A STUDY ON CUSTOMER SATISFACTION TOWARDS ONLINE FOOD

DELIVERING COMPANIES

Major Project Report

Submitted to

UNIVERSITY OF CALICUT

In partial fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

CHITHRALEKHA S

(Reg. no.: LCATMBA042)

Under the Guidance of

JITH RAJAN

Assistant Professor

LEAD College of Management, Palakkad

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 CERTIFICATE

This is to certify that, the project report entitled “A STUDY ON CUSTOMER SATISFACTION
TOWARDS ONLINE FOOD DELIVERING COMPANIES submitted by Chithralekha S
(Reg. No: LCATMBA042), a student of fourth semester MBA of this college, is a record bonafide work
carried out by her in partial fulfillment of Master of Business Administration under the University of
Calicut.

Project Guide Director

Place: Palakkad

Date:

2
 DECLARATION

I, Chithralekha S (Reg. LCATMBA042), do hereby declare that, the project report titled “A study on
Customer satisfaction towards online food delivering companies” submitted to the University of
Calicut in partial fulfilment of the requirement for the award of Master of Business Administration is a
record of original work carried out by me, under the guidance of Jith Rajan, Assistant Professor,
LEAD College of Management, Dhoni, Palakkad.

I also declare that this exposition is a result of my own effort and has not been submitted earlier for
the award of any degree, diploma, or fellowship either to the University of Calicut or any other
university.

PLACE: PALAKKAD CHITHRALEKHA S

DATE: LCATMBA042

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 ACKNOWLEDGEMENT

I humbly bow before the ALMIGHTY GOD for giving me the strength and wisdom to complete this
project successfully.

I extend my deep sense of gratitude to Dr. THOMAS K GEORGE, Chairman, LEAD College of
Management for granting me the permission and facilities to do the project.

I am grateful to Prof. Jamal Zubair Muhammed, Mentor & Assistant Professor, LEAD College of
Management for the sincere and constant support that I have received throughout my academic
career.

I am highly indebted to JITH RAJAN (PROJECT GUIDE) Assistant Professor, LEAD College of
Management for his guidance and constant supervision throughout this project.

I would like to express my sincere gratitude to my dear parents and friends, for their support and
coordination rendered to me, to make this project a success and also, I would like to acknowledge my
deepest regards to all the teachers of LEAD College of Management, Palakkad for their impartial help,
support and guidance towards this project.

Finally, I thank all those who helped me, directly and indirectly, to carry out this project successfully.

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TABLE OF CONTENTS

Page
Chapters Title
No.
1.1 Introduction 7
Chapter 1 1.2 Industry Profile 10
1.3 Statement of the problem 16
Introduction
1.4 Objectives of the Study 16
1.5 Research Methodology 16
1.6 Scope of the Study 18
1.7 Limitation of the study 18
2.1 Literature Review 19
Chapter 2
Literature review 2.2 Theoretical Framework 24

Data analysis and interpretation 27

Chapter 3
Data analysis and
interpretation

4.1 Summary 56
Chapter 4 4.2 Findings 56
Findings and
Recommendations 4.3 Suggestions 59
4.4 Conclusion 60

Bibliography 61
Bibliography
and 62
Annexure Annexure

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 CHAPTER 1
INTRODUCTION

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1.1 INTRODUCTION
Online food delivery services is the emerging businesses in the present scenario. The fast moving
lifestyle, food ordering startups and global players inclined towards food ordering business are
making huge profits and company their valuation is continuously rising. Online food ordering
service can also be termed as order placed via internet with the commitment of delivering the
placed order in stipulated time at customer’s door step. It has been over a decade for e-commerce
firms making online businesses and delighting the customers. In India, this is an emerging
market for online food ordering services. 10 years back, companies like- Papa Johns, Pizza Hut,
McDonald’s, etc. which are still having global presence were delivering the fast foods to the
customer’s door step but due to easy availability of internet many entrepreneurs have identified
the gap and have started online businesses of food delivery to customers’ door step. People are
accessing the internet to order the food during lunch and dinner hours instead of calling to the
restaurant. There is a huge potential in this business which is already creating employment on
large scale. According to Internet and Mobile Association of India (IMAI), internet users in India
are expected to reach around 500 million till the end of 2018. (Economic Times, 20th Feb 2018)
As smartphones are the easiest mode to access internet, most food delivery companies are more
focused on creating user friendly interface to engage the customers. Customer service is very
vital aspect of any business area. In online food delivery sector customer’s first experience plays
a critical role in creating loyalty with any company. As food is the basic need of human being
hence this sector has abundant opportunities to grow and expand in various directions. Kotler
(2005) says that perception is basically a process through which information is received,
selected, organized and interpreted by an individual. Understanding local customer, their culture
and applying business practices is very important for restaurants to survive in this cut throat
competition. One of the main reasons for the growth of the online food ordering sector is the
purchasing power of customer which is growing drastically from last 4 to 5 years. In 2008, when
first food-tech company named “Zomato” entered in the market with the vision of creating
unique and dynamic service of displaying information about hotels and restaurants to customers
on their website. Zomato collected information about all types of restaurants including
customers’ reviews and feedbacks. Zomato has covered almost all main cities and hotels in their
database. Company gained more visibility when they started operations in 23 countries including
America, Australia and some part of Europe. Later on they started food delivery services but

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were not successful in taping the market for food delivery services as other local rival companies
like Food Panda, Swiggy, Faasos, Just Eat already captured the market. As global players like
McDonalds, Pizza Hut and other fast food owns their own websites for selecting menus
including delivery at customers door step, but due to increasing traffic on food delivery websites
these global fast food companies have to show their presence on aggregator’s websites. Although
these food delivery portals work on commission basis, simultaneously these online portals are
also helping all kinds of restaurants to gain profits. (Indian Food Services Trends 2004)
Consumers are finding helpful in accessing information of multiple restaurants in single
websites. In addition, consumers can also book tables in hotels in which they plan to visit for
lunch or dinner. Food delivery at door step will go on increasing because of changing life style in
urban population which will lead to exponential growth and tough competition to new entrants in
the market. More than 80% of orders are now coming from the top five cities in India, out of
more than 20 cities where online food delivery is active in this country. Due to this concentration
of orders, food delivery players in India have limited their expansion to newer towns and are
now are focusing on achieving operational efficiencies and profitability in Tier 1 cities only. To
garner a bulk of the share in this nascent market, which has witnessed the entrance of new
players from stables of global behemoths such as Google and Uber, Indian startups such as
Swiggy and Zomato have taken steps including fundraising or making acquisitions in order to
protect and gain their market share. Aggregators have to match the level of service and
transparency, via smartphone. The customer has to be able to play, see where their order is,
contact their driver at any time and even tip & rate from their phone after their food has arrived.
Technology companies like Bring are leading this field providing a platform for restaurant
chains, retailers or delivery businesses to give users the experience they want. In addition, they
help businesses optimizing routes and managing their fleet in real time. Services are economic
activities provided by one party to another party, most identically employing time-based
performances to bring about desired results in recipients themselves or in objects or other assets
for which customers have responsibility. Food Delivery services consist of two types. (a) Online
takeaway (b) Restaurant delivery. Online takeaway home can be termed as prepared food will be
delivered by third party delivery services. In this case, ownership of delivering the food to
customers’ doorstep belongs to companies like Food panda, just Eat, Swingy, etc. Restaurant
delivery means restaurant itself will take the ownership of delivering the food to customer. Food

