English for business com

A REPORT ON THE
PERCEPTION OF MMU MELAKA STUDENTS’ TOWARDS
ONLINE SHOPPING ON LAZADA
Submitted to
MR CHUN LI
Chief Executive Officer
LAZADA HEADQUARTERS MALAYSIA
147, Jalan Raja Muda Abdul Aziz, Kampung Baru,
50300 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur
Prepared by
Nur Emilyn Yoo, Rabiatul Azurin Rosman,
Au Chye Yin, Tan Vi Yi and Chin Mei Ying
Students of BAE 1044 (English for Business Communication)
MULTIMEDIA UNIVERSITY MELAKA
Jalan Ayer Keroh Lama, 75450 Bukit Beruang
Melaka
SUMMARY
The purpose of this report was to understand better on MMUs students’ spending
habits on Lazada, to learn about MMU students’ product choices and to learn why
MMU students’ chooses Lazada over other platforms.
The study was requested by Mr. Chun Li, Chief Executive Officer (CEO) of Lazada,
a company that is dedicated to developing online shopping for people who like to shop
online. Lazada currently has a total of 5.3 million users from all around the world
(Smith, 2020).
There were a few methods that we used in order to obtain data regarding the survey.
The methods that we used were, we conducted an online questionnaire survey by using
Google Forms. Next, we have also prepared a QR code which will be directed to the
questionnaire link as it is hassle-free. We distributed both the direct link and QR code
through social media such as Whatsapp, Messenger and Instagram. It was sent to
various huge clubs’ group chats. By sending it to clubs’ group chats, we were able to
reach students from different faculties and also year of study.
However, we had also faced some difficulties as there were a handful of students who
chose to ignore us, thus putting us in an embarrassing situation. Furthermore, some
students also took it lightly by filling the form randomly without much thought.
ACKNOWLEDGEMENTS
We would like to thank the following persons who assisted us in the preparation of the
present report:
1. Professor Dato’ Dr. Mazliham Mohd Su’ud, President of MMU, gave us this golden
opportunity to complete this report.
2. Professor Dr. Gerald Goh Guan Gan, dean of the Faculty of Business, gives us this
opportunity to assign to this subject so that we can complete this report.
3. Encik Abd Rahim Bin Abd Rahman, our lecturer, for the valuable advice,
encouragement and guidance provided to us which enables us to complete the report
by the deadline of submission.
4. All MMU students who participate in filling the survey form.
5. All members who helped us to complete this report.
TABLE OF CONTENTS
SUMMARY
ACKNOWLEDGEMENTS
TABLE OF CONTENTS
LIST OF FIGURES
Introduction
1.1 Background
1.2 Terms Of Reference
1.3 Purpose
1.4 Scope Defined
1.5 Methodology
1
1
1
2
2
2
Findings
2.1 Details of Respondents
2.2 Objective 1
2.3 Objective 2
2.4 Objective 3
3
3
4
5
6
Conclusion
3.1 Objective 1
3.2 Objective 2
3.3 Objective 3
8
8
8
9
Recommendations
9
Appendix
151
Reference
16
LIST OF FIGURES
Figure No.
Title
Page
1.
Respondents by Gender
3
2.
Respondents by Faculty
3
3.
Respondents by Year of Study
4
4.
Amount Spend Per Month
4
5.
Monthly Allowance
5
6.
Discovery Method
5
7.
Product Choices
6
8.
Time Spent On Lazada
7
9.
Main Purpose of Using Lazada
7
10.
Level of Satisfaction
8
11.
Likelihood to Recommend
9
Introduction
1.1 Background
In the 21st century, everyone can easily get a mobile device among themselves
anywhere. The advancement in internet technology has brought the paradigm shift in
the ways of shopping (Kumar, 2016). First of all, Lazada is an international ecommerce company dedicated to developing online shopping for people who like to
shop online. It allows consumers to purchase goods or services directly from the sellers
or vendors through the application and official websites in real-time, without the need
for intermediary service. In the past, consumers used to go to different stores before
purchasing, because it was not easy to obtain complete information about the products
and the price ranges. However, Lazada has made it easier for consumers to get access
to the products and services available worldwide, while saving time, money and other
resources. It has brought plenty of benefits to consumers in terms of convenience.
Moreover, Lazada is one of the major electronic commerce platforms that
successfully implemented effective online shopping. Lazada was established by
Rocket Internet in 2012, aiming to bring a high quality online shopping experience to
Southeast Asia. Lazada’s e-commerce websites originally launched in 2012 in six
Asean countries, including Indonesia, Philippines, Singapore, Thailand, Vietnam and
Malaysia. It provides multiple categories of products such as consumer electronics,
household products, groceries, sport equipment, fashion and others. In 2016, “Lazada
became the regional flagship of the Alibaba Group, and is backed by Alibaba’s bestin-class technology infrastructure.” (Lazada, 2019). In short, Lazada has created
tremendous opportunities for innovation and economic growth in Asia, and makes the
online shopping experience more convenient and secure.
