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SIGNATURE PAGE
I certify that I have read this document. In my opinion, it is satisfactory in scope and
quality as a project in partial fulfillment for the graduate course of Managing Operationsand Technology held at the Kathmandu University School of Management.
Date: 26th May 2009
______________________
Instructor, Marketing Management
Ms. Ajanta Das Dutta
Kathmandu University School of Management
COPY RIGHT
All rights reserved
No part of this report may be reproduced, stored or transmitted in any form, or by any
means, without the prior permission of the authors. No patent liability is assumed with
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respect to the use of the information, contained therein. Although every precaution has
been taken in the preparation of this report, the authors assumes no responsibility for
errors or omission.
Date: 26th May 2009
Kathmandu University School of Management
DECLARATION
We, declare that this project is a result of our own work and analysis conducted on the
topic Spending habit of teenagers in the year 2009. It has not been previously
submitted for the award of any degree of any other university or institution.
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________________________
Namuna Joshi (08109)
MBA 2nd Term
________________________
Pragya Adhikari (08113)
MBA 2nd Term
________________________
Preeti Singal (08115)MBA 2nd Term
________________________
Rashmi Agrawal (08122)
MBA 2nd Term
________________________
Sushant Murarka(07326)
MBA 2nd Term
________________________
Swasti Thapa (08132)
MBA 2nd Term
ACKNOWLEDGEMENT
Our primary indebtedness goes to Ms. Ajanta Das Dutta, Course Instructor Marketing
Management for her guidance and support. Without her guidance the completion of the
report was not possible.
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We would like to thank all the students of Shuvatra School, National Institute of Science
and Technology, and Kathmandu College of Management, who helped us by filling our
questionnaire. Without their support the completion of this research and project would
not have been possible.
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EXECUTIVE SUMMARY
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Table of content
Introduction
Market research
Role of market research
Market information
Market segmentation
The Market Research Process
Quantitative Research
Qualitative Research
Using Market Research Data
Conclusion
Recommendation
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Chapter 1
Introduction
Background of the research
This research is conducted for the partial fulfillment for the requirement of Marketing
Management held at Kathmandu University School of Management. MBA II Term
students were assigned to work in group and conduct research on assigned topics. For this
purpose our group was assigned to conduct research on the spending habit of teenagers.
The research required students to develop questionnaire and generate required
information to support their research.. The project provided us with an opportunity to use
our theoretical knowledge of marketing research in a practical real life sitaution. Theresearch and report conatains the infromation tabulated regarding the spending habit of
fifty teenaged students from Shuvatara School, National Institute of Science and
Technology, and Kathmandu College of Management.
Purpose of the research
To identify the spending habit of teenagers.
Help us understand how real life market research is conducted.
Provide an opportunity to apply theoretical knowledge into a practical application.
To develop team work ability among students.
Objective of the simulation project
Develop questionnaire
Select the appropriate sample size
Tabulate the information generated
Preparation of research report
Limitations of the research
As there was time constrain making a detail study was not possible.
The validity of filled questionnaire is questionable.
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Chapter 2
Market research
Market Research is a systematic, objective collection and analysis of data about a
particular target market, competition, and environment. It always incorporates some form
of data collection whether it be secondary research or primary research which is collected
direct from a respondent.
The purpose of any market research project is to achieve an increased understanding of
the subject matter. As the markets throughout the world increasing to be more
competitive, market research is now the agenda of many organizations.
Market research is done for discovering what people want, need, or believe. It can also be
involved in discovering how they act. Once the research is completed, it can be used to
determine how to market the product. Examples of market research would be in the form
of questionnaires and surveys.
Marketing research is a form of business research and is generally divided into two
categories: consumer market research and business-to-business (B2B) market research.
The goal of marketing research in business is to identify and assess how changing
elements of the marketing mix impacts customer behavior.
Role of market research
Market research plays prized role in competitive market. The primary task of marketing
research is to provide with relevant, accurate, reliable, valid, and current information.
Market information
Market information is the informations about the relevant topic which can be obtained in
several different varieties and formats.
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Primary research is conducted by gathering original data. Such data collected for the first
is known as primary data.
Secondary research is conducted on data published previously and usually by someone
else. Secondary research costs far less than primary research, but seldom comes in a form
that exactly meets the needs of the researcher. Data collected and possibly processed by
people other than the researcher is known as secondary data.
