TAOBAO UC FYP Lam Ka Ho 1155005583 Siu Sze Man 1155015909 Wong Hoi Yi 1155016756 Wong Wai Keung...

TAOBAOUC FYPLam Ka Ho 1155005583Siu Sze Man 1155015909Wong Hoi Yi 1155016756

Wong Wai Keung 1155015997

Introduction• Internet economy amounted to $96 billion

5.9 % in Hong Kong’s GDP• 2015: it would reach 167 billion

8.2% of the city’s GDPwith $15 billion being the expenditure spent on online shopping

• Internet economy is such a lucrative prospect

• TaoBao one of the most famous online shopping sites that enjoys immense success by this development.

TaoBao’s Background• Founded on May 10th, 2003

after Alibaba had invested ￥ 10million

• Originally : platform for the exchange of 2nd hand goods• Now :platform for online vendors

• 2011: Sales record, together with tmall(天猫 ) exceeded ￥ 1000billion

• 1.4 million registered users in Hong Kong in 2013• A fourfold increase than that in 2010

TaoBao’s Shopping Process

Wait for shipmentGoods

received

1. Register an account 2. Download WangWang (阿里旺旺 )

3. Choose the products (shopping)

4. Bid and Pay for the desired products5. Wait for shipment

Simple | Clearly presented links | Tidiness | Convenience

TaoBao’s Attractions• Anonymous rating system

• IM system

• Buyers from Hong Kong, Macau and Taiwan can choose from the 8 logistics companies

• The outlook of HK version Taobao is localized to look like a magazine

• Good promotion

Research Objectives

1. To examine the general satisfaction of teenagers( mostly CUHK students )about TaoBao’s various aspects, i.e. customer service, products etc.

Why CUHK students?- Easy to collect data- Teenagers shall do more online shopping.

Research Objectives

2. Focus on may be one of the deficiencies raised by teenagers about TaoBao and to come up with certain plans or suggestions for its betterment

Methodology• 1) Online questionnaires

- 111 samples collected

• 2) Face-to-Face interviews

Data Analysis (questionnaires)

1. Demographic background• Within the 111 samples

more than a half of them have shopped from TaoBao before

Yes59%

No 41%

Number of teenagers who have the experience of shopping on TaoBao

Data Analysis2) Shopping frequencies• 88% (57 out of 65 people) would shop on TaoBao

once or less than once a month

• Remaining 12% of the samples (8 out of 65) will do the shopping twice or more a month.

Once or less than a month88%

Twice or even 4 times a month 12%

Data Analysis

3) Monthly income of the participants• 63% of them have a monthly income ranging from <$3000 to $5000

• The rest 37% of them have a relatively higher monthly income ranging from $7000 to >$11000

63%

37%

<$3000 to $5000 $7000 to >$11000

Data Analysis4) Shopping Frequencies• 8% of the interviewees with a higher monthly salary will

shop twice or even four times monthly on TaoBao. • 92% of the interviewees, will still do shopping on TaoBao

less frequently, say roughly once a month only.

8%

92%

Shopping frequencies of those with a monthly salary $7000 to >$11000

more than once a month once a month

Data Analysis• Postulation:

People with greater incomes will consume more since their purchasing power increases

• Teenagers with higher salary don’t necessarily shop more on TaoBao

• They can afford goods which are more expensive buy the same type of products from the local vendors to save the troubles

6) Products Categories

• The majority of the interviewees procure clothes on TaoBao.

• Electrical Appliances and Household products amount to lesser portions

Clothes55%

Electrical Appliances22%

Household Products23%

Data Analysis

Satisfaction about TaoBao• Two sets of questions were set

• 1 for those who have shopped on TaoBao before- asking their general satisfaction about the various aspects of TaoBao

• 1 for those who haven’t shopped on TaoBao before - asking them how they generally perceive about TaoBao

• Analyze the data we have collected from those who haven’t shopped on TaoBao.

Satisfaction about TaoBao ( haven’t shopped)

• 60% of those who haven’t shopped on TaoBao before would think that this website is easy to browse and operate.

• E.g. products categorization for easy surfing, capability of its search engine

• User-friendliness

38%

62%

7.1 Taobao web is Easy to use

Easy Not Easy

Satisfaction about TaoBao( haven’t shopped)

• 67% of the samples agree that the products sold on TaoBao are cheap

• 50% agree that shopping on TaoBao is convenient.

