ACKNOWLEDGEMENT

First of all, we would like to express our gratitude to our English for Business
Communication lecturer, Miss Chin Chiu Jin. With her guidance, our report could be done
properly like this. She always gives us her best support and guides us on how to do our
assignments in order to produce a good outcome from the research that has been studied. The
topic that has been chosen by our group is the study of customer satisfaction towards Lazada.

On the other hand, big thanks go to our respondents who have participated in the survey by
spending their valuable time completing the questionnaire. Without their help, we are unable
to complete this research with more detailed and analytic information.

Finally, thanks to our beloved friends who always stick together and work hard to produce a
good assignment with all affordance and responsibility. Hope that all the effort will give us a
lot of benefits and our group project.

SUMMARY

The purpose of this report was to investigate the views of users about the benefits and
satisfaction of using Lazada for online shopping purposes, to find out the weaknesses of
Lazada and to suggest some possible solutions which could improve and benefit the users of
Lazada.

The methods used to generate data were observation, surveys and data analysis. The
observation and survey were conducted on 40 users who were using Lazada for online
shopping purposes, as well as data analysis from the result of the survey.

Lazada was discovered to have a number of issues, including a diminishing rate of user
satisfaction and an increase in the number of complaints. Difficulty in using the app,
unsatisfactory refund services, and the membership program not attracting customers are
among the areas of dissatisfaction with Lazada's online shopping platform. User-friendliness,
payment service, tracking system, and promotion program are among the areas of satisfaction
with Lazada.

The following recommendations were made:

➢ release a tutorial video before the user uses the app

 ➢ simplify the interface by using more graphs than using words
➢ simplify the product name into some keywords or hashtags
➢ improve its refund policy by making it clear and easy
➢ use reverse logistics software to help manage the refund process
➢ try to make the process as simple as possible
➢ offering a free trial membership

In conclusion, if the recommendations are adopted and implemented, Lazada will be in a

stronger position than other e-commerce platforms, attracting more users while also
increasing user happiness.

1.0 INTRODUCTION

1.1 Background

Lazada is the leading international e-Commerce company in Southeast Asia that was founded
by Maximilian Bittner, Mads Faurholt, Stefan Bruun, and Raphael Strauch with the backing
of Rocket Internet in 2012. Today, Lazada is owned by Alibaba Group, and it speeds up the
progress and expands the marketplace to countries such as Indonesia, Malaysia, Philippines,
Singapore, Thailand, and Vietnam through commerce and technology (Lazada, n.d.).

In 2016, for international expansion plans, Alibaba Group purchased a controlling stake in
Lazada (AFP, 2016). Lazada is the Southeast Asia flagship platform of the Alibaba Group
which sells a vast range of products across 18 categories including beauty and fashion, fast-
growing offerings in health, as well as home and living, mother and baby, home appliances
and so forth (Lazada, n.d.). It also has the largest selection of brands and sellers because it is
powered by cutting-edge technology infrastructure, and the biggest logistics and payment
capabilities to connect the wide and diverse regions.
In August 2018, Lazada became the leading e-commerce operator in Southeast Asia based on
average monthly web visits (Digital News Asia Author, 2019). In September 2018, Lazmall
was launched on their sites. According to Keegan (2018), launching Lazamall is to encourage
purchases from 100% authentic brands. Not only that, but Lazmall also provides extra
services such as a 15 days return policy and next-day delivery to protect their consumers.
Hence, consumers are able to obtain accurate and unbiased information about the products
they buy. It also ensures the consumers choose the best one according to their preferences and
avoid being mistreated or misled by the sellers.

According to Jane Zhang (2019), Lazada has become the top e-commerce platform in
Southeast Asia since it has more than 50 million active buyers annually. Last but not least,
Lazada has become a part of consumers’ daily lives nowadays and desires to serve 300
million shoppers by 2030 (Lazada, n.d.).

