CHAPTER-I

INTRODUCTION
1.1 Context information
Online shopping is a form of electronic commerce that enables consumers to directly
purchase goods or services from sellers over the Internet using a web browser or mobile app.
Consumers typically find a product of interest by visiting the website of the retailer or by
using a shopping search engine, which compares availability and pricing across different e-
retailers (Sterne, 2021). As of 2022, customers can shop online using a variety of devices,
including desktop computers, laptops, tablets, and smartphones, offering greater flexibility in
the shopping experience (Smith, 2020).

Online buying and selling have become integral to many people’s lives. Virtual stores
provide the convenience of shopping from home, free from the pressure of interacting with
salespeople. Online marketplaces have emerged as a more convenient way to exchange goods
and services, creating a rapidly growing segment within the digital world. With the rise of
online shopping, many businesses now operate digital storefronts, reflecting the shift toward
e-commerce in today's fast-paced world. Physical stores are no longer sufficient on their
own, as consumer-facing online store interfaces have become essential for business
operations. The online shopping journey typically begins with a consumer’s need or desire
for a product or service, whether that’s clothing, electronics, groceries, or more. The internet
offers numerous options to satisfy shoppers' needs, often starting with a search engine query
or by visiting a preferred online marketplace.

As shoppers browse through the virtual aisles of online stores, they encounter numerous
choices, each competing for their attention. Every step of the online shopping experience,
from the initial search to the final checkout, is influenced by factors like convenience, price,
product variety, and retailer trustworthiness. Understanding the consumer psyche has thus
become crucial for businesses in optimizing the shopping experience. The growth of online
shopping shows no signs of slowing down, with an increasing number of consumers
embracing the accessibility and convenience that e-commerce platforms provide. Recent
studies show that global e-commerce sales are expected to reach trillions of dollars in the

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coming years, driven by factors such as wider smartphone penetration and changing
consumer preferences.

To stay ahead, businesses are adopting new technologies and strategies to meet the evolving
needs of their target audience. Innovations like augmented reality (AR) shopping experiences
and voice-activated assistants are helping create immersive and seamless shopping
experiences. The future of online shopping is focused on providing consumers with cutting-
edge technologies to enhance convenience and ensure an optimal shopping experience for
both current and future consumers.

Online shopping has become a modern method of purchasing products and services via the
internet, allowing consumers to browse and buy items across a wide range of categories,
including electronics, clothing, and groceries, without visiting physical stores. This
convenient shopping method has gained widespread popularity due to its accessibility, time-
saving nature, and the ability to shop from anywhere at any time. With the growth of e-
commerce platforms like Amazon, eBay, and various niche websites, online shopping has
become an essential part of modern consumer culture. Advances in technology, such as
mobile apps, secure payment methods, and fast delivery services, have further enhanced the
online shopping experience. Additionally, features like personalized recommendations,
customer reviews, and easy comparison tools have made it easier for shoppers to make
informed decisions (Schneider, 2021).

The widespread adoption of smartphones and the development of mobile apps have further
accelerated online shopping, transforming it into a portable and on-demand experience.
Innovations like secure online payment methods, digital wallets, and advancements in
shipping logistics have made the process more efficient and reliable. Technologies like
artificial intelligence (AI) and machine learning also play a role in personalizing shopping
experiences, offering product recommendations based on past purchases, and even providing
virtual try-ons for clothing and accessories.

Beyond convenience and variety, online shopping has introduced new features like customer
reviews, product ratings, and detailed descriptions, which help buyers make more informed
decisions. The ease of tracking orders, flexible return policies, and an increasing focus on
sustainability, with many retailers adopting eco-friendly packaging and practices, further
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enhance the appeal of online shopping. However, this shift has also led to challenges.
Traditional brick-and-mortar stores have had to adapt, often integrating e-commerce
strategies and creating omnichannel shopping experiences that combine both online and
offline elements.

Online shopping has become a cornerstone of the modern retail landscape, offering
unmatched convenience, variety, and flexibility. It has transformed how consumers shop,
making it easier to access products from around the world and empowering businesses to
reach global audiences. While challenges such as data security, privacy concerns, and
sustainability remain, the continued evolution of technology promises even more
personalized, efficient, and environmentally-friendly shopping experiences. As consumer
preferences evolve, online shopping will likely continue to thrive, shaping the future of
commerce in ways we are only beginning to imagine.

