Assignment on

Measurement of Customer Satisfaction of Foodpanda

 MGT 309: Marketing Management

Prepared for:
Mohammad Abdul Jabber
Assistant Professor
Department of Management
University of Dhaka

Prepared by:
Team Ambition
Student Information:

Sl. No. Name Roll

1 Md. Jahidur Rahman 53
2 Md. Mahabubur Rahman 100
3 Md. Tarik Enam 11
4 Miraz-Ul-Alam 65
5 Md Al Islam 47
6 Faysal Chowdury 31
7 Mohiman Al Nur 10
8 Suzana Sharmin 05
9 Farhan Zaheen Anika 30
10 Mst. Nahida Akter Tamanna 19

Date of Submission: October 26, 2020

 Executive Summary
Foodpanda is a mobile food delivery market place to order food for home delivery owned by
Berlin-Based company delivery Hero SE started its journey in 2012 and operates in about 50
countries in the world. It has started its journey in Bangladesh in December,2013 with the goal to
simplify the life of the people of Bangladesh by making food delivery as convenient and
affordable as possible. People are using this app for ordering foods from their desired nearby
restaurants in order to have food at home and the Foodpanda is making people life easier and
comfortable by delivering their ordered foods as efficiently as possible. Which is saving both the
time and energy of customers. As this is the leading food delivery app in Bangladesh, we tried to
find out its performance regarding how welly it could satisfy its customers. For this purpose, we
conducted a survey of 200 people to find out in what extent they are satisfied with the service of
Foodpanda. By this customer satisfaction measurement survey, we could identify how happy or
dissatisfied the customers are with Foodpanda services and we get insights about new ideas,
updates and opinions of customers. We have used various factors like pricing system, service
quality, delivery person acts, menu and variety of restaurants, delivery time, condition of food
delivery, delivery tracking service, delivered food quality to measure the extent of customer
satisfaction. And also, conditional factors to identify customer loss rate and how many are loyal,
profitable and in what extent they are loyal or profitable. We have made a questionnaire with
some pertinent and understandable questions using likert scale method (A 5-point scale which is
used to allow the individual to express how much they are agree or disagree with a particular
statement) on the particular factors to identify the satisfaction level. From the response of 200
respondents we have found that 88.7 percent of them have ever used Foodpanda app for ordering
foods. Approximately 85% respondents found their favourite foods and restaurants in this app. If
I explicate the satisfaction rate on various factors in terms of point, the point 4 out of 5 on
delivery time, point 3 on delivered food items similarity with the restaurants, point 4 on the
delivered foods quality, 5 out of 5 points on the way of behaviour or communication of delivery
boys, 5 points on the payment methods, 4 points on the various discounts and voucher offers, 4
points on the ratings and reviews, 4 points on the app attractiveness. So, if we add up the whole
points on various factors, that results 4.3 points out of 5. And also, from the response, we could
notice that 68.6% customers may try to another food providers business. Which indicates that
despite a good customer satisfaction extent the probable customer loss rate is high. 79% will
switch to the competitors if they provide superior service. That’s meaning 21% are fully loyal to
the Foodpanda. So, from the sum up results we can easily conclude that, respondents are highly
satisfied with the Foodpanda mobile app services. Despite this satisfaction level, Indies
competitive world Foodpanda should monitor the customer preference and perceived value up-
to-date in order to get insights about the potential or existing customers preferences. So that
Foodpanda could minimize the potential customer loss rate, cope their business processes and
models to remain long-term market leader, win competitive advantage, retain the loyal customers
and grasp completely the advantage of the profitable customers.
 Introduction
Online food ordering is the process of ordering food from a website or other application. The
product can be either ready-to-eat food (e.g., direct from a home-kitchen, restaurant, or a ghost
kitchen) or food that has not been specially prepared for direction consumption (e.g., vegetables
direct from a farm/garden, frozen meats. etc.). The first online food order was a pizza from Pizza
Hut in 1994. The online food ordering market includes foods prepared by restaurants, prepared
by independent people, and groceries being ordered online and then picked up or delivered.
The food delivery market in Bangladesh has only grown hyper-competitive over the past two
years. Bangladesh being one of the most populous countries in the world always had this
potential food delivery service. Online food ordering system has been beneficial for a large
group of people because they don’t have to be physically present at their favorite restaurants to
enjoy the foods. Working class people who were always in a hurry to eat their lunch and also
wanted quality food at the same time can easily do that by ordering food online.
A year ago, it was Pathao Food, which was offering a heavy load of discounts, and today it
is Foodpanda. While Foodpanda, with its renewed focus in the region for growth, is leading the
discount war, remaining of the players do maintain a steady push, albeit not at the extent of
Foodpanda. 
Shohoz Food, remains a competitive player. The company continues to push its food business
