Brand Loyalty of Customer For Xiaomi Phones in Bhaktapur
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BRAND LOYALTY OF CUSTOMER FOR XIAOMI PHONES IN BHAKTAPUR
By
SAGAR KHADKA Exam Roll No: 17054/16 T.U. Reg. No: 7-2-25-1280-2016
A Summer Project Report Submitted to Faculty of Management, Tribhuvan University
In partial fulfillment of the requirements for the degree of Bachelor of Business Administration (BBA)
At the
Nepal Commerce Campus Tribhuvan University New Baneshwor, Kathmandu
X
II
II
DECLARATION
This
is to certify that I have completed the Summer Project entitled
“Brand Loyalty
of Cust Custom omer er for for Xiao Xiaomi mi phon phones es in Bhak Bhakta tapu pur” r” unde underr th thee “Mr.Chudaman Mr.Chudamanii Pandeya” in partial fulfillment of the requirements
of
Bachelor Bach elor of Business Business Administr Administratio ation n at
guid guidan ance ce of for the degree
Faculty of Management, Tribhuvan
University. This is my original work and I have not submitted it earlier elsewhere.
Date:
Signature:
Sagar Khadka
X
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the summer project entitled “ Brand Xiaomi phones”
is an ac acad adem emic ic wo work rk don donee by
loyalty of customer for
Sagar Khadka submitted
partial fulfillment of the requirements for the degree of
in the
Bachelor Bach elor of Business Business
Administration at Faculty of Management, Tribhuvan University under my guidance
and supervision. To the best of my knowledge, the information presented by him/her in the summer project report has not been submitted earlier.
………………………………… Signature of the supervisor Mr. Chudamani Pandeya Designation: Lecturer Date:
LETTER OF APPROVAL
The summer summer projec projectt ent entitl itled ed Bhaktapur Bhakt apur
Brand loyalty of customer for Xiaomi phones in
has been submitted by Sagar Khadka for the final examination to the
faculty facu lty manage managemen ment,t, Tri Tribhu bhuvan van Uni Univer versit sity, y, in the ful fulfil fillme lment nt of the deg degree ree of Bachelors of Business Administration (BBA). The research committee of this campus has found this report satisfactory in scope and quality and has therefore forwarded for examination.
Signature: Assoc. Prof. Dr. Gopal Thapa BBA Director Nepal Commerce Campus BBA Research Committee
ACKNOWLEDGMENTS
I would like to express my gratitude to Nepal Commerce Campus, New Baneshwor, Kathmandu for providing me this opportunity to prepare the summer project on “Brand loyalty for customer for Xiaomi phone in Bhaktapur”. Moreover, I experience
and enjoyed the difficu difficulty lty in cond conductin uctingg resear research, ch, however I got opportunity opportunity to earn my language, knowledge and talent. My sincere thanks go to Mr.Chudamai Pandeya for guidance and inspiration and resource materials without which I would not be able to prepare this report. I express thank to Mr.Gopal Thapa (BBA director). I also like to thank our teacher for providing me guideline of preparing research in a topic. I am profoundly grateful to my frie friend ndss fo forr help helpin ingg me thro throug ugho hout ut th this is whol wholee proj projec ectt work work and and al alll th thee intellectuals’ colleagues and respondents who helped me by providing their valuable time to fill up the questionnaire. Many attempts have been made to bring this report up to the standard so as to balance with my text. Despite these efforts there may be shortcomings regarding this topic. Therefore, I highly anticipate for the suggestions and recommendations for further impr im prov ovem emen entt of the the repo report rt.. Th Thos osee sugg sugges esti tion onss wi will ll be hi high ghly ly appr apprec ecia iated ted and and acknowledged.
Thank you. Sagar Khadka BBA 7th semester
TABLE OF CONTENTS
Page no.
Declaration....................................... Declaration................. ............................................. ............................................. ......................................................ii ................................ii Certificate from the supervisor............................................ supervisor.................................................................. .........................................iii ...................iii Letter of approval.................................... approval.......................................................... ..................................................................... ............................................... iv Acknowledgements...................................... Acknowledgements................ ............................................ ............................................ .............................................v .......................v Executive summary.......................................... summary................................................................ ............................................................. ....................................... vi Abbreviation...................................... Abbreviation................ ............................................ ............................................ ............................................ ...............................vii .........vii Table of contents........................................ contents.............................................................. ............................................ ...........................................viii .....................viii List of tables......................................... tables............................................................... ............................................ ...................................................xi .............................xi List of figures........................................... figures................................................................. ............................................ .......................................... ........................xii ....xii
Chapter1:Introduction....................................................................................................1
1.1 Context information.................. information........................................ ............................................ ................................................... ...............................1 ..1 1.2 Purpose of the study........... study................................. ............................................ ............................................................3 ......................................3 1.3 Significance of the study................................... study......................................................... ...................................................3 .............................3 1.4 Literature survey........... survey.................................. ............................................. ................................................................ ..........................................44 1.4.1 Customer satisfaction........................................ satisfaction.............................................................. ............................................ ......................66 1.4.2 Perceived quality.................. quality........................................ ............................................ ...................................................7 .............................7 1.4.3 Reliability........................................... Reliability................................................................. ............................................. ..................................... ..............77 1.4.4 Brand image................... image......................................... ............................................ ......................................................... ...................................77 1.5 Research methodology..... methodology........................... ............................................ ............................................ ........................................ ..................88 1.5.1 Research methodology..... methodology........................... ............................................ .......................................................8 .................................8 1.5.2 Population and sampling......... sampling............................... ............................................ ................................................ ..........................88