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on demand service comes under B2C model where consumer place the order through website or
mobile app and third-party food delivery service provider (aggregators) promises to deliver the
order at the door step of the consumer. In this type of business model time factor plays a vital
role. There are several factors involved in implanting online food ordering services. Most
important factors are, internet, web portals or mobile apps and delivery time. Due to ease of
internet, world has come closer. Concept of IOT (internet on things) is becoming more popular.
People often look for easy and flexible options. Internet has become a larger platform for many
business sectors so as for food delivery firms. Internet speed / connection is also acting as a
catalyst for online food delivery services. Simultaneously website’s GUI (graphical user
interface) can also be game changing factor for these food ordering services. How Food Online
Ordering and Delivery Service Works? Food Delivery firms does not need to worry about
preparing food. Their business is to deliver food in time. On an average they charge 10 to 15%
commission per order depending upon the package given by companies to restaurants. Customer
orders food from website or mobile app wherein information of restaurants is present. Based on
review and ratings customer places an order. Next move is taken by restaurant to inform to
delivery agent regarding order, estimated time to prepare an order and destination address. After
confirmation of order and delivery time, delivery service provider informs the customer
regarding confirmation and time required to deliver food.

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1.2 INDUSTRY PROFILE

The online food delivery services market consists of sales of online food delivery services and
related services primarily for household consumption. The online food delivery services market
includes all companies involved in distributing the packages received from hospitality
establishments and have an online portal or an application for their sales. The food can be either
ready-to-eat food or food that has to be specially prepared for direct consumption. Online food
delivery service has two segments, restaurant-to-consumer delivery includes delivery of order
directly by the concerned restaurant, whereas, Platform-to-consumer segment involves online
delivery services that deliver orders of partner restaurants. The global online food delivery
services market covered in this report is segmented by type into platform-to-customer, restaurant
-to-customer; by channel type into websites, mobile applications and by payment method into
cash on delivery, online payment. The regions covered in this report are Asia-Pacific, Western
Europe, Eastern Europe, North America, South America, Middle East and Africa. Cost of supply
chain and logistics will be the key restraint for the online food delivery services market. This
cost includes the cost incurred for order fulfilment, delivery cost, adjusting business resources to
dynamic market demand and last-mile connectivity. Besides, there are costs of cardboard boxes
for packaging, gas, mileage and the cost for hiring a driver. The supply chain and logistics has to
be in place in order to avoid the spoilage of products with limited shelf life. According to the
report by Capgemini, in 2019, the retailers could lose up to 26% of their profit if they fail to
upgrade their logistics system to ensure on-time delivery despite the increased online grocery
system. Therefore, the costs incurred by the supplier side may restrain the growth of the online
food delivery services market. In January 2020, Zomato, an Indian food delivery services
company, has acquired Indian operations of Uber Eats for $350 million in an all-stock
transaction. The combined entity of Zomato and Uber Eats India is expected to corner more than
a 50-55% market share in terms of the number and value of orders. Uber Eats is an online food
delivery services vertical of Uber, a US-based ride-hailing company. An increase in smartphone
users has given a boost to online food delivery services worldwide. Smartphone users are the
primary online shoppers for the F&B industry and an increase in the number of smartphone users
reflects a potential increase in online shopping for food and beverages.

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The world F&B e-commerce users reached 1.5 billion in 2019 and are expected to grow by 800
million, with an average of 25% y-o-y growth, by 2024. Indian food delivery platform, Zomato,
has 80 million monthly active users and has set targets of reaching 20 million over the next few
years. Hence increase in smartphone users and internet penetration is driving growth in online
food delivery services. Upgradation of the distribution network to a more decentralized system,
Distribution 4.0, is trending in the food delivery services market. In Distribution 4.0, suppliers’
partner with multiple players for the best market coverage between urban and rural markets,
focusing their efforts on marketing, branding, and in-store merchandising to create best-in-class
shopper experience. They are likely to partner with aggregators, e-comm delivery companies,
rural distribution companies, and distribution arms of modern trade to drive coverage. E-
commerce aggregator Amazon, has announced plans to team with many small-scale businesses,
retail outlets, and rural supermarkets, to increase their last-mile connectivity. Therefore, the trend
of Distribution 4.0 is envisioned to bring in some positive effects on the online food delivery
services. The countries covered in the market report are Australia, Brazil, China, France,
Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA. The global online food
delivery market is driven by the convenience of ordering food by these applications, which offer
an easy comparison between the menus of several restaurants. Also, these companies deliver
food at the desired location at any time, which impacting the industry positively. The industry is
finding an impetus for its growth in the ease of payment and the option to go cashless through
these platforms as the consumers are increasingly seeking virtual payment options, which also
offer them various discounts occasionally. The increasing penetration of smartphones all over the
world has led to the upsurge of different online food delivery companies in the food industry as it
is highly dependent upon the digital medium for its growth. The global market is further being
driven by the enormous variety of food items and different cuisines it offers at the customer's
doorstep so that they can acquire the taste of several distinct dishes. These services help service
providers extract detailed customer information to enhance their experience by developing and
implementing promotional strategies. The global online food delivery industry is also driven by
the hectic lifestyles and rapid urbanization, leading customers to increasingly choose the service.
The development of user-friendly food websites and applications and improved logistics are
aiding the market growth further.

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Global scenario

The global online food delivery services market is expected to grow from $107.44 billion in
2019 and to $111.32 billion in 2020 at a growth rate of 3.61%. The slow growth in 2020 is
mainly due to the economic slowdown across countries owing to the COVID-19 outbreak and
the measures to contain it. The market is then expected to grow and reach $154.34 billion in
2023 at CAGR of 11.51%.The Asia Pacific was the largest region in the online food delivery
services market in 2019. North America was the second largest region in the online food delivery
services market in 2019.In January 2020, Zomato, an Indian food delivery services company, has
acquired Indian operations of Uber Eats for $350 million in an all-stock transaction. The
combined entity ofraf Zomato and Uber Eats India is expected to corner more than a 50-55%
market share in terms of the number and value of orders. Uber Eats is an online food delivery
services vertical of Uber, a US-based ride-hailing company. An increase in smartphone users has
given a boost to online food delivery services worldwide. Smartphone users are the primary
online shoppers for the F&B industry and an increase in the number of smartphone users reflects
a potential increase in online shopping for food and beverages. The world F&B e-commerce
users reached 1.5 billion in 2019 and are expected to grow by 800 million, with an average of
25% y-o-y growth, by 2024. Indian food delivery platform, Zomato, has 80 million monthly
active users and has set targets of reaching 20 million over the next few years. Hence increase in
smartphone users and internet penetration is driving growth in online food delivery services. The
cost of supply chain and logistics will be the key restraint for the online food delivery services
market. This cost includes the cost incurred for order fulfillment, delivery cost, adjusting
business resources to dynamic market demand and last-mile connectivity. Besides, there are
costs of cardboard boxes for packaging, gas, mileage and the cost for hiring a driver. The supply
chain and logistics has to be in place in order to avoid the spoilage of products with limited shelf
life. According to the report by Capgemini, in 2019, the retailers could lose up to 26% of their
profit if they fail to upgrade their logistics system to ensure on-time delivery despite the
increased online grocery system. Therefore, the costs incurred by the supplier side may restrain
the growth of the online food delivery services market.

