A Research Report ON "Perception of Consumer Towards Online Food Delivery App"
A Research Report ON "Perception of Consumer Towards Online Food Delivery App"
ON
“PERCEPTION OF CONSUMER TOWARDS
ONLINE FOOD DELIVERY APP”
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ACKNOWLEDGEMENT
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guiding me right from the inception till the successful completion of the project. I sincerely
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reviews of project and the report and above all the moral support he/she had provided to me
with all stages of this project.
I am greatly thankful to my presentation guide Dr. VANDANA GUPTA. She helped and
encouraged me in every possible way the knowledge required during the preparation of the
report. This would definitely help me in my future ventures.
I would like to express my deep sense of gratitude to Mrs. Dr. VANDANA GUPTA for
giving me his precious time and support.
I am greatly indebted to all of the helping factors concerned with the successful completion
of this presentation. I am making this presentation not only for marks but to also increase my
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Thanks again to my guide as well as to my principal who gave us the golden opportunity to
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Sincerely,
Neelu Chandak
SR.NO: TITLE
CHAPTER 1: Introduction to topic
Indian Food app scenario
History of online food delivery
Online food app
Advantage and disadvantage of online food delivery
Objection of the study
Scope of the study
Literature review
CHAPTER 2: Research methodology
Objectives of research
Research design
Types of research
Sample size
CHAPTER 3: Data analysis and interpretation
CHAPTER 4: Findings
Recommendation
Conclusion
References
Bibliography
Questionnaire
CHAPTER 1:
INTRODUCTION
Online food delivery is the process of ordering food through the restaurant's own website or
mobile app, or through a multi-restaurant's website or app. A customer can choose to have the
food delivered or for pick-up. The process consists of a customer choosing the restaurant of
their choice, scanning the menu items, choosing an item, and finally choosing for pick-up or
delivery. Payment is then administered by paying with a credit card or debit card through the
app or website or in cash at the restaurant when going to pickup. The website and app inform
the customer of the food quality, duration of food preparation, and when the food is ready for
pick-up or the amount of time it will take for delivery.
The online food ordering market increased in the U.S with 40 percent of U.S adults having
ordered their food online once. The online food ordering market includes foods prepared by
restaurants, prepared by independent people, and groceries being ordered online and then
picked up or delivered.
In today’s world service sector contributes 64.80% in GDP. Zomato is one of the most
popular applications that provide services to the user to discover restaurants. The rise of
digital technology is reshaping the industries. With the increased use of technology, the
number of people engaging into the digital sector are rapidly increasing. Even Consumers are
accustomed to shopping or even ordering online through apps or websites, with maximum
convenience and transparency, expecting the same experience that they would get from the
outlet itself. To match up with the consumer’s expectations apps are providing increased
facilities and services to the customers. This scenario doesn’t exist only in one country but all
across the globe. Being up to date with the customers’ expectations helps firm retain
customer’s to a greater extent. The Figure 1 below shows the average retention of customers
with the help of providing various kinds of facilities to the customers.
This is a picture from a 2018 Pizza Hut pizza box, which describes the first online food sale.
The first online food ordering service, World Wide Waiter (now known as Waiter.com), was
founded in 1995. The site originally serviced only northern California, later expanding to
several additional cities in the United States.
By the late 2000s, major pizza chains had created their own mobile applications and started
doing 20-30 percent of their business online. With increased smartphone penetration, and the
growth of both Uber and the sharing economy, food delivery startups started to receive more
attention. In 2010, Snapfinger, who is a multi-restaurant ordering website, had a growth in
their mobile food orders by 17 percent in one year.
Instacart was founded in 2012. In 2013, Seamless and Grubhub merged. Uber Eats launched
in Los Angeles, California in 2014 By 2015, online ordering began overtaking phone
ordering
In 2015, China's online food ordering and delivery market grew from 0.15 billion Yuan to
44.25 billion Yuan.
As of September 2016, online delivery accounted for about 3 percent of the 61 billion U.S.
restaurant transactions.
Zomato allows the customers to see what restaurants are near them, along with the ratings the
restaurant has received in their food.
Uber Eats delivers the food in special lunch bags that make sure the food remains hot or cold.
It allows the customers to monitor the progress of the food, as well as, the location of the
driver delivering the food. Uber Eats has expanded to the Middle East, Europe, and Africa.
