Importance of National Culture While Branding Any Products in Nepal

This dissertation explores the importance of national culture in branding products in Nepal. It discusses the challenges faced by businesses due to cultural differences and the impact of culture on branding. The study also examines the relationship between culture and branding and provides recommendations for mitigating cultural challenges.

Running head: DISSERTATION
Importance of National Culture While Branding Any Products in Nepal
Name of the Student:
Name of the University:
Author’s Note:

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Acknowledgement
Thank you to all of those who have helped listened and encouraged me throughout this study. I
am indebted to my supervisor ……………………. whose guidance, advice and patience have
been immeasurable. My sincere thanks to all members of the…………… [Mention your
university/college name], both staff and students, whose continuous support have made this
thesis possible.
I would like to thank all of the participants in the study: students, teachers and Local Education
Authorities, for the time and help given throughout. Without their participation, this research
would not have been possible. In this context, I am also thankful to them, whose research work
helped me to execute this paper well.
Finally, I thank my family, without whom this thesis would not have been started or completed!
Your encouragement and support have never faltered; thank you.

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Abstract
The aim of the research is to investigate the importance of national culture while branding any
product in Nepal. For this study, the national culture of Nepal is being considered and its
importance in branding any product in the country. Culture is one of the significant factors that
ensure successful branding by the business organizations. The patterns include customs, beliefs,
morals, laws and intellect thereby, summing up the way individuals live in a particular area in a
specific time-period. The culture of a country plays a significant role in the strategic direction of
the business and helps in increasing efficiency and competitive position of the brand. several
global brands have encountered cultural issues while branding their product. Some of the
companies that encountered branding issues due to culture are Coco-Cola, BMW, McDonald’s
and Disney.
The culture of Nepal is fairly distinctive and is lagging from the rest of the western countries.
Increased secular belief, closed mind-set, minimized brand recognition are potential challenges
that business organizations face while branding any product in Nepal. In addition to,
understanding the native Nepalese culture is an issue for the brands, as it differs largely from the
existing cultures of the rest of the world. Analyzing the importance of culture while branding any
product is significant, as this offers the provision of identifying the impact of the gap of culture
on branding of products. Addressing the potential cultural issues while branding will also help in
assessing the relationship between culture and branding. Due to this comparison, it will become
easy to compare and contrast branding in the presence or absence of culture.
Positivism philosophy, deductive approach, descriptive design and survey research strategy has
been used. This facilitated the application of primary data collection technique and quantitative

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data analysis technique that is analyzed using co-relation and regression techniques using SPSS
software. In accordance with the survey research strategy, 50 participants are selected sing
simple random probability sampling technique that would help in understanding the significance
of national culture while branding any product in Nepal.
The results obtained from the data analysis indicates that the significant value has come to .000,
which states that the null hypothesis has been rejected and the alternate hypothesis has been
accepted in this case as well. As a result, it can be inferred that there is a strong relationship
between the national cultures that is present in the Nepal market with respect to the product
branding.

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Table of Contents
Chapter 1: Introduction....................................................................................................................9
1.0 Overview...........................................................................................................................9
1.1 Problem statement...............................................................................................................11
1.2 Research aim........................................................................................................................12
1.3 Research objectives.............................................................................................................12
1.4 Research questions...............................................................................................................13
1.5 Research hypothesis.............................................................................................................13
1.6 Research rationale................................................................................................................13
1.7 Structure of the dissertation.................................................................................................14
1.8 Summary..............................................................................................................................16
Chapter 2: Literature review..........................................................................................................17
2.0 Overview..............................................................................................................................17
2.1 Conceptual framework.........................................................................................................17
2.2 Concept of culture................................................................................................................18
2.3 Factors affecting culture......................................................................................................18
2.3.1 Religious beliefs...........................................................................................................19
2.3.2 Society..........................................................................................................................19
2.3.3 Language.......................................................................................................................20

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2.3.4 Customs and taboos......................................................................................................20
2.3.5 Values...........................................................................................................................21
2.3.6 Business norms.............................................................................................................22
2.4 Concept of branding............................................................................................................22
2.5 Factors affecting branding...................................................................................................23
2.5.1 Target audience.............................................................................................................23
2.5.2 Quality..........................................................................................................................24
2.5.3 Positioning and re-positioning......................................................................................24
2.5.4 Marketing......................................................................................................................25
2.5.5 Being the first one.........................................................................................................25
2.5.6 Communication.............................................................................................................26
2.6 Elements of branding...........................................................................................................26
2.7 Benefits of successful branding...........................................................................................30
2.8 Challenges in successful branding.......................................................................................31
2.9 Techniques for mitigating branding challenges...................................................................32
2.10 Culture of Nepal................................................................................................................33
2.11 Branding challenges in Nepal............................................................................................35
2.12 Methods of mitigating branding challenges in Nepal........................................................36
2.13 Impact of culture of branding............................................................................................37
2.14 Relationship between culture and branding.......................................................................38

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2.15 Benefits of considering culture while branding.................................................................39
2.16 Challenges of considering culture while branding............................................................40
2.17 Techniques for mitigating cultural challenges while branding..........................................40
2.18 Research gap......................................................................................................................41
2.19 Summary............................................................................................................................41
Chapter 3: Research methodology.................................................................................................42
3.0 Overview..............................................................................................................................42
3.1 Research outline...................................................................................................................42
3.2 Research philosophy............................................................................................................43
3.2.1 Explaining the use of positivism philosophy................................................................43
3.3 Research approach...............................................................................................................44
3.3.1 Explaining the use of deductive approach....................................................................45
3.4 Research design...................................................................................................................45
3.4.1 Explaining the use of descriptive design......................................................................46
3.5 Research strategy.................................................................................................................47
3.5.1 Explaining the use of survey research strategy.............................................................48
3.6 Sampling technique and sample size...................................................................................48
3.6.1 Explaining the use of random probability sampling technique....................................49
3.7 Data collection process........................................................................................................50
3.7.1 Explaining the use of primary data collection process.................................................50

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3.8 Data analysis technique.......................................................................................................51
3.8.1 Explaining the use of quantitative data analysis technique..........................................51
3.9 Ethical considerations..........................................................................................................51
3.10 Accessibility issues............................................................................................................52
3.11 Summary............................................................................................................................53
Chapter 4: Analysis and Findings..................................................................................................54
4.0 Introduction..........................................................................................................................54
4.1 Demographic factors............................................................................................................54
4.2 Inferential statistics..............................................................................................................56
4.2.1 Correlation analysis......................................................................................................56
4.2.2 Regression analysis.......................................................................................................67
4.3 Summary..............................................................................................................................69
Chapter 5: Discussions..................................................................................................................70
Chapter 6: Conclusion and recommendations...............................................................................73
6.0 Conclusion...........................................................................................................................73
6.1 Linking with objectives.......................................................................................................74
6.2 Recommendations................................................................................................................76
6.3 Future scope of the study.....................................................................................................78
References......................................................................................................................................79
Appendix 1.....................................................................................................................................94

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Survey questionnaire.................................................................................................................94

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Chapter 1: Introduction
1.0 Overview
The business organizations have to consider a number of factors for for ensuring successful
branding. Out of the various factors, culture is one of the significant factors that ensure
successful branding by the business organizations. As commented by Vallas and Cummins
(2015), culture is defined as the collaborative behaviors and patterns of individuals of a
particular region. The patterns include customs, beliefs, morals, laws and intellect thereby,
summing up the way individuals live in a particular area in a specific time-period. The culture of
a country plays a significant role in the strategic direction of the business and helps in increasing
efficiency and competitive position of the brand. As mentioned by Rius Ulldemolins (2014),
several global brands have encountered cultural issues while branding their product. Some of the
companies that encountered branding issues due to culture are Coco-Cola, BMW, McDonald’s
and Disney.
For this study, the national culture of Nepal is being considered and its importance in
branding any product in the country. In order to do so, the macro-environment of Nepal is
conducted using PESTLE analysis.
PESTLE Analysis
Political  Nepal was never colonized
 The corruption perception index is 116/176
 23 governments over last 23 years
 Ease of doing business: 105 by World Bank

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 Prime Minister is the head of the government (Singh 2017)
Economic  Nepal is one of the developing countries with one-quarter
of the population living under poverty.
 Economic freedom score of Nepal is 54.1 thereby, making
it 133rd freest in the 2018 index.
 Economic growth of Nepal is restricted due to lack of
entrepreneurial dynamism
 Current GDP of Nepal is 2,447.2 crores USD (Bastola and
Sapkota 2015)
Social  Religion is one of the crucial aspect in Nepal
 81% Hindus, 9% Buddhist, 4.4% Muslim, 3.1% Kirat,
1.4% Christian, 0.5% others and 0.2% unspecified.
 123 mother tongues are found
 Nepali is the national language that is spoken by 44.6% of
the population
 Staple foods are rice, lentils, pickles, vegetables and dhido
(traditional food)
 Deep rooted caser system, more than 100 ethnic and caster
groups (Sapkota et al. 2014)
Technological  Rich in many traditional technologies
 Dominant in rural areas
 Traditional technologies include pottery, paper
manufacture, medicine, food technology, textile

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manufacture, agriculture
 Lower research and development technology, Nepal uses
only .34% of GDP in technological advancements (Amer,
Daim and Jetter 2016)
Legal  Various legal Acts are in action in Nepal that includes
Partnership Act 1964, Private Firm registration Act, 1958,
Company Act 2006, Labor Act 1992, Bonus Act 1974, and
Mines and Minerals Act 1985 (Sarangi et al. 2014)
Environmental  Environmental issues are continuously rising in Nepal
 Pollution, over pollution, energy and species reservation,
deforestation are most concerning issues
 Timber forests are threatened due to habitat degradation,
unsustainable harvesting and deforestation (Bharati et al.
2014)
From the PESTLE analysis, it can be suggested that culture is an integral part of Nepal
and the purchasing decision is highly influenced by the cultural beliefs and habits of the
population. Thus, the business organizations aiming for branding an product in Nepal needs to
consider the cultural heritage of the country for making it successful.
1.1 Problem statement
While branding any product, issues in terms of cultures are encountered that makes
branding of any product in Nepal. The culture of Nepal is fairly distinctive and is lagging from
the rest of the western countries. Thus, keeping into account the Nepalese culture, it becomes

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difficult for the business organization to brand any product in the country. Increased secular
belief, closed mind-set, minimized brand recognition are potential challenges that business
organizations face while branding any product in Nepal. In addition to, understanding the native
Nepalese culture is an issue for the brands, as it differs largely from the existing cultures of the
rest of the world (Chapleo 2015).
Cultural branding is an issue because in spite of falling under the same culture the
individual preferences of brands might differ. Thus, taking into account the individual belief,
intellect, attitude for viewing a specific brand might differ thereby, offending one or the other in
the vast population. In addition to, taking into account the national culture for branding is an
issue, as it possesses slight difference with the local cultures. Therefore, taking care of the local
cultures as well as national cultures is a major issues that is faced while branding any product in
Nepal, as the country as several tribes and castes (Siegert et al. 2015).
1.2 Research aim
The aim of the research is to investigate the importance of national culture while
branding any product in Nepal.
1.3 Research objectives
The objectives of the research are:
 To understand the concept of national culture and branding
 To analyze the importance of national culture while branding any product in Nepal
 To assess the relationship between national culture and branding of any product in Nepal
 To provide suitable recommendations for ensuring appropriate national culture while
branding any branding any product.