1.5.3 Nature and source of data.......................................................... data..............................................................................9 ....................9 1.5.4 Data collection procedure.............................................................................9 1.5.5 Data processing procedure.............................................. procedure............................................................................ ..............................99 1.5.6 Data analysis tools and technique................................................................. technique.................................................................99 1.6 Limitations of the study................................................... study.............................................................................. .................................... .........99 1.7 Chapter scheme.................. scheme........................................ ............................................ ..........................................................10 ....................................10 Chapter II:Data II :Data presentation and analysis............................. analysis................................................... .......................................11 .................11 2.1 Respondents’ profile............................................................. profile................................................................................. ............................. .........11 11 2.1.1 Gender of the respondent.............. respondent.................................... .............................................................. ........................................11 11 2.1.2 Age group of the respondent........... respondent................................. ............................................ ..................................... ................12 .12 2.1.3 Models of xiaomi phone used by respondents....................................... respondents............................................13 .....13 2.2 Descriptive analysis..................................................... analysis................................................................................. ...................................... ..........14 14 2.2.1 Reasons for using xiaomi phone.............. phone.................................... ............................................... .............................14 ....14
2.2.2 Customers satisfaction on product performance.........................................15 2.2.3 Perceived brand quality...................................... quality............................................................ .........................................16 ...................16 2.2.4 Reliability........................................... Reliability................................................................. .........................................................18 ...................................18 2.2.5 Brand image................... image......................................... ............................................ ...................................................... .................................19 .19 2.2.6 Brand loyalty of the respondents............................. respondents................................................... ....................................21 ..............21 2.2.7 Drawbacks and brand commitment................. commitment....................................... ............................................23 ......................23 2.3 Findings and a nd discussion...................... discussion............................................ ............................................................... .........................................26 26 Chapter III:Conclusion and action implications..........................................................28 3.1 Conclusion............................. Conclusion.................................................... ............................................. ............................................ ................................28 ..........28 3.2 Action implications................ implications...................................... ............................................ ...................................................... ................................28 28 Bibliography................................... Bibliography............. ............................................. ............................................. ............................................ .................................30 ...........30 Appendix................................... Appendix............. ............................................ ............................................ ............................................ ...................................... .................32 .32
LIST OF TABLES Pages
Table 1 :Gender of respondents......... respondents................................ ............................................. .......................................... ............................. .........11 11 Table 2 : Age of the respondent.............. respondent.................................... ............................................ ............................................. .........................12 ..12 Table 3 :Models of xiaomi phone used by respondents...............................................13 respondents...............................................13 Table 4: Reasons for using xiaomi phone........... phone................................. .........................................................14 ...................................14 Table 5: Customer satisfaction on product performance.............................................15 Table 6: Perceived brand quality of xiaomi phone......................................................17 Table 7: Reliability of xiaomi phone...........................................................................18 Table 8: Brand image of xiaomi phone........................ phone.............................................. ................................................20 ..........................20 Table 9: Measuring brand loyalty using likert scale :..................................................22
Table 10: Respondent s views on drawbacks of xiaomi phone...................................24 Table 11 : Response on brand commitment............................ commitment.................................................. ..................................... ...............25 25
LIST OF FIGURES
Page Figure 1 :Gender of respondent........... respondent................................. ............................................ ............................................ .............................12 .......12 Figure 2:Age of repondents.......... repondents................................ ............................................ ............................................ ....................................13 ..............13 Figure 3 : Models of xiaomi phone used by respondents..................... respondents.............................................14 ........................14 Figure 4 : Reasons for f or using xiaomi phone........... phone................................. ............................................. .................................15 ..........15 Figure 5 : Average score on product performance.......................................................16 performance.......................................................16 Figure 6:Perceived brand quality of Xiaomi phone.....................................................17
Figure 7: Reliability of Xiaomi phone...................... phone............................................ ............................................... .............................19 ....19 Figure 8: Average score on brand image of Xiaomi phone.........................................21 Figure 9 : Average score on brand loyalty of respondents........ respondents.............................. ...................................23 .............23 Figure 10 : Respondent’s views on drawbacks of Xiaomi phone................................ phone................................24 24 Figure 11 : Response on brand commitment.................................................. commitment................................................................25 ..............25
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EXECUTIVE SUMMARY
This research is based on measuring the brand loyalty of customers for Xiaomi phone. The main objective of this research is to analyze the level of brand loyalty on the basis
of customer satisfaction, reliability brand quality and brand image. Research design used in this research is a descriptive research design and the sample taken is 30 among the infinite population who use Xiaomi phone. Nonprobability sampling is used under which convenience sampling method is selected. The nature of data used in this study is primary which has been generated by primary sources. For collecting data through primary sources questionnaire method has been used. The collected data are edited to ensure accuracy, consistency and reliability. Data has been presented in descriptive and tabular form as per requirement with clear interpretation on it. To make report simple and easily to understand charts, Tables and diagrams are used. Collected data was in an unorganized form. So, they were organized properly to save time and prevent mistakes. Appropriate data has been converted into tabular and graphical form with the help of MS Excel. Pie-charts, tables and bar diagrams are designed on the basis of data as per required. The findings of this study are as per the analysis of data which is according to the objective. The study shows that brand loyalty of customers for Xiaomi phone in Bhaktapur is up to the mark and as per the second objective users response on several determinants of brand loyalty inclu determinants including ding customer satisf satisfaction action,, perceived perceived quality, quality, reliability and brand image is good and it is also found that build quality, value for money and reliability are the most affecting factors of Xiaomi phone.
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CHAPTER I: INTRODUCTION
1.1 Context Information