As the facts mentioned above, Lazada has proved itself to be one of the leading e-Commerce
companies. There are numerous sources such as news, articles and its self-proclamation that
Lazada has been widely used around the- South East Asia. However, customers’ reviews on
Lazada are hardly found. Hence, it has inspired our group to investigate customers’
satisfaction with Lazada. This report would look into the reasons behind customers’
preference for shopping at Lazada rather than other e-commerce platforms.

1.2 Terms of Reference

This report is about customer satisfaction with Lazada. It was requested by Miss Chin Chiu
Jin on 6 October 2022. This report is prepared by Yap Jia Hui, the group leader and her
members, who are Chung Zhong Wen, Ho Jing Rou, Lee Jia Xin, Melvin Lim Wee Yan and
Yap Jia Xuan. Miss Chin Chiu Jin has requested that the report be submitted by 30 December
2022.

1.3 Objectives

The objectives of this study are listed below:

● to investigate customer satisfaction with the Lazada app.

● to determine customer satisfaction with the services provided by Lazada.
● to study customer satisfaction with promotions offered by Lazada.
1.4 Scope

The scope of this study is limited to recruiting 40 respondents aged 18 and above. The
respondents are from various groups such as tertiary students, employers, employees and
retired individuals. The recruitment period will last for a maximum of 2 weeks or will end
when 40 respondents have completed the survey. There are no geographical constraints as it
is conducted through the online survey form.

1.5 Methodology

The primary data of this study was collected via online questionnaires that were distributed to
the target respondents.

1.5.1 Questionnaire Design

A questionnaire design is accurate, appropriate, fair, and capable of coping with all the
responses from the respondents in an ethical way. (Stone, 1993). The questionnaire in this
report had been divided into four parts: demographic information, customer satisfaction with
the Lazada app, services Lazada provides and Lazada promotions. It contained 26 questions
and was distributed to 40 respondents among the target population. The questionnaire was
distributed by using google form. The responses were recorded for the purpose of data
analysis.

1.5.2 Data Analysis

The data from the online questionnaire had been collated and analyzed. Frequency counts
were made of quantifiable items. The data were then tabulated and converted into charts
using Microsoft Excel. The detailed information had been analyzed and recorded in the
report.

2.0 FINDINGS
2.1 Demographic of Respondents

2.1.1 Details of Respondents

Age Group

Figure 1: Percentage of 40 respondents who took the survey based on age group

Figure 1 shows the age group distribution of the 40 survey participants. According to this
data, 65% of the 40 survey respondents were between the ages of 18 and 25. 15% of the 40
responders were between the ages of 26 and 33. It is then followed by 10% of those aged 42
to 49. Only 7.5% were between the ages of 34 and 41, with a lesser percentage of 2.5% being
50 and older. To summarise, the number of survey respondents aged 18 to 25 years is larger
than the other age groups. Respondents between the ages of 18 and 25 performed better on
the poll than other age groups.

2.1.2 Visiting Behaviour

Figure 2: Frequency of respondents shopping at Lazada.

Figure 2 shows the frequency of 40 respondents shopping at Lazada. According to figure 2,
17 out of the 40 respondents visit the Lazada app quarterly. 12 respondents visit the Lazada
app monthly. Also, there are seven respondents who visit the Lazada app weekly. The
remaining four of the respondents who took the survey responded that they visit the app
every day.

