Food delivery service (FDS)

is the practice of ordering or

calling in food from a
restaurant or fast-food chain,
the restaurant will prepare the
food, and will then send a
driver or rider to the specified
address to bring the food to
customers. A modern trend in
food delivery is the use of
food ordering apps. Food
ordering apps such as
GrabFood,
 Toktok, Delivery Guy PH,
and FoodPanda are examples
of the newfound popularity of
food delivery services
(FDS). Even different fast-
food chains have their food
ordering
apps such as McDonald's,
Jollibee, Shakey‟s,
Greenwich, and some well-
known fast-
food chains or restaurants.
COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

THE EFFECTIVENESS OF FOOD DELIVERY SERVICES AMIDST COVID-19

PANDEMIC IN SANTIAGO CITY

ii
 A Business Research Presented to

The Faculty of College of Accountancy and Business Administration

NORTHEASTERN COLLEGE

Santiago City

In Partial Fulfillment of the Requirements

for the Subject Business Research

Group Leader: Balano, Lorelyn

Members:

Musa, Mohammad Najie

Cayme, Vannessa Mae

Navarro, Judy Ann

Tinio, Cristiana Romana

ii
 APPROVAL SHEET

In partial fulfillment of the requirements for the subject, BUSINESS RESEARCH.

Entitled, “THE EFFECTIVENESS OF FOOD DELIVERY SERVICES AMIDST COVID-

19 PANDEMIC IN SANTIAGO CITY” prepared and submitted by our group.

Group Leader: Balano, Lorelyn

Members: Cayme, Vannessa Mae

Navarro, Judy Ann

Tinio, Cristiana Romana

Musa, Mohammad Najie

APPROVED by the Committee with a grade of PASSED.

CLEMENTE P. CLARO JR., CPA., PhD.

Chairman

Mrs. RACHEL J. ACOBA Mrs. DENIA H. MARADDAG, LPT, MBA, MAEd

Member Member

i
 ACKNOWLEDGEMENT

The completion of this conducting research could not have been possible without the help

of the respective participants and assistance of our respective and potential customers that may

not be all enumerated or mentions. Their participations and contribution to our research are

sincerely appreciated and gratefully acknowledged. The group would like to express their

appreciations and being grateful to have them.

Dean Clemente P. Claro JR., PhD., CPA, Mrs. Denia H. Maraddag, Mrs. Rachel J.

Acoba, MBA. For their endless support kind and understanding during our completion and

accomplishment of our research.

To all relatives, friends and others who is one way or another shared their support, either

morality, financially, and physically. Thank you.

Above all, to the great almighty GOD, the author of knowledge and wisdom, for his

countless love

We thank you for all your support to us, as a group.

The Researchers

ii
 DEDICATION

We would like to dedicate this research study to our families who supported us to

conduct this research study, and for the teachers who helps us to guide to make our group a final

output and for the future and potential researchers who can use this study as their guidelines and

references. And also, to those delivery riders like JexMovers, Toktok, GrabFood, and FoodPanda

and to all respective and potential customers itself to solve their complaints and understanding

for us and for them to make a good relationship between delivery riders and to our respective

customers.

The Researchers

iii
 Table of Contents

TITLE PAGE

APPROVAL SHEET………………………………………………………………………i

ACKNOWLEDGEMENT…………………………………………………………………ii

DEDICATION……………………………………………………………………………...iii

TABLE OF CONTENTS…………………………………………………………………..iv

ABSTRACT………………………………………………………………………………..v

Chapters Page

I. THE PROBLEM AND ITS BACKGROUND

1. Introduction…………………………………………………………………1

2. Framework of the Study…………………………………………………….3

3. Statement of the Problem…………………………………………………...6

4. Assumptions of the Study…………………………………………………..6

5. Hypothesis…………………………………………………………………..7

6. Scope, Limitation, and Delimitation…………………….…………………..7

7. Significance of the Study……………………………………………………7

8. Definition of Terms………………………………………………………….8

v
II. METHOD AND PROCEDURE

1. Research Method………………………………………………….………12

2. Locale of the Study…………………………………………….………….12

3. Respondents of the Study…………………………………….…………...13

4. Data Gathering Instruments…………………….…………………………13

5. Data Gathering Procedure……………………………………….………...13

6. Statistical Treatment of Data………………………………….…………...13

vi
 ABSTRACT

Food delivery service is the act of ordering food from a restaurant or fast-food chain over

the phone or online, having it made, and then having a driver or rider bring it to consumers at the

specified address. Using meal ordering apps is a popular development in the restaurant delivery

industry right now. As a result, many nations had a significant window of opportunity for future

development. In the food and beverage industry, notably in the Philippines, a new trend is

starting to take shape. By letting its customers to enjoy a fresh, bountiful feast in the comfort of

their own homes, FDS has substantially bettered their lives. These numbers show that consumers

are becoming more accepting of FDAs, which have been steadily gaining popularity during the

coronavirus lockdown because of the rise of novel features like contactless delivery, which have

the potential to reassure customers of the low risk of contracting the virus while using food

delivery services.

