Customer satisfaction of Daraz Nepal

By: Ashutosh Risal

Symbol No: 23334/18
TU Registration: 7-2-450-70-2018
A Summer Project Report submitted to
Faculty Of Management, Tribhuwan University
In partial fulfilments of the requirement for the degree of
Bachelor of Business Administration

At the
Thames International College
Tribhuvan University

Kathmandu , Nepal
September , 2022
 STUDENT DECLARATION

I hereby declare that the Summer Project entitled “Customer Satisfaction of Daraz
Nepal” submitted for the degree of Bachelor of Business Administration (BBA) is my original
work and the Project Work has not formed the basis for the award of any degree, diploma, or
other similar titles.

ASHUTOSH RISAL

ii
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project titled “Factors Affecting the Purchase of Counterfeit
Products in Kathmandu Valley” is submitted by ABC, in the partial fulfilment of the
requirements for the degree of Bachelor of business administration (BBA) Faculty Of
Management embodies the bonafide work done by her under my supervision.

Signature of the supervisor

Name:
Date:

iii
iv
 Table of contents
STUDENT DECLARATION................................................................................................................... ii
CERTIFICATE FROM THE SUPERVISOR ........................................................................................ iii
List of Figures ....................................................................................................................................... ix
Chapter 1 : Introduction ....................................................................................................................... 1
1.1 Background of the study ............................................................................................................. 1
1.2 Statement of the problem............................................................................................................ 2
1.3 Nature of the study...................................................................................................................... 2
1.4 Research Questions ................................................................................................................... 2
1.5 Objective of the study ............................................................................................................... 2
1.6 Significance of the study ............................................................................................................. 3
1.7 Literature Review ....................................................................................................................... 3
1.8 Conceptual Framework ............................................................................................................. 5
1.9 Research Methodology ............................................................................................................... 6
1.9.1 Research design .................................................................................................................. 6
1.9.2 Study Area ........................................................................................................................... 6
1.9.3 Data collection method ......................................................................................................... 7
1.9.4 Variables of the study............................................................................................................ 7
1.9.5 Population and Sample ....................................................................................................... 7
1.9.6 Sampling techniques............................................................................................................ 7
1.9.7 Data analysis and Interpretation ........................................................................................ 8
1.9.8 Ethical considerations ........................................................................................................ 8
1.10 Limitations of the study ........................................................................................................... 9
Chapter 2 : Data Analysis and Major Finding ................................................................................ 10
2.1 Description of the sample ......................................................................................................... 10
2.1.2 Users of Daraz............................................................................................................ 11
2.2 Presentation and analysis of the primary data ........................................................................ 12
2.3 Demographic characteristics of the respondents .................................................................... 18
2.4 Perceived Business ethical practices of customers ................................................................. 19
2.5 Major Findings ..................................................................................................................... 19
Chapter 3 : Conclusion and Recommendation ................................................................................ 20
3.1 Conclusion ................................................................................................................................ 20
3.2 Recommendation ..................................................................................................................... 22

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 Acknowledgements

The topic ‘Customer Satisfaction of Daraz Nepal’ seems to be very interesting to me. To complete
all the activities of the report from taking survey to presenting data, I have got immense support
from some individuals. In this section of the report, I’d like to express my gratitude to those who
have really been supportive to me throughout different stages of my report writing.

I am very thankful to the project supervisor and my honourable course facilitator Mr. Mahesh
Chandra Ghimire for his guidance, assistance, and continuous supervision. Without his kind
support and motivation, the completion of this project report would have been near to impossible
in this short period of time.
I would also like to thank the people who have participated in the survey and spend their valuable
time helping me. The video tutorials of some renowned Youtube channels have greatly helped me
.

Furthermore, I want to remember my parents on this auspicious moment as they have always
inspired me to continue my study with sincerity and patience.

