Ace Institute of Management BBA Project: Indian vs Nepali Products

This BBA project, submitted to Ace Institute of Management, Pokhara University, examines Nepali customer preferences for Indian and Nepali products. The research explores factors such as price, quality, availability, and design, to understand why Nepali products may struggle in the market. The project includes an introduction, literature review, methodology, data analysis, findings, and conclusion. The study utilizes both primary and secondary data, employing surveys and statistical analysis to assess consumer behavior and preferences. The findings highlight consumer attitudes towards Nepali and Indian products, exploring influences on purchasing decisions, including factors like patriotism, brand reputation, and product quality. The project aims to identify key drivers behind consumer choices and offer implications for the development of Nepali products. The research involves the collection and analysis of data from a diverse group of respondents to understand the current market dynamics and consumer behavior related to the preference for Indian and Nepali products.

NEPALI CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS
Shristi Maskey
Exam Roll No.: 15030259
P.U. Registration No.: 2014-2-03-1620
A project work
Submitted to
Ace Institute of Management
Pokhara University
In partial fulfillment of the requirements for the degree of
Bachelors of Business Administration (BBA)
Pokhara University
Kathmandu, Nepal
November, 2017

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS i
Declaration
I hereby declare that the project work report entitled “Nepali Customer’s Preference for
Indian and Nepali Products” submitted for the BBA is my original work and the Project
Work Report has not formed the basis for the award of any degree, diploma, or other similar
titles.
Signature:
____________________
Name: Shristi Maskey
BBA (Batch): Fall 2014
PU Exam Roll No.: 1530259
Ace Institute of Management

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS ii
BONAFIDE CERTIFICATE
This is to certify that the project report titled
“Nepali Customer’s Preference for Indian and Nepali Products”
is the bonafide work of
Shristi Maskey
who carried out the summer project proposal work under my supervision. This report is
forwarded for examination
…….……………….
Signature
Amit Koirala
Supervisor
…………………….
Signature
Ramesh Chauhan
Program Director
Name of the external Examiner:
Date:

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS iii

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS iii
Acknowledgement
I would like to thank Mrs. Sharmila Maharjan for giving us this wonderful opportunity to
work on this project as this project helped us to know why preference over Indian products are
increasing. I would also like to thank Pokhara University for including this as a subject because
this has helped me get an in-depth knowledge about the topic.
I would also like to thank Ace Institute of Management for giving us the support and
resources which were all required to help us complete this project work. I’d also like to take this
opportunity to thank not just the institution but also the teachers that gave us their valuable time
and support to help us with the project.
I am extremely grateful to all the candidates who were kind enough to allow me to
interview them and collect the data. I would also like to take this opportunity to thank each and
every person who has been directly or indirectly involved with this project and has helped me
complete this report. I would personally take the opportunity to thank my friends and family
who’ve helped and guided me a lot in the completion of this project work.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS iv
Executive Summary
This research study is conducted with an objective to understand the customer’s
preference between Nepali and Indian products. For this purpose, a research was conducted for
everyone ranging from students to businessman. It is focused towards everyone so as to know
about the preference of people between those two products.
Consumer’s preference for Indian and Nepali product widely differs on the basis of
different factors such as price, quality, availability and design. Thus, the study reveals that why
Nepali products could not stand in national and international market.
The first part of the research deals with the introduction section which highlights the
general description of the study. It also includes statement of the problem related with the study
along with its objectives.
In the second part of the study, reviews of different writings and articles relevant to the
study are explored and the dependent and independent variables are identified. The third part of
the study deals with the research methodology used for carrying out the research. The type of
research, nature and source of data collection, questionnaire design, sampling plan, sampling
procedure, sampling size, methods and techniques of data analysis are described in this section.
The fourth part of this study deals with analysis of the collected data. Descriptive,
frequencies as well as inferential analysis of the obtained data has been done. The final part of
this study includes the summary of the findings and the conclusions that have come from the
research itself.

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Table of Figures
Figure 1 Bar Diagram representing distribution of respondents by Age.......................................18
Figure 2 Pie Chart of the distribution of Respondents by Gender.................................................19
Figure 3 Bar Diagram of the distribution of Respondents by Ethnicity........................................20
Figure 4 Bar Diagram of the distribution of Respondents by Religion.........................................20
Figure 5 Pie Diagram of Distribution of Respondents by Education............................................21
Figure 6 Pie Chart showing distribution of respondents by location.............................................22
Figure 7 Bar Diagram showing respondent’s family size.............................................................23
Figure 8 Pie chart showing distribution of respondents involved in household goods shopping..24
Figure 9 Bar Diagram showing stores preferred by respondents..................................................24
Figure 10 Bar Diagram showing respondent’s preferred product by its origin.............................25
Figure 11 Bar Diagram showing rating of Nepali product compared to Indian products.............26
Figure 12 Bar Diagram showing Indian products preferred by the respondents...........................27
Figure 13 Bar Diagram showing level of agreement to the statement “Buying foreign made
products is un-patriotic, therefore I don't buy them”.....................................................................28
Figure 14 Pie Chart showing the countries’ origin effecting respondents’ decision when they are
shopping.........................................................................................................................................29
Figure 15 Bar Diagram showing level of agreement to the statement "I buy Indian products if
there is no domestic alternative"....................................................................................................30
Figure 16 Pie Chart showing respondent preferring Indian Products than locally made ones......31
Figure 17 Bar Diagram showing statistics of respondent purchasing goods according to the
current trends.................................................................................................................................32

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Figure 18 Pie Chart showing whether the buying behavior is influenced by their friends or not. 33
Figure 19 Bar Diagram representing buying behavior influenced by family................................34
Figure 20 Pie Chart representing distribution of respondents according to the behavior influenced
by their ethnic background............................................................................................................35
Figure 21 Bar Diagram representing response to buy a product because of its good reputation. .36
Figure 22 Pie chart showing response about forming attachment towards product......................37
Figure 23 Bar Diagram representing response for the statement "Nepali products quality is very
low compared it Indian product”...................................................................................................38
Figure 24 Pie Chart showing response on Nepali product being cheap and purchased in terms of
economic benefit............................................................................................................................38
Figure 25 Bar Diagram representing response in terms of Nepali products’ packaging...............39
Figure 26 Pie Chart representing respondents response to "You consider Nepali product as
inferior goods"...............................................................................................................................40
Figure 27 Bar Diagram representing response for Nepali product having same variety as Indian
product...........................................................................................................................................41

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS vii
Table of Contents
Declaration......................................................................................................................................i
BONAFIDE CERTIFICATE.......................................................................................................ii
Acknowledgement........................................................................................................................iii
Executive Summary......................................................................................................................iv
Table of Figures.............................................................................................................................v
Chapter I.........................................................................................................................................1
Introduction....................................................................................................................................1
1.1. Setting the scene..............................................................................................................1
1.2. Problem Statement..........................................................................................................3
1.3. Purpose of Study.............................................................................................................4
1.4. Research Questions.........................................................................................................5
1.5. Significance of the Study................................................................................................5
1.6. Delimitation of the Study................................................................................................5
Chapter II.......................................................................................................................................6
Literature Review..........................................................................................................................6
2.1. Introduction.....................................................................................................................6
2.2. International context.......................................................................................................6
2.3. National context...............................................................................................................7

