Marketing Research

Philippine School of Business Administration
1029 Aurora Boulevard, Quezon City

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Online Food Delivery Service Quality

Towards Customer Retention of the Selected
Rodic’s Diner
In Partial Fulfillment of the Requirements of
Marketing Research
Submitted by:
Alexson Limjoco
Christine Marzalado
Ian Joseph Marzalado
Margott Rentillo
Luisito Vibar
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Table Of Contents
Acknowledgement
CHAPTER I INTRODUCTION
Review of Related Literature
Theoretical Framework
Conceptual Framework
Statement of the Problem
Significance of the Study
Scope and the Limitation
Definition of Terms
CHAPTER II METHOD
Research Design
Population and Sampling Technique (Research Locale)
Research Instruments
Data Gathering Procedures
Validation and Reliability
Ethical Procedures
Statistical Treatment/Tools
CHAPTER III RESULTS
Presentation
Analysis/Evaluation
Interpretation
CHAPTER 1V DISCUSSION
Summary of Findings
Conclusion
Recommendation
Bibliography
Appendices
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CHAPTER I
INTRODUCTION
Rodic’s diner started on July 26, 1949 by owner Pacita Tecson. It was formerly called
Lola Adang, but later changed to its current name by combining the name of the co-founders
two grandsons Rodolfo (Rody), and Ricardo (Dick). Using her sister’s recipe for making tapa,
(a name used for dried, or cured beef in the Philippines) each customer is welcomed with a plate
full of tapa combined with a cup of rice, and a fried egg on the side (tapsilog).
This specialty dish was made extra special with the manner in which it was prepared.
The signature dish resembles that of a corned beef, instead of the usual hard and dry slabs of
meat, making it accessible even to senior citizens to eat and enjoy making it an easy favorite
among the students of University of the Philippines in which the first store was built.
To date, Rodics has a total of eleven (11) branches. Six are in Quezon City, namely in
U.P. Village, U.P. Town Center, Maginhawa Street, Dahlia Street, Congressional Avenue and
Visayas Avenue. There are also two branches in Manila, namely One Archers Place in Taft
Avenue, and in Philippine General Hospital (PGH). One branch in Marikina city, and one
branch in San Mateo Rizal.
According to the article “History of Food Delivery and How It’s Changed”, food
delivery has a history that extends far further back than the smartphone era (Jackson E. 2021).
The Food delivery system started in 1889 with the Royals of Italy, when King Umberto and
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Queen Margherita were first introduced to the “New York style pizza”. It was hand delivered
by the head chef of Pizzeria de Pietro e Basta Costì, Raffaele Esposito. It was then followed by
Dabbawalas of India in 1890, where they introduced a lunchbox system, hence the name
dabbawala or “one who carries the box”. Workers were offered food in the workplace in pre-
packed lunch boxes. This was a great substitute for workers needing to go home every lunch
hour to eat. Saving time, and energy for the workplace. 1922 was when the Chinese Takeout
system was introduced in the Western world when most houses have access to telephone lines.
The Chinese restaurants took advantage of new technology to allow their customers to order
their food in the convenience of their home. And 1950 was when it finally became a norm.
The food delivery system has evolved in time, especially now with the advent of
smartphones. Third party agents can accommodate food delivery without having a physical
connection with the restaurants, making access to different varieties of food available in one
easy order. Nowadays, it’s either a simple tap on the app, or a simple phone call, and the food
will arrive in your house or destination, still piping hot.
The development of internet technology, which makes e-commerce operations easier,
has changed how consumers and businesses behave. Customers may shop conveniently,
compare goods and prices, and arrange for immediate delivery of their purchases thanks to the
availability of e-commerce platforms. Many restaurants took advantage of the delivery app in
lieu of their own as it is more economical and accessible to its consumers. Online technology
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makes it possible for customers to order food from restaurants through their websites or through
online food delivery services like Eat24, GrabFood, and GoFood, Food Panda, etc.
In the restaurant business, the accessibility of the industry to operate in a saturated
market is enabled by online delivery service technology to increase efficiency, strengthen
customer relationships, and expand their market (Ng, Wong, & Chong, 2017; Yeo). Recent
trends in internet buying suggest that purchasing food has risen to the top of the list and is
expanding quickly, 12 percent annually (Chang et al., 2014). This development is both a
difficulty and an opportunity for restaurants, since it fosters intense competition. Having
devoted clients is essential for online business enterprises in this difficult climate (Pee, Jiang, &
Klein, 2018). The research on loyalty drivers generally agrees that perceived value, the caliber
of the product or services, and customer pleasure are the foundations of loyalty (Wirtz &
Lovelock 2016).
In the Philippines, there are numerous food delivery services introduced to the public.
Third party delivery such as these players allows customers easy access to a large selection of
different Food and Beverage (F&B) companies within their location. According to the 2019
Annual Survey of Philippine Business Industry (ASPBI) conducted by the Philippine Statistics
Authority (PSA) that was released in February 2022, restaurants and mobile food service
activities shared the highest number of establishments with 25,424 or 74.2% of the total. It also
produced the highest number of employment with 398,524 workers or 65.2% of its industry
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group. In terms of generated total revenue and incurred total expense, this industry also
accounted for P 643.79 Billion (70.1%) and P 534.82 Billion (71.1%), respectively.
However, despite the fact that several studies on loyalty have been carried out in a
variety of businesses, experts (Abou-Shouk & Khalifa, 2017; Caruana & Ewing, 2010) believe
that there is still much to learn about how client loyalty develops. Additionally, the outcome
will be challenging to generalize findings from studies in one business to other industries