1.2 Purpose of Study

 This study investigates factors influencing consumer behavior and challenges faced
during online shopping, such as usability and security issues.
 It helps businesses understand consumer preferences, enhance customer loyalty, and
improve the online shopping experience with personalized features.
 This research explores online shopping's impact on global commerce, employment, and
the supply chain, highlighting technological innovations and environmental concerns.
 It examines the societal effects of impulsive buying, cultural differences, and the need
for policies on consumer rights, taxation, and sustainability.
 Online shopping's growth is driven by easier product discovery and increased internet
access, with rising e-commerce users, particularly in South Africa.
 Understanding online shopping behavior is crucial for businesses, consumers, and
policymakers to adapt to the evolving digital marketplace and develop effective
regulations.

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1.3 Significance of Study

This study is conducted to provide information about the customer satisfaction on online
shopping. The researchers believed that conducting this study will be beneficial to the
following:

 The Management – this study will help provide a definitive and useful information to the
management who serve as the provider of the consumer needs and wants. With this study,
the management will be able to address the following requests and able to come up with
new ideas in developing strategies for better customers attraction.
 The Customers – this be the respondents of this study will help the management – online
shops and businesses and to improve quality service, product and price as they will be
getting firsthand feedback from the customers. Thus, this study will greatly benefit the
customers as they will be heard and given solutions to their respective inquires
 The Researches – the discovery of this study will help the researches evaluate the current
business situation in regards with this specific topic and will enable students help the
management take corrective actions.
 The future Researchers – the findings of this study will provide useful information and
ideas to the other researchers or online business shops relevant to the customer
satisfaction. Furthermore, this study will encourage other aspiring researchers to conduct
study with wider scopes that are just yet to be discovered.

1.4 Limitations of Study

It is difficult for the

online seller to identify

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the customers wants
and needs,
since potential
customers are large in
number. It is
important to identify
the factors
that influence the
customers to prefer
online shopping.
Therefore, the study is
undertaken by the
researc 1.3 Significant of Stud1.4 Limitation of study
There are a perceived limitations of this study which are listed below:

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1. The samples taken for the study suffers from the limitation of having geographical
representation only. Thet were not on the basis of any shopping or purchase related
behavior.
2. The study deals with online shoppers who have made actual purchase online. Prospective
online shoppers were not considered as samples.
3. The study also suffers from the limitation that samples are to be chosen via convenience
and snowball sampling.
4. The applicability of this study may not be appropriate in other parts of the world.

1.5 Literature Review

Vellido, Lisboa and Meehan (2000) summarized quite a few factors relating to consumers’
perception of online shopping. The factors of risk perception of users, convenience of online
shopping, control over, affordability of goods, ease of use of the shopping site, and customer
service were included.

Aluko (2003) analyzed multidimensional impact of culture on organizational performance.

The study found a significant positive relationship between organizational culture and
employee performance. The study also found that the selected firms were not performing
well because of some peculiar problems. This includes the problem of inadequacy of
technology and social infrastructure most especially electricity and the incessant fuel crisis.

Shergill et al. (2005) focused on factors which online buyers keep in mind while shopping
online and also investigates how different types of online buyers perceive websites
differently. The study found that website design, website reliability/fulfillment, website
customer service and website security/privacy are the four dominant factors which influence
consumer satisfaction towards online purchasing.

Kim et al. (2007) investigated on a perceptual mapping of online travel agencies and
preference attributes. The study revealed that each online agency had some different patterns
based on travelers’ perceptions in terms of web features, user friendliness and security, and
finding low fares. The results also found that perceived ease of use has an influential impact
on a person’s online shopping channel preference and satisfaction.

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According to Osman et al. (2010), found there is a significant difference in attitude towards
online purchasing behavior by gender and education background. The study concluded that
gender, education background, purchase perception and website quality have directly
influence on attitude towards online purchasing behavior.

Jahanshahiet al. (2011) analyzed the effects of customer service and product quality on
customer satisfaction and loyalty. The study found positive correlation between the customer
service and product quality with customer satisfaction and loyalty. A study on consumer
attitudes towards online shopping in Jordan found that higher levels of perceived web quality
led to higher levels of trust in an online shopping web site (Al-Debei, 2015).

Sultan and Uddin (2011) examined a study on consumer’s attitude towards online shopping.
The population selected for the research is Gotland, and narrowed down to 6 Gotland
University students, university cafeteria and Gotland Public library. The sample size selected
for this research was 100. Convenience sampling technique has been used. Website
Design/Features, Convenience and Time saving are the factors indicated in the study along
with pricing, discount, feedback from previous customers and quality of product. The study
revealed that elderly people were not so keen to shop online, higher education made online
shopping less attractive, and security concerns were very important while shopping online.

