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Running Head: PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP
A STUDY ON FACTORS AFFECTING PERCEPTION OF RETAILERS
TOWARDS ACCEPTANCE OF RETAILERS' APPLICATION (SHIKHAR)
(Unilever Nepal Limited)
Business Research Project Report
Submitted to
Kathmandu University School of Management (KUSOM)
in partial fulfillment of the requirements for the
Master of Business Administration (MBA)
By
Bijay Timilsina
KU Registration Number: 021602-17
Roll No. 17337
MBA Spring 2017
Under the Supervision of
Asst. Prof. Sabina Baniya Chhetri
February, 2019
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 2
DECLARATION
I hereby declare that this business research project entitled ‘A Study on
Factors Affecting Perception of Retailers towards Acceptance of Retailers'
Application’, submitted to Kathmandu University School of Management (KUSOM)
is the result of an original research carried out in the year 2019. It is my original
work, to the best of my knowledge and belief, it contains no material previously
published or written by any other person which to a substantial extent has been
accepted for the award of any other degree of a university or other institution except
where due acknowledgement is made.
Bijay Timilsina
Registration Number: 021602-17
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 3
ACKNOWLEDGEMENT
First and foremost, I humbly express my sincere gratitude to Asst. Prof.
Sabina Baniya, my supervisor of Comprehensive Business Research for her proper
guidance, constructive advices, encouragement and valuable time.
I am also highly indebted to Mr. Sudarshan Swaminathan (Head - Customer
Development), Mr. Abhishekh Joshi (National Sales Manager), Mr. Ejaz Islam (Area
Sales Manager, Valley), Ms. Sumana Bajracharya (Human Resources Business
Partner) and all other team members of Customer Development (CD) Department of
Unilever Nepal Limited for providing me the permission to conduct research at the
organization and constantly providing me the needed information. I also express my
gratitude towards the retailers of Kathmandu Valley who helped me a great deal by
participating in research process and providing their valuable opinion and responses.
I would also like to thank Kathmandu University School of Management
(KUSOM) for providing such a magnificent opportunity to apply the theoretical
knowledge in the practical world and learn from it.
Last but not the least; I would like to thank all our teachers and staffs of
KUSOM and everyone who has helped directly or indirectly in the completion of this
research study.
Bijay Timilsina
February, 2019
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 4
EXECUTIVE SUMMARY
Introduction of technology in sales is a new concept for Nepalese fast moving
consumer goods industry. Innovative ways to manage and grow market share of a
company through the use of technology in the form of mobile application can be a
subject of interest for any FMCG company. However, Nepalese retail market has not
experienced any such technology that can help company as well mass retailers to
benefit from such initiation.
The major purpose of this study is to identify the major factors that shape the
perception of Nepalese retailers towards the acceptance of retailers' app called
Shikhar launched by Unilever Nepal Limited. By identifying and exploring those
factors, the study intends to determine whether the mobile application is appropriate
for transforming the sales function of UNL or not.
The study has been based on qualitative approach to data collection and
analysis whereby Focused Group Discussion (FGD) has been done to collect relevant
information. The participants of FGD are the secondary customers of UNL (retailers)
who represent all other mass retailers of Kathmandu valley. The participants have
been selected through convenience sampling method. The content of FGD has been
transcribed and data has been analyzed by following scissors-and-sort technique.
