New Perspective: Journal of Business and Economics

Welcome to KCM Project based Research in Business and Economics

2023-09-28T15:43:49+00:00

This editorial highlights the need for adopting research-based teaching throughout Nepal's higher institutions, drawing insights from unique practice of project-based research teaching exercise at Kathmandu College of Management (KCM). It is perspective from the desk of editor based on experiences, observations and reviews of published and unpublished literatures. KCM undergraduate’s scholars academic research exercise from business and economics Volume 6, issue 1 for the year 2023 to overcome national researchable issue of the domain keeping priority on what is published more than that of by whom or where is published is offered to you which consists of 10 research articles after peer review and this editorial perspective. It is assured that you will have a new perspective from each and every research published here. Editorial provides imperative for Nepal's higher institutions to prioritize research-based teaching to ensure the holistic development of its students and the overall progress of the nation by managing diversity and different uniqueness among different institutions based on their objectives rather than just being follower, it is time to be leader through exercise of different education philosophy connecting society and learner in collaboration to global research based institutions for addressing the new demands of educational aspirants generating from continuous changes. Being the Editor-in-Chief of the New Perspective Journal of Business and Economics, it is great honour to showcase the unique practices of KCM and encourage other institutions to adopt similar approaches in their teaching methodologies. The editorial acknowledges the intellectual support from researchers, scientists and academicians along with college administration and all supporting hands without their support it could not be brought. Authors are young mind and their efforts are real expression of their dedication under guidance of experienced research professors and peer reviewers. Kindly keep giving your feedback to us for further improvements.

Effectiveness of Digital Payments in the Performance of Nepalese Micro, Small and Medium Enterprises (MSME)

2023-09-28T15:51:03+00:00

This study aims to examine the effectiveness of digital payments on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Nepal. The research is based on a survey of 118 MSMEs within the Kathmandu Valley. Correlation, regression analysis, and ANOVA were used to analyze the data and draw conclusions. The findings indicate that the frequency of use of digital payments, perceived usefulness, perceived security, and ease in making payments to suppliers/creditors have a significant impact on the firm's performance. However, digital literacy and ease in accepting payments from customers/debtors do not have a significant influence on firm performance. This finding contradicts previous research conducted in different contexts and suggests that being digitally literate does not necessarily translate into the use of digital payments for business transactions. The study highlights the importance of understanding the usage of digital payments across different types of enterprises, such as MSMEs, and calls for further research to explore this topic using secondary data. Additionally, the study suggests that future research should expand beyond the Kathmandu Valley to gain a more comprehensive understanding of the topic.

Effect of Influencers on Consumer Purchase Intention

2023-09-29T09:22:17+00:00

This study examines the effect of influencers on consumer purchase intention in the urban areas of Nepal, specifically the major cities of Kathmandu and Lalitpur. The sample size for this study is 100 respondents, determined using the rule of 1:4. Descriptive statistics, correlation, ANOVA, and multiple regression were used to analyze the data. The findings suggest that marketers do not have to choose different influencers according to gender or levels of education, but rather according to age group. Additionally, marketers should consider using influencer marketing and choose influencers based on their use of influencer marketing tools, credibility in their content, and their product target market. This study adds to the existing research on the impact of social media and influencer marketing on consumer behavior in Nepal.

Consumer’s Willingness to Pay for Premium Food in Kathmandu Valley

2023-09-29T09:58:57+00:00

The COVID-19 pandemic has led to an increase in consumers' willingness to pay for premium priced foods. This study aims to identify the major factors affecting consumers' willingness to pay for premium priced food. Primary data was collected for this study, and the data was accepted based on the Cronbach alpha test. The study found that consumers' willingness to pay for premium priced food is not affected by hygiene. However, premium price, taste, ambiance, and quality service are factors that affect consumers' willingness to pay.

The findings of this study are consistent with previous research that highlights the importance of taste and quality service in influencing consumers' purchase intention. The study also emphasizes the significance of ambiance and premium price in driving consumers' willingness to pay for premium priced food.

The study suggests that companies should focus on providing quality service and creating a pleasant ambiance to enhance consumers' willingness to pay for premium priced food. Additionally, companies should consider the premium price of their products and align it with the perceived value of their target market.