1.3 Purpose
● To understand better on MMUs students’ spending habits on Lazada.
● To learn MMU students’ product choices.
● To learn why MMU students’ choose Lazada over other platforms.
1.4 Scope Defined
The scope of this report is to study the perception of MMU Melaka students’ towards
online shopping on Lazada. The reason for choosing this topic in our report is because
most students have at least one online shopping experience; therefore we can easily
conduct our survey. In addition, the report is concerned mainly regarding MMU
students’ behavior towards online shopping, focusing on students’ preference in the
attributes of online shopping. This study is undertaken among different faculties
students in MMU Melaka Campus. In the study, we are targeting an estimation of 50
MMU students from Melaka Campus as our respondents.
1.5 Methodology
In order to collect data for our topic, we used a survey method by using Google form
as our primary method. Although we are in Recovery Movement Control Disorder
(RMCO),we are still restricted to meet students from Multimedia University Melaka
Campus. Therefore, an online survey method seems to be reasonable for us to
complete our study in this assignment. We brainstormed to create a few direct
questions that related to our topic for the questionnaire. We believe that a direct
question will be more convenient for respondents as it saves more time to answer. The
Google form for the questionnaire will be shared via every members’ social media
such as WhatsApp and Instagram. This platform is able to reach the students of MMU
Melaka Campus.
Findings
On 27 July 2020, a questionnaire consisting of 12 items was administered to a total of
52 users of Lazada shopping application. A copy of the questionnaire can be found in
the Appendix section attached below.
2.1 Details of Respondents
More than half (55.8%) of the respondents were female and the remaining (44.2%)
were male. This gender division reflected the overall composition of Lazada’s
application users.
Figure 1: Respondents by Faculty
The majority respondents were FOB students, with the largest proportion (36.5%)
followed by FIST students (26.9%). Coming up next were FET students (19.2%),
and a smaller percentage (17.3%) were students from FOL. The age breakdown is
shown in Figure 1.
Figure 2: Respondents by Year
Based on the survey, most of the respondents (46.2%) were in their second year of
study, followed by students who were in their third year (28.8%) while first year
students (15.4%) came in real close. A smaller percentage (9.6%) were students
who were in their fourth year which can be seen in Figure 2 above.
2.2 Objective 1
Figure 3 which is attached below shows the amount MMU students spent on
Lazada per month which ranges from as low as RM1 to more than RM150.
Majority of the respondents (32.7%) spent around RM30 to RM59 per month on
the online shopping application. Next, there was a tie (21.2%) between RM60RM99 and more than RM150. Coming in close (17.3%) was RM100 to RM149
and a smaller percentage (7.7%) spent only RM1 to RM29.
Figure 3: Amount Users Spent on Lazada Monthly
It was assumed that all students received allowance only from their parents and did
not have any job for a side income. As can be seen in Figure 4, most students (42.6%)
receive their monthly allowance from RM300 to RM499, followed by RM500 to
RM699 (29.8%). Next, (23.4%) students who use Lazada received RM100 to RM299
monthly allowance. However, only (4.3%) has an allowance of more than RM900 and
none received RM700 to RM899.
Figure 4: Respondents’ Monthly Allowance
2.3 Objective 2
Figure 5: How Respondents Discover Lazada
Figure 5 shows the ways how MMU students discovered Lazada. According to the
result, 22 respondents mentioned that they discovered Lazada through social media,
while seven respondents discovered it through TV advertising. On the other hand, 15
respondents found out about Lazada due to the great discounts provided by online
sellers. The rest of the (8) respondents stated that they discovered Lazada through the
most organic way of spreading information which is the world of mouth. For example,
drive-time radio, friend’s advice, and spokesperson.
Figure 6: What Respondents Spent On Lazada
Figure 6 shows the products that respondents are more likely to spend on Lazada. On
this particular question, most of the respondents (51.9%) spent on clothes; therefore,
the percentage of “Clothes” is the highest compared to others. Next, 17.3% of
respondents spent on essential products, and 19.2% of respondents spent on
electronics products. Moreover, none of the respondents had spent on food, which is
the lowest percentage of these products. Through this result, we can see that the
majority of the respondents prefer to buy clothes in Lazada.
Figure 7: Time Spent on Lazada Per Week
The distribution of frequency of respondents’s time spent on Lazada per week can be
seen on Figure 7. Based on figure 6, more than half of MMU students who participated
in this survey (32 respondents) voted for “1-3 hours”, followed by nine students voted
for “4-7 hours”, and eight students voted for “8-12 hours”. There were only three
students who voted for “8-12 hours”. Thus, it showed that most of the students have a
good attitude towards online shopping because they will not spend too much time on
online shopping blindly.
