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Factors affecting online food delivery service in Bangladesh: an empirical

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Article  in  British Food Journal · September 2020

DOI: 10.1108/BFJ-05-2020-0449

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Factors affecting online food Online food

delivery
delivery service in Bangladesh: service in
Bangladesh
an empirical study
Ahmed Tausif Saad 535
Department of Business Administration, University of Asia Pacific, Dhaka, Bangladesh
Received 31 May 2020
Revised 24 July 2020
Abstract 27 August 2020
Accepted 28 August 2020
Purpose – The core idea of this paper was to empirically evaluate the factors affecting the choices of
consumers while ordering food online. The goal was to explore consumer behavior in the emerging industry of
online food delivery business in an emerging economy, Bangladesh.
Design/methodology/approach – This paper used a qualitative and exploratory approach through the
collection and analysis of data from a total of 177 survey respondents. Statistical analyses of all collected data
(utilizing t-tests and factor analysis) were used to conclude the factors important to consumers in ordering food
online through online food delivery intermediaries.
Findings – Results showed delivery time, service quality, price and condition of food delivered as factors
constitute the first factor considered to be directly affecting the success of online food delivery. Variety and
number of restaurants, menu, delivery tracking service and attitude of a delivery person are found to constitute
the second factor and considered as indirect factors.
Practical implications – Online food ordering has been a very emerging sector globally and also a recent
phenomenon in Bangladesh. The development and the availability of the internet combined with the busy life
schedule has prompted businesses to address another need among consumers, the need to deliver foods at
consumers’ doorsteps. Understanding the consumer landscape better would help realize the full potential of the
e-commerce platform as it can influence the economy, businesses and the quality of life of people.
Originality/value – The online food delivery business is new and growing and demands greater researches
for better understanding by academicians and practitioners. This paper expands the limited existing research
related to the online food delivery business and explores consumer behavior in the industry. From a managerial
perspective, the paper contributes to understanding the consumers more broadly.
Keywords Online food delivery, Consumer behavior, E-commerce, Online retailing, Factor analysis
Paper type Research paper

Introduction
The rapid growth of the internet and wireless technologies has substantially impacted the
online retailing and e-commerce advancement (Bressolles et al., 2014; Amir and Rizvi, 2017).
Affordability of smart devices, improvement in telecommunication infrastructure, combined
with increasing purchasing power, lack of time and extra convenience have forced businesses
to integrate technology into business and cater to the growing needs of people and allowed
the rapid growth of this new business model of online food order (Bezerra et al., 2013;
Machado and Pigatto, 2015). With a vision of embracing digitalization, Bangladesh has seen a
rapid proliferation of cheap smart devices and upsurge in the number of mobile and internet
subscribers in the past few years. The country has witnessed more than twice the number of
internet subscribers in the last five years (BTRC, 2020). As an emerging economy,
Bangladesh has witnessed a substantial annual GDP growth rate and increasing per capita
income. This has led to the enormous growth of online shops catering to the people who are
constantly coping with a busy schedule. Consumers are inclined towards online shopping
because they can exercise convenience, the comfort of their own homes and the leisure of their
own time (Jiang et al., 2013). The changing nature of urban consumers has sparked the British Food Journal
emergence of online food delivery services (Chai and Yat, 2019). This idea of food delivery is Vol. 123 No. 2, 2021
pp. 535-550
quickly flourishing due to the increase in the number of the working population and their © Emerald Publishing Limited
0007-070X
time-cramped work–life culture in metro cities (Das and Ghose, 2019). Global researchers DOI 10.1108/BFJ-05-2020-0449
BFJ have widely studied online shopping behavior to gain good insight into consumer behavior in
123,2 this area. (H€aubl and Trifts, 2000; Miyazaki and Fernandez, 2001; Zhou et al., 2007).
Convenience, usage, usefulness and other motives are reasons why consumers prefer online
services. (Saarij€arvi et al., 2014; Kimes, 2011; Littler and Melanthiou, 2006). Online shopping
has enabled consumers to reduce their decision-making efforts by offering greater options to
choose from, screen information and compare products (Alba et al., 1997). Customers of online
food delivery value ease and convenience as online food ordering eliminated the frustration of
536 bad traffic or weather (Ha, 2013). Although most of the previous researches have focused on
online shopping behavior, not much light has been shed in this arena of online food delivery
business (Sethu and Saini, 2016; Yeo et al., 2017). There is still a lack of understanding of
consumer behavior in online food shopping in the growing Bangladesh market. This study
contributes to the existing body of knowledge through the identification of factors toward
online shopping of food through food delivery intermediaries in a developing country. With
new players entering the market it is important to understand the landscape of consumer
behavior and the factors critical to success in the Bangladesh market. This study will add to
the limited literature by trying to explore consumer choices and identifying important
success factors in the emerging business of online food delivery.

