A

Final Project Report

On

“A STUDY OF CONSUMER PREFERNCES TOWARDS

ONLINE FOOD DELIVERY CHAINS IN
CHANDIGARH”
Submitted to

I.K.G. PUNJAB TECHNICAL UNIVERSITY

KAPURTHALA

In partial fulfillment of the requirements

for the award of degree of
Master of Business Administration (MBA)

Submitted by: Project Guide:

Name: Daisy Dutta Ms. Ruby Sharma

University roll no: 2017388 (Assistant Professor)

Session (2020-2022)
DEPARTMENT OF MANAGEMENT

CBSA

Landran, Mohali
 STUDENT DECLARATION

I, “Daisy Dutta”, hereby declared that I have completed a research project titled
“A study of Consumer preferences towards online food delivery chains in
Chandigarh” under the guidance of Ms. Ruby Sharma.
Further I hereby confirm that the work presented herein is genuine and original
and has not been published elsewhere.

Daisy Dutta

i
 FACULTY DECLARATION

I hereby declare that the student miss Daisy Dutta of MBA (IV) has undergoing her
project under my periodic guidance on “A study of Consumer preferences towards online
food delivery chains in Chandigarh”

Further I hereby declare that the student was periodically in touch with me during her
research work and the work done by the student is genuine and original.

(Signature of Supervisor)

ii
 TABLE OF CONTENTS
Student Declaration i

Faculty Declaration ii

CHAPTER NO. CHAPTER TITLE PAGE NO.

1. Introduction 1-9

2. Review of literature 10-15

3. Need, scope& objectives 16-18

of the study
4. Research methodology 19-21

5. Data analysis & 22-39

interpretation
6. Findings of the study 40-42

7. Conclusion and 43-45

recommendations
References 46-47

Annexure
A. Questionnaire a-d

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 LIST OF TABLES
TABLE NO. TABLE TITLE PAGE NO.

5.1 Demographic profile of 23-24

respondents
5.2 Ordering food online 26

5.3 Preferences towards 27

online food delivery
chains
5.4 Occasions to order food 28
through online portals
5.5 Frequency of ordering 29
food online
5.6 Days on which 30-31
respondents mostly order
food online
5.7 Meals typically ordered 31-32
online by respondents
through these portals
5.8 Factor affecting online 34
food ordering
5.9 Influence of promotional 35
scheme on respondents
5.10 Money spent by 36
respondents on online
food ordering
5.11 Challenges faced by 37-38
respondents on online
food ordering portals
5.12 Mode of payment 39
preferred by respondents
on these apps

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 LIST OF
FIGURES

FIGURE NO. FIGURE TITLE PAGE NO.

5.1 Awareness about food 25

delivery apps
5.2 Ordering food online 26

5.3 Preferences towards 27

online food delivery
chains
5.4 Occasions to order food 28
through online portals
5.5 Frequency of ordering 29
food online
5.6 Days on which 30-31
respondents mostly order
food online
5.7 Meals typically ordered 31-32
online by respondents
through these portals
5.8 Factor affecting online 34
food ordering
5.9 Influence of promotional 35
scheme on respondents
5.10 Money spent by 36
respondents on online
food ordering
5.11 Challenges faced by 37-38
respondents on online
food ordering portals
5.12 Mode of payment 39
preferred by respondents
on these apps

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 CHAPTER 1 -
INTRODUCTION

1
1.1 INTRODUCTION TO CONCEPT

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, e-Business, e-CRM, e-
Supply Chain, e-Marketplace, e-Payment, e-Entertainment, e-Ticketing,
eLearning, to e-Citizen and e-Government. 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. 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. 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 2 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

2
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 behavior 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 foods online.

1.2 INTRODUCTION TO CONSUMER PREFERENCES

TOWARDS ONLINE FOOD DELIVERY PORTALS
Consumer perception implies ones behavior towards any product or service
marketed, it is that marketing concept which encompasses a consumer’s

3
acquaintance about offerings of any product or service of a particular company.
Consumer perception plays a vital role in success of any marketed product or
services as their attitude towards the particular product or service will decide the
retainment of the product or service in the market. The factors that decide
customer perception are Consistency of performance, Emotional connect,
Marketing communications, Holistic marketing. It is very important for any
marketing strategy to make sure whether consumer had perceived with the same
intention with what the company has thought of as its been observed that there
always exist a difference between what the company tends to deliver to the
consumer and the attitude with what consumer perceive it. In this era of
technology its been very obvious to get things within a click in the screen of our
smart gadgets. Everyone is in a race to cope up with the fifth-generation
technology. India is rich in food culture which is being now marketed with the
help of various food applications like Zomato, Swiggy, Ubereats etc. that provide
services to the users to explore the tastes of various restaurants sitting at residence
or even at workplace. Consumers even shows keen interest with all the inventions
to get into the trend and explore with new experiences with utmost convenience
and transparency and expecting the same as of physically visiting any outlets.
Without any doubt food is a necessity and getting food with the help of such
applications has triggered e-commerce to a great extent, specially the youths are
seen to be more passionated in such a way of food ordering and getting delivered
at their doorsteps within a very short time. Online food delivery services provide
aids in terms of convenience, saving time and effort for the customers which are
enough reasons to get used to these services. An increase in the food delivery
services available to the customers and services offered have resulted in an
increase in terms of customer expectations from these service services. The
services are convenient enough to search for restaurants with desired cuisines.
Entire menu remains displayed on the app service and the customer can choose
from the menu with a click of a button. These app services differ in terms of

4
features offered and customer values systems. Such food applications are
generated as like, the interested users have to download the application of their
choice and create a profile with very minor information asked for convenience of
the delivery. Then they would be able to see the registered list of the restaurants
of that particular application and they can make a choice of their restaurants
where the whole menu along with the prices of the dishes are being displayed.
The mode of payment may be in cash on delivery or through net banking or
through a debit or a credit card.
A good number of food delivery applications can be seen entering the e-market
which in turn giving a pace for more new restaurants and new dishes creating an
opportunity for income that in a way helps in socio economic development of an
area. The most popular food delivery applications are Food Panda, Zomato,
Swiggy, TastyKhana, Just eat, Uber Eats, Fresh Menu, and Scootsy.

