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CHAPTER I

INTRODUCTION

1.1 Background

Mobile phones aren't just a rich person's fashion today. It is transforming the
way thousands of people do business in a country where even landline phones were a
luxury a decade ago. As an essential element of daily life, the purchase of a mobile
phone is an important decision with a variety of mobile phone brands available to
choose from. Each mobile phone manufacturer consistently updates their offerings
with the latest technological updates and many customers have a preferred brand that
suits them or a brand they have become familiar with. Across the globe, even people
with low incomes are now adopting cellular phones as tools for enhancing their
business.

A brand is a name, term, design, symbol, or other feature that distinguishes an


organization or product from its rivals in the eyes of the customer (AMA, 2011).
Brands are used in business, marketing, and advertising. Name brands are sometimes
distinguished from generic or store brands. The practice of branding is thought to
have begun with the ancient Egyptians who were known to have engaged in livestock
branding as early as 2,700 BCE (Wheeler, 1946). Branding was used to differentiate
one person’s cattle from another's by means of a distinctive symbol burned into the
animal’s skin with a hot branding iron. If a person stole any of the cattle, anyone else
who saw the symbol could deduce the actual owner. However, the term has been
extended to mean a strategic personality for a product or company, so that ‘brand’
now suggests the values and promises that a consumer may perceive and buy into.
Over time, the practice of branding objects extended to a broader range of packaging
and goods offered for sale including oil, wine, cosmetics and fish sauce.

Branding is a set of marketing and communication methods that help to


distinguish a company or products from competitors, aiming to create a lasting
impression in the minds of customers. The key components that form a brand's
toolbox include a brand’s identity, brand communication (such as by logos and
trademarks), brand awareness, brand loyalty, and various branding (brand
management) strategies. Many companies believe that there is often little to
differentiate between several types of products in the 21st century, and therefore

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branding is one of a few remaining forms of product differentiation (Ghodeswar,
2008).

Communication has played a very important role in the life of human beings.
Communication is needed to contact each other. People who are very far away can be
contacted through communication. In the past, various forms of communication were
used. In ancient times, pigeons used to deliver messages from one person to another.
With the advent of time, new forms of communication were invented like telegraph,
telephone, etc. The mobile phone nowadays is a very useful means of communication
which is being used by each and almost every person in the modern world.

The most crucial issue for the marketers is to identify the needs of the
consumers. Only the identification of needs is of no value unless and until this is
transformed in to a meaningful and appropriate satisfier. For this whole process of
converting needs into actual satisfaction one needs to understand the complete make
up of consumer’s mind, and this process is known as consumer behavior. Let’s also
discuss some of the definitions of consumer behavior. According to Schiffman and
Kanuk “Consumer behavior encompasses all of the behaviors that consumers display
in searching for, purchasing, using, evaluating and disposing of products and services
that they expect will satisfy their needs”. Consumer behavior is the study of
consumers regarding what they buy, when do they buy, from where they buy, how
frequently they buy, and how they use certain products. But the study does not stop
here as it also goes further to study the post purchase and evaluations of the
consumers. So, it addresses all the issues related from pre-purchase to post purchase
behavior of the consumers. The study regarding consumer behavior can be divided
into two parts i.e. consumer buying dynamics and dynamics of business buyers
(Selvalakshmi and Kumar, 2015).

According to Oxford English Dictionary one of the earliest uses of word


"mobile" was in association with the Latin phrase "mobile vulgus", i.e. excitable
crowd. Today's mobile phones live up to these origins. Cell phone technology
introduces new senses of speed and connectivity to social life. If the fixed line
telephone has brought communication links into the workplace and homes, the
"mobile" puts them straight into the hands of numbers and varieties of individuals.

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The cellular telephone (commonly "mobile phone" or "cell phone" or "hand
phone") is a long-range, portable electronic device used for mobile communication. In
addition to the standard voice function of a telephone, current mobile phones can
support many additional services such as SMS for text messaging, email, packet
switching for access to the Internet, and MMS for sending and receiving photos and
video. Most current mobile phones connect to a cellular network of base stations (cell
sites), which is in turn interconnected to the public switched telephone network
(PSTN) (the exception is satellite phones. Cellular telephone is also defined as a type
of short-wave analog or digital telecommunication in which a subscriber has a
wireless connection from a mobile telephone to a relatively nearby transmitter. The
transmitter's span of coverage is called a cell. Generally, cellular telephone service is
available in urban areas and along major highways. As the cellular telephone user
moves from one cell or area of coverage to another, the telephone is effectively passed
on to the local cell transmitter. A cellular telephone is not to be confused with a
cordless telephone (which is simply a phone with a very short wireless connection to a
local phone outlet). A newer service similar to cellular is personal communications
services (PCS) (Heeks, 2008).

The global mobile phone industry is based on many different manufacturers


and operators. The industry is based on advanced technology and many of the
manufacturers are operating in different industries, where they use their technological
skills, distribution network, market knowledge and brand name. Four large
manufacturers of mobile phones are today dominating the global mobile phone
industry; Nokia, Sony Ericson, Samsung and Motorola. In addition to these
companies there are many manufacturers that operate globally and locally.

1.1.1 History

In ancient times people used pigeon, swan, eagle, horse, etc. for sending
message to others. In the 18th century, people used first mail coach to send the
information. This method took a large number of days to deliver the message. Later
the revolution in the science and technology had developed to a great extent. The
technological developments in the field of telecommunication have reached a new
height in recent times. These developments are aimed to provide the customers with
new services to meet various requirements based on their utilization for their benefit.
The most modern technologies are Global System for Mobile Communication (GSM),

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Code Division Multiple Access (CDMA), and Voice over Internet Protocol (VOIP),
Direct Internet Access Service (DIAS), Managed Leased Line Network (MLLN),
Multiprotocol Label Switching – Virtual Path Network (MPLS-VPN), etc. These
technologies had given many qualities of communication namely best quality, speed,
clarity, low tariff, etc. (Wallop, 2011).