Rationale for research

The concept of ride sharing is very new in Bangladesh but has gained a lot of popularity in its
early stages. After gaining the trust of the people in the ride-sharing sector, mainly the bike ride-
sharing, the local brand Pathao has been quick to realize they could capture a growing need of the
consumers to order food from home or work from restaurants all around Dhaka. Hence
PathaoFood was launched in January 2018 in Dhaka and later in Chittagong. Currently, the major
players in the industry are FoodPanda, HungryNaki, Shohoz Foods and UberEats. Shohoz Food
and UberEats are sister concerns of Shohoz and Uber, respectively, the competitors of Pathao in
the ride-sharing industry. From a managerial point of view, understanding the consumer
behavior of the customers can be a source of strength and will enable the industry players to
maximize their market share by tailoring the services accordingly.
The prime objective of the study is to identify the factors critical to success for the online
food delivery services in Bangladesh.

Literature review
Online food delivery service
Hoffman et al. (2010) labeled goods as objects, devices or things and services as actions, efforts
or performances. With lives are getting busier every day, people have less chance to go out and
eat or prepare a meal at home, and this has created a demand for online food ordering (Chen and
Hsieh, 2017). According to Pigatto et al. (2017), online food delivery services can be
characterized as business platforms that provide order services, payment and monitoring of the
process but are not in charge of the preparation of the food. In online retail sales, face-to-face
interaction is being replaced by interaction through cell phone apps and internet-based
communication tools such as e-mail, chat and SMS or the websites of companies, where
customers can search, retrieve and place orders (Cai and Jun, 2003). According to Chen et al.
(2009), companies that seek to offer services and products profitably are using innovative
delivery methods as a new basis of differentiation and providing greater value for customers.
Similarly, Gr€onroos and Gummerus (2014) stated that value creation is a process that includes
the action of several actors starting from the service provider to the client and others that ends
up creating value for the customer. Retailers providing food delivery services can be
categorized into two types. The first is retailers themselves. This category is mainly covered by
fast-food chains Pizza Hut, McDonald’s, Domino’s Pizza, Kentucky Fried Chicken (KFC) and so Online food
on. The second category is composed of multiple restaurant intermediaries that provide delivery
delivery services for a large range of restaurants (Yeo et al., 2017). Examples include UberEats,
Food Panda, Room Service, GrubHub, HungryNaki, PathaoFood and more. The food-delivery
service in
business from restaurants to customers’ homes is experiencing significant change as new Bangladesh
online platforms race to capture markets and customers across the globe. The online food–
delivery platforms are providing customers expanded choice and convenience, allowing
customers to order from a wide range of choices of restaurants with a single tap of their mobile 537
phone (Hirschberg et al., 2016). In the article “The changing market for food delivery”,
Hirschberg et al. (2016) point out the traditional model as the most common form of delivery
which is the traditional food delivery system. This traditional category, in which consumers
place an order with the local pizza parlors or other restaurants and wait for the restaurant to
bring the food to their doorsteps has a 90% market share, and most of those orders are still
placed by phone. However, this market just like other markets is experiencing reshaping due to
the rise in digital technology. Consumers are now accustomed to shopping online through apps
or websites due to convenience and expect the same in case of ordering food.
Growing urbanization, the participation of women in the workforce and the increase in
family income are factors that have frequented the habit of eating out (Bezerra et al., 2013).
Young males with higher incomes and who live in urban areas have shown a growing trend in
eating out. Foods with higher calorie content are some food products that are preferred by the
public in general. (Bezerra et al., 2013). The habit of going out to eat was viewed as a secondary
activity and therefore unnecessary until the early 1990s. It was also not a priority in everyday
decisions and that people chose a la carte restaurants, which were time-consuming and costly;
thus, people preferred to cook at home (Machado and Pigatto, 2015). A lot of studies have
focused on customer behavior in the context of Indian food delivery apps, namely Zomato,
Swiggy, Foodpanda, Ubereats and Fasoos. Vinaik et al. (2019) conducted a study to understand
the viable factors considered by the consumers while ordering food from a particular app and
the various methods and factors based on which food apps can be compared. Chandrasekhar
et al. (2019) investigated the impact of online food delivery services like Swiggy, Foodpanda,
Zomato, etc., on consumers and found that the consumers mostly prefer distinctiveness
concerning price, quality and delivery. Das (2018) made a comparative study of consumers’
perception towards the online food ordering and delivery services, namely Zomato, Swiggy,
UberEats and Foodpanda. Sethu and Saini (2016) investigated the impact of OFD services
among students in India and found online food purchasing services help students in better time
management by providing access to their desired food conveniently. Kedah et al. (2015) studied
the determinants of the customer ordering experience, which include website trust, customer
satisfaction and loyalty among Malaysian consumers. Chai and Yat (2019) attempted to
establish an integrated model that investigates the relationship of antecedents with the
behavioral intent toward OFD services among Malaysian urban residents. Daud and Yoong
(2019) examined two factors, time and price, influencing behavioral intention to use online food
delivery intermediaries (FDI) service among Malaysian consumers and found only time factor
to have a significant impact. Correaa et al. (2018) evaluated the impact of traffic conditions on
key performance indicators of online food delivery services by studying customers in Bogota
city. The online food delivery market is yet to mature. Joint efforts of the online food delivery
platforms and restaurants, the concerned government departments, consumers and all parties
in the society are needed to create a good online takeaway environment (Lan et al., 2016)