Mittal (2013) has conducted a paper on E-commerce, its impact on consumer behavior.
Quantitative data describing the actuality of internet shopping in the case of India has been
obtained in order to explain the development of internet shopping and its impact on consumer
behavior. The paper build on the relevant literature and at the same time examined consumer
behavior by questionnaires. The paper supported the research questions including recent
trends and various issues in internet shopping, and principal factors for consumer behavior.
The result of the study showed that internet consumer trust and perceived risk have strong
impacts on their purchasing decisions.

According to Nikhashemi et al. (2013), ease of use, security, payment processing and
customer perceived quality have significant positive effect on enhancing customer
satisfaction toward internet shopping.

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Shahzad (2015) has conducted research on online shopping behavior. The empirical data was
collected through a questionnaire survey and it was distributed among 100 respondents by
hand and online. The focus of this study was on the online factors such as financial risk,
product performance risk, delivery risk, trust & security, and website design. The study found
out that the product performance risk, and trust & security had a significant impact to
consumer’s online shopping behavior while financial risk and delivery risk had no significant
impact on consumer’s online shopping behavior.

In the context of Nepal, Tamrakar (2016) revealed that convenience, web design, time saving
and security have positive and significant impact on the customers’ satisfaction towards
online shopping in Kathmandu valley. Many companies have been using ecommerce a
decade ago, but the challenges are still the same. The actual sales have not been able to start
due to lack of knowledge, awareness and online payment systems. Selling globally and inside
the country is the same in years. Payment gateways are being developed but they have their
limitation due to legal and security issues.

Chawla, Khan and Pandey (2016) have prepared an article on online buying behavior. The
researchers mainly focused on the quantitative analysis of constructing model based on
survey, limiting only to intention and adoption stages. The study explored demographics
influence on the buying intentions and adoption stages; there was no systematic interpretation
about how the first-time buyer was likely to continue with buying online or would like to
intensify or pull more of existent products available offline.

According to Dang (2016), showed the customer or people in Mohali region are motivated to
buying online for the purpose of time saving and convenience along with lesser efforts is
required in comparison to store purchase. Whether it is the traditional market or the online
market, the marketer must understand the consumer and how he makes his decisions and
purchasing choices because the consumer is under a constant flow of stimuli from the
marketers and advertisements (Hollensen, 2004).

Koirala, P., & Pandey, S. (2022). E-commerce consumer behavior and satisfaction: Trends
and challenges in Nepal (Post-pandemic) examines the transformative impact of the COVID-
19pandemic on e-commerce consumer behavior and satisfaction in Nepal, with a particular
focus on the post-pandemic era. The authors report a marked increase in online shopping,
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driven primarily by the necessity of social distancing measures and lockdowns during the
pandemic. This surge in online shopping was especially prominent among younger
consumers, who adopted e-commerce as a more convenient alternative to traditional retail
shopping.

Acharya, S., & Shrestha, M. (2023). Emotional drivers of customer satisfaction in online
shopping in Nepal, delves into the emotional drivers of customer satisfaction in the Nepali
online shopping market. As e-commerce continues to grow in Nepal, understanding the
emotional factors that influence consumer behavior is essential for businesses looking to
enhance customer satisfaction and foster long-term loyalty. The authors examine how
emotional appeal, website aesthetics, personalization, and other emotional triggers contribute
to a positive shopping experience for Nepali consumers. However, the study also stresses that
functional factors like delivery speed and product inspection cannot be overlooked. E-
commerce platforms must balance both emotional and functional aspects to ensure
comprehensive customer satisfaction.

1.6 Research method used for Data collection and analysis

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 conclusion 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. These questions are easy to
understand and use.

1.6.1 Population of Data

A total of 50 individuals attended this survey. Among them, 26 were male which is 52% of
total population and 24 were female which is 48% of all respondents. Basically, the young
students were given priority in this research because their exposure to the internet is higher
than others. According to age-group, 38 were from the youngest group- 18-24 years, the
majority 10 belonged to 25-34 age group and only 2 were 32-44 age group.

1.6.2 Sources of Data

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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 soft copy of questionnaire.

1.6.3 Statistical tools

The empirical data was collected through a questionnaire survey and it was distributed
among 50 respondents by online. The questions were structured in some multiple-choice
questions for broader evaluation. Microsoft Word is used to analyze the collected data and
Microsoft Excel is used to create pie charts. These are the programs that are used for the
processing and analyzing the data.

