Professional Documents
Culture Documents
BY
Manoj Kumar Moktan
Symbol No.:17955/16
TU Regd. No.:7-2-355-79-2016
Everest College
Thapathali, Kathmandu
June, 2019
STUDENT DECLARATION
iii
ACKNOWLEDGEMENTS
The study on “Consumer Satisfaction towards Foodmandu” has been done in order to
fulfil the partial requirement for achieving the degree of Tribhuvan University.
Firstly, I would like to thank our report supervisor “Roshan Bhusal” for their
continuous guidance and support they gave for the completion of the project in a
limited time period.
Secondly, I would also like to thank many individuals who contributed their valuable
time for me and helped me a lot in finalizing this project within the limited time
frame.
Researcher,
iv
Table of Contents
CONSUMER SATISFACTION TOWARDS FOODMANDU.............................................i
ACKNOWLEDGEMENTS...................................................................................................iv
LIST OF TABLES................................................................................................................vii
LIST OF FIGURES.............................................................................................................viii
EXECUTIVE SUMMARY....................................................................................................ix
CHAPTER I............................................................................................................................1
INTRODUCTION..................................................................................................................1
1.1 Context information......................................................................................................1
1.2 Purpose of the study......................................................................................................2
1.3 Significance of the study...............................................................................................2
1.4 Review of literature......................................................................................................3
1.5 Research of method......................................................................................................5
1.5.1 Research design......................................................................................................5
1.5.2 Sources of data.......................................................................................................5
1.5.3 Population and sample...........................................................................................5
1.5.4 Data collection instrument....................................................................................5
1.5.5 Data analysis method.............................................................................................6
1.6 Limitation of Study:......................................................................................................6
1.7 Conceptual framework.................................................................................................7
1.8 Hypothesis formulation................................................................................................8
CHAPTER II..........................................................................................................................9
DATA PRESENTATION AND ANALYSIS........................................................................9
2.1 Respondent information...............................................................................................9
2.2 Respondent demography profile................................................................................10
2.2.1 Monthly family income of respondents..............................................................13
2.3 Consumer satisfaction on independent variable on services....................................16
2.3.1 Consumer satisfaction on price...........................................................................17
2.3.2 Consumer satisfaction on service quality...........................................................17
2.3.3 Consumer satisfaction on customer care............................................................18
2.4 Aggregate mean and standard deviation of dependent variables of customer
satisfaction on foodmandu.com........................................................................................19
2.5 Relationship between dependent and independent variable....................................20
2.5 Major findings.............................................................................................................23
CHAPTER III.......................................................................................................................24
CONCLUSION AND ACTION IMPLICATIONS............................................................24
v
3.1 Conclusions..................................................................................................................24
3.2 Action implications.....................................................................................................25
REFRENCES........................................................................................................................26
APPENDIX...........................................................................................................................27
vi
LIST OF TABLES
vii
LIST OF FIGURES
viii
EXECUTIVE SUMMARY
The main purpose of the study is to find out about customer satisfaction on
Foodmandu.com. As we all know that customers are regarded as the king of business
institutions, any business to run in the long run needs to maintain a high degree of
customer satisfaction. So, the Foodmandu.com need to know about the dislike and
like of the services and the degree of satisfaction of the customers.
Foodmandu.com is the first and only company in Nepal that delivers foods from
more than 100 different restaurants in Kathmandu to your doorstep. As a pioneer food
delivery service provider, they are making life easier through online ordering.
Consumers can get anything from Indian food to high French cuisine by placing a
simple order online or over the phone. This research is conducted to find the degree of
satisfaction and also the likes and dislikes of the services provided by the
Foodmandu.com. For this purpose, a structured questionnaire will be distributed to the
respondents and asked to disclose their opinions. After the data are collected and
properly arranged. The gathered information is to be analyzed and measured with the
tables, bar-diagrams, pie-chart and measures of central tendency. The findings of the
research will conclude that whether the customers are satisfied or dissatisfied with the
services provided by Foodmandu.com.