Not lacking with backsteps Chandigarh has also made a good place in the pace of
providing services with food delivery applications like Zomato and swiggy.
Though many food outlets used to have their own sites with the facility of home
delivery like dominos but app-based delivery has established a sound place
among the youths.

1.3 INTRODUCTION TO ONLINE FOOD DELIVERY

PLATFORMS IN CHANDIGARH

ZOMATO

Zomato is an Indian multinational restaurant aggregator food delivery company

founded by Pankaj Chaddah and Deepinder Goyal in 2008. Zomato provides
information, menus, and user reviews of restaurants as well as food delivery
options from partner restaurants in select cities. As of 2019, the service is
available in 24 countries and in more than 10,000 cities.

5
Zomato was founded as Foodiebay in 2008, and was renamed Zomato on 18
January 2010 as Zomato Media Pvt. Ltd.In 2011, Zomato expanded across India
to Delhi NCR, Mumbai, Bangalore, Chennai, Pune and Kolkata.In 2012, the
company expanded operations internationally in several countries, including
the United Arab Emirates, Sri Lanka, Qatar, the United
Kingdom, the Philippines, and South Africa. In 2013, Zomato was launched
in New Zealand,Turkey, Brazil and Indonesia, with its website and apps available
in Turkish, Portuguese, Indonesian and English languages.In April 2014, Zomato
launched its services in Portugal, which was followed by launches
in Canada, Lebanon and Ireland in 2015.

In 2019, Zomato acquired Seattle-based food portal Urbanspoon, which led to the
firm's entry into the United States and Australia This U.S.-expansion brought
Zomato into direct competition with similar models such as Yelp and Foursquare.

With the introduction of .xxx domains in 2011, Zomato also launched

zomato.xxx, a site dedicated to food porn. In May 2012, it launched a print
version of the website named "Citibank Zomato Restaurant Guide," in
collaboration with Citibank, but it has since been discontinued. Zomato had also
made a name for itself for its prowess in digital marketing.

In February 2017, Zomato announced plans to launch Zomato Infrastructure

services, a service to help restaurants expand their presence without incurring any
fixed costs. In September 2017, Zomato claimed the company had "turned
profitable" in all 24 countries where it operated and introduced a "zero-
commission model" for partner restaurants.Towards the end of 2017, Zomato
stopped accepting updates from its active users by not utilizing moderators to
verify and make updates. Users of the app reported issues with new features to
pay for orders.

Zomato narrowed down its losses by 34% to ₹389 crore for the financial year
2016–17, from ₹590.1 crore in the previous year 2015–16.

6
In September 2019, Zomato fired almost 10% of its workforce (540 people)
tending to back-end activities like customer service, merchant and delivery
partner support functions. In April 2020, due to rising demand for online groceries
amid the COVID-19 pandemic, Zomato launched its grocery delivery services
named Zomato Market in 80+ cities across India.

In April 2020, Zomato introduced Contactless Dining to get ready for a post-
lockdown world. Through this initiative, the company aims to minimize customer
contact with anything that someone else might have touched, by eliminating the
use of high-touch elements such as the menu, ordering, and bill payments through
bar codes or the app while the staff will wear masks.

In May 2020, Zomato further laid off 520 employees due to the COVID-19
pandemic. Despite the fact that demand for services delivering food from
restaurants and takeaways surged, Zomato's nominal reasoning for needing cuts is
that coronavirus will be followed by an economic downturn, which could hit
orders.

In August 2020, Zomato drew praise for introducing a period leave policy,
allowing female employees to take up to 10 days time off per year if they are
unable to work due to menstrual cycle health effects. The policy applies to
transgender employees as well.

SWIGGY

Swiggy is India's largest online food ordering and delivery platform, founded in
2014. Swiggy is based in Bangalore, India, and as of March 2019, was operating
in 100 Indian cities. In early 2019, Swiggy expanded into general product
deliveries under the name Swiggy Stores.

In September 2019, Swiggy launched instant pickup and drop service Swiggy Go.
The service is used for a diverse array of items, including laundry and document

7
or parcel deliveries to business clients and retail customers. Swiggy is operated by
Bundl Technologies Private Limited.

