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Group 15 - THESIS PROPOSAL
Group 15 - THESIS PROPOSAL
INTRODUCTION
20, 2022 as indicated in Worldometer (April 20, 2022). The numerous number of infected
Magkilat (July 2020) of Manila Bulletin, there is about 26 percent of businesses in the
Philippines have closed when the pandemic hit the country. Due to this problem, businesses
are pushed to welcome new approach and strategies especially in food industry. Food
industries are one of the most affected areas by the pandemic due to the numerous lockdowns
and strict health protocols and guidelines imposed by the government. The threat of the virus
continues to prevent millions of people from going out of their houses and visit their favorite
restaurant. This very reason welcomes the proliferation of food delivery services. It began
since the COVID- 19 pandemic spread around the world. The country has no exception with
the changes happening in the society wherein almost everything can be done through online
or with the use of mobile phone. The eagerness of people to get out and get back to their
former way of life has opened up opportunities for food delivery services to take advantage
of the situation and get closer to their consumer in just one click.
There are thousands of online food delivery services here in the Philippines and some
of the famous online food delivery application as mentioned by MattsCraddle (June 6, 2021)
in his blog are the Lalafood, Food Panda, Grab Food, and Zomato Ph. Through these food
delivery applications, it is much easier to buy food from different restaurants that offer
different cuisines where the food will be delivered directly to the front door of the consumers.
The growth of food delivery services is affected by the constant change in the consumer’s
The emergence of online food delivery services during the pandemic created a major
change not only to the business but also to the economy of our country. The proliferation of
food delivery services in the Philippines cause a change in the lifestyle of the consumers. As
the demand for these services increases, the perceived risk of using it also increases. These
perceived risk as defined by H. Bhasin (July 17, 2018) has an important role in the buying
pattern of consumer behavior. The consumer can learn which phase in the buying process has
the highest risk, and how to avoid it, using perceived theories. This process also builds
consumer confidence, lessening the risk of knowing that the danger arbitrates to the
sensation. Perceived risk have different factors that affect the consumer’s intention use of
food delivery services. K. Leonard (January 25, 2019) stated the five factors of perceived risk
that influence the purchasing behavior of the consumers which are the: functional risk,
perceived financial risk; social risk; wasted time risk; and the physical harm risk of the
product to the consumers. People buy things to solve a problem or to fill a need. Consumers'
fears and doubts about a product's ability to perform its intended purpose are examples of
functional perceived risk. Another type of risk is the perceived financial risk, wherein the
customer think that they might be wasting money on a certain product or service. They wanted to
feel compelled to use the products they paid for to avoid the feeling that they wasted their money.
The consumer’s fear or uncertainty that the acquisition of the thing under consideration will not be
approved by other people surrounding them, this is what we called the social risk. Many
consumers tend to consider different social groups such as their peers, family, and institution
in their decision making and seek validation if the purchase of a product will be acceptable
for these group of people. People dislike wasting their time almost as much as they dislike
spending their money. The perceived time risk is the time spent purchasing a thing, learning
how to use it, and putting it together. The time consumed in the waiting and delivering food
delivery services is one of the risk affecting the purchase intention of the consumers. Lastly,
the physical harm risk which is merely the fear that a product will be unsafe and may cause
harm or injury to the consumer or others. This risk includes the food sanitation and safety that
will be delivered to the consumers. The perceived risks connected with corporate operations
and strategies must be considered by business owners. When customers acquire a product or
recognized the issues that the consumers are concerned about to address it properly.
According to the blog of K. Molenaar (May 3, 2022) as she cited from a survey
conducted by Clutch, over half of younger millennials (48 percent) want to spend more
money in 2021, particularly in the first half, than they did the previous year. The higher
expense is being justified by the need to compensate for lost time and the lifting of pandemic-
related protocols and guidelines. Millennials becomes a huge fan of food delivery services
application. The report of CTV News (January 26, 2019) stated that six (6) out of ten (10)
millennials are ordering through food delivery services. These people belong to the ages of
26 to 40 years old. Millennials are bringing their consumer buying behavior and expectations
recommendations, and other factors influence the Millennial buyer's purchasing decision. The
increasing demand of food delivery services, make a change of how millennials change their
Consumers make decisions about which items and services to buy, and how to utilize
them on a regular basis. The market trend in food industry changes as the consumer’s
decision also change. These decisions have significant implications not only for consumers,
but also for policymakers and marketers. These are frequently challenging choices.
