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International Journal of Hospitality Management 77 (2019) 108–116

Contents lists available at ScienceDirect

International Journal of Hospitality Management


journal homepage: www.elsevier.com/locate/ijhm

Differences in perceptions about food delivery apps between single-person T


and multi-person households

Meehee Choa, Mark A. Bonnb, Jun (Justin) Lic,
a
College of Hotel and Tourism Management, Kyung Hee University, 26, Kyungheedae-ro, Dongdaemun-gu, Seoul, 02447, Republic of Korea
b
Dedman School of Hospitality, Florida State University, B4104 University Center, 288 Champions Way, Tallahassee, FL 32306, USA
c
School of Tourism Management, South China Normal University, Higher Education Mega Center, Guangzhou, China, 510006

A R T I C LE I N FO A B S T R A C T

Keywords: The growth in mobile communications is a significant reason attributed to the O2O commerce explosion in
Food delivery apps China. Mobile applications have seized this opportunity adapting it to restaurants and food delivery services,
Mobile application quality attributes recognized as an alternative strategy to increase sales revenue and for consumers to conveniently receive pro-
User-perceived value ducts and services. This study was designed to specifically explore five salient quality attributes representing
Single-person households and multi-person
convenience, design, trustworthiness, price, and various food choices associated with food delivery apps in
households
consideration of their impacts upon user-perceived value, attitudes and intention to continuously use. Results
determined that user trustworthiness was the most important quality attribute of the food delivery app business.
Additionally, this study found that single-person households placed most importance upon quality attributes for
‘various food choices,’ ‘price’ and ‘trustworthiness.’ Comparatively, multi-person households placed most im-
portance upon ‘design,’ ‘convenience,’ and ‘trustworthiness.’ Managerial implications, limitations and re-
commendations for future research are provided.

1. Introduction percent of the population subscribing to a mobile service. In addition,


North America accounted for 292 million subscribers, but Asia was the
Rapid advances and developments in electronic commerce has region with the most number of mobile subscribers (2765 million).
brought with it many changes to those traditional practices within the With the proliferation of smartphones and tablets, China accounts for
work environment from which a new e-commerce model, called online more than one billion of the world’s total mobile service subscribers
to offline (O2O) has now emerged (Liu et al., 2017a, b). Recognized as (GSMA, 2017). Thus, the ability for ease of and growth in mobile
O2O, this common symbol describes a platform allowing customers to communications is one of the most significant reasons for having led to
purchase a wide range of products or services online or from physical the O2O commerce explosion in China during recent years. Currently, a
brick-and-mortar stores (Li and Mo, 2015). This cost-effective solution very hot topic with O2O business managers in China involves how they
connects offline business opportunities with the Internet or enterprise are examining their customers and in particular, what determinants
network, and makes the Internet become a fully integrated, compre- goes into their customers’ purchasing processes when selecting service
hensive, and advanced e-trading platform (Chen et al., 2016). Managers providers across numerous communication and sales channels, to begin
and markets have attempted to utilize the O2O business mode to attract providing a variety of location-based services based on the penetration
more online browsers to their physical offline stores by providing better of mobile applications and transaction scales of online retail markets
shopping environments equipped with convenience, a user-friendly (Du and Tang, 2014). As a representative example, China’s emerging
design and a vast variety of products and service choices (Hubert et al., “Internet Plus” catering businesses, featuring O2O food delivery ser-
2017). vices has been undergoing an explosive growth period (Pressreader,
According to the mobile economy report released by the Global 2017). Consequently, the food delivery service niche using mobile apps
Association of Mobile Operators (GSMA), due to the ubiquity of has become a rapidly growing trend among Chinese take-out restau-
smartphones and high-speed connectivity, during 2017 the number of rants as a convenient way to allow those businesses to increase sales
global mobile phone users surpassed five billion. The report also revenue (Pressreader, 2017). Growing numbers of mobile users are
documented that Europe had the highest mobile penetration with 86 tapping into their smart phones or tablets to order food on major


Corresponding author.
E-mail addresses: chom2h2@khu.ac.kr (M. Cho), mbonn@dedman.fsu.edu (M.A. Bonn), justinli83@scnu.edu.cn (J.J. Li).

https://doi.org/10.1016/j.ijhm.2018.06.019
Received 20 February 2018; Received in revised form 15 June 2018; Accepted 15 June 2018
Available online 19 June 2018
0278-4319/ © 2018 Elsevier Ltd. All rights reserved.
M. Cho et al. International Journal of Hospitality Management 77 (2019) 108–116