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 Executive Summary

The rise of many e- commerce companies in Nepal such as Daraz, Thulo, Sastodeal, Muncha and
others. At first known as “Kyamu” which was established in 2014 could be accessed back then
through the site 'kay-mu.com'. Later on, this platform was acquired by the leading e-commerce
business of South Asia 'The Alibaba Group' in April 2018 . As a result, they rebranded the platform
from 'Kaymu' to 'Daraz Nepal'. Daraz Nepal has an extensive source of market environments,
sales growth, and returning consumers. In addition, Daraz Nepal has over 30,000 sellers and 500
brands serving over 5 million customers across the region. In this circumstance, Daraz – one of the
leading e-business in Nepal is running their business quite well; however, the complaints regarding
Daraz’s product category, delivery system, and payment method, behaviors of customer and
delivery personnel are not uncommon. This study aims to determine Daraz customers’ satisfaction
level and the areas of their dissatisfaction. Based on a review of the literature on factors of online
customer satisfaction and theories of customer satisfaction, a survey was conducted taking a
random sample of 50 people. Analysis of the responses demonstrated that Daraz customers
consider certain variables when they choose which e-sites they should purchase from. The results
also indicate what factors they give more priority as they have ranked the factors. After the analysis
of the problems, some suggestions have been proposed which can be helpful to improve the
gratification of Daraz customers.

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 List of tables

List of tables..........................................................................................................................................viii
Table 2.1.1 Gender distribution of the surveyed population ........................................................ 10
Table 2.2.1 I get all types of product on Daraz .................................................................................... 12
Table 2.2.2 Product description provided in Daraz app is really ......................................................... 12
helpful .................................................................................................................................................. 12
Table 2.2.3 The pictures of product are clear and vivid .................................................................... 13
Table 2.2.4 The design of Daraz app is user friendly ........................................................................ 13
Table 2.2.5 The product delivered to me in my doorstep from Daraz was ........................................ 14
similar to the product I saw on the app ................................................................................................ 14
Table 2.2.6 I can easily communicate with the seller through this app ............................................. 14
Table 2.2.7 I get reasonable price through Daraz ........................................................................... 15
Table 2.2.8 Daraz gives good discount on products .......................................................................... 15
Table 2.2.9 I got my ordered product in time ................................................................................... 16
Table 2.10 The behavior of delivery personnel is good............................................................... 16
Table 2.11 I could change the faulty products delivered to .......................................................... 17
me......................................................................................................................................................... 17
Table 2.12 I could contact with customer care when I faced ............................................................ 17
my problem .......................................................................................................................................... 17
Table 2.13 Customer care representative was responsive and ...................................................... 18
well behaved with me .......................................................................................................................... 18

viii
 List of Figures

F1: Pie Chart- Gender Distribution- Male or Female ............................................................................. 10

F2: I am regular user of Daraz ............................................................................................................. 11

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 Chapter 1 : Introduction

1.1 Background of the study

Around 25 years ago in 1994 A.D, the Internet was customary in Nepal. Around the same year, a
commercial E-mail service was started in Nepal by Mercantile. However, later in 1995 A.D,
private operators were used and the Internet was launched in Nepal. Mercantile is one of the first
companies to bring forward the Internet in Nepal. The most popular ISP of Nepal, i.e. Worldlink
was also established in 1995 A.D. They started giving Internet Service through Dial-up
connection.. From 2003 A.D, Worldlink started its wireless internet service which had a speed of
almost 256 KB/S. It is considered a milestone for private sector in internet history in Nepal.

Daraz Nepal was previously known as 'Kaymu' which was established in 2014 in Nepal. The e-
commerce platform could be accessed back then through the site 'kay-mu.com'. Later on, this
platform was acquired by the leading e-commerce business of South Asia 'The Alibaba Group' in
April 2018. Due to the digitalization of the E-commerce sector, a decision/proposal was put
forward to merge Kaymu and Alibaba under the new entity of Daraz Nepal to the Alibaba Group.
As a result, they rebranded the platform from 'Kaymu' to 'Daraz Nepal'. Daraz Nepal has over
30,000 sellers and 500 brands serving over 5 million customers across the region. It has proven to
be highly successful in the field of online shopping and tries to provide its customers with a better
shopping experience.

Still there are many complaints and dissatisfaction among the consumers who are actively
participating in Daraz online shopping. This may be the sign that they need to reform their
operating process and take customer feedback seriously. Therefore, this is really important for
online sellers to understand the level of satisfaction of customers. An in-depth customer insight
will help an online business to clearly identify the determinants of customer satisfaction and earn
the trust of people.

