EFFECTS OF ONLINE SHOPPING TRENDS ON CONSUMER-BUYING BEHAVIOR:

AN EMPIRICAL STUDY

Abstract

This research paper examines the relationship between various factors that affect the consumer
behavior towards online shopping. Online shopping refers to the recent trends of being able to
buy everything from home. The focus of this research is to explain the influence of five major
variables that were derived from literature. These variables are trust, time, product variety,
convenience and privacy, which determine how consumer-buying behavior is reflecting online
shopping trends. Data was collected through the use of a specified measuring instrument. This
instrument was a completely self-developed and standardized questionnaire that comprised of
two sections. The statistical analysis of the data reflects that trust and convenience will have
great impact on the decision to buy online or not. Trust is been considered as the most relevant
factor affecting the customer’s buying behavior towards online shopping when it comes to
younger generation.

Keywords: Online shopping, Trust, Convenience, Privacy, Time, Product variety

Executive Summery

We are living in the era of globalization and E-commerce advancement. Our day to day lives and
livings heavily rely on internet. In this report I have tried to discuss both the insight and outside
procedure of an E-commerce organization and basically focused on acquisition process of
DarazBagladesh Ltd. Daraz Bangladesh started its journey in Bangladesh officially in February
2015, within a very short period of time it grabs people attraction and popularity thus it became
the number one online retailer of Bangladesh. World’s largest internet incubator Rocket internet
is the venture of Daraz and presently has been acquired fully by Alibaba Company. Previously it
used to follow the model which name is E-bay. In E-bay model the website works as a bridge
between the buyers and sellers. The first stage of this procedure is the seller acquisition,
regarding to the need and demand of the consumer, the commercial team acquire seller. The
acquisition process might take 1week to 2-3 months depending on the brand or on the product.
After completing legal formalities of the acquisition process the product/service got live in the
Daraz website. Then the product/service get visible to the consumer which includes every details
of the product.People visit Daraz’s website just like an actual marketplace to choose their desired
item.Daraz follows the commission model on each and every sale. People from all over country
can enjoy the easiest payment facilities of payment such as cash on delivery, Bkash, bank
transaction etc. All customer have to do is to place the order on Daraz’swebsite; the delivery
service man will bring the product to their mentioned address. From early days to till now
Daraz’s has some issue regarding their delivery system as it takes more or less 3-7 days to
deliver a product. Soon the issue will resolve as the company is very much well aware of their
customers satisfaction as well as their service. Gradually, the delivery system is getting really
smooth and customer complaint has decreased in good numbers. Daraz also provide
opportunities to their seller regarding promoting their product via social media, Google search
engine optimization (SEO) and newsletters.By 2016, Daraz Bangladesh is collecting good
amount of commission from their seller. The idea is to reach the break-even point. Though the
idea of online business and the journey of Darazis new in Bangladesh but they actually
established their name in peoples mind. It became possible because Daraz spend a lot of money
initially on their marketing campaign therefore they attracts huge amount of seller within a very
short period of time. There are over 4000 seller exists in Daraz website. The buyer can find
almost everything on Daraz. Recently they have added hotels, resorts and visa services in their
service categories namely tours and travel. This clearly shows that Daraz does not only focus on
fixed category. They are trying to grab every business opportunity where they feel they can
progress. Even they are planning to expand to catering and decoration services to their platform
as well. Another interesting strategy of Daraz is that, they do not want to give the sell to only to
the selected sellers, they want all their sellers to get the sell. That is why there is no option of
direct promotion through money, all the sellers have to climb up the stairs to get the desired
promotion, and they just cannot get it right away. Seller who will provide good service to the
customer and be active on Daraz platform will get extra benefit and good rating which will help
them to get promotional benefits. Daraz Bangladesh actually change and set their plans in
weekly depending on the upcoming events basis like combo offers, discounts, double taka
voucher, 4tk deal, coupon offer etc. Therefore customer always found something new here and
that makes them keep coming and do shopping at Daraz website.
 1. Introduction

Online shopping is one of the commonly used mediums for convenient shopping. It is, in fact, a
popular means of shopping among the Internet community. No matter clothes, electronics, or
pets, online shopping trend is becoming more popular with each passing day. Hundreds of
websites and applications are being created and deployed every year to cater this rising demand
of comfortable shopping trends. The World Wide Web has propelled in no small extent of
changes in the attitude and behavior of people all over the world. Due to this blessing, online
shopping has emerged which influenced the lives of ordinary citizens. Online shopping has also
been started in Bangladesh, but consumers are not much habituated yet to go online shopping
frequently. This study is undertaken to understand the behavior of online shoppers through a
self-constructed questionnaire of 160 respondents from Dhaka city. The survey reveals that
consumers shop online to save time, and for available varieties of products and services. Both
male and female both have the same type of behavior towards liking and disliking factors; they
like home delivery facility and dislike inability to touch and feel the product most. They acquire
online shopping information from websites especially from the social network and purchase
apparels, accessories mostly through cash on delivery method of payment. The most of the
consumers are concern about the security of the payment system, and their overall online
shopping satisfaction is mixed.

