SOUTHEAST UNIVERSITY

Consumer Behavior
Term Paper
On
Consumer behavior on online food delivery service

Submitted to:
Shayala yesmin
Lecturer
Southest Business School

Submitted By:
Most. Jinat Sultana Borna (2019110004035)

Submission Date: 29th sept 2020

 LETTER OF TRANSMITTAL

27th September, 2020

Shayala yesmin
Lecturer
Southest Business School

Subject: Submission of term paper on “Consumer behavior on online food delivery

service.”

Dear Miss,
Hope you are well by the grace of Almighty Allah. I’m extremely gratified and enthusiastic to
present a term paper on “Consumer behavior on online food delivery service.”

This report was assigned to me with a view to scrutinizing my skill and flamboyance when it
comes to consumer behavior. Moreover, the purpose of this term paper was to extract my inner
ability & enhance my consumer behavior related potentials.

I also want to thank you for your support and patience that you had for me. Your tiresome effort
helped me to go ahead with this sort of venture. Hope you will find the report in appropriate
manner. I’m looking forward to know your feedback.

Sincerely yours,
_________________
Most. Jinat Sultana Borna (2019110004035)
 Executive Summary

The main purposes of this study are examine the consumer behavior on online food delivery and
to analyze the factors that influences consumer behavior towards online food delivery service.
This study adopted preliminary research with primary data collected through a Questionnaire
with online food delivery platforms and customer based on their knowledge, attitudes,
Perspectives, and needs of online food delivery services. This study aims at the behavior of
customers towards online food delivery that are fast changing the food retailing landscape across
Bangladesh. Hence, the study focuses on exploring the drivers of consumer behavior towards
online food delivery apps.
 Table of Contents
1. Industry Overview:....................................................................................................................1
2. Project details:...........................................................................................................................2
2.1 Objectives of the report:.........................................................................................................2
2.1.1 General objective.............................................................................................................2
2.1.2 Specific objective............................................................................................................2
2.2 Information about the demographics of the sample...............................................................2
2.3 The brands people prefer most in this industry......................................................................3
2.4 Factors that have influenced them to purchase or order their preferred brands:....................3
2.5 Peoples re-purchase intention:...............................................................................................3
2.6 Satisfaction level towards the preferred brands:....................................................................3
3. Findings and Analysis:..............................................................................................................4
4. Recommendations:..................................................................................................................12
5. Conclusion:...............................................................................................................................12
6. References:...............................................................................................................................13
7. Appendix:.................................................................................................................................14
1. Industry Overview:
Online food delivery businesses are bringing tremendous change and convenience in the
Bangladeshi food-scene. People who enjoy fast food from the comfort of their homes; foregoing
worries about table etiquettes or about the jumbo burger falling apart and staining their satin
shirt; for them online food delivery is godsend. With just a few scrolls and clicks the craved
cuisine can now be delivered to an individual’s doorstep.
Service dimensions for online food delivery companies can be of two tiers. First came the
aggregators, who created an e-commerce platform which collected and routed orders from
customers to restaurants. The restaurants then handled the deliveries themselves. Meanwhile
another group of players having strong logistics network, invested in both collecting orders from
customers and providing delivery services on behalf of the restaurants. The restaurants for a
small commission get better market exposure resulting in increased sales and satisfied customers.

Local delivery services and ideas like Mahadeo Havaji Bachche’s ‘dabbawala’ were always there
but rise of digital technology is gradually reshaping the food business and customer experience
with food all over the globe.

Food-tech in Bangladesh has gained momentum within a short time mainly because of the
nation’s ever-increasing ease and inclination towards online purchases. HungryNaki and
Foodpanda both started operations in 2013 and remain the frontrunners in the Bangladeshi food-
scene.

Foodpanda Senior Executive Tasnim Zaman says,

“The challenges that we mostly face is that the people in our country still consider
ordering food online a foreign culture”. People are not yet familiar with the food delivery
services. She also notes that the mindset is changing with the passage of time.
Maintaining quality of delivery is also a big challenge for the sector, especially for those
who operate the business with freelance delivery persons, as per industry insiders.

Shohoz Marketing Director Shezami Khalil says,

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“Choosing the right delivery persons and ensuring their performance maintaining hygiene
are challenges for us”. Adding that the riders (delivery person) are crucial part of the food
delivery business. She also mentions maintaining balance between supply of foods and
their demand and having the restaurants in compliance with order management as other
challenges.

HungryNaki Deputy CEO Ibrahim thinks,

There should be a government policy for boosting online food business. HungryNaki is
constantly working to better their delivery service in forms of better packaging and swifter
deliveries.” But the challenges today include haphazard address systems, damaged roads and
perhaps the most damaging of all – unpredictable traffic.

2. Project details:
2.1 Objectives of the report:

2.1.1 General objective: The general or broad objective for this report is to prepare a term paper
for this course and gather the comparative information about online food delivery services in
Bangladesh.

