An Internship Report On Customer Satisfaction of E-Commerce in Bangladesh
An Internship Report On Customer Satisfaction of E-Commerce in Bangladesh
Customer Satisfaction
Of
E-commerce In Bangladesh
Customer satisfaction of E-commerce
An Internship Report on
Customer Satisfaction
Of
E-commerce In Bangladesh
SUPERVISED
BY
Ms. Iffat Tarannum
Lecturer
BRAC Business School
BRAC University
PREPARED
BY
Kamran Hossain Nobin
ID: 12104044
BRAC Business School
BRAC University
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Customer satisfaction of E-commerce
StudentDeclaration
I am Kamran Hossain Nobin, ID: 12104044 declare that the presented Internship Report on
“Customer Satisfaction of E-commerce in Bangladesh” submitted as a requirement for
degree awarding of Bachelor of Business Administration at BRAC University is prepared
by me. I tried my best to collect effective information that made the report specific and
original. This report is not submitted for any other course, degree, and fellowship. Whole
report is uniquely prepared by me.
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Customer satisfaction of E-commerce
Contents
Chapter1 ...................................................................................................................................................... 12
Introduction ................................................................................................................................................ 12
Chapter2 ...................................................................................................................................................... 15
Literature Review ........................................................................................................................................ 15
Chapter3 ...................................................................................................................................................... 18
Company Overview ..................................................................................................................................... 18
Daraz Group Hierarchy............................................................................................................................ 20
Departments of Daraz ............................................................................................................................. 21
Marketing Mix of Daraz Bangladesh Ltd ............................................................................................... 22
Product ................................................................................................................................................ 22
Price .................................................................................................................................................... 23
Place .................................................................................................................................................... 23
Promotion ........................................................................................................................................... 24
Chapter4 ...................................................................................................................................................... 26
Job Description............................................................................................................................................ 26
Tenure of Employment ....................................................................................................................... 27
Working Hours .................................................................................................................................... 27
Remuneration: .................................................................................................................................... 27
Work Station: ...................................................................................................................................... 27
Job Responsibilities ................................................................................................................................. 28
Creating campaign planning for the whole week ................................................................................... 29
Following up previous campaign ............................................................................................................ 29
Data analysis ........................................................................................................................................... 29
Monitoring website performance........................................................................................................... 30
Collaborating with visualizes................................................................................................................... 30
Collaborating with different departments.............................................................................................. 31
Preparing USP ......................................................................................................................................... 31
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Customer satisfaction of E-commerce
5
Customer satisfaction of E-commerce
Adaptability ......................................................................................................................................... 44
Steps of ensuring proper service ............................................................................................................ 45
Be civil and respectful ......................................................................................................................... 45
Treat customer with empathy ............................................................................................................ 45
Response quickly ................................................................................................................................. 45
Be reliable ........................................................................................................................................... 45
Explain the process ............................................................................................................................. 45
Anticipating customers need .............................................................................................................. 45
Follow up ............................................................................................................................................. 45
Chapter7 ...................................................................................................................................................... 46
Conclusion ................................................................................................................................................... 46
References .................................................................................................................................................. 48
Appendix ..................................................................................................................................................... 49
Survey Form ............................................................................................................................................ 49
Survey Result........................................................................................................................................... 51
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Customer satisfaction of E-commerce
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Customer satisfaction of E-commerce
Letter of Transmittal
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Customer satisfaction of E-commerce
Letter of Authorization
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Customer satisfaction of E-commerce
Acknowledgements
Firstly, I want to thank Almighty Allah for everything. With the help of the Almighty and my
parents’ blessings I have successfully completed this report after finishing my internship period.
Next, I would like to express my immense gratitude towards my advisor, Ms. Iffat Tarannum,
Lecturer of BRAC Business School, BRAC University, for her constant assistance and
supervision.
Along with that I need to thank Mr. Barish Khandakar, Head of Onsite & Content Department,
Daraz Bangladesh under whose supervision I have completed my internship. He provided me so
many learning opportunities to enrich my knowledge.