The sole objective of any business is to earn profit and to maximize their customer loyalty and satisfaction on the products they offer. The brand name of a product signifies a level of quality and uniformity consumers could trust. These days brand plays a vital role in the consumer buying decision. Generally consumers usually go for a familiar brand, but the notion of brand goes beyond a trademark or name. The concept of brand encompasses much more than trademark. Kotler defines that brand is defined as a “name, term, symbol (or a combination of these) that identifies the maker or seller of a product. Brands help to occupy a distinct market position position in the mind of customers customers.. Cons Consumer’s umer’s beliefs and attitudes make up brand images, and these affect how they view brands they come into cconnection onnection with. Brand experience occurs when consumers shop for or search for, consumer products. The stronger and more relational these senses are to the individual; the more likely repeat purchase behavior will occur. After contact has been made, psychological reasoning will occur, followed by a buy or not-buy decision. This can result in repeat purchase behavior, thus incurring the beginning of brand loyalty. Therefore, Brand loyalty is the positive association consumers attach towards a particular product or brand. Loyal customers frequently purchase products from their preferred brands, regardless of price. Kotler and Keller (2006) define brand loyalty as the extent of consumer faithfulness towards a specific brand and this faithfulness is expressed throug thr oughh repeat repeat purch purchase asess and other other posit positive ive beh behavi aviors ors suc suchh as word word of mouth mouth advocacy, irrespective of the marketing pressure created by other brands. Brand loyalty occurs when a customer chooses to repeatedly purchase a product produced by the same company instead of a substitute product produced by a competitor. Brand loyalty is often based upon Cognizance. Consumer will consistently purchase the same product because they believe it as being the superior product among the choices available. Brand loyalty in marketing, consists of a consumer’s devotion, bond, and commitment to repurchase and continue to use a brands product or service over time, regardless of
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changes with competitors pricing or changes in the external environment. Brand loyalty reflects a customer's commitment to remain in a relationship for a long period of time with a brand. Brand loyalty is desired by firms because retention of existing customers is less costly than obtaining new ones. A critical factor of building brand loyalty is developing a connection or relationship between the consumer and the brand. When an emotional relationship is created between the consumer and the brand this leads to a strong bond and a competitive advantage for that particular brand. Loyalty consists of both attitudinal and behavioral components. Attitudinal loyalty relates to the customers willingness to purchase product or service from the brand at any reasonable cost. Behavioral Behav ioral loyal loyalty ty is the re-pur re-purchasin chasing. g. Both behavior behavioral al and attitu attitudinal dinal component componentss are important. One example is that a consumer displays behavioral loyalty by buying Xiaomi phone when there is few alternatives available and attitudinal loyalty when they will not buy an alternative brand when Xiaomi phone is not available. The attitudinal component is psychological; this leads to the behavioral action of repeat purchase. It is the attitudinal loyalty that drives most loyalty behavior and ensures loyalty over time not just with one purchase. Xiaomi Xia omi Corpor Corporati ation on is a Chi Chines nesee mul multin tinatio ational nal com compan panyy founde foundedd in 2010 2010 and headquartered in Beijing. Xiaomi makes and invests in mobiles, apps, laptops, bags. Xiaomi is also the fourth company globally after Apple, Samsung and Huawei to have self-developed mobile system-on-chip (SoC) capabilities. Xiaomi released its first smartphone in August 2011 and rapidly gained market share in China to become the country's largest smartphone company in 2014.At the start of seco se cond nd qu quart arter er of 20 2018 18,, Xi Xiao aomi mi wa wass th thee wo worl rld' d'ss fo four urth th-l -larg arges estt sm smar artp tpho hone ne manufa man ufactu cturer, rer, lea leadin dingg in bot bothh the lar larges gestt mar market ket,, Chi China, na, and the sec second ond-la -large rgest st mark ma rket et,, In Indi dia. a. Xi Xiao aomi mi lat later er de deve velo lope pedd a wi wide derr ran range ge of co cons nsum umer er el elec ectr tron onics ics,, including a smart home, product ecosystem, which has connected more than 100 million
smart
dev eviices
andd an
apppliances ap es.. Monthly
active
users
(MAUs)
of MIUI increased to 291.6 million in September 2021 Xiaomi has produced has produced many products. Observers suggest that part of Xiaomi's rapid success rests on its ability to differentiate itself within the Android universe. The company has increased its range of products; its smartphones include: Mi Series Mi
4 Note Series (got a new update after 3 years, with the Mi Note 10 Pro), Mi Max Series,, Mi Mix Series, Series Series, Redmi Redmi and and POCO Series. As well as mobile phones, Xiaomi hass ha
sta tart rted ed sel elli ling ng wearable’s wearable’s,,
mobile
accessories,
and
appliances
such
as television television an andd sp spea eake kers rs.. In 20 2018 18 it wa wass se sell llin ingg ta tabl blet ets, s, la lapt ptop ops, s, an andd smartcosts by home devices. Xiaomi also keeps its prices low or close to its manufacturing costs by home devices. keeping most of its products in the market longer, eighteen months rather than the sixmonth norm followed by many smartphone companies. The company focuses on Indi In dia, a, th thee wo worl rld' d'ss se seco cond nd-l -lar arge gest st sm smar artp tpho hone ne ma mark rket et.. In Ma Marc rchh 20 2020 20,, Xi Xiao aomi mi showcased its new 40W wireless charging solution, which was able to fully charge a smartphone with a 4,000mAh battery from flat in 40 minutes 1.2 Purpose of the Study
The Smartphone market is growing rapidly in Nepal and being more competitive with moree featur mor features es and attribute attributess of several several Sma Smartp rtphon honee brand brands. s. But least least has been been discussed regarding several determinants that are responsible to make customer loyal to the brand. Thus, the major purpose of study is to explore level of brand loyalty of customers. The specific purposes are follows:
To analyze the brand loyalty of Xiaomi phone.
To analyz analyzee the determ determina inants nts of brand brand loy loyalt altyy includ including ing custom customer er satisf sat isfact action ion,, per perceiv ceived ed brand brand qua qualit lity, y, reliabi reliability lity and brand brand ima image, ge, brand awareness.
1.3 Significance of the Study
Customers are the integral part of every organization. For the long term existence every organization have to adopt several strategies to make customers loyal to the brand .globalization, complex buying behavior of customers and competitors are the major issues in present context. With the growing generation every organization will have to develo developp sever several al strategies strategies depending depending on the nature of business business to make their customers loyal to their brand. Unde Understand rstanding ing views, critics, current position and potential strategy is the trait that keeps firm on top of all regarding other competitors. Thus, the study poses several significances. They are as follow:
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It works as a guideline for the researchers to provide concrete path for conducting future researches by helping them to identify the research gap or untouched area that can be taken as topic for further research.
This study may provide guidance to the reader or business organization to realize more appropriate ways of attracting customers and making them loyal to the Xiaomi brand.
The study assists the concerned authorities to have idea on factor refraining brand loyalty of customers and potential potential of Xiaomi Inc.
1.4 Literature Survey
Brand loyalty as a concept has its origin in 1920s.The marketing field first took an interest in brand loyalty on an academic level through Copeland’s work in 1923 (Kabiraj & Shanmugan, 2011). brand loyalty simply refers to the biased behavioral response (purchase) expressed over time by some decision-making unit with respect to one or more alternative brands out of a set of brands and is a function of psychological process Jacoby (1971). In other words, Brand loyalty is a deeply held commitment to re-buy or re-patronize a preferred product or service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing, despite situational influences and marketing efforts having the potential to cause switching behavior (Oliver, 1999). Moreover, (Schiff & Kanuk, 2004) defined that brand loyalty represents a commitment of the consumer to the brand which makes it an in inta tang ngib ible le asse assett that that refle reflect ctss the the comp compan any' y'ss pric pricee of th thee prod produc uctt or serv service ice.. However, brand loyalty can also be demonstrated through attitudes that influence consum con sumer er commit commitmen mentt to a bra brand, nd, pri price ce tol toleran erance, ce, and positi positive ve word-o word-of-m f-mout outhh (Salmones et al., 2005). In one of the researc researchh conducted by (Olsen & Jacob Jacoby, y, 1971) it was found that brand loyalty is related to; percentage of purchase devoted to the most purchased brand, number of different brand purchased over the past two years, number of times the favori fav orite te brand brand was pur purcha chased sed out of the las lastt five five purcha purchases ses,, three three con consec secuti utive ve
purchases out of the last five purchases and the actual number of consecutive purchases of favorite brand out of the last five purchases. purchases. Many researchers favored the fact that the organization that have pool of brand loyalists have greater market share and higher rates of return on investments, in turn.