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS viii
2.4. Theoretical perspective...................................................................................................9
2.5. Conceptual framework.................................................................................................10
2.6. Filling the gap................................................................................................................12
Chapter III...................................................................................................................................13
Methodology.................................................................................................................................13
3.1. Research Design............................................................................................................13
3.2. Study area......................................................................................................................13
3.3. Nature and Sources of Data.........................................................................................14
3.4. Population of Study.......................................................................................................14
3.5. Sampling Frame............................................................................................................15
3.6. Sampling Procedures....................................................................................................15
3.7. Types of Variables.........................................................................................................15
3.8. Data Tool and Collection..............................................................................................15
3.9. Validity/ Reliability.......................................................................................................16
3.10. Ethical Consideration................................................................................................17
Chapter IV....................................................................................................................................18
Data Analysis and Interpretation...............................................................................................18
Demographics and Likert Scale with Frequency and Charts.............................................18
Chapter V.....................................................................................................................................41

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Findings and Discussion..............................................................................................................41
5.1. Findings of the study........................................................................................................41
5.2. Discussion of the findings.............................................................................................42
Chapter VI Conclusion and Implication...................................................................................44
6.1. Conclusion.........................................................................................................................44
6.2. Implication.........................................................................................................................45
Annex............................................................................................................................................51

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Chapter I
Introduction
1.1. Setting the scene
We own a family business. My father along with his brothers opened two grocery store
called “Maskey and Brothers” one wholesale and another retail around 35 years back. I have
grown helping my father in the wholesale store. We have goods of different kinds and from
different brands such as Dabur, Pepsodent, Lux, Nebico, Khajuri, etc.
Here, I wanted to go remember the days I spent in our shop serving the customers. From,
my experience there is customers with different tastes and preferences. Customers have
dominated the local goods from brands such as Nebico, Hulas, Khajuri, Cook with Indian Brands
such as Britannia, Dabur, Saffola, etc.
The above scenario helped me to think about the reasons to choose imported goods as
daily purchase rather than the local brands. In Nepal most people rely on such goods even if
there is availability of local goods. Most of the local goods are used as a substitute while
imported goods are on shortage. We depend on the goods specially imported from our
neighboring country India and China. Imports are foreign goods and services bought by residents
of a country, (Amadeo, 2017). People living in a country and consumes the goods from foreign
country, this process is called Import. This function has been involved since ages.
The trade relationship between Nepal and India has faced various ups and downs.
Previously in 23rd September, 2015 Nepal faced a blockade from India. Nepal faced acute
shortage of fuel, cooking gas, medicines and other supplies because of a two-month long
blockade of the main border crossings with India by people demanding greater representation in

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 2
the Himalayan nation’s new constitution, (Pokharel, 2015). During the blockade as a vendor we
were not able to get hands on Indian products. People panicked and purchased such goods at
high rate and kept them as inventory for future. At this time Nepali products was used as a
substitute for the Indian products as it was relatively cheaper and was forced to compromise with
it.
Nepal’s foreign trade continues to be intense with India, with which it has had a bilateral
preferential trade agreement since 1950. Trade dependence on India has augmented over time,
and, more distressingly, so has the merchandise trade deficit, which is being largely financed by
remittances.
Nepal has been also facing trade deficit. Trade deficit is a situation where the country’s
import is much higher than the country’s export which results to outflow of excessive domestic
currency to foreign market. Trade deficit of the Nepal reached 35 percent which is Rs 746.18
billion in the first 10 months of the current fiscal year, (Neupane, 2017). The country has
imported goods worth Rs 13.1 against export of one rupee in the first nine months of this fiscal
(mid-July to mid-April). In the corresponding period of last fiscal, the country imported goods
worth Rs 10.4 against export of one rupee, according to Trade and Export Promotion Centre
(TEPC), (The Himalayan Times, 2017).
Consumer buying behavior is affected by many socio-cultural factors like social class,
demographics, personality, and beliefs etc. However besides these, the product itself also makes
their decision for them because of the message it transmits, the visual impact it makes, the
significant colors and logo of the brand, the brand image and awareness, and the price. Price is a
particularly important attribute association because consumers often have strong beliefs about

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 3
the price and value of the brand and may organize their product category knowledge in terms of
the price tiers of different brands, (Hawkins, Best, & Coney, 1995).
Thus, I feel the whole idea about relying upon India for daily goods is troublesome. We
should be able to enhance locally produced goods for the country’s economic development
intensification. From this research, I was interested to see the reasons behind our Nepali
products are lacking behind. I was also interested to learn what consumers actually seek in a
product and about its attributes. In this research my focus was to see idea and views of
consumer who choose Indian products rather than Nepali product.
1.2. Problem Statement
A problem statement is a brief description of the issues that need to be addressed by a
problem solving team and should be presented to them (or created by them) before they try to
solve a problem.
Most of the consumer chooses Nepali products as a second option. They prefer to
consume Indian products than they consume Nepali products. Many consumers have believed
that the Nepali products in terms of quality and other aesthetics are not favorable.
In my experience most of consumers try to get a better product in Indian brands. He or
she does not think about using local brands which could help the nation to develop economically.
However, every manufacturer in Nepal cannot achieve most benefit from producing goods which
demotivates new manufacturing start ups.
Nevertheless, import has weakened Nepal by increasing trade deficit as export continued
to pitch and imports remained capricious. Although the growth rate of exports out placed that of
imports, trade deficit widened mainly due to relative larger volume of imports, (Khatiwada &

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 4
S.K.Sharma, 2002). However, being one of the most important factors for the development of
nation as whole trade deficit needs to be reduced.
The fact that Nepal share an open border of 1876 square kilometer with India and
Nepalese currency is pegged with Indian currency, the price determination in Nepal is assumed
to be influenced by prices of the commodities in India.
In a closed economy, it is however, as pronounced by classical dichotomy and supported
by the monetarist school of thought, that inflation is solely a monetary phenomenon determined
by the total amount of currency in circulation, (Mankiw, 2007). Since Nepal being importing
products from India, Nepalese inflation rate isn’t solely homemade but it also borrows it from
India.
The study identifies the consumer’s expectation over a product which will help future
manufactures to mould their products. This will help in sinking the trade deficit as well as
rationalize the inflation of our country.
This is my statement of problem. So, I wanted to see different factors which have been
restricting the Nepali products to stand in the eyes of Nepalese people.
1.3. Purpose of Study
The main purpose of the study was to find out the reasons our Nepali products are lacking
behind in the both national and international market. This research tries to find the dynamics
which affect the consumers to choose imported goods. This research will enhance our knowledge
about the trade history of Nepal. Not much research has been done related to customer’s
preference over Indian products. So this study is conducted to contribute in the related field of
study so that it will provide guideline for future study.

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Also the main purpose of this study is for partial fulfillment of the requirements for the
degree of Bachelors of Business Administration (BBA), Pokhara University.
1.4. Research Questions
The following research questions will be addressed in this study:
a. What causes Nepali people to prefer Indian product over Nepali product?
b. Why we Nepalese rely on imported goods rather than Nepali goods?
c. What product attributes does consumer sees lacking in Nepali product?
d. Why Nepali products are not able to stand out in international market?
1.5. Significance of the Study
The study is going to be significant for the people who want to start up their own local
manufac turing company. This research will provide the readers with information regarding the
consumers taste and preference about certain product. This study was to be conducted because
the manufacture and the consumer should know how to enhance the Nepali products national as
well as in international market.
1.6. Delimitation of the Study
In order to conduct the research in this topic, I choose the area within Kathmandu valley.
Since Kathmandu valley consist of diversified population, it was be easy to get respondents for
the research. But beyond Kathmandu Valley the research cannot be generalized. Hence, my
study was restricted within Kathmandu Valley due to lack of time and budget.
Also I will be comparing the product attributes of Nepali and Indian product only. As
India is one of the top countries with whom Nepal is associated with trading since ages.

