MN7983NI Management Learning and Research Proposal
Structure
Table of Contents
Bibhushit Shrestha
MN7983NI Management Learning and Research Proposal
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Table of Figures
Bibhushit Shrestha
MN7983NI Management Learning and Research Proposal
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Table of Tables
Bibhushit Shrestha
MN7983NI Management Learning and Research Proposal
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Abstract
Bibhushit Shrestha
MN7983NI Management Learning and Research Proposal
Structure
1 Chapter 1: Introduction
1.1 Background of Study
Nepal's "connected" population has grown rapidly: as of January 2025 there were 16.5 million
internet users (55.8% penetration) and 39.0 million cellular connections (132% of population),
indicating pervasive access to online services among Nepalis (DataReportal, 2025). Young adults
are a particularly digital population: people aged 18–24 make up 13.6% of the population and
those aged 25–34 are an additional 16.7%, so approximately 30.3% of Nepalis are in prime
"young adult" brackets that are key to e-commerce growth (DataReportal, 2025).
Infrastructure allowing online shopping is also strong and evolving. Nepal's central bank reports
that 4G/LTE currently expands 741 of 753 local levels, smartphone penetration is at 72.94%,
only 38% of households possess fixed internet, and mobile data fell to USD 0.27/GB in 2024,
circumstances favoring commerce on mobile devices and apps (Nepal Rastra Bank, 2025). Social
channels, key discovery and sales funnels also reach: 14.3 million social media user identities
(48.1% of the population; 72.8% of adults 18+) were active in early 2025 (DataReportal, 2025).
While the connected population is increasing at rapid rates, they are also exposed to risk. The
Nepal Police recorded 19,730 complaints of cybercrime in FY 2080/81 (July 2023–July 2024),
representing a 119% year-on-year increase, with the highest volumes attributed to social
platforms (e.g., 16,096 complaints attributed to Facebook/Messenger) (Nepal Police, 2024). The
central bank additionally states that digital payment mode adoption by customers is upping
customers' volumes driving transaction increases in both e-commerce and physical retail
transactions elevating the significance of safe user behavior on retail platforms (Nepal Rastra
Bank, 2025).
In this context, the study focuses on e-commerce in Nepal's young adult (aged 18-34) population
examining their use of e-commerce platforms in a broader study focused on digital platforms
while also focusing on how digital literacy relates to their awareness and practice of security
(e.g., password hygiene, phishing, safe checkout behaviors), because these behaviors impact
marketplace trust and individual safety.
Bibhushit Shrestha
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1.2 Statement of the Problem
In the presence of wide availability of access as previously stated (39.0 million mobile
connections; 72.94% smartphone penetration), young Nepalese, however, use mobile payment
channels with different levels of digital literacy.(DataReportal, 2025) (Nepal Rastra Bank, 2025).
Meanwhile, cybercrime and complaints have increased significantly (19,730 complaints; +119%
Year over Year), and this draws attention to a larger issue between connectivity and online safety
(Nepal Police, 2024). In Nepal, academic articles that connect digital literacy and security
awareness in e-commerce have not been moving as fast relative to the market adoption and there
is an opportunity to identify what young adults understand, how they behave, and where the
vulnerabilities lie. (Nepal Rastra Bank, 2025).
Thus, this research will: (a) examine the relationships between digital literacy and security
awareness; (b) assess whether a higher literacy correlates with safer e-commerce behaviour; and
(c) develop practical takeaways for platforms and policy-makers.
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1.3 Research Questions
RQ1: What is the relationship between digital literacy and security awareness in the
e-commerce context?
RQ2: What is the level of digital literacy among young adults using e-commerce platforms
in Nepal?
RQ3: How aware are these users of key online security risks (like fraud, phishing) and protective
practices?
1.4 Research Objectives
● To identify the level of digital literacy among young adult e-commerce users in Nepal.
● To examine the extent and nature of their security awareness and self-protective
behaviors.
● To analyze the association between digital literacy and security awareness in
e-commerce use.
● To evaluate how improvements in digital literacy could translate into safer purchasing
practices.
Bibhushit Shrestha
MN7983NI Management Learning and Research Proposal
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1.5 Significance of Study
This study presents a data-driven, Nepal-specific perspective on a pressing issue. Drawing on
current reality - widespread connectivity (132% mobile connections; 55.8% internet usage) and
accelerating digital payment adoption related to e-commerce activity - the report substantiates
their empirical claims related to literacy's role in safety for the approximately 30% of the
population, young adults, who are the largest proportion of Nepali consumers to have adopted
online retail (DataReportal, 2025) (Nepal Rastra Bank, 2025).