Consumers are frequently confronted with a variety of options that are continually changing
Although there are studies regarding to food industries, there are only few of them
that focus with the perceived risk and intention use of millennials in the proliferation of
online food delivery services. That is why this study has the purpose of adding relevant
studies about the proliferation of online food delivery services and it’s the perceived risk that
affects the intention use of the consumers. This research aims to determine which factors
have the most impact on the proliferation of food delivery services; to gather relevant data,
This study aims to determine the relationship between perceived risk and intention to use
a. Age
b. Gender
c. Income
2. What is the perceived risk in using online food delivery services in terms of:
a. Financial Risk
b. Time Risk
c. Functional Risk
d. Social Risk
e. Safety Risk
3. What are the factors affecting the intention use of consumers in terms of:
a. Belief
b. Attitude
c. Normative Believes
d. Subjective Norms
4. Is there a significant relationship between perceived risk and intention use of selected
The primary goal of this research is to determine what variable affects the
proliferation of online food delivery services. The researchers will need to collect relevant
purchasing decisions, and the importance of purchasing decisions to food delivery services, to
determine how the intention use and perceived risk of the consumers affect the proliferation
Specifically, this research intends to find out and assess the following:
d. Age
e. Gender
f. Income
2. To determine the perceived risk in using online food delivery services in terms of:
f. Financial Risk
g. Time Risk
h. Functional Risk
i. Social Risk
j. Safety Risk
3. To discover the factors affecting the intention use of consumers in terms of:
e. Belief
f. Attitude
g. Normative Believes
h. Subjective Norms
4. To investigate the significant relationship between perceived risk and intention use of
Institution. This study aims to give the institution and serve as a reference for the course and
subjects that relevant topics to the proliferation of online food delivery services and the
factors affecting its booming. In addition, this study will discuss on how perceived risk
factors will affect the intention of the consumers to purchase or pay for a service such as food
delivery services.
Organization. This study may be use as a reference on how business organizations will
better understand the effects of the perceived risks and its factors that affects the intention use
of consumers about the proliferation of online food delivery services. This will provide
relevant knowledge and understanding about the changes in the behavior of consumers in
Ecommerce Business. This study contains relevant knowledge, theories, and data that the E-
businesses can use as a reference in establishing or improving their business operation. The
data gathered in this study might help the business to approach their targeted consumer’s as
this study discuss how different perceived risk factors influence the intention use of the
consumers.
Future researchers. The gathered data and knowledge from this research will benefits the
future researchers as it provides relevant and timely information that they can use as a
reference in the research that they will conduct. Moreover, this study consists of an integrated
study that focuses on how perceived risk factors affect consumers’ intention use of online
food delivery services and what consumer characteristics are affected by it.
Time and Place of the Study
The study was conducted from February 2022 to June 2022. The researchers gathered
information and data from the respondents of selected millennials in Silang Cavite
This study concentrates on the perceived risk factors that affects the intention use of
online food delivery services in Cavite. The study primarily focusses on the proliferation of
online food delivery services and the perceived risk such as the functional risk, financial risk,
social risk, wasted time risk, and the physical harm risk that might affect the intention use of
the consumers in terms of attitude, subjective norm, and the perceived behavioral control.
This will also determine the significance and relationship of the perceived risk factors and the
intention use of the service to the proliferation of online food delivery services in Silang,
Cavite.