In 2013, the two founders, Nandan Reddy and Sriharsha Majety, designed an e-
commerce website called Bundl to facilitate courier service and shipping within
India.Bundl was halted, and was rebranded to enter the food delivery market. At
the time, the food delivery sector was in turmoil as several notable startups, such
as Foodpanda (later acquired by Ola Cabs), TinyOwl (later acquired by Zomato)
and Ola Cafe (later closed) were struggling. Majety and Reddy approached Rahul
Jaimini, formerly with Myntra, and founded Swiggy and parent holding company
Bundl Technologies in 2014.The company built a dedicated delivery network and
grew rapidly, primarily driven by the focus on logistics and locking in key
resources. Swiggy’s timeline from 2014 till 2020 in terms of funding and
acquisitions have been phenomenal. The company was introduced back in 2014
and its performance started to lure external investors in 2015. The first funding
raised by Swiggy was valued at $2 million from SAIF Partners and Accel Partners
along with an additional raise received from Northwest Venture Partners.Moving
on to 2016, the food ordering and delivery services company managed to raise
funds with a total value of $15 million from existing investors and some new
ones. Some of the new investors included big names like Harmony Partners and
Bessemer Venture Partners.Next in 2017, Swiggy was nowhere close to looking
back; the next investment was valued $80 million which was raised in a funding
round led by Naspers Limited which is a multi-national consumer Internet
company from South Africa.In 2018, a $100 million funding was received by
Swiggy from Chinese Shopping Platform- Meituan-Dianping and existing
investor Naspers and small investments that followed that year led the company’s
valuation to over $1 Billion, making Swiggy a member of the prestigious Unicorn
Club. Swiggy then went on to a company shopping spree and acquired Bengaluru-
based Artificial Intelligence start-up, Kint.i.o in February 2019.

8
In May 2020, Swiggy laid off 1100 employees during the COVID-19 pandemic.

In August 2020, the company launched their groceries delivery platform called
InstaMart.In 2021 the company announced that it would cover the vaccination
cost for its delivery partners. In March Swiggy set up Health Hub
across Chennai, Tamil Nadu.

Swiggy has partnered with Burger King to provide delivery services. It has also
partnered with Google Local Guide to facilitate customer reviews,and
with Sodexo to enable customers for paying through meal cards. Swiggy has
partnered with Indifi Technologies to facilitate a financing program for partner
restaurants. 'Swiggy Money' is a digital wallet launched by Swiggy in partnership
with ICICI Bank. It will allow the customers to store money to pay for the orders.

OTHERS

There are various other restaurants in Chandigarh having their own delivery
services. They also provide many offers and discounts to attract the consumers to
download their applications and order from them. The first restaurants to adopt
online food ordering services were corporate franchises such as Domino’s and
Papa John’s. 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. 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. There are many
other famous restaurants having their websites for the delivery like KFC, burger
king, Food bazaar, Sagar Ratna, shaolin, etc.

9
CHAPTER 2-
REVIEW OF
LITERATURE

10
2.1 LITERATURE REVIEW

Sehrat Murat Algoz and Haluk Hekimoglu(2012) along with the growth of E-
commerce in the worldwide ,the food industry is not lagging behind in showing a
tremendous growth. Technology Acceptance has been used in the particular
research paper to study the consumer acceptance of ordering food online. This
paper says that the consumers attitude depends accordingly to the ease and
convenient of ordering food online and also the reliability upon the e-retailers and
various external influencers.

Jyotishman Das (2018), the doorstep delivery is the most highly ranked factor of
influencing the consumers to use the food ordering applications. The consumers
are also often influenced by discounts and cash back they enjoy . On comparing
the factors the most preferred service provider came out to be Zomato followed
by Swiggy. But some negative influencer like bad past experience and negative
experience of friends and family also in some cases prevents the consumers on
using the process.

Mr. Mathews Joao Chorneukar , consumers recommended using food delivery

applications to be secured and were satisfied much with the services. The paper
also reveals that even the consumers working in companies around the age limit
of 31 -35 years used to order more food and the mode of payment that was
preferred the most was cash on delivery.

Dr. Mitali Gupta (2019) declares in his research the impact of food delivering
Apps on restaurants. The study outlines on the benefits as well as positive and
negative effects of electronic food delivery and various online food delivering
applications. The researcher has also focused on strategies of food delivering
applications with special reference to Zomato and Swiggy.

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Dr. Neha Parashar and Ms. Sakina Ghadiyali (2017) in their study on
Consumer’s attitude and perception towards Digital Food App services, has found
the significant relationship between factors considered important while selecting a
food delivery app. They have aimed in finding the most preferred option of
payment by the respondents and have researched about the most popular app in
the digital food delivery applications. Sometimes customers might feel unsecured
while sharing their personal information such as their phone numbers, address.
Also, they have analyzed the relationship between food delivery apps andthe
facilities provided by the same.

According to Megha Gera(2018),in their study on “Operations research in food

delivery” they have aimed to investigate how operations research can be used in
the food industry. And have analyzed about how the research can help restaurants
as well as the food delivery companies at the same time. They also have
concluded stating that operations research can be used by the business to
determine how they can decide between different food delivery companies to
minimize the cost and earn greater profit margins.

Suryadev Singh Rathore, (2018),revealed that online food ordering companies

must pay attention to the quality of information, Mobile Application and website
design, security and privacy for payment systems towards their customers to
provide them full satisfaction experience. It also reveals that product price, ease of
payments, special offers and discounts play important role in the system.

Zulkarnainkedah(2015), the main purpose of the research is to find the ‘key

success factors’ of online food ordering services; if it depends upon the website
quality(design) or service quality or website trust which leads to loyalty in an
online ordering environment service quality and loyalty reflect that efficient

12
delivery, reliable customer service and food characteristics (e.g. freshness,
presentation, healthy) are also essentials for operating successful food ordering
services.

Musei Clinton (2019) studied about “The design & implementation of online
food ordering system” In this study, Empirical approach has been used. It says
that the design phase was concerned primarily with the specification of the system
elements in manner that best met the organization business needs. Effective
implementation of this software product would eliminate many problems
discovered during system investigation.