In practice, the findings can inform:
a. Government digital and cyber literacy programming;
b. Platform UX, prompts, and awareness initiatives; and,
c. Targeted interventions to the main vectors of cyber abuse identified by police research
(Nepal Police, 2024).
The pivotal contribution will be a more robust evidence base for improving consumer protection,
increasing trust, and sustaining the trajectory of e-commerce growth in Nepal.
2 Chapter 2: Literature Review
2.1 Industry Profile
Over the last decade, the expansion of e-commerce in Nepal has been fuelled by adoptions of
smartphones and digital payment systems. Smartphone market penetration is at 72.94%, 4G/LTE
coverage is in 741 municipalities out of a total of 753, and the average price of mobile data is
now at USD 0.27 per GB in 2024 (Nepal Rastra Bank, 2025).
According to estimates as of January 2025, there were estimated to be 16.5 million internet users
(55.8% of the total population) and 14.3 million social media identities (72.8% of the adult
population) (DataReportal, 2025). With almost one third of the population between the ages of
18-34 years, younger adults dominate the digital consumer and retail segments comprise the
largest containment of adults engaging in online shopping in Nepal.
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The market is also serviced by platforms like Daraz, SastoDeal, Foodmandu, as well as digital
wallets like eSewa, and Khalti. The government policy through the Digital Nepal Framework has
enabled an increased emphasis on ICT adoption and financial inclusion (Government of Nepal,
2019).
Despite the growth, consumers are still in a precarious position in regard to safety, as in the last
fiscal year (FY 2080/81 - July 2023 - July 2024), 19,730 cybercrime complaints were logged, up
119% from last fiscal year. 16,096 of these complaints were reported as Facebook and
Messenger frauds (Nepal Police, 2024). These numbers illustrate the need to better equip young
consumers with digital citizenship and online security skills.
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2.2 Theoretical Review
This research is based on theories of digital literacy, information security awareness, and
consumer trust in e-commerce.
Digital literacy is about being able to use technical, cognitive, and socio-emotional skills
effectively in an online world (Ng, 2012). In the Technology Acceptance Model (TAM), the
possibilities offered by one's digital literacy skills improve their perceived ease of use and
perceived usefulness leading to increased adoption of e-commerce (Gefen, 2003).
Information security awareness can be viewed through Protection Motivation Theory (PMT)
which explains individuals’ willingness to adopt protective behaviors to a perceived threat
(Rogers, 1983). In the online context, this means knowing what a phishing or fraud attempt looks
like, coupled with the knowledge that they have the means of countering those threats (that they
have secure payments and strong passwords).
Trust has been shown to be a key influence on online shopping intentions and the influence of
trust, in developing economies, where institutional protections are weak, is considerable. Trust is
strongly shaped by consumers’ own literacy and security awareness (Gefen, 2003).
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2.3 Empirical Review
a. Digital Literacy Levels Among Youth
In South Asia, over 70% of youth are digitally literate at a basic level but less than 40%
are digitally literate at an advanced level in areas such as recognizing secure websites,
and protecting financial information (UNESCO, 2023). While university students in
Nepal used various digital platforms strongly, they possess limited understanding of the
aspects of protecting information linked to online financial safety (Lamichanne, 2022).
b. Security Awareness and Cyber Risks
Cybercrime is growing at an alarming rate. Within the last year, complaints almost
doubled while it is likely that the vast majority of complaints stem from fraudulent
online selling or identity theft (Nepal Police, 2024). In a survey of 500 youth users of
e-wallets in Kathmandu, 62% of them reuse the same password across their
applications, while a mere, 28% use two-factor authentication (Bhandari, 2023). This
highlights the disparity between adopting technology and behavioral safeguards which
exposes young users who are digitally active as more vulnerable.
c. Relationship Between Digital Literacy and Security Practices
There has been a consistent association of users with high digital literacy practicing safer
behaviours in the online environment. High digital literacy also enables someone to better
identify phishing attacks (Arachchilage, 2014). Users that have strong digital literacy skills also
report significantly less fraud when transacting online (Alghamdi, 2022).
