months, from 38% of teen’s texting friends daily in February
of 2008 to 54% of teens texting daily in September 2009. And it's not just frequency – teens
are sending enormous quantities of text messages a day. Half of teens send 50 or more text
messages a day, or 1,500 texts a month, and one in three send more than 100 texts a day, or
more than 3,000 texts a month. Older teen girls ages 14-17 lead the charge on text messaging,
averaging 100 messages a day for the entire cohort. The youngest teen boys are the most
resistant to texting – averaging 20 messages per day. Text messaging has become the primary
way that teens reach their friends, surpassing face-to-face contact, email, instant messaging
and voice calling as the go-to daily communication tool for this age group. However, voice
calling is still the preferred mode for reaching parents for most teens. This research thus
highlights the importance of mobile phone attributes such as text messaging and what
 6

marketers need to consider while developing a brand of mobile phone for the target
customers.

1.5 Research Methodology

For the fulfillment of the above stated purpose of the study, we used the following research
methodology:-

1.5.1 Research Design

The present study has been conducted by using descriptive research design. Descriptive study
design describes data and characteristics of the population in more accurate way. Descriptive
research answer the questions who, what, where, when and how. For this study observational
and survey may be the appropriate method to be used. The main purpose of study is to find
out the mobile brand preferences of respondents inside Biratnagar from various genders, age,
and income level. The research is quantitative in nature. The data collected is analyzed
statistically to interpret findings and results. Primary as well as secondary sources are used.
For primary sources of data, questionnaire was used. For secondary data, various sources like
internet, books, and journals are used.

1.5.2 Population and Sample

The population of the research includes both male and female. Respondents are selected by
random sampling methods. A part from the direct interviewing naturalistic observation
method has also been used. Altogether 100 customers have been selected as the respondents.
And from the elaborative study, the consumers in the market have been observed by the
naturalistic observation which helps to find out the real scenario of the preference.

1.5.3 Sources of Data

The focus of researcher is on the primary as well as secondary data. About 100 respondents
are selected which includes customers that have been present in the cell phone shops.
Similarly, the supportive data has also been obtained from different articles and newspaper as
well as from previously conducted research reports.

1.5.4 Data Collection Method

Data has been collected by using questionnaire method as well as by observing the trends,
likes and dislikes of different brands of cell phone within customers.
 7

1.6 Limitations of the study

The research will have the following limitations:
 The research has been prepared within a span of one month and thus there was limited
time for conducting the research and literature review.
 The age group has been selected above 15 years so as to reduce the response error.
 Opinions of respondents have been taken as a sense of truth which may not be correct.
 Research is limited to within Biratnagar.
 8

CHAPTER II
RESULTS AND ANALYSIS

The collected data has been classified and analyzed by constructing tables and pie-charts.
Simple statistical tools like percentage, ratios, and average will be used to analyze the data.
Based on the analysis of the data, major findings have been presented. The data was collected
by the direct personal interview with the respondents. A set of questionnaire has been
presented for the data collection. Respondents are selected by random sampling method. Here
the respondents are the visitors in different cell phone shops and showrooms located in
Biratnagar. The specific place Biratnagar has taken for data collection. Here, different
customers from the nearby places with different professions are interviewed and presented
below.

2.1 Organizational profile

2.1.1 Brand Profile
Different Brands of mobile Phones available in Nepal
There are many brands of cell phones available in Nepalese market. So far, as contemporary
brands of cell phones or mobile phones is concerned in Nepalese market, Nokia, Samsung,
Blackberry, Motorola, LG, Sony Ericson, iPhone, Vodafone and so on are seen to exist in the
competitive market. Nokia, Samsung, Blackberry, LG, Sony Ericson and iPhone have
secured prominent position in the Nepalese market. With the strong presence of these brands,
many other brands which also exist in the market are facing hard times and the brand war
among these leading mobile brands has provided the Nepalese market with better mobile sets
and variety of features.