Market segmentation
Market segmentation is the division of the market or population into subgroups with
similar motivations. It is done on the basis of geographic differences, personality
differences, demographic differences, use of product differences and psychographicdifferences.
The Market Research Process
To conduct market research, organizations may decide to undertake the project
themselves or they might choose to commission it via a market research agency or
consultancy. Whichever, before undertaking any research project, it is crucial to define
the research objectives i.e. what are you trying to achieve from the research? and what do
you need to know?
After considering the objectives, Market Researchers can utilize many types of research
techniques and methodologies to capture the data that they require. All of the available
methodologies either collect quantitative or qualitative information. The use of each very
much depends on the research objectives but many believe that results are most useful
when the two methods are combined.
Quantitative Research
Quantitative research is numerically oriented research. It requires significant attention to
the measurement of market phenomena and often involves statistical analysis. The main
rule with quantitative research is that every respondent is asked the same series of
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questions. The approach is very structured and normally involves large numbers of
interviews/questionnaires.
The most common quantitative technique is the market research survey. Quantitative
surveys can be conducted by using post (self-completion), face-to-face (in-street or in-
home), telephone, email or web techniques. The questionnaire is one of the more
common tools for collecting data from a survey.
Qualitative Research
Qualitative research provides an understanding of how or why things are as they are.
Unlike quantitative research there are no fixed set of questions but, instead, a topic guide
is used to explore various issues in-depth. The discussion between the interviewer and the
respondent is largely determined by the respondents' own thoughts and feelings.
There are also various types of qualitative methodologies. Research of this sort is mostly
done face-to-face. One of the best-known techniques in this type of market research is
group discussions. These are usually made up of 6 to 8 targeted respondents, a research
moderator whose role is to ask the required questions, draw out answers, and encourage
discussion. In addition, qualitative research can also be conducted on a one on one basisi.e. an in-depth interview with a trained executive interviewer and one respondent and a
mini group discussion (4-5 respondents).
Using Market Research Data
After compiling the data, Market Researchers evaluate it and make conclusions and
recommendations to their client or employer based upon their findings. They provide an
organizations management with information needed to make decisions on the promotion,
distribution, design, and pricing of products or services information that meets the
initial research objectives.
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Methodology
The sources of information required to conduct the marketing research are primary data
and secondary data. Primary research is research used to collect data for a specific task. It
includes information that is obtained directly from first-hand sources. Secondary data is
data that have been collected for another project and have already been published. It is
information compiled inside or outside the organization for some purpose other than the
current investigation. The sources of secondary data can be in-house or external.
The source that we used to collect information in order to conduct this research is
primary data. Primary data can be collected through various methods such as surveys,
observation, experimentation or questionnaire. Among these methods, the method that we
chose to collect the required information is the questionnaire method.
While using the questionnaire method, the first things that we did was developing a
questionnaire. The questionnaire was developed keeping in mind the various kinds and
extent of information that would be required to conduct our research. Thus we developed
a questionnaire in such a way that would address and extract all the needed information.
After developing the questionnaire the next thing that we did was that we decided the
sample size. We selected the sample size of 50 students. The reason behind choosing this
number was that 50 students would be an achievable target. Choosing too large or too
small sample size would not give the accurate results and findings. Further, we decided to
sample 25 males and 25 females (total 50 students). Keeping this 50:50 gender ratio
would help us to know about the spending patter gender wise and also to make any
further necessary comparison required.
After choosing the sample size the next step was to choose among the educational
institutes where the survey would be conducted. The factors that we considered while
choosing the institutes were location accessibility, reliability, accuracy and validity of
information provided. After considering the above mentioned factors we chose to conduct
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our survey in three different educational institutes. We chose one school, one
intermediate level college and lastly one bachelor level college.
The school that we chose was Shuvatara English Boarding School which is located at
Jhamshikhel. Here we chose to survey the students of class 9 and 10 as they would be
able to provide relevant information in a proper manner. The sample size chosen was 25
students. The gender ratio of approximately 50:50 was maintained while doing the survey
in this school. For this, we surveyed 13 male students and 12 female students.
The college that we chose for the intermediate level students was National School of
Science and Technology which is located at Lainchour. The sample size chosen was 15
students. The gender ratio of approximately 50:50 was maintained while doing the survey
in this school. For this, we surveyed 7 male students and 8 female students.