In Nepal, research conducted on 400 online shoppers indicated that digital literacy predicted
payment practices that decreased fraud, while low digital literacy was associated with increased
fraud victimization (Poudel, 2023). This is aligned with evidence from other countries while
illuminating a limited focus on young adults in Nepal.
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2.4 Conceptual Framework with Diagram
The framework shows that digital literacy (independent variable) influences security
awareness (dependent variable) among young adults in e-commerce. Stronger literacy
skills enable users to recognize threats and adopt safer practices. Socio-demographic
factors such as age, gender, and education act as moderators, shaping how strongly literacy
affects awareness.
Figure 1: Conceptual Framework Diagram
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2.5 Hypothesis
a. H1: Young adults in Nepal demonstrate varying levels of digital literacy that
significantly influence their awareness of e-commerce security risks.
b. H2: Higher digital literacy is positively associated with adoption of safe e-commerce
practices.
c. H3: Digital literacy has a significant positive relationship with overall security
awareness among young adult users of e-commerce platforms.
Bibhushit Shrestha
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3 Chapter 3: Research Methodology
3.1 Philosophical Foundation and Research Design
This research is based on a positivist research philosophy in the endeavor to measure the
relationship between digital literacy and awareness of security using structured data. Positivism
does not allow for casual claims, however it does permit the testing of hypotheses and yielding a
meaningful statistical base for objective, generalizable conclusions.
The research design involves descriptive and explanatory design. The descriptive portion
describes a snapshot of the current occurrence of digital literacy and awareness of security
practices for young adults, while the explanatory design tests the relationship between literacy
(independent variable) and awareness of security (dependent variable). A quantitative
cross-sectional survey is the most appropriate as it meets the aims, is able to cover large
amounts of data concurrently and provides statistics. The cross-sectional survey design is
optimal as it is the least resource intensive, can be replicable, and provides opportunities for
hypothesis testing.
Bibhushit Shrestha
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3.2 Population of Study
The study population consists of digitally active young adults (aged 18–34) in Nepal who
make e-commerce transactions that either consist of online purchases or digital payments.
The age cohort of 18–34 years represented a reasonable sample, as they are the most
digitally connected generation, comprising nearly one-third of Nepal’s population
(DataReportal, 2025), and dominated the e-commerce platforms, such as Daraz, eSewa,
and Khalti. In terms of gender, education level, and geography, the population is diverse.
3.3 Sampling Technique
The study will apply stratified random sampling. First the population will be stratified by
gender, education level, and locations to provide representation for all demographic
groups. Then from within each stratum, respondents will be randomly selected to minimize
selection bias. Random sampling in conjunction with stratified sampling reduces the
chance of response bias as the randomised process will ensure an equal representation of
sub-groups and will increase external validity regarding the generalisation of the findings
to the general young adult population. Stratified sampling or a combination of sampling
methods is also appropriate given the heterogeneous characteristics of Nepalese youth in
terms of access to e-commerce and all forms of commerce.
3.4 Sample Size
Sample size will be calculated using Cochran’s formula for sample estimates, to ensure
our findings are generalisable to the population at large, with a confidence level at 95%, a
margin of error of 5%. Since there is an estimated 9 million youth in Nepal aged between
18 and 34 (DataReportal, 2025), the minimum sample size will be around 385 respondents.
To account for not all responses being returned, the study will be seeking 400-420
respondents. This is an adequate sample size to carry out inferential statistical analysis and
to validate findings. This sample size is sufficient in a quantitative methodology to find
statistically significant relationships with regards to the identified relations or test
hypotheses.
3.5 Data Collection Technique
The study will rely on primary data, collected through a structured self-administered
questionnaire. The questionnaire is divided into three sections:
a. Demographics
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age, gender, education, occupation, frequency of e-commerce use
b. Digital Literacy
technical, cognitive, socio-emotional, fraud awareness, secure payments
c. Security Awareness
threat recognition, protective behaviors, safe payments, reporting
Questions will use a five-point Likert scale ranging from “Strongly Disagree” to
“Strongly Agree.” This scale is reliable for measuring perceptions and behaviors. The
questionnaire items will be adapted from validated instruments used in prior studies (Ng,
2012) (Poudel, 2023), ensuring construct validity and comparability.
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3.6 Questionnaire Administration
Data collection will be conducted through online surveys (using Google Forms) which will be
emailed, shared through university networks, and posted on social media (Facebook, Instagram).
