Project On Daraz. MBA507

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Project Topic

An Investigation of Customer’s Dissatisfaction Factors: A Study on Daraz Bangladesh

Course Title
Business Communication
Instructor

Ms. Nigar Sultana

Submitted By

Name ID

Md Shahriar Sadat 2111048

Kazi Sunny 2221300

Asad Uz Zaman 2221301


Table of Content:
Topic Point Name Page Number

Executive Summary 1

Introduction 2

Objective of the Study 3

Organizational Overview 3-4

Industry Analysis 4-5

Topic Related Literature 5

Methodology 5-6

Data Analysis 6

Data Interpretation 7

Have you ever ordered product from Daraz? 7

Which word comes to your mind about Daraz 7-8


Product?

Does the delivered product actually look alike 8


which is given to their website?

Daraz provides sufficient information about 9


the product in their website?

Does the product quality able to meet 9


expectation?
Daraz customer service response is quick? 10

Daraz always maintain the delivery time when 10


you order their product?

Vendor of Daraz maintain the product quality 11


when Daraz run their 11:11 campaign?

What’s your thought when you have to pay the 11


delivery charge for individual product but you
have ordered in a same time and product
delivered in a same time?

What’s your thought on Daraz Bangladesh 12


return policy?

What’s your overall thought on Daraz 12


Bangladesh service?

Findings and outcome of the study 13

Recommendations 13-14

Conclusion 15

Reference 15

Bibliography 16

Appendix 16-17
1

Executive Summary:

Daraz Bangladesh is leading e-commerce company in Bangladesh who has brought a new era in
shopping trend. People can easily get their most of the desired item through ordering Daraz apps or
website. During pandemic, people can easily get their daily necessity items without any close human
contact. We are doing this report to find out customer dissatisfaction of Daraz Bangladesh service. We
have talked about the industry of e-commerce for this project. We have done primary and secondary
research for this project. We have found some reports in online as secondary research which we have
used to complete our literature review. For this report we need to know the customer’s opinion why
they are not satisfied with Daraz Bangladesh service. So, we have done a survey questionnaire among 12
people.
We have got some dissatisfaction factors through our survey. We have used Excel as a statistical tool to
present our result in our project. And, we have used graphs to interpret our data which we found
through our survey. We have seen that, customers are mostly complaining about product quality, less
supportive of customer care department, return policy, individual product service charge which ordered
at a time and so on. We have come up with some solution or recommendation against this problem. So,
Daraz should take a necessary step to make their customer happy so that they do re-purchase from
Daraz Bangladesh. And, it helps to Daraz to capture the whole market.
2

Introduction:
E-commerce platform business is a business transaction that is performed via internet. Using e-
commerce consumers can exchange goods or services electronically without any hassle. Now a day’s,
numerous numbers of companies are selling their tangible and intangible goods through e-commerce. E-
commerce refers to any commercial transaction that happens through electronic media. Moreover, the
process of ecommerce can save both time and money for its users by bringing all the services closer to
peoples‟ doors. An online marketplace provides a buying and selling opportunity to people without the
hassle of visiting any physical marketplace. With expansion of the number of online stores, people are
with more selections of items and retailers. In the meantime, it makes information more available to the
customers. As a developing country, Bangladesh has a lot of potentials to grow in different fields and
ecommerce is one of those sectors. Although the e-commerce sector is fairly new as it is believed to
have emerged in the last 90s, the trend is quickly catching on. Gradually the ICT ministry of Bangladesh
has been taking many initiatives for making e-commerce sector more popular, for example, bringing in
payment gateway options. Moreover, as the cost of internet and computers has decreased over the
years, the e-commerce industry is seeing an increase in business. Thus, a lot of e-commerce brands have
now emerged both international and national.

In Bangladesh, Daraz Bangladesh is the pioneer of the e-commerce industry who has brought a new
trend of online retail platforms and change in the shopping trend of Bangladesh. This leading online
retailer platform had established in 2012 by the German investment organization, Rocket Internet and
it’s been running its business since in 2015 October in Bangladesh.