From the data analysis, it has been found that the major concerns of retailers
for accepting Shikhar application are their level of knowledge and familiarity with
such technology, their personal readiness to adopt innovative solutions for sales
function, attitude towards Shikhar (based on ease of use, relative advantage from app,
and social image as a result of using the app), and the retailers' confidence in
themselves being able to break status quo in terms of traditional sales pattern and shift
to innovative ways of transforming sales.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 5
Finally, suggestions and subsequent action plan that could push retailers
towards accepting Shikhar app have been provided to Unilever Nepal Limited.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 6
TABLE OF CONTENTS
DECLARATION ............................................................................................................ 2
ACKNOWLEDGEMENT .............................................................................................. 3
EXECUTIVE SUMMARY ............................................................................................ 4
TABLE OF CONTENTS ................................................................................................ 6
LIST OF TABLES .......................................................................................................... 8
LIST OF FIGURES ........................................................................................................ 9
LIST OF ABBREVIATIONS ....................................................................................... 10
CHAPTER I .................................................................................................................. 11
INTRODUCTION ........................................................................................................ 11
1.1 Background of the project ....................................................................................... 11
1.2 Problem statement ................................................................................................... 12
1.3 Objectives of the project ......................................................................................... 13
1.4 Significance of the project ...................................................................................... 13
1.5 Scope and Limitations of the project ...................................................................... 14
1.6 Organization of the project report ........................................................................... 14
CHAPTER II ................................................................................................................. 16
METHODOLOGY ....................................................................................................... 16
2.1 Research Design...................................................................................................... 16
2.1.1 Purpose of the study ............................................................................................. 16
2.1.2 Type of Investigation ........................................................................................... 16
2.1.3 Study Setting ........................................................................................................ 16
2.1.4 Extent of Researchers' Interference ..................................................................... 16
2.1.5 Unit of Analysis and Time Horizon ..................................................................... 16
2.2 Population and Sampling Design ............................................................................ 17
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 7
2.3 Data Collection Method .......................................................................................... 17
2.4 Data Analysis Method............................................................................................. 17
CHAPTER III ............................................................................................................... 19
DATA ANALYSIS AND FINDINGS ......................................................................... 19
3.1 Descriptive Statistics ............................................................................................... 19
3.2 Data Analysis .......................................................................................................... 21
3.3 Conceptual Framework ........................................................................................... 25
3.4 Review of Conceptual Framework ......................................................................... 26
3.4.1 Introduction .......................................................................................................... 26
3.4.2 Review of Theoretical Perspective ...................................................................... 26
3.4.3 Review of Theories .............................................................................................. 28
CHAPTER IV ............................................................................................................... 31
CONCLUSION, SUGGESTIONS AND ACTION PLAN .......................................... 31
4.1 Conclusion .............................................................................................................. 31
4.2 Suggestions ............................................................................................................. 32
4.3 Action Plan.............................................................................................................. 33
REFERENCES ............................................................................................................. 35
ANNEXURE................................................................................................................. 37
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 8
LIST OF TABLES
Table No. Title of Table Page Number
Table 3.1 Demographics & Descriptive Statistics of Respondents 20
Table 5.1 Action Plan Development for Solution Implementation 34
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 9
LIST OF FIGURES
Figure No. Title of Figure Page Number
Figure 3.1 Conceptual Framework of the Study 25
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 10
LIST OF ABBREVIATIONS
CD Customer Development
DSR Daily Sales Representatives
FGD Focused Group Discussion
FMCG Fast Moving Consumer Goods
KUSOM Kathmandu University School of Management
MBA Masters of Business Administration
MOC Monthly Operating Cycle
MRP Maximum Retail Price
RS Re-distribution Stockist
TAM Technology Acceptance Model
TPR Temporary Price Reduction
TPS Transaction Processing System
TSI Territory Sales In charge
TUR Total Unit Rate
UNL Unilever Nepal Limited
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 11
CHAPTER I
INTRODUCTION
1.1 Background of the project
Today, market has been experiencing a continuous advancement in
technology. For a Fast Moving Consumer Goods (FMCG) company, it has become
more challenging to attract and retain the attention of retailers towards products and
services provided by the company. Introducing innovation in the way sales is done is
one of the crucial factors for companies to generate higher sales volume than
competitors which is only possible by transforming the way traditional sales
mechanism has been administered.
Increasing market size of a company is solely dependent on how much sales it
can generate from its secondary customers i.e. wholesalers and retailers in the market.
This matter of concern is way too challenging for the companies to comprehend the
interests and desires of modern day retailers. Retailers demand for easy access to
information relating to price of products, schemes, offers, and discounts, and other
company policies regarding order placement for products. However, not all
innovations are accepted by consumers (here secondary customers of a FMCG
company). In Nepalese context, the development of technology has been taking place
quite well in recent years. However, with huge population having access to smart
phones and mobile internet services, the use of mobile applications to place order for
a company's products are not observed in the market till date.
The use of Transaction Processing System (TPS) which is retailer app
(Shikhar) for the secondary customers of Unilever Nepal Limited (UNL) is targeted to
transform the functioning mechanism of sales by leveraging technology in FMCG
market. The purpose of Shikhar app is to generate sales orders from retailers whereby
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 12
they would be facilitated as they could place orders for the company products as and
when out of stock.