2. Background of the Study

Online shopping is becoming a suitable way to make all your purchases, whether you’re at home
in office, or in a different country. This is especially true for developed countries, where every
store has its website you can buy from. You can easily convey about the promotions like cash on
delivery and special discounts on online purchases. This trend to shop online with the comfort of
your own couch has recently been taken up in the Asian region as well, especially in Bangladesh,
Pakistan and India. Bangladesh seems to have adopted the trend much faster. Bangladesh have
multiple fashion, furniture, transports and food websites, along with the commonly known
companies, such as Daraz and Pathao, food panda. In the earlier for Bangladesh however, the
adoption of such trends had been more difficult. People usually don’t trust the products being
displayed in front of them. As a result, we can’t expect them to buy online and be satisfied with
it. However, the youth of Bangladesh is open-minded and has slowly embraced online shopping,
even if it’s ordering food online. People, in Bangladesh, have been victims of scams both online
and on mobile applications, so it’s understandable why they look suspiciously at such an activity.
This recent trends have led researchers to believe that age isn’t the only factor causing the youth
to turn towards online shopping. Other factors are also involved in making online shopping one
of the fastest growing markets in Bangladesh, which is greatly helping the IT industry in
Bangladesh to flourish. This research study will try to reveal such factors and consumer behavior
towards online shopping. The primary goal of a business is to offer product and services that best
serve their consumer needs. A business which fulfills the customer needs with satisfaction very
well is more successful than its competitors as satisfied buyers tend to make a repetitive
purchase. Moreover, in Bangladesh, online shopping has been evolving fast and has the potential
to grow exponentially in time to come, as Internet penetration reaches far and wide across the
rural areas. However, it is also true that Bangladeshi people are traditionally conservative in their
approach to shopping due to modernization and fast-paced life, dependence on online shopping
will increase. Thus, the purpose of this study is to understand the consumer behavior towards
online shopping, their liking, disliking, and satisfaction level.

3. Problem Formulation

Many people are willing to adopt online shopping as well as not willing to do so. This study
figures out the reasons behind people willing to change consumer-buying behavior so that
 they can be convinced towards buying online. It will help the online shopping websites and
applications by highlighting the key areas that can be focused onto make the transition easier
and safer for the customers.

4. Problem Statement

Social media has introduced a new dimension of purchasing products from home. Internet
users, especially Youth, have shown more interest in buying products online. In this research
study, this shift in buying-behavior of consumers i.e. Youth will be focused on. It will also
examine the changes in consumer buying behavior among the youth and will be determined
by the following five factors:

1. Trust

2. Convenience

3. Time

4. Product Variety

5. Privacy

5. Research Objectives

Main goal of this study is to find out which factors help more in adopting online shopping
trends.

6. Hypotheses

 H1: A significant and positive relationship exists between trust and consumer buying-
behavior towards online shopping.

 H2: An important and optimistic relationship exists between convenience and consumer
buying-behavior towards online shopping.
 H3: A substantial and progressive relationship exists between saving time and consumer
buying-behavior towards online shopping.
  H4: A noteworthy and helpful relationship exists between online product variety and
consumer buying-behavior towards online shopping.

 H5: A major and affirmative relationship exists between established sense of privacy and
consumer buying-behavior towards online shopping

7. Methodology

To understand the consumer behavior of newly launched online shopping in Bangladesh, we

have undertaken a descriptive study through a survey by forming a self-constructed questionnaire
considering the research objective. A Likert five-point scale ranging from strongly agree to
strongly disagree been used to collect a quick response from the respondents.

Convenient non-probability sampling method has been adopted in this study to acquire data from
respondents in Dhaka city where about 50% e-commerce customers reside
(Jagonews24.com., 2015) in Bangladesh. A convenient sampling method is easy to implement
and cost-effective and more common in IS research that gets higher response rate . We have
targeted 200 respondents belong to different age-group, student, service holder, business person
and the homemaker with various experience in online shopping for a personal interview and 179
participated in the survey resulting in 90% response rate. However, after sorting 160 useful and
valid responses were used for further analysis.

Objectives of the study:

The main objective of this research is to study the online buying behavior of the consumers. The
specific objectives are:
1. To find out the online shopping behaviour of consumers in Mumbai, India.
2. To investigate the problems and issues most concerned while shopping online
3. To study the shopping trends of online buyers

Research Methodology:
Locale of the study: Respondents were selected from various location of Urban Mumbai as it is
a metropolitan city with people belonging to all segment of class, religion with access to modern
facilities.

Sampling Method: Convenience sampling method was used for the present study as the list of
Online shoppers involved in online purchases was unavailable. There were 170 respondents
undertaken for this research study (85 males and 85 females). Anonymity and confidentiality
were assured. The respondents were drawn from different occupational categories, education,
age, gender or ethnic categories.

Instruments:

The main instrument for this study was a questionnaire. The well-structured questionnaire aimed
to gather information about respondents’ attitude towards online shopping and purchase
perception towards online shopping was developed.

Research Findings and Discussion:

To study the consumer behavior is very complex phenomena - as it is a kind of human behavior,
and human beings are always not easily understood and are sometimes quite ambiguous.
According to Warner, consumer behavior is defined as “the study of the mental and physical
activities performed by individuals or groups that result in decisions or actions associated with
the purchase, use or disposal of goods and services”. Several researchers have carried out studies
in their effort to examine the factors influencing consumers’ attitude and perception to make
purchases through online shopping. Attitudes toward online shopping are defined as consumers’
positive or negative feelings related to accomplishing the purchasing behavior on the internet.
8. Literature review

Online shopping indicates electronic commerce to buy products or services directly from the
seller through the Internet. Internet-based or Click and Order business model has replaced the
traditional Brick and Mortar business model. More people than before are using the web to shop
for a wide variety of items, from house to shoes to airplane tickets. Now people have multiple
options to choose their products and services while they are shopping through an online
platform.Day-by-day taste, preference and choices are varying regarding different factors such as
the Internet emergence. However, this development needs some more understanding related to
the consumer’s behavior. Consumer behavior research identifies a general model of buying
behavior that depicts the processes used by consumers in making a purchase decision
(Vrender, 2016). Those designs are paramount to the marketer as they can explain and predict
consumer purchase behavior.Jarvenpaa, Todd, Jarvenpaa, and Todd (1997a) proposed a model of
attitude, behavior, and shopping intention towards Internet shopping in general. The design
includes several indicators classified into four broad categories like product value, quality
services offered through the website, the shopping experience, and the risk perception of the
online shopping. Chang, Cheung, and Lai studied categories of variables, which drive online
shopping activity. In their study, they divided the features into three broad categories. Perceived
characteristics of the web sale channel are the first one which includes risk, online shopping
experiences, advantage, service quality, trust. The second category is a website and product
features which are risk reduction measures, site features, and product characteristics; and the last
group is consumer characteristics. Various types of features, demographic variables, consumer
shopping orientations, consumer innovativeness and psychological variables, computer, Internet
knowledge, and usages drives consumer characteristics.Consumer attitudes toward online
shopping usually been determined by two factors; one is trust, and another is perceived benefits.
Therefore, trust and perceived benefits seem to be the critical conjectures of consumer behavior
toward online shopping. Moreover, information quality, merchandise attribute, website design,
transaction capability, payment, security/privacy, delivery, self-consciousness, state of mind, the
consumer’s time sense and customer service are strongly predictive of online shopping
satisfaction.