DARAZ was founded as a fashion retailer in Pakistan in 2012, but changed to a general marketplace
strategy and business model in 2015 when it also launched operations in Bangladesh. DARAZ is South
Asia's premier online shopping marketplace with an active presence in Pakistan, Bangladesh, Sri Lanka,
Myanmar and Nepal. Supported by a wide range of tailored marketing, data, and service solutions,
DARAZ has 30,000 sellers and 500 brands and serves 5 million consumers across the region. DARAZ has
more than
2.5 million products to offer and it is growing at a very faster pace.
3

Objective of the study:


We have done our report on customer dissatisfaction of Daraz Bangladesh service. So, the main
objective of study tries to find out the factors that increases the customer dissatisfaction level from
taking Daraz Bangladesh service. For this purpose, we have read some projects and theories which we
have found in online as secondary research to know about customer dissatisfaction. We have thrown
some questions on the people who already took service from Daraz Bangladesh to find out the problem.
The result is actually based on our questionnaire answer. And, then we have tried to give some solution
to solve this problem.

Organizational Overview:
Daraz is one of the best e-commerce companies in Bangladesh. They reach out to the consumers
through their e-commerce site with products of various reputed brands. This top online retailing
platform was founded in 2012 by the German investment group Rocket Internet and has been operating
in Bangladesh since 2015. Daraz is a company that was established entirely with foreign capital. The
primary countries where the Daraz Group runs its online marketplace are Pakistan, Nepal, Sri Lanka,
Myanmar, and Bangladesh. China's largest industrial group Alibaba later acquired Daraz Group.

Daraz Bangladesh is an online shopping and selling platform involving various product such as electronic
devices, groceries, household product, fashion items etc. Daraz Bangladesh headquarter is located in
Banani. Currently Daraz has 3332 employees. Various vendors display their products on the Daraz
Bangladesh website and from there customers pick the products according to their choice. In return,
Daraz takes a fixed amount of commission.
4

Vision:

The vision of Daraz Bangladesh is to "be the best marketplace by offering superior services to all of vendors
and customers." And capture the maximum share of e-commerce industry.

Mission:

Make all the necessities available to clients and identify the top vendors nationwide to feature their
items on the Daraz website in order to expand throughout Bangladesh and capture the largest market
share in the ecommerce sector.

Industry Analysis:
Daraz Bangladesh falls under E-commerce industry. According to a national survey, e-commerce sector
of Bangladesh is projected to be around 3 billion by 2023. Bangladesh is going to turn out to be middle
income country from least developed country. We found that consumers are likely to spend more
money on fashion and food. So, we can say that, E-commerce sector will be grow more in near future.
These industries financial growth has increased due to covid-19 lockdown in past years.

There are four types of e-commerce available in Bangladesh which includes-

 Business to Business (B2B)


 Business to Consumer (B2C)
 Consumer to consumer (C2C)
 Business to Employees (B2E)

But there is problem in this sector which is seller’s policy. There are lot of vendors or sellers are listed in
many E-commerce websites but they do not have their own stock or business. They are mainly re-seller
who source the goods from wholesaler or local vendor and then sell the product in website for a margin.
But this process is time consuming because they tend to delay their product to send e-commerce hub.
And, then consumer don’t get their product in time sometimes.

Bangladesh Bank has approved online payment in 2009 and the bank approved the usage of debit and
credit card for online payment. Nowadays, customer can pay through b-kash. According to the
association, there are 8,000 e-commerce pages in Facebook. The growth of the industry has been
inhibited by low usage of credit and debit cards. FBCCI has recommended removal of tax on e-
commerce.
5

Daraz is an online platform where dealers picturize their product with price so that customer can see
and order through Daraz web-site. There are some direct competitors of Daraz in this sector which
includes- Ajker Deal, Bagdoom and Pickaboo. And, there are some indirect competitors which includes-
Rokomari, AjkerDeal, Ekhanei.com Bikroy.com. Study shows that, Daraz is capturing more market share
than their competitors.

Topic Related literature review and theories:


The study shows that significant number of customers are dissatisfied with the services of Daraz
Bangladesh. Customer are dissatisfied because of faulty product, less responsiveness from Daraz
customer care, service charge. The writer says that deal with professional vendor, look proper concern
on customer’s complaint.

We have reviewed another literature which shows that there are several issues in the e-commerce
industry of Bangladesh. There are some issues Includes-lengthy delivery time, low quality product and
charging higher prices.

This study which is conducted by a student from Bangladesh who is studying in China. The author tried
to find out Daraz shortcomings and make a way that Daraz can improve their customer satisfaction level.
The research is based on qualitative approach. This research found out that poor product quality, pricing
policy, return policy, less number of pick up points and many more. He recommended to upgrade their
customer service, improve delivery system and pricing policy and being aware of cyber-crime.