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1.4 Research questions
The questions of the research are:
 What do you mean by national culture and branding?
 What is the importance of national culture while branding any product in Nepal?
 What is the relationship between national culture and branding of any product in Nepal
 What are the suitable recommendations for ensuring appropriate national culture while
branding any branding any product?
1.5 Research hypothesis
The research hypotheses are:
H0: National culture is not important while branding any product in Nepal
H1: National culture is important while branding any product in Nepal
1.6 Research rationale
Analyzing the importance of culture while branding any product is significant, as this
offers the provision of identifying the impact of the gap of culture on branding of products. The
research is important, as this provides an opportunity for the researcher to probable reasons of
considering culture while branding any product and how significant culture is when it comes to
branding any product. Addressing the potential cultural issues while branding will also help in
assessing the relationship between culture and branding. Due to this comparison, it will become
easy to compare and contrast branding in the presence or absence of culture (Iwabuchi 2015).
This research will also help in addressing the main factors that influences culture thereby,
having an impact on branding of any product. As a result, the study will be able to analyze the

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probable reasons why the business organizations face issues in considering national culture while
branding any product. Nepal is one of the developing countries that are dragging itself slowly in
the 21st century. This research will help in understanding and developing a deeper-understanding
about the existing culture of Nepal thereby, gathering idea about the belief, attitude and intellect
of the population when it comes to branding (Cwalina and Falkowski 2015). As a result,
identifying the gaps of considering culture while branding will help in suggesting ways for
overcoming the gaps thereby, investigating the impact of culture while branding any product in
Nepal.
1.7 Structure of the dissertation
Six major chapters that form the entire layout of the dissertation are introduction,
literature review, research methodology, data analysis, discussion, conclusion and
recommendation. Each of the chapters has unique characteristics that result in successful
completion of the research.
Chapter 1: Introduction
This is the first and the most crucial chapter of the dissertation, as this lays the overall
foundation of the study by providing an overview of the topic Discussing about the topic leads to
the development of research aim and objectives of the study followed by formulation of the
research hypothesis that helps in determining the relationship between the two variables. The
chapter also identifies the issues that will be investigated followed by rationalizing the selection
of the study thereby, highlighting the importance of the study in the field of research.
Chapter 2: Literature review

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The introductory chapter is followed by the literature review chapter where the name of
the chapter itself suggests reviewing of the past literatures. In this section, the independent and
the dependent variables are identified based on which the entire structure of the literature review
is structured. After identifying, the different factors affecting the variables are identified and
analyzed critically in order to know the positive as well as the negative impacts. Additionally,
this chapter highlights referring to relevant theories and models that helps in developing deeper
understanding about the research topic.
Chapter 3: Research methodology
This chapter is the third chapter of the study that is deals with different types of
methodological tools that are in existence while conducting a research. In this chapter, the
different types of methodological tools are defined along with their characteristics based on
which the researcher selects the particular methods for the study. This chapter justifies the
selection of the particular research methodology that eases the data collection process along with
shedding light on the research ethics and issues encountered while accessing the research.
Chapter 4: Data analysis
In this chapter the researcher gathers the data based on the selected methodology
mentioned in the previous chapter followed by analyzing them successfully. The data analyzed in
this chapter helps in determining the response of the samples selected thereby, achieving the
research aim and objectives ad either accepting or rejecting the research hypothesis.
Chapter 5: Findings and analysis

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This chapter includes analyzing the findings from the previous chapter by explaining the
potential reasons of the gathered data as well as relating it with the information presented in the
literature review chapter thereby, providing suitable evidence of the results that has been derived.
As a result, it becomes easy to understand and achieve the research aim and objectives.
Chapter 6: Conclusion and recommendation
This is the last chapter of the study that summarizes the overall findings of the study by
talking about the topic in general followed mentioning the identified gap and its impact by taking
into account the results derived in the data analysis chapter. Additionally, based on the identified
gap, suitable recommendations are provided that can be used for mitigating the issues followed
by highlighting the future prospects of the study.
1.8 Summary
Thus, in this chapter, it can be summarized that national culture is significant and is one
of the major factor that needs to be considered while branding any product. For this study, Nepal
is considered as the target country whose national culture plays a major role in successful
branding of any product. The culture of Nepal is different compared to the western countries. As
a result, any business organization wanting to brand their product needs to consider the national
culture of the country. From the information provided, it can be said that Nepal is still dragging
itself in the 21st century because the population still believes in holding onto their ancient
cultures and beliefs. Considering the Nepalese culture while branding any product ensures
relating with the target population successfully by respecting their beliefs and cultures thereby,
ensuring successful branding.

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Chapter 2: Literature review
2.0 Overview
The literature review section identifies the independent and dependent variable in
accordance with the study topic based on which the entire study is being conducted. This section
sheds light on the concept of both the independent and dependent variables along with critically
analyzing the factors affecting the variables. This section contains information and data of past
researches that helps in considering the past studies thereby, developing better and in-depth
understanding of the present study. For this study, national culture has been identified as the
independent variable and branding has been considered as dependent variable that is described in
detail followed by critically analyzing the factors it by taking into account the national culture of
Nepal.

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National culture
Religious belief
Social systems
Language
Customs and taboos
Values
Business norms
Branding
Target audience
Quality
Positioning and re-positioning
Marketing
Being the first one
Communication
2.1 Conceptual framework
Figure 1: Conceptual framework
(Source: Created by Author)
2.2 Concept of culture
Culture is an integral part and the heart of any country that represents the habits, beliefs
and religious beliefs of a particular place or a country. The concept of national culture is studied
vaguely studied in the past but have been successful in deriving concepts from different authors.
According to Antonczyk and Salzmann (2014), the set of beliefs, customs and behaviors of a
nation or a country is known as national culture. However, as argued by Kim and McLean
(2014), culture is defined as the way of living life by the individuals or groups of population in a
specific country or nation. The surrounding environment of the individuals plays a significant
role in developing the culture the individuals follow.

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On the other hand, according to Schwartz (2014), culture is also defined as integrated
pattern of human behavior, belief and knowledge that is followed the population of a specific
location. However, as argued by Linan and Fernandez-Serrano (2014), culture is termed as the
outlook, values, morals and customers shared by a society. The set of beliefs followed by a
locality is termed as local culture whereas the set of beliefs followed by a nation or a country is
termed as national culture. Local cultures might differ but highlights the components of the
national culture to a certain extent. For this study, the national culture of Nepal is studied in
respect to the research topic.
2.3 Factors affecting culture
Culture is a widely researched topic that is affected by various factors. The various
factors affecting national culture are religious beliefs, social systems, language, customs and
taboos, values and business norms. The factors affecting national cultures are analyzed critically
in respect to Nepal that affects branding.
2.3.1 Religious beliefs
The religious beliefs and the practice have a strong influence on the national culture. As
opined by Heywood and Bering (2014), the religious beliefs of a particular country highlights its
culture, as the majority of the population tend to develop values and beliefs according to the
prevailing religion. It is important for the business organizations to understand the existing
religious belief for understanding the national culture of a country. According to Campante and
Yanagizawa-Drott (2015), celebrating holidays and festivals is a major religious belief that is
witnessed across the globe that defines the national culture. For example, western cultures
celebrate Christmas whereas Islam celebrated Eid. Thus, it is important to identify the holidays
and festivals for understanding the religious beliefs of a nation. However, as argued by Coccia

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(2015), sensitive issues such as consumption habits affect the religious beliefs that help in
developing and shaping the national culture. For example, cows are considered sacred for Hindus
that helped in developing the national culture of worshipping cows thereby, banging cow
slaughter.
2.3.2 Society
Society leads to the development of a country that comprises of groups of people. As
commented by Ashourizadeh, Chavoushi and Schøtt (2014), the economic standard affects the
society, as this highlights the income level of the group of people comprising the society. The
financial status of the society develops the national culture that helps in understanding whether
the country is a developed, developing or under-developed country. The economic standard of
the society is important to understand for the business organization, as this helps in determining
the purchasing capacity, likes and dislikes by the society. However, as argued by Kottak (2016),
the demographic factors such as age, gender and race affects the society thereby, affecting the
national culture of the country. The business organizations need to understand and segregate the
society according to the existing demographics for better branding and marketing of their
product. Unable to consider the society of Nepal and its culture affect branding of any product in
the country (Hearnden 2014). For this study, the society of Nepal results in the development of
national culture that needs to be considered while branding any product in country.
2.3.3 Language
There is thousands of language existing in the world that makes it difficult for the
marketers while marketing or branding. Business organizations cannot over-emphasize on the
significance of language but cannot ignore it completely. According to Chew (2017), language
affects the national culture, as the businesses organizations have to consider it while product

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labeling, branding and forming tag lines. Failing to consider the language of a country hampers
the branding, as the business organizations are unable to connect and communicate with the
target audiences. However, as argued by Unsworth et al. (2014), there are differences between
the local and national language due to presence of several ethnic groups. For example, Nepal has
different local languages whereas the national language is Nepali. Thus, taking into account the
national language makes it easier for the business organizations while branding, as the locals
have an understanding of the national language.
2.3.4 Customs and taboos
Each culture has their own set of customs and taboos that makes them different from
other cultures. It is important for the business organizations to consider the unique set of taboos
and customs in order to ensure successful branding. As commented by Guiso, Sapienza and
Zingales (2015), customs and taboos highlight the culture of the country, as the customs and
taboos are said to be believed in a specific region and country. For example, in Japan number 4 is
considered to be unlucky and business organizations needs to restrict the use of the number while
branding the product in the Japanese market. However, as criticized by Aliakbari and Raeesi
(2015), the customs and taboos have contradictory viewpoints and representations within the
same culture thereby, making it difficult for the business organizations to decide while branding.
For example, majority of the Middle eastern women are seen wearing Hijab in public but in the
educational sector it is noticed hardly thereby, making it difficult for the marketers to decide
whether to use Hijab or not while branding. For this study, failure in considering the customs and
taboos of Nepal hampers branding any product in the country.

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2.3.5 Values
The role of values within a society or a culture highlights what is acceptable and what is
not for a particular culture. According to Ukawa et al. (2014), values are defined as the societal
fabric of a culture that can be expressed individually due to the influence family, education and
religious beliefs. Values influence the perception of the target customers, as the choice of a
product is largely influenced by the family values as well as societal values. For example, a
customer of a rich family will have values of purchasing expensive products and hardly settles
for average products, as it is believed in the family that expensive and branded products are the
best. However, as argued by Terzioglu, Temel and Uslu Sahan (2016), individuals gather values
through experiences that influence consumer perceptions and purchasing behavior of the
customers. For example, in Japan, the well-being and value of a group is considered whereas in a
country like the US, individual values are given more preference. Thus, for this study, the failure
in considering the value of the Nepal hampers branding of any product in the country.
2.3.6 Business norms
Business norms vary from country to country that impose challenges for the business
organization while branding their products. As commented by Morris et al. (2015), business
norms are standards that need to be followed by the business organizations in terms of rules and
requirements of conducting a business. However, as criticized by Mousavizadeh (2015), business
norms are defined as the common agreement in terms of organizational policies and laws that are
required while branding any product. The specific business policies and standards needs to be
followed regardless of the national culture of a country where the product is being branded.
Thus, for this study, failure in aligning the business norms of the brands with the national culture
of Nepal hampers branding of any product in the country.

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2.4 Concept of branding
Branding is one of the significant marketing strategies undertaken and emphasized by the
business organizations for creating a unique image in the eye of the customers as well as gaining
competitive advantage. According to Nesia and Darma (2015), branding is defined as the process
involved in creating a unique image in the mind of the target audiences by using suitable
advertisements. However, as argued by Kotabe and Helsen (2014), the concept of branding
outlines the existence of the product thereby, highlighting the reason of existence for the product.
It is important for the business organizations to ensure successful branding for achieving
competitiveness and distinctiveness.
On the other hand, branding is also defined as the ethics and behaviors followed by the
business organizations while developing a particular product (Speed, Butler and Collins 2015).
However, on the contrary, branding is defined as the strategies undertaken by the business
organizations for getting recognition in the particular business environment (Zenker and Erfgen
2014). Thus, ensuring successful branding is important for the business organizations for
successful recognition and acceptance among the target audience.
2.5 Factors affecting branding
Considering the significance of branding, the factors affecting are target audience,
quality, positioning and re-positioning, marketing, being the first one and effective
communication. Ensuring the application of the factors determines successful branding on any
product under any national culture. Building a brand successfully ensures gaining competitive
advantage in the tough and fierce business environment.

