11 Chapter 2

CHAPTER 2
REVIEW OF LITERATURE
Chapter 2: Review of Literature
CHAPTER 2: REVIEW OF LITERATURE
2.1 Online Food Ordering
According to the Deloitte1 research titled “Digital Media: Rise of On-demand

content” the internet consumers in India are on the rise with 75% of these users
belonging to the age group of less than 35 years of age. The statistics further suggest
mobile internet usage surpassing desktop internet usage with most of the internet users
in India using mobile devices to access the internet on their smartphones.
According to a web article titled “Digital Dining: Restaurant Technology

Increasingly Drives Customer Satisfaction” 2
more and more restaurants are
embracing the idea of incorporating digitization with most of them already building
synergies by bagging partnerships with these digital platforms. The research surveyed
1225 visitors to restaurants and around 60 restaurants. The findings showed that
approximately 40% of the visits were influenced by the digitization adopted with
mainly the trend being led by the millennial.
As per the web article titled, “Food delivery fight grips small-town India” 3order
getting delivered is the new trend of enjoying meals from the restaurant instead of
visiting the restaurants physically. It provides a better option for customers who wish
to devour the delicacies of restaurants located at long distances. It provides a good
option for customers availing tiffin services or for instances where a family member
had to pick up the take-aways for the family. Going with the word of analysts, among
all the online business models taking into consideration the grocery market, food
technology proves to be the most promising business model in India, attributing the
favourable market demographics and characteristics. The Online food delivery market
has witnessed a growth of $1.7 billion in 2018 from $750 million in 2017, which is
expected to grow even further.
1
Deloitte. Digital Media: Rise of On-demand Content. Retrieved from
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/technology-media-
telecommunications/in-tmt-rise-of-on-demand-content.pdf
2
Langdoc, S. (2018, September 18). Digital Dining: Restaurant Technology Increasingly Drives
Customer Satisfaction. Retrieved from
https://www.windstreamenterprise.com/insights/cx/restaurant-technology-drives-customer-satisfaction/
3
Bansal, V. (2019, July, 01). Food Delivery fight grips small-town India. Retrieved from
https://www.livemint.com/companies/start-ups/food-delivery-fight-grips-small-town-india-
1562002126818.html
58
Online food ordering is a win-win situation on weekends when restaurants are busy
sending a delivery staff of the restaurant to deliver a parcel leading to poor customer
service and leading to dissatisfaction. The delivery fleet of the online food delivery
platform can be leveraged to deliver on the busy days, hence not losing a customer
while it can use some help from the delivery staff for service at the restaurant.
Anita Vinaik, Richa Goel, Seema Sahai and Vikas Garg4 in the research paper titled
“The Study of Interest of Consumers in Mobile Food Ordering Apps” aims at
understanding customers’ awareness with respect to online food delivery apps in India
and the factors which influence its adoption. For the purpose of data collection, the
survey method is used and to record responses of customers. Factor analysis is used to
determine the factors which influence the adoption of these apps. The findings of the
study suggest that customers prefer mobile food ordering apps as it is convenient to use
and offers easy payment options.
Arji Mariam Jacob, N. V. Sreedharan and Sreena. K.5 in the research paper titled
“Consumer Perception of Online Food Delivery apps in Kochi” aims at understanding
the influence of online food delivery applications on the youth and the impact of such
contemporary online food delivery technology on traditional practices. The study
further aims at understanding the factors which influence the adoption of these apps
and also the factors which restrict the non-users from the adoption of these apps.
The findings of the study suggest that the most preferred mode of ordering food online
is through mobile applications. Customers prefer ordering online as it offers the ease
and convenience in ordering, ensures faster delivery, provides more variety options and
due to the attractive discounts and offers available on the platforms. Quality is a major
4
Vinaik, A., Goel, R., Sahai, S. & Garg, V. (2019). The Study of Interest of Consumers in Mobile Food
Ordering Apps. International Journal of Recent Technology and Engineering, 8(1), pp. 3424-
3429.
5
Jacob, A., Sreedharan, N. & K, S. (2019). Customer Perception of Online Food Delivery Apps in
Kochi. International Journal of Innovative Technology and Exploring Engineering, 8(7S2) pp.
302-305
59
concern that restricts online food delivery apps from using online food delivery apps
for ordering food.
Ramesh Kumar Bagla and Jasmine Khan6 in their paper “Customer Expectations
and Satisfaction with Online Food Ordering Platforms” undertake a detailed study
into factors that are ulterior to the growing popularity of Online Food Delivery apps
and their potency in determining the satisfaction levels in Delhi.
The research focuses on discerning the expectations of customers in the Online Food
Delivery service. The finding suggests a lack of time to cook, rewards and cashback
from ordering online and availability of variety as contributing factors. The research
further suggests scope for improvement in satisfaction level through an accurate
understanding of expectations of customers and offering lucrative benefits.
Pratiksinh Vaghela7 in the research paper titled “Factors affecting Online Shopping
Behaviour in Surat city” aims at understanding the various factors which influence
online buying behaviour with unprecedented growth in the use of the internet and
mobile technology providing opportunities for online business. The survey method is
used for data collection.
The study aims at understanding the factor which influences online shopping in Surat
city and to understand the demographics of the online shoppers and investigate the
impact of these demographics on online shopping buying behaviour.
The variables under study are perceived usefulness, perceived ease of use, attitude
towards novelty, perceived risk, trust, website design, vendor’s characteristic and
intention to repeat online purchase.
The findings of the study suggest perceived usefulness, perceived ease of use, website
design and vendor’s characteristics as significant influencers on online purchase
6
Bagla, R. K. & Khan, J. (2017). Customers’ Expectations and Satisfaction with Online Food
Ordering. Prabhandan: Indian Journal of Management,10(5).
doi:10.17010/pijom%2F2017%2Fv10i11%2F119401
7
Vaghela, Pratiksinh. (2017). FACTORS AFFECTING ONLINE SHOPPING BEHAVIOR IN
SURAT CITY.
60
behaviour. The research findings further indicate that the significant impact was intact
irrespective of gender and income level.
Ayush Beliya et al.8 in the research paper titled “Satisfaction of Consumers By using
Online Food Services” aims at understanding the customer perception towards online
food ordering. The research further aims to understand the role of theses apps in
influencing eating habits and preferences to order online. The study gauges customer
response to online ordering. The survey method was used for data collection selecting
respondents through a random sampling method.
The findings of the research suggested that the respondents within the age group of 18-
30 years were more active when it came to ordering through these online apps. The
major influencing factor for ordering online where the discounts and offers available
over these apps. Zomato is the most preferred app as suggested by survey analysis.
Local food outlets were preferred for ordering through online apps. 10% of the income
is used by the customers to order lunch and dinners mostly through online apps. Most
of the customer’s order online once a week with a maximum spending limit between
Rs. 500 to 1000 and the most preferred mode of payment is Paytm.
Serhat Murat Alagoz & Haluk Hekimoglu9 in the research paper titled “A study on
tam: analysis of customer attitudes in online ordering system” aims at discerning the
factors affecting customer attitudes towards online ordering among university students
in Turkey. The research is undertaken to apply the Technology Acceptance Model
(TAM). The research attempts to understand the impact of utility and ease of use on
adopting online food ordering. The research also contemplates the impact of
innovativeness, trust and various external influence on students’ choice of online food
ordering.
8
Beliya, A., Kujur, R., Verma, M., Nagwanshi, K. V., Sahu, S., Uikey, N., & Bhat, A. (2019).
Satisfaction of Consumers by Using Online Food Services. International Journal of Humanities
and Social Sciences, 8(4).
9
Alagoz, S. & Hekimoglu, H. (2012). A study on tam: analysis of customer attitudes in online food
ordering system. Procedia - Social and Behavioural Sciences, 62, pp. 1138-1143.
61
For the purpose of data collection, the survey method was utilized by handing out a
questionnaire comprising 28 close-ended questions to the students of Okan University.
The responses were recorded on a Likert scale. The questions were categorized under
the five factors with introductory questions being the frequency of internet usage and
familiarity with online ordering. 231 questionnaire returned were further acknowledged
as appropriate for further analysis.
The findings of the research suggest that the decision of online food ordering among
the University students in Turkey is positively influenced by all the five factors under
consideration namely, usefulness, perceived ease of use, novelty, trust and various
other external influences.
Nur Shahrulliza Muhammad, Haslinda Sujak & Sofiah Abd Rahman10 in the
research paper titled “Buying groceries online: the influences of electronic service
quality (eServQual) and situational factors” aims at exploring the factors influencing
online shopping behaviour with special reference to groceries and evaluate the quality
of service provided by online grocers.
The objectives of the research are to understand the influential factors affecting
embracing online shopping in groceries among customers in Malaysia while also
gauging the service quality provided by online grocers using the eServQual Model. The
research further aims to test the existence of the relationship between the quality of
service provided and consumer buying decision of buying groceries online and discern
the most important factor of e-service quality influencing the choice of online shopping.
The research also aims at determining the role of various external influences on online
shopping.
For the purpose of collecting data, the survey method was utilized by mailing
personalized e-mails ad messages to the respondents. The questionnaire was divided
into parts with the parts representing the adoption of online grocery shopping,
eServQual, external situational factors and demographic profile respectively. The
10
Muhammad, N., Sujak, H. & Rahman, S. (2016). Buying groceries online: the influences of
electronic service quality (eServQual) and situational factors. Procedia Economics and
Finance, 37, pp. 379-385.
62
response was recorded on the Likert scale. The final sample size of the study was 208.
The findings of the research depict less acceptance of the ideology of shopping
groceries online ascribed to lack of amiability with online shopping in Malaysia. The
research further suggests outsourcing certain aspects of the business to facilitate smooth
expansion.
According to the findings of the study, system availability is the most crucial factor in
eServQual influencing decisions to buy groceries online. All other variables also shared
a significantly strong positive relationship with the buying decision. The situational
factors also shared a positive influence over online shopping groceries.
The study concludes the culture of Malaysia to be different from western culture and
one can find the chain stores and mom-and-pop shops around every corner,
consequently, despite a well-educated busy population, people would still manage to
shop groceries the traditional way by visiting the store.
I. Karthika and A. Manojanaranjani11 in the research paper titled “A Study on the

various food ordering apps based on consumer preference” aim at understanding the
benefits the Online Food Delivery concept provides to the customers and restaurants by
reducing the human errors, saving time, reducing the manpower requirement and
enhancing customer satisfaction. According to the customer’s preference, the apps
considered under the study are ranked as per the following preference Swiggy ranking
first, followed by Zomato on second, Foodpanda being third and Uber Eats being
ranked fourth followed by Food Kourt and Enjoy foods.
The research further suggested that high delivery charges maybe play the role of a
demotivating factor in luring less crowd to Online food delivery options. The research
paper definitely supports the fact that customers are moving towards the online food
ordering options more in number day-by-day as they seek convenience.
11
Karthika, I. & Manojanranjani, A. (2018). A Study on the various food ordering apps based on
consumer preference. World Wide Journal of Multidisciplinary Research and Development, 4
(11), pp 88-89.
63
Gupta, M.12 in the research paper titled “A Study on Impact of Online Food delivery
app on Restaurant Business special reference to Zomato and Swiggy” aims at
understanding the role of these apps in the restaurant business and their individual
marketing strategies considering the fact on how technology has revolutionized the
industry over the years.
The research suggests that Online Food Delivery apps bestow restaurants with the
advantage of customer retention and recommendation by positive word-of-mouth.
Convenience, comfort and the time-saving aspect incites a customer to place an order
online through these apps. Further, the research suggests online ordering as a good
option for cross-selling as it allows customers more time to go through the menu items
and think over before placing the order with no time-pressure. The research suggests
restaurants develop an independent online ordering system to save on heavy
commissions charged by third-party platforms.
According to the web article titled “Why people order food from Zomato, Swiggy,
other apps: Not discounts, this is the real reason” (FE Online, 2019)13, it is the
convenience factor which lures customers to order online then the price aspect with
81% customers agreeing to the fact that the convenience provided by the Online Food
Ordering apps play a more influential role compared to the hefty discounts provided by
these apps. Only 10% of respondents were in the favour of ordering online owing to the
discounts and offer available on the online food delivery app and 5% opt for online
ordering as the platform provides with more variety to make a better choice. 12 % of
respondents were of the viewpoint that the Online Food Delivery apps charge a higher
amount than the actual amount from the customers. Apart from the above significant
findings the survey also suggested many customers be concerned with food quality and
over 22% concerned with the delivery of food on a pronto basis. The overall survey
findings were quite favourable.
12
Gupta, M. (2019). A Study on Impact of Online Food delivery app on Restaurant Business special
reference to zomato and swiggy. International Journal of Research and Analytical Reviews,
6(1), pp. 889-893.
13
FE Online (2019, July 25). Why people order food from Zomato, Swiggy, other apps: Not discounts,
this is the real reason. Retrieved from: https://www.financialexpress.com/industry/sme/why-people-
order-food-from-zomato-swiggy-other-apps-not-discounts-this-is-the-real-reason/1655861/
64
Dr. Chetan Panse, Dr. Sahilesh Rastogi, Ms. Arpita Sharma and Namgay Dorji14
in the research paper titled “Understanding Consumer Behaviour towards Utilization
of Online Food Delivery Platforms” aims at studying consumer behaviour towards the
Online Food Delivery technology. The research studies the impact of Convenience,
Ease of Information, technology and need to interact on the use of the online food
delivery apps. The study develops a conceptual model through secondary data and
collects primary data through survey. The findings of the study suggest that the
convenience associated with ordering online significantly affects customer intention to
use Online Food Delivery apps. The findings of the study further suggest that the ease
of information, control, and technology anxiety in addition to convenience.
Dr. Neha Parashar and Ms. Sakina Ghadiyali15 in their research paper “A Study on
Customer’s Attitude and Perception towards Digital Food App Service” studies the
performance of various food delivery apps in India including Zomato, Foodpanda,
Faasos, Swiggy and Box 8. The research aims at understanding the influential factors
in shaping the attitude of customers towards Online Food Delivery apps. Further, the
research makes an effort to find the most popular app among the crowd and analyze the
service and facilities provided by the Online Food Delivery apps.
The most influential factor as per the research is the speed of delivery that determines
the choice of apps followed by quality of service and also discount being a determining
factor to opt for certain apps like Fassos and Foodpanda. The other factors included in
the study minimum order criteria, payment options and time-saving.
The findings of the app suggest that:
 Facilities provided by the apps paly and influential role to determine the purchase.
 Cash on Delivery is the most opted method of making payment for Online Food
Delivery services.
 Apps need to ensure and user-friendly interface for being popular
14
Panse, C., Rastogi, S., Sharma, A. & Dorji, N. (2019). Understanding Consumer Behaviour towards
Utilization of Online Food Delivery Platforms. Journal of Theoretical and Applied Information
Technology, 97(16), pp. 4353-4365
15
Parashar, N. & Ghadiyali, S. (2017). A Study on Customer’s Attitude and Perception towards Digital
Food App Services. Amity Journal of Management.
65
 The study depicts a significant relationship between factors influencing online food
ordering.
 The research further suggests that with more professionals and employable youth
marking their entrance in the country witnessing rapid urbanization, the food
delivery apps and restaurant apps are growing at a very fast pace added fillip by
growth in the number of smartphones and strong internet connectivity.
Jyotishman Das16 has published a research paper titled “Consumer Perception

towards ‘Online Food Ordering and Delivery Services’: An Empirical Study” aims at
determining the factors influencing satisfaction level among the users of the online food
delivery services and understanding the positioning strategy by various online food
delivery portals in Pune city. It aims at determining through the study the most preferred
online food delivery portal and also gaining an insight into the factors which impede
the use of online food ordering technology.
The research maps the four apps Zomato, Swiggy, Foodpanda and Uber Eats on basis
of Choice of restaurants it provides on its platform, discounts offered, timely delivery
and customer service which as per findings suggests Zomato as the most preferred app
among the respondents while considering these criteria followed by Swiggy.
The most influential factors which influence the use of Online Food Delivery services
are doorstep delivery followed by ease and convenience. Rewards and Cashbacks also
significantly influence customers to choose an Online Food Delivery app. The factors
which discourage respondents from using Online Food Delivery services are bad
experience in the past and influence of family and friends.
16
Das, J. (2018). Consumer Perception towards ‘Online Food Ordering and Delivery Services’: an
Empirical Study. Journal of Management, 5(5), pp 155-163.
66
Sabita Mahapatra17 in the research paper titled “Mobile shopping among young
consumers: an empirical study in an emerging market” aims at understanding various
factors that influence the young generation to continue shopping online. In the
technological era, the prospects the retailing channel has improved. The data collection
was done by surveying 380 students in the National Capital Region. For the purpose of
data analysis, Structural Equation Modeling was used. The findings of the research
suggest the convenience of search and possession is closely related to the consumption
experience while the convenience of search, evaluation and post-purchase are closely
related to continuance usage. The findings further corroborate the fact of the mobile
device is an effective channel for experiencing a great shopping experience.
Suryadev Singh Rathore and Mahik Chaudhary18 in the research paper