because of the following: differences; hence, academics advise looking at how loyalty
develops in other emerging industries sectors (Gursoy, Chen, & Chi, 2014). Despite the fact
that the online food delivery services sector is now, future prospects are bright and growing
(Kedah, Ismail, Haque, & Ahmed, 2015; Yeo et al.)
According to studies done in the restaurant industry (Kedah et al., 2015; Yeo et al.,
2017), the food and e-service quality have a big impact on the customer experience. Despite the
significance of these traits, there doesn't seem to be any work that addresses the concurrent
impact of those traits on client online loyalty, particularly in the online food delivery services
context. This study investigates how e-service quality is affected by this research gap as well as
how food quality has an impact on patronage of Online Food Delivery (OFD) services. This
study aims to assess the direct effects of food and e-service, quality on online loyalty and the
indirect effects of perceived value and customer happiness as mediators. In the Philippines, by
conducting such a study, restaurateurs will have a means of expanding their understanding of
client loyalty from the standpoint of the online food delivery services and developing more
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effective market targeting tactics. According to a report from 2018 (Statista), online meal
delivery service users additionally have a few experimentally measured characteristics. Eighty-
six (86) percent of the time, consumers order delivery for their homes, and 74 weekends
account for % of all sales (Hirschberger et al. 2017).
Furthermore, in 2017, 43% of People who used internet food delivery services claim
that they took the place of in-person orders for a restaurant dinner. This number grew from
38% just the previous year, indicating that the introduction of online channels results in
gradual cannibalization (Morgan 2017 (Stanley).
In fact, according to Rakuten Insight, in the Philippines alone, 23% orders food from
delivery apps once or twice a week. The same survey revealed that Food Panda and Grab Food
were the most popular food delivery apps among Filipino customers (Statista Research
Department). Online food delivery providers frequently claim that they are generating more
revenue for restaurants. In fact, a survey of thousands of restaurant owners revealed that for
60% of restaurant companies, delivery has increased revenue (Technomic 2018 Food Trends).
The profitability of restaurants is diminishing as online delivery rises, despite the
fact that online meal delivery services assert and do in fact generate additional sales for
eateries. On the websites of the individual companies, this background information was
discovered. This is mostly a result of the hefty prices that online food delivery services
impose, both to the restaurant and to the consumer as service and delivery fees. The majority
of online food delivery services bill the restaurant 20–30% of each purchase. Cutting off
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restaurants' internet sales channels is not an option because online delivery frequently
accounts for a significant portion of their revenue.
However, there are other aspects that affect customers' pleasure with utilizing online
food delivery services apps than restaurant accessibility. Customer satisfaction will also be
influenced by additional elements including usability, navigational design, and performance
expectations. For instance, numerous research studies have examined the variables that affected
how customers initially adopted applications during the early usage of online food delivery
apps. Customers gradually become accustomed to the apps and adjust to them without running
into any technological problems. Since technological problems are becoming less frequent, it
will be pointless and insufficient to focus just on variables affecting technology acceptability.
The behavioral elements that affect user satisfaction and loyalty toward online food delivery
services apps have also been covered in a number of research Yeo et al. examined hedonic
motivation toward online food delivery price and time orientation, as well as convenience
motivation. Additionally, Prabowo & Nugroho discussed their earlier online shopping
experiences to identify the variables that affect their attitudes and behavior with regard to
online food delivery services. Additionally, Gunden et al. (2017), discussed the habit
elements that affect one's intention to utilize online food delivery services. Therefore, online
food delivery apps have been a hot topic in recent years. Online food delivery services have
been widely used mostly at this time during COVID-19 pandemic, in order to avoid
contracting the virus, buyers should hardly ever buy themselves. Several aspects (Perceived
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Ease of Use, Time Saving Orientation, Convenience Motivation, and Privacy & Security)
towards behavioral intention of online delivery services apps were identified by Lau & Ng
using the theory of planned behavior. Additionally, Yeo et al. examined components
(Hedonic Motivation, Prior Online Purchase,
Time Saving Orientation, and Price Saving Orientation) impacting convenience Motivation
using theory of general behavior to assess effectiveness of online food delivery services with
customer retention of Rodic’s dinner in the Philippines.
This study uses an enhanced Theory of Planned Behavior (TPB) approach to identify
factors that affect customers' happiness and loyalty in online food delivery services. This study
is one of several looking at aspects like customer loyalty, satisfaction, and retention with
online delivery services. Finally, this study can be used and expanded to assess the elements
influencing patronage of online delivery services apps in order to decipher its effectiveness.
The purpose of this study is to examine the effects of online food delivery service quality
to customer retention. The researchers aim to understand how customers continue to choose an e-
service plattform for delivery of products and how it leads to restaurant brand (Rodic’s Diner)
patronage. Determining specific reasons why customers avail online food delivery services in
purchasing products from Rodic’s Diner will aid restaurant owners and managers in integrating
improvements on their current business process. We also intend to distinguish indicators of
customer retention of Rodic’s Diner. Customer retention is a reliable measurement of
performance, competitive advantage and success of business according to Qadri et al (2014).

