1

CHAPTER 1
INTRODUCTION

1.1 Background
Customer satisfaction is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is the number
of customers, or percentage of total customers, whose reported experience with a
firm, its products, or its services (ratings) exceeds specified satisfaction goals.

Goldstar shoes have been in the business for about 23 years. The product right away
came into limelight especially with the older generation because of its clever design.
Its popularity grew but one thing that did not change off till late was its impression,
the impression that it’s simply functional but not fashionable. Goldstar keeps growing
its production capacity. Today, the brand has authorized resellers in Australia,
Malaysia, India and counting. It spoke to all, the rich and the poor cross breeding
through all groups. The technology made it possible to produce quality products at
low prices. A product that does not rely on expensive advertisement for
sales, GoldStar did not need a marketing plan because it had good shoes. Today,
Goldstar has set a benchmark in the footwear industry that other brands strive to meet.

Goldstar shoes have been providing shoes at all types so that customers from all age
groups can wear it. It sells the shoes in different prices so that rich as well as poor
people can wear its products. A nowadays Goldstar shoe is also providing fashionable
footwear so that its customers can fully enjoy the new design and wear new types of
shoes. Goldstar shoes are also introducing variants that fit the needs of various
consumer groups: ladies, kids, teenagers, sportspersons, athletes, and more. Today,
GoldStar has become a regional name.
 2

1.2 Statement of the Problem

Goldstar has been providing shoes in various designs. It provides shoes to all rich and
poor, to people from every age group. But still since it's not quite fashionable not
every of its customers are satisfied. The shoes are functional and can be bought at
different prices but not being fashionable is a great disadvantage. In the modern era,
people look for different designs and fashions to make their shoes different from
others. Due to this Goldstar has been trying to make their shoes more fashionable to
satisfy their customers.

Goldstar shoes have been providing its products in new designs. But since it is
cheaper than other shoes, people feel embarrassed for wearing cheap shoes. Due to
this not all customers may buy Goldstar shoes. New design, pricing strategy, as well
as distribution strategy are some of factors satisfying the customers. This reality, then
raises a question how the other customers of Goldstar shoes are satisfied or not?

Some of the research questions are given below:

1.3 Research Questions

1) Whether the customers are satisfied from new designs in the shoes?
2) What are the factors leading to customer satisfaction of Goldstar
Shoes?
3) What can be done to increase customer motivation in buying Goldstar
shoes?

1.4 Objectives of the Study

1) To find out whether customers are satisfied or not.
2) To find out how customer satisfaction can be increased from new
designs.
3) To analyze whether the price has affected customers’ satisfaction.
 3

1.5 Literature Review

Tauber (1972) states that customer reasons for shopping: personal motives, social
motives, and impulse buying. Personal motives are personal reasons for buying a
commodity. Anybody who wants to wear matching shoes has his/her personal motives
social motives are desires that are influenced due to the abundance of a commodity in
society. Any person who wants to get matching shoes for their clothing prefers to buy
core shoes as they are in fashion (socially). Impulse motives are intense feelings of
desire regarding any particular commodity; matching core shoes are in fashion and the
desire to buy shoes, from Borjan especially that is impulse buying.

Footwear is important because it is customized according to the needs of the

customer, and it is a need of the times to give priority to the customer. Such behavior
can only highlight the good reputation of a company. It is evaluated from many
studies that repurchase behavior is a sign of loyalty (Bolton, 1998; Bolton and Lemon,
1999; Kalwani and Silk, 1982; Mittal and Kamakura, 2001; Morwitz and Schmittlein,
1992). Customization not only relates to the best fitting pair of shoes, there are many
more factors that are also important.

Rust and Oliver (1994) stated that if the price was too high and a service is of a good
quality, then customers rated it as a poor value service. Heskett et al. (1997) found
that high value was not necessary associated with low prices, because services with a
high perceived value may in fact have high or low prices. When perceived value
increases, maybe customers will stay loyal and have increased expectations, whereas
a decrease in value will result in customers being more receptive to competitors’
marketing (Grönroos, 2000).

The emphasis of this study is on Pakistani shoe stores ‘Ehsan Chapal Store’ (ECS),
‘Borjan’, ‘Stylo’, ‘Raja Rani’, ‘Bata’, and ‘service’. They are facing some problems
regarding customer satisfaction due to frequent changes in fashion. People want the
latest designs and other factors also come into play. They are offering best designs
just according to new trends, but some issues are creating hurdles. They are trying to
minimize these by providing after sales services, yet the problem exists. In this
context, all relevant aspects are discussed, particularly major factors regarding some
sort of dissatisfaction in the mind of consumers. The study aims to bridge the gap
between marketers and customer satisfaction of footwear consumers on the eastern
side of Pakistan.