In Bangladesh, information quality and purchase quality linked with the post-purchase quality
are statistically significant in the case of customer satisfaction. However, brand image and
quality of products, goodwill of country of origin also influence significantly on purchase
intention of online products. Moreover, online data extraction about the products, services along
with the historical data for individual customers is ingredient element to choose an online store
or make re-purchase decision. In this paper consumer behavior towards Daraz app will be
discussed.

8.1Consumer Buying-Behavior

“Consumer behavior can be described as the study of individuals, groups, or organizations and
the processes they use to select, secure, and dispose of products, services, experiences, or ideas
to satisfy needs and the impacts that these processes have on the consumer and society”. In 2011,
the total global E-commerce sales grew to approximately961 billion USD or 690 billion Euros.
An increase of 20% was recorded along with the estimation in 2013, the sales are expected to
cross the 1 trillion Euro mark by 2013. Growth is higher in the Asia Pacific Region as compared
to more mature markets like US, UK, Japan and Europe etc. In 2011, Asia Pacific Region
witnessed groundbreaking 130% growth in sales with the highest contribution from China.
Online selling is now an essential part of any economy. All over the world, there had been an
obvious and increasing trust in consumers towards shopping online.Bangladesh comes second
from the bottom in the world’s fastest online shopping adoption list. In Bangladesh, the social
media do not have an effective role in influencing customers for online shopping. Another
reason, as proposed by Nielson (2010), is that the people in Bangladesh have had negative
experience with online shopping in the past. Most people who shop online in Bangladesh buy
only clothes or hardware online. Though Internet development has helped bring about an
increase in number of online consumers, many people still hesitate due to the concerns related to
privacy and personal safety. As online franchise and store become more sophisticated, online
shopping continues to mark its existence in the market. This shows that there’s now a dramatic
revolution in the way people buy products and services

According to Burke (2002), there are four relevant demographic factors that have major impact
on three basic determinants of the consumers’ attitude towards online shopping. The four
determinants include age, education, gender and income. The basic determinants comprise of
“convenience”, “worth”, and “pleasure”.

8.3 Trust

Trust Mayer, Davis and Schoorman, in 1995,(p. 709-734) defined trust at first as:“The concept
“trust” is defined as the willingness of a party to be vulnerable to the actions of another party
based on the expectation that the other will perform a particular action important to the trustor,
irrespective of the ability to monitor or control that other party.” Mayer, Davis and Schoorman’s
(1995) study was one of the first and the most popular studies on e-commerce trust and they
viewed the main predictors of trust to be intention to take a risk and perception towards the
trustee’s characteristics. Customers’ willingness to buy from online store is greatly affected by
consumer’s trust in giving their personal particulars and security for paying through credit card
online. An easy way, an online seller can reduce the concerns customers have regarding risk is to
carry brand name products on their websites. It is also a good idea to have your own brand name,
like Amazon (Korgaonkar& Karson, 2007). Holding and also selling products from a brand can
improve the trust quotient. The brand name also greatly affects the final buying decision of the
customer (Lim & Dubinsky, 2004). Customer relationships are the most significant factor in
maintaining trust while building ecommerce (Kim &Tadisina, 2007). As far as the fear for secure
transactions is concerned, it is imperative that online companies ensure that they will never use
their customers’ private information for any other purposes. This should be mentioned in the
privacy policy. It will help the customer have Journal of Management and Research Volume 2
Number 2 2015 more security regarding their identity. Online stores can even build specially
integrated mechanisms that ensure safeguarding of personal information of the consumers and
avoid misuse of information and payments through credit card (Prasad &Aryasri, 2009).One of
the major factors that are inhibiting online purchasing is the lack of consumers’ trust in vendors
over the internet (Gefen, Karahanna, & Straub, 2003). 8.

4 Time

One of the major issues people are dealing with is perceived time pressures. This is defined by
Settle and Alreck (1991) as the degree to which an individual finds himself lacking time as
relative to the daily tasks of living. This perceived pressure could be rising from two distinct
sources, situational and personal. Most commonly cited reason is situational, and it is also very
easy to be identified. People often find that they have their hands full with too much work, too
many things that need to be done, and not enough time to be actually able to do them. Such
people who perceive a time pressure can and do document their predicament by blaming
demands associated with work pressures, family and other affiliations. (Lavin, 1993). According
to Bellman et al., (1999), who studied relationships between demographic, personality
characteristics and attitudes towards internet shopping, people who have a more high-tech
lifestyle or who interact with the internet on a routine basis are more likely to shop online very
frequently. Also people with time constraints prefer the online shopping methods. The greater
the pressure and time constraint on a customer, the more they become impatient. This can be an
inhibiting factor for online shopping. Shipping, delivery, and other such nuances can take time,
and to shop online, consumer must be willing to be patient and wait for his goods to arrive. This
requires some planning ahead of time. Even for consumers who shop online regularly, if they
don’t plan ahead, they are less likely to go for online shopping (Bosnjak et al., 2007).