Moreover, the findings of the research would help to examine the suitability of their
business approaches so they can continue to satisfy new and old customers with
different expectations appropriate to product and service quality.
ix
CHAPTER I
INTRODUCTION
Foodmandu.com is the first and only company in Nepal that delivers foods from more
than 100 different restaurants in Kathmandu to your doorstep. As a pioneer food
delivery service provider, they are making life easier through online ordering.
Consumers can get anything from Indian food to high French cuisine by placing a
simple order online or over the phone.
1
service extends only to limited distance from their location.Foodmandu.com have
greatly improved the scope and its range.
Mr Manohar Adhikari started the e-commerce venture of online food delivery, it was
indeed a giant leap into the unknown. Their services are not only great for those
nights when consumer don’t want to cook at home but don’t feel like making the trek
to the restaurant, they’re also perfect for lunch at the office.
i. Restaurants will be more concerned about the consumer taste and preference
about the food and services.
ii. The findings of the study might be helpful to formulate the plans and policies
regarding improving the facilities provided by the online food ordering.
iii. Consumers are able to get quality food as they want.
iv. This research study will provide data on online food ordering.
v. It will be a valuable reference for scholars and researchers to conduct further
similar research.
2
1.4 Review of literature
For the research, various literature was reviewed that were relevant in gathering the
information.
The paperwork of Li-Wei Mai Mitchell R. Ness, (1999) does a correlation analysis on
customer satisfaction and future purchase of mail order food. Analyses customer
satisfaction with mail-order speciality foods in the UK and examines the relationship
between satisfaction with eight attributes of mail-order speciality food and their
association with overall satisfaction and likelihood of future purchase. Univariate
analysis reveals that a high proportion of mail-order customers experience satisfaction
with each of the eight mail
Order attributes reflected in a high proportion of customers who are satisfied overall
and who intend to repurchase the products in the future. Canonical correlation
analysis reveals a statistically significant relationship between one set of variables,
overall satisfaction and likelihood of future purchase, and another set of variables, the
eight mail-order attributes. Consequently, the results indicate that customer
satisfaction is associated with service aspects of mail-order such as the order process
and delivery service as well as physical product attributes such as product quality
Despite being a relatively new service, the growth in the number of companies
offering online delivery services was accompanied by a strong sector consolidation
3
process and by the creation of large groups supported by international capital that
operate throughout the national territory. In terms of the way in which companies
offer their services and the dissemination channels used, the “content” dimension
presented the highest occurrence of the parameters analyzed in the websites, followed
by the “functionality” and the “usability”. Regarding the “usability” dimension, about
35 per cent of websites did not meet all parameters, and 58 per cent even hadn't
information search tools.
Given the exploratory nature of the research and the fact that managers of these
companies were not interviewed, thus resulting in certain limitations in the study, it is
suggested that further studies be carried out including the companies in this sector and
their managers for a greater understanding. In addition, new research on consumer
behaviour and consumption habits on the use of these services would be particularly
important, given the limited knowledge of this new business model.
The research paper by Sheryl E. Kimes measures the current state of online food
ordering in the US restaurant industry. A study of 372 U.S. restaurants operators that
accept takeout orders found that about one-quarter of those surveyed have adopted
online ordering. The restaurateurs have been pleased with the technology, and all of
them indicated that online ordering has met or exceeded their expectations on ROI.
Although convenience and control are both drivers of the move toward online
ordering, this study found that consumers and operators differed on the ranking of
those two factors. Operators thought that consumers like online ordering for
convenience.
An earlier study of consumer found that what they like is control over the ordering
process. Country to some reports, the restaurants in this study did not find substantial
increases in average check, but they did report a considerable increase in order
frequency. For this sample, the top benefit of online ordering was a saving in labour,
since employees are not tied up on the phone or at the counter. Order accuracy was
another benefit cited by these restaurant operators.
4
1.5 Research of method
This research entirely considers customer satisfaction on FOODMANDU.com. For
the purpose of achieving the purpose of the study following research,the plan has been
followed which is required for the survey.