The initiation from Unilever Nepal Limited to transform the way sales have
been done in the present context via the development and use of application named
'Shikhar' for its secondary customers (retailers) can be a step forward and an
innovative way sales functions in a FMCG market. However, this type of mobile
application for retail markets of FMCG is first of its kind in Nepalese market. Taking
reference from acceptance rate of other mobile applications, mainly digital payment
platforms and online shopping apps, there may be various factors that might influence
the secondary customers of UNL to accept the retailers' app, Shikhar. From the study
in international markets (mainly markets of Hindustan Unilever Limited in India) , it
is found that there are various factors that shape the perception of retailers towards the
acceptance of such innovation in terms of generating sales for a company. Those
factors that are relevant in international market need to be empirically studied in
Nepalese context before reaching to a conclusion. This study thus aims at identifying
various factors that guide and shape the perception of Nepalese retailers towards the
acceptance of innovative mobile platform like Shikhar application.
1.2 Problem statement
The acceptance of technology and innovation in retail stores for placing orders
becomes pivotal for any organization as there are instances when innovation in system
is resisted by consumers and this might lead to unwanted consequences for any
organization like UNL. The significance of innovation relies on the acceptance and
adoption of new ideas rather than just the emergence of new ideas.
Different attributes are responsible to drive retailers towards the acceptance
and use of innovative products, service or system. Consumers resist innovation due to
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 13
perception of different risks associated with the use and dismissal of innovative
products and services. Here, the researcher is primarily concerned with identifying
different factors that shape the perception of retailers in accepting retailers'
application. For this a single statement of problem was framed – what are the
determinants of retailers' acceptance towards sales transformation via use mobile
application Shikhar?
More specifically, the present researcher was concerned to assess and evaluate
various factors that make retailers accept or reject the innovative products like
Shikhar in terms of making use of digital platform for driving sales of UNL. Taking
this into account, the research tries to address the following questions:
What are the factors influencing the perception of retailers towards the
acceptance of retailers' app?
What drives a retailer to break from his/her status quo and accept a new
product innovation?
1.3 Objectives of the project
The objectives of the research are as follows:
To know the factors that influence retailers to accept Shikhar application
in terms of generating sales.
To assess the factors that drives a retailer to break from his/her status
quo for accepting Shikhar app and identify the relationships between
these factors and acceptance of Shikhar app.
1.4 Significance of the project
This report on ‘A Study on Factors Affecting Perception of Retailers towards
Acceptance of Retailers' Application’ focuses on identifying the factors that are linked
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 14
with creating impact on the tendency to accept new products to assist sales function of
UNL . By knowing various independent and moderating variables, Unilever Nepal
Limited can embrace the inclusion of the outlined factors to ensure that retailers do
not show reluctance to accept the products that are not familiar to them. Innovation
like Shikhar apps goes in vain if it is not accepted and adopted by retailers. The
exploration of different variables that are directly or indirectly linked with shaping the
perception for accepting retailers' app also brings insights on how to drive the
behavior of retailers towards the use of technology in transforming the sales of UNL
as well as other companies operating in similar industry in the market.
1.5 Scope and Limitations of the project
This research aims at identifying and exploring the factors that determine the
perception of retailers towards acceptance of retailers' application. It is primarily done
in partial fulfillment of the requirement of Masters of Business Administration
(MBA) degree of Kathmandu University School of Management (KUSOM). Though
this is an applied research, the findings of the research are applicable to other
organizations of similar nature. The major limitations of the project is that this study
is confined to some selected retail outlets of Kathmandu Valley which might not
reflect the true picture of retailers scattered all over Nepal. Similarly, this is a
qualitative research and thus the output generated might differ from retailer to retailer.
Finally, this research has further scope for quantitative study using statistical tools to
test the validity of the variables identified.
1.6 Organization of the project report
This report is divided into four chapters which are as follows:
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 15
Chapter I: Introduction
This chapter deals with the background of the study, problem statement and
research objectives as well as research significance, scope, and limitations.
Chapter II: Research Methodology
This chapter deals with different methodological paradigms related to the
study.
Chapter III: Data Presentation and Analysis
This chapter includes the presentation, analysis, and diagnosis of the data
along with important findings of the study. It also explores literatures to review the
conceptual framework thus outlined and discusses about product innovation,
acceptance and theories relevant to these concepts.
Chapter IV: Summary, Suggestions, and Action plan
This chapter presents the major closing remarks and the implications of the
study to marketers and other researchers for similar future study.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 16
CHAPTER II
METHODOLOGY
The study has been shaped using the following research methodology:
2.1 Research Design
2.1.1 Purpose of the study
The purpose of this study is to explore the potential factors that shape the
perception of retailers towards acceptance of innovative mobile application named
Shikhar for transforming the way sales function has been implemented throughout
secondary customers of UNL.