“Consumer’s Perception on Online Food Ordering” attempts to study the factors
which play a dominant role in shaping customer’s perception with respect to online
food delivery services. The objective of undertaking this research identifies the factors
which influence customers to purchase online and also to discern customer preferences
for an Online Food Delivery platform and the type of cuisines ordered over the online
food delivery platforms. The factors considered under the study are easy accessibility,
time-saving, and convenience, ease of payment, flexibility and promotions. The study
further gauges the performance of the apps on the basis of timely service, offers and
promotions and quality of service.
The research findings suggest Uber Eats as the most preferred app by the respondents
followed by Zomato, Swiggy, and Foodpanda respectively.
The findings of the research suggest that a maximum number of the respondents ordered
online through mobiles or tablets, portraying an elevation of the online food delivery
technology with growth in the number of smartphones.
17
Mahapatra, S. (2017), "Mobile shopping among young consumers: an empirical study in an emerging
market", International Journal of Retail & Distribution Management, Vol. 45 No. 9, pp. 930-
949. https://doi.org/10.1108/IJRDM-08-2016-0128
18 Rathore, S. & Chaudhary, M. (2018). Consumer’s Perception on Online Food Ordering. International
Journal of Management and Business Studies, 8(4), pp 12-17.
67
Promotions or savings realized through online ordering is the most influential factor as
per the study motivating customers to opt for online ordering followed by convenience
enjoyed through ordering food online.
Fast food is the most ordered food item on the online food delivery platform succeeded
by North Indian Cuisine on the 2nd rank.
Zulakarnain Kedah and Yusof Ismail19 in their research paper titled “Key Success
Factors of Online Food Ordering Services: An Empirical Study” attempts to
understand the impact of customer satisfaction, loyalty and website trust on the
customer experience of ordering from an online food ordering platform. It aims at
understanding the impact of the quality of website and service on the customer through
the use of Structural Equation Modelling. The study investigates the timely delivery,
food quality and customer service under service quality to gauge its impact on customer
satisfaction. The website features like safety and security promised by the technology,
visually appealing design, information available on the website and the payment system
option were chose for determining the website quality.
The study proves the existence of a significant relationship between the trust on the
website and customer satisfaction and also between customer satisfaction and loyalty.
Further, the research suggests a significant affirmative impact of service quality on
customer loyalty.
Sheryl E. Kimes20 in the research paper titled “Customer Perceptions of Electronic

Food Ordering” aims at understanding customer preference of ordering food online
and aims at communicating the same to the restaurant operator to enable them for
delivering better customer ordering experience. The objective of the research is to arm
restaurants with adequate knowledge so as to facilitate designing a better electronic
ordering medium. The research aims at understanding customer perception with respect
19 Kedah, Z. & Ismail, Y. (2015). Key Success Factors of Online Food Ordering Services: An
Empirical Study. Malaysian Management Review, 50(2), pp 19-36.
20 Kimes, S. E. (2011). Customer Perceptions of Electronic Food Ordering. Cornell Hospitality Report,
11(10), pp. 6-15.
68
to online ordering and also determine the factors which inhibit the use of the online
platform for ordering.
The findings of the research suggest convenience and control as prominent reasons to
opt for ordering food online. The major impediment to online ordering is received from
customers seeking personal interaction. The most important attribute of online food
ordering is the accuracy followed by convenience and ease of ordering through online
platforms. As per the research Italian cuisine witnessed maximum pour-in of online
orders.
Goh See-Kwong, Ng Soo-Ryue, Wong Shiun-yi and Chong Lily in the research
paper titled “Outsourcing to Online Food Delivery Services: Perspective of F&B
Business Owners” 21
aims at understanding the restaurant businesses’ perspective on
outsourcing their food delivery operations to online channels. The various factors
considered under the study an opportunity to widen the reach, increase revenue and
expand customer base. The research aims at providing valuable insights to the third-
party service providers on improving their services and keeping a track of customer
dynamics. Realizing the need for reducing cost and maximizing revenue, restaurants
are inspecting online platforms as an opportunity to ameliorate the scope of the
business.
For the purpose of the research, a qualitative research was undertaken by conducting
in-depth interviews with open-ended questions with 12 respondents from the industry.
Out of the 12 respondents, 7 respondents were found to already have outsourced their
food delivery. Out of the rest of the 5, 2 had an in-house delivery and 3 had no system
of delivery.
Increasing revenue was the most significant factor which influenced restaurants to
outsource the delivery operation to online platforms, followed by increasing exposure
and ensure a wider reach to customers.
21
Kwong, G., Ryue, NG,, Yi, W.& Lily, C. Outsourcing to Online Food Delivery Services:
Perspectives of F&B Business Owners. Journal of Internet Banking and Commerce. Retrieved
from http://www.icommercecentral.com/open-access/outsourcing-to-online-food-delivery-
services-perspective-of-fb-business-owners.php?aid=86136
69
Restaurants locate in strategic locations witnessing high customer traffic do not find the
need for outsourcing food delivery and prefer handling it by themselves.
Ling Jiang, Zhilin Yang and Minjoon Jun22 in the research paper titled “Measuring
consumer perceptions of online shopping convenience” aims at determining the
various dimensions of convenience which influence online shopping. For the purpose
of data collection, in-depth focus group interviews are conducted with the online
customers to determine the dimensions of convenience which convince them for
shopping online. As per the findings of the research, the five dimensions of convenience
which are identified are access, search, evaluation, transaction and post-purchase
convenience.
Rituparna Ghosh and Tapash Ranjan Saha23 in the research paper titled “A Study
in E-payment system on Online Food Delivery Industry: A Case Study on Swiggy”
attempts to study the relationship between the demographic variables on preference for
food and studying the customer preference for an online mode of payment. The study
examines the growth in the Online Food Delivery in India and customers embracing
the concept along with e-transactions owing to the growth on the internet. The research
aims at determining the factors influencing customer’s behavior towards the e-payment
system and their familiarity, perspective and attitude towards online payment systems
with special reference to Swiggy.
A sample size of 100 is studied to derive a conclusion. The area of study is limited to
Kolkata, India. For the purpose of collecting data, a close-ended questionnaire is
utilized to record responses on a 5-point Likert scale. The statistical tool ANOVA is
used for examining the relationship between the demographic variables and the choice
22 Jiang, L., Yang, Z. and Jun, M. (2013), Measuring consumer perceptions of online shopping
convenience, Journal of Service Management, 24 (2), pp. 191-
214. https://doi.org/10.1108/09564231311323962
23 Ghosh, R. & Saha, T. R. (2019). A Study of E-payment System on Online Food Delivery Industry: A
Case Study on Swiggy. International Journal on Recent trends in Business and Tourism, 3(2).
70
for transacting for Online Food Delivery business. Factor analysis is used to identify
the factors which influence the choice for mode of payment to complete the transaction.
The research studies preference for effecting transaction through online mode and
thereby conduct an in-depth study with respect to e-payment penetration in the area of
study, that is, Kolkata. The research paper aims at discerning the factors ad studying
their impact which plays an influential role in ordering from the online food delivery
platform Swiggy. Further, the research aims to investigate the evidence with respect to
the influence of demographic factors like age, gender, education, marital status,
profession and income on selecting the preference of a mode of payment to facilitate
completion of the transaction on Swiggy. The sampling area was limited to Kolkata,
the capital of West Bengal state well-known for its wildlife diversity and rich heritage
and culture.
The five important factors extracted from the survey which influence the purchase from
the online food delivery platform are
 Customer Convenience
 Secured payment system
 Strategy for referral coupon
 Payment preference for customers
 Discount offered by online food delivery portals
The findings of the research suggests that convenience in transacting, existence of a

security, a strategy for referral coupon, preference for payment and discounts offered
by the portals are the primary factors affecting the choice of mode of payment. Overall
a positive attitude toward e-payment is reflected through the recorded responses.
The overall survey represented a positive perception of respondents towards the e-

payment system and substantiates existence of a strong relationship between
demographic variables and the preference for the mode of payment.
71
Dr. N. Sumathy and S. Josephin24 in the research paper titled “A Study on Prospect
Concernment towards Food Adjure App” investigates the factor which drive customer
perception, behaviour and satisfaction of Online Food Delivery app Adjure. The
research aims to determine the performance of the app in terms of reliability, and
accuracy, Security and user-friendly interface and gauge the level of customer
satisfaction towards the app service and discerning the factors which play a critical role
for selection of Adjure app as an app of choice for ordering food online. The research
further aims at assessing the existence and significance of relationship between the
delivery performances during peak hours.
The sampling area is limited to Coimbatore in Tamil Nadu.
The factors playing an influential role in the adoption of the Online Food Delivery app
Adjure are the responsiveness, the reliability of the platform and the assurance of
delivering the promised service. As per the responses of the survey, the factors
influencing ordering from the app are service quality followed by, quality, price, taste,
delivery and packaging respectively.
Karishma Sharma and Kareem Abdul Waheed25 in the research paper titled
“Consumption of online food app services: An exploratory study among college
students in Dubai” aims at exploring the consumer behaviour towards online Food
Delivery app in UAE along with providing an overview of the major online Food
Delivery app services.The research studies the online ordering behaviour of customers.
It studies the satisfaction level and preferences for ordering food online.
The research suggested that around 69% of respondents prefer getting food delivered
at the doorstep. Most of the respondents prefer ordering food through mobile apps. The
most used app for ordering food online is Zomato, Talabat and Uber Eats ranked as per
24
Sumathy, N. & Josephin, S. (2017). A Study on Prospect Concernment towards Food Adjure App.
International Journal of Advance Research and Innovative Ideas in Education, 3(2), pp 4905-
4910
25Sharma, K. & Waheed, K. (2018). Consumption of online food app services: An exploratory study
among college students in Dubai. Middle East Journal of Business. 13(4): 4-11. DOI:
10.5742/MEJB.2018.93500
72
the order of preference. Most of the respondents were highly satisfied with the online
food ordering experience.
Belinda Kanana Muriuki and M. Madara Ogot26 in the research paper titled “Online
Food Ordering Among Outlets in Nairobi” delineates the emerging technology
providing limitless opportunities to restaurants for growth, expansion and increasing
revenue and to build better and lasting customer relationship management and
investigates online food ordering as an avenue for restaurants elevate sales.
The research suggests that an increase in orders was witnessed by restaurants which
merely added the online food ordering option to their service as customers preferred
the ease of ordering through online ordering channels, generating incremental revenue
for restaurants. As per the research undertaken by Lang (2006), over 59% of restaurant
outlets witnessed an increase in sales through its online ordering channel.
The research is undertaken to realize the need for an online ordering system as an option
to improve sales and also provide the customer with a speedy and accurate along with
a customized service experience. The study aims at understanding the extent to which
the online food ordering system is adopted in Nairobi and also whether the type of
cuisine offered by the restaurant influence the decision of providing service through an
e-commerce channel.
Upscale and middle restaurants were chosen for the study and the details were collected
from the eat Kenya website which provides information with respect to the cuisine
offered and location. The information of 404 restaurant outlets was retrieved through
the website for the purpose of analysis.
The findings of the research suggest that online food ordering has been embraced by
restaurateurs, as it is perceived to improve sales through the enhanced visibility it
provides and a better reputation in the market. The research suggests that the type of
cuisine offered by the restaurant is more influential that the type of outlet to opt for
online ordering.
26
Muriuki, B. K. & Ogot M. M. (2018). Online Food Ordering among Food Outlets in Nairobi. African
Journal of Business and Management, 4(1), pp. 15-27.
73
The findings of the research suggest that even though there innumerable immense
benefits offered by the online food ordering options, very few restaurants are in reality
opting for such options may be ascribed to the high cost of developing such online
options.
Megha Gera, Netal Nawander, Neha Tharwani and Paalan Bhatia27 in their
research paper titled “Operations research in food delivery” attempts to benefit the
restaurants to choose a better transportation model to minimize cost and maximize
returns. The study assists the restaurant business and guides through the model to
choose between handling the logistics and outsourcing it to third-party logistic
providers like online food delivery apps, such as Swiggy, Zomato and Uber Eats.
According to the research, the revenue generated by the food industry is U.S $ 720mn
annually witnessing a growth of 20% approximately a year-on-year basis. Going by the
statistics (Online Food Delivery, 2018) the industry is expected to witness a magnificent
growth in the average revenue by 11.8%. The research aims at utilizing the
transportation model as a mode of minimizing cost and maximizing returns. Further,
the research places emphasis on explicating linear programming models to improve
returns.
The research mainly uses secondary data ascribing to the nature of the research.
Through the data, the researchers aim to understand the operations research in the
industry and its utility and benefits. The main sources of secondary data are blogs,
books, previously published research, and articles. A transportation problem is assumed
to identify opportunities for cost-cutting.
Realizing the growth in the trend of takeaways creating opportunities for emerging
industries like food delivery has aggravated the rate of competition among them. The
findings of the research advise restaurants that commencing delivery through the outlet
would be beneficial considering the number of customers that can be served finding it
difficult and hassling to visit the restaurants, however, it would be optimal to
collaborate with third-party logistic providers like Swiggy, Zomato and Uber eats to
27 Gera, M., Nawander, N., Tharwani, N. & Bhatia, P. (2018). International Journal of Advance
Research and Development, 3(10), 73-78.
74
handle the task as it will facilitate restaurateurs to cut cost on hiring people and
arranging for vehicles, also not forgetting the cost of maintaining the vehicles.
Mustafa Abbas Bhotvawala, Harsh Balihallimath, Nishant Bidichandani and M.

P. Khond28 in the research paper titled “Growth of Food Tech: A Comparative Study
of Aggregator Food Delivery Services in India” aims at discerning the operational
practices of the information technology companies and their contribution in the growth
of food delivery sector. The research aims at undertaking an in-depth study to
understand the different models adopted by Online Food Delivery operators. It
examines the reasons for the failure of Tiny Owl. Through the research, the researchers
aim at making suggestions to ameliorate the situation.
The research mainly relies on qualitative models like SWOT analysis, a comparative
study on the business models and uses Ishigawa diagram to understand the reasons for
failures of the business model of Tiny Owl.
The research suggests a lack of funding, and sustainability in terms of capital funding,
lack of innovation which could assure higher profit margins can be the major causes for
failure of a business like that of Tiny Owl’s. An initial cash-burn phase that tech start-
ups usually go through could also be a contributing factor to the doom of such a business
model.
Soham Trivedi29 in the research paper titled “Consumer Perception about Online
Sales of Food in Indian Consumer Market” studies consumer perception towards the
digital platforms with specific reference to the sale of food items taking on the online
platforms. The research aims to study customer perception towards the digital platform
28
Bhotvawala, M., Balihallimath, H., Bidichnadani, N. & Khond, M. Growth of Food Tech: A
Comparative Study of Aggregator Food Delivery Services in India. (2016). Proceedings of the
2016 International Conference on Industrial Engineering and Operations Management, pp,
140-149.
29 Trivedi, S. (2018). Consumer Perception about Online Sales of Food in Indian Consumer Market.
Proceedings of Academics World 99th International Conference, pp. 27-29.
75
with specific reference to online sales of food and the factors which influence their
choice of buying food online.
For the purpose of primary data collection, the survey method was utilized. With a
sample size of 150, the respondents were asked to fill out the form and respond to
questions related to the frequency of purchasing online and the amount they are
comfortable with spending on shopping for food online.
The findings of the research suggest that most respondents were comfortable buying
fast food online, followed by Indian food which mist respondents preferred buying
offline. Most respondents also bought fixed lunches and dinner online. Some of the
respondents also preferred buying desserts online. Non-vegetarian food was the least
preferred food category to purchase online.
Cash on delivery is the most preferred mode of payment while buying food online for
most of the respondents followed by using Debit and Credit cards and digital wallets,
while net banking being the least preferred plausibly owing the security reasons.
Pritam P. Kothari and Shivganga S. Maindargi30 in the research paper titled “A

