Impact of Product-Related and Social Factors on Purchase Intention of Smart-Phone Buyers in Nepal

Abstract

The paper examines the impact of product-related factors (price, quality, and country of origin, product feature) and social factors (social influence and compatibility) on the purchase intention of smart-phone buyers in the Kathmandu Valley, Nepal. Based on the primary data survey method, questionnaires were administered on 340 graduate students of seven business schools inside the Kathmandu Valley selected through a judgmental sampling technique. The results of the causal-comparative analysis, based on correlation and regression analyses, showed that among the considered independent variables, compatibility, social influence and product features would significantly influence the purchase intention of the smart-phone buyers, while price, quality and country of origin had no significant relationship with the purchase intention. However, all the independent variables were found to be positively correlated with the purchase intention of smart-phone buyers. The implication of findings is that the Nepali buyers are more likely to purchase smart-phones if they find attractive product features compatible with their needs and social sphere.

Keywords: Country of Origin, Compatibility, Purchase Intention, Price Quality, Social Influence