and claims to have excellent growth in the food delivery business. Pathao Food, however, has
significantly curbed its hyper discounting approach and tries to cover up its discounting
limitations with service and product level innovations such as loyalty points. 
Local and earliest player HungryNaki takes a slow and steady approach to growth, largely due to
the reality that fundraising remains a challenging affair for local companies. The other prominent
player Cookups is more strategically positioned due to its recent strategic partnership with
Chaldal. With Chaldal’s backward market linkage to grocery supplies, Cookups has a better path
to profitability in a market widely known for its loss-making nature. But nothing is sure in the
world of online food delivery. The startup remains thrifty when it comes to discounting. 
 Customer Satisfaction
Customer satisfaction is defined as a measurement that determines how happy customers are
with a company’s products, services, and capabilities. Customer satisfaction information,
including surveys and ratings, can help a company determine how to best improve or changes its
products and services. An organization’s main focus must be to satisfy its customers. This
applies to industrial firms, retail and wholesale businesses, government bodies, service
companies, non-profit organizations, and every subgroup within an organization. The Marketing
Accountability Standard Board endorses the definitions, purposes, and constructs of classes of
measures that appear in Marketing Metrics as part of its ongoing Common Language in
Marketing Project. 
In a survey of nearly 200 senior marketing managers, 71 percent responded that they found a
customer satisfaction metric very useful in managing and monitoring their businesses. It is seen
as a key performance indicator within business and is often part of a Balance Scorecard. In a
competitive marketplace where businesses compete for customers, customer satisfaction is seen
as a key differentiator and increasingly has become a key element of business strategy.
Significance of Customer Satisfaction:
 Customer Satisfaction helps you identify unsatisfied customers: You can't analyse
unhappy customers' feedback, or make changes to your product or service to make them
happy, if you don't know customers are unhappy in the first place. Make sure you're
deploying CSAT surveys, analysing, and acting on negative customer feedback, no
matter how tough it is to hear, as your top priority, so you can prevent them from
churning, leaving negative customer reviews, or warning against your brand to friends
and colleagues.
 Customer Satisfaction helps you identify happy customers: If you don't measure
customer satisfaction, you can't identify your happy customers who are finding success
with your product or service. And if you aren't prioritizing customer success, odds are,
your company isn't growing -- at least, that's what we found in a survey of nearly 1,000
business leaders across industries. Growing companies prioritize customer success, and a
key way to identify and activate successful customers is to request customer feedback to
identify your satisfied customers.
 Customer Satisfaction helps you forecast and work proactively: Without measuring
customer satisfaction and similar customer success metrics, it's hard for customer success
teams to plan and inform priorities. Without metrics to inform how healthy (or unhealthy)
your customer base is, customer success teams can't work with Sales to improve
customer expectations, with Product to incorporate product feedback, or Marketing to
improve the end-to-end customer experience. Leaders need data and trends to forecast
team performance over the next month, quarter, and year to adapt strategy, if needed.
  Customer Satisfaction helps marketers attract new leads: Most customers are more
likely to trust their peers than they are to trust marketing. In fact, 71% of customers are
more comfortable with a purchase after reading a positive company review. But without
great customer satisfaction, your company won't have these reviews to share. Your
marketers should rely on customer testimonials to attract new leads to your business.
Since customers are more willing to trust other users, these reviews are effective in
attracting prospects. That's because 55% of customers are willing to spend more money
on a guaranteed good experience. The better your customer satisfaction, the more
material your marketers will have to advertise your brand.
 Customer satisfaction is a selling point for sales teams: Sales teams benefit from
customer satisfaction because it acts as a selling point for closing deals. As we mentioned
above, customers are more willing to pay for an experience they know is great. If your
customer satisfaction is superb, your team should highlight that during their pitch to
leads. Additionally, Customer Satisfaction helps sales teams understand customer
expectations. They can analyse happy customer reviews to see which parts of your
product or service they should emphasize. That way, they can hammer home distinct
advantages that differentiate your business from its competitors.
 Customer satisfaction guides product updates: Negative customer reviews act as alerts
that let companies know when a product or service has a problem that needs to be fixed.
Product development teams monitor Customer Satisfaction to identify these issues and
quickly resolve them. This is particularly important for SaaS businesses that regularly
update their software. By keeping a close eye on Customer Satisfaction, development
teams can correct costly product roadblocks that may lead to churn.