The idea for cellular telephony originated in the US. The first cellular call and
the first call from a hand held cellular device also were placed in the US. The mobile
phone merges the landline telephony system with wireless communication. The
landline telephone was first patented in 1876. Mobile radio systems have been used
since the early 1900’s in the form of ship to shore radio, and were installed in some
police cars in Detroit starting in 1921. The blending of landline telephone and radio
communication came after the Second World War. The first commercially available
"mobile radiophone service" that allowed calls from fixed to mobile telephones was
offered in St. Louis in 1946. By 1964 there were 1.5 million mobile phone users in the
US.This was a non-cellular system that made relatively inefficient use of the radio
bandwidth. In addition, the telephones were large, energy intensive car-mounted
devices. In the drive to produce a more efficient mobile telephone system, researchers
W. Rae Young and Douglas Ring of Bell Labs developed the idea of cellular
telephony, in which geographical areas are divided into a mesh of cells, each with its
own cell tower. This allowed a far more efficient use of the radio spectrum and the
"cell" phones needed less power to send and receive a signal. The first installation was
in 1969 on the Amtrak Metroliner that traveled between New York City and
Washington. Four years later Martin Cooper of Motorola made the first cellular call
from a prototype handheld cell phone.

The world's first commercial automated cellular network was launched in


Japan by NTT in 1979, initially in the metropolitan area of Tokyo. On 6 March 1983,
the DynaTAc mobile phone launched on the first US 1G network by Ameritech. In
1991, the second generation (2G) cellular technology was launched in Finland
by Radiolinja on the GSM standard and ten years later, in 2001, the third generation
(3G) was launched in Japan by NTT DoCoMo on the WCDMA Standard.

The history of mobile phone usage in Nepal dates back to 1999 when NTC
started providing GSM mobile service from May 1999. Mobile phones have emerged
as an important means for communication in Nepal. Its role has been significant in the

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development of various industries of Nepal. Mobile phones were considered as means
of pleasure and luxury some years back, but today it has become the need of almost
all people in Nepal for business purposes, convenience as well as for maintaining
one's status in the society. At the beginning when NTC started its GSM mobile service
with post paid service then there were very few mobile phone users that also within
Kathmandu valley only. Later NTC started pre paid service and distributed more than
one lakh sim cards. It also improved its network services throughout the country
which increased the mobile users in Nepal. Queue were started to be seen outside
Nepal telecom's offices for sim card which showed the mobile phone popularity
across Nepal. With evolution of other mobile telecommunication service providers
like NCELL and UTL, today, almost every adult in Nepal possess a mobile phone of
and each individual's mobile phone varies in model and brand from the other's
(Hawkins, 2004).

Due to today’s up tight competition, developing a strong, positive image has


become crucial to the maintenance of lasting competitive advantage. In addition,
rapidly changing consumer needs and markets, place strong pressure to businesses to
sustain their brand image and keep their products and services up to date. Brand
image refers to the perception of a certain brand in the mind of the consumer when a
brand name is mentioned, whereas brand awareness measures the customer’s ability
to recognize the brand when seeing the brand name, logo, symbol, etc. Building up a
strong brand is not easy but if a brand could build a better image than its competitors’,
then it would enjoy a degree of protection. With high brand image, a business can
gain greater perception of the brand among customers, customer loyalty, high profit
margins, less negative attitude to price fluctuations and less vulnerability compared to
competitors (Ashhan, 2006).

To sum up, nowadays, brands are considered to be the key element when
developing relationships between companies and consumers. Brands are the key to
winning a position in the marketplace because they deliver unique benefits and build
deep connections with customers. In addition, young customers are the most critical,
though, very important group to take into consideration because customers can always
choose from where they buy. Consequently, they will buy from the manufacturer that
provides the most value (Kulkarni, 2013).

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Measures of brand preference attempt to quantify the impact of marketing
activities in the hearts and minds of customers and potential customers. Higher brand
preference usually indicates more revenues (sales) and profit, also making it an
indicator of company financial performance.

A model is presented which quantifies the brand preferences motivating


consumer purchases from market displays. This method of studying brand preference
uses the market display as a laboratory for conducting controlled experiments. Price,
quality of display space, point-of-sale merchandising, and display allocation are
controlled to isolate the effect of brand preference upon consumer purchases.
Quantitative estimates of the percentage of brand-motivated sales and the proportion
of brand-motivated customers with allegiance to each brand are developed. The effect
of price differentials upon the brand-preference pattern is also investigated. The
model is applied to fluid milk sales through markets in a market.

1.2 Problem Statement

Mobile brands imitate the name, logo, package design or even the products.
This is not a rare phenomenon, but a widespread occurrence in the current mobile
market. The imitation of mobiles can vary across different cases. Some mobile brands
are very transparent in their actions, while others are more subtle when it comes to
imitating the competition. However, mobile brands generally share a common goal,
which is to attempt to free-ride on positive brand-associations build by the copied
brand, often a brand leader, such as product quality. As imitations are often priced
below the leader brands, leader brands are at risk of suffering loss of sales or having
their brand equity damaged. Understanding young customers' thought process when
dealing with imitation would point us in the right direction to comprehend how brand
imitation functions and which factors are of influence. Previous studies have covered
various dimensions in the field of behavior and responses of consumers towards
different brands of mobiles and have explored the factors that influence consumer
evaluation of mobile phones. However, to the best of my knowledge, only a few
researches have been conducted on how brands affect the assessment of a competitor
when consumer behavior is present. It has been shown that brands create greater
resistance to persuasion tactics from competitors. The choice of the manufacture of
mobiles is affected by many factors, namely dual SIM, MP3 player, more storage,
cameras, charge in battery and Bluetooth, Wi-Fi, handy one, less weight, slim model,

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price reduction, attractive colours, various models, audio and video system, service
facilities, spare parts availability and so on. In this context, this study has been
undertaken by the researcher to examine brands of mobiles that the consumers use.
The present study is considered relevant as the study has its own significance in the
recent technological era.