8.5 Product Variety

There is a continuous rise in online shopping in the US and there has been an increasing
influence in the total amount of retail sales as well, thus calling for more extensive exploration of
spending patterns per person. In order to buy more products online, the products and services
that they have already purchased must first satisfy customers. To be able to understand what
consumers want in a website, it is important that researchers develop and then validate metrics
that can capture the feelings and attitudes of customers that shop online comprehensively.
(Straub & Watson, 2001). There are many researchers (Lian& Lin, 2008; Peterson et al., 1997;
Bhatnager et al., 2000; Liao & Cheung, 2001) who have insisted that there could be different
product types and a diverse range when they are being sold online. A product factor can be any
quality of the product or service that is for sale. More often, products bought online are the same
as those purchased from brick-and-mortar stores. Customers make the decision of buying from
either place based on factors like who is offering the best value for the product (Keeney 1999).
Other factors include the availability to customize the product, the overall value and the
merchandising (Zhu & Kraemer, 2002; Jarvenpaa& Todd, 1997; Szymanski &Hise, 2000;
Keeney, 1999; Torkzadeh&Dhillon, 2002). Researches like Szymanki and Hise (2000), Ahn et
al., (2004) found that product variety is a major factor when it comes to satisfaction in online
buying.

8.6 Convenience

Copeland introduced the concept of convenience in 1923, and labeled good that consumer buy
most frequently and those that are easily accessible in stores on immediate demand as
convenience goods. Seiderset al., (2000) suggested four opportunities when it comes to retailing
in order to provide customers with convenience:

a) Access: Ability of customer to reach the retailer

b) Search: Ability to identify and select products that they want

c) Possession: Ability to obtain the product of desire

d) Transaction: Ability to amend or effect transactions

Overview of Daraz Bangladesh Ltd

Bangladesh is a growing country and so its economy is also growing rapidly. Bangladesh has
low labour wage rate, easy communication facilities and publicity to different countries of the
world through port facilities, rail and road; its miles a heaven to put money into. Bangladesh
is also going with the flow of improvement and globalization. Now-a-days communication
has emerged as remarkable-growth due to the huge improvement of internet, for that
enterprise is getting extra competitive through it. The whole contemporary commercial
enterprise zone is being benefited by means of it. And because of the big development and
scope that the internet gives a brand new region has emerged, “e-commerce”. Though
Ecommerce or electronic commerce is a new concept however it's been around for over a
decade. But lower back then it became at a brand new stage and became handiest available
within the western international locations. However now it has grew up and with the assist of
globalization and large internet access it has entered into Bangladesh as well.

In the recent era we can see that there have been quite few E-commerce websites available in
our country. Among them Daraz Bangladesh is one of the leading online companies. Visibly
we get to see a tremendous improvement of the company.Daraz is an online shopping market
place where an individual can shop different things online such as electronics, fashion, home
appliances, kid’s items and many more. There are basically eleven categories under each
category the company has included sub categories. So basically it’s a wide range of product
and services as the consumer does not need to go for so many websites to get their desire
products. They can get all sorts of product and services from just one website. Daraz
Bangladesh provide various kind of facilities to their consumer beside the product/service
itself such as free product returns policy, welcome coupon, discounts code, voucher, and
various payment options including cash on delivery, bkash, bank transaction, EMI. Offering
affordable prices and huge products, DarazBangladesh allows us to enjoy an awesome
shopping experience getting the product/service directly to the doorstep.

Bangladesh has a huge population which pulls in a great deal of advertisers to offer their
products.But because of absence of creativity, Bangladeshi customers still need many latest
facilities the modern world offers. A Big portion of the our population don't have the
knowledge about the proper use of internet apart from use it only for social media and that is
turning into a challenge for the online companies. Our Government is trying to provide
internet all through the country, here the government is playing a big role in this sector. As
they are providing internet access to remote area and school and colleges, which will help in
the development of e-commerce sector of nation.

Daraz started its operation in Bangladesh back in August 2014 and officially in February
2015. Currently it turns into the main online shopping facility provider for Bangladeshi
customers. Previously in Bangladesh, people had very less knowledge about online shopping.
Moreover they do not feel comfortable while purchasing product online as they have very less
knowledge about it. Because of Daraz Bangladesh and other online websites the consumer of
Bangladesh are now cooperating with online shopping. They get to know how easy and
convenient online shopping can become.Daraz Bangladesh is showing us what actually online
business is. Daraz is one of the many sister concern companies of Rocket Internet GmbH in
Bangladesh. Though in the month of May 2018 the company has been fully acquired by
Alibaba Company. Daraz Bangladesh Limited is currently providing B2C and B2B sort on
offering which no other E-Commerce company does in Bangladesh.

Parent Company:

Daraz Bangladesh was introduced into the country by Rocket Internet and referred as parent
company of DarazBangladesh.Rocket Internet is a German Internet company headquartered
in Berlin. The company manufactures online start-up companies and claims shareholdings in
different models of internet retail businesses. The business model of rocket internet is known
as a start-up studio or a venture developer. Rocket internet intends to work outside the US and
China. Rocket Internet has more than 30,000 employees over the world and has comprises of
more than 100 entities in 110 nations. Rocket Internet was founded in Berlin in 2007 by three
brothers: Marc, Oliver and Alexander Samwer.
2014, Rocket Internet changed its legal form from a GmbH (private limited company) to an
AG (Public limited company).

Daraz Acquired by Alibaba Company

On the month of May 2018Daraz Bangladesh has been fully acquired by Alibaba Group.
Alibaba group was founded IN 1999 by 18 people led by Jack Ma, a former English teacher
from Hangzhou, China. The founders started the company to champion small businesses, in
the belief that the Internet would
level the playing field by enabling
small enterprises to leverage
innovation and technology to grow
and compete more effectively in
the domestic and global
economies. The acquisitions
include Daraz operations in
Pakistan, Nepal, Sri Lanka, and Myanmar.

The operations will continue under the Daraz brand name.“Daraz will be able to leverage
Alibaba’s leadership and experience in technology, online commerce, mobile payment and
logistics to drive further growth in the five South Asian markets that have a combined
population of over 460 million (Dhaka tribune,May2018).

Mission:
The company’s mission is to become world’s largest e-commerce platform outside USA and
China. The company identifies new business models, untapped markets and entrepreneurs.