6 Such results persuade marketing officials to generate and up-hold brand loyalists. To attain such targets, information about variables which causes brand loyalty becomes a core issue. Brand loyalty is considered an essential element for sustaining in a competitive environment and for the success of any organization. It is a way of keeping customers attached to a company for longer time and for gaining competitive advantage. Brand loyalty shows the trust and commitment of customers towards a brand. (Pitta & Katsanis, 1995) suggest that brands that have strong customer commitments result in achieving competitive edge. With the ever-changing environment and high competition in the market, companies developp differ develo different ent strate strategie giess to sus sustai tainn in mar market ket.. Specif Specifical ically, ly, the brand brand loyal loyal customer may be willing to pay premium price when they found exclusive value and strong association with a brand over the competitor’s product. This strong association and superior value may come from high brand credibility in terms of trust and expertise. Moreover, the brand loyalty reduces the operating cost of firms as well as generates the referral business that increases the overall firm’s profitability. Currently, brand loyalty has become a most important point of study for marketing researchers and practitioners. Many of past studies suggested that the brand loyal customer spend more than none-loyal customer does. According to Dekimpe et al., (1997), loyal customers and competent brands are basic elements to retain the customers and to get sustained competitive edge. Brand loyalty is a good way to estimate the customer repurchase pattern of a particular product and leads to greater market share when same brand purchase on repeat basis. Among many factors that influence the brand loyalty but some have significant
impact on the brand loyalty are brand credibility, perceived quality and brand name. Many firms increase the profit and capture the huge market share just because of brand loyalty. Companies who want to get competitive advantage and differentiate their offerings always try to recognize the perception of customers, because on these perceptions firm can get customers’ trust and commitment and make them loyal (Ganesh et al., 2000). For any company it is very important to satisfy its customers with products live up to their expectations (Meakings, 2003). Customer satisfaction is seen as tool that would
7 enhance the company’s sales as well as reputation. To improve brand loyalty, it is vital to increase satisfied customers. Communication is the key to derive feedback from the customers and capture their views, both positive and negative, which makes the company understand what changes to implement. In addition, companies need to find effective ways to reach customers and their needs. With happy customers comes loyal customers and with loyal customers any company can expect increase in their future sales. There are whole departments that are based on customer satisfaction services to boost brand loyalty amongst a mongst customers. customers. Several researchers suggest that there are several determinants responsible for the brand loyalty of customers. Some Some of the key determinants of brand loyalty are: 1.4.1 Customer Satisfaction Satisfaction
According Accord ing to Aaker (1991) custom customer er satisfaction satisfaction is a key determinant determinant to every level of brand loyalty. Satisfaction is often thought to affect the likelihood of repurchasing or reusing the service of a provider. Kotler (1994) importantly stated that the key to customer custo mer retention retention is custo customer mer satisfactio satisfaction. n. There is much theoretical theoretical and empirical evidence that shows the link between satisfaction, customer retention and customer loyalty. Contrarily a study found that satisfied customer might switch to other brands but loyal customer would have a long term relationship with the company (Jones & Sasser, 1995). Satisfaction is also considered as a function of brand loyalty therefore satisfied customer due to repeat purchase contributes in the profitability and sales of the
company (Bowen & Chen, 2001). It has also been found in several studies that customer commitment also plays a mediating role between customer evaluation of the company and their long term relationship with the company (Fullerton, 2003; Zins, 2001).It is believed that satisfied customers not only stay with the companies for a longer period but they are not price sensitive (Grace &O’cass, 2005). Several studies have empirically demonstrated that satisfaction plays a significant role in brand loyalty (Dimitriades, 2006; Hansemark & Albinsson, 2004).The focus of companies is on customer satisfaction as it leads to increase in the market share and retention of cust custom omer erss (D (Dim imit itria riade des, s, 2006 2006;; Ha Hans nsem emark ark & Al Albi bins nsso son, n, 2004 2004). ). Ot Othe hers rs whil whilee validating the relationship of customer satisfaction and brand loyalty also maintained
8 that a satis satisfied fied customer customer will contin continue ue to purch purchase ase the brand, brand, and in long run he will become a habitual buyer of the brand (Kuikka (Kuikka & Laukkanen, 2012) 1.4.2 Perceived Quality
Anderson et al., (1994) noted that quality as a significant predictor of customer satisfaction and that this relationship, over the long term, was an important predictor of superior economic returns through repeat sales. Zeithaml (1988) illustrated that perceived quality is different from actual quality in the way that consumer perceived qu quali ality ty is an abst abstra ract ct idea idea infl influe uenc nced ed by cons consum umer er at atti titu tude dess and and cons consum umer ers’ s’ environment and added that perceived quality is the judgment of consumer toward on superiority or excellence of a product. Perceived quality is a consumer’s cognitive judgment on the superiority of a brand in fulfilling consumers’ expectations and as mentioned mentio ned above perceived quality is often seen as a prerequisi prerequisite te to satisfactio satisfactionn and brand loyalty (Oliver, 1999).Moreover, Evidence from prior studies has indicated that there is a positive and direct relationship between perceived quality and customer satisfaction (Ha et al., 2011; Parasuraman, et al., 1994). 1.4.3 Reliability
In different words, trust and commitment should be linked, because trust is significant
in rel relati ationa onall exc exchan hanges ges and com commit mitmen mentt is als alsoo set asi aside de for such such appreci appreciate atedd relationships. Reliability leads to Brand trust which is the willingness of the customer to depend on the ability of the brand to perform its stated function (Morgan and Hunt, 1994) 199 4) dis discov cover er that that tru trust st lea leads ds to com commit mitmen mentt in busin business ess-to -to-bu -busin siness ess relati relationa onall interactions. Trusted brands should be purchased more frequently and should suggest a superior degree of attitudinal commitment. Therefore reliability leads to brand loyalty loy alty or obl obliga igatio tionn bec becaus ausee trust trust dev develo elops ps switch switch ove overr relatio relationsh nships ips tha thatt are extremely valued (Morgan & Hunt, 1994). 1.4.4 Brand Image
Bran Brandd im imag agee is a cons consum umer er’s ’s perc percep epti tion on abou aboutt bran brand’ d’ss at atti titu tude des, s, bene benefi fits ts and and attributes (Keller, 1993). Feelings and attitudes toward an object or person are also associated with a brand. All marketing programs and strategies are pivoted around brand and brand image (Roth, 1995). According to Keller (1993), the image of a brand is customers’ perceptions of the brand as reflected by the brand associations held in consumers’ memory. Image is considered to influence customers’ minds as a
9 result of combined effect of physical evidence, word of mouth and their actual experiences with the goods and services (Andreassen & Lindestad, 1998). Consumers use brand image to relate their needs and wants and differentiate between competing brands; which helps them in buying a particular brand. Thus a brand image helps consumer in brand-differentiation and reasons to purchase a brand or develops a positive attitude towards brand and extension extension (Aaker & Equity, 1991) 1991) 1.5 Research methodology
Methodology refers the steps that will be adopted in this study. The more systematic method gives the more actual results for the study. The method for this study includes research plan and design, description of sample, data collection procedure and data analysis plan. The methodology used for this research is listed below: 1.5.1 Research Methodology
In the study, selection of topic is made based on knowledge, observation and interest. Secondly, theories and literatures have been searched to support the research. Thirdly,
problem and the research question have been developed developed and research method has been selected accordingly. Afterward, data is collected as per the planned method. After data is collected analysis is made and conclusions are drawn accordingly. The study is focused on filling research gap. To address research objectives descriptive research design is selected. Data collection contains primary data which is collected through self-administered questionnaire .Collected Data is presented in a bar diagram, charts and tables and analyzed using quantitative data analysis. Descriptive statistic is used. 1.5.2 Population and Sampling
Population of the study includes all the Xiaomi phone users of Bhaktapur Valley. The researchh is condu researc conducted cted by tak taking ing the sa sample mple size ooff 30 from to total tal population population as per the research objective. The participants are selected using non-probability sampling method. Indeed, research report is based on convenience sampling.
