Project on Food Ordering Online

Introduction

E-Commerce: Any business activity of buying or selling of products, goods or services

online with the help of internet and with the help of electronic devices. Just with the
help of internet connection & an electronic device one can practice a lot of things like:

E-commerce can be classified into six types:

 Business to Business
 Business to Consumer
 Business to Administration
 Consumer to Consumer
 Consumer to Business
 Consumer to Administration

E-commerce in the current scenario is a rapidly growing business activity where in all the
products, goods and services are made available to you at your finger tips where in with
access to internet and any electronic device you can buy or sell anything and take part in
commerce activity anywhere, anytime and anyplace. It has made things very easy and
convenient and it saves us a lot of time which therefore has resulted in the growth of E-
commerce worldwide and in India it is growing at a rate of 15% every quarter and is
expected to do more in the upcoming years and the revenue amounts to US$7,011 million in
2018.With the coming of the 21st century, we have entered an “e” generation era. The
Internet has generated a tremendous level of excitement through its involvement with all
kinds of businesses starting from e-Commerce, eBusiness, eCRM, eSupply Chain,
eMarketplace, ePayment, eEntertainment, eTicketing, eLearning, to eCitizenor
eGovernement. The Internet has been widely used in many sales and marketing activities,
from the collection of valuable data to the dissemination of information to different
stakeholders, for example, information retrieval, product communication, sales tool,
distribution channel, and as a customer support tool (Singh, Jayashankar and Singh 2001;
Calles 2000; Sandberg 1998; Peterson, Balasubramanian and Bronnenberg 1997). The
Internet has opened a window of opportunity to almost anyone because of its ability to make
viable the conduct of business in cyberspace, or by connecting people worldwide without
geographical limitations. Consumers can order goods and services virtually anywhere, 24
hours a day; 7 days a week without worrying about store hours, time zones, or traffic jams.

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The Internet has also provided new opportunities for marketers by offering them innovative
ways to promote, communicate, and distribute products and information to their target
consumers. E-commerce has grown phenomenally in the past decade for a variety of reasons
including changes in consumer lifestyles, technological advancements, increases in
consumer income and education, and rapid financial development throughout the world. The
use of the Internet as a shopping or purchasing vehicle has been growing at an impressive
rate throughout the last decade. The tremendous growth of online sales and the unique
functions of the Internet have drawn a great deal of attention from many companies rushing
in to set up businesses over the Internet without knowing what factors actually motivate
consumers to buy products or services online. Many marketers agree that Internet marketing
will definitely increase customer spending and loyalty to both online and offline products if
it is executed properly. This is due largely to the Internet’s significant advantage of two-way
communication and its ability to transmit information quickly and inexpensively when
compared to other traditional mass media using solely one-way communication
(Warrington, Abram& Caldwell 2000; Waldo 2000). The simultaneous and rapid rate of
consumer adoption of personal computers and network systems have encouraged and
pressured marketers to provide Internet retailing sites. Some researchers in fact predict that
the need for physical stores could be eliminated in roughly four decades and replaced with
electronic retailing (Cope 1996). While many marketers acknowledge the importance of
using the Internet in their marketing mixes, only a handful of researchers have studied what
factors encourage or discourage consumers when buying products or services online.
Despite the increasing popularity of the Internet, most knowledge of Internet marketing is
based on anecdotes and experiential evidence from television, radio, popular press or
magazines In summary, the benefits of using the Internet in marketing are enormous as they
offer a huge opportunity for marketers to create innovative activities that have not
previously been viable. However, marketers need to develop an insightful understanding of
consumer behaviour when purchasing products online. This information will help marketing
managers to plan their marketing mixes and offers to better meet customer’s requirements.
By doing so, companies will establish, maintain or increase customer satisfaction, build
strong brand loyalty and ultimately provide consumers with a solid rationale for continuing
to buy the same brand. This study is thus significant as it is a preliminary attempt to identify
factors and their relative strength in influencing consumer decision making when buying
health foods online. The research problem and objectives of this study are addressed next.

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Online food ordering

Services are websites that feature interactive menus allowing customers to place orders
with local restaurants and food cooperatives. Much like ordering consumer goods
online, many of these allow customers to keep accounts with them in order to make
frequent ordering convenient. A customer will search for a favourite restaurant, choose
from available items, and choose delivery or pick-up. Payment can be amongst others
by credit card or cash, with the restaurant returning a percentage to the online food
company. Online food ordering services are websites that feature interactive menus
allowing customers to place orders with local restaurants and food co-operatives. Much
like ordering consumer goods online many of these allow customers to keep accounts
with them in order to make frequent ordering convenient. A customer will search for a
favourite restaurant chooses from available items, and choose delivery or pick-up.
Payment amongst others by credit card or cash with the restaurant returning a
percentage to the online food company. While-commerce has been around for over a
decade closing the gap between food and the internet has taken longer. The first
restaurants to adopt online food ordering services were corporate franchises such as
Domino’s and Papa John’s.