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Chapter II
Literature Review
2.1. Introduction
This chapter will give a review to analyze critical segment related to the research problem
presented in the previous chapter. I have consulted different publications; research articles,
journals, books related to preference of the consumer over goods and services which gave me an
insight to review critically and find out what was studied in previous literatures. Literature
review gave me insights to develop a concept, draw framework and to generate ideas for my
research design.
2.2. International context
In the world every country is involved in export and import with other country. In Austria
imports show a strong preference of German goods with a volume share of 44.5%. Italy stands
with 7.1%, followed by Switzerland at 5.2% and Netherlands at 4.1% (Economywatch context,
2010). Austria being in top richest country also depends upon imported goods from other
countries especially with Germany.
India had imported electronics goods worth USD 19.77 billion in the recent times, while
the export earnings were USD 3.17 billion, and more than 70percent of electronics appliances
demand is met through imports. Indian electronics and appliances market is estimated to have of
less than market share of 2 percent of the global market, while production share is less than 1
percent. This shows beside daily consuming goods other goods are traded in the world.
Food supply is very essential for every nation. But there are some countries which cannot
grow their own food supply for the citizen due to various regions. Thirteen countries were 100

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percent dependent on imports for their grain supply by 2013, an 18 percent increase from 1961
(Gardner). From this we know that there are various countries that they have been completely
dependent in import for grains. Food supplies are the essential part and when they have to
depend for other countries which can’t be neglected.
Developing African countries are lacking behind in the economic development. The main
reason behind that is they have been tangled in excessive import. African countries should
reduce their excessive dependency on raw material exports and imported consumer goods, as the
only viable way to reduce poverty and social inequality on the continent. (African Development
Bank Group, 2015). From this we know that depending upon excessive import may cause to
poverty.
“The over-dependence on imports, together with rising global food prices, has alleviated
the food security issue in the region,” “In the past, disruptions in food imports, either due to
policy restrictions by exporting countries or natural calamities, have affected the region
significantly.” As a result, all Gulf countries are taking measures to secure and regularize the
food supply. (Rahman, 2013).
2.3. National context
In 2015 Nepal imported $6.61 B, making it the 114th largest importer in the world. During
the last five years the imports of Nepal have increased at an annualized rate of 5.5%, from $5.01
B in 2010 to $6.61 B in 2015. The most recent imports are led by Refined Petroleum which
represent 8.72% of the total imports of Nepal, followed by Silver, which account for 4.33%,
(OEC).
As of 2007, Nepal has signed bi- lateral trade agreements with 17 countries including
India and Bangladesh with whom it has also bi-lateral transit agreements. These countries include:

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Bangladesh (1976), Bulgaria (1980), China (1981), Czech Republic (1982),Egypt (1975),
India, Democratic People's Republic of Korea (1970), Republic of Korea(1971), Mongolia
(1992), Pakistan (1982), Poland (1992), Romania (1984), Sri Lanka(1979), UK (1965), USA
(1947), Russia (1970), and Yugoslavia (1965). All the treaties, except with India, are static and
perpetual in nature based on Most Favored Nation (MFN) treatment, (Prasad, 2007)
The growing and continued mismatch between import and export has resulted in an
alarming level of trade deficit in Nepal. Over the years, export has almost been stagnated, and
the import skyrocketed. Nepal’s import is now 9 times bigger than export. The trade deficit has
widened in 2014/15 on account of the increase in imports and the fall in exports. The trade
deficit widened at a slower pace due to slow down in the import growth caused by devastating
earthquake in the last quarter of the review year. (Ghimire, 2016)
India continued to command a major share in Nepal's foreign trade. With Indian
economy's growth accelerating and manufacturing as well as industrial base enhanced further
and strengthened, India’s share in Nepal’s total merchandise trade in the last fiscal year increased
to 64 percent - in 2003-4, it was 58 percent. China's trading share with Nepal also doubled in the
last 5 years to 12 percent - around one fifth of the trade with India. The share of other countries
continued to decline to 26 percent of Nepal’s total trade last year, with Nepal shifting its long-
running dependency on other countries for the imports of vehicles and machinery, equipment,
among others, to India, (Ghimire, 2016).
The total imports (domestic and abroad) of the Valley are estimated at Rs. 118 billion. Of
the total imports from abroad, the share of Valley is 19 percent. As in the national level, the
Valley also has a huge volume of trade deficit of Rs. 74 billion which stands at 24 percent of the
total economic activities of the Valley and 6 percent of GDP, (Nepal Rastra Bank , 2012).

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 9
2.4. Theoretical perspective
The effects of an increase in a country’s real wage - ceteris paribus – on the volume of its
imports are unambiguous. Since wage costs are part of total production costs, the price of
domestically produced goods will increase relative to the price of imported goods, thereby
increasing domestic demand for foreign produced goods and the volume of imports. This
prediction of open economy macroeconomic models is the cornerstone of almost all applied
trade balance analysis, (Malley & Moutos, 2001).
(Burenstam-Linder, 1961), drew a sharp distinction between trade in primary products
and trade in manufacturing goods. For primary products he disagreed that trade would be
determined on the basis of factor endowments. For quality-differentiated manufacturing goods he
disagreed that factor intensities were similar and that the principal determinant of the pattern of
trade was the level of per-capita income. According to Burenstam-Linder, higher per-capita
income induces consumers to demand not only more units of a given quality, but higher quality
varieties as well.
Nepal is a land-locked country and is a high cost economy that suffers from higher border
prices for imports and exports of goods due to transportation costs. But unlike other landlocked
countries (Switzerland, Austria, etc), Nepal has not got any compensating advantages. For this
reason, Nepal has to depend totally on India for the transfer of goods, and is obliged to trade
from a position of weakness which is the function of geographical, economic and political
reasons, (Luitel, 2009).
(Singh & Khanal, 2010), studied Indo-Nepal trading patterns after 1990. They found that
the rising proportion of exports to and imports from India in Nepal’s total trade has increased its

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 10
dependency on this neighboring country for trade. The paper does not suggest any possible
solutions based on the empirical findings as to how to reduce trade dependency on India.
The cycle starts when a country’s export strength builds; foreign production starts;
foreign production becomes competitive in export markets import competition emerges in the
country’s home market, (Wells, 1968).
Country of manufacture and product quality strongly influences consumer decision
making in globally available product categories. Specifically, compared to imported goods,
consumers appear to prefer domestically manufactured goods and are often willing to pay a
higher price for them. It is usually only when imported goods are of significantly superior quality
that consumers will pay more to obtain them. Finally, in their purchase decisions, consumers
appear not to put much weight on a product’s perceived importance to the home country’s
manufacturing base. (Knight)
2.5. Conceptual framework
Reviewing the literatures, I come to know consumer’s preference over Indian products is
determined by many dynamics. Awareness, quality, availability, packaging, marketing are few
the major dynamics of a person to choose Indian product over Nepali product.
I have presented my conceptual framework in diagrammatic form which is given as
below.