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 CHAPTER II
DATA ANALYSIS AND PRESENTATION
2.1 Organization profile

DarazNepal, a prominent e-commerce platform, operates as one of the most dynamic and
fast-growing players in Nepal’s digital retail landscape. Founded in 2012 and part of the
Alibaba Group since 2018, Daraz Nepal has significantly transformed the shopping
experience for Nepali consumers, bridging the gap between local buyers and sellers by
offering a wide spectrum of products across various categories. These include electronics,
home appliances, fashion, groceries, beauty products, and more. Headquartered in
Kathmandu, Daraz Nepal has expanded its services to cater to not only urban regions but also
remote parts of the country, enabling millions of Nepali consumers to access an extensive
range of goods with ease. The platform’s commitment to convenience, reliability, and
security has solidified its position as the leading e-commerce company in Nepal.

The core objectives of Daraz Nepal revolve around providing an unparalleled shopping
experience while ensuring accessibility, convenience, and customer satisfaction. A primary
goal is to expand online shopping access throughout the country, enabling both urban and
rural consumers to shop seamlessly. Daraz Nepal is dedicated to offering a diverse range of
quality products at competitive prices while ensuring that users benefit from a secure and
user-friendly online platform. In line with its commitment to customer satisfaction, Daraz
aims to provide exceptional after-sales services, including simple returns and responsive
customer support. The platform also strives to empower local businesses by providing a
robust online marketplace for Nepali vendors to reach a broader consumer base, thus
supporting the country's digital economy. Furthermore, Daraz has placed substantial focus on
technological innovation, incorporating advanced systems such as artificial intelligence (AI)
and machine learning to enhance product recommendations, personalize shopping
experiences, and streamline logistics for faster delivery.

Daraz Nepal’s organizational structure is designed to ensure efficient management of its

diverse operations. The company is spearheaded by a Chief Executive Officer (CEO) who
leads the strategic direction of the platform and oversees its key business divisions. The

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Product and Operations Division is responsible for sourcing, managing, and cataloging the
wide array of products offered on the platform. This division ensures product availability and
establishes strong relationships with both local and international suppliers to maintain the
variety and quality of offerings. The Logistics and Supply Chain Division plays a vital role in
ensuring that orders are processed efficiently and delivered in a timely manner. This division
works with both local and international courier services to provide reliable delivery options
across Nepal, ensuring even remote regions are served.

The Technology and IT Division is integral to Daraz Nepal's operations, overseeing the
development, maintenance, and optimization of the platform’s website and mobile
application. This division is responsible for the integration of innovative technologies such as
AI, data analytics, and machine learning to improve user experience, enhance product search
and recommendations, and optimize inventory management. The Marketing and Sales
Division is focused on driving customer acquisition, brand awareness, and promotional
campaigns. It manages digital advertising, social media presence, and special events like
seasonal sales or flash discounts. The Customer Service Division is central to Daraz’s
customer-first approach, handling inquiries, complaints, and managing the return and refund
process to ensure high levels of customer satisfaction.

Another important division is Seller Support and Development, which works to onboard new
sellers and provide continuous support to existing ones. This division ensures that sellers
have the tools, training, and resources necessary to succeed on the platform. Additionally,
Daraz Nepal places a significant emphasis on Human Resources (HR), focusing on recruiting
and retaining talented professionals who align with the company’s values. The HR
department ensures that employees across all levels receive continuous training,
development, and are motivated to contribute to the company’s growth.

In terms of governance, Daraz Nepal benefits from the oversight of Daraz Group (under
Alibaba Group), which provides strategic direction, resources, and operational support.
Daraz’s connection to Alibaba also provides a global network of expertise in technology,
logistics, and e-commerce, enabling Daraz Nepal to maintain a competitive edge in the
rapidly evolving market.

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Daraz Nepal’s business model is built on leveraging its online platform to create a dynamic
marketplace where buyers and sellers can interact directly, fostering a more efficient retail
ecosystem. The company’s logistics infrastructure ensures that products are delivered
efficiently, even to Nepal’s most remote regions. Payment systems are diverse and secure,
with cash-on-delivery and mobile wallet options available to meet the varying preferences of
Nepalese consumers. This flexibility in payment options has contributed to Daraz’s strong
customer trust and growing popularity.