Keller (1993), Lassar et al. (1995) held the opinion that brand equity came from the
customers’ confidence in a brand. The greater the confidence they place in the brand,
the more likely they are willing to pay a high price for it [18]. Specifically, this
confidence stems from five important considerations: first, the brand performs its
functions as designed; second, the social image is associated with purchasing or
owning the brand; third, consumers’ recognition and sentimental attachment with
brand; fourth, the balance between the brand’s value and its functionalities; fifth,
consumers trust in the brand. Netemeyer et al. (2004) also approved the dominant
impact of brand equity on customer response toward the branding campaign.
 4

The fashion adoption process, described in fashion adoption theory, contains three
main variables, as reported in Gam (2010) and Sproles (1979). These are pre-existing
conditions, directing influences on consumer choice and use of fashion, a central
channel of consumer decision making. Pre-existing conditions; anybody who is
fashion conscious and looking for the appropriate option to adopt or purchase.
Fashion marketers focus on such customers as their target market as they are leaders
in adoption. Fashion leaders have more interest in fashion, search for more fashion-
related information, and spend more money, shop more habitually, and strive to wear
more new fashion items than others (Bertrandias and Goldsmith, 2006; Goldsmith et
al., 1991).

1.6 Theoretical Framework

Independent Variables Dependent Variables

 Price  Satisfaction
 Quality  Motivation
 Design
 Flexibility
 Income
 5

1.7 Research Methodology

Research Methodology refers to the logical sequences of the research, the research
methods and the instruments used. It includes the choice of the research design to be
used, the choice of data collection method and research tools to be used and
procedures of data analysis and method used.

1.7.1 Research Design

Research design refers to the overall strategy that we choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring we will
effectively address the research problem; it constitutes the blueprint for the collection,
measurement, and analysis of data. Research question is one of the first methodology
steps the investigator has to take when undertaking research. The research question
must be accurately and clearly defined. Choosing a research question is the central
element of both quantitative and qualitative research and in some cases it may precede
construction of the conceptual framework of study.

This research follows qualitative research design therefore, a qualitative study seeks
to learn why or how, so writer’s research must be directed at determining the what,
why and how of the research topic. Therefore, when crafting a research question for a
qualitative study, the writer will need to ask a why or how question about the topic.

1.7.2 Sources of Data Collection

This project work is based upon the primary data. Primary data is collected and
analyzed from the customers of Kathmandu valley in order to explore customers
buying behavior of Goldstar shoes. Primary data were collected by formulating
structure questionnaire which contains multiple choices, tick mark and rankings.

1.7.3 Data Collection

There are various methods of collecting primary data. The methods applied for this
study was questionnaire.

Questionnaire
At first, a formal list of questions to be asked which was prepared to gather response
from the respondents on a given topic. Then they were prioritizing according to the
importance of the question. Similarly questionnaire was prepared for the purpose of
survey to obtain the data.
 6

1.7.4 Data Analysis Tools and Techniques

The data were collected from primary sources. They are further examined in relation
to the objectives.

 Table
o A table is the combination of rows and columns that arranges the data
in a systematic order. Database excel are made of tables which are the
most important tools and techniques of data analysis.

 Chart
o A chart can be the graphical representation of data. They are also the
tools of analysis of data. There are many types of charts like graphs,
bar graphs, pie charts, etc.

 Mean
o The mean is average of the numbers. To calculate it: add up all the
numbers divide it by how many numbers are there.

1.5 Limitations of the Study

 Especially this research is concerned with satisfaction of customers from
Goldstar shoes’ the findings may not be applicable to customer satisfaction
from other types of shoes.

 It has geographical limitations as the respondents are only from Kathmandu

valley so it may not be cent applicable in other geographical and
demographical context.
 7

CHAPTER II - DATA ANALYSIS AND MAJOR FINDINGS

2.1 Data Presentation and Analysis

In this chapter, satisfaction of customers from Goldstar shoes is analyzed by preparing
different charts from the data which are directly extracted from the questionnaire.

The respondents were requested to fill up the questionnaire to gather information.