Hypotheses development
Price. The popularity of online food delivery service is growing rapidly because of its several
benefits, such as bringing food to the doorstep of customers, various payment alternatives,
BFJ attractive discounts, rewards and cashback offers. (MarketWatch, 2019). Consumers can surf
123,2 virtual retail stores and find the lowest price. Morganti et al. (2014), Andaleeb and Conway
(2006) and Parasuraman et al. (1994) showed that price and product quality together with
service quality influence customer satisfaction and hence customer choice. Jin and Gu Suh
(2005) termed consumers as price-conscious and value-conscious. One of the reasons why
restaurant business owners are unwilling to outsource delivery to third party online delivery
service providers is customers’ affordability to pay delivery fees (See-Kwong et al., 2017). To
538 explore the influence of price on consumer choice, the following hypothesis has been
formulated:
H1. Price is a relevant factor in choosing the online food delivery company.
Service quality. Service quality can be defined as consumers’ feeling about the overall superiority
of a product (Parasuraman et al., 1998). Service quality, perceived value and satisfaction are
considered to be fundamentals of commitment within service marketing literature (Shemwell
et al., 1998). Boston Consulting Group (2002) in a study found that around 40% of consumers who
experienced an online purchasing failure stopped shopping at the sites in question. Thus, the
perceived quality of the service provided by the online food ordering companies has a large
influence on customer satisfaction (Kedah et al., 2015). To encourage repeat purchase and build
customer loyalty, companies need to shift the focus of e-business from e-commerce, the
transactions to e-service, all encounters including pre and post-transaction (Zeithaml et al., 2002).
OFD retailers must ensure quality service as retailers’ service quality greatly influences
customers’ satisfaction and intention to shop online in the future (Yang and Jun, 2002; Cai and Jun,
2003). Das (2018) in his study finds that the factors that encourage consumers the most are
doorstep delivery and ease and convenience. Chandrasekhar et al. (2019) mentions that it is
important that the delivery persons ensure a proper flow of communication with the customers.
Delivery persons must behave well with the customers, and actions should be taken against those
who fail to do so. According to Ha (2013), restaurants that provide delivery service use
unprofessional deliverymen and impacts negatively on the overall performance. And therefore,
the current study tests the following hypotheses:
H2. Service quality is a relevant factor in choosing the online food delivery company.
H3. Attitude of delivery Person is a relevant factor in choosing the online food delivery
company.
Menu and variety of restaurants. The online food delivery service platforms bring together a
lot of restaurants, serving as intermediary connecting restaurants and consumers.
Consumers can order food online and get it delivered to their desired location in a short
time from the menus displayed by the restaurants on ordering platform (Lan et al., 2016).
Delivery from multiple restaurants, by combining orders, ranks high among other factors in
order of preferences in newly launched food delivery apps. Customers want the food apps to
provide them with food and restaurant of their choice (Vinaik et al., 2019). Better buying
decisions and levels of consumer satisfaction are linked to extensive product information
(Park and Kim, 2003). Website trust is greatly linked to website properties including the
width of product selections, the accuracy of online information and a firm’s reputation (Yoon,
2002). Menus with attractive pictures and a wide number of options in a single app offer
greater options, appeal more and reduce the search time for choosing the items to order
(Ballantine, 2005). And therefore, the current study tests the following hypotheses:
H4. Menu is a relevant factor in choosing the online food delivery company.
H5. Variety and number of restaurants is a relevant factor in choosing the online food
delivery company.
Delivery time. Delivery time is a crucial factor in satisfying and retaining customers within Online food
the e-commerce environment (Kedah et al., 2015). A review of 45 articles relating to the delivery
adoption of online shopping has revealed that time-saving functions and consumers’
time-consciousness are positively related to the use and adoption of online shopping
service in
(Chang et al., 2005). Sultan and Uddin (2011) found that many people perceived online Bangladesh
shopping to consume lesser time as it does not require them to waste time traveling out as
compared to conventional offline shopping. A delay in delivery beyond the expected
delivery time will hurt satisfaction regardless of the road and weather conditions. 539
(Dholakia and Zhao, 2010). Online shoppers in the USA recommend free or discounted
shipping, the flexibility of shipping, timely delivery and return service. Delivery has
become more and more important to nonstore, including online retail where there is a
short gap between order placement and delivery of ordered goods. (Dholakia and Zhao,
2010). Customers consider the product and delivery more important (Lin et al., 2011). Most
of the consumers of food app companies like Swiggy and Zomato face delivery-related
issues. Awareness of all routes to ensure timely delivery is essential (Chandrasekhar,
2019). Hence, to explore the impact of a delivery time, the following hypothesis has been
developed:
H6. Delivery time is a relevant factor in choosing the online food delivery company.
Condition of food delivered. Fresh, well-cooked and well-presented are important food
characteristics for the customers to be satisfied and reorder (Kedah et al., 2015). Customers
might attribute the deviation of quality to the delivery company. Any deviation from the
standard quality will impact the choice of online order companies for ordering the next time.
Lack of completeness of order can lead to dissatisfaction among customers. The major
impediment within food e-commerce is found in terms of delivery. Foods that rapidly perish
are problematic as they must be delivered to homes in proper condition (Morganti, 2014). The
satisfaction of online shoppers is influenced by accurate delivering goods to customers’ home
(Hsu, 2008). Quality of food is linked to satisfaction with fast-food restaurants (Kivela et al.,
1999; Law et al., 2004). Poor delivery service is another obstacle in online shopping that results
in damaged product arrival. Reliable delivery must be a priority and is crucial to the success
of every online shop.
H7. Condition of food Delivered is a relevant factor in choosing the online food delivery
company.
Delivery tracking service. Ecommerce researches have often emphasized timely delivery
and shipping in predicting customers’ satisfaction as compared to the price (Reibstein,
2002). The problems experienced by online shopping customers are mostly related to
delivery rather than the product itself (Eurobarometer, 2013). In Germany, consumers
emphasize negative experiences involving delivery delays (29%) and damaged goods
(20%) (Bitkom, 2013). Delivery services are one of the fundamental factors that determine
a consumer’s decision to shop (European Commission, 2013). E-retailers have thus
developed a wide range of services which offer flexible hours, reduced prices and fast
deliveries. Currently, e-shoppers and e-retailers are concerned with delivery problems
and costs. Customers’ post-purchase activities related to shipping and tracking play a
significant role (Cao et al., 2018) Providers who track and adjust their delivery times
according to traffic conditions might increase the number of customers as their clients
will be assured of timely delivery (Correaa et al., 2018). Thus, the following hypothesis has
been developed:
H8. Delivery tracking service is a relevant factor in choosing the online food delivery
company.
BFJ Methodology
123,2 The data were collected through a web-based survey (n 5 177, in Dhaka City). Descriptive
analysis, hypothesis testing and factor analysis were employed for data analysis.

