University of Dhaka

Department of Marketing

Services Marketing (MKT 528)

Term paper

on

“Customer expectation and perception analysis of Daraz Bangladesh ltd: An e-commerce

service company of Bangladesh”

Submitted To

Prof. Dr. Razia Begum

Department of Marketing

University of Dhaka

Submitted By

Tansushila

Id No. 41942024

Section : A

Date of Submission: 23/11/2021

Table of Contents
Abstract .......................................................................................................................................... 3
Introduction ................................................................................................................................... 4
Overview of e-Commerce in Bangladesh .................................................................................... 4
Overview of Daraz.com.bd ........................................................................................................... 5
Literature review and conceptual framework ........................................................................... 5
Objective ........................................................................................................................................ 6
METHODOLOGY ....................................................................................................................... 6
SAMPLING PLAN ................................................................................................................... 6
QUESTIONNAIRE DESIGN .................................................................................................. 6
Customer expectation and perception analysis of Daraz Bangladesh ltd ................................ 7
Gap 1: The Listening Gap ........................................................................................................ 8
Gap 2: Service design and the standard gap .......................................................................... 9
Gap 3: The Service Performance Gap................................................................................... 10
Gap 4: The Communication Gap........................................................................................... 10
Findings and conclusions ........................................................................................................... 11
Implications of the findings ........................................................................................................ 11
Conclusion ................................................................................................................................... 11
References .................................................................................................................................... 12
“Customer expectation and perception analysis of Daraz Bangladesh ltd: An e-commerce
service company of Bangladesh”

Abstract:

E-commerce as we know it today has increased dramatically with the advent of the World Wide Web
and its subsequent adoption and massive use. The enormous potential of the breast for commercial
and transactional purposes has yet to be fully explored. One of the new areas of application of
marketing theory in the context of the Internet, more precisely e-commerce, is the marketing service.
In this article we examine the Customer expectation and perception and possibility of evaluating the
supply chain of testing tools to evaluate the pure quality of service in the context of purely virtual
companies as in daraz.com.bd. My goal is to see if there are differences in the quality of service of
odaraz.com.bd that are dying from client companies; and identify the attribute of the characteristic
differences that are; and areas where customers do not distinguish between providers. Confirmation
and refutation of a set of sample is used to determine customer expectation and perception. My
findings show that today's customers differentiate pure Internet service companies based on customer
gap and the tangibility, reliability, and responsiveness of the companies rather than the perceived
credibility and security of the services they offer. This indicates that the boundaries between
companies offering online and offline services are blurring in the customer's mind. We interpret the
cancellation of this department to mean that e-commerce and online transactions are mature and
customers no longer fear the often touted credibility and security concerns unique to online
businesses. Instead, they now care more about who can serve them better when it comes to their
concerns about more traditional products. My recommendation for marketers would be that they no
longer consider themselves an online or offline service provider, but rather a simple provider of
"services" and ensure their quality. The customer no longer has to worry about whether the service is
provided online or offline; for them, the novelty of the online service has run out, leading to the
expectation that the quality in the more traditional aspects of service provision will be at least
equivalent to that received offline. It's time for marketers to stop worrying about where to go on the
click-and-mortar spectrum and follow the customer's lead.
Introduction:

The aim of this study is to understand the impact of different dimensions of e-commerce services on
the customer satisfaction of online buyers and sellers in Bangladesh. The study also shows the
relationship between customer satisfaction and loyalty of different types of e-commerce users. The
conclusion of the study showed that the reliability, responsiveness and efficiency dimensions of the
online business have a significant influence on customer satisfaction.

The Internet emerged in the early 1970s, but by the early 1990s it was virtually inaccessible to most
of the population. Electronic commerce, or electronic commerce as we know it today, has been made
possible by the World Wide Web and browsers. Electronic commerce is the term used to describe
"commercial activities carried out through the electronic transmission of data via the Internet and the
WWW". (Schneider and Perry, 2000). E-commerce has proven to be beneficial for both sellers and
buyers. Through the use of e-commerce, sellers can now access narrow market segments that can be
widely distributed geographically, thus expanding accessibility around the world. Buyers benefit
from access to global markets and access to a much broader catalog of products from a wider and
more diverse range of sellers. As a result, product quality improvements have also been made and
new and more creative ways to sell existing products have been developed.