In this data the primary data were collected through the distribution of the
questionnaire. The questionnaire included structured questions:
5
1.5.5 Data analysis method
After the data are properly collected and presented, the data analysis will be
conducted. Simple statistical tools will be used such as:
i. Bar-diagram
ii. Tables
iii. Pie-chart
iv. Measures of central tendency(mean, mode and median)
v. Correlation, ANOVA and independent sample test
6
1.7 Conceptual framework
Conceptual framework plays an important role in guiding the entire process of the
research study. Theories are constructed in order to explain, predict and master
phenomena such as relationships, events, the behavior and others. The conceptual
framework helps the reader to make a logical sense about the relationship of the
variables or factors. It develops the relation between dependent and independent
variable to formulate a hypothesis. In this theoretical framework the dependent
variable is customer satisfaction and independent variable are service provider, price,
service quality, customer care and services use.
7
1.8 Hypothesis formulation
The research aims to test the following hypothesis:
H1: There is significant relationship between Service Provider and Consumer’s
Satisfaction towards foodmandu.
H2: There is significant relationship between Price and Consumer’s Satisfaction
towards foodmandu.
H3: There is significant relationship between Service quality and Consumer’s
Satisfaction towards foodmandu.
H4: There is significant relationship between Customer care and Consumer’s
Satisfaction towards foodmandu.
H5: There is significant relationship between Service use and Consumer’s Satisfaction
towards foodmandu.
8
CHAPTER II
The study was focused to know the customer satisfaction on Foodmandu.com. This
study employs the various statistical tools and techniques in order to know the
customer satisfaction on Foodmandu.com. For the purpose, required primary data was
collected through the structured questionnaire and analyzed in a systematic way to
find out the appropriate result.
In this research, questionnaire was developed and distributed to the 100 respondents
to get the information about the customer satisfaction on Foodmandu.com. ALL the
respondents were inquired in advance about their interest in participating in the survey
at the time of collecting data. The responses received from the participant have been
arranged, tabulated and analyzed in order to facilitate the descriptive analysis of the
study. This chapter is all about the empirical investigation during the study.
9
2.2 Respondent demography profile
Descriptive statistics refers to the summary statistic which describes the features of a
data quantitatively converting the raw data into viable information to discern patterns
from the data. The below table shows the frequency of the data alongside percentage
and cumulative percentage of the data.
The following table and chart indicates the gender of respondents involved in this
study.
Total 60 83.3
From Table1& Figure1, we can see that 48.6% of male use to order food from
foodmandu and 34.7% of female are using foodmandu to order food. This shows that
the number of Male respondents is higher than Female respondents who order food
from foodmandu.
10
Table 2: Age of the respondents:
19 2 2.8 3.3
20 4 5.6 10.0
21 17 23.6 38.3
22 17 23.6 66.7
23 7 9.7 78.3
24 3 4.2 83.3
25 2 2.8 86.7
28 2 2.8 90.0
29 3 4.2 95.0
31 1 1.4 96.7
32 1 1.4 98.3
38 1 1.4 100.0
Total 60 83.3
11
Figure 2: Age of respondent
From table 1 and figure 2, 6 respondents belong to age group of 15-20. The majority
of respondents belongs to the age group 20-25 i.e. 46 respondents out of 60
respondents. 5 respondents belong to the age group between25 -30, The 2
respondents belong to the 30-35 age groups and finally remaining 1 respondent
belongs to the age group of 35-40.
12
2.2.1 Monthly family income of respondents
The incomes of respondent highly determine the level of uses of Foodmandu.com. As
the income level is one of the major factors influencing the use of foodmandu.com.
The following table and figure indicates the monthly income
Total 60 83.3
Total 60 83.3
14
From the table 4 and figure 4 we can analyze that the number of respondent pay their
services through cash i.e. 40 respondents out of total 6 respondents and 20
respondents pay through e-payment i.e. 27.8%.