Sample size
Determining the minimum sample size for exploratory factor analysis is not very
540 straightforward and involves greater subjectivity (Pearson and Mundform, 2010).
Differences in opinions regarding sample size is prevalent among researchers in factor
analysis (Gorsuch, 1983; Hair et al., 1995; Hogarty, 2005; Tabachnick, 2007; Williams et al.,
2010). Tabachnick and Fidell (2007) suggested having at least 300 cases required for factor
analysis. Gorsuch (1983), Hair et al. (2010) and Kline (1994) suggested sample sizes of at least
100 for factor analysis. Comrey and Lee (1992) considered sample size of 100 as poor, 200 as
fair and 300 as good. Field (2000) suggested sample sizes can be small if the loadings on
the factors are high. Many researchers have also recommended a minimum sample- to-
variable ratio method to decide the sample size. Disparity also exists in the recommended
sample-to-variable ratio among researchers and includes recommendations of 3:1, 6:1, 10:1
15:1, 20:1. The number of variables in the study is 8, and considering the 20:1 sample-to-
variable ratio, the sample size should not be less than 160. Based on these recommendations,
the sample size for factor analysis for this study was chosen to be 177 (see Table 1). The study
conducted surveys of 177 online food ordering consumers to develop the consumer profile of
the online food delivery service and to find out the factors in the online ordering business that
consumers think is important to them.

