MR Final Report - Group 2, C1

RUNNING HEAD: LEVI’S STRAUSS & CO.
LEVI’S STRAUSS & CO.
Submitted To: Dr. Saad Shahid
Submitted By: Group 2
Aleena Noor
Areeba Amjad
Faizan Yaseen
Mohammad Waleed Bin Amer
Section: C
Date: 30/11/2020
LEVI’S STRAUSS & CO. 2
Table of Contents
Executive Summary ...................................................................................................................... 4

Introduction ................................................................................................................................... 5
SWOT Analysis........................................................................................................................... 6
Competitor Analysis.................................................................................................................... 7
Problem Definition ........................................................................................................................ 9
Management Decision Problem ................................................................................................ 11
Marketing Research Problem .................................................................................................... 11
Research Questions ................................................................................................................... 12
Hypotheses ................................................................................................................................ 12
Research Design .......................................................................................................................... 13
Exploratory Research ............................................................................................................. 13
Secondary Research ............................................................................................................... 13
Focus Groups ......................................................................................................................... 17
Focus Group Analyses ........................................................................................................... 18
Interview ................................................................................................................................ 23
Descriptive Research ............................................................................................................... 24
Sampling Process and Sample Size ....................................................................................... 24
Instruments ............................................................................................................................ 25
Quantitative Analysis.................................................................................................................. 26
Demographic Analysis ............................................................................................................ 26
Analysis of Independent Variables ........................................................................................ 27
Time Saving ........................................................................................................................... 27
Convenience .......................................................................................................................... 28
Perceived Usefulness ............................................................................................................. 29
Website Features.................................................................................................................... 31
Security .................................................................................................................................. 31
Online shopping behavior ...................................................................................................... 32
Overall Questionnaire Analysis ............................................................................................. 33
Regression Analysis and Findings ............................................................................................ 34
Regression Equation .............................................................................................................. 34

Discussion..................................................................................................................................... 36
Recommendations and Conclusion ........................................................................................... 38
References .................................................................................................................................... 40
Appendix ...................................................................................................................................... 43
Appendix A .............................................................................................................................. 43
Online Shopping Behavior .................................................................................................... 45
Time Saving ........................................................................................................................... 48
Website Features.................................................................................................................... 49
Security .................................................................................................................................. 51
Convenience .......................................................................................................................... 51
Perceived Usefulness ............................................................................................................. 53
Appendix B .............................................................................................................................. 56
Demographic ......................................................................................................................... 56
Co-efficient ............................................................................................................................ 58
Appendix C .............................................................................................................................. 59
Appendix D .............................................................................................................................. 61
Appendix E .............................................................................................................................. 62
Appendix F ............................................................................................................................... 63
Focus Group 1 ....................................................................................................................... 63
Focus Group 2 ....................................................................................................................... 74
Appendix G .............................................................................................................................. 82
Executive Summary
This study set out to analyze the relationship between motivations to shop online as time
saving, convenience, website features, security and perceived usefulness and online shopping
behavior of consumers. The study employed surveys, focus groups and questionnaires in order to
determine the importance of these variables while choosing a method to shop. Regression
analysis was run after collecting 276 responses and it was discovered that all five variables have
a significant relationship with online shopping behavior. Interviews and focus groups also
supported this analysis as consumers started showing an inclination towards online shopping
since the advent of COVID.

Introduction
In 1853, inception of Levi Strauss & Co. took place after Levi Strauss realized that there
was a need for pants for workers that could survive the rougher conditions of industry work.
Along with Jacob Davis, who was a tailor, he created their very first jean. It was a dry goods
business on a wholesale level headquartered in San Francisco. Their very first U.S. patent was
for “waist overalls”, which they received in 1873. In 1890, their first product-line was
named“501”, same as a lot number (Vault, 2020). Pioneer in American apparel, Levi Strauss
& Co. has the formula of jeans in its DNA. A global clothing brand and manufacturer, Levi
Strauss sells not only jeans but also sportswear under its Levi’s, Signature, Dockers by Levi
Strauss, as well as Denizen labels in over 110 countries. The distribution of brand products is
done through 900 company operated stores (COS) situated in more than 30 countries, and via 3rd
and 1st party online stores. 2/3 of the company’s revenue comes from the sale of Levi’s men’s
pants. In early 2019, company issued IPOs (again) and raised $625 million. Although the Haas
family “descendants of founder Levi Strauss” still has majority of ownership. (Vault, 2020)
The facilities regarding manufacturing, distribution and finishing of goods in operated in
USA, Europe, and Asia/pacific regions. The segment contribution to the company’s revenue
from America, Europe, and Asia is 55%, 30% and 15% respectively (Vault, 2020). In Pakistan,
Levi’s opened its first global store in Karachi, at Dolmen Mall, Clifton.
Although the company first came to Pakistan in 2002, and had several stores customized for
domestic (Asian) market. (Qamar, 2012) Levi’s is operating in Pakistan from several major cities
like Islamabad, Karachi, Lahore, Bahawalpur, Rahim Yar Khan, Rawalpindi, Peshawar and
Faisalabad.
SWOT Analysis
Strengths Opportunities
Strong Brand Name and popular top of the Growth in casual-wear market
mind brand awareness
Expertise in Jeans Industry Low costs associated with manufacturing and
production in Pakistan
Global Outsourcing and Distribution Channels Increasing trend of accepting western wear
around the globe
Access to International Capital and strong
Finance
Has over 470 self-operated stored globally
managed by 16000+ employees
Levi’s marketing includes retro popular songs
in its TVC ad campaigns

Over 60 manufacturing plants in US and 25
abroad
Weaknesses Threats
High Pressures of Brand Protection Fast changings in consumer tastes
Increasing competition means limited scope Increasing competition from local and
for growth domestic brands, and Product Substitution
Competitor Analysis
Due to the uniqueness and good quality of their products, Levi’s has made their name
memorable. Levi’s jeans are preferred by every man in Pakistan and the brand is well-known for
its wide variety of denim jeans, i.e. jeans collection including regular taper fit, informal straight,
boot cut and comfort fit. (Moderator, 2020)
Wrangler is a popular brand among both genders in Pakistan, especially their denim jeans
that has a unique W sign on the backside. (Moderator, 2020) It is one of the major competitors of
Levi’s, though there is only one physical outlet of Wrangler in Pakistan, situated in F-7 Markaz
Islamabad.
Generally recognized for its bed sheets and household products, Chen One is a well-known
brand among Pakistanis. Recently, Chen One has increased their product portfolio by introducing
western styled denim jeans of good quality for both genders. (Moderator, 2020)
Diesel, a renowned global brand for its high quality denim jeans and other products, is
providing little competition to Levi’s. Since it has only one outlet operating from Lahore situated
in Packages Mall. Its repute is well-known for its good looking and charming jeans around the
world (Moderator, 2020)
Known for its up-to-date trendy clothes, Mango is one of the best brands for fashion. Their
jeans are known for their good sizes, slimming impact (of skinny jeans), and comfort. Mango is
giving quite a competition to Levi’s, especially during their sales season. (Moderator, 2020)
The very first store was opened in Lahore by Pepe Jeans London, and then another one in
Karachi. Providing a wide variety of clothes, ranging from formal to casual wear and also for
special events or work outfits. Their quality is excellent and prices are competitive, and it is a
competitor for Levi’s. (Moderator, 2020)
Indirect competitors of Levi’s are local manufactures; those that have tons of experience
and knowledge regarding the location. Major competitive advantage of any local company is the
cheap labor prices. Sometimes government incentives promoting local manufacturing can be a
competitive advantage for local companies. (UKEssays, 2020) Some of the local brands giving
indirect competition to Levi’s are Outfitters, Breakout, Engine, Charcoal, and Cougar. Online retail
stores are potential competitors e.g. websites like export leftovers are providing indirect
competition to Levi’s.
Problem Definition
Online shopping trend has risen since 2014 in Pakistan. People have increasingly preferred
to shop online, hence the increase in online buying from food stores on Foodpanda and Cheetay,
shopping from online grocery stores like grocers, and large number of online retail shopping stores
on daraz.pk. The expected e-commerce revenue of Pakistan in 2020 is around $1 billion.
Internet penetration has played a major role in increasing online shopping in Pakistan. With
3G and 4G internet easily available on smartphones, mobile internet users have increased
drastically in the last ten years. Cheap and affordable internet packages have made it possible for
people to access brands and companies online quite easily. There are about 55.4 million users
using high-speed internet in Pakistan, with 78% of them belonging to the age bracket of 18 to 27
as of December 2019.
Online shopping has risen exponentially all around the world in last few years, and Pakistan
has seen the same trend. The main reason for the boom in online shopping is the increase in safe
home delivery option in retail and food. Several online platforms have given the much needed
push to the consumers for online shopping in Pakistan, i.e. Amazon, Alibaba, Daraz, Getnow and
Shopon.pk among some others. They can now get their orders on their doorstep just by clicking a
button on the website, without needing to go out themselves.
Money spent by Pakistanis Mode of transaction Year
50% of all transactions Smartphones 2019
Rs. 9,695 per person (average) Mobile phone spending 2019

Rs. 9,164 per person (average) Offline payment 2019
Rs. 14,510 per person (average) Apple iOS users 2019
Rs. 7,467 per person (average) Android users 2019
Online purchases Made by men 59%
Online purchases Made by women 41%
Online shoppers in Pakistan (average) 25 to 34 years of age 56% online shooters
Average order value online In December Rs. 9,645
Average order value online In November Rs. 9,096
Average order value online In October Rs. 8,412
In the research report published by Picodi.com, information about spending amount by
Pakistanis, devices used, and the change in activity over the year is mentioned. As per the report’s
analysis, the popular segments in Pakistan for online shopping are:
1. Clothing,
2. Culinary,
3. Grocery,
4. Electronics,
5. And travel.
Top Online Stores in Pakistan
Sr. No. Online Company Revenue in 2019
1 Shopon.pk 35 million USD
2 Daraz.pk 32 million USD
3 Amazon.pk 22 million USD (279% growth in comparison to 2018)
Levi’s has been experiencing a decline in sales as compared to its competitor brands especially
in the COVID period. Where many brands have tried to counter sales by going online. Levi’s
could not generate sales due to the absence of an online platform. It closed down 30 or 32 stores
and on the other hand rivals lie Outfitters generated 2 or 2.5 crores daily via e-commerce
platforms.
Management Decision Problem
Should Levi's Pakistan introduce an e-commerce store to improve its sales?
Marketing Research Problem
To determine the shift of consumer preference towards online buying in Pakistan.