delivery apps such as Eleme, Meituan, Baidu, and Koubei Take out, In China, changing household demographics could be a primary
which makes it possible to order food from their favorite restaurants reason attributed to the sudden increase in popularity for food delivery
right to their doorstep with just a few easy clicks. Food delivery app apps, as the fastest-growing household segment is now represented by
businesses in China have been booming and now have become the ul- individuals, or single-person households. Multi-person households
timate platform for generating leads and increasing revenue (Li, 2017). (more than one person per household), are no longer the majority de-
This major transformation in the way consumers are now beginning mographic segment in China. This is attributed to four factors that in-
to order food has already begun in many other countries. For example, clude: an ageing population, a documented decline in household mar-
during 2017 in the US, when the population was about 320 million riages, a remarkable fall in total fertility rates and a continued pattern
persons, it was reported that about 95% of the entire restaurant de- of Chinese citizens migrating internally from rural to urban areas
livery market still placed orders using paper menus. Additionally, at seeking improved employment opportunities (Yeung and Cheung,
that same time, an overall 80% of all total US restaurants did not even 2015). By 2020, China and India will soon lead the world in having the
offer a delivery menu option. However, in Los Angeles, California, highest numbers of single-person households (Euromonitor
restaurants that began partnering with food delivery apps then, saw International, 2012). Because of these generational factors, the reali-
their sales revenues rise on average, from 3% to 35%, or between zation that certain challenges face specific social groups of single-
200–250 new orders per week. Managers today refer to the food app person households is a certainty. Many single-households representing
delivery system in the US as “ghost kitchens,” because it is able to consumers of older generations are particularly vulnerable and subject
generate so many more guests each week for their restaurants without to medical and social issues involving subsidized health care, welfare,
the need for them to incur the additional expense of having to invest in and housing (Podhisita and Xenos, 2015). On a more positive note, the
a second property, or even having to add more dining space. In fact, the issue regarding single-person households representing younger gen-
big trend now in the US with food delivery app businesses has begun to erations of consumers has presented practitioners, scholars and espe-
expand into much more than restaurant food delivery services. Food cially the restaurant industry, an amazing opportunity to identify those
delivery apps such as Postmates will now even deliver alcohol to your needs, and then develop new growth strategies, processes and practices
door in 90 US cities. Sources predict that in 2–3 years, food delivery for an industry that has historically worked on small profit margins.
apps will become as core to a US restaurant’s business as the take-out Single-person households representing younger generations of
windows are to the fast-food restaurant business (Lien, 2017). Thus, if consumers demanding home delivery via food apps has opened the door
the opportunity for food delivery apps is ripe in the US, one can only to new ideas regarding product design and promotion in order to meet
imagine what it would be like in China with its population of 1.4 billion the needs of these younger, tech-savvy individuals (Yeung and Cheung,
citizens. 2015). As a result of the single-person household consumer’s lifestyle,
Consumers share different preferences and priorities when it comes products and services developed and offered by the food service in-
to food. They also may hold different expectations regarding the quality dustry have been forced to either adapt to change, or decline into ir-
and services of specific food delivery apps, and further, may have dif- relevance. Thus, new products have been developed for the single-fa-
ferent opinions about their levels of perceived value pertaining to using mily household consumer market to satisfy their needs representing
those food delivery apps. To our knowledge, no relevant study has yet smaller, individually-portioned sized, fully cooked items, offered at
to explore what represents those important quality attributes pertaining local convenience stores as packed, replacement boxed lunches (Jung,
to food delivery apps. Nor has any research to date, tested how those 2016). This is a result of research that found although single-person
quality attributes associated with food delivery apps affect user per- households were found to do less grocery shopping, they were identi-
ceptions and their behavioral intentions to use, re-use, and/or re- fied as using more food delivery services to order food (Lehmann,
commend those products and services to others. Hence, this study was 2016). Thus, food purchasing and consuming patterns may differ sig-
designed to specifically explore the most salient quality attributes as- nificantly between single-person and multi-person households. Single-
sociated with food delivery apps in consideration of their impacts upon person household food app users and their perceptions and preferences
user-perceived value, attitudes and intention to continuously use and about food delivery app quality attributes may be significantly different
recommend to others (Fig. 1). from multi-person household food delivery app users. Therefore, this

Fig. 1. Research framework.

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M. Cho et al. International Journal of Hospitality Management 77 (2019) 108–116