2.2 Data Presentation and Analysis

Data are presented and analyzed as per the information collect through the questionnaire.
This will focus on critically analyzing the results obtained in this research. Below is a
comprehensive presentation of the results obtained from each question after the participants
offered their insights through the questionnaire. There was a total of 50 respondents in the
research.

2.2.1 Age of Respondents

Table2.1
Age of respondents
Age Frequency Percentage (%)
18-24 38 76

25-34 10 20

35-44 2 4

55 above - -

Total 50 100.0
(Sources: Survey 2024)

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Figure 2.1Age of Respondents

Table 2.3 and figure 2.3 provide the age of respondents. Out of 50 respondents, 76% were of
18-24 age groups, 20% of 25-34 age groups, 4% were of 35-44 age groups and there were no
any respondents of 55 above age group.

2.2.2 Gender of Respondents

Table 2.2
Gender of Respondents
Gender Frequency Percentage(%)
Male 26 52

Female 24 48

Total 50 100.0
(Sources: Survey 2024)

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Figure 2.2: Gender of respondents

Table 2.2 and figure 2.2 give the descriptions of gender of respondents. Out of 50
respondents 52% of the total sample were collected from female and 48% of the respondents
were male.

2.2.3 Daraz App used by Respondents

Table 2.3

Daraz used by Respondents

Daraz app Frequency Percentage (%)

Daily 2 4

Weekly 12 24

Monthly 11 22

Rarely 25 50

Total 50 100.0
(Sources: Survey 2024)

Figure 2.3 Daraz App used by Respondents

Interpretation: The distribution of Daraz usage across different time frames: Daily is 2(4%),
Weekly is 12(24%), Monthly is 11(22%) and Rarely is 25(50%).According to Survey, most
of the people used Daraz App rarely compared to other days.
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2.2.4 Easy to navigate Daraz App by the Respondents
Table 2.4
Easy to navigate by the Respondents
Easy to use Frequency Percentage
Very easy 17 34

Easy 15 32

Neutral 16 32

Difficult 1 2

Very Difficult 1 2

Total 50 100.0
(Sources: Survey 2024)

Figure 2.4 Easy to navigate Daraz App by the Respondents

Interpretation: When evaluating the Daraz app's navigation, respondents categorize their
experience using a scale ranging from very easy is 17(34%), easy is 15(30%), neutral is
16(32%), difficult is 1(2%) and very difficult is also 1 (2%).

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2.2.5Speed rate of Daraz App by Respondents
Table 2.5
Speed rate by Respondents
Speed Frequency Percentage (%)
Very Fast 14 28

Fast 14 28

Average 20 40

Slow 2 4

Very Slow - -

Total 50 100.0
(Sources: Survey 2024)

Figure 2.5 Speed rate of Daraz App by Respondents

Interpretation: When asked about speed rate of Daraz app. Most of the participants showed
their response by very fast 14(28%), fast 14(28%), Average 20(40%), slow 2(4%) and very
slow was none among 50 participants.

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2.2.6Ease findings of products by Respondents
Table 2.6
Ease findings of products by Respondents
Finding Products Frequency Percentage (%)
Very Satisfied 13 26.5

Satisfied 28 57.1

Neutral 8 16.3

Dissatisfied - -

Total 50 100.0
(Sources: Survey 2024)

Figure 2.6 Ease finding of products by Respondents

Interpretation: The survey results reveal that the majority of users are satisfied with the
search functionality on the app. Out of 50 participants, 13(26.5%) are very satisfiedand 28
(57.1%) are satisfied indicating that a significant portion of users find the feature effective
and easy to use. Additionally, 8(16.3%) participants are neutral suggesting that while the
search feature works for them, it doesn't stand out as particularly impressive or

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problematic.Notably, there are no respondents who are dissatisfied, which suggests that the
search feature is meeting users' needs for the most part.

2.2.7Technical Issues faced by the respondents

Table 2.7
Technical issues faced by the respondents
Technical Issues Frequency Percentage (%)
Yes 10 20

No 40 80

Total 50 100.0
(Sources: Survey 2024)

Figure 2.7 Technical Issues faced by the respondents

Figure 2.7 Technical Issues faced by the respondents

Interpretation:The survey results show that the majority of respondents (40 out of 50) did not
face any technical issues, indicating that the app is functioning smoothly for most users.
However, 10 participants reported encountering technical issues, which suggests that while
the app is generally reliable, there is a small group of users experiencing problems.