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Indian Scenario

The online food delivery market in India is growing in tandem with evolving lifestyle patterns
and eating habits of Indians. Hectic work schedules and rise in disposable incomes have
popularized food delivery, especially in urban areas. The online food delivery market in India is
expected to expand at compound annual growth rates of ~30.55% (based on revenue) and
~10.19% (based on the number of users) during the 2020-2024 period, to generate a revenue of
INR ~1,334.99 Bn and develop a user base of ~300.57 Mn by 2024. Major players currently
operating in the Indian online food delivery market include platform-to-customer service
providers like Swiggy (Bundl Technologies Private Limited), Fresh Menu (Food Vista India
Private Limited), Faasos (Rebel Foods Private Limited) and Zomato (Zomato Media Private
Limited). Apart from these, there exist certain companies that operate with a restaurant-to-
customer delivery model like Box8, Domino's (Domino's Pizza, Inc.), and KFC (Yum! Brands,
Inc.). As of 2019, millennials accounted for ~63% of the overall user base of the online food
delivery market. This is owed to increasing disposable income of the millennials, especially in
the urban regions in India. Also, millennials prefer ordering food online since it is easy to handle
and saves time and energy of cooking at home. In 2019, out of the major online food delivery
service providers, Zomato held a share of ~38% in terms of user base. Swiggy held a share of
~27% in the online food delivery user base of India in 2019. High adoption rates in tier I and tier
II cities, as well as swift delivery services has helped these two companies to gain the high share
in the Indian market. In the recent years, the number of working women has increased in the
Indian workforce, especially in the city-based organized sectors. As a result, the number of
double income families in also on the rise. With both the partners working and maintaining
hectic working schedules, it become difficult for people to get time and energy to cook at home.
Moreover, the dual income scenario has increased the overall spending capacity of the families.
Also, the key players like Swiggy, and Zomato keep on announcing lucrative offers for the
customers, both existing and new, in order to keep up the stiff competition in the online food
ordering market. This in turn is leading towards people’s preference towards ordering food
online and enjoying their favourite cuisine at home at an affordable price, thereby increasing the
overall value and user base of the online food ordering market in India.

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Company Profile

1. Zomato

It is unlikely that a food lover’s phone won’t have the Zomato online food delivery app. The app
was launched in 2008 by Deepinder Goyal and Pankaj Chaddah. It started with providing
reviews and information about restaurants and gradually natured into online table reservations
and online food delivery. It is already operational in 24 countries across the world. Zomato
aspires to be your online food delivery partner no matter which part of the world you are in.
Zomato has brought together big and small restaurants filtered by your GPS location on a single
platform for the consumer’s benefit. The menus are scanned and uploaded, and you can also get
reviews from people who have had previous experience with the place. Add attractive deals to
the equation, and you have in your hand the power to choose basis your personal preference,
reviews and ratings, and price benefits. No wonder it is a top-rated food delivery app across most
cities and Tier B towns. With both Android and iOS, Zomato also offers both cash on delivery
and an online payment mode and provides live tracking of the order.

2. Swiggy

Based in Bangalore and operated by Bundl Technologies Private Limited, Swiggy was founded
in 2014 by Nandan Reddy, Rahul Jaimini, and Sriharsha Majety. They started their journey with
food delivery in Bangalore. This hyperlocal food delivery app currently operates in 25 cities in
India and has about 40000 restaurants globally. Swiggy has established a reputation for itself in
the online food delivery space in a short span. You can search by cuisine, restaurant, location and
check the reviews and ratings before placing your order. Live-location mapping is enabled for
Swiggy users to track the delivery guy. They also have a feature called Swiggy Pop, and wherein
single-serve meals can be ordered with just a tap and prices as low as Rs. 50. This feature
enables one to order food for only one person without worrying about wastage and eliminates the
hassle of typing unnecessarily to fulfill the minimum billing condition. With no restrictions on
the billing amount and quick and prompt delivery, Swiggy is leading the list of players in the
online food delivery domain.

3. Domino’s

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Domino’s is very well known in India’s food space as the ultimate pizza restaurant and rightly
so. If you are in the mood to have a pizza with some pasta and sweet cakes to go with it, then
Domino’s online food delivery app should be on your mobile. Available for iOS, Android, and
Windows mobiles, the Domino’s ordering app provides an easy way to order your favorite pizza
from the brand without having to go to the restaurant and wait in queues. The most attractive
feature is the coupons that Domino’s offers to web and mobile app users when ordering their
food. You get the cheapest and best rates on online ordering from Domino’s app. Domino’s
guarantees delivery in just 30 minutes. Secure payment gateways, order customization to have
your food your way, and easy user navigation and experience are key features you experience
when ordering Domino’s online app.

4. Uber Eats

Previously stylised as UberEats, Uber Eats is the subsidiary venture of Uber Technologies that
owns the popular cab service provider Uber and is headquartered in San Francisco, California.
The food delivery chain was launched in August 2014, and the app is available on Android and
iOS both. Uber eats operates in 1000+ major cities and various countries around the world. It
instantly became a popular food delivery app in India because people associated it with the same
emotion as their cab service. Uber Eats also allows you to choose from several restaurants basis
price, cuisine, restaurant, and delivery time. Relish quality food delivered at your doorstep
quickly with Uber Eats. You can pay as cash on delivery, by net banking, wallets, and other
credit and debit cards from your phone. Getting food from your nearby restaurant and hailing a
cab has never been easier than this.

5. FoodPanda

Headquartered in Berlin and founded in 2012, Foodpanda is operational in 40 countries and

territories across the world. It arrived in India in 2013 and has been striving to live to its motto of
‘making online food ordering fast and easy’. With a 10000+ restaurant base in India, it offers
dozens of cuisines from these restaurants across hundreds of small and big cities. You can rely
on the food panda for getting your breakfast, lunch, and dinner delivered to your doorstep. Late-
night cravings are no more a problem. Foodpanda also offers attractive deals and discounts on
online food ordering. With features like live location tracking, online and COD payment

15
methods, it aims to provide delicious food at excellent prices and quicker delivery for its users.
The app is available for both iOS and Android users, and using it is pretty straightforward

1.3 STATEMENT OF THE PROBLEM

In recent years, the Online food delivery companies has absolutely exploded, to the point that
there are now many people who will only buy food through Online. It’s not difficult to
understand the potential benefits of Online food delivery, but at the same time there are also
people who are depending on the traditional mode of buying the food. Hence this research is
conducted to analyze the level of satisfaction of the customers while depending on the online
food delivery companies and the factors driving them to buy food through online.

1.4 OBJECTIVES OF THE STUDY

• Review of the factors driving customers to order online via the platform for food delivery
• Analyzing the challenges faced by the customers
• To research the level of customer satisfaction using the apps.

1.5 RESEARCH METHODOLOY

The study is on the Customer satisfaction towards online food delivery companies and the
current study is based on the primary and secondary data. Primary data collected from 100
respondents from different parts of Kerala. A well-structured questionnaire was designed to
collect information from the respondents to know about the customer satisfaction towards online
food delivery companies and the major challenges faced by customers. Secondary data like
information from company website, researches and other published records of company are also
used for conducting this study.

RESEARCH DESIGN

Descriptive research design is used in this study to analyze and investigate about the variables.

SOURCES OF DATA

The present study uses both primary and secondary data Sources

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Primary Data

It is collected from the respondents through online using a structured questionnaire. Was
designed in such a way that it consists of questions related to individual basis. Interviews and
observation methods also used.

Secondary data

The secondary datas collected for this study were the information from company website,
journals and other published records of the company.