Research Questions
1. Do website features, time saving, perceived usefulness and convenience offered by online
shopping motivate consumers to shop online?
2. Is security of information a concern that inhibits consumers from shopping online?
Graphical Model
Hypotheses
H1: There is a significant relationship time saving and online shopping behavior
H2: There is a significant relationship between convenience and online shopping behavior
H3: There is a significant relationship between security and online shopping behavior
H4: There is a significant relationship between website features and online shopping behavior
H5: There is a significant relationship between perceived usefulness and online shopping
behavior
Research Design
The research employed both descriptive and exploratory research techniques. Exploratory
research included conducting focus groups so as to gain consumer insights, while survey
questionnaire was a part of descriptive research. The questionnaires were distributed online and
were self-administered. Both researches helped us in identifying consumers’ online shopping
behavior.
Exploratory Research
Secondary research, interview and focus groups were the techniques used in our exploratory
research. Secondary research was carried out to better understand the contextual consideration
of the marketing research problem and to analyze and select the variables for this research. Focus
groups helped us gain additional consumer insights and interviews also broadened our
knowledge base for the problem at hand.
Secondary Research
Time Saving
(Settle and Alreck, 1991) define perceived time pressure as the degree to which one
finds oneself lacking time. These pressures are seen to arise from two sources, one being
personal and the other situational. By restricting consumers’ ability to search and process
information, time pressure influences judgements (Park, Iyer, and Smith 1989). (Bellman et
al., 1999) studied relationships amongst attitudes towards internet shopping, personality
characteristics and demographics and concluded that individuals interacting with internet
and those with a high-tech lifestyle tend to frequently shop online. People with time
constraints are inclined towards online shopping.
Shortage of time that results from career progression instills a busy life and hence
consumers start searching for easy shopping options (Bhatnagar et al., 2000). Since
consumers place equal importance on saving time and energy, they use internet to derive
efficiency by saving both (Kaltcheva and Weitz, 2006). Online shopping, therefore, offers a
relief to time starved consumers and they place highest importance with it (Beauchamp
and Ponder, 2010). . This can also be an inhibiting factor for online shopping where
consumers need to be patient when delivery takes time and so consumers need to plan
ahead of time. Even if regular online shoppers don’t plan ahead of time, they are less likely
to opt online shopping (Bosnjak et al., 2007)
Convenience
According to (Wang et al., 2005) convenience is one the most impactful factors related to
online shopping willingness. (Kim and Park, 2012), also state convenience as an important
dimension of online service. (Seiders et al., 2000) listed four opportunities where retailers can
provide convenience to customers namely search, transaction, access and possession. Easy
product searches with ample product information tend to increase convenience while shopping
(Berry et al., 2000). Ease in finding desired products and the minimum time spent while doing so
shapes search convenience for customers. (Berry et al., 2002) defined access convenience as
ease and speed with which consumers can reach a retailer. Online shopping saves travel time for
consumers (Bhatnagar et al., 2000) and is also accessible throughout the day (Hofacker, 2011).
(Beauchamp and Ponder, 2010) stated that ease and speed with which consumers amend or can
effect transactions. Online shopping does not require customers to queue and wait to process
transactions (Wolfinbarger and Gilly, 2001). Possession convenience refers to convenience
customers are offered while getting the possession of the purchased product. (Beauchamp and
Ponder, 2010) defined it as the ease and speed with which consumers obtain their desired
products. The transaction dimension also relates to consumers perceived notions about effort and
time costs expended in desired product possession (Ling et al., 2013). Online shopping relieves
customers of the physical labor associated with offline retail shopping, hence ensuring
convenience.
Website Features
According to (Than and Grandon, 2002) website features and design is quite crucial for
online retailers. They help describe the appeal that is generated for customers via user interface
design (Kim and Lee, 2002). Website features that ensure ease of search and easy navigation
facilitate the searching products and purchase process (Chung and Shin, 2010). It enhances the
possibility of repurchasing by increasing the perceived usefulness of online shopping (Ladhari
and Lecrec, 2013). It also tends to reduce the mental and physical effort expended by shoppers
which leads to a high customer satisfaction and online shopping intention of clothing shoppers.
(Cho and Park, 2001) in one of their studies examined that customer satisfaction is assessed
using the quality of website design and its features. A recent study also concluded that online
retailers predict customer quality judgement, loyalty and satisfaction by website features.
Security
Security refers to the threat of a personal and financial information breach. Research has
shown that security issues related to financial and personal information remains a top concern for
online shoppers (Miyazaki and Fernandez, 2001). This concern us the highest when the
population of a country has just been introduced to the opportunity of e-commerce (Muhannad
and Ahmed, 2014). Consumers are inclined to buy services and products from retailers they trust
(Chen and Hee, 2003). The trust placed on these retailers can affect the failure or success rates
(Prasad and Aryasri, 2009).
Security is a big concern that inhibits individuals from shopping online (Laudon and
Traver, 2009). Consumers think that online retailers might misuse their personal information
especially their credit card information (Comegys et al., 2009). To address these security
concerns online retailers tend to employ various security enforcement principles, such as
verification, encryption and encryption (Chellappa and Pavlou 2002). This helps protect
consumer data from being modified or viewed and makes sure that appropriate entities get access
to consumer data. Many customers are not satisfied by security mechanisms as they think that
they are not strict enough to protect their confidential information (Knezevic and Jakovic and
Strugar, 2014). Security tends to be critical as buyers would not make purchases as there are
uncertainty perceptions attributed to the risk of security (Pavlou, 2007).
Perceived Usefulness
According to (Peng, et al., 2007) perceived usefulness significantly and directly
influences the decision to adopt online shopping. Perceived usefulness refers to the level to
which an individual believes that a certain specific technology is increasing the task performance
(Davis, 1989; Liao, To, & Liu, 2013). It also refers to the degree to which online shoppers
believe that a certain website can increase value and efficacy while purchasing products online
(Hu et al., 2009; Lai &Wang, 2012). The effectiveness of website such as technological features
that help individuals finding goods also adds to the perceived usefulness (Kim & Song, 2010).
Consumers tend to think that online shopping saves time while shopping hence adding to
perceived usefulness (Guritno & Siringoringo, 2013). Perceived usefulness here refers to the
general perception of consumers regarding internet technology that promotes the consumer’s
intention to purchase.
Online Shopping Behavior
As described by (Chiu et al., 2009), Online Shopping is an exchange of effort, money and
time for receiving services or products. Online Shopping Behavior pertains to one’s perception
and evaluation relative to services or products while online shopping. It refers to the process of
purchasing services or products online. The steps involved in online shopping process is similar
those employed in traditional offline shopping (Liang and Lai 2000). Consumers recognize a
need, search for information over internet, evaluate alternatives and choose a product/service
which they perceive to be the best fit for their needs and finally a transaction is made.
Focus Groups
Two focus groups were conducted with 11 and 10 participants respectively to gain
consumer insights regarding attitudes towards online shopping. These focus groups were
conducted on Zoom and spanned up to an average of forty five minutes. Both focus groups had
mixed representation of genders and included respondents aged above 18 who shop online. The
SEC classes involved were A and B. Objectives of the research helped us in drafting questions
for the focus group. This process resulted in the formulation of a moderator’s guide which helped
us initiate discussion and probe the respondents. The focus groups were conducted on Zoom and
every participant was given a specific participant number prior to the discussion. This helped us
identify the respondents while analysis. For certain questions, the respondents were asked to
answer in a sequence, either from P1 to P10 or from P10 to P1, however for certain questions we
randomly selected participants to answer the questions but made sure we questioned everyone. A
consent form was filled by each participant before agreeing to be a part of our focus group. The
focus groups were audio and video taped which allowed us to analyze them afterwards.
Focus Group Analyses
The purpose of focus groups was to gain insights about consumers’ attitudes towards
online shopping and if their shopping behaviors changed during COVID, if so, how were their
experiences while shopping online and were there any differences in their past pre-COVID
shopping behaviors and present shopping behaviors.
Focus Group 1
No. of FGD 1 No. of Participants 11
Date 10/11/2020 Duration 6:35 to 7:22
Moderator M. Waleed Facilitator Areeba Amjad
Recorder Faizan Yasin Transcriber Aleena Noor
This focus group conducted on November 10, 2020, proved to be very insightful where
participants shared their experiences, concerns and views about the developing e-commerce in
Pakistan, especially its intrusion into apparel industry. Majority of the participant were avid users
of e-commerce platforms to carry out their purchases as for them it was much more convenient for
them and plus a way more efficient means of shopping. Though all the participants, especially
participants 3, 5, 8 and 9 were of the view that there should be a separate board or an identity that
verifies the authenticity of the products that are present on the websites so that people can be saved
from scams and online fraud. It became evident through the participants’ responses that people in
Pakistan are getting more inclined towards the trend of online shopping but are reluctant to spend
above a certain budget as their major concern was not getting scammed. Another insight that was
quite evident that, even though people have positive attitude towards E-stores but companies and
businesses running those e-stores need to do extensive marketing since majority of the participants
were not aware of e-stores, though only in major urban cities like Karachi, Lahore and Islamabad.
There lies a lot of potential all across the country for online shopping through e-stores. All of the
participants agreed that had this pandemic of COVID-19 not occurred the push to the e-commerce
would not have happened in Pakistan as it was seen in the last 6 months. To capitalize on this
increasing trend businesses need to reshape and strategize their business models again by moving
forward towards digital online shopping to gain confidence of their customers by introducing
online delivery insurance and promote use of secure channels of transactions, i.e. services like
PayPal.
When participants were asked about their satisfaction level about the stock capacity and
capability of brands in regards to holding large influx of orders, many were satisfied with it but
few were of the view that its temporary and they need to work upon it, especially on the efficiency
of their delivery service and most importantly customer service, since it was just a phase, that was
a consequence of COVID and means to survive during the pandemic. Moreover, everybody
believed e-commerce is the future and hence they need to work upon it and develop a more fool
proof system with much more strong foundations (insured and scam protected
websites/applications) and proper inventory system. Pakistan has the potential to develop its e-
commerce industry to be one of the most profitable source of income from every field of work
especially apparel, all they need is good support from Government of Pakistan in facilitating and
providing secure channels not only to large businesses but to SMEs. By doing so individuals will
be less hesitant to shop online, helping business startups to reduce their costs resulting in increased
profitability that will uplift struggling economy of Pakistan. Furthermore, through better e-
commerce local market products can be pushed internationally increasing the supply of Pakistani
made goods across the globe.
In conclusion, the major issues identified by the participants were security of online
transactions, quality check of goods delivered online, easy accessibility of e-stores, and
countermeasures against online scams/frauds. Resolving these issues can result in better
experiences leading to customer satisfaction.
Focus Group 2
No. of FGD 2 No. of Participants 10
Date 11/11/2020 Duration 7:23 to 8:06
Moderator M. Waleed Facilitator Faizan Yasin
Recorder Aleena Noor Transcriber Areeba Amjad
The second focus group was conducted on November 11, 2020 for the purpose of getting
qualitative insights for our market research problem. Some participants shopped twice a week
while others did shopping once, twice or even thrice in a month. The inclination toward using
online platforms for grocery shopping was good as compared to apparel buying since there were
instances when the promised products were not delivered. Though online buying is on the rise due
to pandemic, but people still prefer physically going to the shop as per majority of the respondents.
The feeling of control over the buying process and mental satisfaction from checking the products
themselves, are the main reasons consumers prefer going to shops. Daraz.pk was used by majority
of the participants but the experiences were mixed. Some had bad experiences using Daraz.pk
while others had normal mostly in the case of buying cheap products. For expensive high
involvement products online buying was not preferred because of lack of trust in quality of the
delivered goods, insecure payment methods, bad complaint handling, and delayed deliveries.
Respondents bought miscellaneous products like charging cable, watches or accessories from
daraz.pk. Foodpanda was the preferred app for ordering food online. Export leftovers, Amazon,
Ali express, and Cheetay was also used by the participants while shopping online. Instagram was
also used to buy clothes from the start-up business, and branded clothes were directly ordered from
the websites of the brands like Outfitters. There is a huge potential for growth in e-commerce as
evident from the response of the participant that online sales have increased by 300% during the
pandemic due to COVID-19 lockdown restrictions. This trend can be utilized by businesses by
addressing the key issues mentioned by the respondents. Companies can capitalize this huge upside
potential by training their salesforce for handling complaints regarding online buying, quality
control checking system being implemented, better and secure payment method systems being
introduced in Pakistan i.e. services like PayPal, by keeping their websites up-to-date and delivering
quality products and service to gain customer loyalty. The companies practicing these have made
a name for themselves like Foodpanda, which has improved their quality far better than in the
previous years.
Overall Analysis
Pakistan is a developing economy that sustained and affectively battled the impact of global
pandemic namely COVID’19 with utmost zeal. Effective policy making, its implementation along
with timely taken preventive steps have played a major role in it. In terms of keeping the economy
on roll along with providing people with their necessities, e-commerce has played a major roll. It
has helped businesses from not going bankrupt and provided millions of people lively hoof in these
testing times. For apparel industry, even though few of the major high street brands had a small
scale E-store, it instantly became a necessity to improve or develop an E-store to stay up with the
competition and mainly stay in business. Through our focus groups we came to know that people
who weren’t very fond of E-stores (generic or company backed) did most of their purchases online
and believed that’s it most convenient and efficient compared to traditional way of shopping, for
most of the goods and especially cloths/ apparels. Non the less majority were of the opinion that
allot needs to be done to make the overall experience feel much more secure, fraud proof and
methodical. Couple of the respondents from both the focus group suggested that a board or
governing body should be made, which have experts of all the industries, mainly apparel, food and
beverage, automobile and technology to verify the product and its source and provided insurance
of delivery along with payment method so that there are less chances of fraud.
It’s the future for all businesses especially for apparel and home supply industry as majority
of the respondents used the services any kind of E-store for either of the two purposes if not both
at large. Pakistan has a huge potential to grow is this area and consumers are actively looking for
using such platforms and improvements in those that already exist. One thing that was quite evident
that masses are still unaware of the existence of such facilities as e-commerce
websites/applications a main target audience for brands have been people living in urban areas.
Therefore, companies should consider tapping into untapped areas as consumer at large open to
shift towards e-commerce platform and this will promote healthy competition and encourage
traditional business operators with brick and mortar model to shift towards digital platforms.
Interview
We interviewed Mr. Jawaad, a regional sales manager at Levi’s to gain additional
information about the company, competitors and consumers’ attitudes. Jawaad is an experienced
salesman with an experience of eight years in the retail industry.
Interview Analysis
As part of our primary research, we interviewed Mr. Jawad, District Sale Manager,
Levi’s Pakistan. He has been working with Levis from last 8 years and now is currently posted in
Islamabad-Rawalpindi region.
He told us various aspects of sales, operations, marketing and product placement along
with Levis standing in the local market amongst all the local brands and franchisee brands
operating in Pakistan I.e. outfitters, Breakout, River-stone, Next and Furor etc. Levis is the only
multinational brand, which works directly under its global head office operating in Pakistan. In
that regard there isn’t any direct competition to its operations till this date, but this doesn’t mean
that company ignores their presence.
Levis is categorically a denim store, whose main focus in Pakistan is on jeans and denim
jackets only. They have two types of models of stores here in Pakistan, franchise stores and
company owned stores. Company backed stores (mainline channels) are located in the main
locations all over Pakistan, i.e. Dolmen mall, Packages Mall, Centaurus, Giga mall, M.M Alam
road and Emporium mall. In company backed stores all variety of products is available compared
to franchise stores, where stock is kept in regard to the type of footfall that particular store has.
Along with Levi’s store, company looks after the operations of Denizen and Dockers.
In terms of standardization, Levi’s has multiple workshops conducted regularly where every
employee is being trained and given certifications along with recognitions for good performance.
Levi’s has its own internal matrix to calculate any store’s and salesperson’s performance. Few of
the main components for it are following:
1. UPT: unit per transection
2. Footfall conversion
3. ATV: Average transection value. Its calculated by multiplying AUR with UPT
Mr. Jawad told us that for 2020, company had plans of expanding its operations in others
cities, mainly on GT road, but had to them to halt due the unfortunate outbreak of Covid’19.
Sales and operations had severely affected due to the pandemic and they had to close 30-32
stores nationwide. We think that one of the major factors contributing to the low sales volume
for the second and third quarters of 2020 are the lack of E-presence of Levi’s and les variety and
categories available at Levis Pakistan. He himself mentioned that through E-commerce outfitters
had turnover of Rs.20-25 million/day.
Descriptive Research
To carry out descriptive research, survey questionnaires were administered online.
Sampling Process and Sample Size
The target population of our study were individuals in Lahore who use internet to shop
online. There were no specifications in terms of gender. Educated people with a know-how of
technology were considered as compared to uneducated people. The respondents are individuals
who opt for online shopping and can be frequent buyers or non-frequent buyers, where frequent
buyers are those who shop online monthly, weekly or daily whereas non-frequent buyers are
those who bought products/services online once in six months, or once in a year. This
classification was done with alliance to a research article by (Michael and Eva, 2014)
Responses were gathered from a random sample using convenience sampling. The
sample size for this research was 276. This is in alliance with research article by (Shafique et al.,
2002).
Instruments
The theoretical framework of this research consists of six variables. Each construct is
measured via various items. Previous studies and researches were used and adapted.
Convenience consists of five items, time saving and security consist of three items, website
features contains four items and all these variables were adapted from (Ganapathi, R, 2015).
Perceived usefulness and online shopping behavior contain eight items and were adapted from
(Rehman et al., 2019).
(Malhotra and Dash, 2006) defined scaling as the process of assigning and measuring
objects to numbers according to certain specified rules. The scaling technique used in this
research is a Likert Scale. Likert scale is a non-comparative scale where respondents express a
positive or negative attitude towards the object of study. We chose five levels of agreement,
1: Strongly Disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly Agree
The 5 point Likert scale is suggested by researchers as it helps minimize the frustration of
respondents and therefore increasing response rate and quality (Sachdev & Verma, 2004). The
scale was tested for validity and reliability by using SPSS.
Quantitative Analysis
Demographic Analysis
The analysis is based on the results of 276 responses that were collected. The
questionnaire was filled by 48.4% men and 51.6% women. This questionnaire was distributed
amongst online shoppers living in Lahore.
The questionnaire was distributed amongst various age groups, Below 18 involves
students and are financially dependent on their families. The age group 18 – 25 represents
students and graduates who may or might not be financially dependent and are independent in
making choices for themselves. The age brackets are financially dependent and shop for
themselves. Results indicate that 5 (1.8%) respondents fall in the age bracket “Below 18”, 133
(48.4%) in “18 – 25”, 61 (22.2%) in “26 – 35”, 68 (24.7%) respondents fall in the age bracket
(36 – 45) and only 8 (2.9%) fall in the “Above 45” category.
When talking about household income, we see that the data is skewed towards the
income bracket “200,000 – 300,000”, 82.2% respondents claimed that their household income
lies in this income bracket. 7.3% respondents had a household income “Above 300,000”. Only
7.6% respondents had a household income between “100,000 – 200,000” and 2.9% had a
household income “Below 100,000”.

