FACTORS AFFECTING DECISION REGARDING

PURCHASE OF HOME APPLIANCES

(With References to Sarlahi T.V. Ghar, Lalbandi, Sarlahi)

A PROJECT WORK REPORT

Submitted By
Manisha Basnet
Jana Jyoti Multiple Campus
T. U. Registration No.7-2-379-115-2018
Exam Symbol No.: 703790056

Submitted to:
The Faculty of Management
Trribhuwan University
Kathmandu

In partial fulfillment of the requirements for the degree of

Bachelor of Business Studies (BBS)

Lalbandi, Sarlahi
April, 2023
 INTRODUCTION

1.1 Background of the study

Technology has been a very influential factor as an asset in every developmental sector.
It affects the daily life of every individual and the main importance has been sketched in
the households. The housewives in modern world not only seek to do their daily task at
home with ease but also as fast as possible. As we have seen the most of the daily works
of our households are moreover performed by women but hadn't given much thought
about making them easy. So, women nowadays are educated enough themselves to know
about how to compete their task easily. The demand of home appliances have increased
in the manner to help not only women but also men as doing the household work through
technology sounds fun now days.

The home appliances industry has seen most drastic change of a person‘s lifestyle with
the increase in the disposable income of an individual (Banarjee,2014). Again, according
this scholar most of the companies of home appliance have shifted their focus to provide
the consumer with the attractive advertisement about their product and to attract mainly
women for day to day usable home appliances like washing machine, refrigerator, dish
washer etc. With the increasing competition there has been continuous increase in the
income of the consumers which has led to increase in the standard of living of every
consumer and increase in standard of living means to promote them in terms of using a
high class product. Therefore, companies have also bringing innovations in their product.
There has been a constant increase in the consumer preference of advanced technology
and latest products available in the market and this has been possible only due to the
changed government policies of Nepal and also the entrance of many local companies of
electrical home appliances who offer the latest technology product as good as of any
famous brand of a cheaper price.

1.2 Objectives of the study

The purpose of this research is to determine the factors affecting consumer‘s behavior
and preferences before buying any electric appliances for the household uses in Nepal. In
this study, I was primarily concerned to study about that which factors regarding
purchase of home appliances influence the purchase intention of the consumers while
actually making the purchase. This research enables the manufacturer or retailer of home
appliances to focus on one of the major factor which influence customer before buying
home appliances.

More specifically, the research is concerned to-

1. To determine most and least influencing factor while buying home appliances.

2. To analyze the customer response of marketing stimuli of the home appliances in

Nepal.

1.3 Significance of the study

By conducting this research on the factors affecting decision regarding purchase of home
appliances, I was able to identify the potential customers of home appliances. Through
this research, I was able to consider the perception of the product attributes before buying
the home appliance. This research was also significant to all the daily users, tech
developers etc who are trying to establish their business recently for the betterment of
customer as with the development of technology in different other sectors. Common
people like us also feel that their daily work which they perform on daily basis manually
become easier by upgrading to the use of machines which will be automatic. More than
million people in the world are currently working in one or another way of research in
search of some easy and efficient way of finishing their daily work at homes as soon as
possible and leave for their particular work. And tech developers are also finding
advanced form of technology to finish consumer task at lesser time. And they are even
generating a lot of income through it while making their customer happy with
innovations and adavance tenchnology for common and daily household activities.

As I was directly involved in the field to collect relevant information to support this
research, this research helped me to enhance and sharpen my personal skills.
In addition, this study is also useful to graduating students and future researchers so that
they can go through various literature reviews regarding the factors affecting decision
regarding purchase of home appliances and also conduct the similar survey in other
institutions.

1.4 Literature

The primary purpose of conducting review of literature is to get familiar with the required
theoretical and conceptual knowledge of the field of interest.

Nepali consumers have been turning to energy-efficient electronic products as the

country continues to reel under extended power outages. Local distributors of various
electronic brands said that demand for energy saving electronic products had taken off in
recent times. Him Electronics, the authorised distributor of Samsung home appliances in
Nepal, said that more than 70 percent of the refrigerators it has been selling in the
domestic market have a five-star energy rating.“Since the country is facing long hours of
power cuts, it is very difficult for households to keep food products frozen for 24 hours a
day,” said Ganesh Raj Pandey, deputy sales manager of the company. “So, we have
launched a wide range of energy-efficient refrigerators,” he said.The company claims that
refrigerators with a five-star rating use 35-40 percent less energy. “As they are equipped
with a Digital Inverter Compressor, they consume less power than other products with a
normal compressor,” he said. These fridges cost from Rs 43,990 to Rs 51,990.