This allows researchers to reach the target population of technology-savvy emerging adults and
represents a cost-effective method of data collection. Respondents will be contacted alongside a
consent form that will explain the study, its purpose, inform them about anonymity, and about
voluntary participation. The survey will remain open for approximately three weeks and two
reminders will be provided to encourage responses. For respondents with limited access to the
internet, offline printed copies will be distributed at universities in Kathmandu and Pokhara.
3.7 Data Analysis Techniques
Quantitative data will be analyzed using SPSS. The following methods will be applied:
a. Descriptive statistics (mean, frequency, standard deviation) to profile respondents and
summarize literacy and awareness levels
b. Reliability testing (Cronbach’s alpha) to assess the internal consistency of scales
c. Correlation analysis to examine the association between digital literacy and security
awareness.
d. Regression analysis to test the impact of literacy dimensions on awareness while
controlling for demographics.
In the literature, these types of statistical techniques are most commonly used for similar
studies. For example, (Alghamdi, 2022) used regression equations to examine the
relationships between literacy and fraud resilience and, (Poudel, 2023) used correlation
analysis to examine literacy and payment security in Nepal. As such, it is supported that
using these techniques is suitable for this study's data analysis.
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3.8 Validity, Reliability and Ethical Consideration
The questionnaire will establish face validity by piloting the items with 30 participants and
subsequently modifying any that were unclear; will confirm reliability through Cronbach's
alpha, with the acceptable threshold set at 0.70.
Ethical issues will be addressed by voluntary participation - respondents can decline to, or
withdraw from the study anytime they so choose; without sacrificing anonymity and
confidentiality; and, no personally identifiable information will be collected. Data will be
stored securely per the study's stated purpose, in the context of academic study and
research project solely. The project will adhere to baseline ethical principles from a
research ethics committee.
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3.9 Timeline
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4 References
DataReportal, 2025. Digital 2025: Nepal. [Online]
Available at: [Link]
[Accessed 31 08 2025].
Nepal Rastra Bank, 2025. Payment Systems Oversight Report FY 2023/24. [Online]
Available at:
[Link]
[Accessed 31 08 2025].
Nepal Police, 2024. Annual Factsheet on Suicide & Cyber Crime FY 2080/81. [Online]
Available at:
[Link]
d4/fy_2080-81_suicide__cyber_crime_-_en.pdf
[Accessed 31 08 2025].
Government of Nepal, M. o. C. a. I., 2019. Digital Nepal Framework 2019, Kathmandu:
Government of Nepal.
Ng, W., 2012. Can we teach digital natives digital literacy?. Computers & Education, 59(3), pp.
1065-1078.
Gefen, D. K. E. a. S. D., 2003. Trust and TAM in online shopping. MIS Quarterly, 27(1), pp.
51-90.
Rogers, R., 1983. Cognitive and physiological processes in fear appeals and attitude change: A
revised theory of protection motivation. In: Social Pshychophysiology: A sourcebook.
s.l.:Guilford Press, pp. 153-176.
UNESCO, 2023. Digital Skills Development in South Asia, s.l.: UNESCO.
Lamichanne, S., 2022. Digital literacy of university students in Nepal. Journal of Education and
Research, 12(2), pp. 45-60.
Bhandari, R. a. S. M., 2023. E-wallet security practices among youth in Kathmandu. Nepalese
Journal of Management, 9(1), pp. 33-48.
Poudel, K., 2023. Digital literacy and e-commerce security practices in Nepal. Soth Asian
Journal of Buseiness Studies, 12(14), pp. 110-125.
Arachchilage, N. a. L. S., 2014. A game design framework for avoiding phising attacks.
Computers in Human Behavior, 29(3), pp. 706-714.
Alghamdi, A. A. S. a. B. R., 2022. Digital literacy and e-commerce fraud resilience. Journal of
Information Security and Applications, Volume 69, pp. 103-117.
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5 Appendix
5.1 Literature Review
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5.2 Survey Questions
Google Forms Link
Survey Questionnaire: Digital Literacy and Security Awareness among Young Adults
in E-Commerce Platforms in Nepal.
Introduction
Dear Participant,
You are invited to participate in a research study titled “Digital Literacy and Security
Awareness among Young Adults in E-Commerce Platforms in Nepal.” The purpose of
this study is to understand how digital literacy influences security awareness and safe
practices in online shopping and digital transactions.