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 1.2 Statement of the problem

Daraz plans to become the leading e-commerce business in Nepal. Due to customer service
and delivery problem it has not been able to do so. Still many customers think that Daraz is not
providing service to its full capacity regarding product quality and expectations, call from
customer service , delivery time and information and other factors need to be addressed.This is
causing the loss of customer trust and customer itself. Loss of sales and delivery causing decrease
in the revenue. If Daraz aims at becoming top business in e-commerce it should immediately
emphasize on solving customer problem through feedbacks and make necessary ammendment in
organization department ,policy and operational process.

1.3 Nature of the study

The problem such as at what extent the customers are satisfied with the service is always
arising in e-commerce business. Since , all kinds of goods such as conveience ,shopping and
speciality products are now sold in Daraz Nepal it has to become efficient in its operation. Direct
contact medium with sellers,post-purchase service such as customer care, warranty ,etc are
lacking it can be solved through customer seller relationship.These problems have risen from
direct customer complaints before. Factors of online customer satisfaction is also related with
payment procedure, app design,customer care, refund policy,delivery time etc.

1.4 Research Questions

The purpose of this paper is to find out the answers of the following research questions:

1. The extent of satisfaction level among customers of Daraz Nepal ?

2. Whether the customers are satisfied of Daraz services ?

1.5 Objective of the study

1. To determine the satisfaction level among customers of Daraz.

2. To identify the ways to improve the satisfaction of the customers.

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 1.6 Significance of the study

The audiences of this project paper are those who are involved in e-commerce industry in Nepal.
Also the people who work at Daraz Nepal can be benefitted by this report. This paper will also
be a good help for future researchers and students.

1.7 Literature Review

One of the most important considerations for every business is to determine its customer’s
satisfaction. Without having the proper understanding of customer satisfaction, no business can
make progress. Since the last 2 decades, many companies in the world have consistently been
working to find out the characteristics of organisations which satisfy customers. Therefore, no less
than fifteen thousand write-ups have been published on the topic of customer gratification
(Peterson and Wilson, 1992). Different marking researchers have defined customer satisfaction in
different ways. According to Philip Kotler, a famous American Professor, “ Customer satisfaction
is a person’s feeling of pleasure or disappoinment, which resulted from comparing a product’s
perceived performance or outcome against his or her expectations” ( Philip Kotler, 2000). Another
two marketing researchers- Hansemark and Albinsson stated that satisfaction is the positive
customer experience towards a service provider (2004). If an organisation wants to please its
customers, that organization must fulfill the needs and wants of its customers (La Barbera and
Mazursky, 1983). Kotler further defined the term as the felt deprivation of a customer (Kotler,
20000). Daraz Nepal is active currently with its different added product categories and offers
during the different period and timeline of the year. It focuses on Nepalese festive seasons with
sasto deals and special dashain offers. The latest popular offer is 11.11 where many items are
discounted and being sold.

In a recent research by the faculty of Technology Management and Technopreneurship, Universiti

Teknikal Malaysia Melaka, it was revealed that three factors impacted online shoppers and they
are product quality, brand and shopping experince. Shopping experice is the feelings or impression
that a customer develops during his or her visit at the store. If the shoppers are pleased with the
product or service they purchase from online shops, they are highly likely to share their experince
on different social media platforms (Nelson, 2012). Brand, on the other hand, is the identity of a
company.A positive brand image is like an asset. It helps customers to make purchasing deceision
very easily. The customers who have no complaint against the company generally try to create a
relationship with that brand (Chiu, Huang& Yen, 2010). Likewise, product quality also plays a
very important role. The quality of the product is basically the features of the product that serves

3
a customer’s needs and wants. Product quality determines whether a customer wll be satisfied or
dissatisfatied. According to John, Mowen & Michael, product quality is the evaluation of
customers (Haslinda Musa, August 2015). In China, around 400 online business entrepreneurs
participated in a research and revealed that there are as many as eight determinants of customer
gratification, including website design, security, information quality, payment method, e-service
quality, product quality, product variety, delivery service. Website design is the appearance of the
site and high customer satisfaction is positively related to the design of the website (Cho and Park,
2001). Security is one of the main concerns for many shoppers. While creating account, they have
to provide many personal information which they don’t want to be stolen or misused by others.
One resarch finding is that there is an inverse relationship between security risk and purchase
intention (Wright, 2016). If the information provided in the website is reliable, then it helps
customers to perceive low risk Kateranttanakul (2002).