Limitation
The study was conducted to know the perceived risk and intention use of the
consumers that results to the proliferation of online food delivery services with the selected
municipality of Tagaytay that have a wide range of classification when it comes to food
Definition of Terms
1. Perceived Risk- is the level of uncertainty they have. When a customer considers
purchasing a product, he or she has some reservations and consider different factors
that include the fear and or doubt a consumer has that the product they are buying will
will approve and support a certain behavior. Subjective norms are established by an
individual's motivation to conform with others' views and their perception of social
5. Intention Use- the extent to which a person has made intentional plans to engage in
or refrain from engaging in a specific future behavior. This describes a user's desire to
6. Online food delivery service- The process of ordering meals for delivery or pickup
from a website or other application. Food that is ready to consume or food that has not
8. Millennials- also known as Generation Y or Gen Y, are the people who are born
between 1990s up to early 2000s. These group of people have more access of using
internet and social media platforms. Millennials are particular about their nutrient
intake and tastes. This generation of consumers indicate a more conscious buying and
Theoretical Framework
The Theory of Reasoned Action (TRA) is a model that finds its origins in the field of
social psychology. This model developed by Fishbein and Ajzen (1975) defines the links
between beliefs, attitudes, norms, intentions, and behaviors of individuals. According to this
model, a person’s behavior is determined by its behavioral intention to perform it. This
intention is itself determined by the person’s attitudes and his subjective norms towards the
behavior. Fishbein and Ajzen (1975, p. 302) define the subjective norms as “the person’s
perception that most people who are important to him think he should or should not perform
consequences. Beliefs are defined by the person’s subjective probability that performing a
particular behavior will produce specific results. This model therefore suggests that external
stimuli influence attitudes by modifying the structure of the person’s beliefs. Moreover,
behavioral intention is also determined by the subjective norms that are themselves
determined by the normative beliefs of an individual and by his motivation to comply to the
norms.
indirect way by influencing the attitude or subjective norms. Fishbein and Ajzen (1975) refer
to these factors as being external variables. These variables can be for example, the
characteristics of the tasks, of the interface or of the user, the type of development
implementation, the political influences, the organizational structure, etc. (Davis, Bagozzi
and Warshaw, on 1989). A meta-analysis on the application of the theory of reasoned action
showed that the model can produce good predictions of choices made by an individual when
the Theory of reasoned action. According to the author, the need for this new model results
from limitations on behaviors on which people had little control. Ajzen added therefore a
third element to his model, which according to him has an influence on a person’s intention
opportunities as well as the person’s own perception towards the importance of achieving the
results. The concept of Perceived Behavioral Control is close to the concept of self-
efficacy of Bandura ( 1982 ).The latter explains that beliefs of an individual concerning his
self-efficacy can have an influence on his choice of activities, his preparation for the activity
and finally on the effort that he will exert during the activity in question. Therefore, if for
example two individuals have the strong intention to learn a new language, the one who
thinks that he will succeed in mastering it, is the one who will tend to persevere more than the
behavioral control) to demonstrate the direct influence that they have on the behavioral
intention. The behavioral intention in turn influences the behavior. The figure below
Taylor and Todd (1995) made a research on the theory of planned action in the
specific context of new technologies. The authors used existing literature in order to identify
antecedents of attitude, subjective norms and perception of control. Their results show that
factors that determine attitude are perceived utility, perceived ease of use and compatibility.
As for subjective norms, it seemed that the influence of peers and superiors had the greatest
impact. Finally, self-efficacy and positive conditions such as available resources and
This figure shows how the factors of perceived risk such as functional risk, financial
risk, wasted time risk, social risk, and safety risk that might affect to the intention use of the
consumers. In this framework, it can clearly have classified that the perceive risk factors are
use includes the attitude, subjective norms, and perceived behavior control of the consumers
in purchasing a product and/or services. On the contrary, intention use variables are the
dependent variables since it changes according to the independent variables that influence it.
This conceptual framework will be the basis on determining how perceived risk and intention
use affect the proliferation of online food delivery services in selected millennials on Silang,
Cavite.
as well as published and unpublished relevant studies. The researchers look for relevant
studies and literature to determine how perceived risk and intention use affects the
proliferation of online food delivery services in accordance to the gathered literatures. The
related literature will justify the purpose and value of this research.