Nokia
This is popular brand name for the Nepalese cell phone users. This German cell phone brand
have produced and launched more than 50 brands of cell phones in the world. For example,
some of them are Nokia 1100, Nokia 6680, Nokia 6600, Nokia 7260, and so on. Its price
starts from Rs1500 in Nepal. Main competitors of this brand in Nepal are Samsung, Lava,
and iPhone.
 9

Samsung
Samsung offers a wide selection of powerful and stylish internet-ready Smartphone, which
include Android and Windows mobile devices. It has increased its market share in Nepalese
market due to its affordable range of prices and android applications. It is mostly popular
among the youngsters of Nepal.

Lava
Style meets function with a Lava phone. Lava Android and Windows mobile phones come
with touch screens and high quality cameras as well as all the latest features consumers
would expect in Smart phones making it one of the major competitor in mobile phone
industry across the world as well as in Nepal.

iPhone
The iPhone is a line of smart phones which is designed and marketed by Apple Inc. It runs
Apple's iOS mobile operating system, known as the "iPhone OS". In the recent years it has
gained huge popularity worldwide. In Nepal also iPhone has captured a huge market
especially of the higher income group. It has thus threatened established brands sales such as
that of Nokia and Samsung in Nepali market as well as worldwide.

Others:
Other brands of mobile preferred by consumer of Biratnagar are Micromax, Redmi, Colors,
LG, Huawai, Intex, etc.

2.1.2 Respondent Profile

Among 100 respondents, the numbers of male and female were 56 and 44 respectively.
Respondent age groups from 16-25, 25-30, 30-40 and above 40 are 37, 28, 26 and 9
respectively. Similarly, 40 respondents are single and 60 respondents are married. The
respondents are also classified as brand preferred frequency of purchase, degree of consumer
satisfaction, literacy level, and expectation from the product and so on.
 10

2.2 Data analysis

In this chapter, the information collected from the questionnaire is analyzed as follows:

2.2.1 Distribution by Gender

Table 2.1
Distribution by Gender
Gender Respondents Percentage
Male 56 56%
Female 44 44%
Total 100 100%

Distribution by Gender

44%
56%
Male
Female

Figure 2.1 Distribution by Gender

Interpretation
From the above table 2.1 and figure 2.1, out of 100 respondents the percentage of male
consumer is 56% and female consumer are 44%. This indicates that there are more
preferences of mobile phones among male than that of female.
 11

2.2.2 Distribution by Price Range

Table 2.2
Distribution by Price Range
Price Range Respondent Percentage
Below 10000 06 6%
10000-20000 49 49%
20000-50000 30 30%
Above 50000 15 15%
Total 100 100%

Distribution by Price Range

15
6

Below 10000
10000-20000
20000-50000
Above 50000
30 49

Figure 2.2 Distribution by Price Range

Interpretation
From the above table 2.2 and figure 2.2 it shows that out of 100 respondents 6% likes to
purchase in the range of Rs.0 –Rs.10000, 49% in Rs.10000 – Rs.20000, 30% in Rs.20000 –
Rs.50000, 15% of respondents purchase cell phone of Rs.50000 and above. The data shows
that, there is less number of people who preferred the mobile below Rs.10000, also there is
comparatively less number of people who like to spend more than Rs.50000 for the mobile.
Among the respondents most of them like to spend in the price range of Rs.10000 to
Rs.20000.
 12

2.2.3 Distribution by Income Level

Table 2.3
Distribution by Income Level
Monthly Family Income Respondent Percentage
Less than 25000 25 25%
25000-50000 53 53%
More than 50000 22 22%
Total 100 100%

F
Distribution by Income
22% 25%
i
g
u

Less than 25,000 r

25000-50000 e
More than 50000

53%

2.3 Distribution by Income Level

Interpretation
From the above table 2.3 and figure 2.3, it shows that out of 100 respondents 22% of them
monthly income is less than Rs.25000, 53% of them earn between Rs.25000 to Rs.50000.
Remaining 22% monthly income is more than 50000. Majority of respondent have monthly
income between Rs.25000 to Rs.50000 who purchased various brands of cell phone
according to needs, fashion and requirement.
 13