SAMPLING DESIGN

The current study is based on primary data collected from 100 respondents from the different
parts of Kerala. A well-structured questionnaire was designed to collect the information from the
respondents the questionnaire was designed to study the customer satisfaction towards online
food delivery companies. The responses have been collected through online mode.

SAMPLE SIZE:

Sample size: 100

SAMBLING TECHNIQUE

The study was conducted among customers of online food delivery companies. There are lots of
customers in this area. The respondents were selected using Convenient Sampling and the
questionnaires were administered to each respondent. The study deals with the satisfaction and
preference of online food delivery companies.

SAMPLING PROCEDURE:

The researchers adopted convenient sampling method for collection of primary data, as it is not
possible to take appointment from a large number of respondents. Purpose of this research was
told to respondents and questions were explained to them in case there was any need for
understanding any particular questions.

Research Instrument

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The research instrument used for the study is structured questionnaire.

1.6 SCOPE OF THE STUDY

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 Kerala region 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.

1.7 LIMITATIONS

• The sample size is small for the accurate study of the customer.
• Some respondents might have given biased answers which might have an
• impact on the findings of the studies.
• Lack of prior research studies on the topic respondents don't have time to read
• the full questionnaire as they fill it randomly.
• Due to small size of sample, it's difficult to identify significant relationship
• with the customers.
• Respondents tried to escape some statements by simple answering.

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 CHAPTER 2

REVIEW OF LITERATURE

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2.1 REVIEW OF LITERATURE

Hong Lan, et al, (2016), online food delivery market is immature yet; there are some obvious
problems that can be seen from consumers‟ negative comments. In order to solve these
problems, we can neither rely merely on the self-discipline of online food delivery restaurants
nor the supervision and management of online food delivery platforms. Only by taking laws as
the criterion, with the joined efforts of the online food delivery platforms and restaurants, the
government departments concerned, consumers and all parties in the society, can these problems
be solved and a good online take away environment can be created.

Yusra, Agus, (2019), Their research attempts to investigate and check data to direct the online
specialist organizations in regards to the necessities and properties of this new help conveyance
framework. Their study intends to research the connections between clients saw administration
nature of online food conveyance (OFD) and its effect on consumer loyalty and client
unwaveringness, directed by close to home inventiveness.

Chai Lau, David ng (2019), The rise of the online food conveyance administrations could be
credited to the changing idea of metropolitan shoppers. Notwithstanding the significance and the
changing shopper conduct towards OFD administrations in Malaysia, considers that address the
contributing components towards OFD administrations among urbanites still stay inadequate.
Henceforth, the target of this exploration is to set up a coordinated model that research the
relationship of a few predecessors (saw usability, efficient direction, comfort inspiration and
protection and security) with the conduct expectation towards OFD administrations among
Malaysian metropolitan occupants.

Dr. Sonali Jadav (2018), “Food ordering Mobile Application a new wave in Entrepreneurship”,
Online food ordering is a process that delivers food or take away, from home chef, local and
other food cooperatives through a mobile application or through a website. More than 50% of the
food market is in the unorganized sector. However, this market is growing urbanization,
increasing disposable income, working women and rapid increase in the use of smart phone.

Ayush Bellya (2019), “Satisfaction of consumers by using online food services” Stated that Our
research was conducted to deal with consumer behavior & helps to analyze their perceptions &
will also help us to understand consumer equilibrium. Online food ordering is growing in Indian

20
market day by day. Indian people are so active while using the apps for ordering food online, by
conducting the above research we came to know that the foods apps are successful in capturing a
market in Indian economy as almost every person uses it.

Dr. M. Kalimuthu, Ajay (2020), The study discloses that youngsters are more inclined to uber
eats online food delivery system compared to elder people. The second most influencing factor is
uber eats is faster delivery and more restaurants option; the next most influencing factor is
discounts and special offers. The changing lifestyle of the consumers and expansion of online
food delivery in India has undoubtedly transformed the trends in online food ordering and
delivery scenario.

Musei Clinton (2019), studied about “The design & implementation of online food ordering
system” In this study, Empirical approach has been used. It says that the design phase was
concerned primarily with the specification of the system elements in manner that best met the
organization business needs. Effective implementation of this software product would eliminate
many problems discovered during system investigation.

Abisheksingh, Adithya (2018), studied about “The online food ordering system” In this study
Descriptive method was used 100 samples have been taken. They found if people know to
operate android smart phone wide variety of people can use the application. This system will
solve important problems of people implementation of online food ordering system is done.
Receiving orders & modifying data is possible through the application & it’s also help admin in
controlling food order system.

Ashish Rathod (2018), examined about, “Food finder-mobile food ordering application” with a
Descriptive methodology 180 sample size has to be taken for her research, the proposed online
restaurants system is time saving & errors free as compared to the traditional system. The
proposed system would attract customers & also adds the offers on food items so increase the
restaurants market online also. The restaurants food ordering application can handle the billing
hence, it is the modem way to grow up the business using E-commerce. The idea of the advanced
e-restaurants can also be extended for future using GPRS accessible module.

Dr. Neha Parashar (2017), undertook “A study on consumer perception & attitude towards
digital food app services” For primary data Survey method has been taken & for secondary data

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newspaper, magazines, journals etc. were used. 129 sizes of samples have been taken; this study
concluded that the special apps are convenient way for the consumers to place orders & for the
company to attract further more consumer but the comfort of usage must be given higher
preference. Cash on delivery is most preferred option of payment by the respondent are also in
the growth stage.

Ramesh Kumar Bagla, Jasmine Khan (2017), examined the “The consumer’s expectations &
satisfaction with online food ordering” The author has collected his data using Descriptive
method 200 samples size taken, they say that lack time to prepare food, availability of variety,
rewards & cashbacks. There is a scope for improving the user’s satisfaction levels by
understanding their expectations more precisely & offering more attractive options while
ordering food online.

Ganapathi, Shanab (2019), This study aims to determine the key success factors that lead to customer
satisfaction and loyalty, as well as customers’ satisfaction levels with their respective service providers. 263
surveys were randomly collected through an online questionnaire and analyzed to test the hypotheses of the
research model and answer the research questions. This research sheds light on the mediation role of customer
satisfaction on the relationship between service provider quality and loyalty. Overall, the study provides
valuable insights for the successful operation of online food ordering services in Qatar.

Bagla and Khan (2017), noted that there is a fast growth in the food takeaway and delivery
market, with the rapid increase in online ordering which is facilitated by the high penetration rate
of m-commerce. Digitization in terms of food menus as well as discovering food options are
fundamental to consumers.

Suhartanto (2019), also agree in his research the uninterrupted effect of food quality on online
is customer loyalty, but not online service quality. Besides that, it also discloses the fractional
negotiation role of customer satisfaction and perceived value on the relationship between both
food quality and online service quality very important for online food services delivery system.

Norcia (2020), This research was conducted to examine the satisfaction of customers by using
online food delivery services in Malaysia using a quantitative method. It will deal with consumer
behavior, needs, and user requirement elements in analyzing their perceptions and satisfaction

22
that will give the best-indicated system to understand consumer stability. For the
accomplishment of this research, the survey was distributed to the public via online.

H.S. Sethu & Bhavya Saini(2016) their aim was to investigate the student's perception,
behaviour and satisfaction of online food ordering and delivery services. Their study reveals that
online food purchasing services help the students in managing their time better. It is also found
that ease of availability of their desired food at any time and at the same time easy access to
internet are the prime reasons for using the services.