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a. Awareness:
Awareness refers to alertness that a certain product exists in the market. When consumer
is informed about a product he/she gives it a try.
b. Quality
Quality of a product refers to degree of fineness of a product that assures the product
meets the consumer’s expectation.
c. Availability
Availability of a product refers to accessibility of product by consumer anywhere and
anytime. This assures that the product has continuity in the market.
d. Packaging
Packaging of a product refers to the activities of scheming and producing the container or
wrapper for a product. It helps in containment, protection, communication, promotion and
product differentiation. Packaging should be convenient, attractive, communicative, economic
and environmental friendly.
Dependent Variable
Consumer’s
Preference of Indian
and Nepali products
Independent
Variable
Awareness
Quality
Availability
Packaging
Marketing

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e. Marketing
Marketing refers to a process by which individuals and groups get hold of what they need
and want through creating, offering and freely exchanging products and services of value with
others. It plans and executes the conception, pricing, promotion and distribution of ideas of a
product.
2.6. Filling the gap
From my presented literature review content, we can compare the international and
national context about the dependency of imported goods than domestics good. Many
researchers have invested their valuable time to conclude many theories related to import. The
available information gathered from the internet sources and websites helped me to get the idea
of what could possibly be the factors that have been creating a preference for imported goods.
But it is limited only for foreign countries and much research in Nepali context isn’t adequate.
In addition, people who have conducted research in this topic have always focused on
consequences of import and have not focus on the reason why Nepali product lacking behind in
the eyes of Nepalese. Hence, in order to fill the gap I am interested in carrying out this study.

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Chapter III
Methodology
3.1. Research Design
Research design is the blueprint for conducting the study that maximizes control over
factors that could interfere with the validity of the findings. Designing a study helps the
researcher to plan and implement the study in a way that will help the researcher to obtain
intended results, thus increasing the chances of obtaining information that could be associated
with the real situation, (N.Burns & S.K.Grove, 2001).
(Kothari, 2004), says that research design is the arrangement of conditions for collections
and analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure.
My research is based in quantitative method as I will collect the data through
questionnaire surveys. The findings of my study have shown the customers reason for preferring
Indian products rather than Nepali products. I used primary sources and collect my data from
different respondents. With the help of different statistical tool I will be analyzing the collected
data in a quantitative way. My research design will include study area, nature of data, population
of study, sampling techniques, data tool and collection and ways of presentation of the findings.
The reliability and validity of the research instrument are addressed. Ethical considerations
pertaining to the research are also discussed.
3.2. Study area
As I have already mentioned that my study is on the Kathmandu Valley. My aim through
this research was to find the different factors which mould a consumer to choose Indian product

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 14
as daily consuming goods and similarly to find the strength associations of different factors with
the consuming choice. However, choosing between the Indian and Nepali product has always
been tedious job for me. As a citizen I would like my country to reach its height but as a
consumer I prefer better quality and packaging aesthetics. Further, I choose respondent living in
Kathmandu valley for the data collection procedure. Thus, my study area will be three major
cities i.e. Kathmandu, Lalitpur and Bhaktapur.
3.3. Nature and Sources of Data
For this study, I used survey method which includes the selection of number of
representative individuals and the selection of the question which are appropriate for the
informants and tie with the research questions (Baker, 1999). Hence, the nature of my study will
be quantitative and both primary as well as secondary data will be presented in order to analyze
the result in the conclusion.
3.4. Population of Study
(Polit & Hungler, 1999), refer to the population as an aggregate or totality of all the
objects, subjects or members that conform to a set of specifications. I have already mentioned
that my study is based on consumer of the Kathmandu Valley. There are more than 2.5 million
people residing inside the Kathmandu valley. My aim was to find the real reason of the
consumers rather than information provided by secondary sources. My study population was the
consumers who are involved in purchasing grocery items. These consumers will have some sort
of affiliation with the product and its attributes due to which they will be chosen as the
participants for this study. Those consumers were the best source of data if they answer the
contents of my questionnaire to their capabilities. Thus, delimiting me consumer living in the
Kathmandu Valley will be my population of the study.

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3.5. Sampling Frame
I have selected 100 samples from the population of my study and will collect data from
them. The participants were selected from convenient sampling technique. I have selected the
sample size within the Kathmandu valley of Bagmati Zone of Nepal and I have selected this area
because it is much diversified population.
3.6. Sampling Procedures
The process of selecting a part of population to represent the entire population sampling
is called sampling procedure. To find the sample, a simple non probability sampling method was
used. I have used convenient sampling.
3.7. Types of Variables
The variables incorporated for my study consist of dependent and independent variable.
As revealed in my conceptual framework content, the independent variables are availability,
quality, awareness, marketing, and packaging. The dependent variable of my study was
consumer preference.
3.8. Data Tool and Collection
For the collection of data a closed ended questionnaire is used. The nature of my data is
drawn through primary source because I have collected my data’s directly from the consumers
by going to the field and with the help of questionnaire which were distributed to them.
Analysis and presentation of my data is the quantitative form of data that I collected.
These data will be analyzed and since it’s quantitative, various statistical tools will be used and
the result will be interpreted.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 16
The primary data has been collected from the field by me. The data has been collected
from the respondents who are the consumer who have some sort of affiliation with the
purchasing household goods. For the collection of data closed ended questionnaire were used.
The questionnaire also includes five point Likert scale. In the collection of the data, demographic
questions are also included to know the preference for Indian and Nepali products to the different
demographic people and are they gaining the same level of satisfaction in all the demographic
regions.
Furthermore, consent of the respondent has been taken, where the names of the
respondent will not be disclosed. The respondents were assured that the rights of the individuals
would not be violated in any way. They had the freedom to provide or not provide information
for the research at any point of time based on their comfort and flexibility
3.9. Validity/ Reliability
Validity/ Reliability are an essential element in ensuring dependency and quality of the
work completed. (Drost, 2011), says “reliability is the extent to which measurements are
repeatable –when different persons perform the measurements, on different occasions, under
different conditions, with supposedly alternative instruments which measure the same thing”.
This means that reliability is a tool that measures the research consistency.
Validity is found in results. Validity depict whether our result is near to the thing that we
intended to measure. We cannot give answer whether we have achieved or not but it depends
upon the interpretation of the researcher and the context that he or she researched, (S.Gorin,
2007). The interpretation of research result is very crucial. Reliability and validity are
independent of each other. A measurement maybe valid but not reliable, or may be reliable but