The transformation of the Internet into a shopping destination has been very rapid. The dot-com
dominance has grown from just 16% of all TLDs in 1995 to nearly 84% in 1997, a relative novelty of
the concept for the layman and security concerns for laymen and discerning buyers alike. As initial
bookings declined, the way corporate clients and customers interact changed dramatically. As online
shoppers interact with a digital system rather than employees, businesses that don't understand the
needs of their "virtual" customers and tailor their services accordingly will stop. Therefore, for
companies, listening to the voices of customers is the first step in planning efforts to improve service
quality. Identifying the dimensions of perceived quality of customer service and their role in
customer satisfaction and dissatisfaction in turn provides a framework for online service providers to
evaluate service performance.

Overview of e-Commerce in Bangladesh:

Bangladesh is a growing country in the world. It brings achievement in the diverse sectors like RMG,
Education, and Medicine etc. But the biggest success has been come from the ICT sector. E-
commerce refers to the buying and selling of products or services over electronic network combining
a range of process such as Electronic Data Interchange, Electronic mail, World Wide Web, Internet
Applications and Network Applications. Everyday e-commerce is improving the efficiency and
effectiveness of business, government and nonprofit organizations. Some years back in our country
we never thought to buy anything without physically touching or watching. We couldn’t even imagine
that we are ordering something just based on some photo and information, that thing is brought by
someone else to our home and then we are receiving that product. But at recent time the surroundings
have been changed extremely. This happened because of the progress of technology along with the
new idea, e-Commerce. E-commerce refers to the buying and selling of products or services over
electronic network merging a series of process like Electronic Data Exchange, Electronic mail, World
Wide Web, Internet Applications and Network Applications. E-commerce was presented 50 years
ago and keeps on developing with new technologies, innovations, and a great many administrations
entering the online market every year Everyday e-commerce is improving the efficiency and
effectiveness of business, government and nonprofit organizations. At today’s date, people lack time.
They try to save it as much as possible and that’s where e-commerce shows its charisma by saving
both the most significant things which is time and money. From an online marketplace people can buy
and sell their products rather than visiting physical market.

Overview of Daraz.com.bd:

Daraz is the largest e-commerce company in Bangladesh. Daraz comes from an Urdu word meaning
"drawer", denoting the entire online retail market. Daraz started its operations in Bangladesh under
the name daraz.com.bd. The fourth online commercial website was launched in mid-2013. However,
besides Daraz, there are other companies operating like OLX, clickbd, ekhanei.com, etc. In addition to
Daraz, more than 20 e-commerce companies now operate. Daraz has a verified FB page with 4 million
followers. It is e-commerce that drives you to seek customers online. Daraz is always on the lookout
for SEO and is recognized as one of all Internet marketplaces. So when a customer searches for
Google's largest online site, Daraz appears to be first on the search engine. Daraz is the largest online
marketplace in the South Asia region. In 2012, German Venture Capital founded Daraz and emerged
as the founder of this online business. Daraz operates in 5 South Asian countries, including Pakistan,
Nepal, Srilanka, Bangladesh and Myanmar. In 2018, the Chinese company Alibaba acquired Daraz
and bought 100% of its shares. In Bangladesh, Daraz runs its business as a market leader and is one of
the few companies that market all kinds of products.

Literature review and conceptual framework:

Services have traditionally been classified as consumer services or professional services (Fitzsimmons
and Sullivan, 1982; Sasser, Olsen, and Wyckoff, 1978). In a product-service continuum, professional
services (eg, health care, legal services) are almost pure services (Woodside, Frey, & Daly, 1989). The
characteristics of these services are often that tangible goods are not traded, that the service is produced
and consumed relatively simultaneously for each consumer, and that the consumer represents a significant
part of what is actually provided (Woodside, Frey and Daly, 1989). a different set of variables in the
evaluation of products versus services (John Groth, Richard Dye, 1999). The following table shows some
of the main differences between the types of goods and services:

Source: Constructed on John Groth, Richard Dye, 1999

Nature of difference Product Services

Tangibility Yes X
Definable/Observable
Perception dependent X yes
Time dependent Maybe Maybe
Returnability Yes X
Definable match with needs Yes X
Centrality of core product Yes X
Centrality of human interaction X Yes
Impersonal Yes X
Psychic factor X Yes
Utilitarian factor Yes X
However, we must bear in mind that there are often no clear yes or no answers to the answers generated
by the previous variables. There may be some ambiguity, as well as some overlap.