2.2.4 Distribution by Age Group

Table 2.4
Distribution by Age Group
Age Respondent Percentage
16-25 37 37%
25-30 28 28%
30-40 26 26%
40 above 9 9%
Total 100 100%

Distribution by Age group

9%
37%

26% 16-25
25-30
30-40
40 above

28%

Figure 2.4 Distribution by Age Group

Interpretation
From the above table 2.4 and figure 2.4, the groups of the 100 respondents are classified
according to the age group. The different age groups as below 16-25, 25-30, 30-40, 40 &
above which consists of 37%, 28%, 26%, 9% of respondents respectively. During the
research, it has been found that there is the presence of different age groups of people in the
mob market. Among them, the age group of 16-25 is found comparatively more than other
age groups.
 14

2.2.5 Frequency of buying mobile

Table 2.5
Frequency of buying mobile
Particulars Respondents Percentage
Once a year 4 4%
Twice a year 15 15%
According to change in fashion 37 37%
According to requirement 44 44%
Total 100 100%

F
Distribution by Frequency
i
4% g
15%
u
44% Once a year r
Twice a year
According to change in fashion e
According to requirement

37%

2.5 Frequency of buying mobile

Interpretation:
According to the above table 2.5 and figure 2.5, out of 100 respondents 4% respondents
purchase mobiles once in a year, 15% twice a year, 37% respondents responds according to
the change in fashion. And majority of the respondents i.e. 44% purchases mobiles according
to the requirement. Here, almost ½ consumer purchases according to the requirement. This
shows the presence of rationality among the consumers of mobiles market. Inversely, very
few respondents are seemed to be purchasing every year. Most of the consumers following
the fashion are found to be youth.
 15

2.2.6 Distribution by Literacy Level

Table 2.6
Distribution by Literacy Level
Educational Qualification Respondent Percentage
Up to Intermediate 40 40%
Bachelors 49 49%
Masters and Above 11 11%
Total 100 100%

Distribution by Literacy evel

11%

40%

Up to Intermediate
Bachelors
Masters and Above

49%

Figure 2.6 Distribution by Literacy Level

Interpretation:
According to the above table 2.6 and figure 2.6, 40% of respondent has educational qualification
up to intermediate, 49% of respondent are studying or have completed bachelor and 11% of
customer have completed masters. It means that mobile phone is mostly used by bachelors’
level respondents.
 16

2.2.7 Expectation from the product

Table 2.7
Expectation from the product
Particulars Respondent Percentage
Durability 21 21%
Comfort 15 15%
Style 19 19%
All of these 45 45%
Total 100 100%

Distribution by Expectation
21%

45%
Durability
Comfort
Style
15% All of these

19%

Figure 2.7 Expectation from the product

Interpretation:
According to the above table 2.7 and figure 2.7, the expectation from the product by the
customer can be listed as Durability, comfort, style and all the three options where 21%,
15%, 19% and 45% respondents chooses first, second, third and fourth options respectively.
The figure mobiles that customers are very much cleaver and wants every benefit in the
product brought. Also there is the presence of customers whose focus is on single feature of
the product i.e. only durability, only comfort and only style.
 17

2.2.8 Degree of satisfaction

Table 2.8
Degree of satisfaction
Particulars Respondent Percentage
Satisfied 38 38%
Highly Satisfied 29 29%
Moderate 20 20%
Dissatisfied 11 11%
Highly dissatisfied 2 2%
Total 100 100%

Distribution by Degree of Satisfaction

11%
2%
38%
Satisfied
20%
Highly satisfied
Moderate
Dissatisfied
Highly dissatisfied
29%

Figure 2.8 Degree of satisfaction

Interpretation:
According to the table 2.8 and figure 2.8, out of 100 respondents 38% seems satisfied from
the cell phone they used. 29% are highly satisfied 20% are neither satisfied nor dissatisfied;
they are in moderate form. Similarly, 11% are dissatisfied and 2% seems to be highly
dissatisfied from the cell phone they used. Most of the consumers are found satisfied from the
cell phone they have purchased. So, following the satisfied consumers there is also the
presence of consumers who are neither satisfied nor dissatisfied from the product they
purchase. There is the presence of few highly dissatisfied consumers of the mobile in the
market.
 18

