Online Food Delivery Services

IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE UnitCode:HOTL6005 UnitName:AppliedHotelResearch AssignmentNo.:1 AssignmentTitle:Proposal 1 1IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE TableofContentsPageNo.: 1.Introduction2 2.ResearchOverview3 3.ProblemStatement.4 4.ResearchAim.4 5.ResearchQuestions....5 6.AnnotatedBibliography.....5 7.ProposedResearchMethod....9 8.References......10 2 2IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE 1.Introduction: Theresearchwillbebasedononlinefooddeliveryservices.Itwillalsofocusonthe impactonexperienceofcustomersduetotheonlinefooddeliveryservices.Onlinefooddelivery aretheserviceswhichallowsthecustomerstoordertheirfoodonlinefromtheirpreferredoutlet throughthehelpofInternet.Theintroductionofonlinefooddeliverysystemisasuitable additionwhichnotonlyreducedlongquesoutsidetherestaurantbuthasalsodecreasedthe waitingtimefororderedfoodthroughonline.Justlikeeveryotherindustry,onlinefooddelivery industryalsohastomaintainsatisfactionofcustomerswhichisveryimportantinorderto contributetotheindustrysproductivecapacity(Vakulenkoetal.2019).Inotherwords,if consumerscontributeeffort,timeorothercapitalstotheserviceproductionprocess,thenthey shouldbemeasuredasthepartoftheindustry.Thisresearchwillhelptheoverallonlinefood deliveryservicesindustrytoknowabouttheircustomersexperiencesontheservicesthey providesothattheycanmeetthecustomersexpectationsinthefutureforoverallgrowthand sustainability. 3 3IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE 2.OverviewoftheIndustry: Theonlinefooddeliveryindustryhasevolvedintherecentera.Thefoodordering marketplaceplatformwasconsideredasastateofartintheyear2000butnowadaysthissegment hasexpandedwodifferentdemographicsacrosstheworld(Correaetal.2019).Withtheinterest ofmoremillennialstowardstheonlinefooddelivery,thebusinessisgrowingrapidlyinasteady pace.Theonlinefooddeliverymarketispredictedtogrowfrom$107billionintheyear2019to $111billionintheyear2020withagrowthrateof3.6%.Theslowgrowthintheyear2020is mainlyduetotheeconomicslowdownacrosstheworldowingtotheCOVID-19pandemicas wellasthemeasurestocontainit.Thereareseveralorganizationsworkingundertheonlinefood industryacrosstheworldandgivingtoughcompetitiontotheircompetitors(HwangandSeo 2016).SomeoftheexamplesoftheseorganizationareUberEats,Menulog,Deliveroo,Happy Cowandmanymorehaveexpandedtheirbusinessofonlinefooddeliveryallacrosstheworld andhasgainedagoodreputation. 4 4IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE 3.ProblemStatement: Customerserviceisveryimportantforanorganizationwhichcanimpactthegrowthof businessaswellastheironlinepresenceallacrosstheworld(Tech,2020).Thereareseveral organizationsthathavebeenconsideredinthelistoflowgrowthduetothebadcustomerservice. Itisimportantforonlinefooddeliveryservicestotreattheirconsumersastheirfamilysinceif theorganizationwilllistentothemthenthecustomerswillprovidewithmorereferences(See- Kwongetal.2017).Heremorereferencesmean,theywillsuggesttheirfriendsandfamilytouse theapplicationforonlinefooddelivery(Bilgihan,KandampullyandZhang2016). Understandingtheimportanceofcustomerservicewilladdmorevaluetothebusinessoperations oftheoverallindustry.Thewayoftreatingconsumersisthemainsignthatwilltelltheindustry howtheyshouldlookatthings(Pigattoetal.2017).Therefore,thisreportwillfocusonthe pointsofhowtheoverallonlinefooddeliveryindustrywillincreasetheircustomersexperience andreachouttotheirexpectationstomaintaincustomerloyaltyaswellasacompetitive advantageinthefuture. 4.Aimoftheresearch: Theaimofthepaperistoassessandanalyzetheimpactoncustomerexperiencedueto deliveryserviceinonlinefoodservices. Thispaperwillberelyingonsecondarysourcesofdatawhichwillbecollectedfrom onlinelibraries,crediblejournalsandarticlesandproperreferenceswillbegiventoindicatethe evidenceofthissourcefromwherethedatahasbeencollected. 5 5IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE 5.Researchquestions: Howeffectivethefooddeliveryservicescanimpacttheiroverallorganizational performanceandcustomerexperience? HoweffectivefooddeliveryservicesofUbercanimpacttheiroverallorganizational performance? Whatisthecharacteristicofcustomerselectingonlinefooddeliveryservices? Whoisthemaintargetcustomeroftheonlinefooddeliveryservices? 