2.

1 OBSERVATIONS
Three researchers carried out surveys, in conjunction with random 50 LAZADA users from
Multimedia University’s students from faculty of FOB, FIST, FET and FOL, for a period of
two week in the campus. From the observation, we found that LAZADA’s users will normally
purchase at least once per month or once per week and the amount of money spent by
LAZADA users is approximately between RM 0-RM50. Most of their favorite method of
payment is Debit/Credit card and cash on delivery. In addition, LAZADA has provided
variety categories of item and brands for consumers to choose from. Under our observations,
we found out that most of the consumers are willing to pay more on fashion as lead to the
most popular item. Clothing and accessories from fashion category is popular among
teenagers nowadays as it is convenient and easy to buy clothing and accessories from
LAZADA. However, groceries items from LAZADA are less popular among the consumers.
Most of the consumers’ first impressions are satisfying about the website design. The
websites design of LAZADA is convenient and easy to use while consumers are doing their
purchasing.
The main concern of LAZADA in this survey is their quality of products. Most of the
products of LAZADA are making sure with high quality and lower cost comparing to retail
store’s price. With the applied of Return Policy, consumers have rights to request for refund
when the items received is in defective condition, have doubt on the authenticity of item,
wrong item received, change of mind and items is not as advertised. Hence, the confidents of
consumer are boosted and felt more secure when purchase online with the existence of Return
Policy. However, the speed of delivery of LAZADA is not in the satisfying region. There are
a lot of complaints have been made by consumers because of late delivery. Late delivery is
often caused by unintegrated system of the company, bad weather, and stock out.
Customer Survey
A questionnaire, consisting of 13 items, was administered to 50 students of the Multimedia
University during the period that the observations were being carried out. A total of 84
customers were asked to complete the survey, and 34 of them declined to be surveyed. A copy
of the questionnaire can be found in Appendix A. Tabulation of the data from the survey can
be found in Appendix B.
Details of Respondents
From the pie chart shown below, its show that the majority of respondents were from FIST,
with the largest proportion (28%). In the other hand, FOB and FOL share same among of
percentage which is 26%, and a smaller percentage 20% were FET.
 Falculty

26.00% 26.00%

20.00%
28.00%

FOB FIST FET FOL

From the gender pie chart shown in below, there were more than half, which is 54% of the
respondent were female and 46% were male. This gender division reflected the overall
composition of MMU students.

Gender Division

46; 46.00%
54; 54.00%

Ma l e Femal e

There were 48% of participant from foundation which had the highest percentage in seniority
level participated in this survey, followed by undergraduate 30%, and a smaller percentage
22% were postgraduate. Most of the students from foundation accepted the survey because
they were still new in this university and felt embarrassed to refuse the survey .The seniority
level pie chart was shown in below.
 Seniority Level

22.00%

48.00%

30.00%

Foundation Undergraduate Postgra duate

The ways to know about LAZADA online shopping company

The distribution of percentage of different ways to know about LAZADA online shopping
company can be seen on the pie chart below. Based on the pie chart below, it’s shown that
about 30% of respondents know about LAZADA through social media and it’s occupied the
highest percentage among others. In the other hand, there were respondents who’s knowing
LAZADA through their friends and this percentage is same as the respondents who’s
knowing LAZADA through their family as well. The percentage of this two category were
26% each. Seven per cent of respondents knowing the LAZADA through advertisement and
only 4% of them knowing LAZADA through flyers.
 the ways to know about LAZADA

26.00%
30.00%

4.00%

26.00%
14.00%

Friends Fa mi l y Advertis ement

Fl yers Soci a l medi a Others

Frequency of purchase from LAZADA

More than half of the respondents purchase at least once a month from LAZADA (66%)
which shown in the pie chart below. Besides that, there were 24% respondents whose
purchase at least once a week from LAZADA follow by 5% of respondents whose purchase
at least once a year from LAZADA. There are 0% contribution from the respondents whose
purchase every day from LAZADA.

frequency of purchase

10.00%
24.00%

66.00%

Everyday At l ea st once a week

At l ea st once a month At l ea st once a year
The risk concern while purchase from LAZADA
Based on the pie chart below, it shown that half (50%) of all respondents concern about
counterfeit goods follow by scam or fraud by unscrupulous sellers which was 30% while
purchase from LAZADA. In the others hand, the risk of credit card transaction and the risk of
identity theft while purchase from LAZADA show quiet low percentage which were 12% and
8%.

the risk concern

8.00%

30.00%

50.00%
12.00%

Sca m or fraud by uns crupul ous s el l ers Credi t ca rd trans a ction

Counterfei t goods Ri s k of i dentity thef
Others

Categories of item bought

10.00%

6.00% 4.00% Fashion

36.00%
Electronics
Home &Living
Sports
20.00% Groceries
Others

24.00%

Figure 5: Chart of Categories of Item Bought

The most common categories of item bought by students of Multimedia University were
fashion which took around 36 per cent of total. The following frequent category of item was
electronics at about 24 per cent and followed by home and living at 20 per cent. Sports at 6
per cent and groceries at about 4 per cent were the two least categories of item bought by
responders. We could observed that most students preferred to buy fashion and electronics
item through our website as they were able to return the items if there were change of mind or
damage of items. The least was groceries as it took time to deliver while the groceries were
easy to obtain from mini mart around the area near school compound.

