CONSUMER PREFERENCE FOR GOLDSTAR SHOES IN

KATHMANDU VALLEY

BY
Anusha Karki
Reg. No. : 7-2-25-206-2018
Symbol no: 21974/18

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University
In Partial Fulfillment of the requirements for the degree of

Bachelor in Business Administration

at the
Nepal Commerce Campus
Tribhuvan University

New Baneshwor
Feb,2023
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 TABLE CONTENTS
1.1 Context Information……………….3
1.2 Purpose of the Study……………….4
1.3 Significance of Study………………4
1.4 Literature Review ………………….5
1.5 Research Methodology……………...6
1.5.1 Research Design…………………...6
1.5.2 The Study Population……………….6
1.5.3 Sample Size……………………….....7
1.5.4 Sampling Method…………………….7
1.5.5 Sources of Data ……………………...7
1.5.6 Data Collection Instrument……………7
1.5.7 Data Analysis Tools……………………7
References……………………………………8

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 INTRODUCTION

1.1 Context Information

Footwear refers to wearing things that people put on their feet for safety, pride or fashion
purpose. It includes shoes, boots, slippers, sandals etc. Many national and international footwear
brands with variety of options are available in the Nepalese markets. The demand for the
footwear among the Nepalese consumers is increasing with the changing fashion and increasing
purchasing power. At the same time the domestic production capacity is also increasing in order
to meet the demand from the consumers. The producers estimates that over 5,00,00,000 pairs of
Nepalese footwear were produced yearly. Footwear Manufacturer’s Association of Nepal
(FMAN) envisions that by 2020 the annual Nepalese footwear production will increase up to 45
million to cover domestic market by 80% and export annual volume over 12 million pairs with
diverse destinations and increasing number of exporting companies which is able to make
narrowing trade deficit of footwear up to 60% in terms of volume and 240% in terms of value.
At the same time, FMAN expects to increase employment opportunity up to 120,000 employees
and decrease dependency on Indian work force from existing 30% to 10%.

The industry was established as proprietorship firm in 1970 A.D. with its corporate office &
factory in Maharajgunj, Kathmandu, is now converted into Pvt LTD Company. It has its factory
in Dhumbarahi Marg . Goldstar Shoes Industry, with a history of more than 17 years, is the No 1
footwear brand of Nepal on the basis of its goodwill, image & sales amount in the country
among the production units established in Nepal. The market for Goldstar Shoes Industry is
growing. According to the company, it is producing 1500 shoes pair per day and have the
production capacity of 5000 per day. The industry producing only men’s casual shoes in the days
of its establishment has now started producing complete men’s wear as well as ladies sandal &
shoes. Goldstar Shoes Industry is only the shoes manufacturing industry in Nepal that is
producing shoes with the one of semi-automatic modern machine. The establishment is
providing employment to more than 4000 people directly or indirectly throughout the country.

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1.2 Purpose of the Study
The main purpose of the study is to analyze the consumer preference towards Goldstar Shoes in
Kathmandu valley. The other specific objectives are as follows:

i. To analyze the footwear market for local footwear industries.

ii. To know the reasons behind increasing the demand for Goldstar Shoes.
iii. To know the consumers’ attitude towards the price, quality, durability, etc of Goldstar
Shoes.
iv. To look if there was a difference among the age groups in their preference.
v. To know the level of competitiveness of Goldstar Shoes both at national and international
level.
vi. To know the strengths and weaknesses of Goldstar Shoes.
vii. To know the challenges and opportunities of Goldstar Shoes.
viii. To measure the influence of internal and external environmental factors.

1.3 Significance of Study

The study of the research has following significances:

i. It helps the concerned company to identify the customer’s preference, taste, and choice.
ii. It can also help marketing department to segment the market and implement proper
marketing strategies.
iii. It encourages concerned company to improve the product to meet the changing demand
of consumers.
iv. It awarness consumers to select the best product.
v. To serve as a reference material for both academicians and practitioners.
vi. To initiate other interested researchers to carry out more extensive studies in the area.

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1.4 Literature Review
The product purchase decision is not always done by the user. The buyer necessarily purchases
the product. Marketers must decide at whom to direct their promotional efforts, the buyer or the
user. They must identify the person who is most likely to influence the decision. If the marketers
understand customer behavior, they are able to predict how customers are likely to react to
various informational and environmental cues, and are able to shape their marketing strategies
accordingly (Kotler, 1994).

Schiffinan and Kanuk (2004) define customer’s behavior as the behavior that the customers
display in searching for purchasing, using, evaluating and disposing of products and services that
they expect will satisfy their needs. Customer buying behavior incorporates the acts of
individuals directly involve in obtaining, using and disposing of economics goods and service
including the decision process that precede and determine these acts.