I would like to thank my other colleagues of Daraz Bangladesh Ltd for their guidance and
support during the entire program and teaching me to face the professional world.
Last but not the least, I am grateful to BRAC University which is the reason I am standing here
on the precipice of earning my bachelor degree successfully.
I have tried to complete this report with full dedication. Any kind of comments or suggestions
regarding this will be highly appreciated.
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Customer satisfaction of E-commerce
Executive summary
E-commerce has brought a new era of shopping trend in Bangladesh. It has opened so many
opportunities for business along with new trend for the customers. In this report I have tried to
bring the some facts of Online shopping in Bangladesh and Company overview of Daraz
Bangladesh Ltd from where I have completed my internship. At the beginning of the report in
Chapter 1, I have given a brief overview of e-commerce and online shopping trend in
Bangladesh. On Chapter 2 I put literature review of e-commerce and online shopping. On the
next in Chapter 3, I have added company overview of Daraz Bangladesh Ltd. I have added their
product type, payment method, website overview. On Chapter 4, I described my job
responsibilities of my internship period. In Chapter 5, there is methodology, limitations and
research objective of this report. In Chapter 6, there is result and interpretation of the research.
Moreover recommendations also have been added in this chapter. Conclusion have been put in
chapter 7. Throughout the report I tried to find out what types of service customers are expecting
from E-commerce and what the service condition is in this sector. It’s so much important to
develop a service oriented business to satisfy the customers anticipating their needs and
demands.
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Customer satisfaction of E-commerce
Chapter1
Introduction
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Customer satisfaction of E-commerce
In our country like 10 years back we didn’t think that we will buy anything ordering online. But
at recent time the scenario has changed drastically. This happened due to the improvement of
technology as well as for a new thought, e-Commerce. Ecommerce was introduced 40 years ago
to anticipate the customer demand and more pursue customer satisfaction E-commerce got a
whole new level in 1970’s.
In Bangladesh e-commerce was introduced few years back and it became popular near 2013. So
many e-commerce companies started their journey. Most of them started as online shop. There
were both Local and Foreign companies. Now there is good atmosphere of e-commerce in
Bangladesh and even Bangladesh government is also emphasizing on this sector considering its
growth. The total number of internet users in Bangladesh is 21,439,070 which are 13.2 % of total
population. So here is huge potential market of e-commerce growth. Male customers look for
“Clothing and footwear’ online, and female customers seek for ‘Jewelleries and Watches’.
Lowering internet cost is driving the e-commerce growth. Need for reliable delivery service to
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Customer satisfaction of E-commerce
support e-commerce growth, cash on delivery options, addition of Skype and Viber in
customer service and success stories of Facebook stores have been revealed for the consideration
of the existing and future market entrants. (Rahman, 2015)
Daraz Bangladesh Ltd venture of Rocket internet started its journey in Bangladesh in August
2013. It’s a common online market place for sellers and buyers. It promotes branded products to
the customers. It basically plays role both B2B and B2C. Kaymu Bangladesh Ltd is another
venture of Rocket internet. It’s also an online shopping media. But there is a major difference is
in Kaymu anyone can use Kaymu’s platform and sell their products but in Daraz, it promotes
new brands and sell products which already has brand value in the market. In recent time, Daraz
and Kaymu have been merged their business to grab more market shares. Now they are called
Daraz Group.
In this paper I have tried to come up with the business policy of Daraz BD along with how they
try to attract its customers using several online media. I have also done an online survey to know
about what is customer’s expectation and perception of online shopping. Since ensuring good
quality service is the most important nowadays I have tried to find out what can be ensured on
this aspect.
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Customer satisfaction of E-commerce
Chapter2
Literature Review
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Customer satisfaction of E-commerce
3 essential variables, which are likely to influence consumer intentions: (a) convenience
characteristic of shopping channels, (b) product type characteristics, and (c) perceived price of
the product. Results indicate that convenience and product type influence consumer intention to
engage in online shopping. When consumers perceive offline shopping as inconvenient, their
intention to shop online is greater. Also, online shopping intention is higher when consumers
perceive the product to be search goods than experience goods (Chiang, 2003)
Consumers also expected that product delivery in online shopping will be quicker compared to
offline stores and timely delivery on their convenience time; factors that keep consumers satisfy
in using internet as a tool for shopping is timely and reliable delivery (Ahn, Ryu and Han, 2004).
