CONSUMER PREFERENCE FOR GOLDSTAR SHOES IN

KATHMANDU VALLEY

BY
ANISH MAHARJAN

SCHOOL OF MANAGEMENT
ASIA e UNIVERSITY

July 17, 2022

A Project Paper Submitted in Partial Fulfillment of the Requirement
for the Master of Business Administration

By :
ANISH MAHARJAN
M60105200153

SCHOOL OF MANAGEMENT
ASIA e UNIVERSITY

SEMESTER 6TH
 ABSTRACT

The survey on "Consumer Preference for Goldstar Shoes in Kathmandu

Valley" was carried out to discover what influences customers' shoe preferences.
The Nepalese footwear industry has changed dramatically in the last few years.
As a result of this shift in demand, consumer behavior has also altered
dramatically. For this reason, the purpose of this study was to examine the
consumer behavior of Goldstar Shoes customers in the market. Gender and
generational disparities in purchase behavior, as well as brand loyalty among
Nepalese footwear consumers, were examined as part of the study's primary
focus. The study collected data from 100 people in the Kathmandu Valley via
questionnaires in order to meet its goals. The data was evaluated using a statistical
tool and Excel software. A questionnaire was circulated to fashion and footwear
enthusiasts, students, employees, and businesspeople in the Kathmandu Valley to
gather data for the study. Internet and personal contact were used to deliver the
survey. Women's attitudes toward shoe shopping were significantly different from
those of males, according to the results of a poll. Quality, advertisement, price,
reference group, and consumer perception were also found to be the most
important criteria in determining a person's shoe selection. A further finding of the
study was that there is a significant positive influence of price in consumer’s
preference for Goldstar shoes

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 ACKNOWLEDGEMENTS

I would want to use this opportunity to extend my most sincere gratitude

to everyone who made it possible for me to finish writing this report. My gratitude
goes out to my supervisor, Dr. Sushil Pant, whose assistance in generating
suggestions and encouragement allowed me to coordinate my project, particularly
in writing this report. In particular, I want to express my appreciation for his aid in
writing this paragraph

In addition, I would like to express my gratitude to Virinchi College for providing

the opportunity to participate in this project's work. I am really thankful of this
college. A special thank you goes out to my colleagues for their assistance in
putting the parts together and for their insightful comments regarding the project.
Last but not least, I would want to extend a great deal of gratitude to the
individuals, both formal and informal, who have contributed their full efforts to
assisting me in accomplishing the objective.

I would want to express my gratitude to each and every one of my respondents for
taking the time to answer my questions. In addition, our heartfelt thanks go out to
Google Docs, SPSS, and Microsoft Word for their contributions toward the
completion of this report.

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APPROVAL SHEET

v
 DECLARATION

NAME: ANISH MAHARJAN

STUDENT ID: M60105200153

I hereby declare that; this project paper is entirely my own unless stated
otherwise. Any contributions from other persons or sources are duly referenced or
acknowledged.

Signature: Date: August 18, 2022

vi
 TABLE OF CONTENTS

ABSTRACT ...................................................................................................... iii

ACKNOWLEDGEMENTS ............................................................................. iv

APPROVAL SHEET ........................................................................................ v

DECLARATION .............................................................................................. vi

TABLE OF CONTENTS ................................................................................ vii

LIST OF TABLES ............................................................................................ x

LIST OF FIGURES ......................................................................................... xi

CHAPTER 1: INTRODUCTION ........................................................................ 1

1.1 Background of the Study ............................................................................ 1

1.2 Problem Statement ...................................................................................... 2

1.3 Research Questions ..................................................................................... 3

1.4 Research Objectives .................................................................................... 3

1.5 Significance of the study ............................................................................. 3

1.6 Scope of Study ............................................................................................. 4

1.7 Limitations of the study .............................................................................. 4

1.8 Chapters Organization ............................................................................... 4

CHAPTER 2: LITERATURE REVIEW ............................................................ 6

2.1 Conceptual Review ...................................................................................... 6

2.1.1 Consumer preference in Nepal ........................................................... 7

2.1.2 Status of footwear in Nepal ................................................................. 8

2.2 Operational Review ....................................................................................... 9

2.2.1 Brand Image and consumer preference ............................................. 9

2.2.2 Advertisement and consumer preference .......................................... 9

2.2.3 Consumer’s perception and consumer preference ......................... 10

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 2.2.4 Reference group and consumer preference ..................................... 11

