Summer Project Final

FACTOR INFLUENCING CUSTOMER LOYALTY
TOWARDS COMPUTER BRANDS

IN KATHMANDU VALLEY
BY
Manju Pandey
Symbol no: 16179/15
T.U. registration no: 7-2-0025-1119-2015
A summer project submitted to:

Faculty of Management, Tribhuwan University
In the partial fulfillment of the requirement for the degree of

Bachelor of Business Administration
At the
Nepal Commerce Campus
Tribhuwan University
New baneshwor, Kathmandu
April 2019
Letter of approval
The Summer project entitled “Factors influencing customer loyalty towards computer
brands.” has been submitted by Manju Pandey for final examination to the faculty of
management, Tribhuwan University, in the fulfillment of the requirement for the degree of
BBA. The research committee of this campus has found this project report satisfactory in
scope and quality and has therefore forwarded for examination.
………………..
Signature
Assoc. Prof. Prakash Neupane
Chairman
BBA research Committee
i
STUDENT DECLARATION
This is to certify that I have completed the Summer Project entitled “Factors
influencing customer loyalty towards computer brands.” under guidance of Mr.
Rajeshwor Neupane me in partial fulfillment of the requirement for the award of
Bachelor in Business Administration degree at Faculty of Management, Tribhuwan
University. This is my original work and I have not submitted it earlier elsewhere.
………………
Signature
Manju Pandey
Date:
ii
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the Summer Project entitled “Factor influencing customer
loyalty towards computer brands.” is an academic work done by Manju Pandey
submitted for the partial fulfillment of the requirements of Bachelor of business
administration at Faculty of management , Tribhuwan University under my guidance
and supervision. To the best of my knowledge, the information presented by him/her in
the summer project report has not been submitted earlier.
………………….
Signature of the Supervisor
Name: Rajeshwor Neupane
Designation:
Date:
iii
ACKNOWLEDGEMENT
In the course of preparation of this project, number of people have helped me with their
assistance and guidance to make this project work report possible. I hope that this
project will serve as a useful reference material for all students who want to conduct
research on similar topic or the same topic.
I would like to express my sincere thanks to my respected supervisor Mr. Rajeshwor
Neupane for his valuable time, continuous guidance, inspiration and encouragement
throughout the entire period of the study. Similarly, I would like to express my sincere
gratitude to Nepal Commerce Campus for providing me an opportunity to explore my
abilities through this project.
Furthermore, I would like to express my deepest appreciation to all my friends and
fellow respondents who took part in this research by providing the primary data for
making this project comprehensive and possible.
Similarly, I would like express my gratitude towards my seniors, colleagues and
authorities of Nepal Commerce campus for their support, valuable suggestions and
resources provided for research work without which knowledge and assistance of this
study would have not been successful.
Finally, I would like to thank my family, friends and well-wishers for their immense
support throughout the project work. However, I accept the sole responsibility for any
errors and discrepancies that might have occurred in this report.
Thank you!
Manju Pandey
Nepal Commerce Campus
iv
List of Abbreviations
PC = Personal computer
No. = Number
CL = Customer loyalty
PF = Price fairness
CS = Customer satisfaction
BF = Brand features
PBQ = Perceived brand quality
HWF = Hardware functionality
Avg = Average
i.e = That is
SPSS = Statistical Package for the Social Sciences
SA = Strongly Agree
SD = Strongly disagree
F = Frequency
S.D. = Standard Deviation
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Contents
Letter of Approval.........................................................................................................................i
STUDENT DECLARATION.......................................................................................................ii
CERTIFICATE FROM THE SUPERVISOR...........................................................................iii
ACKNOWLEDGEMENT...........................................................................................................iv
List of Abbreviations....................................................................................................................v
List of Tables...............................................................................................................................vii
List of Figures............................................................................................................................viii
EXECUTIVE SUMMARY.........................................................................................................ix
Chapter 1: Introduction...............................................................................................................1
1.1 Background of the study..................................................................................................................1
1.2 Statement of problem......................................................................................................................2
1.3 Purpose of the study:.......................................................................................................................3
1.4 Significance of the study:................................................................................................................4
1.5 Literature review.............................................................................................................................4
1.6 Research Methodology:...................................................................................................................9
1.6.1 Research Design...............................................................................................9
1.6.2 Sources of data collection……………………………………………………..9
1.6.3 Population and Sample.....................................................................................9

1.6.4 Data collection instruments.............................................................................10
1.6.5 Data analysis tools..........................................................................................10
1.7 Limitations of the study.................................................................................................................10
1.8. Conceptual Framework................................................................................................................11
CHAPTER 2: Data presentation and analysis………………………………………………….12
2.1. Respondent information …………………………………………………………………………………………………………
12
2.1.1 Data presentation based on Gender
........................................................…………………………………………….........12
2.1.2 Data presentation based on Age……………………………………………….......13
2.1.3 Data presentation based on Education…………………………………………….14
2.1.4 Data presentation based on Monthly Income………………………………………15
2.1.5 Data presentation based on profession………………………………………….….16
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2.1.6 Price of the computer…………………………………………………………...….17
2.1.7 Computer fulfills all requirements………………………………..………………..18
2.1.8 Decided to switch the brand…………………………………………………..……19
2.1.9 Satisfied with the price………………………...…………………………….….....20
2.1.10 Recommendation to others……………………………………………………….20
2.1.11 Customer Loyalty towards brand …………………………………………..……21
2.1.12 Inferential analysis ………………………………………………………………22
2.1.13 Correlation analysis……………………………………………………………….32
2.2 Findings and discussion:……………..…………….………………………………..….…….33
2.2.1 Respondents profile………………………….…….………………………..….…34
2.2.2 Opinion of the respondents …………………….…………………………..….…34
Chapter 3: Summary and Conclusion………...........................................................................36
3.1 Conclusion………………………………………………………………………………………………………………….………36
3.2 Action implications……………………………………………………………………………………37
REFERENCES
APPENDICES
Questionnaire for the study of the factors influencing customer loyalty towards Computer
brands
vii
List of Tables
Table 1: Gender of the respondents ……………………………………………….16

Table 2: Age of the respondents…………………………………………………...17
Table 3: Education of the respondents…………………………………………….18
Table 4: Monthly income of the respondents……………………………………...19
Table 5: Profession of the respondents………………………………………….....20
Table 6: Price of the Computers of the respondents……………………………….21
Table 7: Customers loyalty towards computer brands………………………….....26
Table 8: Customer loyalty on price fairness………………………………………28
Table 9: Customer loyalty on customer satisfaction……………………………....29
Table 10: Customer loyalty on battery features……………………………………31
Table 11: Customer loyalty on perceived brand quality…………………………..33
Table 12: Customer loyalty on hardware functionality…………………………...35
Table 13: Kendall’s Tau correlation coefficients matrix for the dependent and
independent variables for customer loyalty……………………………………….37
viii
List of Figures
Figure 1: Gender of the respondents ……………………………………………16

Figure 2: Age of the respondents………………………………………………...17
Figure 3: Education of the respondents…………………………………………..18
Figure 4: Monthly income of the respondents……………………………………19
Figure 5: Profession of the respondents…………………………………………..20
Figure 6: Price of the Computers of the respondents…………………………......21
Figure 7: Computer fulfills all requirements income ………………………….....22
Figure 8: Decided to switch brand …………………………………………….....23
Figure 10: Satisfied with the price……………………………………………......24
Figure 11: Recommendation to others………………………………………...….25
Figure 12: Loyalty towards any brand………………………………………...….25
ix
EXECUTIVE SUMMARY
It has been proposed that companies that focus on identifying customer loyalty will be
more profitable, their long-term customer retention will be high, and they can reduce
marketing costs and increase competitive advantage. Therefore, it is very important for
companies to understand the process of developing customer loyalty in today's
competitive environment. One of the most important factors that contribute to the
formation of customer loyalty is customer satisfaction. Consumer satisfaction has been
widely accepted as an important issue for many marketing managers. It is commonly
used as a benchmark of a company’s success.
The major objective of this study is to determine the factor influencing customer
loyalty toward computer brands. There are various factors that influence the purchase
of computer such as perceived brand quality, brand image, battery features, price
fairness, hardware functionality.
This study is based on primary source of the data, which was gathered from 118
respondents. The instruments used are Pie chart, Bar diagram, Central tendency and
Correlation analysis. The questionnaire was made and distributed to different
respondents that belong to different age groups, different profession and different
academic background. The questions were asked in the form of multiple choices. As
we went through the survey, we found that the majority of respondents that belong to
service sectors, used computers that fall under the price range of Rs 40,000-50,000,
students used computer that fall under the price range of Rs. 40,000 and respondents
with business professions use computer that fall under the price range of Rs. 50,000-
60,000.
The findings of this research show that the perceived brand quality is the main reason
why customers purchase a particular computer brand. It influences the customer
loyalty more than any other factor does. The study concludes that the customer loyalty
is positively influenced by factors such as perceived brand quality, brand image,
battery features, price fairness, hardware functionality i.e. there is positive relationship
between these factors and customer loyalty. The findings also show that the
x
respondents are satisfied with the computer they use, and are loyal to their particular
brand.
xi
CHAPTER I
INTRODUCTION
1.1 Context information