2.2 Responses (with graphs or charts)

2.2.1 Satisfaction with Lazada Application

Figure 3: Percentage of 40 respondents who took the survey on the satisfaction of Lazada
application.
Figure 3 shows the 40 Lazada app satisfaction survey respondents. User-friendliness,
interface, layout, site navigation, and search engine were assessed. The majority of
respondents (42.5%) do not have an opinion on the user-friendliness of the Lazada app. Yet
another survey found that 75% of respondents were either somewhat or extremely happy with
the ease of use. However, 7.5 percent are just dissatisfied and 12.2 percent are very
dissatisfied.Secondly, the result shows that just one respondent (2.5%) is really happy with
the Lazada app's user interface. Only one-quarter of users are happy with the design of the
interface. Only 40% of respondents had a positive impression of the application's user
interface, while 32.5% have a negative impression.Figure 3 shows 40 respondents' Lazada
app design layout satisfaction. The figure shows 5% are very satisfied and 30% are satisfied
with the layout. 37.5% are neutral. 12.5% and 15% of respondents are unsatisfied with the
design layout.Fourth, most respondents are happy with site navigation. 15% are extremely
pleased. 27.5% chose indifferent for Lazada app homepage navigation satisfaction. In regards
to the figure, only 5% of respondents are very satisfied with Lazada application’s search
engine. 37.5% of respondents are also satisfied with it. 40% of respondents remain neutral.
5% of respondents who have completed the survey feel unsatisfied with the search engine.
The remaining 12.5% of respondents are very unsatisfied with the Lazada application’s
search engine.

2.2.2 Satisfaction with Lazada’s Services

Payment methods

Figure 4: Level of Satisfaction with Lazada Payment Service

Figure 4 is the data that shows the 40 respondents’ satisfaction with Lazada’s payment
services which are the payment variety, payment sufficiency, payment transaction security,
refund system and refund issues. Based on figure 4 has shown that the majority of the
respondents are satisfied with the payment of variety. From the data it shows that 17
respondents are very satisfied, 12 respondents are satisfied, and 7 respondents did not have
any opinion. However, a minority of respondents are unsatisfied and very unsatisfied with the
variety of payment which is only 4 respondents. Besides, 16 respondents are very satisfied
with the payment of sufficiency, 11 respondents are satisfied, and 9 respondents have no
opinion. However, only a total of 4 respondents are unsatisfied and very unsatisfied. Next, the
transaction security, the highest data showed that 16 respondents were satisfied, 10
respondents are very satisfied and only 2 are unsatisfied and 3 are very unsatisfied. However,
9 respondents are fair with this transaction security. In addition, based on figure 4 data show
that 16 respondents have no opinion with the refund system. Besides, 6 respondents were
very satisfied and 8 respondents are satisfied, and every 5 respondents were unsatisfied and
very unsatisfied. Last but not least, the majority of respondents have no opinion on the refund
issue. However, each of the 5 respondents is very satisfied, unsatisfied, and very unsatisfied
with the issue. In contrast, only 7 respondents were satisfied.

Delivery Systems

Figure 5: Percentage of 40 respondents who took the survey on the satisfaction of delivery
systems.
As shown in Figure 5, the Lazada delivery service is split into five categories: cancellation
systems, tracking systems, package condition, timely delivery, and staff attitude. The delivery
service's tracking system is the most satisfying at 25%. Delivery timeliness and parcel
condition were the second most important factors for 40 survey respondents. The proportion
of both characteristics is 23.1%. Worker attitude follows with 19.2%. Among the five
categories, 40 respondents are least satisfied with the cancellation mechanisms.

2.2.3 Satisfaction with Lazada’s Promotion Programs

Figure 6: Levels of Satisfaction with Lazada’s Promotion Programs

Figure 6 has shown the 40 respondents’ satisfaction with Lazada’s Promotion Program. The
promotion programs include daily check-in rewards, limited event sales promotions, voucher
promotions, and membership promotions. Based on figure 6 has shown that the majority of
respondents have no opinion with all the promotion programs. For the daily check-in reward,
12 respondents have no opinion. However, 8 respondents were satisfied and very satisfied
with the daily check-in reward. The minority group of respondents are unsatisfied and very
unsatisfied, which is 7 and 5 respectively. Second is the limited event sales promotion, the
highest data showed that 15 respondents have no opinion with the event sales promotion, but
11 respondents are very satisfied and 5 respondents were satisfied. However, 7 respondents
are unsatisfied and 2 respondents are very unsatisfied. Third, according to figure 6, 12
respondents are respectively very satisfied and have no opinion on the voucher promotion
given by Lazada. However, the other minority group of respondents are categorized into 8
people are satisfied, 5 people are unsatisfied and 5 people are very unsatisfied with the
voucher promotion. Lastly, the majority of respondents had no opinion with the membership
system promotion. However, the minority of respondents who are separated into 5
respondents are very satisfied, and 6 respondents are satisfied. In contrast, 6 respondents are
unsatisfied and 4 respondents are very unsatisfied.