76.4% respondents had a Bachelor’s degree and 17.8% had a Master’s. 1.8% respondents
had completed their “O levels/ Matric”, 2.2% had completed their “A levels/Intermediate” and
only 1% had a Postgraduate degree.
Upon asking the frequency of online shopping, 45.1% of our respondents shopped online
at least once a month, 39.3% of respondents shopped at least once in six months, 10.5%
respondents shopped online weekly. Whereas 4.4% respondents said they shop once a year via
Internet and only 1 respondent said he/she shopped online daily.
Analysis of Independent Variables
Time Saving
Time Saving tends to be a motivating factor for consumers who prefer online shopping. It
refers to online shopping saving time for consumers under a time pressure. 67.3% agreed that
they shop online because it takes less time as compared to traditional shopping when it comes to
evaluating and selecting a product. 22.9% respondents strongly agreed to this statement. 6.5%
responded neutral whereas 2.2% respondents disagreed to the statement and only 1.1% strongly
disagreed to the statement. This shows us that majority of people prefer shopping online as it
saves time. There is no specific reasoning for respondent’s disagreement to the statement that
online shopping takes less time in product evaluation and selection as the questionnaire was self-
administered and closed ended. However the data is inclined towards agreement and therefore
we conclude that online shopping does take less time in evaluation and selection of products.
When asked about consumer’s inclination towards online shopping because it takes less
time to purchase, 50.9% strongly agreed and 41.1% agreed that online shopping does take less
time to purchase. 4.4% had a neutral response, whereas 2.9% disagreed and 0.7% strongly
disagreed. Online shopping for the respondents falling in the neutral, disagree and strongly
disagree might be non-decisive and take up a lot of time while purchasing products. Various
factors can contribute to their purchase decision. The results for this particular question depict
that consumers do shop online because they think that it takes less time as compared to
traditional shopping.
49.5% agreed that online shopping does not waste time as compared to traditional
shopping. 43.3% strongly agreed with this statement that shopping online does save time as they
do not have to visit a retail store and wait for parking the car. 4.5% were neutral to the statement
whereas 3.3% disagreed. The results show that consumers do prefer shopping online as it doesn’t
waste time.
Convenience
65.5% respondents strongly agreed that they can shop products online anytime during the
day. 23.3% agreed with the statement. 6.5% remained neutral, we can assume that they might not
have tried shopping any other time else than the business hours. 2.5% respondents disagreed
whereas 1.1% strongly disagreed with the statement. The choice of products here might be
unusual for the respondents who disagreed. Overall, we can state that consumers do shop online
as they think online shopping allows them to buy products anytime during the day.
46.2% respondents strongly agreed that ample product information is available online and
47.3% agreed with this statement. 4.7% remained neutral and 1.8% respondents disagreed. This
can be attributed to the kind of product chosen by these respondents, when it comes to clothing
sufficient information about quality, price and size is mentioned. We can infer that consumers
shop online as they think that sufficient information is present with online retailers.
When asked about the ease of comparison with other products, 80.4% respondents
strongly agreed and 11.3% agreed. 2.2% respondents disagreed and said that it is easier to
compare products in traditional shopping and 0.4% disagreed with the statement. There is an
obvious inclination towards the agreement side, hence we state that online shopping does provide
consumers with the ease of comparison of products.
46.5% respondents agreed that it is easier for them to find the right product online.
Online navigation and search allows them to easily search and evaluate desired products. 45.5%
respondents also agreed to the statement. 5.1% respondents remained neutral and 2.9% disagreed
with the statement.
38.2% people responded neutral, this might be due to the fact that they got certain
products delivered on time but not all. 45.1% respondents strongly agreed that online shopping
does ensure timely delivery of products/services. 2.9% respondents disagreed with the statement
and 1.1% strongly disagreed with the statement. The overall inclination rests towards agreement
side and hence we can infer that online shopping ensures timely delivery of products and is a
reason why customers choose online shopping methods.
55.6% respondents strongly agreed and 35.6% respondents agreed that online shopping
helps improve their performance. 5.8% respondents were neutral to this and we can assume that
they are not aware of how shopping performance can be measured. 1.5% of the respondents
disagreed and strongly disagreed with the statement. We can therefore say that online shopping
does help consumers improve their performance in shopping activities.
When asked about the control online shopping offers to consumers, 49.8% strongly
agreed and 42.5% agreed with the statement. 3.3% respondents were neutral to this statement
and we can assume that they are indifferent to the degree of control. 1.5% respondents disagreed
and 1.1% strongly disagreed.
There was an inclination towards agreement when asked does online shopping make the
shopping process easier, 66.5% respondents strongly agreed and 20.4% agreed with the
statement. 9.8% respondents were neutral and 2.5% disagreed with the statement.
When asked about online shopping helping in improving the quality of the shopping experience,
49.5% respondents agreed and 45.1% strongly agreed. 1.5% respondents disagreed with the
statement and after seeing the results, we can say that online shopping does help in improving
the quality of shopping experience.
46.2% respondents strongly agreed and 46.5% agreed that online shopping is cheaper as
compared to traditional shopping methods. 1.8% respondents however disagreed with the fact.
The overall inclination lies towards the agreement side and hence we can say that consumers do
think that online shopping is cheaper as compared to traditional shopping.
When asked if online shopping is useful for shopping activities, 48.4% respondents
agreed and 47.3% respondents strongly agreed. 2.2% respondents were neutral while 2.2%
disagreed with the statement. We can therefore conclude that consumers think that online
shopping is useful for shopping activities.