study was designed to determine whether or not the effects of food attributes would be important to drive installs, boost adoption and gain
delivery app quality upon user-perceived value would be significantly customer loyalty. As an example, Handel (2011) identified five essential
different between two specific user groups, representing single-person quality attributes that included ‘ease of use,’ ‘reliability,’ ‘information
and multi-person households. quality’, information scope,’ and ‘aesthetics’ based upon user ratings of
35 health and well-being mobile apps. Another study by Al Dmour et al.
2. Theoretical framework and hypotheses (2014) assessed mobile app quality and its association with user sa-
tisfaction. In this study, mobile app quality attributes were categorized
Mobile apps are becoming a powerful way for business of all sizes to into two groups: technology-oriented quality attributes (convenience,
reach potential consumers. A statistical report by App Annie (2017) mobile features, technical adequacy and assurance) and product or
revealed that the average Chinese person accesses close to 40 apps per service-oriented quality attributes (trustworthiness, competitive price,
month, surpassing those averages of other nations including the U.S., allowing customers to choose more options or customizations on their
India and France. Gaming and entertainment apps followed by life products). Another recent study highlighted the importance of devel-
service apps and e-commerce apps are the three most popular app store oping an essential set of mobile app quality attributes representing
categories available for download (Business Insider, 2017). Among ‘convenience,’ ‘design,’ and ‘trustworthiness,’ in order to improve the
them, food delivery related apps are becoming one of the most booming user-friendly experience. ‘Convenience,’ representing assurance to ac-
e-commerce apps (Pressreader, 2017). cess and use a mobile app at any convenient time and place, has been
According to a 2016 report released by the Daxue consulting firm, addressed to monitor mobile app quality (Liu et al., 2017a, b). Another
27.7 year-old, white-collar Chinese consumers are recognized as the quality attribute, ‘design’ represents logical structures of mobile apps
major group (63%) among the food delivery app users (Daxue involving usability, understandability, and operability that users need
Consulting, 2016). Many of them are Chinese millennials whom spend to put effort into in order to use (Yang et al., 2004). One study by Kim
little time cooking for themselves, favor ordering food or eating out. and Hwang (2012) highlighted the importance of mobile app design
Students represent the second largest group (30.5%). The three most especially in the e-commerce environment where users expect to fina-
popular food delivery apps include Eleme, Meituan, and Baidu Waimai, lize all searching, ordering and purchasing processes in a few clicks.
which dominate over 80% of the business in China (Alltechasia, 2017). Trustworthiness in mobile apps has been widely accepted as a critical
The food app market has become a recent battleground for many new quality attribute based on the previous literature’s proposition that
start-up food delivery app companies seeking an opportunity for growth user-trustworthiness toward mobile apps plays an important role upon
by exploring and developing unique business models (Alltechasia, their decision-making for online purchasing, which further leads to
2017). Thus, operators and their food app vendors need to focus on greater loyalty for using mobile apps (Nilashi et al., 2015).
maximizing the food app’s ease of service, utility, and product attri- Adopting Al Dmour et al. (2014)’s position, this study posits that
butes deemed most important by consumers. product or service-oriented quality attributes should be addressed when
examining quality attributes of food delivery apps and their impact
2.1. Food delivery application quality attributes and the effects upon the upon user-perceptions. Cho and Park (2001) previously identified “a
user-perceived value suitable selection of products/services with a fair and reasonable price”
as one of the major online quality attributes that influences users’ at-
Mobile apps are software especially designed for small, hand-held titudes and behavior. Thus, these five quality attributes representing
portable devices, like tablets and smartphones, and are some of the ‘offering a reasonable and competitive price,’ ‘allowing users to choose
fastest growing sectors of downloadable enterprise applications/soft- a variety of food to order,’ ‘convenience,’ ‘design’ and ‘trustworthiness’
ware markets (Stoyanov et al., 2015). Especially because the rapid are expected to be essential in food delivery apps.
development and proliferation of smartphone apps tends to occur Perceived value is conceptualized as the ratio between perceived
among critical domains of businesses commonly affiliated with e-pro- benefits obtained and perceived sacrifices made by consumers
curement, government, healthcare and foodservice, one research study (Zeithaml, 1988). Value can be regarded as a trade-off of all salient give
has documented that the most important success factor of mobile apps and get components, which are perceived as the interactions between
is to ensure their product quality (Magrath and McCormick, 2013). relevant benefits and sacrifices (Sweeney and Soutar, 2001). Identifying
Product quality is assessed based on customer judgment concerning antecedents of perceived value has received considerable attention in
the overall excellence or superiority of that product (Zeithaml, 1988). recent years (Kang et al., 2015). Researchers have regarded consumer
One study by Kim and Cha (2002) has empirically identified that con- evaluations about product or service quality as one of the important
sumers tend to rely on different information sources to confirm product determinants of positive perceived value (Wang and Wang, 2010).
quality and enhance the likelihood of purchasing in an e-commerce Supporting this, it is necessary for practitioners and academics alike to
context. However, compared with the in-store shopping experience, understand how mobile consumers’ perceived app quality attributes
where service providers stand readily available to assist consumers lo- influence their perceived value. A positive link between the five di-
cate products and answer questions about those items, the e-commerce mensional attributes of food delivery app quality and user value per-
environment offers limited product information to consumers prior to ception is then proposed in foodservice business setting as follows:
the transaction (Chen and Dubinsky, 2003). Supporting this, Lee and
H1. Convenience quality of food delivery applications has a positive
Kozar (2006) argued that measuring product quality under the e-busi-
relationship with user-perceived value.
ness environment is not intrinsically objective in nature, but rather is
closely related to user-subjective perception. With the popular usage of H2. Design quality of food delivery applications has a positive
wireless handheld devices such as tablets and smart phones, increas- relationship with user-perceived value.
ingly more businesses sell their goods and services via mobile apps
H3. Trustworthiness quality of food delivery applications has a positive
(Magrath and McCormick, 2013). Mobile apps are purchased or
relationship with upon user-perceived value.
downloaded through app stores which users can then rate and review.
Thus, user ratings and reviews are one of the most important triggers H4. Price quality of food delivery applications has a positive
for app discoverability and installs, and have now become core metrics relationship with user-perceived value.
to gauge success (Khalid et al., 2015).
H5. Various food choices of food delivery applications has a positive
Scholars and practitioners tend to agree that identifying appropriate
relationship with user perceived value.
quality attributes of mobile apps should be fully based upon the user-
evaluation and have begun to investigate what mobile app quality

