FACTORS INFLUENCING CUSTOMER

SATISFACTION IN ONLINE FOOD

Submitted to:
Dr. Rajeev Kumar

Submitted by:
Team No-10
N Pranati
Sreenath P K
Shyam Sundar K
Krishnakanth T S
Arathy M pillai
TABLE OF CONTENTS

1. Abstract 3
2. Introduction 4
3. Literature review 5
4. Theoretical frameworks 6
4.1. Importance of study
4.2. Research objective
4.3. Research question
4.4. Research model
5. Methodology 8
5.1. Survey data
5.2. Description of data
6. Test analysis 9
7. Findings and interpretation 13
8. Conclusion 15
9. Reference 16
ABSTRACT

In this modern world, there are many factors that influence customer satisfaction in online food delivery
service.so we had done a research to conducted and examine the "satisfaction of consumers by using online
food services ".it mainly deals with the consumer behavior & helps to analyze their perceptions & will also
help us to understand consumer equilibrium. To study more about the customer behavior and for
completion of this research we have prepared a full-fledged questionnaire which were distributed among
different respondents with different perceptive to know their opinion & the satisfaction level which they
get by using online food services app.
INTRODUCTION

Online food service is one of the growing E-commerce in Indian market day by day. People in India are so
active while using the apps for ordering food online. Ordering system is a website or mobile application
through which users can order food online from a food cooperative or even a native restaurant ordering
food online is similar to online shopping. There are so many benefits for consumers that makes online
food services to become a huge sector and will benefit the Indian economy conditions. People are getting
main advantages of time and cost by using online sectors

As a result, online food marketing is also able to generate ample amount of opportunities for
employment. From the survey of the current year says that Zomato and Swiggy are the leading popular
application to users. As per year 2020 its states that swiggy have overcome Zomato by increasing 5% of
users in their application.
1. LITERATURE REVIEW

According to the authors Blasco Lopez, Maria Recuero Virto, Nuria San-Martín, Sonia, in this changing food
culture, consumers are progressively demanding more information regarding the food they eat, such as
additional details about the components, the origin and the production chain. These growing concerns
are predictable outcomes of the competitive global food marketplace, where customers have become
more specialized.

According to the authors Chang, Shu Chun Chou, Pei Yu, Wen-Chien, lo they investigated the relationship
of personal background to online group buying’s satisfaction and established the relationship between
consumer’s satisfactions and repurchase intentions. The issue of group buying has already existed for
many years, but the internet made it much more practical than before. Through the internet, online
buyers can break the limitation of districts and recruit more online group buyers to get a lower price. Thus,
more and more online buyers were attracted and made OGB’s rate growth.

According to the authors Chen, Yuangao Yu, Jing Yang, Shuiqing Wei, June in article Consumer’s intention
to use self-service parcel delivery service in online retailing: An empirical study, the number of mobile
shoppers in China is rapidly increasing. Recent reports on China's internet statistics indicated that China’s
mobile users reached 620million, and m-commercecustomersexpandedto340millionalong with an
increase of 43.9 percent at the end of 2015. Recent consumer surveys and market analyses show that the
delivery services offered by e-retailers have become one of the fundamental factors influencing an online
shopper’s decision to shop with them. Thus, if online retailers intend to provide adequate support and
improve service quality, then they must strengthen their existing delivery services or introduce a new
logistics solution. However, the two situational factors induce different influences on the consumer’s
intention to adopt self-service parcel delivery service. Location convenience has a positive effect on the
consumer’s intention to use self-service parcel delivery service even if the perceived time pressure has no
significant effect. Compared with our original hypothesis, we discovered that the need for human
interaction positively influences the consumer’s intention.

According to the authors Sharma, J K Nishant Kumar, Noida, increasing competition among online
ordering services and the growing importance of customer compels companies for better service. In order
to enhance the service quality Online food companies must focus on appeal, appearance of website,
timely order, error free transactions, interest in customer problem, Confidence & dependability in
customers for their online platform. Service providers should take customer feedback about the services
received and could mark out the customers with evaluation and complaint about the service quality. The
results have showed that customer satisfaction is positively and significantly related to likelihood of repeat
patronage and positive recommendations. There was a significant positive impact of service quality on
behavioral intention.
2. THEORETICAL FRAMEWORKS

i. IMPORTANCE OF STUDY

Online food service is one of the growing E-commerce in Indian market day by day. Our research was
conducting to examine the “satisfaction of consumers by using online food services “. It will deal with
consumer behavior & helps to analyze their perceptions & will also help to understand consumer
equilibrium.