2.4 Objective 3
Figure 8: Why Respondents choose to shop on Lazada
Figure 8 shows results from 52 respondents from MMU students by the reasons why
respondents choose to shop on Lazada. It consists of five reasons which are
convenient, private, inexpensive, time-saving, and product characteristics. The
responses of inexpensive are having the highest response by the respondents with 35%
(18 respondents out of 52). Next, the response of convenience is 25% which is
responded by 13 respondents. Moreover, time-saving and product characteristics have
the same response which are 15%, with eight respondents voting it. On the other hand,
private has the lowest response which is 10%.
Figure 9: Respondents satisfaction level
Based on figure 9 shows the result from MMU students, by how satisfied the
respondent is after shop online Lazada. It consists of four types of categories that are
very satisfied to dissatisfied. The highest response is satisfied which is responded by
28 respondents with 53.8%. Next, it has around 20 respondents voted neutral with
38.5%. However, there are two lower responses which are very satisfied and
dissatisfied which responded by two respondents with 3.8% respectively.
Figure 10: How likely will respondents recommend Lazada to others
Based on figure 10 shows the result of MMU students, by how likely respondents
recommend Lazada to others. The highest number response is likely which is
responded by 27 out of 52 respondents with 52%. On the other hand, the response of
unsure and very likely are 25% and 19% respectively. However, it was 4% unlikely
which was responded by two respondents.
Conclusion
As a conclusion, we managed to get 52 respondents in our survey despite the fact
that we are in the middle of Recovery Movement Control Disorder (RMCO). It is not
an excuse for us to neglect our task and duty as a student. There are 23 male students
and 29 female students from Multimedia University (MMU) Melaka Campus. They
have been using Lazada as a medium to do online shopping. After conducting the
survey, there are some of the conclusions that can be made.
3.1 Objective 1
First and foremost, objective 1 is computing MMU students’ spending habits on
Lazada. In the survey, we can see that majorities of the students tend to spend between
(RM30- RM 59) on Lazada monthly. Based on the findings we could see there is a tie
on the amount between (RM 60-RM 100) and (more than RM 150). These results can
be related to the allowance that the student receives monthly. In the survey, the
majority of the students receive (RM300-RM499) per month. Therefore, we can
conclude that, by the high allowance that the student receives per month they could
purchase any products that offer more than RM 150 per month as the price offer is
within their budget.
3.2 Objective 2
Next, the second objective is figuring about MMU students’ product choices on
Lazada. From the survey, almost half of the respondents purchased clothes through
Lazada. Second highest purchased product is electronics. The rising of these
purchased products can be related to their marketing strategies that used social media
as a platform to promote their product. This can be proved through our survey’s results
on how MMU students’ discover Lazada. The results are that the majority of the MMU
students’ discover Lazada through social media. Therefore, we can conclude that,
through social media, a product such as clothes can easily convince students to
purchase that particular clothes brand and fashion.
3.3 Objective 3
Last but not least, the third objective is to reason out the fact on why MMU students
choose Lazada over other online purchasing platforms. Based on the survey, we can
conclude that the majority of MMU students’ choose Lazada because it is inexpensive.
In other words, the prices offered in Lazada are reasonable and affordable. Other than
that, almost half of the respondents agreed that they are satisfied with Lazada. This
satisfaction could influence the students to repeat the same product through the same
platform and most students likely will recommend Lazada to others. This positive
feedback will give a positive impact on Lazada to attract more and more customers
and users.
Recommendations
In the light of these conclusions, the headquarters of Lazada, Malaysia should consider
the following recommendations
4.1 Pricing
● It is recommended that the Sales and Marketing team provide more vouchers.
● Have flash sales every two months.
● Enable discounts when customers purchase more than 10 same items.
● Have installment payment plans for products that cost more than RM2500.
4.2 Products Availability
Since none of the respondents have bought food through the platform, it is
recommended that Lazada should provide a wider range of food available on the
applications to improve the convenience of customers.
● Provide healthy drinks such as yogurt.
● Provide instant or ready-to-go meals.
● Furthermore, promotional efforts on social media should be made
concentrating on the availability of products.
4.3 Customer Service
● It is recommended that all sellers on the platform should reply to customers
enquiries within 5 hours.
● Sellers shall not be allowed to reply rudely when customers are not satisfied
with the products they received.
● In any cases of refunds, the headquarters should bear half of the cost needed
to ship the items back.
● A hotline number should be made available for 24 hours.
Appendix
Survey Questions:
1) Gender
❏ Male
❏ Female
2) Faculty
❏
❏
❏
❏
FOB
FIST
FOL
FET
3) Level Of Study
❏
❏
❏
❏
Year 1
Year 2
Year 3
Year 4
4) How did you discover Lazada?