Lastly, the college that we chose for the bachelor level students was Kathmandu College
of Management which is located at Gwarko. The sample size chosen was 10students. The
gender ratio of approximately 50:50 was maintained while doing the survey in this
school. For this, we surveyed 5 male students and 5 female students.
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Chapter 3
Findings
1. Basis of getting pocket money
Time Number Percentage
Daily 5 10
Weekly 30 60
Monthly 9 18
Only when needed 6 12
Total 50 100
Frequency of Geting Pocket Money
10%
60%
18%
12%
Daily
Weekly
Monthly
Only when needed
We have taken sample size of fifty teenaged students. Among the fifty students five
students said that they get pocket money on daily basis, which constituted 10% of the
total sample. Thirty students got pocket money on weekly basis, which constitute of 60%
of total sample size. Nine students said that they get pocket money on monthly basis,
which constituted 18% of total sample size. Remaining six said that they get pocket
money only when they need it, which constituted 13% of the total sample size. Majority
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of students of Shuvatara English Boarding School said that they get money on weekly
basis. From this we can interpret that majority of school going students gets pocket
money on weekly basis. Among the students of National Institute of Science and
Technology few said that they get pocket money on weekly basis and few on monthly
basis. Here we have taken students of class eleven and twelve from National Institute of
Science and Technology. From this we can interpret that majority of plus 2 students get
pocket money on weekly and monthly basis. Majority of the students of Kathamndu
College of Management, who represents the bachelors level students, said that they get
pocket money on monthly basis. From this we can interpret that majority of bachelor
level student get pocket money on monthly basis. Thus we can interpret that the basis in
which teenagers get their pocket money is influence both by their family as well as their
academic level.
2. Monthly pocket money (in Rs.):
Amount Number Percentage
0-500 22 44
501-1000 21 42
1001-1500 5 10
1500-above 2 4
Total 50 100
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22
44
21
42
5
10
24
0
5
10
15
20
2530
35
40
45
Students No./
Percentage
0-500 501-1000 1001-1500 1500-above
Amount
Total Monthly Pocket Money
Number
Percentage
Among the fifty teenaged students twenty-two students said that the pocket money they
get range between Rs. 0-500, which constituted 44% of the total sample. Twenty-one
students said their pocket money range between Rs. 501-1000 which constitute of 42% of
total sample size. Five students said that their pocket money range from Rs. 1001-1500,
which constituted 10% of total sample size. Remaining two students said that their pocket
money is above Rs.1500, which constituted 4% of the total sample size. Majority of
students of Shuvatara English Boarding School said that their pocket money range
between Rs. 0-500. From this we can interpret that school going students get pocket
money upto Rs.500. Majority of the students of Kathmandu College of Management and
National Institute of Science and Technology, said that the pocket money they get range
from Rs. 501-1000. From this we can interpret that the amount of pocket money that one
receives is based on age as well as their academic level.
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3. Awareness regarding spending habit
Number Percentage
Always aware 18 36
Have a general idea 27 54
Neither 5 10
Total 50 100
Awareness of Spending Habit
36%
54%
10%
Always aware
Have a general idea
Neither
Among the fifty teenaged students eighteen students, who comprised of 36% of totalsample size, said that they are aware regarding their spending habit. They said that they
always calculate and properly manage their spending. Twenty- seven students i.e. 54%
said that they have general idea regarding their spending habit. But they do not calculate
and make an effort to manage their spending. Five students i.e. 10% of the total sample
size said that they are not aware and do not consider how they spend their pocket money.
Majority of the student of Shuvatara i.e. school going student said that they just have a
general idea or are not at all aware regarding their spending habit. Whereas, students of
Kathmandu College of Management and National Institute of Science and Technology,
said that they are always aware or have a general idea about their spending habit. From
this we can interpret that the majority of the teenagers who goes to school are not really
conscious about their spending habit whereas, college going teenagers have clear or
general idea regarding their spending habit.
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4. Pocket money spending items
Items Percentage
Restaurants 8
Movies 11
Canteen 24
Stationary 26
Shopping 6
Mobile 3
Gifts 4
Music 2
Transportation 14
Others 2
Total 100
By tabulating the information obtained from the fifty filled questionnaire, we found out
that majority of the pocket money i.e. 26% is spent on stationary items. 24% of money is
spent on canteen food, and 14% is spent on transportation. Remaining amount is spent on
factors like restaurants, movie, shopping, mobile, gifts, music, and other items. From this
we can interpret that majority chuck of pocket money is spend on stationary items like:
pen, pencil. Copy etc. Teenagers also spent a big portion of their pocket money on
canteen food. Majority of school going teenagers responded that their money of
stationary items. Whereas college going students said that their money is spent mostly onstationary, transport and canteen food.