Time factor – Even if you are late to home (after a tight business schedule), one can
avail food within minutes of ordering at doorstep.
For now, only big restaurants only offer online food ordering in Chennai with highest
culinary standards. So no need to worry about the hygiene since big players of the food
& beverage industry is indulged.
Cash can be paid on delivery of dishes at door step. Online payment facilities are also
available at selected restaurants only.
Comparatively online food ordering cost is lesser. If you are moving out with your
family of four members in a luxury car to a luxury restaurant, it may cost more
comparing with online food delivery.
Even on festival days, these online food delivering services are available giving a
maximum flexibility on dine-in for customers.
Time to time discount offers are available having too many options for customers to
have an eye on online food delivering
Change of environment – The main difference between the online food ordering and dining in
a restaurant is the environment around us. If one person eats within home, he may not feel a
change in environment and refreshment. But comfort is really high in terms of online food
take away. If he dine-in a luxury restaurant with superb design and light music, that
environment gives better refreshment compared to the other.
To provide convenient and easy access in placing their orders and payment.
To find out the customers perceptions and know ledge of Online food ordering
that influences their buyi ng decisions.
The study is basically conducted to know how consumers perceive the online food delivery
services. The perception of consumers may vary under different circumstances. From this
study, we can have a better understanding of the „Online Food Delivery Service Market‟. We
will know about the consumer perception regarding the services they provide in Pune area
and will get to know the variables affecting their perception. Therefore, these findings may
help the service providers to work upon on these variables to fill up the gaps in the mindset of
consumers.
ZOMATO:
Zomato is an Indian restaurant search and discovery service founded in 2008 by Deepinder
Goyal and Pankaj Chaddah. It currently operates in 24 countries. It provides information and
reviews of restaurants, including images of menus where the restaurant does not have its own
website and also online delivery services in some countries.
SWIGGY:
Swiggy is an online food ordering and delivering service based in Bengaluru, Karnataka,
India.. It was founded in 2014 by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety.
Swiggy is operated by Bundl Technologies Private Limited in over 25 cities in India. Its total
valuation in the market is $1.3 billion and its total funding amount is $465.5 million.
UBER EATS:
Uber Eats (previously stylized as UberEATS) is an American online food ordering and
delivery platform launched by Uber in 2014 and based in San Francisco, California.
FOOD PANDA:
Food panda (stylized as food panda) is a German mobile food delivery marketplace
headquartered in Berlin, Germany, operating in 40 countries and territories. The service
allows users to select from local restaurants and place orders via its mobile applications as
well as its websites. The company has partnered with over 27,095 restaurants in 193 cities
and works with over 15,733 delivery riders. The firm was acquired by Delivery Hero in early
December 2016.
LITERATURE REVIEW
A research on the changing market for food delivery (Carsten Hirschberg et al 2016) indicates
that online’s penetration of the total food-delivery market broke 30 percent in 2016. We
believe penetration rates will grow further as the market matures, eventually reaching 65
percent per year.
She also talked about JUST EAT was launched in Denmark in 2001 and was traded publicly
on the London Stock Exchange. Their Indian business was launched as Hungry Bangalore in
2006. It was renamed in 2011 when JUST EAT acquired a majority share in the business.
Today, the company partners with over 2,000 restaurants.
According to Deepinder Goyal, Zomato CEO and co-founder told TechCrunch that he
expects to reach 10,000 restaurants in India in a few months. “We have a sales team of around
300 in India and 5,000-odd advertisers… these partners know the volume we bring to them so
it is quite easy for us to launch this new service.”
RESEARCH METHODOLOGY
The study is based on the collection of primary data. Quantitative research method was used
in this research so as to investigate and observe the collected data with the help of statistical,
mathematical and computational techniques. A structured questionnaire was designed with
close-ended and open-ended questions. It was designed in such a manner so that it caters all
the areas of study. The survey was conducted in different areas of Pune and around 153
responses were collected. As the population was small & homogeneous, all subsets of the
frame are given an equal probability. Thus non-probability sampling method was used. Under
non-probability technique, convenience sampling method was used. The population consist of
the students, self-employed, homemaker, private company employee and business owners of
different areas in Pune. For all variables used in the study, multi-item scales .
