The Russian public was shocked to be facing such land and sea defeats from Japan. There's evidence the czar and his ministers saw Japan as a small and not-as-great-as-Russia power. In fact, Japan had advantages such as a more highly trained military while industrialization in Russia was severely lagging in comparison to other Great Powers. For example, the Trans-Siberian Railway wasn't even completed, which meant it was really difficult to send in supplies.

This war was extremely damaging for the czar's public image. Initially led to believe that it would be an easy war, many began to perceive the czar's government to be incompetent. Several large defeats, such as the loss of Port Arthur in January 1905, were humiliating for Russians. The disastrous effect on the economy (factories were short of raw materials, large numbers of peasants were unable to complete agricultural work) caused further discontent.

Eventually, the outcome of the war, as well as other factors like Witte's industrialisation policy would lead to Bloody Sunday, but that's another topic!

Hope this helps, and hope I followed all the rules :)

edit for source:

Russia Under Czarism and Communism: 1881-1953 by Chris Corin and Terry Fiehn