In this era of globalization, rapid development in technology is not something
strange to us. The use of computers is very wide so that the whole world. The rapid
growth in the technology sector is effect increasing the number of competitors in the
market. As well as the growth of new technology devices such as computers,
laptops, cameras, and others where many additional features offered in these devices.
Computers mainly include laptop, desktop and palmtop.
It has been proposed that companies that focus on identifying customer loyalty will
be more profitable, their long-term customer retention will be high, and they can
reduce marketing costs and increase competitive advantage (Wel et al., 2011).
Therefore, it is very important for companies to understand the process of
developing customer loyalty in today's competitive environment. Consumer
satisfaction has been widely accepted as an important issue for many marketing
managers. It is commonly used as a benchmark of a company’s success (Bennett &
Rundle-Thiele, 2004).
Customer satisfaction leads to loyalty, positive word of mouth, and recommendation,

paying less attention to advertisements of competitors’ increased market share,
profitability and customer retention. Hence, customer satisfaction has strong effect
on customer loyalty (Aminu & Hartini, 2008).
Brand shows a reputation of a company’s through their products or services. Brand

is also a sign that memorable in the minds of customers. The American Marketing
Association defines a brand as a name, term, sign, symbol or design, or a
combination of prototype, intended to identify the goods or services of one seller or
1
group of sellers, and to differentiate from bear fight them of the competitors (Kotler,
et al., 2009). Brand can become the heart of marketing and business strategy.
Success of the brand is able to generate profits by attracting new customers and
retain existing customers.
With the brand, it is a sign of the signal in some level of quality which the buyer is
satisfied with the easy to choose any of the products. Brand loyalty provides a
forecast of demand for the company and may also explain the willingness of
customers to pay for higher price. Although competitors are easy to duplicate the
process and product design, they are not easy to match the description in the
individual and the organization from year to year in any marketing and product
development. Therefore, the brand became a very influential in the world of
competition.
Price is an element of marketing mix, the price premium is one of the most important
values in assessing perceived quality (Murray and O’ Driscoll, 1996).Moreover,
Milgrom and Roberts (1986) stated that price is a signal of perceived quality, a
higher price will lead to a higher perceived quality, and Rao and Monroe (1989)
found that price is positively related to brand by increasing perceived quality after
studying the effect of price on consumers’ perceived quality. From these studies, it
could be verified that price has a positive relation with perceived quality and we
know that quality has positive relation with customer loyalty.
In the context of Nepal, Pandey & Joshi (2010) reveled that customer satisfaction
had positive relationship with behavior intentions of the customer. The study
revealed that service quality is correlated with behavioral intension of the customer
but it was positively correlated with customer satisfaction and customer satisfaction
was also positively correlated with behavioral intensions of the customer.
The above discussion shows that the studies devoted on customer satisfaction and
customer loyalty of computer brands in Nepal are of greater significance. There are
various computer brands available in Nepal among which commonly used computer
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brands include Dell, HP, Lenovo, Acer, Apple, Toshiba, etc. These brands are
popular among students, business person as well as other employed people. They are
imported from countries like India, Singapore, China, and so on. These brands are
popular due to their prices, features and availability. The price is determined by
hardware configuration and performance as well as brand name.
Hence, this study focuses on the customer satisfaction and customer loyalty of
computers in Nepal.
1.2 Statement of problem

In today’s competitive market, customer loyalty has become a major concern of
firms. Loyal customer does not only increase the value of the firm but also enables it
to maintain costs lower than those associated with attracting new customers (Boora
and Singh, 2011). The process definition of satisfaction however, concentrates on the
antecedents of satisfaction rather than satisfaction itself (Parker and Mathews, 2001).
Customer loyalty is not highly significant in Pakistani context because there is no
proper alignment of brand performance and customer satisfaction so companies are
trying hard to create alignment between satisfaction and loyalty. Caruana (2002)
indicated that customer satisfaction does play a mandating role in the effective
service quality on service loyalty.
This study raised the following in the context of customer loyalty toward computer
brand. There is a gap between the above literatures and this study aims to fulfill the
gap between mentioned literatures and find out the actual factors influencing
customer loyalty towards computer brands.
1. What is the perception of the customers on the level of brand specific factors
(perceived brand quality, price fairness, hardware functionality and customer
satisfaction)? of the computer brand in Nepal?
3
2. Is there any relationship between selected brand specific factors (perceived brand
quality, price fairness, battery features, hardware functionality and customer
satisfaction) with customer loyalty?
3. Whether brand specific factors are correlated with customer loyalty of the
computer brand in Nepal?
4. Which of the computer brand specific factor play the most important role in
determining level of customer loyalty?
1.3 Purpose of the study

The main purpose of this study is to examine the factor influencing customer loyalty
toward computer brand. The major purpose of the study is pointed as:
1. To analyze the perception of the customer on the level of customer loyalty and
price fairness, customer satisfaction, battery features, perceived brand quality,
hardware functionality.
2. To examine the relationship of customer loyalty and price fairness, customer
satisfaction, battery features, perceived brand quality, hardware functionality.
3. To examine if the brand specific factors are correlated with customer loyalty of
the computer brand in Nepal.
4. To analyze the most important variable affecting customer loyalty toward
computer brand.
1.4 Significance of the study

It is important to study customer loyalty as it plays an important role in brand
extensions as well as brand equity. Mokhtar et al. (2000) pointed out that customer
loyalty plays an important role in the organization's profitability and future growth.
Customers also express their loyalty by giving a greater share of wallets to their high
value brands and service providers and by generating word of mouth referrals.
This study mainly focuses on the factor influencing customer loyalty toward
computer brand and their relationship with customer loyalty. This study clearly
provides the knowledge about customer loyalty of computer brand among various
computer users. This study will help marketer to understand customer loyalty
practices in computer markets. It gives information about the level of customer
4
involvement in brand searching, analyzing, and brand choice for the product
computers. This study helps to develop the profile of specific customer of selected
brands. It is useful in creating most favorable brand by knowing the buyer perception
and response. Deeper understanding of customer loyalty of customers can help
managers to design marketing strategy that will concentrate on customer. This study
is also beneficial for the academicians who are interested in conducting studies brand
preference and customer loyalty.
1.5 Literature review