Nurture them and try to establish the business.

Vision:
Their vision is to capture the maximum share of consumer online shopping expenditure in the
market.

Goal:
Their goal is to provide the best product in the best price. Also, to introduce latest products in
the market for the customers.

Place:
As Daraz is an online shop, the purchase happens on through website. So, in this case the
place of the sale is the website/ virtual marketplace. Link: https://www.daraz.com.bd/

DARAZ.COM.BD: The Leading Online Market Place in Bangladesh

In our developing economic system of Bangladesh, people are more intended to go for
alternatives of comfort and are much less involved about price while purchasing. people
getting more focused on other tasks nowadays, consequently, they search for less difficult,
trustworthy and applicable online purchasing options in which they are able to shop whenever
as online shops are open 24/7. So the ability marketplace for modern-day on-line purchasing
enterprise in Bangladesh now prepared to grab the possibility, however the question is if the
market also geared up to take inside the offerings. By the leading survey it is clearly been
visualized that Daraz Bangladesh is one of the leading online shopping website preferred by
the Bangladeshi consumer.

Categories:

The DarazBangladesh website consist 11 categories and every category got sub-categories
which help the consumer to search for their desired product and services. The categories are
Women’s Fashion, Men’s Fashion, Phones & Tablets, TVs Audio & Cameras, Computing &
Gaming, Appliances, Home & Living, Sports & Travel, Beauty & Health, Baby Kids & Toys,
Grocer’s Shop and other categories. In the initial stage the website focuses more on the
fashion sector as the prime concern was to make the consumer feel comfortable about
purchasing fashion items online. Gradually when the website developed and gained trust the
website tried to capture each and every category. In the present era people not only prefer
purchasing products online but they prefer services as well and because of this upcoming
trendDaraz Bangladesh has introduced Tours and Travel sector. In this category there will be
list of hotels, resorts and travel agencies who will provide the best packages and deals to
Daraz consumers.

Seller Acquisition Process

Daraz Bangladesh does not provide or produce any product or services of their own. They
basically work as a media or as a vendor. Daraz.com is basically a platform where different
sellers and owners provide their product and use Daraz platform to sell their product. So the
first job of DarazBangaldesh is to acquire these sellers. Depending on the need and current
market demand the company search for products and sellers and then peach them to make
their product appear in the website. In every sector there are some terms and conditions which
need to be maintained and followed by both parties. Here the seller remains as first party and
the Daraz work as second party. Certain discussion and meeting held between these two
parties to conduct the business agreement. After the agreement is made between the two
parties a seller center account has been created.

Seller center is basically a website which both the seller and Daraz authority can access so
that they can track and make every update. All the product and service details have been
uploaded there including price and details. Both parties can make necessary changes
according to their convenient. After uploading the product information it takes 7 working
days to get the product / service live and been visible into the Daraz website. The seller can
also get notified in the seller center and in their mail when any order get placed.

Payment Method:
One of the main concern of the seller and the main problem that one person face while
acquiring a seller is the payment method. Daraz Bangladesh provide 30days payment method.
Once the product get sold the seller will get the payment of that order after 30 days through
their bank payment system. Though in Tours and travel sector payment can be made within 7
or 14 days. When we are acquiring a brand or a known company we provide some extra
privilege to them. We do the business seamlessly we provide security check to the seller as a
security.