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2.2.8Customer Satisfaction towards variety of products
Table 2.8
Customer satisfaction towards variety of products
Satisfaction Level Frequency Percentage (%)
Very Satisfied 13 26

Satisfied 26 52

Neutral 10 20

Dissatisfied 1 2

Total 50 100.0
(Sources: Survey 2024)

Figure 2.8 Customer Satisfaction towards variety of products

Interpretation: The survey results on the quality of products on the Daraz app show largely
positive feedback. Out of 50 participants, 13 are very satisfied and 26 are satisfiedmeaning
that the majority of users find the product quality to be good or excellent. Additionally, 10
participants are neutral suggesting that while they do not have strong opinions, they do not
find the quality to be particularly outstanding or problematic. Only 1 respondent expressed
being dissatisfied which is a minimal portion and indicates that most users are content with
the products offered on the app.

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2.2.9 Rating the Quality of Products Purchased on Daraz by Respondents
Table 2.9
Rating the quality of products by Respondents
Satisfaction Level Frequency Percentage (%)
Excellent 14 28

Good 21 42

Average 15 30

Poor - -

Very poor - -

Total 50 100.0
(Sources: Survey 2024)

Figure 2.2.9 Rating the Quality of Products Purchased on Daraz

Interpretation: The satisfaction survey shows positive feedback, with 70% of participants
rating the service as Excellent or Good. 30% rated it as Average and no participants rated it
as Poor or Very Poor. Overall, the results indicate a high level of satisfaction.

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2.2.10 Product description and images are accurate
Table 2.10
Products description and images by Respondents
Level Frequency Percentage (%)
Very Accurate 11 22

Accurate 23 46

Neutral 14 28

Inaccurate 1 2

Very Inaccurate 1 2

Total 50 100.0
(Sources: Survey 2024)

Figure 2.9 Product description and images are accurate

Interpretation: The survey results show that most users find the product descriptions and
images on the Daraz app to be accurate. Out of 50 participants, 11 said they are very accurate
and 23 said they are accurate. This means the majority of users are happy with the product
information. 14 participants felt neutral meaning they don't have strong opinions either way.
Only 2 users (1 inaccurate and 1 very inaccurate) were dissatisfied. Overall, the feedback is
mostly positive, with only a few users reporting issues with the accuracy of the descriptions
and images.

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2.2.11Customer satisfaction on payment method
Table 2.11
Customer satisfaction on payment method
Satisfaction Level Frequency Percentage (%)
Very Satisfied 18 36

Satisfied 25 50

Neutral 7 14

Dissatisfied - -
Total 50 100.0
(Sources: Survey 2024)

Figure 2.10 Customer satisfaction on payment method

Interpretation: The survey results show strong customer satisfaction with the app's payment
method. Out of 50 participants, 43 (86%) are either very satisfied or satisfied, with no
respondents reporting dissatisfaction. Seven participants are neutral, indicating no major
issues. Overall, the feedback is very positive, with most users happy with the payment
options.

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2.2.12Customer satisfaction on delivery time of products
Table 2.12
Customer satisfaction on delivery time by respondents
Satisfaction Level Frequency Percentage (%)
Very Satisfied 12 24

Satisfied 25 50

Neutral 12 24

Dissatisfied 1 2

Total 50 100.0
(Sources: Survey 2024)

Figure 2.11 Customer satisfaction on delivery time of products

Interpretation: The survey results on customer satisfaction with the delivery time of products
show generally positive feedback. Out of 50 participants 12 are very satisfied and 25 are
satisfied indicating that most users are pleased with the delivery speed. Additionally, 12
participants are neutral meaning they don't have strong feelings about the delivery time but
they don't find it particularly impressive either. Only 1 participant expressed being
dissatisfied suggesting that delays or issues with delivery are rare.

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2.2.13Experience of Order Delays on Daraz
Table 2.13
Experience of Order Delays by Respondents
Yes/No Frequency Percentage (%)
Yes 26 53.1

No 24 46.9

Total 50 100.0
(Sources: Survey 2024)

Figure2.13 Experience of Order Delays on Daraz

Interpretation: The survey results on the experience of order delays on Daraz show a mixed
response. Out of 50 participants, 26 reported experiencing delays, while 24 did not. This
indicates that just over half of the users have encountered delays with their orders, suggesting
that order fulfillment times could be inconsistent for some customers. While the majority of
users (24 participants) did not experience delays, the fact that a significant portion (26
participants) did suggests there may be room for improvement in delivery efficiency and
consistency.