This study is pertaining to find out the customers’ preference in buying


different brands of mobiles in the study area. The study on customers' preference
helps to know who the consumers are, what they want, how they react to the brands.
So, the study has been justified to study the customers’ responses on different brands
of mobiles in Birendranagar of Surkhet.

1.3 Objectives

The general objective of the study is to explore the response of customers on


different mobiles in Birendranagar of Surkhet. The specific objectives of this study
are as follows:

i. To find out the influence of brands of mobiles on customers' preference.

ii. To identify the influence of price of mobiles on customers' preference.

iii. To find out the influence of lifestyle on customers' preference on buying mobiles.

iv. To identify the influence of function of the mobile phones on customers'


preference.

v. To analyze the influence of availability of the mobile phones on customers'


preference.

1.4 Rationale

This study aims to understand consumer brand preference developed from knowledge
and experience of the brand, and, in turn, its impact on future purchasing decisions.
To achieve this aim, the scope of the study is to identify the different brand factors
constituting consumer knowledge; that is, it focus on the brand added value at the
consumer level. In addition, it focuses on consumer descriptions of brand experiences,
presenting their response to various brand elements. Furthermore, the study focuses
on high-tech product, mobile phones, in developing countries as a promising market
for high-tech brands.

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1.5 Report Structure

This study is organized within the following chapters:

Chapter I: Introduction

The first chapter includes the background of the study, problem statement,
objectives, rationale and report structure.

Chapter II: Related Literature Review

The second chapter includes the conceptual review, review of previous works
and research gap.
Chapter III: Methods

The third chapter consists of the methodologies which will be applied to carry
out the study. This chapter will include type of research, population and sample, types
of data, data collection procedure, instruments, techniques of analysis and limitations.
Chapter IV: Results and Findings
This chapter will include presentation of data in tables and figures and their
analysis and the major findings.
Chapter V: Discussion and Conclusion
The last chapter will include the discussion and conclusion of the study.
2. Literature Review
Consumers' relationships with brands are not all that different than
relationships with people. For marketers, understanding the difference between the
two kinds of relationships is essential to making sure to know how to deal with
customers. Marketers who realize this will be in a better position to retain customers
and improve the perceptions of consumers who are unhappy with a brand’s service or
product, according to researchers who recently studied the phenomenon. Some
customers are linked with the brand so tightly that they never choose the brands other
than their choice. So, brands have impacts on customer preference.

ii. Price of the Product

There is a direct relation between price and brand value. If there are two
identical items in a store but one is more expensive than the other, the first thing one
does is look for the reasoning behind it, and a lot of the time there are differences

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between the products. It doesn’t mean the more expensive one always wins the sale.
There are plenty of factors that go into a purchase decision, and price is only one of
them. If a product much higher than the other, one likes to take the one which is less
expensive. Thus, customer preference also depends upon the price of the product.

iii. Lifestyle

Lifestyle is an important aspect when looking at consumer choices. Just


because there may be two people with similar age and income, does not mean they’re
likely to purchase the same products. Life style is one of the key elements to how and
why people buy certain products and services. It affects the quality and quantity of
what people buy. The rich have more money to spend on higher quality products.
They may aim for good and popular brand names. Though the lower class will focus
more on necessities and focus on buying one nice outfit, but then spend more on food
and their home. Thus, lifestyle also impacts on customers’ preference.

iv. Function of the Product

The buying decision of customers also depend upon the function of the
product they are buying. In case of mobile phones, customers like the mobiles which
are full of various functions. Nowadays, android mobiles are very common with a lot
of features and functions. The android mobile phones with lot of functions are mostly
preferred by the young customers. Hence, function of mobiles also has impact on the
customer's preference.

v. Availability of the Product

The products which are highly available in the market are mostly liked by the
customers. Widely available products can be bought easily. So, the availability also
impacts on the customer's preference.

3. Methods

This section includes the detail of research methodology that has been used in
this report. It is concerned with formulating the plans and procedures, measurement
instrument development, methods for data collection, analysis and interpretation. The
chapter deals with justification the methodology used for finding solutions to the
research problems. The strategy of sampling design (i.e. universe of population,
sampling frame, and sample selection technique and sample size) has also been

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discussed in this chapter. It also describes the participating organization and outlines
the methods gathering the data, characteristics of data and statistical tools to be used
to analyze the data.

3.1 Type of Research

Research design is a master plan specifying the methods and procedures for
collecting and analyzing the needed information. It consists of the structure for the
collection, measurement and analysis of the research data and aims at allocation of
limited resources for the crucial choices in the methodology. Research design includes
structure of the research problems and the plans of investigation in order to obtain
empirical evidences to prove relationship between variables of research. The research
design that the researcher adopted in this study was the survey research design.
Survey refers to the collection of data through different methods such as interview or
questionnaire. This method is widely used in research process. With the help of
survey, one can easily analyze the individuals' opinion on certain topics. A survey
may focus on opinions or factual information depending on its purpose, but all
surveys involve administering questions to individuals. Survey research design is an
efficient method for systematically collecting data and generalization the result. In
this study, quantitative research design will be used.

3.2 Population and Sample

There are many auto rickshaws in Birendranagar of Surkhet. People are using
auto rickshaw as a comfortable means of transport. The target population of this study
is all those people who travel via auto rickshaw. Among the public, 55 will be selected
purposively. Sampling method is one of the important processes of sample selection
during survey. In statistics, sampling describes the process of selecting sample
elements from target population in order to conduct survey. In survey process,
sampling helps to describe and analyze the characteristics, attitudes of the target
population. The purpose of sampling is to secure a representative group which enables
the researcher to gain information about an entire population. Simple random
sampling method will be used to select the sample. The information will be collected
from auto riders. The sample size will be 55 public from whom the responses will be
obtained.