This section deals with a review of relevant literature. It deals with the survey of
existing body of knowledge of the variables under the study. The concept and
definition of the variables, their importance and subsequent relation are described.
For this research, literatures from the reports of past research on the same and
similar subject matter are used.
There are seminal studies on consumer purchase decision models in the literature,
however, consumer purchase decisions vary greatly depending on the product to be
purchased. Therefore, sectoral studies are needed to delineate the factors affecting
consumer purchase decisions in various product markets. The International Data
Corporation (IDC, 2006) report mentioned that in 2005 consumers continued to
respond very positively to very attractive price points, but portable demand in the
business space remained very strong too. According to What Laptop (2005), Dell
was the number one choice in worldwide with 7.9 million sales. It was followed
respectively by HP (7.4 million), Toshiba (5.8 million), IBM (4.3 million), and Acer
(3.9 million) in year 2004. Furthermore, revenue generated from notebooks has long
surpassed desktops, thanks to higher average selling prices for notebooks. According
to CRN (2006) in June 2005, notebook sales accounted for $216.1 million, or
$1,442.66 per notebook whereas desktops accounted for $113.9 million, or $762.98
per unit. The average notebook price fell 11.8 percent from $1,635.07 in the year-
ago month and in the same period, desktop prices fell 5 percent from $803.38 (CRN,
2006). In addition, new product launches to the market, acquisitions and mergers in
the sector, rapid developments in the nano-technology, integrated wireless
5
networking, and decreased prices make it extremely vital for the companies to
understand the factors underlying consumers’ laptop purchase decisions. The
customer base of a company consists of three groups of consumers: stayers (those
who had never switched from a previous brand), satisfied switchers (those who
switched for reasons other than dissatisfaction), and dissatisfied switchers (those
who switched because they were dissatisfied from their previous brand) (Ganesh et
al., 2000). Understanding the attitudes of these three different groups of customers
plays an important role when implementing effective and feasible retention and
loyalty strategies.
From the managerial perspective, the findings of this study imply that when a
consumer of a company decides to buy a new laptop or in technical terms to upgrade
his laptop, the company should consider which customer base he belongs to. For
instance, if the consumer is a stayer, the company can offer price discounts when he
decides to upgrade his laptop. Likewise, the company can give special promotions to
stayers when they bring their former laptop and exchange it with a recent model of
the company’s laptops. It is also seen that among all factors, mobility and
connectivity factor has received the lowest importance (2.82/4) from three groups of
consumers. This can be attributed to the fact that due to the nature of laptops, being
computeris an expected feature. Another explanation to this result can be that
consumers usually do not like to use technological words such as infrared and
Bluetooth, they prefer to say connecting to Internet or computer, sending pictures
and documents to printer, and etc. Hence, it will not be sufficient and efficient to
merely underlie this feature in advertisements. If this feature has to be mentioned in
ads then the tone and the words used should be plain and explanatory.
Soonarong (2011) examined the factor affecting customer loyalty toward taekwondo
martial arts of Jinya Gym in Bangkok. A total number of 500 questionnaires were
distributed to Jinya Gym’s customers and census survey was conducted at Jinya
Gym’s future park Rungsit branch and Bangna branch. Data were collected through
questionnaire techniques. Descriptive analysis, SPSS (Statical Package for Social
Science) and Pearson correlation coefficient was used to test the relationship among
6
study variable. The study found that price, family, promotion, advertising, brand
awareness, brand association and perceive quality has positive relationship with
customer loyalty of Jinya Gym.
Khizindra et al. (2015) examined that an empirical study of factor affecting customer
loyalty of telecommunication industry in the kingdom of Saudi Arabia. The study
surveyed through sampling method a total of 775 respondents. Data were collected
through questionnaire technique. Descriptive analysis was used to test the
relationship among the variable. The study showed that the majority of respondents
had prescribed to more than one service provider at the same time. Additionally, it
was revealed that all the variables tested; price, service quality, brand image and
trends, had a direct effect on customer loyalty of service provider. The study found
that price, service quality, brand image, trend, computers has significant impact on
customer loyalty.
Ahmed et al. (2015) examined the factor affecting customer switching behavior:
computer market in Manchester- United Kingdom. The study surveyed through
random sampling method a total of 150 respondents. The data were collected
through the questionnaire technique. Descriptive analysis was used to test the
relationship among the variables. The study found that the impact of need based and
the opportunity based behavior, the impact of technology, innovation, changing
demography, brand image, perception, behavior, attitudes, loyalty, advertising and
other factors has significant effect toward stimulating and de-motivating the
behavior of computer users regarding keeping loyal with existing brand and towards
another brand.
Malik et al. (2012) examined that impact of brand image, service quality and price
on customer satisfaction in Pakistan telecommunication sector. The study surveyed
through random sampling method a total of 165 of 200 respondents. Data were
collected from educational and business sector of Gujranwala region of Pakistan
using stratified random sampling technique. Data were collected through the
questionnaire technique. Descriptive, Pearson correlation coefficient was used to test
7
the relationship the variables. The study found that customer satisfaction has
significant relationship with service quality, price and brand image.
Ramakrishna et al. (2008) examined the brand loyalty and brand switching behavior
of the consumers is evergreen issues of research and strategic importance to the
marketers and academic researchers. The current research aims to address the
significance of product attributes in brand switching behavior through multi-
dimensional scaling and results that assets of product attributes trigger the intention
to switching the current brand.
Stan et al. (2013) examined that customer loyalty development: The role of
switching costs. The study found that the organizational image customers hold of the
service provider and perceived service quality have a strong relationship with
customer loyalty. Moreover, both, service quality
and organizational image are significantly and positively correlated with customer
satisfaction. The findings highlight that it is in particular through the formation of
customer satisfaction that service quality and organizational impact customer loyalty.
Thus, the study demonstrates that customer satisfaction has a mediating effect between
external and interactive marketing initiatives and the development of customer loyalty.
Second, the study investigated the role of switching costs in the development of
customer loyalty. The findings indicate that perceived switching costs, here assessed in
terms of price sensitivity, have by far the strongest, positive and direct impact on
customer loyalty in comparison to the other antecedents included in the model. The
importance of switching costs is further corroborated with the finding that switching
costs moderate the link between customer satisfaction and customer loyalty.
Hortamani et al. (2013) examined that impact of price satisfaction on loyalty: A case
study in electric generating plant Snowa. The main objective of this study is to
investigate the impact of price satisfaction on loyalty of Snowa electronic
manufacturing factory located in the industrial town of Moorche-Khort in Isfahan.
This is a descriptive study and also from objective perspective is an applied research.
Data collection, questionnaire question its validity using the numbers 30 faculty
members, advisors and specialists and management experts and its reliability by
8
Cronbach's alpha index was equal to 0/935. The statistical population of this study,
the employees and managers of sales department and marketing are 92 persons and
80 of them have been asked questions (return rate: 89%). SPSS and AMOS software
has been used for data analysis and hypotheses testing. The achieved results of
statistical analysis validate and confirm the price reliability variables influence,
relative price, Price- quality ratio and price fairness, price transparency effect on
loyalty.
Mohsan et al. (2011) found that impact of customer satisfaction on customer loyalty
and intentions to switch: evidence from banking sector of Pakistan. The study found
the impact of customer satisfaction on customer loyalty and intentions to switch.
The data were collected from 120 customers visiting the banks counters and had an
account with banks serving in Pakistan. The collected data then analyzed using the
Microsoft Excel and SPSS. The results of the
study revealed that customer satisfaction was positively correlated with customer
loyalty and negatively.
Bakator et al. (2017) examined influence of advertising on consumer- based

customer loyalty. This study show the relationship between advertising and the
customer loyalty. Further, meditating dimensions are included in the study: brand
trust and perceived quality. The data were collected via online survey. The data
processing included a t-test analysis, regression analysis and correlation analysis.
Next, the findings have shown moderate influence of advertising on customer
loyalty. Overall, satisfactory result are achieved. Certain limitations with online
survey didn’t affect the results of the study. Furthermore, the finding in this paper
contributes to future study, offering solid basis for a more complex investigation of
making environment.
Similarly, the consumer switching behaviors basically the behavior of consumers in

shifting their attitude from one brand (product) to another brand (product) (Zikiene
and Bakanauskas, 2006). The consumers are the key focus of marketing and even
entire business, because a research state that every year, the 83% brand failed to
achieve marketing objectives, and there are 11000 products introduced every year
9
and only 56% products reach to the age of 5 year or more and only 8% new ideas are
converted into market offerings.The reason is, because any marketing idea, product
or strategy, that is not focusing customers or not designed according to the
customer’s needs and wants, becomes failed or not able to deliver its full
strength(Bhasin, 2010).
Alhuwaishel and AL-Meshal (2018) examined that the impact of perceived value,
quality, and loyalty on purchase decision in the accessories department: Study on
Saudi females. The main purpose of this study is to investigate the impacts of
perceived value, quality, and loyalty on the purchase decision. Furthermore, to
understand the mediator impact of brand trust between the relations of consumers’
perceived value and the purchase decision. This study is considered as an empirical
study that follows a quantitative method and probability sampling technique. The
questionnaire was conducted using internet-based survey where the sample includes
random Saudi females living in Riyadh. The study shows that loyalty and quality
have significant statistical impacts on the decision making. On the other hand, it
shows that perceived value has an influence on the brand trust but not on the
purchase decision.
1.6 Research Methodology

Research methodology refers to the various sequential steps that are to be adopted by
a researcher during the course of studying the problem with certain objectives.
Research method discussed in this chapter helps to guide the research study
providing different issues and aspects. This research focuses on the factors that
influence customer loyalty towards computer brands and relationship among them. It
also focuses on how to collect required data, what are the population and sample,
10
and techniques to be adopted to analyze and interpret. For the purpose of achieving
the purpose of the study, below mentioned research plan has been followed which is
required for survey.
1.6.1 Research Design

The study has descriptive and analytical research design to deal with factor
influencing customer loyalty towards computer brands in Kathmandu valley among
respondents of various age groups. Descriptive research is used to describe
characteristics of a population or phenomenon that are studied. It does not answer
How/where/why the characteristics occurred. It rather addresses the "What?"
questions i.e. "What are the factors that influence customer loyalty towards
particular computer brands?" This study has adopted descriptive research design for
facts finding and identifies information about factor influencing customer loyalty
towards computer brand in a Kathmandu valley. This study also has correlation
analysis to find out the relationship between customer loyalty and factors influencing
customer loyalty. This research design is process of accumulating facts and describes
phenomenon, as it exists. Structured questionnaire is used to gather the information
through primary sources.
1.6.2 Source of data collection

This study is based on primary source of data. For the fact finding of the study,
questionnaire was made and distributed to the computer users.
1.6.3 Population and Sample

Population is a complete set of elements that possess some common characteristics
defined by the sampling criteria established by researchers. The target population of
this study is comprised of the people of various professions of different age groups
who possess a computer. The primary data was used to extract the information from
the customer regarding the factor influencing customer loyalty towards computer
brands. The primary data and information is collected and analyzed to determine the
relationship between price fairness, customer satisfaction, battery features, perceived
brand quality, hardware functionality. This study collects data from structured
questionnaire survey.
11
1.6.4 Data collection instruments
To collect the data survey was carried by distributing a set of structured
questionnaire to the computer users. The primary sources were used to extract the
information from the customer regarding the factor influencing customer loyalty
towards computer brand. The data obtained from the questionnaires survey are
analyzed through SPSS. The instruments are descriptive statistics and inferential
statistics. Frequencies, percent, mean, standard deviation, correlation are used in this
study. Data are collected using a survey questionnaire containing:
 Rank order questions

