Research Proposal
“Examining Consumer Trust Barriers in Online Shopping:
The Daraz Perspective”
Course Name: Business Research Methods
Course Code: MG-312
Course Instructor: Dr. Farhan Ahmed
Department: Management Sciences
Batch: 2021 Section: B
Members:
Insharah Sohail (MG-050)
Manaal Mehtab (MG-051)
Fareeha Arif (MG-061)
Title: “Examining Consumer Trust Barriers in Online
Shopping: The Daraz Perspective”
Background Of Study:
In recent years, e-commerce has transformed retail, allowing consumers to shop online from the
comfort of their home or office. As a result, online shopping platforms have become an integral
part of the modern consumer experience. Pakistan also has a developed e-commerce industry,
with an industry value estimated at $1 million and continuing to grow. There are various online
shopping websites in Pakistan such as [Link], [Link], [Link], [Link], etc.,
where people can easily buy retail products online. Daraz is one of the largest and most influential
e-commerce marketplaces in Pakistan that caters to the diverse needs of consumers across
multiple regions. It is ranked 1,917th in the world. This website and app of [Link] has a wide
range of brands. Despite the convenience and accessibility that online shopping offers, consumer
trust is an ongoing challenge for the industry.
Customers' trust in the online shopping environment is crucial because it affects their decisions
about what to buy, how often they make transactions, and how successful e-commerce platforms
are as a whole. Trust barriers can discourage potential customers from engaging in online shopping
activities, affecting not only the individual's shopping experience but also the growth and
sustainability of e-commerce businesses such as Daraz.
While consumer trust in e-commerce has been the subject of many studies, there is a growing
body of research that focuses specifically on Daraz and the particular challenges it presents. This
study intends to fill that void by conducting a thorough examination of consumer trust issues and
barriers encountered on the Daraz platform. Understanding these barriers allows for the
development of strategies and interventions to increase consumer trust, thereby improving the
online shopping experience and fostering the growth of e-commerce in the region.
The Problem Statement:
- Purpose of the study:
To evaluate and comprehensively analyze the trust issues and barriers consumers encounter while
engaging in online shopping activities on the Daraz platform. The primary objective is to obtain a
thorough grasp of the elements that hinder consumer confidence and trust in the online
purchasing experience. More precisely to:
● Determine the underlying reason for consumer hesitancy and skepticism in
the online shopping context.
● Identify issues such as information security, product quality, payment
reliability, return policy, and customer support that concern consumers
shopping on Daraz.
● Explore the potential impact of these barriers.
Ultimately, the findings of this study will be used to propose strategies and
recommendations for Daraz, as well as other online retailers, to improve trust and
enhance the trustworthiness of their platforms.
- Research Questions:
● What are the primary trust barriers and concerns that consumers in
Pakistan encounter while shopping on the Daraz platform, and how do these
barriers alter depending on various demographic factors?
● How do these trust barriers impact the consumer behavior on Daraz,
including purchase decisions, frequency of shopping, and customer loyalty,
and what potential consequences will Daraz’s business performance face?
● What strategies and suggestions can be proposed to enhance the
trustworthiness of the Daraz platform, addressing the identified trust
barriers and improving consumer confidence in online shopping?
Scope Of The Study:
The scope of the study is centered on exploring consumer trust barriers in the context of
online shopping on the Daraz platform within the geographic confines of Pakistan. With
an emphasis on the perception of consumers, information will be collected through a
variety of approaches, such as surveys, interviews, and the examination of online reviews.
Although the study aims to address trust barriers and their consequences, it is imperative
to recognize the constraints, including data accessibility and the possibility of response
bias. Moreover, this study is bound to Daraz and does not encompass an analysis of any
other eCommerce platform. The project will conclude with suggestions, but the actual
implementation and evaluation of their effectiveness fall beyond the scope of this
research.
Relevance Of The Study:
Pakistan is a growing market for e-commerce stores as it is growing at a CAGR of 6.23%
and sales could reach $6.4 billion in 2023. Daraz is Pakistan's leading online company that
allows sellers to list their products and gives customers the opportunity to browse,
compare prices, and buy online. Daraz offers various payment options such as cash on
delivery, mobile banking, credit/debit card payments, and digital wallets, making it
convenient for customers with different preferences.
As Daraz offers a variety of products and services to its customers, there are still many
issues faced by consumers, such as consumer trust, privacy, and the unavailability of
secure payment processes. The main driving force behind the success of an online
business like Daraz is trust. Because consumers make purchasing decisions based solely
on product information. However, consumers still face problems as sellers mislead
customers by providing incorrect product specifications or offering substandard products.
Incomplete and inaccurate customer reviews make people question their product
purchases. For the above reasons, trust remains the biggest issue for Pakistani consumers
when shopping online.
Also, people still prefer the cash on delivery (cash on delivery) option as the most reliable way to
pay for products as there is no proper infrastructure for secure online payments on Daraz. Apart
from these two problems, customers are very hesitant to shop online because they fear that their
personal information will be exposed by hackers. The main objective of this study is to take into
account the number of variables that affect consumer trust barriers, such as worries about
security, privacy, and the quality of products as well as the dependability of delivery and the
reputation of sellers. Additionally, it will look at how outside variables like consumer feedback,
market rivalry, and the function of customer service in reducing trust issues affect the situation.
The Research Design:
- Type of Study: This research is designed as a descriptive study, to thoroughly
examine the trust concerns and barriers faced by consumers when shopping on the
Daraz platform. The study aims to provide a detailed account of the specific
concerns, perceptions, and challenges related to consumer trust.