Responses were classified as follows:

Table 2.1
Age Group
Percent Frequency
Below 20 16.67% 10
20 - 39 46.67% 28
40 - 59 23.33% 14
60 and 12.33% 8
above

Among the 60 respondents 10 respondents are below the age of 20 years. 28

respondents are from the age group of 20 to 39. 14 belong between 40 to 59 and 8
respondents are 60 and above. The above table shows almost half of the respondents
are between the age of 20 to 39 years old.

Table 2.2
Gender
Percent Frequency
Male 53.33% 32
Female 47.67% 28
Total 100% 60

This chart shows among the total of 60 respondents 53.33% were male and the rest
female with 47.67%.
 8

Table 2.3
Price of Goldstar Shoes

Percent Frequency
Yes 73.33% 44
No 26.67% 16
Total 100% 60

Price Satisfaction

Yes
No

Fig:1 Price Satisfaction

This chart shows that about 73.33% of respondents are satisfied with the price of
Goldstar shoes and only about 26.67% are not satisfied with its price.
 9

Table 2.4
Quality of Goldstar Shoes

Percent Frequency
Excellent 53.33% 32
Satisfactory 33.33% 20
Average 13% 8
Total 100% 60

Quality Satisfaction

Excellent
Satisfactory
Average

Fig:2 Quality Satisfaction

From the above pie chart we can conclude that the quality of Goldstar Shoes. 53.33%
of the respondents believe its quality is excellent. 33.33% believe the quality provided
by Gold Star Shoes is satisfactory. And 13.34% think its average.
 10

Table 2.5
People perception on quality on the basis of price

Percent Frequency
Good 56.67% 34
Poor 16.67% 10
Average 26.66% 16
Total 100% 60

People Perception
60.00%

50.00%

40.00%

30.00%
People perception

20.00%

10.00%

0.00%
Good Poor Average

Fig:3 People's Perception

If the quality of Goldstar Shoes were to be measured on the perception of people on the
basis of its price, 56.67% of respondents voted on its quality is good. 16.67% of people
think the quality is bad and 26.66% believe its average.
 11

Table 2.6
Current use

Percent Frequency
Yes 76.67% 46
No 23.33% 14
Total 100% 60

Current use

Yes
No

Fig:4 Current Use

In the given figure it shows that 76.67% of respondents are still using Goldstar Shoes
and the remaining 23.33% are not.
 12

Table 2.7
Comfort provided by Goldstar Shoes

Percent Frequency
Excellent 26.67% 16
Good 50% 30
Average 23.33% 20
Total 100% 60

Comfort

50.00%
45.00%
40.00%
35.00%
30.00%
25.00% Comfortness
20.00%
15.00%
10.00%
5.00%
0.00%
Excellent Good Average

Fig:5 Comfort

This graph shows 26.67% of people believe that the comfort provided by Goldstar
Shoes is excellent. Half of the people believe it’s good and the remaining believe it as
average with the votes of 23.33%.
 13

Table 2.8
Know about Goldstar Shoes

Percentage Frequency
Friends 20% 12
Advertisement 30% 18
Social Media 30% 18
Depatrmental 20% 12
stores
Total 100% 60

Percentage

Friends
Advertisement
Social Media
Depatrmental stores

Fig:6To know about Goldstar shoes

This pie-chart shows 20% of people heard about Goldstar Shoes from friends. 30%
from advertisement and another 30% from social media. The remaining respondents
20% from department stores.
 14

Table 2.9
New Designs in the Market

Percent Frequency
Yes 53.33% 32
No 20% 12
Maybe 26.67% 16
Total 100% 60

New Designs

Maybe

No New designs

Yes

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Fig:7 New Designs in Market

In this bar-graph 53.33% of people believe Goldstar is bringing new designs in its shoe
products. 20% of people don’t believe it. And the remaining 26.67% of people don’t
know about it.
 15

Table 2.10
Rating on the Design of Goldstar shoes

Percent Frequency
Satisfactory 23.33% 14
Good 43.34% 26
Average 20% 12
Dissatisfactory 13.33% 8
Total 100% 60

Designs

Satisfactory
Good
Average
Dissatisfactory

Fig:8 Rating on the Designs

In this figure 23.33% of people believe that the designs of Goldstar shoes are
satisfactory. 43.34% believe its good, 20% think it is average. And the remaining
13.33% think Goldstar shoes designs are dissatisfactory.
 16

Table 2.11
Reasons for being Suitable

Reasons Mean ( out of 5 ) WACC

Affordable 2.69

Ranking
Comfortable 2.60

15.7
Stylish 2.82

Quality 3.26

Flexible 3.39

The table shows that most of the respondents think Goldstar shoes is flexible which is
why it is more suitable for them. Out of 5 flexibility got the highest rating of 3.39,
whereas comfortable got the lowest rating of 2.6 points.
 17