Broekhuizen and Huizingh (2009) expected the relationship between time or effort savings and
purchase intentions is strengthen; consumers will place more emphasis on the time and effort
savings once they have experienced how little time and effort takes to make an online purchase.
Liu, He, Gao and Xie (2008) suggested that to save customer's time and fully reflect the
convenience of online shopping, e- marketers should strengthen the web site's transaction
capability and make sure all operations can be completed online.
(Source: [Link] )
The business of commercial transactions between and among organizations and individuals
using the aid of digital technologies is commonly regarded as E-commerce (Chaffey, 2007).
Initiating since 1995, e-commerce, (also called electronic commerce) has continued to receive
proliferated growth rates of over 100% in a year at the early days of [Link] (Laudon &
Traver, 2007). Till date, [Link] serves as one of the most prominent and successful online
retail stores which has had a transformational impact on e-commerce worldwide, serving as an
epitome. Their recent announcement of US $2 billion investment in neighbouring India
accentuates the opportunities or online businesses in South Asian region (Forbs, 2014).
In 2005, the overall Internet and e-commerce adoption rate was lower in South Asia than the
rest of the world (Kshetri & Dholakia, 2005). However, a change in this trail took place in the
past 10 years with the number of Internet users and thus, the number of people engaging in e-
business of various sorts increasing at a rapid pace (Abbasi, Chandio, Soomro, & Shah, 2011).
Recent McKinsey report (2014) estimates that the number of global Internet users shall be
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Customer satisfaction of E-commerce
between 500-900 million by 2017 and this specifically includes some of the South Asian
countries, with Bangladesh as one of the highlights. This outcome echoes previous KPMG
(2012) report on the growth of IT sector in Bangladesh, especially since the year 2010 when its
freelancer community contributed around US $700 million towards exports. This has led to
Bangladesh being visibly consistent in top freelance work locations on sites such as oDesk,
eLance, to name a few.
The usage of mobile internet is a key contributing aspect towards the prevalence of e-commerce
in Bangladesh. Following Table 1, 2 and 3 show the falling bandwidth costs in Bangladesh, cost
of mobile data for major mobile operators in Bangladesh and a mobile data price comparison
with countries with developed e-commerce market. Though the percentage of total Internet
users in Bangladesh has been deemed to be low compared to some other countries (Khan,
Hossain, Hasan, & Clement, 2012), the online population is rising due to falling cost of Internet
bandwidth. In early 2015, BTCL–the governing body of Tele-communication in Bangladesh,
decided to cut down bandwidth prices by further 33% in next year. Complementing that,
Bangladesh has approximately 36.50 million internet users (M. Z. Islam, 2014) along with a
high mobile penetration due to low costs and low calling charges.
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Customer satisfaction of E-commerce
Chapter3
Company Overview
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Customer satisfaction of E-commerce
Daraz Bangladesh Ltd started its journey on September 2013 as an online shopping media. It
started a new era in e-commerce industry in Bangladesh. Daraz is one of the ventures of its
mother company Rocket Internet. Rocket Internet has ventures in more than 50 countries with
the slogan “We build companies”. Rocket Internet is operated from its headquarter in Berlin.
Rocket Internet has more ventures in Bangladesh and they are
• Kaymu – Online Shop
• Food Panda – Online Food Store
• Carmudi – Online Car Store
• Lamudi – Online Real State
• Jovago – Online Hotel Booking
• Everjobs - Online Job Site
Daraz Online Shopping is a market place where buyers and sellers meet. Daraz provides larger
selection of products to its customers. From Fashion to General Merchandising everything is
available on Daraz Website. Customers can visit their website [Link] and choose
their preferable products without any hassle and products will be delivered within a few days.