Since the pandemic, people all across the world have relied on food delivery, making
it one of the crucial services. In the country, this service includes anything from fast food
takeout to delivering goods to the consumer’s house to stock in their pantry. It keeps
individuals protected from COVID-19 outside while also assisting new breeds of food
entrepreneurs with their latest ventures. According to J. Legazpi (April 26,2021) of Manila
Bulletin, the Philippines' food delivery business has risen to $1.2 billion in gross merchandise
value (GMV) by the end of 2020, with the overall food delivery sector in Southeast Asia
(SEA) experiencing an exponential 183 percent increase. Food delivery in Southeast Asia is
expected to reach $11.9 billion in GMV in 2020, according to a report by venture financing
firm Momentum Works. This is significantly more than the $4.2 billion industry forecast for
2019 and the $2.2 billion total for 2018. Momentum Works' GMV forecast for 2020 is based
on on-the-ground data from restaurants, delivery fleets, and other stakeholders. As per A.
Marasigan (November 7, 2021), last year, the food delivery industry made P55 billion in
gross sales. Filipinos order one-third of their meals from restaurants, while the other two-
thirds are prepared at home. Fifty percent of consumers base their meal choices on what they
see on the app. Subscriptions to food delivery aggregators like Grab Food and Food Panda
have surged by 61% in the last year, which is unsurprising. Given their household
Lavu (2022) stated in their page that more than half of all customer orders are now
delivered directly from restaurants' apps or websites, thanks to the advancements in the food
delivery industry. Restaurants and other food businesses are currently using various methods
to handle digital ordering and delivery of food. While some people do it on their own through
independent channels, third-party platforms like Uber Eats and Delivery Hero have grown in
popularity. Hybrid delivery platforms are also gaining market share and changing the way
food is served. The rise of digital technology has changed the market and transformed the
food delivery process. Customers are now placing orders through restaurant apps and
websites rather than visiting to the restaurant. Restaurants, on their part, ensure that their
offerings are transparent and convenient. The restaurant then fulfills the order by ensuring
Grab (September 3, 2021) said that while the COVID-19 pandemic has hastened the
adoption of food delivery services in Southeast Asia, a growing appreciation for these
services will help to their long-term expansion. 78 percent of consumers in the region used
the service once or more per week between October 2020 and March 2021. Even if COVID-
19 limits are eased, nearly nine out of ten consumers (87%) estimate their usage to remain the
same or increase. Food delivery's convenience was the primary reason for its continued and
growing use after the outbreak. In addition, Statista Research Department (February 9, 2022)
cited from Rakuten Insight survey on food services and cloud kitchen performed in August
23, 2021 percent of Filipino respondents used food delivery apps once or twice a week. Food
Panda and Grab Food were the most popular food delivery apps among Filipinos, according
Perceived Risk
Consumer behavior is a risk in the sense that every action taken by a consumer will
have effects that he cannot predict with any degree of accuracy, and at least some of them are
service, financial losses, privacy invasion, product or service delivery failure, anxiety,
discomfort, or wasted time. The greater the sense of negative outcomes among consumers,
the less likely they are to purchase. As a result, increasing consumer confidence and reducing
risk influences their purchasing intention. Perceived risk, as defined by M G. Suárez (2016),
is the consumers’ level of uncertainty regarding the outcome of a purchase decision. While
H.J.Paek and T. Hove (March 27, 2017) describe perceived risk as the subjective judgement
of people about the negative effects that might happen during and after the purchase of a
goods or services.
K. Leonard (January 25, 2019) explained that the perceived risks connected with
corporate operations and strategies must be considered by business leaders. When customers
acquire a product or service from your firm, they experience perceived risk as uncertainty.
Functional Risk
Liang, X.B., Li, J.J and Xu, Z. (2018) cited from Khedmatgozar & Shahnazi (2017)
defined functional or performance risk as the consumer’s perception that the product or
service may fail to meet their requirements. To put it in another way, it refers to the
possibility of bad performance of the product or service in way that cannot satisfy the
claimed benefits or facilities. Fear and/or doubt that the thing that the consumers are buying
will fail to perform its intended function are examples of perceived risks. The consumer may
be concerned that if they purchase a car, the engine or other components will fail. When a
new consumer purchases a certain product or service, they are likely to have no prior
knowledge of how it works. This is especially true when it comes to new products entering
Financial Risk
maintenance costs as the result of purchasing (Khedmatgozar & Shahnazi, 2017). Consumers
are concerned that a purchase will take away their current or future income sources. K.W.
