Seminar on Marketing Research II

Seminar on Marketing Research II

Date: 20 April 2018

Avant Garde Solutions in collaboration with Faculty of Management, Tribhuvan University and Kathmandu University School of Management organized a seminar on marketing research. The aim of this seminar was to disseminate research findings to promote marketing policy and practices to help business organizations in Nepal. The seminar highlighted the research findings and pertinent issues relating to consumers’ behavior and marketing practices in Nepal.

The success of any business organization depends on its marketing strategies and practices. In the process of delivering products and services, managers need to understand why and how customers react to any promotional messages. Similarly, managers need the knowledge about why customers like and buy certain brands, talk positively and repurchase them. Therefore, based on such information, managers prepare marketing strategies and practices for introducing new products, expanding markets and satisfying customers. Such practices help organizations improve their brand image, competitiveness, customer’s satisfaction, market shares, and profitability.

This seminar presented how Nepali customers behave in the market. The seminar focused on how consumers perceive advertisement messages, and how they develop liking/ disliking of certain messages. Also, the seminar discussed about perception of consumers towards products and services, how they make purchase/ repurchase decisions and how family and friends influence this process. In addition, the seminar presented the marketing strategies and practices of Nepali organizations.  Lastly, the seminar ended with discussions on the implications of these research findings on improving the marketing policies and practices of Nepali organizations.

This seminar brought academicians and business professionals together to share their ideas and experiences. The discussion helped generate new knowledge and practices to improve the performance of marketing professionals.

The seminar discussed the following research gaps:

  1. Effects of internet ad and attitude towards the ads
  2. Effectiveness of print advertisement practices in higher education institutions
  3. Formation of brand equity in smartphones
  4. Effect of private label brands (PLBs) exposure on consumer behavior
  5. Children consumer socialization and its effects on their purchase decisions
  6. A probabilistic approach to measure customer defection


  1. Attitude towards the internet ad of Nepali youth.

Authors: Mr. Suman Dahal and Prof. Binod Krishna Shrestha

Digital advertisement is an effective promotion method. Such advertisement can target thousands of customers in significantly lower costs and time. The use of such advertisement is increasing in Nepal. However, the effectiveness of such advertisement cannot be ensured until consumers’ develop a positive attitude towards it. This study evaluated attitudes of Nepali youth towards such advertisement and its contributing factors.

Survey of 300 smartphone users in Kathmandu analyzed through structural equation modeling revealed that the audience have positive attitude towards mobile advertisement. Such advertisements are informative and entertaining but not always credible and often irritating.  Informative, entertaining and credible advertisement on mobile increased their preference but irritating advertisements decreased their preference. If the advertisements are presented in a personalized manner, it increases the attitude even further. Therefore, digital advertisers need to make their advertisement personalized to the audience, informative, credible, entertaining and less irritating.

  1. Effectiveness of print advertisement practices in higher education institutions

Authors: Mr. Sushil Awale and Prof. Binod Krishna Shrestha

For education institutions in Nepal, the use of print advertisement in national newspapers is prominent during admission seasons. Despite huge expenditure on such advertisement, its contribution is not yet documented. This study fills this knowledge gap. This study uses the framework of service advertisement. We evaluated practices of  six service components viz. physical representation, endorsement, past performance, rational appeal, testimonial. Where, we measured the image portrayed and credentials in square centimeter size occupied in the print ads published in November 2016. In addition, we studied repetition and the total size of print ad. And, we regressed the measured sizes of different variables against percent applicants on total available seats of 168 colleges of the same period.

Using four stage of analysis, this study discovered that most  print ads contain rational message only without highlighting any other components. And, majority of the institutions publish ads two times. The print ads varies from 21 to 200 square cm in size. No variables except the size of the ads have a contribution in increasing number of applicants. Also, The research discovered that education institutes use less service ad components and they have insignificant contribution in increasing number of applicants. The managers emphasize word of mouth and public relations to increase the number of applications.