Daraz has sorted out their products under 2 main categories Fashion & GM (General
Merchandising). Customers can find desirable products under the following categories
1. Men’s Fashion
2. Women’s Fashion
3. Mobiles & Tablets
4. TV, Audio & Gaming
5. Appliances
6. Computing
7. Beauty & Health
8. Home & Living
9. Sports & Fitness
Daraz constantly keep modifying their categories and product lines to meet customer demands.
Daraz offers cash on delivery system to the customers. Moreover, customers can use their cards
to pay while riders will be delivering products. Riders will have card swiping machine with them
if customers want to pay by card. For some issue Daraz doesn’t offer purchasing online. For this
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Customer satisfaction of E-commerce
reason Daraz is missing some orders. Daraz also offers 7 days return policy. Under some
conditions customers can return product and get back money.
In the month of July 2016 Daraz and Kaymu have merged to strengthen their position in the
growing Bangladeshi market. To capture more market shares this 2 companies are working
together. Now they are called Daraz Group. This merger also has happened in Pakistan and
Myanmar.
Co-CEO of Daraz Group Bjarke Mikkelsen, said, “Daraz and Kaymu have both built successful
operations in their respective markets. The merger is now the next step to offer our sellers the
best possible solutions to grow their online business, and to start capitalising on the synergies
between the platforms.”
* Source: ([Link]
1246825)
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Customer satisfaction of E-commerce
Departments of Daraz
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Product
Daraz doesn’t produce any product. Daraz is an online market place where different sellers can
put their products on Daraz website. Sellers need to register to put their products. These sellers
are called vendors. Daraz and Vendors come to mutual understanding about the commission. In
Daraz there are about 200 vendors who sell different products like fashion items, mobiles,
appliances. Customers can visit Daraz website and choose the products.
There are several product categories available in Daraz website like Men’s & Women’s Fashion,
Mobiles & Tablets, Appliances, Health & Beauty etc. There are about 52000 products available
on Daraz website.
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Customer satisfaction of E-commerce
Price
Daraz sets competitive price based on customer’s expectation. But due to the unstable and less
monitored market most of the companies set price to sustain and increase their sells. Actually
this comes up as bad practice. Companies with low investment will not be able to survive in this
market. So price variation is noticeable in current market.
Price basically set by the vendors. Daraz acquire commission selling the products. During any
campaign product’s price get changed. Customers have complain that Daraz offer more price
than the offline store. It’s just because of Daraz needs to add commission with the price.
Place
Daraz is an online market place so it doesn’t have any physical store. Daraz sells products via its
website [Link]. Vendors upload their products on the website and buyers buy from
the website. Daraz has introduced Bangla website few months back. Hence, Daraz have mobile
app also which customers can install in their mobile phone and can shop at any time.
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Customer satisfaction of E-commerce
Promotion
Daraz mainly focused on online marketing rather than offline marketing. Facebook, Google
Adwords these are the main promotional place of Daraz. It has set of target group to push
promotional activities. Moreover, Daraz also has done activation projects in several universities.
Figure 6 Newsletter
• Daraz is also affiliated with Mushfiqur Rahim ( Captain Bangladesh Cricket Team )
• Daraz uses push notification to users email address to acknowledge them of any
campaign or sells
• Sends SMS to users mobile about the promotional offer
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Customer satisfaction of E-commerce
Daraz has brought new era on e-commerce sector in Bangladesh. It has brought “Black Friday”
concept in Bangladesh as “FataFati Friday”. Last year it was a great success. On this campaign
Daraz offers biggest discount with great deals. Daraz has succeeded to set a new shopping trend.
Another successful campaign of Daraz is Mobile Week. On this campaign Daraz brings out great
deals of mobile phone.
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Customer satisfaction of E-commerce
Chapter4
Job Description
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Working Hours
Sunday to Thursday: 9.30 am – 6.30 pm
Friday and Saturday off
Remuneration:
The company paid a BDT 10,000 monthly during the Internship period. After finishing
internship period salary increased.
Work Station:
Daraz HQ, Daraz Bangladesh Ltd, Green Grandeur, 8th Floor, 58/e, Kamal Attaturk Avenue,
Banani, Dhaka-1213.