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Identifying particular indicators of customer retention of Rodic’s Diner will help the
management develop strategies to maximize beneficial practices and modify detrimental
procedures. Using findings from previous research and published theories and models, we seek
to establish the reasons in choosing online food delivery service quality and how it translates to
customer retention of selected Rodic’s Diner. The result of this study will be beneficial to
researchers, educators, students, government agencies, businesses and individuals or groups who
want to investigate the relationship between online food delivery service quality and customer
retention.
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Review of Related Literature
Customer Retention
Customer retention is key in keeping a business such as a food enterprise, thrive.
Customer retention is defined as the ability of a company or product to retain its customers over
a specified period. Having a solid base of customers to continue patronizing your product, while
actively promoting it to new customers is a solid path of success. According to the article
“Customers come back! Learn how to use customer retention to your advantage”, your best
customers don’t just buy one product or use your service once. They come back again and again
for more. The probability of selling to an existing customer is 40% more likely than converting
to a new customer (Patel, N 2018).
CRM (Customer Relationship Management) results in satisfied customers, which in turn
indirectly affects customer retention. The direct relationship is between customer satisfaction
and customer loyalty and customer profitability (Almohaimeed, B 2019).
Although customer satisfaction does not have a significant effect on customer retention, the
indirect relationship that occurs through customer trust shows that the trust in the credit process
and the service provided will prompt customers to use the company’s products or services
(Simanjuntak, M. Et al. 2020) . Organizations take three main considerations into account to
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guarantee their customer retention: customer satisfaction, customer loyalty and customer
profitability (Almohaimeed, B 2019).
Another factor that influences customer retention in addition to customer satisfaction and
customer trust is switching barriers. In the financial services industry, switching costs have been
identified as one of the most contributing factors in retaining customers (Colgate & Lang, 2001).
Online Loyalty
Customer pleasure alone won't guarantee a business' longevity in a cutthroat and difficult
business environment like that of the restaurant industry. Boosting company success (Ha & Jang,
2010). Having devoted customers is essential for thriving in this cutthroat industry. A firmly held
commitment to repeatedly buy or patronize a favored good or service in the future is loyalty.
Situational factors and marketing initiatives (Oliver, 1999, p. 34). Brand loyalty, vendor loyalty,
service loyalty, and retail loyalty are all types of loyalty to a product or service. E-loyalty, often
known as online loyalty, broadens traditional loyalty by using online technology to mediate the
interaction between customers and the business. According to academics (Abou-Shouk &
Khalifa, 2017)
Online loyalty is frequently described (Pee et al., 2018) as a sign of a customer's devotion
to a website, showing a customer's willingness to return, conduct business, and promote the
website to others. This study focuses on meal delivery services offered online. The commitment
of the consumers to the online food delivery service that results in repurchases and customer-
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positive behaviors toward the OFD service providers is therefore termed as online loyalty toward
OFDs. According to literature, devoted consumers boost a business' profits by their steadfast
devotion to it and help it cut expenditures associated with acquiring new customers (Reichheld,
Markey, & Hopton, 2000).
According to another research (Kim et al., 2009; Suhartanto, Chen, Mohi, & Sosianika,
2018), devoted clients are more likely to spend more money, pay more, recommend the business
to others, and lower operational costs than newly acquired clients costs. Thus, having online
loyal clients can speed up profit development even if creating online loyalty requires more
investment than creating conventional loyalty (Kim et al., 2016). According to Fandos and
Flavián (2016), managers should establish consumer expectations and deliver a distinctive
product and service that surpass those expectations in order to turn a first-time client into a
devoted one. Due to the integration of online processing, food preparation, and rapid delivery
services, the demand for food acquired through OFD services is rising (Kedah et al., 2015; Yeo).
The demands that the goods and services are food are nicely made and go above and beyond
what the buyer expects. To gauge a customer's loyalty to a good or service, three methods are
utilized. First of all, loyalty is thought of as behavior. According to this behavioral perspective, a
devoted customer is one that routinely buys the goods or services within a predetermined time
frame (Suhartanto, Chen, et al., 2018). A devoted client in the OFD environment is one who
consistently purchases meals, either directly through the restaurant website or through restaurant
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webpage intermediaries. Second, the idea of loyalty is that it is a sentimental manifestation of a
customer's desire to return and suggest products (Gursoy et al., 2014).
Considering the behavioral and attitudinal flaws, specialists (Gursoy et al., 2014) advise a
third strategy, a complementary loyalty is a behavioral and psychological mix.
The combined method contends that consumers' online behavior is a good indicator of how loyal
they are to OFD services purchasing, propensity to repurchase, and willingness to advocate for
the OFD company to others. This technique allows the researcher to comprehend not just the
behavior of present customers who are loyal but also potential future consumer loyalty patterns.
In light of this, this study examines OFD client loyalty as composite loyalty for services.
E-Service Quality
According to Zeithaml and colleagues, "the extent to which a website supports efficient
and successful shopping, purchase, and delivery of items and services" is the definition of e-
service quality that is most frequently mentioned (2002, p. 363). According to Zeithaml and
colleagues' description, a customer's comprehensive evaluation of an electronic service's offers is
an assessment of the service's quality. When making purchases online, customers want websites
to provide exceptional service (Caruana and Ewing 2010). Therefore, it is essential for
businesses to sell their goods and services through high-quality websites. This is especially
crucial in internet businesses like OFD services, where businesses exclusively connect with their
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clients via online platforms. Maintaining the website's quality, according to Jeon and Jeong
(2017), is essential to attracting and retaining customers.
As a result, maintaining a high-quality website is crucial for internet businesses to
succeed (Parasuraman, Pee et al., 2018; Zeithaml & Malhotra, 2005). An inventive and well-
designed website is equivalent to a great distribution channel in traditional commerce for internet
enterprises. Studies on the quality of e-services generally concentrate on two issues:
dimensionality and its causes and effects. The ES-QUAL is a scale used to assess the quality of
e-services and includes four dimensions: system availability, efficiency, privacy, and
fulfillment. It was developed in 2005 as a consequence of a significant study on the
dimensionality of e-service quality undertaken by Parasuraman and colleagues. In the wake of
this, researchers (Bressolles). Additional dimensionality models with a variety of dimensions are
provided by Durrieu, Senecal, Chang, Wang, and Yang (2009), and Mihajlovi (2017). Studies
have gradually taken into account the connection between e-service quality implications and
between client engagement with the website and their actions after that. Most earlier studies
indicate clients’ satisfaction with the quality of the e-services determines customer e-loyalty
(Chang, Kedah et al., 2015; Mihajlovi, 2017; Pee et al., 2018; et al., 2014; Jeon & Jeong, 2017).
Food Quality
The ability of food to generally satisfy consumer needs is referred to as "food quality,"
and it is seen as a crucial component of the dining experience for customers (Ha & Jang, 2010;
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Sulek & Hensley, 2014). Although previous research has emphasized the significance of food
quality, there is no agreement on the specific characteristics that make up food quality. Ha and
Jang (2010) analyze the impact of customers' meal experiences on their pleasure as well as their
desire to return to the restaurant using the food qualities of flavor, nutrition, and diversity. The
menu, presentation, size, and diversity are all used by Liu et al. (2017) as measures of the caliber
of restaurant fare.
According to Sulek and Hensley (2004), buyers often consider attraction, safety, and
nutritional aspects when assessing the quality of food. Other researchers (Namkung & Jang,
2007) suggest using the diversity of the menu, food presentation, healthiness, flavor, and
temperature to assess the quality of the cuisine. The quality of the cuisine is recognized as one of
the fundamental factors that influences patrons' experiences with the restaurant, along with
service quality (Ha & Jang, 2010; Liu et al., 2017; Namkung & Jang, 2007). Food quality has
been scientifically investigated in several restaurant studies due to its significant influence, along
with other characteristics.
According to Mattila (2001), a key factor influencing patron loyalty in casual eating
establishments is the caliber of the cuisine. Sulek and Hensley (2004) suggest that in comparison
to the atmosphere and service quality of restaurants
The quality of the cuisine has the most impact on patron satisfaction with the establishment. one
more research to investigate patron behavior in a restaurant setting (Namkung & Jang, 2007),
claims considerable impact of food quality on consumer satisfaction and purchase and
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consumption intentions. I'd advise the eatery (indicators of customer loyalty). Despite being
essential, none of the studies in the framework of OFD have evaluated food quality as an aspect
for restaurants, the factor that influences consumer behavior after a purchase. In light of prior
research, it makes sense to assume that the consistency of the meal will affect customers' loyalty
to online food delivery services.
The Mediation role of a Perceived Value
The phrase "perceived value" refers to a comparative evaluation of the advantages and
disadvantages of the offered item or service. Equity theory, which asserts that there should be a
certain ratio between the provider's success and the viewpoint of the consumer (Garca-Fernández
et al., 2018). If customers believe that the trade-off between their sacrifices and experiences with
the goods or services is equal, they will feel treated properly (Chang et al., 2009). Customers
may quickly evaluate product features and costs in internet commerce, making perceived value
important.
According to Caruana and Ewing (2010), internet businesses may provide more
competitive rates since it is inexpensive to do searches there. The likelihood that customers will
compare costs and the advantages provided by the goods or services they purchase improves as a
result of this cost reduction. If clients believe they receive more value for their scarification in
both monetary and nonmonetary categories, the relationship between them and the online
merchant will be stronger (Anderson & Srinivasan, 2003). Additionally, research has shown a
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clear correlation between perceived value and e-service quality (Caruana & Ewing, 2010; Jeon &
Jeong (2017); Chang et al. (2009). According to this debate, perceived value acts as a bridge
between online loyalty and the quality of e-services.