 Close ended questions
 Respondents’ personal information method.
1.6.5 Data analysis tools

This includes the tools used for analysis of the data collected. After the data are
properly collected and presented, data analysis will be conducted. Simple statistical
tools will be used are as follows:
 Pie-chart
 Bar diagram
 Tables
 Central tendency
 Correlation analysis
1.7 Limitations of the study

The major limitations of the study were as follows:
1. The study was predominantly based on the primary source of the data.
Therefore, the reliability of conclusions of the study depends upon the accuracy of
the information provided by the respondents.
2. The survey was conducted in the Kathmandu valley. Hence the study did not
incorporate wide geographical character of the respondents.
12
3. Some of the findings in this study are not consistent with many of the studies.
Therefore, it is worthwhile to note the nature of data and the specification of the
models may themselves be responsible for the difference in the results.
4. There is small number of the respondent and due to shortage of time and
respondents were unwilling to give the response during filling the questionnaire.
5. It may also be noted that only primary data are considered for the study
purpose. Secondary data are not used to draw the conclusion.
1.8. Conceptual Framework

Conceptual framework is defined as the theoretical structure of assumption,
principles, and rules that holds together the ideas comprising a board concept.
Conceptual framework is a group of concepts that are broadly defining and
systematically organize to provide a focus, a rationale, and a tool for the
integration and interpretation of information. It can act like a map that give
coherence to empirical inquiry as the conceptual framework are potentially so
close to empirical inquiry, take different forms depending upon the research
questions or problem.
The major literature has highlighted some key issues on customer loyalty towards
computer brand. This study has taken customer loyalty as dependent variable and
price fairness, battery features, brand image, perceived brand quality, overall
performance as independent variable. Based on this customer loyalty of computers
in Kathmandu valley determinants is considered as the form of the study
framework for the present study, as shown in following figure:
13
Independent variables Dependent variable
Price fairness
Customer satisfaction
Battery features Customer loyalty
Hardware functionality
Perceived brand quality
Moderating variables
Age
Gender
Profession
Education background
Monthly income
Fig: Conceptual framework
This figure shows the theoretical framework of the study. The dependent variable
of the study is customer loyalty and the independent variable is and price fairness,
customer satisfaction, brand experience, perceived brand quality, brand switching
cost.
14
CHAPTER II
DATA PRESENTATION AND ANALYSIS
Data analysis is the process of developing answers to the questions through the
examination and interpretation of data. The justification of any project work is done on
the basis of analysis and presentation of facts. The conclusion and recommendation are
valid when drawn based on the data collected, analyzed and interpreted. This chapter
provides analysis of collected data to accomplish the research objective. The study was
focused to know the factors influencing customer loyalty towards various computer
brands and relationship among them. Factors such as price fairness, battery features,
perceived brand quality, hardware functionality are taken as independent variables and
customer loyalty is taken as dependent variable.
The chapter presents the analysis of the study result and their interpretations. Basically,
this chapter presents respondents' profile, findings and discussion of the study.
Moreover, it is also concerned with the results of questionnaire survey conducted among
118 respondents having different age, profession, educational background, monthly
income. The questionnaire is designed to find out the factors that influence customer
loyalty toward computer brands.
This study employs various statistical tools and techniques in order to know the various
factors that influence customer loyalty towards different laptop brands. For this purpose,
required primary data was collected through the structured questionnaire and analyzed in
a systematic way to find out the appropriate result.
2.1. Respondent information

Respondents were randomly selected from total population to obtain required
information for the research in this study, the respondents include computer user. Total
of 118 questionnaires were distributed among computer users. Tables are figures are
15
given to highlight the general information regarding age, profession, monthly family
income, educational background.
2.1.1 Data presentation on the basis of gender of respondents:
The following table and pie chart indicate the gender of the respondents involved in this
study:
Table 1: Gender of respondents
Gender Number of respondents Percentage (%)

Male 77 65.3
Female 41 34.7
Prefer not to say - -
Total 118 100.00
Source: Questionnaire Survey 2019
Figure 1: Gender of respondents
Gender
Male Female
35%
65%
According to the table 1 and figure 1, out of total 118 respondents involved in this
study, 65.3% are male and 34.7% of the total respondents are female.
2.1.2 Data presentation based on age

16
Following table and bar diagram indicate the age of the 118 respondents involved in
this study:
Table 2: Classification of respondents on the basis of age
Age No. of respondents Percentage

Under 25 73 61.9
25-35 35 29.7
35-45 7 5.9
45-55 3 2.5
above 55 - -
Total 118.00 100.00
Figure 2: Classification of respondents by age
Age
80 73
70 61.9
60
50
40 35
29.7
30
20
10 7 5.9 3 2.5
0
Under 25 25-35 35-45 45-55
frequency percentage
Majority of the respondents lie in the age group below 25 years, constituting 61.9
percent of total respondents. 35 respondents (29.7 percent) of total respondents are
from 25-35 years age group. 7 respondents lie among 35-45 years (5.9 percent) of
total respondents. 3 respondents lie in the age group above 55 years (2.5 percent) of
total respondents.
2.1.3 Data presentation on the basis of education
17
The respondents were categorized one the basis of their academic background as
well. The following table and bar diagram indicate the academic classification of
the respondents involved in this study.
Table 3: Classification of the respondents on the basis of education
Education Number of respondents Percentage (%)
School level 2 1.7

High school 21 17.8
Under graduate 54 45.8
Graduate 22 18.6
Above graduate 19 16.1
Total 118 100
Figure 3: Classification of the respondents on the basis of education.
Education
60 54
50 45.8
40
30 21 17.8 22 18.6 19 16.1
20
10 2 1.7
0
School level High school Under graduate Graduate Above graduate
frequency percentage
In other words, majority of the respondents are undergraduate (45.8 percent), (18.6),
high school (17.8 percent), above graduate (16.1 percent) and school level (1.7
percent).
2.1.4 Data presentation on the basis of monthly family income:
The respondents were categorized one the basis of the monthly income they
earn. Monthly income is an important factor that influences customer loyalty.
18
The following table and bar diagram indicate the monthly income of the
respondents involved in this study.
Table 4: Classification of the respondents by monthly income level

Monthly income No. of respondents Percentage (%)
less than 40000 80 67.8
40000-50000 14 11.9
50000-60000 8 6.8
60000-70000 2 1.7
more than 70000 14 11.9
Total 118 100
Figure 4: Classification of the respondents by monthly income level
Monthly family income

80
60
40
20
0
0 00 0 00 0 00 0 00 0 00
40 -50 -60 -70 70
n 0 0 0 n
tha 0 0 0 0 0 0 tha
s 40 50 60 e
les m
or
Number of respondents Percentage (%)
Figure 2.4 shows that majority of the respondents (67.8 percent) are less than 40,000
followed by 11.9 percent of respondents belong to the monthly income level of
40,000-50,000 as well as those who belong to more than Rs 70,000. Similarly, 6.8
percent of the respondents belong to the income level of 50,000-60,000 and 1.7
percent belong to 60,000-70,000 group.
2.1.5 Data presentation on the basis of profession
The respondents were classified on the basis of profession they are involved in.. The
profession of an individual determines how much s/he earns which ultimately
19
determines his/her brand preference for consumption. The following table and bar
diagram indicates the profession of the respondents involved in this study:
Table 5: Classification of the respondents by profession
Profession Number of respondents Percentage (%)

Student 70 59.3
Service 23 19.5
Business 11 9.3
Other 14 11.9
Total 118 100
Figure 5: Classification of the respondents by profession
Profession
80
70
60 frequency
50 percentage
40
30
20
10
0
Student Service Business Other
Figure 5 shows that majority of the respondent’s profession are student (59.3
percent) followed by service (19.5 percent), other (20.16 percent) and business (9.3
percent).
2.1.6 Price of the Computer
Price as an amount that a customer sacrifices to consume certain and specific product or
service. Price of the product is categorized into five groups i.e. less than 40,000,
40,000- 50,000, 50,000-60,000, and 60,000 above. Respondents use computer brands of
different price range. The classification of the respondents by the price of computer
they have been using in terms of percent is shown in Table 6.
20
Table 6: Price of the computer
Price of computer No. of respondents Percentage
less than 40000 55 46.6

40000-50000 40 33.9
50000-60000 9 7.6
above 60000 14 11.9
Total
118 100
Figure 6: price of computer
Price of the computer