Study on Consumers Attitude towards Online Shopping in India and its Impact: With
Special reference to Solapur City” aims at understanding the factors which influence
consumer behaviour in online shopping in Solapur city.
The research considers factors like cognition, utility, comfortable to use, security and
enjoyment experienced in purchasing online and its influence on Online purchases. The
research aims at understanding the potential for growth of online shopping and
determine factors which influence customer’s choice for shopping online and
developing an attitude towards it.
For the purpose of collecting data, 100 users as well as non-users of online mode of
shopping were observed and interviewed to understand the consumer behaviour
towards online shopping. The findings of the research suggest that the technological
30 Kothari, P. & Maindargi, S. (2016). A Study on Consumer Attitude towards Online Shopping in
India and its Impact: With Special Reference to Solapur City. International Journal of
Advance Research, Ideas and Innovations in Technology, 2(6), pp. 1-10.
76
revolution has spurred the online industry. Factors like heavy discounts, time-saving,
the variety available and the convenience provided by shopping online bags a
favourable predisposition of online shoppers. Most of the online shoppers responded as
having had a satisfactory experience shopping.
Absence of touching and feeling the product before choosing to buy it, fear of being
delivered a faculty or a defective product and security issues have barred customers
from embracing online shopping. The research found no significant relationship
between the occupations of customers on the choice of shopping online.
Manpreet Kaur31 in the research paper titled “Customer Relationship Management

in Online Grocery Stores” aimed to invest the impact of efforts to build effective
customer relationships on customer satisfaction. The research aims at determining the
motivational factors for shopping online. The research further aims at understanding
customer expectations with respect to Customer Relationship Management initiatives
by the Online Grocery stores.
The data was collected by surveying 206 respondents. Descriptive as well as

exploratory research was undertaken to derive objective conclusions. For the survey, a
structured questionnaire was utilized to survey customers in the National Capital
Region. A convenience sampling method was utilized for choosing sampling units.
The findings of the research state that despite the solemn efforts made by the online
store to meet expectations they fall short of meeting those expectations. Certain
expectations of customers include bonus referral points and surprise gifts, with maybe
occasional invitations to movie shows and events.
31 Kaur, M. (2018). Customer Relationship Management in Online Grocery Stores. Journal of Business
and Financial Affairs, 7(2), doi: 10.4172/2167-0234.1000339
77
Sapna Rakesh and Arpita Khare32 in the research paper titled “A Study on E-CRM
applications for Indian fast-food chains” aims at understanding the need and
effectiveness of Electronic Customer relationship management. The aim of this
research is to determine the role of E-CRM in influencing consumer’s decisions. It also
aims at studying E-CRM tools adopted by the fast-food chains in India and its impact
on the growth prospects of the business.
The research adopts both a descriptive and exploratory approach. Primary data was
collected by interviewing managers of 135 fast food outlets and surveying 263
customers to understand their expectations using a convenience sampling method. The
study area was limited to Delhi and NCR.
Various E-CRM tools used by fast-food chains include e-mails, toll-free number, SMS,
guaranteed delivery in 30 minutes, membership benefits, discounts, birthday and
anniversary wishes, customized service and find a store nearby services to mention a
few. Out of these the most commonly implemented CRM tools were SMS and emails,
followed by toll-free numbers, delivery in 30 minutes, personalization, birthday and
anniversary wishes, etc. however, SMS has not been much effective from the marketing
aspect which is an important tool for communication along with emails.
2.2 Attribute Study
Dang et al. (2018)33 through their research “Consumer Preferences and Attitude
Regarding Online Food Products in Hanoi, Vietnam” aims at understanding towards
online food products in Vietnam. The research aims at gaining an insight into the
customer predisposition and behaviours with special reference to purchasing online
food products and also the factors responsible for the change in attitude and studies the
concerns of food safety by the buyers.
32 Rakesh, S. & Khare, A. (2011). A Study on e-CRM applications for Indian fast-food chains.
International Journal Electronic Customer Relationship Management, 5(2), pp. 58-74.
33 Dang, A., Tran, B., Nguyen, C., Le, H., Nguyen, H., Nguyen, L., Nguyen, T., Mai, H., Tran, T., Ngo,
C., Vu, T., Latkin, C., Zhang, M., & Ho, R. (2018). Consumer Preference and Attitude
Regarding Online Food Products in Hanoi, Vietnam. International Journal of Environmental
Research and Public Health. 15, 981, doi:10.3390/ijerph15050981
78
Approximately 80% of the respondents, the influential factors which played a role to
shop for food products online were convenience and price. Few were concerned with
the food safety and information about expiry date and food licensing information was
almost neglected. Suggestions of the study were the need for appropriate legislation to
be implemented to regulate food products sold online
Neha Joshi34 in the research paper titled “A Study on Customer Preference and
Satisfaction towards Restaurant in Dehradun City” studies the demographic variables
and factors influencing preferences for the restaurants and also gauges the overall
opinion of the service delivered at the restaurant.
The research aims to understand the factors which play an influential role in
determining customer preferences for the restaurants, while understanding the influence
of demographic variables like age, education, income, and gender, and also the dining
occasion on the choice. The research further aims to understand the attributes that
determine the overall satisfaction level through the evaluation of the service by the
customer. The research appears also aims to give an insight into the consumption patter
considering the growth in the increase in consumption of food away from home over
the years.
The research relies on both primary and secondary data for data collection. For the
purpose of collecting the primary data, a questionnaire is filled by 89 respondents with
the age group of 18-25 and above 40 are chosen for the study, while for the secondary
data in-depth study of related books and websites is undertaken.
ANOVA, T-test and Chi Square are used for examining the relationship between
demographic variables and customer preference and satisfaction.
None of the demographic variables except income projects any significant relationship
with the preference for a restaurant. The taste and quality of the food are the two critical
factors affecting the choice of the restaurant. According to the study, males, youngsters
and high-income earners are frequent visitors to the restaurants.
34
Joshi, N. (2012). A Study on Customer Preference and Satisfaction towards Restaurants in Dehradun
City. Global Journal of Management and Business Research, 12(21).
79
Dr. R. Sivanesan, C. Monisha, P.V. Babisha, and S. A. Abisha35 in the research

paper titled “Comparative Study on Factors Influencing Online and Offline
Shopping” Aims at understanding customer perception to Online hopping compared to
offline shopping. The research aims at factors affecting online and offline shopping and
also various issues faced while shopping online as well as offline.
The objective of the research is to determine differences between the differences

between consumer groups preferring to shop online and offline and identifying the
factors influencing to switch their shopping preference from offline to online and
factors influencing ordering from only one of the two channels. The study is conducted
in the highly literate state of India, Tamil Nadu, and thus aims at understanding the
impact of the qualification of the consumer on the choice for online shopping.
The data is collected from 150 shoppers for the purpose of study comprising of 90
online shoppers and 60 offline shoppers. The findings of the study suggest that
youngsters and females are prominent in online shopping. Low price and ease of use
are significant factors for persuading customers to shop online. Electronic items are
least demanded on online shopping sites.
Yashika Guleria36 in the research paper titled “Evaluating Impact Factors for
Consumer Online and Offline Shopping Behaviour” aims at understanding the
manner in which online and offline shopping significant factors realized under the study
which marks a shift from offline to online shopping is the enjoyment of shopping
online, efficiency, convenience and rewarding. The study witnesses customers being
active over the internet technology and making the most of it which give a fillip to the
trend of online shopping.
35 Sivesan, R., Monisha, C., Babisha, P., & Abisha, S. (2017). Comparative Study on Factors
Influencing Online and Offline Shopping. International Journal of Research in Management &
Business Studies, 4(3), pp. 26-34.
36
Guleria,Y. (2018). Evaluating Impact Factors for Consumer Online and Offline Shopping Behaviour.
IOSR Journal of Business and Management, 20(12), pp. 58-61, doi:10.9790/487X-
2012025861
80
2.3 Customer Perception
Eojina Kim37 in the dissertation titled “Understanding customer perception of

restaurant innovativeness and customer value co-creation behaviour” focuses on the
customer-centric approach of enhancing service delivery and studies willingness to the
customer to meet their expectations. The research aims at studying consumer behaviour
with respect to co-creation of service in casual dining restaurants. It further tries to
gauge the impact of restaurant innovativeness on customer perception and the
consequence of the co-creation of the restaurant service experience by the customer and
study its impact on customer satisfaction and loyalty. The innovation of the restaurants
is considered on four parameters namely, menu innovativeness, technology
innovativeness, experience innovativeness and promotion innovativeness.
The study supports the existence of a relationship between restaurant innovativeness,

customer co-creation, customer satisfaction and loyalty. There was a strong relationship
evident suggesting customer satisfaction and loyalty as the consequences of customer
co-creation.
Dr. Naveen Chahal38 in the research paper titled “Dining Experiences and Customer
Satisfaction towards fast food outlets in Delhi (NCR)” uses gap analysis to understand
the impact of service quality on customer satisfaction. The research aims at helping the
fast-food outlets through the findings to ameliorate the dining experience and thereby
the level of customer satisfaction.
The research collects primary data by surveying 200 respondents from various
locations and is further analysed to derive conclusions to improve dinging experience.
The findings of the research suggest fast food to embrace more of technology in the
era where people prefer technology to transact in almost everything as it provides
convenience.
37
Kim, Eojina, "Understanding customer perception of restaurant innovativeness and customer value
co-creation behavior" (2016). Graduate Theses and Dissertations. 15006.
https://lib.dr.iastate.edu/etd/15006
38
Chahal, N. (2018). Dining Experiences and Customer’s Satisfaction towards fast Food Outlets in
Delhi (NCR). Journal of Management Research and Analysis, 5(2), pp. 186-191.
81
According to customer responses, there is a need to price the food items fairly to reduce
the gap between customer perception and satisfaction. Promotional offers and discounts
could also prove to be of utility for attracting the young crowd more often.
The research suggests designing training programs to imbibe the principle of keeping
the customer’s best interest at heart.
2.4 Customer Satisfaction
The existence of a business is threatened when customers are dissatisfied. Customer

satisfaction is imperative for any business and due to its inevitable characteristic; it
tends to attract attention of researchers worldwide. Various researchers (Lombard,
2009, Santouridis & Trivellas, 2010, Kumar, 2012) define customer satisfaction as
being realized when service performance exceeds the expectations of customers.
Syed Saad Andaleeb and Carolyn Conway39 in the research paper “Customer
Satisfaction in the restaurant industry: an examination of the transaction-specific
model” aims at determining and studying the factors which influence the customer
experience and overall customer satisfaction in full-service restaurants. The research is
undertaken with the objective of determining the factors influencing the level of
customer satisfaction. The factors considered for evaluation under the study are service
quality, food quality and physical décor under the product quality aspect of the study
and price.
As per the research, the most influential factor is the responsiveness of the service staff
interacting with customers. The other factors influencing customer satisfaction in these
restaurants is the price aspect followed by the quality of food served. On the other hand,
the data collected reflected that the ambience of the restaurants did not wield much
influence on customer satisfaction.
39
Saad Andaleeb, S., & Conway, C. (2006). Customer satisfaction in the restaurant industry: an
examination of the transaction‐ specific model. Journal of Services Marketing, 20(1), 3–
11.doi:10.1108/08876040610646536
82
Bader. M. A. Almohaimmeed40 in the research paper titled “Restaurant Quality and

Customer Satisfaction” has tried to study the influential factors affecting customer
satisfaction by surveying 100 customers of full-service restaurants in Saudi Arabia.
The research aims at expounding the influence of 11 dimensions of the service quality
of a restaurant including halal, food, hygiene standards, menu, and the ambience of the
restaurant, assurance, and responsiveness to the customer seeking information,
accuracy in providing service, price and the external environmental factors.
The research findings suggest that food quality aspects like the freshness of ingredients
used in the preparation, taste of the meal and the quantity offered to influence the overall
customer satisfaction rating followed by the hygiene maintained in the restaurant
kitchen and layout including a clean dining space. Promptness in delivery of the service
and also a visually appealing and informative menu with a gamut of dishes also have a
strong impact on the overall satisfaction level.
Yen Nee Ng41 in the thesis topic title “A Study on Customer Satisfaction, Return
Intention and Word-of-mouth endorsement in University Dining facilities” makes an
effort to understand the factors determining customer satisfaction, and in turn its
influence in customer retention and word-of-mouth endorsement. The study is limited
to dining facilities serving on the Oklahoma State University campus. The objective of
the study is to understand the impact of food quality, service quality, atmosphere or the
ambience of the restaurant, convenience aspect and the price and value on customer
satisfaction among students, faculties and staff. Further, the research aims at testing the
relationship between customer satisfaction and also determining whether customer
satisfaction and retention trigger positive word-of-mouth.
40
Almohaimmeed, B. (2017). Restaurant quality and Customer Satisfaction. International Review of
Management and Marketing, 2017, 7(3), 42-49.
41
Ng, Y. (2001). A Study on Customer Satisfaction, Return Intention, and Word-of-mouth
Endorsement in University Dining Facilities. Oklahoma State University Thesis. Retrieved
from
https://shareok.org/bitstream/handle/11244/9694/NG_okstate_0664M_1503.pdf?sequence=1&
isAllowed=y
83
As per the findings of the study a convenient location, a friendly manager at the outlet,
a comforting ambience, short walking distance and taste of the food are certain aspects
which customers consider as meeting their expectations.
Food quality was found to be the most critical factor as per the research findings
considering the freshness, taste and visual appeal of the meal followed by service
quality aspect which includes affable, knowledgeable, and attentive and a dapper staff.
The next important factor is the value provided for the price charged considering
reasonable pricing and commensurate portion quantity succeeded by atmosphere
including a clean and a well maintained, comforting dining area. Last but not the least
convenience aspect like outlet at a walking distance and
The researcher suggests that all the five factors, apparently, have a considerable impact
on customer satisfaction and thus dining outlets must not be oblivion to their
significance.
Rashed Al Karim42 in the research paper titled “Customer Satisfaction in Online

Shopping: a study into the reasons for motivations and inhibitions” has attempted to
understand what motivates customers to opt for online shopping and also the
impediments to acceptance of online channel for shopping. The researcher further tries
to understand the level of satisfaction with respect to online shopping experience using
Kotler and Keller’s (2009) Five Stages Buying Process Model.
The research aims at understanding the factors which influence customer satisfaction
and experience and also to discern the factors for tepid growth and acceptance of online
shopping. The research further attempts to classify the motivating and the demotivating
factors influencing the choice to shop online.
The study is conducted in the Wrexham area. The data was collected using the survey
method with 23 close-ended questions. SPSS software was used for further analysis of
responses collected from the customers. The study reflects 90% of people using the
internet but few out of them actually opt for online shopping with others responding
42
Karim, Rashed. (2013). Customer Satisfaction in Online Shopping: a study into the reasons for
motivations and inhibitions. IOSR Journal of Business and Management (IOSR-JBM). 11.
10.9790/487X-1161320, pp. 13-19.
84
positively to go shopping online if the need arises. The research findings suggest that
convenience is a critical factor to choose online shopping as it was time-saving for them
with ease of use, less stressful, availability of rich information, and more fun and
inexpensive. The common inhibitions to acceptance of online shopping are, the critical
one being the security and trust issues, unclear warranty and return policy and absence
of personal touch. Privacy and security anxiety may usurp the convenience aspect
bearing a significant influence on the decision of shopping online.
2.5 Customer Retention
According to Terblanche & Boshoff (2010) (Cited in Anasri & Jalees, 2018)43
retaining an old customer is critical for any restaurant business for the effort a restaurant
makes to attract every new customer and loses an old customer the result is zero.
According to the article titled “Zomato or Swiggy: Who is leading in the food delivery
app race (and where)?” (Bhattacharya, 2019) indicates that Zomato through its
Zomato Gold membership programme for its customers has been successful in bagging
repeat purchases. The loyalty programme has fared quite well in terms of customer
attraction and retention. Pampering customers by showering heavy discounts has been
a trend during sports events like Cricket World Cup and Indian Premier League not
failing to give a fillip to the business of Zomato and Swiggy.
43 Ansari, T.& Jalees, T. Impact of Service Quality and Restaurant Ambiance on Customer Loyalty:
Measuring the Mediating Effect of Customer Satisfaction. Retrieved from
https://www.scribd.com/document/423469941/Impact-of-Service-Quality-and-Restaurant-
Ambiance-on-Customer-Loyalty
85
Ishmael Mensah and Rebecca Dei Mensah44 in the research paper titled “Effects of
Service Quality and Customer Satisfaction on Repurchase Intention in Restaurants
on University of Cape Coast Campus” aims at understanding how service quality
determines customer satisfaction its influence on repeating the purchase from a
particular restaurant. For the purpose of the study, a survey of 200 customers across 10
restaurants in University of Cape was undertaken. DINESERV scale, a modified
SERVQAUAL scale for restaurants was used to measure the perceived service quality.
The research was undertaken with an objective of understanding the role of service
quality on customer satisfaction and its impact on repurchase intention.
The findings of the study suggest a strong influence on customer satisfaction. Further,
the study corroborated the fact that service quality and customer satisfaction impact
repurchase intention.
Pingjun Jiang and Bert Rosenbloom45 in the research paper titled “Customer
intention to return online: price perception, attribute-level performance, and
satisfaction unfolding over time” aims at understanding the role of price and
performance on customer satisfaction over time. A longitudinal study is conducted in
the e-retailing is conducted for the purpose of data collection. With the objective of
testing the hypothesis, Structural Equation Modeling is used.
The findings of the study make it evident that price has a positive impact on customer
satisfaction and intention to return. Further, the research findings corroborate the
satisfaction experienced by the customer after delivery bears a significant influence on
the overall satisfaction and return intention.
44 Mensah, I & Mensah, R. (2018). Effects of Service Quality and Customer Satisfaction on Repurchase
Intention in Restaurants on University of Cape Coast Campus. Journal of Tourism, Heritage &
Services Marketing, 4(1), pp. 27-36.
45 Jiang, P. and Rosenbloom, B. (2005), Customer intention to return online: price perception,
attribute‐ level performance, and satisfaction unfolding over time, European Journal of
Marketing, Vol. 39 No. 1/2, pp. 150-174, https://doi.org/10.1108/03090560510572061
86
Jiu-Sheng Chris Lin, Chung-Yueh Wu, in the research paper titled “The role of
expected future use in relationship-based service retention” aims at investigating the
correlation between the quality of relationship shared with the customer, expectation to
continue purchase in future and return intention. Structural Equation Modelling is used
for testing of hypothesis. The findings of the research suggest elements of relationship
which are trust, satisfaction and commitment share a positive relationship with expected
use in the future and customer retention where future use mediates the relationship
between relationship quality and customer retention.
Dalia Diab, Hesham Mohammed, Elham Hasssam Mansour & Osman Saad46 in
the research paper titled “Investigating the impact of key dimensions of service quality
on customers’ satisfaction and loyalty: Evidences from the restaurant industry in
Sudan” study the aspects of service quality which impact customer experience at the
restaurant. The research aims at understanding the key dimensions of service quality
which affect customer satisfaction and loyalty in Sudan.
Four factors of service quality which are empathy, assurance, tangibility and reliability
strongly influence customer experience and links these dimensions to satisfaction and
loyalty.
According to a study by Papiernick (1996), the battle for market share in the restaurant
industry will intensify (cited in Pettijohn et al., 1997)47. According to Gupta et al.
(2007), the link between customer satisfaction and repeat buying is an important
contributor to a restaurant’s profits.
Bill Marriott, the Executive Chairman of Marriott International an American