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Job Responsibilities
Job responsibilities are mentioned below:
• Creating campaign planning
• Following up previous campaign
• Data analysis
• Monitoring website performance
• Collaborating with visualizes
• Collaborating with different departments
• Preparing USPs
• Preparing shop report
• Preparing search report
• Refreshing websites on weekly based
• Creating different pages based on campaign type
• Product boosting
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Data analysis
I need to analyze several data to measure campaign performance, website performance. There is
some criteria of measuring performance like Total Purchase Rate, Traffic on Website, Exit Rate,
Bounce Rate etc. For this analysis need to use several tools like Google Analytics, Dynamic
Yield, Qlickview etc.
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Moreover, I need to check the links after entering office and before leaving the office. I need to
ensure all the links and pages are working perfectly. In addition, Daraz App also need to keep
under monitoring because good number of conversion comes from mobile app also.
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Preparing USP
USP is so important thing to bring in the customers and make the customers click on the Landing
Page. We develop USP based on campaign type, product type or based on the occasion. Category
Manager, Marketing Team and We (Onsite Department) associate to develop the USP. Since
Daraz has both English & Bangla website. We need to prepare USP with 2 languages. I do the
Bangla USP for the Bangla USP.
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I need to create different pages using based on campaign types. Page type, design depends on the
campaign and product types. For this page creation we use several tools. Moreover need to use
HTML, CSS, Javascript. We try to create page what will be easier to access for the customers.
Even we create pages link keeping the easier way of access for the customers.
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Customer satisfaction of E-commerce
Product boosting
In terms of good deals, products demand we boost the products. It means dragging the specific
products top of the page so when customers will visit those products will be shown at top. We
need to keep doing this on regular basis. On the website refreshing day we delete all the previous
boosting of the previous week and do new boosting rating. On this process we do boosting
around 6000 products per weeks. There is 2 ways of product boosting. One is automatic way
using CSV file and another one is manual.
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Chapter5
Research Objective and Methodology
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Research Objective
Initial objective of this paper is to find out service quality of e-commerce companies in
Bangladesh. Finding out from facebook pages of several companies its quite clear that customers
are not happy with the service quality of the online shops or e-commerce companies.
On this paper I have tried to find the issues behind this problem and how to sort out these things.
There were some limitations as I don’t have all the data access of the companies. So from
customers opinions, surveys I tried to merge all the things.
For this research I had to work on market behavior, market competitors, market growth etc.
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Methodology
Google form has been used to do survey and interpret the data. Survey questioner was prepared
based on the variables of service expectation of online shopping.
Limitations
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Chapter6
Findings, Interpretation & Recommendations
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Analyzing the survey data and secondary data I have tried to relate them with my research
objectives. Moreover I tried to find out customers expectation and perception of online shopping
service.
On the survey I picked random 30 people. They put their opinions on the survey questioners.
They have measured the service quality of online shopping in Bangladesh. Findings and
Interpretation is given below:
Age Group
On the survey most of the age group was from 20-25. This age group is the highest number of
internet users. They have several choice of online shopping. But generally their main priority is
product quality.
This age group is a huge potential market for e-commerce. So companies need to focus on them
and provide good quality of service.
Product quality is burning issue for online shopping. In order to gain customers trust companies
need to ensure good quality of products. Moreover, 30% marked on time delivery factor as their
main priority of online shopping. So not only good quality products but also companies need to
provide on time delivery service as promise.
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Hence 23.3% people think it’s easy to shop online and 10% think they can see large collection of
products from online store and choose preferable products.
Payment method
Most of the people think that they should use cash on delivery for the payment. This is the easier
way. Moreover, they might not feel secured to pay online. 80.2% people noted for cash on
delivery
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Service recovery
Due to any service failure like poor product quality, failure etc companies need to offer several
service recovery options to the customers.
75% people want product exchange policy for service recovery. This might happen when there is
any kind of damage of the product or poor quality or product get damaged while using before the
due date of warranty. On this term companies need to be act smartly to regain customers trust.