2.1.2 Type of Investigation
This is an exploratory study since the variables impacting the research need to
be identified and explored.
2.1.3 Study Setting
The study setting for this research is field study as the discussion was
conducted outside their natural work setting.
2.1.4 Extent of Researchers' Interference
There has been minimum level of interference from the researcher as the
researcher needed to direct the discussion in a particular direction (as and when the
discussion went out of context). However, the study has been done with due
consideration to biases that might exist. The researcher has not manipulated any
situation entirely to collect the data.
2.1.5 Unit of Analysis and Time Horizon
The unit of analysis for the study is retailer as an individual. The participants
of the FGD represent an individual. The study is completed at one instance of time.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 17
The study automatically comes to an end when responses from the participants are
obtained. So, this is a cross-sectional study.
2.2 Population and Sampling Design
The entire retailers of Nepal are the population of the study. Due to time and
resource constraints, the study has been conducted using a Focused Group Discussion
(FGD) with 5 retailers of Kathmandu Valley which has been selected by using non-
probability sampling method. The respondents are selected at ease of the researcher so
this is convenience sampling.
2.3 Data Collection Method
The data has been collected with the help of semi-structured questionnaires in
FGD from a total of 5 retailers which comprised of 3 male and 2 female retail outlet
owners. The FGD with the retailers have raised several issues encouraging the
participants to express their views regarding the acceptance and use of Shikhar
application. Similarly, the features and operating mechanism of the application has
been explained to all the respondents to generate more accurate and reliable response
towards the acceptance of retailers' application.
2.4 Data Analysis Method
The analysis and interpretation of FGD typically requires great deal of
judgment and care on the side of researcher, be it qualitative or quantitative research.
The analysis of qualitative data relies on the research question and the purpose of data
collection. The present study typically followed transcribing the responses from the
participants of discussion. The responses were audio-taped for transcription and for
any future reference. Similarly, scissors-and-sort technique was used to identify those
sections relevant to the research questions. Short phrases have been used as codes. By
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 18
coding important sections of the transcribed data, the major themes and issues have
been identified and extracted. Those major themes and issues are presented as major
findings of the study.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 19
CHAPTER III
DATA ANALYSIS AND FINDINGS
For most participants, pertinent issues relating to acceptance and use of
Shikhar app involved the operational difficulties arising due to resource costs like cost
of using internet, availability of smart phone that supports the application, etc. The
most common mention was the need for knowledge about the technology and relative
benefits that the retailers would get from using the technological platform.
Respondents were of the view that sales function associated with such mobile
application might work in the days to come; however, they also felt the necessicity of
some amount of financial benefits in the form of Temporary Price Reductions (TPR)
as a result of using the application.
Participants were aware of the digital technology being used by Daily Sales
Representatives (DSRs) for taking orders from them. This also made the discussion
easy as the retailers were already used to the Isquare application being used by DSRs
for order taking from the retailers. In addition to the issues related to familiarity and
complexity of using Shikhar application, participants mentioned issues such as their
ability to use the digital platform, necessary resources to operate the app, and their
own level of enthusiasm to use the app.
3.1 Descriptive Statistics
The participants were inquired about their general demographic information
and other knowledge regarding Shikhar app before formally beginning the focused
group discussion. These are presented in the following table:
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 20
Table 3.1: Demographics and Descriptive Statistics of Respondents
Measure Items Frequency Percentage
Age
25-30 yrs 1 20 %
31 – 35 yrs 2 40 %
35 years and above 2 40 %
Item Total 5 100.0 %
Gender
Male 3 60 %
Female 2 40 %
Item Total 5 100.0 %
Level of Education
Below Grade 10 2 40 %
Intermediate 2 40 %
Undergraduate 1 20 %
Item Total 5 100.0 %
Prior Knowledge about Shikhar
Yes 0 0 %
No 5 100 %
Item Total 5 100.0 %
The above table shows that the participants have no prior information and
knowledge about retailers' app Shikhar going to be tested and implemented by the
company, if proved successful. The respondents of FGD included 60 percent of male
participants and 40 percent of female participants. Similarly, from the above table it
can be inferred that majority of the respondents have no higher education (those at
intermediate or undergraduate have also not completed their education because of
some reasons). The age group of the participants however shows that they might be
interested in learning about some new ideas.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 21
3.2 Data Analysis
The second session started with an FGD whereby the participants described
the use of such mobile application came with multiple difficulties such as English
language used in the app, complex process for placing orders, etc. They, at this point
of time, did not seem much interested in making use of any mobile apps for
transforming the sales function of UNL. Specifically, the findings from the FGD on
this issue are presented as below:
a. Product Familiarity
Participants were concerned with the knowledge and personal experience of
using any such mobile applications in their day-to-day activities. There were very few
retailers who mentioned digital technology currently being used by them. The
participants emphasized on the importance of product knowledge to break their status
quo and accept innovative products.