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2.5.1 Target audience
It is important for the business organizations to determine the target audience before
branding a product in any market. According to Lo, Chiong and Cornforth (2015), deciding the
target audience provides an opportunity for the business organizations to narrow down the
potential customers and develop features accordingly. Having a target audience helps in
categorizing the business organizations with similar needs and demands that the company aims
to serve. Setting the target audience provides an opportunity for the business organizations to
know the individuals interested in buying their products. However, as argued by Upton (2014),
setting a target audience provides an opportunity for the business organizations to know the
customer sector that can help in generating maximum revenue. Thus, having a target audience is
cost-effective, as the business organizations spend according to the needs and demands of the
target audiences. Branding of any product under any national culture is successful once the
business organizations have set the target audiences successfully. Failure in determining the
target product hampers branding of any product in Nepal.
2.5.2 Quality
Having quality product is the core of branding thereby, ensuring that the product that is
being branded possess the basic functional requirement expected by the target audiences. Higher
quality of the product incurs higher profit compared to the products with compromising quality.
According to Helm and Ozergin (2015), considering the quality of the product while branding is
important, as this plays a critical role in achieving customer satisfaction. The success of the
business organizations is largely dependent on the trust of the target customers. Maintaining a
standard quality provides an opportunity for the business organizations build customer trust and
confidence thereby, bringing them back repeatedly. However, as criticized by Hajli et al. (2017),

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maintaining a standard quality reduces customer complaints and returns thereby, ensuring a clear
flow of the business operational process. Additionally, having quality product ensures positive
word of mouth and recommendations of the products thereby, increasing the sales. However,
failure in maintaining standard quality hampers branding of any product in Nepal.
2.5.3 Positioning and re-positioning
Both positioning and re-positioning are essential for successful branding, as this provides
an opportunity for the business organizations to place their product accordingly. As mentioned
by Berg and Bjrner (2014), brand positioning is important, as this helps in offering persuasive
sales tools for developing the overall business thereby, making ore sales. However, as argued by
Maarit Jalkala and Keranen (2014), brand positioning provides an opportunity for the business
organizations to boost their visibility in the competitive market. As a result, business
organizations are able to make the brand visible in the competitive market thereby, increasing
sales and profits. Thus business environment keeps on changing that leads to the development of
new opportunities. This gives rise to the need of brand re-positioning from the initial place. Re-
positioning of a brand is needed in order to identify and utilize the new market opportunities
thereby, sustaining in the competitive market by fulfilling the requirement of the customers
according to new market demands (Jewell and Saenger 2014). Failure in positioning and re-
positioning hampers branding of any product in Nepal.
2.5.4 Marketing
Marketing is one of the successful techniques of branding, as this provides an opportunity
for the business organizations to reach out to the target customers. According to Lovelock and
Patterson (2015), appropriate marketing strategies while branding helps in increasing the
visibility of the brand. The business environment has similar types of business organizations

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offering brands with more or less similar features and functions. It is the marketing technique
undertaken by the business organizations that makes the particular brand stand out from others.
However, as argued by Armstrong et al. (2014), using appropriate marketing techniques helps in
establishing and developing long-lasting relationships between the customers and the brand
thereby, ensuring brand loyalty. Additionally, successful marketing techniques help in creating
brand awareness and recognition in the tough and competitive business environment. Failure in
developing and implementing appropriate marketing technique hampers branding of any product
in Nepal.
2.5.5 Being the first one
Pioneer brands tend to be more successful than the follower brands. As commented by
De Mooij (2018), being the first of its kind provides an opportunity for the brand to create a clear
and distinctive position in the mind of the target customers. This is because the brand becomes
the first of its kind that fulfills the needs and demands of the customers. Additionally, the unique
impression is also created because the business environment does not have any competitions and
options. As a results, the brand is able to build both customer and distributor loyalty. However,
as criticized by Strauss and Frost (2016), being the first one provides an opportunity for the
brand to shape the expectations of the target customers. The pioneer becomes the benchmark of
the business market, if late entrants are noticed in the market. Failure of being the first one
hampers branding of any product in Nepal.
2.5.6 Communication
Effective branding helps in shaping the perception of the customers. According to Belch
et al. (2014), the brand needs to be able to communicate effectively with the target customers for
generating brand awareness and recognition. The benefits of successful brand communication are

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to make the customers feel related o attached with the brand thereby, increasing sales and profits.
The purpose of effective communication is that the target customers need to consider the brand
as an integral part of their life without thinking of considering the available alternatives.
However, as criticized by Royle and Laing (2014), effective communication helps in considering
the customer feedback of improving the brands and keeping the target customer engaged
continuously. Failure in ensuring effective communication with the target audiences hampers
branding of any product in Nepal.
2.6 Elements of branding
As understood from the information in the above-section, it can be inferred that
successful branding is required for creating a unique image in the eye of the customers. The ten
elements of branding are listed below that mention their characteristics and requirement for the
successful branding.
Brand identity
Brand identity is defined as the way individuals recognizes or identifies a particular
brand. The individuals tend to identify the brand by the logo used by them or the tag line
associated with the brand (Philips, McQuarrie and Griffin 2014). For example, the logo of Nike
is extremely simple but is recognized worldwide along with the tagline used by the company
“Just Do It.” In a business environment with business organizations offering similar or near
similar products and services, the logo and the tagline helps in distinguishing them from the rest
in the market.
Brand image

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According to Zhang (2015), the term brand image is defined as the idea individuals
develop in their minds about a particular brand. As a result, the image helps in dictating the
expectation of the individuals from the particular brand. For example, Rolls Royce is a luxury
car manufacturer. Thus, the individuals have the image that the company cannot manufacture
budget car in spite of the opportunity. Manufacturing budget car will thereby hamper the existing
premium customers of Rolls Royce and will dilute the image of the brand for the existing
customers. As a result, changing brand image is difficult that makes it necessary for the business
organizations to know their aims and objectives.
Brand positioning
As mentioned by Maarit Jalkala and Keranen (2014), the idea of positioning highlights
the way a product is placed in the market. Thus, brand positioning highlights placing of a product
in the market based on the selected customer segments. As a result, it becomes easy for the
business organizations to determine as well as define the target market. For example, Virginia
Slims is a cigarette product that is targeted towards women. The basic ingredients for this
cigarette is similar to other cigarettes but this is positioned for attracting women by making the
product slimmer in appearance along with sleeker packaging.
Brand personality
The concept of brand personality resembles the idea of the personality of human beings.
As opined by Viktoria Rampl and Kenning (2014), brand personality is defined as the personal
or the emotional qualities and connections that individuals develop with the business
organizations over time. For example, ruggedness can be linked with Wrangler and youthfulness
can be linked with Pepsi. Thus, it can be inferred that each and every element of the brand

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identity such as the color, the logo, the name and the tagline comprises to form the personality of
the brand.
Brand equity
The value of the brand is defined as the brand equity. As commented by Huang and
Sarigollu (2014), brand equity might include both tangible as well as intangible aspects of the
brands that results in developing the value of the brand. Tangible aspects of brand equity include
financial value such as revenue and market share whereas the intangible aspects highlight the
strategic benefits of the brand. For example, Apple is one of the leading technology brands that
are perceived by the people as a premium brand. Therefore, the sales as well as the image of the
brand take the brand equity level a notch higher.
Brand experience
A combination of everything that is undergone by a customer from purchasing to using is
defined as brand experience. According to Ramaseshan and Stein (2014), positive brand
experience results in attracting and retaining customers, as the customers feel that the business
organizations are making an effort to fulfill their needs and requirements. Therefore, the
behavior of the employees, delivery time, product quality and quantity combines to form the
brand experience. The customers expect to get similar experiences in all the existing outlets for
the business organization.
Brand differentiation
As mentioned by Davcik and Sharma (2015), brand differentiation is defined as the
ability of the business organizations to stand out in the existing crowd. Market saturation has led

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to tough and fierce competition in the market, as a rise of business organization offering similar
products and services has been noticed. As a result, the brands have to make them stand out in
the crowd by offering something different from the rest. For example, Dell provides an
opportunity for the customers to select the components and assemble their own system. Thus, the
opportunity of customizing own system makes Dell different, as no other brands offer scope of
machine customization.
Brand communication
Communication is the key tool that determines success for the business organizations. As
mentioned by Schivinski and Dabrowski (2015), brand communication is defined as the message
that is delivered by the brands through brochures, adverts, hoardings and punch lines. It is
necessary for the brands to communicate the vital information of the products or services in
terms of the properties, features and benefits to the target customers for ensuring brand
expansion and growth. Effective brand communicate provides an opportunity for the brand to
establish a strong relationship with the customers and convincing them for purchasing the brand.
Brand gap
Brand gap is a serious issue that is identified that result in failure of the brand for keeping
their promise. As commented by Roy and Banerjee (2014), brand gap is defined as the
communication difference between the promises made by the brand with what is actually being
done by the brand. It is advisable that the brand gap should be less for ensuring brand success.
Therefore, a brand needs to be able to deliver and fulfill the promise in order to be successful. If
a brand fails to deliver its promise even the marketing efforts cannot save the brand.
Brand extension

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Brand extension is often undertaken for offering something new to the customers and the
target market. According to Kim, Park and Kim (2014), brand extension is defined as the idea or
the willingness of the brands to diversify and explore new fields thereby, shifting from their
origin. Brand extension provides an opportunity keep the customers engaged continuously. For
example, Google offers many other services such as emails and operating systems though it
started off as a search engine. However, the brands need to keep in mind that the new services
complement the existing or the original services offered by the brand.
2.7 Benefits of successful branding
The benefits of successful branding are endless and are necessary for sustaining in the
competitive business environment. According to Bansal et al. (2014), successful branding helps
in building customer recognition. Customer recognition due to successful branding ensures that
the customers identify the brand to be running when shopping a particular product or a service.
The customers tend to select the brand they are familiar with rather than opting for unfamiliar
brands even brand is better than the familiar brand. However, as argued by Li and Liu (2014),
apart from customer recognition, successful branding provides a competitive edge in the market.
The brands are able to gain competitive advantage when the customers are aware of the brads
and back them up with their support. Greater brand recognition maximizes competitive edge, as
the customers do not look for alternatives available in the market.
Successful branding also makes it easy for the brands to introduce new products. As
mentioned by Kandampully, Zhang and Bilgihan (2015), successful branding makes it cheap for
the brands to introduce new products or test them prior investing on them further. The customers
are always interested in the new products of a brand they know and recognize. However, as
criticized by Hill and Alexander (2017), successful branding also ensures shared values and

32DISSERTATION
customer loyalty. Successful branding leads to the establishment of loyal customers, as the
customers can relate to the values of the brands. As a result, this gives rise to the development of
an emotional connection between the brands and the customers and the customers look up to the
brand always.
2.8 Challenges in successful branding
Though the benefits of successful branding are endless, achieving successful branding
often gives rise to potential challenges. According to Heller and Duchene (2016), treating brands
as assets for delivering short-term financial results along with media fragmentation tempts the
brands to emphasize on measurable and tactics more. As a result of increased focus on tactics
and measurable, the brands tends to neglect the aim and objectives of building assets. However,
as argued by Chapleo (2015), apart from treating brands as assets, having a compelling vision in
successful branding is often a challenge. At certain instances, it becomes difficult for the brands
to distinguish themselves followed by resonating with the customers and inspiring the
employees. Thus, the multinational nature of branding vision results in branding challenge.
As mentioned by Oliveira and Panyik (2015), successful branding is tough due to tight
competition in the existing market. The continuous need of excellent ideas and perfect execution
of the ideas is difficult. Thus, the idea that might be good according to the brand might fail to
derive the best results in the market. However, as argued by Moilanen (2015), gathering
adequate funding is another challenge in successful branding. Unable to develop a sensible
budget for branding results in financial challenges. Efficient budgeting is often a problem when
it comes to business finances. Considering the technological advancements, creating digital
branding strategy is often challenging. According to Brooks and Anumudu (2016), online brand

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building is more complex and dynamic compared to conventional brand building, as the entire
process happens on the virtual platform restricting personal bonding and connection.
2.9 Techniques for mitigating branding challenges
Successful branding can be achieved by overcoming the potential branding challenges.
According to Zavattaro and Adams (2016), one of the techniques of improving branding is being
true to who you are for the brands. The brands need to be authentic and true to their origin, the
values and the skills they excel at. This will provide an opportunity for delivering long-term
financial benefits to the brands, as they are able to create a unique image in the eye of the
customers by offering distinguished and unique products. However, argued by Hoppen, Brown
and Fyall (2014), generating innovative ideas continuously and consistently are difficult, as the
employees need to push themselves for facilitating innovation.
Social media has gripped the entire world population thereby, making it easy to reach
anyone regardless of location and time through this platform. As mentioned by Piehler, Hanisch
and Burmann (2015), keeping an active social media page can help in improving branding, as
this provides an opportunity for communicating with the target customers regularly. Being social
allows the brands to generate sales and leads by facilitating engagement by sharing latest content
about the brand as well as getting involved in a conversation. Social media account, podcasts and
camera phones provides amazing opportunities for establishing and expanding brands. However,
as criticized by Lipianen and Karjaluoto (2015), online brand building is more complex and
dynamic compared to conventional brand building, as the entire process happens on the virtual
platform restricting personal bonding and connection.