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2.2.14Likelihood of Recommending the Daraz App
Table 2.14
Likelihood of Recommending by Respondents
Recommend Level Frequency Percentage ( %)
Very Likely 14 28.6

Likely 24 46.9

Neutral 12 24.5

Unlikely - -

Total 50 100.0
(Sources: Survey 2024)
2.2.15Overall Satisfaction with the Daraz App
Table 2.15
Overall Satisfaction of Respondents
Satisfaction Level Frequency Percentage (%)
Very Satisfied 14 28

Satisfied 24 48

Neutral 11 22

Dissatisfied 1 2

Total 50 100.0
(Sources: Survey 2024)

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Figure 2.14Overall Satisfaction with the Daraz App

Interpretation: The survey results on overall satisfaction with the Daraz app show
predominantly positive feedback. Out of 50 participants 14 are very satisfied and 24 are
satisfied meaning the majority of users are happy with their overall experience on the app.
Additionally 11 participants are neutral indicating that while they don't have strong feelings
their experience wasn't particularly remarkable or disappointing. Only 1 participant
expressed being dissatisfied suggesting that major issues with the app are rare. Overall, the
results reflect a strong level of satisfaction with the Daraz app with most users having a
positive experience.

2.2.16Suggested Improvements for the Daraz App

Table 2.15
Suggested Improvements by Respondents
Improvements Frequency Percentage (%)
Better product selection 11 22

Faster delivery times 22 44

Enhanced customer service 7 14

Lower prices 7 14

Better app performance 1 2

Other 2 4

Total 50 100.0
(Sources: Survey 2024)

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Figure 2.16 Suggested Improvements for the Daraz App

Interpretation: The survey results on suggested improvements for the Daraz app highlight
several areas where users feel the app could be enhanced. Out of 50 participants, 22
mentioned that faster delivery times would be an important improvement, indicating that
timely delivery is a key concern for many users. Additionally, 11 participants suggested
better product selection, which suggests that users would like more variety or choices
available on the app. Seven participants each recommended enhanced customer service and
lower prices, showing that these factors are also important to a segment of users. Only 1
participant mentioned better app performance, and 2 others provided different suggestions.
Overall, the most common requests are for faster delivery and a wider range of products,
with some users also emphasizing the importance of better customer service and more
competitive pricing.

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2.3 Major Findings and Discussion

Major Findings

The data are collected from primary. For the only primary a survey was done on field survey
and 50 responses were collected by the researchers whereas secondary data was collected
from multiple websites. The findings of primary data were as follows:

 Majority of the respondents were male i.e, 52% whereas females were 48%.
 Respondents having age group between 18-24 were in high number i.e., 76% which
followed by age group 25-34 i.e., 20%.
 According to the respondents, 4% use the Daraz app daily, 24% use it weekly, 22%
use it monthly, and 50% use it rarely, highlighting a significant opportunity to
increase engagement, especially among the users who rarely interact with the app.
 According to the research, the majority of participants (66%) find the Daraz app easy
to navigate, with 32% expressing a neutral stance and only 3% experiencing
difficulties.
 In this research, 56% of participants rated the speed of the Daraz app positively (very
fast or fast), while 44% rated it average (slow or very slow).
 In this research, a significant 83.6% of participants expressed satisfaction (very
satisfied or satisfied) with the ease of finding products on the Daraz app, while 16.3%
remained neutral.
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  In this research, 80% of participants indicated that they do not experience technical
issues with the Daraz app in comparison to other online shopping platforms, while
20% reported encountering such issues.
 Customer satisfaction with the variety of products on the Daraz app was notably
positive, with a significant majority of participants expressing contentment.
 The majority of participants (68%) found the product descriptions and images on the
Daraz app to be accurate, while 28% were neutral and 4% considered them
inaccurate.
 Customer satisfaction with the payment options on the Daraz app is high, with 86%
of respondents expressing satisfaction and 14% remaining neutral.
 The majority of customers (74%) are satisfied with the delivery time, with only 2%
dissatisfied and 24% remaining neutral, indicating a generally positive perception of
the delivery service.
 According to the respondents, they had a disappointing experience with an order
delay of product and suggest people to visit the stores to inspect and purchase the
products.
 According to the respondents, the overall satisfaction with the Daraz app is largely
positive, with the majority expressing contentment, a smaller portion remaining
indifferent, and a very small percentage expressing dissatisfaction.
 According to the respondents,the most significant areas for improvement are faster
delivery time and better product selection, while there are also concerns about
customer service, pricing, and app performance.