They need to provide 100% effort to ensure service recovery. Moreover, 25% customers want
money back policy as service recovery.
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Pricing
Online shopping companies offer mostly more price than offline store. So customers have a bad
impression of this. Sometimes it way more higher than the offline store. Moreover, there is huge
price variation in the e-commerce companies like if a Smartphone is priced 17000tk in a website
that exact device might cost 20000tk in another website. This basically happens due to the
seller’s choice and commission amount. But this practice needs to be stopped. Companies and
sellers need to come to a mutual understanding to offer better pricing for the customers.
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Figure 22 Survey Result: Pricing
Customer satisfaction of E-commerce
Security
Most of the people don’t feel secured shopping online. This is the reason why most of the
customers prefer cash on delivery system. Online payment would bring most sells and
customers. In fact it can bring more customers from abroad. 73.3% customers don’t have trust in
shopping online.
Shopping options
There are several big players in the market. Among them 41.4% picked Daraz for their online
shopping. Kaymu had 31%, Ajkerdeal and Pickaboo got 13.8% preference of online shopping..
All this companies need to make sure good service quality to the customers.
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Efficiency
E-commerce companies need to be efficient on their resources. In order to providing good
quality services they need to be efficient. They need to have skilled manpower, efficient delivery
system.
Fulfillment
Companies need to make sure they can fulfill the demand of the customers. Hey need to provide
good quality products in due time and ensure after sales service as well.
Reliability
Companies need to make sure they offer proper after sales service to the customer. They need to
follow up.
Privacy
Privacy of the customer’s needs to be ensured. Mostly when it comes about paying online then
it’s must to secure the information of customers.
Responsiveness
Companies need to make sure that customers can reach them at any time. Customers might face
any service error so companies should assign people to provide proper service recovery.
Compensation
If customers face any service error then companies need to offer options for service recovery to
the customers. This will develop trust to the company. For any product damage company should
offer money back or product exchange.
Contact
Companies need to assign people with whom customers can contact. Customers should contact
the responsible person easily without facing any difficulties.
Adaptability
Companies need to learn from the mistakes. They need to response quickly for any service
damage.
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Customer satisfaction of E-commerce
Response quickly
Response should come as fast as possible. As soon as customer notify the service error company
should act fast.
Be reliable
Customer need to understand the company is sorry for the loss and doing everything to ensure
the service recovery.
Follow up
After delivering product or proving compensation, need to follow up.
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Chapter7
Conclusion
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Customer satisfaction of E-commerce
Since I am from e-commerce and marketing major I always wanted to work in an e-commerce
company where I can use my little knowledge of marketing and e-commerce. Luckily I got
selected for working with Daraz Bangladesh Ltd which is well known for spreading e-commerce.
Moreover, it’s a venture of Rocket Internet which develops new business ideas. There are so
many talented people working around me. Every day I am learning new thing how to make
decision, how to work in a team, how to recover any mistake, how to bring best out of one. After
finishing my internship period they offered me job and I accepted that and I want to bring
successful career out of this opportunity.
In this paper I tried to merge my knowledge, people’s opinions, scholarly articles, what I learned
from my university. Actually think e-commerce or online shopping whatever business it is it
should be more service oriented. Companies need to make sure they provide the best service to
the customer. Customers have several demands companies need to anticipate the demand. In e-
commerce there is huge opportunity in Bangladesh. Just need to work properly and ensure
customers satisfaction. That what takes to make e-commerce revolution in Bangladesh.
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References
• Chiang, K. &. (2003). Factors Driving Consumer Intention to Shop Online: An Empirical
Investigation. Journal of Consumer Psychology , 177-183.
• [Link]
• [Link]
• Abbasi, M. S., Chandio, F. H., Soomro, A. F., & Shah, F. (2011). Social influence,
voluntariness, experience and the internet acceptance: An extension of technology
acceptance model within a south-Asian country context. Journal of Enterprise
Information Management, 24(1), 30-52. [Link]
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Appendix
Survey Form
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Survey Result
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