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3.3 Types of Data
Two types of data will be mainly used in this study which are as follows:
3.3.1 Primary Source
This research will use self-design questionnaires for the data collection. The
survey questionnaires will be justified because it will be affordable and effective way
of collecting information from a population in a short period of time and at a reduced
cost. The questionnaires also facilitate easier coding and analysis of data collection.
The closed ended questions ensure that the respondents will not be restricted to
certain categories in their responses. Thus, the major information of this research will
be collected through primary source.
3.3.2 Secondary Source
The secondary source of information will also be applied in this research. This
source will be used while preparing literature review and other places. The major
sources of secondary information will be website, books, journals, and articles.
3.4 Data Collection Procedure
The researcher will communicate individually with the auto riders and will
describe about the survey work. Then, the researcher will request to manage proper
time to fill up the questionnaire. The questionnaires will be distributed by the
researcher to the public who use auto rickshaw. The questionnaire will be related to
the personal information of the respondents and the questions related to subject
matter. After the filling up of questionnaires, they will be collected by the researcher
from the public.
3.5 Instruments
The questionnaire will be used as the main tool for data collection. The
questions will be self-developed, and some will be adopted from previous researches.
Most of the questions will be formulated in closed ended pattern. To collect the
personal information of the public, 55 questionnaires will be distributed. Among the
questionnaires, background related questions will be included. Other questions will be
related to the responses of the public towards the auto rickshaws.
3.6 Techniques of Analysis

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For the analysis of data, frequency, percentages will be used to describe the
nature of data. After analysis of each question, the figures will be shown in
different table as per the requirement of the subject matter.
3.7 Limitations of the Study

Today's world is dynamic. Everything existing here are of limited characters.


Every principle, role, formula and conditions are applied within limitations. Likewise,
this study cannot escape from limitations. Therefore, the limitations of this study will
be follows:

1. This study will be limited to the public in Birendranagar, Surkhet.

2. The respondents will be limited upto 55 only.

3. This study will be based on primary data.

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CHAPTER II

PRESENTATION AND ANALYSIS OF DATA

The data was obtained from the customers on the responses towards different
mobile phones in Birendranagar Municipality of Surkhet. The data were obtained
from the primary sources. Questionnaire was used to collect data from the customers.
The data are presented as follows:

2.1 Age of the Customers

This question was designed to measure the age of the respondents. To collect
the information from the respondents, 15-24 years, 25-34 years, 35-44 years and 45
years and above options were used. The following table shows the detail information
of the respondents on the basis of age.

Table 1: Age of the Customers

Age Frequency Percent


15-24 years 16 21.33
25-34 years 18 24.00
35-44 years 19 25.33
45 years and above 22 29.33
Total 75 100.00
Source: Field Survey, 2075

Table 1 shows that 21.33 percent of the customers were 15-24 years of age, 24
percent were 25-34 years of age, 25.33 percent were 35-44 years of age and 29.33
percent of the customers were 45 years and above of age. It shows that majority of the
respondents were 45 years and above of age.

The above data is also presented in figure as follows:

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Figure 1: Age of the Customers

2.2 Gender of the Respondents

This question was designed to measure the gender of the respondents. To


collect the information from the respondents on gender, male and female options were
used. The following table shows the detail information of the respondents on the basis
of gender.

Table 2: Gender of the Respondents


Variable Frequency Percent
Male 41 54.67
Female 34 45.33
Total 75 100.00
Source: Field Survey, 2075
Table 2 shows that 54.67 percent of the respondents were males and 45.33
percent of the respondents were females. It shows that majority of the respondents
were males.

The gender of the respondents has also been presented in figure as follows:

Figure 2: Gender of the Respondents

2.3 Caste

This question was designed to measure the caste of the respondents. To collect
the information from the respondents on caste, Brahamin, Chhetri, Janajati and others
options were used. The following table shows the detail information of the
respondents on the basis of caste.

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Table 3: Caste of the Customers

Variable Frequency Percent


Brahamin 22 29.33
Chhetri 24 32.00
Janajati 14 18.67
Others 15 20.00
Total 75 100.00
Source: Field Survey, 2075

Table 3 shows that 29.33 percent of the customers were Brahamins, 32 percent
were Chhetris, 18.67 percent were Janajatis and 15 percent were of other caste. It
shows that majority of the respondents were Chhetris.

The caste of the customers is also presented in the figure as follows:

Figure 3: Caste of the Customers

2.4 Religion

This question was designed to measure the religion of the respondents. To


collect the information from the respondents on religion, Hindu, Buddhist, Christian
and Muslim options were used. The following table shows the detail information of
the respondents on the basis of religion.

Table 4: Religion of the Customers

Variable Frequency Percent

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Hindu 46 61.33
Buddhist 13 17.33
Christian 9 12.00
Muslim 7 9.33
Total 75 100.00
Source: Field Survey, 2075

Table 3 shows that 61.33 percent of the customers were Hindus, 17.33 percent
were Buddhists, 12 percent were Christians and 9.33 percent of the customers were
Muslim. It shows that majority of the respondents were Hindus.

The religion of the customers is also presented in figure as follows:

Figure 4: Religion of the Customers

2.5 Marital Status

This question was designed to measure the marital status of the respondents.
To collect the information from the respondents on their marital status, married,
unmarried and others options were used. The following table shows the detail
information of the respondents on the basis of marital status.

Table 5: Marital Status of the Customers

Variable Frequency Percent


Married 43 57.33
Unmarried 28 37.33

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Others 4 5.33
Total 75 100.00
Source: Field Survey, 2075

Table 5 shows that 57.33 percent of the customers were married, 37.33 percent
were unmarried and 5.34 percent of the customers had other marital status. It shows
that majority of the respondents were married.

The above data is also presented in the figure as follows:

Figure 5: Marital Status of the Customers

2.6 Educational Qualification

This question was designed to measure the education qualification of the


respondents. To collect the information from the respondents on their educational
qualification, illiterate, primary, secondary and higher level options were used. The
following table shows the detail information of the respondents on the basis of their
educational status.

Table 6: Educational Qualification of the Customers

Variable Frequency Percent


Illiterate 2 2.67
Primary 13 17.33
Secondary 17 22.67
Higher level 43 57.33

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Total 75 100.00
Source: Field Survey, 2075

Table 6 shows that 2.67 percent of the customers were illiterate, 17.33 percent
of the customers were primary level passed, 22.67 percent were secondary level
passed and 57.33 percent of the customers had passed higher level. It shows that
majority of the respondents had passed higher level.