Number of respondents Percentage
55
46.6
40
33.9
14 11.9
9 7.6
less than 40000 40000-50000 50000-60000 above 60000
Figure 6 shows that 46.6% of the total respondents use computer that costs less
than Rs 40,000. 33.9% use computers that falls under the range of Rs 40,000-
50,000, 7.6% use computers that falls under the range of Rs 50,000-60,000 and
11.9% use computers that costs above RS 60,000.
2.1.7 "Computer fulfills all requirements"
The study was taken to find whether the customers are satisfied by the computer
brand they are using. The computer users were asked if their computer brand
fulfilled all their requirements or not. It was done to determine customer
satisfaction and customer perception towards the particular computer product that
they had been using. According to the result of the research, it was found that that
majority of the customers think that their computer fulfills all requirements.
21
Figure 7: Classification of the respondents by "computer fulfills all requirements"
Computer fulfills all requirement
36.4
63.6
Yes (%) No(%)
The figure shows that majority of respondents are yes (63.55 percent) and the rest of
the respondents are no (36.4 percent). The respondents who agree that their computer
satisfies all requirements are 75 in number and those who do not agree are 43 in
number.
2.1.8 "Decided to switch brand"
A structured questionnaire regarding brand switching was conducted among 118

respondents who use certain computer brand. It was done to find out whether they are
loyal towards the computer brand they were using or not. Result shows that the
majority of the respondents had not decided to switch their computer brand yet as
shown in following pie chart:
22
Figure 8 Classification of the respondents by decided to switch to another computer
brand
Decided to switch to another brand
33.1
66.9
yes (%) No (%)
The figure shows that majority of respondents are "Yes" (66.9 percent) which indicates
they have decided to switch their computer brands and the rest of the respondents are
"No" (33.1 percent) which implies they haven't decided to switch their computer brand
yet.
2.1.9 Satisfied with price
The study was taken to find whether the customers are satisfied with the price of the
computer brand they are using or not. Price paid for a certain product influences
customer perception towards that product.. It was found that majority of the customers
think that the price of their computer is convenient as shown in following pie chart:
23
Figure 9 Classification of the respondents by satisfied with price
Satisfied with price

18.6
81.4
yes(%) No(%)
The figure shows that majority of respondents are yes (81.4 percent) which implies
that they are satisfied with the price they paid and the rest of the respondents are
no (18.6 percent) which implies that they don’t think the brand has fair price.
2.1.10 Recommendation to others
Recommendation means to suggest someone that something would be good or

suitable. Recommendation to others implies Word Of Mouth. The respondents were
asked questionnaire that included questions regarding recommendations. They were
asked if they recommend their purchased computer brands to others or not. The
results show that the majority of the customers recommended their purchased
computer brand to others about its usability and suitability. The result is shown in
following pie chart:
24
Figure 10: Classification of the respondents by recommendation to others
Recommendation to others
28.8
71.2
Yes(%) No(%)
The figure shows that majority of respondents are "yes" (71.2 percent) which
implies that they tell positive things about their computer to others and the rest of
the respondents are "no" (28.8 percent) which implies that they don’t tell positive
things about their computer to others.
2.1.11 Loyalty towards any brand of Computer

Brands are the key to sales increase in consumer markets. They make a relationship
between the consumers and the company. Brand loyalty is a consumer’s preference
to purchase a particular product or service at first or repeatedly in a competitive
market.
Figure 11: Classification of the respondents by loyalty toward any brand of computer
Loyalty toward any brand of computer
38.1
61.9
Source:
Questionnaire Survey 2019
yes(%) no(%)
25
The figure shows that majority of respondents are "yes" (61.9 percent) and the rest of
the respondents are "no" (38.1 percent).
2.1.12 Inferential analysis

Inferential analysis was conducted to find the relationship between various dependent
and independent variables relating to this research through N*N table. The following
tables show the percentage, frequency and mean of the factors influencing Customer
loyalty towards computer brand. The statement is measured as strongly agree, agree,
neutral, disagree and strongly disagree.
Table 7: Customers loyalty towards computer brands
Statements 1 2 3 4 5 N Mean
F 32 67 18 0 1 118 1.87
% 27.12 56.78 15.25 0.00 0.85 100
"I often tell positive things
about my computer to other" A% 83.90 15.25 0.85
"I consider myself to be loyal F 27 58 29 3 1 118 2.06
to my computer brand" % 22.88 49.15 24.58 2.54 0.85 100
A% 72.03 24.58 3.39
F 28 47 33 8 2 118 2.16
% 23.73 39.83 27.97 6.78 1.69 100
"My brand is my first choice
among computer brands" A% 63.56 27.97 8.47
"I would choose my current F 25 54 29 8 2 118 2.15
computer brand even if the % 21.19 45.76 24.58 6.78 1.69 100
other brands has the same
functionality as my current
computer" A% 66.95 24.58 8.47
"If I could I would rather F 26 46 33 10 3 118 2.20
change to another company's % 22.03 38.98 27.97 8.47 2.54 100
company" A% 61.02 27.97 11.02
Weighted average mean 2.09
The majority of the respondents agreed that they often tell positive things about their
computer to other (83.90 percent), whereas some respondents disagree on the
statement that they often tell positive things about their computer to others (0.85
percent). However, the rest of the respondents were indifferent on the statement
(15.25 percent).
26
Likewise, majority of the respondents viewed that they consider themselves to be
loyal to their computer (72.03 percent). However, others disagree (3.39 percent) and
the rest of the respondents (24.58 percent) are indifferent on the statement.
The table indicates that majority of the respondents agreed that their brand is their
first choice among computer brands (63.56 percent). However, some of the
respondents disagree (8.47 percent) on the statement whereas rest of the respondents
(27.97 percent) indifferent on the statement.
Majority of respondents agreed that they would choose their current computer brand
even if the other brands have the same functionality as their current computer (66.95
percent)., whereas, some respondents do not believe the statement (8.47 percent).
However, rest of the respondents are (24.58 percent) indifferent on the statement.
Similarly, majority of the respondents viewed that if they could they would rather
change to another company's computer (60.02 percent). However, some respondents
disagree that if they could they would rather change to another company's computer
(11.02 percent).The rest of the respondents (27.97prcent) are indifferent towards the
statement.
The mean of the customer loyalty towards computer brands ranges from a minimum
value of 1.87 to the maximum value of 2.20. Among them, the most significant
observation of the respondents regarding customer loyalty is considered they often
tell positive things about their computer to other 1.87, whereas the most insignificant
observation show that if they could they would rather change to another company's
computer with mean value of 2.20.
Weighted average mean scale for price fairness is 2.09, which indicates that on an
average customer are loyal towards computer. In other words, the result indicates
that customer perception leads to customer loyalty towards computer brand.
27
Table 8: Customer loyalty on price fairness
F 26 55 29 6 2 118 2.11
The price of my computer % 22.03 46.61 24.58 5.08 1.69 100.00
changes frequently. A% 68.64 24.58 6.78
F 14 58 29 12 5 118 2.29
10.1
I think the lower price does not% 11.86 49.15 24.58 7 4.24 100.00
guarantee higher satisfaction. A% 61.02 24.58 14.41
F 23 67 24 3 1 118 2.05
The price of my computer is % 19.49 56.78 20.34 2.54 0.85 100.00
reasonable. A% 76.27 20.34 3.39
The price of my computer is F 18 60 32 8 0 118 2.25
comparatively better than % 15.25 50.85 27.12 6.78 0.00 100.00
others'. A% 66.10 27.12 6.78
F 25 55 28 7 3 118 2.12
The price of my computer % 21.19 46.61 23.73 5.93 2.54 100.00
brand changes frequently. A% 67.80 23.73 8.47
The majority of the respondents agreed that the price of their computer changes
frequently (68.64 percent), whereas some respondents disagree on the statement
6.78 percent). However, the rest of the respondents were indifferent on the
statement (24.58 percent).
Likewise, majority of the respondents viewed that they think the lower price does
not guarantee higher satisfaction (61.02 percent). However, others disagree (14.41
percent) and the rest (24.58 percent) are indifferent on the statement.
Majority of the respondents agreed that the price of their computer is reasonable
(76.27 percent). Some of the respondents disagree (3.39 percent) and rest of the
respondents (20.34 percent) indifferent on the statement.
Majority of respondents agreed that the price of their computer is comparatively

better than others' (66.10 percent).Whereas, some respondents do not believe it
(6.78 percent). However, rest of the respondents are (27.12 percent) indifferent on
the statement.
Similarly, majority of the respondents viewed that the price of their computer
brand changes frequently (67.8 percent).
28
However, some respondents disagree (8.47 percent).The rest (23.73 percent) are
indifferent towards the statement.
The mean of the price fairness towards customer loyalty ranges from a minimum
value of 2.05 to the maximum value of 2.29. The most significant observation is
considered the price of their computer is reasonable with mean value of 2.05
whereas, the most insignificant observation is price of their computer is reasonable
with mean value of 2.29. Weighted average mean scale for price fairness is 2.16,
which indicates that on an average customer loyalty towards computer brand are
significantly affected by price fairness.
Table 9 Customer loyalty on customer satisfaction
"My computer is a good F 35 58 21 4 0 118 1.95
% 29.66 49.15 17.80 3.39 0.00 100
value for the money I
paid" A% 78.81 17.80 3.39
"I'm satisfied with the F 23 62 26 7 0 118 2.14
hardware functionality of % 19.49 52.54 22.03 5.93 0.00 100
my computer " A% 72.03 22.03 5.93

