padmakar shahare

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ISSN: 0474-9030,Vol-68, Special Issue-9

International Conference On E-Business, E-Management,

E-Education and E-Governance (ICE4-2020)

Organised by

Kamla Nehru Mahavidyalaya, Nagpur

7th & 8th February-2020

P a g e | 147 Copyright ⓒ 2019Authors

“Study on Customer Behavior towards Online Food Ordering with

Reference to Nagpur City (East Region)”

Dr. Padmakar I. Shahare

BE, MMS, PGDIBO, MCom, Ph.D

Assistant Professor: MBA GWCET, Nagpur (INDIA) +91-97659 00862

[email protected]

Dr. Mukul A. Burghate

BE, FIE, MBA, PGDIBO, M.Com, SET (Commerce), Ph.D

Associate Professor: MBA PDIMTR, Nagpur (INDIA) +91-9823141467

[email protected]

Abstract:

The recent improvement of the internet has increased the e-commerce industries

in everywhere in India. Online food ordering is the method of ordering food through the

restaurant's own website or mobile app. E-commerce expansion has made online food

ordering services faultless for people who want to get food delivered at their doorway.

In this study, researcher focus is to evaluate the behavior of customer towards online

food ordering services in Nagpur city specifically east region. To understand about the

factors have played a foremost role to attract customers for online ordering in the rising

city like Nagpur, researcher decided to study on the customers behavior on online food

ordering.

In this research paper, there are two objectives set for further study. Firstly to

identify the factors which influence the customers to order food online and secondly to

recognize the customer‟s preferences on online food ordering services provider in

Nagpur especially east region.

To attain the said objectives survey will be conducted to collect the information,

which helped to understand the behavior and perception of respondents for online food

ordering in Nagpur (East).

Keywords:

Online food ordering, customer perception, E-commerce, online food, Nagpur

Introduction

The recent development of the Internet has boosted the extension of online food

services by enabling people to search, compare prices and conveniently access these

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services. Food Ordering on the internet is different from other sources of ordering food,

as the internet promotes a one to one communication between the seller and the buyer

with the clock customer service. Technology has played very important role in

reforming the food delivery service from phone-based to online ordering to satiate

consumers‟ ever-changing demands, making its way easy. Today, the business of Food

delivery services is one of the highest growing segments of e-commerce industry. The

major difference between traditional and online Food Ordering is the level of interaction

between the consumer and the vendor.

In today‟s scenario service sector contributes 64.80% in GDP. Zomato is one of

the most accepted applications that provide services to the user to discover restaurants.

The rise of digital technology is reshaping the industries. With the improved use of

technology, the numbers of people engaging into the digital sector are speedily

increasing. Even Consumers are accustomed to shopping or even ordering online

through apps or websites, with maximum convenience and transparency, expecting the

same experience that they would get from the outlet itself. To match up with the

consumer‟s expectations apps are providing increased facilities and services to the

customers. This scenario doesn‟t exist only in one country but all across the globe.

Being up to date with the customers‟ expectations helps firm retain customers to a

greater extent.

Online food ordering could be called the answer of the internet to the wish for

delivery food. It is a growing development especially in city areas and on college

campuses that allows people to order from restaurants featuring interactive menus, by

use of their internet connection. In many cases handle complicated web pages can be

used to make orders, though a lot of people rely on a desktop or laptop computer for

this, but these days mobile is user friendly for users.

Ordering form general stores to stock the kitchen, instead of placing one time

orders with a restaurant. There are several methods in which online food ordering from

a restaurant may happen. A restaurant can have its website with simple features for

placing an order for pick or choose and delivery. Some add a third option of being

capable to make reservation. Instead of going to restaurant or for a delivery, people just

access the internet to the restaurant site and make their order.

Advantages for Electronic Ordering

There are advantages for both the customer and for the restaurants who involve

in online transaction. First, a customer can order at will when they have time to. Also,

the customer is able to customize their order the way they like it without errors in

communication between the customer and the person taking the order. In addition to

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customer advantages, the restaurant is able to take more orders with less staff. The

restaurant does not need a waiter or hostess to be on the phone to take the order. The

order can go straight to the kitchen

Indian Food App Scenario

With the entire boom in digital industry across the globe, it‟s had its impact on

the Indian economy too. The online food ordering firms have sprouted up in bulk. The

market size of food in India is expected to reach Rs. 42 lakh crore by 2020, reports

BCG. Presently, the Indian food market is around $350 billion. The space is coming up

with a lot of innovation catering to their customer convenience, satisfaction and

retention. This has also built space for a lot of new players, who are aiming specific

groups of people. Many new players joining the segment with innovative business

models such as delivering food for health conscious people, home cooked meals, etc.

Various apps in the Indian market are:

Food Panda

Zomato

Swiggy

Box8

Fasoos

Fast food delivery apps

Literature Review:

Bhavna Singh (2015) from her research its proved that Foodpanda has been

present in the Indian market since May 2012. Foodpanda first chief move was

acquisition of Tasty Khana, which was launched in the city of Pune in 2007. Together

with Tasty Khana and JUST EAT, it is now present in over 200 cities and partners with

over 12,000 restaurants. She also proved about JUST EAT was launched in Denmark in

2001 and was traded publicly on the London Stock Exchange. Their Indian business

was launched as Hungry Bangalore in 2006. It was renamed in 2011 when JUST EAT

gained a majority share in the business. Today, the company partners with over 2,000

restaurants.

Dr.N.Sumathi, S. Josphin (2017), in their study allow online food ordering

system is one of the largest services for fast food restaurants. This is made possible to

use of easy electronic payments system, and also useful for making easy payments for

credit card consumer. In this study saying about to reduce the long queues of consumer

at the counter ordering for food and also reduce the workload of employees.

