Consumer’s Perception on the Effectiveness of

Online Food Delivery Services

 CHAPTER 1

A. Introduction and Background of the study

In this modern time, technology has already evolved to the point wherein it

provides convenience to the consumers’ daily lives. It plays a big part in online food

delivery services that has contributed to make easier for the consumers who want to

grab a food without living their vicinity. Some consumers would still prefer to go

personally to grab some food, but it is easier for the consumer to just order food online

and have it delivered to them in less time.

Convenience, ease of mobility and time saving are some of the reasons why the

consumers prefer to utilize the technology advancement that online food delivery

services provide. In the industry of e-commerce and lots of services providers that are

being utilized now and being well known, online food delivery services are one of them.

With the use of technological devices, consumers are able to do their things right away

in less time such as transferring funds, online shopping, online classes, and ordering

food online. Technology is a great contributor for the consumers in doing so.

The popularity of this platform is seen to be a great opportunity for the business

owners who wants additional profit for their businesses. Also, to provide for the

demands of the consumer who prefers to satisfy their needs by utilizing online delivery
services. The main focus of this study is to scrutinize consumer’s viewpoint towards

online food delivery services.

B. THEORETICAL AND CONCEPTUAL FRAMEWORK

According to Hong Lan, et al, (2016) online food delivery market is immature yet

there are some obvious problems that can be seen from consumers “negative

comments”. In order to solve these problems, we can neither rely merely on the self-

discipline of online food delivery restaurants nor the supervision and management of

online food delivery platforms. Only by taking laws as the criterion, with the joined

efforts of the online food delivery platforms and restaurants, the government

departments concerned, consumers and all parties in the society, can these problems

be solved and a good online take away environment can be created.

Leong Wai Hong (2016) stated that people have managed their easily and

efficiently because of technological advancements. Management system helps in

reducing the time, and further helps in generating report for management purpose by

fully utilizing the system. According to Sethu and Bhavya Saini (2016), their aim was to

investigate the student’s perception, behavior and satisfaction of online food ordering

and delivery services. Their study reveals that online food purchasing services help the

students in managing their time better. It is also found that ease of availability of their

desired food at any time and at the same time easy access to internet are the prime

reasons for using the services.

 Dang and Tran (2018) said that internet has played a major role in increasing the

awareness of the online food delivery apps. Through internet, people can search about

foods and restaurants, compare their prices and their services and have easy access to

them. Internet has made all these things convenient for the customers.

According to Jyotishman Das (2018), the doorstep delivery is the most highly

ranked factor of influencing the consumers to use the food ordering applications. The

consumers are also often influenced by discounts and cash back that they enjoy. On

comparing the factors the most preferred service provider came out to be Zomato

followed by Swiggy. But some negative influencer like bad past experience and negative

experience of friends and family also in some cases prevents the consumers on using

the process.

According to Mr. Mathews Joao Chorneukar, consumers recommended using

food delivery applications to be secured and were satisfied much with the services. The

paper also reveals that even the consumers working in companies around the age limit

of 31 -35 years used to order more food and the mode of payment that was preferred

the most was cash on delivery.

Pathan et al. (2017) states that with online food ordering system, a restaurant

and mess menu online can be set up and the customers can easily place order. Also

with a food menu online, orders can be easily tracked, it uphold customers’ database

and develop the food delivery service. The restaurants and mess can even modify

online restaurant menu and upload images easily. Having a restaurant menu on

internet, potential customers can easily access it and place order at their convenience.
Thus, an automated food ordering system is presented with features of feedback and

wireless communication.

Samsudin et al. (2011) points out that alongside client feedback for an eatery, a

plan and execution of wireless food ordering framework was completed. It empowers

cafes proprietors to setup the framework in wireless environment and update menu

presentations effectively. Advanced mobile phone has been coordinated in the

adaptable wireless food ordering system requesting framework with continuous client

criticism execution to encourage ongoing correspondence between eatery proprietors

and clients.

C. Statement of the Problem

The researchers attempted to identify and explain the factors affecting the perception of

the consumers on online delivery food services by conducting a survey to business

students of St. Tomas School of Davao in order to analyze the motivations, challenges,

and opportunities for the online food delivery service companies.

