Research Proposal for the Consumer Perception

of Nepali vs. Imported Cosmetic Brands: A

Study in Kathmandu Valley

Submitted by:
Manabi Subedi
MBA 4th Semester

i
 Recommendation
This is to certify that the proposed research topic has been reviewed and is recommended for
further approval.

ii
 Certification
This is to certify that the research proposal entitled 'Consumer Perception of Nepali vs. Imported
Cosmetic Brands: A Study in Kathmandu Valley' is the original work of the student submitted in partial
fulfillment of the requirements for the MBA program at Lincoln University College

iii
 Declaration of Authenticity
I hereby declare that this research proposal is my own original work and has not been submitted to any
other institution for academic credit.

iv
 Acknowledgements
I would like to express my gratitude to my faculty members, and peers for their guidance and support
during the preparation of this proposal.

v
 Executive Summary

This research investigates consumer perceptions of Nepali versus imported cosmetic brands
among consumers in the Kathmandu Valley. As the beauty and personal care market in Nepal
expands, both domestic and international cosmetic brands are competing to capture consumer
attention. Understanding the main factors influencing consumer choice is critical for local brands
aiming to strengthen their market position.

Drawing on the Theory of Planned Behavior and the Country-of-Origin Effect, this study
examines how packaging, pricing, brand image, product origin, and perceived quality impact
consumer attitudes and purchasing decisions. Employing a quantitative, cross-sectional survey
method, data will be collected from a diverse sample representing different ages, genders, and
income levels within the Kathmandu Valley.

The research also explores socio-cultural influences and psychological drivers that affect brand
loyalty and trust. The findings are expected to offer valuable insights for Nepali cosmetic
manufacturers, helping them develop effective branding and marketing strategies tailored to consumer
preferences. Ultimately, this study aims to contribute to a deeper understanding of consumer behavior in
emerging markets and support local brands in competing more effectively against imported products.

vi
Contents
Chapter I: Introduction...............................................................................................................................1
1.1 General Background..........................................................................................................................1
1.3 Objectives of the Study......................................................................................................................1
1.4 Hypothesis...........................................................................................................................................1
1.5 Scope and Significance of the Study.................................................................................................2
1.6 Limitations and Delimitations..........................................................................................................2
1.7 Outline of the GRP Report................................................................................................................2
Chapter II: Review of Literature and Theoretical Framework..............................................................3
2.1 Review of Theoretical Concepts.......................................................................................................3
2.2 Literature on Variables Under Study..............................................................................................3
2.3 Concluding Remarks and Conceptual Framework........................................................................4
2.4 Research Gap Analysis......................................................................................................................4
2.5 Definition of Variables Under Conceptual Framework.................................................................4
Chapter III: Research Methods..................................................................................................................5
3.1 Research Design.................................................................................................................................5
3.2 Population, Sample Size, and Sampling Technique........................................................................5
3.3 Source and Methods of Data Collection...........................................................................................5
3.4 Data Analysis Techniques.................................................................................................................5
3.5 Data Management Tools and Techniques.......................................................................................5
3.6 Reliability and Validity.....................................................................................................................6
Chapter IV: Analysis and Results..............................................................................................................6
4.1 Demographic Profile of Respondents...............................................................................................6
4.2 Descriptive Analysis...........................................................................................................................7
4.3 Analysis of Dependent Variable.......................................................................................................7
4.4 Analysis of Independent Variables...................................................................................................7
4.5 Sources and Types of Information...................................................................................................7

vii
 4.6 Inferential Analysis............................................................................................................................7
4.7 Major Findings (To Be Reported)....................................................................................................8
Chapter V: Discussion, Conclusions, and Implications (Proposal Version)..........................................8
5.1 Discussion (Planned)..........................................................................................................................9
5.2 Conclusions (Planned).......................................................................................................................9
5.3 Implications (Planned)....................................................................................................................10
5.4 Suggestions for Future Research....................................................................................................10
Specification of Conceptual Framework.................................................................................................11

viii
ix
Chapter I: Introduction
1.1 General Background

The cosmetic industry in Nepal is undergoing rapid expansion, fueled by rising income levels,
growing beauty awareness, and greater exposure to global trends via social media. In this
dynamic market, both Nepali and imported brands compete intensely for consumer attention.
Although imported brands have historically held a dominant position in consumer preference,
Nepali cosmetic brands are increasingly gaining traction, driven by their affordability and
targeted local branding initiatives. Gaining a clear understanding of consumer perceptions
toward these options is essential for fostering the growth and competitiveness of domestic
brands.