2.2.5 Price and consumer preference......................................................... 11

2.3 Conceptual Framework ............................................................................ 13

2.4 Research Gap ............................................................................................. 14

CHAPTER 3: METHODOLGY ........................................................................ 15

3.1 Introduction ............................................................................................... 15

3.2 Research design ......................................................................................... 15

3.3 The study population ................................................................................ 15

3.4 Sample design ............................................................................................ 15

3.5 Data collection instrument ....................................................................... 16

3.6 Data analysis .............................................................................................. 16

3.7 Research Hypothesis ................................................................................. 16

CHAPTER 4: FINDINGS .................................................................................. 17

4.1 Introduction ............................................................................................... 17

4.2 Descriptive statistics .................................................................................. 17

4.2.1 Gender ................................................................................................. 17

4.2.2 Age Group of Respondents................................................................ 18

4.2.3 Marital Status ..................................................................................... 18

4.2.4 Occupation of Respondents ............................................................... 19

4.2.5 Education of Respondents ................................................................. 19

4.2.6 Income level ........................................................................................ 20

4.3 Variable analysis ....................................................................................... 21

4.3.1 Impact of brand image on consumer preference ............................ 21

4.3.2 Impact of advertisement on consumer preference .......................... 21

4.3.3 Impact of consumer perception on consumer preference .............. 22

viii
 4.3.4 Impact of reference group on consumer preference ....................... 22

4.3.5 Impact of price on consumer preference ......................................... 23

CHAPTER 5: SUMMARY AND CONCLUSIONS ........................................ 24

5.1 Summary .................................................................................................... 24

5.2 Conclusion.................................................................................................. 24

REFERENCES ................................................................................................ 26

APPENDICES ................................................................................................. 28

Questionnaire .................................................................................................. 28

ix
 LIST OF TABLES

Table 4.2.1: Gender of Respondents ..................................................................... 17

Table 4.2.2: Age Group of Respondents ............................................................... 18

Table 4.2.3: Marital Status of respondents............................................................ 18

Table 4.2.4: Occupation of Respondents .............................................................. 19

Table 4.2.5: Education of Respondents................................................................. 19

Table 4.2.6: Income level of Respondents ............................................................ 20

Table 4.3.1 Analysis of brand image on consumer preference ............................. 21

Table 4.3.2 Analysis of advertisement on consumer preference .......................... 21

Table 4.3.3 Analysis of perception on consumer preference ................................ 22

Table 4.3.4 Analysis of reference group on consumer preference ........................ 22

Table 4.5.5 Analysis of price on consumer preference ......................................... 23

x
 LIST OF FIGURES

Figure 3.1: Conceptual Framework....................................................................... 13

xi
 CHAPTER 1: INTRODUCTION

1.1 Background of the Study

Footwear refers to wearing things that people put on their feet for safety,
pride or fashion purpose. All kinds of shoes, sandals, and boots are included in
footwear (Cambridge Dictionary, 2022). Many national and international shoe
brands with a wide range of styles are available in the Nepalese market. The
people are becoming more interested in buying shoes because of changes in
fashion and their ability to buy things (FMAN, 2016). The makers say that over
5,00,00,000 pairs of Nepalese shoes were made each year and The Footwear
Manufacturers Association of Nepal hoped that by 2020, the number of pairs of
shoes produced in Nepal will have increased to 45 million, covering 80% of the
domestic market and exporting 12 million pairs, reducing the country's footwear
trade deficit by 60% in volume and 240 percent in value, also FMAN also plans to
hire 120,000 more people while also reducing its dependency on Indian workers
from 30% to 10% (FMAN, 2016).

In the recent years, the Nepalese Footwear Industries are getting more popular
among the peoples in the domestic market and Nepalese Footwear has becoming
the first choice of the people rising in demand for the domestic footwear in the
country resulting a many more domestic footwear industries have been established
in the country and data shows there are 850 registered footwear industries in
Nepal, according to small and cottage scale industries. According to the Nepal
Footwear Manufacture's Association, the country has more than 2000 footwear
factories, both registered and unregistered (New Business Age, 2016). Goldstar
footwear started when universal group's first and most important business, the
footwear industry, which began around the middle of the 1970s known as Modern
Slipper Industry Pvt. Ltd. and Kiran shoes manufacturers. Since it started, the
group has grown to become the biggest group in Nepal that makes shoes. In 1990,
they came out with a brand called Goldstar that was priced in the middle and
offered good value. This was done to reach markets that cared more about price
(Goldstar Shoes, 2022).

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Goldstar is a strong brand that uses real materials and modern technology to make
its products. Goldstar is now sold all over Nepal and India, and it is also becoming
more and more popular in the west. The next thing off the assembly line was a
pair of slippers called Hathi, which came out in the early 1980s and are now sold
all over the country. This first-of-its-kind brand has been admired for 30 years.
This brand makes a lot of different kinds of EVA sandals and Hawaii slippers.
"Hathi Balio Ki Hathi Chap Chappal" is a very well-known slogan among people
who buy this brand. The style and durability of Hathi slippers and sandals are
known all over the country (Goldstar Shoes, 2022).