- Data Collection Methods:
● Self-Administered Questionnaires: In the first phase of data collection, a
quantitative approach will be implemented, using self-administered
questionnaires to gather structured data on trust-related variables,
consumer behaviors, and demographic information. This phase primarily
focuses on understanding the trust barriers and issues related to online
shopping on the platform.
● In-Person Interviews: In the second phase of data collection, a qualitative
approach will be employed through face-to-face interviews with consumers
at a shopping mall. These interviews aim to explore the factors influencing
an individual’s decision to opt for physical shopping in malls over using the
Daraz platform. The qualitative data gathered will provide in-depth insights
into the motivations and concerns that affect consumer behavior.
● Online Consumer Reviews: In addition, to improve our comprehension of
trust issues, we will compile data from online customer reviews of the Daraz
platform. In the first phase, these reviews will be used to gather information
about the trust barriers that online shoppers encounter.
- The Sampling Design: The Sampling design for this study employs a
mixed-methods approach. The first phase of data collection involves the
distribution of self-administered questionnaires to online shoppers who have used
Daraz. The initial sample for this phase includes university students, families, and a
wider social network. This sample will encompass diverse demographics and
shopping experiences contributing to a more nuanced analysis. In the second
phase, data will be collected through face-to-face interviews with consumers in
shopping malls across Karachi, and a purposive sampling approach will be utilized.
This method aims to capture a broad range of perspectives and motivations.
Supplementary data will be drawn from online consumer reviews of the Daraz
platform to further enrich our analysis of trust-related issues. The combined use of
these sampling methods will provide a holistic view of consumer trust barriers and
the factors influencing shopping choices, fostering a deeper understanding of the
research topic.
- Data Analysis: Descriptive statistics will be used for the quantitative component to
compile information from self-administered surveys, providing a preliminary
picture of trust levels, demographic characteristics, and other variables. The study
will employ inferential statistical methods, including regression analysis and
correlation, to investigate the connections among trust characteristics, customer
behavior, and demographic data. The qualitative component of the study will
involve the transcription and thematic analysis of data obtained from in-person
interviews to find recurrent themes and insights on trust obstacles and shopping
behavior. Online consumer reviews will also undergo content analysis to reveal
common themes and sentiments. To provide a holistic view, the findings from
quantitative and qualitative analyses will be integrated and compared, allowing for
a more comprehensive narrative that sheds light on the intricate dynamics of
consumer trust and shopping choices within the Daraz platform. Throughout the
analysis process, data confidentiality and rigor will be maintained, and data analysis
software tools may be utilized to enhance efficiency and consistency.
Time Frame:
We aim to examine trust concerns and obstacles that clients face when they shop online
for goods and services at the Daraz platform over a time frame of about three months in
this research proposal. The timeline/sequence is laid out as follows:
BREAKDOWN
November December January
No of
Start End 3- 9-2 30 4- 8- 12- 14-
Task name Days/Week 7-27 28-3 17 18 19
date date 8 9 -6 7 11 13 16
s
03.11.2 08.11.2
6 Days
Research Proposal 023 023
09.11.2 29.11.2
3 Weeks
Literature Review 023 023
30.11.2 06.12.2
1 Week
Questionnaire Development 023 023
07.12.2 27.12.2
3 Weeks
Data Collection (Quantitative) 023 023
28.12.2 03.01.2
1 Week
Data Collection (Qualitative) 023 024
Data Collection (Online 04.01.2 07.01.2
4 Days
Reviews) 024 024
08.01.2 11.01.2
4 Days
Data Analysis 024 024
12.01.2 13.01.2
2 Days
Integration of Findings 023 024
14.01.2 16.01.2
3 Days
Report Writing 024 024
17.01.2 17.01.2
1 Day
Review and Feedback 024 024
18.01.2 18.01.2
1 Day
Revisions and Finalization 024 024
Presentation Preparation (if 10.01.2 18.01.2
10 Days
required) 024 024
19.01.2 19.01.2
1 Day
Submission 024 024
Budget:
The budget allocated for this project covers all the expenses necessary to ensure its
successful completion. The estimated budget includes the following items:
Items: Description: Estimated Cost
Tools and materials essential for gathering and PKR. 4,000
analyzing data
Travel Cost For data collection, discussions, PKR. 3,000
and surveys
Tools for Data Collection and software and equipment PKR. 10,000
Analysis required for conducting
research.
Publication and Dissemination PKR. 40,000
Cost
Total Estimated Cost: PKR. 58,000
The budget has been carefully designed to match the goals and approaches of the
research guaranteeing the effective and efficient conduct of the study, leading to valuable
insights into customer trust barriers in online shopping from Daraz Platform.
Selected Bibliography:
- Khan, Shahzad, et al. “Consumer Buying Behavior Towards Online Shopping: A
Case Study of [Link].” Journal of Business and Tourism, vol. Volume 05, no.
Number 02, Dec. 2019, p. 9.
- Javed, Asif . “Prospects and Problems for E-Commerce in Pakistan.” Asian Journal
of Economics, Finance and Management, 9 Dec. 2020, p. 9. Article [Link].266.
- Shehzad, Rohail, et al. “Web Usability and User Trust on E-Commerce Websites in
Pakistan.” International Journal of Advanced Computer Science and Applications, vol. 8,
no.12,2017,[Link]/5233/ddbbc7643c5fb03636dd56ab43a383
[Link], [Link] Accessed 3 July 2020.