15
Descriptive Statistics
The table 5 shows that the highest mean is 2.5 which is of the statement ‘The service
provided is close to what I expect’ with standard deviation .871.Similarly, the lowest
mean is 2.28 for the statement ‘I am satisfied with my service provider’ with standard
deviation .865.
16
Descriptive Statistics
The table 6 shows that the highest mean is 3.07 for the statement ‘I will pay higher
price for better quality’ with standard deviation 2.661. Similarly, the lowest mean is
2.58 for the statement Price is reasonable with standard deviation .907
Descriptive Statistics
The table 7 shows that the highest mean is 3.37 for the statement ‘Because it is cheap’
with standard deviation 3.98. Similarly the lowest mean is 2.87 for the statement
‘Because it has higher facility’ with standard deviation is .79.
17
Descriptive Statistics
The table 8 shows the highest mean is 3 for the statement is staffs are friendly with
standard deviation 0.55. Similarly, the lowest mean is 2.6 for the statement ‘I find the
customers care to be an important matter while judging service providerwith standard
deviation is 0.78.
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2.4 Aggregate mean and standard deviation of dependent variables of customer
satisfaction on foodmandu.com
Table 9:Descriptive Analysis of Customer satisfaction
Descriptive Statistics
The above Table 9 illustrates that the responses for consumer satisfaction are
designed in 5-point Liker scale, where 1 indicates strongly disagree, 2 indicates
disagree, 3 indicates neutral, 4 indicates agree, and 5 indicates strongly agree. The
mean average of consumer satisfaction was calculated from the data collected from
the respondents. The table shows that the mean average for consumer satisfaction was
3.15. Since mean average is greater than 3, it indicates that all five constructs are
significant and approved by respondents. Furthermore, ‘Foodmandu.com is consumer
friendly’ has the highest mean (3.43) with standard deviation (0.53) and ‘price
charged are appropriate’ construct has the lowest mean (2.99) with standard deviation
(0.57). It means it is important for the consumers to have service provided enough for
satisfaction. However, the mean average for Price charged are appropriate have
lowest mean which indicates that the price on product have less impact on satisfaction
of consumer.
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2.5 Relationship between dependent and independent variable
Table 5: Correlation Analysis
Correlations
Customer Service Price Service Custome Service
satisfactio provider quality r Care use
n
Customer Pearson 1
satisfactio Correlatio
n n
Service Pearson .312* 1
provider Correlatio
n
Price Pearson .322* 0.028 1
Correlatio
n
Service Pearson .266* 0.121 0.11 1
quality Correlatio
n
Customer Pearson .577** .283* 0.228 .353** 1
Care Correlatio
n
Service Pearson .470** -0.108 -0.005 0.183 .356** 1
use Correlatio
n
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
Source: Questionnaire Survey (2019)
Correlation analysis shows the relationship between the independent and dependent
variables. The value of correlation should range from +1 to -1. In course of
interpretation of the correlation table we have used the model prescribed by (Levin
and Fox, 2006) who interpreted the value of ‘r’ as strong correlation (if r≥0.60),
moderate correlation (if 0.30<r<0.60) and weak correlation (if r≤0.30). In the above
table the mean of each variable is taken into consideration for the calculation of
correlation alongside the mean values of the Independent variable. From the above
table, following conclusions can be drawn as to the relationships between the
variables:
20
Independent Consumer satisfaction Hypothesis Accept
Variables or reject
Correlation
Value
The above table 11 we can see the relation between the dependent and independent
variable. Here the highest correlation value is 0.57 for Customer Care which has an
influence for shaping customer satisfaction rather than other variables. The service
quality is weakly correlated with consumer satisfaction towards foodmandu
The significance of all independent variable are evaluated at level of p value <0.05.
21
The p value is 0.02 which is less than the 0.05. Thus, there is significant relationship
between service provided and customer satisfaction towards Foodmandu.com. So, the
hypothesis is accepted.
Here the p-value is 0.01which is less than the 0.05.Thus there exist significant
relationship and hypothesis is accepted.
Here the p-value is 0.04 which is less than the 0.05. Thus there exist significant
relationship and the hypothesis is accepted.