• “Convenience”: how well is TaoBao functioning to ensure a smooth shopping procedure; how well it is doing to facilitate a flawless flow of shopping

67%

33%

7.2 Agree that the products sold on TaoBao are cheap

Agree Disagree

50%50%

7.3 agree that shopping on TaoBao is convenient

Agree Disagee

• Only 29% of people agree the after-sale rules offered by TaoBao are clear

• Less than half of the people agree that the products’ descriptions are accurate

• by “accurate” it implies the productions information subtly describes what the products are ought to be

• 85% disagree with buying from TaoBao is indeed secure

28%

72%

7.4 after-sale rules offered by TaoBao are clear

Agree Disagee

39%

61%

7.5 accuracy of the products in-formation provided

Agree Disagee

Agree15%

Disagree85%

7.6 Buying from TaoBao is secure

Satisfaction about TaoBao( haven’t shopped)

CategoryClothes

• High Quality• Safe to use• Warranty• Price• Accurate information

Agree46%Disagree

54%

High Quality

Agree86%

Disagree14%

Safe to use

Agree8%

Disagree69%

Strongly disagree

22%

warranty

agree25%

straonly agree75%

Low price

Strongly disagree17%

disagree19%

agree47%

Strongly agree17%

accurate inf

Satisfaction about TaoBao( have shopped)

Clothes• Not for high quality clothing• Safe to wear• Not covered by warranty• Absolutely low price• Quite reliable information of description

• High quality• Safe to use• Warranty• Low price• Accurate Information

Agree38%

Disagree62%

high quality

Agree92%

Disagree8%

safe to use

Agree15%

Disagree62%

Strongly disagree

23%

warranty

Agree27%

Strongly agree73%

low price

Strongly disagree7%

disagree20%

agree47%

stronly agree27%

accurate inf.

CategoryHousehold product


Household Product• Not for high quality• Very safe to use• Absolutely low price• Mostly not covered by warranty• Reliable Information

• high quality• Safe to use• Warranty• Low price• Accurate Information

Agree29%

Disagree64%

Strongly disagree7%

high quality

Agree57%

Disagree43%

safe to use

Agree7%

Disagree64%

Strongly disagree

29%

warranty

strongly disagree7%disagree

14%

agree36%

strongly agree43%

low price

strongly disagree7%

disagree21%

agree43%

strongly agree29%

accurate Inf.

CategoryElectrical appliance


Electrical appliance• Not for high quality• Safeness is determined• Relatively cheap• Not covered by warranty• Quite reliable on the information provided

Satisfaction about TaoBao (Have shopped )

• 59% of them (65 people) have shopped from TaoBao before

• There are 15 statements about the positive comments on TaoBao- people are asked to determine how far they agree with those statements.

• All statements are ranked in terms people’s satisfactory towards those statements and their rating scales are calculated.

Rating Average• A scale from Strongly Disagree to Strongly Agree is

weighted as :

Strongly disagree = 1

Disagree = 2

Agree = 3

Strongly agree = 4

Larger the ratings average, more they agree with that positive statement.

• Rating average = 2.89• Close to Agree rating • people are quite satisfy with the

convenience of TaoBao.

9%

11%

62%

18%

1) Shopping in TaoBao is con-venient

Strongly disagree

Disagree

Agree

Strongly agree

2%3%

29%

66%

2) The product from TaoBao is cheap

Strongly disagree

Disagree

Agree

Strongly agree

• Rating average = 3.60• close to the strongly agree rating • only 5% of people disagree and

strongly disagree • most people are satisfied with the

low price of products that they can find from TaoBao.

Satisfaction about TaoBao ( have shopped)

• Rating average = 3.14• Agree rating• most people think that there is a

large variety of goods that they can choose and they can find different things they want.

2%14%

54%

30%

3) There is a large variety of goods in TaoBao

Strongly disagree

Disagree

Agree

Strongly agree

8%

28%

43%

21%

4) The product from TaoBao is good value of money

Strongly disagree

Disagree

Agree

Strongly agree

• Rating average= 2.78 • close to the agree rating • they satisfy the price to

quality ratio of products in TaoBao.