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Theoretical Framework
Unified Theory of Acceptance and Use of Technology 2 (2022)
The purpose of this study is to determine how the effectiveness of online food delivery
services results in customer retention of selected Rodic’s Diner. The researchers adopted the
theoretical framework used by Andal et al, (2022) in their research relative to the impacts of food
delivery services on consumers of Lipa City, Batangas. The foundation of the framework was
based on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) designed by
Venkatesh et al (2012). The Unified Theory of Acceptance and Use of Technology 2 (UTAUT2)
is a combination of previous theories and models on technology acceptance and an improvement
to address limitations found on existing frameworks. Previous studies in online food delivery
services utilized the same framework and yielded significant results. Findings from the research
of Osei et al (2021) showed that the model was able to capture noteworthy data regarding
factors that influence customers to adopt and subsequently use online food delivery services. It is
a functional theory used to interpret technology acceptance from the customer’s point-of-view
(Seo et al, 2020). The variables Delivery, Price Value, Convenience, and Variety of Food
Options were consistently proven to be major factors of continuous intention on food delivery
applications using the The Unified Theory of Acceptance and Use of Technology 2 (Seo et al,
2020), (Lee et al, 2019,), (Laksono et al 2018). Given the following information, the researchers
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decided to use the The Unified Theory of Acceptance and Use of Technology 2 with the
following variables namely: Delivery, Price Value, Convenience, and Variety of Food Options.
e•PriceFigure 1. Unified Theory of Acceptance and Use of Technology 2 (2022)
Reichhelds Theory of Loyalty (1996)
Reichhelds (1996) theory of Loyalty Effect argues that loyalty based management
is essential to create a profitable, and sustainable business. This requires loyal customers,
employees and investors. Emphasis is made to elevate customer satisfaction by training
employees to provide better service to customers, laying out add-on programs and keeping
existing customers happy with the service, thus ensuring loyalty in both customers and
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employees. Identifying eight (8) elements of loyalty based management (page 303-04 ), the
researchers have determined to focus attention on specific tenets, Building a superior customer
value proposition, finding the right customers, earning customer loyalty, and gaining cost
advantage through superior productivity.
By providing products that would suit the needs of the target market, the company
guarantees their customers would appreciate the product the company provides. There are
already those patrons of the diner who have experienced it while in school, and still stand by
loving the brand because of the product offered. By sticking to a standard of service, by
guaranteeing the taste does not change from what people remembered how good it was, the
company guarantees that their intended investors, which are their customers, keep coming
back for more. Partnered with mobile device application for food delivery service, the
company can guarantee customers would have the luxury to choose where they would prefer
to dine at. They would have the luxury of dining at home, but still expect their food will come
in hot, presentable, and affordable. Users of mobile devices have the luxury of choosing a list
of f&b providers within their location, but by providing a standard of service, customers will
continue to come back and order more.