Sampling technique
Non-probabilistic convenience sampling method was employed. The respondents were
initially asked if they were users of the online food delivery services. Those who replied in the
affirmative were further invited to participate in the study. The participation was voluntary.
The participants were informed that participation in this research would be completely
anonymous and that the results would be used for academic purpose.
Nonusers of online food delivery services were excluded from the study at the initial
screening process. Measure items for the research were selected from prior studies and
discussion with industry experts. The study tried to use the most commonly used items
for each factor. The questionnaire was composed of 28 closed-ended questions. The
opening questions were asked to develop the consumer demographic, behavior in terms of

Measure Items Frequency %

Gender Male 109 62%

Female 68 38%
Age <18 7 4%
18–24 63 36%
25–34 99 56%
35–44 6 3%
45þ 2 1%
Occupation Business 7 4%
Table 1. Private service 89 50%
Descriptive statistics of Self employed 6 3%
respondents profile Student 75 42%
eating outside and online ordering occasions and the major reasons for ordering food Online food
online. delivery
service in
Survey instrument Bangladesh
Primary research is being undertaken with the assistance of a structured questionnaire as a
research tool. The questionnaire mostly included closed-ended questions and ratings on
5-point Likert scale. 541

Analysis tool
The consumer survey results were analyzed using MS–Excel and SPSS to do various
analyses during the study. The statistical software tool SPSS 15 was employed for
performing all analyses in this study. First, descriptive analyses were conducted for
consumers of online food delivery. Second, hypothesis testing using one sample T-test was
done to further analyze the responses toward factors of online food delivery. The statistical
significance was determined with a p-value < 0.05. Finally, factor analysis was done using
principal component analysis as the data reduction technique to identify nonoverlapping
factors.

