CONSUMER PREFERENCE ON COFFEE IN THE PATAN AREA

by

Shreeya Maharjan

A Summer Project Work Report submitted to

Faculty of management,Tribhuwan University
in partial fulfillment of the requirements for the degree of

Bachelor of Business Management

at the

Swyambhu International College

Tribhuwan University

Laghenkhel, Lalitpur

March,2023
 DECLARATION

I hereby declare that the project work report entitled “Consumer preference on coffee
in the Patan area” submitted for the BBM is my original work and the project report
has not formed the basis for the award of any degree, diploma or any other similar
titles.

……………….

Shreeya Maharjan

i
 CERTIFICATE

This is to certify that the project work entitled “Consumer Preference on Coffee in
Patan Area” is an academic work done by “Shreeya Maharjan” submitted in partial
fulfillment of the requirements of the BBM of Faculty of Management, Tribhuvan
University under my guidence and supervision. To the best of my knowlwdge, the
infromation presented by her in the summer project repory has not been submited
earlier.

….……………………

Associate prof.

External supervisor

School of management, Tribhuvan University

March 03, 2023

ii
 ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep regards to the
project. I would like to express my deepest appreciation to all those who provided me
the possibility to complete this report..

Similarly profound gratitude goes to, who has been a truly dedicate mentor. I am
particularly indebted to for his constant fate in my research.Finally, but by no means
least, thanks go to mom, dad and my family members for almost unbelievable
support. They are the most important people in my life and during my research as
well.

Shreeya Maharjan

[email protected]

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 TABLE OF CONTENT

DECLARATION..................................................................................................................i

CERTIFICATE....................................................................................................................ii

ACKNOWLEDGEMENT..................................................................................................iii

TABLE OF CONTENT......................................................................................................iv

ABSTRACT.....................................................................................................................viii

CHAPTER I: INTRODUCTION........................................................................................1

1.1 Background................................................................................................................1

1.2 Objective....................................................................................................................2

1.3 Significance of Study.................................................................................................2

1.4 Literature Review.......................................................................................................2

1.5 Summary of Literature Review..................................................................................6

1.6 Research Methodology..............................................................................................7

1.6.1 Research design...................................................................................................7

1.6.2 Study area............................................................................................................7

1.6.3 Study population and sample..............................................................................7

1.6.4 Questionnaire.......................................................................................................8

1.6.5 Method of Data Analysis.....................................................................................8

CHAPTER II: DESCRIPTIVE ANALYSIS.......................................................................9

2.1 Socio-demographic Characteristics of Respondents..................................................9

2.2 Determine consumer perception for coffee in Patan................................................12

2.3Identify the benefit of coffee.....................................................................................15

2.4Determine the constraints and opportunities of coffee at Patan................................17

CHAPTER III: SUMMARY AND CONCLUSION.........................................................19

3.1 Summary..................................................................................................................19

3.2. Conclusion..............................................................................................................21

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 3.3. Research Gap..........................................................................................................22

REFERENCES..................................................................................................................23

ANNEX I: Pre-Testing Questionnaire...............................................................................25

ANNEX II: Survey Question.............................................................................................26

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 ABSTRACT

Purpose: Coffee is darkly colored, bitter, slightly acidic and has a stimulating effect
in humans, primarily due to its caffeine content. It is one of the most popular drinks in
the world and can be prepared and presented in a variety of ways. Coffee stimulates
the activities in the brain and nervous system. The main purpose of doing this
research is to find out the problems prevailing in Nepalese coffee market.

Objective: The main objective of the research is to understand consumer preferences

for coffee in Patan.

Method used: We used the descriptive technique in our research to learn about the
consumer preference on coffee in the Patan area. To acquire data, the primary data
collecting technique is employed. For data collection, a sample size of 51 respondents
was used, and a structured questionnaire was asked.

Result: This study reveals that 54.9% respondent are female and 45.1% respondent
are male. Most of the respondent were 25-35 years. Most of the coffee consumers
among51 respondents thinks that coffee is a healthy drink. It shows that most of the
respondent prefer drinking coffee once a day at a café or home. They have been
drinking coffee for more than 3-4 years. Most of them prefer Nepalese coffee than
foreign coffee.

Conclusion:From the study it is concluded that the most of the respondent drink
coffee because it is good for health, refreshing, helps to decrease stress, helps in blood
circulation, improve mental functioning and so on. As the respondent prefer Nepalese
coffee, they face challenges in Nepalese coffee like quality, brand, marketing. These
challenges can be managed by the government, providing knowledge, promoting the
farmers, providing knowledge to the farmers and distributors. The main purpose of
doing this research is to find out the problems prevailing in Nepalese coffee market.

Key word: Consumer preference, coffee, Patan, primary data.