The above data can also be presented in figure which is as follows:

Figure 6: Educational Qualification of the Customers

2.7 Occupation

This question was designed to measure the occupation of the respondents. To


collect the information from the respondents on their occupational status, job,
business, students and others options were used. The following table shows the detail
information of the respondents on the basis of their occupational status.

Table 7: Occupation of the Customers

Variable Frequency Percent


Job 18 24.00
Business 21 28.00
Student 27 36.00
Others 9 12.00
Total 75 100.00
Source: Field Survey, 2075

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Table 7 shows that 24 percent of the customers were involved in jobs, 28
percent were involved in business, 36 percent were students and 12 percent of the
customers were involved in other occupations. It shows that majority of the
respondents were students.

The occupation of the customers is presented in the figure also which is as


follows:

Figure 7: Occupational Status of the Customers

2.8 Brands of Mobile Phones

This question was designed to measure the brands of mobile phones used by
the customers. To collect the information from the respondents on the brands of
mobile phones, Samsung, Gionee, Huawei and others options were used. The
following table shows the detail information of the respondents o n the brands of
mobile phones.

Table 8: Brand of Mobile Phone Used by the Customers

Variable Frequency Percent


Samsung 29 38.67
Gionee 13 17.33
Huawei 16 21.33
Others 17 22.67
Total 75 100.00
Source: Field Survey, 2075

Table 8 shows that 38.67 percent of the customers were using Samsung, 17.33
percent were using Gionee, 21.33 percent were using Huawei and 22.67 percent of the

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customers were using other brands of mobile phones. It shows that majority of the
respondents were using Samsung mobile phones.

The brands of mobile phones used by the customers are also shown in the
following figure:

Figure 8: Brands of Mobile Phones Used by the Customers

2.9 Source of Information on Brand of Mobile Phone

This question was designed to measure the sources of information on brands


of mobile phones used by the customers. To collect the information from the
respondents on the sources of information on brands of mobile phones, friends,
advertisement, family and magazines/newspapers options were used. The following
table shows the detail information of the respondents o n the brands of mobile phones.

Table 9: Source of Information on Brand of Mobile Phone

Variable Frequency Percent


Friends 26 34.67
Advertisement 23 30.67
Family 15 20.00
Magazines/newspapers 11 14.66
Total 75 100.00
Source: Field Survey, 2075

Table 9 shows that 34.67 percent of the customers had received information on
their brands of mobile phones from their friends, 30.67 percent had received the
information on their brands of mobile phones from the advertisement, 20 percent of
the customers had received information on the brands of their mobile phones from

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family and 14.66 percent of the customers had received the information on the brands
of their mobile phones from the magazines. This shows that majority of the
respondents had received the information on the brands of their mobile phones from
their friends.

The above data is also presented in the figure as follows:

Figure 9: Source of Information on Brands of Mobile Phones

2.10 Reasons for Choosing the Brand

This question was designed to measure the reasons of choosing the brands of
mobile phones. To collect the information from the respondents on the reasons for
choosing the brands of mobile phones, design/brand, operating system, camera, screen
size and battery backup options were used. The following table shows the detail
information of the respondents on the reasons for choosing the brands of mobile
phones.

Table 10: Reasons for Choosing the Brand

Variable Frequency Percent


Design/brand 25 33.33
Operating system 12 16.00
Camera 9 12.00
Screen size 11 14.67
Battery backup 18 24.00
Total 75 100.00
Source: Field Survey, 2075

Table 10 shows that 33.33 percent of the customers had chosen their brands
because of design/brand, 16 percent had chosen their brands because of operating
system, 12 percent had chosen their brands because of camera, 14.67 percent had

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chosen their brands because of screen size and 24 percent of the customers had chosen
their brands of mobile phones because of battery backup. It shows that majority of the
respondents had chosen their brands of mobile phones because of design/brand.

The above data is also presented in the following figure:

Figure 10: Reasons for Choosing the Brand

2.11 Influence of Brands on Customers' Preference

This question was designed to measure the influence of brands on customer


preference. To collect the information from the respondents on the influence of brands
on customers’ preference, strongly agree, agree, neutral, disagree and strongly
disagree options were used. The following table shows the detail information of the
respondents on the influence of brands on customers’ preference.

Table 11: Influence of Brands on Customers' Preference

Variable Frequency Percent


Strongly agree 31 41.33
Agree 22 29.33
Neutral 11 14.67
Disagree 7 9.33
Strongly disagree 4 5.33
Total 75 100.00
Source: Field Survey, 2075

Table 11 shows that 41.33 percent of the customers strongly agreed, 29.33
percent agreed, 14.67 percent were neutral, 9.33 percent disagreed and 5.33 percent of
the customers strongly disagreed that brands of mobile phones influence the
customers. This shows that majority of the respondents agreed that brands/design of
mobile phones influence the customers’ preference.

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The above data can also be presented in figure which is as follows:

Figure 11: Influence of Brands on Customers' Response

2.12 Price of Mobile Phone

This question was designed to measure the price of the mobile phones. To
collect the information from the respondents on the influence of brands on price of the
mobile phones, easily affordable, affordable and expensive options were used. The
following table shows the detail information of the respondents on the price of the
mobile phones.

Table 12: Price of Mobile Phones

Variable Frequency Percent


Easily affordable 28 37.33
Affordable 26 34.67
Expensive 21 28.00
Total 75 100.00
Source: Field Survey, 2075

Table 12 shows that the price of the mobile phone being used by 37.33 percent
of the customers was easily affordable, the price of the mobile phones being used by
34.67 percent of the customers was affordable and the price of the mobile phones
being used by 28 percent of the customers was expensive. It shows that most of the
customers were using mobile phones that were easily affordable.

