Factor Affecting Consumer Buying Behavior in Electronic Appliance of LG
Factor Affecting Consumer Buying Behavior in Electronic Appliance of LG
BY
Sapana Basnet
Exam Roll No: 24148/19
T.U. Registration No: 7-2-0003-0261-2019
At the
Mahendra Morang Adarsha Multiple Campus
Tribhuvan University
Biratnagar
April, 2024
STUDENT DECLARATION
I hereby declare that the project work entitled “Factor affecting consumer buying
behavior in electronic appliance of LG” under the guidance of Mr. Ajit Kumar Jha in
partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at Faculty of Management, Tribhuvan University. This is my original
work and I have not submitted it earlier elsewhere.
Date:
_____________
_
Sapana Basnet
ii
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the summer project “Factor affecting consumer buying behavior
in electronic appliance of LG” is an academic work done by Sapana Basnet submitted
in the partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at Faculty of Management, Tribhuvan University under my guidance and
supervision. To the best of my knowledge, the information presented by her in the
summer project report has not been submitted earlier.
______________________
Signature of the Supervisor
Name: Mr. Ajit Kumar Jha
Designation: Supervisor
Date:
iii
ACKNOWLEDGEMENTS
This project report would not have been possible without the support and helping hands
of many individuals. I would like to extend my sincere gratitude to all of them.
I would like to express my deepest sense of gratitude and sincere thanks to our highly
respected and esteemed supervisor Mr. Ajit Kumar Jha, for his valuable guidance,
encouragement and assistance for completing this summer project report. His useful
suggestions for this whole work and co-operative behavior are sincerely acknowledged.
Last but not the least, I would like to thank all my friends and respondents for providing
their precious time and helping for completing this project report.
Thank you
Sapana Basnet
iv
EXECUTIVE SUMMARY
Consumer buying behavior plays an important role for the company like LG. Consumer
buying behavior is different for each individual; they have their own style of selecting the
product. It is imperative that consumer buying behavior is influenced by different factors.
So, the main purpose of conducting the present research is to determine the factor
affecting consumer buying behavior in electronic appliance of LG and to determine the
most and least influencing factors in the purchase of electronic appliance of LG. This
study is significant to understand the relationship among the various factors (i.e. price,
quality, durability, and discount) that affect consumer buying behavior. Descriptive
research design is used in the study. From the entire population of the consumer using LG
electronics appliance, convenient sampling method is used to select 100 respondents in
Biratnagar. Primary source of data is collected through the standardized questionnaire
prepared through Google forms. The overall responses are compiled in Microsoft Excel.
The framework for the study is created and the available literature for the study is
collected, studied and analyzed.
The data analysis is based on the research objectives formulated for the study. Different
demographic variable of respondent are categorized as age, marital status, educational
level, professions and family income are displayed in the table. The pie-chart and bar
graph are used to depict the response of the respondents collected through the
questionnaire which shows the factor affecting their buying behavior in the electronics
appliance of LG.
The analysis and the results identified the relationship between the variables. These
factors are directly affecting the Consumer Buying Behavior of Electrical Appliance of
LG. The study concluded the four Factors (i.e. Price, Quality, Durability and Discount)
are positively related with consumer buying behavior in electronic appliance of LG. The
study concluded the most factor affecting the behavior of the LG customer is Price
whereas the least factor affecting them is discount. Therefore, the company should focus
more in providing offers and brand management.