multinational diversified hospitality company that manages and franchises a number of
46
Diab, D, Mohammed, H, Mansour, E & Saad, O. (2016). Investigating the impact of key dimensions
of service quality on customers’ satisfaction and loyalty: Evidences from the restaurant
industry in Sudan. Industrial Management Institute Journal Marketing and Branding Research,
pp. 153-165.
47
Pettijohn, L.S., Pettijohn, C.E. & Luke, R.H. (1997) An Evaluation of Fast Food Restaurant
Satisfaction: Determinants, Competitive Comparisons, and Impact on Future Patronage.
Journal of Restaurant & Foodservice Marketing, 2, 3-20.
http://dx.doi.org/10.1300/J061v02n03_02
87
hotels and related lodging facilities once said that it costs 10$ to get a guest to come
and 1$ is the special effort to get one return (Stevens, Knutson and Patton, 1995)48.
Customer satisfaction indicates whether a customer will return to the restaurant or not.
A high level of customer satisfaction leads to an increase in repeat patronage, brand
loyalty, as well as attracting potential customers by enhancing an organization’s
reputation (Yen Nee Ng, 2005). According to a study conducted by Rust & Zahorik
(1993),49 numerous publications have supported the fact that satisfaction is a
prerequisite for retention of customers (cited in Hennig-Thurau & Klee, 1997)50.
Customer satisfaction and trust have strong positive associations with customer
retention and word-of-mouth (Ranweera & Prabhu, 2003)51. In the study of the
impact of customer satisfaction and trust on retention and positive word-of-mouth,
Ranweera and Prabhu (2003) have found that satisfaction by far is a strong driver of
retention relative to trust.
Zeithaml et al. (1996)52 found that favourable behavioural intention is associated with
a service provider’s ability to get its customers to say positive things about them,
recommend them to other customers, remain loyal to them, spend more time with the
service providing company and alacrity to pay price premiums (cited in Ramseook-
Munhurrun, 2012)53. Higher the score on customer satisfaction, the more likely it is
that the customer will not only return but also recommend the restaurant to others
48
Stevens, P., Knutson, B., & Patton, M. (1995). Dineserv: A Tool for Measuring Service Quality in
Restaurants. Cornell Hotel and Restaurant Administration Quarterly, 36(2), 56–
60.doi:10.1177/001088049503600226
49
Rust, R.T. and Zahorik, A.J. (1993) Customer Satisfaction, Customer Retention, and Market Share.
Journal of Retailing, 69, 193-215. http://dx.doi.org/10.1016/0022-4359(93)90003-2
50
Henning-Thurau, T. & Klee, A. (1997). The impact of customer satisfaction and relationship quality
on customer retention: A critical reassessment and model development. Psychology and
Marekting, 14(8), pp. 737-764.
51
Ranaweera, C., & Prabhu, J. (2003). The influence of satisfaction, trust and switching barriers on
customer retention in a continuous purchasing setting. International Journal of Service
Industry Management, 14(4), 374–395.doi:10.1108/09564230310489231
52
Zeithaml, V., Berry, L. & Parsuraman. (1996). The Behavioural Consequences of Service Quality.
Journal of Marketing, 60(2), https://doi.org/10.1177/002224299606000203
53
Ramseook-Munhurrun, Prabha, Perceived Service Quality in Restaurant Services: Evidence from
Mauritius (2012). International Journal of Management and Marketing Research, Vol. 5, No.
3, pp.1-14 (2012). Available at SSRN: https://ssrn.com/abstract=2162572
88
(Stevens, Knutson & Patton, 1995)54. According to Stevens, Knutson and Patton
(1995), 91% of restaurants dissatisfied customers will never come back, and they will
communicate the same to eight to ten others about their negative experiences.
Ranaweera & Prabhu (2003) admonishes that satisfactory service recovery may also
not suffice as a panacea to regain the lost trust of customers on service quality.
In the course of the research conducted for measuring tourist satisfaction with restaurant
services, Yuksel & Yuksel (2002)55 indicated that consumer satisfaction research can
provide an organization with useful information about various service attributes
considered important by customers, assesses the relative importance of these attributes
in consumer decision making and also evaluates how well an organization is meeting
customers’ needs. Successfully being able to judge customer’s satisfaction levels and
to apply that knowledge is a critical starting point to establishing and maintaining long-
term customer retention (Yuksel & Yuksel, 2002). If higher levels of satisfaction do
not relate to repeat purchase and higher levels of purchase, then it is possible that the
resources are wasted (Pettijohn et al., 1997)56. Inadequate attention has been given to
elements that can improve satisfaction and repeat business for an organization (Yuksel
& Yuksel, 2002).
Realizing the importance of loyal customers who are unaffected by customers'

promotions willing to spend more and purchase frequently and are also more likely to
spread positive word-of-mouth have captured the inquisitiveness of academicians and
practitioners worldwide. Various researches (Fornell & Wernerfelt, 198757,
Reichheld & Sasser, 199058) substantiate the fact that customer retention has resulted
54
60.doi:10.1177/001088049503600226
55
Yuksel, A. and Yuksel, F. (2002) Measurement of Tourist Satisfaction with Restaurant Services: A
Segment-Based Approach. Journal of Vacation Marketing, 9, 52-68.
56
57
Fronell, C. & Wernerfelt, B. (1987). Defensive Marketing Strategy by Customer Complaint
Management: A Theoretical Analysis. Journal of Marketing Research, 24(4), pp. 337-346.
58
Reichheld, F. and Sasser, E. (1990) Zero Defections: Quality Comes to Services. Harvard Business
Review, 68, 105-111.
89
in an increase in the profitability for firms to survive in a mature market with intensified
competition in principally in service industries such as banking, hotels and airlines,
telecommunication etc. (cited in Jiang & Rosenbloom, 200359). The findings of the
research conducted by Reichheld & Sasser (2000) postulates that customer retention
by 5% can increase profits by 25-95%. Thus, it has become imperative for restaurateurs
evermore to focus their efforts on retaining customers.
Researchers define customer retention as the intention of the customer to repurchase

(Sahadev, 2011) and remaining loyal to a particular business (cited in Al-Tit, Ahmad.
2015)60.
Vilma Tamuliene & Ingrida Gabryte (2014)61 in the research titled “Factors
influencing customer retention: a case study of Lithuanian mobile operators” aims
at understanding the factors which influence the choice of customers to repeat their
future transactions with a particular business and enlighten on the solemnity of those
factors as they strive to retain their customers. The study considers customer
satisfaction as the most important factor influencing the quality of relationship with the
customer and the switching costs as considered by the patron.
The findings provide evidence of the switching costs having the strongest influence on
the customer retention aspect followed by relationship quality. A customer realizes an
emotional loss as a result of giving up on good relationship quality and thus the research
admonishes businesses to focus on building better relationships with the customers and
creating a gratifying customer experience as it strongly influences customer retention
and satisfaction.
59
Jiang, P. and Rosenbloom, B. (2005), Customer intention to return online: price perception,
60
Al-Tit, Ahmad. (2015). The Effect of Service and Food Quality on Customer Satisfaction and Hence
Customer Retention. Asian Social Science. 11. 129-139. 10.5539/ass.v11n23p129.
61
Tamuliene, V., & Gabryte, I. (2014). Factors Influencing Customer Retention: Case Study of
Lithuanian Mobile Operators. Procedia - Social and Behavioral Sciences, 156, 447–
451.doi:10.1016/j.sbspro.2014.11.219
90
Overall the research concludes that there exists a positive relationship between factors
considered under the study, that is, customer retention, customer satisfaction, quality of
the relationship and switching costs.
According to a research (Jing Bo, Zhe, & Xuan-Xuan ,62 2008 in Tamuliene &
Gabryte, 2014) the important factors to be considered in the study of customer
retention as customer satisfaction, trust relationships, customers’ perception and also
the switching costs(the cost borne by the customer as a result of switching to other
brands). The findings of the research suggested that customer retention exerts a strong
influence over the above factors and thus, must be carefully studied by the businesses.
Zeithaml et al. (1996)63 found that, favourable behavioural intention is associated with
Munhurrun, 2012)64.
According to Tabish Ansari and Dr. Tariq Jalees65 in the research paper “Impact of
Service Quality and Restaurant Ambiance on Customer Loyalty: Measuring the
mediating effect of customer satisfaction” aim at understanding the role of the
atmosphere of the restaurant and the service quality on customer satisfaction.
Cronbach’s alpha was used to test the validity of the instrument and techniques used
were exploratory factor analysis and Confirmatory factor analysis.
62
Jing-Bo, S., Zhe, W., Xuan-Xuan, L. (2008). The driving factor of customer retention: Empirical
study on bank card. Proceedings of the Management Science and Engineering 15, 558-564.
63
64
65
Ansari, T.& Jalees, T. Impact of Service Quality and Restaurant Ambiance on Customer Loyalty:
91
Dr. A. R Krishnan and Mr. P. B. Govidarajan66 in the research paper titled “A Study
on Customer Retention strategies in Consumer Durable Goods” aims at discerning
the factors influencing customer retention with specific reference to consumer durable
brands. The objective of the research is to identify customers which are most profitable
and retaining them and vetting the factors which influence their choice of giving repeat
business.
The factors considered for the study which impact the customer experience and thereby
impacting customer retention are loyalty benefits, precluding the irritating factor in
service, exceeding the expectations, customer assistance, brand image, variety, and
benefits provided by the competitors, being in touch with the customers and maintain a
good customer relationship thereby securing emotional commitment.
Various brands of consumer durables like audio brands, washing machine brands, air
conditioner brands and refrigerator brands are considered under the study.
Survey method was utilized for data collection. Factor and regression analysis is used
for examining the relationship between the factors influencing retention and customer
retention. Brand image of the company is the major contributing factor in customer
retention. However regular interaction and emotional commitment have proved to be
less effective in ensuring customer retention for consumer durables except for
refrigerator brands.
Ahmad A. Al-Tit67 in the research paper titled “The Effect of Service and Food
Quality on Customer Satisfaction and hence Customer Retention” aims at
understanding the relationship between service quality and customer satisfaction by
measuring customer responses on SERVQUAL model and also aims at deciphering the
impact of customer satisfaction and customer retention.
66
Krishnan, A. & Govindarajan, P.(2013). A Study on Customer Retention Strategies in Consumer
Durable Goods. European Journal of Business and Management, 5(18).
67
Al-Tit, Ahmad. (2015). The Effect of Service and Food Quality on Customer Satisfaction and Hence
Customer Retention. Asian Social Science. 11. 129-139. 10.5539/ass.v11n23p129.
92
The study examines the criticality of service quality and food quality and its impact on
customer satisfaction and steps further by the understanding role of quality of a service
delivered on retention.
The sample for the research comprised mainly of students who were frequent visitors
to the10 selected restaurants in the city of Jordan. Respondents were asked to fill
questionnaires with 28 questions covering various dimensions of service quality
according to the SERVQUAL model. 283 questionnaires fit for further analysis were
analyzed to derive conclusions.
The findings can be interpreted as food quality and service quality has a significant
influence on customer satisfaction. Further, the findings supported the fact that quality
of service plays a determining role in customer retention.
According to Mohaydin, et al.68 in the research paper titled “Effects of Food Quality
on Customer Perceived Satisfaction Level and Mediating Effect of Food Safety on
Them” suggests that food quality and food safety are important factors influencing
customer satisfaction. The research was conducted by approaching students with the
questionnaire and it was realized that food safety is the mediating factor between food
quality and the satisfaction derived from it.
According to George Amoako, Emmanuel Arthur, Christiana Bandoh and Rachel

Katah69 in their research titled “The impact of effective customer relationship
management (CRM) on repurchase: A case study of (Golden Tulip) hotel (ACCRA-
GHANA)” aims at understanding how effort towards building a better relationship with
the customers.
68
Mohaydin, G., Chand, A., Aziz, B., Bashir, M., Irfan, J.( 2017). Effect of Food Quality on Customer
Perceived Satisfaction Level and Mediating Effect of Food Safety on Them. International
Journal of New Technology and Research, 3(1), pp. 34-41
69
Amoako, G., Arthur, E., Bandoh, C. & Katah, R. (2012). The impact of effective customer
relationship management (CRM) on repurchase: A case study of (GOLDEN TULIP) hotel
(ACCRA-GHANA). African Journal of Marketing Management, 4(1), pp. 17-29.
93
The main objective is to understand whether Customer Relationship Management helps

in securing customer loyalty. It aims at understanding the role of CRM in customer
satisfaction sufficient enough to retain the customer and eventually turning into a loyal
one.
For the purpose of the research, ordinary client and business clients were targeted with
2 different sets of questionnaires of Golden Tulip hotel located in Ghana. The
questionnaire was divided into part to collect responses with respect to awareness,
patronizing services, evaluation of services and customer satisfaction and their
intention to revisit.
The research utilizes the Critical Incident approach for collecting customer responses
to the service.
With the help of SPSS technology, the findings suggested that 90% of the respondents
were satisfied with the service of the hotel with 80% project willingness to even
recommend to their family and friends.
It was evident through the findings of the research that CRM bears a critical impact on
consumer behavior and assist customer acquisition, retention, loyalty and eventually
enhance the profitability. Effort towards building a qualitative and a long term
relationship with the customer aids in securing loyal of the customers.
Aldaihani, F. and Ali, N.70 in the research paper titled “Factors affecting Customer
Loyalty in the Restaurant Service industry in Kuwait City, Kuwait” discerns
influential factors promising customer loyalty to an extent. The objective of the research
is to understand the role of service quality, brand image and customer value on customer
loyalty among the restaurant industry in Kuwait. The research was undertaken by
collecting data through surveying 100 customers of restaurants in Kuwait.
The findings of the research paper suggest that there exists a positive relationship
between the three factors considered under study, that is, service quality, brand image
and customer value and retaining loyal customers. The research emphasizes on building
70
Aldaihani, F. & Ali, N. (2018). Factors affecting Customer Loyalty in the Restaurant Service
Industry in Kuwait City, Kuwait. Journal of International Business and Management, 1(2), 1-
14.
94
good relationships with customers and providing and maintaining high standards with
respect to service quality and good food to ensure loyal customers.
Eshghi et al (2007) as cited in Aldaihani, F. and Ali, N. (2018) describes customer

loyalty as a strong intention projected by the customer to provide repeat business to the
same company by purchasing their products repeatedly and as suggested by Liu et al.
(2011) (as cited in Aldaihani, F. and Ali, N., 2018) not only do loyal customers
guarantee repeat business to a company but will also bring in new customers by
recommending the product for consumption to others bringing new visitors to the outlet.
As suggested by various researches (Riecheld, 1996, Liu et, al., 2011 as cited in
Aldaihani, F. and Ali, N., 2018) loyal customers are critical when it comes to the
growth of the business.
Haghighi, Dorosti, Rahnama & Hoseinpour71 in the research paper titled