The Researchers

vii
 CHAPTER I

THE PROBLEM AND ITS SETTING

1.1 INTRODUCTION OF THE STUDY

Food delivery service (FDS) is the practice of placing an online or phone order for food

from a restaurant or fast-meal chain, having the food prepared, and having a driver or rider

deliver the food to customers at the designated address. The usage of meal ordering applications

is a current trend in food delivery. Examples of the rise in popularity of meal delivery services

include GrabFood, Toktok, Delivery Guy PH, and FoodPanda, which all offer food ordering

apps (FDS). Even different fast-food chains, including McDonald's, Jollibee, Shakey's,

Greenwich, and several well-known fast-food chains or restaurants, have their own meal

ordering applications.

Despite the fact that the food sector is valued trillions of pesos, only a small percentage

of that value is accounted for by delivery. This created a sizable window of opportunity for the

future development of numerous nations. A new trend in the food and beverage business is

beginning to emerge, particularly in the Philippines. FDS has significantly improved the lives of

its clients by enabling them to savor a brand-new, plentiful feast in the comfort of their own

homes. One type of O2O platform that makes use of consumers' extensive use of cellphones,

mobile internet, and navigational services is the food delivery apps (FDAs).

Based on the study of Kaur et al., 2020b; Hwang and Kim, 2019; Talwar et al., 2021b,

these represent the platform-to-consumer market segment, which is estimated to generate a

1
 projected market volume of USD 79,608 million in 2021, with the highest revenues being

drawn from China (approximately USD 56,936 million), the United States (approximately USD

28,486 million), and India (approximately USD 11,666 million) (Statista, 2020a).

These figures indicate consumers' growing acceptance of FDAs, which, during the

lockdown instituted due to the coronavirus (Covid-19) pandemic, have been steadily gaining

popularity due to the rise of novel features, such as contactless delivery‟, which have the

potential to reassure consumers of the limited risk of exposure to the virus while availing

themselves of food delivery (Businesswire, 2020; Statista, 2020b).

However, because this field of study is still in its early stages, there are significant gaps in

present knowledge and comprehension. With this, the present study entitled "The Effectiveness

of Food Delivery Services amidst COVID-19 pandemic in Santiago City” aims to fill the

significant gap of knowledge from the previous study. This study will highlight the advantages

and disadvantages of food delivery services to the consumer and which among these factors

influences the customer the most.

2
1.2 FRAMEWORK OF THE STUDY

CONCEPTUAL FRAMEWORK

For the current situation, the online food delivery is the innovative technology that meets the

needs of consumers during this pandemic times. Many studies have investigated the intention towards

online food delivery services (Alalwan, 2020; Cho, Bonn, & Li, 2019; S. W. Lee, Sung, & Jeon, 2019;

Ray, Dhir, Bala, & Kaur, 2019; Suhartanto, Helmi Ali, Tan, Sjahroeddin, & Kusdibyo, 2019; Yeo, Goh,

& Rezaei, 2017) using the theories such as Technology Acceptance Model (TAM) given by, Unified

Theory of Acceptance and Use of Technology (UTAUT) and more. Some of the researchers combined the

theories and explored the behavior intention in online food delivery services (Kim & Hwang, 2020). This

paper utilized the Theory of Planned Behavior (TPB), with the extended factors of Online Food Delivery

(OFD) services such as Convenience, Various food choices, and variables related to present pandemic

situation like Trust and Social Distancing. TPB was developed based on the Theory of Reasoned Action

(TRA), which is a valuable

3
 outline for deceitful behavior change interpolations and to elucidate the tools by which

involvements are predictable to utilize their effects on behavior (Steinmetz, Knappstein, & Schmidt,

2016). The TRA put forward that behavioral intentions are trained by subjective, attitudes or social norms

that force the consumers to embrace particular behaviors (Bauer, Reichardt, Barnes, & Neumann, 2005).

(Ajzen, 1991) added to the Theory of Reasoned Action model a third expounding element of user

intentions and behavior, the variable of perceived control construct, thus evolving the TPB model.

Accordingly, the Theory of planned behavior model founds that distinct attitudes, subjective norms, and

perceived control explain the behavioral intention of the individual and, thus, it implies on an actual

behavior of consumers.