OBJECTION OF RESEARCH:
RESEARCH DESIGN:
A research design is a detailed blue print used to guide a research study towards its
objectives. It’s a series of decisions taken together comprising of a master plan or a model for
the conduct of a research on consonance with the research objectives. The research design has
been considered a "blueprint" for research, dealing with at least four problems: what
questions to study, what data are relevant, what data to collect, and how to analyze the results.
It details the procedures necessary for obtaining the information needed to structure or solve
the marketing research problems.
A research design is a master plan which specifies the steps and procedures for collecting and
analyzing the needed information. The choice of a research design largely depends on the
objectives of the research and how much is known about the problem and these objectives
prior to the actual conduct of the research by the researcher. The overall research design for
any particular project may include one or more types of research designs as part of it.
Traditionally there are three types of research designs namely exploratory research design,
descriptive research designs and causal research designs.
Cross sectional studies, which measure a unit from the sample at only one
point in time (e.g. Sample surveys),
Causal Research Design: This type of research design is most appropriate when it is
necessary to show that one variable causes or determines the values of the other
variables. It includes understanding a problem in terms of conditional statements of
the form “If X, then Y.”
The research design adopted in this market research project is a mix of both
exploratory and descriptive research designs. The exploratory research was conducted
by use of exploratory techniques like brainstorming to generate a number of possible
issues faced by consumers while selection of coffee houses and factors that affect
consumer’s attitude in buying behaviour from national and international chains.
Descriptive research was adopted to describe the characteristics like attitude,
perception, awareness levels and buying behavior of relevant groups in the sample
TYPES OF RESEARCH:
The data has been collected by both is primary and secondary data.
Primary data includes information collected through questionnaire based on attitude
and perception of customers using food delivery apps in India.
Secondary data included collecting information about various apps, the industry
position, etc from the various portals from the internet, journals, magzines etc.
SAMPLE SIZE:
On the basis of convenience, the sample size taken is of 50 members. It was a random
sampling. Age group of people is 35-40 years.
CHAPTER 3:
Gender: -
Sample Size: - 50
No. of Respondents
Male 25
Female 25
GENDER
50.00%
MALE
FEMALE
50.00%
Interpretation: -
From the above pie chart, we can say that the distribution is equally divided for the genders
(i.e., 50% are male and 50% are female).
Age:-
Sample Size:- 50
No. of Respondents
15-20 years 16
20-25 years 19
25-30 years 12
30 years & above 3
AGE
6.00%
38.00%
Interpretation: -
Around 70% of our sample is in age bracket of 15-25 years which is our target population.
And 24% are from 25-30 years, and 6% are from 30 years and above age group.
Occupation: -
Sample Size: - 50
CATEGORY NO. OF RESPONDENTS
BUSINESS PERSON 9
STUDENT 27
JOB PERSONS 13
OTHERS 1
OCCUPATION
2.00%
18.00%
26.00%
BUSINESS PERSONS
STUDENT
JOB PERSONS
OTHER
54.00%
Interpretation: -
As per the above data, it can be interpreted that 54% are students, 9% are doing Business,
26% are involve in jobs and 2% are others. It means most of the respondent are students.
Sample Size:- 50
No. of Respondents
Yes 49
No 1
2.00%
YES
NO
98.00%
Interpretation:-
Majority of our respondents are aware about food delivery app. Only a single person from
sample of 50 respondents doesn’t know about food delivery app.
Sample Size: - 50
No. of Respondents
Yes 46
No 4
8.00%
YES
NO
92.00%
Interpretation: -
Around 92% of our respondents are finding online food delivery app. easy and are convinced
with the service of online food delivery app.
Sample Size: - 50
Interpretation: -
Around 92% of our respondents are using mobile apps. other than restaurants app and other
multiple sites.
Q.4 What kind of gadgets or technology you prefer to use while you order online food?
Sample Size: - 50
2.00%
2.00%
2.00%
12.00%
82.00%
Interpretation: -
All the respondents are using smart phone for online food delivery. As a supplementary
laptops & I pad are used as convenient to the users.
Interpretation: -
It can be interpreted that most of the respondents are using online food delivery in special
occasion (i.e, 64%), 52% when they want to cook, 30% in business events, 16% for social
work.
Q.6 How often do you order online food?