“Evaluation of factors affecting customer loyalty in the restaurant industry” aims at
understanding the impact of various aspects of customer service on customer trust and
in turn Customer retention and loyalty. The research aims at exploring factors affecting
customer loyalty in the restaurants and attempts to test the relationship between service,
quality, food quality, the ambience of the restaurant, appropriate pricing and customer
trust and loyalty.
The study is undertaken in Tehran and data is collected by surveying 268 respondents
at the Boof Chain restaurants in Tehran. For the purpose of data analysis and proving
hypothesis, Structural Equation Modelling (SEM) was used.
The findings of the research suggested the existence of a positive relationship between
factors under consideration, that is, food quality, service quality, restaurant atmosphere
and the fairness in the price charged and customer satisfaction and also on gaining
71
Haghighi, M., Dorosti, A., Rahnama, A. & Hosienpour, A. (2012). Evaluation of factors affecting
customer loyalty in the restaurant industry. African Journal of Business Management
Vol. 6(14), pp. 5039-5046.
95
customer trust. However, no significant relationship between the location of the

restaurant and customer satisfaction could be determined through data analysis.
Further, the study suggests that the quality of food was the most critical factor
influencing customer satisfaction.
A positive relationship between customer satisfaction and customer loyalty was evident
through the data analysis however, the existence of a strong relationship between
customer trust and customer loyalty could not be proved.
Naik & Gantasala (2010)72 in the research “Service Quality (SERVQUAL) and its
effect on Customer Satisfaction in Retailing” attempts to measure the service quality
in various retail formats using the SERVQUAL model.
SERVQUAL Model, one of the most popular scale utilized to measure the service
quality of various service-oriented industries was designed by Parsuraman, Zeithamal
and Berry in the year 1985. The model was designed with the objective of analyzing
the gap between customer expectation and customer perception of the service. The scale
includes 22 components representing five broad dimensions of the scale which is:
 Tangibles: Gauges the service on the basis of its physical aspects like appearance
of tangible facilities, equipment, appearance of the personnel including dressing
style, and written materials.
 Reliability: The ability to deliver the service promised in an accurate manner
 Responsiveness: This dimension gauges the service on the basis of promptness
with which the service is delivered to the customers and resolving customer queries
and complaints willingly.
 Assurance: the service quality in this dimension relies on the ability of the staff to
inspire trust and confidence by their knowledge and courtesy.
 Empathy: Empathy dimension of SERVQUAL refers to caring and an
understanding attitude towards customers’ needs and focusing on personalized
attention to each customer.
72
N Krishna Naik, C & Gantasala, Venugopal. (2010). Service Quality (Servqual) and its Effect on
Customer Satisfaction in Retailing Introduction -Measures of Service Quality. European
Journal of Social Sciences. 16(2), 239-251.
96
The research was undertaken by Naik & Gantasala (2010)73 of measuring service
quality in the retail sector suggests customized SERVQUAL model with respect to
various service sectors. The research aims at understanding and evaluating the various
service quality dimension to focus on which significantly influence customer
satisfaction.
The research findings suggested that customers have high expectations with respect to
the promptness of service, accuracy and security issues and lowest expectations with
respect to the ambience and the cleanliness maintained in the store. Promptness and
speed of the service strongly influence the satisfaction level, whereas the willingness
of the store staff to assist customers had a negligible impact on the overall customer
satisfaction.
Pete Stevens, Bonnie Knutson & Mark Patton (1995)74 developed a version of the
SERVQUAL scale known as DINSESERV which is a list of questionnaire
preponderating the most significant factors which influence customer perception with
respect to service quality at a restaurant.
The objective of the study is to design a Questionnaire model similar to original

SERVQUAL designed to measure the service quality on its various dimensions,
however, DINESERV is customized to the need of restaurants. Many researchers
implemented and tested the reliability of the model in various sectors including hospital
(Babakus & Mangold ,1989) tire store, business school placement centre, (Carman,
1990), banking (Cronin & Taylor, 1992, Sharma & Mehta, 2004), fast food (Cronin and
Taylor, 1992), discount and departmental stores (Finn and Lamb, 1991) (cited in Naik
& Gantasala, 2010)75. However, the model has been criticized repeatedly due to a lack
73
74
60.doi:10.1177/001088049503600226
75
97
of compatibility with other sectors and suggested customized versions of the same for
varied sectors (Lapierre, et. al., 1996)76.
Consequently, researchers developed a customized SERVQUAL to adapt to the needs

of each sector with DINESERV evolving for the restaurants.
A questionnaire with 29 questions is designed to measure quality under every aspect

for its dimensions with 10 questions representing the tangibility aspect of the service,
5 questions representing the reliability aspect, 3 representing the responsiveness aspect,
5 reflecting the assurance of the service and 5 representing the empathy in the service
provided.
On testing the model, assurance scored highest in terms of reliability of the dimension
measurement followed by Empathy, Reliability, Responsiveness and Tangibles
respectively. Further, the researchers suggest the model to be cost-effective, reliable
and useful to measure the service on various dimensions and improve where it falls
short so as to ensure customer retention.
Higher the score on customer satisfaction, more likely it is that the customer will not
only return but also recommend the restaurant to others. According to the researchers,
91% of restaurants dissatisfied customers will never come back, and they will
communicate the same to eight to ten others about their negative experiences.
Bolanle Odunlami77 in the research paper titled “Impact of Customer Satisfaction on

Customer Retention: A Case Study of a Reputable bank in Oyo, Oyo State, Nigeria”
makes an attempt to test the existence of an evident relationship between customer
satisfaction and customer retention. According to the researcher, the degree to which
customer is satisfied influences his choice of doing repeat business with the same
business which further bears a significant impact on the sales, revenue and ultimately
76
Lapierre, J., Filiatrault, P. & Perrien. J. Research on service quality evaluation: evolution and
methodological issues, Journal of Retailing and Consumer Services, 3 (2) (1996), pp. 91-98
77
Odunlami, B. (2015). Impact of Customer Satisfaction on Customer Retention. A Case Study of a
reputable Bank in Oyo, Oyo State. Nigeria. International Journal of Managerial Studies and
Research, 3(2), pp. 42-53.
98
the profitability. According to the research, a dissatisfied customer communicates poor

service experience to others, which in turn tarnishes the brand image.
As suggested by La Barbera and Mazursky (1983)78 organizations should strive to

build a long term relationship with customers to derive customer satisfaction, which
eventually results in customers reluctantly continuing repeat business with the
organization.
Researchers (Cronin & Taylor, 1992,79 Taylor and Baker, 199480) have suggested
the paramount importance of service quality in the service industry, where unlike the
manufacturing industry and a lot of emphasis is placed on the quality of service
delivered and its impact customer satisfaction. The research suggests the existence of a
strong relationship between service quality and customer satisfaction.
Spreading a good word of mouth becomes easier when customers are satisfied, ergo the
satisfaction aspect should not be neglected. (Mohsan et al., 2011)81
The research aims at achieving 2 main objectives, firstly examining the existence of the
relationship between customer satisfaction and customer retention secondly assessing
the impact of customer satisfaction on customer retention.
The research has elicited information from primary as well as secondary sources. The
primary data was collected by surveying accountholders of a reputed bank in Oyo and
secondary data was sought from journals, periodicals and other related materials. For
the purpose of testing the significance and intensity of relationship regression analysis
78
LaBarbera, P. A., & Mazursky, D. (1983). A longitudinal assessment of consumer
satisfaction/dissatisfaction: The dynamic aspect of the cognitive process. Journal of
Marketing Research, 20(4), 393–404. https://doi.org/10.2307/3151443
79
Cronin. Jr, J. & Taylor, Steve. (1992). Measuring Service Quality - A Reexamination And Extension.
The Journal of Marketing. 56. 55-68. 10.2307/1252296.
80
Taylor, S. A., & Baker, T. L. (1994). An assessment of the relationship between service quality and
customer satisfaction in the formation of consumers' purchase intentions. Journal of
Retailing, 70(2), 163–178. https://doi.org/10.1016/0022-4359(94)90013-2
81
Mohsan, F, Nawaz, M.M, Khan, M.S, Shallkat, Z and Aslam, N.(2011) Impact of customer
satisfaction on customer loyalty and intentions to switch: Evidence from banking sector of
Pakistan. International Journal of business and social science, 2(16).
99
were used and ANOVA and t-statistics was used for hypothesis testing. 107
questionnaires were found of utility for further analysis.
The findings of the research suggested the existence of a strongly positive relationship
between customer satisfaction and customer retention as most of the respondents were
in favour of the statement. The research findings further depict customer satisfaction
bearing a strong positive impact on customer retention.
Faizan Mohsan, Muhammad Musarrat Nawaz, M. Sarfaraz Khan, Zeeshan

Shaukat & Numan Aslam82 in the research paper titled “Impact of Customer
Satisfaction on Customer Loyalty and Intentions to Switch: Evidence from Banking
Sector of Pakistan” attempts to study the relationship between customer satisfaction,
customer retention, customer loyalty and triggers to switch to competitors. As per the
definition customer satisfaction is determined how well the needs of the customers are
met, whereas, customer loyalty is determined by the choice of the customer to engage
in a long term relationship and provide repeat business to the organization. As per
Anderson et al. (1997)83, the holistic evaluation of the service is what defines customer
satisfaction. Satisfaction may be defined differently as customer reaction to the service
received compared to expectations,
The research aims at understanding the importance of customer satisfaction banking

industry and its impact on customer retention and loyalty. The research further tries to
understand the intention of a satisfied customer to switch to the competitor.
For the purpose of collecting data, the survey method was utilized with questions asking
respondents to rate their level of customer satisfaction, intention for repeat purchase,
customer loyalty and intention to switch on a Likert scale. Data was collected from 120
bank account holders in the banks of Pakistan. For the purpose of data analysis, SPSS
software and Microsoft Excel has been used.
82
Mohsan, F, Nawaz, M.M, Khan, M.S, Shallkat, Z and Aslam, N.(2011) Impact of customer
satisfaction on customer loyalty and intentions to switch: Evidence from banking sector of
Pakistan. International Journal of business and social science,2(16).
83
Anderson, E., Fornell, C. & Rust, R. (1997). Customer Satisfaction, Productivity, and Profitability:
Differences Between Goods and Services. Marketing Science, 16(2), pp. 129-145.
100
The most critical finding of the research is evidence of the existence of a positive
relationship between customer satisfaction and customer loyalty. The intention to
switch reflects a negative relationship with customer satisfaction.
The paper suggests that dissatisfaction is the primary reason due to which customers
switch to competitor brands, which makes satisfaction even more critical which assures
repeat business as supported by the findings of research undertaken by Ibojo (2015)84.
The research findings state that it is inevitable to gain customer loyalty from an
unsatisfied customer. Customer satisfaction is a prerequisite for customer loyalty.
However, the research further admonishes that satisfaction may not necessarily
guarantee customer loyalty.
Chatura Ranweera and Jaideep Prabhu85 in the research titled “The influence of
satisfaction, trust and switching barriers on customer retention in a continuous
purchase setting” examines the relationship between customer satisfaction and trust
and its impact on intention to switch and the impediments to it switching. The research
aims at understanding how the harmony of customer satisfaction and trust along with
barriers to switching influence customer retention. Customer retention as described by
the researcher as the propensity to stay with the business.
The research starts with investigating the relationship between customer satisfaction
and retention. The research then moves towards understanding the influence of trust
bears upon customer retention. The research aims at understanding which of the two
influences customer retention more powerfully. The study also investigates whether the
existence of a high switching barrier can demotivate customers from switching and
herby ensure customer retention.
Understanding the fact, that satisfaction alone may not be a strong predictor of customer
retention, the study further examines the level of trust required to accompany the
84
IBOJO, Odunlami, B. (2015). Impact of Customer Satisfaction on Customer Retention: A Case
Study of a Reputable Bank in Oyo, Oyo State. Nigeria. International Journal of Managerial
Studies and Research , 3(2), pp 42-53
85
101
satisfaction level to ensure customer retention and also the degree of complication
attached to switching which assures retaining customers.
For such kind of a research, it becomes important to select a specific industry which is
characterized by monopoly making it difficult for the customers to switch, consequently
the telephone industry in U. S. A, the area of study is known to be closed to new entrants
making it well-nigh a monopoly. A questionnaire comprising key aspects of customer
satisfaction, trust, switching barriers and customer retention is prepared and responses
are measured on the Likert scale. Open-ended questions were used to understand the
response to critical incidents. The questionnaires were then filled out by 2,850 service
users of the U. S. A. telephone service out of which 435 completely responded
questionnaires was further used for analysis. Regression analysis was used to test the
existence and intensity of the relationship.
The research suggests organizations to focus on customer satisfaction as well as trust

as they share a significant relationship with customer retention. The research findings
further depict that the impediments to switching have an unexpectedly stronger relation
with customer retention compared to that with customer satisfaction.
The study admonishes that an organization may be able to retain a dissatisfied customer
due to high barriers to switching, however, a recovery process of transforming the
perception of a customer who has gone through a bad service experience may not be
adequate to retain a dissatisfied customer.
102
2.6 Customer Relationship Management
Wajahat Noor86 in the research paper titled “Customer Experience and Relationship
Management of Restaurants” aims at understanding the customer relationship
management efforts made by the restaurants and its impact on the overall dining
experience and understanding the factor which plays a critical role in enhancing the
customer experience. The research aims to explore and understand the role of quality
service, ambience, loyalty programs and better communication with customers on the
holistic customer experience.
Non-probability convenience sampling method was used to select respondents to the

survey. The respondents have selected from Dhaka city with a frequent experience of
dining at a restaurant bearing in mind the respondents, awareness and affordability. The
survey comprised of questions measuring responses on a Likert scale with respect to
service quality, pricing, embellishment, loyalty benefits of the restaurants.
The research suggests adopting Total Quality Management to deliver a better customer
experience. Food quality projected the most significant impact on the dining experience
as per the recorded responses followed by service quality, loyalty schemes, price and
lastly atmosphere respectively.
Successfully being able to judge customer satisfaction levels and to apply that
knowledge is a critical starting point to establishing and maintaining long-term
customer retention (Yuksel & Yuksel, 2002)87. If higher levels of satisfaction do not
relate to repeat purchase and higher levels of purchase, then it is possible that the
resources are wasted (Pettijohn et al., 1997).
The findings of the research conducted by Reichheld & Sasser (1990) postulates that
customer retention by 5% can increase profits by 25-95%. Thus, it has become
imperative for restaurateurs evermore to focus their efforts on retaining customers.
86 Noor, W. (2015). Customer Experience and Relationship Management of Restaurants.
87
103
Various researches (Forner & Wernerfelt, 198788, Reichheld & Sasser, 199089)
substantiate the fact that customer retention has resulted in an increase in the
profitability for firms to survive in a mature market with intensified competition in
principally in service industries such as banking, hotels and airlines, telecommunication
etc. (cited in Jiang & Rosenbloom, 200390). The findings of the research conducted
by Reichheld & Sasser (1990)91 postulates that customer retention by 5% can increase
profits by 25-95%. Thus, it has become imperative for restaurateurs evermore to focus
their efforts on retaining customers.
In times of volatility, uncertainty and dynamism the survival, growth and advancement
of a company are dependent on the focus on providing high customer satisfaction, and
lack of knowledge about their customer satisfaction levels companies are ending up
losing business (Ducik & Kijevcanin, 2012)92. Customer satisfaction is the basis for
customer loyalty and retention (Yen Nee Ng, 2005)93.
“Customer is the king”, a phrase which is rightly applicable to the market and any
business which dares to ignore this may cost him his empire built by years of hard work.
Every business needs to keep up with customer demands. With every business
espousing the Brick and Click model to keep up the pace with the technology which
has become the growing need of the hour on account of growth in the number of the
sales of smartphones, deeper internet penetration among Tier II and Tier III cities and
changing consumer lifestyle contributing to this. Restaurants being no different has
88
89
Review, 68, 105-111.
90
91
Review, 68, 105-111.
92
Dukic, Suzana & Velida Kijevčanin. (2012). ―Service Quality as Determinant of Customer
Satisfaction. FACTA UNIVERSITATIS Series: Economics and Organization, 9(3), pp. 311 –
325
93
Endorsement in University Dining Facilities. Oklahoma State University Thesis. Retrieved from
https://shareok.org/bitstream/handle/11244/9694/NG_okstate_0664M_1503.pdf?sequence=1&is
Allowed=y
104
made restaurateurs realize the fact that to survive in the market they need to make a
shift online marking their presence offline as well as online.
In such turbulent times for the restaurant industry with demonetization, strict fire safety
regulations, liquor ban on highways and rollback of the input tax credit, Online Food
Delivery apps have emerged as a boon where restaurateurs lacking the acumen and
know-how in technology can use the platform created by these apps to keep up with
customer demands for attracting and retaining them.
According to a study by Papiernick (1996), the battle for market share in the restaurant
industry will intensify (cited in Pettijohn et al., 1997)94. According to Gupta et al.
(2007), the link between customer satisfaction and repeat buying is an important
contributor to a restaurant’s profits.
Bill Marriott, the Executive Chairman of Marriott International an American

multinational diversified hospitality company that manages and franchises a number of
hotels and related lodging facilities once said that it costs 10$ to get a guest to come
and 1$ is the special effort to get one return (Stevens, Knutson and Patton, 1995)95.
Customer satisfaction indicates whether a customer will return to the restaurant or not.
A high level of customer satisfaction leads to an increase in repeat patronage, brand
loyalty, as well as attracting potential customers by enhancing an organization’s
reputation (Yen Nee Ng, 2005)96. According to a study conducted by Rust & Zahorik
94
95
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Endorsement in University Dining Facilities. Oklahoma State University Thesis. Retrieved
from
https://shareok.org/bitstream/handle/11244/9694/NG_okstate_0664M_1503.pdf?sequence=1
&isAllowed=y
105
(1993),97 numerous publications have supported the fact that satisfaction is a