1.2 Problem Statement

Even though Nepali cosmetic brands are more available and actively marketed, many consumers
still prefer imported brands. The reasons behind this are not clear and might include factors like
perceived quality, brand reputation, social influence, and packaging. Some consumers may also
be unaware of the benefits of local products.

This makes it hard for Nepali brands to grow and compete. This study aims to find out what
influences consumer perceptions and how Nepali cosmetic brands can improve their appeal and
compete better with imported products.

1.3 Objectives of the Study

a) General Objective:
To analyze and compare consumer perception of Nepali versus imported cosmetic brands among
consumers in Kathmandu Valley.

b) Specific Objectives:

 To identify the main factors that influence consumer preferences for cosmetic brands.
 To assess how consumers perceive the quality and trustworthiness of Nepali versus
imported cosmetics.
 To analyze the effects of packaging, price, and branding on consumer perceptions.
 To examine how demographic factors such as age, gender, and education influence brand
perception.

1.4 Hypothesis

H1: There is a significant difference in consumer perception between Nepali and

imported cosmetic brands.

1
 This relates to the main goal of comparing how consumers view local vs. foreign brands.

 H2: Packaging and price have a significant impact on consumer perception of cosmetic
products.

This supports the objective of studying how product features affect preferences.

 H3: Demographic factors like age, gender, and education influence how consumers
perceive Nepali and imported brands.

This links to the objective of understanding how different groups respond to brand origin.

1.5 Scope and Significance of the Study

This study focuses on consumers in the Kathmandu Valley and compares their perceptions of
Nepali and imported cosmetic brands. It looks at key factors like packaging, price, brand image,
and product origin, along with the influence of demographic differences.

The findings will help local cosmetic companies understand what drives consumer choices and
how to improve their branding and marketing strategies. This research is important for
strengthening Nepali brands in a competitive market and for contributing to studies on consumer
behavior in developing countries.

1.6 Limitations and Delimitations

Limitations:

 Study limited to Kathmandu Valley, may not represent other regions.

 Data based on self-reported responses, prone to bias.
 Cross-sectional design captures perceptions at one time only.

Delimitations:

 Focuses on selected cosmetic categories (e.g., skincare, makeup), excluding haircare and
perfumes.
 Examines specific factors: packaging, price, brand image, and origin, excluding others
like advertising or distribution.
 Targets adult consumers in Kathmandu Valley only.

1.7 Outline of the GRP Report

The report will be structured in five chapters:

1. Introduction

2
 2. Literature Review and Theoretical Framework
3. Research Methodology
4. Data Analysis and Results
5. Discussion, Conclusions, and Implications

Chapter II: Review of Literature and Theoretical Framework

2.1 Review of Theoretical Concepts

 Theory of Planned Behavior: Explains how consumers’ intentions and attitudes shape
their buying behavior.
 Country-of-Origin Effect Theory: Suggests that the origin of a brand affects how
consumers perceive its quality and value.
 Perceived Value Theory: Emphasizes that consumers make decisions based on the
product’s perceived benefits and overall worth.

2.2 Literature on Variables Under Study

Previous studies have shown that brand image, packaging, and product quality significantly
influence consumer perception and buying behavior. International research highlights social
status and trust as key factors that often lead consumers to prefer imported cosmetic brands.
However, in Nepal, there is limited research comparing consumer attitudes toward local versus
foreign cosmetics. This gap underlines the need to explore how these variables affect brand
preference in the Nepali market specifically.

3
2.3 Concluding Remarks and Conceptual Framework

This study’s conceptual framework highlights packaging, price, brand origin, and brand image as
key factors shaping consumer perception of cosmetic brands. Demographic factors like age,
gender, and education are included as moderators that influence these relationships. This model
helps explain consumer preferences and will guide the research to support local brands in the
Kathmandu Valley.