When asked about online activities helping in enabling quick transactions, 48.4%
respondents strongly agreed and 45.1% respondents agreed with the statement. 3.3% respondents
disagreed and 0.7% participants strongly disagreed. The overall results suggest that consumers
think that online shopping does help enable quick transactions.
Website Features
A question was asked regarding whether the websites design helped the customers in
searching the products more easily or not. Almost all the participants agreed to the statement
with having 82.2% respondents strongly agreeing and 7.3% agreeing to this claim.
Another question was asked regarding whether the layout of the website helped the
customers in searching and selecting the right product, 52.4% participants strongly agreed to the
statement and only 1.8% of them disagreed. Thus meaning customers like the website to be user
friendly and provide easy to understand and comprehend navigation.
Lastly talking about the customer’s preference, whether they preferred purchasing from a
website that provides safety and ease of navigation, 73.5% participants agreed to this and only
0.4% disagreed. And in regards to their preference on buying from a website which provides
quality information, 43% agreed and 46.2% strongly agreed with the statement.
Security
The question was asked regarding customers finding online shopping as a means of
protecting their security, 52% of them strongly agreed whereas 29.8% of them remained neutral
on the topic. This suggests a discrepancy in views of consumers, where some place high amount
of trust in online retailers, others do not think so or are indifferent to the protection of personal
and financial information.
The following question aimed on asking whether customers felt safe and secure while
shopping online, the results were quite positive with 48.7% strongly agreeing and 41.5%
agreeing with the statement.
The next question indicated towards whether customers like to shop from a trustworthy
website and 81.8% of the respondents strongly agreed to the statement and the remaining 9.5%
agreed. This shows that consumers do prefer a secure website while shopping online.
Online shopping behavior
On asking the respondents whether they found the internet as an easy option for shopping
online, almost all the participants agreed to this, approximately 51% of the participants strongly
agreed, and 40.7% respondents agreed. With only 2.5% respondents disagreeing with the
statement.
When further asking the respondents whether leaving their home was the main reason for
them opting for online shopping, 46.5% respondents agreed to this and 43.3% respondents
strongly agreed to this being the major factor. And only 1.1% of the respondents strongly
disagreed.
49.5% participants strongly agreed on getting detailed product information online when
shopping online, thus wanting them to make use of the option as well. 37.5% participants were
however neutral to the following statement and only 0.4% of the respondents strongly disagreed.
When talking about the fact whether or not shopping online gave customers a broader
selection of products online, 37.5% respondents strongly agreed, 55.3% respondents agreed and
only 0.4% of them strongly disagreed. Thus stating the obvious that shopping online did mean
having room to a much wider product selection.
A total of 45.5% respondents claimed that online shopping gave a facility to easily
compare prices between different products and outlets. 46.9% agreed and only 1.8% disagreed to
the statement.
Overall Questionnaire Analysis
After looking at the findings presented above, we can conclude that online shoppers do
prefer online shopping as it saves them time, as 50.9% respondents agreed that shopping online
takes less time to purchase products.
Convenience in terms of search, transaction, access and possession is also crucial and is a
motivating factor while shopping online. 66.5% respondents agreed that online shopping
provides convenience as they can buy products at any given time during the day and 46.5%
respondents agreed that online shopping helps them in finding the right product online.
Website features of the particular online retailer do matter a lot as consumers prefer
shopping from websites that offer ease of search and navigation. 82.2% respondents said that
they prefer shopping online because website features help them search the products rather easily
and 73% agreed that websites help ease the process of navigation and ordering.
Security also tends to be a crucial factor when shopping online, because 81.8%
consumers agreed that they would shop online from websites that appear trustworthy and 48.7%
respondents who already shop online said that they think their current online retailers do protect
their confidential information.
Consumers do think that online shopping adds to perceived usefulness in the shopping
process. 49.8% respondents said that online shopping helps them have a greater control over
their shopping activities as compared to traditional shopping and 48.4% respondents agreed that
online shopping helps them enable their transactions easily and quickly as compared to
traditional shopping.
Regression Analysis and Findings
Regression Equation
Online Shopping Behavior= 0.235 + 0.449 time saving + 0.196 website features + 0.019
security + 0.265 convenience + 0.42 perceived usefulness
Regression equation is used as a means to statistically analyze the link and relationship
amongst the dependent and independent variables.
Time Saving
A one unit change in time saving will have a 0.449 positive change in online shopping
behavior, keeping all else constant. Thus showing a positive relationship between the dependent
and the independent variable. Hence we accept the hypothesis that time saving does have a
significant relationship with online shopping behavior.
Website features
Furthermore, a one unit change in website features will have a 0.196 positive change in
online shopping behavior, keeping all else constant. Thus showing a positive relationship
between the dependent and the independent variable. Hence we accept the hypothesis that
website features do have a significant relationship with online shopping behavior.
Security
Moreover, a one unit change in security will have a 0.019 positive change in online
shopping behavior, keeping all else constant. Thus showing a positive relationship between the
dependent and the independent variable. Hence we accept the hypothesis that security does have
a significant relationship with online shopping behavior.
Convenience
Likewise, a one unit change in convenience will have a 0.265 positive change in online
shopping behavior, keeping all else constant. Thus showing a positive relationship between the
dependent and the independent variable. Hence we accept the hypothesis that convenience does
have a significant relationship with online shopping behavior.
Perceived usefulness
And lastly a one unit change in perceived usefulness will have a 0.42 positive change in
online shopping behavior, keeping all else constant. Thus showing a positive relationship
between the dependent and the independent variable. Hence we accept the hypothesis that
perceived usefulness does have a significant relationship with online shopping behavior.
Discussion
Time saving, convenience and website features do tend to motivate online shoppers to
choose this alternative as compared to traditional shopping methods. The results of our survey
and focus group analysis support this relationship. Participants of our focus groups agreed that
online shopping does provide them ease and convenience as they do not have to visit retail shops
especially in COVID, they are relieved of the trouble from standing in queues and can proceed
with their transactions quickly. 50.9% respondents in our survey agreed that shopping online
takes less time to purchase products.66.5% respondents agreed that online shopping provides
convenience as they can buy products at any given time during the day and 46.5% respondents
agreed that online shopping helps them in finding the right product online. Website features of
the particular online retailer do matter a lot as consumers prefer shopping from websites that
offer ease of search and navigation. 82.2% respondents said that they prefer shopping online
because website features help them search the products rather easily and 73% agreed that
websites help ease the process of navigation and ordering. 49.8% respondents said that online
shopping helps them have a greater control over their shopping activities as compared to
traditional shopping and 48.4% respondents agreed that online shopping helps them enable their
transactions easily and quickly as compared to traditional shopping. Consumers do perceive that
online shopping has made the shopping process easier and useful, they can easily compare and
evaluate products and proceed with transactions. Hence we can conclude that time saving,
convenience and website features provided by online retailers do motivate customers to shop
online.
When talking about security, participants in our focus group agreed that increased
security and measures to ensure authenticity of products such as buyer reviews, influencer
reviews, guarantees and ample product information helps them choose an online retailer and
increases their motivation to shop online. Currently consumers do not think that they are not
provided enough security against scams, but when it comes to confidential information, such as
personal and financial information, consumers say that they feel secure and that is why they shop
online. 81.8% consumers agreed that they would shop online from websites that appear
trustworthy and 48.7% respondents who already shop online said that they think their current
online retailers do protect their confidential information. Hence we can conclude that security is
also an imperative when it comes to opting online shopping.

Recommendations and Conclusion
The current situation around the world due to this pandemic has given a push to the e-
commerce and digital landscape has changed for the better. Adapting and for survival in these
difficult times, the restrictions imposed by governments and WHO, and social distancing has made
online buying a necessity rather than a choice. Consumers are buying online what they bought
physically before COVID. Companies have to change with these changing times, and in order to
reach their customers they need to increase their digital presence now more than ever.
The research shows that consumer have a positive attitude towards the developing e-stores/ e-
commerce in Pakistan as the linear regression equation shows high co-relation of dependent
variables; 1) time 2) convenience and 3) website features, with independent variable, “online
shopping”. This means that the consumer preference towards e-stores is high, given that the
website/ e-commerce application is easy to use/ transparent. Moreover, it suggests that
consumers find shopping through e-stores as more time efficient and convenient.
Similarly, the other variables; 1) security and 2) perceived usefulness had slightly low
significance with the independent variable, “online shopping”. The reason for this was that many
consumers that there should a governing body which cross checks and all the products and their
suppliers to avoid fraud and scams. Moreover, many respondents were of the view that a more
secure and safer way to carry transections should be introduced, similar to that of PayPal, so that
they don’t have to worry about embezzlement.

The study recommends that Levi Strauss & Co. should launch an online ordering app
specific to their brands, to increase their reach and adapt during these turbulent times of COVID.
From our primary research, we deduced that people in Pakistan are more eager and comfortable to
shop online rather than going to shops physically provided that company ensures timely delivery,
good quality control, customer satisfaction, and safe transaction of money.