TABLE OF CONTENT
v
S
STUDENT DECLARATION..............................................................................................ii
CERTIFICATE FROM THE SUPERVISOR.................................................................iii
ACKNOWLEDGEMENTS................................................................................................iv
EXECUTIVE SUMMARY..................................................................................................v
LIST OF TABLES............................................................................................................viii
LIST OF FIGURES............................................................................................................ix
ABBREVIATIONS..............................................................................................................x
CHAPTER I INTRODUCTION......................................................................................11
1.1 Context Information.................................................................................................11
1.2 Statement of problem...............................................................................................12
1.3 Purpose of the study.................................................................................................13
1.4 Significance of the study..........................................................................................13
1.5 Literature Review.....................................................................................................13
1.6 Conceptual Framework...........................................................................................17
1.7 Research methods.....................................................................................................17
1.7.1 Research Design..................................................................................................18
1.7.2 Population............................................................................................................18
1.7.3 Sample size..........................................................................................................18
1.7.4 Sampling method.................................................................................................18
1.7.5 Sources of data.....................................................................................................18
1.7.6 Data collection instrument...................................................................................18
1.7.8 Data analysis tools...............................................................................................18
1.8 Limitation of the study.............................................................................................19
CHAPTER II DATA PPRESENTATION AND ANALYSIS........................................20
2.1 Respondent’s profile.................................................................................................20
2.1.1 Respondent’s Gender...........................................................................................20
2.1.2 Respondent’s Age................................................................................................21
2.1.3 Respondent’s Marital Status................................................................................22
2.1.4 Respondent’s Education level..............................................................................23
2.1.5 Respondent’s Profession......................................................................................24
2.1.6 Respondent’s family income...............................................................................25
2.2 Data presentation......................................................................................................26
vi
2.2.3 Analysis of Factors Affecting Consumer Buying Decision.................................28
2.3 Data Analysis............................................................................................................35
2.4 Findings and Discussion...........................................................................................36
2.4.1 Findings...............................................................................................................36
2.4.2 Discussions..........................................................................................................37
CHAPTER III CONCLUSION AND ACTION IMPLICATION.................................39
3.1 Summary of the study..............................................................................................39
3.2 Conclusion.................................................................................................................39
3.3 Action implications...................................................................................................40
REFERENCE.....................................................................................................................42
APPENDIX.........................................................................................................................44
vii
LIST OF TABLES
viii
LIST OF FIGURES
ix
ABBREVIATIONS
x
11
CHAPTER I
INTRODUCTION
The market situation and its outcome are becoming increasingly uncertain. In the light of this
scenario, the organizations are becoming more and more desperate to hold the customers, to
retain the market share and to survive. The scenario in the home appliances industry is
equally challenging. The leading company like LG, by introducing brands at various price
points have effectively segmented the market which has resulted in faster market expansion
and penetration. Product differentiation and innovative marketing efforts have resulted in
attracting more and more customers to their brands. In fact, the competition in the rural
market has assumed a battle field dimension and struggles for the survival of the fittest.
Therefore, in the light of the scenario where the marketing environment is changing at a very
fast pace and the heightened aggression of the players in the home appliances in Nepal, It is
most appropriate to conduct a study on various dimensions influencing consumer’s purchase
decisions regarding electronic appliances.
12
This research enables the manufacturer or retailer of home appliances to focus on many major
factors which influence customer before buying electrical appliances. The major factors that
may influence the buying decision in the context of Nepal. The major factor are cultural
factors that include culture, subculture, social class, groups. Social factor includes family,
roles, status, age, life cycle stage, etc. Similarly, Personal factor includes occupation,
economic situation, and motivation. And Psychological factor includes perception, learning,
product, price and marketing Mix include price, promotion, placement. Other factor like
promotion, durability is also the influencing factor of customer buying behavior of electric
appliance.
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 electrical appliances and also conduct the similar survey in other institutions.
topic. Literature reviews are the secondary sources and does not report new or original
experimental work. Every study should follow the direction from past knowledge because the
knowledge creates foundation for the present study.
Kotler (2001) stated consumer buying behavior refers to the buying behavior of the
individuals and households who buy the goods and services for personal consumption.
Consumers around the world are different in various factors such as age, income, education
level and preferences, which may affect the way they avail of goods and services. This
behavior affects how products and services are presented to the different consumer markets.
They found out various components which influence consumer behavior namely: cultural,
social, personal and psychological. The companies cannot control these characteristics;
therefore, a need to assess these elements in order to create an effective marketing plan.
Gabbot (1998) & Backwell (2006) stated consumer behavior as the activities and the
processes in which individuals or groups choose, buy, use or dispose the products, services,
ideas or experiences. Consumers have their favorites in purchasing products from precise
retailers and hence the residual retailers are to buy the products and their buying habits, the
firms can make use of such information to devise corresponding marketing chosen using the
rule of Survival of the Fittest. Therefore, consumer’s decisions can provide a clue for
which industry survives, which companies to succeed, and also which products to excel.
Second, through understanding the reasons for consumer strategies in response to the
consumer’s needs.
Marketing Sixth Edition, United States of America, Macmillan Publishing Company stated
that Purchasing Decision is the selection of the best alternative in which a consumer is ready
for buying act, to make an exchange of money and product or services, this implies that
consumer is willing to give money to the seller so as to get a products or services. The
important factors can also be environmental factor which depends on adverting, packaging,
price, and product appearance etc. (Paul, 2005). The behavior can be analyzed in different
ways, by offering lower price, better service and good quality (Papanastassiu & Rouhani,
2006).
