Marketing Research

Review of Related Literature

Foreign

These days, especially in the light of technological advancement whose main purpose is to enhance
lifestyle and make things more convenient for everyone, people have begun turning online to be able to
fulfill their daily needs and necessities. It also helps that everything you want and you need can be found
and obtained online. Due to this, consumers have begun relying on online markets to be able to buy
what they want, and it is also due to this that they began relying on deliveries when getting things they
want to buy. With more and more consumers favoring online shopping rather than going out to buy
stuff, themselves, many companies have also begun to open up online markets where consumers who
wish to purchase their goods by surfing their net can buy from. Several businessmen have also seen this
as an opportunity to increase their sales. The online shopping market size in 2020 is around 4 million,
and as of 2018, the digital buyers’ penetration rate worldwide is 47% (Optimonster, 2021). This size of
percentage is all thanks to the “convenience” online marketing platform has offered to consumers-
convenience being the key word here. This very essence online markets give to their consumers is also
what makes them loyal to them, thus, excellently promotes customer loyalty.

Factors That May Affect Buying Decisions

There are many factors that supposedly affect a consumer’s buying decision, and in turn, can either
encourage them to be loyal to you or to be discouraged by you. Delivery time influences 87% of online
shopper’s purchase decisions (Parry, 2016). Other factors that may affect a consumer’s buying habits
when buying online would include the fact that consumers prefer not to walk long distances to pick up
their products, the size of their package may sometimes be difficult for them to transport, and the fact
that they won’t be at the mercy of schedules or deadlines through same day deliveries (Gottlieb, 2018).
Meanwhile, factors that may affect your delivery service’s overall image include shiping costs, speed of
delivery, professionalism, real-time tracking, payment method, and coverage (Bevan, 2019).

The Restaurant Industry and Food Delivery Platforms

One of the most well-known goods or products online is food. Combined with both demands for food
and online deliveries, several companies and businessmen have come up with a solution to that: food
delivery platforms. Online Food Delivery Platform is a type of e-commerce wherein food is ordered and
delivered through online means. Much of the restaurant industry has turned to this kind of method in
order to reach out to their customers more, and at the same time to penetrate the market further. The
most common model for food delivery is the traditional one- where a person orders a food online by
contacting a restaurant, the restaurant cooks their order while the customer waits, and then the
restaurant will deliver it to the customer (Hirschberg et al., 2018). Recently, many changes were made,
and new forms of delivery were made, with some being independent, meaning they are not affiliated to
a certain restaurant, acting as delivery people for any restaurant. Sometimes, their independence
extend beyond being the ones to make the meals instead. These kind of companies saw a huge boost in
sales and popularity during the pandemic. (McCann, 2021).

Related Foreign Studies

Food delivery services are used globally, although some countries more frequently make use of their
services more than the others. In the light of the pandemic landscape, this type of business somehow
saw a boom, they became even used more widely than ever, especially during the time when people are
advised not to go outside their houses. Prominent countries who make use of these services are
Australia, Mexico, the UK, and the USA. In a study, a 15% of the respondents across those countries
reported that they have made use of online food delivery services in 7 days, although two-thirds of
these respondents said that they have ordered food online through food outlets nut had not used an
online delivery service, meaning they prefer to order food through restaurants than making use of
independent delivery services, such as Grubhub and Just Eat. These online Food Delivery Services were
only used, at an average, of once per week. Here, it can be concluded that although people prefer to get
food through online means, online food delivery services are not necessarily as popular as we think, as
people still, by default, prefer to order through restaurants online. (Adams et al., 2020). Furthermore, it
is still recommended that thorough promotion of these businesses must be done.

Like any other industry and businesses, the food industry must present themselves clearly and ethically
towards their consumers. Brand image is still a matter of protecting and promoting them, and the
performance they make may sometimes be overshadowed by the way of how the company market
themselves. With how the company efficiently deliver the food to their consumers, it usually has a
positive effect in the consumer’s behavior and purchasing decision, and the more good and easy time
the delivery people would give to the consumers, the most likely they will be enticed to make use of
their services more in the future. Food Delivery platforms are not just a simple order-and-deliver type of
industry, it is also an art. Several factors may have an effect in contributing as to how a company may
present itself to their consumers and the geographical their services cover. Consumers’ subjective
expectations, influence of third-parties (if there ever was one), and their past experiences when making
use of your service are things to consider if you strive to create a positive image for your food delivery
business, likewise, they have a positive effect of the utilitarian and hedonic value your company
supposedly offers to your consumers. Improving your utilitarian value is especially vital for this kind of
business as your customers must feel secure and satisfied with the quality of service, in order to
encourage them to remain loyal. The utilitarian value of your food delivery business significantly affects
your consumer’s purchasing decisions, and in order to do this consumers must have the ease of use,
convenience, and enjoyment, these are guaranteed to make your consumers rely on your services more
(Chen et al., 2020).

Related Local Literature

Philippines is known to be a social-media or phone-loving country, and it is no wonder that many
Filipinos turn to the internet for their daily necessities. It was reported that around 71% of the Filipino
population are active internet users, and 70% of the total population have bought a product in online
retail services in a month. Most frequent buyers are of the ages 18-31, and most importantly those who
are belonging to that group that are at least tech-savvy, and that more women have bought products
online than men. Most of these Filipinos also belong to the middle-class income (Katrina B. & Benedict
L., 2019). With this large of a number, online retail businesses can see a huge potential in the market,
especially that Filipinos do prefer to do their window shopping online as well. During the pandemic,
Philippines even saw a huge increase of percentage in shopping apps usage in Southeast Asia, with it
being a53% increase, and also had the highest “basket size” increase in Southeast Asia, the highest, with
it being a 57% increase. Meanwhile, the most ordered product online are sports and outdoor products,
having a 34% increase compared to last year (Cana, 2020).

Among the many products ordered online, food is especially one of them. Filipinos are also known for
their voracious appetites, their love for food, and nothing makes them happier than a tasty treat. In the
pandemic landscape, there is an increase in the number of food deliveries happening. Due to this, food
delivery apps were developed, and began having decent number of downloads. This is mainly due to the
features that these app offers that makes it loved by Filipinos. Benefits of these apps are the availability
and variety of food and restaurant choices, flexibility of payment methods, order-tracking and
rescheduling features, and the availability of promos and offers, all enough to make a Filipino consumer
satisfied (AG, Christelke, 2020). Among the popular food delivery apps in the Philippines are GrabFood,
LalaFood, AngkasFood, and Food Panda.

Related Local Studies

Food Delivery Apps in the Philippines

Food delivery apps are used by families, and there really isn’t a dominant sex as to who orders the most
in the family, therefore making the services universal in the Philippines, as sometimes even the children,
themselves, may make the orders. Breakfast and Lunch are usually the meals bought through online
delivery services, while dinner or supper is not ordered much. The proximity or distance deliveries must
traverse also bear little effect when it comes to buying behavior among Filipinos, as the main reason
why they order is due to work- Filipinos are often too busy to cook for themselves or the family, and also
have little time to clean the dishes, especially if they’re working from home or had just came home from
work (Tomacruz, 2020). This suggests that food delivery apps are mostly perceived as timesavers for a
Filipino household.

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