Data suitability for exploratory factor analysis (EFA)

To analyze if factor analysis is appropriate with the sampling size, the Kaiser–Meyer–Olkin
(KMO) test and Bartlett’s test of sphericity (BTS) are carried out (Maat et al., 2011). Hair et al.
(2010) and Tabachnick and Fidell (2007) recommended if the KMO is greater than 0.6 and the
BTS significance α < 0.05, then factor analysis can be done with the sample data. The KMO
value for the study is 0.762 and the significance level for BTS is 0.000 confirming the
suitability of the sample data for factor analysis.

Statistical evidence of validity with exploratory factor analysis (EFA)

The concept of online food ordering is very new and growing, and hence the exploratory
factor analysis (EFA) technique was used. EFA has been performed to increase the
reliability of the variables by identifying overlapping or inappropriate variables that can
then be removed (Wetzel, 2011). For this research, the hypotheses were initially developed
based on the review of relevant literature and discussing with industry experts. All eight
variables were found to be relevant by running the one-sample t-test. The factors were
extracted using multiple criteria. The sample adequacy was verified by using Kaiser–
Meyer–Olkin (KMO) test and Bartlett’s test of sphericity was used to determine if the
dataset is suitable for a data reduction technique. The factor analysis process began by
obtaining eigenvalues for each factor in the data. Scree test plot showed eigenvalues
against the number of factors to determine the point where the flattening of the curve
begins (Netemeyer et al., 2003). Factors with eigenvalue greater than one were considered
(Kaiser, 1960). The cumulative variance percentage was another criterion to determine
the factor number. Although there is no fixed threshold for the cumulative percentage of
variance, (Williams et al., 2010), Hair et al. (1995) suggested that the cumulative
percentage of variance could be as low as 50%–60%. The two factors found in this study
explained 51% of the total variances. Besides, the communality for all items was above
0.3 (Tabachnick and Fidell, 2007). The determinant of the correlation coefficient resulted
in a value of 0.198, which is a nonzero, thus indicating the absence of multi-collinearity
among the variables and at least one factor can be extracted from the dataset (Beavers
et al., 2013).
BFJ Scope
123,2 The study includes consumers of the online food delivery business in Dhaka. The industry is
very new and rapidly growing. The study is limited to Dhaka city and focuses on only the
services that bring food from the restaurants to the doors of the customers. The study focuses
mainly on the businesses not having their food preparation process or product but provides
delivery services of food from restaurants to homes and offices according to customers’
choice.
542
Discussion of results and analysis
Factor analysis
The principal component analysis method has been used as the extraction method in the
factor analysis. Eigenvalues greater than 1 were considered in extracting the factors. Two
factors were extracted which explained 51% of the variances.
Kaiser–Meyer–Olkin (KMO) test was done to see how much the data are suited for factor
analysis. As for a thumb rule, KMO values between 0.8 and 1 indicate that the sampling is
adequate. For the above analysis, the KMO value was 0.762 which is pretty close to 0.8, and
hence it can be concluded that the sampling was adequate. Small values (less than 0.05) of the
significance level in Bartlett’s test of sphericity indicate that factor analysis is useful with
the data.
The first component derived from the factor analysis includes variables variety and
number of restaurants, menu, delivery tracking service and attitude of the delivery
person. These altogether can be named as indirect factors since these are factors which
play a part after the direct factors, the second component, have been met successfully. The
second component, direct factors, include delivery time, service quality, price and
condition of food delivered as these are directly linked to the service of online delivery.
Any deviation from the normal might play an important role in consumer decision-
making (see Tables 2–4).

Hypotheses testing using one sample T–test

Results show that the p-value for each of these variables is close to 0. Since the p-values are
less than 5%, we reject the null hypotheses at 0.05 significance level. Therefore, we can
conclude that price, service quality, the attitude of the delivery person, menu, variety and
number of restaurants, delivery time and condition of food are relevant factors in choosing
the online food delivery company. The mean differences in all variables fall within the 95%
confidence interval limit (see Tables 5 and 6).