4.00% 6.00%
DAILY
WEEKLY
MONTYHLY
42.00%
48.00% ANYTIME
Sa
mple Size:- 50
Interpretation: -
Most of the respondents are using online food delivery on monthly basis i.e., 48%, while on
weekly basis around 42 % use online food delivery on sample basis. Daily users are 4 % only.
22.00%
ANYTIME
6.00% WEEKDAYS
WEEKENDS
72.00%
Interpretation: -
Around 72% of the respondent of the sample doesn’t required any weekdays or weekends for
ordering online food. 6% and 22% of the respondents are required weekdays & weekends
respectively.
Q.8 What would you like to prefer to order in online food delivery app?
Sample size: - 50
CATEGORY NO. OF RESPONDENTS
FAST FOODS 18
MAIN COURSE FOODS 5
FAST FOODS & DESERTS 6
FAST FOODS & MAIN COURSE FOODS 4
MAIN COURSE FOODS & DESERTS 1
FAST FOODS , MAIN COURSE FOODS & 16
DESERTS
Interpretation:-
Other than 12% of the respondents, Fast Foods are mostly preferred on online food delivery
in which 36% of the respondents from the samples are prefer only fast food. 20% prefer to
order main course food with or without other foods.
Q.9 How did you come to know about the online food delivery?
Sample size: - 50
Interpretation: -
Most of the respondents among the sample come to know about online food delivery from
internet i.e., around 68 % and 62 % of the respondents come to know about online food
delivery from advertisements.
Q.10 On an average , how much money did you spend monthly to order online for food
delivery ?
Sample size :- 50
12.00% 4.00%
Interpretation: -
Majority of our respondents spend money between Rs. 100 to Rs. 500 for online food
delivery. 4 % spends less than Rs. 100 while Rs. 500 or more are spend by online 12 of the
respondents among the sample.
Q.11 What are the challenges do you face for ordering online food delivery?
Sample size :- 50
30.00%
36.00%
DELIVERY TIME IS MORE
SITE IS SLOW
SITE IS NOT OPENING
OTHERS
10.00%
24.00%
Interpretation: -
Majority of our respondents’ face problem of delivery time used to be more for delivering
food (i.e., 36%.)
Sample size :- 50
NO. OF RESPONDENTS
YES 44
NO 6
12.00%
YES
NO
88.00%
Interpretation: -
88% of the respondents believes that online food delivery apps are secured while other 12 %
are doubting on security level of online food delivery app.
10.00%
42.00%
ONLINE PAYMENT
CASH ON DELIVERY
BOTH
48.00%
Interpretation: -
It is seen that cash on delivery is mostly preferable by the respondents as compare to online
payment option.
Q.14 What are the features in online food delivery apps attracts you?
Sample size :- 50
NO. OF
RESPONDENTS
DISCOUNT OFFERS 14
DISCOUNT OFFERS & VARIETIES 4
DISCOUNT OFFERS, VARIETIES & MULTIPLE 15
OPTIONS OF DIFFERENT RESTAURANTS
VARIETIES 2
MULTIPLE OPTIONS OF DIFFERENT 5
RESTAURANTS
THE DESIGN OF THE APP, VARIETIES, 10
DISCOUNT OFFERS & MULTIPLE OPTIONS OF
DIFFERENT RESTAURANTS
Interpretation: -
Around 66% of the respondents choose online food delivery due to discounts offers available.
62% of the respondents choose due to varieties are available.
CHAPTER 4:
FINDINGS:
1. Our sample of 50 respondents consist of 25 males and 25 females.
2. Around 70% of our respondents are in age (15-25 years) which is our target populations.
3. A fair distribution of respondents in different income groups is relevant to get the results
with proper analysis of sample data.
4. Most of the respondents are students.
5. In today’s life, Normally everybody know about online food delivery and they find it easy
and convenient as per their suitability.
6. All the respondents are probably using smartphone individually or with other gadgets.
7. Ultimately mobile apps are mostly used for ordering online food i.e., 92% of the total
respondents.
8. Most of the respondents are using online food delivery in special occasion and secondly,
when they don’t want to cook.
9. Daily ordering online food may arise to health issue or may get bored, due to which
respondents are using it mostly on monthly basis.
10. Respondents doesn’t need any proper days to order online. It may be weekends or week
days as per their preferences.