2.1.2 Specific objective: The main purpose of the study is to analyze the consumer behavior on
the online food delivery services and the factors affecting on them. To attain the main objective,
the specific objectives of the study are as follows:

 To examine the consumer's behavior regarding online food delivery service.

 To analyze the factors that influence consumer's behavior towards online food delivery
service.

2.2 Information about the demographics of the sample:

The sample population for this research is taken from the university students. Most of them are
25-30 age group and some people are employed now from the total population. Total of 20
sample population taken for this research and both male and female students were participate in
this research survey.

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2.3 The brands people prefer most in this industry:

From my preliminary research this is shown that maximum people are like foodpanda for online
food because they are very renowned in the market now and they deliver fresh and quality foods
as expected from customers.

2.4 Factors that have influenced them to purchase or order their preferred brands:

There has some factors that influenced people more to purchase food in online and that was good
service, huge discounts and budget price for the food. This all factors are very important for the
people who are ordering online and most importantly it also shown that company like
hungrynaki is the underrated or people not buying more from them just because they could not
serving the foods as customers expectation thus we can say they could not meet with this
important factors that people are very much looking for.

2.5 Peoples re-purchase intention:

Research shown that peoples wants some specific values from online food purchase. If they got
that values like well services, fast delivery, excellent behave and rules then they will surely
repurchase foods form the same food brands.

2.6 Satisfaction level towards the preferred brands:

Research shown that maximum people are satisfied and some people are highly satisfied with
their preferred online food brands.

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3. Findings and Analysis:
The main objective of the research is to find out consumer's behavior regarding online food
delivery service and see the factors impact that influence consumer's behavior towards online
food delivery service.

This researcher conducted a survey on the topic “consumer's behavior on online food delivery
service” where there were 10 questions were framed to carry out the research and this survey is
made by the google survey research. The questionnaire consists of Likert scale (10 questions)
including multiple choice questions and a total of 20 respondents where in all of them were
correct and the questionnaire was designed such that there was no scope for error.

Question 1: Do you ever order food online?

The first question was does people ever use or order the food online. Here chart shows that
89.5% of sample people are using or ordering food in online and rest of the people are not ever
experience or used to with online food ordering. Hence, it can be interpreted that from our

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sample population most of them are using ordering the food online and this industry are growing
day by day.

Question 2: Which brand do you prefer most for online food orders?

The

second question was based on which brand do customer prefer for online food order and
according to the pie chart about 65% of respondents use foodpanda and other 35%% of
respondents prefer other brands like shohoz food, pathao food or very less amount of people like
others online food ordering brands. It can be interpreted that maybe customers trust foodpanda
because of their offers and efficient service hence it can be seen that foodpanda is the most
preferred online food order brands over other the other brands.

Question 3: How often do you order food online?

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The third question describes that how often people do order food in online and about 50% of
people said that they order once in a month and 5% people are ordering food every day in online.
Some other are ordering once a week or 2-3 times in a week. So it can be assumed that maximum
of our people still not interested or they are not suitable with this system for online food
ordering.

Question 4: Which one is a more flexible method for ordering?

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The fourth question talks about the flexible method for ordering the food where 90% people are
said they are preferred for ordering food through mobile apps and rest of the 10% people are
using ordering through website’s. So it can be assumed that mobile apps are more flexible and
easy to ordering food in a compact place.

Question 5: Food quality is as good as the expectation for all the food delivery brands.

Question five mentions about food quality serve by the online food brands. Majority of the
respondents has the mixed feelings about the food quality even only 10% people has strongly
agreed with the food quality as well as the taste that means food serving brands could not meet
with the customers expectation for the quality foods.

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Question 6: The food delivery time is very short for all the brands.

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Question six talks about the food delivery time for the maximum brands and there shows that
majority of people are said they are disagree with the fast delivery time. Very few people are
strongly agreed with the fast delivery and some other people are said its average for the delivery
time. That’s mean this industry should be more aware of delivery timing and its very crucial for
the customers to get the food early in most of the cases and in some of the times customer get to
rejected the order.

Question 7: Food pricing is very reasonable for all the brands.

The seventh question is about whether consumers find the cost of food affordable on every
orders and from the upper chart there shown the equal result about agree and disagree about the
food pricing and some people are found mixed feelings about it. So there can be assumed that
some brands are giving discounts or any other offers and others are giving comparatively less or
they are charge high price for their foods.

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Question 8: Discounts, coupons, and many offers are very frequent for all the brands.

The eight question talks about many offers and discounts offer by the online food brands and in
this case 35% are neutral 30% are agreed and 10% are strongly agreed with the frequent offers.
Though a bit people are disagreed with that but on average most of the brands are giving many
offers that’s why they can catch up more customers for food ordering.

Question 9: Which factors are influenced you more to order your preferred brands?