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Figure 2.0 Riechheld’s Loyalty effect

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Conceptual Framework
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Input Process Output

1. Profile of the Respondents
1.1. Age
1.2. Sex
1.3. Civil Status

Survey and Sampling
Effectiveness of
online food delivery
1.4. Highest Educational
Attainment Collection of Data service quality on
customer retention.
2. Level of effectiveness of Analysis and interpretation
the respondents
of data
2.1. Delivery
Presentation of
2.2. Price
findings/result
2.3. Convenience
2.4. Variety of Food Options
3. level of motivation of
customer respondent
3.1. Build strong customer

value proposition
3.2. Earning customer loyalty
3.3. Cos advantage thru

superior productivity
3.4. Finding right customers

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Figure 3.0 Conceptual Framework
The figure illustrated above is the conceptual model of this research which presents the
Online Food Delivery Service Quality Towards Customer Retention of the Selected Rodic’s
Diner. It also discusses the research and data gathering procedures and scope of the study in
which the customer’s demographic profile will be the determined target, the respondents are
online food customers , it includes the discussion of research instruments, questionnaires as a
tool for data gathering procedure, data analysis, weighted mean and percentage.
The conceptual framework will establish the association of various motivations of
purchasing of customers in relation to customer retention.
Statement of the Problem
The study aims to determine Online Food Delivery Service Quality Towards Customer
Retention of the Selected Rodic’s Selected Diner.
This will seek answers to the following questions:
1. What is the demographic profile of the respondents in terms of :
1.1. Age
1.2. Sex
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1.3. Civil Status
1.4. Highest Educational Attainment
2. What are the level of effectiveness of the customer respondents in the online delivery
services of Rodic’s Dinner in terms of:
2.1. Delivery
2.2. Price
2.3. Convenience
2.4. Variety of Food Options
3. What are the level of motivation of customer respondent on the loyalty to the online food
delivery service quality of the Selected Rodic’s Diner in terms of:
3.1. Build strong customer value proposition
3.2. Earning customer loyalty
3.3. Cost advantage thru superior productivity
3.4. Finding right customers
4. Is there a significant relationship in the level of effectiveness of online food delivery
service quality when grouped according to demographics profile?
5. Is there a correlation between the level of effectiveness of online food delivery service
quality and customer retention of the Selected Rodic’s Diner?

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Hypothesis of the Study

In discussing the paper, we have come up with the following hypotheses.
Ho: There is no significant relationship on the level of effectiveness of online food
delivery service quality when grouped according to demographics profile.
Ho: There is no correlation between the level of effectiveness of online food delivery
service quality and customer retention of the Selected Rodic’s Diner.
Significance of the Study
The significance of this study is based on the presented results regarding the
effectiveness of Online food delivery service quality towards customer retention of the selected
Rodic’s Selected Diner.
This will benefit the following sector:
Rodic’s Diner Owner
This study about online delivery service towards customer retention helps the Rodic’s Diner
Owner measure not only how successful the Company is at acquiring new online customers but
also how successful it is at satisfying existing customers.

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Food Industry
As regulated by the Government agency, the result of this study will inform them about
the most effective marketing strategy in terms of social media platforms that they can apply to
help the food industry in the country cope up with the current phenomenon.
Online Food Delivery Services or App
This research will help online food delivery services/ App provide appropriate strategies that
they can utilize to boost their business operations
Customer
This will give the customer an idea how convenient and effective it is to use online food
delivery services nowadays that leads them to become repeat and retain customers.
Future Researchers
This research can serve as reference for future researchers in pursuing similar studies
related to the effectiveness of online delivery service towards customer retention.

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Scope and Limitation

This study will focus on the effectiveness of online food delivery service quality towards
the customer retention of the selected rodic's diner particularly it will identify in terms of Product
Quality, delivery, Customer Feedback and Evaluation, Price, Owner-client relationship. Also, to
determine the related actions to be implemented by the management to address customer
retention in terms of building a strong customer value proposition, earning customer loyalty,
Cost advantage thru superior productivity, finding right customers, and at the same time to
decipher the significant relationships of the demographic profile of the respondents.
Since this study will be conducted during a summer class, the research may not cover
the overall views of all the data to be collected.
The respondents of this study are the 50 customers of online food delivery services.
Since this study is conducted during a summer class, it may not cover the overall views of all
the data;
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Definition of Terms
The key terms used in this study were conceptually and operationally defined:
Price
The total amount of money required to avail an online food delivery service. It includes
the price of the product set by the restaurant and the delivery fee charged by the online food
delivery service provider.
Delivery
The process and manner of transferring products purchased online from the restaurant
to the location selected by the customer.
Convenience
Refers to the ease and comfort experienced by customers in availing online food
delivery services.
Variety of food options

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Availability of different types of food products wherein customers can choose when they
use the online food delivery services of a restaurant.
Earning Customer Loyalty
The action plan performed by the restaurant to achieve a continuous flow of repeat
customers.
Cost of Advantage thru Superior Productivity
Is a plan of action to acquire unfair advantage against competition by producing more in
a short time span.
Finding Right Customers
A method of discovering customers who are likely to use the service of the online food
delivery service and purchase from the restaurant over time.
Build Strong Customer Value Proposition
Designing an ideal summarized statement of the benefits that customers receive when
they avail online food delivery services.
Convenience Motivation
This is a degree in which an individual is willing to undergo a process which makes them
free from any difficulties just by using the system or technology.