As Parasuraman et al. (1985) confirm that when consumers buy goods, there are many tangible clues to
judge quality: style, hardness, color, label, feel, packaging, fit, etc. However, when buying services, there
are less tangible clues; with tangible evidence limited to the physical facilities, equipment and personnel
of the service provider. Providing a superior quality service is the strategy that is increasingly being
proposed as a key in the efforts of service providers to better position themselves in the market. However,
the inherent problem in the implementation of this strategy has been eloquently identified by several
researchers: service quality is an elusive and abstract construct, difficult to define and measure. Zeithaml,
Parasuraman and Berry (1985) strongly suggest that the quality of service perceived by customers is the
result of a comparison of what they believe that service companies should provide with their perception of
the performance of the companies that provide the service. Therefore, perceived service quality is viewed
as the degree and direction of the gap between consumer perceptions and expectations; where
expectations are seen as what consumers want or want, or what they believe a service provider should
offer rather than offer. Perceived quality is the consumer's judgment of the overall excellence or
superiority of a company (Zeithaml, 1987). It differs from objective quality (as indicated above) in that it
is a form of attitude associated with satisfaction, but not equivalent, and results from the comparison of
expectations with perceptions of performance.

Objective:

During the research, which is based on the size of the customer gap and the quality of service, we would
like to continue to identify gaps in the achievement of service quality and customer satisfaction and make
suggestions on how the service provider can improve the quality of service.

METHODOLOGY:

SAMPLING PLAN
A random sample was chosen as the sampling method for this study. In the case of this study, residents
from different parts of the city were contacted via the Internet. The survey was conducted entirely online
using Google Forms. The sample size was 30. Primary data were collected through interviews and
questionnaires. Secondary data were collected through a literature search.

QUESTIONNAIRE DESIGN
The questionnaire has been designed in such a way that it is easy for respondents to understand. Each
respondent was asked 10 questions on the Likert scale, along with background information on how to
generate questions. Respondents were asked to rate the extent to which they agreed or disagreed with a
certain statement on a scale of 1 to 6, with 1 strongly disagreeing with the statement and 6 strongly
agreeing with the statement. There was also a certain semantic scale. Customers are also asked for their
opinion and can define their comments or their perception of the company's service.
Customer expectation and perception analysis of Daraz Bangladesh ltd:
As we know, the customer gap is the difference between customer expectations and perceived
service. Therefore, it focuses on what customers expect from darazcom.bd and the service they
receive from here. When placing an order on Daraz.com.bd, customers generally expected their
product to be of high quality and to have the correct authenticity and on-time delivery that they
usually promise, but in reality, in most cases, they have not been able to deliver on time and even
most customers say they received a poor product that did not have proper authentication. This
created a gap between customers.

Here we can see that 9.1% customers mention their dislike about daraz.com.bd which is low
product quality and on time delivery which creates customers gap.
 Also, in this picture we can see that most of the people do not trust their product quality and this is
42.1% of 19 people which is also the reason of customer gap.

Gap 1: The Listening Gap:

Insufficient market research: Daraz is a well-known e-commerce site famous for its variety of
products. There is a section on this platform called Daraz Mall where licensed vendors usually sell their
products. Most of the products come with a guarantee and the consumer receives quality products.
Instead, they have other sellers with a Chinese seller. The product they sell is not supervised by the
Daraz Authority, which sometimes provides a cheap and faulty product. Also, their very cheap Chinese
items have not attracted their target customers very well, as well as receiving negative reviews for these
products. So these Daraz issues create a void for the customer.
Inadequate Service Recovery: Inadequate return of service is the second reason for the gap between the
expectations of daraz.com.bd customers and the company's perception of customer expectations. It is the
process of making customers happy by compensating for bad customer experiences with service. Despite
complaints about poor product quality and delivery delays, daraz.com.bd continues to sell poor quality
Chinese products.
Although they have promised to follow a simple 7-day return policy, most customers are dissatisfied
with their return policy and are not encouraged to listen to customer complaints.

Here, we can see that most of the customers give bad review of their service but Daraz still not keep focus
on their product quality and services.
Gap 2: Service design and the standard gap:

This gap mentioned the difference between the company’s understanding on the customer’s expectation
and development of the customer driven service standard.