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 CHAPTER I: INTRODUCTION

1.1 Background

Coffee is a brewed beverage made from roasted coffee beans, the seeds of some
flowering plants in the Coffea genus, and the berries of certain flowering plants in the
Coffea genus. The seeds are extracted from the coffee berry to generate a stable, raw
product: unroasted green coffee. The seeds are next roasted, transforming them into a
usable product: roasted coffee, which is ground into small particles and soaked in hot
water before being filtered out, resulting in a cup of coffee.

Coffee is a dark-colored, bitter, somewhat acidic beverage that has a stimulating

effect on humans, owing to the caffeine content. It is one of the world's most popular
beverages and may be made and served in a variety of ways (e.g., espresso, French
press, caffè latte, or already-brewed canned coffee). Coffee is usually consumed hot,
although iced coffee is also popular. Sugar, sugar substitutes, milk, or cream are
widely used to mask bitterness or enhance flavor. It goes well with coffee cake or a
sweet treat such as doughnuts. A coffeehouse or coffee shop is a business facility that
offers prepared coffee drinks.

The oldest reliable evidence of coffee use in the shape of the contemporary beverage
dates from the middle of the 15th century at Sufi shrines in present-day Yemen, when
coffee seeds were initially roasted and brewed using procedures similar to those used
today. Yemeni coffee beans were imported from the Ethiopian Highlands via coastal
Somali brokers, and growing commenced. The drink had spread throughout the
Middle East and North Africa by the 16th century, eventually reaching Europe.

C. arabica and C. robusta are the two most prevalent coffee bean varieties. Coffee
plants are grown in over 70 countries, especially in the Americas, Southeast Asia, the
Indian subcontinent, and Africa's equatorial areas. Brazil was the world's biggest
coffee bean producer in 2018, accounting for 35% of global output. Coffee is a major
export product for many nations, serving as the primary legal agricultural export. It is
one of the most valuable products that developing countries export. Coffee, green and
unroasted, is the most traded agricultural commodity and one of the most traded
commodities in general, second only to gasoline. Despite the fact that coffee sales
have reached billions of dollars, the people who grow the beans are disproportionately
poor. Critics also object to the coffee industry's detrimental environmental effect, as

1
well as the clearance of area for coffee farming and the usage of water. The market
for fair trade and organic coffee is growing as a result of rising environmental costs
and income disparities among producers.

1.2 Objective

The study's main objective is to understand consumer preferences for coffee in Patan.
However, the following is the research's precise goal:

 To determine the consumer's preference on coffee

 To identify the benefit of coffee
 To determine the constraints and opportunities of coffee at Patan.

1.3 Significance of Study

The purpose of this study is to look into the coffee preferences of Patan residents.

In Nepal, there has been a lot of research done on coffee. Similar studies can be found
in many different regions and across the country. With reference to the literature
study, relatively few studies have been undertaken in Nepal on the topic of consumer
choice for coffee in Patan.

1.4 Literature Review

Literature review is a scholarly paper, which includes the current knowledge

including substantive findings, as well as theoretical and methodological contribution
to a particular topic. There have been various studies looking at coffee, and the
literature review that are follow are linked to my research topic.

John Cranfield (2010) - Using data from the Greater Toronto Area and Vancouver
obtained through in-person consumer interviews, the authors of this research employ
conjoint analysis to extract the opinions of coffee consumers on the qualities of Fair
Trade coffee. Using cluster analysis and multinomial logit models, the influence of
socioeconomic and demographic characteristics on respondents' adoption of Fair
Trade coffee is assessed. The findings imply that consumers strongly value price and
labeling claims regardless of location. Each city has three distinct consumer groups;
for example, Toronto has Fair Trade-Focused, Price Conscious, and Balanced Buyers,
while Vancouver has Organic and Fair Trade-Focused, Price Conscious, and Balanced
Buyers.

2
PatriciaEsquivel(2012) - Finally, we stress the importance of outreach activities in
the effective implementation of CBB IPM initiatives.

To guarantee that management alternatives are realistic and cost-effective, future

research studies should include as many coffee growers as possible.

Melissa A. Johnson (2020) - The coffee berry borer (Hypothenemushampei (Ferrari),

CBB) has infestednearly every coffee-producing country on the planet and is widely
regarded as the most damaging insect pest in the industry.

While study on this pest has been done in particular coffee-growing countries,
comparing and contrasting patterns of invasion and response across its global spread
may yield new insights.

We examine (1) how CBB was introduced into each region and the response to its
invasion, (2) flight activity and infestation patterns, (3) economic impacts, and (4)
management strategies in this review, which examines the existing literature and
focuses on common themes in the invasion biology of CBB.

