Rinku Didi
Rinku Didi
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Laxman Pokhrel1
Rinku Shah2
SAIM College, Pokhara University, Nepal
1
An MPhil in Management, Mr. Pokharel is Programme Director at SAIM College. His email is:
laxmanpokhrel98@gmail.com
2
Ms Shah is an MBA Graduate of SAIM College, Pokhara University
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Factors Affecting Behavioural Intention of Online Food Delivery Services... : Pokhrel and Shah
about 70% of the variation in people's Since online food service is dramatically
behaviours related to technology use increasing in Nepal especially in major
(Venkatesh et al., 2003; Venkatesh et cities like Kathmandu, it is imperative
al., 2012). This could be a parsimonious to investigate the phenomena in a
model of a person's behaviour regarding Nepali context. Therefore, this paper
online food delivery services. Venkatesh investigated the factors affecting online
et al. (2003) reported that behavioural food delivery intention among consumers
intention is influenced by performance in Kathmandu valley.
expectancy, effort expectancy, and social
influence, whereas the last construct,
Literature Review
facilitating conditions, directly influences
actual usage behaviour. This section presents review of literature.
Some more details should be added
Online Food Delivery in Nepal: here.
Kathmandu Valley has a huge food delivery
market. Some of Nepal's leading online Performance Expectancy (PE)
food delivery services are Foodmandu, It refers to the extent to which
Bhojdeals, Foodmario, and BhokLagyo M-commerce will assist consumers in
are located in Kathmandu valley. The accomplishing their goals (Venkatesh et
first company to distribute meals from al., 2012). It is the utilitarian component
hundreds of well-known eateries in Nepal that is related to the perceived utility of
is Foodmandu (Rajbhandari, 2022). It has the TAM model (Venkatesh et al., 2003).
been in operation since November 2010. In this paper, performance expectancy
It is common for online meal delivery refers to the extent to which online food
services to accept orders through their delivery service assist consumers in
websites or other digital media channels. accomplishing their goals.
The most critical targeted audience for
most foodservice players is millennials Effort Expectancy (EE)
(people under 30), so online ordering It refers to the degree of ease with
systems are the easiest way to reach them. which a consumer can use technology
The number of millennials who use their (Venkatesh et al., 2012). UTAUT defines
phones for online ordering exceeds 97%, effort expectancy (EE) as the ease with
making them one of the most lucrative which users use a particular technology
and sales-producing target audiences. (Venkatesh et al., 2003). A measure of
Therefore, restaurants and the food the ease of using food delivery apps or
industry can easily reach out to younger online food delivery services is called
demographics and target markets by effort expectancy in this paper.
providing online delivery services. Despite
a few studies on online shopping (Vaidya Social Influences (SI)
& Yogi, 2021); mobile banking (Pokhrel, It refers to the amount to which an
2022), there are only very few studies on individual perceives confirmation of
online food delivery intention in Nepal. specific behaviours from his or her peers
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Factors Affecting Behavioural Intention of Online Food Delivery Services... : Pokhrel and Shah
Performance Expectancy
Effort Expectancy
Behavioural Intention
Social Influences
Facilitating Conditions
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Factors Affecting Behavioural Intention of Online Food Delivery Services... : Pokhrel and Shah
Table 1
Descriptive Statistics and Inter-Items Correlation
Constructs Mean Std. Deviation 1 2 3 4 5
1. Behaviour Intention 3.930 1.109 1
2.Performance Expectancy 4.109 0.883 0.763** 1
3. Effort Expectancy 4.162 0.880 0.733** 0.838** 1
4. Social Influence 4.051 0.949 0.751** 0.756** 0.792** 1
5. Facilitating Condition 4.163 0.944 0.728** 0.668** 0.759** 0.763** 1
Note. Calculations based on the Survey, 2022
at least once a week (n=104, 37.5%). (SI), and facilitating conditions (FC) are
This shows the respondents can capture significantly associated with behavioural
the variable of the interest. A majority intention. However, correlation analyses
of the respondents have a bachelor’s are not robust enough to test the pro-
degree (n=123, 44.6%). Likewise, posed hypotheses. This study applied
most of the respondents are Employed structural model to estimate the relation-
but not self-employed and come from ships among variables.