"I'm satisfied with F 29 55 26 7 1 118 2.08
operating functionality of % 24.58 46.61 22.03 5.93 0.85 100
my computer" A% 71.19 22.03 6.78

F 16 60 33 5 4 118 2.19
"I would recommend my % 13.56 50.85 27.97 4.24 3.39 100
computer to my friends" A% 64.41 27.97 7.63
"I don't think of F 24 41 41 9 3 118 2.27
switching to another % 20.34 34.75 34.75 7.63 2.54 100
computer" A% 55.08 34.75 10.17

The majority of the respondents agreed that their computer is a good value for the
money they have paid (78.81 percent), whereas some respondents disagree on the
statement (3.39 percent). However, the rest of the respondents were indifferent on
the statement (17.80 percent).
29
Likewise, majority of the respondents viewed that they are satisfied with the
hardware functionality of their computer (72.03 percent). However, others
disagree (5.93 percent) and the rest of the respondents (22.03 percent) are
indifferent on the statement.
The table indicates that majority of the respondents agreed that they are satisfied
with the operating functionality of their computer (71.19 percent). However, some
of the respondents disagree (6.78 percent) on the statement whereas rest of the
Regarding the responses on the statement, majority of respondents agreed that they
would recommend their computer to their friends (64.41 percent).Whereas, some
respondents do not believe they would recommend their computer to their friends
the statement.
Similarly, majority of the respondents viewed that they don't think of switching to
another computer (55.08 percent). However, some respondents disagree that they
don't think of switching to another computer (10.17 percent).The rest of the
respondents (34.75percent) are indifferent towards the statement.
The mean of the customer satisfaction towards customer loyalty ranges from a
minimum value of 1.95 to the maximum value of 2.27. Among them, the most
significant observation of the respondents regarding customer satisfaction is
considered their computer is a good value for the money they have paid with mean
value of 1.95 whereas, the most insignificant observation show that they don't
think of switching to another computer with mean value of 2.27.
Weighted average mean scale for customer satisfaction is 2.13, which indicates
that customer loyalty towards computer brands are significantly affected by
customer satisfaction. In other words, the result indicates that higher the customer
customer satisfaction higher would be customer satisfaction.
Table 10: Customer loyalty on battery features
30
"My computer brand offer F 28 61 28 1 0 118 2.02
product with excellent % 23.73 51.69 23.73 0.85 0.00 100
battery features" A% 75.42 23.73 0.85

"I chose my computer F 21 69 24 3 1 118 2.07
because of its battery % 17.80 58.47 20.34 2.54 0.85 100
features" A% 76.27 20.34 3.39

"I think this computer brand F 21 59 33 5 0 118 2.19
relate to better performance % 17.80 50.00 27.97 4.24 0.00 100
regarding battery " A% 67.80 27.97 4.24

F 15 58 37 5 3 118 2.25
"I think this brand has best % 12.71 49.15 31.36 4.24 2.54 100
battery feature than others' " A% 61.86 31.36 6.78
"I think my computer brand F 24 53 35 4 2 118 2.14
products relate to durable % 20.34 44.92 29.66 3.39 1.69 100
qualities". A% 65.25 29.66 5.08

The majority of the respondents agreed that their computer brand offer product
with excellent battery features (75.42 percent), whereas some respondents disagree
on the statement (0.85 percent). However, the rest of the respondents were
indifferent on the statement (23.73 percent).
Likewise, majority of the respondents viewed that they chose their computer
because of its battery feature increases (76.27 percent). However, others disagree
(3.39 percent) and the rest of the respondents (20.34 percent) are indifferent on the
statement.
The table indicates that majority of the respondents agreed that they think that
computer brand relate to better performance regarding battery (67.80 percent).
However, some of the respondents disagree (4.24 percent) on the statement
whereas rest of the respondents (27.97 percent) indifferent on the statement.
Regarding the responses on the statement, majority of respondents agreed that their
brand has best battery feature than others' (61.86 percent).Whereas, some
31
respondents do not believe in the statement (6.78 percent). However, rest of the
respondents are (31.36 percent) indifferent on the statement.
Similarly, majority of the respondents viewed that they think their computer brand
product relates to durable qualities (65.25 percent). However, some respondents
disagree (5.08 percent).The rest of the respondents (29.66percent) are indifferent
towards the statement.
The mean of the battery features towards customer loyalty ranges from a minimum
value of 2.02 to the maximum value of 2.25. Among them, the most significant
observation of the respondents regarding customer satisfaction is considered that
their computer brand offer product with excellent battery features with mean value
of 2.02
Weighted average mean scale for battery feature is 2.13, which indicates that on an
average customer loyalty towards computer brands are significantly affected by
battery features.
Table 11: Customer loyalty on perceived brand quality
"The overall F 36 63 15 4 0 118 1.89
performance of my % 30.51 53.39 12.71 3.39 0.00 100
computer is good". A% 83.90 12.71 3.39

"I think my computer F 24 63 27 3 1 118 2.07
brand have a reputation % 20.34 53.39 22.88 2.54 0.85 100
for the higher quality". A% 73.73 22.88 3.39

"My computer meets all F 24 58 30 6 0 118 2.15
32
the necessary % 20.34 49.15 25.42 5.08 0.00 100
requirement". A% 69.49 25.42 5.08
"My computer brand F 22 60 29 5 2 118 2.13
offers very durable % 18.64 50.85 24.58 4.24 1.69 100
products". A% 69.49 24.58 5.93

" My computer is F 26 61 28 3 0 118 2.07
reliable and trust % 22.03 51.69 23.73 2.54 0.00 100
worthy" A% 73.73 23.73 2.54

The majority of the respondents agreed that the overall performance of their
computer is good (83.90 percent), whereas some respondents disagree on the
statement that the overall performance of their computer is good (3.39 percent).
However, the rest of the respondents were indifferent on the statement (12.71
percent).
Likewise, majority of the respondents viewed that they think their computer brand
have a reputation for the higher quality (73.73 percent). However, others disagree
(3.39 percent) and the rest of the respondents (22.88 percent) are indifferent on the
statement.
The table indicates that majority of the respondents agreed that their computer
meets all necessary requirement (69.49 percent). However, some of the
respondents disagree (5.08 percent) on the statement whereas rest of the
Regarding the responses on the statement, majority of respondents agreed that their
computer brand offers very durable products (69.49 percent).Whereas some
respondents do not believe that their computer brand offers very durable products
the statement.
Similarly, majority of the respondents viewed that their computer is reliable and
trust worthy (73.73 percent). However, some respondents disagree that their
33
computer is reliable and trust worthy (2.54 percent).The rest of the respondents
(29.66 percent) are indifferent towards the statement.
The mean of the perceived brand quality towards customer loyalty ranges from a
significant observation of the respondents regarding perceived brand quality is
considered that the overall performance of their computer is mean value of 1.89
whereas, the most insignificant observation show that their computer meet all the
necessary requirement with mean value of 2.15.
Weighted average mean scale for perceived brand quality is 2.06, which indicates
that customer loyalty towards computer brands is significantly affected by brand
loyalty. In other words, the result indicates that more the customer has positively
perceive the brand, higher would be customer loyalty.
Table 12: Customer loyalty on hardware functionality:
F 21 41 40 10 6 118 2.28
"My computer has good % 17.80 34.75 33.90 8.47 5.08 100
hardware functionality" A% 52.54 33.90 13.56
"I chose my computer F 12 54 36 10 6 118 2.32
because of its hardware % 10.17 45.76 30.51 8.47 5.08 100
functionality" A% 55.93 30.51 13.56

I think my computer brand F 15 49 39 10 5 118 2.33
provides best hardware % 12.71 41.53 33.05 8.47 4.24 100
functionality compared to
other brands A% 54.24 33.05 12.71
"The hardware F 16 51 33 12 6 118 2.30
specification of my % 13.56 43.22 27.97 10.1 5.08 100
7
34
A% 56.78 27.97 15.25
computer is reliable."
"My computers brand is F 14 46 38 11 9 118 2.31
mainly famous for its % 11.86 38.98 32.20 9.32 7.63 100
hardware features." A% 50.85 32.20 16.95