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Primary source of data is used to con conduct duct the research study. Under primary source, self-administered questionnaire is distributed to sample. Basically, primary data is used to collect the relevant information for analyzing the brand loyalty of customers. 1.5.4 Data Collection Procedure
In order to attain research, aim and objectives, primary data is used. Under Under primary source, self-administered questionnaire is used where each respondent respondent is requested to respond to same sort of questions regarding the brand loyalty for Xiaomi phone. 1.5.5 Data Processing Procedure
At firs first,t, col collect lected ed dat dataa are edi edited ted to ens ensure ure accuracy accuracy,, unifor uniformit mity, y, consis consisten tency. cy. Secondly, Secon dly, coding and data classificati classification on are done accordingly. accordingly. Then, Then, classified classified data
are tabulated and summarized. Afterward, these data are presented in graphs and charts. The appropriate data is converted into tabular and graphical form with the help of MS Excel. Pie-charts and bar diagram shall be designed on the basis of data as per required. 1.5.6 Data Analysis Tools and Technique
Data is analyzed by using quantitative research measures. Descriptive statistic is used for addressing first research objectives. Similarly, collected data are presented in tabular form. To make report simple simple and easily und understandable, erstandable, charts and diagram is used. The appropriate data is converted into tabular and graphical form with the help of MS Excel. Pie-charts and bar diagram shall be designed on the basis of data as per required. To fulfill fulfill res researc earchh obj object ective ive indepe independe ndent nt var variab iable le such such as custom customer er satisf satisfacti action, on, perceived quality, brand image and reliability is taken accordingly. Similarly, Likert scale is used to measure responses regarding brand loyalty for Xiaomi phone. 1.6 Limitations of the Study
The research encompasses following limitations;
Difficult to generalize since non-probability sampling is used.
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Questi Que stionn onnaire aire is dis distri tribut buted ed bas based ed on conven convenien ience. ce. So, dif difficu ficult lt to produce accurate result.
Simple statistical tools are used to analyze the data.
Less number of sample and population size may not result in accuracy.
1.7 Chapter Scheme
This report is divided into three chapters. They are classified below: Chapte Cha pter: r: I
Introduction include general background, purpose of the
stud study, y, sign signif ific ican ance ce of the the st stud udy, y, Li Lite tera ratu ture re revi review ew,, Rese Resear arch ch methodology, Limitation of the study, Chapter scheme.
Chapter Chap ter II Data Presentat Presentation ion and analysis analysis
includes Demographic
profile of respondents, data presentation, Descriptive analysis, major findings and discussions.
Cha Ch apte pter
III
Conclu nclussion ions
and
Act Actio ion n
Impli mpliccatio ions ns
include
conclusions and action implications of the study.
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CHAPTER II: DATA PRESENTATIONAND PRESENTATIONAND ANLYSIS
In this chapter, analysis of the collected data and findings of the study are discussed. The descriptive information and statistical analysis produced by the collected survey
data are also shown shown.. This chapt chapter er includes includes the detai detailed led analysis of the data collec collected ted from different sources regarding the topic “study on brand loyalty of customers for Xiaomi phone” The data are presented in the tabular, graphical and descriptive form. 2.1 Respondents’ Profile
Under respondent profile, demographics features of the respondents were gathered from the first few questions of the questionnaire. The purpose of this measure is to know the level of brand loyalty based on different demographic variable such as age and gender. The collected data are exhibited in the tables below. 2.1.1 Gender of the Respondents
This section includes the respondents as per their gender that use Xiaomi phone and is considered to know which gender use Xiaomi phone more. The data can be further presented in the table below. Table 1 Gender of r espondents espondents Gend Ge nder er
No of re resp spon onde dent ntss
Perc Percen enta tage ge
Male
20
67
Female
10
33
Total
30
100
Source: Field Field survey, 2021
Thee in Th info form rmat atio ionn pres presen ente tedd in the the abov abovee ta tabl blee 1 show showss th that at out out of th thee to tota tall 30respondents 20 are male and 10 are female which is equivalent to 67 percent and 33 percent of the sample taken respectively. Similarly, it can also be represented in the chart below:
13 Male
female
37%
63%
Figure 1 : Gender of respondent
Out of the total respondents 67 percent are male and the rest 33percent are female. 2.1.2 Age group of the Respondent
This section includes the respondent as per their age group. It shows the level of brand loyalty of customers for Xiaomi phone based on age. This table represents the age group of the respondents. Table 2 Age of the respondent Age group
No of respondents
Percentage
Below 20 20-30 30-40
8 6 12
26.7 20 40
Above 40
430
1130.03
Total respondents Source: Field survey, 2021
The information presented in the above table 2 shows that out of 30respondents, 8 respondents belong to the below 20 age group,6 respondents belong to 20-30 age group, 12respondents belong to 30-40 age group and 6 respondents belong to above 40 age group.