Service Blueprint: It is basically used for the better management of service encounter and give a clear
visualization of the service process. The service blueprinting of Daraz.com.bd is given below:

1. Physical Evidence: Daraz Bangladesh warehouse located in Begunbari, Tejgaon Industrial area,
Dhaka-1207.

2. Customer Action: Their hotline service number is 16492 which is available in Sunday to Thursday
from 9:00 AM – 6:00 PM (Closed on weekends and government holidays). Their email address is
customer.bd@care.daraz.com. Also, they have an automated live chat assistant named DAZ available in
24x7 from Sunday to Saturday from 9:00 AM to 9:30 PM.

3. Onstage employee action: The delivery man who use to deliver orders of Daraz.com.bd are the
onstage employee.

4. Backstage employee action: The employees who works in Daraz specially who use to take orders and
process the orders are the backstage employee.

5. Support System: The employees who are used to work in Daraz’s warehouse to make the packaging
and ready the product for delivery are the support system of daraz.com.bd.

6. Fail point: The main fail point of the Daraz service system is order processing and packaging system.
These fail point mainly occur in support system department.

So, here we can see 45.8% of the customer are dissatisfied of their quality of product and they mention
that most of the cases they are delivered wrong product to the wrong customer.

Servicescape: Servicescape is the place or the environment where the services are being processed. Here
are 2 types of services cape of Daraz.com.bd. One is the communication between customer and delivery
man and the focusing point is behavior of the delivery man. That behavior is always affected to the next
purchase of the customer. Another one is right product packaging for right customer. So, there are the
servicescape of Daraz.com.bd.

Gap 3: The Service Performance Gap:

The service performance gap is basically working for discrepancy between customers driven service
standards and the actual service performance by the company’s employee.

Role of the Employee: In this stage the main role of employee of Daraz.com.bd orders processing. In
this processing of order there are many sub sectors. They have their own order processing system where a
trainer focuses on how and when the process of set ready to ship (RTS) will take place. Then the
employee checks the positions of orders and details of the order- whether the order is fake or not. This is
the main key role of the employee to serve their customers. Besides that, in departments they regularly
used to check stoke updates, provide training for vendors, making sales report, handle party’s issue,
conducting RTS process, collecting feedback from the seller on weekly basis etc.

According to the survey, most of the people says that still now daraz.com.bd is one of the best preferable
online business services in Bangladesh as their employees maybe can fulfilling their role within time and
their services are quite better than the other online businesses.

Gap 4: The Communication Gap:

Inappropriate Pricing: In Daraz.com.bd the pricing of the brands products is same as the physical retail
store but the pricing of the non-brand items is inappropriate. They are advertising for the import products
and they also promised for the good quality but most of the cases, the picture of the product and the
delivered item are not same. Also, the high price of that products rises the customers expectation. Most of
the unofficial products in daraz.com.bd are set in very high price and they are showing in 20-30%
discount label. Also, in Dhaka their product delivery charge is 60-80 taka and in other cities the charge is
100-200 Taka which is totally irrelevant.
 My findings and conclusions drawn thereof are presented below:

➢ My analysis shows that customers perceive a difference in service quality for some attributes but
not for others. We found a significant deviation of the sample populations of daraz.com.bd in the
attributes Tangibility, Reliability and Reactivity. In terms of tangibility, our questions focused on
the visual appeal and usability of the websites.
➢ Customer reaction to perceived reliability was more different than Tangibility. This result is
consistent with the idea that a massive brand would find more support in the perception of
reliability.
➢ In the Responsiveness category, daraz offers more options than other e-commerce companies in
Bangladesh. This result would suggest that customers believe that daraz has many more product
options than other e-commerce sites in Bangladesh.
➢ In terms of credibility and security, daraz indicates a high degree of customer credibility. The
perceived security is even greater than the perceived credibility because Daraz has advanced
technology.
➢ The percentage of products delivered is still a bit low at Daraz due to the quality of the products.

Implications of the findings:

➢ I have conducted my analysis on daraz.com.bd, which are not only representative but also
trendsetters on internet marketplace sites that are now a massive and important segment in e-
commerce. Therefore, opinions and trends in user behavior on retailer sites are a good indicator
of the psyche of consumers who transact online today.
➢ Through my study, however limited, I was able to draw conclusions. When asked if customers
perceive a difference in the quality of service from daraz.com.bd websites, the answer is yes. We
have also identified the various types of gaps between daraz's services and the perception and
satisfaction of its clients.