ii. RESEARCH OBJECIVE

 To analyze how customers are attracted to online food service.

iii. RESEARCH QUESTION

 What are the factors influencing increase in purchase intention to online food delivery services?
iv. RESEARCH MODEL

Food
quality

Customer
intention

On time
Price delivery
3. METHODOLOGY

SURVEY DATA
The questionnaire had 12 general questions and was designed to capture different customer behavior and
we could see different consumer perception. The questions are organized on the scale of 1 to 5.our questions
are framed according to the three internal variables and one external variables. The first section focuses on
the quality of the food. Questions from the second section covers the several aspects related to price. The
third section was related to on-time delivery. The questionnaire combined open-ended questions and
multiple-choice questions with predefined answers offering respondents the possibility to choose and rank
among several options or the possibility to grade on a “very low” to “very high” scale. This questionnaire
had a great importance for a Survey of this kind as it contributes to improving the interpretation of its overall
results and provides with additional valuable material.

DESCRIPTION OF DATA
To conduct the Survey, we have analyzed responses from 367 customers and we have received an overall
data that implies different customer behavior and we could identify different consumer perception. We
could easily identify the data according to the different section and variables. We got 64% of total responses
from age between 18-24 and most of them where graduated. People who responded had a minimum annual
income of less than or equal to 5lakhs.
TEST ANALYSIS

We used SPSS to analyze our survey to combine together in a single package. We have used the function
to basic to analyze scientific data related with the consumer responses. This data can be used for market
research, surveys etc. We have tested reliability, KMO, component matrix, factor co-relation matrix and
hypothesis test.

INTERPRETATION:

1)RELIABILITY:

Case Processing Summary

N %

Cases Valid 361 100.0

Excludeda 0 .0

Total 361 100.0

a. List wise deletion based on all variables in the

Reliability Statistics
Cronbach's
Alpha N of Items

.864 3

A reliability analysis was carried out on the perceived task values scale comprising 5 items.
Cronbach’s alpha showed the questionnaire to reach acceptable reliability, alpha=0.864. Most
items appeared to be worthy of retention, resulting in a decreasing in the alpha detected.
2) KMO

KMO and Bartlett's Test

Bartlett's Test of Sphericity Approx. Chi-Square 2072.458

Df 36

Sig. .000

We got a value of 0.907 for Kaiser-Meyer-Olkin Measure of Sampling Adequacy. This value indicates that
the sampling is adequate and marvelous. After Bartlett's Test of Sphericity been done we got 0.00
significance level indicate that our factor analysis useful with our data.

3) COMPONENT MATRIX

Component
Matrixa
Component

FQ1 .798

FQ2 .772

FQ3 .785

P1 .808

P2 .819

P3 .796

OTD1 .737

OTD2 .768

OTD3 .765
 Extracted values are below 0.5, so it is considered for further analysis.

4) FACTOR CORELATION MATRIX

Factor FQ P OTD

FQ 0.785

P 0.748 0.808

OTD 0.654 0.644 0.757

CR 0.828 0.849 0.801

With respect to correlation matrix, we dropped variables has a value less than 0.5.

5) HYPOTHESIS TESTING:

Significance
Input Variables Output Variables Variance Decision
(p < 0.05)

FQ CS 0.480 0.000 Accept

P CS 0.535 0.000 Accept

OTD CS 0.546 0.000 Accept

FQ CS 0.669 0.001 Accept

P CS 0.669 0.000 Accept

OTD CS 0.669 0.000 Accept

Following is the graphical representation of how we attribute food quality rank on a scale of 1-5

It is evident from the diagram that most people strongly agree that that the food has a basic quality and it is
served in a good manner and most of the people agree that the food is served at an appropriate temperature
and app offers the variety of menu items.
Following is the graphical representation of how customers are comfortable with the pricing on a scale of
1-5
It shows that the most of the people are comfortable with the pricing that has been done by the apps and its
reasonable. Cost in the apps seems appropriate and only few of them are not comfortable with the cost.
When it comes to the pricing for a common man it seems pretty comfortable with the cost for all the people.
Following is the graphical representation shows the customer satisfaction with the delivery timing on a
scale of 1-5