2.4 Research Gap Analysis

Although many studies explore consumer behavior factors like packaging and brand image, there
is limited research on how Nepali consumers view local versus imported cosmetic brands. Most
existing work focuses on international markets, leaving a gap in understanding Nepal’s unique
consumer preferences. Additionally, how demographics influence these perceptions in Nepal
remains underexplored. This study addresses these gaps to provide valuable insights for local
brands competing in the Kathmandu Valley.

2.5 Definition of Variables Under Conceptual Framework

 Independent Variables: These are the main factors believed to influence consumer
perception. They include:

 Packaging – the design and presentation of the product.

 Price – the cost of the product as perceived by the consumer.
 Brand Image – the overall impression and reputation of the brand.
 Brand Origin – whether the brand is domestic (Nepali) or imported.

 Moderating Variables: These are demographic factors that may affect how the independent
variables influence consumer perception:

 Age, Gender, and Education.

 Dependent Variable:

o Consumer Perception – how consumers view and evaluate cosmetic brands based
on the above factors.

4
Chapter III: Research Methods
3.1 Research Design

The study follows a quantitative, cross-sectional, and comparative research design. It uses
structured surveys to collect data at a single point in time and compares consumer perceptions of
Nepali and imported cosmetic brands. This design is suitable for identifying patterns,
relationships, and differences among key variables such as packaging, price, brand origin, and
demographics.

3.2 Population, Sample Size, and Sampling Technique

 Population: The study targets consumers in the Kathmandu Valley who regularly
purchase and use cosmetic products.
 Sample Size: A total of 100 respondents will be selected for the survey.
 Sampling Technique: Stratified random sampling will be used, with stratification based
on age and gender to ensure representation across key demographic groups.

3.3 Source and Methods of Data Collection

 Primary Data: Collected through a structured questionnaire distributed to selected

consumers in the Kathmandu Valley.
 Secondary Data: Sourced from relevant journals, published articles, brand reports, and
official company websites to support the analysis and provide background context.

3.4 Data Analysis Techniques

 Descriptive statistics to summarize data

 Inferential statistics for hypothesis testing

3.5 Data Management Tools and Techniques

The collected data will be analyzed using the following statistical tools:

 a) Descriptive Statistics: To summarize data using frequency, mean, and standard

deviation.
 b) ANOVA Analysis: To examine differences in consumer perception across
demographic groups such as age and gender.
 c) Correlation Analysis: To explore the strength and direction of relationships between
variables (e.g., packaging and perception).

5
  d) Regression Analysis: To identify key predictors of consumer perception and assess
the impact of independent variables.

3.6 Reliability and Validity

 Reliability:
 Validity:

3.7 Expected Outcome

The study is expected to provide valuable insights into:

 The differences in consumer perception between Nepali and imported cosmetic brands.
 Key areas where Nepali brands can improve, such as packaging and price perception, to
better compete.
 The demographic groups that tend to prefer local versus foreign cosmetic products.

3.8 Ethical considerations

This research will strictly follow ethical guidelines to ensure participant confidentiality and informed
consent. All respondents will be clearly informed about the purpose of the study, and their participation
will be entirely voluntary, with the right to withdraw at any stage. No personal identifiers will be
collected, and all data will be handled anonymously and used solely for academic purposes.

Chapter IV: Analysis and Results

This chapter will be developed after primary data collection and will focus on statistical analysis
and interpretation of the results. It will address the research objectives and test the proposed
hypotheses.

4.1 Demographic Profile of Respondents

 Gender
 Age
 Education Level
 Occupation
 Monthly Income
(Presented through frequency tables and pie charts/bar graphs)

6
4.2 Descriptive Analysis

Descriptive statistics will be used to summarize the responses related to key independent
variables:

 Packaging
 Brand Image
 Brand Origin
 Pricing

Mean, standard deviation, and frequency will be calculated for each variable to understand
general trends in consumer perceptions. Additionally, an overall perception score will be
compared between Nepali and imported cosmetic brands to identify key differences in consumer
evaluation.

4.3 Analysis of Dependent Variable

 Average perception scores and trends.