We have reviewed a theory. This theory describes that factor which are responsible for customer
preference. This theory also explains that why preferences are changed. According to this theory we
have got those peoples preference changes because of pricing policy, discount, product quality and
services.

Methodology:

We have used two ways to collect our data for accomplishing the needs of our project which includes-

 Primary Data
 Secondary Data

Primary Data: We have taken a survey on customer who took a service from Daraz Bangladesh for
gathering our primary data. We have made a questionnaire which help us to get the information from
customer according to our project topic.
6

Secondary Data: Secondary data helps us to get our project done. We have taken help from topic
related various journal, Daraz Bangladesh website, theories, sample project from internet.

How to collect Data: We have gathered our primary data through door-to-door interview. Our group is
consisted by three members. We three members have collected data from 15 respondents. We have
found respondent from our office colleague, family members, neighbor and friends.

How to analysis the Data: We have analyzed our data through using Excel and different charts.

How to interpret data: We have briefly discussed the percentage what we have got from our primary
research.

Data Analysis:
We have gathered data for this project through survey questionnaire. We have used one statistical tool
which is Excel for presenting data result.

Our Excel data is given below:

Respondent Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11


1 Yes Reliable Always Disagree Agree Disagree Agree Disagree Dissatisfied Dissatisfied Satisfied
2 Yes HighQuality Mostly Agree Neutral Disagree Agree Neutral Dissatisfied Dissatisfied Dissatisfie
3 Yes Poor Quality Never Neutral Disagree Neutral Neutral Strongly Disagree Dissatisfied Dissatisfied Satisfied
4 Yes Reliable Rare Agree Agree Agree Disagree Disagree Dissatisfied Dissatisfied Satisfied
5 Yes Poor Quality Never Neutral Disagree Disagree Neutral Agree Dissatisfied Neutral Dissatisfie
6 Yes HighQuality Mostly Agree Disagree Disagree Neutral Strongly Disagree Dissatisfied Dissatisfied Neutral
7 Yes Reliable Always Strongly Disagree Disagree Neutral Disagree Disagree Dissatisfied Neutral Dissatisfie
8 Yes Unrelaible Rare Agree Disagree Neutral Agree Neutral Dissatisfied Neutral Satisfied
9 Yes Unrelaible Mostly Disagree Agree Neutral Neutral Neutral Dissatisfied Neutral Neutral
10 Yes Poor Quality Always Agree Agree Disagree Agree Agree Dissatisfied Neutral Dissatisfie
11 Yes Reliable Never Agree Agree Disagree Agree Agree Dissatisfied Neutral Satisfied
12 Yes Unrelaible Always Disagree Agree Agree Neutral Disagree Dissatisfied Dissatisfied Dissatisfie
7

Data Interpretation:
Question-1: Have you ever ordered product from Daraz?

100%

YesNo

Our project is based on Daraz Bangladesh service. Only those people helped us to complete the survey
who took Daraz Bangladesh service before. So, we have found 100 percent customer who are
experienced with Daraz.

Question-2: Which word comes to your mind about Daraz product?

25%
33%

25%
17%

ReliableHigh QualityPoor QualityUnreliable

So, we have got 12 responses from our questionnaire survey. We have seen, 33% customer are reliable
on Daraz product. 17% people said that, Daraz send high quality product to their customer. And, 25
percent customer are not satisfied with Daraz product. They have said that the product quality is poor.
And, 25 percent people has said that product are not up to the mark.
8

We have found that, 50% people are happy with Daraz product and 50% people are not satisfied with
Daraz product. So, Daraz Bangaldesh has to focus on it. They need to find a proper strategy to solve this
matter. Otherwise, they are going to lose a huge number of customers.

Questiom-3: Does the delivered product actually look alike which is given to their website?

25%
33%

17%

25%

NeverRareMostlyAlways

We have found that, 33% customer has got their exact product which is mentioned in their website. 25
percent of customer most of the time got their desired product look alike in website product picture.
17% people rarely got their product which is mentioned in their website. 25% customer has said that,
they did not get their product exact which is mentioned in the website. Their market will go down if
Daraz don’t look after this matter seriously.
9

Question-4: Daraz provides sufficient information about the product in their website?

8%

25%
50%

17%

AgreeNeutralDisagreeStrongly Disagree

We have found that most of the customer agreed with this argument. Daraz provides sufficient product
information in their website. 50% customer has agreed with this statement. 17% customer was neutral
with this statement. 25% & 8% customer has disagreed and strongly disagreed with this statement.

Question-5: Does the product quality able to meet expectation?