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Additionally, improving the culture of the company helps in overcoming branding
challenges, as the culture helps in defining the uniqueness of the brand by offering competitive
edge over the competitors (Same and Solarte-Vasquez 2014).
2.10 Culture of Nepal
Nepal is a country situated in the Himalayan range in the Kathmandu Valley. The culture
of Nepal is known as Nepalese culture or Nepali culture. The Nepali culture is a fusion of
Tibeto-Mongolian and Indo-Aryan influences that indicates a long history of trade, migration
and conquest. Nepal is a rectangular country with an estimated area of 147,181 square miles. The
country is bordered by Indian states in the east, west and south and in the north by Tibet. The
infant mortality rate of Nepal is extremely high as well as the fertility rated among women. The
Gokhali is established as the national language of Nepal by the King. Nepali is an Indo-European
language derived from Sanskrit and government podcasts, education, radio and government
broadcasts are done in Nepali language. However, some population of Nepal is seen to have
Nepali as a secondary language due to their region and ethnic group. As a result, some of the
groups are unable to enjoy the advantage in respect to education as well as civil service
positions. Thus, linguistic issues are highly debated since the rise of multiparty democracy
(Ranabhat et al. 2015).
The culture in Nepal has several symbols with Hindu and Buddhist origin or sources. The
Nepali culture believes auspicious symbols that include swastika of the Hindus and the trident of
Lord Shiva. The local buses, trucks and walls are seen to be decorated and painted with the
auspicious symbols. Other important symbols highly used in Nepal are sun, tree and plow for
designating political parties. Apart from the aforementioned symbols, other prominent symbols
used in Nepal are the symbol of the national flower, Rhododendron; the plumed crowns wore by

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the kings and the crossed kukhris for the Gurkhas. Several homes display the images of the
current royal family and symbol of a garden with various kinds of flowers signifies national
unity in spite of the presence of the cultural diversity (Streets 2017).
The social and religious norms of Nepal highlight rich and traditional culture of the
country that is fairly distinct from the western cultures. Marriage is an integral part of the
Nepalese society that needs to be maintained lifelong by both the individuals and the families.
The women need to take care of the children and the households chores whereas the men work
for earning livelihood. Apart from the social culture, religious culture highlights that 86%
Nepalese are Hindus, 8% are Buddhists, 4% are Muslims and just over 1% are Christians. The
beliefs of each religion are significantly different for example; the Hindus practice their religion
by doing puja. Two different types of Buddhist forms are practiced, one is practiced by the upper
class Tibetain refugees whereas the Tantric Buddhism practiced by the Newars. The Nepalese
culture believes in witchcrafts, ghosts, hungry ghosts and spirits that results in misfortune and
illness (Lama and Krishna 2014).
Vast cultural diversity makes branding any product in Nepal difficult, as the brand needs
to consider even the minute details in terms of culture for successful branding. Thus, while
branding any product in Nepal the cultural aspect including social and religion needs to be
considered in order to ensure successful branding.
2.11 Branding challenges in Nepal
Due to the cultural diversity of Nepal, branding in Nepal needs special attention. As
known, majority of the population in Nepal are Hindus followed by Buddhists, Muslims,
Christians and other tribes. Apart from the religious culture, the social culture in Nepal is fairly

36DISSERTATION
traditional. The country has a modern economy and is considered as a under-developed country
making branding of any product difficult. Crisis in Nepal in terms of electricity, water,
communication, fuel and inflation have been encountered in the country. Thus, it can be said that
vast cultural diversity makes branding any product in Nepal difficult, as the brand needs to
consider even the minute details in terms of culture for successful branding. Thus, while
branding any product in Nepal the cultural aspect including social and religion needs to be
considered in order to ensure successful branding (Hoppen, Brown and Fyall 2014).
According to Papadopoulos and Hamzaoui-Essoussi (2015), increased rate of
unemployment makes branding difficult, as the business organizations are unable recover the
financial resources spend on branding strategies. Such is the case of Nepal where the rate of
unemployment is high making the economic class weak. Taking into account the economic
condition of the country, spending much on branding is not a wise decision, as they brands are
unable of recover the financial expenses from the Nepalese market. Some of the common brands
that are used in Nepal are Lux, Liril, Complan, Hero Honda, Tata and Horlicks. However,
premium brands such as Michael Kors, Gucci, Jimmy Choo and Chanel are hardly noticed in
Nepal, as the companies are unable to meet the branding criteria successfully (Wen and Sui
2014). The population of Nepal is unable to purchase such premium brands due to economic
instability and unemployment. Apart from the economic issue, religious culture also makes
branding difficult in Nepal. This is because of the existing cultural diversity that have varied
beliefs that makes it difficult for the brands to consider the unique beliefs of each religious
culture.

37DISSERTATION
2.12 Methods of mitigating branding challenges in Nepal
The branding challenges in Nepal are quiet distinctive due to the existing religious, social
and economic cultural diversity. According to Akin, Matthew and Comfort (2014), price is a
major factor in successful branding and the financial capacity of the target audiences needs to be
considered. In the case of Nepal, it has been seen that it is categorized as an under-developed
country along with higher rate of unemployment. Thus, the pricing strategy of branding has to be
selected according to the financial stability of the target audiences. The brands have to offer good
quality but low price while branding any product in Nepal. Getting good quality in fewer prices
will provide an opportunity for the brands to gather and develop loyal customer base in Nepal.
However, as argued by Swaminathan (2016), religious culture dominates the beliefs,
attitudes and habits of the population that influences the purchasing decision of the target
audiences largely. In the case of Nepal, the religious culture plays a significant role in
influencing the purchasing decision of the customers. Thus, successful branding in Nepal can be
achieved if the brands take care of the existing religious beliefs of the target audiences. This can
be achieved by the brands by ensuring appropriate packaging of the products. For example, as
majority of the population in Nepal is Hindu, the brands need to take care that the Hindu
religious beliefs are not hurt due to the packaging of the brand. This is because packaging is the
first thing a consumer sees and plays a significant role in differentiating a brand from the
competitors (Piehler, Hanisch and Burmann 2015).
Another way of ensuring successful branding in Nepal is categorizing the target
audiences based on the religious culture. This will help in setting price and packaging
accordingly thereby, making it sure that successful branding is achieved.

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2.13 Impact of culture of branding
Culture is said to be the cumulative concept that considers customs, beliefs, practices and
knowledge acquired by the individuals living in a society. As mentioned by Wu, Funck and
Hayashi (2014), the impact of culture in building a successful brand is significant more than
ever. As brands consider cultures, it becomes imperative for the brands to standardize and
customize by managing to retain the inherent brand identity by accepting it across the market.
However, as argued by Kumar, Jacob and Thota (2014), the images, advertising and channels
used by the brand plays an important role in respecting the culture of the target audiences.
Considering the images according to the religious culture highlights mutual respect thereby,
gaining customer loyalty and satisfaction.
On the other hand, culture helps in successful branding, as the target audiences are able to
relate with the brand better. According to Liu (2015), the customers are able to relate with the
brands better, as their values match and coincide. As a result, this helps in bringing the brands
and the target customers closer and creating a healthy and strong bond thereby, increasing sales.
However, as criticized by Holt (2016), culture helps in understanding the consumption patterns
of the brands. The consumption pattern of the customers can be understood by considering both
individualistic and collectivistic cultures. The individualistic consumption pattern influences
branding purchase based on personal believe about the culture whereas the collectivistic
consumption is influenced by the cultural belief of the society. However, it id further argued by
Siamagka, Christodoulides and Michaelidou (2015), considering the individualistic as well as
collectivistic consumption pattern makes it difficult and time-consuming for brands. This is
because the target audiences selected by the brands are large and taking into consideration the
cultural beliefs of each and every individual makes branding difficult and gives rise to conflicts.

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2.14 Relationship between culture and branding
Brand and culture are both inter-related and is often said that brand is culture. As
mentioned by Czinkota, Kaufmann and Basile (2014), considering the culture of a nation or a
country highlights how a brand acts or thinks. Business expansion is a major objective for the
brands that can be possible when brands tend to consider the culture of the country or a region
they intend to expand their business. Understanding the local as well as the national culture gives
an idea to the brands of what might work or might not work for a particular culture. However, as
argued by Fetscherin and Heinrich (2015), understanding the culture of the target audiences or
country provides an opportunity to have a better understanding of the needs, demands and
expectations of the customers. As a result, products can be manufactured accordingly and
branded by considering the cultural beliefs and habits.
This highlights a positive relationship between branding and culture because respecting
the culture increases brand recognition and brand preferences. For example, if the country and its
people finds that their values, beliefs in terms of culture are respected, branding of any product
becomes easy and smooth. The business organizations do not have to put in much effort for
branding in terms of equity, positioning and differentiation and attract customers automatically
(Zhang, Van Doorn and Leeflang 2014).
On the other hand, branding and culture also highlights negative relationship with each
other. Several cultures are in existence around the world that makes it difficult for the business
organizations to consider while branding. According to Habibi, Laroche and Richard (2014),
considering culture while branding often gives rise to conflicts due to distinctive cultural beliefs.
There is always scope for the brands to hurt the sentiments of some individuals due to difference
in cultural beliefs. For example, some Hindu might prefer beef delicacies whereas some Hindu

40DISSERTATION
might be offended by the advertisement of beef delicacies due to cultural values that considers
cow as a god in the religion.
2.15 Benefits of considering culture while branding
Globalization has increased the demand of considering culture while branding thereby,
making going “glocal” significant. As mentioned by Chiambaretto, Gurău and Le Roy (2016),
considering national culture while branding shows respect for the culture of the target audience
and market. The feeling of own culture being respected and valued increases brand popularity,
equality and positioning. As a result, a positive relationship is developed and manifested that
provides customer satisfaction and loyalty. However, as argued by Wheeler (2017), considering
the culture while branding increases the brand value. The individuals prefer the brand more, as
they feel that their culture is being taken into consideration while manufacturing the product and
the brand does not support anything that compromises their culture. For example, some Hindu
might prefer beef delicacies whereas some Hindu might be offended by the advertisement of beef
delicacies due to cultural values that considers cow as a god in the religion.
On the other hand, considering culture while branding gives competitive edge to the
business organizations, as the customers are able to relate with the brands efficiently and
effectively. The customers prefer the brand that considers their culture and highlights it in their
product rather than the brands that disrespects or fails to highlights respect for the culture. This
offers competitive advantage over the rest of the brands in the market (Marcoz et al. 2016).
However, on the contrary, considering culture while branding results in improved and increased
customer loyalty. As the customers feel that the brand respects and values their culture, they tend
to show loyalty by purchasing and re-purchasing the product of the same brand.