Table 2.12
Overall Performance

Percent Frequency
Satisfactory 36.67% 22
Good 46.67% 28
Average 16.66% 10
Total 100% 60

Performance

50.00%
45.00%
40.00%
35.00%
30.00%
Series 1
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Satisfactory Good Average

Fig: 9 Overall Performance

This graph shows the overall performance of Goldstar shoes. 36.67% voted the overall
performance is satisfactory, 46.67% voted as its good and the remaining voted on
average with 16.66%.
 18

2.2 MAJOR FINDINGS

 Among the 60 respondents most of them are at the age group between 20 – 39
years old and least are from age 60 and above.

 53.33% of the respondents were male and the rest female with 47.67%.

 About 73.33% of respondents are satisfied with the price of Goldstar shoes
and only about 26.67% are not satisfied with its price.

 53.33% of the respondents believe its quality is excellent. 33.33% believe the
quality provided by Gold Star Shoes is satisfactory. And 13.34% think its
average.

 If the quality of Goldstar Shoes were to be measured on the perception of

people on the basis of its price, 56.67% of respondents voted on its quality is
good. 16.67% of people think the quality is bad and 26.66% believe its
average.

 76.67% of respondents are still using Goldstar Shoes and the remaining
23.33% are not.

 20% of people heard about Goldstar Shoes from friends. 30% from
advertisement and another 30% from social media. And the remaining
respondents 20% from Department stores.

 53.33% of people believe Goldstar is bringing new designs in its shoe

products. 20% of people don’t believe it. And the remaining 26.67% of people
don’t know about it.

 23.33% of people believe that the designs of Goldstar shoes are satisfactory.
43.34% believe it’s good, 20% think it is average. And the remaining 13.33%
think Goldstar shoes designs are dissatisfactory.

 The table shows that most of the respondents think Goldstar shoes is flexible
which is why it is more suitable for them. Out of five points flexibility got the
highest rating of 3.39, whereas comfortable got the lowest rating of 2.6 points.

 The overall performance of Goldstar shoes shows that 36.67% voted the
overall performance is satisfactory, 46.67% voted as its good and the
remaining voted on average with 16.66%
 19

CHAPTER III - SUMMARY, CONCLUSIONS AND

RECOMMENDATIONS

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 major findings regarding customers’ satisfaction from
Goldstar shoes. Finally, this chapter ends with the scope of the future research in the
same field.

3.1 Summary
Among the various brands of shoes, Goldstar shoes is a Nepalese brand which came
into limelight especially with the old people because of its clever designs. The
Goldstar shoes are quite comfortable and flexible, but its impression on not being
fashionable did not change. Since not being fashionable, not much of teenagers buy
the shoes.

In the current world, there is huge competition in the market. Even though there is
low price and quality product in the market, the products may not be liked by the
customers. Many customers look for designs. The teenagers mostly care about designs
rather than price or quality, due to this I did not found many of the teen respondents.
In the competitive market either the brand makes a huge profit or are forced to close.
In the case of Goldstar shoes there are ¾ of the customers who are using the shoes
among who have all used it at least once. And about half of the people don’t know if
new designs are brought into market or not. So what could be the major factors
influencing customers to buy Goldstar shoes and how are they satisfied from it?

By mentioning above research gap study has conducted with the objectives of
examining the major influencing factors. The more specific objectives are: to examine
overall influencing factor which motivates in customer satisfaction from buying the
shoes.

The study is completely based on primary data which is collected by distributing

structured questionnaire to 60 sample units through non probability sampling
technique. The independent variables are price, quality, design, flexibility and
comfortable. And the dependent variables are satisfaction and motivation.

The second chapter demonstrated the data and the analysis of the results and overall
satisfaction of customers’ from Goldstar shoes. The last chapter deals with summary,
conclusion and recommendations.
 20

3.2 Conclusion
The key conclusion of this study is that people are neither satisfied nor dissatisfied
with the designs of Goldstar shoes. About half of the customers don’t know if the
Goldstar shoe is bringing products with new fashion and designs or not. None of the
customers are dissatisfied with the overall performance of Goldstar shoes. Most of the
respondents have rated the highest in the shoe being flexible. From the study the
shoes are becoming quite fashionable for the customers to buy since the stylish is in
the third place in the ranking.