Kathmandu valley. Furthermore, most of
the respondents were between 21 and Structural Equation Model (SEM)
30 years old (n=220, 79.4%). The SEM, a statistical technique for
analysing and estimating relationships
Descriptive Statistics and Inter-Item between variables, is primarily used to
Correlation test and estimate multivariate causal
It is a valuable technique for describing linkages (Hair et al., 2016). Gefen et
data by arranging and summarizing data al. (2000) define SEM as a second-
in a simple and clear manner (Cooper & generation multivariate analysis
Schindler, 2014). In the present study, for theory testing and extension,
the descriptive statistics describe the the technique assists in testing or
state of online food delivery. Likewise, validating a theoretical model. Since
inter-item correlation shows relationship this paper intended to investigate
among variables. online food delivery intention applying
UTAUT model, the Covariance Based
It is shown in table 1 that BI (Behaviour SEM was applied with IBM AMOS 23
Intention) is positively related to perfor- version. The SEM model is estimated
mance expectancy, effort expectancy, with measurement model and structural
social influence, and facilitating condi- model.
tions (γ = 0.763, p < 0.01; γ = 0.733, p
< 0.01; γ = 0.751, p < 0.01, γ = 0.728, Measurement Model
p < 0.01 respectively). According to the According to Ringle et al. (2015),
results, performance expectancy (PE), reliability analysis, convergent validity,
effort expectancy (EE), social influence and discriminant validity are three
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Factors Affecting Behavioural Intention of Online Food Delivery Services... : Pokhrel and Shah
Table 2
Model Fitness Indicators
Fit Indicators Authors Threshold values Observation values
CMIN/df Hair et al. (2009) <3 2.960
RMSEA Meyers et al. (2005) < 0.5 0.084
GFI Segars and Grover (1993) > 0.90 0.868
AGFI Hair et al. (2016) > 0.80 0.820
PCFI Meyers et al. (2005) > 0.50 0.762
PNFI Meyers et al. (2005) > 0.50 0.738
Note. Calculations based on the Survey, 2022
Table 3
Reliability and Validity of Measurement Model
Measurements and Items Factor Loadings Average Composite Cronbach's
Variance Explained Reliability Alpha
Facilitating Conditioning
FC1 0.852
FC2 0.706 0.630 0.839 0.839
FC3 0.826
Behaviour Intention
BI1 0.818
BI2 0.889 0.712 0.881 0.877
BI3 0.823
Social Factors
SF1 0.792
SF2 0.805 0.533
SF3 0.799 0.873 0.872
SF4 0.782
Effort Expectancy
EE1 0.778
EE2 0.781 0.623 0.868 0.867
EE3 0.811
EE4 0.786
Performance Expectancy
PE1 0.710
PE2 0.760 0.533 0.82 0.816
PE3 0.731
PE4 0.717
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Factors Affecting Behavioural Intention of Online Food Delivery Services... : Pokhrel and Shah
Table 4
Discriminant Validity (Fornell’s and Larker Criteria)
Constructs 1 2 3 4 5
1. Behaviour Intention 0.794
2. Performance Expectancy 0.763 0.844
3. Effort Expectancy 0.733 0.838 0.794
4. Social Influence 0.751 0.756 0.792 0.789
5. Facilitating Condition 0.728 0.668 0.759 0.763 0.730
Note. Calculations based on the Survey, 2022
Table 5
Hypotheses Testing
Hypotheses Estimate S.E. C.R. P Label
1. BI <---PEU 0.555 0.07 7.84 *** Significant
2. BI<---EE 0.005 0.04 0.10 0.916 Not significant
3. BI<---SI 0.324 0.05 5.80 *** Significant
4. BI<---FC 0.371 0.04 7.98 *** Significant
Note. Calculations based on the Survey, 2022;
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Journal of Business and Social Sciences Research: Vol. VII, No. 2 : Dec 2022
order it again. The findings of this study of online food delivery services in
are consistent with the UTAUT theoretical Kathmandu Valley. This study found that
framework (e.g., Venkatesh et al., 2003; facilitating conditions have no significant
Venkatesh et al., 2016; Williams et al., influence on behaviour intention. This
2015). implies that facilitating conditions are not
required to help customers because the
Second, the intent of the study was market for online food delivery services
to investigate the influence of effort in Nepal is new. In addition, consumers
expectancy on behaviour intention are also unfamiliar with the standard of
of online food delivery services in services provided to them online.