Kamakshi ( 2019), The major findings were that consumer of fast food are health conscious and
they do not have emotional attachment for fast food products. And the consumers consume fast
food not only because of the taste, price, offers, and discounts rather they consider the Quality,
health and hygiene factors of the fast food.

Yeo et al, (2017) found that as long as customers find that mobile food ordering applications
(MFOAs) is enjoyable and fun, they regard them as useful and helping in making their life
easier, and therefore they are more likely to have positive attitudes toward them and intention to
reuse such applications in the future.

Sethu , Bhavya (2016), The study revealed that the online food ordering services was used by
100 percent of the respondents, and the buying decisions were largely influenced by opinions of
friend’s family and discussions on online forums. The study reveals that good word of mouth and
experiences by existing customers and online forums decides the success of web based food
shopping.

Vinish , Prakash (2019), The result of the study indicated a positive association between the
constructs ‘buying motives’, ‘aggregator attractiveness’, and customer satisfaction. The variation
in customers` satisfaction is largely attributable to the convenience of order placing, food quality,
availability of food and restaurant reviews, offers and discounts, faster home delivery, and the
wide choice of restaurants listed on the aggregator’s website. Additionally, the aggregator
attractiveness showed a higher impact on customer satisfaction as compared to buying motives.

23
2.2 THEORETICAL FRAMEWORK

Online Food delivery Industry

Online food delivery assists individuals in ordering and receiving the desired food products at the
doorstep. It involves browsing the website or application, selecting from a wide variety of
cuisines available and making the payment through different methods. The website/application
updates the user about the expected duration of food preparation and delivery. These features, in
confluence with attributes such as ease, speed and precision of delivery, are increasing the
demand for these services in India. The market is currently witnessing growth on account of the
increasing access to high-speed internet facilities and the boosting sales of smartphones. This, in
confluence with the growing working population and inflating income levels, is propelling the
online food delivery market growth in India. Although the players are mainly concentrated in the
urban regions of the country, with Bangalore, Delhi and Mumbai representing the three largest
markets, vendors are now also targeting smaller cities, as they have strong growth potential.
Moreover, the rising trend of the on-the-go food items and quick home delivery models that offer
convenience, ready-to-eat (RTE) and cheaper food delivery options are escalating the demand
for online food delivery services in the country. Furthermore, owing to the rising cases of
COVID-19, some of the leading players like Zomato, McDonald's Corporation and Domino’s
Pizza Inc. have introduced contactless delivery services. These services ensure that the food
reaches the customer without being touched by bare hands and is delivered safely with adequate
social distancing measures.

Challenges faced by Online Food delivery Companies

1. Shifting Customer Preference

With countless on-demand food delivery apps in the market, customer retention has
become very difficult. The food delivery service needs to understand likes and dislikes of
the customer and offer incentives and offers based on preferences.

2. Fluctuating Market Prices

24
The need to offer competitive pricing puts great pressure on businesses dealing in food delivery.
Food prices keep fluctuating and it is not easy to keep track with market prices, which prevents
in implementing the right pricing strategy.

3. Maintaining Food Quality Standards

It is a challenging task to maintain the quality of food being delivered at customers’ location.
Food is always prone to quality lapse and implementation of proper logistics is crucial to provide
timely deliveries.

4. Improper Food Handling

Lack of training in how to handle food delivery is one of the reasons for improper food handling.
Food delivery services need to have proper measures in place to ensure proper hygiene and
safety standards are maintained.

5. Big Industry Players

With the on-demand food delivery showing great growth, big industry players having immense
resources have been able to take a bigger market share. For small players, it becomes very
difficult to gain a customer base.

6. The Logistics Dilemma

Businesses dealing with food need to take into account various parameters like what will be the
delivery coverage area, how to maintain food quality, freshness for far-off locations, allocation
of resources like manpower, fleet and so on. An absence of proper logistics management would
lead to customer dissatisfaction and loss of orders.

7. Unreliable Delivery

Unreliable delivery can be because of reasons like traffic, order volume, lack of training, and
lack of proper scheduling and route planning. The food delivery can be unreliable if there is a
shortage of delivery staff.

25
8. Inability to Cope with Demand

Inability to cope with demand leads to increased delivery times and compromises food quality.
Accept orders keeping in mind your resources and ability to deliver on time. Most restaurants
cannot manage operations and logistics for delivering a large number of orders.

9. Payment Methods

Lack of multiple payment methods would lead to customers cancelling their orders and
switching to another food delivery service. Refund process in cases of failed payments or
cancelled orders also needs to be implemented.

10. Customer Service

On-demand food delivery services need to provide different channels of communication like
email, live chats, social media and phone calls to customers. Customers prefer to be kept in the
loop regarding the status of their food delivery order.

26
 CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

27
TABLE 3.1

Age Category

AGE NUMBER OF RESPONDENTS PERCENTAGE

18-24 67 44.67%
25-40 46 30.67%
41-56 22 14.67%
above 56 15 10%
Total 150 100%

Total
80

70

60

50

40
Total
30

20

10

0
18-24 25-40 41-56 above 56

The above table shows that 44.67% respondents belongs to 18 to 24 age category, 30.67%
belongs to 25-40 age group, 14.67% belongs to 41 to 56 age group and 10% of the respondents
are above 56 age category.

28
Table 3.2

Occupation category

OCCUPATION NUMBER OF PERCENTAGE

RESPONDENTS
EMPLOYED 52 34.67%
ENTREPRENRUR 21 14%
STUDENT 77 34.67%
TOTAL 150 100%

Total
90
80
70
60
50
40 Total

30
20
10
0
Employed Entrepreneur Student

INTERPRETATION

The above table shows that 34.67% of the respondents are employed, 14% are entrepreneur and
34.67% belongs to student category.

29
TABLE 3.3

Gender category

GENDER NUMBER OF PERCENTAGE

RESPONDENTS
FEMALE 69 46%
MALE 81 54%
TOTAL 150 100%

Total
82
80
78
76
74
72
Total
70
68
66
64
62
Female Male

INTERPRETATION

The above table shows that 46% is female respondents and 54% is male respondents.

30
TABLE 3.4

Preference of ordering food in online

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
OFTEN 90 60%
VERY OFTEN 37 24%
VERY RARELY 23 15.33%
TOTAL 150 100%

Total
100
90
80
70
60
50
Total
40
30
20
10
0
Often Very often Very rarely

INTERPRETATION

The above table shows that 60% of the respondents likes to order food online often, 24% are
very often, 15.33% rarely likes to order the food in online.

31
TABLE 3.5

Preference of food ordering application

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
DOMINOZ 1 0.67%
SWIGGY 66 44%
UBER EATS 25 16.67%
ZOMATO 58 38.67%
TOTAL 150 100%

Total
70

60

50

40
Total
30

20

10

0
Dominoz Swiggy Uber Eats Zomato

INTERPRETATION

The above table shows that 0.67% of the respondents prefer to order food in online from
Dominos, 44 % prefer Swiggy, 16.67% prefer Uber eats and 38.67% of the respondents prefer to
order from Zomato.

32
TABLE 3.6

Preference of more than one food ordering application in mobile phone

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 63 42%
DISAGREE 28 18.67%
NEUTRAL 38 25.33%
STRONGLY AGREE 9 6%
STRONGLY DISAGREE 12 8%
TOTAL 150 100%

Total
70

60

50

40

30 Total

20

10

0
Agree Disagree Neutral Strongly agree Strongly
disagree

INTERPRETATION

The above table shows that 42% of the respondents agrees that they have more than one online
food ordering app available in their mobile, 18.67% disagree the statement, 25.33% have neutral
opinion on it, 6% strongly agrees it and 8% of the respondents strongly disagree that they don’t
have more than one online food ordering app in their mobile.