Discussions

The research findings provide valuable insights into customer experiences and satisfaction
with the Daraz app, highlighting both strengths and opportunities for improvement. The user
base is fairly balanced in terms of gender, with a slight male dominance, and the majority of
users are young adults aged 18-24, which is crucial for tailoring marketing, product offerings,
and app features to this demographic. However, while the app's ease of navigation and
product search functionalities are highly rated by most users, there is a significant

31
opportunity to increase engagement, especially among the 50% of users who engage with the
app rarely. Enhancing app speed is another critical area, as nearly half of the respondents
rated the app’s speed as average or slow, which could hinder frequent use and user retention.
Although most users are satisfied with product availability and payment options, there are
clear suggestions for better product selection and faster delivery times, signaling a need for
Daraz to expand its product range and improve logistics to meet customer expectations. The
20% of users experiencing technical issues also emphasize the need for ongoing app
optimization to ensure a smooth and reliable experience for all users. Customer satisfaction is
generally high, but concerns about order delays suggest that Daraz should focus on
improving its delivery process and communication regarding delays to maintain customer
trust and loyalty. Additionally, suggestions for improving customer service, pricing, and app
performance point to areas where Daraz can further enhance its overall service. In
conclusion, while the Daraz app performs well in many aspects, addressing these key
improvement areas—faster delivery, better product selection, enhanced customer service, and
technical optimization—would significantly enhance user satisfaction, engagement, and
retention.

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 CHAPTER-III
CONCLUSION AND ACTION IMLPICATIONS
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 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.

3.2 Action Implications

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:

 Daraz needs to establish a quality assurance department for every product category so
that faulty products can easily be identified.
 Daraz needs to be careful abouts 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.
 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.
 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.
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 Daraz has to be aware of the deceptive sellers. Many sellers are involved in many
fraudulent activity. These sellers must be brought under punishment.
 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.
 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.

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 APPENDIX

Questionnaire

Greetings, Participants,

I am Kanchan Thapa, a Bhairahawa Multiple Campus BBA student. 'A study on Customer
Satisfaction Towards Daraz App' is the topic of my research. I would like to request you to
kindly answer a few questions. In the seventh semester of the summer project research study,
this study is being carried out to satisfy a portion of the requirements for the TU Bachelor of
Business Administration degree. I therefore ask that you complete the form. I guarantee that
your comment will be kept private and used exclusively for scholarly purposes.

1. Age

a. 18-24 b. 25-34 c. 35-44 d. 55 above

2. Gender

a. Male b. Female

3. How frequently do you shop on the Daraz app?

a. Daily b. Weekly c. Monthly d. Rarely

4. How easy is it to navigate through the Daraz app?

a. Very easy b. Easy c. Neutral d. Difficult e. Very difficult

5. How would you rate the speed of the Daraz app?

a. Very fast b. Fast c. Average d. Slow e. Very slow

37
6. How satisfied are you with the search functionality on the app? (E.g., ease of finding
products)

a. Very satisfied b. Satisfied c. Neutral d. Dissatisfied

7. Have you faced any technical issues while using the Daraz app (e.g., crashes, bugs, or
errors)?

a. Yes b. No

8. How satisfied are you with the variety of products available on Daraz?

a. Very satisfied b. Satisfied c. Neutral d. Dissatisfied

9. How would you rate the quality of the products you have purchased through Daraz?

a. Excellent b. Good c. Average d. Poor e. Very poor

10. How accurate are the product descriptions and images compared to the actual product

a. Very accurate b. Accurate c. Neutral d. Inaccurate e.Very inaccurate

11. How satisfied are you with the payment options available on Daraz (e.g., credit/debit
card….)

a. Very satisfied b. Satisfied c. Neutral d. Dissatisfied

12. How satisfied are you with the delivery time of your Daraz orders?

a. Very satisfied b. Satisfied c. Neutral d. Dissatisfied

13. Have you ever experienced delays in receiving your order from Daraz?

a. Yes b. No

14. How likely are you to recommend the Daraz app to others?

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 a. Very likely b. Likely c. Neutral d. Unlikely

15. How satisfied are you with your overall experience on the Daraz app?

a. Very satisfied b. Satisfied c. Neutral d. Dissatisfied

16. What improvements would you like to see in the Daraz app?

a. Better product selection b. Faster delivery times

c. Enhanced customer service d. Lower prices e. Better app performance

f. Other

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