A GRADUATE RESEARCH PROJECT

The influence of online brand community on brand

loyalty: A comparative study between Daraz and Sastodeal

PREPARED BY: SUBMITTED TO:

Manendra Prasad Panjiyar Mr. Suman Dahal
Roll no: 18220314 Apex College, Pokhara
PU Registration no: 2018- University
02-22-0411
Section: Irya
Apex College
July, 2021
Presentation Contents
• Introduction
• Statement of the Problem
• Objective of the Study
• Conceptual Framework
• Research Hypothesis
• Research Design and Methodology
• Result and Discussion
• Conclusion and Recommendation
Introduction
•Branding is now a key marketing topic, and branding on social networks is little known. This thesis therefore
seeks to understand brand-customer interactions in online brand communities. In particular, when an individual
is part of an online brand community then he or she tries to understand the elements influencing customer
loyalty to a particular brand.

•Daraz is known to be one of the best online shopping platforms that offered buying and selling in Nepal. It is
the fastest growing eCommerce platform in Nepal offering an unparalleled shopping experience at the comfort
of your home. You can enjoy convenient and hassle-free shopping without stepping out of the house.

•Sastodeal is one of the leading ecommerce companies in Nepal with millions of customers and thousands of
vendors / partners all over Nepal. They have a logistic network that ensures deliveries in most parts of the nation
with exceptions of some locations.
Statement of the Problem
• The creation and maintenance of consumer brand relations has become a critical success factor for companies in
competitive markets with high exposures, growth and technology developments. The creation of an online brand
community represents an excellent opportunity for companies who wish to increase the brand loyalty of their clients.

• The popularity of online shopping among Nepalese customers has increased with the cost-reduction of technology-based

goods, the cost of internet services, and easy access to the internet. The online shopping companies in Nepal have been

seen following the Business to Consumer (B2C), Customer to Customer (C2C), or the ‘Facebook Store’ business model.

• The quality of the product delivered to the customer was seen to be the major problem in Nepalese online shopping. This

has raised the question on brand identification, brand trust and brand loyalty.

• The aim of this study is therefore to contribute to an empirical study of the knowledge of the online community of brands

that includes elements in this sequence that influence customer loyalty when interacting with a brand community on the

Internet.
Objective of the Study

• To explore the influence of online brand community on brand loyalty

for comparison between Daraz and Sastodeal
• To examine the influence of online brand community on brand trust.
• To identify the influence of brand trust on brand loyalty.
Theoretical
Framework
Research Hypothesis
The first group of hypothesis represents the effect of brand community based on online or social
network on the customer’s relationships on the brand trust;
H1a: The product relationship has a direct positive relationship on brand trust.
H1b: The brand relationship has a direct positive relationship on brand trust.
H1c: The company relationship has a direct positive relationship on brand trust.
H1d: The customer relationship has a direct positive relationship on brand trust.
H1e: The platform quality has a direct positive relationship on brand trust.
H1f: The interactivity has a direct positive relationship on brand trust.
The second group of hypothesis accounts for the effect of brand trust on brand loyalty;
H2: Brand trust positively influences brand loyalty.
Research Design and Methodologies
• Research Design: Descriptive

• Sample Size: 210 Respondent i.e., 105 respondents for Daraz and 105 respondents for Sastodeal

• Sampling Instrument: Self Administered Questionnaire adapted from Martin (2005); Park C. W.
(1991); Shavitt (1989); Erdem (2004); Gremler (1995); Gomez (2004) and Srinivasan (2002).

• Data Collection Procedure: Systematic questionnaire through mail and semi-formal interview and
paper based survey.

• Method of Analysis: Descriptive and Inferential Analysis (Hypotheses testing and Regression)

• Tool of Analysis: SPSS and MS-Excel

Reliability of Daraz
S.N Variables Cronbach’s Alpha (N=20) Cronbach’s Alpha (N=105)

1
Product 0.774 0.792
2
Brand 0.885 0.872
3
Company 0.861 0.878
4
Customer Relationship 0.943 0.916
5
Platform Quality 0.821 0.838
6
Interactivity 0.734 0.792
7
Brand Trust 0.858 0.881
8
Brand Loyalty 0.878 0.911
Reliability of Sastodeal
S.N Variables Cronbach’s Alpha (N=20) Cronbach’s Alpha (N=105)

1
Product 0.831 0.708
2
Brand 0.709 0.703
3
Company 0.856 0.746
4
Customer Relationship 0.830 0.709
5
Platform Quality 0.837 0.736
6
Interactivity 0.793 0.730
7
Brand Trust 0.819 0.789
8
Brand Loyalty 0.818 0.739
 Result and Discussion
Gender Frequency Percent

(Daraz)
Male 43 41.0

Female 62 59.0
Age Group Frequency Percent
Total 105 100.0

20-30 101 96.2

Income Level Frequency Percent
30-40 3 2.9
Above Rs. 60,000 2 1.9
40-50 1 1.0
Below Rs. 20,000 50 47.6

Above 50 0 0.0
Rs. 20,000 - Rs. 40,000 39 37.1
Total 105 100.0
Rs. 40,000 - Rs. 60,000 14 13.3