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 17
not valid. For ensuring content validity of the instrument, I will share the draft guideline to
facilitator for expert analysis regarding the relevancy of each item. I will note the case study as
reflective writing. To maintain quality I will constantly keep in touch with my facilitator to help
me maintain a proper standard in my work.
3.10. Ethical Consideration
According to (Parahoo, 1997), there are ethical issues at every stage of the research
process and he argues that there are ethical considerations, even regarding whether or not a topic
should be researched. During this research I will respect all the confidentiality and anonymity of
the respondent. Their personal information will not be disclosed. The respondent will have ample
amount of time to complete the questionnaire with comfort and flexibility. I will not violate any
rules that could hamper the participant’s rights. I will not force them to answer the questions and
not use any external influence that may make them answer the questions. Therefore I will create
an informed consent form for all the participants in my study which protects the interviewee’s
rights while collecting data.
I will not manipulate any data, to make the report fair and transparent. Therefore I will
create an informed consent form for all the participants in my study which protects the
interviewee’s rights while collecting data.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 18
Chapter IV
Data Analysis and Interpretation
Demographics and Likert Scale with Frequency and Charts
This is an exploratory research where convenience sampling technique has been used to
collect the samples. A total of 100 samples had been chosen randomly within the Kathmandu
valley who works purchase house hold goods. The survey data was analyzed and interpreted
from the response taken from the consumers using Statistical Package for the Social Sciences
(SPSS) software.
4.1. Distribution by Age
Age group measures the maturity of customers in the market. It is important to
classify the respondents according to their age group because it is one of the demographic factors
which affect the decision while purchasing goods and services.
10-19 20-29 30-39 40 years and above
0
10
20
30
40
50
60
70
Age group
Frequncy
Figure 1 Bar Diagram representing distribution of respondents by Age

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 19
From the above data, it can be stated that out of the total respondents i.e. 100, 8
respondent were aged between 10-19 which is 8% of our total sample size, 58 respondents were
aged between 20-29 which is 58% of the total sample size of the vendors, 15 respondents were
aged between 30-39 which is the 15% of our total sample size and remaining 19 respondents
were aged above 40 years which is the 19% of our total sample size.
4.2. Distribution by Gender
41%
59%
Male
Female
Figure 2 Pie Chart of the distribution of Respondents by Gender
From the above data, it can be stated that out of total respondents i.e. 100, 41 respondents
were Male, which is the 41% of the total respondents and the remaining 59 respondents were
Female, which is the 59% out of the total respondents surveyed.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 20
4.3. Distribution by Ethnicity
Brahmin Chettri Newar Dalit Others
0
5
10
15
20
25
30
35
40
45
Ethnicity
No of Respondents
Figure 3 Bar Diagram of the distribution of Respondents by Ethnicity
The above bar diagram is the representation of the distribution of respondents by
Ethnicity/ Caste where we can clearly see that the bar representing the respondent who are
Newar is the highest than any other bar representing the rest of the ethnicity of the respondents,
while carrying out my survey. Out of total respondents i.e. 100, 41% are Newars, 24% are
Brahmin, 15% are Chettri, 2% are Dalit and rest 18% belongs to other ethnic group.
4.4. Distribution by Religion
Hindu Buddhist Christian Others
0
10
20
30
40
50
60
70
80
90
Religion
No of Respondents
Figure 4 Bar Diagram of the distribution of Respondents by Religion

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 21
From the above data, it can be stated that out of the total respondents i.e. 100., 80
respondents were following Hindu religion which is the 80% of the total respondents, 17
respondents were following Buddhist religion, which is the 17% of the total respondents, 1
respondent was following Christian religion, which is the 1.3% of the total respondents and 2
respondents were following other religion which is 2% of the respondents which were surveyed.
4.5. Distribution by Education
Higher secondary
level
22%
Bachelors
58%
Masters
19%
Research degree
1%
Figure 5 Pie Diagram of Distribution of Respondents by Education

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 22
From the above data, it can be stated that out of the total respondents i.e. 100, 22
respondents cleared Higher Secondary level education which is the 22% of the total respondents,
58 respondents cleared Bachelors level education which is the 58% of the total respondents, 19
respondents cleared Master level education which is the 19% of the total respondents and 1
respondent cleared research degree which is 1% of the respondents which were surveyed.
4.6. Distribution by Location
Kathmandu
69%
Lalitpur
24%
Bhaktapur
7%
Figure 6 Pie Chart showing distribution of respondents by location
From the above data, it can be stated that out of the total respondents i.e. 100, 69
respondents were from Kathmandu which is the 69% of the total respondents, 24 respondents
were from Lalitpur which is the 24% of the total respondents and 7 respondents were from
Bhaktapur which is the 7% of the total respondents which were surveyed.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 23
4.7. Distribution by Family size
2 3 4 More than 4
0
10
20
30
40
50
60
No of Family Members
No of Respondents
Figure 7 Bar Diagram showing respondent’s family size
The above chart shows the respondent’s family size. The respondents who were
surveyed, majority of them had more than 4 family member showing 48 respondents out of 100.
Similarly, 37 respondents had 4 family members, 14 respondents had 3 family members and 1
respondent had 2 family members.
4.8. Do you often go shopping for household goods?
Yes
61%
No
5%
Sometimes
34%
Figure 8 Pie chart showing distribution of respondents involved in household goods
shopping

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 24
According to the above chart, out of total respondents i.e. 100, 61 respondents often go
for shopping household goods which is 61% of the total respondents surveyed. Similarly, 5
respondents are not involved in shopping for household goods which are 5% of total respondents
surveyed and 34 respondents out of 100 sometimes go shopping for household goods which are
34% of total respondent surveyed.
4.9. Where do you purchase the household goods?
Local retail store Wholesale store Departmental
Store Supermarket Online Store
0
20
40
60
80
100
120
YES
NO
No of Respondents
Figure 9 Bar Diagram showing stores preferred by respondents
Above figure shows the stores where 100 of the respondent usually go shopping for
household goods. Where 33 respondents does there shopping from local store, 41 respondents
does there shopping from wholesale store. Similarly, 20 respondents visit supermarket and 1
respondent prefer online market for purchasing household goods.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 25
4.10. Which product do you choose while shopping?
Nepali product Indian product Other foreign product
0
5
10
15
20
25
30
35
40
45
50
Products
No of Respondents
Figure 10 Bar Diagram showing respondent’s preferred product by its origin
The above bar diagram is the representation of the distribution of respondents by
products they preferred according to the origin. We can clearly see that the bar representing the
respondent who prefer Indian product is the highest than any other bar representing the rest of
the products preferred by the respondents, while carrying out my survey. Out of total respondents
i.e. 100, 39% prefer Nepali product, 46% prefer Indian products and 15% prefer other foreign
products.
4.11. How do you rate Nepali products in comparison to Indian product?
Much higher Somewhat Higher Same Somewhat Lower Much lower
0
5
10
15
20
25
30
35
40
45
50
Ratings
No of Respondents
Figure 11 Bar Diagram showing rating of Nepali product compared to Indian products

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 26
From the above diagram, it is stated that out of 100 respondents, 3 respondents rates
Nepali products much higher compared to India products which is 3% of the total respondents.
Similarly 21 respondent rate Nepali products somewhat higher compared to India products which
is 21% of the total respondents. But out of 100 respondents, 23 respondent rate Nepali products
and Indian products same. Also, we can clearly see that the bar representing the respondent who
rate Nepali product somewhat lower than the Indian product is the highest than any other bar
representing the rest of the ratings, while carrying out my survey. Total of 47 respondents agreed
that Nepali products are somewhat lower. Finally, 6 respondents believed that Nepali products
are much lower compared to the Indian products.
4.12. Which of the following products would you prefer buying foreign goods rather than
domestic goods?
Food Clothing Furniture Electronic Devices Medicines
0
20
40
60
80
100
120
23
64
3
71
26
77
36
97
29
74
Yes No
Products
No of Respondents
Figure 12 Bar Diagram showing Indian products preferred by the respondents