2.2.9 Factor influencing for selection of particular brand

Table 2.9
Factor influencing for selection of particular brand
Particulars Respondent Percentage
Advertisement 30 30%
Reference group 24 24%
Sellers 9 9%
Fashion 37 37%
Total 100 100%

Distribution by Influencing Factors

30%
37%

Advertisement
Reference group
Sellers
Fashion

9% 24%

Figure 2.9 Factor influencing for selection of particular brand

Interpretation:
According to the table 2.9 and figure 2.9 presented above, out of 100 respondents, 30% are
influenced by the advertisement used by the different brands of mobile phones. 24% have
been influenced by the reference group, 9% by sellers and the remaining 37% are fashion
conscious, who tend to move according to the trend and fashion. The brand selection also
seems to be influenced by the reference group. But the influencing factors fashion, sellers,
reference group and advertisement all of these does not seem to be much deviated from the
average.
 19

2.2.10 Preference of Cell Phone Brand

Table 2.10
Preference of Cell Phone Brand
Brand of mobile phone Respondent Percentage
Nokia 12 12%
Samsung 54 54%
iphone 09 9%
Lava 07 7%
Other 18 18%
Total 100 100%

Distribution by Brand
18% 12%

7% Nokia
Samsung
iPhone
Lava
other
9%

54%

Figure 2.10 Preference of Cell Phone Brand

Interpretation:
According to the above mentioned table 2.10 and figure 2.10, out of 100 respondents 54%
prefer Samsung mobile, 12% prefers Nokia mobile, 7% prefers Lava mobile, 9% prefers
iphone. Similarly, Micromax, Redmi, Colors, LG, Huawai, Intex, etc. are preferred by 18%.
This data collection suggests that people prefers Samsung mobile more than any other mobile
available in the market. Similarly, Nokia and iPhone is following Samsung mobile in the
preference list of consumers in the market.
 20

2.2.11 Level of brand loyalty

Table 2.11
Level of brand loyalty
Particulars Respondent Percentage
Brand loyal 23 23%
Not loyal 56 56%
Some times 21 21%
Total 100 100%

Distribution by Brand Loyalty

21% 23%

Brand loyal
Not loyal
Some times

56%

Figure 2.11 Level of Brand Loyalty

Interpretation:
According to the above table 2.11 and figure 2.11, most of the respondents i.e. 56% are not
brand loyal, 23% seems to be brand loyal and the rest 21% are only loyal sometimes
according to the time and situation. More than ½ respondents are not brand loyal; this means
they usually do not purchase the same brand frequently and are brand switchers. Only a small
group of people seems to be loyal for the brand.
 21

2.2.12 Price sensitivity

Table 2.12
Level of price sensitivity
Particulars No. of respondents Percentage
Highly sensitive 63 63%
Moderately sensitive 21 21%
Non- sensitive 16 16%
Total 100 100%

Distribution by Price Sensitivity

16%

Highly sensitive
Moderately sensitive
21% Non – sensitive

63%

Figure 2.12 Level of Price Sensitivity

Interpretation:-
According to the table 2.12 and figure 2.12, most of the people i.e. 63% are highly sensitive
towards the price of the cell phone. 21% are moderately sensitive while the rest 16% are not
sensitive towards the price of the brand. More number of consumers seems to be highly
sensitive towards the price. So, in this situation producers should be very much conscious
while determining the price of product. As far as possible reasonable price with low margin
should be set so that it can grab the market. Similarly, the high increase in price may shift the
consumers to the other brands. So, possible market research and analysis should be
performed while changing the price of mobiles.
 22