Similarly, it can also be represented in the chart below:
14
Pie chart showing the age of respondents 13.3 26.7
Below 20 20-30 30-40 Above 40
40
20
Figure 2 : Age of respondents
Out of the total respondents most of the respondents 40percent of the respondent are of age group 30-40, 26.7 percent of the respondents are of age below 20, 13.3 percent of the respondents are of age above 40 and 40percent are of age group 30-40. 2.1.3 Models of Xiaomi phone used by Respondents Respondents
This section includes the model of the Xiaomi phone used by the respondents. re spondents. Table 3 Mo de l s of X ia om i ph on e us e d by r e s p on de nt s Model
No of respondents
Percentage
Note 6
1
3.33
Note 7
7
23.3
Note 7 pro
3
10
Note 8
6
20
Note 8 pro
8
26.67
10 T
5
16.6
Total respondents 30 Source: Field survey, 2021
100
15
Pie chart showing models models of phon phones es us used ed by res respondents pondents 3.33 16.6 23.3
26.67 10
Note 6 Note 7 Note 7 pro Note 8 Note 8 pro Note 10T Note 9 pro max
20
The above table 3 shows that among the 30respondents, most of them (8) respondents use Note 8 pro and least of the respondents (1) use Note 6. Figure 3 : Models of Xiaomi phone phone used by respondents
Out of the total 30 respondents, most of the respondents (26.67 percent) use Note 8pro model whereas only 3.33 percent of respondents use Note 6 model. 2.2 Descriptive Analysis 2.2.1 Reasons for using Xiaomi phone
This section includes respondent’s reason for using Xiaomi phone .Out of the total respondents most respondents choose quality as a reason for using Xiaomi phone whereas only few respondents choose ease of use as a reason for choosing phone .it is shown in the table below. Table 4 Rea R ea so ns f or us in g Xi ao m i ph on e Reasons
No of respondents
Quality Reliability Value Operational convenience
20 7 1 2
Total
30
Source: Field Field survey, 2021
16 The information presented in the above table 4 shows that out of the total 30 respondents 20 respondents prefer xiaomi for its quality, 7 respondents prefer xiaomi for its reliability, 2 respondents prefer it for its operational convenience and rest prefer it for its value. Similarly, this data can be represented in figure as:
3
2
6 19
Quality Reliability value Operational convenience Figure 4 : Reasons for using Xiaomi phone
Thee abov Th abovee pi piee-ch char artt show showss that majority of people prefer xiaomi for its quality whereas only a few prefer it for its value. 2.2.2 Customers Satisfaction on Product Performance
Customer’s satisfaction on product performance is calculated by dividing the product into four categories which includes its quality, reliability, value and convenience which is calculated using the five-point scale as below. Table 5 Customer satisfaction on product performance Statement
Poor
Fair
Good
Very
Excellent
Total
Average
Outcome
Quality
3
3
1good 4 9
116
3Score .8 6
Very good
Reliability
1
7
12
9
116
3.86
Very good
1
5
16
6
112
3.73
Very good
Value
1
17 Operational 8 convenience
6
11
5
73
2.43
Fair
Afterr sale Afte saless 14 service
8
5
3
57
1.9
Fair
3.156
Good
Total average Source: Field survey, 2021
The information presented in the above table 5 shows that the average score of the customer satisfaction on product performance is 3.156 which is good. Average response of the respondents is also represented in the graph below: Average score on product performance 4 3 2 1
Average score
0
y e e c e t y c u l i t i n i l l a e i V a v i n i e r v q u l i a b s o n l e s R e c a s a l r e n t o f i A r a t O p e e Figure 5 : Average score on product performance performance
Out of the total respondents most of the respondents rated the product performance as very good in terms of its quality, reliability, value and convenience whereas only one cust cu stom omer er ra rate tedd the the prod produc uctt perf perfor orma manc ncee as poor poor in te term rmss of it itss oper operat atio iona nall
convenience and after sales service. Therefore, the overall response of the Xiaomi users in product performance is good which adds value to brand loyalty. 2.2.3 Perceived Brand Quality
Perceived brand quality is one of the strong determinants of brand loyalty. Brand quality is defined as the recognition of product quality, which has an influence on consumer consu mer purchasin purchasingg behavior. behavior. In this research perceived brand quali quality ty is measured measured
18 by using 5-point Likert scale where 5 refers to strongly agree and 1 refers to strongly disagree. It can also be presented in the table below. Table 6 Perceived brand quality of Xiaomi phone phone S. N
Statements
SD (1)
1
Xiaomi brand offers products with very good quality 2 Xiaomi brand offers durable products with consistent quality 1 3 Xiaomi brand offers products with excellent features Total average
DA(2)
N(3)
A(4)
SA (5)
Total
Average
Outcome
1
5
10
14
127
4.23
Agree
5
10
15
130
4.33
Agree
13
14
127
4.23
Agree
4.26
Agree
2
Source: Field Field survey, 2021
In the above table (SD) refers to strongly disagree,(D) refers to disagree, (N) refers to neutral, (A) refers to agree and (SA) refers to strongly agree. The information
presented in the above table 6 shows that the total average score of the customer’s response is 4.26 on Likert scale which refers to agree therefore, in average customer’s response on perceived brand quality of Xiaomi phone is good. Similarly it is also presented in the graph below:
Average score on perceived brand quality 4.34 4.32 4.3 4.28 4.26
average
4.24 4.22 4.2 4.18
1st statement
2nd statement
3rd statement
19
Figure 6 : Perceived brand quality of Xiaomi phone phone
As presented in the figure, Out of the total respondents most of the respondents strongly agreed with the second statements regarding perceived brand quality of Xiaomi phone whereas only few respondents agreed with the first and third statements regarding brand quality. 2.2.4 Reliability
User’s response regarding the reliability of Xiaomi phone is measured by using 5 point Likert scale which is represented in the table below: Table 7 Reliability of Xiaomi phone SN
Statement
1
Xiaomi phones are are trou troubl blee fr free ee and safe in terms of da data ta loss loss and and
SD (1)
D(2)
N(3)
A(4)
SA (5)
Total
Average
Outcome
15
15
135
4 .5
Strongly agree
2
3
usage Xiaomi phones are always reliable and valuable Xiaomi brand alwa al ways ys deli delive vers rs what it promise
1
1
15
14
133
4.43
Agree
3
14
12
127
4.23
Agree
4.386
Agree
Total average
Source: Field Field survey, 2021
In the above table 7, (SD) refers to strongly disagree,(D) refers to disagree, (N) refers to neutral, (A) refers to agree and (SA) refers to strongly agree. Average score of the respondents on reliability of Xiaomi phone is 4.386 on likert scale which refers to agree, therefore in average, total response of the respondents on reliability of Xiaomi phone is good. Similarly, it is also represented in the graph below:
20 average score on reliability 4.55 4.5 4.45 4.4
4.35 4.3 4.25 4.2 4.15 4.1 4.05
1
2
3
Figure 7: Reliability of Xiaomi phone
As represented in the figure, in average, out of the total respondents, most of the respondent agreed with the first statement regarding the reliability of Xiaomi phone
whereas whe reas very few of the res respon ponden dentt agr agreed eed wit withh the thi third rd statem statement ent reg regard arding ing reliability. 2.2.5 Brand image
Brand image is also one of the major factors that determine the brand loyalty of customers. According to analyzed data out of the total respondents most of the respondents agreed that the brand image of the Xiaomi phone is good whereas only few respondents disagreed with the statements representing brand image of Xiaomi phone. Response of the users can also be represented in the following table: Table8 Br B r an d i ma ge of Xi ao m i ph on e
S N
Statement
1
I think Xiaomi brand is well known and
SD(1)
D(2)
N(3)
A(4)
SA (5)
Tota To tall
Ave Avera rage ge Outc Outcom omee
7
11
12
125
4.167
Agree
prestigious
21 2
3
4
I think Xiaomi brand has a reputation for high quality I think Xiaomi brand is number one among smartphone brands Xiaomi brand is trustworthy
2
2
3
10
15
128
4.267
Agree
3
5
8
12
115
3.83
Agree
8
18
126
4.2
Agree
4
Total average Source: Field survey, 2021
4.116
Agree
In the above table 8, (SD) refers to strongly disagree,(D) refers to disagree, (N) refers to neutral, (A) refers to agree and (SA) refers to strongly agree .The average score of the respondents on brand image is 4.116 on Likert scale which refers to agree. Therefore, the average response of the respondents which we have calculated from the above data shows that the brand image of xiaomi phones is up to the mark. Hence, customers prefer the phone. Similarly it can also be presented in the graph below: Average score on brand image of Xiaomi phone 4.4 4.3 4.2 4.1
Average
4 3.9 3.8 3.7 3.6
1s 1stt state tateme ment nt
2n 2nd d stat... tat...