prerequisite for the retention of customers (cited in Hennig-Thurau & Klee, 1997)98.
Customer satisfaction and trust have strong positive associations with customer
retention and word-of-mouth (Ranweera & Prabhu, 2003). In the study of the impact
of customer satisfaction and trust on retention and positive word-of-mouth, Ranweera
and Prabhu (2003) have found that satisfaction by far is a strong driver of retention
relative to trust.
Zeithaml et al. (1996)99 found that favourable behavioural intention is associated with
Munhurrun, 2012)100.
Ranaweera & Prabhu (2003)101 admonishes that satisfactory service recovery may
also not suffice as a panacea to regain the lost trust of customers on service quality.
In the course of the research conducted for measuring tourist satisfaction with restaurant
services, Yuksel & Yuksel (2002)102 indicated that consumer satisfaction research can
provide an organization with useful information about various service attributes
considered important by customers, assesses the relative importance of these attributes
97
Rust, R.T. and Zahorik, A.J. (1993) Customer Satisfaction, Customer Retention, and Market Share.
Journal of Retailing, 69, 193-215. http://dx.doi.org/10.1016/0022-4359(93)90003-2
98
Henning-Thurau, T. & Klee, A. (1997). The impact of customer satisfaction and relationship quality
on customer retention: A critical reassessment and model development. Psychology and
Marekting, 14(8), pp. 737-764.
99
100
101
102
106
in consumer decision making and also evaluates how well an organization is meeting
customers’ needs. Successfully being able to judge customer satisfaction levels and to
apply that knowledge is a critical starting point to establishing and maintaining long-
term customer retention (Yuksel & Yuksel, 2002). If higher levels of satisfaction do
not relate to repeat purchase and higher levels of purchase, then it is possible that the
resources are wasted (Pettijohn et al., 1997)103. Inadequate attention has been given to
elements that can improve satisfaction and repeat business for an organization (Yuksel
& Yuksel, 2002).
Realizing the importance of loyal customers who are unaffected by customers'

promotions willing to spend more and purchase frequently and are also more likely to
spread positive word-of-mouth have captured the inquisitiveness of academicians and
practitioners worldwide. Various researches (Forner & Wernerfelt104, 1987,
Reichheld & Sasser, 1990105) substantiate the fact that customer retention has resulted
in an increase in the profitability for firms to survive in a mature market with intensified
competition in principally in service industries such as banking, hotels and airlines,
telecommunication, etc. (cited in Jiang & Rosenbloom, 2003)106. The findings of the
research conducted by Reichheld & Sasser (2000)107 postulates that customer retention
by 5% can increase profits by 25-95%. Thus, it has become imperative for restaurateurs
evermore to focus their efforts on retaining customers.
103
Satisfaction: Determinants, Competitive Comparisons, and Impact on Future Patronage. Journal
of Restaurant & Foodservice Marketing, 2, 3-20.
104
105
Review, 68, 105-111.
106
107
Review, 68, 105-111.
107
Aia Jean Taguinod108 in the research paper titled “The Effects of Coupon Promotion
on Customer Retention in Independent Ethnic Restaurants” aims at understanding
the impact of coupon promotion on attracting and retaining customers. The study
investigates the impact of the coupon promotion on return intention and understanding
the factors influencing revisit in ethnic restaurants in Rhode Island. The methodology
included surveying customers at ethnic restaurants after they place their orders. A
convenience sampling method was used for selecting customers. The findings of the
study suggest that creativity in the promotion can capture the attention of the customers
however; it may prove of limited use when it comes to retaining customers.
Hany Abdelhamied109 in the research paper titled “The Effect of sales promotion on
post promotion behaviours and brand preferences in fast-food restaurants” aims at
understanding the role of promotions in the restaurants on the behaviour of the
customers and also change in the behaviour after the promotion period is over. It tries
to investigate the existence of any relationship between promotion and customer
loyalty. The survey method was used to collect data from the customers of fast-food
restaurants.
The findings of the study suggest that promotion is favourable for the restaurant when
it comes to reminding customers of the fast-food outlets and encouraging frequent visits
thereby witnessing more footfalls and increase in the visits, however, it proves to be
not of much significance when it comes to preference for a particular brand, especially
in the case when the promotion period expires.
108
Taguinod, Aia Jean, "The Effects of Coupon Promotion on Customer Retention" (2016). MBA
Student Scholarship. Paper 49. http://scholarsarchive.jwu.edu/mba_student/49
109
Abdelhamied, Hany. (2013). The effects of sales promotion on post promotion behaviors and brand
preferences in fast food restaurants. Tourismos. 8. 93-113.
108
2.7 Word of Mouth Endorsement
According to Ryu, Han and Jang (2010) (Cited in Ansari & Jalees, 2018)110 a
satisfied customer wields the power to bring ten new customers through their positive
influence and a dissatisfied customer can take ten customers of the restaurant through
the negative influence.
According to Brown and Reingen (1987)111, word-of-mouth plays an influential role

in shaping the attitude of consumers and determines consumer behaviour (cited in
Harrison-Walker, 2001)112. Findings by Katz and Lazarsfeld in the year 1955
suggests the significance of WOM over other promotional mediums claiming WOM is
twice as powerful than radio advertising in terms of influencing a customer to switch
brands, further suggesting WOM to be seven times more powerful than personal selling
(cited in Harrison-Walker, 2001). Adding more credence to the supremacy of WOM
is the research conducted by Day (1971), results on the computation of WOM being
nine times more effective than advertising in transforming negative or neutral
perception into positive attitudes (cited in HarrisonWalker, 2001).
Customer Expansion refers to the process of creating extra value from an additional
customer base by either increasing the amount of their purchase by quantity or
increasing the consumption of existing purchase (Doorn & Verhoef, 2010)113. Existing
customer projects more willingness to buy and hence this can be exploited as an
opportunity to serve existing customers at a lower cost. In fact, research suggests that
110
Ansari, T.& Jalees, T. Impact of Service Quality and Restaurant Ambiance on Customer Loyalty:
111
Brown, J.J. and Reingen, P.H. (1987) Social Ties and Word-of-Mouth Referral Behavior. Journal of
Consumer Research, 14, 350-362. https://doi.org/10.1086/209118
112
Harrison-Walker, L. (2001). The Measurement of Word-of-Mouth Communication and an
Investigation of Service Quality and Customer Commitment as Potential Antecedents. Journal
of Service Research, 4(1), pp.60-75.
113
Van Doorn, J., Lemon, K. N., Mittal, V., Nass, S., Pick, D., Pirner, P., & Verhoef, P. C. (2010).
Customer engagement behavior: Theoretical foundations and research directions. Journal of
Service Research, 13(3), 253–266.
109
less number of customers leaves organizations adopting customer expansion (Doorn &
Verhoef, 2010).
Competing with international franchises and catering to the demand for a variety of
cuisine by the customers has compelled casual dining restaurants to come with similar
products and variants of the core product. Contemporary times are marked by agile
innovation and the restaurant industry is no different from this, as it requires to adapt
to be in the race. However, innovation requires careful analysis of customer taste and
preferences considering the nature of the business. Unlike the manufacturing industry,
the service industry does not incur high costs in the development of a new product and
also allows them to test check on a small scale before commercialization. For
restaurants, the best market for test checking can be heir loyal and honest regular
customers.
Praveen Moyal and Dr. Swati Mishra114 in the research paper titled “Factors
affecting Positive and Negative Word of Mouth in Restaurant Industry” aims at
determining the variables responsible for positive and negative word of mouth. The
research aims at examining the relationship between various attributes and students’
satisfaction studying at a university. The research further studies the impact of the
derived satisfaction on the word of mouth engaged in by these students.
H. S. Sethu and Bhavya Saini115 in the research paper titled “Customer Perception
and Satisfaction on Ordering Food via Internet, a case on Foodzoned.com, in
Manipal” aims at understanding customer’s perception, satisfaction and behaviour
towards online food ordering and suggest the platforms and parties engaged in
delivering such services. The study is restricted only to the city of Manipal. The
114
Moyal, P & Mishra, S. (2018). Factors Affecting Positive and Negative Word of Mouth in
Restaurant Industry. International Journal of Trend in Scientific Research and Development,
2(4), pp. 985-989.
115
Sethu, H. & Saini, B. (2016). Customer Perception and Satisfaction on Ordering Food via Internet, a
Case of Foodzoned.com, in Manipal. Proceedings of the Seventh Asia-Pacific Conference on
Global Business, Economics, Finance and Social Sciences (AP16 Malaysia Conference).
Paper ID:KL631.
110
research attempts to study the popularity of online food ordering among college
students. A non-probability convenience sampling method adopted.
All the respondents surveyed under the study used the services of Online Food ordering
and the results of the survey indicated that the opinion of family and friends strongly
influenced the purchase decision.
The research recommends the service providers to maintain the overall quality of the
service level as most of the respondents responded to share easy access to the internet
facilities which promises a huge market potential for the Online Food Delivery services.
Julie Zhang, Zili Zhang and Rob Law116 in the research paper titled “Positive and
Negative word of mouth about Restaurants: Exploring the Asymmetric Impact of the
Performance of Attributes” investigates the relationship between attributes of
restaurant performance and word-of-mouth. The attributes under study are dining
experience, food, physical environment, price, and employee service. The findings of
the study suggest food, service quality, and physical environment have a significant
impact on positive word of mouth. The study strongly supports the fact that the
attributes have an asymmetric impact on the positive and negative word of mouth.
According to the research undertaken by Pruden & Vavra in the 2004117 Word of
Mouth endorsement takes place in three phases, that is awareness, information
gathering and decision –making and considers Word-of-mouth endorsement as the most
reliable source when it comes to information gathering and decision-making. Further,
the research findings suggest that 69% respondents admitted the fact that their decision-
making process was significantly influenced by referrals in case of their choice of
restaurants.
116
Zhang, J., Zhang,Z., & Law, R. (2014). Positive and Negative Word of Mouth about Restaurants:
Exploring the Asymmetric Impact of the Performance of Attributes. Asia Pacific Journal of
Tourism Research.
117
Pruden, D. R. & Vavra, T. G. (2004). Controlling the grapevine: how to measure and manage word
of mouth. Marketing Management, pp. 24-31.
111
Anton Qvist (2009)118 in the thesis topic “Online word-of-mouth influences on brand
perceptions” aims at understanding the impact of Word of Mouth on the Restaurant
industry and the degree of control they possess over the WOM spreading over the online
platforms.
The research highlights the case of the tarnished image of Lehtovarra and Nuevo Latino
as the two restaurants hauled the consequences of a poor Word-of Mouth endorsement
apparently, due to the plausible influence of a bad Word-of-mouth. Ergo, it becomes
critical for restaurants and similarly any other business which is subject to a word of
mouth to secure good Word-of-Mouth, especially sectors who do not rely much on
marketing strategies for promotion, but on word of mouth for business and the service
encounter determines the probability of repeat business from the customer.
The study further considers WOM as the most influential factor when it comes to
making buying decisions in the market.
As per the research undertaken by Ferguson (2008)119, most of the growing private
companies rely on word of mouth technique to attract business and defines viral
marketing, Word of mouth spread through online channels as the defining trend of the
decade.
According to a research, (Swanson & Kelley, 2001, cited in Anton Qvist, 2008120) a
single failure in delivering a service and failing on service recovery can prove fatal to
the business as it may lead to negative word-of-mouth and may also eventually lose an
actual customer along with many prospective customers further stating that most of the
customers believe that the service failure resulted due to external factors like seller
which will tend to repeat the incident again and believe its controllable may complain.
118
Qvist, A. (2009). Online word-of-mouth Influences on brand perceptions and choices. Haaga-Helia
Journal.
119
Ferguson, R. (2008). Word of mouth and viral marketing: taking the temperature of the hottest
trends in marketing. Journal of Consumer Marketing, 25(3), 179–182.
doi:10.1108/07363760810870671
112
Muneer Alrwashdeh, Okechukwu Lawrence Emeagwalli and Hasan Yousef

Aljuhmani121 in the research paper titled “The effect of electronic word of mouth
communication on purchase intention and brand image: An applicant smartphone
brands in North Cyprus” aims at understanding the influence of electronic word of
mouth on the brand image and on the purchase intention. For primary data collection,
402 responses to the survey are selected to which Structural Equation Modelling is
applied for further analysis. The findings confirm the significant influence of electronic
word of mouth on purchase intention by impacting the brand image.
Ahmad, Vveinhardt & Ahmed (2014)122 in the research paper the “Impact of Word
of Mouth on Consumer Buying Decision” aims to understand the positive and negative
and the overall impact of Word of mouth in Karachi, Pakistan. Ahmad et al. (2014)
suggests Word of Mouth to be the most influential force acting upon other’s views,
thoughts and ultimately wield the power to impact an individual’s decision. Customers
are skeptical over the choice they make solely on the basis of advertisements and what
the company wishes to show them. They seek out some reliable guidance to look
beyond what the brand projects itself to be and what it really is, thereby relying more
on the users of the products themselves. Customers find it comforting to get a review
of the product from the first-hand experience of the services.
According to the findings of the research undertaken by Martsen and Gronholdt

(cited in Kundu & Rajan, 2017)123, it is evident that the positive Word-of-mouth
tends to have a strong impact on the buying behaviour compared to negative word-of-
mouth. The research focuses on the influence of Word-of-mouth on emotions implying
the theory of reasoned action.
The findings of research (Gruen et al. as cited in Kundu & Rajan, 2017), suggests
that the word of mouth referred to as know-how exchange between customers in the
121
Alrwashdeh, M., Emeagwali, O. & Aljuhmani, H. (2019). The effect of electronic word of mouth
communication on purchase intention and brand image: An applicant smartphone brands in
North Cyprus. Management Science Letters, 9. doi: 10.5267/j.msl.2019.1.011
122
Ahmad, N., Vveinhardt, J. & Ahmed, R. (2014). Impact of Word of Mouth on Consumer Buying
Decision. European Journal of Business and Management, 6(31), 394-403.
123 Kundu, S. & Rajan, S. (2017). Word of Mouth: A Literature Review. International Journal of
Economics and Management Sciences, 6:6. doi: 10.4172/2162-6359.1000467
113
research has a strong influence on the prospective customers’ perception about the
value offered by the firm and is considered as the most reliable source of information.
Further the research wields a strong influence over the future intentions of the
customers.
Haroldo de Sa Medeiros, Larissa Ananda Paiva Maciel and Mariluce Paes de

Souza124 in the research paper titled “Word-of-Mouth Communication in the Online
Purchasing Decision Process” aims at understanding the influence of positive and
negative word-of-mouth at various stage of consumer decision-making process
considering from need recognition to post-purchase evaluation while making an online
purchase. For the purpose of data collection, 248 survey forms were filled out and
further analysed by apply Confirmatory Factor Analysis. The findings of the study
indicate word-of-mouth to have a strong influence on the evaluation of alternatives,
purchase and post-purchase stage of online purchase decision making process.
2.8 Online Reviews
According to a research paper by Michael Luna125 titled “Reviews, Reputation and

