Analyzing Factors Impacting Uber Service Usage in Nepal

This report presents an analysis of Uber's entry into the Nepalese market, focusing on the factors influencing riders' intentions to use the service. The study utilizes primary research, surveying 500 customers to assess the impact of various variables. The report delves into demographic characteristics of the respondents, including gender, education, age, and usage frequency. Normality and distribution of the data are examined, followed by preliminary analysis and hypothesis testing. The research explores the relationships between riders' continuous usage intentions and factors such as customer need for prestige, trust, customer return on investment, convenience, and search benefits. Statistical tools are employed to evaluate these associations, and the findings are interpreted to draw meaningful conclusions about the drivers of Uber's adoption in Nepal. The report includes reliability and validity analyses (Cronbach's Alpha, KMO, and Bartlett's test), providing insights into the robustness of the research. The conclusion summarizes the key findings and their implications.

Hypothesis test

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
Demographic characteristic of the respondents...........................................................................2
Normality and distribution of data...............................................................................................5
Preliminary analysis.....................................................................................................................9
Hypothesis testing......................................................................................................................12
Interpretation of findings...........................................................................................................14
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
APPENDIX....................................................................................................................................18
Divergent and convergent validity.............................................................................................18

INTRODUCTION
Research methodology is all about to select the best methods to reach the defined aim.
The present study main aim is to develop a deep understanding about different variables which
entails the association between each other. The study is based upon the case study of Uber who
recently entered the Nepalese market and offer the service to all kind of people. The report will
highlight the importance of many factors that have influenced the riders in order to adopt the
Uber service. For that, primary research has been conducted in which 500 customers chosen
through which association between riders continuous use intension with customer need for
prestige, trust, customer return on investment, convenience and search benefits will be evaluated
effectively through inferential tool.
Demographic characteristic of the respondents
Gender
Frequenc
y %
Male 267 53%
Femal
e 227
45.40
%
Total 494 99%
Male Female
200
210
220
230
240
250
260
270
267
227
Gender
Frequency

Interpretation: As per the demographic information it has been interpreted that out of 500
respondents, 267 are male whereas 227 are females
Education
Frequency %
Vocational/
High School 18 3.60%
HND 5 1%
University
Degree 319 63.80%
Post graduate 157 31.40%
Total 499 99.80%
18 5
319
157
Education
Vocational/High School
HND
University Degree
Post graduate
Interpretation: As per the education background most of the selected participants have a
University Degree such that 63.80% are degree holders. While, 3.60% of them are Vocation and
High School and 1% is HND and only 31.40% are Post graduates.
Age
Frequenc
y %
18-27 373 74.6
28-37 110 22

38-47 11 2.2
48-57 5 1
Total 499 99.8
18-27
28-37
38-47
48-57
0 50 100 150 200 250 300 350 400
373
110
11
5
Age
Frequency
Interpretation: Most of them are adult such that out of 500, 373 are fall under the age of 18 to
27 and 110 are fall under 28 to 37. On the other side, 11 respondents are belongs to 38 to 47 and
only 5 of them are 48 to 57.
Average usage per week
Frequenc
y %
Two 173 34.6
Four 112 22.4
Six 40 8
Eight 23 4.6
Other 152 30.4
Total 500 100

Two Four Six Eight Other
0
20
40
60
80
100
120
140
160
180
173
112
40 23
152
Average usage per week
Frequency
Interpretation: Most of the respondents stated that the use Uber service more than twice and out
of 500, 112 stated that they rider four times a week and 152 respondents stated that they use rides
more than eight times.
Normality and distribution of data
Descriptive Statistics
N
Minimu
m
Maximu
m Mean
Std.
Deviati
on
Varian
ce Skewness Kurtosis
Statist
ic Statistic Statistic
Statist
ic Statistic
Statisti
c
Statist
ic
Std.
Err
or
Statist
ic
Std.
Erro
r
Using uber
taxi
enhances
my self
confidence
500 1 5 3.29 1.181 1.395 -.386 .109 -.644 .218

Using uber
taxi makes
me a worthy
person
500 1 8 2.77 1.217 1.482 .299 .109 -.292 .218
Using uber
services
makes my
friends
value me
500 1 22 2.83 1.460 2.131 4.544 .109 58.270 .218
Using uber
taxi is
prestiguos
500 1 7 3.41 1.160 1.345 -.274 .109 -.482 .218
I trust that
uber
services is
safer
500 1 5 3.63 1.177 1.385 -.656 .109 -.366 .218
I trust that
uber
services is
robbery-
free
500 1 5 3.34 1.122 1.260 -.242 .109 -.666 .218
I trust that
uber
services
drivers are
carful when
driving
500 1 7 3.64 1.034 1.069 -.417 .109 -.010 .218
I trust that
uber mobile
application
is safe to
use
500 1 9 3.66 1.026 1.053 -.341 .109 1.453 .218
I trust that
uber taxi
drivers will
not run
away with
my
belongings
500 1 5 3.42 1.109 1.231 -.409 .109 -.346 .218