The above data can also be presented in figure which is as follows:

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Figure 12: Price of Mobile Phones
2.13 Influence of Price of Mobile Phone on Customers' Preference

This question was designed to measure the influence of price of mobile phones
on customer preference. To collect the information from the respondents on the
influence of price of mobile phones on customers’ preference, strongly agree, agree,
neutral, disagree and strongly disagree options were used. The following table shows
the detail information of the respondents on the influence of price of mobile phones
on customers’ preference.

Table 13: Influence of Price of Mobile Phone on Customers' Preference

Variable Frequency Percent


Strongly agree 34 45.33
Agree 21 28.00
Neutral 9 12.00
Disagree 5 6.67
Strongly disagree 6 8.00
Total 75 100.00
Source: Field Survey, 2075

Table 13 shows that 45.33 percent of the customers strongly agreed, 28


percent agreed, 12 percent were neutral, 6.67 percent disagreed and 8 percent of the
customers strongly disagreed that the price of the mobile phones influence the
customers' preference.

The above data is also presented in figure which is as follows:

24
Figure 13: Influence of Price of Mobile Phone on Customers' Preference

2.14 Reasons of Influence of Price of Mobile Phone on Customers' Preference

This question was designed to measure the reasons of influence of price of


mobile phones on customers’ preference. To collect the information from the
respondents on the reasons of influence of price of mobile phones on customers’
preference, low price attract young customers, customers like high quality in low
price, all customers are not able to pay for high price and others options were used.
The following table shows the detail information of the respondents on the reasons of
influence of price of mobile phones on customers’ preference.

Table 14: Reasons of Influence of Price of Mobile Phone on Customers'


Preference

Variable Frequency Percent


Low price attracts customers 31 41.33
Customers like high quality in low price 29 38.67
Others 6 8.00
Others 9 12.00
Total 75 100.00
Source: Field Survey, 2075

Table 14 shows that 41.33 percent of the customers said that the low price
attracts customers, 38.67 percent said that customers like high quality in low price, 8
percent said that all customers are not able to pay for high price and 12 percent of the
customers said that there are other reasons why customers are influence by price of
mobile phones. It shows that majority of the respondents were attracted by low price.

2.15 Influence of Lifestyle on Customer's Preference

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This question was designed to measure the influence of lifestyle on customers’
preference. To collect the information from the respondents on the influence of
lifestyle on customers’ preference, strongly agree, agree, neutral, disagree and
strongly disagree options were used. The following table shows the detail information
of the respondents on the influence of lifestyle on customers’ preference.

Table 15: Influence of Lifestyle on Young Customer's Preference


Variable Frequency Percent
Strongly agree 26 34.67
Agree 30 40.00
Neutral 13 17.33
Disagree 4 5.33
Strongly disagree 2 2.67
Total 75 100.00
Source: Field Survey, 2075

Table 15 shows that 34.67 percent of the customers strongly agreed, 40


percent agreed, 17.33 percent were neutral, 5.33 percent disagreed and 2.67 percent of
the customers strongly disagreed that the lifestyle influence on young customers'
preference towards mobile phones. It shows that majority of the respondents agreed
that lifestyle influence on customers’ preference.

The above data is also presented in figure as follows:

Figure 14: Influence of Lifestyle on Young Customer's Preference

2.16 Reasons of Influence of Lifestyle on Customer's Preference

This question was designed to measure the reasons of influence of life style on
customers’ preference. To collect the information from the respondents on the reasons
of influence of lifestyle on customers’ preference, customers with high lifestyle like
high quality mobiles, customers of low lifestyle cannot afford high quality mobiles,

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lifestyle directly influences the customers’ buying decision and others options were
used. The following table shows the detail information of the respondents on the
reasons of influence of lifestyle on customers’ preference.

Table 16: Reasons of Influence of Lifestyle on Customer's Preference

Variable Frequency Percent


Customers with high lifestyle like high quality mobiles 31 41.33
Customers of low lifestyle cannot high quality mobiles 22 29.33
Lifestyle directly influences the customers' decision 12 16.00
Others 10 13.33
Total 75 100.00
Source: Field Survey, 2075

Table 16 shows that 41.33 percent of the customers said that customers with
high lifestyle like high quality mobile phones, 29.33 percent of the customers said that
customers of low lifestyle cannot afford high quality mobiles, 16 percent of the
customers said that lifestyle directly influences the customers' buying decision and
13.33 percent of the customers said that there are other reasons why lifestyle
influences customers’ preference. It shows that majority of the respondents said that
customers with high quality lifestyle prefer high quality mobiles.

2.17 Influence of Functions on Customer's Preference

This question was designed to measure the influence of functions of mobile


phones on customers’ preference. To collect the information from the respondents on
the influence of functions of mobile phones on customers’ preference, strongly agree,
agree, neutral, disagree and strongly disagree options were used. The following table
shows the detail information of the respondents on the influence of functions of
mobile phones on customers’ preference.

Table 17: Influence of Functions on Customer's Preference

Variable Frequency Percent


Strongly agree 26 34.67
Agree 30 40.00
Neutral 12 16.00
Disagree 4 5.33
Strongly disagree 3 4.00
Total 75 100.00
Source: Field Survey, 2075

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Table 17 shows that 34.67 percent of the customers strongly agreed, 40
percent agreed, 16 percent were neutral, 5.33 percent disagreed and 4 percent of the
customers strongly disagreed that the functions of mobile phones influence on young
customers' preference. It shows that majority of the respondents agreed that functions
of mobile phones influence customers’ preference.

The above data is also presented in figure as follows:

Figure 15: Influence of Functions on Young Customer's Response

2.18 Choosing the Brand because of Function

This question was designed to measure the choosing the brand because of
function. To collect the information from the respondents on choosing the brand
because of function, yes and no options were used. The following table shows the
detail information of the respondents on choosing the brand because of functions.

Table18: Choosing the Brand because of Function

Variable Frequency Percent


Yes 68 90.67
No 7 9.33
Total 75 100.00
Source: Field Survey, 2075

Table 18 shows that 90.67 percent of the customers had chosen the brands of
their mobile phones because of function and 9.33 percent of the customers had not
chosen the brands of their mobile phones because of functions. It shows that majority
of the respondents had chosen the brands of their mobile phones because of function.