It is important for organizations to have an understanding of consumer behaviour and purchasing

habits in order to formulate a marketing strategy to target the relevant groups (Solomon, 2007).
Moreover, Solomon (2007) describes that each company is oriented to a different segment of
consumers and it is just necessary to choose a proper approach, capable to attract and sustain
desirable attention.

Furthermore, Solomon (2007) claims that people are also under influence by their closest
surrounding which includes friends, family, co-workers or classmates. A group of people sharing
the same interests may be also taken under consideration as a potential influencing element. This
person-specific group is called “reference group” (Solomon, 2007, p.5). An individual, either
knowingly or unconsciously, subordinates his/her choices according to this group and often
waiting for their approval (Solomon, 2007).

Despite all this information, Solomon (2007) points out that it is hard to state, what lead
customers to choose a particular brand. However, some rational explanations may be found.
Each person concentrates on a different aspect of a product. Sometime it is a product’s
appearance, attractive colour, extraordinary shape or exceptional quality. Final choice reflects

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person’s desires and the inner feelings and highlights, how an individual expresses him/herself in
a public.

The disparities in the behaviour may come from cultural, gender, age, ethnic, occupation or
income differences but also customer´s interests and habits may play a role in a decisions making
process (Solomon, 2007). However, Solomon (2007) states that in some cases similarities may
be found within the category. On the other hand, he agrees with Peter and Oslon (2010) who
state that people´s buying behaviour, preferences and desires are changing all the time so it is
necessary to keep up and constantly adjust marketing strategy.

1.5 Research Methodology

The methodology refers to the procedural framework within which the research is conducted.
This section shows how the research was conducted. It includes how data was collected, what
instruments were employed, how the instruments were used and the intended means for
analyzing data collected. This section is made up of the following:

1.5.1 Research Design

In this research, Descriptive research design is used. Descriptive research designs help to provide
answers to the questions of who, what, when, where, and how associated with a particular
research problem; a descriptive study cannot conclusively ascertain answers to why. Descriptive
research is used to obtain information concerning the current status of the phenomena and to
describe "what exists" with respect to variables or conditions in a situation.

1.5.2 The Study Population

Entire consumers of Goldstar Shoes of different age group are population for the study. It
includes all the population demography for the data collection. The questionnaires are distributed
to students, employees, business persons, aged persons and other professionals. I provide online
as well as printed questionnaires to above demographic population because these population
groups are the major buyer of Goldstar Shoes.

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1.5.4 Sampling Method
Under this study non probability sampling method i.e. convenience sampling is used as samples.
It is taken as per my convenience. I used random sampling. In simple random sampling each
member of population is equally likely to be chosen as part of the sample

1.5.5 Sources of Data

Both primary and secondary sources of data were collected for the study in this research project.
The findings of research are based upon the primary survey. The data was collected by
formulating a set of questionnaire and the well designed questionnaire was distributed to the
respondents. So the findings are totally based on the data and facts provided by the sampled
respondents. The secondary data was also used from various sources such as internet, books
newspapers, journals, articles so that it would be easy to formulate research problems and
research questions.

1.5.6 Data Collection Instrument

Data collection instruments are the tools for collecting data. In this research, Questionnaire,
Interview, Observation, reading articles and magazines and others were used to collect data. The
help of Google Docs is also taken for the purpose distributing questionnaire and collecting
responses through Internet. The most reliable instrument will be used according situation and
necessity.

1.5.7 Data Analysis Tools

The statistical tools such as Percentage, Tables, Central tendency, Bar-diagram and Pie charts are
used for the analysis of the data. The help of Computer Software, Microsoft Excel, is taken for
creating charts, diagram, tables, etc.

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 REFERENCES
Books References

Kotler, P. (1994). Marketing Management: Analysis, Planning, Implementation, and Control (8th
ed.). Upper Saddle River, NJ: Prentice Hall.

Schiffman, L. G., Kanuk, L. L. (2004). Consumer behaviour (8th ed.). Upper Saddle River, NJ:
Prentice Hall.

Solomon, M. R. (2007). Consumer behaviour : a European perspective (3rd ed.). Harlow,

England: Pearson Education Limited.

Solomon, M. R. (2010). Consumer behaviour : a European perspective (4th ed). Harlow,

England: Pearson Education Limited.

Peter, J. P. and Oslon, J. C. (2010).Consumer behaviour & marketing strategy (9th ed.). Boston :
McGraw-Hill.

Web References http

https://www.goldstarshoes.com/

http://www.fman.org.np/overview.php

https://thehimalayantimes.com/business/brands/made-in-nepal/

https://glocalkhabar.com/business/b-national/domestic-footwear-industry-flourishes/