Title Findings Methodology

Identifying key factors affecting The user interface quality, Multiple regression analysis
consumer purchase behavior in product and service information was done on data collected
an online shopping context quality, security perception and through web
site awareness were found to
have significant effects on
consumer’s site commitment.
They investigated whether
information satisfaction and
relational benefit play a
significant mediating role in
consumers’ relationship
purchasing behavior
Consumer attitudes towards The empirical findings of this Factor analysis and structural
online shopping: The effects of study indicate that trust and path model analysis was used to
trust, perceived benefits and perceived benefits determine test the hypothesized
perceived web quality consumer attitudes toward relationships of the research
online shopping model
Factors influencing consumers’ Chinese consumers’ age, Hierarchical regression analysis
online shopping in Bangladesh income, education, and marital is used on 103 customers
status, and their perceived
usefulness are significant
predictors of online shopping
intention
Customer perceptions of e‐ The analytical results showed Confirmatory factor analysis
service quality in online that the dimensions of website and structural equation
shopping design, reliability, modeling are done on data
responsiveness, and trust affect collected from a sample size of
overall service quality and 297 online consumers
customer satisfaction.
Moreover, trust significantly
related to customer purchase
intentions. However, the
personalization dimension is not
significantly related to overall
service quality and customer
satisfaction
Internet users’ attitudes toward Lack of physical interaction is a Descriptive statistics techniques
business-to-consumer online central impediment to online analyzed survey-based data, and
shopping retail sales. Respondents stated the results of the data analysis
that privacy of personal are presented
information and security of
financial transactions are their
top concerns with using the
Internet. The top factors that
increase consumer trust levels in
 online stores are guarantee and
insurance policy, security and
privacy seals, pictures of
products, company address and
contact details, necessary details
about the company and privacy
policy
An empirical study on The effect of demographic Consumer intention in web-
behavioral intent of consumers characteristics like income, based shopping is analyzed
in online shopping gender, occupation, education through the comparison of the
levels, a sector of employment factors that facilitate or inhibit
is found to be statistically online purchasing of products
insignificant on both behaviors and services using the theory of
for products as well as services planned behavior
intention and purchase behavior
in the online environment for
products and services.
Regarding actual behavior, it is
the ease of use, past
experiences, and compatibility
that are much more effective in
determining the behavior
Consumer behavior in web- Perceived control and shopping Exploratory study
based commerce: an empirical enjoyment can increase the
study intention of new web customers
to return, but seemingly do not
influence repeat customers to
return.
It also finds that a web store that
utilizes value-added search
mechanisms and presents a
positively challenging
 experience can increase
customers’ shopping enjoyment.
Further, the more often
customers return to a web store,
the more their shopping
enjoyment is determined by
their product involvement
Consumer reactions to World Wide Web merchants Experimental survey
electronic shopping on the need to think more about how Focus group discussion
World Wide Web they perform on the factors Dana analysis through
known to affect consumer regression analysis
behavior; namely, product
perceptions, shopping
experience, and customer
service
Factors influencing consumers’ There is a significant
attitude towards e-Commerce relationship between e- Pearson’s correlation
purchases through online Commerce experience, product
shopping perception and customer service
with the attitude towards online
shopping among the
respondents. There is no
relationship of hours spent on
Internet and customer risk with
the attitude towards online
shopping among the
respondents
A study on consumers’ attitude This research found that there Multiple regression analysis
towards online shopping in were relationships between the
bangladesh perceived usability, perceived
security, perceived privacy,
perceived after-sales service,
 perceived marketing mix,
perceived reputation and
consumers’ attitude to adopting
online shopping in bangladesh.
Only marketing mix and
reputation have a greater
influence on consumers’
attitude towards online
shopping
Influencing the online This study classifies the main Review of previous 6 years’
consumer’s behavior: the web ingredients of the online research
experience experience or web experience as
being:
the functionality of the website
that includes the elements
dealing with the site’s usability
and interactivity;
the psychological elements
intended for lowering the
customer’s uncertainty by
communicating trust and
credibility of the online vendor
and web site; and
the content elements including
the aesthetic aspects of the
online presentation and the
marketing mix
The impact of social networks A significant correlation Regression analysis method
on consumers’ behaviors between customers’ interaction
with UGC and customers’
buying behavior
Online shopper behavior: Factors that motivate customers Descriptive analysis
influences of online shopping to buy online include
decision convenience, information,
available products and service
and cost and efficiency.
Factors that impede customers
to buy online include security,
the intangibility of online
product, social contact and
dissatisfaction with online
shopping
Online shopping and customer Information quality, purchase Reliability analysis
satisfaction in Bangladesh quality, and post-purchase Correlation analysis
quality have a statistically Multiple regression analysis
significant relationship with
customer satisfaction in
Bangladesh
A study of bangladeshi online • The ratio of male consumers is Primary data have been
consumers and their buying very high in online shopping collected from 200 respondents
behavior (73%) and analyzed
• Income of respondents largely
falls in the bracket of Tk.
10,001 to Tk. 20,000 (49%)
• Employees of various
companies are purchasing more
than others through online
shopping (51%)
•Maximum numbers of
respondents (38%) feel that
online shopping has easy buying
procedures; others think that
they can have a wide variety of
products, lower price of the
 products, various modes of
payments, etc.
• Most of the respondents think
that availability of online
information about products and
services is excellent (54%)
• Most of the respondents
purchase the products 2–5 times
annually (46%)
•Some respondents are facing
problems at the time of online
buying (23%)
• Most of the respondents
Search and buy online but pay
in cash on delivery (61%)
Initial trust and online buyer It is found that perceived The research examines
behavior usefulness, perceived security, consumers’ online initial trust
perceived privacy, perceived by using four significant
good reputation, and willingness categories of determinants:
to customize are the essential perceived technology, perceived
antecedents to initial online risk, company competency, and
trust. Both online initial trust trust propensity.
and familiarity with online Data have been analyzed
purchasing have a positive through:
impact on purchase intention descriptive statistics;
reliability, validity and
correlation analysis;
regression analysis; 
analysis of variance
Understanding online purchase As the profile data show, this An empirical study on 228
intentions: contributions from group is relatively students.
technology and trust homogeneous regarding age and Reliability and validity test
perspectives balanced regarding Internet Structural equation modelling
experience. It is found that the (SEM) estimation
trust-antecedent “perceived
risk” and the technology-
antecedent “perceived ease-of-
use” directly influenced the
attitude towards purchasing
online
An empirical investigation on The findings of the study show TAM (Technology Acceptance
the adoption of e-Commerce in that all the four constructs, Model)
Bangladesh namely, computer self-efficacy, Two hundred samples were
perceived credibility, perceived examined
usefulness and perceived ease of
use have a significant effect on
the adoption of e-commerce.
The study has also demonstrated
that perceived usefulness
appeared as the most critical
factor in describing the user’s
adoption of e-Commerce

Mining customer knowledge for This study finds some online This study uses the Apriori
exploring online group buying group buying buyers are more algorithm as an association rules
behavior from the high-income group and approach, and clustering
prefers to pay by credit card and analysis for data mining, which
ATM. They want 24/7 customer is implemented for mining
service and well feedback customer knowledge among
online group buying customers
in Taiwan
A study of the impact of social he study shows the influence of The study was conducted on
media on consumers social network on increased 237 respondents through online
trust and intention to buy and paper questionnaires. SEM-
 PLS used to validate the
proposed model

Table 2. Advantages of online shopping

Save Time If someone has the specific list of shopping
orders of what he wants to buy, he can buy
instantly with just a few clicks of the mouse
from a site and can move to some other
important work. Thus can save his time
Save Energy Online shopping saves energy because
someone does not need to go to a physical
store by wasting his energy on shopping
Comparison of Price It is effortless and straightforward to conduct
a price comparison from one online shopping
site to another. With just a few clicks the
advanced innovation of search engine allows
everyone to check price and compare
24/7 Availability Online shopping gives one the freedom to
shop at one’s pace and convenience because
online shopping store is open 24/7, 7 days a
week and 365 days
Remove Waiting Line Every online store is designed with unique
individual ordering feature to purchase so that
no long line endures when buying from
online. Thus, online shopping is cutting down
the bad habits of standing in a long line and
waiting
Overcome Geographical Limitation Anyone can buy his desired products or
services from anywhere in the world without
being physically present over there through
online shopping. Thus, online shopping helps
to overcome the geographical limitation of
buying
Save Fuel There is no need to move somewhere for
online shopping, so there is no need for a
vehicle. Thus, online shopping save fuel and