15%

46%

39%

AgreeDisagreeNeutral

We have found that 46% customer are happy with Daraz product according to our survey. And, 15% are
neutral about that. 39% customer are dissatisfied with Daraz product quality according to our survey.
We can say that; huge percentage of customer are not satisfied with the product quality. So, Daraz need
to seat and talk with their vendors if they don’t want to lose their customer.
10

Question-6: Daraz customer service response is quick?

17%
33%

50%

AgreeDisagreeNeutral

According to our survey, we have seen that, 33 percent customer are neutral about Daraz customer care
service. And, 17 percent have said that their service is good. But, 50 percent customer has disagreed
with our statement. They have said that, there are not supportive at all. So, Daraz has to find out the
problem of this department.

Question-7: Daraz always maintain the delivery time when you order their product?

42% 41%

17%

AgreeDisagreeNeutral

We have found that 41% customer are happy with Daraz product delivery time. And, 42% customer are
neutral about it. Only 17% customer are unhappy with their time. So, we can say that Daraz provides
their product timely most of the time.
11

Question-8: Vendor of Daraz maintain the product quality when Daraz run their 11:11 campaign?

11%
27%

27%

35%

AgreeDisagreeNeutralStrongly Disagree

We have found that 27% customer are satisfied with Daraz 11:11 campaign product. 27% people are
neutral about hat. And 35 % & 11% customer are not satisfied with the product when they ordered from
Daraz 11:11 campaign.

Question-9: What’s your thought when you have to pay the delivery charge for individual
product but you have ordered in a same time and product delivered in a same time?

0%

100%

SatisfiedDissatisfied

Our 12 responds are dissatisfied with policy of paying service charge for individual product when you
ordered and got the product in a same time according to our survey. So, Daraz has to change this
strategy.
12

Question-10: What’s your thought on Daraz Bangladesh return policy?

42%

58%

DissatisfiedNeutral
We have found the 58% customer are dissatisfied with their return policy according to our survey. Their
return policy is time consuming and they don’t have any cash return policy of their faulty item or return
product. Another thing, if you are failing to return the product to their delivery man, then you have to
send the return product by your own way. And, 42% people are neutral about that.

Question-11: What’s your overall thought on Daraz Bangladesh service?

17%

41%

42%

SatisfiedDissatisfiedNeutral

So, we found that, 41% people are satisfied about Daraz overall service in terms of our questionnaire
survey. And, 42% customer are dissatisfied and 17% customer are neutral about that.
13

Findings and outcome of the study:


We have found some issues of Daraz Bangladesh service according to our questionnaire survey. Those
issues are given below-

 Product Quality: A huge percentage of customer said that they have got faulty product from
Daraz several times.
 Customer care Response: Almost half of our responder has said that their customer care
representatives are not cooperative at all. They didn’t find them most of the time.
 Campaign product: 46 percentage of customer are dissatisfied with Daraz Bangladesh 11:11
campaign product. They have said that they ordered a product and they got a product which
they didn’t order.
 Delivery charge for individual product which is ordered in same time: We took 12
individuals’ response for this survey. All the responder has said they are not happy with this
policy of Daraz Bangladesh.
 Return Policy and exchange cash: Most of the consumer has dissatisfied with their return
policy. They take time to exchange the product. And, they don’t have a policy to return cash of
their faulty or return product.
 Delivered product look alike with website: Many of the responder has complained that the
product didn’t look alike with the website picture. They also mentioned that they have received
a different color product which color they didn’t order.

Recommendation:
We have found some problem when we go through our survey. So, we have come up with solution or
recommendation for this problem. Solutions are given below-

 Avoid low quality and faulty product: Daraz is just a way to deliver the product to customer
doorsteps. Vendors and re-sellers are selling product through Daraz website. So, Daraz should
strictly monitor this and talk with the vendors and re-sellers to advertise a quality product. They
should monitor or find who are selling faultier product and take a step against them.
14

 Monitor customer care department strictly: According to our survey we have found that
customer is dissatisfied with customer care 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. A huge number of
calls and queries are received every day. So, the number of employees of customer service
department should be increased to ensure effective and prompt service from the department.
 Ensure campaign product quality: When Daraz runs their 11:11 campaign they should source
the product from authentic vendors who maintains the product quality.
 Avoid or reduce the service charge for individual product: When a customer ordered
more than one product in same purchase time, Daraz should reduce the service charge or apply
service charge for one product.
 Reduce time and exchange a cash for return item: Daraz should take proper care when
comes to returning default product. They should take less time to return product to customer.
And, they can exchange cash instead of exchange a product. Because, when customer receives a
faulty product, they are not in a mind to order another item. If, Daraz can follow this thing,
customer will happy to shop again at Daraz.
 Ensure that delivered product is look alike with website picture: We have got some
complaints that customer did not take exact color or product what they ordered. So, Daraz
packaging team should cross check with customer ordered copy that customer has ordered
same product or same color when product comes from vendors.