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 27
The above diagram shows respondents’ preferring various Indian products. Out of 100
respondents, 23 respondents preferred food products, 64 respondents preferred clothing items, 3
respondents preferred furniture item, 26 respondents preferred medicines and 71 respondents
preferred Electronic devices. According to my survey the majority of the respondents preferred
Electronic Devices that are imported from India.
4.13. Buying foreign made products is un-patriotic, therefore I don't buy them
Strongly
Disagree Disagree Neutral Agree Strongly
Agree
0
5
10
15
20
25
30
35
40
45
No of respondents
Figure 13 Bar Diagram showing level of agreement to the statement “Buying foreign made
products is un-patriotic, therefore I don't buy them”
From the above data, it can be stated that towards the above statement, 41 respondents
Strongly Disagreed, 37 respondents Disagreed, 15 respondents were Neutral, 3 respondents
Agreed and 4 respondents Strongly Disagreed. According to my survey majority of the

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 28
respondents strongly disagreed the statement, “Buying foreign made products is un-patriotic,
therefore I don't buy them”.
4.14. The country of origin of products does not affect my decision when I am shopping.
Strongly Disagree
12%
Disagree
11%
Neutral
22%Agree
41%
Stro
ngly
Agre
e
14%
Figure 14 Pie Chart showing the countries’ origin effecting respondents’ decision when
they are shopping
The above bar diagram shows the number of people who think ‘the country of origin of
products does not affect their decision when they are shopping’. Out of 100 respondents, 12 of
them strongly disagreed to the statement which is 12% of the total sample size, 11 of them
disagreed which is 11% of the total sample size, 22 of them equally supported the statement
which is 22% of the total sample size, 41 of them agreed which is 41% of the total sample size
and 14 of them strongly agreed to the statement which is 14% of the total sample size. From the

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 29
above data we can say that origin of the product doesn’t affect the decision while shopping as
most of the respondents have agreed to the statement.
4.15. I buy Indian products if there is no domestic alternative
Strongly
Disagree Disagree Neutral Agree Strongly Agree
0
10
20
30
40
50
60
No of respondents
Figure 15 Bar Diagram showing level of agreement to the statement "I buy Indian products
if there is no domestic alternative"
The above bar diagram shows the level of agreement that the respondents buy Indian
products only if they do not have domestic alternative.. Out of 100 respondents, 2 of them
strongly disagreed to the statement which is 2% of the total sample size, 11 of them disagreed
which is 11% of the total sample size, 14 of them equally supported the statement which is 14%
of the total sample size, 51 of them agreed which is 51% of the total sample size and 22 of them
strongly agreed to the statement which is 22% of the total sample size. Here we can clearly see

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 30
and state that majority of the respondents agreed to the statement which means that people
purchase the Indian product only if there is no alternative of domestic products.
4.16. I would prefer to buy Indian products rather than locally made ones
Strongly Disagree
9%
Disagree
35%
Neutral
29%
Agree
17%
Strongly Agree
10%
Figure 16 Pie Chart showing respondent preferring Indian Products than locally made
ones
The above pie chart shows the level of agreement and disagreement that they prefer
Indian products rather than locally made products. Out of 100 respondents, 9 of them strongly
disagreed to the statement which is 9% of the total sample size, 35 of them disagreed which is
35% of the total sample size, 29 of them equally supported the statement which is 29% of the
total sample size, 17 of them agreed which is 17% of the total sample size and 10 of them
strongly agreed to the statement which is 10% of the total sample size. Here we can clearly see

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 31
and state that majority of the respondents disagreed to the statement which means that people do
not prefer Indian product than locally made ones.
4.17. I buy products according to the current trends of the time.
Strongly Disagree Disagree Neutral Agree Strongly Agree
4
11
23
39
23
Figure 17 Bar Diagram showing statistics of respondent purchasing goods according to the
current trends
The above bar diagram shows the number of people who purchase the goods according to
the trend or not. Out of 100 respondents, 4 of them strongly disagreed the statement which is 4%
of the total sample size, 11 of them disagreed to the statement which is 11% of the total sample
size, 23 of them equally supported the statement which is 23% of the total sample size, 39 of

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 32
them agreed to the statement which is 39 % of the total sample size and 23 of the strongly agreed
which is 23% of the total sample size. Here it is clear that most of the respondents agreed to the
statement which means people do follow trends while purchasing goods.
4.18. My buying Behavior is influenced by my friends.
Stron
gly
Disag
ree
13%
Disagree
25%
Neutral
35%
Agree
20%
Strongly Agree
7%
Figure 18 Pie Chart showing whether the buying behavior is influenced by their friends or
not
The above pie chart shows the number of respondent agreeing or disagreeing that their
buying behavior is influenced by their friends. Out of 100 respondents, 7 of them strongly
disagreed to the statement which is 7% of the total sample size, 25 of them disagreed which is
25% of the total sample size, 35 of them equally supported the statement which is 35% of the
total sample size, 20 of them agreed which is 20% of the total sample size and 7 of them strongly
agreed to the statement which is 7% of the total sample size. From the above data we can say that

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 33
respondents were quite neutral that their buying behavior is influenced by their family members
as most of the respondents voted neutral to the statement
4.19. My buying behavior is influenced by my family.
Strongly
Disagree Disagree Neutral Agree Strongly Agree
0
5
10
15
20
25
30
35
40
No of respondents
Figure 19 Bar Diagram representing buying behavior influenced by family
The above bar diagram represents the views of the respondents whether their buying
behavior is influenced by their family members or not. Out of 100 respondents, 6 of them
strongly disagreed to the statement which is 6% of the total sample size, 11 of them disagreed
which is 11% of the total sample size, 37 of them equally supported the statement which is 37%
of the total sample size, 37 of them agreed which is 37% of the total sample size and 9 of them

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 34
strongly agreed to the statement which is 9% of the total sample size. From the above data we
can say that people believed that their buying behavior is influenced by the family as most of the
respondents have agreed to the statement.
4.20. My buying behavior is influenced by my ethnic background
Stron
gly
Disag
ree
15%
Disagree
33%
Neutral
29%
Agree
17%
Strongly Agree
6%
Figure 20 Pie Chart representing distribution of respondents according to the behavior
influenced by their ethnic background
The above pie chart represents the views of the respondents whether their buying
behavior is influenced by their ethnic background or not. Out of 100 respondents, 15 of them
strongly disagreed to the statement which is 15% of the total sample size, 33 of them disagreed
which is 33% of the total sample size, 29 of them equally supported the statement which is 29%
of the total sample size, 17 of them agreed which is 17% of the total sample size and 6 of them
strongly agreed to the statement which is 6% of the total sample size. From the above data we