Tham, O. Dastane, and Z. Johari (2019) stated that financial risk plays a crucial factor in
deciding whether or not to make a purchase when shopping online. This is because financial
concerns have become a threat, resulting in negative perceptions and influencing consumer
behavior.
Social Risk
Social Risk is a factor of perceived risk is linked to the chance of an institution's status in a
social group being jeopardized using an obviously foolish product or service. L. Lake
(January 14, 2019) defined social risk as a form of danger concerns a customer's social
standing. When a person belongs to a high or wealthy social class, they desire to buy things
Safety Risk
It generally refers to hazards to the health or appearance of consumers and physical
exhaustion and mental capacity devoted to the purchase (Hall & Royles, 2018)
Wasted time risk is a type of perceived factor that commonly seen and experience in
purchasing a service.
Intention Use
Traditional business has changed throughout time. The pandemic of Covid-19 has
changed everything, and it has impacted every industry. People were on high alert as a result
of the worldwide crisis, and the majority of them avoided contact with others. Technology
has transformed the globe in the new era, particularly in this new norm. A new phenomena
created by modernizing human behavior, making it easy for people to go from waking up in
the morning to acquiring job and providing sustenance. Small eateries and businesses are also
impacted by the covid-19 outbreak and lockdown. N. Ramli, F. A. Ghani, W.N. Nawawi, and
H. A. Majid (January 24, 2021) said that Throughout the outbreak and in the aftermath Small
businesses and eateries have closed. COVID-19 has forced a temporary closure until a
permanent closure is unavoidable. According to Poon, W.C. and Tung, S.E.H. (2022), as
cited from Rodríguez-López et al.(2020) a long-held belief is that individuals tend to avoid
discomfort or pain while seeking pleasure or happiness. Many, if not all, of our decisions are
bias towards pursuing happiness or avoiding unhappiness. Emotions play a significant role in
employee relationship, virtual reality simulation, aromas and service failures influence their
satisfaction and intention. The likelihood of consumers purchasing things is referred to as
purchase intention. The stronger the purchase intention, the higher the likelihood.
Understanding customers' purchasing intents can assist businesses in analyzing the market
and adjusting their products or services to enhance sales and profitability. There are variables
under the intention use of the consumers including: the attitude, subjective norms, and the
Attitude, as explained by H.S. Chen, C.H. Liang, S.Y. Liao and H.Y. Kuo (6 December
2020), is the totality of a person's "behavioral beliefs" and "outcome assessments," where
"behavioral beliefs" refers to the assumption that particular outcomes can be obtained by
outcomes of his or her actions. That is, a larger conviction in an activity's outcome enhances
H.S. Chen, C.H. Liang, S.Y. Liao and H.Y. Kuo (6 December 2020) explain that subjective
norms are shaped by perceived social pressure from others, such as family, friends, and
such as influences from those deemed important by users, might influence their acceptance
intentions (e.g., family, friends). Consumers' utilitarian and hedonic value toward items will
image, and work relevance were drivers of ease of use, which is a factor in utilitarian value.
using the service. Repeat purchase intentions are influenced by customer attitudes, emotion
regulation, and subjective norms emphasized the importance of subjective standards and
Chen, C.H. Liang, S.Y. Liao and H.Y. Kuo (6 December 2020) describe it as the ease with which a
difficulty of carrying out a specific action External influences will have a subjective impact;
that is, individuals will be hampered by previous experiences or expectations, which include
perceptions of their consuming behavior will influence their risk assessment and preferences
METHODOLOGY
This part of the study will describe the methods and procedures used to collect the
data needed to address the study's problem. These include the research design, sources of
Research Design
This study will use a descriptive-correlational in order to determine the significance of the
factors of perceived risk and the intention use of selected millennials. Aside from the
relationship of these variables, the researchers will further discuss how these variables affect
correlation. A descriptive research design is a type of research design that aims to gather data
in order to characterize a phenomenon, situation, or population in a methodical manner .
