Running head: CUSTOMER DISSATISFACTION

Factors affecting consumer dissatisfaction of Daraz Bangladesh

SL Name Students ID
01 Md. Morad Mahabub 15202079
02 Nahidul Islam 17102050
03 Mania Akhter Mila 16202049
04 Rakib Hasan 18102024
05 Arafat Sarker 13102581

IUBAT-International University of Business Agriculture and

Technology
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Abstract

Online shopping platforms are now creating a vast opportunity for both buyer and seller. People

are getting modernized by using those online shopping places. Basically, it helps to save time

and energy. A large number of people are using these online shopping places for various

purpose. This study aims at analyzing the factors which affect the consumers buying behavior

and also their dissatisfaction level.

Key words: consumer satisfaction, customer preference, buying behavior, dissatisfaction level.

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Factors affecting consumer dissatisfaction of Daraz Bangladesh

Online marketing is the easiest solution to the busiest life in today’s world. In the past

decade, there have been a incredible change in the way of people’s shopping. In spite of buying

from a physical store, customers are more flexible to buy from the online store. Life is getting

much easier nowadays. More importantly online shopping platform saves precious time of

consumers who are not likely to spend much time in shopping. (Zita,2019).

Daraz.com.bd is one of the leading and most popular marketplace platforms of

Bangladesh. Daraz mainly a combined form of inventory managed and seller managed platform.

A replica of Amazon model where a seller can do both inventory and drop-ship. This platform

has introduced both B2B and B2C types of selling all over Bangladesh. Daraz is giving local

brand to work on online platform.

Background of the Problems:

Online shopping platforms are now creating a vast opportunity for both buyer and seller. People

are getting updated by using those online shopping places. Basically, it helps to save time and

energy. A large number of people are using these online shopping places for various purpose.

Since Daraz is the online shopping platform in Bangladesh. But Daraz can’t catch the whole

online market with other competitors.

Research Question:

1. Why dose Daraz is unable to capture that much online market in Bangladesh?

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Research Objective:

The broad objective of the study is to analysis the factors affecting consumer’s dissatisfaction.

Though Daraz is one of the largest and famous online platforms of Bangladesh. The specific

objectives are:

1. To understand the current situation of online shopping in Bangladesh.

2. To find out the main purpose of consumers dissatisfaction.

3. To identify the important issues of consumer satisfaction regarding online shopping.

Literature Review: Gradually taste, preference and choices are varying regarding different

factors such as the Internet emergence. However, this development needs some more

understanding related to the consumer’s behavior. Consumer behavior research indicates a

general model of buying behavior that depicts the processes used by consumers in making a

purchase decision. Two factors that determine consumer attitude toward online shopping; one is

trust, and another is perceived benefits (Vrender, 2016)

Methodology:

The research is mainly an exploratory research based on information received from in-dept

interview on focus group. We are taking face to face interview. This research is basically

following the convenience sampling. It is a non-probability sampling technique where subjects

are selected because of their convenient accessibility and proximity to the researcher.

The research has been conducted with qualitative research.

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Qualitative Type:

This research is basically following the qualitative research type based on questions, it means

asking questions.  Based on the questionnaires we follow focus group, in-depth interview. we

conducted among some customers to get the customer's point of view, interviews of few

customers which we have taken and data collecting from internal and external sources.

Sampling: We use convenience sampling. Because some specific characteristics and normal

people who are use Online shopping platforms. We use convenience sampling in situation where

additional inputs are not necessary.

Data Collection:

In this research, both primary and secondary sources are used to collect information. Factor

affecting customer experience of Daraz Bangladesh Ltd. primary and secondary source

observation and interaction with the customers through the use of questionnaires played a big

role. So basically, this research has been conducted through open-ended questions, expert

interviews, primary and secondary data.

Primary source: we are conducted Primary data mainly on customer base questionnaire.

Secondary source: Secondary data has been collected through different websites, articles, and

through discussing with other customers those who are related to Daraz.

Interview Format: We are following semi structure interview, where some questions are pre-

prepared, and some question are based on situation. we are also be following the open-ended

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question. Because hear no boundary for the participates that they can easily answer all the

questions.

Interview Model:

For our research question individual interview is perfect. we have received two or three

participant’s individual interview. If participate are agree, then we are record the whole interview

also we make the field note. So, we take 10-15 mint’s face to face interview. That’s why we will

take individual interview.

Data Analysis: Data analysis are done at the same time with data collection. we have collected

data from the Daraz’s customers who purchase their product through online. We made some

interview questions to know the Daraz dissatisfaction factors. At the end of the interview, digital

recording was transcribed to create exactly research paper. Transcribed were converted to four

parts such as mini unit, code, category, theme. Thematic analysis was conducted to identify

theme with category. Our data analysis process is as follows.

 We collect the data though interview of the participants of the users of Daraz.

 After collect the data we read through the data again and again.

 We made a transcribed of the recorded clip to a written copy to clearly understand.

 After analysis the transcribed we find out some code, category and make a theme of the

conducted research.