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 35
can say that people did not believed that their buying behavior is influenced by their ethnic
background as most of the respondents have disagreed to the statement.
4.21. I buy a product because of its good reputation.
Strongly
Disagree Disagree Neutral Agree Strongly Agree
0
5
10
15
20
25
30
35
40
45
No of respondents
Figure 21 Bar Diagram representing response to buy a product because of its good
reputation
The above bar diagram represents the views of the respondents to purchase goods
because of its good reputation. Out of 100 respondents, 2 of them strongly disagreed to the
statement which is 2% of the total sample size, 7 of them disagreed which is 7% of the total
sample size, 12 of them equally supported the statement which is 12% of the total sample size,
45 of them agreed which is 45% of the total sample size and 34 of them strongly agreed to the
statement which is 34% of the total sample size. From the above data we can say that people fall
for good reputation while they are buying products as most of the respondents have agreed to the
statement.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 36
4.22. I form attachment towards products.
Strongly Disagree
2%
Disagree
15%
Neutral
32%
Agree
38%
Strongly Agree
13%
Figure 22 Pie chart showing response about forming attachment towards product
The above pie chart represents the views of the respondents about forming attachment
towards a product. Out of 100 respondents, 2 of them strongly disagreed to the statement which
is 2% of the total sample size, 15 of them disagreed which is 15% of the total sample size, 32 of
them equally supported the statement which is 32% of the total sample size, 38 of them agreed
which is 38% of the total sample size and 13 of them strongly agreed to the statement which is
13% of the total sample size. From the above data we can say that people form a attachment
towards a product as most of the respondents have agreed to the statement.
4.23. Nepali products quality is very low compared to Indian products
Strongly
Disagree Disagree Neutral Agree Strongly Agree
0
5
10
15
20
25
30
35
No of respondents
Figure 23 Bar Diagram representing response for the statement "Nepali products quality is
very low compared it Indian product”

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 37
The above bar diagram represents the views of the respondents about Nepali product
being low in terms of quality compared to the Indian product. Out of 100 respondents, 11 of
them strongly disagreed to the statement which is 11% of the total sample size, 27 of them
disagreed which is 27% of the total sample size, 33 of them equally supported the statement
which is 33% of the total sample size, 26 of them agreed which is 26% of the total sample size
and 3 of them strongly agreed to the statement which is 3% of the total sample size.
4.24. Nepali products are cheap and are purchased in terms of economic benefit.
Strongly Disagree
1% Disagree
17%
Neutral
38%
Agree
36%
Strongly Agree
8%
Figure 24 Pie Chart showing response on Nepali product being cheap and purchased in
terms of economic benefit
The above pie chart represents the views of the respondents about Nepali product being
cheap and purchased in terms of economic benefits. Out of 100 respondents, 8 of them strongly

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 38
disagreed to the statement which is 8% of the total sample size, 17 of them disagreed which is
17% of the total sample size, 38 of them were neutral which is 38% of the total sample size, 36
of them agreed which is 36% of the total sample size and 8 of them strongly agreed to the
statement which is 8% of the total sample size.
4.25. Nepali products in terms of packaging stand out in front of foreign product.
Strongly
Disagree Disagree Neutral Agree Strongly Agree
0
5
10
15
20
25
30
35
40
No of respondents
Figure 25 Bar Diagram representing response in terms of Nepali products’ packaging.
The above bar diagram represents the views of the respondents about Nepali products’
packaging being striking compared to foreign product. Out of 100 respondents, 8 of them
strongly disagreed to the statement which is 8% of the total sample size, 34 of them disagreed
which is 34% of the total sample size, 39 of them were neutral which is 39% of the total sample
size, 17 of them agreed which is 17% of the total sample size and 2 of them strongly agreed to

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 39
the statement which is 2% of the total sample size. The above diagram shows that there is some
problem related to the packaging of the Nepali product as compared to the foreign products as
majority of the respondents has either agreed or expressed neutral feeling towards the statement.
4.26. You consider Nepali products as inferior goods.
Stro
ngly
Disa
gree
15%
Disagree
33%
Neutral
25%
Agree
22%
Strongly Agree
5%
Figure 26 Pie Chart representing respondents response to "You consider Nepali product as
inferior goods"
The above pie chart represents the views of the respondents about considering Nepali
product as inferior goods. Out of 100 respondents, 15 of them strongly disagreed to the statement
which is 15% of the total sample size, 33 of them disagreed which is 33% of the total sample
size, 25 of them were neutral which is 25% of the total sample size, 22 of them agreed which is
22% of the total sample size and 5 of them strongly agreed to the statement which is 5% of the
total sample size. The above diagram shows that Nepali products aren’t considered as inferior
goods as majority disagreed to the statement.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 40
4.27. I believe Nepali products have the same variety as in Indian products.
Strongly
Disagree Disagree Neutral Agree Strongly Agree
0
5
10
15
20
25
30
No of respondents
Figure 27 Bar Diagram representing response for Nepali product having same variety as
Indian product
The above bar diagram represents the views of the respondents about Nepali products
having same variety as Indian products. Out of 100 respondents, 14 of them strongly disagreed to
the statement which is 14% of the total sample size, 23 of them disagreed which is 23% of the
total sample size, 26 of them were neutral which is 26% of the total sample size, 27 of them
agreed which is 27% of the total sample size and 10 of them strongly agreed to the statement
which is 10% of the total sample size. The above diagram shows that people believe that there
are variety in Nepali product as majority of the respondents has either agreed or expressed
neutral feeling towards the statement.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 41
Chapter V
Findings and Discussion
5.1. Findings of the study
This section incorporates the discoveries in response to the four diverse research
questions. The first research question pays attention on the cause’s Nepali people to prefer Indian
product over Nepali product. The second research question attempts to discover the factors why
Nepalese rely on imported goods rather than Nepali goods. The third question inquiries about
distinct product attributes does consumer sees lacking in Nepali product. Finally, the fourth
research question tries to uncover why Nepali products are not able to stand out in international
market.
On the subject of my first research question i.e. what causes Nepali people to prefer Indian
product over Nepali product? I became aware of that Nepalese prefer Indian product as they feel
there is lack of Nepali product alternative. According to the survey, I found majority of
respondents buy Indian products if there is no domestic alternative. If there was as much variety
provided by the Indian products Nepalese would be preferred over Indian product.
As regards to my second question i.e. Why we Nepalese rely on imported goods rather
than Nepali goods? I stumble on that some of the respondents’ don’t prefer to buy the Indian
products but there are compelled to buy them due to lack of domestic alternative. Hence, they are
obligated to rely on imported goods. Supplementary factors such as quality, reputation and
quality are also some of the factors which influence consumers buying behavior.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 42
Concerning to my third research question i.e. what product attributes does consumer sees
lacking in Nepali product?, I acquired most of the respondents consider Nepali products are
cheap and are purchased in terms of economic benefit. Also, attributes such as packaging, size of
the product, quality are considered quite low by the respondents.
Taking into account of my fourth research question i.e. Why Nepali products are not able to
stand out in international market? I obtained that Nepali product lacks in quality, availability, and
packaging which hinders export of our country. We being a citizen don’t prefer buying Nepali
product then obviously foreigners don’t see any uniqueness in our product to consume it. Hence,
it’s not able to stand out in front of international market.
5.2. Discussion of the findings
This research was performed in order to know the respondents’ preference for Nepalese
products and Indian products. It can be seen that consumers don’t have any option to choose
Indian products. They are obligated to choose or import Indian products as Nepali products lack
in quality, size, and packaging. Most of the respondents were aged 20-29 years. These
respondents are youths and usually they seek for high quality goods without being bothered
about the money. However the respondents’ aged above 29 years may consider price before
buying a product but no one would like to compromise in terms of quality.
After the completion of the research under customer preference between Nepalese
product and Indian product, I found that respondents are compelled to purchase Indian product.
The positive response of the respondents made me to realize that people want to use and local
produced goods. They want Nepali product to excel in the national and international market but
lack of quality and alternatives made them to shift their preference towards Indian products.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 43
Currently the numbers of manufacturers are increasing and are exploring various ways to
improve the quality and influence consumers to prefer local goods. When there is increase in the
demands of goods, manufacturers get motivated to produce more quantity of products. The
respondents even shared their experience how they had formed an attachment towards the
product which are no longer being supplied. Close down of such industries also made them shift
to the Indian products.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 44
Chapter VI
Conclusion and Implication
6.1. Conclusion
The study was based on the preference of Nepali product and Indian product. Packaging,
quality and availability are the three most important attributes that affect the customer’s buying
decision. Nepali products aren’t able to stand out as it is failing to adapt such attributes in the
products.
This research studies the true preference of the consumers and what are their needs
relating to household goods. As the result of this, the research on the subject has given a real life
idea which is quite different from the knowledge of the text book.
From this study, we can see that the demographic variables of the consumer (age, gender,
and caste/ethnicity) have different opinion or experience different level of preference for the
products. The data and findings give us clear insight on how the consumers are influenced by the
purchase of goods.
Consumers are the people who are very essential for any business. Consumer satisfaction
is very important for any type of business. From this research I noticed that consumers aren’t
satisfied by the product they acquire from Nepali manufacturers so they switch to Indian or
foreign products. Manufacturer Company should be able to manufacture the products including
all the attributes. Doing this will make consumer to prefer such products.
The data were collected from the easily available consumer by distribution of
questionnaire which contained demographic question, nominal questions and 5-point Likert
Scale questions with 100 samples of consumer who goes shopping in the market. Those data