Kalaiselvi (2013) stated that understanding the consumer attitude is an important part of the
marketing process to realize the challenges faced by marketers in comprehending the
consumers’ mind. The marketers have to know why a buyer makes a purchase and the
processes in the mind of the buyer which influence him or her in buying different products or
15
services. Sales promotions are designed to have an immediate impact on sales. The main
objective of the study was to find the impact of promotional schemes on consumer attitude
and to find out the brand loyal consumers and also brand switchers of consumer electrical
appliances only because of promotional offers.
Patel (2013) explained Consumers have becoming more concerned about electrical
appliances and features and to issues like environment and health. The existence of these two
problems, the existence of new features and the reason that they are very credence attributes.
It has created a problem for the analysis to be done for electrical appliances. As on one side,
it implies that consumption needs to be included with new variables which can capture effects
of these features on consumption.
Janaki & Shanti (2013) stated that marketing strategy is the game plan which the firms must
adhere to, in order to outdo the competitor or the plans to achieve the desired objective. The
people consume things of daily use, and buy these products according to their needs,
preferences and buying power.
In recent years, there is a large shift in consumer behavior among Nepalese due to enhanced
Awareness and information technology. Lifestyle among rural consumers has changed
dramatically with influence of socio-economic conditions, cultural environment involved in
obtaining, consuming and disposing of products of products and services including the
decisions process, education level, occupation and wide media coverage. There is an increase
in working women after 1990s, they are proving to be equally good as men, and make their
16
own decision to buy things which they need. Yet Nepali consumers think before they buy,
they are more cautious in spending.
Price Factor
Among all the above factors that affect the customer behavior there are some of the factor
chosen for the research. Price factor as price is the amount a customer pays for the product,
(Cohen, 1991). Price is one of the elements of the marketing mix elements that companies
use it to achieve their marketing objectives. Generally, there are three types of price
promotion, including rebate, discounts and free options (Munger & Grewal, 2001). In
research by (Munger & Grewal, 2001), the most preferred price promotion is discounts,
followed by “free” items and, lastly, rebates. The higher the price, the less likely it is that
consumers will purchase a product or service. This means that there is a negative relationship
between high price and consumer purchase intention, given that all other factors remain
constant. It was concluded that there is a positive relationship that exists between price and
consumer’s perceptions towards buying electronic products.
Quality Factor
There is very strong relationship between quality of product and customer satisfaction
(Parasuraman, 1985). Increase in quality of the product can satisfy and develop attitudinal
loyalty which ultimately retains valued customers (Nadiri, Hussain, & Ekiz, 2009). When
perceived service quality is less than expected service quality customer will be dissatisfied
(Jain & Gupta, 2004).
Kotler & Keller (2011) stated that quality is the entire features and characteristics of a
product or service that are able to satisfy the stated or implied needs of the product or service.
However, quality is a subjective issue whereby each individual defines it differently.
Durability Factor
Mr. Henry stated that availability of low involvement and low durable products is a necessary
condition for the purchase of goods. So, the consumers are chosen and buy likely one of them
among brands available in same Shop (Nadiri, Hussain, & Ekiz, 2009). The Eco-design
(Union & European, 2009) draws attention by defining durability as to the lifetime of the
product as well as the following parameters: maintenance, minimum guarantee lifetime,
minimum time for spare parts, modularity, upgradability and reparability. (Clemenz, 2012)
found out the impact of brand personality on the various dimensions of perceived quality
17
towards durable consumer goods. Thus, the study concluded that there is positive relationship
between durability and consumers satisfaction.
Discount Factor
The discount factor, influencing consumer buying decisions for LG electronic appliances, is
crucial. Research reveals that consumers often discount future gains and losses more that
economic models predict (Kahneman & Tversky, 1979). High discount rates can deter
immediate purchases, while lower rates make products appear more affordable. How
discounts are framed and cultural factors also affect consumer perceptions (Ariely,
Loewenstein, & Prelec, 2008). Understanding this dynamic is vital for marketers to optimize
pricing strategies and enhance consumer satisfaction.
PRICE
QUALITY
CONSUMER BUYING
BEHAVIOR
DISCOUNT
DURABILITY
how the research is designed, how data are collected, which sources are used for the data
collection and the how the data are processed.
1.7.2 Population
All people are the population of this research as every individual uses LG appliances one way
or other.
Simple Statistical Tools: Various simple statistical tools are used for the purpose of data
analysis. Simple tools like mean, frequency, and percentage are used.