• rating average =2.74• Close to Agree rating• probably satisfy with the

information of product provided by the vendor and TaoBao.

12%

22%

46%

20%

5) the information of product is accurate

Strongly disagree

Disagree

Agree

Strongly agree

12%

23%

51%

14%

6) Buying from TaoBao is secure

Strongly disagree

Disagree

Agree

Strongly agree

• rating average =2.66• Close to Agree rating• most people believe in TaoBao’s

security


• Rating average=2.80• Close to Agree rating• User friendly of website include

- layout, content and function

• attract more people to keep using TaoBao.

9%

17%

58%

16%

7) TaoBao website is user friendly

Strongly disagree

Disagree

Agree

Strongly agree

12%

29%

42%

17%

8) International Forwarding Service (provide by TaoBao) is convenient

Strongly disagree

Disagree

Agree

Strongly agree

• Rating average=2.32• close to disagree rating. • although TaoBao provides

delivery service, people do not think that it is convenient


• Rating average= 2.43• close to disagree rating • people do not satisfy with the long

waiting time.

• Rating average= 2.15• Disagree rating

• TaoBao promises that package tracking allows consumers keep track of their package in “My TaoBao” from the website.

• people cannot trace their product

15%

37%

37%

11%

9) The delivery time is short

Strongly disagree

Disagree

Agree

Strongly agree

23%

46%

23%

8%

10) The delivery process can be checked in TaoBao easily.

Strongly disagree

Disagree

Agree

Strongly agree


12%

38%46%

4%

11) TaoBao has clear after-sale rules (include the complaint policies, return

policies)

Strongly disagree

Disagree

Agree

Strongly agree

• Rating average= 2.40• close to disagree rating • people think that the rules are not

clear and even may not know there are after-sale rule.

• Rating average=2.63• Close to Disagree rating

• TaoBao’s website provides teaching of buying, paying and other problem dealing services

• most of the people satisfy with TaoBao can provide enough help for them while they have problem.

11%

31%

43%

15%

12) TaoBao can deal with my question when I have problem in shopping on-

line.

Strongly disagree

Disagree

Agree

Strongly agree


• Rating average=1.93• close to disagree rating

• TaoBao cannot deal with their complaint quickly and probably.

• Rating average=2.60• Close to agree rating

• People seem satisfy with the overall of services provided from TaobBao but the rating average still has room of improvement

28%

54%

15%3%

13) TaoBao will deal with my complaint quickly and probably.

Strongly disagree

Disagree

Agree

Strongly agree

12%

29%

45%

14%

14) The overall of services provided from TaobBao is satisfactory

Strongly disagree

Disagree

Agree

Strongly agree


• Rating average=3.00• Agree rating • people are quite satisfy with

TaoBao so they will keep using it and recommend to their friends.

3%

18%

54%

25%

15) I will recommend TaoBao to my friends

Strongly disagree

Disagree

Agree

Strongly agree


The rating average of each statement is arranged in descending order.

2> 3> 15> 1> 7> 4> 5> 6> 12> 14> 9> 11> 8> 10> 13

Summary of Rating Average


0

0.5

1

1.5

2

2.5

3

3.5

43.6

3.143

2.89 2.8 2.78 2.74 2.66 2.63 2.542.43 2.4 2.32

2.151.93

Interim Summary• 1) TaoBao is a good online shopping platform • 2) TaoBao can provide good services that support people’s process

of buying online.

• 3) Teenagers are not satisfied some services offered by TaoBao

2.5

2.55

2.6

2.65

2.7

2.75

2.8

2.8

2.74

2.662.63

Rating Average

0

1

2

3 2.542.432.42.322.151.93

Rating Average

Regression• Objective:

- To find out the factors that highly affect the level of the customers’ satisfactory

Independent Variables

• Convenience x1

• Cheap price x2

• Large variety x3

• Accurate information x4

• Online security x5

• Fast buying process x6

• User friendly system x7

• Good after-sales service x8

• Short delivery time x9

Dependent Variable (y)• Level of customers’ satisfactory

Y=0.0379 x1 + 0.2198 x2 - 0.2476 x3 + 0.3622 x4 + 0.1544 x5 + 0.0625 x6 + 0.1117 x7 + 0.6760 x8 + 0.0943x9