Items Factor 1 Factor 2

Variety and number of restaurants 0.828

Menu 0.803
Delivery tracking service 0.657
Attitude of delivery person 0.594
Delivery time 0.754
Service quality 0.743
Condition of food delivered 0.591
Price 0.591
Table 2. Eigenvalues 2.946 1.139
Exploratory factor Percentage of variance 36.83 14.24
analysis of items Percentage of variance explained 51.07
 Attitude
Online food
of Variety and Condition Delivery delivery
Service delivery number of Delivery of food tracking service in
Price quality person Menu restaurants time delivered service
Bangladesh
Price 1 0.335 0.312 0.241 0.172 0.25 0.103 0.13
Service 0.335 1 0.334 0.322 0.297 0.398 0.307 0.256
quality 543
Attitude of 0.312 0.334 1 0.357 0.292 0.2 0.284 0.38
delivery
Person
Factor menu 0.241 0.322 0.357 1 0.602 0.189 0.295 0.293
Factor 0.172 0.297 0.292 0.602 1 0.155 0.158 0.353
variety and
number of
restaurants
Delivery 0.25 0.398 0.2 0.189 0.155 1 0.296 0.162
time
Condition of 0.103 0.307 0.284 0.295 0.158 0.296 1 0.162
food
delivered
Delivery 0.13 0.256 0.38 0.293 0.353 0.162 0.162 1
tracking
service Table 3.
Note(s): Determinant 5 0.198 Correlation matrix

Kaiser-Meyer-Olkin measure of sampling adequacy 0.762

Bartlett’s test of sphericity Approximae chi-square 279.754 Table 4.
Df 28 KMO and
Sig 0.000 Bartlett’s test

Test value 5 3
t df Sig. (2-tailed)

Price 17.119 176 0.00

Service quality 35.765 176 0.00
Attitude of delivery person 3.966 176 0.00
Menu 18.593 176 0.00
Variety and number of restaurants 15.714 176 0.00
Delivery time 34.829 176 0.00
Condition of food delivered 31.478 176 0.00 Table 5.
Delivery tracking service 11.446 176 0.00 P-values of factors

Theoretical and social implications

The study aimed at identifying factors critical to the success of the online food delivery
business. Understanding the consumer landscape better would help realize the full potential
of the e-commerce platform as it has the ability to impact the economy, businesses and the
quality of life of people. The internet and e-commerce have impacted the lives of people in
BFJ many spheres, by providing access to education and information, promoting
123,2 entrepreneurship, creating new marketplaces, reducing poverty and income inequality.
The internet has been successful in helping firms to reduce cost, enhance efficiency
(Jayawardhena and Foley, 2000), influence repeat customer purchases (Kaur and Quareshi,
2015; Reibstein, 2002), build customer loyalty (Anderson and Srinivasan, 2003; Kassim and
Abdullah, 2010; Ganguli and Roy, 2011), gain better market share and improve profitability
(Reichheld and Schefter, 2000) and can be strategic tools for business competitiveness (Yeo
544 et al., 2017).
E-commerce and online food ordering can also impact the societal well-being of the
citizens. E-commerce is less stressful and allows customers to better manage their time
thus significantly improving the quality of life. Online shopping also provides an
emotional experience. Customers experience a positive feeling when online purchase is
delivered (E-commerce and the quality of life, 2012). For the older population, because of
the rise of chronic disease and other age-related health disorders, homecare telemedicine
services are a promising option for increasing life quality, decreasing healthcare costs and
offering more independent living (Onor et al., 2008). Although e-commerce started more as
a convenience thing, it might give the seniors citizens a sense of independence by having to
rely less on others for their medicine or other grocery needs (Henke, 1999). Online shopping
is found to be more traffic-friendly than offline shopping (Peng, 2019). Since e-commerce
involves delivering goods directly from warehouses to the consumers, the traffic is greatly
reduced. This improves people’s health by reducing their stress and providing a less
polluted breathing atmosphere. Digital finance has enabled working parents to pay for
tuition fees and other home utility bills without having to go outside the workplace or
home. Online shops cater to the needs of busy professionals by offering online grocery
shopping and delivery services for a small fee. Family members can keep their bonding
strong by using e-commerce to order things for the other members even without being
physically present.
The population of the world’s middle-income class is on the rise. The Asia Pacific region
is expected to account for over two-thirds of the world’s middle class and almost three-
quarter of total consumption. The annual consumption in emerging market economies is
expected to grow 2.5 times from the period 2010 to 2025 (UNDP, 2013). The role of online
marketplace and e-commerce can never be underestimated in such context. Thus,
understanding the factors of online marketplace merit attention to better serve the
customers’ needs that will allow e-commerce to ensure that its benefits are realized by
society as a whole.