2.3 SWOT analysis

Strength
People usually like the product which is readily available whenever required. Similarly, the
mobile should be comfortable enough and is light weight. The basic focus of the designer and
marketer is on the above aspects while designing and manufacturing. Similarly, uniformity is
also required in the cell phone. One of the well-known brands among Nepalese people is
Samsung which is widely available and is available at various price level from low to high.
Low price attracted lots of price sensitive consumers and has its unique position. Similarly,
different new model introduced by Samsung also shows the favorable signal in the market.
The next Brand Nokia mobile producing large number of varieties has done the effort to
cover the every segment of the market. This brand seems to produce something for everyone.
iPhone has made an effort to offer best possible mobile to the customer of standard quality at
comparatively higher price than Samsung and Nokia. Some of the well-established brand
like colors, Redmi, Micromax, Huawai, Intex, etc. are also comfortable, durable, stylish and
attractive. They seem to supply larger varieties with different design and colors.

Weakness
The major drawback of the brands like colors, Micromax, Huawai, Intex, etc. are low quality
and poor performance in comparison with the Samsung brand available in the market. The
resistance capacity also seems to be lower in the Samsung brand than other brands. One of
the brands, iPhone which is one of the least brands of Nepal but is available in the current
market of study, Biratnagar in a very minimal number. Actually that particular brand has
been used especially by those customers whose income is very high.

Opportunities
No doubt Samsung brands are cheaper and easy to use in comparison with other available
brands of mobile. But in spite of this fact emotional attachment has been seen with the
Samsung brands of mobile available in the market in the mindset of respondents. The feeling
to uplift the Samsung brands has been seen among the youths as well as the other customers.
The customer seems to be accepting the cheaper and qualitative Samsung brands in place of
other brands. iPhone are of high quality so everyone would like to use it. High level of Brand
Image shows a sort of Great feeling in the user of the product. Everyone wants to be stylish
 23

and highlighted. So, there seems lots of space for the stylish brands like iPhone, Huawai,
Redmi, etc.

Threats
Since, brands of cell phone like colors, Lenovo , Intex, Micromax, etc. are produced at the
cheaper price as there is always the chance that they can face tough competition with the
other brands like Nokia, Samsung, iPhone, etc. Due to the selection of the certain market
segment by the cell phone like Samsung; they seem to face less command in the overall
market of the mobiles.

Similarly, iPhone, Nokia and Samsung is of high quality which ultimately cost higher price.
So there is always the chance of brand imitation and product duplication. The researcher has
found different facts about the mobile market. The Apple iPhone was copied by Chinese
company and produced duplicate iPhone in the market. Similarly, Samsung mobile model of
duos which is of low quality but stylish and the price starts from Rs.6000-8000 is found in
Rs.4000. Here, the later one is of very low quality and less stylish. Similarly, the same style
of other Samsung mobile has been identified of different qualities and prices in the market.
This seems that there are lots of local industries producing cell phone in the name of foreign
brands. If the low quality and less stylish cell phone are sold at relatively cheaper price than it
is quite okay but if the poor quality product are sold at high price, then it could show the
major impact to the customer. The brand may have to face the serious consequences.
 24

2.4. Findings and Discussion

Findings
The study was based on questionnaire method. The main objective of the research is to
analyze the tastes and preferences of the different bands of cell phone by the consumers of
Biratnagar. Following are the major findings drawn from the study:-
2.1 Out of 100 respondents, 56% are male consumers and 44% are female consumers.
There is relatively less number for the female cell phone user in comparison with
the male.
2.2 49% of people like to spend more than Rs.10000 and less than Rs.20000 to
purchase cell phone at Biratnagar.
2.3 Most number of cell phone users that is 53%of people monthly incomes is
between Rs.25000 and Rs. 50000.
2.4 The most active age group which is 37%of people is found in 16 – 25 years group
2.5 The consumers are found very rational and 44% of them only purchase cell phone
when required
2.6 Most of consumers’ academic qualification is up to intermediate or bachelors
consisting 40% and 49% of total number of people respectively.
2.2.7. 45% of consumer expects the product to be durable, stylish and
comfortable.
2.8 Most of consumers which is 38% out of 100 respondents are found to be satisfied
with the product they purchase.
2.9 Fashion is found to be very influencing factor in brand selection consisting 37%
of total respondents.
2.10. 54% of the customers are found preferring Samsung brand which is liked by most
group of people.
2.11 56% of the consumers are not brand loyal.
2.12 Customers are found highly sensitive regarding the price i.e.63% of total number
of respondents.
Discussions
Following discussions can be done from the research conducted:
 Brand attributes influence the buying decision of people from all age and educational
background.
 Monthly family income of consumers affects the duration they use their mobile brand.
 25