Abishek singh, Adithya (2018) studied about “The online food ordering system”
In this study Descriptive method was used a 100 samples have been taken. They
found if people know to operate android smart phone wide variety of people can
use the application. This system will solve important problems of people
implementation of online food ordering system is done. Receiving orders &
modifying data is possible through the application & it’s also help admin in
controlling food order system.

Ashish Rathod (2018) examined about, “Food finder-mobile food ordering

application” with a Descriptive methodology 180 sample size has to be taken for
her research, the proposed online restaurants system is time saving & errors free
as compared to the traditional system. The proposed system would attract
customers & also adds the offers on food items so increase the restaurants market
online also. The restaurants food ordering application can handle the billing
hence, it is the modem way to grow up the business using E-commerce. The idea
of the advanced e-restaurants can also be extended for future using GPRS
accessible module.

13
Ramesh Kumar Bagla, Jasmine Khan (2017) examined the “The consumer’s
expectations & satisfaction with online food ordering” The author has collected
his data using Descriptive method 200 samples size taken, They say that lack time
to prepare food, availability of variety, rewards & cashbacks. There is a scope for
improving the users satisfaction levels by understanding their expectations more
precisely & offering more attractive options while ordering food online.

Harshleen Kaur Sethi (2017), in his article about “Product and Brand Strategy
of Zomato” stated that With the advent of e-commerce boom in India, the in
almost every vertical from online shopping to ticket bookings, healthcare, etc.
One of such verticals is e-food industry, which has very efficiently utilized the e-
commerce platform in the online food review and food ordering business. This is
a vertical, which has brought almost every restaurant in India under a single roof
in the hands of the consumer. Now, finding a great place to eat, ordering food,
reserving tables, and giving positive or negative feedback for a restaurant has
become very easy and accessible for the consumer. This vertical has shown
tremendous growth over the last 5 years signifying the untapped potential. The
pioneer and leader of this segment in India has been Zomato. Zomato is a brand,
which every consumer would associate to when he thinks of an e-food platform.

Hong Lan, et al, (2016), “Improvement of Online Food Delivery Service Based
on Consumers‟ Negative Comments” stated that online food delivery market is
immature yet; there are some obvious problems that can be seen from consumers‟
negative comments. In order to solve these problems, we can neither rely merely
on the selfdiscipline of online food delivery restaurants nor the supervision and
management of online food delivery platforms. Only by taking laws as the
criterion, with the joined efforts of the online food delivery platforms and
restaurants, the government departments concerned, consumers and all parties in

14
the society, can these problems be solved and a good online take away
environment can be created.

Varsha Chavan, et al, (2015), in their study about “Implementing Customizable

Online Food Ordering System Using Web Based Application” the use of smart
device based interface for customers to view, order and navigate has helped the
restaurants in managing orders from customers immediately. The capability of
wireless communication and smart phone technology in fulfilling and improving
business management and service delivery. Their analysis states that this system
is convenient, effective and easy to use, which is expected to improve the overall
restaurant business in coming times.

15
 CHAPTER 3-
NEED, SCOPE AND
OBJECTIVES OF
STUDY

16
3.1 NEED OF THE STUDY

Consumers have specific need and expectations with respect to their food.
Companies use various marketing stunts to attract the customers towards them.
The study is conducted to know the preferences of customers regarding online
food delivery chains. From this study, we can have a better and clear
understanding of the online food delivery portals. We will know about the
perception of the consumers whether they prefer Swiggy, Zomato or any other
app and will get to know the influencing factors which make the customers prefer
a particular app. Also we will get to know the satisfaction level of the customers
in terms of price, quality etc. Therefore the findings will help the service
providers to improve and to know about customer’s preference and to fill up the
gaps.

3.2 SCOPE OF THE STUDY

Scope of the study is limited towards those customers who have experienced such
online food delivery services in Chandigarh City. The study is basically conducted
to know how consumers perceive the online food delivery services. The
perception of consumers may vary under different circumstances. From this study,
we can have a better understanding of the Online Food Delivery Service Market.
We will know about the consumer perception regarding the services they provide
in Chandigarh area and will get to know the variables affecting their perception.
Therefore, these findings may help the service providers to work upon on these
variables to fill up the gaps in the mindset of consumers. The survey was
conducted in different areas of Chandigarh and around 100 responses were
collected

17
3.3 OBJECTIVES OF THE STUDY

 To Identify the factors influencing the people To order food online.

 To examine the consumer perception towards online food delivery chains in

Chandigarh city.

18
 CHAPTER 4-
RESEARCH
METHODOLOGY

19
Research methodology provides an overview of techniques and methods used to
collect, select and analyze the information about a particular topic. The
methodology chapter justify the design choices, by showing that the chosen
methods and techniques are the best fit for the research aims and objectives. It
allows the readers to evaluate the accuracy and validity of the data. It provides a
clear idea about the type of research conducted, what are the tools used in
research, data is qualitative or quantitative, sources of data, etc.

4.1 TYPE OF RESEARCH AIM – The research on the topic “A study on

consumer preferences towards online food delivery chains” is a basic research
aim to increase the knowledge and understanding about the consumer perception
towards online food delivery chains and factors influencing them. This research
will provide you the proper analysis of this.This research also provides the pillar
to other new topics.

4.2 TYPE OF RESEARCH DATA – the data used in this research is collected
from both primary and secondary sources. The data is qualitative and quantitative
in nature as the research demands both.

4.3 COLLECTION OF DATA – the primary sources will be used in data

collection are surveys, mails, telephonic mediums and questionnaires and the
secondary sources of data used are magazines, publications, data available on
the internet, historical data, company reports, etc.