I have narrowed down my research that is Customer satisfaction among Daraz Nepal users to
especially targeting the youths living inside Kathmandu valley. Their employment and their source
of income are not given much importance because the major factor of research is dependent on the
respondents who are regular users of Daraz and their frequency of purchase is given upmost
importance while collecting the data. I have decided to take a questionnaire survey among the
students of Thames International College who are studying in BBA- 7th Semster and from my other
friends and other known members of college. Also , the service of the companies related to product
in terms of buying ,selling and other services related to it.Those categories are payment
procedure,promise fulfillment,product description,app design,delivery time and others. There are
also many product categories such as Men's Fashion. Women's Fashion. Home & Lifestyle. Sports
& Outdoor. Watches, Bags & Jewellery. These different purchases by customer can affect the
customer satisfaction as other lower range pricing and habitual products definitely have higher
level of customer satisfaction than higher end products. Individuals experience and different
customer expectations also cause impact on the customer satisfaction and customer experience
regarding the use of this e- commerce sites.

4
1.8 Conceptual Framework

Independent variables Dependent variables

1. Product variety
2. Product description
3. App design Customer Satisfaction of
4. Pricing Daraz users
5. Delivery time
6. Delivery personnel
behavior
7. Refund policy
8. Customer care

The above figure shows the conceptual framework which explores for eight independent variables,
one dependent variables and one mediator variables.

 It is expected that the consumers would be more satisfied if they feel they are beneficial in
factors such as production, app design, product variety,customer care and refund policy.

 It is expected that type of product category (low and high end ) and individual customer
preferences and expectations to vary some level of customer satisfaction.

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1.9 Research Methodology

In this study, the customer’s experience of using Daraz app has been analyzed. An
inductive approach using a qualitative method has been utilized. A survey has been
conducted to take the responses of Daraz users. Along with that, different news reports
have been used. After that, the collected data was analyzed and lastly, a final counclusion
has been drawn. Descriptive research is mainly used to describe the characteristics of any
population. The research data has been analyzed with a qualitative analysis. The questions
given to the respondents are close-ended. These questions are easy to understand and use.

1.9.1 Research design

Research design is a methodical, well-organized procedure utilized by a researcher or a

scientist to carry out a scientific study. It is a comprehensive coexistence of already
identified elements and any other information or data leading to a reasonable end result.
There are three types of research design explanatory, exploratory and descriptive.
Exploratory research is conducted for large-scale research where many resources are
needed and risk is high. It is also referred to as pilot research. No result can be reached
through such research work. Explanatory research, on the other hand, explains the reason
behind a particular problem. It is also termed as cause and effect research. Descriptive
research describes the characteristics of a sample, population, organization or product etc.
In other words, they are used to describe various aspects of a phenomenon.
Both qualitative and quantitative research have been used to determine the level of
satisfaction of Daraz customers. Customer’s responses were recorded through survey
queationnaire and then analyzed them through quantitative measure with descriptive
statistics and frequency analysis. Afterwards, the research findings were analyzed.

1.9.2 Study Area

The participants of this survey research are the students of Thames International college in
Kathmandu who purchase on the habitual basis have been qualified as regular Daraz user.
The individuals in the population has been selected very carefully. Only the students who
are a regular user of Daraz and their frequency of purchase is high has been chosen for this
survey. The survey was conducted in both online and offline. In offline, at first an
introduction about the survey was given and then a printed question was given. The
respondents filled the form and gave it back to the research conductor.

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1.9.3 Data collection method

Data from both primary and secondary sources were collected. Apart from that, some
books, different websites, journals, newspaper, research paper were utilized to get
secondary data. A total of 50 responses were recorded by the hard copy of questionnaire.

1.9.4 Variables of the study

The independent variables are product variety, product description, app or web design,
pricing, delivery time, delivery personnel behavior, refund policy and customer care.
Whereas the dependent variable is customer satisfaction of Daraz which is also the
research objective.

1.9.5 Population and Sample

A total of 50 individuals attended this survey. Among them, 36 were male which is 72%
of total population and 14 were female which is 28% of all respondents. Among the
participants, 42% were students and the rest 58% were engaged in many different
professions. Basically, the young students were given priority in this research because their
exposure to the internet is higher than others. According to age-group, 17 were from the
youngest group- 18 and 25 years, the majority 23 belonged to 26-31 age group and only 10
were 32 or above age group.