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2.2. Relationships between user-perceived value, attitudes and intention to significant differences between the two groups in terms of their shop-
continuously use ping attitudes and behaviors, single-person and multi-person house-
holds might differ in their perception of food delivery app quality. In
Perceived value has gained research attention in recent years be- addition, single-person households might perceive value differently
cause it plays an important role in predicting consumers’ behavioral than multi-person households regarding food delivery apps. Based upon
intention from the attitudes toward a specific act (Nasution and the rationale provided above, this study proposes that a significant
Mavondo, 2008). From the standpoint of strategic marketing, creating difference in the effects of food delivery app quality attributes upon
superior customer value (better benefits versus price) for consumers user-perceived value exists between single-person and multi-person
means meeting potential customers’ wants and needs, improving households.
buying experience, and increasing repeat purchases. When perceived
H9. The relationships of food delivery application quality attributes and
value is seen as an overall judgement of the relative value-weights to
user-perceived value are significantly different between single-person
different products, it can be expressed as the total benefits a consumer
and multi-person households.
obtained; thus it is considered as one of the major antecedents of cus-
tomer attitudes and repurchase intention (Chen and Hu, 2010).
The preceding overview of the literature has highlighted the ex- 3. Method
istence of mechanisms between perceived value, customer attitudes,
and behavioral intention. Several empirical models have been proposed 3.1. Data collection and sampling
and empirically tested specifically to understand the relationships
among these three variables across a wide range of industries including Data were collected between December 2017 and February 2018
tourism (Žabkar et al., 2010). It is believed that high product quality from 311 shoppers intercepted at the four largest shopping centers lo-
results in a positive attitude for the product which ultimately leads to cated in Guangzhou, China, the largest metropolitan city in South
referral marketing and word-of-mouth (Kang et al., 2015). With regard China. Before initiating the formal phase of data collection, the research
to O2O commerce, mobile users are competent to make sound purchase team conducted an online pretest of the questionnaire with a panel of
choices based on the perceived values towards the quality of mobile 15 graduate students, all of whom were validated as having had proven
apps (Magrath and McCormick, 2013). For example, consumers will experience with ordering food using food delivery apps, in order to
have more positive attitudes when their expectations toward these food check for ambiguities or vague items. A research team, led by one re-
delivery apps are matched or exceeded by their perceived value. searcher, and staffed by research assistants from a local university,
Moreover, customer attitudes toward the food delivery apps and their conducted semi- structured interviews with a convenience sampling of
intention to continuously use are significantly associated. Thus, the consumers who were each screened to confirm they had at least one
following hypotheses are proposed in the food delivery app business previous online food delivery ordering experience within the past 12
setting: months. During the interview, the research team members used tablets
to type notes due to time and cost constraints.
H6. User-perceived value has a positive relationship with attitudes
Based upon this, minor changes in wording and format were made
towards food delivery applications.
to the final version of the questionnaire. The original English version of
H7. User-perceived value has a positive relationship with intention to the questionnaire was translated into Mandarin. To verify its adherence
continuously use food delivery applications. to the original document, the final questionnaire was then translated
back to English by two independent translators. The confidence interval
H8. Attitudes towards food delivery applications has a positive
procedure has been widely used to determine an adequate sample size
relationship with intention to continuously use food delivery
in business and marketing research. Using a proportion of 50% variance
applications.
in a population (Burns and Bush, 1995), the final sample included 311
participants based upon a 25% response rate and an unusable rate of
2.3. Single-person vs. multi-person households in China 5%. In addition, the sample was divided into two groups. One group
was comprised of respondents who lived alone (single-person house-
The growth rate of single-person households in the major Asian holds, n = 116). The other group consisted of respondents who lived
countries has been one of the most striking demographic shifts and is with others (multi-person households, n = 169).
expected to increase dramatically due to rapid urbanization, migration,
aging and changing demographic behaviors (Podhisita and Xenos, 3.2. Socio-demographic characteristics and food delivery app usage
2015). Yeung and Cheung (2015) estimated that single-person house- patterns: single-person vs. multi-person households
hold will increase in China in the next few decades due to its sheer
population size, the unique demographic changes, and rapid socio- Table 1 presents socio-demographic characteristics and food de-
economic transformation. Kim et al. (2018) stated that industrialization livery app usage patterns of the study respondents. Socio-demographic
and internal migration largely explain the changing spatial variation of information provided by respondents from single-person households
single-person households in South Korea. indicated they were mostly single (75.9%) males (51.7%), between
Recent research provides evidence supporting key differences exist 21–30 years old (82.8%), with some college or earned college degrees
between single-person and multi-person households in terms of their (61.2%), and having incomes between RMB 6,000–8,999 per month
shopping beliefs and behaviors such as consumption patterns, life styles (25.9%). In comparison, multi-person household respondents were
and grocery shopping habits (Kim et al., 2018). In support of this, one described as being predominantly married (56.4%) males (53.3%) be-
earlier study (Ezell and Russell, 1985) analyzed the responses of single- tween 21–30 years old (69.2%), with some college or earned college
person and multi-person households regarding shopping, eating, and degrees (48.7%), having an average family size of three persons per
food preparation. Test results demonstrated that there were statistically household (39.0%) and earning between RMB 6,000–8,999 per month
significant differences between the two groups’ food selection choices, (32.3%).
grocery shopping attitudes and behavior, and social, economic and When examining food application usage behavior characteristics of
demographic characteristics. What was interesting in this study was single-person vs. multi-person household respondents, it was noted that
that the single-person household shopper was concerned with price, single-person households used the Mei Tuan Wai Mai Food App more
product assortment and relatively high value on discounts compared frequently than all others (36.2%). Food App users from single family
with the multi-house household shoppers. Thus, based on the households, on average, used those various food apps 5–6 times per

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Table 1
Socio-demographics and behavioral characteristics of food delivery application users.
Socio- demographic Single-person Multi- person User- behavior Single-person Multi-person
n (%) n (%) n (%) n (%)