Lastly, Customer Satisfaction is a critical concept for customer success professionals to

understand and live by, and it's actually about more than a money-back guarantee. In this post,
we'll start discussing customer satisfaction: what it is, and why it's important for your business to
start measuring.
 Company Overview
Foodpanda was founded in 2012 by Lukas Nagel and Rico Wyder in South-East Asia and
launched across Singapore, Malaysia, Indonesia, Thailand and in 2014 in the Philippines Shortly
after, global expansion of the Foodpanda business was led by Ralf Wenzel, Felix Plog, and Ben
Bauer. In December 2016, the Foodpanda group was acquired by the German
competitor Delivery Hero Also that year in December 2016, Foodpanda's once largest investor
Rocket Internet sold Foodpanda to Delivery Hero. Foodpanda is now operating in 50 countries.
In December 2013, Foodpanda Bangladesh started its journey with just 5 employees. The goal
was to simplify the life of customers by making food delivery as convenient and affordable as
possible.  The Foodpanda app is the ultimate solution for users to order take-away from the best
selection of restaurants around them in three simple steps. Foodpanda is now operating in Dhaka,
Chittagong, Sylhet. It has also started corporate food delivery system.
Foodpanda processes and sends orders directly to partner restaurants, then delivers the meals by
delivery riders to the customers. The service is available via its websites and mobile
applications. It connects customers with restaurants that offer food delivery in their area and lets
them choose, order and pay online. Customers order food by entering their postcodes on the site
and browsing for food from a list of restaurants. They can create meals by browsing restaurant
menus and selecting items they want to order before entering an address and proceeding to the
checkout. Food panda sends out an SMS to confirm orders and their estimated delivery time.
Foodpanda also has a review section on restaurant pages, where customers can comment on sales
process, delivery, taste and overall impression of restaurants.
 Factors affecting Customer Satisfaction of Foodpanda in Bangladesh
The concept of ride sharing is relatively new in Bangladesh but it has gained popularity in early
stages. After finding successes in that they intended to introduce food delivery service in
Bangladesh and likewise Foodpanda also came into being to meet the thirst of voracious people.
It has gained popularity among masses surprisingly in such a quick period of time with many key
factors playing the pivotal role behind it. Some of the affecting factors are given below:

 Pricing: One of the vital factors in choosing food panda. Foodpanda often offers various
incentives which attracts customers for being so cost effective as they find it wholesome
than many of other service providers around.
 Service quality: Service quality can be defined as the customers’ feelings about the
overall superiority of a product. To encourage repeat purchase and build customer
loyalty, food panda shifts the focus on improvising their service quality. OFD retailers
must ensure quality service as retailers’ service quality greatly influences customers’
satisfaction and intention to shop online in the future which food panda is maintaining
with great care as seen to be.
 Act of the delivery person: Delivery persons working for Foodpanda well
communicative and they act professionally with respective customers while trying trace
the customer location in order to deliver doorstep with convenience their desired food
products which proved to be another key factor.
 Menu and variety of restaurants: The online food delivery service food panda brings
together a lot of restaurants, serving as intermediary connecting restaurants and
customers. Customers want the food apps to provide them with food and restaurant of
their choice. Better buying decisions and levels of consumer satisfaction are linked to
extensive product information. Website trust is greatly linked to satisfaction.
 Delivery Time: Delivery time is a crucial factor in satisfying and retaining customers
within the e-commerce environment. A delay in delivery beyond the expected delivery
time will hurt satisfaction regardless of the road and weather conditions. Awareness of all
routes to ensure timely delivery of food panda has been essential for their popularity.
 Condition of food delivered: Fresh, well-cooked and well-presented are important food
characteristics of Foodpanda and their customers’ satisfaction and retention. Customers
might be discouraged by the deviation of quality to the delivery company. Any deviation
from the standard quality will impact the choice of online order companies for ordering
the next time. Lack of completeness of order can lead to dissatisfaction among customers
which Foodpanda always kept in mind. Poor delivery service is another obstacle in online
shopping those results in damaged product arrival.
  Delivery tracking service: Like other food delivery platforms, Foodpanda have often
emphasized timely delivery and shipping in predicting customers’ satisfaction as
compared to the price. Delivery services are one of the fundamental factors that
determine a consumer’s decision to shop. Foodpanda have thus developed a wide range
of services which offer flexible hours, reduced prices and fast deliveries. Providers who
track and adjust their delivery times according to the customers’ satisfaction might
increase the number of customers as their clients will be assured of timely delivery.

The way food panda has been conducting their business retaining customer’s satisfaction to their
level best in this age of cut throat competition is praiseworthy. It is suggested that factors that
customers are concerned about can be grouped into two: direct factors and indirect factors.
Direct factors include delivery time, service quality, price and condition of food delivered as
these are directly linked to the core service delivery process. The indirect factors include the
variables variety and number of restaurants, menu, delivery tracking service and attitude of the
delivery person which can be considered to be the peripheral factors that come together to form
the complete package benefits. It’s also hoped that they’ll survive the steep competition coming
from emerging food delivery sites given the factors above they follow in pin point accuracy.
 Analysis
This survey was conducted amonge 200 people selected as respondents from all over the country
to measure the customar satisfaction rate of foodpanda services.The survey was completed using
liker scale so all the findings are presented in terms of 1 to 5 points.The results are following:

Figure 1: The usage rate of foodpanda.

Among the 200 respondents 88.7% have used foodpanda for ordering the foods. Which means
that foodpanda is broadly used all over the country.
 Figure 2: Customers satisfaction on the delivery time.

People are fairly satisfied with the delivery time foodpanda takes because 35.8% people gave 4
points of their delivery services.
Figure 3: Customer satisfaction of the quality of food delivered by the foodpanda is same or not
in the restaurants

It has fair rate of satisfaction beacause 34.9% of the people have scored it 3points.Which
represent that the quality of food delivered by the foodpanda is as same as restaurants.
 Figure 4: Customer satisfaction on the Quality of foods delivered by the foodpanda.

People are enough satisfied with the quality of foods delivered by foodpanda. 40.2% of the
people rated it 4 points.
Figure 5: Customar satisfaction with the way of communication, behavior of the delivery man of
foodpanda.

People are highly satisfied with the way of communications, behavior of delivery man of
foodpanda. 35.8% of the people have given 5 points. 33.7% people are also given the 4 points
which indicate that they are highly satisfied about the behavior of the delivery man.
 Figure 6: Customer satisfaction on the payment methods of the foodpanda.

People are highly satisfied with the payment methods of foodpanda. 38.5% of the people have
given 5 points and 33.9% of the people are given 4 points which means that cash on delivery
increase the customar satisfaction of the foodpanda.
 Figure 7: Customer satisfaction on the voucher and discount.