Hypothesis
Hypothesis supported

H1 Price is a relevant factor in choosing the online food delivery company Yes
H2 Service quality is a relevant factor in choosing the online food delivery company Yes
H3 Attitude of delivery person is a relevant factor in choosing the online food Yes
delivery company
H4 Menu is a relevant factor in choosing the online food delivery Yes
H5 Variety and number of restaurants is a relevant factor in choosing the online food Yes
delivery company
H6 Delivery Time is a relevant factor in choosing the online food delivery company Yes
H7 Condition of food delivered is a relevant factor in choosing the online food Yes
Table 6. delivery company
Summary of H8 Delivery tracking Service is a relevant factor in choosing the online food delivery Yes
hypotheses company
Conclusion Online food
The study identified the factors important to consumers in the online food delivery service delivery
business. Findings suggest that factors that customers are concerned about can be grouped
into two: direct factors and indirect factors. Direct factors include delivery time, service
service in
quality, price and condition of food delivered as these are directly linked to the core service Bangladesh
delivery process. The indirect factors include the variables variety and number of
restaurants, menu, delivery tracking service and attitude of the delivery person which can
be considered to be the peripheral factors that come together to form the complete package 545
benefits. Among the variables that affect consumer choice as found in the study is the price
(H1). The finding supports Jin and Gu Suh (2005) where consumers are considered to be price
and value-conscious. However, this finding is not consistent with Monroe and Lee (1999)
which ranks food in the category of low- involvement products, indicating that consumers
make food-price choices rationally at the given time without considering previous
transactions. The relation also does not align with Daud and Yoon (2019) finding of price
not being a factor in OFD decision-making. Service quality and attitude of the delivery
person, hypotheses H2 and H3, are found to affect consumer choice, which is in line with the
previous researches. (Gronroos, 1990; Hocutt, 1998; Shemwell et al., 1998; Kedah et al., 2015;
Das, 2018; Chandrasekhar et al., 2019; and Ha, 2013). The study confirms that online food
ordering consumers love variety and options. Menu and wide variety and number of
restaurants (H4 and H5) affect consumer choices as predicted by Yoon (2002), Park and Kim
(2003), Ballantine (2005) and Vinaik (2019). Delivery services including delivery time,
condition of food delivered and delivery tracking services are important decision-making
criteria for online food ordering consumers. These findings are also consistent with previous
researches (Reibstein, 2002; Chang et al., 2005; Hsu, 2008; Lin et al., 2011; Sultan and Uddin,
2011; Kedah et al., 2015; Cao et al., 2018; Correaa et al., 2018). In line with Handoko (2016), the
study recommends OFD retailers to enhance quality, variety and consistently offer reliable
and timely delivery service to encourage repeat purchase.
For further research, it is worthwhile focusing on the differences in individual behaviors of
consumers. Individuals vary in their online behavior, partly due to individual differences,
such as age, income, education, ethnicity and sex; a positive attitude toward technology, in the
belief that technology helps make their lives easier and better and ability and online
experience, which play an important role in the exchange process (Strauss and Frost, 2012).
Although the study surveyed 177 online food ordering customers, the respondents were
either from the age group 18–24, the student group or the 24–35 group, the office goers.
Future researches may include model testing for marginal benefits for more concrete
conclusion. The study proposes more vast research with a wide range of respondents in terms
of demographic dimensions like age, occupation, type of workplace. Further study can be
conducted to analyze differences in consumer choice across different demographic groups.
Qualitative research can be done with regular customers of online food ordering and industry
experts to find factors critical to them which will lead to the growth of the industry. Further
research can be carried out with more factors like ease of use of app or website, payment
system and security.

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Corresponding author
Ahmed Tausif Saad can be contacted at: tausif.saad@gmail.com

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