With the rapidly increasing smartphone penetration and wider and wider internet coverage in Thailand, online food ordering is becoming an increasingly popular lifestyle for people in this era. Online food delivery is considered one of the most promising markets in Thailand, but it is still in the early stage along with lots of challenges and difficulties. However, in Thailand, it is believed that online food delivery business is still in the early stage and has a lot of potential to grow.
However, compared to traditional catering, online food delivery in Thailand has not been successful and its market is still in the early stage.
Scope of the Study
Research Questions
Objectives of Research
Anticipated Benefits of the Study
Structure of Research
After that, Excel and SPSS software will be used as a tool to filter, classify and analyze the collected data, and the dominant factors influencing people in Bangkok to order food online will be found out in this section. Finally, the recommendations will be advised based on the results to properly promote the O2O food delivery service in Thailand.
LITERATURE REVIEW
Overview of O2O Food Delivery Service
- Definition of O2O
- Definition of O2O food delivery service
- Current situation and development trend of online food service in Thailand
Since we have already given the definition of O2O in the previous section, we can now easily recognize what an O2O food delivery service is. In other words, the online catering service is provided through a platform with its own or third-party logistics. Currently, in addition to restaurants that have their own platform to provide online food delivery service to their customers with or without delivery charges, such as KFC, McDonald, Pizza Hut, Pizza Company, OOTOYA, S&P, etc., there are several online food delivery companies that are has signed up with hundreds of restaurants as a third-party platform to provide users with a wide range of kitchen options, especially five leading companies: Food Panda, Line Man, UberEats, Ginja and ChefsXP.
It shows that the online food delivery service is attracting many people to invest because of its huge business opportunities in this context, while it shows the fierce and strict competition in this industry.
Definition and description on Each Key Factor
- Perceived quality
- Perceived value
- Perceived risk
- Customer loyalty
- Repeat purchase intention
I believe that the information provided about the products or services on the food delivery platform is reliable. I believe that merchants on the food delivery platform provide fresh, hygienic and delicious food and beverages. I am concerned that the products (food and beverages) offered are not consistent with what is described on the food delivery platform.
I am afraid that the services offered (including online platform and food delivery) are not consistent with what is described on the food delivery platform.
RESEARCH METHODOLOGY
Data Collection
Research hypotheses and structural model
Several factors were replaced to explore the relationships between factors affecting the repeat purchase intention of people in Bangkok to order food through the online platform. Based on the main factors mentioned in the previous section, the general customers who make future intentions to order food through the online platform are usually related to three factors, which are perceived quality, perceived value and perceived risk gained. from the past to the online food-ordering experience. H1: Perceived service quality of the online platform and the product and service of merchants has a positive relationship with customer loyalty.
H4: Perceived quality of both online platform service and sellers' product and service has a positive relationship with customers' repeat purchase intention.
DATA ANALYSIS
Basic Demographic Information of Respondents
Research findings
- Gender (Appendix D)
- Nationality (Appendix E)
- Age (Appendix F)
- Education (Appendix G)
- Monthly income (Appendix H)
Furthermore, with regard to repeat purchase intention, the Group 4 population falls into the lower level of agreement on the RPI2 metric than both Group 2 and Group 3, and also lower on the RPI3 metric than Group 2. Group 2 is also agree less with the PQ8 measure than Group 3 and Group 5. However, in terms of perceived value, the population of Group 6, which has a higher income, agrees with the statements of PV1 and PV2 at a lower level than both. the Group 3 and the Group 4.
Moreover, Group 1 also agrees with the statements of PV2 and PV3 at a lower level than Group 4.
CONCLUSION AND RECOMMENDATIONS
Summary
Fourth, perceived quality and perceived value are positively related to repeat purchase intention, but perceived online platform service quality is at the strongest level among them. In terms of gender, men and women have different needs in terms of lifestyle and standard, which can lead to different choices and perceptions. For example, women are more satisfied with perceived quality (measures PQ5, PQ6, PQ7 and PQ12) and perceived value (measure PV3) than men.
And also women tend to be more loyal to their preferred platform and have a greater intention to continuously order food online in the future than men. The results indicate that, from the perspective of expatriates, they are less satisfied with the performance of online food platform in terms of quality, value and risk offered than Thai customers, and also have less loyalty and less intention to repeat food online than Thai customers. From this study, it indicates that, roughly, the population who are between 31-40 years old feel more satisfied on demand regarding both quality and value of online food platform and have higher intention to repeat food online than the populations of other groups.
Regarding education, the result indicates that only three measures (PQ8, PQ11 and CL3) show significant differences in terms of education. To some extent, the population with an education level of a bachelor's degree or higher tends to be more satisfied with the quality of merchants' products and services than the population with an education level of high school or less. In terms of perceived quality, the pattern tends to be that people with higher incomes are more satisfied with the quality of the product or service provided by sellers.