 Finally take the findings of the research.

Result: This qualitative study indicates some customer’s dissatisfaction of Daraz. This result is

generated from the primary source that is interview taken of the participants. After analysis the

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whole interview and process the data following result have been found. It described in a broad

way to better understand of the general audience.

Many customers have complained that they are unsatisfied with customer service. That means

they are not available, follow-ups are not done properly, replies are not as prompt as expected

and they do not have enough information about products or the process to reply promptly

about them. As one customer said that enough information about the products are not provided.

And product status is often not provided promptly from the outbound team of Daraz supply

chain. So, the service is delayed. So, in this case, the number of agents should be increased to

ensure effective and prompt service from the department.

Some point of customer’s dissatisfactions is mentioned below:

 Operational performance needs to be increased.

 Need to improve their call services

 Cancelation policy of product should be changed

 Create and less duration for delivering the product

 Essential review needs to be more suitable for the customer’s

 Product return policy should be revised.

 Fraudulent with the ordered products must be eliminated.

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Conclusion:

Finally, we can come to this conclusion that Daraz has a huge market at this moment as there is

no better alternatives. But when there will be a better alternative there is a high chance that

customers will move to the new alternatives and their sales will decrease. The reason behind the

scenario is most of their customers are dissatisfied with Daraz’s overall performance. Many do

not find it reliable or trust worthy. There reason to shop back from Daraz are insignificant. So, it

is high time for Daraz to improve their services offerings and create a loyal customer base. So

that if a big company decides to start their operation in Bangladesh, such as Amazon Daraz will

have its loyal customer base. This market is fast growing and unpredictable is always wiser to

prepare for the long run and build a reliable, strong brand image in customers mind.

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Reference

1. Vrender. (2016). Importance online shopping. Retrieved from

https://www.sooperarticles.com/shopping-articles/clothing-articles/importance-online

shopping-1495828.html

2. Zita, R. F. (2019). Customer Preference and Response toward Online shopping–a study

on young generation of Bangladesh.

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Appendix A

Consent Form

We are the students of IUBAT (International University of Business Agriculture and

Technology). We are doing a business research course (Bus-301). we are doing a research on

Customer dissatisfaction of Dazar Bangladesh Ltd. The aim of this research is to know the

resources of customer dissatisfaction of Daraz Bangladesh Ltd. You have been asked for

information regarding our research topic in this interview. The interview has taken

approximately 10 minutes. We anticipate that there is no risk associated with your participation.

But if you want, you had the right stop the interview from the research at any time. If you have

any concerns about our action as a research participants in this study please contact to the

supervisor of this research project Mr Tushar, IUBAT at Uttara, by following email address: E-

mail : tushar@iubat.edu

If you have any questions about this research project, or would like more information, please feel

free to contact us at the email address below.

Sincerely yours

A group of students from

IUBAT- International University of Business Agriculture & Technology

Uttara-Dhaka

Email: mdhimel0077@gmail.com

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Appendix:

1. Are you using online shopping apps?

Yes No

2. Are you familiar with Daraz?

Yes No

we are making a recording of your interview, which are used in the research. If you don’t allow

us to the recording, we are not do it than. We are also keep your name and information secret if

you want.

Participate consent to use their real information in this research paper. Please fill up the

following information:

Sl no Name Age Gender Designation

01 Shanzida jahan suchi 25 Female Job Holder

02 Nusrat Jahan 22 Female Student

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Recording:

Signature.……….

Date……….

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Appendix B

Interview Question:

Interview question format are semi structured which means there are some written form

questions and also asked some situational based question to the participant while taking

interview. Related questions are asked to each participant about the objective of the research to

explain the customer dissatisfaction of Daraz Bangladesh Ltd. & to analyze the reason behind the

customer dissatisfaction of Daraz.

 How does daraz services meet your need?

 What are the factors that attract you most about Daraz?

 what are the obstacles did you face during the order confirmation?

 What are the factors satisfy you or beneficial to you?

 What are the factors dissatisfy you about Daraz service?

 How can Daraz service be more acceptable to you?

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Appendix C

 দারাজের পরিষেবাগুলি কীভাবে আপনার প্রয়োজনীয়তা পূরণ করে?

 দারাজের কোন কোন কারণগুলি আপনাকে সবচেয়ে বেশিআকৃ ষ্ট করে?

 অর্ডার কনফার্মেশনের সময় আপনি কী কী বাধা পেয়েছেন?

 কোন কোন কারণগুলি আপনাকে সন্তুষ্ট করে বা আপনার পক্ষে উপকারী?

 দারাজ পরিষেবা সম্পর্কে আপনাকে অসন্তুষ্ট করার কারণগুলি কী কী?

 কীভাবে দারাজ পরিষেবা আপনার কাছে আরও গ্রহণযোগ্য হতে পারে?

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Appendix D

Transcription of interview -1
Dialogue between a researcher and a participant about the topic- Factors affecting

consumer dissatisfaction of Daraz Bangladesh

R: How dose Daraz meet your need?