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2.16 Challenges of considering culture while branding
Considering national culture is always challenging while branding because of the
distinctive beliefs, attitudes and habits in spite of following a particular culture. As mentioned by
Dinnie (2015), relating culture and branding is often a challenge, as business organizations fails
in achieving brand and culture relevance. Unable to establish relevance between culture and
branding fails in engaging the customers that hampers the customer engagement and loyalty. The
customers feel deceived if they are unable to relate the brand with their cultural values, attitudes
and beliefs. However, as argued by Moilanen (2015), apart from ensuring brand relevance, the
existing cultural diversity across the globe makes it difficult while branding. The prevailing
cultural diversity makes branding time-consuming and difficult to develop, as a particular nation
is made up of several local cultures. For example, in Nepal, though the national culture is
Nepalese, Hinduism, Buddhism, Christianity and Islam forms the local cultures. Thus, deciding
the target audiences based on the cultures makes branding difficult, lengthy and time-consuming.
2.17 Techniques for mitigating cultural challenges while branding
In order to ensure successful branding, the cultural issues need to be mitigated. As
mentioned by Same and Solarte-Vasquez (2014), packaging according to the cultural beliefs is
one of the methods of mitigating cultural challenges while branding. Packing the products
according to the national culture of the target audience helps in establishing effective relationship
between the brands and the customers thereby, ensuring customer engagement and satisfaction.
As the customers feel that the brand value and respects their cultural beliefs, they tend to develop
assurance and confidence that their cultural beliefs will not be hampered. However, as criticized
by Kleppe and Mossberg (2015), taking into account the local cultures within a particular nation

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will help in mitigating branding challenges by mitigating cultural conflicts and ensuring
successful branding.
2.18 Research gap
This study revolves around national culture and branding of any product in Nepal. This
study fails to specify any particular business sector or product that has resulted in the wide and
broad nature of the study. This is a major gap identified in the study, as this restricted the
researcher from narrowing down the study. While conducting the literature review, it could be
seen that the majority of the past researches emphasize on different cultural factors by vaguely.
In-depth analysis of the factors is not seen in the past researches thereby, making it a probable
research gap for this topic.
2.19 Summary
Thus, in this chapter, it can be summarized that national culture plays an important role
while branding any product in Nepal. The national culture of Nepal is fairly distinct from the
western countries thereby, making it a point for the brands to consider its national culture while
branding any product in Nepal. Successful branding is beneficial for the business organizations,
as this helps in creating a unique image in the eye of the customers and increasing sales and
profit. In addition to, cultural factors impose challenges while branding that needs to be
mitigated for successful branding. Both national culture and branding is discussed in this section
in respect to Nepal.

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Chapter 3: Research methodology
3.0 Overview
The literature review chapter is followed by this chapter that sheds light on the different
steps that is undertaken for completing a research study successfully. Completion of the study
authentically and conclusively is dependent on the appropriate selection of the stances of the
methodological framework that includes the research philosophy, approach, design, strategy,
sampling techniques, data collection as well as data analysis technique. In order to enhance the
quality of the research, the research methodologies are defined, discussed and justified for being
used for this study. Additionally, the significant research ethics and the accessibility issues are
also discussed that is required for completion of the study successfully. Therefore, the overall
chapter is constructed with the aim of developing in-depth knowledge about the existing
methodological tools.
3.1 Research outline
Considering the research topic, positivism philosophy, deductive approach, descriptive
design and survey research strategy has been used. The application of the aforementioned
research methodologies has helped in achieving the research aim and objectives logically, by
referring to past information and exploring and explaining the issues identified in the study. This
facilitated the application of primary data collection technique and quantitative data analysis
technique that is analyzed using co-relation and regression techniques using SPSS software. In
accordance with the survey research strategy, 50 participants are selected sing simple random
probability sampling technique that would help in understanding the significance of national
culture while branding any product in Nepal.

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3.2 Research philosophy
Research philosophy is defined as the process that analyzes the data in respect to the
selected study topic. A research is conducted by applying three types of philosophies that are
known presently, that are, positivism, interpretivism and realism. According to Mackey and Gass
(2015), the term realism philosophy is defined as the process that facilitates enquiry conducted in
a scientific manner. As a result, the study is conducted by considering the sense of truth
signifying that the research objects are independent in nature in respect to the human mind.
On the other hand, interpretivism philosophy is defined as the method that helps in
understanding the difference in opinions in the society. The application of interpretivism
philosophy allows conducting the study in an intensive manner (Silverman 2016). As mentioned
by Taylor, Bogdan and DeVault (2015), positivism philosophy is defined as method that
considers and describes the specific phenomena by considering the objectives taken up for the
study. This philosophy ensures that phenomenon is isolated thereby, making sure that the
observations are not repeatable.
3.2.1 Explaining the use of positivism philosophy
Taking into account the characteristics of the three philosophies, positivism philosophy is
the best suited for this study. Firstly, positivism philosophy is best suited because this is the most
appropriate philosophy when deductive approach is used. Secondly, positivism philosophy is
justified because formulation of hypothesis is facilitated followed by testing and proving either
the null or the alternative hypothesis. Therefore, the hypothesis set for this study that whether
national culture is important for branding any product in Nepal or not can be tested (Flick 2015).

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Thirdly, the application of positivism philosophy allowed use of factual knowledge that
facilitated making quantifiable observations by referring to scientific data and logic. As a result,
factual knowledge about national culture and branding is studied separately by using scientific
and logical information. Positivism philosophy helps in observing the human senses empirically
thereby, testing the hypothesis accordingly. The observations are supported with logic that helps
in developing a conclusive study. Thus, positivism philosophy allowed finding the logical issues
in terms of national culture while branding any product thereby, developing a conclusive study
(Vaioleti 2016).
3.3 Research approach
Discussing the research approach is a significant part of a study, as this highlights the use
of past researches and breaking down the arguments into several points. A research is conducted
by applying two types of approaches that are known presently, that are, inductive and deductive
approaches. According to Lewis (2015), the term deductive itself suggests deducing or inferring
from the past literatures and information based on the research topic. The application of
deductive approach facilitates deducing observations based on the past pieces of literatures,
theories and models. As a result, it is possible to focus on achieving the research aim, objectives
and hypothesis and deduce suitable and relevant observations.
On the other hand, inductive approach is opposite to the deductive approach, as in this
case, new theories and models are induced or formulated according to the observations (Bresler
and Stake 2017). Inductive approach is time-consuming and prone to error, as developing new
theories and concepts takes time and incorrect and varied observations results in the formulation
of varied and lack of similar theories and concepts.

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3.3.1 Explaining the use of deductive approach
Taking into account the characteristics of the two approaches, deductive approach is the
best suited for this study. Firstly, the applying deductive approach is best suited because the use
of positivism philosophy has been mentioned (Alvesson and Skoldberg 2017). Secondly,
deductive approach influenced the use of past researches and information according to the
selected topic for the study. As a result, this allowed deducing suitable observations and
comparing and contrasting own findings with past researches thereby, authenticating and
justifying the findings. Therefore, the use of deductive approach allowed referring to past
researches and information in terms of the concepts of national culture and branding separately.
As the research title itself highlighted branding in Nepal, the use of deductive approach
allowed analyzing the macro-environment of Nepal and its national culture thereby, deducing
conclusions the significance of national culture of Nepal while branding any product. Thirdly,
the information and data from the past researches ensures proving the formulated hypothesis
(Smith 2015). Deductive approach also allows transferring general information into specific
information. As a result, general information about national culture, factors, benefits and
challenges are transformed to specific information by aligning it with the national culture of
Nepal and its impact while branding any product in Nepal (Quinlan et al. 2019).
3.4 Research design
The term research design is defined as the procedure that helps in planning and
structuring the overall investigation process in such a way that the questions and gap are
addressed (Ledford and Gast 2018). A research is conducted by applying three types of designs
that are known presently, that are, explanatory, descriptive and exploratory approaches.
According to Bauer (2014), explanatory design is defined as the design that explains the

47DISSERTATION
probable reasons of the occurrence of the identified issues by analyzing and interpreting the
studies within a specific population. Reaching to the core that lead to the issues allows
explaining the probable circumstances that resulted in the gap thereby, suggesting ways of
mitigating those in the later part of the study as recommendations.
On the other hand, exploratory research design aim towards exploring or identifying the
probable issues within a study (Dang and Pheng 2015). Exploring the probable issues within a
study is done by applying both quantitative and qualitative study emphasizing on a particular
sample by ensuring in-depth and extensive research study. Descriptive design is said to be a
multidimensional research design that highlights both the characteristics of explanatory and
exploratory research designs thereby, allowing exploring as well as explaining the issues within a
specific study.
3.4.1 Explaining the use of descriptive design
Taking into account the characteristics of the three designs, descriptive design is the best
suited for this study. Firstly, using descriptive study allows both exploring and explaining the
gap within a specific study easy, as the design allows performing both the functions
simultaneously rather than applying two separate designs and making the study complex (Choy
2014).
The application of descriptive design allowed addressing the cultural issues and branding
issues in general followed by the identifying the probable national cultural issues in Nepal that
needs to be considered while branding any product in the country. After exploring the probable
reasons in terms of national culture and branding in Nepal, the descriptive design aim towards
reaching the core that gives rise to the national cultural issues while branding any product in

48DISSERTATION
Nepal by explaining the probable conditions. Based on the identified issues and its explanation,
suitable recommendations are provided for overcoming the cultural issues that would make
branding easy in Nepal (Walliman 2017).
3.5 Research strategy
The term research strategy is considered as an appropriate action plan that shows the right
path to the thoughts and effort of conducting the study. As a result, it is possible to conduct the
research systematically and provide the results in detailed manner thereby, emphasizing on the
quality of the work largely (Reynolds et al. 2014). According to Jamshed (2014), action research
is defined as the procedure that helps in predicting the occurrences of the future phenomenon in
the study according to the research aim and objectives. On the other hand, survey research
strategy facilitates data collection through questionnaires. As a result, it is possible to gather data
from a particular population and know the viewpoints and opinions in respect to the research
topic. Additionally, survey research strategy enables studying more than one variable at a single
time (Weber 2017).
Case study research strategy is defined as the strategy in which somewhat similar and
relevant past researches are used as reference for conducting the present study thereby, drawing
required conclusions. Moreover, case study research strategy is used when interpretivism
philosophy is used (McCusker and Gunaydin 2015). Interview research strategy also allows
collection of data from each individual by communicating with the personally by using open-
ended questionnaires.

49DISSERTATION
3.5.1 Explaining the use of survey research strategy
Taking into account the characteristics of the four research strategies, survey research
strategy is the best suited for this study. The application of survey research strategy allowed
getting greater and deeper in-sights from the particular sample selected for the study. As a result,
it is possible to gather all the required information related to the research topic. For this study,
the implementation of survey research strategy allowed collecting data from a large population
about national culture and branding separately as well as the significance of national culture
while branding any product in Nepal (Wiek and Lang 2016).
The survey is conducted by developing close-ended questionnaires that helped in
gathering greater insights about the existing national culture of Nepal and how connected the
people are with their culture than needs to be considered while branding any product in the
country for successful branding. Based on the results suitable analysis is conducted and potential
recommendations are also provided so that the issues in terms of national cultures can be
mitigated for ensuring successful branding of any product in Nepal (Fletcher 2017).
3.6 Sampling technique and sample size
The term sampling is defined as the process of selecting the individuals that can serve as
an authentic source for analyzing the data in respect to the research topic. Appropriate selection
of sampling technique is important, as they act as a valuable source of information that helps in
achieving the research aim, objectives and hypothesis (Riedl, Davis and Hevner 2014). A
research is conducted by applying two types of sampling techniques that are known presently,
that are, probability and non-probability sampling techniques. Each of the sampling techniques is
further classified into sub-categories that are selected based on the sampling technique required
for the specific study.