In addition, the group with a middle income of Baht per month is more satisfied with the value they received from the online food platform than others. And groups of people who have a monthly income ranging from 15,001 to 35,000 baht have a higher intention to repeat ordering food online than people whose monthly income is 15,000 baht or less.
Recommendation
Since time is of the essence for food delivery, it is suggested that online food platforms set the optimal waiting time and closely monitor the delivery service, especially in terms of delivery speed and quality. We suggest that online food platforms improve the platform's security system to reduce customers' perceived risks. For example, all online food platforms can create a common community or organization that reports on the actions taken and the achievements they are making to improve safety in order to showcase the efforts of this industry.
And this organization can also report some remedial measures that they take after the privacy is leaked. Since the quality of the merchants' products and services is a very critical factor affecting customer satisfaction and repeat purchase intentions, online food platforms should be stricter on business records and conduct spot checks on quality from time to time. Meanwhile, customers' review and credit rating can be included in the selection criteria for traders in long-term cooperation.
The platform can terminate the contract with merchants who perform terribly, but reward and build long-term relationships with merchants who perform very well. Platforms are suggested to improve the customer complaint system by setting up the complaint center area on their website and app, and the customer service center should take immediate action to deal with user complaints and feedback. For example, since the results show that customers who are between 31-40 years old have relatively higher intention to repeat ordering food online (perhaps because they are busy with work), platforms can try to stimulate more customers among of this population to accept online food ordering by launching publicity events in some office buildings and advertising in some public transport in order to drive more traffic to the platforms.
In addition, to maintain customer loyalty, it is suggested that each platform capitalize on the willingness of its customers to have a long-term relationship with the brand and retain old customers by using a loyalty program, e.g.
Limitations
APPENDICES
Appendix A: Questionnaire
แบบสอบถามนี้ใชเวลาประมาณ 5 นาที ในการตอบ
เพื่อเปนของขวัญขอบคุณ
Strongly Disagree/
ไมเห็นดวย อยางยิ่ง
Disagree/
ไมเห็น ดวย
Neutral/
เปน กลาง
Agree/
เห็น ดวย
Strongly Agree/
เห็นดวย อยางยิ่ง
จากประสบการณการสั่งซื้ออาหารออนไลน
I believe that the merchants (sellers) on the food delivery platform provide fresh, hygienic and tasty food and beverages./. I believe that the food delivery facilities are advanced and modern enough to ensure that the process of food distribution runs smoothly./. Compared to what I got from the food delivery platform, I feel that the amount I paid is worth it./.
Compared to what I was provided by the food delivery platform, I see that the time I spent is worth it./. Compared to what I was provided by the food delivery platform, I see that the effort I made is worth it./. Compared to what has been provided to me by the food delivery platform, I see that what I have been provided is worth it./.
I am concerned that my personal privacy information is leaked or disclosed while using the food delivery platform./. I am willing to continue ordering food on my favorite platform even if the price has been increased to increase the quality of the product or service./.
ในอนาคต ฉันจะยังสั่งอาหารทางออนไลน
ในอนาคต ฉันจะยังคงสั่งอาหารออนไลน
ความถี่เฉลี่ยในการใช้แพลตฟอร์มออนไลน์สั่งอาหารต่อเดือน / ความถี่ในการสั่งอาหารออนไลน์ต่อเดือน ฉันชอบสั่งอาหารออนไลน์ผ่านร้านค้าเหล่านี้ (โปรดระบุชื่อร้านอาหารอย่างน้อยสองร้าน)/
Appendix B: Frequency Table
Appendix C: Descriptive Statistics
PV1 Compared to what was offered to me by the food delivery platform, I see that the amount I paid is worth it. PV2 Compared to what I got from the food delivery platform, I find that the time spent is worth it. PV3 Compared to what I got from the food delivery platform, I find that the effort I put in is worth it.
PV4 Compared to what I got from the food delivery platform, I think what I got delivered is generally worth it. PR1 I am concerned that my personal privacy information will be leaked or disclosed while using the food delivery platform. PR2 I am concerned that the products offered (food & drinks) do not match what is described on the food delivery platform.
PR3 I am concerned that the services provided (including online platform and food delivery) are not consistent with what is described on the food delivery platform. CL3 I am willing to continue ordering food on my preferred platform even if the price is increased to improve the quality of the product or service. RPI2 In the future, I will still order food through an online platform even though there are other options for ordering food such as walk-in, phone calls, email, etc.
Appendix D: Hypotheses Testing (Gender)
Test
Appendix E: Hypotheses Testing (Nationality)
Appendix F: Hypotheses Testing (Age)
Appendix G: Hypotheses Testing (Education)
Appendix H: Hypotheses Testing (Monthly income)