Overall, the study provides insights into the factors that influence consumers' willingness to pay for premium priced food. The findings of this study can be useful for companies in designing their marketing strategies and enhancing the effectiveness of their product offerings.

Effect of Mobile Marketing on Online Purchase Intention in Urban Area

2023-09-29T10:11:25+00:00

This study aims to investigate the effect of mobile marketing on the online purchase intentions of Nepalese consumers, particularly in metropolitan areas. The study used non-probability convenience sampling to survey 105 consumers who were targeted by companies using mobile marketing for promotions. The data collected was analyzed using descriptive statistics, correlation, ANOVA, two sample tests, and multiple regression. The findings suggest that mobile marketing alerts, information, trust, and relevance have a significant effect on online purchase intention. The study provides useful insights for marketing and branding strategies.

Related research has explored the impact of customer satisfaction with online purchases on website continuance intention (WCI) in Qatar, with a focus on the moderating effect of word-of-mouth (WOM) on the relationship between customer satisfaction and WCI. The study found that online shopping is a vital and interesting activity in the Qatari context, and the findings provide useful insights for future studies to explore the effects of COVID-19 on online purchase intentions. Other research has investigated the impact of product-related and social factors on the purchase intention of smartphone buyers in Nepal, as well as the predictive power of demographic factors on the purchase intention of Kosovar citizens.

Overall, the findings of this study suggest that mobile marketing can have a significant impact on online purchase intention among Nepalese consumers. Companies can use mobile marketing alerts, information, trust, and relevance to increase their online sales. However, it is important to consider the specific context and cultural factors when developing marketing and branding strategies. Further research can explore the impact of mobile marketing on online purchase intention in other contexts and investigate the effectiveness of different mobile marketing strategies.

Demographic Factors and Behavioral Biases of Individual Investors in Nepalese Capital Market

2023-09-29T10:22:37+00:00

This study aimed to analyze the relationship between demographic factors (age, gender, income, and occupation) and behavioral biases (overconfidence bias, disposition effect, and herding bias) while making share trading decisions in the Nepalese capital market. The research was conducted by distributing questionnaires to active investors with trading accounts in the Nepal Stock Exchange (NEPSE). The data was gathered from primary sources and used for statistical analysis through ANOVA and Chi-square.

The results of the analysis showed that there is a difference in overconfidence bias among different levels of income, age, and occupation, while a difference in herding bias among occupation and gender, whereas no difference is seen in the disposition effect among the demographic variables. This finding is consistent with other studies conducted on the behavioral biases of individual investors in the stock market.

Understanding the factors that influence investment decisions is crucial for investors, financial advisors, and policymakers. This study provides insights into the relationship between demographic factors and behavioral biases while making share trading decisions in the Nepalese capital market. The findings of this study can be used to develop effective investment strategies and improve investment decision-making.

Constraints for Investors towards Nepalese Mutual Fund

2023-09-29T10:54:27+00:00

This study aims to evaluate mutual fund investment behavior in the context of the Nepalese mutual fund market. While there have been countless articles exploring the effects of different factors on mutual fund investment behavior of investors, no research has been found in the context of Nepal. The study intends to analyze the relationship of mutual fund awareness level, return perception, country governance, advertisement’s relevance, fund manager’s qualities, and ease of investment towards mutual fund investment behavior. The study found that among the six factors, four factors, namely awareness level, return perception, fund manager’s qualities, and ease of investment, significantly affect mutual fund investment behavior. The relationship has been measured using different statistical tools like regression and correlation. However, country governance factors and advertisement’s relevance show no relationship with mutual fund investment behavior. This study is significant because it fills the gap in the literature on mutual fund investment behavior in Nepal. The findings of this study can help investors, fund managers, and policymakers to make informed decisions regarding mutual fund investment.

Effects of Social Media Marketing on Consumer Buying Behavior

2023-09-29T13:01:04+00:00

This study examines the effect of social media marketing on consumer buying behavior in Nepal, a typical developing country. The study used non-probability convenience sampling to survey 108 consumers and analyzed the effect of purchase intention, social network, social influence, and content marketing. Descriptive statistics, correlation, ANOVA, and multiple regression were employed for data analysis.The findings indicate that consumer buying behavior can be influenced by focusing on social network, social influence, and content marketing. The study aligns with previous research that highlights the importance of these factors in influencing consumer behavior. However, it is important to note that the literature review reveals a lack of research on the impact of social media on purchasing decisions in developing countries like Nepal.