Likewise, Him Electronics offers washing machines fitted with a Digital Inverter Motor
which consume less power. The company claimed that these machines also produce less
noise and are more durable than traditional washing machines.Pandey said that 50
percent of the washing machines they sell have Digital Inverter Motors. Pandey added
that the company also offers microwave ovens and LED televisions which consume less
power. Microwave ovens with a Triple Distribution System reduce wastage of
microwaves and so they use less energy and cook food faster,” he added.

Meanwhile, LG, one of the top selling consumer durable brands in the country, recently
launched a campaign to increase awareness about the benefits of using energy-efficient
consumer electronics.
“We launched a ‘save electricity’ campaign with the prime objective of promoting sales
and use of LG’s LED televisions to minimize the high amount of electricity consumed by
CRT televisions,” said Niraj Baniya, product manager at CG Electronics, the authorised
distributor of LG Electronics in Nepal. “LED televisions use 70 percent less electricity
compared to CRT televisions.”

The company also sells a wide range of power-saving refrigerators with Power Cut
Evercool Technology which the company claims can keep food fresh for around 7 hours
during load-shedding. “People can switch off the refrigerator in the night and save on
their electricity bills,” he added. Prices of single-door refrigerators with this technology
start at Rs 27,000 in the domestic market.

1.5 Research methods

Research methodology is a process of steps used to collect and analyze to increase our
understanding of a topic or issue. This is the research done on, “factor affecting the
purchase of home appliances”. It helps to analyze, examine and interpret various aspect
of research work. Research is a scientific and systematic search for pertinent information
on a specific topic.

1.5.1 Research Design

The research design which is used is descriptive in nature as it gives information related
customer behavior, for example, consumer satisfaction and consumer loyalty.
Further,causal research design is used as the cause and effect relationships between
different variables are to be uncovered too. This research design is used with the aim of
studying the facts and characteristics of the related variables of the study. This design
uses the scientific method of collecting, classifying, and analyzing related data, facts and
figures.

1.5.2 Population

All people are the population of this research as every individual uses home appliances
one way or other.
1.5.3 Sample size

People who are involve in purchasing of the home appliances in Lalbandi are the sample
for this research. Sample size is of 150 people. A questionnaire is distributed among these
sample population and data has been extracted accordingly.

1.5.4 Sampling method

Simple random sampling method of non-probability sampling is used to find out the
result from the sample size.

1.5.5 Sources of data

The study is fully based on primary data, in this process; some of the relevant published
documents have also been collects to analyze different aspects of study. All the essential
data required for the compilation of the report is broadly classified into two categories:

a) Primary data

b) Secondary data.

The main source of collecting the information or the data is through the questionnaires.
The questionnaire was designed to understand the growing the purchasing behaviour
among people of Lalbandi. Here the nature of data is primary and a secondary which has
been used from the various secondary sources in necessity. Secondary data comprises of
various magazines and books. All sort of information was not available due to lack of
time for secondary sources of data, magazines, articles; internets were used to provide
precision decision. The results obtained from secondary sources of data are easily and
immediately available. It helps to identify the concepts, gives insights about the issues of
subject matter. The magazines, articles, journals

1.5.6 Data collection instrument

Questionnaire is used as an instrument to collect the primary data from the sample size.
Some information is collected from Internet, Books and journals.
 REFERENCES

Agrawal, G. R. (2057). Marketing Management in Nepal. Kathmandu: M.K. Publishers and

Distributors.

Koirala, K. D. (2002). Marketing Research. Kathmandu: Buddha Academic Publishers and

Distributors.

Kotler, P. (1990). Marketing Management, Analysis Planning, Implementation and Control. New
Delhi: Prentice Hall of India.

Maharjana, D., (2002). Marketing Research. Kathmandu: Buddha Academic Publishers and
Distributors

Sharma, G. R. (2001). Marketing Management. Kathmandu: BhundipPrakashan and College of

Appliced Business.

Shrestha, S. K. (1992). Marketing Strategy and Management. Kathmandu: Publish by Padam

Educational Traders.