❏
❏
❏
❏
❏
TV ads
Social media
Word of mouth
Discounts provided
Others:______
5) How many hours do you spend on Lazada per week?
❏
❏
❏
❏
1-3 hours
4-7 hours
8-12 hours
More than 13 hours
6) How much do you spend on Lazada per month?
❏
❏
❏
❏
❏
RM1-RM29
RM30-RM59
RM60-RM99
RM100-RM149
More than RM150
7) What is your monthly allowance?
❏
❏
❏
❏
❏
RM100-RM299
RM300-RM499
RM500-RM699
RM700-RM899
More than RM900
8) What do you usually purchase?
❏ Clothes
❏ Electronics
❏ Essentials
❏ Food
❏ Games
❏ Others:______
9) Why do you choose to shop on Lazada over other
platforms?
❏
❏
❏
❏
❏
❏
Convenient
Private
Inexpensive
Time saving
Product characteristics
Others:_______
10) How satisfied are you with Lazada?
❏
❏
❏
❏
❏
Very satisfied
Satisfied
Neutral
Dissatisfied
Very dissatisfied
11) What way would you like Lazada to notify you
regarding the sales and promotions?
❏
❏
❏
❏
Email
Message (SMS)
Letter
In-app notifications
12) How likely will you recommend Lazada to your
friends?
❏
❏
❏
❏
❏
Very likely
Likely
Unsure
Unlikely
Very likely
Tabulation of Data:
Male
Female
TOTAL
No.
23
29
52
Percentage %
55.8
44.2
100
Table 1: Gender
FOB
FIST
FOL
FET
TOTAL
No.
19
14
9
10
52
Percentage %
36.5
29.6
17.3
19.2
100
Table 2: Faculty
Year 1
Year 2
Year 3
Year 4
TOTAL
No.
8
24
15
5
52
Percentage %
15.4
46.2
28.8
9.6
100
Table 3: Year of Study
TV ads
Social
media
Word of
mouth
Discounts
provided
Others
TOTAL
No.
7
22
8
15
0
52
Percentage %
13.5
42.3
15.4
28.8
0
100
Table 4: How Respondents Discover Lazada
1-3 hours
4-7 hours
8-12 hours
More than
13 hours
TOTAL
No.
32
9
8
3
52
Percentage %
61.5
17.3
15.4
5.8
100
Table 5: Time Spent on Lazada Per Week
RM1-29
RM30-59
RM60-99
RM100-149
More than
RM150
TOTAL
No.
4
17
11
9
11
52
Percentage
%
7.7
32.7
21.2
17.3
21.2
100
Table 6: Amount Spent on Lazada Per Month
RM100-299
RM300-499
RM500-699
RM700-899
More than
RM900
TOTAL
No.
11
20
14
0
2
52
Percentage
%
23.4
42.6
29.8
0
4.3
100
Table 7: Respondents Monthly Allowance
Clothes
Electronics
Essentials
Foods
Games
Others
TOTAL
No.
27
10
9
0
6
0
52
Percentage
%
51.9
19.2
17.3
0
11.5
0
100
Table 8: What Respondents Spent On
Convenie
nt
Private
Inexpensive
Time
saving
Product
characteristics
Others
TOTAL
No.
13
5
18
8
8
0
52
Percentag
e%
25
9.6
34.6
15.4
15.4
0
100
Table 9: Why Respondents Chose Lazada Over Other Platforms
Very
satisfied
Satisfied
Neutral
Dissatisfied
Very
dissatisfied
TOTAL
No.
2
28
20
2
0
52
Percentage
%
3.8
53.8
38.5
3.8
0
100
Table 10: Respondents Satisfaction Level
Email
Message
Letter
In-app
notifications
TOTAL
No.
13
13
0
26
52
Percentage %
25
25
0
50
100
Table 11: Respondents Preferred Contact Method
Very likely
Likely
Unsure
Unlikely
Very
unlikely
TOTAL
No.
10
27
13
2
0
52
Percentage
%
19.2
51.9
25
3.8
0
100
Table 12: How Likely Will Respondents Recommend Lazada to Others
Reference
Smith C. (July 1, 2020). Lazada Statistics and Facts. Retrieved from
https://expandedramblings.com/index.php/lazada-statistics-facts/
Kumar P. (January,2016). Shift from physical shopping to online shopping: A sociocultural analysis. Retrieved from
https://www.researchgate.net/publication/308223586_Shift_from_physical_s
hopping_to_online_shopping_A_sociocultural_analysis#:~:text=The%20advancement%20in%20internet%20techno
logy,getting%20popularity%20among%20Indian%20consumers.
Lazada Group (2019). Setting the pace for a retail revolution. Retrieved from
https://www.lazada.com/en/about/
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