4.4 Analysis of Independent Variables

 Perceived influence of each independent variable on buying decision.

4.5 Sources and Types of Information

The study will explore the different sources of information consumers rely on when choosing
cosmetic brands, such as advertisements, peer reviews, social media influencers, and word-of-
mouth. It will also examine the reasons behind their trust or preference for certain brands—
whether due to past experience, perceived quality, brand reputation, or social influence.

4.6 Inferential Analysis

 Correlation Analysis: To measure relationships between variables (e.g., price vs.

perception).
 ANOVA: To examine whether perceptions vary significantly by age, gender, and
education.
 Regression Analysis: To identify which factors significantly predict consumer
perception.

7
4.7 Major Findings (To Be Reported)

 The study will present a summary of statistically significant results obtained from the
analysis. These findings will be interpreted in alignment with the research objectives and
hypotheses, highlighting key factors that influence consumer perception, differences
between local and imported brands, and the role of demographics in shaping brand
preferences.

Chapter V: Discussion, Conclusions, and Implications (Proposal

Version)
This chapter will summarize the key insights drawn from the study, linking the findings to the
existing body of literature. It will highlight how consumer perceptions differ between Nepali and
imported cosmetic brands and the factors driving these views. Based on the results, the chapter
will offer practical recommendations for Nepali cosmetic brands to improve competitiveness and

8
brand positioning. Finally, it will suggest areas for future research to further explore evolving
consumer behavior in the cosmetic industry.

5.1 Discussion (Planned)

This section will interpret and discuss the key findings presented in Chapter IV by focusing on:

 Differences in consumer perception between Nepali and imported cosmetic brands.

 The most influential factors shaping perception, such as packaging, pricing, and brand
image.
 The role of demographic variables, including trends like younger consumers favoring
imported products.

The discussion will also connect these findings to the theoretical frameworks used—such as the
Country-of-Origin Effect and Perceived Value Theory—and compare them with previous
research to highlight similarities, differences, and new insights.

5.2 Conclusions (Planned)

Based on the data analysis, this section will draw conclusions regarding:

 How Nepali cosmetic brands are perceived in comparison to imported ones.

 The main factors driving consumer preferences and purchasing decisions.
 Whether each of the proposed hypotheses is supported or rejected.

The conclusions will directly reflect the extent to which the research objectives have been
achieved and will offer a clear summary of the study’s overall contributions.

Based on the data analysis, this section will draw conclusions regarding:

 How Nepali cosmetic brands are perceived in comparison to imported ones.

 The main factors driving consumer preferences and purchasing decisions.
 Whether each of the proposed hypotheses is supported or rejected.

The conclusions will directly reflect the extent to which the research objectives have been
achieved and will offer a clear summary of the study’s overall contributions.

9
5.3 Implications (Planned)

Managerial Implications:

Based on the study's findings, the following recommendations can help Nepali cosmetic
companies strengthen their market position:

 Improve product presentation, packaging, and branding to match consumer expectations

and compete with imported brands.
 Leverage local identity, cultural relevance, and natural ingredients while aligning with
international quality standards.
 Design targeted marketing strategies by segmenting consumers based on age, gender, and
education level to improve reach and engagement.

Policy Implications (if applicable)

 Encourage regulatory bodies to support domestic cosmetic brands through quality

assurance frameworks and promotional campaigns.
 Promote policies that foster innovation, enhance product standards, and improve
competitiveness within Nepal’s cosmetics.

5.4 Suggestions for Future Research

 Future studies can expand the geographic scope by including consumers from other cities
or rural areas of Nepal to gain broader insights.
 Comparative research on different cosmetic product categories—such as perfumes,
haircare, or skincare—can provide a deeper understanding of consumer preferences
across segments.
 Longitudinal studies may also help track changes in perception over time, especially as
local brands evolve and the market matures.

 Qualitative studies to deeply explore reasons behind consumer trust and loyalty.

10
Specification of Conceptual Framework
 Independent Variables:

 Packaging
 Brand Origin
 Price
 Brand Image

 Moderating Variables:

 Age
 Gender
 Education Background

 Dependent Variables

 Education Background
 Consumer Perception

11