Online food ordering could be called the response of the internet to the desire for
delivery food. It is a growing trend especially in urban 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. ‘Ordering
form grocery stores to stock the kitchen, instead of placing one time orders with a
restaurant. There are several ways in which online food ordering from a restaurant may
occur. A restaurant can have its website with easy features for placing an order for pick
up or delivery. Some add a third option of being able to make reservation. Instead of
calling for a delivery, people just access the internet to the restaurant site and make
their order

Food diversity in India is an implicit characteristic of India’s diversified culture

consisting of different regions and states within. Traditionally, Indians like to have
Home-cooked meals – a concept supported religiously as well as individually.

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However, with times due to increasing awareness and influence of western culture,
there is a slight shift in food consumption patterns among urban Indian families. It
started with eating outside and moved on to accepting a wide variety of delicacies from
world-over. Liberalization of the Indian economy in the early 1990s and the subsequent
entry of new players set a significant change in lifestyles and the food tastes of Indians.

Fast food is one which gained acceptance of Indian palate after the multinational fast-
food players adapted the basic Indian food requirements viz. vegetarian meals and
selected non-vegetarian options excluding beef and pork totally from their menu.

Multinational fast food outlets initially faced protests and non-acceptance from Indian
consumers. This was due to primary perception that these fast food players serve only
chicken and do not serve vegetarian meals. Perceived expensive besides being out-of-
way meals in Indian culture. Today, fast food industry is getting adapted to Indian food
requirements and is growing in India.

Gaining acceptance primarily from Indian youth and younger generations and is
becoming part of life. Keeping in view the Indian habits and changing preferences
towards food consumption, this study has its focus to understand the factors affecting
the perception of Indian youth, in the age group of 20-30 years, towards consumption
of fast food as well as towards making choice of fast food outlets.

Advantages for Electronic Ordering

There are advantages for both the customer and for the restaurants who participate in
online ordering. 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
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.

Disadvantage for Electronic Ordering

Customers are not able to ask about quality of food or ask for any specialized diet
foods. It is more difficult to ask for gluten free or allergy free foods with online

ordering. Also, it is more possible for a customer to place an order, but never pick up

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the order which can lead to waste of food and possibly a loss of profits.

INTRODUCTION:

Ordering food on the internet through certain apps is different from other sources of ordering
food. Technology development has increased the e- commerce companies in countries like
India. The Indian contemporary lifestyle has developed a behavior in acceptance towards the
food delivery system. According to certain study it has been observed that the influence of
foreign culture has contributed such positive attitude in the minds of consumers regarding the
acceptance of online food ordering. E-commerce development has made online food ordering
services through electronic apps easy for people who expect to get food delivered at their
doorsteps. Though customers continue to good to restaurants to have meals, they feel
comfortable to order food through electronic apps from the same restaurant they prefer.

According to a report from Randseer consulting, India’s online food ordering sector saw
a solid growth rate in the quantity of everyday orders. This growth has rapidly increased the
number of orders to approximately 400000. With the rise of online food ordering, many apps
such as swiggy, zomato, uber etc have been launched to promote home delivery system. This
new technology helps the customers to order food from their comfort zones i.e. offices,
classroom, and hostel, etc. This paves as a disadvantage for the traditional system.

In summary, the benefits of using the Internet in marketing have great advantage as they
offer a huge opportunity for the marketers to create innovative ideas. However, the investors
need to develop a brief understanding of the consumer behavior when purchasing products
(food) online. This will help the managers to implement new strategies to satisfy the
customer’s requirement. Thereby, companies will establish, or increase customer satisfaction
and also build a strong brand loyalty. Ultimately, it will provide consumers with a solid
rationale for continuing to buy the same brand. This study is thus significant as it is a
preliminary attempt is to analyze the perception of the consumers towards online food
ordering and to identify the factors that influence the consumer’s decision when they order
food online and associate advantages and disadvantages. The study also provides an
insightful understanding regarding the expectation of the consumers towards online food
ordering.

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THE FOOD SERVICE INDUSTRY:

It is a branch of the national economy that produces and sells prepared food to consumers. It
is developed more in cities than in rural areas. The food service industry is one of the largest
parts in hospitality industry. The common definition of food industry is, “the practice or
business of manufacturing, transportation and service or dispensing prepared food such as at
a restaurant.”

The modern concept of preparing food as a form of business can be traced all the way back to
at least the 11th century. There are millions of people away from their homes everyday either
by necessity or by choice. The restaurants and catering business with the help of mobile food
service feed a huge number of people. The food service industry is one of the largest and fast
growing industries in the world

HISTORY OF ONLINE FOOD ORDERING:

According to studies, it was the period of World War II when this service was started because
most of the homes and kitchen appliances of a large population was destroyed and they did
not have any place or food to cook. In Hemel Hempstead in 1947, the service was properly
started by delivering warm and pre-cooked food to people through vans. From UK, the idea
of food delivery services soon spread to The United States Of America. Apart from
delivering food to those who required it, they also aimed to provide food delivery to those
households that were poor. This method soon spread to other parts of the country including
New York and Columbus. When other parts of the world also came to know about the service
and the benefits related to them, they also excelled in this field. In Australia, the food
delivery services started in 1952

ONLINE FOOD ORDERING IN INDIA:

Internet has generated a tremendous level of excitement through its involvement with all
kinds of businesses starting from e-Commerce, e-Business, e-CRM, e-Supply chain, e-
payment etc. The growing no. of internet user in India provides a bright future for online
related shopping .The online shopping has reached a massive growth and has become an
important part of our lifestyle. In the recent times India has entered “e” generation era. With
the population of 1.2 billion India is one of the biggest consumer markets in the world today.
Moreover 50% of the population fall under the age of 25; making India among the youngest

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population in the world too. Young India’s appetite is one of the key for demand in food
industry. The other demand driving factors are:

 Promising income and consumption levels: many young Indians are being
productively employed in IT sectors which has raised their living standards. This social
change fuels the advance of online food ordering.
 Rising number of workmen: the increasing no of working men and women is
another demand driver for food industry.
 Emerging of logistics provider: the rise in the local logistic providers for food
industry also motivates online food ordering.
 Delivery dedicated websites: Speaking of Food Panda, Zomato etc have their own
websites from where we could order food.
 Perception of the consumer: Perception is defined as a process through which
individuals are exposed to information, attend to the information, and comprehend the
information (Mowen, 1995). Understanding perception and the factors determining how
consumers view products and services is a key to effective.

ONLINE FOOD ORDERING IN INDIA:

The base of the study was done in specifically India District formerly known as Thane is a
major tier II city in the Indian state in Tamil Nadu. The India district is the fourth largest
urban agglomeration in the state. Triuchirappalli sits almost in the middle of the state.
India recorded history begins in the 3rd century BC, when it was under the rule of the Cholas.
The city has also been ruled by the Pandyas, Pallavas, Mutharaiyars, Vijayanagar
Empire, Nayak Dynasty, the Carnatic state and the British. The most prominent historical
monuments in India include the Rockfort, the Ranganathaswamy temple at Srirangam and
the Jambukeswarar temple at Thiruvanaikaval. The archaeologically important town
of Uraiyur, capital of the Early Cholas, is now a suburb of India. The city played a critical
role in the Carnatic Wars (1746–1763) between the British and the French East India
companies. The city is an important educational centre in the state of Tamil Nadu and houses
nationally recognised institutions such as Indian Institute of Management (IIMT), Indian
Institute of Information Technology (IIIT) and National Institute of Technology (NITT).
Industrial units such as Bharat Heavy Electricals Limited (BHEL), Golden Rock Railway
Workshop, Ordnance Factory India (OFT) and Heavy Alloy Penetrator Project (HAPP) have

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their factories in the city. The presence of a large number of energy equipment manufacturing
units in and around the city has earned it the title of Energy Equipment and Fabrication
Capital of India.India is internationally known for a brand of cheroot known as the  Thane
cigar , which was exported in large quantities to the United Kingdom during the 19 th century.
A major road and railway hub in the state, the city is served by the India International
Airport (TRZ) which operates flights to the Middle East and Southeast Asia. Online food
delivery started in India in the late 2016. The first online food delivery website was
Feenix.com. Feenix was started by a group of guys from St.Joseph’s college, India. It was the
first startup which gave a new wave of ease to order food through online. Residents of India
came to know about food ordering only through this Then in the year 2018, many known
food apps such as Swiggy, Zomato and Uber Eats made their debut in India. With their entry
miny local online delivery apps such as Kaikart.in, Munchbox and Feenix faced a huge drop
in sales. These new apps attracted customers through its easy user interface and exciting
offers. Apps like Swiggy gave a discount for new users and also faster delivery services
attracted a huge crowd of customers to try it.

WHY PEOPLE ORDER:

 No cooking required.
 We can get food whenever we want.
 Free from going to restaurants and pickups.

FOOD ORDERING APPS IN INDIA:

  Swiggy

 Zomato Order

 Uber Eats

 Foodpanda 

 Domino’s

 Pizza Hut

 JustEat

 Faaso’s

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 TastyKhana

 FoodMingo

FOOD ORDERING APP IN INDIA DISTRICT:

  Swiggy

 Zomato Order

 Uber Eats

 Domino’s

SWIGGY:

Swiggy is one of the top rated food ordering mobile application in India. It was aroused by
the prospect of giving entire sustenance requesting and conveyance arrangement from the
best nearby hotels to the customers. Swiggy are the best food delivery app in India and other
top cities in India.

ZOMATO:

Zomoto is an online food ordering service which is launched by popular restaurant finder
Zomato. It is a food delivery service in India operating from all major cities. Zomato is the
biggest rival for Swiggy in India.

UBER EATS:

Uber Eats is a popular online food ordering app in India which operates in all major cities
including Mumbai, Chennai, Bangalore, Hyderabad, Delhi and more. This mobile app is
acceptable for both android and iOS devices. This is a venture of Uber Technologies, Inc.
who is also own popular taxi service across the globe.

DOMINO’S:

Domino’s is a prominent pizza delivery app is also available for both android and iOS
devices. The telephone call pizza ordering service is now upgraded as a mobile app to place
an order without calling.

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STATEMENT OF THE PROBLEM:

To study the customers perception towards online food ordering among the Customers of
Tiruchirapalli district.