Table 3. Disadvantages of online shopping
Inability to Touch and Feel
Fraud and Security Concerns
Privacy
Lack of Full Cost Discloser
cost associated with fuel
The online store is only showing the photos and description of
the products. So those who want to touch, see and test the
products before buying, can’t be able to do so at online
shopping
Consumers are at high risk of fraud on the part of the
merchants because of the lack of ability to inspect merchandise
before purchasing. Using the stolen credit card or fraudulent
repudiation of online purchases put retailers also in fraudulent
purchases
Privacy is a big issue for some consumers. Many consumers
want to avoid spam and telemarketing which could be from
supplying contact information to an online merchant. Many
websites along with Brick and Morter’s store keep track of
consumer shopping habits to suggest an item or another site to
visit. Although different jurisdiction has different laws
concerning consumer privacy and different level of
enforcement still online shopping causes privacy concern
It is easy to compare the best price of an item online, but it is
not so easy to identify the total cost (including additional fees,
 shipping, tax, etc.) of an item online. Lack of full discloser of
the total cost is one of the concerns about online shopping.
This problem is especially evident in cross-border purchasing
Diminished Instant One can use the product instantly after buying it from a
Satisfaction physical store, which can be satisfying. However, online
shopping requires patience to wait for the item to arrive (about
6/7 hours or even more), which can diminish the satisfaction
level

Year Users Population % Pen. GDP p.c.*

2000 100,000 134,824,000 0.1 N/A

2007 450,000 137,493,990 0.3 US$ 466

2009 556,000 156,050,883 0.4 US$ 574

2010 617,300 158,065,841 0.4 US$ 624

2011 5,501,609 158,570,535 3.5 US$ 700

2012 8,054,190 161,083,804 5.0 US$ 700

2015 53,941,000 168,957,745 31.9 US$ 1,080

Table 5. The Internet subscribers

Operator Subscriber

Mobile Internet 58.661

WiMAX 0.124

ISP + PSTN 3.219

Total 62.004

Note: Subscriber in a millions

 Source: BTRC (2018).

Table 6 of 6

Male 62.5

Female 37.5

Table 5 of 6

Table 5. The Internet subscribers

Table 4 of 6

Table 4. Internet usages and population statistics

Year Users Population % Pen. GDP p.c.*

2000 100,000 134,824,000 0.1 N/A

2007 450,000 137,493,990 0.3 US$ 466

2009 556,000 156,050,883 0.4 US$ 574

2010 617,300 158,065,841 0.4 US$ 624

2011 5,501,609 158,570,535 3.5 US$ 700

2012 8,054,190 161,083,804 5.0 US$ 700

2015 53,941,000 168,957,745 31.9 US$ 1,080

Note: GDP in US dollars.

Source: International Monetary Fund (Internetworldstats.com, 2015)

Theoretical factors that effects consumer behavior:

Trust

convenience

Consumer buying
behavior towards online
Time shopping

Product Variety

privecy

Consumer Buying Behavior

“Consumer behavior can be described as the study of individuals, groups, or organizations and the
processes they use to select, secure, and dispose of products, services, experiences, or ideas to satisfy
needs and the impacts that these processes have on the consumer and society. “ (Kuester, 2012). Every
individual’s consumer behavior varies from another, depending on their buying choices. These choices
are influenced by their buying habits which are affected by psychological and social factors which have
an effect on the purchase decision process. (Brassington, F. and Pettitt, S., 2000). Online shopping
behavior (also known as online buying behavior) is the process of purchasing products or services
through websites on the Internet. The process has five steps, which are similar to the steps related
toconventional shopping behavior (Liang and Lai 2000). Magee (2003) says that the growth in the
number of people who shop online has become more than the growth in general Internet users. This
indicates that more Internet users have begun to get comfortable with the concept of shopping online.
In 2011, the total global E-commerce sales grew to about 961 Billion USD or 690 billion Euros. An
increase of 20 % was recorded along with the estimation that by 2013, the sales would be crossing the 1
trillion Euro mark by 2013. Growth is mostly highest in the Asia Pacific as compared to more mature
markets like US, UK, Japan and Europe etc. In 2011 in Asia Pacific, a ground-breaking 130 % growth was
recorded, with the greatest contribution by China. Online selling is now essential part of any economy.
There has been an obvious and increasing trust in consumers towards shopping online all over the
world. (AadWeening, 2012). Haubl and Trifts (2000) say that potential customers seem to use a process
that has two stages process to reach a buying decision. First, consumers screen a large set of products so
that they can find the subset that will fulfill their needs. After that, this subset is evaluated in detail and
the products are cross compared on the basis of some attributes to decide upon a product to buy.
Haubl&Trifts also discovered that websites that offer an interactive user interface and help to do in-
depth product comparisons have a more favorable and popular effect on the efficiency as well as the
quality of the purchase decision. Pakistan is the world slowest adopter towards online shopping and
shopping through the internet. The social media in Bangladesh does not have such an effective role in
influencing customers online. Another reason, as proposed by Nielson (2010) is that the people in
Bangladesh have had negative experience with online shopping in the past. Most people who shop
online in Pakistan buy clothes or hardware online. NG-Journal of Social Development, VOL. 5, No. 1,
October 2015

Demographic

Frequency

Female 155

Male 59

Total 214
 Age Frequency

17-19 56
20-22 112
23-25 28

26 & Above 18 18
Total 214

Education Frequency

Under Grad 121

Grad 27
Post Grad 35

MPhil 22
PhD 69

Total 212

It is a rather interesting fact to notice that most of the respondents were female, with a percentage of
72.1%, while the age ranged from 20 to 22. Most people were in their undergraduate or bachelors
program in one of the above mentioned departments.