50DISSERTATION
One of the probability sampling techniques is simple random probability sampling
technique that is widely used due to the simplicity of the technique. The samples are selected
randomly thereby, providing equal chances of each individual to be selected. This method does
not influence the quality of the sample (Mukhopadhyay and Gupta 2014). On the other hand,
non-probability sampling technique the members of the population does not have equal chances
of being selected as a sample and is selected by the researcher for fulfilling the purpose of the
research (Isaacs 2014).
3.6.1 Explaining the use of random probability sampling technique
Taking into account the characteristics of the two sampling techniques, simple random
sampling technique is the best suited for this study. The application of simple random probability
sampling technique provided equal chances for all the members of the selected population to be a
part of the survey that is conducted with the aim of understanding the significance of national
culture while branding any product in Nepal. Due to the selected sampling technique, large
sampling size can be selected that minimizes the biasness that is present within the selected
population. 100 participants have been selected as the sample size for this study out of the large
population by implementing the selected sampling technique (Brannen 2017).
As a result of the selected sampling technique, it is easier to understand national culture,
the factors affecting national culture, branding, factor affecting branding thereby; understanding
the features of successful branding is respect to the national culture of Nepal. Additionally, this
sampling technique allowed analyzing more than one variable in respect to culture and branding
thereby, achieving research aim and objectives (Dumay and Cai 2015).

51DISSERTATION
3.7 Data collection process
The term data collection is defined as the method that facilitates collection of authentic
accurate information about the research topic that helps in achieving the research aim and
objectives. A research is conducted by applying two types of data collection processes that are
known presently, that are, primary and secondary data collection process (Khan 2014). As
mentioned by Munn et al. (2014), gathering data and information from secondary sources is
termed as secondary data collection process. Information present in the books, journals, articles,
official websites and other internet facilities are known as secondary resources that highlights
secondary data collection process. The use of secondary data collection process is crucial for
formulating an effective literature review for the study, as this helps in referring to similar and
relevant past researches.
On the other hand, the primary data collection process is defined as the data collection
process from primary sources such as participants those have sufficient knowledge for achieving
the research aim and objectives. Primary data collection process helps in gathering recent and
updated data in accordance with the research topic (McDonough and McDonough 2014).
3.7.1 Explaining the use of primary data collection process
Taking into account the characteristics of the two data collection processes, primary data
collection process is the best suited for this study. Primary data collection process in this case
facilitates collecting data from the 100 participants that has been selected by using simple
random sampling technique. Primary data collection technique is useful for this study, as this
helped in understanding the existing national culture of Nepal and how connected the Nepalese
population is with their culture. Additionally, primary data collection process allows

52DISSERTATION
understanding the influence national culture has on the population thereby, analyzing the
significance of national culture while branding any product in Nepal (Veresov 2014).
3.8 Data analysis technique
Using appropriate analyzing technique is crucial, as this ensures successful interpretation
of the collected data. A research is conducted by applying two types of data analysis techniques
that are known presently, that are, qualitative and quantitative data analysis techniques
(Abdulghani et al. 2014). As the name signifies, qualitative data analysis technique emphasizes
on interpreting the data by maintaining the quality of the collected data. On the other hand,
quantitative data analysis technique emphasizes on the quantity or the numerical of the responses
gathered in respect to the questionnaires (Mayer et al. 2014).
3.8.1 Explaining the use of quantitative data analysis technique
Taking into account the characteristics of the two data collection processes, quantitative
data analysis technique is the best suited for this study. Quantitative data analysis technique
allowed conducting statistical analysis such as co-relation and regression that helped in
understanding the relation between national cultures and successful branding in Nepal as well as
understanding the significance of national culture while branding any product in Nepal. The
results of the quantitative analysis technique are presented using SPSS software (Hannula,
Suoranta and Vaden 2014).
3.9 Ethical considerations
Non-compliance with the research ethics leads to the failure of the study thereby, making
research ethics compliance highly recommendable and advisable. The ethical considerations
significant for the successful completion of research are mentioned and discussed below.

53DISSERTATION
 Data confidentiality is one of the important ethical considerations that ensure successful
completion of research work. According to this ethics, disclosing the identity and the
information shared by the participants is strictly prohibited against the individual consent.
It is necessary to keep the data shared and the identity confidential for restricting the
conflicts due to varied opinions in terms of a single topic (Fontana and Prokos 2016).
 Apart from data confidentiality, forceful participation is also against the ethics of the
research. It is required for the participants to take part in the study willingly and with
individual consent. Thus, signing the consent forms before proceeding with the data
collection highlights willing participation and compliance with the research ethics.
 Harming any species, be it humans, animals and plants are strictly prohibited and is
against the ethics of the research.
 Collection of data from authentic sources is another significant ethical consideration that
helps in including original and similar information to the research topic (Haahr, Norlyk
and Hall 2014).
 The information and data collection should only be used for academic purposes thereby,
suggesting that commercial use of collection information is against the ethics of the
research.
 Data manipulation is also against the research ethics that signifies that the data needs to
be presented in its original form and justified with appropriate information rather
manipulating it (Bugos et al. 2014).
3.10 Accessibility issues
Budget and time were the two accessibility issues that were encountered while
conducting the research. There was limited time to complete the research that resulted in

54DISSERTATION
hurrying up the study. Limited study restricted in conducting extensive studies for gathering in-
depth data that would have helped in up-lifting the quality of the study. Apart from time, budget
was another accessibility issue. Limited budget for conducting the study restricted from
accessing several important journals and articles that contained highly relevant information and
data, as it asked to pay for accessing. As a result, information was taken only from the abstract
that was accessible due to payment related issues.
3.11 Summary
Thus, in this chapter, it can be summarized that the researcher has been successful in
summing up the different research methods that has been undertaken for completing the study
successfully. Each of the methodological tools are mentioned, defined, discussed and justified
for being selected for completion of the research work successfully along with emphasizing on
the research ethics and accessibility issues. As a result, it can be said that undertaking the
justified research methodologies has helped in understanding the importance of national culture
while branding any product in Nepal.

55DISSERTATION
Chapter 4: Analysis and Findings
4.0 Introduction
This chapter helps the researcher in understanding the survey that has been conducted by
statistically representing the data. The data is analysed using the SPSS software so that it can be
interpreted in an easy manner. The survey has been divided in to three parts namely the
demographic factors, independent variables and the dependent variable. The demographic
section will be shown as pie charts and proper explanation will be provided regarding the type of
population that has been considered in this process of research. The independent variables has
been analysed using the correlation analysis so that the relationship between the factors can be
understood. Lastly, a regression analysis has been conducted so that it can help in understanding
the acceptance or rejection of the null hypothesis for which the study is being conducted.
4.1 Demographic factors

56DISSERTATION

57DISSERTATION
The demographic factors allow the researcher in understanding the type of population
that has taken part in the process of survey. The demography also allows the researcher in
understanding that the responses of the participants are valid for continuing the particular
research study. In this particular study, 50 participants have been considered and their responses
were recorded out of which it can be seen that 28 people were males who are between the age
group of 18-29 years. They have an education level of Master/Doctorate and has been dealing
with branding products for 3-6 years. Thus it indicates that most of the participants are of young
age and are highly educated. They also gave a fair idea regarding the branding products that are
available in the Nepalese market.
4.2 Inferential statistics
4.2.1 Correlation analysis
This statistical technique is used to find out the relationship between the two variables
that has been taken up in understanding the independent variable in a better manner.
Additionally, it also helps in understanding the level of strength that is present between the

58DISSERTATION
variables so that the research can be conducted in an authenticate manner. The range of the
values is from -1 to +1 where the range between -1 to 0 is considered to be negative correlation
and from 0 to +1 is considered to be positive correlation. This helps the researcher in getting a
better idea regarding the strength that is present between the variables in a negative or positive
manner. The analysis is also considered to be strong in nature when the correlation value is more
than 0.7.

59DISSERTATION
Religious beliefs
Correlations
Development
of beliefs help
in product
branding
Brands need
to have a clear
understanding
regarding the
existing
religious
beliefs
Holidays and
festivals needs
to be identified
while branding
any product
Consumption
habits present
in national
culture affects
product
branding
Development of beliefs
help in product branding
Pearson Correlation 1 .618** .590** .615**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Brands need to have a
clear understanding
regarding the existing
religious beliefs
Pearson Correlation .618** 1 .381** .537**
Sig. (2-tailed) .000 .006 .000
N 50 50 50 50
Holidays and festivals
needs to be identified
while branding any
product
Pearson Correlation .590** .381** 1 .485**
Sig. (2-tailed) .000 .006 .000
N 50 50 50 50
Consumption habits
present in national culture
affects product branding
Pearson Correlation .615** .537** .485** 1
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
The highest p-value for this analysis has come to .618 which shows that there is a
positive correlation between the factors. However, it can be seen that the correlation between the
factors are not strong enough as the value is less than 0.7. Thus it can be stated that the brands
need to have a better understanding of the beliefs that are present in the market so that it can be
developed in a proper manner. On the other hand, the lowest p-value for the analysis has come to
.381, which shows that the association is positive in nature but the strength is weak when
compared to the other factors. Thus it can be stated that the brands may not consider the holidays
and festivals that are present in the Nepal market, as it may create an impact on their volume of

60DISSERTATION
sales. They can simply make a strategy to offer discounts and sales coupons during the festivities
so that it can attract more number of potential customers.
Social Systems
Correlations
The economic
standard
needs to be
considered
while product
branding
Brands need
to consider the
demographic
factors in the
country
While branding
products,
existing
cultural habits
needs to be
considered
Customs and
traditions of
the national
culture needs
to be
considered
while branding
any product
The economic standard
needs to be considered
while product branding
Pearson Correlation 1 .425** .582** .673**
Sig. (2-tailed) .002 .000 .000
N 50 50 50 50
Brands need to consider
the demographic factors
in the country
Pearson Correlation .425** 1 .522** .528**
Sig. (2-tailed) .002 .000 .000
N 50 50 50 50
While branding products,
existing cultural habits
needs to be considered
Pearson Correlation .582** .522** 1 .363**
Sig. (2-tailed) .000 .000 .010
N 50 50 50 50
Customs and traditions of
the national culture needs
to be considered while
branding any product
Pearson Correlation .673** .528** .363** 1
Sig. (2-tailed) .000 .000 .010
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
The highest p-value from the test has come to .673 which shows that there is a positive
correlation between the factors but the bond between the factors are not strong, as the value is
less than 0.7. Thus it can be stated that there may a problem if the companies while branding the
products do not take in to consideration the customs and traditions that are prevalent in the
market as well as the economic standards of the customers. This might result in the loss of

61DISSERTATION
goodwill of the brands in the market, which might affect their level of sales as well. However,
the least value in the analysis among the factors has come to .363, which shows that the
relationship is positive in nature but the bond is weak compared to the other factors. Thus it can
be stated that when the products are being branded, the customs and traditions that are present in
the market may be taken in to consideration but it may not affect the brands to a great extent. The
consideration of the existing culture by the brands will also affect the volume of sales in a
positive manner.
Language
Correlations
Brands needs
to consider the
national
culture while
branding
Brands needs
to consider the
local language
while branding
any product
Using national
language
allows better
branding of
product
Using local or
native cultural
language
allows better
branding of
product
Brands needs to consider
the national culture while
branding
Pearson Correlation 1 .490** .731** .606**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Brands needs to consider
the local language while
branding any product
Pearson Correlation .490** 1 .545** .541**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Using national language
allows better branding of
product
Pearson Correlation .731** .545** 1 .517**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Using local or native
cultural language allows
better branding of product
Pearson Correlation .606** .541** .517** 1
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
The highest p-value for the test has come to .731, which shows that the factors are related
to each other and the strength between the factors is also strong, as the value is greater than 0.7.