Iziar A. Ludwig (2014) - This review provides details on the phytochemicals in green
coffee beans and the changes that occur during roasting. Key compounds in the coffee
beverage, produced from the ground, roasted beans, are volatile constituents
responsible for the unique aroma, the alkaloids caffeine and trigonelline, chlorogenic
acids, the diterpenescafestol and kahweol, and melanoidins, which are Maillard
reaction products. The fate of these compounds in the body following consumption of
coffee is discussed along with evidence of the mechanisms by which they may impact
on health. Finally, epidemiological findings linking coffee consumption to potential
health benefits including prevention of several chronic and degenerative diseases,
such as cancer, cardiovascular disorders, diabetes, and Parkinson's disease, are
evaluated.

Leandro S.Oliveira (2015) - Coffee is one of the top commodities produced and
commercialized worldwide, and the processing of coffee generates significant
amounts of agricultural waste, ranging from 30% to 50% the weight of the total coffee
produced, depending on the type of processing. Coffee husks and pulp are the major
solid residues from the processing of coffee, for which there are no current profitable
uses, and their adequate disposal constitutes a major environmental problem. Thus, in
compliance with the concept of sustainable development, innovative techniques and

3
products for the profitable and adequate use of this type of residue are being sought.
Several research works presenting proposals for such endeavors have been published
in the literature and are reviewed herein.

PushpaS.Murthy (2012) - Coffee is one of the popular beverages of the world and
second largest traded commodity after petroleum. Coffee is cultivated in about 80
countries across the globe and entangles huge business worldwide. Coffee
dispensation requires an elevated degree of processing know how and produces large
amounts of processing by-products such as coffee pulp and husk, which have limited
applications such as fertilizer, livestock feed, compost and such others.
Biotechnological applications in the field of industrial residues management promote
sustainable development of country's economy.

Bettina Cämmerer (2006) - The total antioxidant activity of coffee beverages was
measured with stabilized radical EPR spectroscopy. Depending on which stabilized
radical is used, Fremy's salt (potassium nitrosodisulphonate) or 2,2,6,6-tetramethyl-1-
piperidin-1-oxyl (TEMPO) values can differ significantly. For the determination of
antioxidant activity of Maillard reaction products in coffee, TEMPO appears to be the
better radical marker. Thus the contribution of both main antioxidant active
compounds (polyphenols, melanoidins) whose ratio varies with roasting conditions
could be estimated. During storage experiments of coffees brews changes in
antioxidant action are found to be time dependent.

ChahanYeretzian (2017) - Coffee is a relatively young beverage that has only been
known about since the 17th century. Initially consumed by the aristocracy, coffee has
developed since the early 20th century into one of the world’s most popular beverages
and is now part of our daily routine and lifestyle. It also represents a major source of
income for many coffee-producing countries and is a significant business sector in
consumer countries. The triumph of this beverage may have been driven by various
factors, but there is no doubt that its unique flavor is the prime reason for its amazing
success.

Sammy Saab (2013) - Coffee is one of the most commonly consumed beverages in
the world. Its health benefits including improved overall survival have been
demonstrated in a variety of disease states. To examine the association of coffee
consumption with liver disease, a systematic review of studies on the effects of coffee

4
on liver associated laboratory tests, viral hepatitis, nonalcoholic fatty liver disease
(NAFLD), cirrhosis and hepatocellular carcinoma (HCC) was performed. Coffee
consumption was associated with improved serum gamma glutamyltransferase,
aspartate aminotransferase and alanine aminotransferase values in a dose dependent
manner in individuals at risk for liver disease. In chronic liver disease patients who
consume coffee, a decreased risk of progression to cirrhosis, a lowered mortality rate
in cirrhosis patients, and a lowered rate of HCC development were observed. In
chronic hepatitis C patients, coffee was associated with improved virologic responses
to antiviral therapy.

James A Greenberg (2006) - Several prospective epidemiologic studies over the past
4 y concluded that ingestion of caffeinated and decaffeinated coffee can reduce the
risk of diabetes. This finding is at odds with the results of trials in humans showing
that glucose tolerance is reduced shortly after ingestion of caffeine or caffeinated
coffee and suggesting that coffee consumption could increase the risk of diabetes.

Pierre G. Sylvain (1958) - Recent studies seem to confirm that Ethiopia should
definitely be considered as the native home of Coffea arabica L. Good natural
conditions make this country the main exporter of this type of coffee in Africa and
potentially one of the most important producers in the world. There is such a great
genetical variation among the “wild” coffees that they constitute the best sources of
germ plasm now available for programs of improvement of the species. Already some
trees have been found resistant or immune to all the cultures of the main rust
organism with which they were inoculated.

Luis F. Samper (2017) - As one of the world’s most traded agricultural commodities,
coffee constitutes a significant part of the overall economy and a major source of
foreign revenue for many developing countries. Coffee also touches a large portion of
the world’s population in the South, where it is mainly produced, and in the North,
where it is primarily consumed. As a product frequently purchased by a significant
share of worldwide consumers on a daily basis in social occasions, the coffee industry
has earned a high profile that also attracts the interest of non-governmental
organizations, governments, multilateral organizations and development specialists
and has been an early adopter of Voluntary Sustainability Standards (VSS).