1.9.6 Sampling techniques

The participants of this survey research are the students of Thames International College.
The individuals in the population has been selected very carefully. Only the students who
are a regular user of Daraz and their frequency of purchase is high has been chosen for this
survey. The survey was conducted in both online and offline. In offline, at first an
introduction about the survey was given and then a printed question was given. The
respondents filled the form and gave it back to the research conductor.

7
5 point likert scale has been used in this research. The 5 points are:
1= strongly disagree; 2= Disagree; 3= Neutral; 4=Agree; and 5= strongly agree

1.9.7 Data analysis and Interpretation

In this paper, some variables which are related to e-satisfaction have been used among
Daraz users to find out their satisfaction level. These variables are payment procedure,
discount, setting price, customer care service, delivery time, Daraz web and app design
and so on. Several major problems have been identified with this survey. The issues are:
a. The regular customers face several problems in the app. They have problem with
the description of product, picture of the product and even the layout of the app
itself. These problems make the customers feel irritated and they switch to other
competitive sites.

b. In this research, people also showed their dissatisfaction towards Daraz customer
care service. The customer care fails to provide instant service. They sometimes
misbehave with customers. Their contact addresses cannot be reached and many
more.

c. No big issues were found in delivery timing, pricing strategy and in payment
system. The customers are positive about these factors.

1.9.8 Ethical considerations

The participants have been made aware of the consequences of this study so that they can
express their free opinion. They have also been informed that they can exit anytime from
the survey. Some of my friends helped me to take survey. All the information given in
this paper has been collected from the authentic sources.

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1.10 Limitations of the study

While preparing this report, I encountered several problems which has affected the quality
of the report to lesser extent. Some of these limitations are as follows:
i. Finding the regular users of Daraz was the biggest challenge. Many individuals
were found who had the experience of purchasing from Daraz but their purchase
frequency was not adequate enough to be selected in the survey. So it took huge
time to select 50 frequent users of Daraz.
ii. This research was written within a specific deadline. The deadline pressure poses
a great challenge to produce a quality report.

9
 Chapter 2 : Data Analysis and Major Finding

2.1 Description of the sample

Table 2.1.1 Gender distribution of the surveyed population

Frequency Percent Cumulative Percent

Valid Male 36 72.0 72.0
Female 14 28.0 100.0

Total 50 100.0

F1: Pie Chart- Gender Distribution- Male or Female

A total of 50 individuals attended this survey. Among them, 36 were male which is 72%
of total population and 14 were female which is 28% of all respondents. Among the

10
participants, 42% were students and the rest 58% were engaged in many different
professions. Basically, the young students were given priority in this research because their
exposure to the internet is higher than others. According to age-group, 17 were from the
youngest group- 18 and 25 years, the majority 23 belonged to 26-31 age group and only 10
were 32 or above age group.

2.1.2 Users of Daraz

F2: I am regular user of Daraz

Strongly Agree Agree Neutral Disagree Strongly Disagree

In this survey, 50 individuals attended. 48% strongly agreed and another 48% only agreed
with the statement that they are a regular user of Daraz app. 2 out of 50 participants were
neutral in this statement. So it is clear that almost all of the individuals taking part in this
survey are frequent users of Daraz app.

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2.2 Presentation and analysis of the primary data

Table 2.2.1 I get all types of product on Daraz

Frequency Percent Cumulative Percent

Disagree 4 8.0 10.0
Neutral 6 12.0 22.0
Agree 15 30.0 52.0
Strongly 24 48.0 100.0
agree
Total 50 100.0

Interpretation: In terms of product availability, the highest 24 pesons expressed their full
satisfaction, rating it as strongly agree. This is followed by 15 individuals who marked the
statement “agree”. The rest of the values are not significant. Thus, in this statement, most
of the respondents reacted positively. Daraz users want products of all categories and they
remain happy when they do not need to find out any product other than Daraz.