ZOMATO

Zomato is a restaurant search, discovery and delivery service which was founded in
2008 by Deepinder Goyal and Pankaj Bhardwaj. It operates in over 23 countries which
includes India, Australia and the United States. It features restaurant information which
gives the customer or the user information about best dinning place their menus and
photos uploaded by local street teams, as well as user reviews and ratings. The
company also provides a variety of services like online ordering, table reservation etc.

Zomato collects all the required information from every restaurant on a regular basis to
ensure their data is fresh. They have a vast community of food lovers and bloggers who
share their own reviews and photos; so that the customers have all that they need to
make their preferred choice.

INVESTMENT

The online food delivery aggregator Zomato has approximately raised around USD
16.7 million in the year 2010-13 from Info Edge India, by offering stakes of 57.9% in
Zomato. It also raised USD 37 million additionally from Sequoia Capital and Info Edge
India.

Zomato completed another round of funding which was jointly taken from Info Edge
India and Vy Capital in November 2014, the funding being around USD 60 million and
at a post-money estimation of USD 660 million.

It had funds coming from a Singapore government owned company-Temasek which

along with Vy Capital invested around USD 60 million in September. Info Edge India,
Sequoia Capital and Vy capital led a further round of investment of USD 50 million.

In October 2018, Zomato raised $210 million from Alibaba's payment affiliate Ant
Financial. Ant Financial received an ownership stake of over 10% of the company as
part of the round, which valued Zomato at around $2 billion. Zomato had also raised an
additional $150 million also from Ant Financial earlier in 2018.
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Values followed by Zomato:

 Possession
 Judgement
 Communication
 Interest
 Valour
 Teamwork, Initiative, Leadership.

Starting off with providing information about over 1 million restaurants worldwide to
its users, they are now making dining much convenient and more pleasing with services
like online ordering of food and table reservations.

HIGHLIGHTS OF THE ZOMATO DELIVERY SERVICE

 Their main aim is to maximise their business potential by targeting the hungry
customers.
 They provide a user friendly app base which is easy to use and place an order.
 Online payments are made more easier, simpler, convenient which provides
ease of payment with secured transactions and no extra service charge to banks.
 They provide a lot of promotions and offers to attract a lot of customers.
 They conduct Loyalty programs where in the loyal customers are rewarded
and given additional benefits.
 It provides exceptional customer care service which handles the queries,
complaints, refunds and technical issues.

SWOT ANALYSIS OF ZOMATO

 STRENGTHS
It is the first delivery service in most of the nations.
It has a fast expanding and growing market.

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 The app is user friendly compared to its competitors and also has won
many awards for its design.
 Zomato has a huge customer base which is an added advantage.
 It has a large number of investors and has a enough funding.
 Zomato has made a lot of profits since the time it was launched.
 It has a very good marketing strategy which has helped in acquiring a
lot of customers.

 WEAKNESS
 The major concern was related to the privacy and security issues for
the app – A recent incident where in the app was hacked and almost 17 million users
data was leaked.
 Zomato still requires a lot of expansion.
 Word of mouth and Facebook check-ins have lessened the number of
people using Zomato.

 OPPORTUNITIES
 Further expansion.
 More acquisitions.
 The concept of Cloud restaurant where the restaurants need not have a
physical existence to sell their food, instead they can sell their food through Zomato.
 Zomato does have a huge following but the users do not interact with
each other. Creating a forum and a community out of the users already following
Zomato can be a huge benefit for the brand.

 THREATS
 The major threat would be from the new entrants, many new food
delivery start ups have been emerging in the recent years.
Not all the customers will be loyal towards one aggregator, if there is a better one providing
offers and discounts the existing customers may move on.
 Uncertain Research and Development outcomes, sometimes if the
predictions of the R&D may not work as thought it might lead to failure.

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SWIGGY

Swiggy is an Online Food ordering and Delivery Company whose headquarter is

located in Bangalore, India. The inspirational thought of Swiggy offering a complete
food ordering and delivery service online through their apps and web from the
neighbouring restaurants around to the urban foodie.

The idea was induced into their heads noticing the vast gap between the food ordering
and delivery space, where in a lot of restaurants faced the issue of not having sufficient
delivery boys, so this sparked a thought and they started a small setup on August 2014
with a team of six delivery boys and covering 25 restaurants which soon became a hit
and now it operates around 13 cities and it offers a single window for ordering from a
large range of restaurants, they have their own exclusive fleet of delivery personnel to
pick up orders from restaurants and deliver it to customers. Having their own fleet gives
them the flexibility to offer customers a no minimum order policy on any restaurant and
accept online payments for all partner restaurants that we work with.

Started by three young entrepreneurs Swiggy set its foot mark on August 2014, the
online food ordering and delivery start-up Swiggy as of today has more than 5,000,000
mobile application installations, and has become the most popular known brand name
for almost everyone who wants to order food.

Swiggy on an average has a tie up with more than 25,000 restaurants, Swiggy has its
own manpower which has a fleet of in-house delivery boys and it operates across
different cities in India, which includes Bangalore, Mumbai, Chennai, Delhi,
Hyderabad and more.