Your participation is voluntary, and your responses will remain strictly confidential. The
information will be used only for academic purposes.
Consent Statement
● I have read and understood the purpose of this study
● I voluntarily agree to participate
● I understand that my responses will remain anonymous and confidential
● I may withdraw at any time without any consequence
☐ Yes, I agree to participate
☐ No, I do not agree
Section A: Socio-Demographic Information
1. Age:
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● 18-21
● 22-25
● 26-30
● 31-34
2. Gender:
● Male
● Female
● Other/Prefer not to say
3. Educational Level:
● High school or below
● Bachelor’s degree
● Master’s degree or above
4. Occupation:
● Student
● Employed (private sector)
● Employed (government)
● Self-employed
● Other (please specify)
5. Location:
● Urban
● Semi-Urban
● Rural
6. Frequency of e-commerce use:
● Daily
● Weekly
● Monthly
● Rarely
Section B: Common Questions (For All Participants)
Digital Literacy (5-point Likert scale: 1 = Strongly Disagree, 5 = Strongly Agree)
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1. I can identify whether an e-commerce website is secure (e.g., HTTPS, padlock icon).
2. I know how to verify the authenticity of e-commerce sellers before purchase.
3. I am aware of phishing emails, fake links, or scam messages targeting online shoppers.
4. I understand how to use secure payment options (e.g., digital wallets, verified gateways).
5. I am confident in protecting my personal and financial information when shopping online.
6. I regularly update my passwords for e-commerce and payment apps.
7. I use two-factor authentication for online shopping/payment accounts.
8. I have received information/training about online security.
9. I trust e-commerce platforms in Nepal to keep my data safe.
10.I am aware of how to report fraud or suspicious activities to authorities or platforms.
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Section C: Group-Specific Questions
Section C1: Victims of Financial Scams
1. Have you ever been a victim of an online shopping scam or fraud? (Yes/No)
2. If yes, what type of scam did you experience? (Phishing, fake seller, unauthorized payment,
identity theft, etc.)
3. Did you report the incident to authorities or the platform? Why or why not?
4. What measures do you now take to avoid similar incidents?
Interview Questions:
● Can you describe your experience of the scam in detail?
● How did it affect your trust in e-commerce platforms?
● What could have prevented the incident, in your opinion?
Section C2: Cyber Bureau Representatives
1. How many e-commerce related fraud complaints do you typically receive per month?
2. What are the most common methods used by scammers?
3. How effective are awareness campaigns among young adults?
4. What challenges do you face in addressing e-commerce fraud?
Interview Questions:
● In your experience, how does low digital literacy contribute to cybercrime?
● What preventive measures are currently being implemented?
● What improvements would you suggest for enhancing security awareness in Nepal?
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Section C3: Lawyers (Cyber Law Specialists)
1. How adequate are current Nepalese laws in addressing e-commerce fraud?
2. Are young adults generally aware of their legal rights in cases of online fraud?
3. What legal reforms do you think are necessary to protect consumers in digital markets?
Interview Questions:
● Can you share case examples involving young victims of e-commerce scams?
● How does digital literacy affect legal proceedings or reporting of fraud?
● What role can legal professionals play in raising awareness?
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Section C4: Financial Institutions (IT/Security Officers, Analysts, General Public)
Financial Insitutions (IT/Security Officers, Analysts):
1. What measures do your organization take to ensure secure online transactions?
2. Do you provide digital literacy or security awareness training for customers?
3. What are the biggest challenges in protecting young online shoppers?
Interview Questions:
● How do you assess customers’ level of digital literacy?
● What technical solutions have been effective in reducing fraud?
● How can financial institutions and e-commerce platforms collaborate on awareness?
General Public (Heard/Witnessed Scams):
1. Have you ever heard of or witnessed online shopping scams among peers?
2. How do you usually identify suspicious online deals or sellers?
3. Would you know how to help a friend who became a scam victim?
Interview Prompts:
● Share examples of scams you’ve heard about in your community.
● Do you think young adults take enough precautions when shopping online?
● What type of awareness campaigns would be most effective for youth?
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Section D: Closing
Thank you for your valuable time and participation. Your insights will help in understanding how
digital literacy influences security awareness in Nepal’s e-commerce environment.
Bibhushit Shrestha