Pie charts: Pie charts are used at times when the data are to be shown in diagram to clarify
the collected data. Pie charts are quite helpful in depicting various kind of data very easily.
19
Bar diagrams: Many bar diagrams are also being used to depict the various category of data
collected. It is an important tool for data presentation at many steps.
Tables: The collected data will be arranged in the tabular form to systematize the data
organization. Tables help in data presentation all the time. Various types of table are used to
ensure the clarity in data presentation throughout the report. The data is analyzed through
tabulation and presented through the bar diagram in the percentage. Mean is used to analyze
the Likert scale data.
The equal emphasis has been given on the presentation of the collected data. The presentation
is done as effectively as possible to get the best conclusion on the study. Excel is used to
provide a descriptive analysis. After the questionnaire is completed, each item is then
analyzed separately to create a score for each item and then as a group of items. Analysis and
comparison are presented in form of published studies. Finally, a conclusion based on the
results provides recommendations and suggestions.
CHAPTER II
DATA PPRESENTATION AND ANALYSIS
This chapter presents the methodology employed to investigate the relationship between
consumer demographics, purchasing criteria, and preference for LG electronic appliances.
The study integrates qualitative with primary data collected via a survey. A convenience-
based judgmental sampling technique was utilized, prioritizing respondents' educational
attainment as a key independent variable. The analysis aims to unveil the factors influencing
consumer buying decisions in the LG electronics appliance market, offering insights into
consumer behavior dynamics.
Male Female
40%
60%
The Figure 2 reports the gender of different respondents taken under the study. Out of a total
of 100 respondents, the majority (60%) of the respondents are female, remaining (40%) of the
respondents are male. Therefore, it reveals that the conclusion drawn based on the findings is
highly influenced by the respondents who are female.
15-25 49 49%
26-35 23 23%
36-45 12 12%
46-55 16 16%
16%
12%
49%
23%
The Figure 3 reports the gender wise age of different respondents taken under the study. The
majority (49%) of the respondents are of the age group belonging to 15-25 years of age,
which is followed by age group under 26-35 years with 23%, age group belonging to 46-55
years with 16%, and finally the age group of 36-45 years with 12%. Therefore, it reveals that
the conclusion drawn based on the findings is highly influenced by the respondents who
belongs to the age bracket of 15-25 years of age.
22
48%
52%
Single Married
The Figure 4 reports the gender wise marital status of different respondents taken under the
study. The majority 52% of the respondents are single, and finally the 48% of the respondents
are married. Therefore, it reveals that the conclusion drawn based on the finding is highly
influenced by the respondents who belongs to single i.e. 52%.
8% 6%
7%
15%
9%
17%
40%
The Figure 5 reports the education level of different respondents taken under the study. The
majority 40% of respondents are of the academic qualification belonging to bachelor, which
is followed by intermediate group with 17%, master level group with 15%, 9% of
respondents are up to SEE level, others with 8%, 7% of respondents are general literate and
6% of respondents are not literate at all. Therefore, it reveals that the conclusion drawn based
on the findings is highly influenced by the respondents who belongs to the bachelor’s level
group.
2.1.5 Respondent’s Profession
Table 5
Profession of Respondent
24
Home Maker 9 9%
Self-Employed 13 13%
Private Service 21 21%
Public Service 17 17%
Student 40 40%
Others 1 1%
Total 100 100%
Note: Questionnaire Survey, 2024
1% 9%
13%
40%
21%
17%
The Figure 6 reports the gender wise age of different respondents taken under the study. The
majority (40%) of the respondents are of the professional group belonging to student, which
is followed by professional group under private sector with 21%, professional group
belonging to public services with 17%, professional group to self-employed with 13%, home
makers with 9% and finally others professional group with 1%. Therefore, it reveals that the
conclusion drawn based on the findings is highly influenced by the respondents who belongs
to the student group.
Income
Up to 25,000 18 18%
25,000-50,000 21 21%
50,000-75,000 31 31%
75,000-100,000 20 20%
100,000 and above 10 10%
Total 100 100%
Note: Questionnaire survey, 2024
10%
18%
20%
21%
31%
The Figure 7 reports the gender wise age of different respondents taken under the study. The
majority (31%) of the respondents are of the income group belonging to 50,000-75,000 of
income, which is followed by income group under 25,000-50,000 income with 21%, income
group belonging to 75,000-1,00,000 with 20%, income group belonging up to 25,000 with
18% and finally the income group of 1,00,000 and above with 10%. Therefore, it reveals that
the conclusion drawn based on the findings is highly influenced by the respondents who
belongs to the income level of 50,000-75000.