3.3 Recommendation
Through the analysis of the report, I found that the customers are satisfied with the
overall performance of Goldstar shoes. So for the better improvements and to make
the customers fully satisfied following points are recommended.

 More new designs should be brought into the market.

 People should be made aware about the new features with new improvements
in the products which are brought into the market.
 21

REFERENCE

Bertrandias, L. and Goldsmith, R.E. (2006) ‘Some psychological motivations for

fashion opinion leadership and fashion opinion seeking’, Journal of Fashion
Marketing & Management, Vol. 10, No. 1, pp.25–40.

Kalwani, M. and Silk, A.J. (1982) ‘On the reliability and predictive validity
ofpurchase intention measures’, Marketing Science, Summer, Vol. 1, No. 2,
pp.243–28

Keller, K.L. (1993) Conceptualizing, Measuring, and Managing Customer-Based

Brand Equity. Journal of Marketing, 57, 1-22.

Lassar, W., Mittal, B. and Sharma, A. (1995) Measuring Customer-Based Brand

Equity. Journal of Consumer Marketing, 12, 11-19

Mittal, V. and Kamakura, W.A. (2001) ‘Satisfaction, repurchase intent and repurchase
behavior: investigating the moderating effect of customer characteristics’,
Journal of Marketing Research, Vol. 38, No. 1, pp.131–142.

Morwitz, V.G. and Schmittlein, D. (1992) ‘Using segmentation to improve sales

forecasts based on purchase intent: which ‘intenders’ actually buy?’, Journal
of Marketing, November, Vol. 29, No. 4, pp.391–405

Netemeyer, R.G., Krishnan, B., Pullig, C., Wang, G.P., Yagci, M., Dean, D., Ricks, J.
and Wirth, F. (2004) Developing Y. Zhang 62 and Validating Measures of
Facets of Customer-Based Brand Equity. Journal of Business Research, 57,
209-224.

. R.T. Rust, and R.L. Oliver, “Service quality: insights and managerial implications
from the frontier”, in Rust, R.T. and Oliver, R.L. (Eds), Service Quality: New
Directions in Theory and Practice (Sage, Thousand Oaks, CA, 1994)

Saeed, M. and Baig, A.K. (2013) ‘Fashion effects on customer satisfaction: an

analysis of the Pakistani shoe industry’, Int. J. Social Entrepreneurship and
Innovation, Vol. 2, No. 1, pp.52–66.
 22

APPENDICES
As a respondent to my questionnaire I want you to help me by filling up this
questionnaire. I assure you that your secrecy will be maintained and the data will be
solely used for this research only.

1. Please mention your age group

a) Below 20 ( ) b) 20 - 39 ( ) c) 40 - 59 ( ) d) 60 and above ( )

2. Gender

a) Male ( ) b) Female ( ) c) Others ( )

3. Are you satisfied with the price of Goldstar shoes?

a) Yes ( ) b) No ( )

4. What do you think about the quality of Goldstar shoes?

a) Excellent ( ) b) Satisfactory ( ) c) Average ( ) d) Dissatisfactory ( )

5. What is your perception about the quality of Goldstar shoes on the basis of its
price?

a) Good ( ) b) Poor ( ) c) Average ( )

6. Are you using Goldstar shoes currently?

a) Yes ( ) b) No ( )

7. How do you feel about the comfort provided by Goldstar shoes?

a) Excellent ( ) b) Good ( ) c) Average ( ) d) Poor ( )

8. How did you come to know about the Goldstar shoes?

a) Friends ( ) b) Advertisement ( ) c) Social media ( ) d) Departmental store ( )

 23

9. Do you think Goldstar shoes are bringing new designs in the market?

a) Yes ( ) b) No ( ) c) Maybe ( )

10. How will you rate the design of Goldstar shoes?

a) Excellent ( ) b) Good ( ) c) Average ( ) d) Poor ( )

11. How will you rate the overall performance of Goldstar shoes?

a) Satisfactory ( ) b) Good ( ) c) Average ( ) d) Dissatisfactory ( )

12. For what reason Goldstar shoe is suitable to you? (Please rank 1 for most
important, 2 for second most and so on)

a) Affordable ( )

b) Comfortable ( )

c) Stylish ( )

d) Quality ( )

e) Flexible ( )

13. How will you rate the design of Goldstar shoes?

a) Excellent ( ) b) Good ( ) c) Average ( ) d) Poor ( )

11. How will you rate the overall performance of Goldstar shoes?

a) Satisfactory ( ) b) Good ( ) c) Average ( ) d) Dissatisfactory ( )