2.3 Summary of Key Findings

Following is a summary of the major findings of this study

Figure 1

1. It was found that the gender of respondents is equal by 50%.

2. The majority of respondents were predominantly in the younger age groups: 65%
were aged between 18-25 years old.

Figure 2

3. It can be concluded that the majority of respondents visit Lazada quarterly.

Figure 3

4. It was found that over half of the respondents agree or have no opinion with the user-
friendliness of Lazada app.
 5. It showed that 40% of respondents are neutral with the interface of the Lazada app.

6. According to the data that was collected, 37.5% of the respondents are neutral and
also 35% of respondents are satisfied with the design layout.

7. It can be concluded that the homepage of Lazada App is easy to navigate because
30% of respondents are satisfied.

8. It was found that 40% of respondents have no opinion with the accuracy of Lazada
app’s search engine but 37.5% of respondents are satisfied with it.

9. It was found that the second highest percentage on Likert scale of the satisfaction with
Lazada Application is 25% and above respondents were satisfied with the overall
functionality of Lazada Application.

Figure 4

10. According to the data that was collected, 42.5% of respondents were satisfied that
Lazada has a variety of payment methods.

11. It was found that 40% of respondents thought the payment methods of Lazada are
sufficient and that Lazada’s online payment transaction is safe and secure.

12. It showed that the majority of respondents have no opinion with Lazada's refund
system and the process of refund issues.

Figure 5

13. It was found that 30% of respondents were very satisfied with the punctuality of
Lazada delivery.

14. It showed that 35% of respondents have no opinion with the attitude of the delivery
personnel and a total of 55% of respondents were satisfied and very satisfied which
means more than half of the respondents are satisfied.

15. According to the data that was collected, 35% of the respondents have no opinion
with the condition of the parcels that they received, but a total of 50% of the
respondents were satisfied and very satisfied with the condition of the parcels that
they received.
 16. It was found that 32.5% of the respondents were satisfied with the functionality of the
tracking system.

17. It showed that the majority of respondents have no issue with the cancellation system
of Lazada, and only a minority total of 15% of respondents were not satisfied with the
cancellation system.

Figure 6

18. According to the data collected, 30% of the respondents felt neutral with the daily
check-in reward promotion program.

19. It was found that 37.5% of respondents have no opinion about the limited event sales
promotion, but 27.5% of the respondents were very satisfied with this promotion.

20. It showed that 30% of the respondents were very satisfied and had no opinion about
the voucher promotion.

21. It showed that 47.5% of the respondents felt neutral with the membership system
promotion.

3.0 CONCLUSION

From the finding, there are several conclusions that can be made.

3.1 Satisfaction with Lazada app

● On those findings, the majority of respondents state that they give their friendliness a
fair grade.
● A negative impression on Lazada’s application user interface
● Unsatisfied with the Lazada application’s search engine.

3.2 Satisfaction with Lazada’s Service

● A majority of respondents are satisfied with variety of payment method
● The majority of respondents are very confidence with Lazada transaction security
● The minority of respondents have a unhappy experience with the refund issues
 ● The cancellation mechanisms are least satisfied by the respondents for the delivery
service.

3.3 Satisfaction with Lazada’s Promotion Programs

● The majority of respondents are state fair with all the promotion programs.
● The majority of respondents are very happy with limited event sales promotion.
● Unsatisfied experience with membership program
4.0 RECOMMENDATIONS

The recommendation was suggested based on the questionnaire we distributed to 40

respondents through a google form. The recommendation was also suggested in three
sections which are satisfaction with Lazada app, Lazada’s service and Lazada’s promotion
programs. This report was only suggested on the data that are stated fair or negative.