References
Andrew, J. R and Vanitha, S., (2004), “A Typology of Online Shoppers Based on Shopping
Motivations”, Journal of Business Research, 57(2): pp. 748-757.
Banerjee, N., Dutta, A. and Dasgupta, T., (2010), “A Study on Customers' Attitude Towards
Online Shopping - An Indian Perspective”, Indian Journal of Marketing, 40 (11): pp. 43-
52.
Bulter, P. and Peppard, J., (1998), “Consumer Purchasing on the Internet: Processes and
Prospects”, European Management Journal, 16(5): pp. 600-610.
Bashir, D. R., Mehboob, I., & Bhatti, W. K. (2019a). EFFECTS OF ONLINE SHOPPING
TRENDS ON CONSUMER-BUYING BEHAVIOR: AN EMPIRICAL STUDY OF
PAKISTAN. Journal of Management and Research, 2(2), 1–24.
https://doi.org/10.29145/jmr/22/0202001
Ganapathi, R. A STUDY ON FACTORS AFFECTING ONLINE SHOPPING BEHAVIOR OF
CONSUMERS IN CHENNAI. Journal of Management Research and Analysis, April -
June 2015;2(2):123-126
Javed, B. K. (2020, July 6). Covid finally got Pakistanis to spend on fashion online… but
businesses were caught off-guard. Profit by Pakistan Today.
https://profit.pakistantoday.com.pk/2020/06/28/covid-finally-got-pakistanis-to-spend-on-
fashion-online-but-businesses-were-caught-off-guard/
Katawetawaraks, C., & Wang, C. L. (2011a). Online Shopper Behavior: Influences of Online
Shopping Decision. Asian Journal of Business Research, 1(2), .
https://doi.org/10.14707/ajbr.110012
Moderator. (2020, November 30). Shahzeb Saeed Denim Blog. Retrieved from Shahzeb Saeed:
https://www.shahzebsaeed.com/top-6-best-famous-jeans-brands-men-in-pakistan/
Rehman, S. U., Bhatti, A., Mohamed, R., & Ayoup, H. (2019). The moderating role of trust and
commitment between consumer purchase intention and online shopping behavior in the
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Se, G. (2020). COVID-19 impact on retailer sentiments in Pakistan. .
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consumer-strategy-shift-11596223224
Team, M. s. (2020, November 29). Levi Strauss & Co (Levi's) SWOT Analysis, Competitors,
Segmentation, Target Market, Positioning & USP. Retrieved from mbaskool:
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20retail%20sector.
UKEssays. (2020, November 29). A market analysis for Levi Strauss and Co Vision. Retrieved
from ukessays.com: https://www.ukessays.com/essays/marketing/a-market-analysis-for-
levi-strauss-and-co-marketing-essay.php
Appendix
Appendix A
Online Shopping Behavior

Time Saving
Website Features
Security
Convenience
Appendix B
Demographic
Statistics
GENDER AGE INCOME EDUCATION

N Valid
275 275 275 275
Missing
0 0 0 0
GENDER
Valid
Frequency Percent Percent Cumulative Percent
Valid Female
142 51.6 51.6 51.6
Male
133 48.4 48.4 100.0
Total
275 100.0 100.0
AGE
Valid
Valid 18 - 25
133 48.4 48.4 48.4
26 - 35
61 22.2 22.2 70.5
36 -45
68 24.7 24.7 95.3
Above 45
8 2.9 2.9 98.2
Below 18
5 1.8 1.8 100.0
Total
275 100.0 100.0
INCOME
Valid
Valid 100,000 - 200,000
21 7.6 7.6 7.6
200,000 - 300,000
226 82.2 82.2 89.8
Above 300,000
20 7.3 7.3 97.1
Below 100,000
8 2.9 2.9 100.0
Total
275 100.0 100.0
EDUCATION
Valid
Valid A
6 2.2 2.2 2.2
level/Intermediate
Bachelors
210 76.4 76.4 78.5
Masters
49 17.8 17.8 96.4
O level/Matric
5 1.8 1.8 98.2
Postgraduate
5 1.8 1.8 100.0
Total
275 100.0 100.0
Model Summary
Std. Error
Adjusted of the
Model R R Square R Square Estimate
1
.886a .785 .781 .287
a. Predictors: (Constant), PUAVG, WFAVG, SAVG, TSAVG, CAVG
Co-efficient
Coefficients
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.

1 (Constant)
.235 .134 1.752 .081
TSAVG
.449 .063 .449 7.165 .000
WFAVG
.196 .067 .196 2.930 .004
SAVG
-.019 .048 -.022 -.391 .696
CAVG
.265 .072 .277 3.692 .000
PUAVG
.042 .069 .043 .608 .544
a. Dependent Variable: OSBAVG

Appendix C
Title: Online Shopping Behavior and the motivations behind it
This collection of data is for educational purposes. It is for Marketing Research course at Lahore
School of Economics MBA program. We assure you the confidentiality of your responses. We
look forward for your cooperation.
Demographic Questions
Gender
▪ Male
▪ Female
▪ Prefer not to say
Age
▪ Below 18
▪ 18 - 25
▪ 26 - 35
▪ 36 – 45
▪ Above 45
Income
• Below 50,000
• 50,000-100,000
• 100,000-200,000
• Above 200,000
Education
• O level/Matric
• A level/Intermediate
• Bachelors
• Masters
• Postgraduate
How frequently do you shop online?
• Daily
• Weekly
• Monthly
• Once in 6 months
• Once in a year
Please answer the following according to the scale provided below

Likert-type scale (5 points): 1=Strongly Disagree to 5=Strongly Agree
1 2 3 4 5
I shop online because it takes less time in evaluating and selecting a product
I shop online because it takes less time to purchase
I shop online because it does not waste time
The layout of the website helps me in searching and selecting the right product
The website design helps me in searching the products easily
I prefer to purchase from a website that provides safety and ease of navigation and order
I prefer to buy from website that provides me with quality of information
I think Online Shopping protects my security
I feel safe and secure while shopping online
I like to shop online from a trustworthy website
I can buy the products anytime 24 hours a day while shopping online
I think detailed information is available while shopping online
It is easy to choose and make comparison with other products while shopping online
It is easy for me to find the right product online
I get on-time delivery by shopping on-line
I perceive that using online shopping improves my performance in shopping activities
I perceive that using online shopping give me greater control over my shopping activities
I perceive that online shopping makes shopping easier
I perceive that online shopping saves more time than actual shopping purchase
I perceive that online shopping improves my quality of shopping experience
It’s cheaper to do shopping online
I find online shopping sites useful for my shopping activities
Using online shopping enables me to accomplish my transactions quickly
Using Internet for online shopping is easy
I shop online as I do not have to leave home for shopping
I shop online as I can get detailed product information online
I shop online as I get broader selection of products online
Online shopping gives facility of easy price comparison
I shop online as I can take as much time as I want to decide
I find online shopping compatible with my life-style
I use online shopping for buying products which are otherwise not easily available in the
nearby market or are unique (new)
Appendix D
Moderator’s Guide
Opening Questions
1. How often do you shop online and in person? Which medium do you prefer more and
why?
2. Which kinds of products do you typically buy online?
Engagement Questions
1. Do you use generic apps or company owned apps while shopping?
2. Why do you think the shift to e-commerce will make buying process easier?
3. What are your apprehensions while shopping online?
4. Which factors do you perceive to be the most important while shopping online?
5. Did you shop for apparels during COVID? How did your consumption patterns change
during COVID?
6. Which brands do you enjoy buying online the most and why?
Exit Questions
1. Do you think brands in Pakistan have the capacity to cope up with order influx?
2. How can e-commerce retail in Pakistan improve?

Appendix E
Consent Form
This focus group is being conducted for our MBA marketing project. The information
being shared by all of you will only and solely be used for our MBA project and won’t be
shared outside LSE without your permission. This session will be recorded and stored by us.
Terms and conditions:
1. I agree to be interviewed for the purpose of the project mentioned above
2. The purpose and nature of the interview has been explained to me, and I have read the
project outline
3. I agree that the interview may be electronically recorded
4. Any questions that I asked about the purpose and nature of the interview and project have
been answered to my satisfaction
5. I agree that my name may be used for the purposes of the project
Name Email ID Date Signature ( re-write you name)