We have found some recommendation from other reports which is already exist in internet as a
secondary resource. So, we are going to include here-

 Reward system: Daraz Bangladesh can start reward system like Shopno and Ali express.
They can reward their customers who purchase a certain amount of money at a time.
 Varieties in price: Pricing are different for same product in their web-site because of
different vendors here. Daraz should make a policy that all the vendors make a same price
for similar product.
 Promotional activities: They need to create more promotional campaign which helps
them to engage more customer.
 Quick delivery service outside of Dhaka: They should come up with a faster delivery
system for outsider customer.
15

Conclusion:
Daraz Bangladesh is one of the leading companies in e-commerce industry in Bangladesh. They are
offering a wide selection of products from renowned brands in Bangladesh with a promise of fast, safe
and easy online shopping experience. We have done our project to find out a customer dissatisfaction.
What are factors of customer dissatisfaction of Daraz Bangladesh service? For this project, we have done
a survey questionnaire. We have come up with some problems because customers are dissatisfied
through our survey. Consumer doubts about their product quality. They have complaints about their
return policy, individual product delivery charge and so on. So, Daraz management should proper
research about that why consumers are complaining for particular some issues and they need to sort
out this problem. Otherwise, customer will not shop again with Daraz who has a bad experience with
Daraz Bangladesh service. If it happens regularly Daraz will lose a huge number of customer as well as
market share.

References:
 https://www.researchgate.net/profile/Haslinda-
Musa/publication/281114238_Factors_Affecting_Customer_Satisfaction_towards_Online_Sho
pping/links/55d6c8cf08aeb38e8a841289/Factors-Affecting-Customer Satisfaction-towards-
Online-Shopping.pdf
 https://www.studocu.com/row/document/united-international-university/operation-
management/project-report-daraz-bangladesh-customer-satisfaction-of-daraz-
bangladesh/22419498
 http://dspace.bracu.ac.bd/xmlui/handle/10361/8146
 https://www.newagebd.net/article/147734/e-commerce-in-bangladesh-prospects-and-
challenges
 https://www.academia.edu/33672993/Customer_satisfaction_in_E_Commerce_A_case_stud
y_of_China_and_Bangladesh_Acknowledgements
16

Bibliography:

 Haslinda Musa, F. A. (August 2015). Factors Affecting Customer Satisfaction towards Online
Shopping. Research Gate.

 S United International University, S.F (2021). “Customer satisfaction of Daraz Bangladesh”.

 Ashraf, S. S. (2017). “Barriers in growth of Daraz Bangladesh from customer’s point of view”.
 N North China University of Technology obin, K. H. (2016). Customer satisfaction of E-commerce.
 Saeed, Q. T. (Aug 31,2021). E-commerce in Bangladesh: prospects and challenges. NEWAGE S

Appendix:
Questionnaire on Customer dissatisfaction factors of Daraz Bangladesh.

1) Have you ever ordered product from Daraz?


a) Yes
b) No
2) Which word comes to your mind about Daraz product?
a) Reliable
b) High Quality
c) Poor Quality
d) Unreliable
3) Does the delivered product actually look alike which is given to their website?
a) Never
b) Rare
c) Mostly
d) Always
4) Daraz provides sufficient information about the product in their website?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
5) Does the product quality able to meet expectation?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
17

6) Daraz customer service response is quick?


a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
7) Daraz always maintain the delivery time when you order their product?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
8) Vendor of Daraz maintain the product quality when Daraz
run their 11:11 campaign?
a) Strongly Agree
b) Agree
c) Neutral
d) Disagree
e) Strongly Disagree
9) What’s your thought when you have to pay the delivery charge for individual product but you
have ordered in a same time and product delivered in a same time?
a) Satisfied
b) Dissatisfied
10) What’s your thought on Daraz Bangladesh return policy?
a) Satisfied
b) Dissatisfied
c) Neutral
11) What’s your overall thought on Daraz Bangladesh service?
a) Satisfied
b) Dissatisfied
c) Neutral

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