They have always put research and development (R&D) of new products,
technology, and customer service at the top of their list which has helped them
grow their business into a new market building strong relationships with
distributors and their customers all over India and the rest of the country
(Goldstar Shoes, 2022). They have also been lucky enough to get national
recognition as a business that is moving forward and is very well run and this has
come in the form of the best exporter award and the best tax payer in the export
category. The fact that they won these awards says a lot about how smart and
hardworking Footwear Industries' management and staff are, as well as how much
they care about developing new, cutting-edge technologies that improve the
health, safety, and comfort of the company's clients as a whole. In Kathmandu,
more than 3,000 people work directly in five different factories that make more
than 75,000 pairs of shoes every day (Goldstar Shoes, 2022).

1.2 Problem Statement

Many different footwear industries are expanding, and as a result, the number of
products they offer is becoming more diverse, as a result, the businesses that sell
these goods should not only concentrate on the characteristics of their wares, but
also work to maintain their quality and figure out how to remain at the forefront of
every customer's mind, additionally, both the intrinsic and the extrinsic
characteristics of their products should receive attention, as the overall success of
any company is determined by the degree to which customers are satisfied with
their purchases (The World Bank, 2018). So, the major problems discussed are:
• The factors that influence consumers for buying Goldstar footwear items?

2
 • Consumer satisfaction of the Goldstar footwear items that buy most of the
time?

1.3 Research Questions

The research questions are:
• What are the major factors that influence consumers for buying Goldstar
footwear items?

• Are the consumers satisfied with the Goldstar footwear items that buy
most of the time?

1.4 Research Objectives

The objectives of this research study are:

i. To find out the major factors that influence consumers for buying Goldstar
footwear items.

ii. To find out whether the consumers satisfied with the Goldstar footwear
items that they buy.

1.5 Significance of the study

The study of the research has following significances in different areas:
• Organization:

It will assist the concerned organization in determining the customer's

preference, taste, and selection. It may also assist the marketing department in
segmenting the market and implementing appropriate marketing tactics.
• Employee:

It will help employees to produce products as per the requirement and desired
by customer.
• Further Researchers:

It will be used as a resource by academics and practitioners alike that helps to

gain information on the consumer preference for the footwear and the
footwear market in Nepal.

3
1.6 Scope of Study

Entire consumers of Goldstar Shoes of different age group are population

for the study. It includes all the population demography for the data collection.
The questionnaires are distributed to students, employees, business persons, aged
persons and other professionals.

The samples for this study were obtained by a non-probability sampling approach
known as convenience sampling. It will be done at my earliest convenience. I
chose subjects at random for the study. When conducting a basic random sample,
each member of the population has an equal chance of being selected for sample
selection.
1.7 Limitations of the study

This report focuses on the customer preferences of Goldstar shoes within

the geographical region of the Kathmandu valley specifically. Despite the fact that
a firm operates in a variety of fields, the study should illuminate shedding some
information on the amount of satisfaction and preference held by the customers.
Primary data collection was used for this purpose by a distributing the
questionnaire to the various individuals situated around the Kathmandu valley.
Convenience sampling is used to pick the individuals or respondents, and thus
ensures that everyone has an equal chance of being chosen and selected as per the
convenience of the researcher. Since the information for the literature study came
from internet sources, the reliability of such online sources cannot be guaranteed.

1.8 Chapters Organization

The chapters included in this report are:

Chapter 1: In this chapter, the focus is on the study that was done into the
footwear business in general and the Goldstar footwear sector specifically. In
addition to this, it draws attention to some of the limitations of the study and a
description of the goal, with a focus on the relevance of the methodology of the
study should be included.

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Chapter 2: This chapter focuses on a review of the relevant literature to shed light
on the consumer preference as a dependent variable and its dependence on a
number of independent variables.

Chapter 3: Research methodology and research design are terms that define the
process of explaining research by taking into consideration a variety of sources of
data. This study is carried out by doing an analysis of the primary data obtained
via the use of a Google forms.

Chapter 4: This chapter discusses the interpretation of data and its presentation, as
well as the statistics and facts that are taken into consideration in order to analyze
the impact of the preference of consumers for Goldstar shoes in the Kathmandu
valley

Chapter 5: This chapter contains a summary, results, and conclusion, elaborating

on everything in a simplified manner while providing a brief overview of the
research, its ultimate findings, and its conclusion.

5
 CHAPTER 2: LITERATURE REVIEW

2.1 Conceptual Review

Purchase decision of a particular product is not always done by the user, the buyer
necessarily purchases the product, so the marketers have to decide whether they
should direct their promotional efforts toward the buyer or the user, and they have
to identify the person who is most likely to influence the decision in addition, the
marketers have to determine whether or not they understand customer behavior
and are able to predict how customers are likely to react to a variety of
informational and environmental cues, as well as being able to shape their
marketing strategies accordingly (Kotler, 2000).

Customers' behavior is the behavior that customers exhibit when looking for,
purchasing, using, assessing, and discarding products and services that they
believe would meet their needs, therefore, customer buying behavior is the actions
of people directly involved in getting, using, and getting rid of economic goods
and services, as well as the decision-making processes that come before and
determine these actions (Barmola & Srivastava, 2010).