11. When it comes to order online food, many options are attracting respondents and it was
always a question as what to order? Which is always a favourite question for anybody and as
it was arrived most of the respondents prefer to order fast food to order with or without main
course or desserts. i.e., around 60%.
12. Internet and Advertisement always provide information. Most of the respondents come to
know about online food delivery from this modes. About 68% from Internet and 62% from
Advertisement.
13. Majority of our respondents spend many between Rs. 100 to Rs. 500 for online food
delivery.
14. Most of the respondents are facing issue about delivery time of food.
16. Discount offers are the core attraction for online food delivery as well as variety of
options for restaurant and foods also attracts for ordering online to our respondents.
17.A Our respondents find it secured and mostly they doesn’t hesitate to pay online also.
18. Online food delivery are doing extremely well to project itself in youth oriented market.
RECOMMENDATION:
Online food delivery service provider should be alert for any negative effect.
Try to make good customer relationship with providing different offers and solving
issue with early solution.
Online food delivery service provider should stress on getting customer feedback
from time to time.
Delivery time of food should be improved.
Customer information should not get leaked.
Offers should provided on different occasion.
This service sector is depenend on both technology as well as human resources. Both
resources should not get vacated or damaged.
Design of website app should be simple and easy to understand.
CONCLUSION:
According to the research conducted, it can conclude that Zomato has gained positive opinion
of majority of the consumers in comparison to other service providers. It is mainly because of
their better on time delivery and better discounts. Zomato has been in the first position in
online food delivery service provider and if it includes the minor improvements, it will
sustain its upper hand in forthcoming future.
The consumer’s perception on online food ordering varies from individual to individual and
the perception is limited to a certain extent with the availability of the proper connectivity
and the exposure to the online food services. The perception of the consumer varies according
to various similarities and difference based on their personal opinions. The study reveals that
mostly the youngsters are attached to the online food ordering and hence the elder people
don’t use these online services much as compared to the younger ones. The study highlights
the fact that youngsters are mostly poised to use online food ordering services. The study also
reveals that the price of the products, discounts and special offers have the most influencing
factor on online food ordering. The second most influencing factor is the convenience, the
next most influencing factor is on-time delivery. The study highlights that respondents often
prefer to order on weekly basis, the type of meals which were mainly preferred to order was
the snacks followed by dinner. Fast food was fancied by most of the respondents in their
choice of cuisines. The study also revealed that a major proportion of respondents uses either
Uber eats or Zomato to order their food online. It was also observed that a less percentage of
respondents were inclined towards the use of Swiggy and Food Panda.
REFERENCES:
H.S. Sethu, Bhavya Saini,“Customer Perception and Satisfaction on Ordering Food via
Internet, a Case on Foodzoned.Com, in Manipal”, Published by, [Online] Available:
http://www.globalbizresearch.org
Sheryl E. Kimes Ph.D. (2011), “Customer Perceptions of online Food Ordering”, Cornell
Hospitality Report, 11(10), pp. 6-15.
Adithya R., Abhishek Singh, Salma Pathan & Vaishnav Kanade (2017), “Online Food
Ordering System”, International Journal of Computer Applications (0975 – 8887), Volume
180 – No.6, December 2017
BIBLIOGRAPHY:
WEBSITES-
www.wikipedia.com
www.amity.edu/gwalior/ajm/paper_5.pdf
www.iaeme.com/MasterAdmin/uploadfolder/JOM_05_05_015/JOM_05_05_015.pdf
BOOKS-
C.R.Kothari
Questionnaire
Name:
GENDER:
Male
Female
AGE:
15-20years
20-25years
25-30years
30years and above
OCCUPATION:
Business person
Student
Job persons
Others
ARE YOU AWARE ABOUT FOOD DELIVERY APP?
Yes
No
DO YOU FIND ONLINE FOOD DELIVERY EASY AND CONVENIENT?
Yes
No
WHICH IS THE CONVENIENT ONLINE FOOD DELIVERY APPS?
Mobile app
Multiple restaurant app
Multiple restaurant site
WHAT KIND OF GADGETS OR TECHNOLOGY YOU PERFER TO USE WHICH YOU
ORDER ONLINE FOOD?
Smart phone
Laptop
I pad
Others