"Farmers’ Satisfaction and Loyalty on Hybrid Maize Seeds in Nepal: Perspectives using Value Discipline Model" Introduction Agriculture, the dominant sector in Nepal contributes approximately 23.95% to the nation's GDP (Nepal Rastra Bank, 2022). Among staple crops, maize is the second most cultivated after rice, with 985,565 hectares harvested in 2022, yielding 3,106,397 metric tons (MT) at an average productivity of 3.15 MT/ha (Ministry of Agriculture and Livestock Development, 2023). Maize occupies a vital position due to its diverse uses in food, feed, fodder, fuel, and as a raw material for agro-based industries globally. Rising dietary shifts, population growth, and income levels have increased the demand for maize (Nepal Agricultural Research Council, 2021). Farmers face increasing pressure to boost production as urbanization reduces arable land and food supply struggles to keep pace with population growth (Giller, 2020). Hybrid maize seeds have emerged as a solution, significantly increasing yields compared to open-pollinated varieties, provides higher annual incomes, making it a more efficient option for increasing total maize production. Hybrid Maize seeds help farmers to adapt to changing climatic and soil conditions, thereby playing a key role in ensuring food security. By adopting hybrid maize seeds, farmers can strike a balance between economic profitability and responsible environmental management, ensuring both immediate benefits and long-term sustainability. In Nepal, hybrid maize cultivation began in the 1980s with seeds imported from India. Farmers have been growing hybrid seeds for the last 15–20 years in terai, inner terai, valley, foot hill and mid hill of Nepal. For farmers, the choice of hybrid maize seeds is a significant investment that directly impacts their livelihoods. Satisfaction among farmers is essential because it determines not only the success of the current planting season but also long-term loyalty to a particular seed brand. Also, satisfied farmers are more likely to recommend the particular seed brand to friends and relatives, which creates lasting relationships between farmers and seed companies. Therefore, understanding the factors that drive satisfaction is essential for seed companies’ growth and guides in maintaining competitive advantage through farmers loyalty. A quantitative survey with structured questionnaire among 750 hybrid maize farmers in five districts of Nepal is performed. Kanchanpur, Bardiya, Dang, Sarlahi and Jhapa districts are selected as these areas are the prominent locations for maize production. The research intends to measure farmers’ satisfaction and brand loyalty among hybrid maize seed farmers using the constructs of Value Discipline Model developed by Treacy and Wiersema (1995). For the analysis of the data, descriptive statistics and OLS are used. The value discipline model outlines three key strategies for market leadership: product innovation, operational excellence, and customer intimacy. A six-point Likert scale was used to measure constructs of the value discipline model where 1 being “Completely Disagree” and 5 being “Completely Agree”. Product innovation measures companies’ ability to develop and implement new or improved products to meet farmer’s needs. The product innovation is measured via three questions: highly productive maize seeds, use of extensive research & technology, customization of the seeds based on environment & geographical location. Similarly, operational excellence evaluates the efficiency of the company's operations. The operational excellence is measured using three questions: seed availability, information dissemination, and the variety of seed choices provided. Likewise, customer intimacy refers to an approach that focuses on developing deep, meaningful relationships with farmers to understand their needs, preferences and behaviors. Customer intimacy is assessed through factors such as advisory services, brand trust, and the value for money offered. Farmer’s satisfaction is a degree to which farmers feel their expectations, needs, and requirements are met. It is measured using three questions: consistent quality of seed, consistent price and excellent customer service. Brand loyalty among hybrid maize seeds farmers is measured using Net Promoter Score (NPS) a widely used metric ranging from 0 to 10 for gauging customer loyalty. More than 85% of hybrid maize farmers in Nepal use imported seed brands. The dominance of the imported seeds can be explained due to superior quality and higher yield potential compared to local varieties among the farmers. More than 50% hybrid maize farmers own below 10 khattas of land (0.33 hectares) and 28% owns 11-20 khattas of land (0.37 to 0.68 hectares). The low land ownership among hybrid maize farmers indicates the constraints in maize commercial farming. 55% of the farmers have been using hybrid maize seeds of the particular brand for more than five years. The long-term usage of the particular maize seed brand underscores deep-rooted trust towards the particular brand, indicating the consistent performance of the maize seed brands. More than 50% of the farmers receive information about hybrid maize seed companies from other farmers and/or lead farmers. Recommendations from agrovets is the major source in cultivating the hybrid maize seed of a particular brand. 23% of the farmers prefer radio broadcasts to receive information on hybrid maize seeds followed by television (16%), road shows (14%), Krishi mela (13%) and so on. 72% of the farmers like the high yielding quality of the particular brand, 16% likes the good to eat quality followed by price (5%), maturity cycle (3%) and so on. The effect of construct on Value Discipline (Product Innovation, Operational Excellence, and Customer Intimacy) are measure on farmers satisfaction. Operational excellence (0.782, P=0.000) and product innovation (0.128, P=0.016) has a statically significant effect on farmer’s Satisfaction. Operational excellence has a strong relationship indicating the brands need to focus on efficient and reliable delivery of high-quality seeds, along with clear information delivery and seed availability enhances farmers satisfaction. Product innovation has nominal effect on farmer’s satisfaction, brand should focus in delivering highly productive maize seeds with extensive research and technology, customization of the seeds based on environment and geographical location. There is no relationship between customer intimacy (0.069,0.212) and farmers satisfaction. Farmers appreciate the development of new or improved seeds that carter to their needs and improve productivity. However, effort to enhance customer intimacy such as personalized services or building deeper relationships may not yield substantial returns. Secondly, effect of farmers satisfaction on brand loyalty was measured. Brand loyalty (-0.1919, P=0.023), has a negative relationship with farmer’s satisfaction. Although farmers may be highly satisfied with a maize seed brand, they are often reluctant to recommend it. The close connection between agro-based products and income makes recommendations in this sector more cautious. In conclusion, companies need to focus on efficient distribution systems, reliable seed availability, and clear communication of product information for brand building. Nepal’s hybrid maize seed sector and ensure long-term farmers satisfaction, companies need to focus on delivering high-quality products through operational excellence and continuous innovation. To strengthen hybrid maize sector and ensure long term farmers satisfaction, seed companies should prioritize in delivering high-quality products through continuous innovation and operational excellence. References Giller, K. E. (2020). The food security conundrum of sub-Saharan Africa. Global Food Security, 26, 100431. https://doi.org/10.1016/j.gfs.2020.100431 Ministry of Agriculture and Livestock Development. (2023). Statistical information on Nepalese agriculture 2078/79 (2021/22). Government of Nepal. https://moald.gov.np/wpcontent/uploads/2023/08/Statistical-Information-on-Nepalese-Agriculture-2078-79-2021-22.pdf Nepal Agricultural Research Council. (2021). Annual report 2077/78. Nepal Agricultural Research Council. https://nsstrc.narc.gov.np/sites/default/files/202112/Press%20%20Annual%20report%2C%202077-78%20final%20to%20print.pdf Nepal Rastra Bank. (2022). Current macroeconomic and financial situation: Based on annual data of 2021/22. Nepal Rastra Bank. https://www.nrb.org.np/contents/uploads/2022/08/CurrentMacroeconomic-and-Financial-Situation-English-Based-on-Annual-data-of-2021.22-2.pdf Treacy, M., & Wiersema, F. (1995). How market leaders keep their edge. Fortune, 131(2), 52–57.