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The ninth questions mentions about some factors that actually has some impacts on the food
ordering from the preferred brand. So in the chart we can see there 2 of the factors among all got
many votes. Budget pricing and good service people are looking for more. So people are
generally wants this 2 things more than other factors. That’s mean this 2 factors are influenced
more on the people’s behavior on online food ordering.

Question 10: How much you are satisfied with your preferred brands.

The last question is about the satisfaction with people’s preferred brands. We can see from the
upper chart that equal percentage of people are moderate (36.8%) and somewhat (36.8%) agree
with the satisfaction with their preferred food brands and some people are really very happy on
their preferred food brands. Here we can assume that some brans are not giving all the facilities
or advantage completely that’s why people are getting somewhat worried about them.

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Major Findings of The Report Are as Follows:

The best part about conducting this survey was that all the respondents had different answers to
the questions that were asked of them and what was their point of view or own perception when
they use food ordering in online. Another highlight of carrying out the questionnaire was, with
the increase of flexibility of using technology on online food ordering are playing an important
role in shaping the food industry as well as customer behavior and food ordering from mobile
apps have become a huge trend overall in the world and irrespective of age group, income group
or demographic location or customers segmentation, there is daily usage of the same.
The limitation I found was that the number of people who have taken the survey was not as vast
as expected about the online food industry service.

From the research main objectives with data analysis it can be concluded:
Research objectives/questions Findings or observation

To understand better analysis of consumer

behavior of online food delivery, the primary
data states that, maximum people are prefer
What is the consumer's behavior regarding
foodpanda for food ordering than other food
online food delivery service?
brands rather than from websites ordering they
prefer mobile apps for more convenience.

However from the primary research, factors

like budget pricing, good service and more
discounts are vital factors for consumer
What are the factors that have influenced
behavior towards online food delivery. Maybe
consumer's behavior towards online food
delivery service? people things these small factors are very
important in determining their behavior or
perception on online food delivery.

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4. Recommendations:

1. Many of the frequent customer’s on online food delivery they are very much concern about
the quality & hygiene of food so this should be check out very carefully for food delivery
companies.

2. People are giving more priority to foodpanda because of their full side quality and for the
other brands they need to do more research for their quality and gather more customers.

3. Government should be subsidized more on this industry for more flexibility on food delivery.

4. Besides mobile apps it’s needed to make the websites more convenient and user friendly.

5. Need to huge improvement in the fast delivery and reducing price a bit more as it’s seen that
more of the sample people are not happy with this two segment.

6. Technology forthcomingness and a good marketing needed for more orders for all the online
food brands.

5. Conclusion:

The research shows that there is going to be a huge demand for online food delivery in the
coming future. People use mobile applications to ordering food to them not only because it saves
on time, but it is convenient. Also, they have a feeling of control over technology as they can
order food that they want, right at the place they want. Also, people experienced the satisfaction
of using mobile technology and having the in formativeness at the fingertips.
Finally to be conclude this research on customer’s behavior on online food delivery, it is thus
inferred that a majority of people use online food order as it’s the best flexible way to save time
and is convenient. Among the respondents, most of the people preferred food delivery brand like
foodpanda, and cash on delivery is the safest and most secure form of payment. The study also
states that majority of age and income groups students use online food ordering, and most of

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them are happy with the service quality, hygiene, and packaging system with their preferred
brand company.

6. References:

http://thebestbangladesh.com/food-home-delivery-apps-in-bangladesh/
https://www.dhakatribune.com/business/2019/05/26/meteoric-rise-of-online-food-business
https://idlc.com/mbr/article.php?id=70
https://www.dhakatribune.com/business/2019/03/12/shohoz-launches-food-delivery-service
https://www.google.com/imgres?imgurl=https%3A%2F%2Fi.pinimg.com%2Foriginals
%2F56%2F87%2F14%2F568714f94e6d10511debdfe88be8791a.png&imgrefurl=https%3A%2F
%2Fwww.pinterest.com%2Fpin
%2F530369293608832514%2F&tbnid=JbBBhDkF51y7bM&vet=12ahUKEwi-
oK_C39TlAhXBWo8KHb7SBrgQMygLegUIARDpAQ..i&docid=iVR7dde2JlUCwM&w=700
&h=770&q=payment%20method%20for%20food%20delivery%20in
%20foodpanda&ved=2ahUKEwi-oK_C39TlAhXBWo8KHb7SBrgQMygLegUIARDpAQ

Alagoz, S. and Hekimoglu, H. (2012). A Study on Tam: Analysis of Customer Attitudes in Online
Food Ordering System. Procedia - Social and Behavioral Sciences, 62, pp.1138-1143.

Apuke, O. (2017). Quantitative Research Methods : A Synopsis Approach. Kuwait Chapter of

Arabian Journal of Business and Management Review, 6(11), pp.40-47.

Ary, D., Jacobs, L. and Sorensen, C. (2010). Introduction to research in education. 8th ed.
Belment: Wadsworth Cengage Learning.

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7. Appendix:
Survey questionnaire: (via google forms)

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People responses:

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