33
TABLE 3.7

Factor influencing them in selecting food online delivery application

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
CHANGE OF PREFERENCE 17 11.33%
COST EFFECTIVENESS 6 4%
EASY AND FLEXIBLE 23 15.33%
PAYMENT GATEWAY
EVER INCREASING 33 22%
RESTAURANT OPTION
FASTER DELIVERY 71 47%
TOTAL 150 100%

Total
80
70
60
50
40
30
Total
20
10
0
Change of Cost Easy and Ever increasing Faster delivery
preference effectiveness flexible restaurant
payment option
gateway

INTERPRETATION: The above table shows that 11.33% of the respondents says that change
of preference is the factor which influence them the most in selecting an online food delivery app
, 4% of them says about cost effectiveness, 15.33% says about easy and flexible payment
gateway, 22% says about ever increasing restaurant option and 47% of them says that faster
delivery is the factor which influence them the most in selecting an online food delivering apps.

34
TABLE 3.8

Availability of food apps as the taste and preference

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 67 44.67%
DISAGREE 34 22.67%
NEUTRAL 26 17.33%
STRONGLY AGREE 10 6.67%
STRONGLY DISAGREE 13 8.67%
TOTAL 150 100%

Total
80
70
60
50
40
30
Total
20
10
0
Change of Cost Easy and Ever increasing Faster delivery
preference effectiveness flexible restaurant
payment option
gateway

INTERPRETATION

The above table shows that 44.67% of the respondents agrees that food available on food apps is
as per their taste and preference , 22.67% disagrees the statement , 17.33% of them have neutral
opinion on it , 6.67% of them strongly agrees to it and 8.67% of the respondents strongly
disagrees to the statement.

35
TABLE 3.9

Rating the overall satisfaction from food ordering applications

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
HIGH 45 30%
LOW 14 9.33%
MEDIUM 91 60.67%
TOTAL 150 100%

Total
100
90
80
70
60
50
Total
40
30
20
10
0
High Low Medium

INTERPRETATION

The above table shows that 30% of the respondents rated the overall satisfaction in all the food
apps available is high, 9.33% rated it as low and 60.67% respondents rated it as medium
satisfaction level.

36
TABLE 3.10

Will order in food online only after doing comparative analysis in different applications

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 55 36.67%
DISAGREE 41 27.33%
NEUTRAL 36 24%
STRONGLY AGREE 8 5.33%
STRONGLY DISAGREE 10 6.67%
TOTAL 150 100%

Total
60

50

40

30
Total
20

10

0
Agree Disagree Neutral Strongly agree Strongly
disagree

INTERPRETATION

The above table shows that 36.67% of the respondents agrees that they will order food in online
food ordering applications only after doing the comparative analysis in different applications ,
27.33% of the respondents disagrees the statement , 24% of the respondents have neutral opinion
to it, 5.33% strongly agrees to it and 6.67% of them strongly disagrees the statement.

37
TABLE 3.11

Challenges faced while ordering food in online

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
DELAY IN DELIVERY 56 37.33%
FOOD QUALITY 30 20%
ORDER TRACKING 17 5.33%
PRICE 47 6.67%
TOTAL 150 100%

Total
60

50

40

30
Total

20

10

0
Delay in delivery Food quality Order tracking Price

INTERPRETATION

The above table shows that the 37.33% of the respondents says that the major challenge faced by
them from online food delivery applications is delay in delivery, 20% of them says about food
quality, 5.33% of them says about order tracking and 6.67% of the respondents says that price us
the major challenge for them.

38
TABLE 3.12

Whether the customer faces the issue in ordering in online or not

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
MAYBE 24 16%
NO 36 24%
YES 90 60%
TOTAL 150 100%

Total
100
90
80
70
60
50
Total
40
30
20
10
0
Maybe No Yes

INTERPETATION

The above table shows that 16% of the respondents says that they sometimes face issues while
ordering in online food delivery applications, 24% of them don’t have any issues on that and
60% of them faces the issue.

39
TABLE 3.13

Mode of payment

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
CASH ON DELIVERY 85 56.67%
NET BANKING 27 18%
UPI 28 25.33%
TOTAL 150 100%

Total
90
80
70
60
50
40 Total

30
20
10
0
Cash on delivery Net Banking UPI

INTERPRETATION

The above table shows that 56.67% of the respondents prefer the cash on delivery as their mode
of payment, 18% of them choose net banking and 25.33% prefer UPI payment option.

40
TABLE 3.14

Delivery issues

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 64 42.67%
DISAGREE 29 19.33%
NEUTRAL 30 20%
STRONGLY AGREE 15 10%
STRONGLY DISAGREE 12 8%
TOTAL 150 100%

Total
70

60

50

40

30 Total

20

10

0
Agree Disagree Neutral Strongly Agree Strongly
Disagree

INTERPRETATION

The above table shows that the 42.67% of the respondents agrees that they their food might not
get delivered to them well within time, or might not get delivered to them at all , 19.33% of them
disagrees the statement , 20% of them have neutral opinion towards it , 10% of them strongly
agrees it and 8% of them strongly disagrees the statement

41
TABLE 3.15

Taste difference in online food ordering applications

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 70 46.67%
DISAGREE 17 11.33%
NEUTRAL 28 18.67%
STRONGLY AGREE 21 14%
STRONGLY DISAGREE 14 9.33%
TOTAL 150 100%

Total
80

70

60

50

40
Total
30

20

10

0
Agree Disagree Neutral Strongly agree Strongly
disagree

INTERPRETATION

The above table shows that 46.67% of the respondents agrees that they don’t feel any taste
difference while ordering in food online, 11.33% of the respondents disagrees the statement,
18.67% of them have neutral opinion towards to it, 14% of them strongly agrees the statement
and 9.33% of the respondents strongly disagrees the statement.

42
TABLE 3.16

Are they comfortable in ordering food in online and eating it at home?

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 62 41.33%
DISAGREE 30 20%
NEUTRAL 24 16%
STRONGLY AGREE 19 12.67%
STRONGLY DISAGREE 15 10%
TOTAL 150 100%

Total
70

60

50

40

30 Total

20

10

0
Agree Disagree Neutral Strongly agree Strongly
disagree

INTERPRETATION

The above table shows that 41.33% of the respondents agrees that they are more comfortable and
they can party according to their choice, so the prefer to order online, 20% of them disagrees the
statement, 16% of them have neutral opinion to it, 12.67% of them have strongly agrees to it and
10% of them strongly disagrees to it.

43
TABLE 3.17

Availability of favorite food at one junction

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 73 48.67%
DISAGREE 20 13.33%
NEUTRAL 27 18%
STRONGLY AGREE 16 10.67%
STRONGLY DISAGREE 14 9.33%
TOTAL 150 100%

Total
80

70

60

50

40
Total
30

20

10

0
Agree Disagree Neutral Strongly agree Strongly
disagree

INTERPRETATION

The above table shows that the 48.67% of the respondents agrees that they like order online
because it has their favorite foods at on junction, 13.33% of them disagrees the statement, 18%
of them have neutral opinion to it, 10.67% strongly agrees it and 9.33% strongly disagrees the
statement.