It shows that the people are comfortable with the delivery boys service, the way they speak, and how
delivery boys treat the customer. The people are really happy with the delivery service and how they treat
every people equally.
Following is the graphical representation shows the customer satisfaction with the online delivery apps on
a scale of 1-5

Every customer is pretty much satisfied with the service of delivery apps and the offers given by the apps
to every user. They feel comfortable with the usage of the app and online delivery and it also show why
every people choose online delivery apps to purchase food.
CONCLUSION

online food delivery apps have been a trending e commerce in the current world. There are several food
delivery apps in India that can be downloaded from the comfort of homes on smart phones to order food on
the go. On analyzing the customer satisfaction of online food delivery applications, it can be concluded that
online food ordering service has been very much useful for the customers in many formats.it is proved that
the online food delivery has been an easy way of purchasing food for the people. Based on the findings of
this study, it is known that the online food delivery application allows clients to order food easily and
rapidly. This offers every aspect of the client's order, thereby offering the best customer service. The
monitoring device provides an additional value for the users. Online food ordering program keeps the
service provider in a database and helps the customer.
REFERENCE

Alalwan, A. A. (2020). International Journal of Information Management Mobile food ordering apps : An
empirical study of the factors affecting customer e-satisfaction and continued intention to reuse.
International Journal of Information Management, 50(May 2019), 28–44.
https://doi.org/10.1016/j.ijinfomgt.2019.04.008

Anib, A., Gayathri, A., & Shabu, K. R. (2019). Consumer Perception towards Swiggy Digital Food
Application Service : A Analytical Study with Special Reference to Ernakulam City. 6, 791–797.

Bhat, A. A. (2019). Satisfaction of consumers by using online food services. June.

Chang, S., & Chou, P. (2012). Evaluation of satisfaction and repurchase intention in online food group-
buying , using Taiwan as an example. https://doi.org/10.1108/BFJ-03-2012-0058

Chen, Y., Yu, J., Yang, S., & Wei, J. (2017). Consumer ’ s intention to use self-service parcel delivery service
in online retailing An empirical study. 17. https://doi.org/10.1108/IntR-11-2016-0334

Cheow, V., Yeo, S., Goh, S., & Rezaei, S. (2017). Consumer experiences , attitude and behavioral
intention toward online food delivery ( OFD ) services. Journal of Retailing and Consumer Services,
35(December 2016), 150–162. https://doi.org/10.1016/j.jretconser.2016.12.013

Francisca, M., & Lopez, B. (2018). administrative sciences Local Food Shopping : Factors Affecting Users ’
Behavioural E-Loyalty. 1. https://doi.org/10.3390/admsci8030047

Hult, G. T. M., Nidhi, P., Morgeson, F. V, & Zhang, Y. (2019). Antecedents and Consequences of Customer
Satisfaction : Do They Differ Across Online and Offline Purchases ? Journal of Retailing, 95(1), 10–
23. https://doi.org/10.1016/j.jretai.2018.10.003

Kumar, N. (2019). SERVICE QUALITY , SATISFACTION AND BEHAVIOURAL INTENTION : MEDIATION AND
INTERACTION ANALYSIS IN ELECTRONIC FOOD ORDERING SERVICES. 23(3).

Maizura, I., & Rashid, A. (2016). IMPACT OF SERVICE AND FOOD QUALITY ON CUSTOMER SATISFACTION
AMONG GENERATION Y FOR THE FAST FOOD. 8(1), 51–67.

Michelle, A., & Brenda, J. (2002). Consumer demand for online food retailing : Is it really a supply side
issue ?

Parashar, N., & Ghadiyali, S. (n.d.). A STUDY ON CUSTOMER ’ S ATTITUDE AND PERCEPTION TOWARDS
DIGITAL FOOD APP SERVICES.

Pigatto, G., Guilherme, J., Ferraz, D. C., Negreti, S., & Machado, L. M. (2017). Have you chosen your
request ? Analysis of online food delivery companies in Brazil. 119(3), 639–657.
https://doi.org/10.1108/BFJ-05-2016-0207

Victor, R. (2008). Determinants of Customer-Perceived Service Quality in Fast-Food ...

Waheed, K. A. (2018). Consumption of online food app services : An exploratory study among college
students in Dubai. 1. https://doi.org/10.5742/MEJB.2018.93500

Wang, O., & Somogyi, S. (2018). Consumer adoption of online food shopping in China. 2015.
https://doi.org/10.1108/BFJ-03-2018-0139