Specifically, it helps the researchers to answer the what, when, where, and how questions
regarding the proliferation of online food delivery services in Silang, Cavite. The variables
are just recognized, observed, and measured using this method. While correlational research
requiring the researcher to control or manipulate any of them. This research design will help
the researchers identify the relationship of perceived risk and intention use of millennials in
using online food delivery services. It also be used to determine if these factors affect the
proliferation of food delivery services in Silang, Cavite. Correlational research is helpful for
swiftly collecting data in natural situations. This allows the researchers to apply their findings
HO1: There is a significant relationship between the perceived risk factors of selected
HO2: There is a significant relationship between the perceived risk factors and the intention
HO3: There is a significant relationship between the intention use of selected millennials and
Sources of Data
The researchers will use a sequence of primary and secondary data to support the
study. The researchers will send survey forms through Google Forms as primary data. The
secondary data used in this research are from related studies, articles, and blog with the same
topic discussed. The literatures used in this research are retrieved from the year 2017 up to
present.
Sampling Technique
The researchers will use simple random sampling technique as a sampling technique
in selecting the millennials that will be the respondents for the study that will represent the
whole population of millennials in Silang, Cavite. This technique is one of the best and a
The researchers will maximize the use of internet by using Google Forms containing
the survey questionnaires that is formulated carefully in order to answer the statement of the
problems and achieve the objectives of this research. The survey forms will be given on a
specific duration of date until the researchers reach the targeted number of respondents.
The researchers will include the Republic Act No. 10173, also known as the Data Privacy Act
to the Google Forms to ensure the respondents that all the information gathered will be
secured and will only be use for the purpose of the research.
Research Instrument
The researchers will use Google Forms in disseminating the formulated
questionnaires in order to gather the needed information for this study. The survey forms will
The survey forms will be divided into two parts. The first part contains questions that
will help the researchers to determine the socio-demographic profile of the targeted
respondents. This questions includes the age, gender, and the income of the respondents.
While the second part of the survey includes question that will help the researchers discover
the perceived risk factors and how it affects the intention use of the millennials in online food
delivery services, and how these factors affects the proliferation of food delivery services in
Silang, Cavite. The participants can choose from the options presented in the form whether
they; strongly agree, agree, neither agree or disagree, disagree and strongly disagree.
Statistical Treatment
The researcher will use the frequency and percentage in presenting the socio demographic of
the participants, this includes the age, gender, and the income. A percentage frequency
distribution is a visual representation of data that shows the number of observations for each
data point or cluster of data points. It's a great way to express the relative frequency of survey
replies and other information. According to the Statistics Canada (n.d) the frequency (f) of a
given value refers to how many times it appears in the data. The pattern of frequencies
associated with a variable's distribution is the set of all conceivable values and the
frequencies associated with these values. Frequency tables or charts are used to represent
frequency distributions.
Data are grouped around the mean when the standard deviation is low, while data are more
where:
M. Hargrave (March 12, 2022) of Investopedia stated that the standard deviation is a
statistic that calculates the square root of the variance and measures the dispersion of a
dataset relative to its mean. By calculating each data point's divergence from the mean, the
There is a bigger variance within the data set if the data points are further from the
mean; consequently, the more spread out the data, the higher the standard deviation.
While, mean of a dataset represents the average value of the dataset. It gives the
researchers and the statistician an idea of where the “center” of a dataset is located. Laerd
Statistics (n.d) enumerates the purpose of using mean in statistics and one of its key features
is that it reduces the amount of inaccuracy in predicting any single number in your data set.
That is, it is the value in the data set that creates the least amount of error when compared to
all other values. Aside from this, one of the most essential properties of the mean is that it
calculates every value in your data collection. The mean is also the only measure of central
tendency in which the total of each value's departures from the mean is always zero.
Pearson’s Correlation
The test statistic Pearson's correlation coefficient assesses the statistical link, or
covariance, it is known as the best method for quantifying the relationship between variables
of interest. It provides information about the amount of the link, or correlation, as well as the
relationship's direction.
variables and their affiliation with one another. Pearson's correlation coefficient calculates the
influence of a change in one variable on the effect of a change in the other variable.
The correlation coefficient formula finds out the relation between the variables. It returns the
values between -1 and 1. Use the below Pearson coefficient correlation calculator to
measure the strength of two variables.
Where:
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