5
Ans Kolk (2011) - This overview article examines the various dimensions of
sustainable coffee as well as the actors involved and their perceptions of how to
advance the market from niche to mainstream. The issues at hand are very complex,
with different types of coffee producers, manufacturing/roasting companies and
consumers, and a variety of standards, all with their own peculiarities and views on
what is the best approach, and characterized by a divergent potential for ‘scaling up’.
Policymakers, managers and NGOs thus face difficult choices as to which path to
pursue as there is no clear consensus on a concrete ‘solution’ to this ‘wicked
problem’.

José AGobbi (2000) - The current trend for reducing shade cover in coffee
plantations in northern Latin America has prompted concern among conservationists
because of its potential implications for the loss of biodiversity. To help reverse such
a trend, a project has been launched to promote biodiversity-friendly cultural practices
in coffee plantations and the marketing of certified ‘biodiversity-friendly’ coffee. This
paper examines the financial feasibility of investing in the certification criteria for a
‘biodiversity-friendly’ coffee in farms with different production systems in western El
Salvador. Models were developed to estimate net present values and risks associated
with the investment for five hypothetical, but typical, coffee farms: (1) traditional
polyculture; (2) commercial polyculture; (3) technified shade less than 1200 m
elevation; (4) technified shade greater than 1200 m elevation; and (5) unshaded
monoculture.

W. Grosch (1998) - The concept of flavour analysis developed in our laboratory

during the last decade to evaluate the key odorants of foods and beverages, is
demonstrated in a review on coffee flavour. The results obtained by aroma extract
dilution analysis (AEDA), gas chromatography/olfacto-metry of headspace samples
and quantitation of potent odorants using corresponding stable isotopomers as internal
standards are discussed. Finally, some sensory experiments performed on the basis of
data assessed by instrumental analyses of roasted coffee samples are reported.

6
1.5 Summary of Literature Review

This study tries to examine the Consumer Preference for Coffee in Patan. The
research was carried out in the Patan area.There has been a lot of research done to see
if people like to drink coffee.Similar studies can be found in many different regions
and across the country.There are only a few studies that have looked into customer
preferences for coffee.The primary goal of this research is to learn about the coffee
preferences of customers in the Patan area.

1.6 Research Methodology

The strategy used to find, select, process, and analyze information regarding the issue
is known as research methodology.Purposive sampling, which falls under non-
probability sampling, is used to pick 51 respondents, who are Patan residents.To
obtain information on the given aims, a structural and semi-structural questionnaire
was designed containing both closed and open ended questions.

1.6.1 Research design

The research design is the overarching method you adopt to combine the many
components of the study in a logical and cohesive manner, guaranteeing that will
properly address the subject of study; it is the layout for gathering data, measurement,
and analysis. A research design's objective is to establish a study plan that will help
for proper assessment of cause and effect relationships between independent and
dependent variables. A controlled experiment is a classic indicator of successful study
design.

1.6.2 Study area

The study's subject is Consumer preference on coffee.Patanos chosen as the study's

location.Patan is popularly referred as 'Lalitpur.Patan is one Nepal's most urbanized
areas, placed just across the Bagmati River near Kathmandu.Patan is located 5
kilometers southeast of Kathmandu. With its tiny lanes, brick residences, and a
plethora of well-preserved Hindu temples, Buddhist monasteries (vihars), and
monuments, the city preserves much of its original beauty.The tinkering of craftsmen
hunched over the replicas they are molding is the most common sound in Patan.
Hinduism and Buddhism have coexisted for centuries in this city, influencing each

7
other, and the religious concord is exemplary, as it is in Kathmandu.Patan is one
Nepal's most urbanized areas, placed just across the Bagmati River near Kathmandu.

1.6.3 Study population and sample

The study's population consisted of people who are currently residing in Patan and are
consume coffee. To ensure that the whole population was included, participants were
identified as a sample from the population. A formal questionnaire with open-ended
and closed-ended questions was used to collect the information.

1.6.4 Questionnaire

A structured questionnaire with both closed and open-ended questions was

constructed to gather information on the study's stated goals.

The questionnaire was divided into five pieces.

Part A: General information.

Part B: socio-demographic characteristics.

Part C: Determine consumer perception for coffee in Patan.

Part D: Identify the benefit of coffee

Part E: Determine the constraints and opportunities of coffee at Patan.

The questionnaire was developed with the assistance of supervisors, mentors,

students, and other faculty members, and it is based on the study's goal and classroom
discussion.After completing the questionnaire for the pre-test, 5 participants were
asked the questions in the job field on April 29th, 2022.It was discovered during the
pre-test that some questions should be omitted, therefore I eliminated a
couple.Overall, the 51 respondents comprehended the questions, and the final poll
was done on May 18, 2020, with 51 participants.