64% of variation in y can be explained by the independent variable

• X3 large variety (-ve effect)

• X4 accurate information (+ve effect)

• X8 good after sales service (+ve effect)

Definition of After sale service• Patelli et al.[2004] :

“the sum of activities taking place after the purchase of the product”

- guarantee the continuous availability of goods, re-establishing their functionality in consequence of faults

- solve problems encountered by the end-customer in the use of goods

- support the customer in designing, managing and controlling the activities and processes related to the product use

- support the customer at the end of product life (reverse logistics)

- increase the level of customer satisfaction, contributing to the creation of competitive advantage for the whole supply chain.

• Base on the definition of After-sale service:

- Most teenagers do not satisfy with the after-sale service provided by TaoBao

0

0.5

1

1.5

2

2.5

3

3.5

43.6

3.143

2.89 2.8 2.78 2.74 2.66 2.63 2.542.43 2.4 2.32

2.151.93

AFTER SALE SERVICE PROVIDED BY TAOBAO

Taobao’s after-sale policies • Promising

• Good workflow • Ease to understand

Taobao’s after-sale policies

Contact• 1. Smart and Automatic self-help system


• 2. Instant messaging(IM) system


• 3. Hotline service


Case Study

• For the Automatic reply system • Not support in English

Problems of after-sale services provided by TaoBao

• Not smart enough


• For the IM system• Busy period• Not enough staffs


• Too short questioning period


• Period not flexible


• For the hotline service• Not flexible • System always busy


Conclusion• Positive feedback for TaoBao- Products available are cheap - Products base is broad- Website is really user friendly etc

• Some negative feedbacks collected- Won’t tackle the problems that customers have

encountered promptly- Poor after-sale service etc

(include delivery, complain policy )

Conclusion• Good After-sale services raise consumers’ satisfaction

enhance consumers’ loyalty boost sales• Gaiardelli, et al. (2007) “Besides being a long-term potential revenue source,

the after-sales service constitutes a mean to uncover customer needs and a strategic driver for customer retention……influencing customer satisfaction and loyalty”

• A study carried out by Khan (2012) clearly illustrates the positive correlation between customer satisfaction and customer loyalty.

• Suggestions made

• We believe TaoBao will keep on improving itself

Suggestion• Build a “smarter” auto-reply system• E.g. further develop its language support, to make the

system be able to give response to English inquiries

• Prolong the working period• IM• Hotline

• Two separate lines• Hong Kong• Macau

Bibilography• Khan, I. (March 2012). Impact of Customers Satisfaction And Customers Retention on

Customer Loyalty. International Journal of Scientific & Technology Research, 1(2), 106-110. Retrieved from http://www.ijstr.org/final-print/march2012/Impact-of-Customers-Satisfaction-And-Customers-Retention-on-Customer-Loyalty.pdf.

• Gaiardelli, P., Saccani, N.,& Songini, L., 2007. Performance Measurement Systems in AfterSales Service: an integrated framework. International journal of Business Performance Management, 9 (2), pp.145–171. Retrieved from http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&ved=0CDYQFjAB&url=http%3A%2F%2Fwww.researchgate.net%2Fpublication%2F222411289_Performance_measurement_of_the_after-sales_service_networkEvidence_from_the_automotive_industry%2Ffile%2F72e7e52445a7a23857.pdf&ei=SAx2UpzhDsXZkAW26IGADw&usg=AFQjCNHdeEDp_ndy2y55jbAYxGJCTKqRWw

• Patelli L, Pelizzari M, Pistoni A, Saccani N. (2004) The after-sales service for durable consumer goods. Methods for process analysis and empirical application to industrial cases. 13th International Working Seminar on Production Economics, Vol 3, p. 289-299

http://www.ijstr.org/final-print/march2012/Impact-of-Customers-Satisfaction-And-Customers-Retention-on-Customer-Loyalty.pdf

http://www.ijstr.org/final-print/march2012/Impact-of-Customers-Satisfaction-And-Customers-Retention-on-Customer-Loyalty.pdf

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TAOBAO UC FYP Lam Ka Ho 1155005583 Siu Sze Man 1155015909 Wong Hoi Yi 1155016756 Wong Wai Keung...

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