38%
62%
Yes No
Figure 8: Owing Electronic appliance of LG
Out of 100 respondents 62% are found that they are using LG appliance and remaining 38%
are not using LG as their electronic appliance. In the conclusion, we can say that only 62%
people use LG as their electronic appliance.
25 29
14
31
Most of the people who use electronic appliances, 31 percentage uses for entertainment
purposes. For cooking, electronic appliance is used by 29 percentage. For food preservation
electronic appliance is used for 25 percentage. And least is for cleaning i.e. 14 percentage.
Therefore, we can say that most of the people use electronic appliance for entertainment
purpose.
32%
68%
Yes No
The respondents are asked to choose whether they are satisfied with LG electronics, 68% are
satisfied with the product but 32% are unsatisfied with LG electronics.
1%
17%
28%
54%
Most of the people who use electronic appliances, rated 17 percentage for excellent, 54
percentage for good, 28 percentage for average and 1 percentage for poor respectively in the
conclusion we can say that most of the people are satisfied with LG products.
2.2.3 Analysis of Factors Affecting Consumer Buying Decision
This section attempts to find out the different factors influencing the consumers buying
decisions. Basically, it focuses to pricing, discount offer, quality and durability. Each of them
has been analysed as follows:
In order to find out the opinion of the respondents regarding the price as influencing factor in
their buying decision, 5-point Likert scale has been used assigning 5 to strongly agree, 4
agree, 3 as neutral, 2 as disagree, and 1 as strongly disagree. The results obtained have been
tabulated in Table below:
Table 7
Level of agreement on role of price in purchase decision.
Strongly Disagree 2
Disagree 8
Neutral 14
Agree 50
Strongly Agree 26
Total 100
Note: Questionnaire survey, 2024
The results are also shown as graphical presentation in Figure 12. The majority (50%) of
respondents agree that price is influencing factors in their buying decision and 26% of them
strongly agree that price is the major component in their buying decision. Only the 10% of
them do not agree that price is the major factor in buying decision.
60
50
50
40
30 26
20 14
10 8
2
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
Out of the 100 people who were surveyed in March 2024, 26% people reported that they are
strongly influenced by the price of the product. 50% people agreed to price factor while 14%
people remain neutral to the statement. Further, 8% disagree to price factor and only 2%
strongly disagreed that the price factor influence while purchasing home appliances.
Therefore, highly percentage of people considered the price factor before making any buying
decision.
29
Table 8
Level of agreement on fairness of price
15
10 9
5 3
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
Out of the 100 people who were surveyed in March 2024, 19% people reported that they
strongly agree on the fairness of price of the product.43% people agreed that the price is fair
while 26% people remain neutral to the statement. Further, 9% disagree that the price of LG
product is fair and only 3% strongly disagreed to the statement. Therefore, highly percentage
of people considered that the price of LG products is fair/affordable.
Table 9
Level of agreement regarding high price indicate high quality
Responses Percentage (%)
30
Strongly Disagree 5
Disagree 8
Neutral 22
Agree 41
Strongly Agree 24
Total 100
Note: Questionnaire survey, 2024
The results are also shown as graphical presentation in Figure 14. The majority 41%
of respondents agree that the high price of LG product indicate high quality and 24% of them
strongly agree that the high price of LG product indicate high quality. Only the 13% of them
do not agree that high price of LG product indicate high quality.
45
41
40
35
30
25 24
22
20
15
10 8
5
5
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
Figure 14: Level of agreement regarding high price indicate high quality
Out of the 100 people who were surveyed in March 2024, 24% people reported that they
strongly agreed that high price of LG product indicate high quality. 41% people agreed high
price of LG product indicate high quality while 22% people remain neutral to the statement.
Further, 8% disagreed and 5% strongly disagreed that high price of LG product indicate high
quality. Therefore, highly percentage of people considered that high price indicate high
quality.
b. Discount Factor in Consumer Buying Decision
In order to find out the opinion of the respondents regarding the discount as influencing
factor in their buying decision, 5-point Likert scale has been used assigning 5 to strongly
agree, 4 agree, 3 as neutral, 2 as disagree, and 1 as strongly disagree. The results obtained
have been tabulated in Table 10.
31
Table 10
Level of agreement on seeking offer and discounts while purchasing.