It is crucial for businesses to have an awareness of consumer behavior and

purchasing patterns in order to design a marketing plan to target the appropriate
groups. Furthermore, each firm is directed to a distinct section of customers, and it
is merely required to pick a correct approach, capable of attracting and
maintaining desirable attention (Solomon et al., 2013).

In addition, people are susceptible to the influence of those who are immediately
surrounding them, such as their friends, family, co-workers, or classmates. This
type of person-specific group is referred to as a "reference group," and it could be
taken into account as a potential factor in the outcome of the study because its
members have similar passions and hobbies. An person will tend to subordinate
his or her decisions to those of this group, either deliberately or unconsciously,
and will frequently wait for the approval of this group (Solomon et al., 2013).

In spite of all this information, it is difficult to pinpoint the reasons why

consumers choose for a specific brand, however there may be some logical

6
justifications for their decisions. Everyone focuses on a different facet of a
product; sometimes it's the way it looks, sometimes it's the color, sometimes it's
the unusual form, and sometimes it's the excellent quality. The final option shows
a person's desires as well as their inner sentiments, and it illustrates how a person
displays themselves in public. It is possible that differences in behavior are caused
by differences in culture, gender, age, ethnicity, occupation, or income; however,
it is also possible that customer interests and routines play a role in the decision-
making process. Despite this, it is stated that similarities may be found within the
category in some instances. On the other hand, he agrees with those who state that
people's purchasing behavior, preferences, and desires are constantly changing,
which is why it is necessary to keep up with the times and constantly adjust
marketing strategy. He believes that this is the case because people are always
looking for something new (Solomon et al., 2013).

Consumer behavior or buyer behavior is becoming more and more important in

planning and managing consumer-oriented marketing so the goal of the study of
consumer behavior is to figure out what people want and why they want it,
moreover in modern marketing, it's very important to have a clear understanding
of how consumers buy things, because success or failure depends on how the
target customers buy things, either as individuals or as a group (Zaho et al. 2021)

Consumer behavior can be defined as "the decision-making process and physical

activity involved in buying, evaluating, using, and getting rid of goods and
services." Webster has said, "Buying behavior is all of a potential customer's
mental, social, and physical actions as they become aware of, evaluate, purchase,
consume, and tell others about the product and services." In Walter and Paul's
words, "consumer behavior is the process by which people decide what, when,
how, and where to buy goods and services." So, buyer behavior can be defined as
the actions people take when planning, buying, and using economic goods and
services to meet their needs (Acharya, 2018).

2.1.1 Consumer preference in Nepal

Online marketing has been experiencing phenomenal expansion all over the
world, and Nepal is currently experiencing a period of explosive growth in this

7
industry as well, and on analyses of the attitudes and preferences of Nepalese
consumers regarding online marketing, the findings of the analyses demonstrated
that the majority of consumers spend a significant amount of time on the internet
and pay attention to online advertisements as well (Parajuli et al., 2021)

When it comes to price and quality, Nepalese consumers tend to be more price
and quality sensitive which means they are more likely to move to other brands if
a product fails to live up to the performance expectations of the consumers in
proportion to the price spent for obtaining the product (Amatya, 2018).

According to the findings, the vast majority of consumers are familiar with the
Goldstar Shoes brand but on the other hand, this familiarity does not have the
ability to sway the purchasing decision of the general public and showed that
consumers, particularly younger consumers, are seeking for a broad range of style
options, therefore, when it comes to choosing footwear, the consumers place a
significant amount of importance on the footwear's materials as well as the colors
of the footwear while the most significant factor for users to consider when
choosing their brand of footwear is the size of the shoe (Amatya, 2018).

2.1.2 Status of footwear in Nepal

According to import statistics and descriptions of Nepalese products, Nepal's 30
million people use 90 million pairs of shoes and slippers each year but only 30%
of its total supply comes from Nepalese production. Nepalese industries can't
produce at full capacity because of problems like the corona virus pandemic,
expensive raw materials, a lack of cash in banks, and high costs however, over 60
million pairs of shoes and slippers are imported. Vidushi Rana, who is the
Director of Market and Trade Development for Gold Star Shoe Producer Kiran
Suzuki, says that low electricity, theft, and customs fraud are causing a lot of
shoes and slippers to be brought into the market (Acharya123himal, 2022).

In Nepal, there are more than 1,500 small, medium, and large businesses that
make shoes and this sector is very important to the economy because it creates a
lot of jobs and invests a lot of money but this sector, which has been growing over
the past few years, is once again being hurt by fear, a lack of funds that can be
invested, a drop in market sales, and a lack of skilled workers, illegal imports and

8
cheap shoes from other countries are also a big problem (Acharya123himal,
2022).