Gender Application used the most


Male 60 (51.7%) 104 (53.3%) E Le Ma 38 (32.8%) 45 (23.1%)
Female 56 (48.3%) 91 (46.7%) Mei Tuan Wai Mai 42 (36.2%) 75 (38.5%)
Age Bai Du Wai Mai 29 (25.0%) 53 (27.2%)
21 – 30 96 (82.8%). 135 (69.2%) Kou Bei Wai Mai 7 (6.0%) 22 (11.3%)
31 – 40 13 (11.2%) 48 (24.6%) Monthly usage frequency
41 – 50 4 (3.4%) 10 (5.1%) 1-2 times 4 (3.4%) 6 (3.1%)
51 – 60 3 (2.6%) 2 (1.0%) 3-4 times 24 (20.6%) 65 (33.2%)
Marital Status 5-6 times 74 (63.7%) 101 (51.8%)
Married 28 (24.1%) 110 (56.4%) 7-8 times 12 (10.3%) 19 (9.8%)
Unmarried 88 (75.9%) 85 (43.6%) 9 times or more 2 (1.7%) 4 (2.1%)
Educational level Place used the most
High school graduate 30 (25.9%) 66 (33.8%) At home 74 (63.8%) 103 (52.8%)
Some college/College degree 71 (61.2%) 95 (48.7%) At school 11 (9.5%) 17 (8.7%)
Graduate studies/Graduate degree 15 (12.9%) 34 (17.4%) At work 20 (17.2%) 42 (21.5%)
Family size Others (park, stadium) 11 (9.5%) 33 (16.9%)
1 person, alone 116 (100.0%) – Monthly spending
2 persons – 62 (31.8%) < RMB 500 4 (3.7%) 10 (5.1%)
3 persons – 76 (39.0%) RMB 500 – 999 33 (26.6%) 65 (29.3%)
4 persons or more – 57 (29.2%) RMB 999 – 1499 77 (66.3%) 124 (63.7%)
Monthly income RMB 1500 ≤ 5 (1.7%) 4 (2.1%)
< RMB 3000 48 (41.4%) 27 (13.8%) Time used the most
RMB 3000 – 5,999 19 (16.4%) 53 (27.2%) 11am-2pm 55 (47.4%) 104 (53.4%)
RMB 6000 – 8999 30 (25.9%) 63 (32.3%) 5pm-8pm 41 (35.4%) 63 (31.7%)
RMB 9000 – 11,999 15 (12.9%) 45 (23.0%) 9pm-midnight 20 (17.2%) 28 (14.4%)
RMB 12,000 ≤ 4 (2.5%) 7 (3.6%)

Table 2
Results of confirmatory factory analysis.
Constructs Standardized CCR AVE Cronbach’s α
Factor loadings

Convenience .866 .722 .810


Using the food delivery app would be convenient for me .802
The food delivery app would allow me to order food any time .878
The food delivery app would allow me to order food any place .866
Design .912 .776 .856
The food delivery app’s structure is logical and easy to follow .881
The food delivery app’s design is concise and easy to understand .855
All the terms and conditions (e.g., payment, warranty) of the food delivery app are easy to read/ understand .907
Trustworthiness .879 .709 .793
I trust the food delivery app .783
I felt secure in ordering food through the food delivery app .867
The information provided by the food delivery app is reliable .872
Price .889 .728 .814
When I order food through the delivery app, the food is a good product for the price .877
When I order food through the delivery app, the food is economical. .849
When I order food through the delivery app, the food is reasonably priced .833
Various food choices .886 .722 .809
The food delivery app offers a variety of restaurant choices .891
The food delivery app offers a variety of food choices .845
I can order food with a wide range of prices through the food delivery app .812
Perceived value .870 .691 .777
I feel I am getting good food products with a reasonable price when I use the food delivery app .844
Using the food delivery app is worthy for me to devote my time and efforts .824
Compared with conventional food purchasing ways, it is wise to use the food delivery app .826
Attitudes towards food delivery apps .824 .611 .745
Using the food delivery app is useful .850
I am strongly in favor of ordering food through the delivery app .784
I desire to use the delivery app when I purchase food .705
Intent to continuously use food delivery apps .839 .634 .712
I intend to use the food delivery app .806
If I have an opportunity, I will order food through the delivery app .893
I intend to keep ordering food through the delivery app .790

Notes: χ2 = 290 df = 224 (p < 0.001), CFI = 0.974, GFI = 0.930, TLI = 0.967, RMSEA = 0.031; CCR = composite construct reliability; AVE = average variance
extracted.