Revenue: The Case of Yelp.com” state the increase in the rating by a single star can
result in a 5-9% increase in the revenue. Other significant information substantiated by
the research is that consumers tend to pay more attention to reviews containing more
information and are responsive to the qualitative changes that are obvious.
As per research initiated by Website Builder 61% of customers read through the online
reviews about the restaurant among which about 34% choose a restaurant just on the
basis of the online reviews shared through peer-reviewed websites, mostly ignoring off
the restaurant website or the information shared on social media pages.
124
Medeiros, H, Maciel, L & de Souza, M. (2019). Word-of-mouth Communication in the Online
Purchasing Decision Process. Sustainable Business International Journal, 83.
doi: 10.22409/sbijournal2019.i82.a27457
125
Luna, M. (2016). Reviews, Reputation, ad Revenue: The Case of Yelp.com. Harvard Business
School.
114
As per the research undertaken by Dr. Jean Phillipe Weisskopf and Philippe
Masset126 in the web research article titled “Restaurant Reviews: Their Use and Their
Impact on Business” states that the performance of the hospitality industry is subject
to customer experience and customer review is the least expensive source of
information which can be explored with little or no efforts.
The research further indicates customer reviews as helpful as they reveal the risk and
remorse of the potential customers by letting them know what to expect out of the
service. Tracking the reviews can help restaurateurs to know the opportunities and risks
and can increase the hype by exploiting the positive reviews, to improve the quality and
demand. However, the reviews may not always be reliable and thus needs to be
implemented upon with discretion.
According to a research conducted by Fahri Karakaya and Nora Ganim Barnes127

in the research paper titled “Impact of Online reviews of customer care experience on
brand or company selection” aims at understanding the impact of customer reviews of
their experience posted online on the choice for selection of a particular brand or the
company and how it is acted upon by the respective companies. The research utilizes
Structural Equation Modeling for analyzing respondents of 320 customers. A survey
questionnaire was utilized measuring responses on a 5 point Likert scale. The questions
were designed to elicit responses with respect to use social media platforms for
assessing customer experience with respect to awareness of social media sharing
opinions and willingness to share customer experience through online media.
The research aims at understanding the influence of customer reviews on customer

opinions with respect to online platforms and customer care. It aims at understanding
the impact of customer reviews on customer engagement and choice of brands.
126
Weisskopf, J. & Masset, P. (2018, August 30). Restaurant Reviews: Their Use and Their Impact on
Business. Retrieved from https://www.hospitalitynet.org/opinion/4089762.html
127
Karakaya, F. & Barnes, N. (2010). Impact of online reviews of customer care experience on brand
or company selection. Journal of Consumer Marketing, 27(5), pp. 447-457. DOI
10.1108/07363761011063349
115
The findings of the research project customer opinions and reviews about the
experience posted online as having a significant impact on the consumer choice for a
particular brand or company and influence customer perception and engagement. The
online reviews wield comparatively stronger influence than the company websites,
government and advocacy portals and information solicited through search engines.
Important statistics cited in the research
Various researches (Huang & Chen, 2006, Jumin et.al, 2008) have found sufficient
evidence to conclude consumer recommendation as having a significant impact on
customer choices compared to reviews of an expert.
As per research (Nielsen Online, 2008), 81 % of customers refer to online reviews.
As per another research (Reddorbit.com, 2008), 90% trust online reviews and
approximately 86% refer to it before deciding to make a purchase online.
Abdulaziz Elwalda and Kevin Lu128 in the research paper titled “The Influence of
Online Customer Reviews on Purchase Intention: the Role of Non-numerical
Factors” aims at understanding the impact of elaborative and descriptive online
customer reviews on purchase intention. It aims at understanding the role of non-
numerical content shared through reviews on complex decision making. For the
purpose of the analysis, Structural Equation Modelling technique has been used to study
various aspects of Online Customer Reviews. The research paper adds to the existing
review of the literature and proves to be of assistance to businesses.
128
Elwalda, A. & Lu, K. (2014). The Influence of Online Customer Reviews on Purchase Intention: The
Role of Non-numerical Factors. European Marketing Conference.
116
Prabha Kiran and Dr. S. Vasantha129 in the research paper titled “Review Article –
Exploring the Impact of Online Reviews on Purchase Intentions of Customer” aims
at understanding the role of online review as an influential factor on consumer purchase
decisions. The influence of customer reviews on online purchase decision and the
evaluation of readers with respect to the usefulness of these reviews
The main source of information for collecting data was solicited from secondary data.
Previous researches are studied to investigate the influence of online reviews on
purchase intention and factor which influence the evaluation of online reviews.
The findings of the research suggest online reviews as the most powerful source of
information and as having a significant influence on purchase intention. The reviews
on the past experience of the customers can influence the purchase intention of future
prospective customers.
Citation
Various researchers (Bickart, B., & Schindler, R. M. 2001, Chen, Y. & Xie, J. 2008,
Cheong, H. J., & Morrison, M. A. 2008, Huang, J. H., & Chen Y. F., 2006, Park, H. et.
al. 2007, Smith, D. et. al. 2005, Chevalier, A., & Mayzlin, D., 2006, Dellacoras, C.
et.al., 2007, Duan, W. et. al., 2008) have supported the fact of the positive influence of
online reviews on purchase decisions as the writer of the review is first the user of the
product which gives credibility to the information shared through online review.
Nefike Gunden130 in the research paper titled “How Online Reviews Consumer
Restaurant Selection” aims at understanding how the reviews by online community
comprising of the existing or the customers who have visited the restaurant previously
impact the selection of restaurants among the potential customers.
129
Kiran, P. & Vasantha, S. (2015). Review Article- Exploring the Impact of Online Reviews on Purchase
Intentions of Customers. American International Journal of Research in Humanities, Arts and
Social Sciences, 15 (169), pp. 211-215.
130
Gunden, N. (2017). How Online Reviews Influence Consumer Restaurant Selection. Graduated
Theses and Dissertations. Retrieved from http://scholarcommons.usf.edu/etd/6707
117
The research aims at understanding the perception of readers towards the online reviews
shared by the community online and how it influences the choice of restaurant selection
among them. It further tries to study the DINESERV dimensions, that is, food quality,
service quality, atmosphere, convenience and value for the price paid as influential
factors to customer experience.
The research uses the Conjoint model due to the multi-variable nature considering the
5 DINESERV dimensions along with the number of online reviews and the restaurant
rating of the study and to decipher the most influential factor affecting customer
satisfaction. The sample size of 353 comprised of respondents from the U.S.A having
visited a restaurant once and practice going through online reviews and data was
collected through a questionnaire.
Food quality was found to be the most important factor influencing restaurant selection
followed by the overall rating of the restaurant, price and service quality. On the other
hand, online reviews and the restaurant and the atmosphere did have and impact but
rather not a substantial one.
Jean-Samuel Beuscaret, Kevin Mellet & Marie Trespeuch131 in the research paper
titled “Reactivity without legitimacy? Online Consumer Reviews in the restaurant
industry” aims at understanding the impact of online consumer reviews on the
restaurant’s management. It gauges the reaction of the restaurant managers to these
reviews as it poses a challenge to the kosher standards set by the experts. The research
aims to understand the impact of consumer reviews on the actions and strategy of the
restaurants with respect to responding and ameliorating the service.
For the purpose of collecting primary data, in-depth interviews are conducted with the
owners, managers and chefs who form the core administration of the restaurants.
Questions relating to history, digital awareness, tools, and techniques utilized for online
and offline visibility were asked. Restaurants from Paris, Orleans and Honfleur were
selected.
131 Beuscart, J., Mellet K. & Marie Trespeuch (2016) Reactivity without legitimacy? Online consumer
reviews in the restaurant industry, Journal of Cultural Economy, 9:5, 458-475, DOI:
10.1080/17530350.2016.121053
118
Some restaurateurs believed the reviews to be flawed while acknowledging the fact that
giving reviews. Most of the restaurants were updated with digital awareness and online
consumer review platforms and their efficiency. Restaurants located at tourist attraction
point may be least affected by the reviews compared to an isolated or a new restaurant.
As per the research undertaken by Yisheng Dai and Yumin Jiang132 in the research
paper titled “The research of Online Reviews’ Influence towards management
response on Consumer Purchasing Decisions” it aims at investigating the impact of
online reviews of customers on consumer purchase decisions.
The research aims at investigating the impact of consumer reviews on customer

purchases. According to research by Zhang et al. (2010), customer reviews possess a
significant impact and influence purchase decisions to conform to the specifics of their
peers. The research also aims at understanding how the management responds to the
customer reviews and the impact of response on the purchase decision.
The survey method was used for collecting data through a questionnaire recording
responses on a 5 point Likert scale with respect to the shopping experience of the online
shoppers. The sample size of 173 comprised of main college going students along with
teachers and staff at the college.
The results suggest that customer reviews moderated with management responses bear
a fairly positive influence on the customer purchasing decision. The findings predict
online consumer reviews as having a significant impact on the purchase decision
considering the review valence and quality.
132 Dai, Yisheng and Jiang, Yumin, "The Research of Online Reviews’ Influence towards management
response on Consumer Purchasing Decisions" (2016).WHICEB 2016 Proceedings. 43.
http://aisel.aisnet.org/whiceb2016/43
119
Ju Won Choi and Chihyung Ok133 in the research paper titled “The Effect of Online
Restaurant Reviews on Diners’ Visit Intention: A Comparative Analysis of Expert vs.
Peer Reviews” aims at understanding the role of online reviews on the choice of
restaurants among diners’.
The research aims at understanding the influence of online reviews on the choice of a
restaurant. The research aims to understand how the readers of online reviews evaluate
the reviews shared by the customers and how it influences their decision to visit the
restaurant.
For the purpose of the study, Structural Equation Modelling is used to test the
relationship assumed between the variables Sample comprises individuals who have
visits to the restaurant reviews platform regularly. Questions with respect to
information quality and trustworthiness of the reviews are part of the questionnaire.
The two most critical factors influencing the choice are the quality of information
shared through the reviews and the source credibility followed by the usefulness of the
information. When the information is shared by peers the credibility affects the
evaluation of the review, whereas, in the case of expert review rating the expertise
shared through the information impacts the evaluation.
Woo Gon Kim, Justin Li and Robert A. Brymer134 in the research paper titled “The
impact of social media reviews on restaurant performance: The moderating role of
excellence certificate” aims at understanding the impact of reviews of restaurant
visitors shared on online platform and standard of operating efficiency on the financial
performance of the restaurants.
The research aims at understanding the impact of reviews shared through social media
platforms. It also gauges the impact of operating efficiency standards set on the
133
Choi, J. & Ok, C. The Effect of Online Restaurant Reviews on Diner’s Visit Intention: A
Comparative Analysis of Expert vs. Peer reviews.
134
Kim, W., Li, J. & Brymer, R. (2016). The impact of social media reviews on restaurant
performance: The moderating role of excellence certificate. International Journal of
Hospitality Management, 55, 41-51.
120
financial performance of the restaurant. It aims at understanding the role of the

excellence certificate in the restaurants.
For the purpose of the study, focused group interviews were conducted with the top
management for the purpose of the study. The restaurant collected information with
respect to overall rating and ranking and excellence certificate was collected from
online travel service providers like TripAdvisor, Foursquare and Urbanspoon
The research suggests a positive relationship between the number of online reviews
shared and the performance of the organization. The overall rating provided on the basis
of customer experience combined with the number of customers served by the staff in
an hour and food quality bears a significant impact on restaurant performance.
The effect of the excellence certificate is also found to considerably influence the
performance. A restaurant with an excellence certificate attracts more reviews, visitors,
better ratings, and sales compared to one without any.
As per a research conducted by Spiegel Research Centre135 on “How Online Reviews

Influence Sales” investigating the role of the online reviews on consumer behaviour,
states that the significance of online reviews has increased with over 95% shoppers
reading through them before choosing to buy online. The evaluation of online factors
is affected by the price and the risk involved in the purchase, the average rating when
higher raises suspicion on its credibility and the number of reviews.
2.9 Online complementing the Offline Industry
Jacqueline Kacen, James Hess and Wei-Yu Kevin Chiang136 in the research paper
titled “Bricks or Clicks? Consumer Attitudes toward Traditional Stores and Online
Stores” aims at understanding the perception of customers towards online stores and
its preference for offline stores. The research aims at understanding the factors which
135
Spiegel Research Centre. How Online Reviews Influence Sales. Retrieved from
https://www.hospitalitynet.org/opinion/4089762.html
136
Kacen, J, Hess, J. & Chiang, W. (2013). Bricks or Clicks? Consumer Attitudes towards Traditional
Stores and Online Stores. Global Economics Management Review, 18, pp. 12-21.
121
influence the choice of online stores over traditional stores. Each purchase online was
compared with the purchase of the same product at the traditional store.
For the purpose of data collection web-based as well as the paper-based survey was
used. 224 shoppers were surveyed to understand their perception towards online stores.
The findings of the study suggest preferences for the purchase of most of the products
from traditional stores. When compared to traditional stores, online stores are more
cost-effective.
Important citations from the research
As per research conducted by Szymanski and Hise (2000), customer perception about
the convenience, offers and information related to products, and financial security are
the factors influencing customer satisfaction.
Christopher L. Newman, Kathleen Wachter and Allyn White137 in the research

paper titled “Bricks or Clicks? Understanding Consumer usage of retail mobile apps”
aims at understanding the perception and usage of customers with respect to mobile app
technology and their preferences for apps over in-store experience.
The research aims at understanding customer usage of app technology and investigating
into factors that influence their intention to use and recommend those apps. The
research further aims at juxtaposing customer preferences with respect to the in-store
experience and the experience delivered by the app technology.
The research reveals that app or online technology can provide complementary
expansion to the offline business.
Online surveys were relied on for the purpose of data collection and the sample off 277
respondents consisted of customers having prior experience with the retailer’s apps.
Regression analysis was used with the objective of testing the existence and intensity
of the relationship.
137
Newman, C., Wachter, K. & White, A. (2018) "Bricks or clicks? Understanding consumer usage of
retail mobile apps", Journal of Services Marketing, 32(2) , pp.211-222,
https://doi.org/10.1108/JSM-08-2016-0289
122
The findings of the research suggest that user-friendliness is a significant factor which
impacts the use of the apps and further recommending it to others. The frequency
however, does not bear a significant impact on the preference of apps much.
According to a research paper titled “The Dynamics of Click-and-Mortar Electronic

Commerce: Opportunities and Management Strategies” (Steinfield et al, 2002)138,
the synergies of integrating the Brick and Mortar model with the online business can
be magnificent. The paper discerns four synergies namely cost-effectiveness, market
leverage and expansion, elevated customer trust and competitive standout by
improvising the differentiation and thereby building a brand image.
According to the Harvard article by Ranjay Gulati and Jason Garino139 titled
“Getting the Right Mix of Bricks and Clicks”, the contemporary environment suggests
success to those who bridge the physical and virtual technology by implementing the
complementing mix off Brick and Click models by focusing on various case studies
nimble in implementing the mix. The research suggests adopting the right percentage
of each instead of promoting each model individually which is why Online Food
Delivery apps complementing the restaurant business represents and perfect mix giving
a fillip to the overall industry.
138
Steinfield, C., Bouwman H. & Adelaar, T. (2002). The Dynamics of Click-and-Mortar Electronic
Commerce and Management Strategies. International Journal of Electronic Commerce, 7(1),
pp. 93-119.
139
Gulati, R. & Garino, J. (2000, onlinee). Getting the Right Mix of Bricks and Clicks. Retrieved from
https://hbr.org/2000/05/get-the-right-mix-of-bricks-and-clicks
123
Rakhi Thakur and Mala Srivastava140 in the research paper titled “A study on the
impact of consumer risk perception and innovativeness on online shopping in India”
aims at developing a conceptual model which studies consumer innovativeness as a
tool to reduce perceived risk and persuade customers to adopt online retailing. Data has
been collected from 433 respondents and hypothesis testing has been conducted
through Structural Equation Modeling. The findings of the research are positive,
suggest an affirmative relationship between consumer innovativeness and adoption of
online shopping, and play a positive role in reducing the perceived risk.
Juin-Cherng Lu141 in the research paper titled “An Empirical Study of the E-
commerce Click-and-Mortar Business Model and Performance: An Innovation
approach” aims at understanding the benefits experience by businesses adopting brick-
and-click model. The research aims at understanding the importance of adopting the
click-and-mortar model for pure online business from perspective of innovation,
integration and new market opportunities it presents and investigating the impact of the
model on performance enhancement. With respect to customer attraction and retention.
The research also aims at investigating the role of channel conflict on customer
attraction and retaining them.
For the purpose of the study, Taiwan’s 95 trusted stores were surveyed out of which
only 31 samples were further usable for study. For the purpose of analysis, the SPSS
package was used relationship testing was done by, Pearson Correlation technique,
Frequency distribution, ANCOVA and Regression analysis.
The findings of the research suggest that the adoption of click-and mortar model does
impact the performance of the channel. Customization and personalization of service
140
Thakur, R. and Srivastava, M. (2015), "A study on the impact of consumer risk perception and
innovativeness on online shopping in India", International Journal of Retail & Distribution
Management, 43 (2), pp. 148-166. https://doi.org/10.1108/IJRDM-06-2013-0128
141
Lu, J. (2004). An Empirical Study of the E-Commerce Click and Mortar Business Model and
Performance: An Innovation Approach. International Journal of Electronic Business
Management, 2(2), pp. 85-91.
124
need to be considered by the online players to deliver a delighted customer experience