Total 105 100.0

Descriptive Statistics (Daraz)
Variables N Mean Standard Deviation

Product 105 3.51 0.9632

Brand 105 3.81 0.9685

Company 105 3.81 0.8212

Customer Relationship 105 3.9 0.8125

Platform Quality 105 3.86 0.882

Interactivity 105 3.71 0.886

Brand Trust 105 3.56 0.9232

Brand Loyalty 105 3.69 0.968

Regression Model Summary

R R Square Adjusted R Square Std. Error of the Estimate

   
.848  0.719  0.702 0.43519
 
 

a. Predictors: (Constant), Product, Brand, Company, Customer Relationship, Platform Quality and
Interactivity
ANOVA

Model Sum of Squares df Mean Square F Sig.

Regression 47.604 6 7.934 41.892 .000b
Residual 18.560 98 .189    
Total 66.164 104      
a. Dependent Variable: Brand Trust
b. Predictors: (Constant), Product, Brand, Company, Customer Relationship, Platform Quality and
Interactivity
Regression Analysis
Summarized Hypothesis Result
Hypothesis Significance Conclusion
The product has a direct positive relationship on 0.028 Accepted
brand trust.
The brand has a direct positive relationship on 0.007 Accepted
brand trust.
The company has a direct positive relationship 0.092 Rejected
on brand trust
The customer relationship has a direct positive 0.031 Accepted
relationship on brand trust.
The platform quality has a direct positive 0.018 Accepted
relationship on brand trust.
The interactivity has a direct positive 0.000 Accepted
relationship on brand trust.
Correlation between Brand Trust and Brand Loyalty

The correlation is significant at 5% where p-value is less than alpha i.e., 0.000 < 0.05. Hence, the
hypothesis is accepted. Therefore, the brand trust positively influences brand loyalty.
 Result and Discussion
Gender Frequency Percent

(Sastodeal)
Male 66 62.9

Female 39 37.1
Age Group Frequency Percent
Total 105 100.0

20-30 67 63.8
Income Level Frequency Percent

30-40 20 19.0
Above Rs. 60,000 9 8.6

40-50 15 14.3
Below Rs. 20,000 24 22.9

Above 50 3 2.9
Rs. 20,000 - Rs. 40,000 49 46.7

Total 105 100.0

Rs. 40,000 - Rs. 60,000 23 21.9

Total 105 100.0

Descriptive Statistics (Sastodeal)
Variables N Mean Standard Deviation

105 3.76 0.9995

Product
105 3.88 1.0177
Brand
105 3.89 1.0015
Company
105 3.72 0.989
Customer Relationship
105 3.71 1.1555
Platform Quality
105 3.82 1.0272
Interactivity
105 3.94 0.929
Brand Trust
105 3.83 1.0095
Brand Loyalty
Regression Model Summary

R R Square Adjusted R Square Std. Error of the Estimate

   
.799  0.639 0.617 0.45267
 
 

a. Predictors: (Constant), Product, Brand, Company, Customer Relationship, Platform Quality and
Interactivity
ANOVA

Model Sum of Squares df Mean Square F Sig.

Regression 35.542 6 5.924 28.909 .000b
Residual 20.081 98 .205    
Total 55.623 104      
a. Dependent Variable: Brand Trust
b. Predictors: (Constant), Product, Brand, Company, Customer Relationship, Platform Quality and
Interactivity
Regression Analysis
Summarized Hypothesis Result
Hypothesis Significance Conclusion
The product has a direct positive relationship on .429 Rejected
brand trust.
The brand has a direct positive relationship on .010 Rejected
brand trust.
The company has a direct positive relationship .008 Accepted
on brand trust
The customer relationship has a direct positive .650 Rejected
relationship on brand trust.
The platform quality has a direct positive .352 Rejected
relationship on brand trust.
The interactivity has a direct positive .690 Rejected
relationship on brand trust.
Correlation between Brand Trust and Brand Loyalty

The correlation is significant at 5% where p-value is less than alpha i.e., 0.000 < 0.05. Hence, the
hypothesis is accepted. Therefore, the brand trust positively influences brand loyalty.
Comparison between Daraz and Sastodeal
Conclusion
• The objective of the research was to study the influence of online brand community on brand loyalty for
Daraz and Sastodeal.

• In brief, it was found that Nepalese customers perceive that the online stores do not fulfill their commitments
and promises. Whereas, Daraz and Sastodeal has improved their services and are fulfilling the commitments
and promises. So, addressing the problem online retailers like Daraz and Sastodeal should try to be more
trustworthy, honest and reliable in order to attract customers and make them loyal towards online business in
Nepal.
Recommendation
 From the survey, it was found that respondents of Daraz feels that company do not understands and care for
their needs. The queries of respondents are not being handled effectively. Therefore, Daraz should focus on
improving their company relationship.
 Daraz should manage and improve the attitude and behavior of employee.
 Sastodeal deal should make their website and app more user friendly.
 Online purchase should be backed by proper rules and regulations to monitor the transaction.
 Sastodeal should maintain reasonable price of the particular product.
Thank You