40
30
20 19
20
10 7
3
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
Figure 15: Level of agreement on seeking offer and discounts while purchasing
Out of the 100 people who were surveyed in March 2024, 19% people reported that they are
strongly influenced by the discount offer. 51% agreed to discount factor while 20% people
remain neutral to the statement. Further, 7% disagree to discount factor and 3% strongly
disagree the discount factor while purchasing.
Table 11
Level of agreement on relation of quality
Strongly Disagree 3
Disagree 7
Neutral 21
Agree 43
Strongly Agree 26
Total 100
Note: Questionnaire survey, 2024
The results are also shown as graphical presentation in Figure 16. The majority 43%
of respondents strongly agree that quality is influencing factors in their buying decision and
26% of them agree that quality is the major component in their buying decision. Only the
10% of them do not agree that discount is the major factor in buying decision.
50
45 43
40
35
30 26
25 21
20
15
10 7
5 3
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
Out of the 100 people who were surveyed in March 2024, 26% reported that they are strongly
influenced by the quality of the product.43% agreed to quality factor while 21% people
remain neutral to the statement. Further, 7% disagree to quality factor and 3% strongly
disagreed the quality of the product.
agree, 4 agree, 3 as neutral, 2 as disagree, and 1 as strongly disagree. The results obtained
have been tabulated in Table 12.
Table 12
Level of agreement on relation of durability
60
51
50
40
30
20 19
20
10 7
3
0
Strongly Disagree Disagree Neutral Agree Strongly Agree
Out of the 100 people who were surveyed in March 2024, 19% reported that they are strongly
influenced by the durability of the product. 51% agreed to durability factor while 20% people
remain neutral to the statement. Further, 7% disagree to durability factor and 3% strongly
disagreed the durability of the product.
e. Existing user’s recommendation in consumer buying decision.
In order to find out the opinion of the respondents regarding the existing user’s
recommendation as influencing factor in their buying decision, 5-point Likert scale has been
used assigning 5 to strongly agree, 4 agree, 3 as neutral, 2 as disagree, and 1 as strongly
disagree. The results obtained have been tabulated in Table 13.
34
Table 13
Level of agreement regarding purchasing after recommendation by its existing users
Figure 18: Level of agreement regarding purchasing after recommendation by its existing
users
Out of the 100 people who were surveyed in March 2024, 24% reported that recommendation
by its existing users influences in their buying decision. 43% agreed that recommendation by
its existing users influences in their buying decision while 27% people remain neutral to the
statement. Further, 4 percent disagreed and 2% strongly disagreed that recommendation by its
existing users influences in their buying decision.
The table 14 shows the mean of the number of the respondent as per the questions asked. The
responses determine the factor affecting consumer buying behavior of electronic appliance of
LG. The respondents were offered a five-point Likert scale and different eleven statements to
show their preferences were point 1 stands for strongly disagree and point 5 stands for
strongly agree.
Table 14
Table showing mean of various factors affecting purchasing of home appliances.
The Table 14 represent the number of responses shown by the respondents regarding agree
and disagree on various aspect of the mentioned questions. From above tabulation, it is clear
that there are many reasons that affect the consumer buying decision of electronics appliance
of LG. As per the table, the first mean is 3.9 which indicate that average people agrees that
the price plays an important role in their decision of purchasing electrical appliance of LG. It
holds the strong theory that most of the people are influenced by the price factor while
purchasing the electronics appliances of LG.
Similarly, consumer strongly agrees that discount offer also plays an important role while
buying the electronics appliances. The mean of 3.76 indicates that most of the people seeks
for discount offer while purchasing electronics appliances. The third mean, 3.66 indicates that
36
people thinks that LG electronics is offering fair and affordable price for their product. Most
of the people thinks that LG is offering fair price whereas least number of people disagree
with the statement. The forth mean, 3.89 shows that people are influencing to buy electrical
appliance of LG considering its durability. It shows us that most of the buy their product by
considering its durability and least of the people buy without considering the product’s
durability. The fifth mean, 3.83 indicates that average people prefer the LG electrical
appliance by referring its existing users. Most of the people buys the product by referring by
its previous user and other people buys the product without considering to its previous user.
The calculated sixth mean, 3.82 shows that most of the people think that quality of LG
electrical appliance is better in comparison to other company. Respondents strongly agrees
that quality of LG electrical appliance is better in comparison to other company. The seventh
mean, 3.71 indicates that people believe higher price of LG electrical appliance indicate high
quality. Most of the people think that higher price of LG electrical appliance indicate high
quality.