Two graduates from BITS Pilani, Sriharsha Majety and Nandan Reddy came up with
the idea and decided they wanted to change things and make life easier by changing the
way India eats - all at the finger tips the customer. Their explicit idea of ’hyper local
food delivery’, all they wanted was the technology to power it and were introduced to
Rahul Jaimini, who then transformed that vision into reality with the first website. And
with this, these young chaps launched Swiggy an online food ordering & delivery
platform, which has now made it big and has made its way in becoming one of the top
food delivery aggregator.

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After having a slow start with less takers and people not relying on the online food
delivery services, Swiggy made it big by understanding the customer needs and wants
and by providing a lot of offers and top notch advertising they transformed themselves
into an unstoppable force that has now changed the way India eats.

Values followed by the Swiggy:

 Customers come first.

 Striving for excellence.
 To be sincere and display highest levels of reliability.
 Exhibit prejudice for action.
 Being polite and humble towards its customers.

BENEFITS SWIGGY EMPLOYEES RECEIVE

 Swiggy provides personal accident insurance.

 It provides group medical insurance for all its employees/delivery boys.
 Pre-loaded food cart.
 Mobile allowance is given to all the delivery boys.
 Maternity and implementation leave policy.
 Provides free support on tax and investment planning.

SWOT ANALYSIS

STRENGTH
 Swiggy is always known for its speedy delivery.
 It has created recognition among people.
 They have well trained team which offer exceptional service.
 It offers a wide selection of restaurants to choose from.
 They maintain clean and neat quality packaging.
 It offers free delivery services without imposing any delivery charges from the
customer.

WEAKNESS
 Orders are only from the restaurants within the particular area or province.
 People in few cities are not aware about the brand.

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OPPORTUNITIES
Leader in online food delivery business.
 Growing market for potential customers.
 Re-branding can help them grow up in the market.
 Need to increase and concentrate on their zonal restaurant base.

THREATS.
 Increase in the number of new competitors.
 Neglecting the potential competitors.
 The customer base of Swiggy is decreasing.

Today, Swiggy is one of the top food ordering and delivery platforms in India. The
inventive technology, large and quick delivery service, and outstanding consumer focus
at Swiggy has enabled a host of benefits that includes:

 Lightning fast deliveries

 Live order tracking
 No limit on minimum order amount, all while having the delight of enjoying
your desired meal anywhere, anytime and anyplace the customers like it.

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CHAPTER II
RESEARCH METHODOLOGY
Research design is a logical and systematic plan prepared for directing a research study. It
specifies the objectives of the study and techniques to be adopted to achieve the stated
objectives. It is a specification of methods and procedures for acquiring the information
needed for solving the problem. It involves arrangement of condition for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. So a research design is the conceptual structure with which research
is conducted. In the previous chapter a brief review of related literature was presented. The
review of related literature helped the investigator to have a clear background about the
subject of study and also a method and procedures to be adopted for the present study. In the
present chapter it deals with the methodology of the concerned study in terms of statement of
the problem, operational definitions sampling procedures, size of the sample and description
of the tool have been explained. Research design is a logical and systematic plan prepared
for directing a research study. It is quest for knowledge. Research may be defined as a
process of knowing new facts and verifying old ones by application of scientific methods to
a natural or social phenomenon.

Meaning – Research design or methodology is simply a plan for study. It is called a blue
print to carry out the study. It is like plan made by an architect to build the house, if research
is conducted without a blue print, the result is likely to be different from that what is expected
at the start. It specifies the objectives of the study and techniques to be adopted to achieve the
stated objectives. It is a specification of methods and procedures for acquiring the
information needed for solving the problem. It involves arrangement of condition for
collection and analysis of data in a manner that aims to combine relevance to the research
purpose with economy in procedure. So a research design is the conceptual structure with
which research is conducted.

NEED OF STUDY:

Food delivery services have increased in the recent years; there is a stringent competition
among various service providers like FoodPanda, FreshMenu, Uber Eats, Swiggy,
Zomato...Etc.

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 It is important to understand the consumer behavior towards food delivery services.

 To understand the mindset of consumers and provide satisfactory customer service.

 To understand the consumer need and wants.

STATEMENT OF THE PROBLEM:

 “A Problem statement is clear concise description of the issues that needs to

be addressed”.
 The project is about food delivery services which are increasing rapidly in
India where there are many competitors and the best service provider gets a firm hold in
the market.

Most of the people still prefer take away and visiting the restaurants instead of going for
online delivery services. Apart from which restaurants have their own delivery services
which might act as a barrier to these online food delivery services.

OBJECTIVE OF THE STUDY:

 To study consumer’s attitude and perceptions towards online food ordering system.
 To find out the factors influencing the decision of the consumer while ordering food
online.
 To identify the issues faced by the consumers while ordering food online.
 To identify whether the demographic factors has an impact on ordering food online.