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Customer Retention
Is the ability of the Company to retain its customer thru online food delivery service.
Food Industry
An industry that provides food services to the customers.
Hedonic Motivation
Is the degree in which an individual perceives happiness using technology regardless of
the result.
Online Food Delivery Services
Is a web-based application that lets restaurants accept orders online. It is also a
convenient way to get the food delivered straight to the customer’s door.
Place
It is the location of the establishment where product is accessible and available to the
market. The place element refers to how you get your product to your customers at the right
time, at the right place, and in the right quantity. It includes distribution channels, location,
logistics, service levels and market coverage.
Perceived Value
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Refers to the price the customer is willing to pay to a particular product or service based
on their own perception about the product.
Retail Service Quality Scale
Is used to study the quality of service that particular industry is offering as well as its
impact on consumption behavior.

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Chapter II
Method
This chapter presents the rationale that will form the basis to select research design,
sample design, research locale, research instrument, data gathering procedures, validation and
reliability, ethical procedure, and statistical treatment.
This research paper aims to gather frequencies, averages, and correlation to the topic of
research.
The research design of this study is exploratory in nature. It will attempt to answer the
problem of the study through survey answers and interview to respondents. This research will
not in any way draw conclusions about the cause and effect of such actions.
Participation will be voluntary and can be answered anonymously. Each participant will
be given a link to generate the survey question, wherein they can answer as freely as they want,
and with such compliance a small compensation will be given as a form of thanks.
The research will be a case study, which is more inclined to analyze limited number of
individuals in a deeper context, and this researcher has no control over variables in the research
study, which is considered ex post facto, the research design of this study is multi-faceted.
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Research Design
The descriptive research design will be used in this study is through a comparative
methodology. This study's research design will describe the effectiveness of online food delivery
services towards customer retention of the selected Rodic’s Diner’s ability to retain customers in
the Philippines. A study that uses descriptive research aims to accurately represent its subjects.
Descriptive research, to put it another way, focuses on characterizing the study's participants.
When the goals of the study involve describing a phenomenon's features, figuring out how
frequently it occurs, figuring out how closely certain factors are related or compared, and
generating predictions about when a phenomenon will occur, descriptive research is acceptable.
The researcher will thoroughly review, evaluate, and describe the data in descriptive research
(Churchill & Iacobucci, 2015).

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Population and Sampling Technique (Research Locale)
This study will be conducted by gathering data from online delivery customers of Rodic’s
Diner. As of writing, Rodic’s diner is only available thru Grab (GrabFoods) delivery. The
Rodic’s diner clients of online meal delivery businesses who made up the study's participants
will be used. The researcher recruited individuals from a diverse group, which will help to
improve the research's results.
Sampling is the process by which data are selected from a larger set of data whose
characteristics are intended to be estimated (McClave and Sincich, 2018). S.C. and Indra Gupta
states that the main objectives of the sampling theory is to obtain optimum results and the best
possible estimates of the population parameters. This study will use a quota sampling in selecting
customers in participants for the web-based survey questionnaire among selected Rodic’s Diner..
In this type of sampling method, researchers aim to represent the major characteristics of the
population by sampling a proportional amount of each (Sarstedt and Mooi, 2019).

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The effectiveness of online food delivery services towards customer retention of the
selected Rodic’s Diner will be included in the data obtained for this study. The data will be
collected within a week from the time the survey was initiated to ensure reliability and timeliness
of the survey.
Research Instruments
The survey questionnaire will be the main technique the researchers will utilize to collect
data. This will be constructed using original materials and assertions that, when the
correspondents followed the researcher's instructions for replying appropriately, might produce
the intended outcome.
Prior to administering the questionnaire, the researchers thoroughly read and reviewed
the pertinent literature, which gave valuable insights on how to get the data. The researchers used
the respondents' responses to compile the data; in addition, the researcher also read from a
variety of materials found over the internet, and their own experiences as a client of an online
food delivery particularly as a client of Rodic’s Diner.
The target sample participants were given the collection of data with the approval of the
participants, and it was personally recovered by the researchers. The mentor who has expertise in
the subject reviewed and approved the first draft of the tools. This questionnaire will be divided
into parts; wherein the first part will primarily discuss the respondent’s demographic
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information. Such information includes their gender, civil status, age, educational attainment,
and position in the company.
In terms of product quality, delivery, customer feedback and assessment, pricing, and the
owner-client connection, how effective are online meal delivery services in keeping Rodic's
Diner's customers? What are the associated steps that the management of Rodic's Dinner in the
Philippines has to do in order to address how well online meal delivery services help keep
customers coming back? Is there a strong correlation between the respondents' demographic
make-up and how well online meal delivery services help retain customers? What may be
advised in light of the findings?
5-point Likert Scales will be utilized to determine if the respondents will agrees or
disagree in a stated question. The data gathered from this research instrument will be tallied and
computed for interpretation according to the frequency of items checked by the participants.
Table 2. Five Point Likert Scale
Scale Range Verbal Interpretation
5 4.50 - 5.00 Strongly Agree
4 3.50 - 4.49 Agree
3 2.50 - 3.49 Neutral
2 1.50 - 2.49 Disagree
1 1.00 - 1.49 Strongly Disagree