1.6.5 Method of Data Analysis

The surveyed data initially inputted into MS Excel and then we analyzed it by using
the various statistical techniques. We did necessary coding, recording, and calculation
of the variables in Excel before analyzing the data.

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 CHAPTER II: DESCRIPTIVE ANALYSIS

This chapter shows the descriptive analysis of the study. This chapter is composed of
descriptive result of key variables, which are presented in 5 sections. The first section
deals with general information of the respondents. The second section deals with the
preference of coffee in Patan. The third section deals with challenges faced by local
business after establishment of Bhatbhateni. The fourth section deals with
management strategies to enhance supply of Nepalese coffee.

2.1 Socio-demographic Characteristics of Respondents

This section describes Socio-demographic characteristics of the people involved in the

local businesses. The description of the respondent’s characteristics are presented
below:

Gender

Gender refers to the biological differences that exist between males and females.
According to the study, out of 51 respondents, more than half of them were male i.e.,
(54.9%) and the other were female i.e., (45.1%).

Age Group

The age group approach was used to complete the respondents' general information.
This strategy entails the creation of distinct age groups and the placement of ages
within these categories within a range. According to the study, the age group among
51 respondents are below 25years, 25-35 years, 36-45 years and 46-55 years. The
majority age group of respondents is 25-35 years (41.38%) and the minimum age
group of respondents is 46-55 years (3.45%) which means people between the age of
25-35 years seems to be highly interested in their own business in Patan.

9
Table 1: Socio-Demographic Characteristics

Name Number Percentage

Formal education
Yes 50 98.04
No 1 1.96

Level of education
Primary 1 1.96
Lower Secondary 1 1.96
Secondary 11 21.57
Bachelors 26 50.98
Masters 11 21.57

Marital Status
Married 8 15.69
Unmarried 43 84.31

Occupation
Agriculture 2 3.92
Industry 5 9.8
Service 14 27.45
Others 30 58.82

Income level
Below 25000 27 52.94
25000-50000 15 29.41
50000-100000 5 9.8
100000-200000 2 3.92
Above 200000 2 3.92

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The table shows that most of the respondents are literate i.e. 50 (98.04%) respondents
have at least lower secondary level of education and only 1(1.96%) respondent hasn’t
received any formal education. Moreover, among the 51 respondents, most of them
are single i.e. 43(84.31%) of the respondents, 8(15.69%) are married among the
surveyed. Here, most of the respondents are engaged in other sector i.e. 30(58.82%),
14 (27.45%) are engaged in service sector, 5 (9.8%) are engaged in industry sector
and 2 (3.92%) are engaged in agriculture sector. And among the respondent 27
(52.94%) of them have income below 25000, 15 (29.41%) have 25000-50000, 5
(9.8%) have 50000-100000, 2 (3.92%) have 100000-200000, 2(3.92%) have income
above 200000.

2.2 Determine consumer perception for coffee in Patan

This study is conducted to determine the consumer’s perception for coffee. Here we
can find out the elements that consumer prefer about coffee.

Use of coffee.

This section deals with the use of Coffee in Patan i.e. regular once a day, twice a day
and more than twice a day. Among 51 respondents, 29(56.86%%) respondent drink
coffee once a day, 11(21.57%) respondent drink coffee twice a day, 11(21.57%)
drinks coffee more than twice a day.

Place Of Usage of Coffee

This section deals with the, places often visited by the respondent to drink coffee i.e.
café, home, takeaway, others. Among 51 respondents, 29(56.86%) respondent drinks
at café,17(33.33%) respondent drinks coffee at home, while 2 of the respondent
prefers takeaway and 3 of the respondent drink coffee at other place.

Period Of Usage of Coffee

This section deals with the respondents period of drinking coffee. Among 51
respondents, 13(25.41%) respondent has been drinking coffee since less than a year,
7(13.73%) has been drinking coffee for l-2 years, 15 respondent has been drinking
coffee for 3-4 years and 14(27.45%) has been drinking coffee for more than 4 years.

11
12
Preference of coffee
This section deals with the peoples preference of coffee. Among 51 respondents,
24(47.06%) prefer Nepalese coffee, 13(25.45%) prefer foreign coffee and 14(27.45%)
prefers both Nepalese coffee as well as foreign coffee.

Variation of coffee

This section deals with the peoples preference on different variations of coffee.
Among 51 respondents, 15(23.53%) respondent drink beans coffee, 15(29.41%) drink
packet coffee whereas, 24(47.06%) of the respondent prefer drinking both types of
coffee

Important element to consider while drinking coffee

This section deals with the peoples view on what they consider important while
drinking coffee. Among 51 respondents 42(82.35%) respondent think quality is more
important, 9(17.65%) think price is important, 9(17.65%) think brand is important
whereas, remaining 2(3.92%) think taste is important and 1(1.96%) of the respondent
thinks that the packaging of the coffee is more important.