This study sought to answer the following questions:

1. What is the demographic profile of respondents according to:

1.1 Age

1.2 Gender

1.3 Civil Status

2. How often do consumers use food delivery services?

2.1 Once a week

2.2 Once per fortnight

2.3 Once per month

2.4 Occasionally

2.5 Daily

3. What preferable day do consumers use food delivery services?

3.1 Morning (Breakfast)

3.2 Afternoon (Lunch)

3.3 Afternoon (Leisure)

3.4 Evening (Dinner)

3.5 Evening (Late Night)

4. What are the factors that influence consumers to patronize online food delivery

services?

4.1 Money Saving

4.2 Time Saving

4.3 Convenience

4.4 Fast Delivery

5. What are the different characteristics of online food delivery services?

 5.1 On-time delivery

5.2 Easy to order

5.3 Diverse Variety of food options

5.4 Best offers and discounts

5.5 Easy payment options

5.6 Reliable live tracking system

5.7 Reliable live tracking system

5.8 Goods customer support

6. Would consumers recommend online food delivery services?

D. HYPOTHESIS

The hypothesis for this study is:

Ho: The characteristics of an online food delivery services has no significant

effect on the perception of the consumers towards the effectiveness of online food

delivery services.

H1: The characteristics of an online food delivery services has significant effect

on the perception of the consumers towards the effectiveness of online food delivery

services.

E. Scope and Delimitations

This study focuses to the factors affecting the consumer’s perception on the

effectiveness of online food delivery services. The respondents of this study will solely
focus on St. Tomas School of Davao students using online food delivery services. The

population is mostly students, so the findings may not be applicable to represent the

whole consumer’s perspective because of social and cultural differences. Thus, This

Study will somehow introduce techniques that will be important for online food service

providers to manage and interact effectively to their customers.

F. Significance of the Study

This study is conducted to know the perception of consumers towards the

effectiveness of the online food delivery services and identify the possible variables

affecting their perception. Therefore, this research is deemed to be of significant to the

following people or organizations:

A) Customers of Online Food Delivery – Through the use of this study, online

customers can have a credible source about which online food delivery provider

is more effective in giving online food delivery services.

B) Online Service Providers – It is critical for online service provider to know how do

they attract customers to their website, engage them to turn into paying

customers and also retain them in returning to their website hence the findings of

this research paper is believe to be a significant tool to the online service

providers in the improvement of their current services.

 C) Restaurant owners – Due to the technological advancement online food delivery

system became possible which is proven to lead restaurant business to grow

faster. With the use of this study, restaurant owners can easily evaluate the

performance of the online food delivery providers that can help them in the

decision making regarding which online food delivery provider they can partner or

collaborate.

Definition of terms

 Consumers – a person who buys goods or services for their own use

 Convenience- something that adds to one's ease of living.

 E-commerce – commercial transactions conducted electronically on

the internet.

 Internet – a globally connected network system facilitating worldwide

communication and access to data resources through a vast

collection of private, public, business, academic and government

networks.

 Modern Technology- is the advancement of the old technology with

new additions and modifications.

 Perception – A result of perceiving. a belief or opinion, often held by

many people and based on how things seem.

 Technology – The practical application of knowledge especially in a

particular area.
 Variables – A factor in scientific experiment that may be subject to

change.

 Vicinity- the area around a place or where the speaker is.

 Chapter 2

RESEARCH METHODOLOGY

G. Statistical Method

For this study, inferential research method was utilized. Inferential statistics is a

procedure used by researchers to draw conclusions based on data that is beyond

simple description (Clayton, 2014). This method is used to make predictions from the

collected data from samples and make generalizations about a population. The study is

based on the collection of primary data. Quantitative research method was used in this

research so as to investigate and observe the collected data with the help of statistical,

mathematical and computational techniques.

H. Survey tool

For the purpose of this research, the researchers had decided to conduct the

survey by distributing the questionnaires through Google form. The link of Google form

was distributed among the 30 students of St. Tomas School of Davao. The researchers

conducted the distribution of this Google form through online called google docs. This

kind of survey tool that they used was able to help them to identify the factors that

affecting the perception of the consumers regarding online delivery food services.
 I. Number of Respondents

The researchers collected 30 responses for the survey. These responses

came from the St. Tomas School of Davao ‘s business students comprising 30

members, male and female, who uses food delivery apps. They were chosen as the

respondents of the study based on their generation, which other study shows that they

are more inclined and mutually dependent on technology.

J. Sampling Method

Our study focuses on the factors affecting the consumer’s perception on

the effectiveness of online food delivery services. We have decided to use

convenience sampling as sampling method because We, the researchers are all

students from St. Tomas School of Davao and most of our fellow schoolmates

are end user of online food delivery services, at this point, we chose them as

respondents in our study.