  1. Formation of brand equity in Smartphones in Nepal

Authors: Mr. Ramesh Shrestha and Prof. Binod Krishna Shrestha

Enhancing brand equity is the ultimate objective of marketing managers. Customer-based brand equity refers to brand preference, brand loyalty, and brand repurchase intention. The smartphone market is vibrant in Nepal and so is its competition. Managers need to know how brand equity is developed in the smartphone industry in order to devise marketing and promotion strategies. This research identified brand equity formation in the smartphone market and its corresponding factors. This study is based on two phase survey on 680 smartphone users. Confirmatory factor analysis and structural equation modeling of the data identified that brand equity of any brands of smartphone is created by brand image.

Brand image is developed by perceived quality because of improved product features. Promotion program creates brand awareness and if the customers are aware of product features, it subsequently enhances the perceived quality. The customers’ quality perception enhances their value proposition towards the smartphone brand. But improved value proposition does not enhance brand image. An improved brand image enhances brand preference and subsequently brand loyalty and brand repurchase intention. However, the brand image is not sufficient to create brand loyalty and brand repurchase intention. This indicates that brand switching in a smartphone is high. Therefore, there is a need for marketers to devise appropriate plans so as to make the customers prefer the brand.

  1. Effect of exposures of private label brands (PLBs) in Nepali Retail Stores.

Authors: Mr. Santosh Sharma and Prof. Binod Krishna Shrestha

Retail store chains such as Bhatbhateni, Saleways, Big Mart, KK Mart, CG Mart offer packets of food and grocery products under their own brand name. This practice helps such chains leverage their sales and profitability. This practice is known as Private Label Brands (PLBs). This study assessed whether customers’ exposure to such PLB through store shelf display encourage customers’ purchase such products. This study organized a field experimentation on 200 retail consumers immediately after their purchase in a retail store.

Thus, the study discovered that consumers with high level exposure to PLB in shelf space of supermarkets had more awareness and lower perceived risks on PLB. In other hand, the impression on the brands turned out indifferent to the level of the exposure. All the three variables had significant effects on attitude towards PLB which in turn increases purchase intention of the PLB. Therefore, the introduction of PLB and exposure to these brands increase market performance of PLB products.

  1. Children consumer socialization and its effects on their purchase decisions in Kathmandu

Authors: Ms. Astha Karki and Prof. Binod Krishna Shrestha

Children have been an important phenomenon for designing marketing programs. And, marketers have a growing realization about the need of targeting children to promote their products and services. However, there is no concrete evidence on the effectiveness of children focused marketing programs. Also, there has been any discoveries on corresponding aspects to be considered while taking children as a focal point of marketing promotion. This study assessed how the consumer socialization agents such as parents, friends, television, shops, and brands work with school going children. Also, we studied what type of influences children have on their purchase decision making.

A survey of 384 children and their analysis revealed that all five socialization agents influence children’s purchase decision-making capacity. The parents influence children to make utilitarian decisions. Similarly, friends and shopping experiences influence them for impulsive decision making. Brands and television promote social and hedonistic decision making among the children. This study has several implications for marketers while deciding upon promotional strategies for influencing the children customers.

  1. A probabilistic approach to measure customer defection

Authors: Mr. Keshav Gyawali and Prof. Binod Krishna Shrestha

Customer defection refers to companies decision to terminate relationship with service providers. Although defection is an unavoidable process, it can be managed properly. In order to manage it, the companies need to identify the defection rates across different consumer segments in a scientific manner. This study tested the usefulness of a probabilistic approach of measuring customer defection across different groups of customers. We conducted the test by extracting the internal subscriber data of a basic telecom from the data warehouse. We observed a total of 48,583 fixed phone customers activated under seven different categories from 19 September 2003 to 31 March 2008 for their cancellation pattern till 27 March 2015.

This research found that the lost customer’s data can be useful to measure defection rates and to extract meaningful information. The test revealed that the model can be used to estimate the risky customer segments to develop marketing strategies suitable for different market segments. This model can be applied in many business contexts such as banking, automobiles, hotels, airlines to measure rates of customer defection at any time.

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Technology Khabar – Seminar on Marketing Research