P: As I am a job holder, it’s difficult for me to purchase from outside such as showroom,

super shop because its time consuming. So, it’s better to use online service as the platform

like Daraz because Daraz provide home delivery service so I can order from home which

save my time.

R: What are the factors that attract you most about Daraz?

P: There are few factors that I want to mention such as the delivery cost is less than others,

easy to access the app of Daraz, they also provide the details information about Daraz’s

products which help me to find out my required product according to my need.

R: What are the obstacles did you face during the order confirmation?

P: Actually, its average because I face both, the difficulties and the benefits both.

R: What are the factors satisfy you or beneficial to you?

P: As I already mention that the delivery cost is less, there is an option of confirming my

order even there is also a option of canceling my order for which its seem to me very easy to

use.

R: What are the factors dissatisfy you about Daraz service?

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P: I already mention there is an option of canceling the order but there is a problem which I

face that is if you frequently cancel your order, they remove the option of canceling the

order. Sometime I face I don’t have the time to collect the order or sometime I face financial

difficulties for these purposes I want to cancel my order but initially they provide the service

to cancel the order but when its cross more than 3 times they remove the option.

And another problem is when I call for inquiry or for any kind of information to know, their

phone call service is always seemed busy. They also have another option to contract if I text

them, they hardly response and sometimes the delay to response. All of these seems

difficulties for me which I actually face.

I also face the difficulties related product ordering such as if I order inside Bangladesh, they

delivery within 2/3 days but if the product belong from outside the country, they take too

much time, actually they say 10/12 days but its take more than that. I also face the difficulties

about product review because they don’t provide review about their product but few of them

the shows, depending on the product review most of the customers get to know about the

product, the quality and so on that’s why product review is important to me but they don’t

provide the review for all product. So, I face the dilemma of purchasing product or not.

R: How can Daraz service be more acceptable to you?

P: There are few factors that I want to tell that are-

If they improve their call services so I get to know the required information and if they

provide canceling option for all the time. If they minimize the duration of delivery period so

that I get the product within short period of time. If they provide enough review of their

product which is more important to me before ordering.

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Coding, Categories and Theme Process of Interview 01

Mini unit Code Category Theme

‘Dialogue’
Daraz provides details Positive attitude Acceptance Satisfaction
information, easy to access the
app, less delivery cost which
helps the customers need
Customer facing difficulties and Easy access
the benefits both. as less cost of
delivery, order confirmation also
cancellation order options.
difficult to purchase from outside Purchase Unavailable Organizational
such as showroom difficulty effect

Cancel options are not available Customer Consumer

when canceling the product more dissatisfaction turnover
than two times
Reviewing the order is more Review problem
important before placing the order

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Transcription of interview -2
Dialogue between a researcher and a participant about the topic- Factors affecting

consumer dissatisfaction of Daraz Bangladesh

R: How dose Daraz meet your need?

P: Daraz is such a platform where approximately all products are available, as I am a student

and don’t stay with my family because of my study purpose that why I have to purchase

grocery for daily purpose that why I use Daraz platform. Thus, Daraz meet my regular needs.

R: What are the factors that attract you most about Daraz?

P: The fact attracts me is the availability of all products. Online platforms are distinguished

according to required products but Daraz is the platform where I can get all of my required

product which attract me to Daraz services.

R: What are the obstacles did you face during the order confirmation?

P: The obstacles can be ordering because I have to pay before getting the product on hand

sometimes depending on the product but not for all products.

R: What are the factors satisfy you or beneficial to you?

P: As I told their service of order confirmation, they provide a confirmation code to email

and even on messenger and their discount fact, they provide discount on products.

R: What are the factors dissatisfy you about Daraz service?

P: The dissatisfactory factors can be the delivery charge, most recently they rise inside

Dhaka, the delivery charge has been increased which is a dissatisfactory fact to me and

another can be the product quality of Daraz because as I purchase electronic product, the

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quality was not good. I think for electronic product Daraz platform is not good. And I also

purchase t shirt from Daraz which quality was not good even but according to me for

groceries Daraz can be a good choice to customers.

R: How can Daraz service be more acceptable to you?

P: There are few factors that I want to tell that are-

If Daraz improved the quality of their electronic products, it will be more acceptable to me.

And if Daraz minimize the delivery cost inside Dhaka that will be good for me, sometime

few of the products price is not reasonable to me that why I think if the prices of the product

could be less that will be more affordable to me.

Sometime the expiry date of the product is not mention or they provide the products which

expiry date has been crossed.

If they improve all of these than it will be more beneficial to me.

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Coding, Categories and Theme Process of Interview 02

Mini unit Code Category Theme

‘Dialogue’
The availability of all required More Admissible Satisfaction
products convenient
service of order confirmation code Positive fact
sent to email and messenger

Payment system before getting the Purchase Organizational

products difficulty Consumer effect
turnover
delivery charge arises, product Customer
quality is not good dissatisfaction
fact
the expiry date of product is not Displeasure to
mention on product customer

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