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month (63.7%), at home (63.8%), spending an average of RMB ranging from 0.781 to 0.881, were greater than those correlation
999–1499 per month (66.3%) typically between 11 a.m.−2 pm. coefficients among the constructs. Thus, discriminant validity of the
(47.4%) when doing so. Similarly, multi-person households also used constructs was supported (Fornell and Larcker, 1981).
the Mei Tuan Wai Mai Food App more frequently than all others
(38.5%). Food app users from multi-person households, on average, 4.2. Results of testing hypotheses 1 through 8
used those various apps 5–6 times per month (51.8%), at home
(52.8%), spending an average of RMB 999–1499 per month (63.7%), Structural equation modeling (SEM) was developed to simulta-
typically between 11 a.m.−2 pm. (53.4%) when doing so. neously test our hypothesized relationships between the eight con-
Interesting to note was that both single and multi-family household structs. The overall fit of the SEM met the appropriate levels (χ2/
food delivery app users are skewed toward younger males having a df = 1.368, p < 0.01, CFI = 0.965, GFI = 0.923, TLI = 0.959,
college education. Both groups prefer the Mei Tuan Wai Mai app over RMSEA = 0.034) (Fornell and Larcker, 1981).
all others, and both groups order between 5–6 times per month at Hypotheses 1 through 8 were first tested. Results are illustrated in
home, spending between RMB 999-1499 and ordering between 11am- Fig. 2. Among the five quality attributes of food delivery apps, four
2pm. According to a survey conducted in November 2016, 20% of U.S. quality attributes (convenience, design, trustworthiness, and various
respondents reported that they use a food delivery app once per week, food choices) were found to have a significant and positive effect upon
and 48% of them said that they enjoy using food delivery app services user-perceived value. In particular, the quality attribute of trust-
“very much” (Statista, 2016). The same report documented that young worthiness had the most positive influence upon user-perceived value
males were found to use food delivery app services more frequently (β = 0.233, p = 0.002), followed by design (β = 0.200, p = 0.006),
than females. various food choices (β = 0.169, p = 0.012), and convenience
(β = 0.152, p = 0.021). However, the price attribute had no significant
3.3. Measures influence on user-perceived value (β = 0.096, p = 0.143). Hence, hy-
potheses 1, 2, 3, and 5 were supported, but hypothesis 4 was not sup-
The survey instrument was developed to test the study’s hypothe- ported.
sized relationships through a comprehensive literature review process. In addition, hypotheses 6, 7, and 8, expecting the positive re-
The first five sections of the survey were designed to examine user lationships between user-perceived value, attitudes toward using food
perceptions of the food delivery app quality composed of five attributes delivery applications, and intention to continuously use were tested.
representing: convenience, design, trustworthiness, price, and various Results found that user-perceived value significantly led to positive
food choices. A total of 15 items were used to assess these dimensions attitudes (β = 0.676, p < 0.001) and intention to continuously use
based upon Yang et al. (2004) and Al Dmour et al. (2014). Respondents (β = 0.252, p = 0.034). Further attitudes towards using food delivery
were asked to provide a specific name of the food delivery app that they applications had a positive relationship with intention to continuously
have used the most, and then to assess those five quality attributes use food delivery applications (β = 0.278, p = 0.026). Thus, hy-
associated with it. The next section of the survey instrument was de- potheses 6, 7 and 8 were supported.
veloped to evaluate ‘perceived value’ for using the food delivery app by
employing three items based upon Sweeney and Soutar (2001). The last 4.3. Results of testing hypothesis 9
two survey sections assessed user attitudes towards the food delivery
app and intention to continuously use them by employing six items To test hypothesis 9, expecting that the relationships between food
(three per each construct) based upon Lu et al. (2005). All of the study’s delivery app quality and user-perceived value would be significantly
constructs were measured on a seven-point Likert scale (1= “strongly different between single-person and multi-person households, the
disagree” and 7 = “strongly agree”) (see Table 2). multiple group analysis approach was utilized. A total of 311 responses
The final survey instrument included items to examine the re- were divided into two groups: single-person (n = 116) and multi-
spondents’ socio-demographics (gender, age, marital status, education person households (n = 169). Path coefficients of the effects of food
level, family size, occupation and monthly income) and their behavioral delivery app quality upon user-perceived value between those two
patterns in terms of frequency of using the food delivery app, monthly groups were tested using the χ2 test in the SEM. Results revealed that
spending on the food delivery app, and where and when they used the the relationships between convenience, design, price and various food
food delivery apps). choices, and user-perceived value were found to be significantly dif-
ferent between single-person and multi-person households (see
4. Results Table 4). Specifically, the effect of convenience upon perceived value in
the multi-person household group (β = 0.307, p < 0.001) was more
4.1. Validity and reliability of measurements positively stronger than in the single-person household group
(β = 0.068, p > 0.05). This result was significantly supported by the χ2
A confirmatory factor analysis (CFA) was conducted to validate difference (Δχ2 (1) = 5.182, p < 0.05). This same situation was viewed
internal and external consistency of the study’s constructs. Internal in the link of design–perceived value. The effect of the design quality
consistency among the measures within each construct was supported attribute upon user-perceived value was significantly different (Δχ2
by Cronbach’s α coefficients ranging from 0.712 to 0.856 (Nunnally, (1) = 4.572, p < 0.05) between single-person (β = 0.147, p > 0.05)
1978). As seen in Table 2, the CFA results found a satisfactory goodness and multi-person households (β = 0.554, p < 0.001). Our findings
of fit indices (χ2/df = 1.368, CFI = 0.965, IFI = 0.966, TLI = 0.959, implied that if respondents from the multi-person household group
RMSEA = 0.034) (Anderson and Gerbing, 1988). All factor loadings positively evaluate the convenience and design quality attributes of
(greater than 0.70), average variance extracted (AVE) (greater than food delivery apps, they are more likely to perceive more value than
0.50), and composite construct reliability (CCR) (greater than 0.70) those from the single-person household group.
were considered acceptable (Fornell and Larcker, 1981). Thus, con- In contrast, the effect of the quality attribute of price upon per-
vergent validity and reliability of the study constructs were supported. ceived value in the single-person household group (β = 0.365,
The means, standard deviations and correlations are presented in p < 0.01) was more positively stronger than in the multi-person
Table 3. The five attributes of food delivery app quality were positively household group (β = 0.089, p > 0.05). This difference was also sig-
corrected with user-perceived value, attitudes and intention to con- nificantly supported (Δχ2 (1) = 3.903, p < 0.05). Similarly, the re-
tinuously use. User-perceived value was also positively correlated with lationship between various food choices and perceived value in the
attitudes and intention to continuously use. All square root of AVEs single-person household group (β = 0.263, p < 0.001) was more