Kathmandu valley. This study found
that effort expectancy has a significant
Conclusion and
influence on behaviour intention. It is
Implications
consistent with the findings of previous
studies (e.g., Venkatesh et al., 2003; In Nepal, online food ordering is a
Venkatesh et al., 2011; Yuan et al., relatively recent phenomenon, and it has
2016). Consumers' ease with online been growing worldwide. As the internet
food delivery services might lead to their has developed and become more
behavioural intention to order food online. accessible, businesses have been forced
This finding is aligned with the theoretical to address another consumer need,
framework of UTAT (Venkatesh et al., delivering food to consumers' doorsteps.
2003; Venkatesh et al., 2012). The consumer landscape must be better
understood since e-commerce can affect
Third, the study examined the influence the economy, businesses, and quality
of social influences on the behaviour of life. The purpose of this study is to
intention of online food delivery services examine factors influencing behaviour
in the Kathmandu valley. A significant intentions toward online food delivery
influence of social influence on behaviour services in the Kathmandu valley.
intention was found in this study. It is Online food delivery services influence
consistent with the findings of previous behavioural intentions in several ways
studies (e.g., Venkatesh et al., 2003; such as performance expectancy, social
Venkatesh et al., 2012). The results influences, and facilitating conditions. The
suggest that people make behavioural growing use of online food in Kathmandu
choices regarding online foo d delivery in valley among graduate students is a sign
response to peers' confirmation of those of the promising field of online shopping
services. It aligns with the assumptions in Nepal. Paying attention to behaviour
of UTAT theory (Venkatesh et al., 2003; intention is essential for both retailers
Williams et al., 2015). and customers in this scenario.
Finally, the objective of the research was Theoretical implication: This study
to examine the influence of facilitating applied UTAT as a theoretical framework
conditions on the behaviour intention for the study of intention of online food
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Factors Affecting Behavioural Intention of Online Food Delivery Services... : Pokhrel and Shah
delivery services. It shows that PE, SI by ensuring that products are delivered
and FC have a significant influence on effectively, quickly, and on time. In
BI. The UTAT theory has been tested addition, this research may be expected
in different context and reconfirmed its to have implications for providing food
external validity. This study could provide delivery training to the team. It is also
critical juncture for researcher because possible to improve delivery channels,
EE has no significant influence on BI in vehicles, and address notation in
food delivery services in Nepali context. order to improve the delivery of goods.
Furthermore, online retailers and
Managerial implication: The study vendors can enhance delivery services
aimed at identifying factors critical to by training delivery staff, expanding
the intention of online food delivery delivery networks, improving the online
services. E-commerce platforms can order-taking procedure with correct
be fully realized if we understand the addressing notation technology,
consumer landscape better. Our study properly packaging food or products
provides some useful implications for based on their nature.
these platform managers. Performance
expectancy, social influence, and Direction for the Further Research.
facilitating conditions determine Our study examined online food
behaviour intention. As a result, managers delivery service behaviour intentions in
should devise policies allowing users to Kathmandu valley. There is a possibility
order and receive all their food together, that the findings may not apply to the
even if they buy it from multiple vendors. entire population. It was not possible to
Managers should find creative ways to include all factors affecting the intention
reduce negative perceptions. By creating to use OFD services in the study.
an easy rating system to monitor riders' Moreover, it lacks diversity in terms of
correct use of PPE, these perceived risks sample size. The Kathmandu valley is
may become less relevant. the only part of Nepal surveyed, so it
does not represent the entire country.
Additionally, these findings may The study could be expanded to
have intriguing implications for include other urban areas where OFD
food businesses (e.g. restaurants) services are available. Furthermore,
and policymakers. It is crucial that structured questionnaires were used to
food venues, especially takeaways, collect data in this study. To elicit richer
make the most of OFDs by creating responses, future researchers could
dedicated channels for customer combine quantitative and qualitative
service to enhance OFD operations. data (personal interview) or use focus
By introducing and implementing groups. Likewise, researchers could
specific regulations, policymakers and examine how consumer behaviour
authorities should maintain a high level differs among individuals. Individuals
of service quality. This method can also behave differently online due to
be used to manage delivery services individual differences. Finally, this
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Journal of Business and Social Sciences Research: Vol. VII, No. 2 : Dec 2022
Funding
The authors declared that they received no funding or financial support from any funding
agencies for the research.
Conflict of interest
The authors declared having no conflict of interest in the research work.
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