44
TABLE 3.18

Availability of Price comparison of favorite dishes

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 59 39.33%
DISAGREE 39 26%
NEUTRAL 20 13.33%
STRONGLY AGREE 18 12%
STRONGLY DISAGREE 14 9.33%
TOTAL 150 100%

Total
70

60

50

40

30 Total

20

10

0
Agree Disagree Neutral Strongly Agree Strongly
Disagree

INTERPRETATION

The above table shows that 39.33% of the respondents says that they like to order online because
they can compare the price of their favorite dishes from various restaurants by just one click,
26% of the disagrees it, 13.33% of them have neutral opinion on it, 12% of them strongly agrees
to it and 9.33% of the respondents strongly disagrees the statement.

45
TABLE 3.19

Availability of discounts

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 56 37.33%
DISAGREE 41 27.33%
NEUTRAL 19 12.67%
STRONGLY AGREE 19 12.67%
STRONGLY DISAGREE 15 10%
TOTAL 150 100%

Total
60

50

40

30
Total
20

10

0
Agree Disagree Neutral Strongly Agree Strongly
Disagree

INTERPRETATION

The above table shows that 37.33% of the respondents says that they to order from online
because it gives them greater discount, 27.33% of them disagrees the statement, 12.67% of them
have neutral opinion on it, 12.67% strongly agrees the statement, 10% of them strongly disagrees
the statement.

46
TABLE 3.20

Availability of attractive combinations of food at fair price

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 67 44.67%
DISAGREE 39 26%
NEUTRAL 17 11.33%
STRONGLY AGREE 16 10.67%
STRONGLY DISAGREE 11 7.33%
TOTAL 150 100%

Total
80

70

60

50

40
Total
30

20

10

0
Agree Disagree Neutral Strongly Agree Strongly
Disagree

INTERPRETATION

The above table shows that 44.67% of the respondents states that they like to order online
because it gives them attractive combination at fair price, 26% of them disagrees the statement,
11.33% of them have neutral opinion on it, 10.67% strongly agrees the statement and 7.33% of
the respondents strongly disagrees the statement.

47
TABLE 3.21

Availability of assistance provided by food ordering applications

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 74 49.33%
DISAGREE 27 18%
NEUTRAL 22 14.67%
STRONGLY AGREE 18 12%
STRONGLY DISAGREE 9 6%
TOTAL 150 100%

Total
80

70

60

50

40
Total
30

20

10

0
Agree Disagree Neutral Strongly Agree Strongly
Disagree

INTERPRETATION

The above table shows that 49.33% of the respondents says that they are satisfied with the
assistance provided by online food ordering application from the time of ordering till it is
delivered to them, 18% of them disagrees the statement, 14.67% of them have neutral opinion on
it, 12% of them strongly agrees it and 6% of the strongly disagrees the statement.

48
TABLE 3.22

Acceptance of return and issues in refund in case of discrepancy

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
AGREE 80 53.33%
DISAGREE 21 14%
NEUTRAL 21 14%
STRONGLY AGREE 16 10.67%
STRONGLY DISAGREE 12 8%
TOTAL 150 100%

Total
90
80
70
60
50
40 Total
30
20
10
0
Agree Disagree Neutral Strongly agree Strongly
disagree

INTERPRETATION

The above table shows that 53.33% of the respondents says that they prefer to order food online
only if it accepts the return and issues the refunds in case of any discrepancy found in the food
that is ordered by them, 14% of them disagrees the statement and neutral opinion on it, 10.67%
of them strongly agrees it and 8% of them strongly disagrees the statement.

49
TABLE 3.23

Will they suggest the food delivery apps to friends and family?

CRITERIA NUMBER OF PERCENTAGE

RESPONDENTS
MAYBE 26 17.33%
NO 40 26.67%
YES 84 56%
TOTAL 150 100%

Total
90
80
70
60
50
40 Total

30
20
10
0
Maybe No Yes

INTERPRETATION

The above table shows that 17.33% of the respondents says that they will sometimes suggest the
food delivery apps to their friends and family, 26.67% says that they will not suggest it and 56%
of them will suggest it.

50
H0: There is no significant difference between factors influencing selection of online food
delivery application between different Occupations
H1: There is significant difference between factors influencing selection of online food
delivery application between different Occupations

Descriptive
influencing them in selecting food online
N Mean Std. Std. 95% Confidence Minimum Maximum
Deviation Error Interval for Mean
Lower Upper
Bound Bound
EMPLOYED 52 2.35 1.064 .148 2.05 2.64 1 4
ENTREPRENRUR 20 4.00 .000 .000 4.00 4.00 4 4
STUDENT 78 4.91 .288 .033 4.85 4.98 4 5
Total 150 3.90 1.345 .110 3.68 4.12 1 5

ANOVA
influencing them in selecting food online
Sum of df Mean Square F Sig.
Squares
Between Groups 205.359 2 102.679 235.323 .003
Within Groups 64.141 147 .436
Total 269.500 149

Interpretation: From the ANOVA table Shows that the P value 0.03which is less than 0.05 so,
the null hypothesis is rejected .Therefore it can be concluded that there is a significant difference
between factors influencing selection of online food delivery application between different
Occupations.

51
H0: There is no association between Age group and preference of food delivery app
H1: There is association between Age group and preference of food delivery app

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Age Category *
Preference of more than
one food ordering 150 100.0% 0 0.0% 150 100.0%
application in mobile
phone

Age Category * Preference of more than one food ordering application in mobile phone
Crosstabulation
Count
Preference of more than one food ordering application in mobile Total
phone
1 2 3 4 5
18-24 63 4 0 0 0 67
Age 25-40 0 24 22 0 0 46
Category 41-56 0 0 16 6 0 22
above 56 0 0 0 3 12 15
Total 63 28 38 9 12 150

52
 Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 304.144a 12 .002
Likelihood Ratio 284.128 12 .000
Linear-by-Linear
133.547 1 .000
Association
N of Valid Cases 150

INTERPRETATION:
Chi-square tests for the association between Age group and preference of food delivery app the P
value exhibited in the table is .002 which is less than 0.05 so, the null hypothesis is rejected.
Therefore it can be concluded that there is association between Age group and preference of food
delivery app.

53
H0: There is no association between Gender and Mode of payment
H1: There is association between Gender and Mode of payment

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Gender * Mode of
150 100.0% 0 0.0% 150 100.0%
payment

Gender * Mode of payment Crosstabulation

Count
Mode of payment Total
CASH ON NET UPI
DELIVERY BANKING
Male 69 0 0 69
Gender
Female 16 27 38 81
Total 85 27 38 150

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 97.712a 2 .005
Likelihood Ratio 124.762 2 .000
Linear-by-Linear
82.911 1 .000
Association
N of Valid Cases 150

54
INTERPRETATION :
Chi-square tests for the association between Gender and Mode of payment the P value exhibited
in the table is 0.005 which is less than 0.05 so, the null hypothesis is rejected .Therefore it can be
concluded that there is association between Gender and Mode of payment.