 K. Summary of Survey Questions

Part I.

1. Age

2. Gender

3. Civil Status

The demographic profile of our respondents.

Part II.

1. How often do you use food delivery services?

2. What preferable day do consumers use food delivery services?

3. Kindly rank the following factors according to most influential (1) to least

influential (4) for you in choosing an online food delivery service.

4. What is the approximate money you spend on ordering food?

Our main reason is to know when are the consumers mostly uses the online food

delivery services, what is their budget when it comes to ordering food, what are

the factors that they take in consideration in utilizing the said platform and their

frequently usage of it.

Part III.

1. Kindly rank the following food delivery apps according to your most preferred

to least preferred in choosing online food delivery service. (Most preferred –

1, Preferred – 2, Least Preferred – 3)

  Grab Food

 Food Panda

 Lala Food

With numerous online applications that are being well known today, we want to

know what is the most preferred app by the consumers.

2. Rank the following Online Applications: (5 = Excellent, 4 = Very Satisfactory, 3

= Satisfactory, 2 = Fair, and 1 = Unsatisfactory)

 Grab Food

 Food Panda

 Lala Food

Based on the following characteristics/features: Easy Order, Diverse Variety of

Food, Best Offers and Discounts, Easy payment Options, Reliable Live Tracking

System, On-time Delivery, Good Customer Support, Updated Reviews & Ratings

In this part, we want to know the perception of the consumers about the level of

effectiveness of these three online food providers based on the services and

online application features they provided to the consumers.

 3. Would you recommend ordering food online?

With what our respondents have experienced using online food delivery

app, we want to know if they will recommend it to others if they will be

given a chance.

L. Method of Analysis

Developed by Ronald Fisher, ANOVA stands for Analysis of Variance is a

statistical technique used to compare the average (mean) of a quantitative

(interval or ratio, continuous) measurement category of potential variations. The

ANOVA is based on the law of total variance, where the variance observed is

divided into components attributable to different variation sources in a given

variable. A single factor or one-way ANOVA is used to test the null hypothesis

that the means of several populations are all equal.

The researchers used ANOVA SINGLE FACRTOR TEST as data analysis

tool to determine whether to reject the null hypothesis or accept the alternative

hypothesis of this study. The researchers will use three groups of online food

delivery providers namely 1) Grab food 2) Food Panda and 3) Lala Food which

will be rated by the respondents based on the following characteristics: a) Easy

to order b) Diverse Variety of food options c) Best offers and discounts d) Easy
 payment options Reliable live tracking system e) Reliable live tracking system f)

On- time delivery g) Updated reviews and rating h) Goods customer support.

Using ANOVA single factor test the researchers is able to compare the

effectiveness of the three groups of online food delivery providers and determine

whether it differs from one another.

M. Justification of Methodological Choices

In this study, the methods chosen by the researchers to use is a quantitative

research method, in which it aims to investigate and observe the collected data with the

help of statistical, mathematical and computational techniques. Also, the researchers

used the Convenience Sampling Method in the study because the respondents they

have taken came from a large population of students in St. Tomas School of Davao

which most of them are end user of online food delivery services. Lastly, the

researchers used ANOVA SINGLE FACTOR TEST as data analysis tool to determine

whether to reject the null hypothesis or accept the alternative hypothesis of this study.

The researchers have chosen these methods to formulate the conclusion and

recommendation because the study needs to acquire the needed data and get accurate

findings by means of obtaining the necessary information in the most convenient way.
 CHAPTER 3

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

N. Presentation of the Data

Part I
Age

We can see in Our histogram that the ages 19,22,24 and 40 have one

respondent each, two respondents each in ages 18 and 22 and the largest number of

responses in the survey who are user of online food delivery services are ages 20 and

21 that has 11 respondents.

Gender
Our pie chart shows that there is more female who are user of online delivery services

that responded to our survey form with 25 responses compared to men with only 5

respondents.

Civil Status

The pie chart shows that 93.3% responses in our study are single and 6.7% are
married.

PART II
1. How often do you use food delivery services?
Our pie chart illustrates that 56.7% people who use food delivery services more often

occasionally, 20% user of food delivery services once a week, those who use once a

month is 13.3%, 6.7% who use food delivery services daily and once per fortnight is

3.3%.