SCOPE OF THE STUDY:

The difference between the organized and the unorganized sector in the Indian hospitality
industry is huge. This does not just include hotels, but also the food service segment. Apart
from the organized chain restaurants, most restaurants cater to local needs and often at a
micro market level. In such a scenario, creating a loyal customer base is not difficult and a
specialized marketing and sales force may not be necessary- By David Buttress. Enter online
food ordering websites. These websites have been developed more for consumer convenience
than anything else. But they do open a plethora of opportunities for small establishments to
grow their business further. Online food ordering has been an international phenomenon for a

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while now. There have been many variations in India as well which have taken off at
different periods of time, but success has been hard to come by.

RESEARCH DESIGN:

Research design is a logical and systematic plan prepared for directing a research study. It
specifies the objectives of the study and techniques to be adopted to achieve the stated
objectives. It is a specification of methods and procedures for acquiring the information
needed for solving the problem. It involves arrangement of condition for collection and
analysis of data in a manner that aims to combine relevance to the research purpose with
economy in procedure. So a research design is the conceptual structure with which research is
conducted.

POPULATION SAMPLE:

A sample of 60 people of both male and female is drawn from India district has been given
with duly filled up questionnaire through online. Out of the whole population of the India
district a sample size 60 consumers are taken as respondents. This survey is based on simple
random sampling method. The data is restricted to 60 respondents of consumers in India.

DATA COLLECTION METHOD:

PRIMARY DATA

In order to analyze the perception of consumers towards buying food online, 60 consumers
who have used various online apps and websites for ordering food were analyzed. In order to
collect relevant data from the respondents a questionnaire of 20 questions were framed.

SECONDARY DATA

Here the secondary data was obtained from –

 Texts books for references.

 Various articles regarding the recent trends and changes.
 Magazines and Journals present.
 Websites of various online food businesses.

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PERIOD OF THE STUDY:

It took nearly two months of research and collecting data through various sources for this
research project.

LIMITATIONS OF THE STUDY:

 This project is limited to the retailers available in India district and does not relate to
any other regions.
 The period of study is limited to two months.
 100 samples alone are collected and thus it does not cover entire consumers in the
district.
 Due to the small size of sample it is difficult to identify significant relationship with
the consumers.

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CHAPTER III

REVIEW OF LITERATURE:

Sheryl E. Kimes (2011), the perception of users and non users differ; her study found that
perceived convenience and quality of an electronic food ordering app in the minds of the
consumers is significant. The perception of quality towards electronic apps is also associated
with the services offered by them and were considered important for both users and non-
users. Non-users need more personal interaction.

Mathews Joao Chorneukar and Kanishka (2014), the study concentrated on the perception
of consumers towards electronic food ordering. The respondents were more likely to
recommend online food ordering. The study also identified that more male customers
preferred ordering food online than women. The study found that there was more demand on
cash on delivery payment system.

Bhuvanesh Kumar Sharma and Deepak Tiwari (2015), E commerce is rapidly growing in
India. The study is limited as it covers only Bhopal region. It examined the perception of
college students towards fast food and also to identify the difference in residential and non
residential choice towards fast food. The study found that the female students prefer to buy
more fast foods than compared to male consumers. There were also certain other factors that
affect the choice of the consumers are price, taste, quality and hygiene.

Ramesh Chavan (2015), he attempted to measure the preference of the consumer towards
online grocery shopping in Bangalore. The hypothesis framed for the project was, “Online
grocery shopping stores are beneficial for consumers” and hypothesis was proved to be
positive

Praveen Babu Chiruthuti (2015), the study concluded that there is scope for new firms to
enter the market. It also stated that the concept of instant and fortified food products must be
promoted. The study also found that the demographic factors affect the purchasing power and
perception of the buyer.

H.S Sethu and Bhavya Saini (2016), their aim was to study the perception of students
towards ordering food online. The study was based on non probability sampling method. The
study revealed that the online food ordering was preferred and used by 100 percent of the

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respondents, and the buying decisions where influenced by family and friends. The students
also stated that the word of mouth by existing customers decides the success of web based
food shopping.

Kathika and A. Manojanaranjani (2018), one of the most significant impacts of technology
has been the emergence of virtual stores that sell products or services online. This has
motivated the consumer to purchase products around the clock. Their study was based on
various food ordering apps based on customer preference and the results were based on
service and performance level. The study also found out that these food ordering apps gives
the consumers a different experience and has an impact on their lifestyle as they are getting
used to it.

International Journal of Environmental Research and Public Health (2018), it was an

international research paper which studied the preference of buyers towards ordering food
online in Hanoi, Vietnam. It focused on the changed behavior of consumers because of the
internet and the consumer food safety concern of online food products. The factors
influencing were price and convenience. A majority of the respondents were concerned about
food safety certificate and their origin. The findings also suggested the government of
Vietnam to implement appropriate legislations regarding trading food products online.

Jyothishman Das (2018), the mobile application has made all traditional methods of
business outdated and has created new advanced methods in doing business. The study was
aimed on analyzing the perception of the consumers towards ordering food online in Pune.
The purpose of the study was to identify the factors influencing, their perceptions, needs and
the overall satisfaction towards online food delivery systems. The study found that the
previous bad experience is the major factor that affects electronic food ordering online.