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For content validation of the questionnaire, the researchers will prepare a letter to whom
the instrument will subject for review and for soliciting their comments and suggestions for
improvement. The results of the stratified sampling guided the researcher in the distribution of
the sample respondents under the study.
Data Gathering Procedure

The study will use survey questionnaires through Google Forms to collect data from
customers of selected Rodic’s Diner. The researchers opted to use a web-based survey
questionnaire because of its free availability, time efficiency and ability to reach a large
population (Haju and Harinaranaya, 2016).
The data gathering procedure will be divided into five stages. The first is the formulation
of a web-based survey questionnaire in accordance with the statement of the problem of the
study. Then, the researchers will test the validity and reliability of their web-based survey
questionnaire. After successfully verifying the validity and reliability of the research instrument
comes the third stage wherein a written consent will be sent through the email or social media
account of the participants of the study. It will explain the contents of the study, what
information is expected from the participants and that their participation is completely voluntary.
On the fourth stage, the survey questionnaires through Google Forms will be distributed to the
participants who will agree to take part in the survey. The same manner of distributing the
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written consent will be utilized for the survey web-based questionnaire. Finally, the results of
the web-based survey questionnaire will be collected upon completion of the participants. It will
be presented and analyzed using various graphs and statistical tools respectively.
Ethical Procedures
Prior to the distribution of survey questionnaires, the researchers will send online written
consent to the participants through their email or social media account. The researchers will
certify that participation in the study is completely voluntary and all data that will be collected
will be taken care of with utmost confidentiality. The researchers will explain to the respondents
the purpose and scope of the study. This study will strictly adhere to The Data Privacy Act of
2012 in its method of gathering and analyzing data from the customers of the selected Rodic’s
Diner. Only participants who signify their consent to be part of the study will be given the web-
based survey questionnaire. Moreover, participants have rights to withdraw from the study at
any stage if they wish to do so.
The researchers will treat each participant with the highest respect and importance.
Hence, the use of offensive, discriminatory, or other unacceptable language will not be included
in the online survey questionnaire. In addition, research questions will be explicitly objective to
make sure that only factual information regarding the study will be collected and analyzed.
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The participants will be provided ample time to answer the web-based survey
questionnaire. Specifying their name in the Google Forms will be optional to ensure anonymity.
Participants are encouraged to answer the survey questionnaire truthfully and solely based on the
information that they are willing to disclose. Finally, upon the completion of all the respondents
in answering the web-based survey question, researches will tabulate and analyze the data
collected using impartial statistical tools.

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Statistical Treatment / Tools

In presenting, interpreting, and analyzing the data gathered, different statistical tools will
be used. The data source would be primary driven, as the source would be based on the
experience and response of respondents. Secondary data, such as those gathered from experts
would be of great help but will not in any chance affect the result of the research.
The data received will be classified as both qualitative and quantitative. Qualitative
because some categories of research are based on the manner respondents respond to the
question. Qualitative because there are questions in the survey that are measurable, thus the
result can easily be measured and quantified.
This research will involve both nominal scale in measurement, and ordinal. As there are
questions in the survey that relate to each type of measurement.
The statistical tests to be used will most likely be a multivariate analysis, as this can be
illustrated in a conceptual model. As this research has not been concluded, much of the statistical
tests and analysis is a proposal, and as such, this research may utilize additional tools for
assessment and may undergo the survey and tests in succeeding tests. Thus, this may not show
empirical conclusion as of yet.
1. Percentage and Frequency Distribution
Frequency Distribution refers to the presentation containing non-overlapping categories
or classes of a variable and the frequencies or counts of the observations falling into the category
or classes. On the other hand, Percentage or Relative Distribution pertains to the frequency of the
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class as a fraction of the total (Albert et al, 2016). The formula for the percentage distribution is
as follows:
Where:
P = percentage
f = number of responses
n = total number of responses
100% = constant value
The researchers will use these tool for the purpose of identifying the demographic profile
of the respondents.
2. Weighted Mean
Weighted mean is a measurement of central tendency calculated by multiplying each
data value by a weight and dividing their sum by the sum of the weights. The formula for a
weighted mean is:

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Where:
WM = weighted mean
∑ = summation
f = number of responses
x = weight for each category
n = total number of responses
According to Peter and Andrew Bruce (2017), there are two motivations for utilizing
weighted mean. First is the assumption that some values are intrinsically more variable than
others, and highly variable observations are given a lower weight. The second one is that data
collected does not equally represent the different groups that we are interested in measuring.
Basically, the goal of using a weighted mean is to give more value to variables with higher
frequency.
Researchers will use the weighted mean to determine the level of effectiveness of online
food delivery service of customer respondents of selected Rodic’s Diner in terms of the
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following: Delivery, Price, Convenience and Variety of Food Options. Likewise, it will also be
employed to distinguish the level of motivation of customer respondents on the loyalty to the
online food delivery service quality of the Selected Rodic’s Diner in terms of: Build strong
customer value proposition, Earning customer loyalty, Cost advantage thru superior productivity
and, Finding right customers.
3. Pearson’s Correlation Coefficient ( r )
Pearson Correlation Coefficient ( r ) pertains to a number between -1.00 and +1.00 that describes
the linear relationship between parts of quantitative variables (Robert and John Witte, 2017). In the book
of Sarstedt and Mooi, (2019) they posit that it is suitable for calculating correlations between two
variables that are both interval or ratio-scaled. Pearson Correlation Coefficient is calculated as follows:
n = the number of pairs of scores
Σxy = the sum of the products of paired scores
Σx = the sum of x scores