2. What preferable day do consumers use food delivery services?

The preferable day do consumers use delivery services is in the afternoon leisure with

63.3%, followed by dinner time with 36.7%, 23.3% at late night hours, 20% at lunch time

and 6.7% in the morning.

3. Kindly rank the following factors according to most influential (1) to least
influential (4) for you in choosing an online food delivery service.

This bar graph shows most influential to least influential factors why do users of online

food services chose online food delivery services. The most influential factor is the

convenience of online food delivery services, followed by the factor that online food

delivery services has speed management, and some factors with close results are time

and money saving.

 4. What is the approximate money you spend on ordering food?

The pie graph shows that 36.7% of the respondent spend below 250 pesos in ordering

food, 33.3% spend bellow 500 pesos, 26.7% spend below 150 pesos and only 3.3%

spend above 500 pesos.

PART III

1. Kindly rank the following food delivery apps according to your most preferred
to least preferred in choosing online food delivery service.
(Most Preferred - 1, Preferred - 2, Least Preferred - 3)

The bar graph shows the most preferred to the least preferred online food delivery

service. The most preferred is Grab Food, the followed by Food Panda and the least

preferred is Lala Food.

Grab Food
(5 = Excellent, 4 = Very Satisfactory, 3 = Satisfactory, 2 = Fair, and 1 = Unsatisfactory)
The bar graph shows the satisfactory of the respondents to the services of Grab Food.

Easy Order is excellent, Diverse Varity of Food Options is very satisfactory, Best Offers

and Discounts is satisfactory, Easy Payment Options is very satisfactory, Reliable Live

Tracking System is very satisfactory, On-time delivery very satisfactory, Good Customer

Support is very satisfactory and Updated Reviews and Ratings is very satisfactory.

Food Panda
(5 = Excellent, 4 = Very Satisfactory, 3 = Satisfactory, 2 = Fair, and 1 = Unsatisfactory)

The bar graph shows the satisfactory of the respondents to the services of Food Panda.

Easy Order is excellent, Diverse Varity of Food Options is very satisfactory, Best Offers

and Discounts is very satisfactory, Easy Payment Options is very satisfactory, Reliable

Live Tracking System is very satisfactory, On-time delivery very satisfactory, Good

Customer Support is very satisfactory and Updated Reviews and Ratings is very

satisfactory.
 Lala Food

(5 = Excellent, 4 = Very Satisfactory, 3 = Satisfactory, 2 = Fair, and 1 = Unsatisfactory)

The bar graph shows the satisfactory of the respondents to the services of Lala Food.

Easy Order is satisfactory, Diverse Varity of Food Options is satisfactory, Best Offers

and Discounts is satisfactory, Easy Payment Options is satisfactory, Reliable Live

Tracking System is satisfactory, On-time delivery satisfactory, Good Customer Support

is satisfactory and Updated Reviews and Ratings is satisfactory.

Would you recommend ordering food online?

The pie graph shows that 96.7% of the respondent would recommend ordering food

online, and 3.3% of the respondent would not recommend ordering food online.

O. Interpretation of Anova Test Analysis

Computed Value Tabular Value Decision

P. Variables
Grab Food
Food Panda
Lala Food 46.08 1.79 REJECT HO

To analyze the data gathered, the researchers used Anova single factor test and

was able to get the results shown in the table above. With a computed value of 46.08

and a tabular value of 1.79, the researchers REJECT the null hypothesis and

determined that the perception of the consumers towards the effectiveness of online

food delivery services of the three online food providers is significantly affected by this

eight characteristics: A) Easy to order, B) Diverse Variety of food options, C) Best offers

and discounts, D) Easy payment options, E) Reliable live tracking system, F) On- time

delivery, G) Updated reviews and rating, H) Goods customer support. That when tested

using Anova single factor the result shows that the effectiveness of this three online

food providers as perceive by the customers differ from one another.

 Q. General Findings

The followings are the findings of this research:

 The consumers use online food delivery services occasionally with average

spending amount of less than 500 per order.

 The factors that inspires consumers to use online food delivery the most is

“Convenience” followed by “Time Saving”

 The most preferred online food delivery service company is Grab food

because of its exceptional features like diverse variety of food options, easy

to order, easy payment options and has a reliable live tracking system.

 Most of the respondents would like to recommend the use of online food

delivery services.

 The perception of the consumers towards the effectiveness of online food

delivery services of the three online food providers is significantly affected by

this eight characteristics: a)Easy to order, b) Diverse Variety of food options,

c) Best offers and discounts, d) Easy payment options, e) Reliable live

tracking system, f) On- time delivery, g) Updated reviews and rating, h) Goods

customer support and that the effectiveness of this three online food providers

as perceive by the customers differ from one another.