Table 2.2.2 Product description provided in Daraz app is really

helpful

Frequency Percent Cumulative Percent

Strongly 21 42.0 42.0
disagree
Disagree 14 28.0 70.0
Neutral 10 20.0 90.0
Agree 4 8.0 98.0
Strongly Agree 1 2.0 100.0
Total 50 100.0

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Interpretation: As per product description, more than one-fourth of the surveyed people
think the description is not enough. Nearly 30% also disagreed with the statement. So
product description is not clear. In the discussion session, people said the description is not
written in perfect language. They have difficulty understanding the product.

Table 2.2.3 The pictures of product are clear and vivid

Frequency Percent Cumulative Percent

Strongly 11 22.0 22.0
disagree
Disagree 26 52.0 74.0
Neutral 7 14.0 88.0
Agree 4 8.0 96.0
Strongly Agree 2 4.0 100.0
Total 50 100.0

Interpretation: When it comes to the clarity of the picture, 26 persons being surveyed said
the picture was not clear and this was the highest number, 11 people strongly believe that
the picture is not clear at all. The statement is supported by only a few people. The pictures
displayed on Daraz app are a big barrier of their satisfaction.

Table 2.2.4 The design of Daraz app is user friendly

Frequency Percent Cumulative Percent

Strongly 1 2.0 2.0
disagree
Disagree 2 4.0 6.0
Neutral 3 6.0 12.0
Agree 26 52.0 64.0
Strongly Agree 18 36.0 100.0
Total 50 100.0

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Interpretation: More than 50% participants (26) consider the app as user friendly. The 36%
also strongly feel it. So there is no issue with the existing app.

Table 2.2.5 The product delivered to me in my doorstep from Daraz was

similar to the product I saw on the app

Frequency Percent Cumulative Percent

Strongly 10 20.0 20.0
disagree
disagree 30 60.0 80.0
Neutral 5 10.0 90.0
Agree 4 8.0 98.0
Strongly agree 1 2.0 100.0
Total 50 100.0

Interpretation: 30 people didn’t agree with this statement and 10 more people strongly felt
that. The people after the survey revealed that in the app, the color of the product looks
bright but after the delivery, they don’t find similarity in the color. So it is obvious that the
app has failed to give the proper understanding of color and size to the customers

Table 2.2.6 I can easily communicate with the seller through this app

Frequency Percent Cumulative Percent

Strongly 14 28.0 28.0
disagree
Disagree 19 38.0 66.0
Neutral 9 18.0 84.0

14
 Agree 5 10.0 94.0
Strongly Agree 3 6.0 100.0
Total 50 100.0

Interpretation: This statement was given to the participants to check the accessibility of the
seller through the app. As many as 19 people disagreed with the statement. !4 more people
showed strong negative reaction to it. 9 people showed their moderate attitude towards it.
So this response indicates the problem of communication with the app. In open discussion,
the respondents said they did not any reply from the seller. Even sometimes, the sellers
didn’t pick up the phone or the number given was invalid.

Table 2.2.7 I get reasonable price through Daraz

Frequency Percent Cumulative Percent

Strongly 1 2.0 2.0
disagree
Disagree 2 4.0 6.0
Neutral 8 16.0 22.0
Agree 29 58.0 80.0
Strongly Agree 10 20.0 100.0
Total 50 100.0

Interpretation: In terms of price, the majority of participants believe they get fair price from
Daraz. 29 individuals gave agree and 10 others responded the statement with strongly
agree.

Table 2.2.8 Daraz gives good discount on products

Frequency Percent Cumulative Percent

Strongly 2 4.0 4.0
disagree
Disagree 1 2.0 6.0
Neutral 8 16.0 22.0

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 Agree 14 28.0 50.0
Strongly Agree 25 50.0 100.0
Total 50 100.0

Interpretation: In case of discounts, only a few people expressed dissatisfaction. It is

obvious that customers of Daraz find discount policy satisfying.

Table 2.2.9 I got my ordered product in time

Cumulative
Frequency Percent Percent
Strongly Disagree 5 10.0 10.0
Disagree 6 12.0 22.0
Neutral 5 10.0 32.0
Agree 7 14.0 46.0
Strongly Agree 27 54.0 100.0
Total 50 100.0

Interpretation: When asked about delivery timing. Most of the participants showed their
satisfaction. 27 persons strongly agreed and 7 others agreed with the statement. Compared
to many other e-sites, Daraz is doing well in this case.