The above data is also presented in the figure which is as follows:

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Figure 16: Choosing the Brand because of Function

2.19 Place of Purchasing Mobile Phones

This question was designed to measure the place of purchasing the mobile
phones. To collect the information from the respondents on place of purchasing the
mobile phones, at the local store, from the dealer, imported from outside and bought it
from friend options were used. The following table shows the detail information of
the respondents on place of purchasing the mobile phones.

Table 19: Place of Purchasing Mobile Phones

Variable Frequency Percent


At the local store 26 34.67
From the dealer 29 38.67
Imported from outside 12 16.00
Bought it from friend 8 10.67
Total 75 100.00
Source: Field Survey, 2075

Table 19 shows that 34.67 percent of the customers had bought the mobile
phones from the local stores, 38.67 percent had bought the mobile phones from the
dealer, 167 percent had imported the mobile phones from outside and 10.67 percent of
the customers had bought their mobile phones from their friends. It shows that
majority of the respondents had purchased the mobile phones from the dealer.

2.20 Influence of Availability of Mobile Phone on Customers' Preference

This question was designed to measure the influence of availability of mobile phones
on customers’ preference. To collect the information from the respondents on the
influence of availability of mobile phones on customers’ preference, strongly agree,
agree, neutral, disagree and strongly disagree options were used. The following table

29
shows the detail information of the respondents on the influence of availability of
mobile phones on customers’ preference.

Table 20: Influence of Availability of Mobile Phone on Customers' Preference


Variable Frequency Percent
Strongly agree 31 41.33
Agree 26 34.67
Neutral 13 17.33
Disagree 3 4.00
Strongly disagree 2 2.67
Total 75 100.00
Source: Field Survey, 2075

Table 20 shows that 41.33 percent of the customers strongly agreed, 34.67
percent agreed, 17.33 percent were neutral, 4 percent disagreed and 2.67 percent of
the customers strongly disagreed that the availability of mobile phones influence on
customers' preference. It shows that majority of the respondents agreed that
availability of mobile phones influence on customers’ preference.

The above data is also presented in the figure as follows:

Figure 17: Influence of Availability of Mobile Phone on Customers' Preference

2.21 Reasons for Influence of Availability of Mobile Phone on Customers'


Preference

This question was designed to measure the reasons of influence of availability


of mobiles phones on customers’ preference. To collect the information from the
respondents on the reasons of influence of availability of mobiles phones on
customers’ preference, customers can easily get the mobiles from the nearest locality,
easily reachable place reduces the cost, customers like to visit the nearest store and it
increases confidentiality options were used. The following table shows the detail

30
information of the respondents on the reasons of influence of availability of mobiles
phones on customers’ preference.

Table 21: Reasons for Influence of Availability of Mobile Phone on Customers'


Preference

Variable Frequency Percent


Customers can easily get the mobile from the nearest
locality 25 33.33
Easily reachable place reduces the cost 26 34.67
Customers like to visit the nearest store 17 22.67
It increases confidentiality 7 9.33
Total 75 100.00
Source: Field Survey, 2075

Table 21 shows that 33.33 percent of the customers said that customers can
easily get the mobile phone from the nearest locality, 34.67 percent said that easily
reachable places reduces the cost of the product, 22.67 percent said that customers
like to visit the nearest store and 9.33 percent of the customers said that availability
increases confidentiality. It shows that majority of the respondents said that easily
reachable place reduces the cost.

2.22 Major Findings

On the basis of the presentation and analysis of data, the following findings are
drawn:

1. The study found that 21.33 percent of the customers were 15-24 years of age,
24 percent were 25-34 years of age, 25.33 percent were 35-44 years of age and
29.33 percent of the customers were 45 years and above of age.

2. Among the customers, 54.67 percent were males and 45.33 percent of the
respondents were females.

3. The study found that 29.33 percent of the customers were Brahamins, 32
percent were Chhetris, 18.67 percent were Janajatis and 15 percent were of
other caste.

4. Among the customers, 61.33 percent were Hindus, 17.33 percent were
Buddhists, 12 percent were Christians and 9.33 percent of the customers were
Muslim.

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5. The study found that 57.33 percent of the customers were married, 37.33
percent were unmarried and 5.34 percent of the customers had other marital
status.

6. Among the respondents, 2.67 percent were illiterate, 17.33 percent were
primary level passed, 22.67 percent were secondary level passed and 57.33
percent of the customers had passed higher level.

7. The study found that 24 percent of the customers were involved in jobs, 28
percent were involved in business, 36 percent were students and 12 percent of
the customers were involved in other occupations.

8. The study found that 38.67 percent of the customers were using Samsung,
17.33 percent were using Gionee, 21.33 percent were using Huawei and 22.67
percent of the customers were using other brands of mobile phones.

9. Among the customers, 34.67 percent had received information on their brands
of mobile phones from their friends, 30.67 percent had received the
information from the advertisement, 20 percent had received information from
family and 14.66 percent had received the information on the brands of their
mobile phones from the magazines.

10. The study found that 33.33 percent of the customers had chosen their brands
because of design/brand, 16 percent had chosen because of operating system,
12 percent had chosen because of camera, 14.67 percent had chosen because
of screen size and 24 percent had chosen their brands of mobile phones
because of battery backup.

11. Among the respondents, 41.33 percent strongly agreed, 29.33 percent agreed,
14.67 percent were neutral, 9.33 percent disagreed and 5.33 percent strongly
disagreed that brands of mobile phones influence the customers.

12. The study found that 37.33 percent of the respondents use mobile phones that
are easily affordable, 34.67 percent use mobile phones that are affordable and
28 percent of the customers use expensive mobile phones.

13. The study found that 45.33 percent of the customers agreed, 28 percent
agreed, 12 percent were neutral, 6.67 percent disagreed and 8 percent of the

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customers strongly disagreed that the price of the mobile phones influence the
customers' preference.