Mr. A said, "I do not have much interest in using such mobile applications for
any purpose. In my view, lack of knowledge about such technologically advance
platforms can be hindrance for accepting such application. It is of no meaning if I
have no idea about the product and have no prior experience of using such systems."
When asked about any personal experience of such mobile applications, Mrs.
D said," If I hear about any new system, I look for ways to try and experiment with it."
Also, from the discussion, it was found that receptiveness to new ideas,
promptness to try new things, decision-making about new ideas, and degree of
temptation to try innovative products at personal level determines the likeliness of
trial and adoption of such innovative applications.
Mr. E said, "I seek for information about any new mobile applications with my
daughter and learn the ways to operate and comprehend its functions in detail."
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 22
However, Mr. B said that he doesn’t like to accept anything that is completely new
and has not been familiar with prior to accepting it completely.
b. Compatibility of use
Many participants acknowledged that they need to be updated with technology
to transform the traditional ways of placing orders and gathering information about
product prices, schemes, portfolio, claims on Monthly Operating Cycle (MOC), etc.
However, from the discussion, it can be deduced that retailers do not completely feel
compatible with use of application like Shikhar.
Ms. C said, "I feel that the DSRs do not completely explain about the schemes
and offers ongoing on the MOC and focus only on those products that generate high
values. So, I think Shikhar application is something I should start using for my own
benefit." Other participants also agreed to this point of Ms. C.
Mr. E added, "I think I need to have this application installed in my mobile so
that I can know if I am cheated on product prices during schemes provided by the
company."
Mr. B expressed his views that mobile application for retailers like him would
not fit well with the level of comprehension and understanding. He added, " I do not
feel need for such system at this point of time."
Participants also mentioned about their existing interest and whether their
longing for accepting such mobile application makes a better match with their
lifestyle and values. Mr. A said, "I doubt whether such application would be
compatible with my existing needs and experiences or not."
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 23
c. Attitude towards the product
Respondents agreed that Shikhar application, if accepted and used needs to be
simple enough for retailers to operate. They mentioned that coming up with such
innovative platform is not completely enough to accept and use the application.
Therefore, expectations from retailers about the ease of use, relative benefits they
would get from the app, fairness in communication of schemes and offers, and the
degree of social image (if the app is used) need to be fulfilled to shape positive
perception about the use of Shikhar application.
Mrs. D said," The system needs to be very simple so that retailers easily
understand the steps for using the app. I think the use of English language can be a
great hindrance for successful implementation of this type of mobile application."
Mr. A said," The images of the products and the prices, both Total Unit Rate
(TUR) for retailers and Maximum Retail Price (MRP) that can be charged to
customers, most be clearly visible and in larger fonts so that I do not feel difficult to
know about product portfolio and the respective prices."
Mr. E pointed to the importance of app as it would offer retailers like him to
make selection across large product categories easier and also give retailers privilege
of ordering products anytime as per their convenience which helps them in demand
and stock planning as well.
Similarly, Mr. B said," I still do not perceive this application as necessary.
However, if all other retailers start using it, I cannot isolate myself from the market
trend."
Ms. C said," If it comes to enhancing my image among the retailers and
signals my personal uniqueness among people, I can think of giving Shikhar
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 24
application a try. But, this should not add any extra financial and intellectual burden
on me."
d. Personal Enablers of Change
Participants expressed mixed opinions regarding their readiness to accept
Shikhar application. They mentioned that the degree of accepting and using such
systems depends on individual level of innovativeness. In addition to this,
participants also focused on the availability of necessary resources to use Shikhar
application. Also, they mentioned about the presence of someone else (be it DSRs,
family members, or any one available) to get necessary guidance and help to operate
the application.
Mr. B said," I have no one in my family that could help me learn this type of
system. I feel that this platform is out of my control."
Mrs. D said," This type of system would not be any issue for me since I have
installed Wi-Fi and could get help from my husband if I encounter any difficulties
using this type of applications."
Similarly, Mr. E said," I think those who use social media in mobile would not
have that much difficulty to understand the operation of this type of application."
Ms. C said," If this type of technology facilitates me to get better outcomes
than I am getting at present, I would definitely try and accept Shikhar application."