About 70% of all the shoes bought on the Nepalese market are still made in other
countries while several studies have shown that about 60 million pairs of shoes
and slippers enter Nepal both legally and illegally every year. We take a chance
by starting a business in Nepal, but our investment is at risk because of people
who bring goods in from other countries. Because the border between Nepal and
India is open, people sneak shoes into Nepal, in the same way, the lack of
computers at customs makes it hard to keep track of shoes coming in, which is a
big problem as well as the government's expensive customs duty on raw materials
is a big problem which at the moment, a 15% customs duty is charged on the
import of raw materials used to make shoes (Acharya123himal, 2022).

2.2 Operational Review

2.2.1 Brand Image and consumer preference
The brand name of a product is more likely to have a strong effect on a
consumer's decision which means that a brand makes people aware of it and want
it that can help consumer decisions and get them to buy a brand. The brand
experiences of people built consumer preferences directly or indirectly for certain
brands and brand image has good and bad sides as well as has a big effect on what
consumers want ( ISIK & YASAR, 2015).

One of the primary goals of every company that aspires to be a successful leader
in the market is to increase both brand awareness and brand loyalty. When making
a purchase of a good or service, consumers' familiarity with the brand plays a
significant role because this familiarity may have some influence on the
consumers' perceptions of the level of risk associated with the purchase, as well as
the consumers' level of confidence in their decision to make the purchase
(Amatya, 2018).

2.2.2 Advertisement and consumer preference

Today, social media is the most important way for businesses to communicate.
Social media marketing puts the customer back at the center of business and gives
marketers a new set of tools to interact with customers and find new ways to

9
include them in their brands. It is the modern way of marketing because it focuses
on giving marketers new ways to promote a product or service, unlike traditional
media (Neupane, R., 2020).

Consumers also have the chance through social media to compare other firms'
products in terms of pricing, quality, features, services, and usability of the
products and services that are available. Some of the linked research are observed
to understand the impact of social media on customer buying choice. There are
social media platforms that have the ability to influence the perception, opinion,
and attitude of ordinary people. Social media sites give businesses a chance to talk
to and interact with potential customers, make them feel closer to the business,
and build important relationships with potential customers (Neupane, R., 2020).

2.2.3 Consumer’s perception and consumer preference

The most basic factor that determines a person's wants and actions is their culture,
followed by their subculture, and then their social class. Culture, subculture, and
social class are particularly major influencers on consumer buying behavior. Even
while various socioeconomic groupings each have their own culture that impacts
consumers' purchasing behavior, the level to which that culture influences
consumers' behavior might vary from nation to country, it is something that is
shared by every group or community (Kotler, 2000).

Personal characteristics, such as the buyer's age, stage in life, occupation,

financial situation, way of life, personality, and self-concept, affect how the buyer
acts. People change what they buy over the course of their lives, they eat baby
food when they are young, most foods when they are growing up, and special
diets when they are older; not only this age also affects what you like in clothes,
furniture, and fun things to do in the same way, the stage of the family life cycle,
which is made up of different stages that a family may go through as it grows up,
also affects what people buy and the goods or services a person buys also depend
on what they do for a living that includes blue-collar workers usually buy more
rugged clothes for work, while executives tend to buy more business suits (Kotler
and Armstrong, 2010).

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Psychological factors are a group of things that affect how people buy things that
has to do with how people feel, what they see, how they learn, and what they
think and feel. When someone is motivated, he or she is ready to act, but what that
person does depends on how he or she sees the situation known as perception,
which is how a person chooses, organizes, and makes sense of the information
they take in to make sense of the world around them. People change the way they
act when they learn new things, which means that they learn new things when
they act, so people get beliefs and attitudes by doing and learning which in turn
affect their buying behavior (Kotler, 2000).

As a way to fight the covid-19 virus, the lockdown and social isolation have had a
big effect on how people act. All consumption is tied to a time and a place that has
taught consumers to be creative and come up with new ways to make things do
when they can't change where they are. People now work at home, study at home,
and relax at home, which makes the line between work and life less clear because
the customer can't go to the store, the store has to go to the customer (Sheth
J.,2020).

2.2.4 Reference group and consumer preference

Reference groups, family, and social roles and statuses all have an effect on the
way a consumer acts. Reference groups are all the groups that have a direct (face-
to-face) or indirect (not face-to-face) effect on how a person thinks or acts.
Membership groups are groups that have a direct effect on a person. These groups
include family, friends, neighbors, and coworkers with whom a person interacts
regularly and informally. Professional and trade union groups, which are
examples of secondary groups, tend to be more formal and require less constant
interaction. People can also be influenced by groups they are not a part of.
Aspirational groups are ones that a person wants to join, while dissociative groups
are ones whose values or actions a person doesn't agree with (Kotler, 2000).

2.2.5 Price and consumer preference

Consumers tend to think that high-quality products cost more than medium- or
low-quality ones. When prices were shown, people's intentions to buy changed
toward a cheaper product, however, when all the information was shown, that is,

11
when the sample could be linked to both price and product features, people's
choices changed again but the price of the product was the most important factor
in deciding whether or not to buy. This distribution shows the different types of
consumers: those who care most about quality and features, those who care most
about price, and those who care most about a good balance between quality and
price (Levrini, G. et al., 2021).