Suryadev Singh Rathore and Mahik Chaudary (2018), the recent growth in internet has
augmented e commerce industries in developing countries like India. The objectives of the
study were to identify the factors that influence the consumers to order food online and to
identify the preference of the consumers towards online shopping. The study found that the
convenience and time of delivery were the factors influencing the customers to order food
online.

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V. Shanthi and L. Nanda Gopal (2018), the study concentrated on the classification of
online shoppers in the terms of demography. The result was equal as men and women had
similar opinions on shopping online. The other demographic factors also did not act as barrier
for the consumers to shop online.

Brymer (1991) states that the hospitality industry is comprised of those businesses
which practice the act of being hospitable; those businesses which are characterized by
generosity and friendliness to guest. This business that comprise the major segments of
the industry: food service, lodging, travel and recreation.

The Connotative Meaning of Food

Grunert stated that "people seek food, not nutrients. The common beliefs underlying all
these classifications are that food has social and psychic meanings that meals serve as
communicative symbolism, and "that eating is an experience that may be invested with
many intellectual and emotional values quite apart from metabolic utilization of the
food" (Babcoke, 1948, p.390). Eating is a deeply engrained source of satisfaction and
the restaurant customer wants an eating experience which combines food, service,
d6cor, and indefinable extra (Hall, 1977).

The Foodservice Industry

Hall (1977) stated that the millions of people who "eat out" every day have a wide
variety of needs and tastes from a quick lunch to a luxurious meal with elaborate
service. Because of these differences there are many kinds of restaurants varying from
street stands for a hot dog or bowl of noodles to elaborate restaurants with the best
cooking. There are millions of people away from their homes everyday either by
necessity or by choice. The restaurant and catering business has developed to feed this
huge number of transients-office and factory workers, schoolchildren, military
personnel, travellers, and 6 people out to have a good time. Because there are so many
to feed, the restaurant and catering business is one of the largest and fast-growing
industries in the world. Those who eat away from home spend vast sums of money for
restaurant or catered meals (Hall, 1977). Ten years into the new millennium, US.
Restaurant industry sales will reach $576.9 billion or about $222 billion more than is
generated currently, according to a newly released industry forecast. While the

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restaurant industry now garners about 44 cents of every dollar spent on food, the sales
are projected to climb to a 53.2 percent share of the total food dollar by 2010,
according to the National Restaurant Association (Papiernik, 1999).

The Restaurant Business

The restaurant business, say the National Restaurant Association (NRA), is the third
largest of all businesses in the United States (Lungberg, 1994). Local restaurants are
made up of establishments that include fast-food units, coffee shops, specialty
restaurants, family restaurants, cafeterias, and full-service restaurants with carefully
orchestrated "atmosphere", said Goeldner, Ritchie and Mcintoch (1999). According to
Lungberg (1994), the NRA classified all eating establishments into three categories:
Commercial foodservice, institutional foodservice, and military foodservice.

Why people eat out

According to Lungberg and Walker (1993) said that the reasons for "eating out" are
several and some of them complex. The National Restaurant Association (NRA) has
sponsored a number of studies of restaurant consumers and their reactions to various
kinds of restaurants. According to one of these studies, the three most important
considerations in the decision to eat out were:

- No one has to clean up

- It permits a change of pace

- It is considered a treat When selecting a new restaurant, the person depends a

great deal upon recommendations of friends. This is nearly equal in importance to the
type of food the restaurant serves. Appearance and location are a distant third and forth
in consideration.

Quality of food is the most important factor in people's evaluation of any of restaurant.
The second most important factor varies by restaurant type. In fast-food, coffee shops,
and take-out restaurants, it is speed of service; in family-type restaurants, cleanliness;
in cafeteria, it is the selection of food; and in atmosphere/specialty restaurants, it is the
atmosphere or d6cor.

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According to National Restaurant Association statistics, the most common day of the
year to dine out is a birthday. Approximately 50% of consumers celebrate their
birthday at a restaurant. Mother's Day and Father's Day rank as the second and third
busiest holidays celebrated in restaurants. The most popular day of the week for
consumers to dine out is Friday, followed by Saturday and Thursday (Mill, 1998).

Customer Satisfaction
According to The City Pages, Minneapolis/ St. Paul reviewed about one Vietnamese
restaurant in town by Moskowitz (1999) said “Customers are stocking up in pursuit of
fresh, simple Vietnamese food made with an emphasis on clean flavour and bright
herbs, delivered quickly, and priced reasonably".

Meeting Customer Expectations

Increasingly, customers have higher expectations, demanding more attention and
friendlier service. Most customers seem satisfied with food quality, dinning are
cleanliness, comfort of the atmosphere, freshness of the ingredients, and portion size.
Indeed, the only area where satisfaction is less than 50 percent relates to noise level. As
the customer base ages this is expected to become of even greater concern. Rising
expectations manifest themselves in a desire for a better price/ value relationship.