62DISSERTATION
Thus it can be stated that the brands need to take in to consideration the cultural norms and the
local language that is present in the country so that it can increase its level of sales. In the
Nepalese market, the brands need to communicate with the customers in their local language so
that it can result in increasing the sales of the products and services. The lowest p-value for the
test has come to .490, which shows that the brands may not take in to consideration the local
languages while establishing themselves in the local market. This is due to the fact that the
international brands have their own appeal, which may influence a certain section of the
customers present in the market. The sale of the brands depends mainly on the quality of the
product that is being given to the customers so that it can increase their level of satisfaction in the
Nepalese market.
Customs and taboos
Correlations
National
customs and
taboos needs
to be
considered
while product
branding
Different
viewpoints
regarding
national
taboos and
customs
creates issues
while product
branding
Considering
national
customs and
taboos while
branding is
cost effective
Considering
national
customs and
taboos while
product
branding gains
competitive
advantage
National customs and
taboos needs to be
considered while product
branding
Pearson Correlation 1 .481** .587** .631**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Different viewpoints
regarding national taboos
and customs creates
issues while product
branding
Pearson Correlation .481** 1 .569** .686**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Considering national Pearson Correlation .587** .569** 1 .742**

63DISSERTATION
customs and taboos while
branding is cost effective
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Considering national
customs and taboos while
product branding gains
competitive advantage
Pearson Correlation .631** .686** .742** 1
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
The highest p-value of the test has come to .742, which shows that there is a positive
correlation between the factors taken up for the study. The bond between the factors is also
strong as the value is more than 0.7. Therefore it can be stated that the brands need to consider
the customs and taboos that are present in the nation so that it can help them to be cost-effective.
This will allow the brands to gain a competitive advantage in the market over the rival
companies that are also operating in the same environment. The lowest value for the test has
come to .481, which shows that there is positive correlation however the relationship between the
factors are not strong enough when compared to the other factors. Thus it can be stated that
taking in to consideration the different viewpoints of national customs and taboos that are present
in the local market may create an issue while the products and being branded. This is due to the
fact that the organizations need to follow the local customs and taboos that are present
throughout the market that will enable them in establishing a proper standard of the products.
This might get affected when the views of different people in the market are considered, as the
ideas will lead to changing the strategies on a frequent manner that may downgrade the sales
volume of the brands.

64DISSERTATION
Values
Correlations
National
cultural values
plays a
significant role
while product
branding
Individual
values and
national values
both needs to
be considered
while product
branding
Family values
needs to be
taken into
account while
product
branding
Considering
both national
values and
local values is
difficult while
product
branding
National cultural values
plays a significant role
while product branding
Pearson Correlation 1 .652** .633** .460**
Sig. (2-tailed) .000 .000 .001
N 50 50 50 50
Individual values and
national values both
needs to be considered
while product branding
Pearson Correlation .652** 1 .519** .523**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Family values needs to be
taken into account while
product branding
Pearson Correlation .633** .519** 1 .606**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Considering both national
values and local values is
difficult while product
branding
Pearson Correlation .460** .523** .606** 1
Sig. (2-tailed) .001 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
The highest p-value has come to .652 which shows that the correlation between the
factors are positive in nature. The strength of the bond between the factors however is medium as
the value is not more than 0.7. Thus it can be stated that the brands may face problem if they do
not take in to consideration the individual and national values that are present in the country
while the product is being branded. The lowest p-value of the analysis has come to .460, which
indicates that the analysis is positive in nature but the bond is weaker when compared to the
other factors present in the variable. Thus it can be stated that national culture plays an important
role in the branding of products but taking in to consideration the national and local values may

65DISSERTATION
create a negative impact on the brands. This is due to the fact that the products need to appeal to
the customers in a national market so that it can increase its volume of sales. There are many
local markets that are present in Nepal for which the brands needs to devise strategies
individually. This will increase the expenditure of the brands, which may hamper the level of
profits as well.
Business norms
Correlations
Brands should
develop
business
norms
according to
the national
culture
The brands
should follow
the rules that
forms the
national
culture while
branding any
product
Cultural norms
comprising the
national
culture needs
tie b followed
while branding
any product
Considering
business
norms
according to
the national
culture helps in
product
branding
Brands should develop
business norms according
to the national culture
Pearson Correlation 1 .519** .707** .573**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
The brands should follow
the rules that forms the
national culture while
branding any product
Pearson Correlation .519** 1 .543** .657**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Cultural norms comprising
the national culture needs
tie b followed while
branding any product
Pearson Correlation .707** .543** 1 .681**
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
Considering business
norms according to the
national culture helps in
product branding
Pearson Correlation .573** .657** .681** 1
Sig. (2-tailed) .000 .000 .000
N 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).

66DISSERTATION
The highest p-value of the analysis has come to .707 which shows that the test shows a
positive correlation between the factors. The nature of the bond between the factors is somewhat
strong, as the value is more than 0.7. Thus it can be stated that the brands need to develop their
norms according to the culture that is present in the market so that it can help in increasing the
volume of sales thus increasing its level of profit. The lowest p-value for the test has come
to .519, which shows that the analysis has a positive correlation but the value is significantly
weaker when compared to the other factors present taken up for the variable. Thus it can be
stated that the brands the business norms of the brands needs to be developed on the basis of
national culture. If the brands start to follow the rules that are present in the national culture, then
it would create a problem in devising the strategies and the cost of executing it will also increase.
Since the country is religion-centred, it would create a problem for the brands to follow the rules
laid in the business norms in an individual manner. This would affect the level of sales for the
company as well due to the decrease in the level of profits.
Branding
Correlations
Target
audience
affects
product
branding
Quality of
product has
an impact
while
branding
any product
Marketing is
crucial in
branding
product
Being the
first one
provides
added
advantage
in product
branding
Communication
plays a key role
in successful
branding of any
products
Target audience
affects product
branding
Pearson
Correlation
1 .604** .501** .634** .554**
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
Quality of product has
an impact while
Pearson
Correlation
.604** 1 .549** .614** .745**

67DISSERTATION
branding any product Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
Marketing is crucial in
branding product
Pearson
Correlation
.501** .549** 1 .825** .592**
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
Being the first one
provides added
advantage in product
branding
Pearson
Correlation
.634** .614** .825** 1 .585**
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
Communication plays
a key role in
successful branding
of any products
Pearson
Correlation
.554** .745** .592** .585** 1
Sig. (2-tailed) .000 .000 .000 .000
N 50 50 50 50 50
**. Correlation is significant at the 0.01 level (2-tailed).
The highest p-value of the analysis has come to .825, which indicates that the value of the
test has a positive correlation. The strength between the factors is also strong as the value is
greater than 0.7. Thus it can be stated that the brands need to market their products in a proper
manner so that they can gain a competitive advantage in the market. It will result in attracting
more number of customers in the market towards the brand, as the level of awareness can be
increased among the customers. On the other hand, it can be seen that the lowest p-value for the
test has come to .501, which indicates that the result shows a positive correlation but the
relationship between the factor is weak in comparison to the other factors taken up for the
variable. Thus it can be stated that the brands need to focus on developing appropriate marketing
strategies so that it can appeal to its target customers. This will allow the brands in increasing its
level of sales to a great extent. The marketing strategies adopted by the brands need to be strong
enough within the Nepal market so that they can gain a competitive advantage against the rivals
that are present.

68DISSERTATION
4.2.2 Regression analysis
This form of analysis is conducted so that it can help in finding out the association
between the dependent and the independent variables. The null hypothesis is rejected and the
alternate hypothesis gets accepted when the value is less than 0.05. If the value is greater than
0.05, the alternate hypothesis is rejected and the null hypothesis gets accepted for the research
study.
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .915a .838 .815 .53712
a. Predictors: (Constant), Business_norms, Social_systems,
Customs_taboos, Religious_Belief, Language, Values
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 64.095 6 10.682 37.028 .000b
Residual 12.405 43 .288
Total 76.500 49
a. Dependent Variable: Branding
b. Predictors: (Constant), Business_norms, Social_systems, Customs_taboos, Religious_Belief,
Language, Values
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
95.0% Confidence Interval
for B
B Std. Error Beta
Lower
Bound
Upper
Bound
1 (Constant) -.304 .191 -1.587 .120 -.689 .082
Religious_Belief .411 .146 .360 2.813 .007 .116 .706
Social_systems .409 .177 .347 2.310 .026 .052 .766
Language .197 .153 .178 1.286 .205 -.112 .506
Customs_taboo
s
-.083 .113 -.078 -.731 .469 -.311 .145
Values .193 .171 .168 1.129 .265 -.152 .537

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Business_norms -.017 .166 -.016 -.105 .917 -.352 .317
a. Dependent Variable: Branding
From the ‘Model Summary’ table, it can be seen that the value of R2 and adjusted R2 has
come to be .838 and .815 respectively. This shows that the analysis has been conducted in a
proper manner and the ‘goodness of fit’ stands true in this case. The ANOVA table shows that
the significant value is .000, which shows that the value is less than 0.05. Thus it can be stated
that the null hypothesis has been rejected and the alternate hypothesis can be taken in to
consideration for this particular research.
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .848a .719 .713 .689
a. Predictors: (Constant), Branding
ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 58.330 1 58.330 122.853 .000b
Residual 22.790 48 .475
Total 81.120 49
a. Dependent Variable: National culture plays a crucial role while branding any product
b. Predictors: (Constant), Branding
Coefficientsa
Model
Unstandardized
Coefficients
Standardized
Coefficients
t Sig.
95.0% Confidence Interval
for B
B Std. Error Beta Lower Bound Upper Bound
1 (Constant) .406 .192 2.116 .040 .020 .792
Branding .873 .079 .848 11.084 .000 .715 1.032
a. Dependent Variable: National culture plays a crucial role while branding any product
The model summary shows that the value of R2 and adjusted R2 are .719 and .713
respectively. This shows that the difference is significantly less between the values and that the

70DISSERTATION
‘goodness of fit’ model is upheld in this case. The ANOVA table shows that the significant value
has come to .000, which states that the null hypothesis has been rejected and the alternate
hypothesis has been accepted in this case as well.
4.3 Summary
Thus it can be seen from the analysis that the correlation analysis has shown that there is
a strong relationship between the national cultures that is present in the Nepal market with
respect to the product branding. The branding has to be done by taking in to consideration the
factors that has been mentioned so that it can help the brands to be established in the market in a
successful manner. The regression analysis has shown that the alternate hypothesis has been
accepted, which shows that there is a significant impact of national culture on product branding
in the Nepal market.