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Σy = the sum of y scores
Σx2 = the sum of squared x scores
Σy2 = the sum of squared y scores
The researchers will use Pearson Correlation Coefficient ( r ) to analyze if there is a significant
relationship in the level of effectiveness of online food delivery service quality when grouped
according to demographics profile. Concurrently, this statistical tool will be utilized to examine
the correlation between the level of effectiveness of online food delivery service quality and
customer retention of the Selected Rodic’s Diner. The decision of the researchers to adopt the
Pearson Correlation Coefficient ( r ) as the statistical tool for this study is supported by the nature of
observed variables and the success of previous researches done by Shao and Huang, (2021), Mahfuz,
(2019) and Yusra and Agus, (2019).

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Chapter III
Results Presentation
Analysis/Evaluation
Interpretation
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Chapter IV
Discussion
Summary of Findings
Conclusion
Recommendation
Bibliography
Nur Amanina Idris, Mohamad Amiruddin Mohamad, Amir Manshoor, Norhaya Hanum
Mohamad, Haslina Che Ngah (2021) Consumers' Intention Towards Online Food Ordering and
Delivery Service; Jurnal Intelek Vol 6 Issue 2
Dsouza Prima Frederick,Ganesh Bhat.S (2021) REVIEW ON CUSTOMER PERCEPTION

TOWARDS ONLINE FOOD DELIVERY SERVICES; International Journal of Creative Research
Thoughts (IJCRT)
ANRI ICHIMURA (2021) Got Cravings? This Food Favorite Was Searched 6 Million Times on
GrabFood in 2020; Esquire Magazine
Trends Report Innovating for changing consumer needs the Philippines 2020-2021
Lynn Jasmine M. Tatoy, Jome Kenneth S. Senier , John Carlou B. Segura, Mr. Mario Luis
Jamoralin (2022) DEMOGRAPHIC ANALYSIS OF CUSTOMER PREFERENCE IN USING ONLINE
FOOD APPLICATIONS; International Journal of Management and Commerce Innovations
Vol. 10 Issue 1
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Mark Alvin V. Lazaro (2019) Customer Satisfaction on Online Delivery Service in Olongapo City;
International Journal of Academic Accounting, Finance & Management Research Vol. 3
Issue 7
Appendix
a. Web-based Survey Questionnaire

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b. Consent Letter
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Philippine School of Business Administration

1029 Aurora Boulevard, Quezon City

Online Food Delivery Service Quality

In Partial Fulfillment of the Requirements of

branch in San Mateo Rizal.

will arrive in your house or destination, still piping hot.

The development of internet technology, which makes e-commerce operations easier,

In the restaurant business, the accessibility of the industry to operate in a saturated

market is enabled by online delivery service technology to increase efficiency, strengthen

(Kedah, Ismail, Haque, & Ahmed, 2015; Yeo et al.)

account for % of all sales (Hirschberger et al. 2017).

gradual cannibalization (Morgan 2017 (Stanley).

The profitability of restaurants is diminishing as online delivery rises, despite the

accounts for a significant portion of their revenue.

influenced by additional elements including usability, navigational design, and performance

(Hedonic Motivation, Prior Online Purchase,

customer retention of Rodic’s dinner in the Philippines.

improvements on their current business process. We also intend to distinguish indicators of

customer retention of Rodic’s Diner. Customer retention is a reliable measurement of

performance, competitive advantage and success of business according to Qadri et al (2014).

management develop strategies to maximize beneficial practices and modify detrimental

Review of Related Literature

Customer retention is key in keeping a business such as a food enterprise, thrive.

to a new customer (Patel, N 2018).

CRM (Customer Relationship Management) results in satisfied customers, which in turn

and customer loyalty and customer profitability (Almohaimeed, B 2019).

profitability (Almohaimeed, B 2019).

Markey, & Hopton, 2000).

webpage intermediaries. Second, the idea of loyalty is that it is a sentimental manifestation of a

customer's desire to return and suggest products (Gursoy et al., 2014).

third strategy, a complementary loyalty is a behavioral and psychological mix.

colleagues' description, a customer's comprehensive evaluation of an electronic service's offers is

(2017), is essential to attracting and retaining customers.

As a result, maintaining a high-quality website is crucial for internet businesses to

enterprises. Studies on the quality of e-services generally concentrate on two issues:

fulfillment. It was developed in 2005 as a consequence of a significant study on the

dimensionality of e-service quality undertaken by Parasuraman and colleagues. In the wake of

with other characteristics.

to the atmosphere and service quality of restaurants

to online food delivery services.

The Mediation role of a Perceived Value

between online loyalty and the quality of e-services.

Unified Theory of Acceptance and Use of Technology 2 (2022)

is a combination of previous theories and models on technology acceptance and an improvement

e•PriceFigure 1. Unified Theory of Acceptance and Use of Technology 2 (2022)

Reichhelds Theory of Loyalty (1996)

employees and investors. Emphasis is made to elevate customer satisfaction by training

advantage through superior productivity.

continue to come back and order more.

Figure 2.0 Riechheld’s Loyalty effect

Input Process Output

1.3. Civil Status

2.4. Variety of Food Options

3.1. Build strong customer

3.2. Earning customer loyalty

3.3. Cos advantage thru

3.4. Finding right customers

Figure 3.0 Conceptual Framework

online food customers , it includes the discussion of research instruments, questionnaires as a

The conceptual framework will establish the association of various motivations of

purchasing of customers in relation to customer retention.

Statement of the Problem