Convenience

Trust

Attitude towards Intention to

Perceived Behavioral effectiveness of continuously use OFD
Control OFD services – services – post-COVID
post-COVID era era

Various Food Choices

Social Distancing

Figure 1. Conceptual Model of the Study

4
THEORETICAL FRAMEWORK

According to the first lacuna, this study developed a conceptual model that

revisited the intention theory – theory of planned behavior (TPB) (see Figure 3). TPB

was first proposed by Ajzen (1991), who claims that when behavior is rational, the best

predictor of that behavior is intention. This theory postulates that intentions are a

fundamental antecedent of actual behavior. TPB posits the link between subjective norm

(SN), ATT and perceived behavioral control (PBC) influencing intention and subsequent

behavior. Likewise, Fishbein and Ajzen (2010) also suggest that once intentions have

been formed, individuals will be highly inclined to act on such intentions once the

opportunity arises. TPB has been widely applied in numerous research such as health-

related studies (Cooke et al., 2016), marketing (Rehman et al., 2019) and e-commerce

(Dakduk et al., 2017). Figure 2. Theory of Planned Behavior

5
6
1.3 STATEMENT OF THE PROBLEM

This study aims to determine the effectiveness of food delivery services to the

costumers amidst COVID-19 Pandemic in Santiago City.

Specifically, it seeks answers to the following questions:

1. What is the profile of the respondents with regards to:

1.1 Age

1.2 Gender

1.3 Occupation

2. Are the costumers in Santiago City satisfied with the Food Delivery Service?

3. Are the costumers in Santiago City affected by the limitations of choosing how to pay?

4. How often does the costumers in Santiago City avail food delivery service every month?

1.4 ASSUMPTION OF THE STUDY

This study is guided by the following assumptions:

1. There is a positive effect of awareness of customers towards online food applications.

2. There is a positive level of customers satisfaction towards food delivery services.

6
1.5 HYPOTHESIS

h1. It is the reliability and responsiveness of a consumer's satisfaction by using

this kind of platform an app indeed. To give some service to a customer to deliver his or

her order.

h2. An Assurance to our respective customers of their satisfaction by giving food

delivery service to their orders

1.6 SCOPE, LIMITATION AND DELIMITATON

The study is limited for only 150 respondents in the age of (15) to (60) years old.

By using delivery apps to orders their meals and things that is necessary to a respective

customers and consumers. It only focuses here at Santiago City, Isabela and also within

its premises of Santiago City, Isabela.

More importantly, is to focused on how to determine the impact of food delivery

services towards to our respective customers within Santiago City.

1.7 SIGNIFICANCE OF THE STUDY

This section of the study provides information about the importance of having this

study as a research work of students.

BUSINESS FIRM. For the business firm related to FDS, the study will assist

them in broadening their entrepreneurial competencies in running the firm and delivering

strategies in planning, investing, and critically evaluating their food delivery services.

7
 PRESENT CUSTOMERS. For the present costumers, the study will enlighten people on the

benefits of being mindful when selecting their delivery tactics.

POTENTIAL CUSTOMERS. For the potential costumers, the study will educate potential

customers about the possible impacts of food delivery services on their daily lives, and at the

same time, will contribute to their awareness.

FUTURE RESEARCHERS. For future researchers, the results of this study will provide

some insights and information on how they can improve their study, and it may also serve as

a basis for future research on similar topics.

1.8 DEFINITION OF TERMS

Applications

- n. a program or piece of software designed and written to fulfill a particular purpose

of the user.

Business

- n. a person's regular occupation, profession, or trade.

- the practice of making one's living by engaging in commerce.

8
Cellphone

- n. a phone with access to a cellular radio system so it can be used over a wide area,

without a physical connection to a network; a mobile phone.

Contactless

- n. not requiring touching or interaction between people.

COVID-19 Virus

- n. is an infectious disease caused by the SARS-CoV-2 virus.

- The virus can spread from an infected person’s mouth or nose in small liquid particles

when they cough, sneeze, speak, sing or breathe.

Customers

- plural n. a person or organization that buys goods or services from a store or business.

Delivery Rider

- n. is typically employed by corporations, food service companies, delivery service

companies or warehouses.

- their job is to drive safely, deliver goods and collect payment if necessary.

Fast-food Chain

- n. a chain of restaurants serving fast food.

9
Food Delivery Service

- n. a courier service in which a restaurant, store, or independent food-delivery company

delivers food to a customer.

Internet

- n. an electronic communications network that connects computer networks and

organizational computer facilities around the world —used with the except when being

used attributively.

Online

- adj. connected to, served by, or available through a system and especially a computer or

telecommunications system (such as the Internet).

O2O Platform

- n. a business strategy designed to bring potential customers from online channels to

physical stores to make a purchase. It brings people from Instagram, email, and digital

ads to a brick-and-mortar store.