4.1 Recommendation on Satisfaction with Lazada App

Based on the data of the questionnaire, we found out that most of the users were stated fair in
rating their friendliness when using the Lazada app first time. We suggested that Lazada
could release a tutorial video before the user uses the app. Secondly, the rating of the
interface was fair enough for most of our respondents. The rating could be improved if
Lazada make some amendments. Lazada could simplify the interface by using more graphs
than using words. Next, our respondents were satisfied with the accuracy of Lazada’s search
engine. It is a good result for Lazada, but it always has space to improve. Our suggestion is
Lazada could simplify the product name into some keywords or hashtags which could make
the user easier to search for any specific products. The suggestion would increase the
satisfaction of Lazada users based on the research data.

4.2 Recommendation on Satisfaction with Lazada’s Service

The recommendation was suggested in two sections; payment and delivery which is the most
important part of Lazada. Out of all the payment sections, the refund services of Lazada were
only stated as fair enough for our respondents. We suggested that Lazada could improve its
refund policy by making it clear and easy to find on the main page of the app. Lazada could
also use reverse logistics software to help manage the refund process. It could help the
consumer know the status of their refund. For the delivery systems, there was only the
cancellation service was rated fair. We suggested Lazada try to make the process as easy as
possible for the customer, while also recommending some of Lazada's other options and deals
to better fit the customer’s service. It could improve Lazada’s service quality, which will
improve the experience and help to retain other customers.

4.3 Recommendation on Satisfaction with Lazada’s Promotion Programs

Based on the research data of the questionnaire, most of Lazada’s promotion programs were
satisfied by our respondents such as daily check-in rewards, event sales and others. But the
membership programs of Lazada’s app were only fair for our respondents. Based on the
membership rating, we suggested offering free trial membership for those who have never
been a member of Lazada app. It could let the user test out all the benefits of the membership
programs. Secondly, Lazada could increase the benefit of the memberships. For example,
Lazada could offer more discounts and cash back for certain purchases.

5.0 BIBLIOGRAPHY

Multimedia University (MMU). (n.d.). Retrieved October 13, 2022, from

https://www.universityfairs.com/institutions/multimedia-university-mmu

Stone, D. H. (1993). Design a questionnaire. British Medical Journal, 307(6914),

1264-1266.https://www.bmj.com/content/307/6914/1264.short

Lazada. (n.d.). About. Retrieved from https://www.lazada.com/en/about/

AFP. (2016, April 12). Alibaba buys controlling stake in Lazada, expands into
Southeast Asia. New Straits Times. Retrieved from
https://www.nst.com.my/news/2016/04/138807/alibaba-buys-controlling-stake-
lazada-expands-southeast-asia

Digital News Asia Author. (2019, February 14). iPrice report sees Lazada as most
visited e-commerce site in SEA for 4Q18. Digital News Asia. Retrieved from
https://www.digitalnewsasia.com/digital-economy/iprice-report-sees-lazada-most-
visited-e-commerce-site-sea-4q18

Keegan. (2018, September 5). Lazada to launch LazMall featuring authentic products
and next-day shipping + massive discounts on 9 September 2018. Tech Nave.
Retrieved from https://technave.com/gadget/Lazada-to-launch-LazMall-featuring-
authentic-products-and-next-day-shipping-massive-discounts-on-9-September-2018-
12737.html

Jane, Z. (2019, September 11). Lazada claims it is e-commerce leader in South-East

Asia with more than 50 million buyers. The Star. Retrieved from
https://www.thestar.com.my/tech/tech-news/2019/09/11/lazada-claims-it-is-e-
commerce-leader-in-south-east-asia-with-more-than-50-million-buyers