Therefore, from the discussion, it is apparent that people understand the
importance of new system to transform the ways of traditional sales function. They
also believe that use of technology would facilitate them in making orders anytime,
anywhere as per their convenience, search from a rich catalogue of UNL brands and
categories and get notified about the latest schemes and offers that are running.
However, participants of discussion are skeptical about user friendliness, ease of
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 25
operation, and relative advantage of accepting such retailers' application called
Shikhar designed and developed by Unilever Nepal Limited. The discussion also
pointed to the necessicity of trial ability of such technology before full phase
implementation for the retailers in the market.
3.3 Conceptual Framework
After the study, it is observed that the perception of retailers towards the
acceptance of Shikhar application is affected by four major variables as explained in
chapter four of the study. The following conceptual framework has been developed:
Figure 3.1 Conceptual Framework of the Study
From the above conceptual framework, it can be concluded that the perception
of retailers towards acceptance of Shikhar app can be made positive if they are
Familiarity
Knowledge
Innovativeness
Compatibility
Attitude
Complexity
Relative Advantage
Social Image
Personal Change Enablers
Acceptance of Shikhar App
Independent Variables Dependent Variable
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 26
provided required information about the functions and operating procedures of app.
They also need to be motivated towards giving Shikhar app a try and experiencing
added benefits from it.
3.4 Review of Conceptual Framework
3.4.1 Introduction
There are various literatures carried out to identify factors that lead to
innovative product acceptance internationally but few studies have been carried out in
Nepal to know about the influence of different variables that have an impact on
determining the perception of consumers (here referred to as retailers in case of UNL)
towards his/her tendency to accept innovation in terms of sales function via mobile
application like Shikhar developed by Unilever Nepal Limited. This chapter explores
the reviews done in various contexts of different countries to know about influence of
social factors towards moderating favorable attitude ultimately leading to product
acceptance. Literatures considering social influences and other factors like product
attributes, compatibility, personal factors that affect innovative product acceptance are
explored. This chapter commences with the general study of product innovation and
innovation acceptance by consumers in context of mobile applications through the
analysis of literature. The study further explores a range of drivers towards acceptance
in which the role of social factors is emphasized.
3.4.2 Review of Theoretical Perspective
Conceptual Understanding of Product Innovation
Innovation has been the recent focus to thrive well in the competition. Rogers
(2003) has stated that innovation is a product, idea, practice or even processes that are
perceived to be new by individuals. Innovation focuses on originality, newness or
uniqueness and it brings opportunities for organizations to grow, expand and progress
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 27
in the market (Wang & Ahmed, 2004). Lavinsky (2013) states how product
innovation helps to create new products which can be a valuable asset for the
company to differentiate itself from the competitors. He further explains on how
product innovation ,if carried out properly, can lead to better outcomes while stating
the possibility that excessive product innovation may not always bring good results
for the companies (Lavinsky, 2013).
Innovation is even more substantial in realms of technology that also includes
the instance of growing mobile applications. Nevertheless, innovation and invention
are often used synonymously in technological field that is stated to be correct. Roger
(2003) has created distinction between invention and innovation such that invention
focuses on processes to create new ideas while innovation is more inclined towards
adoption of new ideas. He asserts that invention turns into innovation only if certain
consumers start adopting it. Furthermore, Carayannis et. al (2003) place distinction
between technology and innovation such that technology is like a procedure or
methodology to facilitate innovation, For instance, use of technology has created to
product innovations like different mobile applications for digital payment.
Moon and Kim (2001) mention about how the need for innovation alters
depending on whether the underlying objective for purchase is utilitarianism or
hedonic. In utilitarianism approach, the focus is on cognitive and rational aspects
while for hedonic, the pleasure or happiness factor matters. For acceptance of
innovation through technology like mobile applications, the hedonic factors are seen
to creating substantial impact.
Conceptual Understanding of Consumer Acceptance
The acceptance of product innovation becomes pivotal for organization as
there are instances when innovation in product is not preferred by consumers and this
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 28
leads to detrimental consequences for organization. Roger (2003) depicts on how
significance of innovation relies on acceptance adoption of new ideas by consumer
rather than just the emergence of new ideas. Yang et. al. (2012) consider various
factors such as user held perceptions of beliefs, attitudes and external stimuli that
impact on the acceptance of innovative products. For accepting products that
individuals have never seen or experienced, they look forward for other factors rather
than just the evaluation of the product such as the feelings associated with seeing or
using the product, the influence of referrals and superiority feeling associated with the
products compared to other products.