Here the p-value is 0.00 which is less than the 0.05. Thus there exist significant
relationship and the hypothesis is accepted.
Here the p-value is 0.00 which is less than the 0.05. Thus there exist significant
relationship and the hypothesis is accepted.
22
2.5 Major findings
i. Majority of respondent of this research were male i.e. 58.33 % and female
with 41.667 %
ii. Majority of respondents were from the age group of 20-25 i.e. 46 respondents
out of total respondents
iii. Majority of respondents fall under the monthly income group of 10000-20000
i.e. 33.44%
iv. Majority of respondents pay the services through cash i.e. 66.67 % than e-
payment
v. The weighted average mean of independent variable were as 2.37 of service
provider, 2.82 of price, 2.68 of service quality, customer care is 2.86.
vi. The correlation analysis showed that the customers are more concerned with
the customer care when it comes to satisfaction of customer satisfaction of
foodmandu.com as it has the highest value correlation i.e. 0.57. Other
independent variable had moderate correlation with the dependent variable.
vii. For testing hypothesis correlation significant value were taken into
consideration. It showed that all the independent variable had significant
relationship regarding shaping customer satisfaction towards
Foodamandu.com
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CHAPTER III
3.1 Conclusions
Customer satisfaction is the fulfillment of desires, or expectations. It is positive
mental state of mind. It is pleasurable state of successful situation or to attain win-win
situation. The gap between expectation and perception determines the level of
satisfaction. The conclusions drawn from the research work is based on the analysis
and interpretation of response as drawn from chapter 2. For this purpose, survey
questionnaire was prepared and distributed and responses were analyzed using various
tools. Conclusion show readers the value of your completely developed argument
thoroughly answered question. Customer satisfaction brings positive word of mouth,
customer loyalty, quality of life of customers and support growth and continuity of the
business.
24
3.2 Action implications
On the basis of the findings and conclusion of the study this research is useful for the
customers, competitors, future researchers, and marketers. This study is significant for
E- Restaurants. The company should focus upon the quality and taste of consumers.
The information regarding cost, management, how and what services are rendered can
be easily accessible for benchmarking the performance as well. This research provides
the data on online food ordering. Even the present research are useful for further
research on similar topics. This study was small, as the size of the respondent was
small. When conduction research on similar topics, a large sample should be taken
into consideration so that most reliable result can be attend. I t helps to formulate
plans and policies for the improvement of facilities provided by online food ordering.
The company should give opportunity to their users to share their views and feedback
about each other which will motivate them and get satisfied about their work and
performance.
25
REFRENCES
i. Li-Wei Mai Mitchell R. Ness, (1999), Canonical correlation analysis of customer
s satisfaction and future purchase of mail-order speciality food.
iii. Charlene Pleger Bebko, (2000) Service intangibility and its impact on consumer e
expectations of service quality.
iv. Sheryl E. kynes, (2011), Current state of online food ordering in US restaurants.
v. G. Ronald Gilbert Cleopatra Veloutsou Mark M.H. Goode and Luiz Moutinho.
M Measuring customer satisfaction on fast food industry.
26
APPENDIX
Questionnaire:
1) Name: - ……………………………….......
2) What is your gender?
☐Male ☐Female
3) What is your age………………………….
4) Marital Status : Married ☐ Unmarried☐
5) Occupation : Student ☐ Employee ☐ Professional ☐
6) Monthly Income : less than 5000☐ 5000-10000☐
7) How long have you been using this app for? ……………….
8) By which method you pay your bill : Cash☐ E-Payment☐
Below are five statements that you may agree or disagree with. Using the 1- 5 scale
below, where 1= Strongly Agree, 2= Agree, 3=Neutral, 4= Disagree and 5= Strongly
Disagree. Answer each of the following (circle the appropriate values) as they apply
to yourself.
S.N Price 1 2 3 4 5
1. Price is reasonable
27
2. I will pay higher price for better quality
Why do you use this service?
1. Because it is cheap
2. Because service is fast
3. Because it has higher
28