 CHAPTER 4

CONCLUSION AND RECOMMENDATIONS

R. Conclusion

The consumer’s perception on effectiveness of online food delivery

services varies from individual to individual. Based on the data’s that are

gathered during the survey, it shows that the three major online delivery food

application had significant differences in terms of effectiveness that affects its

users’ perception. The perception of the consumers varies according to various

similarities and differences based on their opinion and experience in using online

delivery food application. By having these type of applications it is more

convenient to some students to wait their food on their place rather than going to

restaurant to personally pick their food that they want, but there are students who

doesn’t prefer using these applications because they find it pricier and they just

choose to order directly to the restaurant.

In this study about The consumer’s perception on the effectiveness of

online food delivery services, it is found that majority of the students of St. Tomas

School of Davao are well aware of the online food ordering and most of them

have used online food ordering services. Ordering food online provides
 convenience to the students and time saving. The study also showed that

students orders food monthly spending less than 500 pesos per order.

S. Statement of the Problem

Our study was sought to answer the following questions:

I. The demographic profile of the respondents in accordance to their age,

gender, and civil status.

II. The frequency, budget, and factors consumers take in consideration before

using food delivery services.

III. The most preferred food apps used by the consumers.

IV. The level of effectiveness from these top three online food providers based on

the services and online application features.

V. Would consumers recommend online food delivery services.

In the demographic profile of the respondents, we found out that most of the

respondents who use online food delivery services are at the age of 20 and 21. The

women are the ones who use it the most compared to the men in terms of gender. Also,

most of the respondents are single.

In the frequency of consumers in using food delivery apps, we found out that food apps

are not used every day because it is assumed that most respondents prefer home-

cooked food over food ordered from a fast food as it is expensive. Hence, the frequency

of food app usage is occasional rather than frequent. Most consumers who use online
food delivery services occasionally spend less than 500 pesos per order. The factors

that inspire consumers to patronize online food delivery services the most are

“Convenience” followed by “Time Saving.”

The most preferred online food delivery service company is Grab Food because of its

exceptional features like a diverse variety of food options, easy to order, easy payment

options and has a reliable live tracking system, compared to others.

The level of effectiveness between the top three online food providers namely Grab

Food, Lala Food, and Food Panda, is significantly affected by these eight factors: easy

to order, diverse variety of food options, best offers and discounts, easy payment

options, reliable live tracking system, on-time delivery, updated reviews and rating, and

good customer support.

The gathered data from the survey shows that “Food Panda” surpasses all the other

food delivery apps in terms of providing on-time delivery, easy to order, easy payment

options, good customer support, best offers and discounts and has updated reviews

and rating system. On the other hand, “Grab Food” surpasses all the other food delivery

app in terms of providing a diverse variety of food options and a reliable live tracking

system.

In the consumers recommending online food delivery services, most of the respondents

recommend using online food delivery services as it is convenient and they do not have

to go to the physical store and wait for long queues.

T. Recommendations
The technology that the world has now affects the daily lives of the

consumers which leads to the conveniency that the consumers are experiencing

every time they use online applications. Despite of all the advantages of using

online food delivery services, the researchers have recommendations after

conducting the research.

 In order to avoid cancellations of order for online food delivery services, the

customers should provide enough capital for their riders. Because it would be

inconvenient if the reason of the cancellation of order is that they don’t have

enough money to render for the order that they have accepted.

 Since the results shows that most of the consumers are spending less than 500

per order, the researchers recommend that the online food delivery services

provide promotions and offer budget friendly meals to their consumers.

 Online food delivery services should provide updated information to their

offerings, promotions, updated menus, updated prices. In that way, it would be

more convenient to both consumers as they would have ample time to decide
 what to order and for the riders to have smooth transactions and to avoid

cancellations when they have already bought the order.

 Because of the results of the most preferred online food delivery service, the

researchers would recommend that the other companies should upgrade their

systems to compete with the leading online food delivery service company.

 Also, the companies who wants to open an online food delivery service

eventually should further seek to know more about the product features that their

target market would like to have. Moreover, it will be better if the eight

characteristics that the study has found to be significant for the effectiveness of

online food delivery services would be executed and improved overtime for the

enhancement of the online food delivery services.

U. Appendix

Survey Questionnaire
Anova Single Factor Test