The majority of the respondents agreed that they were afraid that their computer
has good hardware functionality (52.54 percent), whereas some respondents
disagree on the statement (13.56 percent). However, the rest of the respondents
were indifferent on the statement (33.90 percent).
Likewise, majority of the respondents agreed that they chose their computer
because of its hardware functionality (55.93 percent). However, others disagree
(13.56 percent) and the rest of the respondents (30.51 percent) are indifferent on
the statement.
The table indicates that majority of the respondents viewed that their computer
brand provides best hardware functionality compared to other brands (54.24
percent). However, some of the respondents disagree (12.71 percent) on the
statement whereas rest of the respondents (33.05 percent) indifferent on the
statement.
Likewise, majority of respondents agreed that the hardware specification of their

computer is reliable (56.78 percent).Whereas, some respondents do not believe the
statement (15.25 percent). However, rest of the respondents are (27.97 percent)
indifferent on the statement.
Similarly, majority of the respondents viewed that their computer brand is mainly
famous for its hardware features (50.85 percent). However, some respondents
disagree (16.95 percent).The rest of the respondents (32.20 percent) are indifferent
towards the statement.
35
The mean of the hardware functionality towards customer loyalty ranges from a
significant observation of the respondents regarding hardware functionality is "My
computer has good hardware functionality" mean value of 2.28 whereas, the most
insignificant observation show that they think that their computer brand provides
best hardware functionality compared to other brands with mean value of 2.33.
Weighted average mean scale for hardware functionality is 2.31, which indicates
that on an average customer loyalty towards computer brand is significantly
affected by hardware functionality.
2.1.13 Correlation analysis:

Having indicated the descriptive statistics, Kendall’s correlation coefficients are
computed and the results are presented in Table. More specifically, it shows the
correlation coefficients of dependent and independent variables for selected
different computer users.
The results are based on 118 observations by using linear regression model. The
independent variables is PF (Price fairness). CS (Customer satisfaction), BE is
(brand experience), PBQ (Perceived brand quality) and BSC is (brand switching
cost).
Table 13: Kendall’s Tau correlation coefficients matrix for the dependent and
independent variables for customer loyalty
Mean SD PF CS BF PBQ HWF CL

PF 2.239 0.524 1.000
CS 2.183 0.655 0.332 **
1.000
BF 2.173 0.553 0.353 **
0.632** 1.000
PBQ 2.081 0.581 0.380** 0.608** 0.585** 1.000
HWF 2.525 0.797 0.389** 0.347** 0.406** 0.315** 1.000
CL 2.151 0.542 0.316** 0.435** 0.430** 0.429** 0.350** 1.000
Notes: The asterisk signs (**) and (*) indicate that the results are significant at
1 percent and 5 percent level respectively
36
The result shows that price fairness positively correlated to customer loyalty
towards computer brands. It indicates that more the price is fairer, higher would
be customer loyalty. Likewise, customer satisfaction positively correlated to
customer loyalty towards computer brands. It indicates that higher the customer
satisfaction higher would be customer loyalty. Similarly, battery features
positively correlated to customer loyalty towards computer brands. It means that
better battery features leads to increase in customer loyalty. The result also
shows that perceived brand quality positively correlated to customer loyalty
towards computer brands. It indicates that more the customer have positively
perceived the brand, higher would be customer loyalty. Likewise, hardware
functionality is positively correlated to customer loyalty towards computer
brands. It indicates that better hardware functionality, higher would be customer
loyalty.
2.2 Findings and discussions

The research was conducted to find out the factors influencing customer loyalty
towards computer brands and their relationship with customer loyalty. This
project was conducted among respondents among various age groups and
occupations so that information could be gathered broadly among all kinds of
computer users. Questionnaire was distributed among 118 respondents and they
were asked to share their opinion. Following opinions were gathered during the
research works:
2.2.1 Respondents profile
37
This section discusses the information of respondents. Different variables i.e.
gender, age, education, profession, monthly income, were taken into
consideration during this research work. Based on the analysis of data, the major
findings of this study are summarized as under:
1. Majority of respondents are male (65.3 percent) and the rest of the respondents
are female (34.7 percent).
2. Majority of the respondents, i.e. 73 out of 118 respondents lie in the age group
below 25 years, constituting 61.9 percent of total respondents. 35 respondents
constituting 29.7 percent of total respondents are from 25-35 years age group.
Similarly, among 118 respondents, 7 respondents lie in the age group of 35-45
years which is 5.9 percent of total respondents. Whereas, 3 respondents lie in the
age group above 55 years constituting 2.5 percent of total respondents.
3. Majority of the respondents are undergraduate (45.8 percent) followed by gradate
(18.6). Similarly, high school (17.8 percent), above graduate (16.1 percent) and
school level (1.7 percent).
4. Majority of the respondents (67.8 percent) are less than 40,000 followed by (11.9
percent) of respondents belong to the monthly income level of 40,000-50,000 as
well as more than 70,000. Similarly, (6.8 percent) of the respondents belong to
the income level of 50,000-60,000 and rest of respondents (1.7 percent) belongs
to 60,000-70,000 monthly family income level.
5. Majority of the respondents profession are student (59.3 percent) followed by
service (19.5 percent), other (20.16 percent) and business (9.3 percent).
2.2.2 Opinion of the Respondents

This section discusses about the opinion about the respondents about the subject
matter of our questionnaire. This section provides information about the factors
influencing customer loyalty towards computer brands. The findings are
discussed below:
1. Results show that 46.6% of the total respondents use computer that costs less than
Rs 40,000. 33.9% use computers that falls under the range of Rs 40,000-50,000,
38
7.6% use computers that falls under the range of Rs 50,000-60,000 and 11.9% use
computers that costs above Rs. 60,000.
2. Result indicates that customer perception leads to customer loyalty towards
computer brands since the weighted average mean scale for customer loyalty is
2.09, which indicates that on an average customer are loyal towards computer
brand.
3. Result indicates that more the prices are fairer, higher would be customer loyalty
since the weighted average mean scale for price fairness is 2.16, which indicates
that on an average customer loyalty towards computer brand are significantly
affected by price fairness.
4. Results indicate that on an average, customer loyalty towards computer brand is
significantly affected by customer satisfaction. Weighted average mean scale for
customer satisfaction is 2.13. In other words, the result indicates that higher the
customer satisfaction higher would be customer loyalty.
5. Results indicate that on an average, customer loyalty towards computer brand are
significantly affected by perceived brand quality since weighted average mean
scale for perceived brand quality is 2.06. In other words, the result indicates that
more the customer has positively perceive the brand, higher would be customer
loyalty.
6. Results indicate that on an average, customer loyalty towards computer brand is
significantly affected by battery features since weighted average mean scale for
battery features is 2.13. They have positive relationship.
7. Results indicate that on an average, customer loyalty towards computer brand are
significantly affected by hardware functionality since weighted average mean
scale for hardware functionality is 2.31. In other words, the result indicates that
more the hardware functionality, higher would be customer loyalty.
6. The results of correlation analysis show that price fairness, customer satisfaction,
battery features, perceived brand quality and hardware functionality have
positive relationship with customer loyalty towards computer brands.
39
CHAPTER III
CONCLUSION AND ACTION IMPLICATION
This chapter provides the brief summary of the entire study and highlights the major
findings of the study. In addition, major conclusions are discussed in separate
section of this chapter which is followed by some implications regarding the factors
influencing the customer loyalty towards compute brands.
3.1 Conclusion
The opinions of 118 respondents were analyzed in order to determine the factors
influencing customer loyalty and to find the relationship of those factors and
40
customer loyalty towards computer brands. The study focuses on the primary data
analysis where questionnaire was distributed to computer users.
The study concludes that there are various factors that influence customer loyalty
and satisfaction which are price fairness, battery features, perceived brand quality,
customer satisfaction and hardware functionality. The demographic factors such as
age, gender, profession, academic background, monthly income influence the
customer satisfaction and loyalty towards specific computer brand. It is found that
the respondents who belong to service sectors, used computers that fall under the
price range of Rs 40,000-50,000, students used computer that fall under the price
range of Rs. 40,000 and respondents with business professions use computer that
fall under the price range of Rs. 50,000-60,000. Price appeared to be a significant
factor for purchase of particular computer and price fairness, battery features, ,
perceived brand quality and hardware functionality are concluded to be the major
factors for influencing customer loyalty among the computer users.
The findings of this research show that the perceived brand quality is the major
determinant of customer loyalty. It influences the customer loyalty more than any
other factor does. Moreover, the study concludes that the customer loyalty is
positively influenced by factors such as perceived brand quality, customer
satisfaction, battery features, price fairness and hardware functionality.
3.2 Action Implication