4.4 DATA ANALYSIS METHODS – As there are both qualitative and

quantitative type of data is available so different techniques are used for both
types of data. In quantitative data, various statistical tools, charts and graphs are
used for proper analysis. In qualitative data, content analysis, narrative analysis on
content

20
collected from various sources is done .proper data validation is done to make the
data more accurate and reliable.

4.5 SAMPLE SELECTION – Target population will be people from age group 18 to
26. The size of sample is 118 respondents.

4.6 RATIONALE – In this research on the topic “A study on consumer

preferences towards online food delivery chains” the main aim is to know about
the perception of the consumers whether they prefer Swiggy, Zomato or any other
app and will get to know the influencing factors which make the customers prefer
a particular app. To provide the insight of the topic in-depth various data
collection and identification methods are used step by step. As the research
demands both quantitative and qualitative data so both types of data are used
according to the need. All the necessary facts are collected and well plotted to
make the data useful. Primary research is made to give the first-hand data and
secondary data is also properly assessed and managed to create valuable results.

21
 CHAPTER 5-
DATA ANALYSIS AND
INTERPRETATION

22
Analysis of data means studying the original material to discover the inherent
facts. The data are studied form as many angles as possible to explore the research
data has been collected and data analysis has been made the researcher can
proceed of interpretation is essentially one, stating what the result show. The
research data becomes meaningful only being analyzed and interpreted. Results
and findings are also called as Analysis and Interpretation. This part of the report
contains an allotment of tables, graph s, graphs, and narrative of the results of the
survey. The analysis identifies the various factors that play a major role in
determining why the respondents go for a particular product on brand. The
analysis has also been made with reference to factors affecting buying decisions
the multinational factor to go far a particular brand. some of the tables, Graphs are
used to interpret the findings in a better manner. The occupation, income of the
respondents is also recorded in order to know the correlation between these
features.

TABLE NO. 5.1 DEMOGRAPHIC PROFILE OF RESPONDENTS

PERCENTAGE
NO.OF FROM TOTAL TOTAL NO.
CHARACTERISTIC RESPONDENT RESPONDENT OF
S S S RESPONDENT
S
GENDER
Male 72 61% 118
Female 46 39% 118
AGE
15-18 4 3.4% 118
18-24 59 50% 118
24-30 39 33.1% 118
30-40 12 10.2% 118

23
40-50 4 3.4% 118
EDUCATION

10TH 10 8.5% 118

12TH 27 22.9% 118

Graduation 46 39% 118
Post-graduation 35 29.7% 118
OCCUPATION
Student 51 43.2% 118
Employee 43 36.4% 118
Professional 10 8.5% 118
Housewife 1 0.8% 118
Self- employed 13 11% 118

INTERPRETATION

The above table represents that 61% of the respondents are male and 39% were
female. Majority of the respondents found in the survey are male. 50% of the
respondents age group is between 18 to 24 years, 33.1% of the respondents age
group is between 24-30 years and the 10.2% of the respondents age group is 30
to 40 years and 3.4% are from 15-18 age group and remaining from 40-50 .
Majority of the respondents found in the survey are from 18-24 of age group.

The education level of 39% of the respondents is graduation and 29.7% are post-
graduated. 22.9% respondents highest qualification is 12Th and remaining have
done 10th as highest qualification. So, the majority of the respondents have
education level of graduation. On the basis of occupation, 43.2% respondents are
students, 36.4% are employees, 8.5% are Professionals, 11% are self- employed
and remaining 0.8% are housewives. So, the majority of the respondents were
students or young generation.

24
STATEMENT 1. AWARENESS ABOUT ONLINE FOOD ORDERING APPS

Source- Author’s calculation of data

Figure no. 5.1 awareness about online food delivery apps

INTERPRETATION

Found nearly 100 percent of the people agreed that they are aware of online food
delivery portals. The online media is very popular and people tend to save time
and order food online by sitting at their homes or workplaces.

25
STATEMENT 2: ORDERING FOOD ONLINE

TABLE NO. 5.2 ORDERING FOOD ONLINE

PARTICULAR RESPONDENTS PERCENTAGE

YES 115 97.5

NO 3 2.5

Source – Author’s calculation of data

Figure no. 5.2 Ordering food online

INTERPRETATION

Due to the popularity of the online food delivery channels, there are 97.5% of
respondents that order food online for various occasions. There are remaining
2.5% people who do not order food online.

26
STATEMENT 3:PREFERENCES TOWARDS ONLINE FOOD DELIVERY
CHAINS

TABLE NO. 5.3 PREFERENCES TOWARDS ONLINE FOOD DELIVERY

CHAINS

FOOD DELIVERY RESPONDENTS PERCENTAGE

CHAINS
ZOMATO 27 22.9
SWIGGY 20 16.9
BOTH 70 59.3
NONE 1 0.8

Source- Author’s calculation of data

Figure no. 5.3 preferences towards online food delivery chains

INTERPRETATION

27
There are two major portals in jalanadhar city from which consumers order their
food online. These are Zomato and Swiggy. 22.9% respondents prefer Zomato
and 16.9% people prefer swiggy to order food online. There are some 59.3% of
the respondents who prefer both these apps to order food online.