Mohammad Zaair Khan zaairkhan1998@live.com 10/11/2020 Mohammad Zaair Khan
Usama Khan usama.khan677@gmail.com 11/11/2020 Usama
Muhammad Moin Ud Din m.moin.m3696@gmail.com 10/11/2020 Muhammad Moin Ud Din
Saad Mumtaz Mian Wildmustang5657@gmail.com 11/11/2020 Saad Mumtaz Mian
Ushba Raheem ushbaraheem14@gmail.com 11/11/2020 Ushba Raheem
Hamdan Khan F2018-481@bnu.edu.pk 10/11/2020 Hamdan khan
Umar Shah umarshah0998@gmail.com 10/11/2020 Umar Shah
Sammar khan sammarnawaz420@gmail.com 10/11/2020 Sammar khan
Mohammad Saqib Nasir Saqibnasir35@gmail.com 10/11/2020 Mohammad Saqib Nasir
Aleena Amjad aleenaamjad34@gmail.com 11/11/2020 Aleena Amjad
Ahsan Javed ahsanjvd001@gmail.com 11/11/2020 Ahsan
Fatima Naeem Rathore fatimarathore75@gmail.com 11/11/2020 Fatima Naeem Rathore
Muhammad Ahmad ahmad.shyk7@gmail.com 10/11/2020 Muhammad Ahmad
Roshaan Naeem Roshaan11@gmail.com 10/11/2020 roshaan naeem
Umar Amjad Umar21@hotmail.com 10/11/2020 Umar amjad
Khadija Naeem khadijanaeemm@gmail.com 10/11/2020 Khadija
Appendix F
Transcribed Focus Groups
Focus Group 1
Engagement Question.
Moderator: How often do you shop?
P1: 5 times a month
P2: A lot, I just went yesterday
P3: So I shop like twice a week, or twice a month actually
P4: It usually depends on koi sale ho or I’ve a need, warna itni nahi. So probably twice a year or
thrice a year.
P5: I don’t know, depends on my mood. Not much
P6: Once or twice in two months. We can say once a month
P7: Roughly once or twice a month
P8: I think thrice a month
P9: Depends on the need for a certain item, I generally do not plan on shopping but if I have to
give it a number I’d say twice a year. I do shop once in summers, once in winters.
P 10: 2 3 times in 3 or 4 months. Or maybe we can say once in two months
Q2. Do you prefer buying products online or do you prefer going to the stores?
P1. By going to stores
P2. Online
Facilitator: Can you also specify the reason?
P2: Sometimes you just can’t go outside, for example Corona, there are several reasons. Also I
think it is much easier. Even there are some shops which are not near you
P3: I prefer going to physical stores
Moderator: Any specific reason?
P3: Yeah because two days ago I got scammed, I ordered something from Instagram. I ordered
shoes and what I got was a torn up hoodie. So that’s why
P4: Online, because I think it is easier to shop and browse rather than go and find something
yourself, so I find it easier to shop online.
P5: I think going to a shop is better because I don’t trust the quality of stuff online.
P6: I prefer going to shops because first of all, I love going out. Secondly, I would say it takes me
time to like something, so I prefer that I go and check stuff myself because its authentic this way.
P7: I prefer buying stuff online, because I don’t like going out
P8: I would prefer going to the stores, mostly because out of all the experiences I’ve had with
online shopping, most of them were not genuine or did not deliver the correct item, so a lot of
scams there.,
P9: I have started shopping online because I don’t have the time to go to stores. But if I do have
the time I would prefer going to stores. The reason is that there’s a lot more variety at display and
you can view more options and that way you can shop better and get better items. You don’t get
that kind of information online as of yet.
P10: I prefer going to shop, wahan jaa kay banda khud check kar sakta hai sab variety aur online
me kaafi dafa wo variety show nahi ho rahi hoti,koi feature server ka issue aa raha hota hai. So,I
think going to shops is a better option.
P11: I prefer going to shops, because of the quality trust issues.
Moderator: What kind of products do you usually buy while shopping online?
P3: I told you I don’t shop much online, but if I do I, that’s a good thing on Daraz jo aapko sahi
mil jaati hai. Usually, I would never go for shoes or clothes or something related to clothes because
I don’t trust the quality.
P6: I don’t shop much online but my experience has been good so far with online shopping. I
usually buy football shirts and boots once in a year, my experience has been good because I’ve
never had any issues related to size or quality, because mai bohat dekh kay, jis retailer ki zyada
popularity ho usko prefer karta hu zyada.
P1: I prefer shopping for clothes online from specific websites and specifically sports apparel like
football jerseys.
P5: I prefer going to shops because I don’t trust anyone online.
Moderator: But if you have ever shopped online, which product did you buy?
P5: I don’t think I have ever tried online shopping. I once ordered a hoodie and I think I didn’t like
its quality.
P2: Accessories or books
Moderator: Accessories, such as?
P2: Like bangles, ponies, bags.
P7: I usually do it for clothes.
P8: I’ve done it for smart watches and also for clothes as well, but usually when it comes to clothes,
scam hi hota hai.
P4: Usually clothes and books.
P11: I’ve used it for buying smartwatches and hoodies in winters.
P10: Only clothes.
P9: I’ve ordered a few different things online. I’ve ordered a bag which was football themed. I’ve
ordered electronics online such as headphones and I’ve ordered clothes online as well from export
leftovers once, it was a very good experience, I would love to try it again, if I am ever in a need of
a product that they are selling. So generally my experience has been very good and I have never
been scammed luckily, although I do hear it happening a lot and so yeah my trust has grown with
online shopping, it’s just that I need to do a lot of research before I order but once I’ve done every
sort of research that I can, I’m pretty satisfied with the result.
Moderator: Do you like using generic apps or company backed apps?
P1: A mix of both actually
P2: Company backed
P3: Generic Apps
P4: Company backed apps
P5: Generic Apps
P6: No, I don’t use generic apps. I prefer to order from the website directly.
P7: I also prefer the company websites. I don’t use generic apps.
P8: I’ve tried both. I’ve used Facebook pages to order products also websites. I think it’s better
that use company websites or apps because they are more genuine because you can get better
discounts and offers. But mostly the ones on Facebook are a scam. I would say Daraz or
Gotoshopping.com are the ones I have used.
P9: Company websites. I’ve never used an app
P10: Company websites and Facebook pages.
P11: I’ll prefer to buy from company websites.
Moderator: Do you think there has been a shift towards e-commerce and has it made the
buying process easier?
P11: It made the shopping process really easier, but the quality trust issues are growing
exponentially. Because of quality trust issues in Pakistan, e-commerce isn’t getting that hype,
that’s why the process isn’t easy in Pakistan.
P10: I think e-commerce is benefitting from it.

P9: I think e-commerce is definitely meant for convenience but since there isn’t a very good rule
of law here which creates a lot of problems. People are trying to solve them. E-commerce is meant
for convenience, it is convenience but there is a lot of miscommunication and problems here due
to which e-commerce is not catching on like it should have but definitely I would say that e-
commerce has been very useful, especially in these times.
P8: I think e-commerce is useful to the extent if some products are not available in the stores, you
can order them online always, but in terms of time typically it takes 5 business days for a product
to be delivered and those are the ones not counting the weekends, so why not just go to a store and
get it within an hour and not 5 business days, so I think it’s about convenience in terms of product,
if that’s not available in the shop, but in terms of time it is much better to go to the store. If it’s a
situation like COVID, yes, people should order online but that too if you can.
P7: Personally I think e-commerce has made it quite convenient but the main issue on a bigger
scale is the quality, but overall its convenient
P6: Well it is convenient and it is meant to be convenient, but then again its trust and quality, and
it is very convenient during these COVID times.
P5: I won’t support it because I have trust issues.
P4: It is convenient but again there are issues that you never know whether you’ll receive the same
product that you order unless it’s very reliable, but issues sab kay hotay hayn. It is convenient
however.
P3: It is convenient, but if you don’t order from a generic app and go for a company app because
then you know you are going to receive what you ordered. If you order from other websites, then
there are trust issues.
P2: I think online and e-commerce is more convenient and I don’t really think that trust issues
thing is such a big problem because you know you can always order it from official websites etc,
so overall I think it’s more convenient and better.
P1: I think e-commerce is really convenient regardless of the trust issues and the quality issues.
Moderator: Which factors do you perceive to be most important while shopping online?
P1: I think videos of the product, where we can see someone using the product, images of the
product
P2: A proper description of the product while shopping online, for example something ready-made,
a shirt for example, it would be more convenient if they could give the size of the model and what
size is she wearing.
P3: I think the videos can be misleading too. I think you should try the product first and then buy
it, you really can’t judge a product based on videos and pictures.
P4: Reliability matters. Like how reliable are they, are they delivering the same product they are
showing. So, I think reliability is a very important aspect.
P5: I support what participant 4 said, I had to say the same thing.
P6: Authenticity and proper description of the product.
P7: For me its pictures and videos of the product.
P8: Pictures, videos and a guarantee that all the products that have been posted online, they are
genuine product from verified companies.
P9: I’d say that reliability of the seller and something similar to what participant 8 said that the
same product as shown in the picture or video.
P10: I think pictures, videos and descriptions.
P11: Good product description and good buyer reviews.
Moderator: In case you have to do apparel shopping, specifically high street brands, which
brands would you prefer to buy from while shopping online?
P1: I’ve shopped from Levi’s online before, so I’d say Levi’s.
P2: Outfitters.
P3: I’ll go with Levi’s.
P4: Levi’s
P5: Outfitters.
P6: Levi’s it is
P7: Outfitters
P8: I would say Levi’s and Outfitters because they have a better winter collection and there website
is more user friendly so that’s why.
P9: None of the above. I wouldn’t use any of them for online shopping.
Moderator: Okay, what would you prefer?
P9: If I am going for online shopping I’d go for something that’s offering me discounts. I do buy
eastern from either Sapphire men or something like that but not for western. I haven’t yet.
P10: I think Outfitters
P11: I’ll go with breakout.
Moderator: Have you guys shopped apparel during COVID period via online platforms?
Was your experience different than your past experience?
P11: Yes, I ordered a bag from a brand ONE, the quality was good and the delivery time was good,
so it was a good experience.
P10: I ordered a dock bag and its quality and delivery time was on point. It was a good experience.
P9: Unfortunately, I did not order apparel, so I can’t speak for that but I did order a pair of
headphones and they arrived much earlier than I expected.
Moderator: So we can say your experience was good?
P9: Excellent experience.
P8: I did order clothes online, specifically for my nephew. They were offering his size which
wasn’t available in the market. So the experience did not go well. I ended up getting a hoodies
with such a low quality that I could not even use it like a dusting cloth.
Moderator: Did you complain about it to the company? And if you did what was the response
like?
P8: I would have contacted the company but the Facebook page through which I ordered, after a
few days it just vanished. That’s when I knew it’s a scam. My online experiences don’t go well
usually.
P7: I shopped online 6 to 8 times and my experiences were really good. I even bought apparels
and electronics and received a really good service.
P6: Yes, I did shop online. I ordered a football shirt but I received it after 2 or 2.5 months. I ordered
it back in August or September I guess. I texted them that you haven’t responded me yet and then
they apologized and said that our shipments were stopped in Thailand and we’ve received them
now and you’ll get your order within a week and I did receive it within a week
Moderator: Other than apologizing, did they offer you a discount or something?
P6: No, they didn’t.
P5: I didn’t do any online shopping during COVID.
P4: I bought a pajama set and a T shirt and my experience was really good experience and they
had proper packaging and delivered it on time and also took precautionary measures.
Moderator: You were satisfied with their service?
P4: Yes, I was.
P3: No, I did not shop online during this period.
P2: I have ordered a lot of time and the delivery time was on time.
P1: I ordered a lot of stuff during COVID to a point that it was unnecessary and the quality was
amazing and the delivery time was good. Once the product was faulty but the brand returned the
shirt and there was no issue at all.
Moderator: Based on your experience, do you think Pakistani e-commerce industry has the
capacity to cope with large order influx?
P1: Yes, I do think they have the capacity to deal with it, considering that they have during COVID.
P2: Yes, I do think they can.
P3: Yes, I think they can
P4: They can, and they should.
P5: I haven’t shopped online so I have no clue.
P6: Yes, definitely. Especially during this Corona period, and they do have the capacity to deal
with it.
P7: Yes, I do think they have the capacity to deal with it. In the beginning people did face hitches
during their orders but after a few time everything was okay during the pandemic. So it was okay.
P8: Yes, I do think Pakistani brands have the capacity to deal with large orders. We saw that local
brands emerged to counter the shortages that people faced. Especially when it came to sanitizers
and masks. I understand the quality might still be in question but if you strictly talk about the
capacity then yes, we do have the required capacity.
P9: I doubt that Pakistani companies have the capacity to deal with actual influx of online
marketing. I think the reason why they have survived this far is because even though there has
been a growth in e-commerce, our numbers are not comparable to any of the developing countries
such as India, which has a similar over populated market, obviously theirs is bigger but they have
a lot of e-commerce influx. I say that because I have some knowledge about the IT industry and a
lot of their companies do not host these websites with reliable hosting service. So, I think if there
were to be a large influx, a good test of this could be this 11.11 sale by Daraz and most of these
Black Friday sales because we are definitely going to see an influx there, so for me I think its too
early to say but I wouldn’t count on them having a good response.
P10. I think they can and they are doing well.
P11. Yes, I think they can cope up with huge orders and they have the capacity.
Moderator: Is it based on your experience?