3rd 3rd state tateme ment nt 4t 4th h state tateme ment nt
Figure 8: Average score on brand image image of Xiaomi phone
22 As represented in the figure, in average, most of the respondents agreed with the se seco cond nd st stat atem emen entt reg regard ardin ingg bran brandd im imag agee of Xi Xiao aomi mi phon phonee wh wher erea eass very very few respondents agreed to the third statement regarding brand image of Xiaomi phone. 2.2.6 Brand loyalty of the Respondents
The major objective of this research is to analyze whether the respondents are loyal to th thee br bran andd or not. not. Br Bran andd loya loyalt ltyy is a depe depend nden entt vari variab able le wh whic ichh depe depend ndss upon upon
independe indepe ndent nt var variab iables les such such as custom customer er sat satisf isfacti action on,, percei perceived ved bra brand nd qua qualit lity, y, reliability and brand image .so after calculating the average outcome of customer satisfaction, reliability, perceived brand quality and brand image, brand loyalty is calculated by analyzing the level of brand commitment of respondents. Similarly 5 point Likert scale is used to measure the respondent’s response on several statements regarding their loyalty for Xiaomi phone.
Measuring brand loyalty using Likert scale :
In this section, brand loyalty of customers is measured using the standard 5 point Likert scale. Out of the total respondents most of the respondents agreed that they would be faithful to the Xiaomi brand whereas only a few respondents failed to agree upon the statements regarding brand loyalty. Responses of the respondents can also be represented in the table below: Table 9 Mee as ur in g br an d lo y al t y u si ng L ik e r t s ca le M SN
Statement
1
I will recommend this brand to someone who seeks my advice.
2
I don’t bother looking at other brand this brand is goo oodd enou enough gh fo for r me.
SD (1)
D(2)
N(3)
A(4)
SA (5)
Total
Average
Outcome
3
14
13
130
4.33
Agree
13
17
137
4.567
Strongly agree
23 3
I would choose Xiaomi brand even if the the alte altern rnat ativ ivee brands has the same functionality.
2
14
14
130
4.33
Agree
4
5. 6.
Based
on
my 1
experience I would like to purchase this phone again I consider myself loyal to Xiaomi brand. Xiaomi brand is my first first cho choice ice amo among ng smartphone brands
2
2
13
12
120
4
Agree
1
2
14
13
129
4.3
Agree
3
12
14
128
4.267
Agree
129.2
4.304
Agree
Total average Source: Field Field survey, 2021
In the above table 9, (SD) refers to strongly disagree,(D) refers to disagree, (N) refers to neutral, (A) refers to agree and (SA) refers to strongly agree. As represented in the table, the total average score of brand loyalty of respondents is 4.304 which lies between strongly agrees and agrees. Therefore, in overall average brand loyalty of customers for Xiaomi phone is good. Similarly, it can also be presented in the graph below: Average score on brand loyalty 4.7 4.6 4.5 4.4 4.3 4.2
Average
4.1 4 3.9 3.8 3.7
1st 2nd 3rd 4th 5th 6th statement statement statement statement statement statement Figure 9 : Average score on brand loyalty of respondents respondents
24 As represented in the graph above, in average, most of the respondents agreed with
the second statement regarding the brand loyalty whereas few agreed with the fourth statement. 2.2.7 Drawbacks and Brand Commitment
In this section open ended question is used to analyze user’s views regarding the drawbacks of Xiaomi phone. This section is used to find out what the customers think regarding the downsides of the phone. The customer’s level of commitment that customers have for the Xiaomi brand despite of such drawbacks is measured using simple category question. Collected data regarding the drawbacks of Xiaomi phone are represented in the table below: Table 10 Res R es po nd en t’ s v ie ws on dr aw ba c k s o f Xi ao m i p ho ne S.N
Drawback
1
Over dependence on 5 third par artty apps for multimedia
2
Expensive
3
Mi share doesn’t work 8 properly at times
4
LeBhaktapur ss aauuthorized ddeealer 5 in Good apps are not free 2
5
Number of Respondents
10
Source: Field Field survey, 2021
In the above table 10, out of the total 30 respondents, majority of the respondents (10) pointed out the drawback that the phones are a bit expensive. Out of the total respondents 5 respondents pointed out that there is over dependence on third party apps for multimedia, 8 respondents pointed out that Mi share doesn’t work properly at
25 times , 5 respondents said that there are less authorized dealers of xiaomi phones in Bhaktapur and 2 respondents pointed out that good apps are a re not free. Similarly, it can also be presented in the figure below: 12 10 8 6 4 2 0
Figure 10 : Respondent’s views on drawbacks drawbacks of Xiaomi phone
Out of the total respondents most of the respondents think that the major drawback of Xiaomi phone is its expensive product offerings whereas minority of respondent thinks that the major drawback of Xiaomi phone is unavailability of good Xiaomi for free. Similarly, user’s response regarding the level of brand commitment despite of above mentioned drawback is represented in the table below: Table 11 Res R es po ns e on br a nd c om mi t me nt Response
Number of respondents
Yes
19
No
11
Total
30
26 In the above table 11, out of the total 30 respondents, 19 responded that they would still be brand commited despite all the drawbacks whereas 11 responded that they wouldn’t be commited to the brand due to all the drawbacks. Similarly, above data is also represented in the chart below: y es
no
37%
63%
Figure 11 : Response on brand commitment
Out of total respondents 63 percent of the respondents would still remain committed to Xiaomi brand despite of above-mentioned drawbacks whereas 37 percent of respondents would not remain committed to Xiaomi brand despite of such drawbacks. Therefore, in overall brand loyalty of customers for Xiaomi phone is good. 2.3 Findings & Discussion
On the basis of previous chapter data presentatio presentationn and analysis, analysis, some important important and major findings can be drawn; the major findings of this research are summarized as below: 1. Age Age gr grou oupp of 3030-40 40 years years incl includ udes es the majo majori rity ty of Xi Xiao aomi mi phone phone users users as compared to other age group. In fact, age group of 30-40 includes 40percent of the total users. Whereas, age group of above 40 consists of minority of Xiaomi phone users representing 13.3percent of the total respondents .One of the reason for this conclusion is the fact that people above 40 are less inclined
toward technology and its usage whereas people between 30-40 years are