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M. Cho et al. International Journal of Hospitality Management 77 (2019) 108–116

Table 3
Correlations and discriminant validity.
Mean S.D. (1) (2) (3) (4) (5) (6) (7) (8)

a
(1) Convenience 5.02 1.06 .850
(2) Design 5.55 0.92 .088 .881
(3) Trustworthiness 5.80 0.61 .109 .337 .842
(4) Price 4.72 0.97 .068 .069 .030 .853
(5) Various food choices 5.24 1.34 .026 .116 .007 .058 .850
(6) Perceived value 4.89 0.82 .123 .268 .271 .163 .175 .831
(7) Attitudes 5.67 0.74 .098 .195 .106 .060 .077 .500 .781
(8) Intention 5.37 0.59 .014 .308 .139 .017 .023 .319 .330 .796

a
Note: Diagonals: Square root of AVE from the observed variables by the latent variables.

Fig. 2. Results of testing Hypotheses.1–8.

positively stronger than in the multi-person household group 5. Conclusions and implications
(β = 0.066, p > 0.05). This result was also significantly supported (Δχ2
(1) = 3.825, p < 0.05). These findings indicated that when respondents Our findings provide empirical support as to the important roles
from single-person households positively evaluate the price and various that mobile applications must provide to today’s Chinese consumer
food choice quality attributes of food delivery apps, they would have when applied within the context of the food delivery business. Food
higher perceived value than those from multi-person households. delivery has become a trending business in China due to the rapidly
However, the effect of trustworthiness quality upon user-perceived growing O2O business model, combined with the proliferation of mo-
value was not significantly different (Δχ2 (1) = 0.001, p > 0.05) be- bile Internet application usage. Thus, our study’s findings provide very
tween single-person (β = 0.317, p < 0.01) and multi-person house- timely and useful information for restaurants and communications
holds (β = 0.246, p < 0.01). This result implied that because trust- providers on how to develop effective operations strategies for the food
worthiness quality of food delivery apps would be very important to delivery business in China. We address the important marketing issue
both groups, its effect upon user-perceived value had no significant pertaining to China’s increasing number of single-person households,
difference between those two groups. and what this may imply for the food app business and for restaurants
in the Chinese society, and perhaps in other Asian countries. We then

Table 4
Results of testing a multi-group analysis (single-person vs. multi-person households) for Hypothesis 9.
Family Size χ2 difference Supported

Single-person Multi-person
(n = 116) (n = 195)

Coefficient t-value Coefficient t-value

Convenience → Perceived value 0.068 0.651 0.307 3.671*** Δχ2 (1) = 5.182, p < 0.05 Yes
Design → Perceived value 0.147 1.774 0.554 4.063*** Δχ2 (1) = 4.572, p < 0.05 Yes
Trustworthiness → Perceived value 0.317 2.581** 0.246 2.702** Δχ2 (1) = 0.001, p > 0.05 No
Price → Perceived value 0.365 3.786** 0.089 0.746 Δχ2 (1) = 3.903, p < 0.05 Yes
Various food choices → Perceived value 0.263 3.357*** 0.066 0.586 Δχ2 (1) = 3.825 p < 0.05 Yes
Baseline model fit: χ2 (132) = 581.71 (p < 0.01); CFI = 0.959; GFI = 0.923, IFI = 0.961, RMSEA = 0.028

Note: *p < .05, **


p < .01, ***
p < .001.