 Users of age group 16-50 mostly prefer wifi and memory card attribute while age
group of 50 above prefer FM/ Radio and wireless Bluetooth hand set attribute in
mobile phone.
 Most of the respondents prefer Samsung while LG mobile brands was found to be
least preferred by youth.
 Most of the youth in Biratnagar possess mobile phone of price range around NRS
25,000 while very few possess mobile brand of price range below NRS 5,000.
 Brand features such as touch pad, wifi, blue tooth hand set and memory card affect
the preference of mobile phone brand.
 Mobile phone usage purpose such as call, camera, memory, etc determines the choice
of brand for the users.
 Both male and female users have similar mobile brand usage duration of 2 years on
average.
 26

CHAPTER III
SUMMARY AND CONCLUSION

3.1 Summary
Mobile phones are an essential element of daily life today. We accept mobile phones as a part
of our everyday lives and an important means of getting in touch with the world around us
despite our busy schedules. The purchase of a mobile phone is an important decision with a
variety of mobile phone brands available to choose from. With the strong presence of
different brands, many of the brand war among leading mobile brands has provided the
Nepalese market with better mobile sets and variety of features.

As the time has moved on, the number of users of mobile phones has increased tremendously.
The use of mobile phone for making phone calls has changed with the introduction of smart
phones and wireless technology. User preference has shifted from using mobile phone merely
as a means of communication to using it as a storage device, getting connect to social media
and conducting business through mobile phones and making lot of money. Male and female
brand attribute preference are different, even age group differences shapes the way they
prefer one brand over others in the market.

There are several brands of mobile phones in the market that offers variety of attributes at
different price ranges for the people. There is high competition among the brands i.e. the
potential and the real competitors. It’s very visible that youths are more inclined towards the
brand with new technologies and new attributes irrespective of their prices.

3.2 Conclusion
Customer satisfaction is expectations, likes, dislike, motivations and inclinations that drive
customer purchasing decisions. These factors complement customer needs in explaining
customer behavior. Customer satisfaction is the subjective (individual tastes) and is measured
by the utility of the various bundles of goods consumed. Customer ranks these bundles of
goods according to the level of utility they obtained from each goods. One can prefer an
Apple I-phone over Samsung mobile phone but only have the financial means to afford
Samsung phone. The preferences are independent of income and prices. Ability to purchase
goods does not determine the customer’s likes and dislikes. They are no doubt dependent
 27

upon culture, tastes, preferences, education and many other related factors. Preferences are
measured in terms of level of satisfaction the customer obtains from consuming various
combinations or various bundles of goods. Consumer makes decision by allocating their
scarce resources over all the possible goods in order to obtain the highest level of satisfaction.
Consumer maximizes their utility subject to their budget. Utility is defined as the satisfaction
that consumer obtains from the consumption of the goods. Utilities determinants are
determined by the host of non-economic factors. Consumer value is measured in terms of the
relative utilities between the goods. These reflect the consumer preference.

The brand name is referred as the product identifying tool which is used since long back.
Every people want to have cell phone which suits them most. So, people would like cell
phone according to the needs, fashion and requirements in different time and situation. The
most popular brands Samsung are thought as luxurious and every people can afford those
mobile phones of different models of different price range. Similarly, the youths are highly
brand conscious and they seem to prefer iPhone along with Samsung which are durable and
more stylish. People always search for new, elegant and innovative product. So, one cannot
say that particular brand available in the market is best. The other brand may be faster in
serving customer and may provide more qualitative and comfortable cell phone at a more
reasonable price. Therefore, consumers are the one who have sole authority for uplifting or
depleting the market share of the brand of mobiles. The place where most of the people are of
middle class having moderate level of income; these peoples usually do not much focus on
the this and that brands. They usually prefer more or less stylish, durable, comfortable, low
cost and qualitative products so that it could last long and is not more expensive. Such people
usually have the feeling of optimum utilization of their limited income. So, they seem to be
less conscious about brand images.