3.4.3 Review of Theories
There are different models studied under the acceptance and adoption of
product innovation of models. Most models, however, focus on why innovations are
accepted and to which level these innovations are accepted. Different literatures have
presented models that depict the factors leading to acceptance of product innovation
and the relationship between these factors and product acceptance.
a. Theory of Planned Action
This theory of planned behavior was developed by Icek Arjen and it focuses
that ‘Intentions to perform behaviors of different kinds can be predicted with high
accuracy from attitudes towards the behavior, subjective norms, and perceived
behavioral control; and these intentions, together with perceptions of behavioral
control, account for considerable variance in actual behavior’ (Arjen, 1991). Theory
of Planned behavior highlights intentions as the core nugget and indeed the
motivation to perform certain behaviors. By influencing on the intentions, behavior
can be affected and modified. Increase in intensity of intentions, according to theory
of planned behavior, will lead to increase in acceptance behavior.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 29
The theory of planned behavior focuses on three factors to influence intentions and
the acceptance behavior:
Firstly, the attitude towards the new products affects the intentions to accept it.
Favorable attitude towards innovation strengthen the acceptance intentions.
Next factor is the normative belief that depicts the impact of social pressure
from the environment. Positivism from other individuals, families and society
towards the new products make acceptance intentions strong.
Finally, the perception of difficulty and complexity towards the use of new
products affects the acceptance intentions and unlike the above two factors,
this factor of perceived behavioral control also influences the actual
acceptance behavior.
Researchers use theory of planned behavior to study about intention and actual
behavior towards acceptance of new products.
b. Motivational Theories
Rao & Troshani (2007) mention on how motivational theories can be used to
comprehend the acceptance level of consumers for product innovation, mostly in case
of technological associated product like mobile applications. The extrinsic and
intrinsic motivation that motivational theories mention affect the intentions towards
product acceptance and hence its usage.
c. Technology Acceptance Model (TAM)
In addition to theory of reasoned action, the technology acceptance model
accepts two more factors to understand the consumer behavior. These two factors
include perceived usefulness and perceived ease of use such that the former considers
the extent to which a person believes the usage of product will contribute to the
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 30
improvement of individual’s performance while latter reflects the degree to which the
product is easy to use. The inclusion of these two factors helps to identify consumer’s
tendency towards product acceptance. This model, TAM is widely used to understand
acceptance of technological innovative products while the limitation of this model is
that it does not include the important factor of social influence (Rao & Troshani,
2007).
d. Innovation Diffusion Theory
Innovation diffusion is defined as “the process by which an innovation disseminates
over time among the members of a social system” (Rogers, 2003). Rogers (2003)
further explains the five characteristics in innovation diffusion that creates impact on
the acceptance of products:
Relative advantage: Perception of innovation better than other preceding technologies
Complexity: Perception of technology as being difficult to use or understand
Compatibility: Perception of innovation as being consistent with the existing values,
needs or experiences of potential adopters
Trial ability: The degree to which an innovation may be experimented with on a
limited basis prior to adoption
Observability: Results of innovation easily visible and communicable to others
Likewise, the extent to which the communication is flown to the consumer
about the product also affects the likely acceptance of the product innovation. Social
influence is another crucial factor that creates influence on acceptance of products
such that the kind of relationship or networks within the social system and the
communication within this system can have influence on the perception of individuals
and their tendency to accept new products (Rogers, 2003).
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 31
CHAPTER IV
CONCLUSION, SUGGESTIONS AND ACTION PLAN
4.1 Conclusion
The study was primarily focused at identifying the components that shape the
perception of retailers towards acceptance of technology in sales function. By
identifying the variables that make retailers accept innovation in the form of retailers'
mobile application (Shikhar), the study tried to explore if the retailers would react
positively to the initiation of Unilever Nepal Limited to implement retailers' app in the
near future. Ultimately, the study tried to identify the factors that would push the
retailers towards use of mobile application for making orders for UNL products.
From the study, it can be concluded that retailers are mainly concerned with
the relative benefits they would get from using any technology like Shikhar app and
the operational difficulties that might create challenges for accepting the system.
Similarly, some other factors like retailers' level of innovativeness and readiness to
experiment new system thereby breaking their status quo and the belief that they can
learn to comprehend and accept such application determine the success of Shikhar
application in retail markets of Nepal. It appears that people are unknown about any
such system which could transform sales function for the company. Rather, people are
used to traditional method of placing orders and gaining information about products
from the sales representatives alone.