In an attempt to determine the factor influencing customer loyalty towards
computer brands among various users, this study has been able to document the
various factors that influence customer loyalty towards computer brands. Thus,
based on the findings, the following recommendations have been made:
1. The study helps the marketers to understand the various factors that influence
customer loyalty towards computer brand in Nepalese market.
2. This study helps the marketers to know the reason for purchasing particular
computer brand.
41
3. This study helps in understanding the preferences of computer brands based on
demographic characteristics.
4. This study shows the relationship between customer loyalty and the major factors
that influence it towards computer product.
5. This study indicates that perceived brand quality is the major reason for customer
loyalty through which marketers could develop proper strategies regarding brand
quality.
6. This study can be used by marketers as a source of information while conducting
market research in relatable subject matters.
42
REFERENCES
Ahmed, Z., Gull, M., and Rafiq, U., (2015). Factor affecting customer switching
behavior: mobile phone market in Manchester- United Kingdom. International Journal
of Scientific and Research Publication, 5(7), 1-7.
Alhuwaishel, N. S., and AL-Meshal, S. A. (2018). The impact of perceived value,

quality, and loyalty on purchase decision in the accessories department: Study on Saudi
females. British Journal of Marketing Studies, 6(4), 21-31.
Bakator, I., Boric, S,.and Paunovic, M,. (2017). Influence of advertising on consumer-
based customer loyalty. Journal of Engineering Management and Competitiveness, 7(2),
75-83.
Hortamani, A., Ansari, A., and Akbari, M. (2013). Studying impact of price satisfaction
on loyalty: A case study in electric generating plant Snowa. International Journal of
Academic Research in Accounting, Finance and Management Sciences, 3(4), 46-50.
Khizindra, T.M., Al-Azzam,A.F.M.., and Khanfar,I. A. (2015). An empirical study

of factor affecting customer loyalty of telecommunication industry in the kingdom of
saudiarabia. Britist Journal of Marketing Studies, 3(5), 99-115.
Malik, M. E., Ghafoor, M. M., and Iqbal, H. K. (2012). Impact of brand image, service
quality and price on customer satisfaction in pakistan telecommunication sector.
International Journal of Business and Social Science 3(23), 123-129.
Mohsan, F., Nawaz, M. M., Khan, M. S., Shaukat, Z., & Aslam, N. (2011). Impact of
customer satisfaction on customer loyalty and intentions to switch: Evidence from
banking sector of Pakistan. International Journal of Business and Social Science, 2(16),
263-270.
Pandey, D., & Joshi, P. R. (2010). Service quality and customer behavioral intentions: A
California. Journal of Operations Management, 8(2), 72-81.
Ramakrishna, V., Ramkumar, D., Thalali, P., Rajan, k. (2008). Perception of product
attributes in brand switching behavior-An explation through multidimensional scaling.
Journal of Management and Labour Studies, 33(1), 142-156.
i
Soonarong, T (2011). Factor affecting customer loyalty toward Taekwondo martial arts
of Jinya Gym in Bangkok. American International of contemporary Research, 1(3), 15-
20.
Stan, V., Caemmerer, B., and Cattan-Jallet, R. (2013). Customer loyalty development:
The role of switching costs. The Journal of Applied Business Research, 29(5), 1541-
1554.
Zikiene, K. and Bakanauskas, A.P. (2006). Research of factors influencing loyal
customer switching behavior, 17 July.
ii
APPENDIX
Dear respondent,
I am bachelor’s level student of Nepal Commerce Campus and I am conducting an

academic research on “Factor influencing customer loyalty towards Computer
brand”. This is needed to meet the requirement for the Bachelor’s Degree in Tribhuwan
University. The major objective of this study is to analyze the customer’s perception
towards Computer brand among various users. So, this is a humble request to all the
respondents to fill up the questionnaire and feel free to answer the given questions
according to your understanding. Please be confident as all your responses will be
maintained absolutely confidential and used for only academic purposes. Your
participation in the study is anonymous.
Your participation in the study will be very highly appreciated.
Thank You!
Manju Pandey
i
Questionnaire for the study of the factors influencing customer
loyalty towards Computer brands.
Section A: Respondents' information

Name of the respondent (optional) ……………………….…
1. Gender
o Male
o Female
o Prefer not to say
2. Education
o School level
o High school
o Under graduate
o Graduate
o Above graduate
3. Profession
o Student
o Service
o Business
o Other
4. Price of computer
o Less than 40,000
o 40,000-50,000
o 50,000-60,000
o Above 60,000
ii
5. Age
o Under 25
o 25-35
o 35-45
o 45-55
o Above 55
6. Monthly income
o Under 40,000
o 40,000-50,000
o 50,000-60,000
o 60,000-70,000
o above 70,000
7. Does your computer fulfill all your requirements?

o Yes
o No
8. Would you like to switch to another computer brand?

o Yes
o No
9. Are you satisfied with price you paid for your computer?
o Yes
o No
10. Do you recommend your computer brand to others?

o Yes
o No
11. If you had to buy another computer, would you still buy buy the same brand?
o Yes
o No
iii
Section B: customer loyalty towards computer brand.
Please make a tick (√) in an appropriate option for each of the following
questions.
Independent variables
1. Price fairness
[1=strongly Agree, 2=Agree, 3= neither agree nor disagree (neutral), 4=Disagree,
5=strongly Disagree]
Statement 1 2 3 4 5
The price of my computer changes frequently.
I think the lower price does not guarantee higher satisfaction.
The price of my computer is reasonable.
The price of my computer is comparatively better than others' .
The price of my computer brand changes frequently.
2. Customer satisfaction
5=strongly Disagree]
Statement 1 2 3 4 5
My computer is a good value for the money I paid.
I'm satisfied with the hardware functionality of my computer.
I'm satisfied with the operating functionality or software system of

my computer.
iv
I would recommend my computer to my friends.
I don't think of switching to another computer.
3. Battery features
5=strongly Disagree
Statement 1 2 3 4 5
"My computer brand offer product with excellent battery features"

"I chose my computer because of its battery features"
"I think this computer brand relate to better performance regarding
battery "
"I think this brand has best battery feature than others' "
"I think my computer brand products relate to durable qualities".
4. Perceived brand quality

5=strongly Disagree
Statement 1 2 3 4 5
The overall performance of my computer is good.
I think my computer brand have a reputation for the higher quality.
My computer meets all the necessary requirements.

My computer brand offers very durable products.
My computer is reliable and trust worthy.
v
5. Hardware functionality:
5=strongly Disagree
Statement 1 2 3 4 5
"My computer has good hardware functionality"
"I chose my computer because of its hardware functionality"
"I think my computer brand provides best hardware functionality

compared to other brands "
"The hardware specification of my computer is reliable."
"My computers brand is mainly famous for its hardware features."
Dependent variables
1. Customer loyalty
5=strongly Disagree
Statement 1 2 3 4 5
I often tell positive things about my computer to other.
I consider myself to be loyal to my computer.

My brand is my first choice among computer brands.
I would choose my current computer brand even if the other brands
have the same functionality as my current computer.
If I could I would rather change to another company's computer.
Thank You!
vi
vii

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FACTOR INFLUENCING CUSTOMER LOYALTY

TOWARDS COMPUTER BRANDS

A summer project submitted to:

In the partial fulfillment of the requirement for the degree of

1.6.3 Population and Sample.....................................................................................9

Table 1: Gender of the respondents ……………………………………………….16

Figure 1: Gender of the respondents ……………………………………………16

1.1 Context information

Customer satisfaction leads to loyalty, positive word of mouth, and recommendation,

Brand shows a reputation of a company’s through their products or services. Brand

1.2 Statement of problem

1.3 Purpose of the study

1.4 Significance of the study

1.5 Literature review

Bakator et al. (2017) examined influence of advertising on consumer- based

Similarly, the consumer switching behaviors basically the behavior of consumers in

1.6 Research Methodology

1.6.1 Research Design

1.6.2 Source of data collection

1.6.3 Population and Sample

 Rank order questions

1.6.5 Data analysis tools

1.7 Limitations of the study

1.8. Conceptual Framework

Fig: Conceptual framework

DATA PRESENTATION AND ANALYSIS

2.1. Respondent information

2.1.1 Data presentation on the basis of gender of respondents:

Gender Number of respondents Percentage (%)

Figure 1: Gender of respondents

2.1.2 Data presentation based on age

Table 2: Classification of respondents on the basis of age

Age No. of respondents Percentage

Figure 2: Classification of respondents by age

2.1.3 Data presentation on the basis of education

Table 3: Classification of the respondents on the basis of education

Education Number of respondents Percentage (%)

School level 2 1.7

Figure 3: Classification of the respondents on the basis of education.

2.1.4 Data presentation on the basis of monthly family income:

Table 4: Classification of the respondents by monthly income level

Figure 4: Classification of the respondents by monthly income level

Monthly family income

Number of respondents Percentage (%)

2.1.5 Data presentation on the basis of profession

Table 5: Classification of the respondents by profession

Profession Number of respondents Percentage (%)

Figure 5: Classification of the respondents by profession

2.1.6 Price of the Computer

Price of computer No. of respondents Percentage

less than 40000 55 46.6

Figure 6: price of computer

Price of the computer

less than 40000 40000-50000 50000-60000 above 60000

2.1.7 "Computer fulfills all requirements"

Computer fulfills all requirement

Yes (%) No(%)

Source: Questionnaire Survey 2019

2.1.8 "Decided to switch brand"

A structured questionnaire regarding brand switching was conducted among 118

Decided to switch to another brand

yes (%) No (%)