40% of the people have rated 4 points which means they are fairly attractive with the voucher or
discount given by foodpanda.
 Figure 8: Customar satisfaction on the rating and reviews

Positive and negative reviews can increase or decrease the customar satisfaction. 36.5% of the
people have given 4 points. Which means rating and reviews restaurants in foodpanda are
reliable.
.

Figure 9: Customar satisfaction on the mobile app or website.

Foodpanda has an app called foodpanda app which is introduced for the convenience of their
customers. People are satisfied enough having on mobile app or website like foodpanda app,
www.foodpanda.com. 46.7% of the people rated it 4 points.

If the overall satisfaction rate of the foodpanda is to be stated, then it is

(3+4+4+5+4+5+4+4)/8= 4.13 points.

So, finally it can be said that the overall customer satisfaction of foodpanda, mobile app or
website is quite high. Most of the respondents have rated foodpanda highly. The customers of
the foodpanda are highly satisfied with their services for mobile app or website.
 Customer loss Rate

Figure 10: Assessing whether customers would switch their providers for the better competitors
available.

From our survey we find that 79% of our participants will part ways with Food Panda
whereas only 21% of them ready to keep moving with Foodpanda. A saddening sign of lower
customer retention ratio in the rise of other competitors who might offer better services than that
of Foodpanda is used to generally providing. So, Foodpanda should make the changes or concern
the customers preferences or perceived value to retain and acquire more customers.
Figure 11: Assessing whether customers would ever intend to use other service providers like
Pathao/Shohoz whimsically.

The figure above gives contemplation on the customer loyalty rate the Foodpanda as in
response to our survey 68.6% of the participants made it clear they would happily adopt other
service providers alongside using Foodpanda, showing strong sign of disloyalty to it. On the
other hand, only 31.4% of the respondents decide to stay loyal to Foodpanda keeping aside other
allures of other competitors/service providers in the race to capture the market.
 Recommendations
 The prominent food delivery app Food panda can update their app where the app will
give not only food recommendations but also will give restaurant recommendations.
 Food panda can add as many conditions as they want. For example, don’t allow
cancellation after a restaurant is already preparing your order.
 Food quality should be improved more because many people are now depending on
online delivery rather than going to restaurants.
 There happens service dilemma in food panda. It should be improved.
 Food Panda should consider expanding to new cities in countries it already operates and a
completely new market that it’s currently not operating.

Conclusion
Online food delivery services have revolutionized the initiative of enjoying food and adopt for
the foodpanda, the most amazing food delivery service online. It is very easy to order food with
foodpanda. Foodpanda is dedicated to bringing food lovers their favorite meals, they can order
foods from 2500 restaurants across the city using the foodpanda app. Now, most big restaurants
have been offering 30 to 60 percent discounts on their products to get more buyers.
After the outbreak of covid- 19, people are much more interested ordering food at home. As the
city dwellers have been maintaining social/ physical distance strictly as a precaution against the
viral pandemic. Foodpanda Bangladesh CEO Ambareen Reza said, “We scaled rapidly across 25
cities before the pandemic. We have been witnessing exponential growth in business in the last
six months. Our business and footprint have grown over 300 percent in the last 12 months and
we expect this to continue.” Followed by the global virus outbreak, Foodpanda came up with a
contactless delivery idea, adding new options to its Foodpanda App.
However, foodpanda have some negative sites also like – sometimes they need much time to
deliver the order. Customer don’t get foods according to their requirements. In that case, they
will not get their money back. Sometimes customer have to pay much ordering food at home. So,
foodpanda have both positive and negative sites. Although foodpanda have number of
disadvantages people are becoming more interested in foodpanda as it delivers delicious and
yummy food of our choice from the restaurant that we choose at our doorstep.
 Appendix: Google Form Survey
https://docs.google.com/forms/d/12_2_hNEi_r9GuMGTA_GYq8zoGgn2I5HtPHpdhbQXPEc/ed
it