2.3Identify the benefit of coffee

This study is helps to identify the benefit of coffee. In this study, it studies about
reason to drink coffee and whether the coffee is considered as healthy drink or not.
These are shown below.

Reasons to drink coffee

This section deals with the reasons people drink coffee. Among 51 respondents,
27(52.94%) respondent drink coffee as it is refreshing, 12(23.53%) drink coffee
because it releases stress, 7(13.73%) drink coffee due to it being a habit and 5(9.8%)
respondent drink coffee for other reasons. Reasons people drink coffee represented
below:

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Consider coffee as healthy drink
This section deals with the peoples view on coffee as a healthy drink. Among
respondents, 32(62.75%) respondent thinks coffee is a healthy drink and 19(37.25%)
respondent thinks coffee is not a healthy drink.

2.4Determine the constraints and opportunities of coffee at Patan.

In order to identify the benefit of coffee the determination of constraints and
opportunities of coffee is asked to the respondent. Respondent were asked about the
challenges in prospects of Nepalese coffee, the existing situation in Nepalese coffee is
manageable or not and the main responsible for the situation.

Prospects of Nepalese coffee

This section deals with the peoples view on prospect of Nepalese. Among 51
respondents, 22(43.14%) respondent thinks market is responsible for the prevailing of
Nepalese coffee, 20(39.22%) respondent thinks quality is a strong determinant,
11(21.57%) thinks advertisement affects the Nepalese coffee, 9(17.65%) believe that
price is a good determinant for the Nepalese coffee and 6(11.76%) respondent believe
that brand is affecting the condition of Nepalese coffee.

Manageable situation of Nepalese coffee

This section deals with the peoples view on whether the situation of Nepalese coffee
is manageable or not. Among 51 respondents, 39(76.47%) respondent thinks the
situation of Nepalese coffee is manageable whereas 12(23.53%) of respondent believe
that the situation of Nepalese coffee is not manageable.

14
CHAPTER III: SUMMARY AND CONCLUSION

3.1 Summary

The summary and conclusion of "Consumers Preference on Coffee at Patan Area" are
the main topics of this chapter. The first section is a summary of the study. The
study's result is presented in the second section, and the research gap is discussed in
the third section.

Coffee is darkly colored, bitter, slightly acidic and has a stimulating effect in humans,
primarily due to its caffeine content. It is one of the most popular drinks in the world
and can be prepared and presented in a variety of ways. Coffee stimulates the
activities in the brain and nervous system. The main purpose of doing this research is
to find out the problems prevailing in Nepalese coffee market.

The basic goal of this study is to discover consumer preferences for coffee in the
Patan Area, with particular goals being to ascertain customer preferences for coffee,
identify the advantages of coffee, and identify the potential and limitations of coffee
in Patan.

The descriptive research design was used in this study to measure the mentioned
objective. The population for this study's sample size is 51, and the study's study area
is Patan Lalitpur. A questionnaire made up of questions that might be relevant to the
study's objectives was developed to learn more about consumer perceptions of coffee.
For convenience, the respondents were chosen at random from the Patan region. A
standardized questionnaire was used to gather primary data and assess them in order
to fulfill the study's objective. To achieve the research's goal, data from the
respondent was gathered using the questioning technique.

Data presentation and analysis are done on socio-demographic characteristics of the

respondent; second deals withdetermine consumer perception for coffee in Patan;
third deals with identifying the benefit of coffee: fourth deals with proper
management strategy.

In the socio demographic part this study has observed the various demographic factor
such as sex, age, formal education, level of education, marital state, occupationand
monthly income of the respondent.Where out of 51 respondents, (54.9%) male and
the other were female. the age group among 51 respondents are below 25years, 25-35

15
years, 36-45 years and 46-55 years. The majority age group of respondents is 25-35
years (41.38%) and the minimum age group of respondents is 46-55 years (3.45%) .50
(98.04%) respondents have at least lower secondary level of education and only
1(1.96%) respondent hasn’t received any formal education. Moreover, among the 51
respondents, most of them are single i.e., 43(84.31%) of the respondents, 8(15.69%)
are married among the surveyed. Here, most of the respondents are engaged in other
sector i.e., 30(58.82%), 14 (27.45%) are engaged in service sector, 5 (9.8%) are
engaged in industry sector and 2 (3.92%) are engaged in agriculture sector. And
among the respondent 27 (52.94%) of them have income below 25000, 15 (29.41%)
have 25000-50000, 5 (9.8%) have 50000-100000, 2 (3.92%) have 100000-200000,
2(3.92%) have income above 200000.