The implications of this study are significant for marketers in Nepal. Firstly, marketers should prioritize social media marketing strategies to influence consumer buying behavior. Secondly, they should pay attention to building strong social networks, leveraging social influence, and creating compelling content to engage consumers. Thirdly, marketers should consider the role of purchase intention in shaping consumer behavior. Lastly, developing effective social media marketing strategies is crucial for influencing consumer buying behavior. In conclusion, this study contributes to the understanding of the effect of social media marketing on consumer buying behavior in Nepal. The findings suggest that social media marketing can influence consumer behavior, and the identified factors of social network, social influence, and content marketing play a crucial role. The study highlights the need for further research in this area and provides valuable insights for marketers seeking to leverage social media to drive consumer engagement and purchasing decisions in developing countries like Nepal.

COVID-19 and Digitization of SMEs: The Impact and Way Forward

2023-09-29T13:08:58+00:00

The Covid-19 pandemic has brought significant changes to the global economy, particularly in terms of digitization. This study aims to examine the role of digitization in helping small and medium-sized enterprises (SMEs) survive during the pandemic in Nepal and assess its sustainability for the future. The sample for this study consists of 52 SMEs from various industries such as clothing, food, and retail businesses. A quantitative research approach is employed to analyze the data. The findings of this study indicate that there was little to no change in the adoption of digitalization among SMEs before and after the crisis. This suggests that the level of digitization in SMEs remains relatively unchanged in the post-Covid-19 period. However, in terms of sustainability, the study reveals that SMEs need to undergo digital transformation to ensure their long-term viability. This finding aligns with previous research that emphasizes the importance of digital technologies for SMEs in emerging markets.

The literature review supports the notion that social media advertising can increase brand loyalty and provide opportunities for direct interaction with potential customers. Additionally, studies have shown that social media influencers have a positive impact on the buying decision process of customers. Furthermore, research has demonstrated that social media marketing influences consumer decision-making processes.

It underscores the potential benefits of digitization in terms of survival and sustainability. The findings suggest that SMEs should prioritize digitalization efforts to adapt to the changing business landscape and enhance their competitiveness.

In conclusion, this study emphasizes the importance of digitization for SMEs in Nepal, particularly in the context of the Covid-19 pandemic. The findings indicate the need for SMEs to embrace digital transformation to ensure their long-term viability.

Nepalese Stock Market Volatility During Catastrophic Events (Covid-19)

2023-09-29T13:23:40+00:00

This study investigates the impact of the COVID-19 pandemic on the stock market in Nepal. While prior research has shown the significant impact of catastrophic events on stock market volatility, there is a lack of research specifically examining the Nepalese context. The study aims to explore the effects of the pandemic on stock market performance and volatility, with a focus on the government's response to the situation. Descriptive statistics, correlation analysis, and hypothesis testing are used to analyze the data and assess stock market volatility, return, and overall performance. The findings suggest that the short-term impact of the COVID-19 outbreak and government policy measures had a significant and adverse effect on stock market volatility, return, and overall performance. This study contributes to the understanding of the Nepalese stock market dynamics during the COVID-19 pandemic and provides insights for investors and policymakers.

Comparative Analysis of Pre and Post merger: Effect on the Financial Performance of Microfinance Institution in Nepal

2023-09-29T13:33:03+00:00

There are no specific studies available on the impact of mergers and acquisitions on the financial performance of Microfinance Institutions in Nepal.

Other studies available on the impact of funds and investments on the financial performance of organizations However, these studies are not directly related to the impact of mergers and acquisitions on the financial performance of Microfinance Institutions in Nepal.

This study aims to analyze the effect of pre and post-merger financial performance of Microfinance Institutions (MFIs) in Nepal. The study has taken four merged Microfinance Institutions of Nepal as the sample. The study has used paired sample t-tests to analyze the data. The findings of the study showed that after the merger, the financial performance of the Microfinance Institutions in Nepal has not improved. The study found that there were no changes in the Earning per Share, Return on Equity, Return on Asset, Net profit Margin, Current Ratio, Net interest Margin and Price to Earnings Ratio. However, the study has found out that the Debt to Equity ratio has increased after the merger process. There are several studies available on the impact of mergers and acquisitions on the financial performance of banks in Nepal.