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2.3 Conceptual Framework

Independent Variable Dependent Variable

Brand Image

Advertisement

Consumer
Consumer’s preference for
perception Goldstar Shoes

Price

Reference group

Figure 2.1: Conceptual Framework

13
2.4 Research Gap

Ambassador Garment in Addis Ababa looked at how the company's brand image
affected consumer preferences, specifically; it looked at how the company's brand
image affected consumer preferences for Ambassador Garment and using a survey
research method, this study only looked at Ambassador Garment's products. Three
operational variables were used in the study: Brand Value, Brand Characteristics,
and Brand Association in which the study used the stratified proportional
sampling method (Adane, 2017).

In the case of Anbessa Shoes, another study looked at how well celebrity
endorsement ads affected people's decisions about what to buy. Trustworthiness,
physical attractiveness, expertise, and celebrity product match-ups were some of
the things that were looked at as possible reasons why people chose to buy
Anbessa Shoe products (Cheru, 2018). Location-wise, the study could only be
done in Addis Ababa. So, some of the expected scopes mentioned here are the
conceptual scope, the sampling scope, and the geographical scope.

As per the report of Measurement of Brand Awareness And Brand Loyalty Of

Goldstar Shoes, when making a purchase of a good or service, the level of a
customer's awareness with the brand and the distinctive qualities it possesses
plays a significant role and this awareness may have an effect on the consumers'
perceptions of the level of risk involved in making the purchase as well as the
level of assurance they feel about the decision (Amatya, 2018). According to the
findings of the study, customer loyalty to a brand can be affected by factors such
as the product's level of comfort, its level of durability, and its pricing as well as
in reference to the findings of the study, the vast majority of customers are
familiar with the Goldstar Shoes brand (Amatya, 2018).

There is a methodological gap, a variable gap, a geographical gap, and a

contextual gap in the previous study. Using a random sampling procedure,
respondents are chosen at the researcher's convenience. When compared to earlier
research, this study focuses on consumer preference rather than brand recognition
and loyalty. Respondents come from the Kathmandu Valley area. The research is
focused on shoes, as opposed to garments, which were the subject of prior studies.

14
 CHAPTER 3: METHODOLGY

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

3.2 Research design

The descriptive research design is adopted in this study although descriptive
research methods are helpful in addressing questions such as who, what, when,
where, and how they are connected to a particular research subject, descriptive
studies are unable to offer answers to the question of why. The purpose of
descriptive research is to acquire information on the current state of a phenomena
and to characterize "what exists" in terms of the many variables or circumstances
that are present in a particular setting (Orthy, 2022).

3.3 The study population

The population for the study is everyone who buys Goldstar shoes, no matter what
age they are. It has all the information about the population that is needed for the
data collection. The questionnaires are given to students, employees, business
people, older people, and professionals in other fields. I send online
questionnaires to the people in the above groups because they are the ones who
buy the most Goldstar Shoes.

3.4 Sample design

In the course of this research, the non-probability sampling approach known as
convenience sampling has been utilized as the source of samples. The decision
was made based on my accessibility. The samples were selected at random. In a
kind of sampling known as simple random sampling, the odds of any individual in

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the population being selected for the sample are equal.. A sample of 100
consumers is taken for the study.

3.5 Data collection instrument

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

3.6 Data analysis

The statistical tools such as Percentage, Tables, Figures, ANOVA are used for the
analysis of the data. Similar to Likert scale is used, where respondents choose
from strongly disagree, disagree, neutral, agree and strongly agree for the
variables of the Goldstar shoes. The data generated through the used of Google
forms is presented in this report.

3.7 Research Hypothesis

H1: Brand image has significant positive influence on consumer’s preference,
H2: Advertisement has significant positive influence on consumer’s preference,
H3: Consumer’s perception has significant positive influence on consumer’s
preference
H4: Reference group has significant positive influence on consumer’s preference
H5: Price of item has significant positive influence on consumer’s preference.

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 CHAPTER 4: FINDINGS

4.1 Introduction
In this chapter, the results of the data collection process are discussed.
Evaluation and interpretation of data obtained from 100 survey takers are the
focus here. Using the research objectives outlined in the previous chapter, the data
was analyzed. For this chapter's major purpose, the data acquired and the results
of the questionnaire survey will be evaluated and interpreted. This research effort
was able to meet its primary objective because of the findings from the data
analysis. The data collection method outlined in chapter three resulted in more
data for analysis and display. The section of thesis study deals with the descriptive
and statistics data analysis and finding the results of research objectives.