and to ensure customer retention.
Ashish Agarwal, Alvin Leung and Prabhudev Konana142 in the research paper titled
“Online Retailer vs. Click and Mortar Retailer: Who Performs Better?” researches
on the sales performance by undertaking a comparative study of the pure-play models
and Click-and-mortar models. The research aims at comparing the market performance
of the Brick-and-Click model with that of the pure-play model. The researchers strongly
uphold the brief that the offline presence can prove beneficial for ensuring customer
satisfaction and customer retention and thus aims at proving the superiority of the
Brick-and-Click model over the adoption of the pure-play model.
Tobin’s Q which is a tool used to determine the market value through the ration of
physical assets of a firm to its replacement value is the statistical technique used for
juxtaposing the 2 models.
The findings of the research suggest that pure-play models have lower market valuation
while the Click-and-Mortar model has the capacity to generate higher market
valuations. Further, the findings suggest the dual model enjoying better sales
performance triggered by customer satisfaction.
According to the research paper titled “The Converging Business Models of Internet
and Brick-and-Mortar Retailers” (Enders & Jelassi, 2000)143 the shift towards online
is almost inevitable in the future. The research paper is based on the case studies of
companies like Barnes & Noble, Compaq, Gap, Walmart, Amazon and Peapod.
142
Agarwal, A., Leung, A. & Konana, P. (2011). Online retailer vs. Click and Mortar Retailer: Who
Perfomrs Better? Thirty Second International Conferences on Information Systems.
143
Enders, A. & Jelassi, T. (2000). The Converging Business Models of Internet and Bricks-and-
Mortar Retailers. European Management Journal, 18(5), pp. 542-550.
125
2.10 Online ordering through smartphones
Hsiu-Ju Chen144 in the research paper titled “What drives consumer’s mobile
shopping? 4Ps or shopping preferences” aims at understanding the consumer
perception towards shopping using mobile owing to the emergence of using technology
in novel ways. A survey was done by collecting data from customers having previous
experience with mobile shopping. The findings of the study suggested customer
inclination to mobile shopping due to habit, price comparison, promotion and
independent shopping preference. The research further suggests product, price and
promotion to be significant factors influencing disposition to online shopping. The
study indicates the use of these apps and the satisfaction derived from has boosted the
mobile shopping industry.
Khushbu Madan and Rajan Yadav145 in the research paper titled “Understanding
and predicting antecedents of mobile shopping adoption” aims at understanding the
various motivators of online shopping and understanding its usage among the different
age groups. The data is collected from a total of 304 respondents and the hypothesis is
tested through Structural Equation Modelling. The findings of the research suggest as
gender an age to have a moderating effect on the overall mobile shopping behaviour.
Further, the findings indicate hedonic motivation, facilitating conditions like the ease
of use, internet connectivity and technical knowledge, promotional benefits,
innovativeness and the perceived regulatory support to be a significant contributing
factor in adopting mobile shopping. The use of mobile shopping among the reference
group also plays an important role in online shopping. However, privacy and the
security risk aspect also interferes in the adoption process.
144
Chen, H. (2018). What drives consumers’ mobile shopping? 4Ps or shopping preferences? Asia
Pacific Journal of Marketing and Logistics. 30(4), pp. 797-
815. https://doi.org/10.1108/APJML-08-2017-0167
145
Madan, K. and Yadav, R. (2018). Understanding and predicting antecedents of mobile shopping
adoption. Asia Pacific Journal of Marketing and Logistics, 30(1), pp. 139-
162. https://doi.org/10.1108/APJML-02-2017-0023
126
Ezlika Ghazali, Dilip S. Mutum, Jiu Hui Chong and Bang Nguyen146 in the research
paper titled “Do consumers want mobile commerce? A closer look at M-shopping and
technology adoption in Malaysia” aims at understanding the adoption of the idea of
shopping using mobile devices using the Technology Acceptance Model and Theory of
Planned Behaviour. The data is collected from 453 respondents and the hypothesis is
tested using Structural Equation Modeling.
The findings of the research suggest perceives ease of use, trust, perceived
used=fullness, attitude, innovativeness and behavioral control motivate customers for
choosing mobile as a medium of shopping. Customers consider mobile devices to be
user-friendly mode and also less stressful when it comes to shopping.
Alastair Holmes, Angela Byrne and Jennifer Rowley147 in the research paper titled
“Mobile shopping behaviour: insights into attitudes, shopping process involvement
and location” aims at understanding the use of mobile shopping among consumers and
their attitude towards it. The research also studies the use of mobile shopping at various
stages of the consumer decision making process. The study aims at understanding the
role of location in mobile shopping. The data is collected using the survey method in
the U.K. The findings of the research suggest that customers prefer shopping on the
computer website rather than on mobiles. The use of mobile phones is mainly at the
information searching stage rather than at the purchase stage of the consumer decision-
making process. Convenience and accessibility are the two important features of mobile
shopping that persuade customers using mobile. Mobile shopping is used mainly for
purchasing high involvement and the most frequent location in the use of mobile phones
in the buying process is at home.
146
Ghazali, E., Mutum, D., Chong, J. and Nguyen, B. (2018). Do consumers want mobile commerce?
A closer look at M-shopping and technology adoption in Malaysia. Asia Pacific Journal of
Marketing and Logistics, 30(4), pp. 1064-1086. https://doi.org/10.1108/APJML-05-2017-
0093
147
Holmes, A., Byrne, A. and Rowley, J. (2014). Mobile shopping behaviour: insights into attitudes,
shopping process involvement and location. International Journal of Retail & Distribution
Management. 42(1), pp. 25-39. https://doi.org/10.1108/IJRDM-10-2012-0096
127
Sonia San-Martin, Jana Prodanova and Blanca Lopez Catalan148 in the research
paper titled What makes services customers say “buy it with a mobile phone”? aims
at understanding the factors playing a role in determining purchasing through a mobile
phone and its influence on word of mouth on mobile shopping. The research aims at
understanding the role of perceived control, the satisfaction derived through mobile
shopping, perceived entertainment on mobile shopping. For the purpose of the study,
data is collected from 447 Spanish customers who have in any instance used mobile as
a medium of shopping.
The findings of the research suggest satisfaction derived through mobile shopping,
group influence and perceived control experienced in the process as a significant impact
on the shopping experience and in turn, has a strong influence on word-of-mouth.
Hsi-Peng Lu, Philip Yu-Jen Su149, in the research paper titled “Factors affecting
purchase intention on mobile shopping web-sites” aims at providing valuable insights
into consumer behaviour while shopping through mobile phones and aims at
understanding customers’ perception towards shopping through online mobile phones.
The sample is collected from 369 participants and Structural Equation Modelling is
used for proving the hypothesis.
The findings of the research suggest enjoyment of shopping using mobile phones and
usefulness and compatibility strongly influence the mobile shopping intentions.
However, the element of anxiety could hinder the process by negatively interfering in
the smooth adoption of the innovative idea of mobile shopping.
148
San-Martín, S., Prodanova, J. and López Catalán, B. (2016), "What makes services customers say
“buy it with a mobile phone”?", Journal of Services Marketing, Vol. 30 No. 6, pp. 601-
614. https://doi.org/10.1108/JSM-02-2015-0081
149
Lu, H. and Yu‐ Jen Su, P. (2009). Factors affecting purchase intention on mobile shopping web
sites. Internet Research, 19(4), pp. 442-458. https://doi.org/10.1108/10662240910981399
128
Kiseol Yang150 in the research paper titled “Determinant of US consumer mobile

shopping services adoption: implications for designing mobile shopping services”
aims at understanding the adoption of the idea of mobile shopping services and its
implications on retailers and marketers. For the purpose of the study, an online survey
was undertaken soliciting responses from 400 users of mobile. Structural Equation
Modelling was used for data analysis. The study observed the expectation of effort to
be exerted in the shopping process drives the utilitarian and hedonic performance and
that combined with the entertainment are critical motivators for the adoption of mobile
shopping.
Silvia Bellini and Simone Aiolfi151 in the research paper titled “Impulse buying
behavior: the mobile revolution” aims at understanding the impact of the use of mobile
in case of planned and unplanned purchases. A total of 406 respondents were
interviewed in hypermarket stores and further t-test was used for data analysis. The
findings of the research indicate mobile as an important device across various store
formats leading to convergence and fading the difference among these stores.
2.11 Online food ordering during COVID-19 pandemic
Kinjal M. Gosai and Deelip Palsapure152 in the research paper titled “A Study on the
impact of Corona Pandemic on restaurant industry and the role of Online Food
Delivery apps in the sustainability of business” aims at understanding the impact of
the COVID-19 pandemic on the business operations and sustainability of the restaurant
business. The study understands the role of Online Food Delivery apps in the current
scenario and its role in supporting the restaurant business. Owing to the restrictions on
150
Yang, K. (2010), "Determinants of US consumer mobile shopping services adoption: implications
for designing mobile shopping services", Journal of Consumer Marketing, Vol. 27 No. 3, pp.
262-270. https://doi.org/10.1108/07363761011038338
151
Bellini, S. and Aiolfi, S. (2019), "Impulse buying behavior: the mobile revolution", International
Journal of Retail & Distribution Management, Vol. ahead-of-print No. ahead-of-
print. https://doi.org/10.1108/IJRDM-12-2018-0280
152
Gosai, K. and Palsapure, D. (2020). A Study on the impact of Corona Pandemic on restaurant
industry and the role of Online Food Delivery apps in the sustainability of business.
International Journal of Advance Research in Science and Engineering, 9(12), pp. 40-51.
129
dine-in facilities most of the restaurants are only functioning on basis on take-aways
and delivery orders. Limited staff has further added to the troubles of the business. The
finding of the study suggest that the pandemic has severely affected the operations of
the restaurant business and limited it functionality. However, Online Food Delivery
apps are a boon to the restaurant business in the current scenario and is essential to
sustain business. The research recommends collaboration of online and offline industry
for long-term sustainability of business.
Kinjal M. Gosai and Deelip Palsapure153 in the research paper titled “A Study on
Cloud Kitchens as an Emerging Food and Beverage Industry” aims at understanding
the various determining factors influencing customer perception towards ordering food
online from cloud kitchens through the Online Food Delivery apps. The study involves
an in-depth understanding of the sustainability, competitiveness and profitability of
cloud kitchen business through Porter’s Five Force Model. The findings of the study
suggest a favourable customer perception towards various factors influencing online
ordering from cloud kitchen and analysis through Porter’s Five Force Model further
invigorated the evidence of cloud kitchen evolution as a lucrative business segment.
Dogan Gursoy and Christina G. Chi154 in the research paper titled “Effects of
COVID-19 pandemic on hospitality industry: review of the current situations and a
research agenda” aims to decipher the effect of COVID-19 pandemic on the hospitality
industry. The study is a literature review of the research perspective revolving around
customer perception towards the hospitality industry post the outbreak of the COVID-
19 pandemic. A significant finding of the study states that customers are more than
willing to bear premium charges for ensured safety.
153
Gosai, K. and Palsapure, D. (2020). A Study on Cloud Kitchen As An Emerging Food And
Beverage Industry. International Journal of Advance Research in Science and Engineering,
9(9), pp. 36-48.
154
Gursoy, D. and Chi, C. (2020). Effects of COVID-19 pandemic on hospitality industry: review of
the current situations and a research agenda. Journal of Hospitality Marketing & Management,
29(5), pp. 527-529, DOI: 10.1080/19368623.2020.1788231
130
Tarek Ben Hassen, Hamid El Bilali and Mohammad S. Allahyari155 in the research
paper titled “Impact of COVID-19 on Food Behaviour and Consumption in Qatar”
aims at understanding the shift in consumer behaviour with respect to food consumption
in Qatar. The findings of the study suggest a significant shift in the attitude of customers
with respect to food shopping and consumption pattern. Customer are inclining more
towards home-made and healthier meals and also prefer shopping for food online.
Yang Yang, Hongbo Liu and Xiang Chen156 in the research paper titled “COVID-19
and restaurant demand: early effects of the pandemic and stay-at-home orders”
investigates the impact of the COVID-19 pandemic on home delivery orders in U.S.A.
The findings of the study suggest that increase in the cases of COVID resulted in
decrease in the daily demand contributed by drop in stay-at-home orders owing to safety
measures. The research aims to understand the vulnerable aspects of restaurant business
that requires increased focus in terms of policies and strategies.
Dr. Varsha Bihade157 in the research paper titled “Customers Behaviour towards
Online Food Delivery apps (FDAs) in PCMC amid Covid-19” aims at understanding
customer expectations towards Online Food Delivery apps during the pandemic
situation. The Online Delivery apps considered under the study are Zomato, Swiggy
and Foodpanda. The findings of the study suggest that mainly youth belonging to higher
income group incline towards online food ordering. Swiggy and Zomato are the most
frequently used apps for placing orders online and customers are taking safety measures
as they are concerned about the spread of virus. Customers surveyed expressed concern
over the choice of payment modes and the quality.
155 Hassen, T., Bilali, H. and Allahyari, M. (2020). Impact of COVID-19 on Food Behaviour and
Consumption in Qatar. Sustainability, 12.
156 Yang, Y., Liu, H. and Chen, X. (2020). COVID-19 and restaurant demand: early effects of the
pandemic and stay-at-home orders. International Journal of Contemporary Hospitality
Management, 13(12), pp. 3809-3834. https://doi.org/10.1108/IJCHM-06-2020-0504
157
Bihade, V. (2020). Customers Behaviour towards Online Food Delivery Apps (FDAs) in PCMC
amid Covid-19. International Journal for Research in Applied Science & Engineering
Technology, 8(8), pp.1309-1313.
131
Jungkeun Kim and Jacob C. Lee158 in the research paper titled “Effect of COVID-19
on preferences for private dining facilities in restaurants” aims at understanding the
impact of increase in cases of COVID-19 on preference for ordering online. The
findings of the study suggests that with an increase in number of cases a strong
preference for online food ordering among the customers has been witnessed. The study
further finds that when customers perceive the risk of the virus as high, then in
strengthens their preference for private dining facilities. The research aims at helping
restaurants to curb the negative effects of the pandemic.
Charlene Li., Miranda Mirosa and Phil Bremer159 in the research paper titled
“Review of Online Food Delivery Platforms and their impact on Sustainability” aims
at understanding the positive and negative impact of Online Food Delivery apps on
restaurant sustainability. The study focuses on the social, economic and environmental
impact of online food delivery and advises to curb the negative consequences and
promote the positive consequences of the Online Food Delivery business.
158
Kim, J. & Lee, J. (2020). Effects of COVID-19 on preferences for private dining facilities in
restaurants. Journal of Hospitality and Tourism Management, 45, pp. 67-70.
159
Li, C., Mirosa, M. & Bremer, P. (2020). Review of Online Food Delivery Platforms and their Impacts
on Sustainability. Sustainability, 12, 5528; doi:10.3390/su12145528.
132

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CHAPTER 2

CHAPTER 2: REVIEW OF LITERATURE

2.1 Online Food Ordering

According to the Deloitte1 research titled “Digital Media: Rise of On-demand

According to a web article titled “Digital Dining: Restaurant Technology

I. Karthika and A. Manojanaranjani11 in the research paper titled “A Study on the

The findings of the app suggest that:

Jyotishman Das16 has published a research paper titled “Consumer Perception

Suryadev Singh Rathore and Mahik Chaudhary18 in the research paper

Sheryl E. Kimes20 in the research paper titled “Customer Perceptions of Electronic

The findings of the research suggests that convenience in transacting, existence of a

The overall survey represented a positive perception of respondents towards the e-

The sampling area is limited to Coimbatore in Tamil Nadu.

Mustafa Abbas Bhotvawala, Harsh Balihallimath, Nishant Bidichandani and M.

Pritam P. Kothari and Shivganga S. Maindargi30 in the research paper titled “A

Manpreet Kaur31 in the research paper titled “Customer Relationship Management

The data was collected by surveying 206 respondents. Descriptive as well as

2.2 Attribute Study

Dr. R. Sivanesan, C. Monisha, P.V. Babisha, and S. A. Abisha35 in the research

The objective of the research is to determine differences between the differences

2.3 Customer Perception

Eojina Kim37 in the dissertation titled “Understanding customer perception of

The study supports the existence of a relationship between restaurant innovativeness,

2.4 Customer Satisfaction

The existence of a business is threatened when customers are dissatisfied. Customer

Bader. M. A. Almohaimmeed40 in the research paper titled “Restaurant Quality and

Rashed Al Karim42 in the research paper titled “Customer Satisfaction in Online

2.5 Customer Retention

Bill Marriott, the Executive Chairman of Marriott International an American

Realizing the importance of loyal customers who are unaffected by customers'

Researchers define customer retention as the intention of the customer to repurchase

According to George Amoako, Emmanuel Arthur, Christiana Bandoh and Rachel

The main objective is to understand whether Customer Relationship Management helps

Eshghi et al (2007) as cited in Aldaihani, F. and Ali, N. (2018) describes customer

Haghighi, Dorosti, Rahnama & Hoseinpour71 in the research paper titled

customer trust. However, no significant relationship between the location of the

The objective of the study is to design a Questionnaire model similar to original

Consequently, researchers developed a customized SERVQUAL to adapt to the needs

A questionnaire with 29 questions is designed to measure quality under every aspect

Bolanle Odunlami77 in the research paper titled “Impact of Customer Satisfaction on

the profitability. According to the research, a dissatisfied customer communicates poor

As suggested by La Barbera and Mazursky (1983)78 organizations should strive to

Faizan Mohsan, Muhammad Musarrat Nawaz, M. Sarfaraz Khan, Zeeshan

The research aims at understanding the importance of customer satisfaction banking

The research suggests organizations to focus on customer satisfaction as well as trust

2.6 Customer Relationship Management

Non-probability convenience sampling method was used to select respondents to the

86 Noor, W. (2015). Customer Experience and Relationship Management of Restaurants.

Bill Marriott, the Executive Chairman of Marriott International an American

(1993),97 numerous publications have supported the fact that satisfaction is a

Realizing the importance of loyal customers who are unaffected by customers'

2.7 Word of Mouth Endorsement

According to Brown and Reingen (1987)111, word-of-mouth plays an influential role

Muneer Alrwashdeh, Okechukwu Lawrence Emeagwalli and Hasan Yousef

According to the findings of the research undertaken by Martsen and Gronholdt

Haroldo de Sa Medeiros, Larissa Ananda Paiva Maciel and Mariluce Paes de

2.8 Online Reviews

According to a research paper by Michael Luna125 titled “Reviews, Reputation and

According to a research conducted by Fahri Karakaya and Nora Ganim Barnes127

The research aims at understanding the influence of customer reviews on customer

Important statistics cited in the research

As per research (Nielsen Online, 2008), 81 % of customers refer to online reviews.

The research aims at investigating the impact of consumer reviews on customer

financial performance of the restaurant. It aims at understanding the role of the