Table 2.10 The behavior of delivery personnel is good

Frequency Percent Cumulative Percent

Strongly 13 26.0 26.0
disagree
Disagree 28 56.0 82.0
Neutral 7 14.0 96.0
Agree 1 2.0 98.0
Strongly Agree 1 2.0 100.0
Total 50 100.0

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Interpretation: Among 50 people, 28 ones rated the behavior as not good. The 13 other hold
the same view expressing their strong disapproval of the statement. Therefore, it can be
interpreted that the behavior of delivery boys are not up to the mark and it causes
dissatisfaction among customers.

Table 2.11 I could change the faulty products delivered to

me

Frequency Percent Cumulative Percent

Strongly 21 42.0 42.0
disagree
Disagree 18 36.0 78.0
Neutral 4 8.0 86.0
Agree 5 10.0 96.0
Strongly Agree 2 4.0 100.0
Total 50 100.0

Interpretation: The maximum 21 responded that they failed to get back the faulty product
and got a new one. 18 people also expressed the same feelings. So the process of returning
the wrong product is not very difficult for the customers of Daraz.

Table 2.12 I could contact with customer care when I faced

my problem

Frequency Percent Cumulative Percent

Strongly 7 14.0 14.0
disagree

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 Disagree 26 52.0 66.0
Neutral 11 22.0 88.0
Agree 5 10.0 98.0
Strongly Agree 1 2.0 100.0
Total 50 100.0

Interpretation: This statement was given to analyze the responsiveness of customer care
service of Daraz. 52% couldn’t agree with the given statement, which is the highest. 7 out
of 50 people strongly disagreed with it saying that customer care was unreachable when
they encountered any problem.

Table 2.13 Customer care representative was responsive and

well behaved with me

Frequency Percent Cumulative Percent

Strongly 1 2.0 2.0
disagree
Disagree 7 14.0 16.0
Neutral 9 18.0 34.0
Agree 12 24.0 58.0
Strongly Agree 21 42.0 100.0
Total 50 100.0

Interpretation: About the behavior of customer care personnel, the highest number of
people (42%) accepted that they have received friendly behavior from them. This is
followed by 12% more people who agreed with the statement. The other figures are not
considerable.

2.3 Demographic characteristics of the respondents

 Majority (i.e. 39 out of 50) of respondents say that they get all types of products
from Daraz.

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  Majority (i.e. 35 out of 50) of respondents say that the product description in Daraz
app is not enough.
 Survey also revealed that majority (i.e. 37 out of 50) of respondents disagreed over
the statement that pictures of the product are clear and vivid.
 More than 50% of participants responded that the app is user friendly.
 About 40% of respondents say that the product delivered to the doorstep was not
similar to the product they saw on the app.
 19 people disagreed that communication with the seller through this app was
effective.
 39% people feel that they get reasonable price for product from Daraz.
 Most of participants showed satisfaction with 34 persons agreeing over the delivery
of ordered product in time.
 (41 out of 50) people expressed the strong disapproval regarding the behavior of
delivery personnel.
 The number of 21 people responded that hey failed to give back the faulty product
and other 18 people also expressed the same feeling.
 52% of people disagreed over the customer care service effectiveness saying that it
was unreachable when they encountered any problem.
 Majority (i.e. 54%) of respondents say that they have received friendly behavior of
customer care representative.

2.4 Perceived Business ethical practices of customers

All the customers implied that they never cancel the delivery of the product when the
product is already put in the process of delivery from the sellers and when it reaches the
warehouses of the company. Also many customers agree that they never complaint about
the ineffectiveness of delivery before the fixed delivery deadline. Some customers even
gave positive review for the service and product delivered.

2.5 Major Findings

In this paper, some variables which are related to e-satisfaction have been used among
Daraz users to find out their satisfaction level. These variables are payment procedure,

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discount, setting price, customer care service, delivery time, Daraz app and so on. Several
major problems have been identified with this survey. The issues are:
a. The regular customers face several problems in the app. They have problem with
the description of product, picture of the product and even the layout of the app
itself. These problems make the customers feel irritated and they switch to other
competitive sites.

b. In this research, people also showed their dissatisfaction towards Daraz customer
care service. The customer care fails to provide instant service. They sometimes
misbehave with customers. Their contact addresses cannot be reached and many
more.

c. No big issues were found in delivery timing, pricing strategy and in payment
system. The customers are positive about these factors.