P11: Yes, it is based on my experience.
Exit Question
Moderator: Okay the last question is that what type of improvements do you think there
should be in Pakistani e-commerce industry?
P1: I think one suggestion can be that they can move towards augmented reality, virtual reality and
advanced technologies.
P2: I think if they could fix their delivery times, because many people don’t order much if they get
an order late after what they’ve expected.
P3: I think, the way PakWheels does it, like they send a guy from the company to verify the product
and they guarantee that this product is verified by PakWheels, so I guess all these companies doing
online retail should hire teams and go and guarantee that this product has been verified by us so
we can stay safe from scammers and we can get insured. It will have a tip that it’s a verified
product. The scammers throw a lot of things online and then scam people and it’s a hassle for
customers and also they lose their money. So it’s good that you hire a team to verify products. This
will enhance the value of your products and people will prefer shopping with you.
P4: I think they should improve their customer service aspect, like Foodpanda and Cheetay apps,
if yor’re complaining then the entire process isn’t effective at all, so they should really improve
that taakay customer ka dil karay dubara order karnay k lye.
P5: Exactly, like customer satisfaction should be their main focus that is the customer satisfied and
if not then they should do something about it rather than saying they can’t do anything or the
product can’t be returned. They should do something about it other than apologizing.
Moderator: You think you’ll start buying from them, if they focus on this aspect, because you do
not shop online often.
P5: Well, if we are talking about customer satisfaction, then yes obviously.
P6: Sponsorships, I think they should partner up with other popular brands so they can improve
their authenticity and people will prefer buying from them.
P7: I feel that for the time being the suggestion I have for them, like participant 3 said, there should
be some product verification. You are going to buy what you’re going to see. Secondly, brands
have a low diversity. If they somehow manage to increase their brand portfolio, I feel like there’ll
be more influx that way.
P9: I agree with almost all the ideas being presented, one that we should have more verified sellers,
that is why company sites are reliable. Delivery times obviously and then along with delivery times
there should be post sale services. They should ask us about our reviews so they can improve and
one thing that I have seen Daraz do and others should follow it as well is that follow the Amazon
model, that they should delivery centers for major areas wherever sales occur the most. So what
happens is that different sellers deliver products at that delivery station and from there the products
are delivered where they have to be delivered. So I think it’s one of the best models which could
work anywhere in the world especially in a market like Pakistan
Moderator: Don’t you think that it’s too early for companies in Pakistan to start this and
even though Daraz is doing it, they have a big company that supports the back end, the local
vendors are not that established.
P9: I guess with marketplace as Daraz and its competitors, should be following that model. The
market can grow in that sense that there is a demand for a lot of products but there isn’t enough
trust with e-commerce, so if they are somehow able to build the trust with e-commerce through
better services, then their facilitation and whatever they offer obviously will reap a good retun on
their investment, so I think they should take the first step rather than the customer showing that
demand.
P10: I think product verification is a major aspect because it will build the trust of customers. Most
people don’t shop because of scams and they have a bad experience shopping online.
P11: What Foodpanda recently did was shelf photography, now they provide you real time images
of food. Previously they used to copy pictures from internet, so the buyer used to get disappointed
that he didn’t get what he ordered so if Daraz or other e-commerce apps start providing real time
images of the products, it would help e-commerce.
Focus Group 2
Engagement Question
Moderator: How often do you shop?
P1: Once in a month at least
P3: On average twice a month
P4: Well I shop like once in a month
P5: I haven’t been shopping out since the pandemic has started and I usually don’t shop for grocery
my parents do it.
P6: I shop like twice a month generally
P7: I shop twice a month usually.
P8: Okay so, its approximately 3 times a month.
P9: Two times a month
P10: Twice a week
Moderator: What type of products do you generally buy?
P1: They are mostly grocery items and sometimes casual wear and outfits.
P2: I think do my shopping very miscellaneously, like there’s no specific category I go about while
shopping. I’m sorry I missed your first question, I shop frequently, like twice a week.
P3: Mostly grocery, apart from that apparel.
P4: Well I don’t usually go for grocery shopping but if it comes to apparel and technology, I’m
quite into gadgets, like every month I go to stores and buy some gadgets, its apparel as well, its
both.
Moderator: In that case, do you prefer online shopping or do you like going to shops
yourself?
P4: I prefer going to shops, I don’t have a good experience with online shopping. I have had a
pretty bad experience during the last 2 3 months in the pandemic so I prefer going to the stores
because it satisfies me.
P5: As I already mentioned I don’t really go out for any sort of shopping especially after the
pandemic but I do have people in my house that can get things for me or I would just prefer
ordering things online.
Moderator: Well if you prefer ordering online, have you ordered anything recently by any
app and if so, how was your experience?
P5: Yeah so I recently got some clothes online and it wasn’t though an app it was though Instagram.
P6: Its once a month for grocery and other times its for clothes, kind of both once a month.
P7: I usually shop for clothes online
P8: Its mostly food items
P9: For clothes its twice a month, but for grocery I can go shop every day.
P10: Its food and groceries.
Moderator: Do you prefer using generic apps or company backed apps?
P1: I mostly use Amazon for this purpose, I mean they have a really good customer service so I
mostly use Amazon for these purposes.
P2: So, I wouldn’t order anything online if it comes to apparels, but I use Daraz a lot for little
things such as my charging cable, charging brick and stuff like that, but I do buy shoes online
because I think that’s pretty straight forward, you just give your size and you get your shoes.
P3: I mostly use Daraz unless I buy normally jogger pants, so that’s it and that’s my usual go to.
P4: Well I’ve used Daraz a couple of times and my experience wasn’t that good. But I’ve used that
only for gadgets and not for apparels.
Moderator: Have you ever used any app for apparels?

P4: OH no. Never, but I am thinking of using one because a lot of people have suggested. It’s just
that I am a bit tall and I don’t get my size online and people do say that they are going to deliver
you the highest quality according to your size but that is not the case so, I said okay fine I will give
it a try and usually I just go to the shops.
P5: So it depends if it’s a low involvement product for me and if I have already had experience in
it, for example for apparel I have mostly have had a good experience so I’ll get it through Instagram
during the pandemic and if its food then I can use Foodpanda for it and I can also use Daraz if its
high involvement product, gadget for example then I’ll prefer going to the shops.
Moderator: You said you’ve ordered clothes online, have you considered using any company
backed application?
P5: No, I basically have started getting clothes from new businesses. They are not big companies
and they do not have websites.
P6: I generally prefer going to shops and buying stuff but I’ve shopped online from Daraz and I
haven’t had a good experience.
P7: When I have to order an expensive dress then I prefer ordering from the brand’s website
directly but if I have to buy a cheap product then I prefer ordering from Daraz.
Moderator: Since you have ordered from different apps, so how was your experience
regarding high end clothes?
P7: The experience was quite good because the website was directly linked to the brand and not
the third party, but mai Daraz se shopping ka zyada chance nahi leti because wahan se ghalat
product bhi mil sakta hai.
P8: I’ve used export leftovers and that’s about it.
Moderator: Have you ever used Daraz?
For apparels no, but I have bought stuff from Daraz, like watch and some accessories maybe.
P9: I use Ali Express a lot. Kaafi time lag jata hai deliver honay me. My experience has been pretty
good because I order after reading reviews.
P10: I mostly use Foodpanda and Cheetay for food and I have used Daraz for a couple of times.
Moderator: Do you think COVID has accelerated the use of e-commerce apps?
P1: Yes, for sure. The net worth of various platforms has jumped.
P2: Yes
P3: Yeah that’s a definite, the major reason is in COVID it provided a platform where you don’t
have to touch anything or anyone, it definitely boosted the sales.
P4: Yes, COVID has significantly affected and the number of people shopping online has
drastically increased, because I know a couple of people who used to go to the fruits and vegetables
shops and buy themselves and since the pandemic and lockdown they have to stay at home and
they are actually preferring e-commerce apps and they are even using Airlift. It’s a pretty good
experience they told me.
P5: Yes, it has increased but I also feel that it depends on your purchasing power, so if you have
the money you will go shop online but sometimes if you are not earning enough then you might
not buy online.
P7: Yes it has increased and now I feel more comfortable shopping online rather than going in
shops and buying products.
Moderator: Is it due to COVID or you have generally found comfort in it?
P7: Its because of COVID.
P8: Yes I believe that after COVID, the use of e-commerce has increased in fact I had a session
with a sales manager at METRO and he told us that there has been a 300% increase in sales online,
so yeah that’s true that there has been an increase.
P9: Yes, I think that e-commerce has increased due to COVID, I never thought that I would order
grocery online but now I do order food stuff from Alfatah frequently.
P10: Yes, I do think it has increased.
Moderator: What are your apprehensions while shopping online?