Pandemic

- adj. (of a disease) prevalent over a whole country or the world.

- n. an outbreak of a pandemic disease

Restaurant

- n. a place where people pay to sit and eat meals that are cooked and served on the

premises.

10
Trend

- n. a general direction in which something is developing or changing.

- is the overall direction of a market or an asset's price.

11
 CHAPTER II

METHOD AND PROCEDURE

This chapter presents the procedures and methods that will be used in the gathering and

analysis of data needed in the study.

2.1 RESEARCH METHOD

Qualitative and quantitative were both employed in this study. Qualitative research

investigates the effectiveness, attitudes, behavior, people’s concern and experiences through

methods such as interview and survey. Quantitative research is to determine the possible sample

respondents

2.2 LOCALE OF STUDY

This research study was conducted at Santiago City Isabela. Santiago City is politically

subdivided into 37 barangays. All fast-food chains have its own delivery rider services, but then

since the pandemic occur, they can no longer accommodate or entertain the increasing number of

orders that needs to be placed door-to-door. That’s when the Third-Party Delivery Service

Provider entered the city such us; Food Panda, GrabFood, Tok-Tok, Jexmovers, etc. The

researcher has chosen this area because they wanted to know the “Effectiveness of Food

Delivery Services amidst COVID-19 pandemic in Santiago City”.

12
 Figure 3. Locational Map of Santiago City

Santiago was originally a part of the province Cagayan

(comprising the whole Cagayan Valley region), which was

reorganized as a political subdivision in 1583 with Nueva

Segovia as its capital. It was named after its patron saint St.

James the Apostle.

Figure 4. Regional Map of Region 2

12
2.3 RESPONDENTS OF THE STUDY

The respondents are randomly selected of 150 respondents only residing at Santiago City.

Additionally, every member of the population was given an equal chance to be selected as one of

the respondents because the researchers utilized stratified random sampling.

2.4 DATA GATHERING INSTRUMENTS

The instrument used to collect the information required for the respondent's profile was a

researcher-made ordinal scale list questionnaire. The researcher's readings, previous research,

professional literature, and published and unpublished research papers relevant to the subject

were used to develop the first draft of the questionnaire. The specifications for creating a good

data gathering instrument were taken into account when creating the instrument. Given that it is

much more comfortable to respond and there are more options available, but still relevant and

appropriate to our type of research. Open-ended options were given to encourage the respondents

to be more cooperative, the tool is authorized to acquire legitimate responses from the

respondents.

2.5 DATA GATHERING PROCEDURE

The researchers will follow a step-by-step procedure in order to finish the study. The

researchers will made questionnaire and conduct a survey on selected respondents in every

barangay in Santiago City. The researcher will forward an approval letter to the committee for

approbation to conduct the study. Then, the researchers have done intensive readings of related

literatures and studies which helped the researchers conceptualized the study particularly the

crafting of the questionnaire. After the construction, checking and validation of the main

research instrument, it will be administered to the respondents. The researchers will retrieve,

13
tabulate, compute, analyze and interpret the collected data to answer the questions posted in the

study

2.6 STATISTICAL TREATMENT OF DATA

As soon as the researchers gathered the data, they were compiled, sorted, organized and

tabulated. They were subject to statistical treatment in order to answer the questions proposed in

the study. Descriptive statistics such as frequency, count ordinal scale, and rank are considered.

1. Frequency distribution is an arrangement of the data which shows the frequency of

different values or groups of variables.

2. Ordinal Scale - applies data that are divided to different categories that can be ranked.

Scale Descriptive meaning

5 Excellent

4 Very Good

3 Good

2 Fair

1 Needs Improvement

12
 The arithmetic average of the data set and is derived by dividing the total number of data

points in the data set by the total number of data points. It is a data point that represents the

average of all the data points in the set. The most popular and commonly applied method in

statistics for determining the middle of a data collection is the mean. The data gathered in the

ordinal scale questionnaire is calculated by the use of Mean Formula below.

Mⅇan =
∑ of all Data Points
Total number of Data Points

14
 Chapter III

PRESENTATION ANALYSIS AND INTERPRETATION

This chapter presents, analyses, and interprets data gathering from the obtained results of

the respondents using appropriate statistical tools, methods, and interpretations. This chapter is

divided into three parts; (A) Presentation of the variables of the respondents. (B) Descriptive

summary of the survey questionnaire that is given to the respondents. (C) Presentation of the

significant difference in the customer’s level of satisfaction online in delivering their food by the

delivery rider, according to their age, sex, and occupations.

A. Profile of the respondents

Table 1 Frequency and Percent Distribution of the respondents with respect to

AGE

age frequency percentage rank

16 18    

17 25    

18 50    

19 20    

20 15    

21 11    

22 11    

total 150    

12