 Daraz. Being one of the most pioneer and popular online stores in Bangladesh,
Daraz.com.bd offers a broad range of products starting from electronics, fashion, home
appliances, kid's items, décor, beauty and health and much more. ...
 Evaly. ...
 Chaldal. ...
 Rokomari. ...
 PriyoShop. ...
 Othoba. ...
 AjkerDeal. ...
 Pickaboo.
Being one of the most pioneer and popular online stores in Bangladesh,
Daraz.com.bd offers a broad range of products starting from electronics,
fashion, home appliances, kid’s items, décor, beauty and health and much
more. You can shop via multiple methods as Cash on Delivery, Payment via
Swipe on Delivery (Currently available in Dhaka), Credit / Debit cards, bKash
or Mobile Banking and Internet Banking. Kaymu.com.bd has recently merged
with Daraz.com.bd.

Daraz.com.bd delivers the ordered product within 2-4 days inside Dhaka and
5-8 days outside Dhaka. If you are not satisfied with your product, you can
even return it within 7 days from the delivery date. Of course, not all the
products are returnable. You can always check the list of products that are
eligible to return.  You can also get instant cashback offer if you buy through
bKash.
Findings and discussion
4.1. Demographics of the respondents
The respondents were categorized into several factors, such as gender, age, occupation, income.
4.1.1. Gender
Among the respondents, we found 62.5% were male, and 37.5% were female (see Table 6).
4.1.2. Age
From Figure 1, we can interpret that majority of the respondents were below 36 years old. 19%
male respondents were below 20 years old, 25% between 20–25 years, 30% between 26–30
years,
17% of 31–35 years and 9% of male respondents were 36 or more years old. Whereas 18.33%
female respondents were below 20 years of age, 35% between 20–25 years, 28.33% between
26–30 years, 13.34% of 31–35 years and only 5% female were 36 or above years old.

4.1.3. Occupation
In case of occupation, 46.88% of them were students, 28.13% of them were service holders,
13.12% was homemakers, and the rest of them were doing business (see Figure 2).
4.1.4. Income
From Figure 3 we can see that nearly 54% interviewees’ average monthly income fall into
Tk.
0–10,000 categories, 15.62% respondents’ monthly income was into Tk. 10,001–20,000,
14.38%
earn Tk. 20,001–30,000, and 16.88% of the interviewees have more than Tk. 30,000 income per
month.
4.1.5. Experiences of online shopping versus online shopping frequencies
About 41.88% of the respondents have less than 0–1 years’ experience of online shopping,
36.25%
of them have 1–2 years’ experiences, 14.37% of them have 2–3 years’ experiences and 7.5% of
the
respondents have experiences in online shopping for more than 3 years. Among thos
Reasons for choosing online shopping
Both male and female respondents assured that there are specific reasons for choosing online
shopping. 38.75% respondents (26.25% male, 12.5% female) mentioned saving time is their
primary reason for choosing online shopping and about 29.38% of the interviewees prefer online
shopping because of availability of the varieties of products. Nearly, 19% of the respondents
prefer
online shopping because product comparison is much easier for online shopping and 13.13%
choose for a comfortable reason (see Figure 6).
Time-saving and available varieties of products are the main grounds for shopping online. All
these four factors motivate an online shopper to buy over the Internet. Therefore, companies
should design strategies and develop varieties of products to attract and retain online shopper.
This findings also confirm the findings of Gong et al. (2013) and Hoque et al. (2015), where the
respondents found to adopt e-commerce for the usefulness.
4.1.8. Preference for product/service
While respondents were asked to know about the offered goods and services, 33.75% of the
respondents preferred Apparels (21.88% male and 11.87% female) and accessories 32.49

Recommendation
Daraz is a very well systemized company but still I have observed some problems in their
strategies during my internship period. As all the software and other important things are
getting changed the working speed is getting hampered. Training sessions are going on in
Singapore and Malaysia. So I think the power of some decisions should be allocated to the
local team so that they can modify immediately. As, the business is spreading rapidly all over
Bangladesh, I think they should set up offices in the divisional cities like Sylhet and
Chittagong, that would be very efficient for them. They make too many changes within the
department which is another problem in Daraz Bangladesh, and I have seen a lot of changes
during my three months in Daraz Bangladesh which really makes the situation unsteady.
Another major problem is, they have so many sellers which is quiet impossible for their
employees manage all the sellers appropriately. They should recruit more people in their
organization if they want to make it more efficient.

Conclusion
Daraz Bangladesh has seen inherent prospect in the Bangladeshi e-commerce market. This is
the high time to enter into the market and establish itself as a key player in this market. There
are some challenges like the delivery system and these will be sorted out soon.
Darazpreparingthemselves to expand their activities outside Dhaka as well. Now they are
mainly focused on capital city Dhaka. But gradually they are launching their new braches
outside Dhaka. Which will actually improve the rural thinking about marketing and
technology as wellpeople in rural area will get the idea about online shopping which will
actually improve their skills regarding online browsing and digital marketing. Thus they will
get one step forward of the vision “Digital Bangladesh” initiated by our honorable Prime
minister. One important thing is, at this time it is not only Daraz who is tapping into the
market. A lot of other businesses are as well. So in the future, we hope to see better growth of
the e-commerce sector with better infrastructure and other businesses catering to this sector.

References:

Md. Mohiuddin (july 2014) 'Overview the E-Commerce in Bangladesh.’ Business and
Management, 16(7), pp. 01-06 [Online].

Rocket Internet | We build companies. (2016). Rocket-internet.com. Retrieved 26 August 2016,

from https://www.rocket-internet.com/
Online Shopping Bangladesh: Electronics, Fashion, Mobiles at Daraz.com.bd.(2016). Daraz
Bangladesh. Retrieved 26 August 2016, from http://www.daraz.com.bd

Valarie A Zeithaml, Mary Jo Bitner, Dwayne D Gremler, Ajay Pandith, Service Marketing, 5th

Edition, New Delhi, Tata McGraw Hill Education Private Limited

Business Achiever. (2013, March 08). Retrieved December 16, 2017, from Business Achiever:
https://www.business-achievers.com/news/general/online-offline-marketing