P10: Quality, sometimes they don’t send us what they are showing.
P9: It should be reliable
P8: My concern is that the website should be authentic and should not have any faulty items in it,
so that’s the first concern and the second concern for me is the payment methods, although Pakistan
right now is focusing on cash on delivery but there should be some easy methods to pay online
such as PayPal, I guess JazzCash is doing a very good job right now in Pakistan but yes something
as good as PayPal would be nice.
P7: My concern is usually that the same product as shown in the picture should be delivered and
the quality should be high, delivery should be timely and it should not be a fraud.
P6: While grocery shopping, I don’t have any particular concerns but while shopping for clothes
and gadgets I do have concerns, because I have never received a good response anywhere while
online shopping. I have suffered while shopping online.
P5: I’ve had a fairly good experience, I’ve never done grocery but when it comes to apparels my
experience was fine, also with food.
P4: Well my greatest concern, I think I have already mentioned that they show you something else
and you receive something else, so its quality, so they don’t actually fulfill their promise of quality.
P3: For most of the people the major concern is that what’s shown is not given to you. That’s the
case with most e-commerce platforms right now.
P2: Previously my concern used to be authenticity and quality of the product, but because of
Daraz’s user reviews, I have grown quite confident that if I am ordering something I will get the
same product, but now my concern is that will my product get damaged while being shipped,
because I recently ordered a shampoo during COVID and it leaked during shipping, so I guess
shipping is also an issue because I guess they just throw your packages here and there.
P1: Yes, my main concern is the payment method, I remember I once ordered a bag from Ali
Express and the payment was debited from my card but I didn’t get the bag even after 2 months,
so my main concern is the payment method.
Moderator: Did you try to complain on the website?
P1: Yeah I tried to complain on the website and they said they’ll give me the cashback but they
did not.
Moderator: Have you ever used online apps for buying apparels?
P1: No, not in Pakistan
Moderator: Any specific reason?
P1: When I was in Pakistan I wasn’t used to online shopping and I’ve already told you that I used
Ali Express once or twice but I had a bad experience so after that I did not use anything and did
not order anything, if I need anything I go to the shop and buy things.
P2: I’ve ordered online from Charcoal, not the rest. I have a trust on Charcoal because their
products are uniform and there is little variation so that’s why. My experience with Charcoal was
good because I ordered the same product that was present in my home. Other than that their user
interface was really good too.
P3: No I haven’t used all of these platform normally because all these shops are really close to
where I live, like I can just walk to the shop.
P4: No, I haven’t used all of these platforms, I usually go myself and I prefer going to the shops.
P5: I haven’t used their online platforms because they are not very good usually and if it comes to
Outfitters, I am a customer but I don’t trust their quality so much and I would rather go and buy
from the shop
P6: I don’t buy clothes online, I prefer going to the shops and checking the stuff and everything
about that so I don’t shop for clothes online.
P8: Yes, I think I have used Cambridge. It was a quite good experience, I received what I wanted,
the product was exactly the same as it was showcased, so there was no problem with that although
I was really nervous that the product might not fit and the quality might not be good but it was
actually very good.
P9: I buy from Outfitters a lot. Many sizes are available online and my experience has been good
P10: I don’t buy online, I go and buy from shops. I have quality trust issues and I also have to try
the size. Usually they don’t have my size, I have really big arms.
Moderator: Do you think Pakistani apparel industry has the capacity to deal with the large
order influx?
P1: Yes, I definitely think so they can.
P3: Yeah definitely, even if they don’t have internal resources they can outsource their services.
P4: Well on e-commerce basis I don’t think so because I think there will be a tradeoff between two
things, either they’ll compromise on quality or there will be delays.
P6: I really don’t think so because I’ve always suffered, so I really don’t think so.
P5: I think it depends on the e-commerce website. If its apparel, I don’t think it’s a very staple
product, there might not be huge influx for it but if there is grocery and people are getting online
then they might run out of stock.
P9: I think no for some websites, and yes for some because if Outfitters has a sale then its website
doesn’t get slow but Almas’s website gets quite slow and website does get stuck. I think they don’t
have the capacity.
P10: Yes, I think they have the capacity to cope up with the influx. Daraz is doing it very well
Moderator: How can you think Pakistani e-commerce can be improved?
P1: I think they first need to gain the confidence of the customers because many people have had
a very bad experience and mostly bad experiences are associated with Daraz, so I think first they
have to gain some confidence and then they have to work on the payment methods.
P3: They need to regain lost trust. People have lost trust in the brands, even the bigger brands if I
can quote an example, few weeks back I ordered something from Splash and it was completely
opposite of what I had ordered. That’s one less customer for them in the future, so they need to fix
this first. They need to send in what they have promised and when this promise is fulfilled, then
this major concern will be finished. This is the case not only with apparels but even with grocery.
They need to provide a way out for customers who received a product opposite of what they had
ordered, so there needs to be some reverse logistics.
P4: I believe e-commerce can only be improved by gaining peoples trust and for this they need a
skilled salesforce because these are the frontline soldiers and most of the time these people do not
actually know what the product is about, because I once ordered a watch and I told the guy that
this watch isn’t working to which he said ye to company ki ghalti hai isme meri koi ghalti nai and
I was like that you are actually delivering the product, you must know that if you are delivering
the product you must know this so I guess here is when people get frustrated that the one who is
delivering has no idea about things. This is a gap that should be fulfilled
P5: Yeah if we look at the demand side of things, then I think if they have procedures that could
help forecast the demand and then they should have other departments should be aligned with it
as well so they might not have back orders and I also think they should have reverse supply chain
system introduced in Pakistan, it’s pretty much non-existent here and as Saad already mentioned,
they need to better train their workforce.
P6: I think the first basic thing is trust, when you are not sending me the product I have ordered or
you are sending me a damaged product so I would never shop online again and also they need to
have an active complain cell, so if we complain we get a response within a week.
P8: There should be a platform where customers can complain about the problems they are facing
and I guess that’s it. They also should solve the payment method problems.
P9: I think they must have updated websites, sometimes the website says that the product is
available but it actually is not and they let you place the order on website but then they call you
that ma’am this product is not available and also the credit card facility is not available on every
website but it should be there.
Appendix G
Transcribed Interview
Q. How do you position Levi's amongst all the local apparel brands of Pakistan and terms
of sales variety and environment?
Levis is the only Multinational brand in Pakistan which is operated by our global head offices.
Rest of the companies, who claim to be Multinational are licensed. One major problem which
restricts our sales is the absence of a variety of product categories. We are a denim based store,
whenever you hear the word Levis, the one thing that pops in your mind is denim. There’s a huge
difference in price points. Our average price for a jeans is 5000, while those of our competitors is
quite low. Outfitters, for example, is currently leading the apparel market. The reason is they
have a lot of product categories, from ethnic and western wear to kids wear, shoes and perfumes.
It has established itself as a lifestyle brand. Every member of your family would be able to find
something for themselves in Outfitters and this is not the case with us. We only deal with denim
and our target market is very restricted. People in Pakistan have a very small size of wallet and
therefore Levis is seen as a premium brand in Pakistan. If you go anywhere else in the world, it
is just another basic brand. Again, our variety of articles and stock is quite low. Outfitters has a
lot of variety in every product category, but we have a lot of variety in denim as compared to
Outfitters. Their store is huge and inviting while we on the other hand cater majorly to the male
consumers.
Q. Have you ever considered going for a value based pricing model to capture more share
of the market?
We operate in two channels. Main line and Outlet. Our stores in Dolmen Mall, Centaurus,
Packages and MM Alam are our Main line stores. Our Outlet channel contains Levis, Dockers
and Denizen, all three brands under one roof. The prices here are kept low as compared to our
main line channels. Denizen targets teenagers with a lot of variety and flashy articles. The price
point here is low and here we target our price sensitive customers
Q. Why doesn’t Levi's Pakistan invest more and introduce it's apparel SBU (I.e. T-shirts,
polo shirts, skirts etc) as the market demand is quite similar to that of India and yet they
have it?
Pakistan has a very short chunk of the global market for Levis. We make good bottoms, but our
production level is not at par with that of India. India produces a good amount. Globally too, we
are seen as a bottom brand and we are only trying to strengthen that aspect.
Q. Why isn't Levi's Pakistan expanding and opening stores in other major cities, i.e.
Hyderabad, Jhelum. Knowing that consumer market there is big?
Currently we can’t expand because of COVID. Instead we had to close around 30 or 32 stores.
These stores were franchised and those people had to bear a lot of costs.
Q. You have seen the market up close. What would you suggest your management to do?
Introduce more product categories and especially introduce more alternatives or women. A
typical female customer buys more than male customers. You will find them competing with
other women over clothes and also they buy frequently because if they’ve worn a dress 6 or 7
times, they usually won’t wear it again but would go buy more. You will find those brands
excelling in the market which cater female customers. We are only targeting the male chunk and
they usually don’t buy much. Their average frequency of purchase in a year is quite less as
compared to females. You will mostly see married men compromising. They would buy clothes
for their families but not for themselves. So we suggest our management to add categories and
properly market these categories. We were about to introduce something but everything got
cancelled because of COVID. Orders git cancelled for industries and everyone suffered. Now we
are waiting for things to get on a normal pace and track and then we are looking forward to
introduce new categories.
Q. Does Levi's Pakistan have locally produced garments or are all imported?
Import duties have increased. We are trying that by mid-2021 we sell more of our local
production. International products would definitely be there but we are minimizing our reliance
on them. This was we can save on our import duties.
Q. Is Denizen an internationally recognized brand?
Denizen is sold in Walmart in The U.S. You won’t find the brand with retailers but with
wholesalers. It is not as popular as Levis or Dockers in U.S but is definitely more popular in
Pakistan and India.
Q. Who would you consider as your direct competitor?
There are two perspectives that come into play here. One is that since we are an International
brand and no other company operates on a model like ours so no one can compete us. I really
don’t think that’s the correct way to go about it. We have Outfitters, their sales figures are quite
high. Our target consumer base is also the same but it gets separated when it comes to price.
Outfitter’s owner started from the rock bottom and today he has achieved so much. All their
managers are ex Levi’s employees. Levi’s brought the scientific way of managing retail in
Pakistan and our culture is very different as compared to Pakistani local companies. Local brands
try to adopt this model.
Q. What are the factors that the company considers at managerial level whilst opening a
new store?
If a brand today wants to open a store, it would definitely want that it opens one in Kari block.
Karim block is a tried and tested market where the entire Lahore comes to shop. The customer
keeps on coming in continuously and also from adjacent cities. My career started off as a store
owner in Karim block and our sales jumped as soon as that signal free road was built. It became
easy for customers from adjacent cities to access it. We started earning 80 lacs as compared to 60
65 lacs that we used to earn prior the construction of that road. You just have to keep your end
safe. Model town link road is a good location. Also when we have to expand your footprint, you
have to see which cities are you not present in. Jhelum for example, you will see Khaadi,
Outfitters, Breakout etc. but we are not present there. We have been continuously suggesting our
management but they are not currently expanding for the coming 6 months. They did open one in
Sargodha though.
Q. Can you guide me about your online presence?
One major learning that we got out from COVID, was that we need to have an online presence.
We currently have none and our sales got affected as compared to Outfitters which earned 2 or
2.5 crore daily via its online channels. After looking into this, we started working on this and as
we speak the entire e-commerce project is being looked into. I don’t know much about its current
progress but I am sure that we will be present online within a span of 5 or 6 months

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RUNNING HEAD: LEVI’S STRAUSS & CO.

LEVI’S STRAUSS & CO.

Submitted To: Dr. Saad Shahid

Submitted By: Group 2

Mohammad Waleed Bin Amer

Executive Summary ...................................................................................................................... 4

Regression Equation .............................................................................................................. 34

since the advent of COVID.

The facilities regarding manufacturing, distribution and finishing of goods in operated in

mind brand awareness

Expertise in Jeans Industry Low costs associated with manufacturing and

around the globe

Access to International Capital and strong

Has over 470 self-operated stored globally

managed by 16000+ employees

Levi’s marketing includes retro popular songs

in its TVC ad campaigns

Over 60 manufacturing plants in US and 25

High Pressures of Brand Protection Fast changings in consumer tastes

for growth domestic brands, and Product Substitution

boot cut and comfort fit. (Moderator, 2020)

world (Moderator, 2020)

competitor for Levi’s. (Moderator, 2020)

on daraz.pk. The expected e-commerce revenue of Pakistan in 2020 is around $1 billion.

button on the website, without needing to go out themselves.

Money spent by Pakistanis Mode of transaction Year

50% of all transactions Smartphones 2019

Rs. 9,695 per person (average) Mobile phone spending 2019

Rs. 9,164 per person (average) Offline payment 2019

Rs. 14,510 per person (average) Apple iOS users 2019

Rs. 7,467 per person (average) Android users 2019

Online purchases Made by men 59%

Online purchases Made by women 41%

Online shoppers in Pakistan (average) 25 to 34 years of age 56% online shooters

Average order value online In December Rs. 9,645

Average order value online In November Rs. 9,096

Average order value online In October Rs. 8,412

In the research report published by Picodi.com, information about spending amount by

analysis, the popular segments in Pakistan for online shopping are:

Top Online Stores in Pakistan

Sr. No. Online Company Revenue in 2019

1 Shopon.pk 35 million USD

2 Daraz.pk 32 million USD

3 Amazon.pk 22 million USD (279% growth in comparison to 2018)

Management Decision Problem

Should Levi's Pakistan introduce an e-commerce store to improve its sales?

Marketing Research Problem

To determine the shift of consumer preference towards online buying in Pakistan.

shopping motivate consumers to shop online?

2. Is security of information a concern that inhibits consumers from shopping online?

were self-administered. Both researches helped us in identifying consumers’ online shopping

knowledge base for the problem at hand.

constraints are inclined towards online shopping.

to opt online shopping (Bosnjak et al., 2007)

transactions (Wolfinbarger and Gilly, 2001). Possession convenience refers to convenience

possibility of repurchasing by increasing the perceived usefulness of online shopping (Ladhari

(Prasad and Aryasri, 2009).

uncertainty perceptions attributed to the risk of security (Pavlou, 2007).

According to (Peng, et al., 2007) perceived usefulness significantly and directly

Online Shopping Behavior

Focus Group Analyses

shopping behaviors and present shopping behaviors.

No. of FGD 1 No. of Participants 11