55
4.0 FINDINGS AND SUGGESTIONS
4.1 FINDINGS
• 44.67% respondents belongs to 18 to 24 age category, 30.67% belongs to 25-40 age
group, 14.67% belongs to 41 to 56 age group and 10% of the respondents are above 56
age category.
• 34.67% of the respondents are employed, 14% are entrepreneur and 34.67% belongs to
student category.
• 46% is female respondents and 54% is male respondents.
• 60% of the respondents likes to order food online often, 24% are very often, 15.33%
rarely likes to order the food in online.
• 0.67% of the respondents prefer to order food in online from Dominos, 44 % prefer
Swiggy, 16.67% prefer Uber eats and 38.67% of the respondents prefer to order from
Zomato.
• 42% of the respondents agrees that they have more than one online food ordering app
available in their mobile, 18.67% disagree the statement, 25.33% have neutral opinion on
it, 6% strongly agrees it and 8% of the respondents strongly disagree that they don’t have
more than one online food ordering app in their mobile.
• 11.33% of the respondents says that change of preference is the factor which influence
them the most in selecting an online food delivery app , 4% of them says about cost
effectiveness, 15.33% says about easy and flexible payment gateway, 22% says about
ever increasing restaurant option and 47% of them says that faster delivery is the factor
which influence them the most in selecting an online food delivering apps.
• 44.67% of the respondents agrees that food available on food apps is as per their taste
and preference , 22.67% disagrees the statement , 17.33% of them have neutral opinion
on it , 6.67% of them strongly agrees to it and 8.67% of the respondents strongly
disagrees to the statement.
• 30% of the respondents rated the overall satisfaction in all the food apps available is high,
9.33% rated it as low and 60.67% respondents rated it as medium satisfaction level.
• 36.67% of the respondents agrees that they will order food in online food ordering
applications only after doing the comparative analysis in different applications , 27.33%

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 of the respondents disagrees the statement , 24% of the respondents have neutral opinion
to it, 5.33% strongly agrees to it and 6.67% of them strongly disagrees the statement.
• 37.33% of the respondents says that the major challenge faced by them from online food
delivery applications is delay in delivery, 20% of them says about food quality, 5.33% of
them says about order tracking and 6.67% of the respondents says that price us the major
challenge for them.
• 16% of the respondents says that they sometimes face issues while ordering in online
food delivery applications, 24% of them don’t have any issues on that and 60% of them
faces the issue.
• 56.67% of the respondents prefer the cash on delivery as their mode of payment, 18% of
them choose net banking and 25.33% prefer UPI payment option.
• 42.67% of the respondents agrees that they their food might not get delivered to them
well within time, or might not get delivered to them at all , 19.33% of them disagrees the
statement , 20% of them have neutral opinion towards it , 10% of them strongly agrees it
and 8% of them strongly disagrees the statement
• 46.67% of the respondents agrees that they don’t feel any taste difference while ordering
in food online, 11.33% of the respondents disagrees the statement, 18.67% of them have
neutral opinion towards to it, 14% of them strongly agrees the statement and 9.33% of the
respondents strongly disagrees the statement.
• 41.33% of the respondents agrees that they are more comfortable and they can party
according to their choice, so the prefer to order online, 20% of them disagrees the
statement, 16% of them have neutral opinion to it, 12.67% of them have strongly agrees
to it and 10% of them strongly disagrees to it.
• 48.67% of the respondents agrees that they like order online because it has their favorite
foods at on junction, 13.33% of them disagrees the statement, 18% of them have neutral
opinion to it, 10.67% strongly agrees it and 9.33% strongly disagrees the statement.
• 39.33% of the respondents says that they like to order online because they can compare
the price of their favorite dishes from various restaurants by just one click, 26% of the
disagrees it, 13.33% of them have neutral opinion on it, 12% of them strongly agrees to it
and 9.33% of the respondents strongly disagrees the statement.

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• 37.33% of the respondents says that they to order from online because it gives them
greater discount, 27.33% of them disagrees the statement, 12.67% of them have neutral
opinion on it, 12.67% strongly agrees the statement, 10% of them strongly disagrees the
statement.
• 44.67% of the respondents states that they like to order online because it gives them
attractive combination at fair price, 26% of them disagrees the statement, 11.33% of them
have neutral opinion on it, 10.67% strongly agrees the statement and 7.33% of the
respondents strongly disagrees the statement.
• 49.33% of the respondents says that they are satisfied with the assistance provided by
online food ordering application from the time of ordering till it is delivered to them, 18%
of them disagrees the statement, 14.67% of them have neutral opinion on it, 12% of them
strongly agrees it and 6% of the strongly disagrees the statement.
• 53.33% of the respondents says that they prefer to order food online only if it accepts the
return and issues the refunds in case of any discrepancy found in the food that is ordered
by them, 14% of them disagrees the statement and neutral opinion on it, 10.67% of them
strongly agrees it and 8% of them strongly disagrees the statement.
• 17.33% of the respondents says that they will sometimes suggest the food delivery apps
to their friends and family, 26.67% says that they will not suggest it and 56% of them
will suggest it.
• ANOVA test result Shows that the P value 0.03which is less than 0.05 so, the null
hypothesis is rejected .Therefore it can be concluded that there is a significant difference
between factors influencing selection of online food delivery application between
different Occupations.
• Chi-square tests for the association between Age group and preference of food delivery
app the P value exhibited in the table is .002 which is less than 0.05 so, the null
hypothesis is rejected. Therefore it can be concluded that there is association between
Age group and preference of food delivery app.
• Chi-square tests for the association between Gender and Mode of payment the P value
exhibited in the table is 0.005 which is less than 0.05 so, the null hypothesis is rejected
.Therefore it can be concluded that there is association between Gender and Mode of
payment.

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4.2 SUGGESTIONS
As professionals lack time to cook and since they have to get back on their busy lives, electronic
food ordering should be made convenient for them using various gadgets.
Operators should increase online ordering through simple addition of new distribution channels
to attract the customers.
As most of the customers use telephone,Web and mobile phones to order food online,
Companies should encourage them by responding effectively to telephone calls that provide
human interaction.
Customers face a lot of challenges as the site is slow. Thus the companies must know some
techniques to place the order quickly and effectively.
Restaurants should focus on giving their customers the best quality and various options on
choosing the variety of food stuff.
More and more customers should be encouraged to order food online as now a-days it becomes
difficult for an individual to go and place orders directly to the restaurants and also some
customers are uncomfortable with the recent upcoming technology.

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4.3 CONCLUSIONS
The customer’s perception on Online Food Delivery companies 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. This study highlights the fact that
youngsters are mostly poised to use Online Food Ordering Services and also this study reveals
that the price of the product, discounts and special Offers have the most influencing factor on
Online Food Ordering .The second most influencing factor is the convenience, followed by On-
time Delivery. The study highlights that the Respondents often prefer to order on weekly basis
and the type of meals which were mainly preferred to order was for their lunch and dinner
requirements. The study also revealed that a major proportion of Respondents uses both Uber
Zomato and Swiggy to order their food online. With the fast-moving technology-proven lifestyle
adopted and adapted by people today, this Online Food Ordering and delivering industry is
predicted to have rapid growth in the years to come. Hence if the Online Food
Ordering companies make their services technologically upgraded and tailor-made to the needs
and preferences of the customers, then they would be assured of having satisfied a major part of
the total target customers.

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5.1 BIBLIOGRAPHY

• Sheryl E. Kimes Ph.D. (2011), “Customer Perception of Electronic Food Ordering,”

Cornell Hospitality Report, 11(10), pp.6-15.
• http://www.amity.edu/gwalior/ajm/paper_5.pdf (Varsha Chavan, Priya Jadhav,
Implementing
• Customizable Online Food Ordering System Using Web Based Application,2015)
http://www.wisegeek.com/what-is-food-ordering.htm.
• http://www.wikihow.com/Order-Food-Online-With-Snapfiger.
• http://www.fastcasual.com/article/207437/Report-Majority-of-consumers-now-use-
mobile-food-orderingtsools.
• http://www.fastcasual.com/research/272/online-ordering?nav=top.

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ANNEXURE

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