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 45
were tested using SPSS and frequency table and the various charts were interpreted to find out
the results. The core purpose of the consumer preference is to improve the product and motivate
other manufacturer to produce more and more in Nepal. This will help Nepal to grow
economically by reducing the imports which eventually declines the trade deficit.
The objective of the study was to examine the preference towards Indian and Nepali
product. It is found that the market is a place where different people search for variety of
products. Through this survey we can conclude that people wants to use local products than other
foreign goods but are compelled to use foreign products due to lack of quality and availability of
the products.
6.2. Implication
According to the research findings, specific areas are identified as the field of
dissatisfaction for customers and rooms for improvement for Nepali manufacturer. These
identified areas must be meticulously considered by Nepali manufacturer to increase their
consumers. The outcome of this research is the thorough and integrated framework of the
determined relationships among several dimensions of goods such as quality, availability and
quantity of the product which gives an apparent portrait of the consumer’s preference for the
goods.
This research studies the true reasons behind preferring Indian and Nepali products as
consumers point of view is directly taken and measured. Some of the rooms for improvement for
Nepali manufacturer are as follows which has been collected while surveying respondents as
they were answering my research questions:

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 46
 Firstly, Nepali products aren’t properly advertised or promoted. Due to this consumers do
not have appropriate information about the product. Some people even do not have any
idea about the existence of the product. Hence, Nepali manufacturer must promote their
product.
 Nepali products which exist in the market are sometimes expensive and consumers could
easily find cheaper alternative in Indian products. Hence, product should be priced
efficiently.
 Nepali products do not have enough variety as compared to the Indian products. Nepali
manufacturers should manufacture varieties in their products.
 Nepali manufacturers should invest and focus on improving the product and make them
stand in the national and international market.
However, consumers have stated that Nepali product is preferred if they excel in
all the attributes.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 47
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CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 51
Annex
QUESTIONNAIRE FOR
NEPALI CUSTOMER’S PREFERENCE FOR INDIAN AND NEPAIL PRODUCTS
2017
Questionnaire No.: ………………
INTRODUCTION AND RESPONDENT CONSENT
Namaste my name is Shristi Maskey. I am an undergraduate student of Ace Institute of
Management. I am conducting a survey to learn about the Nepali customer preference for
Indian and Nepali products. You have been chosen by chance to participate in this survey.
I want to assure you that all of your answers will be kept strictly confidential and will be used
only as a data for this survey. I will not keep a record of your name or address. You have the
right to stop the interview at any time, or to skip any questions that you do not wish to answer.
There is no right or wrong answers.
Do you have any questions?
The interview takes approximately ….... minutes to complete. Do you agree to be interviewed?
NOTE WHETHER RESPONDENT AGREES TO INTERVIEW OR NOT
[ ] Does not agree to be interviewed ------ Thank participant for his/her time and end.
[ ] Agrees to be interviewed -------- Is this place and time okay for you?
I certify that I have read the above consent procedure to the participants.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 52
Personal Information:
(Given Name) (Middle Name) (Surname)
Section A
Demographic Information
1) Age:
a. 10-19 years
b. 20-29 years
c. 30-39 years
d. 40 years and above
2) Gender:
a. Male
b. Female
c. Others
3) Caste/ Ethnicity:
a. Brahmin
b. Chettri
c. Newar
d. Dalit
e. Others
f.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 53
4) Religion:
a. Hindu
b. Buddhist
c. Christian
d. Muslim
e. Others
5) Educational status
a. Higher secondary level of education
b. Bachelors
c. Masters
d. Research degree
6) Where do you live currently?
a. Kathmandu
b. Lalitpur
c. Bhaktapur
7) What is your household?
a. 2
b. 3
c. 4
d. More than 4

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 54
Section B
About Customer Preference
1. Do you often go shopping for household goods?
a. Yes
b. No
c. Sometimes
2. Where do you often purchase the household goods? (Multiple marking available)
a. Local retail store
b. Wholesale store
c. Departmental store
d. Supermarket
e. Online market
3. Which product do you choose while shopping?
a. Nepali products (Domestic product)
b. Indian products
c. Other foreign products
4. How do you rate Nepali products in comparison to Indian products?
a. Much higher
b. Somewhat higher
c. Same

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 55
d. Somewhat lower
e. Much lower
5. Which of the following products would you prefer buying foreign goods rather than
domestic goods?(Multiple marking available)
a. Food
b. Clothing
c. Furniture
d. Electronic device
e. Medicines
Rank the following as 1= Strongly Disagree 2= Disagree 3= Neutral 4= Agree 5= Strongly
Agree
S.N. 1 2 3 4 5
1. Buying foreign made products is un-
patriotic, therefore I don't buy them?
2. The country of origin of products does
not affect my decision when I
am shopping.
3. I buy Indian products if there is no
domestic alternative.
4. I would prefer to buy Indian products

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 56
rather than locally made ones.
5. I buy products according to the current
trends of the time.
6. My buying Behavior is influenced by
my friends.
7. My buying behavior is influenced by
my family.
8. My buying behavior is influenced by
my ethnic background.
9. I buy a product because of its good
reputation.
10. I form attachment towards products.
11. Nepali products quality is very low
compared to Indian product.
12. Nepali products are cheap and are
purchased in terms of economic benefit.
13. Nepali products in terms of packaging
stand out in front of foreign product.
14. You consider Nepali products as inferior
goods.
15. I believe Nepali products have the same
variety as in Indian products.

CUSTOMER’S PREFERENCE FOR INDIAN AND NEPALI PRODUCTS 57
Thank you very much indeed for your time and effort filling up this questionnaire. I wish you
good health and luck. I would like to inform you that this questionnaire is anonymous.