3.3 Action implications

The following aspects should be considered for the better customer satisfaction:
1. Cell Phone manufacturers have to incorporate emotional value and quality on their mobile
because these factors highly influence the purchase of cell phone. Particularly they have
to provide brands that have a novelty features, stylish, fashionable, and reliable and that
fulfill its functional benefits.
 28

2. Because factors that affect brand preference vary based on customers’ personality and
demographic characteristics, cell phone manufacturers have to adopt their products by
consideration of age group and gender since, their feelings are varies on selection of
style, fashion, novelty, reliable, durable and functional benefit and potentially affect
purchase intension and decision.
3. Retailers’ and manufacturers’ promotions have to concentrate on the emotion, feelings,
symbolic characteristics, and perceived status.
 29

BIBLIOGRAPHY
D.D., M. (2015). Brand preference of mobile phones users. International Journal of
Advanced ScientificResearch and Development , 222-226.
Dadzie, A. (2011). Study on Brand preference of mobile phones in kathmandu.
Dhital, M. (2016). Study on brand preference of mobile phones in Kathmandu.
Kathmandu,Academia , 65-71.
Kotler, P. (2013). Customer satisfaction Evaluation. Theseus .
R.C., E. (2013). The American college student cellphone survey. College Student jounal,47 ,
75-81.
Lenhart, A., Ling, R., Campbell, S., & Purchell, K. (2010). Teens and Mobile Phones. Pew
Research Center.
 30

ANNEX 1
CUSTOMER PREFERENCE TOWARDS CELL PHONES
BRANDS IN BIRATNAGAR

This is Sapana Mandal from Merryland College, Biratnagar and I am conducting a small
research on the above topic. The information provided will be kept confidential and will be
used solely for academic research. Your response is highly appreciated.

Section A: Personal Information
1. Gender 2. Age 3. Permanant Address
1. Male 1. 16-24
2. Female 2. 25-30 1. Biratnagar
3. 31-40 2. Outside Biratnagar
1

4Literacy Level 5. Monthly Family

1. Upto Intermediate
/+2
2. Upto bachelors
3. Masters and Above
Income (in NPR)
1. Less than 25,000
2. 25,000-50,000
3. More than 50,000

Section B: About mobile phones

Q6. Which mobile phone you are using? (Tick major one)

1. Nokia
2. Samsung
3. iPhone
4. Lava
5. Others
 31

 Q7. In what Price range does your mobile phone fall?

1. Below 10000
2. 10000-20000
3. 20000-50000
4. Above 50000

Q8. Why did you choose this brand over others?(you can select more than one)

1.Better features
2.Reasonable price
3.Better outlook
4.Catchy advertisement
5.Satisfied friends/peers with the brand
6. Others

Q9. What brand of phone did you previously own? (You can select more than one)

1. Nokia
2. Samsung
3. Lava
4. iPhone
5. Others

Q10. For what purpose do you use your mobile mostly?

1. Call
2. Internet
3. Songs and multimedia
4. Camera
5. Memory
 32

Q11. For mobile phone please tick as per the following attributes:

In your view, it Is Important To Strongly Disagree Neutral Agree Strongly

Have The Following Attributes: Disagree agree
Screen Touch 1 2 3 4 5
Bluetooth Head Set 1 2 3 4 5
Camera 1 2 3 4 5
FM/Radio 1 2 3 4 5
Touch Pad 1 2 3 4 5
Wi-Fi 1 2 3 4 5

Q12. Which is your favourite mobile phone brand?

(Please choose your 3 favourite brands in order of preference from 1- Most favourite to
3-Least favourite)

1 2 3
1. Nokia
2. Samsung
3. Lava
4. iPhone
5. Others

Q13. What is your expectation from the product?

1. Comfort
2. Durability
3. Style
4. All of These