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Chapter 5: Discussions
The study successfully discussed the value of national culture in building and co-
developing a brand in a target market. A struggle is seen to exist for any brand due to the rise of
various brands at the global platform. Thus, each brand comes up with innovative approaches
and ideas for the target audience and country that helps in ensuring productivity increment. The
success and failure of any brand is largely influenced by their capability of understanding the
national culture of the country. Understanding and respecting the national culture of a country
provides an opportunity for the brands to establish an emotional connection with the customers
in the target country. It is necessary for the brands to understand the culture, choice and
preference of the selected country in order to ensure successful branding.
Success in any market is attainable when brands adopt the global culture followed by
tailoring the offerings made by them according to the culture of particular region, location or
area. The research has taken Nepal as the country whose culture plays a important part while
branding any product in the market. Through this study, the significance and incorporation of
national culture is visualized. The study also articulated how adapting the national culture of
Nepal ensured successful branding of any product in the country by gaining trust of the
customers as well as establishing a positive connection with them.
The results obtained from the regression analysis highlights that national culture is
important while branding any product in Nepal. This result obtained can be supported by the
information provided in the literature review section. In the literature review Chiambaretto,
Gurău and Le Roy (2016) mentions that considering national culture while branding shows
respect for the culture of the target audience and market. As a result, this provides an opportunity

72DISSERTATION
for the brands to gain develop trust for the customers as well as establish an emotional
connection between the brands and the customers of the country. This facilitates a positive
relationship and helps in manifesting customer satisfaction leading to customer loyalty.
However, opinion presented by Wheeler (2017) begs to differ because it is mentioned that
considering the culture while branding increases the brand value. This is because the customers
feel that the brand relates, understands and respects the origin and idea of their national culture
and inculcate it while while developing and launching the products. As a result, brand
recognition is influenced thereby, ensuring brand success.
The results obtained in the regression analysis highlights significant value that confirms
national culture is important in successful branding. Ranabhat et al. (2015) mentions that the
Nepalese population is extremely rigid and particular about their culture thereby, making them
extremely particular about their heritage and belief. As a result, the brands are able to gain
competitive advantage by establishing an emotional connection with the target audiences. This is
supported by Marcoz et al. (2016) in the literature review section that mentions that considering
culture while branding gives competitive edge to the business organizations, as the customers are
able to relate with the brands efficiently and effectively. As a struggle is seen to exist for any
brand due to the rise of various brands at the global platform gaining an upper hand from the
others present in the business environment signifies successful branding.
The success and failure of any brand is largely influenced by their capability of
understanding the national culture of the country. This is supported by Czinkota, Kaufmann and
Basile (2014) that mentions that considering the culture of a nation or a country highlights how a
brand acts or thinks. As a result, understanding the national culture gives an idea to the brands of
what might work or might not work for a particular culture. Additionally, considering the local

73DISSERTATION
culture offers better brand penetration, as this highlights the beliefs and values of the national
culture more effectively and develops product and marketing strategies accordingly.
Rejecting the null hypothesis and accepting the alternate hypothesis suggests that national
culture and successful branding of any product is related positively. Respecting the values and
beliefs of a country in terms of their culture ensures successful branding of any product and
similar is the case of Nepal. Respecting and trusting the national culture of Nepal ensures
successful branding. The brands have to emphasize more in analyzing and understanding the
cultural aspects of Nepal that would allow putting less effort on brand equity, differentiation and
positioning.
Though the factors affecting national culture are considered in this study, results obtained
do not signify strong association between the factors and the national culture. This suggests that
a single factor does not affect the national culture of Nepal but if combined, all the factors are
seen to have a significant impact on the national culture. As a result, it is important for the brands
to identify, understand and analyze the characteristics of national culture while branding any
product in a country including Nepal. Thus, the above discussion confirms that national culture is
important while branding any product in Nepal successfully.

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Chapter 6: Conclusion and recommendations
6.0 Conclusion
Thus, from the above chapters, it can be concluded that national culture is important
while branding any product in any country and Nepal is not an exceptional. The information
provided in the previous chapters suggest that the national culture acts as an identity of the
population of a country, as this helps in understanding their demands, needs, requirements and
beliefs that influences their attracting towards a particular brand. Additionally, understanding
and considering the national culture provides an opportunity for the brand to relate better with
the population of the country and establish a closer bond with them thereby, determining
successful branding.
The macro-environment analysis of Nepal highlights that it is a developing country with
rising economy and rich in cultural beliefs. For Nepal, culture is the crucial aspect and the people
are very sensitive when it comes to their culture. As a result, successful branding in Nepal is only
possible when their national culture is kept intact and respected. The main gap identified while
branding in Nepal is that its different and unique national culture from the rest of the western
countries due to which the brands have to develop separate strategies while developing,
launching and branding any product in the country. The potential challenges that brands face due
to the national culture of the country are religious beliefs, orthodox mind-set and minimized
recognition of the global brands. As a result, the brands have to work hard to make them noticed
in the eye of the population and ensure successful branding.
Upon identifying the challenges in terms of the national culture while branding any
product in Nepal, suitable ways needs to be developed that will help in overcoming the hardships

75DISSERTATION
so that successful branding is achieved thereby, justifying the significance of national culture
while branding any product in Nepal.
6.1 Linking with objectives
Objective 1: To understand the concept of national culture and branding
Objective 1 is linked with section 2.2 and section 2.4 of the literature review. These
sections define and describe the concept of national culture and branding by considering
definitions from past researches and analyzing them critically. This helps in developing in-depth
understanding about both independent and dependent variables that forms the basis of the
selected topic. On the other hand, section B and section C in the data analysis section consists of
survey questions developed by taking into account the factors that determines successful
branding and influences national culture that helps in understanding the impact of national
culture in branding.
Objective 2: To analyze the importance of national culture while branding any product in
Nepal
Objective 2 is linked with section 2.6, 2.7 and 2.15 in the literature review section. These
sections focus on elements of successful branding and the benefits associated with while
branding any product in a country as well as specifically in Nepal by taking into account the
national culture of the place. On the other hand, section B of the survey questionnaire highlights
different factors that affects national culture and further questions are developed for determining
whether national culture has an impact while branding any product or not in a country as well as
in Nepal.

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Objective 3: To assess the relationship between national culture and branding of any
product in Nepal
Objective 3 is linked with section 2.13, 2.14, 2.8, 2.15 and 2.16 in the literature review
section. These sections assesses the relationship between national and branding by critically
analyzing the impact of national culture while branding any product along with studying the
potential challenges associated with branding. The information presented in the section focuses
on the issues that the business organizations face in terms of culture while branding a product in
any country thereby, analyzing the positives as well as negatives. On the other hand, section C of
the survey questionnaire formulates questions related to branding that provides an opportunity of
analyzing the factors affecting branding in terms of national culture.
Objective 4: To provide suitable recommendations for ensuring appropriate national
culture while branding any branding any product
Objective 4 is linked with section 2.9, 2.12 and 2.17 in the literature review section.
These sections suggest probable ways of mitigating challenges associated with branding as well
as methods for overcoming cultural issues while branding any product in Nepal. Additionally,
section 2.10 of the literature review section sheds light on the national culture of Nepal that helps
in understanding the impact it has on the entire population of the country while branding any
product. On the other hand, section B, C and D of the survey questionnaire sheds light on the
potential issues that is encountered while branding any product in Nepal by taking into account
their national culture. The probable recommendations of mitigating cultural issues while
branding in Nepal are suggested based on the issues identified in the data analysis section after
gathering survey responses.

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6.2 Recommendations
According to the issues identified in terms national culture while branding, the suitable
recommendations for mitigating them are suggested below.
Considering the religious belief
The religious belief of the individuals has an impact on the brands they select and use.
From the information presented in the previous sections it can be said that Nepal is a fairly
religious and cultural country where the population keeps their culture first. The people of Nepal
do not select or prefer brand that questions or compromises their culture. Thus, one of the best
ways of mitigating branding issues in Nepal related to national culture is by considering the
religious belief of the population that highlights national culture. As a result, the brands will be
able to connect better with the population thereby, ensuring successful branding from cultural
aspect.
Price
The national culture of a country also highlights the economy of the country to a certain
extent. The economy of the country determines the buying or purchasing capacity of the
population. Therefore, the price needs to be considered while branding any product in a country.
Considering the present economic condition of Nepal, it can be said that it is a developing
country with moderate economy that suggests that the country prefers brands that offers
reasonable price. Therefore, the pricing strategy needs to be taken into account in order to
mitigate branding issues in respect to the national culture.
Packaging

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Packaging is the first thing that helps in attracting people followed by influencing their
decision of purchasing a product. According to the information presented in the above-section, it
can be inferred that Nepal is sensitive when it comes to their culture and beliefs. Thus, the brands
have to consider the cultural aspects of Nepal while packaging its product. The package of the
product should not contain any misleading and disturbing contents that disrespect the national
culture of Nepal because this would hurt the sentiments of the population. As a result, the
population will develop secondary thoughts about the brand thereby, creating branding issues.
Therefore, considering the national culture while packaging is suggested because this will ensure
respect towards Nepalese culture while product branding in Nepal.
Considering the local cultures
The local cultures of a country comprise the national culture that highlights the mind set
and requirements of the population. As a result, taking into account the local culture is suggested
because this helps in taking care of the minute details of the population while branding thereby,
ensuring success. This will ensure greater recognition and success for the brands, as this will be
successful in fulfilling the needs and requirements of the cultural aspect of the brand.
Being true to the origin of the brand
The brand cannot lose their identity in order to consider the national culture of a country
it chooses to brand its product. Brand identity is an integral part of the brand that determines the
success and needs to be kept intact while product branding. Thus, it is necessary for the brands to
keep their identity intact and consider the national culture simultaneously for successful branding
in Nepal.

79DISSERTATION
6.3 Future scope of the study
The present study has been focused on 28 ale people aged 18-29 years with a minimum
educational qualification of Master/Doctorate who has been dealing with branding products for
approximately 3-6 years. As a result, it can be inferred that the study has been conducted on a
group of people those are fairly young and highly educated and has been successful in sharing
fair bit of idea regarding branding of products in Nepal. In the future, study can be conducted by
considering a different gender population such as female in Nepal market belonging to a
different age group, educational qualification and little or more experience of being associated
with branding of products. This will help in knowing the impact of national culture on branding
of products in Nepal from different perspectives.

80DISSERTATION
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Appendix 1
Survey questionnaire
Importance of National Culture While Branding Any Products in Nepal
Section A: General Information (Please choose the most convenient answer)
G0
1
Gender ☐ Male ☐ Female
G0
2
Age group (years) ☐ 18 -29 ☐30-39 ☐40-49 ☐50+
G0
3
Education
a. Up to High School
b. Diploma
c. Bachelor Degree
d. Master/Doctorate
G0
4
Years dealing in branding products ☐<3 years ☐3-6 years ☐7+ years

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SECTION B: Importance of national culture
Religious belief
RB1 Development of beliefs help in product branding SD D N A SA
RB2
Brands need to have a clear understanding regarding the existing
religious beliefs SD D N A SA
RB3
Holidays and festivals needs to be identified while branding any
product SD D N A SA
RB4
Consumption habits present in national culture affects product
branding SD D N A SA

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Social systems
SS1
The economic standard needs to be considered while product
branding SD D N A SA
SS2 Brands need to consider the demographic factors in the country SD D N A SA
SS3
While branding products, existing cultural habits needs to be
considered SD D N A SA
SS4
Customs and traditions of the national culture needs to be
considered while branding any product SD D N A SA
Language
L1 Brands needs to consider the national culture while branding SD D N A SA
L2
Brands needs to consider the local language while branding any
product SD D N A SA
L3 Using national language allows better branding of product SD D N A SA
L4
Using local or native cultural language allows better branding of
product SD D N A SA

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Customs and taboos
CT1
National customs and taboos needs to be considered while
product branding SD D N A SA
CT2
Different viewpoints regarding national taboos and customs
creates issues while product branding SD D N A SA
CT3
Considering national customs and taboos while branding is cost
effective SD D N A SA
CT4
Considering national customs and taboos while product branding
gains competitive advantage SD D N A SA

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Values
V1
National cultural values plays a significant role while product
branding SD D N A SA
V2
Individual values and national values both needs to be
considered while product branding SD D N A SA
V3
Family values needs to be taken into account while product
branding SD D N A SA
V4
Considering both national values and local values is difficult
while product branding SD D N A SA

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SECTION C: Branding
Business norms
BN1
Brands should develop business norms according to the national
culture SD D N A SA
BN2
The brands should follow the rules that forms the national
culture while branding any product SD D N A SA
BN3
Cultural norms comprising the national culture needs tie b
followed while branding any product SD D N A SA
BN4
Considering business norms according to the national culture
helps in product branding SD D N A SA

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SECTION D: Impact of national culture while branding any product in Nepal
Branding
B1 Target audience affects product branding SD D N A SA
B2 Quality of product has an impact while branding any product SD D N A SA
B3 Marketing is crucial in branding product SD D N A SA
B4
Being the first one provides added advantage in product
branding SD D N A SA
B5
Communication plays a key role in successful branding of any
products SD D N A SA
National culture and branding
National culture plays a crucial role while branding any product SD D N A SA

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