STATEMENT 4: OCCASIONS FOR ORDERING FOOD THROUGH THESE

APPS

TABLE 5.4 OCCASIONS ON WHICH FOOD IS ORDERED FROM THESE

APPS

OCCASIONS RESPONDENTS PERCENTAGE

BUSINESS EVENT 14 11.9
SPECIAL OCCASIONS 79 66.9
SOCIAL 29 24.6
DON’T WANT TO 33 28
CCOK
WHEN I DON’T FEEL 1 0.8
LIKE EATING HOME
FOOD
WEEKENDS/ PARTIES 1 0.8

INTERPRETATION

Some of the respondents use these online portals of food delivery only on some
special events. 11.9% of respondents order use these apps for ordering on
business events, 66.9% for some special occasions, 24.6% on social occasions,
28% when they don’t want to cook food and remaining when they don’t want to
eat home food or for parties.

28
Source- Author’s calculation of data

Figure no. 5.4 occasions on which food is ordered from these apps

STATEMENT 5: FREQUENCY OF ORDERING FOOD ONLINE

TABLE NO. 5.5 FREQUENCY OF ORDERING FOOD ONLINE

FREQUENCY RESPONDENTS PERCENTAGE

DAILY 10 8.5
WEEKLY 38 32.2
MONTHLY 58 49.2
YEARLY 9 7.6
NEVER 3 2.5

29
Source – Author’s calculation of data

figure no. 5.5 frequency of ordering food online

INTERPRETATION

The frequency of respondents order food online in a month is 49.2%. There are
32.2% of respondents who order food every week. 8.5% of respondent also order
food daily from these apps. Very less percentage of people i.e., 7.6% use this app
once in a year.

STATEMENT 6: DAYS ON WHICH RESPONDENTS MOSTLY ORDER FOOD

ONLINE

TABLE NO. 5.6 DAYS ON WHICH RESPONDENTS MOSTLY ORDER

FOOD ONLINE

DAYS RESPONDENTS PERCENTAGE

WEEKDAYS 24 20.3

30
WEEKENDS 50 42.4
ANYTIME 44 37.3

Source- Author’s calculation of data

Figure no. 5.6 Days on which respondents mostly order food online

INTERPRETATION

42.4% of people order food from these apps on weekends. there are 20.3% of
respondents who order from this app on weekdays. there are 37.3% of people who
order food anytime from online portals. the frequency of people ordering food on
weekends is more.

STATEMENT 7: MEALS TYPICALLY ORDERED BY RESPONDENTS

ON THESE ONLINE PORTALS

TABLE NO. 5.7 MEALS TYPICALLY ORDERED BY RESPONDENTS ON

THESE ONLINE PORTALS

31
MEALS RESPONDENTS PERCENTAGE
BREAKFAST 11 9.3
LUNCH 26 22
SNACKS 74 62.7
DINNER 7 5.9

Source –Author’s calculation of data

Figure no. 5.7 Meals typically ordered by respondents on these online portals

INTERPRETATION

The meals which are typically ordered by the respondents are mostly snacks.
There are 62.7% of people who order snacks mostly. 22% of respondents mostly
order lunch from these portals. There are very less number of people who order
dinner from online modes.

STATEMENT 8: FACTORS WHICH AFFECT THE RESPONDENTS

WHILE ORDERING THROUGH THESE APPS

32
TABLE NO. 5.8 FACTORS WHICH AFFECT THE RESPONDENTS WHILE
ORDERING THROUGH THESE APPS

FACTORS STRONGLY AGREE NEUTRAL DISAGREE

AGREE
EASE& 81 33 4 -
CONVENIENCE
FAST 11 95 11 1
DELIVERY
OPTION TO 22 69 26 1
CHOOSE FROM
WIDE
VARIETY OF
RESTAURENTS
FOOD 30 78 10 -
TRACKING
SYSTEM
VARIOUS 33 68 17 -
PAYMENT
OPTIONS
OFFER AND 36 71 11 -
DISCOUNTS
LESS HUMAN 33 64 9 1
INTERACTION

33
Source- Author’s calculation of data

Figure no. 5.8 Factors which affect the respondents while ordering through these
apps

INTERPRETATION

There are number of factors which affect the people who order food online like
ease, convenience, fast delivery, wide variety of restaurants, various payment
options and food tracking system etc. There are 81 respondents who are strongly
agree that they like these online portals for ease and convenience and 95 people
agreed that they like the fast delivery service of these apps. 69 people also likes
the option of choosing from wide variety of restaurants. With this, 78 people also
loves food tracking feature and 68 loves option of variety of payment options. 71
people loves the offers and discounts of these portals and 64 also likes the less
human interaction.

STATEMENT 9:INFLUENCE OF PROMOTIONAL SCHEMES OF

ONLINE FOOD DELIVERY CHAINS ON RESPONDENTS

34
TABLE NO. 5.9 INFLUENCE OF PROMOTIONAL SCHEMES OF ONLINE
FOOD DELIVERY CHAINS ON RESPONDENTS

PARTICULARS RESPONDENTS PERCENTAGE

ALWAYS 19 16.1
OCCASIONALY 40 33.9
RARELY 57 48.3
NEVER 2 1.7

Source- Author’s calculation of data

Figure 5.9 Influence of promotional schemes of online food delivery chains on

respondents

INTERPRETATIONS

The promotional schemes of these apps also have influence on the peoples. Very
rare respondents are influenced by promotional scheme of these apps. There are
48.3 % peoples who rarely affected and 33.9 %. People affected occasionally.
1.7% of respondents are never affected by these apps promotions.