4.2 Descriptive statistics

4.2.1 Gender

Gender

Frequency Percent Valid Percent Cumulative

Percent

Male 62 62.0 62.0 62.0

Valid Female 38 38.0 38.0 100.0

Total 100 100.0 100.0

Table 4.2.1: Gender of Respondents

The table 4.2.1 shows that out of 100 respondents, 62 percent or 62 numbers of
respondents are male and 38 percent or 38 numbers of respondents are female.
The number of male respondents is higher than the number of female respondents.

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4.2.2 Age Group of Respondents

Age
Frequency Percent Valid Percent Cumulative
Percent
Below 20 4 4.0 4.0 4.0
20-30 66 66.0 66.0 70.0

Valid 30-40 26 26.0 26.0 96.0

Above 40 4 4.0 4.0 100.0

Total 100 100.0 100.0

Table 4.2.2: Age Group of Respondents

From the table 4.2.2 we can see 4 respondents are below the age of 20 years, 66
respondents are between age 20 to 30 years, 26 respondents are between age of
30-40 years and 4 respondents are above 40 years age. The majority of
respondents are of the age group between 20 to 30. The majority of age group is
20-30 years followed by 30-40 years age. So, we can conclude younger generation
prefers Goldstar shoes than other age groups.

4.2.3 Marital Status

Marital Status
Frequency Percent Valid Percent Cumulative
Percent
Unmarried 60 60.0 60.0 60.0

Valid Married 40 40.0 40.0 100.0

Total 100 100.0 100.0

Table 4.2.3: Marital Status of respondents

Out of total respondents, 60% are unmarried while 40% are married i.e. 40
respondents are married and 60 respondents are unmarried. It shows that
unmarried respondents prefer Goldstar shoes comparatively more than the married
ones.

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4.2.4 Occupation of Respondents

Occupation
Frequency Percent Valid Percent Cumulative
Percent
Student 25 25.0 25.0 25.0
Employee 59 59.0 59.0 84.0

Valid Business 11 11.0 11.0 95.0

Other 5 5.0 5.0 100.0

Total 100 100.0 100.0

Table 4.2.4: Occupation of Respondents

The table 4.2.4 reveals that most of the respondents are employees i.e. 59
respondents are employees which consists of 59 percent of total respondents. 50
percent of respondents are students that explains employee and students prefer
Goldstar shoes the most. Other includes respondents other than students,
employees and business people, they are unemployed, agricultural sectors, labors
etc.

4.2.5 Education of Respondents

Educational Level
Frequency Percent Valid Percent Cumulative
Percent
Upto 10 5 5.0 5.0 5.0
+2 19 19.0 19.0 24.0

Valid Bachelor 50 50.0 50.0 74.0

Master and above 26 26.0 26.0 100.0

Total 100 100.0 100.0

Table 4.2.5: Education of Respondents

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The table 4.2.5 explains that most of the respondents are bachelor completed
persons. Most respondents are of the age group 20-30 in which lies the most
respondents who completed bachelor and masters level. The number of
respondents who have completed are 50 and followed by master level with 26
respondents.

4.2.6 Income level

Income
Frequency Percent Valid Percent Cumulative
Percent
Below Rs.15000 19 19.0 19.0 19.0
Rs.15000-25000 24 24.0 24.0 43.0

Valid Rs.25001-35000 25 25.0 25.0 68.0

Above Rs.35000 32 32.0 32.0 100.0

Total 100 100.0 100.0

Table 4.2.6: Income level of Respondents

From the table 4.2.6 we can say that most respondents are of income level above
Rs.35000 i.e. 32 percent and least are the below Rs.15000 i.e. 19 percent. 24
percent of respondents are between age group Rs.15000-25000 and 25 percent
respondents are between age group Rs25001-35000. We can conclude from the
table that higher the income level higher the consumer preference for Goldstar
footwear brand.

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4.3 Variable analysis
4.3.1 Impact of brand image on consumer preference
ANOVA
X1

Sum of Squares df Mean Square F Sig.

Between Groups 138.743 3 46.248 2.634 .054

Within Groups 1685.767 96 17.560
Total 1824.510 99

Table 4.3.1 Analysis of brand image on consumer preference

Brand plays important role in consumer to make purchase decision and popular
brand encourages the customers to buy those branded products and items. From
this study, the null hypothesis is that there is no significance in the brand image
and consumer preference. The table 4.3.1 shows the F value of 2.634 and
significance value of 0.054. Since the significance value in the table is greater
than 0.05 we accept the null hypothesis and we can conclude that there is no
significance relation between brand image of goldstar shoes and the consumer
preference.

4.3.2 Impact of advertisement on consumer preference

ANOVA
X1

Sum of Squares df Mean Square F Sig.

Between Groups 63.558 4 15.890 .857 .493

Within Groups 1760.952 95 18.536
Total 1824.510 99

Table 4.3.2 Analysis of advertisement on consumer preference

We assume that there is significance between advertisement and the customer
preference. We believe that advertisement plays significant role for influencing
the consumer preference. Higher and better level advertisement leads to high
consumer preference for a particular things. From Table 4.3.2 we can see the F
value of only 0.857 while the significance value is 0.493 which is very high in

21
comparison of 5 percent significance level. Hence, we can conclude that there is
no significance positive influence of advertisement on the consumer preference
for the Goldstar shoes.
4.3.3 Impact of consumer perception on consumer preference

ANOVA
X1

Sum of Squares df Mean Square F Sig.