14. The study found that 41.33 percent of the customers said that the low price
attracts customers, 38.67 percent said that customers like high quality in low
price, 8 percent said that all customers are not able to pay for high price and
12 percent of the customers said that there are other reasons why customers
are influence by price of mobile phones.

15. The study found that 34.67 percent of the customers strongly agreed, 40
percent agreed, 17.33 percent were neutral, 5.33 percent disagreed and 2.67
percent of the customers strongly disagreed that the lifestyle influence on
young customers' preference towards mobile phones.

16. Among the respondents, 41.33 percent said that customers with high lifestyle
like high quality mobile phones, 29.33 percent of the customers said that
customers of low lifestyle cannot afford high quality mobiles, 16 percent of
the customers said that lifestyle directly influences the customers' buying
decision and 13.33 percent of the customers said that there are other reasons
why lifestyle influences customers’ preference.

17. The study found that 34.67 percent of the customers strongly agreed, 40
percent agreed, 16 percent were neutral, 5.33 percent disagreed and 4 percent
of the customers strongly disagreed that the functions of mobile phones
influence on young customers' preference.

18. The study found that 90.67 percent of the customers had chosen the brands of
their mobile phones because of function and 9.33 percent of the customers had
not chosen the brands of their mobile phones because of functions.

19. The study found that 34.67 percent of the customers had bought the mobile
phones from the local stores, 38.67 percent had bought the mobile phones
from the dealer, 167 percent had imported the mobile phones from outside and
10.67 percent of the customers had bought their mobile phones from their
friends.

20. The study found that 41.33 percent of the customers strongly agreed, 34.67
percent agreed, 17.33 percent were neutral, 4 percent disagreed and 2.67

33
percent of the customers strongly disagreed that the availability of mobile
phones influence on customers' preference.

21. The study found that 33.33 percent of the customers said that customers can
easily get the mobile phone from the nearest locality, 34.67 percent said that
easily reachable places reduces the cost of the product, 22.67 percent said that
customers like to visit the nearest store and 9.33 percent of the customers said
that availability increases confidentiality.

CHAPTER III

DISCUSSIONS AND CONCLUSINS

3.1 Discussion

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The topic of this study was “A Study of Brand Preference of Customer while
Purchasing Mobile Phones.” The purpose of this study was to measure the preference
of brand while purchasing mobile phones by customers in Birendranagar Municipality
of Surkhet district. The population of this study was the customers of different brands
of mobile phones.
To measure the brand preference of the customers, brands of mobiles, price of
mobiles, life style of customers, function of mobiles and availability of mobiles were
used as the independent variables and customer brand preference was used as the
dependent variable.
This study was divided into three chapters with different sub-topics. The
required data were collected through primary and secondary sources. Primary data
were collected through the survey questionnaire and the secondary data were
collected from previous researches, journals, books, articles and newspapers. To
collect the primary data, survey questionnaire has been used.

Questionnaire includes both the personal information related questions and


subject related questions and the questions were formulated in closed-ended pattern.

Simple random sampling method was used to select the sample for this study.
The purpose of sampling is to secure a representation group which enables the
researcher to gain information about the whole population. The information was
collected from the customers of different brands of mobile phones in Birendranagar
Municipality of Surkhet.

The data were analyzed using different tables and figures to find out the
marketing strategies applied by the advertising agencies. After analysis and
presentation of data, the conclusion has been made.

3.2 Conclusion and Implications

The study was conducted to find out the young customers' responses towards
different brands of mobile phones. The young customers were 12 to 30 years of age.
The customers belonged to various castes like Brahamins, Chhetris, Janajatis and
Dalits. The religions of the customers were Hindu, Buddhist, Christian and Muslim.
There were both the married and the unmarried customers but mostly the customers
were unmarried. Nuclear family was mostly prevalent among the customers. Some of

35
the customers were illiterate whereas some were literate. The occupations of the
customers included job, business, etc. but some of the customers were students too.

Various brands of mobile phones were being used by the customers. The most
common brands among the customers were Samsung, Huawei and Gionee. The
customers got information on the brands of their mobile phones from their friends,
advertisement, family and magazines. The customers chose their brands of mobiles
due to design, brand, operating system, camera, screen size and battery backup.
Mostly, the battery backup attracted the customers. The customers agreed and
disagreed that brands of mobile phones have impacts on the customers' responses
towards mobile phones. The mobile phones which the customers were using were
easily affordable and affordable but some of the customers were not able to easily
afford the mobile phones they were using. The customers agreed and disagreed that
price of mobile phone influence the customers' responses towards mobile phones.
Low price attracts customers, customers like high quality in low price and all
customers are not able to pay for high price. The customers agreed and disagreed that
lifestyle also influences the customers' responses. Customers with high lifestyle like
high quality mobiles, customers of low lifestyle cannot afford high quality mobiles
and lifestyle directly influences the customers' buying decision. The customers also
agreed and disagreed that functions of mobile phones influence on customers
responses. The customers had bought the mobile phones at the local store, from the
dealer, imported from outside and had bought it from the friend. The customers both
agreed and disagreed that the availability of the mobile phones also influences the
customers' responses. Customers can easily get the mobile from the nearest available
locality and the availability also reduces the cost.

It can be concluded from the study that brand name of the mobile phone,
function, availability, price and quality were the major factors that attract the
customers.

On the basis of the summary and conclusion of the study, the following
recommendations are made:

1. Findings of the study reveal that 34.67 percent had received information on
their brands of mobile phones from their friends. Therefore, it is recommended

36
that the mobile companies should apply various marketing methods of their
brands of mobile phones.

2. On the basis of the findings of the study, 28 percent of the customers use
expensive mobile phones. It is suggested that mobile companies should
provide high quality mobile phones in low price.

3. The findings of the study present that 41.33 percent of the customers said that
the low price attracts customers. Therefore, the mobile companies should
provide high quality mobile phones on low price.

4. The findings of the study reveal that 90.67 percent of the customers had
chosen the brands of their mobile phones because of function. It is suggested
that mobile phones have various functions that are liked by the customers.

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