Conclusion:

At the end we can conclude that e-commerce has reached its maturity at last. Consumers are familiar
enough with internet based services to a degree today that they do not see purchasing or auctioning on the
internet as a novelty transaction, but rather just another chore. The customers today assume there would
be a standard followed by whoever does business on the internet, and the practices would be ethical by
default than otherwise. Customer perception about daraz.com.bd is now a relatively familiar area of
knowledge. In this paper, I have tried to embark upon a journey to see how well the traditional service
marketing concepts can be applied to marketing over the internet. In doing so, we have tried to adapt
traditional measurement tools in marketing and statistics to explain customer’s perceptional behavior over
the ecommerce. Undoubtedly, Mine has been a limited effort constrained by a small sample size; the
possibility of bias in the responses, and even the validity of some of my assumptions.
References:

Bitner, M.J., (1990), Evaluating Service Encounters: The Effects of Physical Surroundings and
Employee Responses, Journal of Marketing, Vol. 54 (April), pp. 69-82.
Bitner, M.J., Booms, B.H., and Tetreault, M.S., (1990), The Service Encounter: diagnosing
favorable and unfavorable, Journal of Marketing, Vol. 54, January, pp. 71-84.
Bolton, R.N., and Drew, J., (1991), A Longitudinal Analysis of the Impact of Service Changes on
Customer Attitudes, Journal of Marketing, Vol. 55 (January), pp. 1-9.
Brown, S.W., and Swartz, TA; (1989), A gap analysis of professional service quality, Journal of
Marketing, 1989
Cohen, J., Fishbein, M., and Ahtola, O., (1972), The Nature and Uses of Expectancy Value
Models in Consumer Attitude Research, Journal of Marketing Research, Vol. 9 (November), pp.
456-460.
Davis, F.D., (1989), Perceived usefulness, perceived ease of use, and user acceptance of
information technology, MIS Quarterly, Vol. 13, No. 3, pp. 319-40.
Eggert, A. & Ulaga, W., (2002), Customer Perceived Value: A Substitute For Satisfaction In
Business Markets?, Journal Of Business & Industrial Marketing, Vol. 17 No. 2/3, Pp. 107-118.
Fitzsimmons, JA, and RS Sullivan; (1982), Service Operations Management, McGraw- Hill, Inc.,
New York, NY.
Gordon H.G., Terrence L.(2000) Customer Satisfaction With Services: Putting Perceived Value
Into The Equation, Journal Of Service Marketing, Vol. 14 No. 5
Daraz.com.bd
 Survey Questionnaire on Daraz.com.bd

Background Information:

• In which of the sex group do you belong?

Male Female

• In which of the following age group do you belong?

18-26 years, 27-35 years

36-44 years 44 years & above

• You belong to which of the following income (monthly) group?

Tk 15000-30000 Tk 30000-45000 Tk 45000 & above

• You fall in which of the following occupational group?

Student Job holder

Businessman Other

1. Does Daraz uses the latest available technology on their site and is it user friendly?
o Yes
o No

2. The layout of the daraz site is clutter free and professionally

designed.
o Yes
o No

3. Do you prefer daraz.com.bd to other online businesses in BD?

o Yes
o No
o Maybe
4. If you have no purchased any product from online then why?
o You cannot touch and see the actual product
o You do not trust the online businesses to give your information
 o You cannot find what you look for
o You don’t trust their product quality

5. The categories of daraz products are easily understood and clear.

o Strongly Agree
o Agree
o Moderately Agree
o Disagree
o Strongly Disagree
6. Sufficient explanation of bidding process is provided by daraz
o Strongly Agree
o Agree
o Moderately Agree
o Disagree
o Strongly Disagree

7. Daraz gives you bidding information on time.

o Strongly Agree
o Agree
o Moderately Agree
o Disagree
o Strongly Disagree

8. User records and feedbacks are kept accurately and Services are provided on time.
o Strongly Agree
o Agree
o Moderately Agree
o Disagree
o Strongly Disagree

9. What is your dislike most about daraz.com.bd?

10. Do you have any comments, recommendations or expectations for and from daraz.com.bd?