Between Groups 51.236 4 12.809 .686 .603

Within Groups 1773.274 95 18.666
Total 1824.510 99

Table 4.3.3 Analysis of perception on consumer preference

Table 4.3.3 shows the F value of 0.683 and the significance value to 0.603 that is
too much greater level of significance which accepts the null hypothesis.
Perception varies from person to person, there are many factors that influence the
perception of consumer buying behavior. Psychological, cultural, sociological and
personal factors affect the perception of the consumer. But from result of the table
4.3.3, it shows there is no significance positive influence of consumer perception
on consumer’s preference because the level of significance is greater that the level
of 5 percent.

4.3.4 Impact of reference group on consumer preference

ANOVA
X1
Sum of Squares df Mean Square F Sig.

Between Groups 108.375 4 27.094 1.500 .208

Within Groups 1716.135 95 18.065
Total 1824.510 99

Table 4.3.4 Analysis of reference group on consumer preference

Reference group includes family, friends, colleagues, relatives etc. They influence
on consumer purchasing decision. While many consumers make purchasing

22
decision by ownself without the influence of reference group. The table 4.3.4
shows that there is no significance between reference group and consumer
preference. Most respondents preferred to purchase Goldstar shoes on the basis of
their own judgment as the table shows significance level of 20.8 percent.

4.3.5 Impact of price on consumer preference

ANOVA
X1

Sum of Squares df Mean Square F Sig.

Between Groups 1043.594 4 260.899 31.739 .000

Within Groups 780.916 95 8.220
Total 1824.510 99

Table 4.5.5 Analysis of price on consumer preference

From the table 4.5.5, the F value is 31.739 which is very good and the
significance level is 0.00 which shows there is significance between price and the
consumer preference. The null hypothesis is there is no significance positive
influence of price on consumer preference for Goldstar shoe which is rejected as
the significance level is less than 0.05. We can conclude that price affects the
consumer preference. Respondents choose Goldstar shoes because the Goldstar
shoes are fair priced and affordable.

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 CHAPTER 5: SUMMARY AND CONCLUSIONS

This chapter of thesis consists of summary and conclusion.

5.1 Summary
The study was conducted to find out the consumer preference for Goldstar shoes
in Kathmandu valley based on the questionnaire consisting of 100 randomly
selected consumers by using convenient sampling i.e. conveniently distributing
the questionnaire via social sites online. The results of the respondents'
background information revealed that the majority of the total respondents (62
percent) are male, the majority of the respondents (66 percent) are aged between
20 and 30 years, (60 percent) were unmarried whereas the others were single, (50
percent) of the respondents are bachelor degree holders, and (59 percent) of the
respondents are employed workers, and the majority of the consumers (32
percent) are of the income level group who earn more.
The results showed that majority (40 percent) of respondents purchase footwear
once in six months and the most preferred types of Goldstar shoes is sports shoes
which is 56 percent among respondents. Most consumer prefer to buy Goldstar
shoes visiting the physical store rather than online and believe that social media
influence them most for making footwear purchase.

5.2 Conclusion
The purpose of this study was to investigate the preferences of consumers in the
Kathmandu valley about Goldstar shoes. According to the results of the research,
consumers are most likely to choose Goldstar shoes based on price when
considering the five factors of brand image, advertisement, consumer perception,
reference group, and price. Additionally, the study found that consumers are most
likely to choose Goldstar shoes based on price and affordability of shoes.
The ANOVA result analysis of dependent and independent variable shows that
price has the positive significance influence on consumer preference while other
shoes no significance at all. Among the five dimensions of consumer preference,
the researched failed to reject only single tested hypothesis.
According to the findings of the research, there is a high factor relationship
between price and consumer preference. Because of this, the business should

24
make sure to keep the following in order to have loyal customers in the modern
world. The five dimensions of consumer preference are brand image,
advertisement, consumer perception, reference group, and price. Goldstar needs to
preserve their brand and continue to innovate in order to increase the value of
their shoe brand by catering to the needs of their customers. It is imperative that
affordable prices be asked for the shoes because the majority of customers are
drawn to the reasonable prices of Goldstar shoes. They should place their
emphasis on advertising and marketing via social media given that the majority of
people believe they are swayed by the contents of social media. Also according to
the research, the majority of customers will attempt to switch to a different brand
if the price of Goldstar shoes goes up while other brands continue to provide sales
or other types of discounts. Therefore, they should focus on bringing in new
customers while simultaneously keeping the ones they already have by presenting
competitive pricing and appealing deals.

25
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 APPENDICES

Questionnaire

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