This study assessed the consumer perception for coffee. It discusses about the use of
coffee, place of usage of coffee, period of usage of coffee, preference of coffee, and
important elements to consider while drinking coffee. The study also shows among 51
respondents, 29(56.86%%) respondent drink coffee once a day, 11(21.57%)
respondent drink coffee twice a day, 11(21.57%) drinks coffee more than twice a
day.51 respondents, 29(56.86%) respondent drinks at café,17(33.33%) respondent
drinks coffee at home, while 2 of the respondent prefers takeaway and 3 of the
respondent drink coffee at other place. 13(25.41%) respondent has been drinking
coffee since less than a year, 7(13.73%) has been drinking coffee for l-2 years, 15
respondent has been drinking coffee for 3-4 years and 14(27.45%) has been drinking
coffee for more than 4 years. 24(47.06%) prefer Nepalese coffee, 13(25.45%) prefer
foreign coffee and 14(27.45%) prefers both Nepalese coffee as well as foreign coffee.
15(23.53%) respondent drink beans coffee, 15(29.41%) drink packet coffee whereas,
24(47.06%) of the respondent prefer drinking both types of coffee. 42(82.35%)
respondent think quality is more important, 9(17.65%) think price is important,
9(17.65%) think brand is important whereas, remaining 2(3.92%) think taste is
important and 1(1.96%) of the respondent thinks that the packaging of the coffee is
more important.

This study also conducted to identify the benefit of coffee.There we can find the
reason to drink coffee, consider coffee as a healthy drink. It also mentions that Among
51 respondents, 27(52.94%) respondent drink coffee as it is refreshing, 12(23.53%)
drink coffee because it releases stress, 7(13.73%) drink coffee due to it being a habit

16
and 5(9.8%) respondent drink coffee for other reasons. 32(62.75%) respondent thinks
coffee is a healthy drink and 19(37.25%) respondent thinks coffee is not a healthy
drink.

Finally, the purpose of this study is also to Determine the constraints and
opportunities of coffee at Patan, which includes Prospects of Nepalese
coffeeandManageable situation of Nepalese coffee.Among 51 respondents,
22(43.14%) respondent thinks market is responsible for the prevailing of Nepalese
coffee, 20(39.22%) respondent thinks quality is a strong determinant, 11(21.57%)
thinks advertisement affects the Nepalese coffee, 9(17.65%) believe that price is a
good determinant for the Nepalese coffee and 6(11.76%) respondent believe that
brand is affecting the condition of Nepalese coffee. 39(76.47%) respondent thinks the
situation of Nepalese coffee is manageable whereas 12(23.53%) of respondent believe
that the situation of Nepalese coffee is not manageable.

3.2. Conclusion

This research basically deals with the Consumer preference of coffee in Patan area.
This study is important in order to understand the current situation of coffee in Patan
area and understand challenges faced by people in coffee business. It also identifies
the proper management strategy of the coffee in Patan area.

Coffee is a brewed beverage made from roasted coffee beans, the seeds of some
flowering plants in the Coffea genus, and the berries of certain flowering plants in the
Coffea genus. The seeds are extracted from the coffee berry to generate a stable, raw
product: unroasted green coffee. The seeds are next roasted, transforming them into a
usable product: roasted coffee, which is ground into small particles and soaked in hot
water before being filtered out, resulting in a cup of coffee.

The ultimate aim of this study is to examine the preference of coffee in Patan area. By
considering the result it is found that government have not played any role towards
making rules and regulations regarding fair payment to photographers. The study
concluded that all the respondent were not satisfied with the present situation of
coffee in Nepal due to lack of knowledge and government ignorance. They reported
that it would be easier if proper marketing, knowledge and government help could
further develop the coffee business, distribution and farming in Nepal.

17
In this study the main priority is to understand current situation of photo studio. If
their situation is good then what can be done to manage and if they are not good why
it is not manageable.

3.3. Research Gap

This research is limited to only the Patan area. According to my view, if researcher
can capture the other areas like Patan, Shyambhunath, Pashupatinath etc. then the
data, finding and conclusions could have been drawn more accurately and effectively.
It does not represent all parts of the country. Similarly, the respondent could have
been more than 51 in order to represents the view of the many people. If the
researcher wants to presents the more effective finding and the conclusion then there
must be more respondent in order to identify their view so that the research will be
more valuable. According to the views of people on limited number of questions are
not enough to draw the conclusion on any topic. The prepared questionnaire was not
enough to meet the objectives in very detail. The researcher was suggested to prepare
the effective questionnaire so that effective and favorable conclusion can be drawn.
Similarly, the researcher is also suggested to conduct the new research with the both
descriptive and the inferential data analysis because this research is generally
conducted with the descriptive analysis.