Amount spent per month

14.00%

10.00% RM0-RM25
44.00%
RM25-RM50
RM50-100
RM200 and above

32.00%

Figure 6: Chart of Amount Spent Per Month

Most of the responders spent around RM50 to RM100 each month at about 44 per cent. The
following amount was RM25 to RM50 which took around 32 per cent of total. The least
amounts were RM0 to RM25 (10%) which are the minority that is not in the range of our
investigation while RM200 and above (14%) which took minority of total as students were
still unable to afford so much.
First opinion of website

8.00%
16.00%

6.00%
Attractive
Satisfying
Average
24.00%
Unsatisfying
Dull

46.00%

Figure 7: Chart of First Opinion of Website

Around half of the responders (46%) were satisfied with the design of website and 16 per
cent found it was attractive. This positive feedback indicated the design of website was able
to attract the students. Only minority of responders had bad first impression of the website as
6 per cent fount it unsatisfying and 8 per cent felt it was dull which indicated that there were
still room for improvement of our website.
Payment method online

8.00%

24.00%

PayPal
Cheque
Debit/Credit Card
Cash on delivery

68.00%

Figure 8: Chart of First Opinion of Website

The best payment method was most probably the debit or credit card as it has most of the
users among the responders (68%) as it was owned by each students in Multimedia
University and it was safe and convenience to use the following method was cash on delivery
which took 24 per cent as they did not need to own a debit or credit card and the credibility of
retailers may be increased. 8 per cent of responders preferred PayPal and no responders used
cheque as PayPal was not common among the students and the cheque may be troublesome
to use.

2.9 Quality of the product from LAZADA.

 Quality of LAZADA's Products

Very poor; 10.00% Excellent; 12.00%

Poor; 16.00%

Good; 36.00%
Average; 26.00%

Respondents were asked to rate the quality of products on five-point scale, ranging from
“Excellent” through “Good” and “Average” and “Poor” to “Very Poor”. Most of the
respondent (36%) have rated “good” for LAZADA’s products quality. In addition, there is
12% of respondent were rated “Excellent” and 26% of respondent were rated “Average” for
the quality of LAZADA’s products. Meanwhile, 16% and 10% of respondent have rated
“Poor” and “Very Poor” respectively. From the Figure(), the quality of LAZADA’s products
is in satisfactory region. There are total 74% of users voted for average and above and only
26% of LAZADA’s users are unsatisfied with LAZADA’s products.

2.10 Satisfactory of Speed of Delivery

 Sastisfaction of Speed of Delivery

Worst; 6.00% Very Sastified; 10.00%

Not Sastified; 36.00% Sastified; 26.00%

Average; 22.00%

Respondents were questioned about the satisfaction of speed of delivery. There is 36% of
respondent were not satisfied with the speed of delivery. This is the highest percentage from
the Figure 8, which indicates most of the LAZADA’s users are unsatisfied and experienced
late delivery incidents. However, there are 10% and 26% of respondent were very satisfied
and satisfied respectively for the speed of delivery. 22% of respondent say the speed of
delivery is acceptable. However, there is 6% of respondent have rated “worst” for the
delivery speed. From this analysis, speed of delivery of LAZADA is in unsatisfactory region
and is required to be improved and enhanced.
2.11 Reasons for Apply Return Policy of LAZADA

Reasons for Apply Return Policy

Doubt on Authenticity; 18.00%

Not as Advertised; 8.00%

Item Damaged; 52.00%
Change of Mind ; 6.00%

Wrong Item Delivered; 16.00%

From the graph above, main reason for apply Return Policy of LAZADA is item received is
under damaged condition (52%). Meanwhile, there is 18% of respondent and 16% of
respondent will return the items when there is doubt on item Authenticity and wrong item is
received. There is only 8% of respondent would return the items when the items received is
not as advertised and only 6% of respondent would return the items due to change of mind.
The Return Policy of LAZADA has doing a significant job to prevent consumer from
scammed or cheated and protect the rights of consumer

Summary
The purpose of this report was to investigate the improvement of customer services of Lazada
online shopping, to find out the basis for their complaints about the applications and
functions provided and to suggest some possible changes which could benefits the customers.

The study was requested by Hans-Peter Ressel, CEO of Lazada in Malaysia, the company
which has been responsible for the management of the Online Shopping application.

The methods used to obtain data included observation carried out in all retail area of
Multimedia University, a questionnaire survey of fifty students and analysis based on the
respond collected from the observation and questionnaire.

It was found that Lazada faced several problems, including application errors and system
failure. Among the areas of dissatisfaction were online shoppers do not have the ability to
physically inspect or try on the items being considered for purchase, items lost during
delivery, missing orders and late refunds. In general, it was found that Lazada appeared run-
down and poorly maintained.

The following recommendation was made:

 Guarantee delivery system

 Provide good shipment and customer services

 Direct buyer and seller communication

 Good return policy

 Guarantee high quality product

 Ensure the product is delivered in perfect condition

 Affordable

 Discounted price

 Cash on delivery
 Prevent late refund

 Improve Lazada order tracking system

 Provide status and detail of the products

In conclusion, if the recommendation are accepted and implemented, Lazada will be in a

better position to compete with newer online shopping services centres and it should be able
to attract more customers.

Recommendation

In the light of these conclusions, the Lazada online shopping services should consider the
following recommendations.

1) Improve order tracking system

 Allow customers to see their purchase and information regarding the product.

 Allow customers to perform wrong order correction.

 If customers accidentally closed the browser during check out, they are able to make
payment or cancel their purchase when logging back in.

2) Good return policy

 Provide delivers on promises.

 Guarantee return shipment on time

 Make sure refund is proceeded when return is confirmed.

3) Guarantee delivery system

 Make sure the delivery is right on time.

 Inform customer when the delivery is failed to attempt as soon as possible.

 Confirm that the package is delivered to the correct destination.

4) Ensure product is delivered in perfect condition

 Make sure that the packages are delivered without any damage.

 If the package is damaged, make sure that a new package is replaced.

 Confirm that there are no missing items in the package ordered by the customers.