Chapter 3 : Conclusion and Recommendation

3.1 Conclusion

The e-commerce industry in Nepal is very promising. In recent times, this industry is going
through rapid growth phase due to rise in companies such as Daraz, Thulo, Sasto deals and
others. The export of goods from foreign e- commerce sites such as Amazon is restricted
due to government policies. So the goal is simple that is to deliver available goods in the
market for reasonable price and to focus on customer satisfaction and try to continuously
improve it. This report has been prepared on Daraz- which is one of the top players. The
purpose was to give an insight into the factors that affect the purchasing experience and
behavior of Daraz customers. Moreover, it has been attempted to find out the areas which
are the main causes of dissatisfaction of existing customers. Several past researches have

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been analyzed to identify the factors which are important to customers. Taking part in a
survey, some regular users express their attitude on these factors. The results indicate the
significance of some factors which a prospective customer consider while purchasing from
Daraz. Daraz certainly needs to address the issues to increase the level of satisfaction and
to prevent their customers from switching to other brands.

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3.2 Recommendation

Undoubtedly, Daraz is doing well compared to many other e-companies. However, there
are so many areas in which Daraz have to focus on. In order to improve the service, Daraz
can consider the following issues:
i. Daraz needs to establish a quality assurance department for every product caregory
so that faulty products can easily be identified.
ii. Daraz needs experienced content writer who can help sellers write the description
of the products they want to showcase.
iii. Some training sessions can be arranged for the sellers so that they can learn how to
take pictures properly and what equipment they should have in taking good
pictures.
iv. The hiring process of customer care representative should be made stricter. The
people with high level of tolerance should be selected. They must undergo several
training sessions.
v. Daraz has to be aware of the deceptive sellers. Many sellers are involved in many
fraudulent activity. These sellers must be brought under punishment.
vi. There is a lack of service recovery in Daraz. Whenever there is any service failure,
the company should provide prompt action for recovery. This is the way to retain
the customers.
vii. Many renowned brands have already started to appear online and provide services
like other e-businesses while keeping their physical existence intact. This is a
challenge for Daraz. They should continue their effort to bring all renowned brands
under their platform.

viii. Daraz needs to be careful about its pricing policy. Offering extremely low
price can attract customers in the short-run but in the long run, it will put the
company at huge risk.

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 References

Haslinda Musa, F. A. (August 2015). Factors Affecting Customer Satisfaction

towards Online Shopping. Research Gate.

Pau, T. C. (2020). E-Commerce: A significant step towards ultimate. Retrieved from

https://mblbd.com/assets/corporate/senior/E-commerce.pdf

Nisar, T. M., & Prabhakar, G. (2017). What factors determine e-satisfaction and consumer
spending in e-commerce retailing?. Journal of retailing and consumer services, 39, 135-
144.

Lin, H. F. (2007). The impact of website quality dimensions on customer satisfaction in

the B2C e-commerce context. Total Quality Management and Business Excellence, 18(4),
363-378.

https://www.earnfrombusiness.com/2021/12/daraz-nepal.html

https://theannapurnaexpress.com/news/business-daraz-continues-to-disappoint-
customers-3251

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 Appendices

Survey Questionnaire: Customer Satisfaction of Daraz Nepal

a. Name:

b. Age group: ○ 18-25 years ○ 26 and above

c. Gender: ○ Male ○ Female d. Profession: ○ Student ○ Others

Please provide your opinion in the following statements where 1= Strongly Agree; 2=
Agree; 3=Neutral; 4=Disagree; 5=Strongly Disagree

Consumer Behaviour 1 2 3 4 5
Statements
1. I get all types of products on
Daraz
2. Product description
provided in the Daraz app is
really helpful
3. The pictures of the product
is clear and vivid

4. I can easily communicate

with the seller through this app

5. The design of Daraz app is

user friendly

6. The product delivered to my

doorstep from Daraz was
similar to the product which I
saw on the app

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7. I get reasonable price
through Daraz.

8. Daraz gives good discount on

products.

9. I got my ordered product in

time.
10. The behavior of delivery
personnel is good.
11. I could change the faulty
product delivered to me.

12. I could contact with

customer care when I faced my
problem.
13. Customer care
representative was responsive
and well behaved with me.

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