35
STATEMENT 10: MONEY SPENT BY RESPONDENTS ON ORDERING FOOD
ONLINE (MONTHLY)

TABLE NO. 5.10 MONEY SPENT BY RESPONDENTS ON ORDERING

FOOD ONLINE (MONTHLY)

MONEY SPENT RESPONDENTS PERCENTAGE

LESS THAN 500 23 19.5
500-1000 45 38.1
1000-2000 45 38.1
MORE THAN 2000 5 4.2

Source- Author’s calculation of data

Figure 5.10 Money spent by respondents on ordering food online (monthly)

INTERPRETATION

36
Mostly the money spent by people on online food ordering in month is between
rupees 500 to 2000. 19.5 % people spend less than 500 on these apps. There are
very less peoples who spend money more than 2000 i.e., 4.2%

STATEMENT 11:CHALLENGES FACED BY RESPONDENTS ON

THESE ONLINE FOOD DELIVERY APPS

TABLE NO. 5.11 CHALLENGES FACED BY RESPONDENTS ON THESE

ONLINE FOOD DELIVERY APPS

CHALLENGES RESPONDENTS PERCENTAGE

SITE IS SLOW 15 12.7
SITE NOT OPENING 22 18.6
SERVICE FOLLOW UP 36 30.5
IS POOR
DELIVERY TIME IS 44 37.3
MORE

NOT FACED ANY 1 0.8

CHALLENGES

37
Source- Author’s calculation of data

Figure no. 5.11 Challenges faced by respondents on these online food delivery
apps

INTERPRETATION

The challenges faced by respondents is mostly delivery time is more. There are
37.3% of peoples faced the challenge that delivery time is more. 30.5% peoples
are face challenges while ordering food online is that service follow up is poor.
18.6% people have site issue. And there are very less number of peoples who do
not faced any challenge while food ordering online.

STATEMENT 12: PREFERRED MODE OF PAYMENT ON ONLINE

FOOD DELIVERY CHAINS

TABLE NO. 5.12 PREFERRED MODE OF PAYMENT ON ONLINE FOOD

DELIVERY CHAINS

38
MODE OF PAYMENT RESPONDENTS PERCENTAGE
THIRD PARTY 47 39.8
PAYMENT APPS(
PAYTM, GOOGLE
PAY)
CASH ON DELIVERY 49 41.5
CREDIT/DEBIT CARD 17 14.4
INTERNET BANKING 5 4.2

source- Author’s calculation of data

Figure no. 5.12 Preferred mode of payment on online food delivery chains

INTERPRETATIONS

The mode of payment which is mostly preferred by the respondents is

Cash on delivery. There are 45.1% of peoples who preferred cash on delivery.
39.8% peoples preferred third party payment app ( like paytm , google pay ) .
14.4% peoples preferred Credit/debit cards. There are very less number of people
who preferred Internet banking.

39
 CHAPTER 6-
FINDINGS OF STUDY

40
6.1 FINDINGS OF THE STUDY

 All the respondents in this survey are aware of online food delivery
platforms and nearly 97.5% of the respondents order food online.
 Nearly 59.3% of respondents use both the famous portals of Chandigarh
for food delivery i.e., Zomato and Swiggy.
 There are 66.9% people who use these portals on special occasions and
24.6% for some social gathering or event.
 The frequency of respondents order food online in a month is 49.2%.
There are 32.2% of respondents who order food every week. 8.5% of
respondent also order food daily from these apps.
 Online food delivery is growing so much that nearly 49.2% order their
food from these app monthly and 32.2% on weekly basis.
 The analysis found that 42.4% of people order food from these apps on
weekends. There are 20.3% of respondents who order from this app on
weekdays. there are 37.3% of people who order food anytime from online
portals. This means that these portals are becoming a significant part in
life of people. 62.7% of respondents prefer to order snacks from these
portals.
 There are number of factors which affect the people who order food online
like ease, convenience, fast delivery, wide variety of restaurants, various
payment options and food tracking system etc. There are 81 respondents
who are strongly agree that they like these online portals for ease and
convenience and 95 people agreed that they like the fast delivery service
of these apps out of 118.
 48.3 % peoples opined that they rarely affected by the promotional
schemes of these apps and 33.9 %. People affected occasionally. 1.7% of
respondents are never affected by these apps promotions.

41
 Mostly the money spent by people on online food ordering in month is
between rupees 500 to 2000.
 The analysis found that the challenges faced by respondents is mostly
delivery time is more. There are 37.3% of peoples faced the challenge that
delivery time is more. 30.5% peoples are face challenges while ordering
food online is that service follow up is poor. 18.6% people have site issue.
 The mode of payment which is mostly preferred by the respondents is
 Cash on delivery. There are 45.1% of peoples who preferred cash on
delivery. 39.8% peoples preferred third party payment app ( like paytm ,
google pay ).