2.4.1 Findings
Based on the responses collected from distribution of the online questionnaire, the major
findings drawn from the collected data are:
a. Every age group bases their decision on features and quality because they operate in an
exemplary level.
b. Price is a significant factor influencing consumer buying decisions for LG electronic ap-
pliances, with a mean score of 3.9 on the Likert scale, indicating that most people agree
that price plays an important role in their purchase decision.
c. Discount offers also play an important role in influencing consumer buying behavior,
with a mean score of 3.76, suggesting that consumers actively seek discounts when pur-
chasing LG electronic appliances.
d. The quality of LG electronic appliances is perceived as better in comparison to other
companies, with a mean score of 3.82, indicating that most consumers agree with this per-
ception.
e. Durability is a crucial factor in consumer buying decisions for LG electronic appliances,
with a mean score of 3.89, suggesting that consumers highly value the longevity and reli-
ability of the products.
37
In summary, the findings highlight the importance of factors such as price, quality, durability,
discounts, and existing user recommendations in influencing consumer buying behavior for
LG electronic appliances in the Nepalese market.
2.4.2 Discussions
Price emerged as a highly significant factor influencing consumer buying behavior for LG
electronic appliances in this study. This finding aligns with established marketing principles
that price is one of the crucial elements of the marketing mix (Cohen, 1991). Consumers are
sensitive to pricing, and higher prices can deter purchases, as highlighted by (Munger and
Grewal's, 2001) research. The study's results suggest that LG should adopt competitive
pricing strategies and value-based marketing campaigns to attract and retain customers in the
electronic appliances market.
such as robust construction materials, rigorous testing, and extended warranties, to assure
consumers of the longevity and reliability of their products.
While discounts are influential, the study found that they are less crucial compared to price,
quality, and durability in shaping consumer buying decisions for LG electronic appliances.
This aligns with the literature, which suggests that discounts can attract consumers, but they
may not be the sole determining factor (Ariely, Loewenstein, & Prelec, 2008). LG should
implement targeted discount strategies to incentivize purchases without compromising the
perceived value of their products.
The study also revealed that recommendations from existing users play a vital role in
consumer decision-making for LG electronic appliances. This finding is consistent with the
literature, which highlights the influence of social factors, such as reference groups, on
consumer behavior (Kotler & Armstrong, 2001). LG can leverage positive word-of-mouth
and testimonials from satisfied customers to build trust and credibility among potential
buyers.
Overall, the study's findings are well-supported by existing literature, emphasizing the
importance of price, quality, durability, discounts, and recommendations from existing users
in shaping consumer buying behavior for LG electronic appliances. By aligning their
marketing strategies with these insights, LG can effectively cater to consumer preferences
and gain a competitive advantage in the electronic appliances market.
CHAPTER III
CONCLUSION AND ACTION IMPLICATION
affecting the consumer behavior in electronic appliance of LG. The study has focused on
various factors like price, quality, discount and durability of the electronic appliances. In the
presence of large number of electronic appliances of LG brand, both national and
international, in the market, it is really important to know how consumers make decision
while purchasing an electronic appliance. By observing the major factors affecting the
electronic appliance purchase decision of the consumers in the market, the problems can be
known and competitive advantage can be gained. After conducting this study, the researcher
was able to understand the marketing concept in a broad way with the study of factors
affecting electronic appliance purchasing decision.
The study has used both qualitative and quantitative method for the data collection. A survey
questionnaire has been developed into two different sections in which section A includes
personal information about the respondents and section B includes questions regarding
buying home appliances. There is use of mixed method for conducting this research study.
This study is based on exploratory and conclusive research design technique. To know the
major factor affecting the electronic appliance purchase decision of the consumers, it is
important to review various studies conducted by different scholars in the related field.
Likewise, the present researcher has also used various statistical techniques including
frequencies, mean, and percentage to know relationship between different variables.
3.2 Conclusion
This research study set out to investigate the factors influencing consumer buying behavior
towards LG electronic appliances in Biratnagar, Nepal. The findings reveal that price, quality,
durability, and discounts emerge as the most significant determinants in shaping consumer
purchasing decisions for LG products.
Price stood out as a pivotal factor, with a substantial portion of respondents indicating that
competitive pricing strategies play a crucial role in their decision-making process. Consumers
are highly conscious of the price point and value proposition when considering LG
appliances, emphasizing the importance of implementing effective pricing strategies.
Quality also emerged as a key consideration, with consumers prioritizing the features,
reliability, and performance of LG products. This highlights the need for LG to consistently
deliver high-quality appliances that meet or exceed consumer expectations, as quality
perception significantly influences purchasing behavior.