18
 REFERENCES

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Cranfield, J., Henson, S., Northey, J., &Masakure, O. (2010). An assessment of

consumer preference for fair trade coffee in Toronto and
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Esquivel, P., & Jimenez, V. M. (2012). Functional properties of coffee and coffee by-
products. Food research international, 46(2), 488-495.

Geel, L., Kinnear, M., & De Kock, H. L. (2005). Relating consumer preferences to
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244.

Gobbi, J. A. (2000). Is biodiversity-friendly coffee financially viable? An analysis of

five different coffee production systems in western El Salvador. Ecological
Economics, 33(2), 267-281.

Greenberg, J. A., Boozer, C. N., &Geliebter, A. (2006). Coffee, diabetes, and weight
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Grosch, W. (1998). Flavour of coffee. A review. Food/Nahrung, 42(06), 344-350.

Johnson, M. A., Ruiz-Diaz, C. P., Manoukis, N. C., &Verle Rodrigues, J. C. (2020).

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Kolk, A. (2013). Mainstreaming sustainable coffee. Sustainable Development, 21(5),

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Ludwig, I. A., Clifford, M. N., Lean, M. E., Ashihara, H., & Crozier, A. (2014).
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Sudiyarto, S., Destiarni, R. P., &Harya, G. I. (2018, December). Analysis of Factors
That Affect Consumer Preference on Coffee Consumption in Surabaya. In
International Conference on Science and Technology (ICST 2018) (pp. 587-
593). Atlantis Press.

Sylvain, P. G. (1958). Ethiopian coffee—its significance to world coffee problems.

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Cham.

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 ANNEX I: Pre-Testing Questionnaire

S.N Questions Answers

Q no 1 Is the entire question clearly understood? A= yes

B= No

Q no 2 If No, which question is not clearly understood? ……….

Q no 3 Do you think there should be additional questions? A= yes

B= No

Q no 4 If yes, what are those questions that should be added? ……….

Q no 5 If you have any suggestions regarding the improvement of ……….

the questionnaire, please mention them in this space aside.

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 ANNEX II: Survey Question

Hello Sir/Madam,

My name is Shreeya Maharjan . I am undergraduate student at Swyambhu

international college. At the present time, I am doing research project work under the
title “Consumer Preference on Coffee.” The main objective of this study is to
measure willingness to consume coffee. In order to meet this objective 51 respondents
have been selected and you are one of them. Your participant is completely voluntary.
This information is being collected for academic purposes only and any details related
to your privacy will be confidential. The interview will take approximately 10
minutes, but with your cooperation it can be done quicker.

May I have your permission to undertake this interview?

Yes = Proceed with interview.

No = Thank the person and look for next respondent

Part A: General information.

Personal Information

Name of respondent: …... Gender: (a) male (b)female (c)others

Location: Ward No:

Contact No: …

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Part B: Socio-Demographic Characteristics.

S.N. Socio- Demographic Characteristics

1 Age: a) Below 20
b) 20-30 years
c) 30-40 years
d) 40-50 years
e) 50 above

2. Do you have formal education? a) Yes

b) No

3 If yes, please mention the level of education a) Primary

you have achieved? b) Lower Secondary
c) Secondary
d) Bachelors
e) Masters
f) others

4 What is your marital status? a) Married

b) Single
c) Divorced
d) Widowed
e) Others
(Specify): …………

5 What is your occupation? a) agriculture

b) industry
c) Service
d) Others

23
 6 What is your income level? a) Below 25000
b) 25,000-50,000
c) 50,000-1,00,000
d) 1,00,000-2,00,000
e) 2,00,000 above

Part C: Determine consumer perception for coffee in Patan.

1. How often do you drink coffee? a) Once a day

b) Twice a day
c) More than two

2. Where do you drink coffee most often? a) Home

b) Café/ Coffee shop
c) Takeaway
d) Others

3. Approximately how many years have you been a coffee a) Less than a year
drinker? b) 1 -2 years
c) 3- 4 years
d) More than 4 years

4. Which coffee do you consume? a) Nepalese

b) Foreign
c) Both
d) None

5. What type of coffee do you drink? a) Packet coffee

b) Beans coffee
c) Both
d) None

6. Which of the following are important to you when you a) Price

consume coffee? b) Packaging
c) Quality
d) Brand
e) Taste

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Part D: Identify the benefit of coffee

1. For what reasons would you drink coffee? a) Drinking habit

b) Release stress
c) Refreshing
d) Others

2. Do you consider Coffee as a healthy drink? a) Yes

b) No

3. If yes, why? …………….

4. If no, why? …………….

Part E: Determine the constraints and opportunities of coffee at Patan.

1. What are the challenges in prospects of Nepalese coffee? a) Quality

b) Market
c) Brand
d) Price
e) Advertisement

2. Is the existing situation in Nepalese coffee manageable? a) Yes

b) No

3. If yes, why? …………..

4. If no, why? ……………..

5. Who are the main responsible for the situation?

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