42
 CHAPTER 7 –
CONCLUSION AND
RECOMMENDATIONS

43
7.1 CONCLUSION
Online food ordering apps nowadays become fast moving in India, people do not
find adequate time to go for ordering food, because of fast pace of life. The
internet has become a major source in the digital era where online food ordering
has gained significance not only by the entrepreneurs but also among the
consumer. Online food ordering is in the fingertip of the consumer. It gives a
different experience and consumer can make the food ordering more fashionable
over the internet as they getting used it and becomes more enjoyable and easier.
The customers comfort is simply the primary facet good thing about such,
whereas on the second facet these system also are helpful for the expansion of
eating place and food provide trade, as by the utilization of digital food ordering
system a eating place owner are ready to attract the users attention by permitting
them see the whole food menu in conjunction with dish name, image, specialty,
and price. Integration a web food ordering system isn't any doubt are the simplest,
cheap and helpful call for a eating place business owner. With constant deluge of
experts in urban areas and fast urbanization of Indian scene, the food delivery and
eatery portion is currently flourishing at a rankling pace. Adding to this situation
is an expanding number of cell phones and food delivery applications. Food
delivery applications have now turned into a major hit with well-informed people
crosswise over India. There are a few food delivery applications in India that one
can download on advanced cells to arrange food in a hurry and from the solace of
homes. The changing urban way of life of the normal Indian is sufficiently
emotional to be ideal for the food-on-the– go and fast home delivery models to
develop at higher rates. The regularly expanding populace swarmed metro urban
communities and longer travel times are drivers for the helpful, prepared to eat
and less expensive alternatives of having food and foodstuffs conveyed at your
doorstep. Organizations that know about the colossal potential for development
may wander straight in, yet just the fittest will endure. Organizations who keep

their offer and their image dynamic in purchaser's brains, will take the greatest
offer of the Indian online food benefit pie.

44
7.2 RECOMMENDATIONS
 Customers face a lot of challenges as the site is slow and delivery time is
more. Thus the online portals should know some techniques to place the
order quickly and effectively and should work on their service process.
 There are number of users who order once in a month, and very less
number of respondents are affected by the promotional strategies of these
portals. So, these portals should focus on their promotional strategies.
 Very less number of respondents order food online on weekdays, so these
chains should focus on giving more and more offers on weekdays.
 There are very less respondents who order dinner through these portals, so
there is a need of new policies and offers for dinner time.
 Mostly the mode of payment preferred by people is cash on delivery
followed by third party payment apps. Offers for the internet banking,
mobile banking can help in this area also.

45
 REFERENCES

Serhat Murat Alagoz & Haluk Hekimoglu (2012), “A study on TAM: Analysis of
customer attitudes in online food”, Procedia -Social and Behavioral Sciences 62
(2012) pp. 1138 –1143

H.S. Sethu & Bhavya Saini (2016), “Customer Perception and Satisfaction on
Ordering Food via Internet, a Case on Foodzoned.Com, in Manipal”,
Proceedings of the Seventh Asia-Pacific Conference on Global Business,
Economics, Finance and Social Sciences (AP16Malaysia Conference) ISBN: 978-
1-943579-81-5. Kuala Lumpur, Malaysia. 15-17, July 2016. Paper ID: KL631

Varsha Chavan, Priya Jadhav, Snehal Korade and Priyanka Teli (2015),
“Implementing Customizable Online Food Ordering System Using Web Based
Application”, International Journal of Innovative Science, Engineering &
Technology, Vol 2 Issue 4, April 2015.

Leong Wai Hong (2016), “Food Ordering System Using Mobile Phone”, A report
submitted to BIS (Hons) Information Systems Engineering. Faculty of Information
and Communication Technology (Perak Campus), UTAR.

Jyotishman Das (2018), “Consumer perception towards Online Food ordering

and Delivery Services’ An empirical study”, Vol. 5,Iss. 5, pp. 155-163, ISSN
print: 2347-3940.

46
Dr. Mitali Gupta – DAIMSR (2019) “A Study on impact of Online food delivery
app on restaurant business special reference to Zomato and Swiggy”dtd.
Vol.6,Issue 1, ISSN (E) : 2348-2348.

Times Of India. 2020. ‘Have 60% Revenue Market Share In Food Delivery’ -
Times Of India. [online] The Times of India. Available at:
<https://timesofindia.indiatimes.com/business/india-business/have-60-revenue-
market-share-in-food-delivery/articleshow/72931327.cms> [Accessed 19 March
2021].

https://en.wikipedia.org/wiki/Zomato
https://en.wikipedia.org/wiki/Swiggy

47
QUESTIONNAIRE

A. Annexure

A study on consumer preferences towards online food delivery

chains in Chandigarh

I am Daisy Dutta studying MBA final year in CGC landran, Mohali. I have
undergone a project report on topic "A study on consumer preferences towards
online food delivery chains in Chandigarh" for which I am doing this research.
Kindly spare some time to answer the following questions. Your information will
be kept confidential.

1. Name

2. Age
15-18
18-20
24-30
30-40

3. Gender
Male
FEMALE

48
4. Education
10th

12th

Graduation
Post-graduation

5. Occupation
Student
Self-employed
Other

6. Are you aware of online food delivery ordering apps?

Yes
No

7. Do you order food online?

Yes
No

8. Which food delivery app you prefer the most ?

Zomato
Swiggy
Both
None

9. On what occasions have you ordered food through these apps

Business events
Special occasions
Social
Don’t want to cook

49
10. how often you order food online?
Daily
Weekly
Monthly
Yearly
Never

11. On what days you typically order online?

Weekdays
Weekends
Anytime
Never

12. Which meal you typically order online?

Breakfast
Lunch
Snacks
Dinner

13. What do you like to order food through these apps?

Ease& convenience
Faster delivery
Option to choose from variety of restaurants
Food tracking system
Payment options
Offers& discounts
Less human interaction

50
14. How often does the promotional scheme of these apps influence you to visit
the app?
Always
Occasionally
Rarely
Never

15. On average, how much money do you spend on these apps?

Less than 500
500-1000
1000-2000
More than 2000

16. What are the challenges you faced while ordering food online?
Site is slow
Site not opening
Service follow up is poor
Delivery time is more
Other

17. Which mode of payment you prefer the most?

Third party payment apps
COD
Credit/debit card
Internet Banking

51