40
Interestingly, durability was found to be almost as influential as price and quality, indicating
that consumers place a high value on the longevity and robustness of LG appliances. This
finding underscores the importance of highlighting durability features and reliability testing
in marketing campaigns to reassure consumers about the long-term viability of their
investments.
While discounts and promotional offers were found to be influential, they were less
significant compared to price, quality, and durability. This suggests that while discounts may
attract consumers, they are not the sole determining factor in purchasing decisions, and
should be strategically implemented without compromising the perceived value of LG
products.
Furthermore, the study revealed that existing user recommendations and word-of-mouth play
a crucial role in consumer decision-making, highlighting the importance of fostering positive
customer experiences and leveraging satisfied customers as brand ambassadors.
Overall, the findings provide valuable insights for LG and other electronic appliance
manufacturers operating in Nepal. By understanding and addressing the key factors driving
consumer behavior, companies can develop targeted marketing strategies, emphasize product
strengths, and effectively communicate value propositions to attract and retain customers in
the competitive electronic appliance market.
d) Highlight the durability features, robust construction materials, and reliability testing of
LG electronic appliances to reassure consumers about the longevity of the products.
e) Leverage positive reviews and recommendations from existing users in marketing
campaigns, as consumer recommendations emerged as an influential factor in purchasing
decisions.
f) Conduct targeted marketing campaigns for different consumer segments based on factors
like age, income level, and education, as these demographics may prioritize different
factors when making purchasing decisions.
g) Continuously monitor and adapt to changing consumer preferences and market trends to
maintain a competitive edge in the electronic appliances market.
h) Explore opportunities for product innovation and diversification to cater to evolving
consumer needs and preferences for electronic appliances.
i) Invest in customer service and support initiatives to enhance the overall consumer
experience and build brand loyalty for LG electronic appliances.
REFERENCE
Ariely, D., Loewenstein, G., & Prelec, D. (2008). Coherent Arbitrariness: Stable Demand
Curves Without Stable Preferences. Quarterly Journal of Economics, 1(118), 73-106.
Blackwell, R. D., Miniard, P. W., & Engel, J. C. (2006). Consumer Behavior, 10th Ed.
Blattberg, R. C. (1990). Sales promotion: Concepts, methods, and strategies.
42
Union, E. P., & European, C. o. (2009). Directive 2009/125/EC. Official Journal of the
European Union.
Vijayalakshmi, S., & Mahalakshmi, N. (2013). Consumer behavior: An overview.
International Journal of Research in Commerce & Management.
44
APPENDIX
Dear Respondent,
I am a student of Mahendra Morang Adarsha Multiple Campus (MMAMC). I am undertaking
this academic research on the topic of "Factors affecting consumer buying behavior in
electronic appliance of LG" a part of summer project work for the partial fulfillment of
Bachelor of Business Administration degree from Tribhuvan University. This survey aims to
identify key factors that influence consumers when purchasing LG electronic appliances. I
would like to request you to go through the questionnaire below and answer them all. The
success of this study directly depends on your honest response to each question. Your
personal information will be kept confidential used only for research purpose.
Thank you so much for your cooperation and valuable time.
Regards,
Sapana Basnet
7th semester, BBA
Please choose the most suitable option for you and write the corresponding number in the
box aside.
Q1. Name:
Male……………………………………………………1
Female……………………………………….….…….... 2
Single………………………………………………….1
Married……………………………………………........2
45
Q4. Please check out your academic qualification status as given below:
Home maker……………………………………….….1
Self-employed…………………………………….......2
Private Service………………………………………. 3
Public service …...…………………………………... 4
Student………………………………………….….….5
Others (Specify)_________________________________
Q7. Could you please indicate the average monthly income of your family (in NRs.)?
Yes………………………………………………………1
No……………………………………………………….2
Q2. What is the main purpose behind using or buying electronic appliance of LG?
Cooking………………………………………………….1
Cleaning………………………………………………….2
Entertainment……………………………………….…...3
46
Yes…………………………………………………………1
No………………………………………………………….2
Excellent…………………………………………………….1
Good………………………………………………………...2
Average………………………………………………….….3
Poor…………………………………………………………4
For each question below, mark on the scale below that best characterizes how you feel about
the statement, where: 1=Strongly Disagree, 2=Disagree, 3=Neutral, 4=Agree, and 5=Strongly
Agree.
Particulars 1 2 3 4 5