Using uber
services
helps me
get closer to
important
people
500 1 5 2.65 1.104 1.219 .187 .109 -.645 .218
Using
services
connects
socially me
to peopls
500 1 5 2.84 1.043 1.089 -.059 .109 -.603 .218
Using uber
services
helps me
develop
relationship
s with
others
500 1 5 2.91 1.139 1.297 .022 .109 -.728 .218
I feel loved
when use
Uber
services
500 1 5 2.90 1.130 1.277 -.103 .109 -.643 .218
I am greeted
and
welcomed
by an Uber
driver
anytime I
pick Uber
services
500 1 44 3.57 2.095 4.390 14.37
0 .109 278.40
1 .218
The uber
driver assist
me when
boarding
the car
500 1 5 3.35 1.065 1.134 -.434 .109 -.342 .218
Uber offers
friendly
service
500 1 5 3.71 .970 .941 -.705 .109 .463 .218

Overall, I
will like
customer
service
offered by
uber
500 1 5 3.71 .967 .935 -.652 .109 .339 .218
Uber
service is
cheaper
499 1 5 3.27 1.145 1.311 -.274 .109 -.556 .218
Uber
service has
agood
economic
vallue
500 1 5 3.45 .985 .970 -.390 .109 -.113 .218
Uber
service
gives me
value for
money
500 1 9 3.52 1.064 1.132 -.142 .109 .907 .218
Using uber
makes me
feel relaxed
500 1 5 3.78 1.020 1.039 -.731 .109 .232 .218
I can get an
uber driver
anytime i
wanted
500 1 5 3.55 1.111 1.234 -.659 .109 -.053 .218
Uber
service is
always
accessible
500 1 5 3.63 1.024 1.048 -.641 .109 .114 .218
Payment
methods for
uber service
is flexible
500 1 5 3.66 .992 .984 -.790 .109 .586 .218
I am able to
complete
my journey
without
difficulty
500 1 5 3.79 .977 .954 -.856 .109 .733 .218

It is easy to
search for
an uber
driver on
the mobile
application
500 1 5 3.73 1.096 1.200 -.877 .109 .371 .218
uber drivers
are easilty
available
500 1 5 3.55 1.059 1.122 -.615 .109 .019 .218
Uber
services are
normally
closer to me
500 1 5 3.38 1.069 1.143 -.397 .109 -.230 .218
It is easy to
reach an
Uber driver
500 1 5 3.54 1.019 1.038 -.491 .109 -.083 .218
I will
continue to
use uber
service
500 1 5 3.65 .970 .941 -.699 .109 .540 .218
I will
encourage
others to
use uber
service
500 1 5 3.72 .970 .940 -.721 .109 .444 .218
I will use
uber
services
more often
500 1 5 3.60 1.015 1.030 -.580 .109 .243 .218
GENDER 495 1 22 1.50 1.049 1.101 15.15
1 .110 295.66
4 .219
EDUCATI
ON 499 1 4 3.23 .645 .416 -1.073 .109 3.027 .218
AGE 499 1 4 1.29 .559 .313 2.106 .109 5.111 .218
AVUPW 500 1 5 2.74 1.675 2.807 .365 .109 -1.564 .218
YWUEXP 500 1 5 2.60 1.313 1.723 .715 .109 -.645 .218
Valid N
(listwise) 492

Interpretation: The descriptive statistic entails that average number of respondents are neutral
that using Uber taxi enhances their self-confidence and that is why, it helps only 50% of the
chances to deviates from the answer. Further, mean of the respondents exhibits that they trust
that Uber services are safer. Also, in the context of the social connections, respondents respond
neutral which shows that Uber is not able to generate the social connections. Further, as per the
customer return on investment and search benefits, it has been analyzed that majority of the
respondents are agreed that Uber services are helpful. In addition to this, skewness of the data
reflected that substantially skewed distribution and Kurtosis is also negative which examine the
distribution is too peaked.
Preliminary analysis
Reliability
Case Processing Summary
N %
Cases Valid 492 98.4
Excludeda 8 1.6
Total 500 100.0
a. Listwise deletion based on all variables in
the procedure.
Reliability Statistics
Cronbach's
Alpha N of Items
.910 37
Interpretation: As per the Cronbach’s Alpha, the reliability is 0.91 which is strongest.
Convergent and Discriminant validity

KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .931
Bartlett's Test of
Sphericity
Approx. Chi-Square 9221.410
df 496
Sig. .000
Communalities
Initial Extraction
Using uber taxi enhances
my self confidence .452 .482
Using uber taxi makes me
a worthy person .588 .691
Using uber services makes
my friends value me .572 .657
Using uber taxi is
prestiguos .431 .478
I trust that uber services is
safer .493 .496
I trust that uber services is
robbery- free .445 .486
I trust that uber services
drivers are carful when
driving
.549 .614
I trust that Uber mobile
application is safe to use .528 .561
I trust that Uber taxi
drivers will not run away
with my belongings
.454 .466
Using Uber services helps
me get closer to important
people
.547 .585
Using Uber services
connects socially me to
people
.671 .758
Using Uber services helps
me develop relationships
with others
.642 .703