Perception
Perception is defined as a process through which individuals are exposed to
information, attend to the information, and comprehend the information (Mowen,
1995). Understanding perception and the factors determining how consumers view
products and services is central to effective marketing (Berkman, Lindquist, and Sirgy,
1996). Schiffman and Kanuk (1994) stated about consumer perception saying "as
diverse individuals, we all tend to see the world in our own special ways. "Reality" to
an individual is merely that individual's perception of what is "out there"- of what has
taken place. Individuals act and react on the basis of their perceptions, not on the basis
of objective reality. Thus, to the marketer, consumers' perceptions are much more
important than their knowledge of objective reality. For if one thinks about it, it's not
what actually is so, but what consumers think is so that affects their actions, their
buying habits, their leisure habits, and so forth. And because individuals make
decisions and take actions based on what they perceive to be reality, it is important that

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marketers understand the whole notion of perception and its related concepts so they
can more readily determine what factors influence consumer to buy."

Motivation
Motivation can be described as the driving force within individuals that impels them to
action. This driving force is produced by a state of tension, which exists as the result of
an unfulfilled need. Individuals strive-both consciously and subconsciously-to reduce
this tension through behaviour that they anticipate will fulfil their needs and thus
relieve them of the stress they feel. The specific goals they

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select and the patterns of action they undertake to achieve their goals are the results of
individual thinking and learning (Schiffman and Kanuk, 1994).

What motivate people to eat out According to Lundberg (1994) said people eat out for
a variety of reasons: to satisfy hunger, social needs, and ego and self-fulfilment needs.
The most popular theory of motivation, that proposed by A.H. Maslow, states that
humans are wanting animals. As soon as one need is satisfied, another appears to take
its place, motivating from the need for safety or security up the scale through social,
ego, and self-fulfilment. People go to restaurant to satisfy not only hunger but also self-
esteem, self- respect, self-confidence, and prestige needs

The Buying Process

Various internal and external factors combine to influence how customers choose
where, when, how, and why to eat out. The vehicle used to explore this will be a
national study prepared by the National Restaurant Association on the dinner market
[5].

Decision Scenarios

This report divides all dinner decisions into five basic decision scenarios:

 "Fun time." This relates to an upbeat mood and a sense of anticipation of

fun; the decision tends to be made well in advance.
 "Nice meal out." The desire is t enjoy the satisfaction or enjoyment of
eating out, being served, and getting good food, lots of it, at a reasonable price.
 "Craving." This refers to a desire for a particular type of food; seeing or
smelling this type of food can set off the carving.
"Making sure that everyone is getting something to eat." This motivation comes from the
hectic pace of everyday life, attempting to balance a variety of work and family schedules
 CONCLUSION
The online food ordering app system will be helpful for the hotels and restaurants to increase
the scope of the business by helping users to give order through online. This study was to find
the awareness level, preference and satisfaction derived by the consumer and also to find
which factor influence customers to buy food through online from food ordering app. The
purpose of this online food ordering system is basically to save the time of the customers
especially when he/she has to invite people for any occasion. The chief reason of electronic
ordering is convenience. The single most important attribute of electronic ordering is
accuracy. Customers who evaluate service quality based on interactions with employees
won’t want to use self-service ordering. Similarly, customers who were uncomfortable with
technology may be reluctant to try an electronic self-service site because they may be afraid
of getting tangled up in the technology. It shows that perceived control and convenience are
keys to customer use of online ordering which leads to higher satisfaction. Young customers
are more likely to use online, mobile or text ordering. Young customers place a greater value
on convenience and speed than older users do. Almost all users feel safe paying online. The
Service rendered by the food ordering app is the major factor behind its success.
CONSUMER PERCETION ON ONLINE FOOD ORDERING

1. Age of the respondent

2. Sex of the respondent

 Female
 Male

3. No. of people in the family

4. Marital Status
 Married
 Unmarried

5. Employment Status
 Employed
 Unemployed
 Student

6. Family Income of the respondent (P.A)

 1-5 Lakhs
 5-10 Lakhs
 10- 15 Lakhs
 More than 15 Lakhs

QUESTIONS ON ONLINE FOOD ORDERING:

7. How much do you use apps to order food online?

 Always
 Mostly
 Rarely
 Never

8. Which is more convenient?

 Ordering food from online apps
 Ordering food through restaurants
 Going to a restaurant

9. How safe do you think online apps are in terms of payment?

 0 1 2 3 4 5

10. Have there been any lifestyle changes since you started ordering food from online?
 Yes
 No
 Maybe

11. According to you what is the most convenient method of payment?

 Cash on Delivery
 Digital Payment ( Paytm, Tez,etc.)
 Card (Debit/Credit)
 Other:

12. What attracts you the most to order food online?

 Discount & Offers
 Ease of ordering
 Time saving
 Other:

13. Who orders food the maximum time in your family?

14. How fair do you think the prices are set for delivery and packaging?

0 1 2 3 4 5

15. How much in a week do you order food from online apps?
 More than once
 2 - 3 Times
 More than 4 times
16. What is the biggest problem you have faced while ordering food online?

17. Rate how well do you think has the online food ordering system has developed in
Trichy? *

0 1 2 3 4 5

18. How much satisfactory are the help options in food delivery apps/Website

0 1 2 3 4 5

19. If there are any changes that you would like to make in food delivering apps in terms
of trichy, what will they be? *