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Varsha Chavan, et al, (2015), the use of smart device based interface for

customers to view order and navigate has helped the restaurants in managing orders

from customers immediately. The potential of wireless communication and smart phone

technology in fulfilling and improving business scenario and service industry. Their

analysis states that this system is suitable, effective and easy to use, which is expected

to improve the overall restaurant business in coming times.

Research Methodology

Objectives of the Study:

To understand how online food delivery services are perceived by the

consumers.

To evaluate the various factors that influences the consumers to choose online

food delivery services.

To analyze the relationship between food delivery App and the facilities

provided by them.

Sample size:

The total sample size was 110 respondents, out of which a major portion was people of

the age group 20-30 years.

Sample Area: Nagpur (East region)

Hypothesis of the study H0: There is no App popular for food delivery among samples.

H1: There is a most popular app for food delivery among samples.

Data Collection & Analysis:

Respondents Data Summary:

Sample Size 110

Responses received 106

Male 76

Female 30

Age: Between 10-20 16




Parameters Zomato Uber Eats Swiggy Foodpanda Others

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1. From which Company do People

Prefer to Order Food Online? 44 18 64 12 8

While assessing this question it has been observed that out of 106 respondents, 44%

respondents prefer to order food online. 30% are Zomato, 12% are Uber eats, 8% are

Foodpanda and 5% are others. This shows that most of the people from east Nagpur

prefer to order food online from the company Swiggy and Zomato.

Parameters

Good

packaging

On time

delivery

Best offers

& discount

Easy

to order Convenience

2. Why you chose the above Company Services?

11 21 36 16 22


respondents choose the online delivery company as they offer best offers & discount,

21% are because of convenience, 20% are as on-time delivery system, 15% are as it is

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easy to order and 10% because of good packaging. This shows that there is mixed

reaction from the respondents why they select online food order option.

Parameters Zomato Uber Eats Swiggy Foodpanda Others

3. Which Company Provides the Best

Quality Services? 34 14 46 8 4


respondents agreed that Swiggy provides best quality service, 32% respondents agreed

that Zomato provides best quality services, 13% respondents agreed that UbesrEats

provides best quality services, 8% respondents agreed that Foodpanda provides best

quality services and 4% are others. This shows that in Nagpur East region for online

food ordering, Swiggy provides best quality services.

Hypothesis testing:

From the respondents data it is found that most of the respondents used App of Swiggy

for online food delivering, out of 106 respondents, 34% respondents using Swiggy App,

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23% using Zomato App, 20% respondents using UberEats App, 8% respondents using

FoodPanda App and 16% respondents used Just dial App for online food ordering.

For this hypothesis testing researcher used correlation test using MS-Excel for two

variables i.e. Quality services & most using app and following result obtained.

Quality Services Most Used App

Quality Services 1 Most Used App 0.904604358 1

From the correlation test it is found that the value of „r‟ i.e. correlation

coefficient is found 0.9046. This shows that there is positive relation between two

variables. This means Swiggy provides quality services and it is so popular that most of

the respondents used Swiggy app.

Conclusion:

The perception of customer on online food ordering varies from individual to

individual. The perception of the customer varies according to various similarities and

difference based on their personal opinions. From the respondents data it shows that

mostly the youngsters are attached to the online food ordering, this means elder people

from east Nagpur rarely used online services as compared to the young crowed. The

paper also shows that the best offers and discount have the most influencing factor on

online food ordering system in East Nagpur. The second most influencing factor is the

convenience and on-time delivery. The study also shows that a major proportion of

respondents uses either Swiggy or Zomato to order their food online. Also from the

third question it shows that Swiggy and Zomato provides best quality services.

It is found that majority of respondents are students of East Nagpur region are

well aware of the online food ordering and most of them have used online food ordering

services which indicates the increasing popularity of the online food ordering within the

youngsters. From the hypothesis testing it is clear that there is most popular app among

sample is „Swiggy‟ and there is strong relationship between quality services and app

popularity.

References:

Anh Kim Dang, Bach Xuan Tran, Cuong Tat Nguyen, Huong Thi Le, Hoa Thi Do, Hinh Duc

Nguyen, Long Hoang Nguyen, Tu Huu Nguyen, Hue Thi Mai, Tho Dinh Tran, Chau Ngo, Thuc

Thi Minh Vu, Carl A. Latkin, Melvyn W.B. Zhang and Roger C.M. Ho,“Consumer Preference

and Attitude Regarding Online Food Products in Hanoi, Vietnam", Published by International

Journal of Environmental Research and Public Health

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H.S. Sethu, Bhavya Saini,“Customer Perception and Satisfaction on Ordering Food via Internet,

a Case on Foodzoned.Com, in Manipal”, Published by, [Online] Available:

http://www.globalbizresearch.org

Zulkarnain Kedah, Yusof Ismail, A.K.M. Ahasanul Haque, Selim Ahmed,“Key Success Factors

of Online Food Ordering Services”, [Online] Available:

http://www.researchgate.net/publication/291074636_Key_Success_Factors_of_Online_Food_Or

dering_Services_An_Empirical_Study

Purnima kulde, Desirce D‟mello (2016), “Connecting food courts in mall using mobile app”,

International journal of computer application, volume-139, issue-13, pp: 9-11

http://www.wwjmrd.com/upload/a-study-on-the-various-food-ordering-apps-based-on-

consumer-preference_1544427485.pdf

http://www.globalbizresearch.org/

http://www.researchgate.net/

padmakar shahare

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