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address the moderating roles that household size plays upon the re- number of restaurant types is becoming a very important quality at-
lationships between key food delivery app quality attributes and user- tribute issue affecting the sustainability of today’s restaurant environ-
perceived value. Based upon our findings, several important implica- ment. This also represents a formidable challenge for food delivery app
tions are provided. operators and food vendors. This is because food delivery apps will
Study results documented that the most significant and positive have to manage business arrangements with many food vendors and
quality attribute for improving the consumer’s perceived value and address issues regarding the vast array of unique food products and
their ultimate successful implementation of the online food delivery their quality aspects. As well, a broad price spectrum will directly affect
business was trustworthiness. This is in line with the extant literature’s the mobile app businesses as specific markets will be less willing to
position that trust plays an essential role in generating expected and indulge in higher-priced dinners. Similarly, food vendors engaged in
satisfied online transactions (Li and Yeh, 2010). Thus, food delivery app mobile app markets must face more O2O competition and invest more
operators and their food vendors should focus on what determines user- revenue into advertising and marketing in order to be placed at the top
trustworthiness in using food delivery apps. In doing so, we cannot of the food delivery app list of proprietary vendors, similar to how
ignore the fact that building trust with respect to the ever-increasing Search Engine Optimization (SEO) strategies operate in online adver-
presence of food delivery app businesses involves a more complicated tising programs for other commodities. It is important to understand
process than does building trust in bricks-and-mortar restaurants. Trust that the restaurant industry operates on extremely small profit margins.
in food delivery app businesses can be categorized into two groups: Annual sales increases ranging from 2 to 6% for many restaurant
trust in mobile technology and trust in food vendors (Siau and Shen, properties are considered to be enviable in their highly competitive
2003). This implies that the competence of food delivery apps and the marketplace (Lien, 2017).
competence of their food vendors directly affect one another, and fur- Based upon demographics and usage research findings related to
ther highlights the importance of cooperation between food delivery food delivery apps, many very interesting and managerial implications
app operators and their vendors. This situation can be best managed by of high utility can be from our research. Focusing upon differences
effectively creating trustworthiness in all partners involved in the food between single and multi-person household users of food delivery app
delivery business process, which includes both food delivery apps and users, it was found that single-person households placed the importance
vendors. For example, truthful and regularly updated information about upon the quality attributes of food delivery apps for ‘various food
food vendor menu items, prices, and minimum order fees can greatly choices,’ ‘price’ and ‘trustworthiness.’ Comparatively, multi-person
alleviate any confusion to the end user. Thus, we expect that the ac- households placed most importance upon ‘design’, ‘convenience’, and
curate usage of information technology on food delivery apps assists the ‘trustworthiness’ as related to food delivery app quality attributes. We
mobile food shopping environment in operating as a more efficient can immediately see that ‘trust’ is important to both households. Thus,
transactional procedure, eliminating the human element for the most security in all food app ordering systems should always be paramount.
part, creating a seamless experience, which further facilitates user- Trustworthiness also relates to accuracy and reliability in terms of what
trustworthiness. is reported by restaurant partners and viewed by consumers.
Design was also found to significantly and positively influence the Addressing the single-person household is somewhat challenging for
consumer’s perceived value of food delivery apps, followed by two food delivery app marketing purposes, but some suggestions can be
other attributes representing various food choices and convenience. made pertaining to ‘various food choices,’ which turned out to be a very
Grøtnes (2009) noted that the most common reason for using mobile important quality attribute for this segment along with ‘price.’
apps is convenience and user-friendly design to browse and purchase Considering that limited household income may also limit a variety of
products. This same notion was viewed in the food delivery app con- food choices, managerial implications abound as to opportunities that
text. Functionality and efficiency of mobile apps have been widely may appeal to the single-household food app delivery user. Perhaps
identified as fundamental design elements in the previous literature smaller portion sizes of greater varieties of products could be offered to
(Lee et al., 2011). Thus, it can be agreed upon that mobile apps should this consumer segment eager to branch out for unique food delivery
be designed for ease of ordering, and should be available at any time experiences able to be ordered for reasonable value.
and at any place. However, it should not be overlooked that consumers The quality attribute ‘price’ is one of great interest for several rea-
access food delivery apps to order “food” differently than they do sons. From the perspective of the single-person household, this segment
compared to when purchasing commodity products. Commodity pro- represents the largest segment of the unmarried market (75.9%), but in
ducts ordered using mobile apps can be easily returned, whereas food terms of income, most singles earn less than RMB 3000 per month.
orders cannot. Before the mobile app era, food-ordering decisions in- Thus, price must be very reasonable for the single-person household
volved browsing through pamphlets, flyers or discount coupons at- group, more so than for the multi-person household group.
tached to refrigerators for phone numbers of restaurants. Concerns When addressing ‘design’ for the multi-person household group,
often arose pertaining to food taste, price, and value for the money to simplicity of use is the formula for success with this user group. This
be spent. These examples provide some consideration as to how food was the top quality attribute for the food service deliver app upon
delivery apps should be appropriately designed. Similar to what Yelp perceived value. Given this segment’s reported lower level of educa-
Eat24 as created in the US based upon Yelp and the ability of consumers tional attainment in comparison to the single-household user group,
to provide feedback about their dining experiences, food delivery apps app programs with simple click-through options for ordering and card
are now beginning to offer a more user-friendly shopping environment payment processing are essential. As well, ‘convenience’ was also a very
by allowing consumers to post/easily browse reviews about restaurants integral quality attribute for food delivery apps. Ordering food using
and then order and pay by clicking a few times. This is becoming a their app any time or place is very important to the multi-person
major design and convenience quality attribute of food delivery apps household user group, as more of these individuals tend to order food
that offers a much more positive experience to users. while on the go, meaning in venues other than at their homes or at their
Another finding noteworthy of mentioning involves the effect of places of employment.
various food choices now available on food delivery apps and how that Slight nuances in the behavioral data allow for restaurant managers
contributes to improving user-perceived value. Prior to the arrival of to take advantages of opportunities for developing strategies to boost
food delivery apps, food delivery service was extremely limited to only sales during slow times through direct promotions to both segments. As
a few menu items such as pizza, Chinese, and fried chicken. Given that an example, targeting single-person households with late night features
the numbers of food delivery app users have been rapidly growing and that ordinarily would not be promoted could possibly generate new
that ordering food using mobile apps is now occurring more frequently, business to that market using databases of credit card information from
allowing users to choose a variety of food items from an expanding previous consumers. As well, creating special rewards for heavy users of

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