27 conscious regarding spending so they purchase goods that provide value for money. 2. Numb Number er of ma male le use users rs usi using ng Xia Xiaom omii phon phonee is more more as compa compare redd to fem femal alee users. In fact, 20 male respondents and 10 female respondents are using Xiaomi phone which represents 67 percent percent and 33percent of total respondents. 3. Most Most of the users users use Not Notee 8pro 8promod model el of Xiaomi Xiaomi phone, phone, where whereas as only 1 user uses 6 model of Xiaomi phone. 4. Most of tthe he resp responde ondent’s nt’s us usee Xiaomi phone phone bbecause ecause ooff its qual quality ity whereas whereas very few of the respondents respondents use Xiaomi phon phonee because because of the value Xiaomi phone provides. 5. Most Most of the the user userss of Xiao Xiaomi mi phon phonee ar aree hi high ghly ly sati satisf sfie iedd wi with th th thee over overal alll performance of Xiaomi phone including its quality and reliability whereas users level of satisfaction on operational convenience and after sales service of Xiaomi phone is fair. 6. Most Most of the respo responde ndents nts agre agreed ed with the state statemen ments ts regar regardin dingg the per perceiv ceived ed brand quality of Xiaomi phone, therefore perceived brand quality of Xiaomi phone is good. 7. Most of th thee respo respondent ndentss agreed wi with th the sta statement tementss regarding regarding brand brand image and and reliability of Xiaomi phone. Therefore, Xiaomi phone is considered as reliable smartphone with good brand image. 8. In Most of the respon responden dents ts view the maj major or draw drawbac backk of Xiaomi Xiaomi phone phone is its expensive product offerings whereas, in minority of respondents view major drawback of Xiaomi phone is unavailability of good apps for free. However, 63percent of Xiaomi phone users will still remain committed to Xiaomi brand despite of such drawbacks whereas 37percent users will not remain committed to Xiaomi brand because of such drawbacks. 9. Most ooff the res respond pondent ent agre agreed ed with tthe he state statements ments regardi regarding ng the brand brand loyalty loyalty of Xiaomi phone users with average score of 4.304 on Likert scale. Therefore,
overall finding of the research shows that the brand loyalty of users for Xiaomi phone is good.
28
CHAPTER III: CONCLUSION AND ACTION IMPLICATIONS 3.1 Conclusion
The primary objective of this research is to explore the level of brand loyalty of customers for Xiaomi phone to assess the factors that adds value to brand loyalty and to exam examin inee the the pote potent ntia iall strat strateg egies ies for for Xi Xiao aomi mi phon phonee succe success ss in futu future re .a .afte fter r conducting this research I have found that Nepalese brand loyalty level for Xiaomi phone is good. People are satisfied with the product performance, quality, brand image and reliability of Xiaomi phone. Majority of users think that the major drawback of Xiaomi brand is its expensive product offerings, but despite of such drawbacks more than half of total population would still remain committed to Xiaomi brand. Based on the research analysis respondents between ages 30-40 uses Xiaomi more. Similarly, users of the Note 8 pro model are more than other models which shows custom cus tomers ers ten tenden dency cy to pur purcha chase se the rec recent ent mo model delss of Xiaomi Xiaomi phone phone .Likew .Likewise ise according to the analyzed data it has been found that customers are satisfied with the product performance of Xiaomi phone which adds positive value on brand loyalty similarly out of total respondents majority of the respondents are satisfied with the reliability of the Xiaomi phone and would remain committed to Xiaomi brand despite of several drawbacks drawbacks as a result of its qualit quality, y, reliabi reliability lity , performance performance and good brand image 3.2 Action Implications
Brand loyalty is a repeat purchasing behavior of consumer which occurs when they are satisfied with the product performance and reliability .Brand loyalty is one of the most important factor for long term existence and growth of an organization .with growing competition and substitutes of Xiaomi brand, retaining the customers and making them loyal to Xiaomi brand is major issue for Xiaomi Inc. Therefore every business has to think about their long term growth and prosperity by making their customers custo mers loyal to their brand. Understan Understanding ding views, critics, current pos position ition and potential strategy is the trait that keeps firm on top of all with regard to other competitors. Thus, the study poses several significances. They are as follows:
29 1. It work workss as a guid guidel elin inee for for the the rese resear arch cher erss to prov provid idee conc concre rete te path path fo for r conducting future researches 2. This st study udy m may ay help tthe he reade readerr or business business oorganiz rganization ation to adopt adopt strategi strategies es to make customers loyal to their brand. 3. The study study ass assist istss the conce concerne rnedd authorit authorities ies to have idea idea on potent potential ial of the business firm.
30
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31 Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of marketing , 66 (1), (1), 15-37.
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APPENDIX
Dear Respondent, I am a BBA student of Nepal Commerce Campus, New Baneshwor, Kathmnadu. I am going to conduct survey research on "Study on brand loyalty of customers for Xiaomi phone". So, I request you to take a few minutes to provide the variable information regarding your loyalty particularly on Xiaomi phone. I assure you, that all your response will be kept confidential. Your opinion will be strictly used only for research
study. Sincerely, SagarKhadka
Please tick ‘√’to the most appropriate option going through given questions and options. Part A) Demographic Information 1. Gender (a) male (b) Female
2. Age (a) Below 20 years (b) 20-30 years (c) 30-40 years (d) Above 40 years
33
3. Models of Xiaomi phone used by respondents (a) Note 6 (b) Note 7 (c)Note 7 pro
(d) Note 8 (e) Note 8pro (f) MI 10T (g)Note 9pro max Part B) Context Information 1. Select the reason for purchasing the Xiaomi phone? (a) Its quality (b) Brand image (c) Reliability
34
2. How well did this product (Xiaomi phone) perform? poor
Fair
Good
Very good
Excellent
Quality Reliability Value Operational convenience Afte fter sales service
Please rate the following statements on the scale of 1 to 5 ,where 1 refers to strongly disagree disag ree 2 refers to disag disagree, ree, 3 refe refers rs to nei neither ther agree agree or disagree,4 disagree,4 refers refers to agree and 5 refers to strongly agree.
35
3. Perceived Brand quality S.N
Statements
1
Xiaomi brand offers products with very good quality
2
Xiaomi brand offers du dura rabl blee prod produc ucts ts with with consistent quality
3
Xiaomi brand offers products with excellent features
Strongly
Agree( Neutral(3 Disagree(
Strongly
agree(5)
4)
disagree(1 )
)
2)
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