6.Annotatedbibliography: Suhartanto,D.,HelmiAli,M.,Tan,K.H.,Sjahroeddin,F.andKusdibyo,L.,2019.Loyalty towardonlinefooddeliveryservice:theroleofe-servicequalityandfoodquality.Journal offoodservicebusinessresearch,22(1),pp.81-97. Thispaperwilldiscussabouttheevaluateofdirectimpactofe-servicesandfoodquality ontheconsumerloyaltytotheonlinefooddeliveryservice.Itwillalsostatetheindirecteffect throughtheinterventionofsatisfactionamongcustomersandapparentvalue.Withaprogressin informationtechnologythathasfacilitatedthee-commerceactivitieshavechangedthe behaviourofbothorganizationaswellasthecustomers.Theobtainabilityofe-commerce platformsforshoppinghasenabledtheconsumerstoshopinaconvenientmannerbycomparing thepricesandproductseffectivelyaswellasarrangingtheimmediatedeliveryofproducts. Similarly,fortherestaurantstheavailabilityoftechnologyhasenabledthecustomerstoorder foodthroughinternetwiththehelpofonlinefooddeliveryservices.Theonlinefooddelivery 6 6IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE industryisasaturatedmarketthatadvancesaccuracy,upsurgesproductivityandimproves customerrelationshipbyextendingthemarketoftheorganization.Amongalltheonline shopping,therecentdevelopmentsshowthatfoodhasbecomethemostfavoredshoppingforthe customerswhichisgrowingatarapidpaceby12%peryear.Thisdevelopmentisanopportunity thatwillchallengetherestaurantsandcreateanaggressivecompetition.Insuchachallenging situation,itisveryimportantfortheorganizationstohaveloyalcustomerswhoareauthoritative forthem.Thesignificanceofcustomerloyaltyaswellastheirfactorsarediscussedinthe literatureelaborately.Amongalltheloyaltydrivers,literatureinclinestoagreethattheservices orproducts,perceivedvalueandsatisfactionamongcustomersarethecomponentofloyalty.The studiesinthecontextofrestauranthavestatedthatexperienceofcustomersismainlyaffectedby theonlinedeliveryqualityandfoodquality.Inachallengingandcompetitivebusiness environment,havingsatisfactionofcustomersisenoughtoensurethesurvivalforbusinessandit helpstoincreasethesuccessofthebusiness. Yeo,V.C.S.,Goh,S.K.andRezaei,S.,2017.Consumerexperiences,attitudeandbehavioral intentiontowardonlinefooddelivery(OFD)services.JournalofRetailingandConsumer Services,35,pp.150-162. Thispaperwillexaminetheattitudeofconsumertowardsonlineservicesorretailing. Thee-commercehasexceededtheirtraditionaldefinition.Thecustomersarehavinga preferenceforthee-commerceplatformsasameansforshoppingsincetheyareabletoshopat acomfortfromanyplaceandatanytime.TheimmensedevelopmentofInternethasprejudiced onlineretailingaswellase-commercegrowth.Thedevelopementofonlineretailingreferstoa virtuallyboundlesschoiceofgoodsandserviceswhichwillbenefitthecustomerfromproduct customization,realtimeinteractivecommunicationaswellasfastdelivery.Thisindustryisa 7 7IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE saturatedmarketasretailershavestartedtoprovideadditionalservicesthroughinternetinorder toremainmodest.However,therehavebeenpreviousresearchwhichhasmostlyinspectedthe attitudeofcustomertowardstheonlineretailingingeneralandtherehavebeenfewresearchers whohavealsolecturedtheexperiencesofcustomerswiththeinlinefooddeliveryservices.The internetpenetrationrateofMalaysiais67%.Thenumberofusersiscomparativelylowerthan thatofChina,butthefractionishigherwhichshowsthatthepeopleofMalaysiaaremoreself- confidentine-commerce.Thereareapproximately420millioninternetusersinChina,among whichapproximately87.77millionuserspreferonlineshopping.Alongwiththebigcompanies, thesmallretailersarealsopersuasivetoprovidetheonlinefooddeliveryservicetoremain competitiveinthemarketandreachtotheircustomers.Itisimportantfortheonlinefood retailerstomotivatetheircustomerstobuyfromanonlinemediumandtheyaretakingnecessary stepstodoso.Inthetermsoftechnologyacceptance,therehasbeenseveralstudiesthathave foundapositiverelationshipbetweenbehavioralintentionandattitudeofcustomers.The