5. Ability to limit spending
Number Percentage
Never 2 4
Rarely 4 8
Sometimes 6 12
Often 11 22
Always 27 54
Total 50 100
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Ability to Limit Spending
2 46
11
27
48
12
22
54
0
10
20
30
40
50
60
Never Rarely Sometimes Often Always
Ability
StudentsNo./
Percentage
Number
Percentage
From the gathered information we found that 27 students i.e. 54% of the total sample size
are always able to limit their spending. Eleven students i.e. 22% are often able to control,
and manage their spending habit. 6 students i.e. 12% said that only sometimes they are
able to limit their spending habit. Four students i.e. 8% said that only few times they are
able to limit their spending habit. And remaining 2 i.e. 4% said that they are never able to
manage and limit their spending habit. There was not a distant pattern regarding the
ability to mange the spending habit among the teenagers falling into different age group
and academic level. The response was mixed. From the received data we can say that
majority of teenagers have the ability to mange and limit their spending habit.
6. Saving pocket money
Number Percentage
Yes 18 36
No 32 64
Total 50 100
Pocke
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From the gathered information only eighteen students i.e.36% is saving their pocket
money. Remaining 32 students i.e. 64% said that they never save their pocket money.
From this we can interpret that teenagers are not engaged in saving behavior. Among the
36%, who said that they save their pocket money, mostly were the students of
Kathmandu College of Management. From this we can know that more than school going
teenagers and plus 2 level students, bachelor level students are engaged more in spending
habit.
7. Is your pocket money sufficient for you?
Number Percentage
Yes 9 18
No 41 82
Total 50 100
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Adquacy of Pocket Money
Yes
18%
No
82%
Only nine among fifty students i.e. just 18% said that they feel that their pocket money is
adequate for them. Remaining 41 students i.e.82% said that they the pocket money they
are getting is not adequate for them. Majority of the students who were satisfied from
their pocket money, were from Shuvatara English Boarding School. This shows that
majority of school going students are satisfied with their pocket money compared to plus
2 and bachekor level students.
8. Who influence your spending behavior?
Factors Number Percentage
Friends 19 38
Parents 21 42
No one 10 20
Total 50 100
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Factors Influencing Spending Habit
13
27
10
50
26
54
20
100
0
20
40
60
80
100
120
Friends Parents No one Total
Factors
StudentsNO.
/Pe
rcentace
Number
Percentage
Among the fifty students, nineteen students i.e. 38% said that their spending habit is
influence by their friends. Twenty one students i.e.42% said that their spending habit are
influenced by their parents. Ten students i.e. 20% said that their spending habit is not
influenced by anyone, and they themselves decide their spending behavior. Majority of
school going teenagers said that their spending habit is influenced by their parent.
Whereas, majority of plus 2 students and bachelor level student said that their spending
habit is influenced by their friends.
9. How often would you say you spend money on things you cant afford?
Number Percentage
Often 8 16
Sometimes 17 34
Rarely 21 42
Never 4 8Total 50 100
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8
16 17
34
21
42
48
0
5
10
15
20
2530
35
40
45
Students No. /
Percentage
Often Sometimes Rarely Never
Frequency
Frequency of Spending on Unaffordable Things
Number
Percentage
Among the fifty students, eight students i.e. 16% said that they often spend on item thatthey cant afford or goes beyond their limit of pocket money. Seventeen students i.e. 34%
said that only at times they spend on things that are above the range of their pocket
money. Twenty-one students i.e. 42% said that only rarely they spend on unaffordable
items. Remaining four students i.e. 8% said that they never spend money.
Chapter 4
Conclusion
Change in life style
Due to various source of information system such as movies, internet, daily soaps, etc.
life style of the teenagers has changed. This has increased in fashion trends.
Change in available facilities
Due to increase in number of shopping malls and sophisticated movie theaters, increase
in availability of electronic items such as mobile phones, I-pod etc. spending habit has
subsequently increased among the teenagers, so has the amount of pocket money.
Initiators of spending decision
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In the early teen ages generally spending decision is influenced and initiated by the
parents but as the time passes, they spend with their own initiation or by the influences of
the friends.
Change in needs and awareness