It can also be concluded that the retailers need to be trained and guided to
make them feel compatible with accepting and using such technology in sales. Also, it
can be concluded that attitude and perception of retailers depends on other retailers
purchasing UNL products using the application. Therefore, the study concludes that
retailers have somewhat positive attitude towards Shikhar application provided that it
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 32
does not give them any financial burdens and is not that much difficult to operate.
Meanwhile, the study concludes that Unilever Nepal should also identify possible
measures to make the retailers know about the product in a simplified and cost
effective means.
4.2 Suggestions
In order to make the retailers comfortable enough to develop positive
perception towards the use of retailers' application (Shikhar) in the days to come,
Unilever Nepal needs to consider some actions that break the status quo of the
retailers and induce them towards using Shikhar. For this, the researcher has proposed
the following suggestions to the company:
Unilever Nepal should produce informative contents in the form of posters and
templates that can be circulated to the retailers for making them more familiar
with the ways of operating the application. This helps the company to drive
the behavior of retailers towards developing positive associations with the use
of technology in placing order for its products.
Perception of retailers can shaped positively only when they feel themselves
compatible with the use of application. For this, the company should appoint
one independent DSR for each Re-distribution Stockist (RS) to help retailers
understand the added benefits they would get from using the app over
traditional method of placing orders and communicating with the RS via
DSRs.
The company should produce video contents such as YouTube tutorials that
can be easily understood and implemented by retailers with weak educational
background or experience of using such advanced systems.
PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 33
Unilever Nepal should incorporate Nepali language in its application since
there are many retailers in the rural RSs who don’t understand English as a
medium of operating the application.
The company, if economically viable, should provide certain offers to those
retail outlets that place their orders via Shikhar application to motivate and
push them towards using the app.
In addition to the above suggestions to the company, supervisors and Territory
Sales In-charge (TSI) must be circulated in field marketing such that they
make retailers know about the relative advantages of Shikhar like demand and
stock planning features, easy and convenient order placing as and when
required, and removal of information asymmetry between the retailers and the
company.
All the above mentioned suggestions would direct the behavior of retailers in
shaping positive perception towards the use of Shikhar thus breaking their status quo
and implementing Shikhar for transforming the sales function of the company. For
this, the variables identified through discussions with the retailers should be addressed
by the company.
4.3 Action Plan
Considering the aforementioned findings of the study, the following
implementation plan has been laid down:
34
Table 4.1 Action Plan Development for Solution Implementation
Action Objective of Action Important Activities Tentative
Budget
Time Frame Result Expected
Training and
Guidance
To provide basic application
related knowledge and skills
to retailers
DSR circulation from
respective RSs
Nrs. 30,000 2 months Be able to operate Shikhar
effectively
Infomercials
Development
To make retailers confident
and revise (when necessary)
about their action of using
app regularly
Video tutorials in
social media like
YouTube and
Nrs. 25,000 1 month Understand the function of app
completely
Reduce behavioral complexities
associated with using the app
Other
Campaigns
To communicate Shikhar's
value to the retailers
To motivate retailers
towards using Shikhar
Posters and pamphlets
Brochures
Awareness campaigns
Nrs. 50,000 3 months Purchase orders from retailers via app
Increased concern for adopting
technology in sales function
35
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PERCEPTION TOWARDS ACCEPTANCE OF SHIKHAR APP 37
ANNEXURE
Annexure – I: Participants' Information
S.No. Name of Participant Outlet Name Address
1. Mr. A Dhakal Kirana Stores Sallaghari
2. Mr. B Nilbarahi Ratna Stores Bode
3. Ms. C Subidha Mart Duwakot
4. Mrs. D Om Cosmetics Purano Thimi
5. Mr. E Hamro Kirana Pasal Bode
Annexure – II: Sample Questionnaire
a. Have you heard of Shikhar application from any sources prior to this discussion?
b. Have you used any other mobile application for any utility purposes? If yes, what
were the reasons behind using that?
c. What factors might influence a retailer to use order placing platform like Shikhar?
d. Would you use Shikhar if your neighboring retailer starts using it?
e. What external factors do you think might affect the perception towards retailers'
app?
f. Would you be ready to move from traditional method of sales to technology
enabled system like Shikhar?
g. Do you think that using Shikhar would be burdensome for you?
h. Do you have any limitations in terms of necessary resources to operate Shikhar?
i. Please suggest any improvement measures to the company regarding retailers'
app.
j. Are you ready to accept Shikhar app now?