customersprefertheonlineservicesduetousage,convenience,usefulnessandseveralother motivates. Ray,A.,Dhir,A.,Bala,P.K.andKaur,P.,2019.Whydopeopleusefooddeliveryapps (FDA)?Ausesandgratificationtheoryperspective.JournalofRetailingandConsumer Services,51,pp.221-230. Theenormousdevelopmentinthefieldofonlineserviceshascarriedchangestothe societyaswellaslifestyleingeneral.Theonlinefooddeliveryservicesaresheeringnowadaysin thee-commerceplatform.Onlinefooddeliveryisorderinganddeliveryoffoodfromdifferent restaurantsthroughawebsiteorapplication.Theconsumersmainlyprefertheirfavourite restaurantwheretheycanselectfromvariousobjectsandgivetheirdeliveryaddress.The 8 8IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE increasingpenetrationofsmartphonesandgrowthofinternetprovidershaspoweredthegrowth ofseveralonlinefooddeliveryapplicationssuchasSwiggy,Foodpanda,UberEatsandZomato. ThemaindifferencebetweenOFDandFDAisthatinOFDorderscanbemadefromthe internet-basedwebsites,butinthecaseofFDA,theorderscanbemadeonlywiththehelpof mobileapplication.TheservicesthatareprovidedbytheseveralFDAscanbecharacterizedas givingorders,observing,paymentsandtrackingservicesbuttheseapplicationsarenot responsiblefortheactualfoodpreparation.Thereareseveralrestaurantswhoprovidetheirown FDAsuchasKFC,PizzaHut,Dominos,andmanyothersinseveralpartsofthecountry.Onthe otherhand,thereareseveralothermulti-restaurantmobileapplicationslikeZomato,UberEats andFoodpandawhoworkasanintermediaryfortherestaurants.Thecustomersexpectseveral indicatorsofqualityfromtheworkersofFDAsuchasprovidingthephotos,ratings,andreviews ofthefoodaswellastherestaurant.Ithelpsthecustomerstoshortlisttherestaurants,selecttheir preferredfooditemsandconfirmtheorder. 7.Researchmethod: Researchisoneofthecrucialpartsofeveryresearchandmixedresearchmethodwillbeusedto conductthisresearchsincedatafromvarioussourcessuchasjournals,books,onlinesourcesand magazineswillbeusedtofulfillthenecessityofthisresearch.Secondarysourceofdatawhich arealreadycollectedbyvariousresearchersbyconductingsameresearchtopicwillbebeneficial asitiseasilyaccessibleandaccurateinvariouswebsitesandjournals(Brannen,2017). 9 9IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE 8.References: Bilgihan,A.,Kandampully,J.andZhang,T.C.,2016.Towardsaunifiedcustomerexperiencein onlineshoppingenvironments.InternationalJournalofQualityandServiceSciences. Correa,J.C.,Garzn,W.,Brooker,P.,Sakarkar,G.,Carranza,S.A.,Yunado,L.andRincn,A., 2019.Evaluationofcollaborativeconsumptionoffooddeliveryservicesthroughwebmining techniques.JournalofRetailingandConsumerServices,46,pp.45-50. Hwang,J.andSeo,S.,2016.Acriticalreviewofresearchoncustomerexperience management.InternationalJournalofContemporaryHospitalityManagement. Pigatto,G.,Machado,J.G.D.C.F.,dosSantosNegreti,A.andMachado,L.M.,2017.Haveyou chosenyourrequest?AnalysisofonlinefooddeliverycompaniesinBrazil.BritishFoodJournal. Ray,A.,Dhir,A.,Bala,P.K.andKaur,P.,2019.Whydopeopleusefooddeliveryapps(FDA)? Ausesandgratificationtheoryperspective.JournalofRetailingandConsumerServices,51, pp.221-230. See-Kwong,G.,Soo-Ryue,N.G.,Shiun-Yi,W.andLily,C.H.O.N.G.,2017.Outsourcingto onlinefooddeliveryservices:PerspectiveofF&Bbusinessowners.TheJournalofInternet BankingandCommerce,22(2),pp.1-18. Suhartanto,D.,HelmiAli,M.,Tan,K.H.,Sjahroeddin,F.andKusdibyo,L.,2019.Loyalty towardonlinefooddeliveryservice:theroleofe-servicequalityandfoodquality.Journalof foodservicebusinessresearch,22(1),pp.81-97. 10 10IMPACTONCUSTOMEREXPERIENCEDUETODELIVERYSERVICE Tech,J.E.T.,2020.Theinfluenceofonlinefooddeliveryservicequalityoncustomersatisfaction andcustomerloyalty:theroleofpersonalinnovativeness.JournalofEnvironmentalTreatment Techniques,8(1),pp.6-12. Vakulenko,Y.,Shams,P.,Hellstrm,D.andHjort,K.,2019.Onlineretailexperienceand customersatisfaction:themediatingroleoflastmiledelivery.TheInternationalReviewofRetail, DistributionandConsumerResearch,29(3),pp.306-320. Yeo,V.C.S.,Goh,S.K.andRezaei,S.,2017.Consumerexperiences,attitudeandbehavioral intentiontowardonlinefooddelivery(OFD)services.JournalofRetailingandConsumer Services,35,pp.150-162.